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Puma Is one of the world’s largest providers of Sportspeople footwear, apparel and accessories. In 1993, Cohen Zit, at age 30, was appointed chairman and CEO of Puma. He has directed and held primary responsibility of the worldwide financial restructuring of the company, which had difficulties at that time. Within his first year as CEO he managed to deliver Puma’s first profitable performance since 1986. Gaining consolidated sales of 210 million Euros and with an BIT of 23 million Euros In 1994. The share price increased by around 4000 percent in 13 years; from 8,6 Euros in 1993 to 350 Euros in April 2007.
In 2007 a French luxury group called PR, which is one of the top fashion and retail companies worldwide, bought more than 60 percent of Puma. With the support of PR, Puma plans to strengthen its position as the leading company In the Sportspeople market. Demonstrated by cutting-edge design and original marketing concepts. Puma’s goal is to become the most alluring Sportspeople Company worldwide. Key products of the company In the same year that Puma was founded, the first football boot, the “Atom” was launched.
Which was used In the first post-war football match In 1950, worn by overall West Germany national team members, including the famous scorer Herbert 1 OFF A second football boot was launched, the “Super Atom”, in 1952. This was the first football boot with screw-in studs. This marks the beginning of the long-term relationship between Puma and football. Puma is the first footwear company to use the technologically advanced balkanization production technique in 1960, whereby the sole and the shaft of the boot are bonded. This supports the athletes showing top performances. In 1968, the “Mexico 1968” was launched.
A running shoe that as brush soles with only mm long bristles in the front are of the foot. This shoe wasn’t on the market for long because it was declared “too dangerous” by the association and was consequently banned. Target markets of the company The target market of Puma has expanded because their products have become appealing to almost everyone; the concept “Sportspeople” has attracted a lot more people and not only athletes who use the products specifically for sports. The target market of Puma is for the ages 15 to 30 years of age; which is the age when one is sportive and active.
Puma products are available for both females and males. Communication Plans Targeting suppliers: The current suppliers of the Company are mainly from China, Vietnam, Cambodia, South Africa; which all together produce almost two thirds of all of the Company’s products consumed. Puma has currently launched a new initiative called the Global Reporting Initiative (GRIN); which is a training program to ensure transparent measurement and reporting on their sustainability performance using GRIN guidelines – which is the world’s most widely-used framework for sustainability reporting.
This ensures that labor in all of the supplying countries receive the same salaries, hours, work environment. Puma is already doing a very good Job in ensuring the transparency of the supply chain but there is still areas for improvement. Firstly, the Company can improve their technology for security purposes; meaning they can improve their machines in checking for counterfeit items. This might become more costly for the Company but it is a worthy investment to make to ensure their profitability and loyalty of their suppliers.
Secondly, the Company can make improvements concerning the environment. The Company can encourage their suppliers to use natural resources such as water, responsibility and will in turn improve the image of the Company; which will improve their business all together. Targeting staff: One of the best things that define the long-term success of this company is the fact that the company attracts the most talented employees. These employers are highly qualified and have the most vacant management positions at domestic as well as at international level.
This guarantees the company’s existing expertise and makes the transfer of the know-how through knowledge-management projects easier. From December 31, 2011, the number of employees stood at 10,836, compared to 9,697 in 2010. The number of employees in the Sales Department rose by 5. 8% to 2,404. The number of employees in the Product Development and Design department rose by 21 . 1% to 918. The number of employees in the General and Administrative Department rose by 13. 7% to 2,683. In 2011, Puma has developed a new training catalog that was incorporated into the talent management system.
In addition, employees and their managers are able to choose from a variety of different training courses and even provide suggestions for ideas in training programs; this is part of their individual development plan. Puma has focused their commitment to young talent. Students can obtain their first experience at Puma while still studying in school; whether they are in secondary or are busy with their graduation thesis. The vocational training to becoming an employee at any position in the company of Puma is offered in cooperation with universities with vocational colleges (which are mostly available in the United States).
This internship is provided to students who are studying the course of International Business, Sports Management as well as Fashion Business Management. Puma has been really successful in providing the young talent with Job opportunities, which creates a win-win situation; the Company obtains potential long-term employees. Secondly, given that these people (students/graduates) are paid at an internship level, the Company is not subjected to big risk; on top of that this maintains the profits for the Company. This benefits the young talent as well because they have the opportunity to practice their knowledge in a company as successful as Puma.
This also provides them with great reference for the future projects they decide to apply for. Targeting the young talent is already a good communication plan but what can benefit the Company even more is if they provided more virtual conferencing. This way the potential employees (the students/graduates) who are unable to obtain such an internship in their country have a chance to have a similar work experience This benefits the Company as well, because it minimizes the costs. Instead of the Company spending money on flying the interns over to their head offices; the
Company only needs to manage the Internet costs of virtual conferencing. Targeting customers: Puma has successfully managed to maintain a large target market and has been doing very well for itself. So far target customers of the Company are people ranged from 15 to 30 years of age; which is perfect because these are the people who are sportive and active. But there is still an area where the Company can improve in. Nowadays keeping fit has become more and more of an issue for everyone, including people of the sandwich generation (35 to 55 years) as well as the seniors.
A way for the Company to promote more to these categories of people is to perhaps make a commercial that not only shows the younger people but instead shows, for example, a 40 year old retired football player wearing the sneakers practicing professional football with his 15 year old son aspiring to become a football player like his dad. This doesn’t have to be only football; another idea for a commercial is a young person of about 1 5 to 20 years old wearing the sneakers teaching his/her parent, who is also wearing the sneakers, how to dance.
This way the commercials will keep appealing to the current target customers but will also slowly appeal to the new, potential customers. This also maintains the “keeping fit” concept. Conclusion Lastly what can affect all three sides of the Company is to host and/or sponsor more sporting events. Sponsoring more sporting events will increase recognition as well as improve their image. This affects the suppliers because the Company can generate a better relationship with them as well as creating relationships with other businesses. This benefits the staff because this is a way for the Company to give a bonus.