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MARKETING PLAN FOR PUMA CURRENT MARKETING SITUATION Puma was founded in 1924 in Germany, by two brothers, and it’s first official ‘out’ was in the 1936 Olympic Games in Berlin. At that time all of the German athletic team was outfitted by the company. In November of 2005 PUMA announced that it will sponsor 8 countries in the 2006 World Soccer Championship. One of the countries that is not included is the US. The growing popularity of the brand has resulted in the worldwide sales gain of over 20% in the 2004, and the sales gain of over 19% in 2003.
The next step for PUMA would be to show more of a presence in the US market and increase their sales in the US, while offering innovative, quality products. Market description PUMA’s market consists mainly of customers who are interested in sports (soccer, basketball, skateboard and so on). These customers are looking for distinctive, colorful, quality brand, that is going to offer comfort, durability and fair price. PUMA is looking to enforce their core values in the US: spontaneity, authenticity and individualism. Another point for PUMA is to be more responsive, consumer-driven company.
They are looking at more interaction with their customers, through their state of the art, unique shops. Currently PUMA has 46 stores, including puma. Com, worldwide. Product review The apparel offers innovative technology that enhances performance. Whether you want it just for a walk in the park and the look fashionable, or whether you are playing a game of soccer on the hard ground. This company will offer everything. There are so many different products: jackets, pants, shoes, bags etc. They are all colorful with the same logo: the jumping puma.
The customers can chose in men’s, women’s and children’s clothing, as well in shoes and accessories. The clothing is made out of finest cottons, and the shoes from durable leathers. Competitive Review Puma has many different competitors: Adidas, Nike, Champion, Umbro and so on. Here we will look at the two main competitors: Adidas and Nike. Adidas: Adidas is more of a common name in the US, along side of Nike, Reebok and Converse. Adidas is widely available. There are many lower end and higher end stores that carry their products. Their products are mostly known for their quality, the price and of course not to forget: the three stripes.
Adidas has established it self in this country over the year, although it is an imported product (it comes from Germany). Their products are available in the stores of average retailers, as well as the specialty stores (Finishline, etc. ) In the year 2004 they have reported the net sales of 6,478 million euros. Adidas is looking to increase their market share and profitability in the next three to four years (in the US alone). Nike: Nike goes along side of Adidas, and it is a little bit more favorable by the American consumer, because it is an American brand. It supports all of the American official teams, as well as many school and colleges.
It does offer the same line of products (clothing, shoes, accessories, etc. ) just like Puma and Adidas. There is one major difference between Nike and others: they are also offering equipment. The price range is more similar to the price range of Adidas products. Nike’s revenues for the year ending May 2005 were 1,211 million dollars. Nike is currently the largest manufacturer, with the biggest market share in the sporting industry. STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREAT ANALYSIS Puma has many strengths, but one of their major weaknesses is the fact that their market presence in the US is not as big.
There is not as much advertising for their products, as well not too many stores that carry their products. The opportunity lies with the fashion industry, as well as the sport events like soccer games. Strengths: Puma can build on the exclusive rights basis. Since there are not too many store that carry their products, company’s store might do better, rather than going through a middle man retailer. Also differentiating themselves as the lifestyle producer and not only a sporting goods producer, might help spike the interests.
Pricing could also work out as a plus. Offering a little bit higher price might create the appearance of a higher quality brand that is not so easy to come by. Weaknesses: The main weakness is coming into a market that is predominantly ruled by Nike and Adidas. Lack of the brand awareness is another major issues: since the brand is not as widely known, the company will have to invest in more advertising to increase the awareness. More of the magazine ads, as well as TV ads, and sponsoring schools might help the lack of knowledge of the consumer.