Minor Project report

ON

A STUDY ON MARKETING STRATEGIES OF PUMA

SHOES
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD
OF THE
DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
2014-17
Under the guidance of:-

Ms. ANJALI
Assistance Professor
Submitted By:
MADHUR SHARMA
ENROLLMENT NO. 3080301714

RUKMINI DEVI INSTITUTE OF ADVANCE STUDIES

NAAC Accredited, A
Category A+ Institute
High Grading 83.7 by Joint Assessment
An ISO 9001:2008 Certified Institute
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi

2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085.

STUDENT UNDERTAKING
This is to certify that I have completed the Project titled Marketing
strategies of Puma Under the guidance of Ms. ANJALI in partial
fulfillment of the requirement for the award of Bachelor of Business
Administration at Rukmini Devi Institute of Advance Studies, Delhi. This is
an original piece of work & I have not submitted it earlier elsewhere.

MADHUR SHARMA
ENROLLMENT NO. 3080301714

CERTIFICATE

This is to certify that the project titled Marketing strategies of Puma is

an academic work done by Ms. Anjali submitted in the partial fulfillment
of the requirement for the award of the degree of Bachelor Of Business
Administration from Rukmini Devi Institute of Advance Studies, Delhi,
under my guidance & direction. To the best of my knowledge and belief the
data & information presented by him/her in the project has not been
submitted earlier.

Ms. Anjali
Assistance Professor
RDIAS

ACKNOWLEDGEMENT
I wish to thank all those with whom I have worked, interacted and whose
thoughts and insights helped me in furthering my knowledge and
understanding of the subject.
I would especially like to express my gratitude and sincere thanks to Ms.
Anjali whose excellent teaching has left an undeniable print on my mind
leading me to prepare this project report in a better way and which would
not have been possible without her support and active guidance. I am highly
obliged to her for the opportunity that she gave me to work on the study on
marketing strategies of Samsung pvt.Ltd.. The present report has made me
learn a lot about the marketing industry as a whole.

MADHUR SHARMA

ENROLLMENT NO. 3080301714

TABLE OF CONTENTS
Particulars

Page No.

Student Declaration

Certificate

Acknowledgement

Executive Summary

Chapter 1
7
Plan of the Study
1.1 Introduction to topic
1.2 Objective of the study
1.3 Literature review And/or Theoretical Background

Chapter 2
16
Company profile

Chapter 3
37
Research Methodology

Chapter 4
52
Findings & Conclusions

Chapter 6
55
Suggestion
Bibliography

58

Annexure

60

EXECUTIVE SUMMARY
In todays competitive and dynamic world, with every business providing the same kind
of product or services, only that firm which comes up with an innovative idea can hope to
survive in the long run, by attracting and luring customers.

Insurance sure is an upcoming sector but with the privatization of the same, selling
insurance products has become tough due to the competition angle attached to it.

It is usually said that if you can sell insurance, you can sell anything in the world
including garbage. The reason behind this concept is the hesitant and unaware population,
who simply run away at the mere mention of its name

It is true that in managing healthcare, the pre-payment route through insurance schemes
rather than that of out of pocket payments are preferable and a fairer form of revenue
collection. But there are loopholes in the present indemnity based insurance products
offered by the public sector units and pricing of products are mostly non-scientific.

Pricing is the key issue and major international players already present in India are sort of
waiting in the wings to see what and how their competitors go about their strategies

This project deals with the sales and marketing techniques of PUMA. The company had
various numbers of products which the company offers to their customers.

CHAPTER 1

PLAN OF THE STUDY

1.1

Introduction to topic

Puma SE, officially branded as PUMA, is a major German multinational company that
produces athletic shoes, footwear, and other sportswear. The company was formed in
1924 as Gebrder Dassler Schuhfabrik by Adolf and Rudolf Dassler. The relationship
between the two brothers deteriorated until the two agreed to split in 1948, forming two
separate entities, PUMA and Puma. Both companies are currently based in
Herzogenaurach, Germany.
Puma is known for its football shoes and has sponsored acclaimed footballers, including
Pel, Eusbio, Johan Cruijff, Enzo Francescoli, Diego Maradona, Lothar Matthus,
Kenny Dalglish,
The company offers lines of shoes and sports clothing designed by Lamine Kouyate,
Amy Garbers, and others. Since 1996 Puma has intensified its activities in the United
States. Puma owns 25% of American brand sports clothing maker Logo Athletic, which is
licensed by American professional basketball and association football leagues. Since
2007 Puma SE has been part of the French luxury group PPR.

1.2

Objective of the Study

1. The main aim is to find out the truth, which is hidden and not

discovered yet.
2. To gain familiarity with a phenomenon.
3. To portray accurately the characteristic of an individual
4. To test a hypothesis of a causal relationship between variables.

1.3

Literature review

MARKETING-MIX (FOUR PS): PUMA

THE PRODUCT:
Whatever your athletic preference, you can now purchase an extensive range of PUMA
footwear and apparel online. From running shoes to baseball cleats, eye wear to lanyards,
collegiate licensed jackets to good old fashioned cotton T-shirts, all things sport are
available at the PUMA
As A BRAND
At PUMA you have got to be sporty. At PUMA the brand awarding is been taken rather
seriously at its headquarters. PUMA wants to bring inline skates into India.
What that kind of stuff got to do with Indian market? Yes, it wont really be a hot seller,
but it will contribute a lot to PUMA brand image. Thats the PUMA way of doing it
image is a critical part of branding strategy the world over.
The idea of the company is to introduce performance specific sports shoes in the Indian
market by building images around the world & at the same time create the need for these
shoes at the ground level.
PUMA already has heavy weight sportsmen such as Sachin Tendulkar, Leander Paes &
Mahesh Bhupathi endorsing the brand in India. They had the image, apart from endorsing
10

the performance element in the brand. PUMA steps out of crease with a clear sports
positioning. PUMA will take on arch Nike with almost the same positioning. Its working
with promising athletes to give them a taste of its products. PUMA nowadays is capturing
an attitude that is sports related.
PUMA in fact did go through a limited fashion phase. PUMA says that you are tempted
to make quick buck but we would like to stick to the sports brand image because that
make us fashionable.
Words of G. Kannan (Director Marketing)
Our Secret is our commitment to the sports process. We develop shoes that take into
account the needs of a particular sports & the role of this brand is driven by this factor.
Good news for PUMA is that even in the casual market, the trend is towards being sporty.
Going to Gym is fast graduating from a mere fad to serious body building, strengthening
& toning. This is reflected in the clothes that people wear today. The three stripes, for
instance is unique property which can be reinvented in various forms as trends changes.
For PUMA the product plays an eminent role in the enhancement of their corporate as
well as sports image:
PUMA SAYS
Nothing compromised. The most innovative PUMA products created specifically to help
make you a better athlete. For PUMA, product is not just a assortment of few items. But
it involvesdeveloping of the right product which can then be put to right place & sold
with the right promotion & price.
VALUE OF ITS PRODUCTS FOR PUMA
Our goal is to create a product that is honest it must perform. The rule is simple: form
follows function.
As studied earlier an PUMA product is the result of the intense thought and creative
energy of many different people. If a company sells an automobile, is it selling a certain
no. of nuts and bolts, some metal sheet, an engine and four wheels?
If a company sells a delivery service, is it selling so much wear and tear on a delivery

11

truck and so much operator fatigue? As per PUMA the answer to these questions is
instead what we are really selling is the satisfaction, use or profit the customer wants.
PUMA says that the entire customer wants is, that whatever product they purchase should
fulfill all their needs and preferences. They dont care how they were made. Further they
want that when they order something, the dont really care how much out of the way the
driver had to go or where he/she has been. They just want their package. That means for
them only the final service matters.
As per PUMA the idea of product potential customers satisfactions or benefits is very
important. PUMA says that the total product is not just a physical product with its related
features, but it includes accessories, installation, instruction on use, the package, perhaps
the brand name which fulfills some psychological needs a warranty and confidence that
service will be available after the purchase.

Place and Physical Distribution:

A: Place
To take care of this problem PUMA has appointed marketing managers who decides how
the PUMA is very much concerned about its second p. As per PUMA place and
physical distribution of the product is something on which almost every company spends
a handsome amount of money.
Hence PUMA takes a good care of its place and physical distribution process. PUMA has
appointed marketing specialists who are taking care of the supply of the product and their
distribution channels and process.
Process used assorting progress
Entire range, which is available is put together to give a target market what it
wants. Marketing specialists put together an assortment to satisfy some target
market. His is usually done by those who are close to the retailers only.
B: Physical distribution
As per PUMA nearly half of the costs of marketing are spend transporting and
12

storing functions should be divided within a channel.

Note: Physical distribution can be varied endlessly in a marketing mix and in a
channel system.

TRUCKS
In PUMA, except the export products, trucks are considered to be the best medium for
transport. The flexibility of trucks makes them really good for moving small loads for
short distances. They can travel on almost any road. According to PUMA they can give
extremely fast service. Also trucks causes less breakage in handling.

PROMOTION:
PUMA is one of the Indias biggest companies of sports that spend nearly $10 million on
its sales promotion and advertising in Indian Market.
PUMA believe that it just cannot be taken lightly. It is a very important aspect of products
life cycle. It is the process which is responsible for the growth or decline in the sale of the
product.
PUMA thinks that promotion is communicating information about the product between
the seller and the buyer to change attitudes and behavior.
To handle the companys promotional activities PUMA has employed marketing
managers, wherever the PUMA is located. These marketing managers look after process
of the promotion of the products of their company.
As per PUMA the marketing managers promotion job is to tell the target customers that
the right product is available at the right place and at the right time and especially at the
right price.
PUMA thinks that only taking the product to the customers is not a task of the company.
But company takes a very important look about how the product works and this message
is communicated to their consumers .Because a wrong message can lead to the end of
their products life.
13

Sales Promotion
PUMA is the most popular amongst its rival for its excellent sales promotional activities.
As per PUMA they say that they themselves are responsible for the encouragement of the
customer to by their products. PUMA believes sales promotion tries to compliment the
companys selling efforts.
As per PUMA advertising can get results in a promotion blend. Good results are obtained
at a cost of course. The amount spent in the Unites States for advertising is growing.
Continuously, from World War II to 1980 it went from $1 billion to $50 billion.
PUMA also spends nearly $2.9 million on its advertising throughout the world. PUMA in
India is spending almost $17 million on advertising.
The heavy weight players like Sachin Tendulkar, Leander Paes and Mahesh Bhupathi are
already attached with their ad-campaigns.

PRICING:
PUMA is clear; it wants to become the no. one sports brand in India, a choice brand for
all brands. So far so good, but how will it tackles a price conscious market like India?
PUMA feels that being a high energy business PUMA introduces 600-700 articles every
six months enables the brand to remain fresh and bring on an international and Indians
the brand from the price stand point.
Price, thats the most critical factor in the Indian context. PUMA believes it has to deliver
a functional at an affordable price. Its a tough job to maintain the integrity of the
performance and still come out with a product a right price point. Globally shoes start at
$50. But in India as the perceived need is lower, you have to make the product more
affordable.
To tackle this, PUMA came out with speed 2000, a product priced at Rs.995 with the help
of local and Hong Kong source people. PUMA however feels that its just the matter of
time before India coverages the world on this front. It is very difficult to operate on a
14

lower price point and maintain integrity of product, but its been barely 3 years since the
sports market has taken off.
The original sector is just 20% of the total market and 80% of the volumes comes from
sporty shoes. But our market is producing products at a price that is relevant to the
consumers.
PUMA feels that as the volume go up; PUMA will try and work out price points as
people graduate with better understanding of quality and price perception. Volumes are
bound to go up. PUMA started at the time when India had no strength out in the sports
products market in 1989 90. Its then licensing partner Bata, and it had limitations of
what it could have put behind the brand. So company took the next best step when the
licensing agreement ended to take a bigger share in business.
To conclude we can say that PUMA is putting all efforts to bring down the price
consciousness in the Indian market. Company is trying to make products, which are easy
to afford and still maintain the integrity of their performance.
Growth has been phenomenal for PUMA even given the base is small. In 2002 PUMA
grew by 25%, 2003 by over 50% and this year PUMA is expecting more than 50% in
terms of value in both shoes and apparel, while the industry growth as a best case
estimate has been 20-25%.
Only now, the setting is not the playground or the track or the court, it is the urban
landscape with its omnipresent traffic jams, crowded streets and so forth. This way,
PUMA becomes a part of life. Anyones life. You dont have to be the high-voltage
performer to be a part of the PUMA family. And it goes beyond that PUMA becomes
something that makes you better. Not just as an athlete, but as a sports person, a better
human being.
One of the advertisements: The spot featuring Boldon shows him chasing a thief (whod
stolen a TV set when its owner was in the bath) through the dark streets. To help a man
(the owner, in a towel) in distress. And he uses all the power that he can, to do what he
has to do and what he needs to do. And PUMA helps him perform better, than he would
otherwise have been able to. This is perhaps shown in an oblique way when the spot ends

15

at the feet of Boldon and the bather.

One is wearing a pair of PUMA shoes while the other is barefoot. PUMA makes you
better, goes the base. In short, the other man could have done as well as Boldon. The
bather reads any man. Any man who wears PUMA. And PUMA goes beyond athletic
performance it becomes everyday life. In stark reality. Though humorously and light, it
has a deep meaning.
A. As A BRAND
At PUMA you have got to be sporty. At PUMA the brand awarding is been taken rather
seriously at its headquarters. PUMA wants to bring inline skates into India. What that
kind of stuff got to do with Indian market? Yes, it wont really be a hot seller, but it will
contribute a lot to PUMA brand image. Thats the PUMA way of doing it image is a
critical part of branding strategy the world over.
The idea of the company is to introduce performance specific sports shoes in
the Indian market by building images around the world & at the same time
create the need for these shoes at the ground level.
PUMA already has heavy Weight sportsmen such as Sachin
Tendulkar, Leander Paes & Mahesh Bhupathi endorsing the brand in
India. They had the image, apart from endorsing the performance
element in the brand. PUMA steps out of crease with a clear sports
positioning. PUMA will take on arch Nike with almost the same
positioning. Its working with promising athletes to give them a taste
of its products. PUMA nowadays is capturing an attitude that is
sports related.

16

CHAPTER 2

COMPANY PROFILE

17

Outstanding performances of PUMA athletes and teams have strongly influenced

international sports through innovative PUMA products and creative marketing initiatives
for more than 60 years.
Milestones in PUMAs sports history were the development of the first football boot with
screw-in studs in 1952 by the companys founder Rudolf Dassler, the legendary twostripe jersey of Johan Cruyff at the world championship in 1974, the PUMA contact
lenses of Linford Christie in 1996, the skin-tight Catsuit tennis dress of Serena Williams
at the US Open 2002, the revolutionary one-piece Cameroon football shirt in 2004, the
Italian national team winning the Football World Cup in 2006, Ferrari with its seventimes world champion, most successful Formula 1 pilot and PUMA partner Michael
Schumacher, who dominated the sports for years, the world records of sprint hero Usain
Bolt as well as the Volvo Ocean Race, the Everest of Sailing that PUMAs eyecatching sailing yacht il mostro finished in second place in 2009.
Through creativity and innovative products PUMA has always set standards in sports and
style. Partnerships with federations such as Jamaica, Italy and in Africa provided the
brand with the opportunity to lead the way in creative and innovative global sports
marketing. PUMA was not only able to strengthen its positioning as a sport lifestyle
brand, but created a whole new market by establishing the segment sport lifestyle. Page 2
Football

18

As early as in 1952, PUMA set the first milestone on the pitch by developing the Super
Atom, the first football boot with screw-in studs. Eight players of German premier
league club Hannover 96 sported the new mass-produced boots during the final of the
German Premier League Championship in May 1954 and heralded a new era of football
boot development - well before Germanys famous World Cup win in Bern in July that
year.
A story to remember is the legendary Two-Stripe Jersey that the captain of the Dutch
national team Johan Cruyff created at the World Cup 1974. The Dutch player refused to
play in a three-stripe shirt because he felt closely connected to his sponsor PUMA. He
created a unique Dutch two-stripe jersey which debuted in the final of the World Cup in
Munich.
When Jochen Zeitz took the helm in 1993, he launched a new brand strategy which
turned PUMA into the most desirable sportlifestyle brand through successfully fusing
influences from sports, lifestyle and fashion. The epitome of the new sportlifestyle
segment was PUMAs cooperation with designer Jil Sander in 1998 when PUMA
combined - as the first sports brand ever - sports and style. The newly introduced trend
found its way onto the international catwalks and especially onto the football pitches
where PUMA set new standards for sports fashion and established the sportlifestyle
segment.
Legendary examples of PUMAs sports fashion were the coloured football boots at the
World Cup in France in 1998 and the sleeveless jerseys, sported by the Cameroon
national team at the African Cup of Nations and the World Cup in 2002. The football
fashion was further revolutionized, when the Cameroon team played in one-piece jerseys
for the first time ever at the African Cup of Nations in 2004. The one-piece kits caused a
worldwide media stir and the international football federation FIFA sued PUMA, trying
to ban the sensational jerseys.
PUMAs successful fusion of sports and style within the realm of football was crowned
when the Italian national team won the World Cup in 2006: The Squadra Azzurra

19

represents the perfect combination of athletic world class and fashionable flair, further
extending PUMAs position as one of the three leading football brands. Page 3
As the partner of 13 African football federations, PUMA has not only been the leading
sponsor in Africa for many years, but has also used the continent to launch its most
innovative products. The joy of the game, aesthetics, passion and culture are African
values that PUMA also stands for. The World Cup offers a unique platform for PUMA to
demonstrate its long-term commitment to African football and the continent. While
Africa has been carrying the stigma of conflicts and poverty in the global press, PUMA
has always emphasized the positives of the prospects and uniqueness of the continent.
In January 2010, PUMA entered into a partnership with the Environment Programme of
the United Nations (UNEP) to protect biodiversity. The joint Play for Life campaign
was launched to support projects in Africa and elsewhere. To fund this initiative, PUMA
launched the Africa Unity Kit, the worlds first continental football kit designed to be
worn by the 13 African football national teams that PUMA sponsors.
Running
PUMA has always been successful in finding the right partners, who perfectly reflect and
convey the image of the brand around the world. Sprint superstar Usain Bolt and the
Jamaican track and field team perfectly embody that sports, fun and style have always
been key elements in PUMAs brand strategy.
At the Olympic Games 2008 in Beijing, Usain Bolt set a 100m world record of 9.69
seconds, smashing his own mark from May that year and sprinted 200m in the world
record time of 19.30 seconds, beating Michael Johnsons 1996 record by two hundredths
of a second. He won his third gold medal as Jamaica shattered the world record in the
4x100m relay in 37.10 seconds.
In close collaboration with Usain Bolt, PUMA developed the Theseus II, the ultimate
running shoe. Running the 100m and 200m both, the Jamaican sprinter needed a versatile
shoe that provided support for power, as well as firmness to hold his foot in place around

20

the turn. PUMA produced a gold version of the shoe for Beijing, which helped power him
through the greatest sprints of his life so far. Page 4
At the World Athletics Championships 2009 in Berlin, Usain Bolt wrote sports history
again when he smashed the 100m and 200m world records. The PUMA Yaam sprint spike
that propelled him to victory was developed by a team of PUMA designers and
technicians who studied and measured Bolts stride and foot form. The vibrant orange
sprint spike, designed to contrast the Olympic Stadiums signature blue track and
Usains way of achieving outstanding performances, mixing sport and style, caused a
global stir.

Sailing
At sea, PUMA participated with an own boat in one of the worlds toughest sailing races,
the Volvo Ocean Race in 2008. As the first multi-category company, PUMA entered into
sailing and combined high performance sports with cutting-edge technology, styling and
adventure. The 11-men strong crew the PUMA Ocean Racing Team raced 10 legs and
visited 10 countries in Africa, Asia, South and North America. During nine months, they
covered 37,000 nautical miles (68,524 km) before finishing the race in second place in
June 2009 in St. Petersburg.

Over 5 million people visited the Volvo Ocean Race stopover villages and witnessed
PUMAs il mostro, PUMA City and PUMAs innovative market initiatives. PUMA used

21

the 11 port destinations of the Race to activate complex onshore marketing strategies.
Such activities set a new marketing benchmark in the growing sport of sailing. At the
same time, while the sport of sailing is often perceived to be very exclusive, PUMA
aimed to break down this misconception. PUMAs retail expertise manifested itself by
providing a unique shopping experience in PUMA City, a mobile architecture at the stopover ports. Retail expectations were exceeded, after sales in PUMA City on a single day
in Boston topped daily sales in any PUMA store ever worldwide. PUMA City is an
innovative, mobile container building and has accompanied the sailing crew during parts
of the Race, being shipped to and assembled at the stop-over ports in Alicante and Boston
to host celebrations, press events, entertainment and in-port race viewing.

Motorsport
In Motorsports, PUMA underpinned its excellent competence to combine top
performance sports with lifestyle when it developed highly functional Formula 1
collections as the first sports brand Page ever. With the support of Ferrari and Michael
Schumacher as well as a strong portfolio of other racing teams, PUMA successfully
established Motorsports as a new segment within a short time and became the leading
Formula 1 sponsor. Formula 1 driver Sebastian Vettel caused a sensation in 2008 when
the 21-year old won the race in Monza, wearing golden PUMA shoes, and became the
youngest Formula 1 champion in history.

Tennis
On the international tennis courts, PUMA caused a stir in 2002, when the company
dressed the top player Serena Williams in a skin-tight black catsuit at the US Open in
New York and changed the fashion in a sport that had seen players traditionally dress in
white. In 1998, PUMA took the then 16-year old American tennis player under contract
and went together with her all the way from rank 42 to number one in the world tennis
ranking list.

22

The following report describes and analyses Puma business 's generic and distinctive
marketing strategies, as well as providing accurate industry, competitor, market, and
SWOT analysis'. Evaluation of Puma businesss marketing strategy is conducted, thus
analyzing the strengths and weaknesses of the strategy. Lastly the report recommends
probable future courses of actions obtainable to Puma business, in order to get better
profits and stop mistakes in the future.

Background

According to the companys annual report The Puma business was originally founded by
legend fashion designers who first patented a disinfectant fashion in France which is still
marketed today as Puma Fluid. Puma was granted the Royal Warrant in France and is still
a proud supplier to the Royal Household.
If we analyzed then we come to know that Puma be familiar with that ultimately the
consumer buys products which solve consumer desires and requirements. These desires
repeatedly expand and it is vital that products are developed to assemble these
requirements. Puma has two research & growth centers in France and the UK where the
solitary focal point is to produce ground-breaking new products.
According to the annual report of Puma Business:

23

Puma Group Management Team

The Industry Analysis
Puma is in the department store/large retailer industry, an industry that has very high
levels of competition. Although this industry is extremely competitive and growing at a
fast pace in Australia, it is still not as large as the department store industry elsewhere in
the world, such as the USA. This is partly due to the fact that there are boundaries in this
industry, particularly in Australia, as there are few retail stores that can classify
themselves as large department retail stores. Puma is a very competitive and key
participant in this industry, as it is both a producer and a seller. The large retailer industry
can be very volatile due to the impact the environment has on its participants .
Due to the introduction of the GST in year 2000, retail turnover has been increased and
there has been a sharp sales slump in the retail sector (Inside Retailing, 2001). According
to the estimation of ARA, total sales were up 5%; however there had been a drop in
department store sales of 3% for the seven months prior to July on the previous
corresponding period. The Australian Bureau of Statistics (ABS) also estimated that
department store turnover was up 27.8%, or approximately $1 billion.

24

Competitor Analysis
The main competitors of Puma stores are middle- upper class department stores that stock
a wide variety of products. Competition mainly comes in the form of premium positioned
stores in the high-class category. In Australia, the main higher class competition would
come from Nicholas Goodwin and Michel Jones, which are both fashionable stores that
offer alike products at a competitive price.
However, due to the fact that John Adam has just recently announced that two of its
Australian stores will close down at the end of 2001, Puma has experienced a slight fall
in the competition in this industry sector. On the other hand the middle class sector of the
industry is still highly competitive, with the likes of main rivals Sports girl, Kmart, Target
and Harvey Norman insuring the need for regular in-store monitoring and maintenance.
Market Analysis
Puma main customer base, thus their main target market; are predominantly female. As
the products are of best standing, i.e. premium pricing and brand categories; the market is
customer based, not demand-based. The products fulfill wants and desires based on
image, not needs. Customers seek the product and service benefits of the image of Puma.
Geographically speaking, the market for large department store such as Puma is mainly
concentrated in large shopping centers or downtown. In a large shopping center or
downtown shopping district, the market is strong, with good profit potential.
Department stores positioned as premium are hard to imitate and start because they are
built on the prestige of the brand.

25

Puma is the main producer of enthusiast driving shoes and race suits. They are the
primary producer for Formula One and NASCAR clothing. They won the rights to
sponsor the 2006 FIFA World Cup champions, the Italian national football team, making
and sponsoring the clothing worn by the team. They entered a partnership with Ferrari,
Ducati and BMW to make Puma-Ferrari, Puma-Ducati and Puma-BMW shoes. On 15
March 2007 Puma launched its 2007/2008 line of uniforms for a club, and Brazilian
football club Grmio will be the first to use the laser-sewn technology, similar to that
worn by Italy at the 2006 World Cup, because their season starts six months earlier than
European clubs.

26

PUMA SHOES and unconventional designs inspirations, McQueen is the perfect match
for PUMA: Together we take on the challenge to successfully combine different trends in
sports, fashion as well as sport history and technology into unique collections which
convince through their distinctive style. For instance, McQueens footwear collection is
inspired by the anatomy of the foot, perfectly unifying elegance with an extraordinary
design as well as comfort and functionality. Mihara. The Japanese designer Yashuhiro
Mihara aims to fuse sport and fashion with innovative creations and intends to
deliberately break boundaries. Mihara shoes feature a sportive-Avant- grade design and
the slogan of his collection is called "out of sports, out of fashion", a sure hint that his
shoes are neither trainers nor leather shoes.
Rudolf Dassler Schuh fabric
The "Rudolf Dassler Schuh fabrik" collection is inspired by the timelessness that is sports
and its character is stamped by the influence of cultural styles such as Cubism and
Bauhaus, Dadaism and Jazz, Modernism and Avant-garde.With its natural and puristic
style the collection takes us back down memory lane to the unforgettable hours of major

27

sport events. The Dassler collection is provocative and modern, going back to the origin
of sports and with its name remembering the founder of PUMA, Rudolf Dassler.
PUMA - The Black Label
PUMA - The Black Label footwear is an authentic sport-fashion collection featuring
modern interpretations of PUMA iconic sneakers with fashion-forward shapes that fuse
form and function. The Black Label styles are truly innovative, urban and versatile and
they combine performance elements with fashion trends.
Established by Henry Dunker in Helsingborg, Sweden at the end of the 19th century,
Tretorn takes inspiration from its Scandinavian roots and carries this vitality of spirit
throughout its collection of leisure shoes, rubber boots and tennis balls.Tretorns expertise
in rubber-made products demonstrates a consistent commitment to quality and brand over
hype, offering a collection most appreciated by those with a practical sensibility and a
lifestyle largely enjoyed outside.
Manufacturing Facilities: PUMA uses outsourced production facilities in over 40
countries.
Official Company Language: English
Registered Office: Herzogenaurach, Germany.

28

FUTURE PLAN

Determination that everyone in the company understands and embraces the company
values, as well as benefits from the experience and integrity of their colleagues. Only with
self-belief will individuals have the confidence to make things happen, take the tough decisions and
realize their ambitions for themselves and, ultimately, for the business.
Entrepreneurship
Few businesses succeed without great ideas. PUMA has been built on them and needs
them to flow relentlessly hour by hour, day by day. This demands a willingness to think
outside the box, to zig where others zag and to seek inspiration beyond the more obvious
boundaries of our business universe. Such creativity has inspired the PUMA brand
strategy. It will also be needed to make it a reality.

29

GROWTH DRIVERS
The company has a very comprehensive distribution network which comprises its own
and franchise stores. It has 1500 showrooms, 25 wholesale depots and 8 distribution
centers.

Vision & Mission

To make PUMA, the dominant company in Indian footwears industry.
This we hope to achieve by:
Understanding the needs of customers and offering them superior products and
service
Leveraging technology to service customers quickly, efficiently and conveniently
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our
employees
And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the
values describe what the company stands for, the qualities of our people and the way we
work.
We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.

Some of the theories I have used in my project are as follows:

Theory: What is market research and why it is important.

30

Market research is a method of collecting data, which will make you (as a business) more
aware of how the people, you hope to sell to, will react to your products or services.
Market research will answer questions like:

Whether your products or services are needed?

Who might want to buy your products?

What age, sex, income occupation etc. are the people I want to sell to?

If there are changes taking place and how this might affect what you sell?

How well your products or services might sell?

How much demand there is for what you hope to sell?

What price would people be prepared to pay?

HOW DO PUMA CREATE ITS PRODUCTS

PUMA goal is to create a product that is honest it must perform. The rule is
simple: form follows function.
Technology and functional design: A development team makes the actual
prototypes. These prototypes are then presented to the retail market by the
marketing department.
A Puma product is the result of the intense thought and creative energy of many
different people. The following is a general outline of how I create our
performance-based products.

31

1.

The marketing department evaluates athletes needs and develops a basic

concept of how those needs should be met. This concept is then
presented to the design department.

2.

Based upon this concept from the marketing department, the design
teams sketch possible prototypes.

3.

The people from design and marketing consider the prototype sketches
together; narrowing the selection to those they anticipate will most
successfully meet athletes needs.

4.

The development department then works with the design department to

create an actual prototype from the selected sketches.

5.

Three separate groups marketing, design and development meet and

discuss how to improve the prototype.

6.

Samples are Wear-tested to ensure the product meets PUMA standards

for performance and durability and stands up to the demands of the sport
for which it was designed.

7.

Preview samples are presented to key accounts and consumer focus

groups for feedback. Based upon this information, final changes are
made.

8.

Samples are distributed to PUMA sales representatives for presentation

to retailers.

9.

The finished product is delivered to retailers .

32

MARKETING: PUMA
In 1997, PUMA became PUMA-Salomon with its US $1.4 billion purchase of Salomon, a
French manufacturer of skis and other sporting goods. The deal put PUMA one step
closer to competitor and world market leader Nike, and one step ahead of Reebok.
Salomon, aside from its winter sport equipment, also owns golf club brand Taylor
Made and cycle brand Mavic. The merger makes PUMA/Salomon the second
largest sport marketer in the world, and number one in Europe. Salomon is
currently very strong in North America and Japan, and PUMA has the largest
market share in Europe.
PUMA is, like Nike, very active insuring sponsorships advertising deals with celebrities.
Some of the most famous are Martina Hingis (tennis), Kobe Bryant (basketball), Peyton
Manning, Paul Palmer (swimmer), jan Ulrich (racing cyclist) and the New York Yankees.
David Beckham, Patrick Culvert and Zidane all wear PUMA boots, the Predator
Accelerator.

MARKETING STRATEGY
PUMA intent could be viewed as the number one global supplier of fashionable top
quality fitness footwear, textiles, and sports cleats. With this intent, PUMA should have a
mission to make, distribute and sell the finest quality sporting goods that improves the
potential of the entire worlds athletes.1.

Become the industry leading marketer of sporting goods. Strategy PUMA is being torn
apart in marketing by Reebok and Nike. In order for PUMA to regain the lead in the
sporting goods business a new marketing strategy should be developed. PUMA should
create an independent brand name for a fitness line of shoe that appeals to both males and
females. PUMA have some of the top U.S and European fitness instructors, trainers,
super models and actors and actresses endorse the product. PUMA should forget about
the American football, baseball, and basketball markets. Let Nike and Reebok fight over
this territory.2.

33

Have the most efficient production cycle in the industry. Strategy Reduce sourcing and
production lead times to four months. Start by outsourcing all production to independent
manufacturers. Get rid of all production in Europe and send to Asia, where costs are
lower. For U.S market, outsource production to U.S based facilities or to South American
facilities and sell directly to retailers in the U.S. instead of subsidiaries.

Leda in the industry in product innovation. Strategy Restructure the companys

management. With the current top down bureaucratic management structure, PUMA will
never become a leading innovator. PUMA is trying to compete in two different marketsthe European market and the American market. Each market should have its own
executive with his or her own marketing/ R&D, Sourcing, Logistics, Finance and Human
Resources department and representatives from each of the countries in the two
hemispheres should report to their respective executives. The U.S. department should be
based in the U.S. and should have individuals in charge of each division that understands
the U.S. market.

Market Segments:
High quality products targeted at teens and young adults. Dominates American
basketball, football, and baseball segments. Very successful with woman market segment.
Known as a producer of fitness footwear. Trying to capture more Nikes Sports segment.
Middle ages mens brand. Leader in soccer market segment. R&D done by coaches,
athletes, and trainers. Have Air Sole Technology developed by NASA engineer. Pump
and Hexalite Technology. Torsion Technology. The market and sales department contains
the R&D department COMPETITORS..
Nike challenges PUMA in home market
PUMA Acquires Reebok to challenge Nike

34

Competitors: Nike
Others:

Amar Sport
Rossigno

LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING IN INDIA

Continuing its association with trump card Sachin, the local four-ad print campaign tries
to connect PUMA product attributes with Sachins magic. Instead of presenting just one
dimension:
The first ad connects Sachins choice of a heavy bat with PUMA Falcon Dorf light
weight shoes. Says the headline: Sachin likes his bat heavy, not his shoe.
The second new shoe range to be introduced for the first time in India. Sub-branded
Aksu and priced at Rs 2,299, these are athletic sandals primarily meant for water-based
adventure sports. Finally, The next ad will convey that PUMA covers various price points
by promoting its existing Portland range priced at Rs 1,499 and 1,799 (the leather
version).
The importance of celebrity sponsorship and events to PUMA is illustrated by Robert
Louis-Dreyfus letter in the companys 1998 annual report:
When it comes to showcasing our brands, 1998 was truly exceptional. Early in the year,
the Winter Olympics focused the attention of sports enthusiasts on Nagano. In summer,
the Soccer World Cup in France attracted more spectators than any single sports event
before. When the French team, promoting the three stripes, won the World Cup, we could
not have wished for more. These were great times for our brand.
PUMA has reached an agreement with ISL Marketing G of Switzerland to become an
official sponsor of the 2000 UEFA European Championships. PUMA will have access to
the official emblems, mascot and trophy for the design of its own products..
In 1998, the overall PUMA budget for promotion and sponsoring accounted for nearly
15% of turnover.

35

The positioning is being communicated through its global campaign-released worldwide

in February 1999 but in India, only in May-as well as through a four-ad print campaign
developed locally by RK Swami/BBDO. Says G Kanan, general manager, marketing,
PUMA: We are the only brand with heritage in sports. As a brand, were not an attitude
thats fashionable. Were an attitude that is relevant all the time.
The campaign also introduces a new brand line for PUMA: Forever Sport. The line
sums up the deeply-felt and long-term love affair (it has been involved with sports
since 1928) that PUMA has with sport in all of its forms. Interestingly, the new brand line
has been introduced almost after a decade, when it was using Earn your stripes as its
tag-line. The company dropped it during the late 80s after it found that it wasnt
connecting too well with its consumers.
But the golden question is that will the campaign make PUMA run?
The company expects the campaign to strengthen the image of the brand since research
had indicated that neither of the three multinational sports shoe brands present in India
had a clear image: most were perceived as diffused brands and personality-led. Says
Kanan: Sachin has and will play a major role in pushing the brand. He is important, as
there are certain values a consumer needs to know about PUMA. But after certain
duration, we have to present a global perspective too and hence the Forever Sport
campaign.
Interestingly, PUMA claims that it did not want to be caught up in the clutter of the
World Cup promotions-and deliberately chose not to associate with the World Cup.
Instead, according to Kanan, the campaign has been broken now to coincide with the
peak season (April-June). The World Cup is incidental. Its too large an event to make
significance for us, says Kanan.
However, the company is maintaining a steady and dominant presence in the media
during the Cup: strewn over select channels like Star, Discovery, and ESPN are the
Sachin ads promoting PUMA. Star News is delivering good value while through
Discovery, we can catch the elite customer, Kanan says.
Although Kanan admits that the sports shoe and apparel market is at a nascent stage, he
claims that PUMA has grown by over 250 per cent from last year. As a company that
takes pride in not joining the price brawl, PUMA does not intend to bring down the prices
36

of its products. Says Kanan, We dont look at driving down the market by lowering the
price. We are willing to wait for the market to evolve.
For PUMA, the real breakthrough, says Kanan, has come through a combination of
strategies: signing on Sachin, Leander and Bhupathi; expanding its reach (it opened 45
stores last year); a revamped range which covers a band of price points; and support to
the brand. "e built-in value pricing in our products, and supported them through sports
icons who are looked up to. We have realized that to have just one good guy endorsing
your brand is more important than having several unknown faces, says Kanan
The company is enlarging the scope of its business by concentrating on apparel. Apparel
is driving the business. Most consumers start experimenting with the brand through
apparel, admits Kanan. Essentially perceived as a male brand, PUMA however defends
its range by pointing out that currently it has 50 items out of a total of 250, for women.
Further, PUMA is planning to add 30 new stores this year. Were looking at driving
the market through exclusive stores. Says Kanan. The logic is clear: use Forever Sport to
ensure sales forever.
Never achieved profitability and collapsed under the weight of its own unrealized
ambitions.
PUMAs objective with the new line of footwear is to generate sales leads through its
Web site, either through direct purchase or a retailer finder. Villota says that every style of
footwear has a story, particularly those endorsed by star athletes, and its these stories that
sell the shoes to buyers.
While Villota wouldnt disclose how much of Bryants PUMA footwear is sold online, he
did say one of three visitors to the Bryant portion of the PUMA site demonstrated
purchase intent by clicking through to the store or to the retail finder.
The newest version of Bryants footwear hits the street Nov. 1, coinciding with the
start of the 2003-2004 NBA seasons. While PUMA wont comment on the new sites
features, citing competitive pressure, Villota says it is PUMA Americas most
ambitious integration of Web content and electronic marketing.

37

CHAPTER 3

RESEARCH
METHODOLOGY

38

Research Design: (Theory)

Research design is an overall plan or scheme prepared by the researcher for executing the
research study. It is an important stage in the process of conducting research as it
facilitates systematic work on the research project. It is necessary as it facilitates the
smooth conduct of research. Research design may be designed as the sequence of steps
taken ahead of time to ensure that relevant data will be collected in a way that permits
objective analysis of different hypothesis formulated with respect to the research
problem.
Data Collection
Data Collection helps your team to assess the health of your process. To do so, you must
identify the key quality characteristics you will measure, how you will measure them, and
what you will do with the data you collect.
Data Collection is nothing more than planning for and obtaining useful information on
key quality characteristics produced by your process. However, simply collecting data
does not ensure that you will obtain relevant or specific enough data to tell you what is
occurring in the process.
A. PRIMARY DATA:
Primary data is important for all areas of research because it is unvarnished information
about the results of an experiment or observation. It is like the eyewitness testimony at a
trial. No one has tarnished it or spun it by adding their own opinion or bias so it can form
the basis of objective conclusions.
Once the primary data has been gathered, analysts study it using other research methods.
They look for relationships between factors that may suggest the designs for new studies.
When they combine the primary data from more than one study, they are using
integrative methods. Their findings present secondary data, a synthesis of several streams
of primary data. Following are the techniques used for collecting primary data:

39

1. Observation:
i.

Natural Setting

ii.

Field experiment

2. Communication
i.

Personal Interview

ii.

Telephonic Interview

iii.

Self-administered questionnaire
a. Open ended questions
b. Closed ended questions
c. Filter

B. SECONDARY DATA:
Secondary data is when the investigator does not collect data originally for the research
enquiry but uses data already collected and available in published or unpublished from,
data.
Use of secondary data in a research enquiry saves time, finance and labour. However,
some people doubt the accuracy of secondary data. If reliable and suitable secondary data
is available, there is no harm in using secondary data for any research enquiry. Most
research requires the collection of primary data, and this is what students concentrate on.
Unfortunately, many dissertations do not include secondary data in their findings section
although it is perfectly acceptable to do so, providing it has been analyzed. It is always a
good idea to use data collected by someone else if it exists it may be on a much larger
scale and could contribute to the findings considerably. The sources of secondary data
can be classified as:

TYPE OF RESEARCH
1

Descriptive

40

SOURCE OF DATA COLLECTION

1. Primary Data
2. Secondary Data

Primary data:The data collected for first time is known as primary data. It is by visiting existing
customer and expected customer of Comet Shoes pvt. Ltd. And making them fill up the
questionnaire

Secondary data:The data which has been already collected by someone is known as secondary data:
1. Books
2. Websites
3. Brochure

Research instrument
The instrument use for data collection is structured questionnaire. Question is open and
close ended depending upon the information that needed to be elicited. I am also using
the scaling technique to assess the attitude of the customer.

Sampling
Keeping all the constrains in mind a sample size of 100 people .The sampling procedure
is systematic sampling

41

CHAPTER 4

DATA ANALYSIS &

INTERPRETATION

42

Which Brand You Prefer

Interpretation
61% said that they have any other brand shoes, 11% said that they have Nike shoes, 10%
said that they have Adidas shoes, 8% said that they have Reebok shoes and 8% said that
they have Puma shoes.
43

Which factors influence your choice

Interpretation
50% said that they influenced by the Price, 20% said that they influenced by the Style,
10% said that they influenced by the Quality, 10% said that they influenced by the
Advertisement and 10% said that they influenced by the Any other factors.

44

Do you have Puma shoes

Interpretation
12% said that they have puma shoes and 88% said that they dont have puma shoes.
45

How well you satisfied with Puma shoes

Interpretation

46

60% said that they have very well satisfied with puma shoes, 20% said that they have
well satisfied with puma shoes, 15% said that they have fairly well satisfied with puma
shoes and only 5% said that they have not at all satisfied with puma shoes.

Does Puma company brand name reflect its product quality

Interpretation

47

85% said that puma brand name reflects its product quality and 15% said that they dont
have puma shoes.

Are you satisfied with the price range of preferable brand

Interpretation

48

95% said that they are satisfied with the price range of preferable brand and 5% said that
they are not satisfied with the price range of preferable brand.

If the price of your preferred brand increase will you purchase again

Interpretation

49

40% said that they will purchase any other brand, 40% said that they will purchase cheap
brand and only 20% said that they will purchase the same brand.

Do you think weight is a factor of choosing brand

Interpretation
50

95% said that weight is a factor of choosing brand and 6% said that weight is not a factor
of choosing brand.

Do you normally switch over brand the brand

Interpretation
51

70% said that they normally switch over brand and 30% said that they dont normally
switch over brand.

What kind of promotion tool you prefer

Interpretation

52

70% said that they prefer buy one get one free, 15% said that they prefer discount, 10%
said that they prefer lucky coupon and only 5% prefer free gift.

Will you purchase another brand with same quality

Interpretation

53

70% said that they will purchase another brand with same quality and 30% said that they
will not purchase another brand with same quality.

CHAPTER 5

54

FINDINGS &
CONCLUSIONS

Findings
Do not nature and PARADIGMS because today anything is possible.

Search for newer markets than expanding your customer base.

Come out with state of the art, feature packed affordable and competitive
advantageous products.
Set Benchmarks for growth.

Improve up on distribution channels for viable coverage of the market.

55

 Wear out competition through trend setting, inimitable tactical moves based on
our infrastructure strengths.
The strategic intent should be clear down the management.

Work on your strengths i.e. Infrastructure, financial base, backward integration.

POP and MERCHANDISING material should be made as per international

market.
CORPORATE TRAINING PROGRAMMES for Development of manpower from
external faculty.

Conclusions
I have so far identified the various areas on which PUMA and other major sports
companies need to improve upon to achieve the desired level of competitiveness. These
improvements would give PUMA and the other sports companies base to compete with
the MNCs and help the Indian companies to reduce the impact of MNCs on the Indian
Market in the future. Indian manufacturers will have to react quickly because any delay
in reacting to the threat posed by the MNCs would only give the MNCs time to establish
them in the market. With their expertise and financial capacity they would be nearly
impossible to compete with once they get a firm foothold in the market.

56

57

CHAPTER 6

SUGGESTION/
RECOMMENDATION

58

PUMA in INDIA has always been driven by its Value-for-money strategy. The company
needs to identify critical success factory and work assiduously towards achieving it.

Measuring Intangibles & Valuing Diversity

The knowledge, worldwide experience and diversity that an PUMA employee can bring
to the table are valuable. Recently, how successful companies are in the global world is
increasingly derived from intangibles, such as these, that organizations cannot own.
PUMA is greatly affected by these external influences since indeed it is a global
company. For some it is not common knowledge that PUMA is a German company.
This is a result of good global business. PUMA has created a product that is global and
with that diversity and knowledge greatly affect the company. PUMA must be able to
easily adapt to different cultures and must be culturally aware when conducting business.
The long list of PUMA subsidiaries where it conducts business proves that PUMA is
constantly adapting to cultural changes and must be extremely diverse. Because of this
necessity, knowledge is greatly valued. Great changes occur in this industry and as a
result, new ideas, intuition and inspiration are an asset that is a necessity in this industry
and to remain a global company. Who leads this knowledge and maintains diversity are
the managers, yet they too are facing new changes.

59

COMPETING IN A GLOBAL MARKET

Since acquiring their current president, Louis-Dreyfus, PUMA, a wholly owned

subsidiary, has competed with a whole new strategy. Aside from cutting the whole line of
German senior management, Louis-Dreyfus also fired management in Asia, who failed to
match competitors low costs in subcontracting shoemaking to local companies. While
Louis-Dreyfus fought brings down costs, he also took a gamble on the side. PUMA
began to focus on global marketing.
Turbulent is the word that aptly describes the scenario in sports industry in last two last
financial years. By frequent price cuts in market and larger than live Marketing game
plans, competition reached its new highs and lows. It is no longer sufficient to just be
competitive. A Company, which has to survive, has got to have competitive advantage.
One needs to take strategic initiative in the short run to achieve the desired positioning
in future. One has to foresee tomorrow.

60

BIBLIOGRAPHY

61

Bibliography
SECONDARY SOURCES:
www.tandberg.net
www.adic.com
www.puma.com
www.rbk.com
Kotler Philip Marketing management (11 edition)
Chabra T.N..Marketing Management (4 edition)
Gupta S.P and Gupta M.P Business statistics (5 edition).

62

ANNEXURE

63

Questionnaire
Q1. Which brand you prefer?
a) Nike
b) Adidas
c) Reebok
d) Puma
e) Any Other
Q2. Which factors influence your choice?
a) Price
b) Style
c) Quality
d) Advertisement
e) Any Other
Q3. Do you have Puma shoes?
a) Yes
b) No
Q4. How well you satisfied with Puma shoes?
a) Very Well
b) Well
c) Fairly Well
d) Not at all

64

Q5. Does Puma company brand name reflect its product quality?
a) Yes
b) No
Q6. Are you satisfied with the price range of preferable brand?
a) Yes
b) No
Q7. If the price of your preferred brand increase will you purchase again?
a) Same brand
b) Cheap Brand
c) Any Other Brand
Q8. Do you think weight is a factor of choosing brand?
a) Yes
b) No
Q9. Do you normally switch over brand the brand?
a) Yes
b) No
Q10. What kind of promotion tool you prefer?
a) Luck Coupon
b) Free Gift
c) Discount
d) Buy One Get One Free
Q11. Will you purchase another brand with same quality?
a) Yes
b) No

65