INDUSTRIAL EXPOSURE PROJECT

On

“PUMA”
Submitted in Partial Fulfillment of the requirements for the
Award of Degree of Bachelor of Business Administration (BBA)

2015-2018

Submitted by: Shubham Mittal

Under the guidance of: MR. Shakti Sharma

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 BHARATI VIDYAPEETH UNIVERSITY
SCHOOL OF DISTANCE EDUCATION,
Academic Study Center – BVIMR, New Delhi
(A Constituent Unit of Bharati Vidyapeeth University,
Pune) An ISO 9001:2000 Certified Institute
NAAC Re-Accreditation Grade “A” University

ACKNOWLEDGEMENT

This project is a result of dedicated effort. It gives us immense pleasure to prepare

this project report on marketing strategy of “PUMA” We would like to thank our
project guide MR. SHAKTI SHARMA, for consultative help and constructive
suggestions on the matter on this project. We would like to thanks our parents and
colleagues who have helped us in making this project a successful one.

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 DECLARATION

This is to certify that I have completed a Project titled "To Study the Marketing
Strategy of “PUMA” under the guidance of MR. SHAKTI SHARMA in the partial
fulfillment of the requirement for the award of Bachelors of Business
Administration of Bharati Vidyapeeth University, New Delhi. This is an original
piece of work & I have not submitted it earlier elsewhere.

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Name of the Student: Shubham Mittal

Contents
Chapter 1: Introduction of the Business
 Nature of business.
 Type and ownership pattern.
 Organization Structure.
 Production Layout.
 Organization Policies.

Chapter 2: Industrial Analysis

 Growth rate of industry and GDP rate.
 Current issues.
 Key competitors.
 Environment scanning.
 Porter 5 forces model of competition.

Chapter 3: Marketing Strategies

 Products of company.
 4P’s of marketing.

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  Distribution channels.
 Promotion strategies.

Chapter 4: Financial Analysis

 Sources of finance.
 Net profit / Balance Sheet.

Chapter 5: Research Methodology, Objectives and Data Analysis.

 Research Methodology
 Objectives.
 Data Analysis.

Chapter 6: Key Learning of the Company.

 Performance analysis of the company.
 SWOT analysis of the company.
 Reasons for expansion, contraction and diversification of the
business.

Chapter 7: Findings
Chapter 8: Conclusion And Suggestions
Chapter 9: Annexure
Chapter 10: Bibliography

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 Preface
Practical Knowledge is an important suffix of theoretical knowledge. One cannot
rely solely on theoretical knowledge. Classroom lectures clarify the fundamental
concepts of management, but they must be correlated with the practical training
situations. It is that the practical training is made compulsory for the curriculum
and has a significant role to play in the field of business management.

I have tried my level best to make this project a real success. My project is on
PUMA, its impact on the market as the largest and on the economy. My study
would help to understand the position and growth of the company and analyze the
people survey about the quality and services of the company.

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1.1. Introduction to company
Puma is one of the world’s leading Sports Brands, designing, developing, selling
and marketing footwear, apparel and accessories. For over 69 years, Puma has
established a history of making fast product designs for the fastest athletes on the
planet. Puma offers performance and sport-inspired lifestyle products in categories
such as Football, Running, Training and fitness, golf, and Motorsports. It engages
in exciting collaborations with renowned design brands such as Alexander
McQueen and Mihara Yasuhiro to bring innovative and fast designs to the sport
world. The puma group owns the brands PUMA, Cobra Golf, Tretorn, Dobotex

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and Brandon. The company distributes its products in more than 120 countries,
employs more 11,351(2015) people worldwide, and is headquartered in
Herzogenaurach/Germany.

1942: The brothers Rudolf and Adolf Dassler found the company “Gebruder
Dassler Schuhfabrik” (Dassler brothers Shoe Factory) in Herzogenaurach,
Germany.

First successes: At the Olympic summer games in Amsterdam in 1928, a

majority of the German athletes wear Dassler spikes. In 1936, Jesse Owens wins
four gold medals at the Olympic Games in Berlin sporting Dassler Spikes. Overall,
seven gold medals and five bronze medals are won by world class athletes in
Dassler shoes and two world and five Olympic records are smashed. This
represents the international breakthrough for the Dassler brothers. 1948 Rudolf
Dassler founds the Puma Schuhfabrik Rudolf Dassler. The company is officially
registered on October 1, 1948.

1952: Shortly after the company is

founded, Rudolf Dassler successfully
develops a football boot with screw-in
studs in collaboration with experts, such as
West Germany’s national coach Sepp
Herberger. The launch of the “SUPER
ATOM” in 1952, the world’s first boot with
screw-in studs, marks the beginning of
PUMA’s highly successful heritage in
football.

1953: The successor of the screw-in football boot “SUPER ATOM” is coming to
the market: the enhanced version “BRASIL” is
being developed and tested.
1957: Rudolf Dassler introduces a san-serif
PUMA typeface, designing a word and picture
logo at the same time. One year later the second
brand logo is patented: the “form strip”, originally
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created to stabilize the foot inside the shoe, is now a typical PUMA trademark
found on almost all PUMA shoes and is used as a design element on apparel
products.

1960: PUMA partner Armin Hary continues the company’s success story is track
and field and wins gold in the 100m competition at the Olympic Games in Rome.
In the same year, PUMA becomes the first sports shoe manufacturer to use the
technologically advanced vulcanization production technique, whereby the sole
and the shaft of the boot are bonded. This innovation helps PUMA athletes to
achieve top performances.

1967: The logo with the jumping cat, today one

the most famous trademarks worldwide, is
created by Lutz Backes, a cartoonist from
Nuremberg. As the product range is extended to
include not only shoes but also sportswear, the
logo begins to appear more frequently on PUMA
products such as performance apparel and bags.

1970: Pele- again named “Player of the

tournament”- wears PUMA KING Boot and helps Brazil win the country’s third
World Cup title. Thirty years after this triumph, Pele is officially honored as
“Football Player of the Century”

1973: Basketball’s Walt “Clyde” Frazier makes a name for himself on the court
by stealing the ball from his opponents and off the court with his signature colorful
style. When he asks for a custom-made pair of suede’s, PUMA reconfigures the
original, making it lighter and wider and stamping hiss moniker on the side.

1977: In tennis, PUMA has also established a reputation as a supplier of top

athletes.

1979: eye and nuzzle are gone, and the ears are more pronounced today. PUMA’s
world famous ‘No. 1 Logo’ is introduced. Since 1979, the puma has been jumping
across the right upper corner of the word logo and it has slightly changed over the
years: the

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 1982: Diego Armando Maradona of Argentina plays
his first World Cup tournament wearing the new
PUMA TORERO Boot. The TORERO, an invention by
company founder Rudolf Dassler’s son Armin, is
equipped with a highly flexible DUOFLEX sole with
two joint zones.

1984: Evelyn Ashford wins two gold medals (100

meters/4 X 100 meters) in PUMA spikes at the Olympic Games in Los Angeles.
The ceremony wear of the German Olympic team is provided by PUMA.

1985: The 80’s are dominated by the tennis boom, triggered by the then 17-year-
old Boris Becker and his spectacular victory in Wimbledon in 1985. As the
youngest, first unseeded and first German player racket. Becker is one of the first
players to adopt a mid-top shoe. He works closely with PUMA to develop his
signature model which prevents ankle turning, therefore encouraging more risk-
taking on the court.

1986: The Company goes public as “PUMA AG” and the PUMA stock is traded
on the Munich and Frankfurt stock exchanges. Armin Dassler, PUMA CEO and
son of the company founder Rudolf Dassler, is celebrating this moment with his
colleagues from the PUMA board. In the world of football, one player is
dominating the headlines: four years after his first World Cup appearance in Spain,
Diego Armando Maradona goes down in history with his second goal in the
quarter-finals of the World Cup in Mexico against England. He passed 6 players,
touches the ball 11 times and scores the ‘Goal of the Century”. He is awarded the
Golden Ball as the tournament’s best player and leads Argentina to its second
World Cup title after 1978. Maradona had played every minute of every game –
and he had played them in KINGs.

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 Jochen Zeitz is appointed CEO at the age of
30, becoming the youngest Chairman in
German history to head a public company.
Zeitz spearheads the restructuring of PUMA,
in financial difficulties at the time, and
manages to turn it from a low price brand into
a premium Sport lifestyle company and one of
the top three brands in the sporting goods
industry.

1996: At the Olympic Games in Atlanta,

PUMA causes a stir with a creative contact lens campaign: at a press conference
prior to the games, Linford Christie appears with a white PUMA cat on top of his
pupils. PUMA’s contact lens campaign later becomes a symbol for innovative
marketing, not only in the sports industry but far beyond. PUMA signs Serena
Williams. One year later she wins her first Grand Slam Tournament, the US open.
In 2002, PUMA and Serena Williams unveil the “Serena Williams Tennis
Collection”. In the same year, she causes a stir worldwide in her skintight
“Catsuit”, wins at Wimbledon and is ranked number one in the world for the first
time in her career.

1999: PUMA launches the “MOSTRO” and

initiates one of the largest trends of the last
decades: the fusion of sports and lifestyle.
The PUMA Mostro with its typical Velcro
fastener and spike sole is a combination of
two shoes – the sprint spike from 1968 and a
surfing shoe from the 80’s. The result is a
brand new and unprecedented lifestyle shoe
which is quickly picked up by fashion icons
like Madonna. In 2002, she wears a pairs of PUMA Mostro shoes throughout her
tour and sets a worldwide trend.2002 PUMA announces the acquisition the Tretorn
Group. Founded in 1891 in Helsingborg, Sweden, Tretorn creates performance and
leisure products including Rubber boots, Footwear, Outerwear, Riding boots and
Tennis balls. The brand’s mission is to become a global premium sportswear brand

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that inspires an active, urban to country lifestyle. PUMA’s new CELLERATOR
football boot, SHUDOH is launched. At the Korea/Japan World Cup, PUMA
player EI Hadiji Diouf is selected for the FIFA World Cup All Star Team and
Korea’s Jung Hwan Ahn impresses the world by kicking Italy out with a “Golden
Goal” and securing a spot in the semi-finals for the country.

2002-2004: The PUMA partnered

Cameroon National Team arrives at the
Africa Cup of Nations without sleeves-
and takes the 2002 Africa Cup home to
Yaoundé. In 2004, the “Indomitable
Lion” follow up with their equally
controversial one-piece PUMA UniQT,
which removed unnecessary bulk and
limited shirt-grabs by opponents. FIFA
punishes the team by revoking six points
in the qualification for the 2006 World
Cup and imposes a fine. PUMA
launches a public campaign in support
of Cameroon and sues FIFA against
the prohibition of the jersey. The legal
dispute ends with a compromise and a
shared donation to a football
development project in Cameroon.
PUMA and Ferrari announce that they
have signed a multi-year contract
making PUMA the official supplier of
Scuderia Ferrari, the most successful Formula One team of all times. The
partnership with Ferrari also allows Puma to develop licensed Ferrari Footwear,
apparel and accessories for global
distribution.

2006: With 12 out of 32 teams, PUMA is the

biggest team supplier at the Football World
Cup in Germany- and for the first time in

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company history, a PUMA sponsored national team wins the World Cup: on July
9th, the Squadra Azzurra of Italy France 5:3 after penalty shoot outs in Berlin and is
crowned World Cup Champion for the fourth time. The next product innovation
from PUMA also arrives in time for the 2006 World Cup: The “SPEED BOOT
V1.06” is the world’s lightest football boot at the time, weighing barely 200g.

2011: PUMA transforms into a European

Corporation and trades under the name of PUMA
SE. With the completion of the transformation,
Franz Koch becomes Chief Executive Officer and
succeeds Jochen Zeitz after 18 years as Chairman
and CEO of PUMA AG. PUMA adds Bundesliga
Champion, Borussia Dortmund, to the first season
of the partnership headed by their charismatic
coach, PUMA partner Jurgen Klopp. PUMA star
Marco Reus plays a crucial role for Dortmund’s
ongoing success.

2012: At the Olympics in London, PUMA

outfitted track and field athletes win 19 medals, of which the Jamaican team alone
collects twelve. Usain Bolt, who finishes his second successive Olympics with
three gold medals, proves his undisputed
status as a sporting legend by becoming the
first man ever to defend both the 100m and
200m Olympic titles.

2013: The Administrative Board of PUMA

SE appoints Norwegian Bjorn Gulden as new
Chief Executive Officer (CEO), effective 1
July 2013. The former football professional
brings to PUMA an extensive international
Icon Mario Balotelli. The Italy Striker becomes the latest sporting sensation to join
PUMA’s family of star players and athletes that includes Usain Bolt, Sergio
Aguero, Cesc Fabregas, Marco Reus, Radamel Falcao and Rickie Fowler.

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2014: PUMA introduces its most powerful boot evo POWER. Inspired by the
freedom of movement of barefoot kicking, evo POWER features the most
advanced PUMA technologies to date and is designed to enhance a player’s natural
kicking ability as well as power and accuracy when striking the ball. PUMA and
Arsenal Football Club announce a long term partnership, effective 1 July 2014.
PUMA has acquired wide-ranging licensing rights to develop Arsenal branded
merchandise on a global basis. It represents the biggest
deal in both PUMA’s and Arsenal’s History.

2015: Rihanna became PUMA’s global ambassador for

Women’s training as well as serving as the PUMA
Women’s Creative Director. As Women’s Creative
Director, she also directly influences product
collections, designs and customizes classic PUMA
styles as well as creates new product lines.

2016: PUMA became the official licensed partner and

official supplier of team and Race wear to Red Bull
Racing. Puma partnered with The Weeknd as a new Global Brand ambassador and
creative collaborator.

1.2. Business Type and Ownership Pattern

Puma Energy is a privately owned company, providing us with the flexibility to
react quickly to customer’s needs. We have a special relationship with our two
strategic partners and main shareholders- Trafigura Group and Sonangol Holdings.
Although we operate at arm’s-length from both, we benefit from their management
expertise and market knowledge. PUMA SE has 9,500 employees and distributes
its product in more than 120 countries. For the fiscal year 2003, the company had
revenue of €1.274 billion. PUMA were the commercial sponsors for the 2002
anime series Hungry Heart: Wild Striker, with the jerseys and clothing sporting the
PUMA brand. PUMA ranks as one of the top shoe brands, after Reebok, Adidas
and Nike.

A type of company that offers limited liability or legal protection for its
shareholders but that places certain restrictions on its ownership. These restrictions

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are defined in the company’s bylaws or regulation and are meant to prevent any
hostile takeover attempt.

The major ownership restrictions are:

Shareholders cannot sell or transfer their shares without offering them first
to other shareholder for purchase,
Shareholders cannot offer their shares to the general public over a stock
exchange,
The number of shareholders cannot exceed a fixed figure (commonly 50).

The company has been led by CEO and Chairman Jochen Zeitz since 1993. His
contract was extended until 2012 in October 2007. Japanese fashion guru Mihara
Yasuhiro teamed up with Puma to create a high-end and high-concept line of
sneakers.

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 Gremio 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.

A privately held company or close corporation is a business company owned either

by non-government organizations or by a relatively small number of shareholders
or company members which does not offer or trade its company stock (shares) to
the general public on the stock market exchanges, but rather the company’s stock
is offered, owned and traded or exchanged privately. More ambiguous terms for a
privately held company are unquoted company and unlisted company.

1.3. Organizational Structure

An organizational structure defines how activities such as task allocation,
coordination and supervision are directed towards the achievement of
organizational aims. It can also be considered as the viewing glass or perspective
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through which individuals see their organization and its environment.
Organizations are variant of clustered entities.

An organization can be structured in many different ways, depending on their

objectives. The structure of an organization will determine the modes in which it
operates and performs. Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities such as the
branch, department, workgroup and individual.

Organizational structure affects organizational action in two big ways. First, it

provides the foundation o which standard operating procedures and routines rest.
Second, it determines which individuals get to participate in which decision-
making processes, and thus to what extent their views shape the organization’s

actions.

1.4. Production Layout

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The product line of a PUMA retail outlet generally consists of sports accessories.

The product line is divided into sections:

1) Shoes.
2) Apparels.
3) Sports Equipment.
4) Exercising/ Health Products.
Shoes
PUMA specialty is their shoes. They vary from shoes for everyday use to
professional footwear. The outlet has around “4000 different types of shoes”.
The outlet also sells floaters and sandals which have gained a tremendous
amount of popularity among the youth.

Apparels

These include T-shirts and shirts, track suits, shorts, socks and caps which a
quiet popular among teenagers, sportsmen and professionals.

Sports Equipment

Sport equipment includes like Cricket bats & balls, Tennis balls and gymnastic
equipment.

Exercising / Health Products

It also sells exercising / health products like dumbbells & weights, skipping
ropes etc. Recently Reebok has launched its Iverson Collection.

1.5. Organization Policies

Environment Policy: People involved in sports are in direct contact with their
environment. As such, environmental protection is of enormous importance to
PUMA. It is our aim not only to make the environmentally compatible production
of our sporting goods transparent to our partners and stakeholders but also to
continuously improve it. We are ecologically and socially accountable to the
environment, our suppliers, manufactures, employees, customers and- especially-
the generations to come. Ensure compliance to all legal regulations both at PUMA
and our business partner and setting standards that go beyond legal requirements.
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Enforcing the highest environmental standards benefits PUMA economically by
avoiding the risks associated with illegal non-compliance, being prepared in time
for any new regulations and by maintaining a frontrunner position to generate a
positive momentum on environmental issues within the company and our
stakeholders. Fully integrate the environmental policy into the corporate strategy
and align with key stakeholders.

Sustainability can’t be achieved by an individual department or brand alone, it

requires all the individuals and stakeholders involved to serve a common goal.
Find win-win solutions for both financial and environmental interests. We are
convinced that in the long term our reduction targets on CO2, energy, water and
waste, both corporate and production-related, will generate financial savings
through reducing resources consumption. Our efforts, combined with a more
sustainable product offering, will also help to keep PUMA staff and consumers
loyal and to generate ne consumers while reducing PUMA’s impact on the
environment.

Communicate the environmental policy to different levels of PUMA’s organization

and main Stakeholder after setting our standards; we aim to effectively
communicate its content amongst all persons working for or on behalf of PUMA,
in order to, raise awareness and enlist support in improving our environmental
performance within all divisions of PUMA, our business partners and consumers.

Strive for continuous improvement we strive to undertake more sustainable

activities and produce more sustainable products of which ae continuously
monitored against set targets.

Social Policy: As a global enterprise, PUMA recognizes its responsibility towards

the creation of humane working conditions for all employees working directly or
indirectly for us. The observance of human rights at our global production sites is
one of our fundamental requirements. Partnerships with our manufacturers are
based on mutual cooperation- in turn we expect them to pass on this cooperative
stance to their employees.

Success and jointly formulated targets can only be achieved on the basis of trust
and reliability. Such goals can’t, and must not, be realized on the grounds of

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exploitative activities such as child labor, forced overtime, or unhealthy and unsafe
working conditions.

The most important principle of PUMA’s social policy is also our most substantial
instrument of control: the code of conduct. Our code of conduct is currently
available in 32 languages and is displayed and accessible at all our production sites
worldwide.

Health & Safety: A formal health and safety committee is operating at PUMA’s
main office in accordance with the relevant legislation. During the year 2002, in
Germany the number of occupational accidents was limited to two cases, while six
accidents happened on the way to or from work and one accident occurred during
occupational sports. A similar high focus on health and safety standards at
PUMA’s suppliers is ensured by the supplier audits included in the PUMA
S.A.F.E. concept.

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2.1. Industry Overview

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Growth rate of puma:

Currency adjusted sales up by 7.6% to €772.7 million [+18.5% reported].

Strong growth in footwear driven by running and training categories.
Gross profit margin stable at 46.7% despite adverse currency effects.
OPEX increase based on additional marketing activity, IT investments and
currency impacts.
Operating income [EBIT] comes in at €6.8 million.
Tretorn trademark right sold.
PUMA-sponsored national football team of Chile wins Copa America title
for the first time.

Second-quarter sales for the EMEA region (Europe, Middle East and Africa) rose
by 3.9% currency adjusted to €270.5 million. The development was particularly
encouraging in Germany, France and Turkey, while Italy and Switzerland suffered
a decline on high comparables (last year’s world cup replica sale not repeating this
year. Sale performance in the Americas was stronger in the second quarter with
growth in both, North and Lain America. Currency adjusted sales increased by
11.6% to € 328.4 millions. In particular, Argentina and Mexico showed above
average sales developments.

Asia/Pacific (APAC) showed a satisfying second-quarter performance, with sales

rising by 6.2% currency adjusted to €173.8 million. The increase was primarily
attributable to good performance in China and India, each reporting double-digit
growth.

2.2. Current Issues

Reus and Aguero go head to head with the Deadly evoSPEED 1.3 Graphic.
PUMA introduces evoSPEED 1.3 with Dragon Graphic.
PUMA launches PWRCOOL collection with cooling technology.
Fabregas brings newly coloured evoPOWER 1.2 to the pitch.
PUMA introduces the Ferrari collection- Capsule Range of sport infused
lifestyle.
PUMA corporate press footage with CEO Bjorn Gulden.
Documentary Film “The Act of Killing” wins 2013 PUMA impact Award.
PUMA appoints Torsten Hochstetler as Global Creative Director.

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 PUMA will sign agreement on fire and building safety in Bangladesh.
PUMA appoints Andy Koehler as Chief Operating Officer.

2.3. Key Competitor

PUMA currently a distant third in the sporting-goods industry behind giants Nike
and Adidas, wants to return to its sporting roots, led by its new CEO Bjorn Gulden.
The turnaround plan abandons the company’s efforts over the past two decades
under former CEO Jochen Zeitz to focus on fashion-led consumers.

Puma, also another leading sporting brand in the world, has a long-term mission of
becoming the most desirable sport lifestyle company in the world. Europe, the
Middle East and Africa, as well as Americas are the most profitable markets for
Puma, as these regions account for nearly 70% of Puma’s consolidated sales in
2015. Describing themselves as the ‘Blue Mountains’, Puma has been trying to
incorporate more edge.

The global sports apparel market is highly fragmented, with basic discount brands
to high-end fashion name brands competing for market position. The U.S.- based
Nike is the world’s leading brand in athletic footwear and apparel, and the most
valuable sports business brand in the world. Nike has higher global revenue than
its main competitors, Adidas and Puma. North America is a key market for Nike,
as about 45% of its global revenue was North America in 2015, mainly from
footwear sales. Much of Nike’s success can be attributed to the brand’s marketing
campaign as well as sponsorship agreements with celebrity and professional sports
teams.

Adidas is the largest sportswear manufacturer in Europe, and the second largest in
the world, just behind Nike, with almost 17 billion Euros in annual revenue and a
brand value of 6.2 billion U.S. dollars. Adidas employed approximately 55,555
people worldwide in 2015. Just as Nike, footwear is the most important category
for Adidas. In 2015, nearly 50% of the Adidas Group net sales were generated by
the footwear category.

2.4. Environmental Scanning

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Political Factors

Primarily, the company started their strateg by making the brand more profitable.
This is to build a strong financial foundation. The main change that has happened
is from the accounting practices of the company. During the said changes and
process of restructure, there are different political factors that might be considered.
One of this is the environmental issues. As of now, more and more individuals and
organizations are focusing on different issues regarding the environment. The fact
that the company will be outsourcing from other countries, there are different
international as well as local laws that must be considered in order to maintain the
continuous process of the development. The trade restriction and tariffs are also
another of the most important political factors that must be considered. This is due
to the fact that the company already followed the strategy of Adidas and Nike in
outsourcing their production in Asia. The primary reason for outsourcing of
production is because, most of Asian countries offer lower labor cost and other
taxes compare to Europe and America. In terms of political stability, due to the fact
that the company is a multinational company that produce as well as sell their
products in different parts of the world, there different political issues and events in
other local partner’s that can affect the overall performance of the company.

Economic Factors

The said situation in the political factors, are somewhat connected with the
different economic factors that might affect the development process of the
company. Primarily is the situation of the home economy or the economic situation
of Germany, in terms of monetary issues, stocks exchange and the likes. The
economy trends of happenings in the home economy are also important, so as the
economic situations and trends of the partner countries. This is due to the fact that,
this political factor has a great impact to the social mentality of the possible
customers. The different employment laws in different countries must also be
considered, thus is due to the fact that different countries has their different
cultures that might affect their beliefs as well as regulations regarding the human
resource aspect of any company.

Social Factors

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There are more social factors that might affect the development process of the
company more than any other factors. This is due to the fact that social factor has
the most important impact or effect to the taste or demand of the customers
regarding one product or service. The fact that more and more people are into
sports is a big chance or advantage for the company, because there will be a huge
market for them. Another important thing is that sport is considered as one of the
most important sector in the tourism industry, which considered as the most
successful industry now-a-days. On the other hand, sports are also considered as a
form of exercise, for those who wants to have fit and healthy body.

Technological Factors

In terms of the technological factors, it focuses on the series of R&D activities as

well as applications of automation and new technologies, most especially those
that are connected to the maturity of the technology; this is due to the fact that
technology is considered as restless in terms of development. Furthermore, the
global communication is also another important aspect, this is important because
the company is operating in different part of the globe. It is also important to
consider the different laws like the intellectual property issues.

2.5. Porter 5 Forces Model of Competition

PORTER’S FIVE FORCES FRAMEWORK

Bargaining Power of Supplier

If suppliers are powerful then they can influence or impact the company too much.
Strong buyers require

Significant cost.
Supplier’s power to meet buyer’s power.
Brand should be powerful.
Desire and devotion of suppliers.
Customers need and targeted customers.

PUMA is strong at all and has potential suppliers all over the world. In 2000
PUMA has distribution and sub-contractors mastery, cheap labor and raw

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materials, low tariff and duties of a country, the bargaining power of suppliers was
comparatively very low.

Bargaining Power of Customer or Buyer

Bargaining power largely depends over the customer’s consumption capacity and it
plays vital role in making company’s position better in the market. PUMA has
several brands and product lines to attract a lot of customers having affordability
and reliability in their products. PUMA at one time started producing high quality
expensive products for its customers but at that time customers and media also
portraye a wrong image. The largest menace business had been that its products
were exciting at very great price which could have activated the customer’s need to
alter to the low price brands. So when buyers carry such huge bargaining power
company has to modify its operations and products according to the needs of the
customers.

Threat of Substitutes

The company has many brands and substitutes to compete with any other substitute
but in 2000 when the company faces criticism by media the company engaged in
marketing activities to overcome the negative impact on consumers but it give
palace to sale of on substitutes in market. But it was for the limited time because
puma is the name of Victory. PUMA has several competitors who produce
substitutes for their products:

Direct competitors of Puma are

 Adidas
 Fila
 Nike
 Reebok
Indirect competitors of puma are
 Non-athletic footwear brands.
 Crocs.
 K-Swiss.
 Converse.
 Sketchers.
 Timberland

26
Company had made very strategic change and it enters into the partnership with
President Clintons Apparel Industry Partnership (AIP). The company also
introduced its Corporate Social relationship strategy to give strength to itself. It
also participated in the Fair Labour Association which has aim to monitor the
working conditions of all companies. Several steps are taken by this company
regarding environment and need of time.

Threat of New Entrants

Now days the company has no threat from the new entrants but in 2000 it has faced
some situation. Regarding this but overall puma was a market leader with 45%
global market share at the time of criticism and has strong position. Now company
has developed its name and market so it has no major threats regarding new
entrants another major reason that no new entrant is possible that easily is that the
cost of production is really very high. So those who are already operating are
enough to a deal with customer needs. For successful business operation one needs
to have high capital in the start which results in their market catastrophe.

27
28
3.1. Product of Company
PUMA is represented in the market under four product categories: footwear,
apparel, accessories and product licenses. With phase III of PUMA’s growth plan,
our preliminary growth drivers are anticipated to be the apparel and footwear
segments.

With the adoption of new technologies, designs, forms and materials, we are trying
to create a new product offering that is as unique and distinctive as the PUMA
brand.

We expect the apparel category to achieve stronger growth than the footwear
sector during 2003, in line with our long-term goal for apparel to reach 40% of
sales. During 2003, PUMA has announced two more licensing agreements for the
European market: Schiesser Lifestyle GmbH has granted the license for PUMA
body wear and Le Bonita’s S.p.A. obtained the license for PUMA Swimwear. With
these recent licensing’s, we have successfully extended our product range.

While we will continue to selectively explore new fields of business, PUMA

currently covers the essential licensing segments planned to-date and will
concentrate on strengthening our licensing business internationally.

1. Sportswear
Sportswear or active wear is clothing,
including footwear, worn for sport or
physical exercise. Sport-specific clothing is
worm for most sports and physical exercise,
for practical, comfort or safety reasons.
Typical sport-specific garments include
shorts, tracksuits, T-shirts, Tennis shirts and
Polo shirts. Specialized garments include
ski suits (for skiing) and leotards (for
gymnastics). Sports footwear includes
trainers. It also includes some underwear,
such as the jockstrap and sport bra.
Sportswear is also at time worn as casual
fashion clothing.

29
 For most sports the athletes wear a combination of different items of
clothing, e.g. sport shoes, pants and shirts. In some ports, protective gear
may need to be worn, such as helmets or American football body armor.

2. Apparel
These are developed under the guidance of experts
at the manufacturing unit of our vendors. The
products that are offered ideal to be worn for
morning walks, sports and aerobic classes. All the
products are in accordance with contemporary
fashion trends and are extremely comfortable.

3. Fashion Accessories
A fashion accessory is an item which is used to
contribute, in a secondary manner, to the wearer’s
outfit, often used to complete an outfit and chosen
to specifically complement the wearer’s look. The
term came into use in the 19th century.

3.2. Four P’s (Product, Price, Place, Promotion)

Product in the marketing mix of PUMA

Puma has a wide range of footwear, sports goods, and sportswear and fashion
accessories. PUMA is also the main producer of enthusiast driving shoes and race
suits. As matter of fact, the company is the sole producer of NASCAAR and
Formula1. In addition to that, the company has partnership with BMW and Ferrari.

Through its collaboration with renowned designers such as Alexander McQueen,

Rossi and Yasuhiro Milharaand, PUMA has established itself as a reliable brand
that can be depended upon to offer quality products. Specifically the company
produces the following products:

Sports Shoes.
Custom made shoes.

30
 Apparels.
Fancy shoes.
T-shirts.
Tracks.
Boxer’s accessories.
Gloves.
Helmets.
Water bottles.

Pricing in the marketing mix of PUMA

Puma’s product prices are affordable when compared to higher priced competitors
like Reebok and Adidas. The pricing strategy employed is designed to offer
competition to is rival companies. Moreover, PUMA normally uses premium
pricing strategy because Puma views its brand as premium. Thus, Puma will be
higher pried when compared to a competitor like Bata, Adidas and Reebok are the
only closest competitors for Puma, pricing of who is comparatively higher than
Puma. Due to the brand name it enjoys, the pricing of Puma products look
convincing most of the times.

Place in the marketing mix of Puma

Puma shoes are mostly distributed storefronts as well as the exclusive Puma stores
that can be found in major cities in the world. This necessities a wider selection of
shoes and accessories to customers than the competition. With big distribution
network coupled with harnessing resources and experience, it is a brand available
almost everywhere.

Also Puma is continuously focusing on retail expansion as can be seen with its
aggressive opening of new stores in various countries throughout the world. This is
not only meant to bring the products closer to the consumer but also drive its brand
and generate profits. As a matter of fact, Puma has vowed to continue to expand its
consumer base and full integrate its retail store online.

Promotion in the marketing mix of Puma

The company’s advertisement strategy in India focuses more on revenue

generation from cricketing equipment and sponsoring Ranji Trophy. But the

31
company also spends a lot of money advertising in print media and designing
creative billboards. Also, there is a greater focus on football gear revenue.

Other advertising strategies include the following

Television commercials.
Online customization options
Excellent apparel packaging
Engaging in corporate social responsibility like environmental pollution
control.

Sales promotion is also another marketing strategy employed by Puma and this
comprises of various short-term incentives that encourage more purchases and
trials of the products.

The following celebrities have endorsed puma as a brand

Badminton
Tennis Gears
Cricket Equipment
Health Academy

Puma is also playing its public relations game well. For instance, the company
sponsors trophies in order to promote and protect its images.

3.3. STP (Segmentation, Targeting, Positioning)

Marketing Strategy and Market Segmentation

Market Segmentation

It is the act of dividing a market into distinct groups of buyers who require
separate products.
Its market research division has segmented consumes on the basis of
following:
o Geographic Variables.
o Demographic variables.
o User status and lifestyle.

32
Market Targeting

Act of developing measures of segment attractiveness.

Involves evaluating various market segments.
It targets different segments of population of all categories of age groups.
Also targets the population outside India.

Market positioning

Market positioning is the manipulation of a brand or family of brands to create a

positive perception in the eyes of the public. If a product is well positioned, it will
have strong sales, and it may become the go-to brand for people who need that
particular product. Poor positioning, on the other hand, can lead to bad sales and a
dubious reputation. A number of things are involved in market positioning, with
entire firms specializing in this activity and working with clients to position their
products effectively.

When a product is released, the company needs to think beyond what the product is
for when it comes to positioning. It also thinks about the kinds of people it wants to
buy the product. For example, a luxury car manufacturer might be less interested in
promoting reliability, and more interested in promoting drivability, appealing to
people who are looking for high-end cars which are enjoyable and exciting to
drive. Conversely, a company making mouthwash might want to go for the bottom
end of the market with an appealing low price, accompanied by claims asking
consumers to “compare to the leading brand” so that they can see that the product
contains the same active ingredients as a famous brand, at a much lower price.
Market positioning is a tricky process. Companies need to see how consumers
perceive their product, and how differences in presentation can impact perception.
Periodically, companies may reposition, trying to adjust their perception among the
public. For example, a company might redesign product packaging, start a new ad
campaign, or engage in similar activities to capture a new share of the market.

Marketing strategy adopted

Advertisement

33
1. Television. 2. Radio. 3. Internet. 4. Newspaper/magazines. 5. Hoardings

3.4. Distribution Channel

Puma shoes are mostly distributed to multiband storefronts as well as the exclusive
Puma stores that can be found in major cities in the world. His necessitates a wider
selection of shoes and accessories to customers than the competition. With big
distribution network coupled with harnessing resources and experience, it is a
brand available almost everywhere.

Also, Puma is continuously focusing on retail expansion as can be seen with its
aggressive opening of new stores in various countries throughout the world. This is
not only meant to bring the products closer to the consumer but also drive its brand
and generate profits. As a matter of fact, puma has vowed to continue to expand its
consumer base and full integrate its retail stores online.

Distribution of products takes place by means of channels. Channels are set of

interdependent organizations (called intermediaries) involved in making the
product available for consumption to end-user. Merchants are intermediaries that
buy and resell products. Agents and brokers are intermediaries that act on behalf of
the producer but do take title to the products.

34
3.5. Promotions Strategic
The company’s advertisement strategy in India focuses more on revenue
generation from cricketing equipment and sponsoring Ranji Trophy. But the
company also spends a lot of money advertising in print media and designing
creative billboards. Also, there is a greater focus on football gear revenue.

Other advertising strategies include the following:

Television commercials
Online customization options.
Excellent apparel packing.
Engaging in corporate social responsibility like environmental pollution
control.

Puma’s restructuring was but one part of its new success story. The other was its
innovative marketing plan. At its core was he positioning of the puma brand as an
international performance sports brand for high quality athletic shoes, sport shoes,
sport textile and accessories. The company also based its innovative marketing
concepts on the latest trend research, earlier ignorance of which had in part caused
puma’s downturns.

Marketing

Puma’s marketing strategy seeks to establish the brand as an icon that extends its
lead in the sport lifestyle market. The key to achieving the position is to maintain a
culturally relevant message that connects with its consumers despite a cluttered
media environment.
35
In 2005 puma’s marketing strategy centered on code campaigns such as hello, new
stuff and so fast, which portrayed its products in a way that is endemic to the
brand. Whether showcasing PUMA sports or lifestyle stories, these campaigns
were an authentic view into the qualities of playfulness, uniqueness and innovation
that embody PUMA. In 2006, puma’s brand message continued to evolve. For
much of the year, its marketing focus emphasized PUMA’s roots and innovation in
football. Campaigns surrounding Africa and welcoming the world to football
established the brand as one of the preeminent icons in the sport. In addition, the
year saw puma branch out into new categories. With the launch of puma golf, the
band established itself in a market that is in much need of same color. And
building upon its premier to performance and lifestyle products. Regardless of the
campaign, PUMA seek to include the message of spontaneity, discovery,
performance, design, imagination, innovation and individuality in all of its brand
communications.

Advertising campaign

The puma advertising campaign reinforces PUMA’s heritage as performance

sports brand whose product excellence is derived from highly advanced
technology. PUMA which has a long history of leading edge technical
advancements revolutionized the sporting goods industry earlier in 1996 when it
launched cell technology and become the first athletic footwear manufacturer in
the world to introduce a foamless midsole running shoe. Using sophisticated
computer analysis, PUMA developed amid-sole made of interlocking polymer ells
that are differentiated in size, thickness firmness and height to create a running
shoe that provides better support, motion control and cushioning and lasts 50%
longer than foam-based running shoes. In its third year, the “Hello” print
campaign, shot by framed photographer Juergen Teller, continued to offer a natural
view into UMA’s personality. The rawness and candor of teller’s 2005 images
showcase PUMA as a brand that applauds self-discovery and inventiveness.

As in 2004, the photos from the 2005 campaign incorporated PUMA people and
athletes into various life situations wearing PUMA sport lifestyle product. The
innocence of the “Hello” tag line conveys PUMA’s openness as a brand. This
campaign acts as an introduction to the brand’s voice and is only the first step of
revealing a deeper message.

36
Puma introduced the award-winning “New Stuff” campaign in 2005 as a way to
showcase its design leadership. New stuff and TV executions highlighted the
freshest new PUMA styles and its commitment to provide customers with
innovative sort lifestyle products. The campaign was visually fresh and clean with
crisp photography that drew attention to the products.

For Q1 of 2005, the TV and print executions buit upon the aesthetic from the
previous season and incorporated people into the series.

Publicity

It is the movement of information with the effect of increasing public awareness of

a subject. The subjects of publicity include people (for example, politicians and
performing artists), goods and services, organizations of all kinds, and works of art
or entertainment.

Sales Promotion

Sales promotion is also another marketing strategy employed by PUMA and this
comprises of various short-term incentives that encourage more purchases and
trails of the products.

Puma I also playing its public relations game well. For instance, the company
sponsors trophies in order to promote and protect its image. Sales promotions are
the set of marketing activities undertaken to boost sales of the product or service.
Sales promotion is any initiative undertaken by an organization to promote an
increase in sales, usage or trial of a product or service (i.e. initiatives that are not
covered by the other elements of the marketing communications or promotions
mix). Sales promotions are varied.

37
4.1. Ratio Analysis

38
Ratio analysis is a form of financial statement analysis that is used to obtain a
quick indication of a firm’s financial performance in several key areas. The ratios
are categorized as short-term solvency ratios, debt management ratios, asset
management ratios, profitability ratio and market value ratios. Following ratios has
been discussed below:

Quick Ratio: it is a vital financial ratio that provides managers with the
number of dollar of liquid assets on hand to cover each dollar of existing
debt. It is important in determining solvency. The ratio reveals the safety
afforded sort term creditors in cash or near cash assets. It shows the number
of dollars of liquid assets on hand to cover each dollar of current debt. Any
time this ratio is as much as 1 to 1, (1.0) the business is said to be in liquid
condition. The larger the ratio, the better the liquidity.
Current Ratio: it measures the degree to which current assets cover current
liabilities. The higher the ratio the more assurance exists that the
sequestration of current of current liabilities can be made. The current ratio
measures the margin of safety available to cover any possible shrinkage in
the value of current assets. By and large, a ratio of 2:1 is good.
Current Liabilities to net worth: it is to net worth compares the funds that
creditor provisionally are risking with the funds permanently invested by the
owners. The lesser the net worth, and the larger the liabilities means less
security for the creditors. Be careful when selling any firm with current
liabilities greater than 66.6% (or2/3) versus net worth.
Current liabilities to Inventory: it is to inventory combines with net sales to
inventory to indicate how management controls inventory. According to
D&B , large increases in sales with resultant increases in inventory levels
can cause an unsuitable rise in current liabilities if growth isn’t managed
prudently
Total liabilities versus net worth: The effect of long term obligations on a
business can be computed by comparing this proportion of current liabilities
to net worth the difference will focus on the relative size of long term debt,
which can encumber a firm with significant interest charges. This shouldn’t
exceed net worth at all, because then creditors would have a greater stake
than the firms owners would.

39
 Fixed assets to net worth: A low ratio is preferred with a high ratio being
adverse, because with heavy investment in fixed assests indicates a low net
working capital and is overtrading or has utilized large funded debt to
harmonize working capital. Normally fixed assets above 75% of net worth
indicate likely over investment, and should be checked.
Gross Profit ratio: It expresses the relationship of gross profit to net sales. It
is expressed in percentage. It is computed as
GrossProfit
Gross Profit Ratio= ×100
Net Sales
Net profit ratio: A ratio of net profit to sales is called Net profit ratio. It
indicates sales margin on sales. This is expressed as a percentage. The main
objective of calculating this ratio is to determine the overall profitability.
The ratio is calculated as
Net Profit Ratio=net profit /net sales × 100
Operating Ratio: Operating profit is an indicator of operational efficiencies.
It reveals only overall efficiency. It establishes relationship between
operating profit and net sales. This ratio is expressed as a percentage. It is
operating profit
calculated as operating ratio= net sales
×100

operating ratio=gross profit−( Administration expenses+ sellingexpenses )

4.2. Net Profit / Balance Sheet Analyses

40
41
42
43
44
5.1. Research Methodology
Research Methodology is a way to find out the result of a given problem on a
specific matter or problem that is also referred as research problem. In
methodology, researcher uses different criteria for solving/searching the given
research problem. Different sources use different type of methods for solving the
problem. If we think about the word “Methodology”, it is the way of searching or
solving the research problem.(Industrial Research Institute, 2010) research is “the
manipulation of things, concepts of symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction
of theory or in the practice of an art.”

PUMA introduces thousands of new products as seasons or collections every

year.
The average footwear product takes 18 months to engineer, commercialize
and appear on retailer shelves, but quick to market products can move
through the same process in less than 90 days.
Continuous improvement in material shows increasing list of construction
choices that must be tested and approved before being included in any
product.
Despite the availability of digital product representations of products, our
industry requires physical product samples to test, approve and sell
effectively.

Basic Research

The Research which is done for knowledge enhancement, which does not have
immediate commercial potential, which I done for human welfare, animal welfare
and plant kingdom welfare is called basic, pure, fundamental research. The main
motivation is to expand mans knowledge, not o create or invent something. There
is no obvious commercial value to the discoveries that result from basic research.

5.2. Objectives
To study the customer grievance handling program.
To study the human resource management.
To study the production layout.

45
5.3. Data Analysis
Data Collection

Data was collected through secondary data as well as primary data.

Secondary Data:

Source of secondary data was collected with help of published reports and
websites. Secondary data are the data, which already exists somewhere.

It products starting point for research and after that the advantage of low cost and
ready availability. Secondary data can be divided into two types:

Internal data
External data

When researcher uses the data that has already been collected by other data are
called secondary data. It can be obtained from journals i.e. internal sources report,
government publication and books, professional bodies etc.

Primary Data

Primary data is a data which is done through questionnaires, interviews etc. it does
not exist anywhere. It is the practical research.

5.4. Data analysis on the basis of

Annexure
Questionnaire
According to our survey from 30 people

Ques 1: Do you prefer wearing sport

shoes?

1) Yes 2) No

Interpretation: According to the

survey 27 people out 30 likes to wear
sport shoes.

46
Ques 2: Are you a brand conscious?

1) Yes 2) No

Interpretation: According to the survey

20 people out of 30 are brand conscious.

Ques 3: If you are going to buy a pair of

sports shoes, which brand would you
like to choose?

1) PUMA 2) Nike 3) Adidas 4) Other

Interpretation: According to the survey

Nike, Puma and adidas is main
competitor in the market.

Ques 4: Are you satisfied with the quality of preferred

brand?

1) Yes 2) No

Interpretation: According to the survey 28 people

out of 30 are satisfied with their preferred brand.

47
Ques 5: Are you satisfied with the price range of
preferred brand?

1) Yes 2) No

Interpretation: According to the survey 20 people out

of 30 are satisfied with the price range of their
preferred brand.

Ques 6: If the price of your preferred brand

increases which brand you preferred then?

1) Same brand 2) Other brand 3) Cheaper

brand

Interpretation: According to the survey

Maximum people are satisfied with same brand
and only.

Ques 7: What are the main factors if you switch

to buy footwear of another brand?

1) Quality 2) Price 3) Innovation 4)

Advertisement

48
Interpretation: According to the survey maximum people will switch their brand
if quality will decrease.

Ques 8: Are you brand loyal to any brand below in

terms of footwear in the sportswear industry?

1) Nike 2) Adidas 3) Puma 4) Others

Interpretation: According to the survey more

people are loyal to Nike and Puma.

Ques 9: Do you have any complaint regarding the

product or brand?

1) Yes 2) No

Interpretation: According to this question, we can

see that 95% of people have no complaints regarding
the product or a brand and rest 5% of the people are
having the complaints about the products or a brand.

Ques 10: Do you want any changes in the PUMA

product or Services?

1) Yes 2) No

Interpretation: According to this question, we can see

that 10% of people want the change in the products or

49
the services provided by the Reebok company and rest 90% of people are satisfied
with products and their services.

50
6.1. Performance Analysis of the company
Evaluation of non-functional properties of a design (such as performance
dependability, security, etc.) can be enabled by design annotations specific to the
property to be evaluated. Performance properties, for instance, can be annotated on
UML designs by using the quot; UML profile for Schedulability. Performance and
time (SPT) and quot; however the communication between the design description
in UML and the tools used for non-functional properties evaluation requires
support, particularly for performance where there are many alternative
performance analysis tools that might be applied. This paper describes a tool
architecture called PUMA, which provides a unified interface between different
kinds of design information and different kinds of performance models, for
example Markov models, stochastic Petri nets and process algebras, queues and
layered queues. The paper concentrates on the creation of performance models.
The unified interface of Puma is centered on an intermediate model called Core
Scenario Model (CSM), which is extracted from the annotated design model.
Experience shows that CSM is also necessary for cleaning and auditing the design
information, and providing default interpretations in case it is incomplete before
creating a performance model.
6.2. Reasons for the expansion/ contraction/ diversification of company
Puma, the global brand known for its lifestyle sports apparel and shoes, is looking
to strengthen its position in India. It is eyeing the top slot in the segment via a
nationwide network expansion as well as the launch of its global brands pitched at
the Indian sports enthusiast. Abhishek Ganguly, the new managing director of
PUMA India, is looking to reposition the brand in the country. Puma is currently in
the second spot behind Adidas in India’s ₹ 5000 crore sportswear market, followed
by Nike. “We are in process of creating strong brand awareness through various
marketing and product launch initiative,” Ganguly said. “We are bullish on India
and we have seen a major shift to high end products by Indian consumers. Hence,
we want to bring our global sports assets to India shortly.
From its global kitty, Puma has already launched two leading shoe brands,
Mobium and Faas, in India. The Mobium Ride, priced at about ₹ 9000, is built for
the more traditional heel striker looking for an everyday running shoe. The
company also launched the Night cat Powered edition under Mobium brand. The
Faas 600$ is priced in the ₹ 8000 range in India.

51
According to Ganguly, Indian consumers are ready to move into high-end
technical shoes which costs ₹ 10,000 - ₹ 15,000 for daily jogging. “ A few years
ago, we saw the trend of buying any kind of sports shoes for jogging by Indian
middle class families. Now a day, they are more brands conscious, unable to
compromise on quality and ready to pay premium for the sports shoes,” he said.
According to data from the Registrar of companies, Adidas generated sales of
₹625 crore in financial year 2011-13, while Puma had sales of ₹ 497 crore, ahead
of Nike (₹ 385 crore) and Reebok ( ₹ 125 crore). Puma had registered India sales
of ₹ 352 crore in the previous fiscal year.
Puma will continue their investments in India by adding more stores in cities as
well as Tier-II cities. “We don’t believe in setting up more stores just for the sake
of expansion. We are looking select pockets, “Ganguly said, adding that the
company has identified new malls coming up at Mumbai, Delhi and Hyderabad to
start the new stores. On the marketing front, Puma has launched the ‘Forever
Faster’ campaign and is partnering with the Indian Super League football
franchise. On the product side, the company is bringing another range of brands
which for elite runners and more expensive than the Mobium and Faas series.
Forever faster was Puma’s effort to re-establish the brand by highlighting its users
in area of football such as Arsenal, Balotelli and running.
Product diversification involves addition of new products to existing products
either being manufactured or being marketed. Expansion of the existing product
line with related products is one such method adopted by many businesses. Adding
tooth brushes to tooth paste or tooth powders or mouthwash under the same brand
or under different brand extensions or product extensions to increase the volume of
sales and the number of customers.

6.3. SWOT Analysis

Strength:
Puma is established over 90 countries and employs around 8300 employees
all over the world.
Puma is the main producer of enthusiast droving shoes and racing suits in
both Formula One and NASCAR.
Puma has entered into partnerships with famous companies like Ferrari and
BMW.
Puma brand is very innovative and has a very rich Research and
Development team. The company produced the first screw boots for football
and “Mexico 68” with the innovative brush soles, which were the most
comfortable running shoes.
52
 Puma has an excellent brand throughout the world.
The brand has excellent management and marketing strategies and has the
advertised the products very well and eye-catching throughout the world.
Puma has entered into sponsorships with various players and teams in
different sects of the sporting industry.
Puma was the official sponsor of the FIFA football World Cup.
Weakness:
Puma has tough competition and limited market share compares to Nike and
Adidas.
The company has less financial strength compared to the others brands in the
industry.
Threats:
The current economic situation is very bleak, hence expansion is minimal.
There is extensive completion from existing players an new players which is
growing in the industry.
Limitations of the brand are extensively increasing.
Competitors:
Nike
Adidas
Prada

53
54
Based on the critical analysis done with SWOT, the following
recommendations are suggested. Starting from the priority matrix of nine
and urgency and important level three.
Puma though having some very unique featured easy tone, variants among
the product is very less when compared to the other brands in the same
category, still Puma can claim that it has custom made shoes which gives
customer the variation and to their likeness, the basic product is the same,
which will not change the mindset of the customer.
Puma have to develop new variants within the product line in order to satisfy
all its customer needs. Puma has very good secondary market but with
regards to Easy tone there is a large potential in secondary markets which
they had missed out as they concentrate mainly on their low range products
which put them in second to NIKE, but lose their position in terms of
product like Easy tone which has technical values and change the brand
image from discounted brand to high street fashion, sports and fitness brand,
which can be overcast by more ethical media averts and focusing on the
fitness loving women category in these markets.
The other weakness of Easy tone is its vertical integration, where it does not
involve any whole selling like its sister concern Adidas, this make them to
rely on its retail outlets for its maximum sales where as other brands have
horizontal integration which spreads their market area, PUMA should come
out of its present integration and spread its market area which in turn will
create more opportunity for sales and market share. In terms of new product
development, like the fusion of music, sport and entertainment.
Puma should try combining sport, fitness and casual models. Easy tone
concentrates only on it focused group which is an advantage to maximize is
sales but should also think of the other segments like the male fitness loving
groups, though by its advert and promotions the product in not much
relevant to male segments, still using Easy tone to tone our leg, calf muscle
and hamstring.
This would have put Easy tone on the wider market and increased sales. The
adverts should have casted both male and female models where the male
segments concentrate on the calf and hamstring, the female segments with
butt. In the era where the macro elements talk more about environment and
human rights and work ethics Puma should have adopted to those factors
55
much earlier wherein it wouldn’t have faced legal and ethical threats, having
manufacturing units in Asia and Pacific regions will provide them with cost
effectiveness, but always have the risk of standards in manufacturing and
work culture, the recent change in their work environment ethics will clear
any further damage to the brand but still whatever it faced will always
impact the future market.
By changing the pricing strategy where it priced premium price for Easy
tone had a negative impact in the market, the change in pricing methods
should have happened in slow phase, rather than suddenly increasing its
price because of its innovative technology and feature. Though this created a
new brand image in the market customers were ready to wait for the price
fall, which they have always experienced with Puma in the past.

56
57
Conclusion
Majority of the customers i.e. (95%) are aware about PUMA
shoes.
Friend i.e. (80%) is the most important source through which
customers came to know about PUMA shoes.
Price i.e. (50%) & quality i.e. (40%) are the factors which
influence the customers to purchase to PUMA shoes.
Puma i.e. (90%) is the most preferred brand of sports shoes in
German.

Suggestions
There are still efforts are needed to make people aware about Puma
shoes. Puma Company must provide after sale service to their
customers. Companies shall introduce or increase the range of their
product in respect of price so that a lower middle class people may also
afford to have Puma shoes.

58
59
Full Name: _________________________
Gender 1) Male 2) Female
Address:
__________________________________________________________________
________
Profession: _________________________
Contact No.: _______________________
Ques 1: Do you prefer wearing sport shoes?

1) Yes 2) No

Ques 2: Are you a brand conscious?

1) Yes 2) No

Ques 3: If you are going to buy a pair of sports shoes, which brand would you like
to choose?

1) PUMA 2) Nike 3) Adidas 4) Other

Ques 4: Are you satisfied with the quality of preferred brand?

1) Yes 2) No

Ques 5: Are you satisfied with the price range of preferred brand?

1) Yes 2) No

Ques 6: If the price of your preferred brand increases which brand you preferred
then?

1) Same brand 2) Other brand 3) Cheaper brand

Ques 7: What are the main factors if you switch to buy footwear of another brand?

1) Quality 2) Price 3) Innovation 4) Advertisement

Ques 8: Are you brand loyal to any brand below in terms of footwear in the
sportswear industry?

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1) Nike 2) Adidas 3) Puma 4) Others

Ques 9: Do you have any complaint regarding the product or brand?

1) Yes 2) No

Ques 10: Do you want any changes in the PUMA product or Services?

1) Yes 2) No

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