TITLE OF PROJECT

MARKETING MIX OF PUMA PVT LTD

Project by : Ahmed.Nasim.kazi

DECLARATION

I hereby declare that the dissertation titled Marketing mix of Puma pvt ltd, marketing
and the Competitive Scenario of the Retail Sector in India: An Analysis of marketing ,
Implications & Perspectives) submitted for the BMS Degree of University of Mumbai at
BCCAs Institute of Management Studies, is my original work and the dissertation has
not been plagiarized or formed the basis for the award of any other diploma or degree,
associate ship, fellowship or any other similar titles.

Place: Mumbai
Date:
(XXXXXXXXXXX)
Signature of the Stude

Certificate
This

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that

________________________________________
bonafide research work carried out by
_____

the

dissertation

__________________

titled
is

the
Mr.

student of BMS III Year, Sem.-V, for the Academic Year 2014-2015 at

BCCAs Institute of Management Studies (Affiliated to University of Mumbai) in partial

fulfillment of the requirements for the award of the Degree of Bachelor of Management
Studies of University of Mumbai and that the dissertation has not formed the basis for
the award previously of any degree, diploma, associate ship, fellowship or any other
similar title.

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ACKNOWLEDGEMENTS

I am grateful to

BCCAs Institute of Management Studies

(Affiliated to University of

Mumbai) for giving me an opportunity to pursue BMS. I wish to thank I/c Principal, Dr. Haider-EKarrar, who has been a perpetual source of inspiration and offered valuable suggestions to
improve my Research work.

I am thankful to my Research Guide Professor XXXXXXXXX, for abundant guidance, support,

and encouragement throughout my study.

I wish to express my gratitude to various people from the xxxxxxx sector for providing me
valuable information.

I would like to express my thanks to my family, friends and colleagues for their unfailing support.

Place: Mumbai
Date:

May , 2012

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( Name )

TABLE OF CONTENTS

Chapter
No

Title

INRODUCTION TO COMPANY

1.1 COMPANY PROFILE

1.2 COMPANY HISTORY
1.3 BRAND COMMUNICATION
1.4 BRAND LIFE CYCLE

SWOT ANALYSIS

2
2.1 Strengths
2.2 Weaknesses
2.3 Opportunities
2.4 Threats

Brand Strategy

Research & Development

THE COMPETITORS

The Environment in India

marketing mix 4 p's

7.1 PRODUCT
7.2 PRICE
7.3 PLACE
7.4 PROMOTION

Page
No

CHAPTER-1 INRODUCTION TO COMPANY

1.1 COMPANY PROFILE

It was founded in 1924 and has head quarters

in Germany .
In 1948 , Adolf Dassler split from his
brothers company , Adidas to form his
own company called Puma.
Puma is a large German multi national
company which designs and develops
athletic shoes, lifestyle footwear and other
sports wear and accessories.
The company also offers lines shoes and
sports clothing, designed by
Lamine Kouyate, Amy Garbers, and others.
It distributes its product in more than 120 countries, employs
more than 9000 people and generates revenue of $2.5 millions.
They sponsor many football teams all over the world and have a
big involvement in terms of sponsorships in the football matches
and players.
Puma is partnered with several major national soccer leagues in

countries such as Germany and Egypt.

1.2 COMPANY HISTORY

1920: Rudolf Dassler and his brother Adolf start making sports
shoes.
1924: Foundation of GebrderDasslerSchuhfabrik,
Herzogenaurach, Germany.
1959: The company is transformed into a limited partnership
named PUMA-Sportschuhfabriken Rudolf Dassler KG.
1986: Transformation into a stock corporation.
1994: The first profit since the company's IPO in 1986 is
regeristered.
1998: Puma merges sports and fashion. The company starts a
cooperation with designer Jil Sander.
1999: Puma becomes an official on-field supplier of the INDIA
National Football League (NFL).
2007: Acquisition of the Scandinavian Tretorn Group.
2013: Voluntary public take-over by Pinault-PrintempsRedoute
(PPR); Prolongation of the contract with Jochen Zeitz by five
years.

1.3 BRAND COMMUNICATION

Clean & Modern typography

letting the products speak for themselves.
Refined color palette
Layout

Logo identity & placement

-Master logo
-Typography logo
-Leaping cat logo
-Super cat logo

1.4 BRAND LIFE CYCLE

(BLC) has to do with the life of a brand in the market with respect to
business/commercial costs and sales measures.
Four Stages
Market introduction stage

Growth stage

Maturity stage

Saturation and decline stage

2.1 STRENGTHS
Puma is very competitive organization.
Financial growth is phenomenal
More diversified than its competition
Wide array of shoe- wear
Strategic acquisitions with reputable companies.
Brand stands for quality, latest technology and prestige.
Favorable brand recognition
Increase in demand is the expected market trend
Global brand
Pumas top management is highly marketing oriented, and most
of the key personnel come from marketing background. This is
strength in this business because industry is market driven
instead of product driven.

2.2 Weaknesses
Less of promotional activities done by the company and not
much of advertisement.
They have diversified range of spot products but income of the
business heavily depends upon its share of footwear market.
Retail sector is very price sensitive. However, most of its
income is derived from selling into retailers.
Profit margins tend to squeezed as retailer try to pass some of
the low price competition pressure onto Puma.

2.3 Opportunities
Open more stores !!!
Product development
Strong global recognition
Expand in markets which has more disposable income.
Participate in global marketing events like world cup. Olympics,
etc
Owners believes that Puma is not a fashion brand. However, like
it or not consumers that wear Puma product do not always buy it
to participate in sports. Being more focussed on youth, Puma is
certainly a fashion brand. This creates its own opportunity,
since the product could become unfashionable before it wears
out i.e, consumers need to replace shoes.

2.4 Threats
Harsh competition and to keep- up with the competitions
penetrating efforts will cost a lot of money and pressure on
marketing and R&D.
Short PLC play important role in the ROI in a particular product
line.
Weaking markets may be serious threat.
Puma exposed to international trade. Fluctuation in currency
affects costs and profits margin of the company.

3. Brand Strategy
Bringing distinctive designs and a global outlookby blending
influences of sport, lifestyle and fashion
Maintaining vigilant watch over distribution channels
Solid guidance and strict alertness for licensee

4.Research & Development

PUMA has always being investing hugely in R&D and its
companys biggest strength.
1949: Rudolf Dassler has the idea of football shoes with
removable studs.
1952: Introduction of the SUPER ATOM.
1953: Development of ATOM's successor: the BRASIL.
1960: Introduction of the technologically advanced vulcanization
production technique.
1966: Launch of the WEMBLEY, the predecessor model to the
KING.
1968: Launch of the legendary KING. PUMA is the first
manufacturer to offer sports shoes with Velcro fasteners.
1976: Introduction of the revolutionary S.P.A.-Technology.
1982: Armin Dassler invents the DUOFLEX sole.
1989: Launch of the TRINOMIC sport shoe system.
1990: Introduction of INSPECTOR, a growth control system for
children's shoes.
1991: Launch of the DISC SYSTEM sports shoe.
1996: Introduction of the CELL technology, the first foam-free
midsole.
1997: Launch of the CELLERATOR.
2000: Production of fireproof footwear.
2002: Launch of the SHUDOH.

5.THE COMPETITORS
Nike
Number one sports brand in the world
US based: administrative activities & design and product
innovation
Sub brands like Tiger Woods or Michel Jordan
ADDIDAS
Focus on core sports like soccer, tennis, athletics and skiing
6 times the financial resources
Design and marketing department are located in France and
Germany
PRADA
Well known luxury brand
4 years ago Prada dared to step into the sport segment
Focus on fashion and trends but their price strategy is still too
high
Diesel
Major fashion brand including: sunglasses, footwear, watches,
fragrances and writing tools
Experienced an unexpected growth rate
Brand is still situated in Italy (jeans production)

6. The Environment in India

The sports apparel segment has a huge potential in the Indian
market as About 25 per cent of international sale of Puma
comes from India and China.
People are also becoming more health-conscious and this has
led to an increase in sports lifestyle, which, in turn, opens large
potential for sports retail. The opportunities presented by a
rapidly growing demand for brands, the growth of a young,
affluent middle class, and promise of future economic reforms
make India one of the most exciting and rewarding places for a
dynamic sports lifestyle brand.
In terms of overall increase, Puma's performance has been more
than 100 per cent during last year.
PUMA plan to have 25 stores by the end of this year.
Puma will now entice customers with a wide range of apparel
and accessories in a completely novel and unique environment
through its exclusive branded store. Sporting its official colours
of Red and White and spread over an area of ninety square
meters, this store houses the entire international collection of
Puma apparels, shoes and accessories. Apart from the sports
performance products, the store caters to a new product range.
The new product range will be available through 'Motorsport',
'Moto', 'Golf', 'Yoga/Lounge' and 'Beach Wear' collections.

7. MARKETING MIX:

7.1PRODUCT
It has wide range of footwear, sportswear, sports goods, fashion
accessories.
Black label include collaboration with reowned designers such
as Alexander Mcqueen, Yasuhiro Mihara and Rossi.
Puma group owns Puma, Tretorn, Hussein Chalayan.

7.2 PRICE

Pumas pricing is designed to be competitive to the other

fashion shoe retailers. The pricing is based on the basis of
premium segment as target customers. Puma as a brand
commands high premium.

7.3 PRICE
Pumas pricing is designed to be competitive to the other
fashion shoe retailers. The pricing is based on the basis of
premium segment as target customers. Puma as a brand
commands high premium.

7.4 PROMOTION
Location, targeted advertising in the newspaper and strategic
alliances serves as the foundation of Puma advertising and
promotion effort. The athletes and other famous sports
personalities are always taken as brand ambassadors. They
form the prime building blocks of their portion strategy.

8. 4ps of PUMA
8.1INTRODUCTION:
PUMA Inc. is a major publicly traded sportswear and equipment
supplier based in the United States. The company is headquartered
near Beaverton, Oregon, which is part of the Portland metropolitan
area. It is the world's leading supplier of athletic shoes and apparel
and a major manufacturer of sports equipment with revenue in excess
of $18.6 billion USD in its fiscal year 2008 (ending May 31, 2008). As of
2008, it employed more than 30,000 people worldwide. PUMA and
Precision Castparts are the only Fortune 500 companies
headquartered in the state of Oregon, according to The Oregonian.
The company was founded on January 25, 1964 as Blue Ribbon Sports
by Bill Bowerman and Philip Knight, and officially became PUMA, Inc.
in 1978. The company takes its name from PUMA (Greek
pronounced [n k ]), the Greek goddess of victory. PUMA markets its
products under its own brand as well as PUMA Golf, PUMA Pro,
PUMA+, Air Jordan, PUMA Skateboarding and subsidiaries including
Cole Haan, Hurley International, Umbro, and Converse. PUMA also
owned Bauer Hockey (later renamed PUMA Bauer) between 1995 and
2008.In addition to manufacturing sportswear and equipment, the
company operates retail stores under the PUMA town name. PUMA
sponsors many high profile athletes and sports teams around the
world, with the highly recognized trademarks of "Just do it" and the
Swoosh logo.

Following table is showing basic informations about PUMA:

Type

Public (NYSE: NKE)

Founded

24 January 1968

Headquarters

Near Beaverton, Oregon, United States

Area served
Worldwide

Key people
Philip H. Knight(Chairman)
Mark Parker(CEO) & (President)

Industry
Designing and Manufacturing: Sportswear
Sports equipment

Products
shoes, Apparel, equipment, Accessories

Employees
30,200 (2008)

8.2 PRODUCTS:
PUMA produces a wide range of sports equipment. Their first products
were track running shoes. They currently also make shoes, jerseys,
shorts, baselayers etc. for a wide range of sports including track &
field, baseball, ice hockey, tennis, Association football, lacrosse,
basketball and cricket. PUMA Air Max is a line of shoes first released
by PUMA, Inc. in 1987. The most recent additions to their line are the
PUMA 6.0, PUMA NYX, and PUMA SB shoes, designed for
skateboarding. PUMA has recently introduced cricket shoes, called Air
Zoom Yorker, designed to be 30% lighter than their competitors. In
2008, PUMA introduced the Air Jordan XX3, a high performance
basketball shoe designed with the environment in mind.
PUMA sells an assortment of products, including shoes and apparel for
sports activities like association football, basketball, running, combat
sports, tennis, American football, athletics, golf and cross training for
men, women, and children. PUMA also sells shoes for outdoor
activities such as tennis, golf, skateboarding, association football,
baseball, American football, cycling, volleyball, wrestling,
cheerleading, aquatic activities, auto racing, and other athletic and
recreational uses. PUMA is well known and popular in youth culture,
chav culture and hip hop culture as they supply urban fashion
clothing. PUMA recently teamed up with Apple Inc. to produce the
PUMA+ product which monitors a runner's performance via a radio
device in the shoe which links to the iPod nano. While the product
generates useful statistics, it has been criticized by researchers who
were able to identify users' RFID devices from 60 feet (18 m) away

8.3 PRICE:
The type of good that will be marketed is going to affect the price of a
product. PUMA uses vertical integration in pricing wherein they own
participants at differing channel levels or engage in more than one
channel level operations. This is also an attempt to control costs and
influence pricing practices. PUMAs pricing is designed to be
competitive to the other fashion shoe retailers. The pricing is based
on the basis of premium segment as target customers. PUMA as a
brand commands high premiums. PUMAs pricing strategy makes use
of vertical integration in pricing wherein they own participants at
differing channel levels or take part in more than one channel level
operations. This can control costs and influence product pricing.

8.4 PLACE:

PUMA shoes are carried by multi-brand stores and the exclusive

PUMA stores across the globe. PUMA sells its product to about 20,000
retail accounts in the INDIA. and in almost 200 countries around the
world. In the international markets, PUMA sells its products through
independent distributors, licensees, and subsidiaries. Independent
distributors need not adapt to local pressures because the 4Ps of
marketing are managed by distributors. PUMA has contracted with
more than 700 shops around the world and has offices located in 45
countries outside the United States. Most of the factories are located
in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam,
Pakistan, Philippines, and Malaysia. PUMA is hesitant to disclose
information about the contract companies it works with. However, due
to harsh criticism from some organizations like CorpWatch, PUMA has
disclosed information about its contract factories in its Corporate
Governance Report.

PROMOTION:
Promotion is largely dependent on finding accessible store locations.
It also avails of targeted advertising in the newspaper and creating
strategic alliances. PUMA has been one of the top retail industries for
quite a long time. This is because they sell quality products, customer
loyalty, but most of all, its great marketing techniques. PUMA has a
number of famous athletes to create a great deal of attention to their
products. PUMA has signed the top athletes in many different sports
such as the Brazilian Soccer Team (especially Ronaldino, Renaldo,
and Roberto Carlos), Lebron James, and Jermane O'Neal for
basketball, Lance Armstrong for cycling, and Tiger Woods for Golf.
Sponsoring of events is another great promotional technique for
PUMA. It brings attention PUMA's products. Web sites are a great
promotional tool as they cover these events. Such events include
Hoop it up and The Golden West Invitational. PUMA also personalizes
websites. They make the websites exclusively for a sport such as
PUMAbasketball.com, PUMAfootball.com, and PUMAgolf.com.
PUMA is positioned as a premium-brand, selling well-designed and
expensive products. PUMA lures customers with a marketing strategy
centering on a brand image which is attained by distinctive logo and
the advertising slogan: "Just do it.
PUMA promotes its products by sponsorship agreements with
celebrity athletes, professional teams, and college athletic teams.
However, PUMA's marketing mix contains many elements besides
promotion. These are summarized below:

Advertising:
From 1972 to 1982, PUMA relied almost exclusively on print
advertising in highly vertical publications including
Track and Field News:
Most of the early advertising was focused on a new shoe release,
essentially outlining the benefits of the running, basketball, or tennis
shoe. In 1976, the company hired its first outside ad agency, John
Brown and Partners, who created what many consider PUMA's first
'brand advertising' in 1977. A print ad with the tagline "There is no
finish line" featured a lone runner on a rural road and became an
instant classic. The success of this simple ad inspired PUMA to create
a poster version that launched the company's poster business. In
1982, PUMA aired its first national television ads, created by newly
formed ad agency Wieden+Kennedy, during the New York Marathon.
The Cannes Advertising Festival has named PUMA its 'advertiser of
the year' on two separate occasions, the first and only company to
receive that honor twice (1994, 2003).PUMA also has earned the
Emmy Award for best commercial twice since the award was first
created in the 1990s.
In addition to garnering awards, PUMA advertising has generated its
fair share of controversy
E-commerce is an opportunity for every company, if they do it
correctly. Consumers are using the Internet more and more to
purchase their goods and service. The marketing mix, mission
statements, marketing strategies, and stickiness are extremely
important is having a successful Internet marketing strategy. Mark
Millman, president of Millman Search Group Inc. a national retailing

consulting recently said, Everyone is doing it. If you dont do it,

youre dead in the water. The overall ranking of the four athletic
shoe companies are PUMA (1), Adidas (2), Reebok (3), and Fila (4).
This large difference in the ranking between the four companies
clearly demonstrates PUMA's online dominance as the leader in its
industry.
Corporations should and must have a mission statement that will keep
them focused and guided in the right direction. PUMA had mission
statements that gave the customer some idea of what the company is
all about. By definition, a mission statement is a clear and concise
statement that explains the organizations reason for being (Ferrell et
al., 1998). There are five questions that help clarify what a good
mission statement contains:
Who are we?
Who are our customers and what do they value?
What does our organization stand for?
What makes our organization unique?
What impressions does this organization want key publics to have of
us?
PUMAs mission statement shows what they stand for and gives the
different groups that PUMA entails. Unfortunately, PUMA still does
not clearly reflect that they are customer-oriented. Having a strong
marketing mix (4 P's) is extremely important for an organization to be
successful. PUMA.com had the top ranking when comparing the
marketing mix variables. For example, their advertisements on
television and those on their web site, to their strategic alliance
partnership with UPS to deliver their packages, were all strategically
designed.

Promotion of Brand
Who and What Sports:
Who: fans of niche sports who are fashion conscious
What: buy the puma products for the sports they like and express their
love for the sports through wearing them
Lifestyle:
Who: young, hip, trendy, urban
What: buy, wear and talk about their PUMA gear as a personal
statement
Business Objectives
Sales growth of 10% while maintaining strong margins
Continue to invest in product innovation across categories and
markets
Expand retail operations Provide unique brand experience
Speed to market
Gain product development and marketing expertise by being closer to
consumer
Marketing Objectives
Raise profile of PUMA brand Continue designer collaboration approach
Communicate through all touch points
Drive traffic to PUMA stores
Increase loyalty and repeat purchase

Buzz Marketing
The Adventures of PUMA Consumer-generated content:

Travel/lifestyle focus.

Association with IPL

Global sportlifestyle brand PUMA has announced its association with
the defending champions Rajasthan Royals and Deccan Chargers
because they believe that IPL roll out an extensive 360- degree
communication program and this will ensure PUMAs presence in all
marketing activities.