2. Company Profile
• A Germany-based company engaged in manufacture of
sporting equipment, operating worldwide through its
subsidiaries.
Division of Operations
• Footwear range: cross training, motor sports, running,
soccer, tennis and other activities.
• Apparel line : t-shirts, track jackets, pants, and hooded
sweatshirts.
• Accessories: backpacks, belts, headwear, socks and
utility bags.
4. FAMOUS ENDORSERS
USAINBOLT
Fastest man on
earth.
Six-time Olympic
gold medalist and
World Record
holder at 100m
(9.58s), 200m
(19.19s) and
4x100(36.84s).
Only person to
defend the gold
medal at 200m.
SERENAWILLIAMS
Professional
American tennis
player.
She became the
world no. 1 for the
first time on July
8, 2002.
Current ranking:
no.4
LEXITHOMPSON
At 12, she became
the youngest player
in history to qualify
for the U.S.
Women’s Open.
2011- youngest
professional golfer
to win a
professional tour
event (2011
NAVISTAR LPGA
CLASSIC).
5. Improved Version: Mission
• At PUMA, we believe that our position as the
creative leader in Sport lifestyle gives us the
opportunity and the responsibility to contribute to
a better world for the generations to come.
Improved Version: Vision
• To generate a better world that would be
safer, more peaceful, and more creative than the
world we know today.
6. VALUES
FAIR
HONEST
We believe that by staying true to our values, inspiring the passion and talent of
POSITIVE
CREATIVE
our people, working in sustainable, innovative ways, and doing our best to
SAFE be Fair, Honest, Positive, and Creative, we will keep on making the products
PEACEFUL
our customers love, and at the same time bring that vision of a better world a little
closer every day.
7. Macro Environment: PESTEL Analysis
Opportunities Threats
Political forces Outsourcing
Employment
Environment protection
Environmental Issues
Trade Restrictions
Tariffs
Economic forces Stable economy of Asia Import/export conditions
GNP and GNP growth rates
EMEA crisis
America's economy is
slowing down
Social/Cultural forces Lifestyle trends
Increase in popularity of
sports
Misunderstanding with
other cultures
8. Opportunities Threats
Technological forces R&D Activities
Automation
Global Communication
Developments in own or
related industry
Number of competitors
who have online shopping
services.
Environmental forces Use of environmental
friendly materials
Series of sustainability
goals, pledging to cut its
carbon emissions, waste
and water usage resulting
from the production of
products and services by 25
percent by 2016.
Legal & Regulatory forces Government industrial
policies
Antitrust & mergers
9. PUMA’s Managing Director
Managing Directors
Klaus Bauer
Chief Operating
Officer
Franz Koch
Chief Executive
Officer
Stefano Caroti
Chief
Commercial
Officer
Antonio
Bertone
Chief Marketing
Officer
Reiner Seiz
Chief Supply
Chain Officer
10. PUMA’s Administrative Board
Jochen Zeitz (Chairman
of the Administrative
Board)
CEO of the Sport &
Lifestyle Group of PPR,
Paris, France
François-Henri Pinault
(Deputy Chairman of
the Administrative
Board)
Chairman of the Board
and CEO (Président
Directeur Général) of
PPR S.A., Paris, France
Todd Hymel
Chief Operating
Officer (COO) of the
Sport & Lifestyle
division of
Guy Buzzard
(Employees'
Representative)
Key Account Manager
(Sales) of PUMA United
Kingdom
Ltd., Manchester, Englan
d
Jean-François Palus
Deputy Chief Executive
Officer and Chief
Financial Officer
(Directeur Général
Délégué/Directeur
Financier)
of PPR S.A., Paris,
France
Thore Ohlsson
President of Elimexo
AB, Falsterbo, Sweden
Michel Friocourt
Director Legal
(Directeur
Juridique) of PPR
S.A., Paris, Franc
e
Bernd Illig
(Employees’
Representative)
Specialist IT User &
System Support of
PUMA SE,
Herzogenaurach,
Germany
Martin Köppel
(Employees’
Representative)
Administrator IT
Microsoft Systems of
PUMA
SE, Herzogenaurach,
Germany
11. S
• Good liquidity of assets
• Low selling price than other competitors
• Eco-friendly products
• Increase on market share of shoes and accessories
• Puma has grown substantially over recent years, and
has experience global expansion.
• Strong financial capabilities
• Core competence involving its use of information
technology
• Has strong ethical values and ethical mission and
vision statement.
W
• Very short range of target market
• Few promotional activities
• Low working capital
• Low total assets
• Low market share
• Low asset turnover
• Not well known
• Weak brand image
O
• Stable economy of Asia
• Transparency on financial record
• Partnership with famous shoe designer
• Strong presence in sports and fashion market
• Backed and supported by PPR
• Endorsers winning on olympics and world cups
• Having customer loyalty programs
• Possible Market in India
T
• EMEA crisis
• Americas economy is slowing down
• Misunderstanding with other culture
• Decrease in market share prices
• Slow adaptation to technology towards growth
• Decrease on market share of apparel
• Government policies (taxes)
12. OPPORTUNITY THREAT
STRENGTH
Eco-friendly products
Has strong ethical values and
ethical mission and vision
statement
Endorsers winning on Olympics and
world cups
Puma has grown substantially over
recent years, and has experience
global expansion
Strong financial capabilities
WEAKNESS
Collaboration through different
shoe company such as Cobra and
Tretorn
Open more store (online or store
outlet)
Possible market in India
Retail sector is becoming very
competitive and consumers are
highly price sensitive
13. Jamaica Olympic
Association,
BMW motorsport,
soccer and rugby
teams ,
Alexander
McQueen
Mihara Yasuhiro
Sergio Rossi
Impahla clothing,
Distributors,
Wholesalers
Licensing,
Retail,
Bring me back
bin
Retail 2.0
Brand
Subsidiaries
Lifestyle
Working Capital
Labor Force
Puma Creative
Fair
Honest
Customer
Oriented
Athletic, active
eccentric, indivi
dualistic and
bold
Retail 2.0
Gift coupons
Gives Value to
Customers
Updates
customers
Transparency
By Region:
EMEA, ASI
A
PACIFIC, A
MERICA
Ages 20’s
to 30’s
Class A-B
Store Outlets
Online Store or Web
Sales
Puma
Franchises
For the year 2011
Estimated Break Even point = 2373.5644 Euros
Gross margin % =49.6%
EBIT % = 8.6%
EBT% = 6.3%
Sales
wholesale (2407.2) 80
retail (361.08) 12
e-com (240.72) 8
14. Customer Segment
PRIMARY SECONDARY
Age 20-30 7-19; 30-45
Gender Male, Female
Social Class A, B A - C
Behavior
Athletic, active, eccentric, individualistic, bold and creative
consumers who admire originality
17. Value Proposition
• Committed to working in ways that contribute
to the world by supporting Creativity, SAFE
Sustainability and Peace, and by staying true
to the principles of being Fair, Honest, Positive
and Creative in decisions made and actions
taken.
• Customer Oriented – Focused on giving the
customers wants.
18. PUMA Creative
• The creative factory
Paint, Patch, Stitch and Create
-- “we supply the materials and you supply the
imagination. ”
– 17 Creative Factories
– Athletic, active, eccentric, individualistic, bold and
creative
• Boxpark, cape
town, Istanbul, Moscow, Mumbai, Bangalore, Belgrade, B
ratislava, Bucharest, Budapest, Dubai, Kiev, new
Delhi, Prague, Sofia, Warsaw and Zagreb.
19. PUMA Creative Factory ‘Built For
One’ Ukraine
The iconic PUMA T7 Jacket
continues to inspire creative minds
from all around the world! Now it
will also help to fight against AIDS.
25. • 7 PUMA stores in the Philippines
-Alabang-Zapote Road Alabang, Phil
-Ayala Avenue Makati City, Phil 1224
-EDSA corner North Avenue Makati City, Phil 1105
-Bonifacio Global City Taguig
City, Philippines 1674
-Filinvest Corporate City, Alabang Muntinlupa
City, Philippines 1770
Official Puma stores
26. - Lapasan Street Cagayan De Oro City, Philippines
- Mandalagan Street Bacolod
City, Philippines 6100
- 697 PUMA Retail Stores
- 328 PUMA Outlets
27. Customer Relationship
• Gives value to their customers
– Assist during and after sales
– 50% - 60% discount to regular customers
• Customer points
-Every purchase, there will be a certain number of points
depending on the price of the product. After he crosses a
certain point level, he would be entitled to a gift from the
company or choose a product of a certain value from the
range.
28. Retail 2.0
• In five words, it is
described as: Welcoming,
Surprising, Colorful,
sustainable, and above all
else, Joyful!
• The strategy behind the
concept?
– The store provides an
exciting and fun shopping
experience for the
consumers, with product
being the hero.
29. Retail 2.0
• Is this also reflected in terms of sales?
– YES! The focused ranged and the key item strategy
are driving higher sales on the same space.
Overall, the new retail 2.0 store experience is
delivering very good financial results.
30. • Puma promotes the health and safety of the
consumers as well as the protection and
preservation of the environment.
• Respect and equality, regardless of
race, creed, age, sex, social origin, political
views, sexual orientation or position.
31. • Gift coupons and vouchers
– People would have the facility to buy these vouchers and present
them to their dear ones. This would be a good way to reach out
towards newer customers through existing ones.
• Puma keeps costumers up-to-date about new possibilities, designs
etc. This can be done via advertising.
• Shows clear records of financial reports
32. • Quality- The durability and consistency of the
product
• Convenience- Ease of use
35. Key Resources
• Tretorn and Cobra Golf (subsidiaries)
• Lifestyle:
-PUMASocial, Black Label, Timepieces, Clyde,
Mihara,Fragrances, creative factory
• Working Capital of 862 million
-Consolidated sales increase by 6.1% to € 820.9 million.
• 10,043 employees
37. Key Activities
• Retailing
• Eco-friendly
– Bring Me Back Bin
– Clever Little Bag
– PUMA Re-Suede
• Back On The Attack
• Licensing
38. What is the Bring-Me-Back Bin?
1. Collect all the old shoes
and clothes that you don’t
want anymore (even the
non-PUMA stuff).
2. Drop on the PUMA bring
me back bin
3. Star feeling really good
about yourself
PUMA says: “With Bring Me Back
Program, materials are put back in the
right place. This way we don’t steal
from nature, but borrow. And
borrowing is a good thing.”
39. PUMA Bring Me Back Program? Why?
• PUMA is dedicated to making a smaller impact on our
earth. The Bring Me Back program is one way we do
that. We’re taking what would normally be trash, and
breathing new life into your old sneakers, used t-
shirts, and last season’s tote.
• By taking old clothes and re-using, re-cycling, or re-
purposing them, we mitigate the amount of virgin
material that would otherwise be used to make new
products. This partnership with I-Collect creates a
closed-loop system that diverts product from the
landfill, and becomes a new product.
41. PUMA “CLEVER LITTLE BAG”
• Cutting-edge sustainable packaging and distribution
system by renowned industrial designer Yves
Béhar, PUMA set new standards within the retail
industry. The new innovative solution will significantly
reduce the amount of waste and CO2 emissions that
traditional product packaging such as shoe-boxes and
apparel polyethylene bags generate and underpins
PUMA’s target of reducing carbon, energy, water, and
waste by 25%, and developing 50% of its international
product collections in footwear, apparel and
accessories according to best practice sustainability
standards by 2015.
42.
43. Re-Suede Shoes
• The Re-Suede is
currently being sold
in PUMA’s Clever
Little Bag, a cutting-
edge innovation in
sustainable
packaging that
replaces traditional
shoeboxes.
44. Re-Suede Shoes
• Every aspect of the shoes has been designed with environmental
impact in mind including the upper, sockliner, laces and sublining
which are all made from 100% recycled materials and an innovative
new outsole material.
• The synthetic suede is comprised of 100% recycled polyester
fibers, produced by a chemical recycling process that reduces both
the energy consumption and the CO2 emission by 80% compared to
the production of virgin materials.
• The new PUMA Re-Suede is incredibly light weight, (140g/5.2oz less
than the original) thereby reducing the fossil fuels needed in
transport, saving fifteen tons of carbon emissions for every ten
thousand pairs shipped.
45. “Back on The Attack Strategy”
2010 2015
3Billion Euros 4Billion Euros
46. 2015 OBJECTIVE
• To be the most desirable and sustainable
Sportlifestyle company in the world
– Exploit the €4bn potential
• Focus to grow the existing:
– Core Categories
– Top 12 Markets
– Key Emerging Businesses
Develop Group beyond PUMA brand
47. 6 Strategies
• Restructuring
• Transformation
• Brand/Marketing Heat
• Product Desirability
• Distribution Focus
• Non-PUMA Brand Development
49. 2012(Euros) Vs. 2015(Euros)
Non-PUMA brands
3,000,000,000 x 0.03 = 90,000,000 4,000,000,000 x 0.08 = 320,000,000
PUMA Brand
3,000,000,000 x 0.97 = 2,900,000,000 4,000,000,000 x 0.92 = 3,680,000,000
50. Product Segment
2012(Euros) Vs. 2015(Euros)
Accessories
3,000,000,000 x 0.13 = 390,000,000 4,000,000,000 x 0.15 = 600,000,000
Apparel
3,000,000,000 x 0.33 = 990,000,000 4,000,000,000 x 0.35 = 1,400,000,000
Footwear
3,000,000,000 x 0.54 = 1,620,000,000 4,000,000,000 x .50 = 2,000,000,000
51. By Region
2012(Euros) Vs. 2015(Euros)
APAC
3,000,000,000 x 0.21 = 630,000,000 4,000,000,000 x 0.23 = 920,000,000
America
3,000,000,000 x 0.31 = 930,000,000 4,000,000,000 x 0.27 = 1,080,000,000
EMEA
3,000,000,000 x 0.48 = 1,440,000,000 4,000,000,000 x .50 = 2,000,000,000
52. By Distribution
2012(Euros) Vs. 2015(Euros)
Retail & E Commerce
3,000,000,000 x 0.16 = 480,000,000 4,000,000,000 x 0.20 =800,000,000
Wholesale
3,000,000,000 x 0.84 = 2,520,000,000 4,000,000,000 x 0.80 = 3,200,000,000
54. Key Partners
• A privately owned Cape
Town, South Africa-based clothing
manufacturing company that has
become the first supplier within
PUMA’s supply chain to publish its
own integrated financial and
sustainability report.
• The first supplier in PUMA’s supply
chain to reduce its electricity
consumption by installing a solar
photovoltaic (PV) plant on its
building in Cape Town.
58. Key Partners
• Distributors Warehouse, Inc.
– Business type: Distributor/Wholesaler
– Main Products: Inventory Puma tools and Parts. Sell mostly
to industrial Distributors, Stock Gasoline Impact Wrenches.
Sell Puma Air Compressor, Stock Several Economy Type Air
Tools
– BRANDS: PUMA, Pneutech Air Tools, Puma Air
Compressors
66. Cost Structure
• Puma operated at (3009m/1178) which is equal to
255% of Break-Even during the year 2011.
67. Mission
To become the most
desirable Sportslifestyle
company and as a creative
leader in
sportlifestyle, Puma has the
opportunity and
responsibility to contribute
to a better world for the
generation to come.
Mind Heart Spirit
Vision
PUMAVision – a concept that we
intend to guide our work with its
three core programs
PUMA.creative, PUMA.safe and
PUMA.peace.
Focus on
implementing cleaner,
safer and more
sustainable systems
and processes within
the supply chain.
Values PUMA
RETAIL 2.0
68. PUMA’s three-stage process for full
environmental, social and economic reporting
1. Environmental P&L – covering GHG emissions, water use, the
impacts of changes in land use on ecosystems and biodiversity, local
air pollution and waste.
2. Social P&L – to include social impacts such as fair wages; freedom of
association, health; security and stability; empowerment;
community cohesion; human capital; and gender equality. PUMA
will collaborate with other corporate and civil society stakeholders
to address social issues.
3. Economic P&L – to focus on some of the beneficiaries of the
economic impacts from PUMA’s operations. This could include: job
creation; wages; total tax contributions; indirect and induced
employment; indirect and induced output; productivity and
efficiency gains; business creation and growth.
69. PUMA’s three-stage process for full
environmental, social and economic reporting
• The PUMA Creative Factory Built For One event goes down at
Earthlife on Upper Canterbury Street, Vredehoek on 29 February.
• With Cape Town recently being named Design Capital 2014 and
hosting Design Indaba 2012 on 2 March, PUMA have launched the
second phase of their design initiative in the Mother City. Fans will
be able to customise their jackets by selecting individual
components including front, back and sleeve panels as well as the
iconic T7 stripe, in various colour options. Experienced tailors from
Impahla Clothing, SA’s first carbon neutral clothing manufacturer
and strategic supplier to PUMA South Africa, will craft the finished
product on the night.
70. PUMA’s three-stage process for full
environmental, social and economic reporting
• The likes of performance artist Lindiwe Suttle, GQ Fashion Editor
Arthur Malan and actor Siv N, who have all customised their jackets
at workshops in Cape Town and Johannesburg, will showcase their
creations at the PUMA Creative Factory Built For One event, which
will also feature live performances by P.H. Fat, Tommy
Gun, Haasbroek, VGA and DJ Craig de Sousa.
• The T7 Track Jacket was born in 1968 and has achieved legendary
status by being worn by famous athletes, rock stars, b-boys and
artists including football legend Pele and the Beastie Boys. The
jacket is environmentally responsible as it is made of 100% recycled
polyester; building on PUMA’s mission to become the most
desirable and sustainable sportlifestyle company.
71. Brand integrity
Brand
DifferentiationPositioning
•Mixing the
influence of
sports, lifestyle, and
fashion.
•Targets
active, eccentric, ind
ividualistic, bold and
creative consumers
who admires
originality.
3i
The 3i Model
•PUMA RETAIL
2.0
•Back on the
Attack Strategy
•Partnership With
Famous Designer
•PUMA bioraid
technology
72. BioRide Technology
• This technology has 3
biomechanical, performance-enhancing parts
- Rocker, Flex, and Groove - that work together
to create a naturally responsive ride.
• Rocker = Natural Ride: A 'rocker' shape for
smooth touchdown and effortless toe-offFlex
= Responsive Ride
73. FINANCIAL CUSTOMER
INTERNAL
BUSINESS
PROCESS
LEARNING &
GROWTH
OBJECTIVES
To achieve the
4Billion Euros long-
term potential in
2015
To reach 30%
market share
To increase no. of
outlets
Zero turn over of
Management staff
MEASURES Sales or revenues
Market Share
No. of company
owned outlets
Turn over rate of
management staff
TARGETS
3.3B euros- 2013
3.7B Euros- 2014
4B Euros- 2015
30% of market
share by 2015
Add 34 outlets by
2013
33 outlets by 2014
33 outlets by 2015
Zero turnover for
2013 to 2015
INITIATIVES
Increase Number of
outlets
Increasing
differentiation
between PUMA’s
Performance and
Lifestyle categories
PUMA opens first
sustainable PUMA
Store
Skills and career
development
Employee Wellbeing
Awareness
Programme
Incentive scheme
74. MVV of PUMA
Financial
Perspective
To improve
average
receivables
turnover.
Increase sales or
revenues to
4Billion euros by
2015
Customer
Perspective
To increase
market share by
30% for the year
2015
Implement Bring-
me-back-bin
Implement PUMA
peace.
Process
Perspective
To improve
collection process
by implementing
online payment.
To increase no. of
company
owned outlets
Implement retail
2.0 plan.
Implement PUMA
Safe.
Learning and
growth
perspective
Zero turnover of
Management
Staff.
Continuous
improvement of
absenteeism ratio
of 1.4%
Implement PUMA
creative.
77. Recommendations
• By using Porters Five Forces Model, we highly
recommend that PUMA must have their
company owned distributor in order to
increase their sales/revenue for the company
to be able to achieved their target sales in the
year 2015.
• We highly recommend that PUMA must do an
actively advertisement of non-PUMA brand to
increased market awareness.
78. Recommendations
• Go Green – Produce more eco-friendly
products.
• Fully adopt the practice of marketing 3.0.
• Create more sponsorships with professional
athletes especially with NBA basketball
starplayers.
79. Recommendations
• We recommend that puma should increase
additional company owned outlet
• Sponsoring extraordinary sport teams (e.g soccer
teams, basketball teams etc. )
• Increase additional store outlet worldwide
• Puma should advertise their products differently.
Creating a differentiation to Nike and Adidas
• Puma should remain cheap but different and
stylish compared to other brands.
80. Recommendations
• Puma should invest in a warehouse management system. The
strategy here is that they would use existing warehouse centre to
store goods when needed which means they can quickly adapt to
space needs as it relates to the flow of information and the
management of stocks. It could also give Puma a competitive
advantage by being able to respond to customers demands quicker
leading to a better customer experience and then a long term
objective of customer loyalty.
Puma should also embark on a new expansion drive in wholesale
and retail business that are using a unique type of promotion as a
medium to further solidify its relationship with existing partnerships
to strengthen the brand Puma, the aim here is to increase visibility
of the Puma brand.
81. Recommendations
• Puma’s product line is in a small variety, we
recommend that Puma increase the variety of
their product line. With this, their consumers
would not have a limited choice on what they
have to choose from. Having a wide variety of
products would give Puma the starting point
for them to increase their market share in a
quick possible manner.
82. Recommendations
• Puma should make more eco-friendly
products like their new re-suede shoes
because it last longer than the other shoes
and comfortable to wear.
They should sponsor more sport events.
They should also focus on basketball because
it's one of the popular sports in the world.
83. Conclusion
• With PUMA, you can create a good and better
life in the future. How is this possible? It is
possible by buying stocks or make investment
with PUMA. We can says this because by
strategically analyzing PUMA, we will able to
see that the company growth is constantly
increasing every year and PUMA is a
practitioner of modern marketing techniques.
84. Conclusion
• Number 3 in the world of footwear industry.
• PUMA does not directly aim to be the number
1 or leading supplier of sports footwear
worldwide. PUMA is contended in the current
position they are in as long as they are
continuously satisfying the consumer by
providing high quality and eco-friendly
products and treating their employees and key
partners as part of their success.
85. Conclusion
• Entering the fashion sector puma become
most flavoured brand worldwide.
• Redefining company structure lead to new
image they can now able to compete with
market leaders
• Growing market shares
