Businesss Puma Company Brand Essay Example For Students

Businesss Puma Company Brand Essay Outline1 Puma Company Brand1.1 1. Executive Summary1.2 1.1 Introduction1.3 1.1.2 Macro –environmental factors1.4 1.1.3 Rivalry between rivals1.5 1.1.4 Selling schemes1.6 1.1.5 Strategic group mapping to place rivals1.7 Strategic Group Map on Footwear Mark1.8 2 Puma’s strengths and failing1.9 2.1 Strength1.10 2.1.2 Failing1.11 Poor trade name Image1.12 Luck of clients1.13 2.1.3 Virtuality1.14 2.1.4 Virtuality as strength for cougar1.15 Information sharing1.16 Hi engineering substructure1.17 Virtual warehouse1.18 3 Wining schemes1.19 3.1 Fits the Company’s state of affairs good1.20 Addition in orders1.21 Global branded Gross saless growing1.22 Amalgamate gross revenues1.23 Puma embarked on stage IV1.24 Puma’s stockholders value1.25 Good balance sheet1.26 3.1.2 Competitive advantage1.27 Knowledge and Expertise1.28 3.1.3 Better company public presentation1.29 Selling run1.30 Use of engineering1.31 4. Coup detat1.32 4.1 Strategic benefits1.33 6. Bibliography Puma Company Brand 1. Executive Summary Puma AG is a transnational company that is based in German and industries high athletic and sportswear places both for adult females and work forces, It was founded by Rudolf Dassler after a difference with his brother Adi Dassler with whom they had founded the Dassler Schuhfabrik in 1924. Puma had a really hapless trade name image that show a diminution in its market portion and prompted cougar to alter it strategic determinations to better on its image, this procedure of alteration was led by Jochen Zeitz Puma CEO based on stages one to four of strategic program to alter puma’s image so that it can vie favourable in the market place and within a twosome of old ages Jochen Zeitz had alteration puma’s trade name image into one of the most desirable and sought after trade name of athletic wear and footwear worn both buy famous persons and manner followings all over the word. 1.1 Introduction Puma was founded in Dassler Schuhfabrik, Herzogenaurach, Germany by Rudolf Dassler after a difference with his brother Adi Dassler with whom they had founded the Dassler Schuhfabrik in 1924. Until early 2003 cougar had a really hapless trade name image that show a diminution in its market portion and prompted cougar to alter it strategic determinations to better on its image, this procedure of alteration was led by Jochen Zeitz Puma CEO based on stages one to four of strategic program to alter puma’s image so that it can vie favourable in the market place and within a twosome of old ages Jochen Zeitz had alteration puma’s trade name image into one of the most desirable and sought after trade name of athletic wear and footwear worn both buy famous persons and manner followings all over the word. This study is divided in three parts, Part one presents the factors that influenced cougar to alter it trade name image and it farther goes to depict these factors under Macro-environmental analysis establishing on market tendencies, competition between clients and strategic group function. The 2nd portion presents the puma’s resources and capablenesss in footings of strengths and failing every bit good every bit virtuallity every bit seen as strengthens and the 3rd portion of the study presents puma’s winning schemes establishing on cougar state of affairs that fits the company, sustainable completive advantages and as a better acting company. Harmonizing to instance survey of Puma AG ( in Thompson, A.A. , Strickland, A.J. and Gamble, J. ( 2005 ) Crafting and Executing Strategy ( Fourteenth Edition ) , McGraw-Hill, New York, pages C411- C432 ) , The environmental and competitory factors that influenced Puma’s strategic determination to better its Brand image is identified under Macro- environmental factors, competition between rivals and strategic group function as below. 1.1.2 Macro –environmental factors Lack of societal credence of Puma trade name from the upper category clients who were non willing to have on the trade name because they considered to of hapless quality and were sold â€Å"dirt-cheap† Puma’s trade name was compromised and this a affected it’s value for illustration Rudi’s boy wanted cougar merchandises to make all the clients of all societal back land and this move was seen by the upper category people as some thing below them and they can non be seen have oning the same trade name as people on public assistance receivers. In order for cougar trade name to be accepted as a high quality trade name of value, force cougar to alter and better its trade name so that it can be socially accepted by clients. Change in clients gustatory sensation and manner for illustration there was high demand for supports ware and manner dresss tend that was oriented toward high value and lifestyle merchandises, this alteration in clients demand influenced cougar to alter it’s trade name image to run into the clients turning demand Demographic alteration in association football market for illustration their was a high demand to react to demands of both childs playing on local pitch and subjects soccer squad playing professional at international degree that required high quality trade name and in order for cougar to tap in to these demographic alteration cougar needed to better its trade name image. Market alteration of 1980 when athleticss trade name became more dynamic and consumers taste diversified into new and more exciting high monetary value that make merchandises more desirable this forced cougar to alter its trade name image so that they can bear down high monetary value as clients associate high monetary values with quality of trade name or merchandise and the more extremely charged the more desirable the trade name. Introduction of niches in the market offered attractive growing rates both incumbent and new market participants for illustration skateboarding markets, golf athleticss, athleticss equipments for out door activities made puma alteration its trade name image, for illustration for cougar to bask this attractive growing its trade name has to be of high quality. Unifying of industries to organize one large group for illustration Rosso joined forces with several other industries in northern Italy to organize Genius group this was seen as a menace because this means more resources and strong fiscal base and this led to high disconnected planetary market and for cougar to last in a extremely disconnected market it needed to alter its trade name image Puma’s trade name was disreputable and had lost specailised athleticss traders in its distribution web in order for cougar to derive its distribution web it had to better on its trade name image 1.1.3 Rivalry between rivals Puma greatest competitions are from the undermentioned rivals: Nike Inc Nike is the figure one athleticss trade name in universe over and from the instance survey Based in USA Has got sub trade name like Tiger words and Michael Jordan Adidas Salomon AG Deals on nucleus athleticss ( association football, sports A ; skiing ) Has got stronger fiscal resources Has got it’s selling and design sections in Germany and France Prada Sports Luxury trade name It has entered in to athleticss sections four old ages ago Deals in voguish manner wear of high monetary values Diesel Based in Italy Manner trade name, majoring in dark glassess, footwear Rivals entered the market such as Adidas, Nike, Rebook among others entered the market and made competition for market portion was really high and these rivals had better quality trade name than cougars and among them, they shared 27 % of the market portion, this stiff competition influenced cougar to better on it’s trade name image to last to last in the competitory market Nike was the biggest rival of all and it had the largest market portion for illustration Nike was became the world’s largest athleticss equipment industry in the late 1980 and keep this place since so. Puma was covering in about indistinguishable merchandises like cougar but its trade name was hapless so in order to hold a portion in the market topographic point cougar needed to better on its trade name image. Adidas-Salomon was besides another rival that entered the market as the 2nd world’s largest manufacturer of athleticss equipment industry in universe with about $ 6.5 billion in gross revenues and was present in every state this put cougar in a really hard state of affairs and in order for cougar to hold a favourable portion in the market it needed to alter its trade name Reebok besides entered the market at the clip when cougar trade name was hapless, Reebok was the universe tierce largest participant in the athleticss market, Reebok identified footwear industry as a cardinal market and began to sharply into abroad market this expand was seen as a menace to puma and to last it puma had to alter its trade name image Prada though a luxury bran, it besides started trade in sportswear four old ages ago and this is a menace for Puma and because though the monetary value for Prada trade name is high, it high quality goods do attack client who are willing to pass for illustration super starts, this is a menace to puma because cougar has to non merely with Prada but with Nike, Adidas and Reebok for clients. 1.1.4 Selling schemes Acquisitions of groups for illustration Rosso bought out other spouses and embarked on growing and enlargement this means more competition for market portions as he built a solid and huge distribution platform across five continents describing one-year gross revenues of $ 330 million with luxury trade name merchandising denims for every bit much as $ 100- $ 200 a brace doing it’s trade name more appealing to clients and in order for cougar to last Such a hash market, it needed to alter its trade name image Inventions as a selling scheme for illustration Nike diversified his merchandise portfolio to aim people of ages 20 -30 with enthusiastic athleticss entreaty, Reebok changed its selling scheme and began passage toward football, baseball and association football which Puma was one of puma merchandise line and in order for cougar to pull new clients it has to alter it trade name image for illustration cougar planing and new functionality in new aggregations and launched retro expressions of the 1970s/80s All companies engaged in monolithic advertizement for their trade name a consciousness so that they can vie favourable in the market for illustration in Nike selling scheme, it focused on patronizing immense events and popular events, Reebok besides sponsored popular events and had a licensing understanding with national basket association that increased its trade name consciousness To vie with each other favorability each company outsource production and natural stuffs where their cost was inexpensive and labor was available this enables each company to cut on production cost. Product distinction causes restraints on competition for illustration the is high competition for illustration between Nike, Adidas and Reebok because thought there is high trade name designation in the market they about dealt in similar athleticss equipments which offer client the use. 1.1.5 Strategic group mapping to place rivals Strategic Group Map on Footwear Mark From the strategic group function, the competition between Puma and Nike is really low and puma doesn’t pose a menace because Puma doesn’t adequate market portions as compared to Nike, This is because Puma is a phase where its trade name is hapless and clients are non willing to purchase puma merchandises and this explains why the place of cougar and Nike are far a portion from each The close placement of Nike, Adidas and Reebok are and narrow and about tight because they are viing for about the same size for illustration the competition between Adidas and Reebok are about of the same size in market portion and they have to maintain viing for the market with no laterality from Adidas and Reebok as a prima competition, this is because the cost of production is low and so is the cost of labor The cost of exchanging from one trade name to another is really low for clients the competition houses because clients can freely purchase from another from Nike, Adidas and Reebok particularly where there is no trade name royalty that’s why they are so near together Nike, Adidas and Reebok entered the market about at the same clip when puma’s trade name image needed bettering this cause high competition for the market portions and for clients and this explains why less room for enlargement for Nike, Adidas and Reebok that needs to protect it’s market portion from Puma The cost of production was low between the competition houses as most of had outsourced all production and natural stuff where they were cheap to bring forth, this made the market so unstable and due to high competition for the market portion. 2 Puma’s strengths and failing 2.1 Strength Puma had coaction with some of the celebrated interior decorators from different cultural back land for illustration puma’s new undertakings were developed under the supervisings of trendsetters like Yashuiro Mihara and Jil smoothers which are strongly influenced by kickboxing. This cooperation and coaction opened a new broad market for cougar for illustration where high manner meets sportswear, for illustration this coaction led cougar to produced high quality trade name that suppers starts like Madonna were happy to be spotted wear puma trade name and this made many manner and trade name wearer purchase more of cougar merchandises Puma launched new aggregations which blended with athleticss, life style and manner for illustration cougar curato places, unala cropped woven women’s ware which are really sport stylish and voguish, such causal sportswear became similar really twenty-four hours sort of wear for certain age group for illustration the immature starts who identified themselves with cougar logo and manner, this made it easy for cougar to aim and make the right market as at the right clip as puma knew it’s market and clients good Variable Cost and Unit Selling Price EssayBased on both Barney’s work and the definition in the lexicon, a sustainable competitory Advantage is defined as long term benefit of implementing some alone value-creating scheme non presently being implemented by any known or possible rivals along with the incapableness to double the benefits of this scheme. Factors that have enabled cougars achieve sustainable competitory advantage are identified below Knowledge and Expertise Puma has utilizations expertness in design cognition with major competences in all parts of design and selling for illustration with the acquisition of Puma by PPR group has enabled cougars to utilize PPR big base design squad to bring forth high quality of desirable trade names, this cognition and expertness makes puma completive set a portion from it’s chief rivals. Brand as completive advantage Pumas trade name is so strong and dynamic harmonizing to Zeitz that by 2003 puma’s popularity was so strong that mega starts like Madonna was proud to have on Puma’s, This trade name image and associations of it’s trade name with international starts is of competitory advantage in merchandising of dress and footwear because it brings about promotion for cougar and trade name consciousness and open up locales for other chances for illustration by 2003 cougar marks a trade to be the official provider of dress and footwear to the FIA universe mass meeting title-holder. Expansion into other market Puma has been spread outing its market particularly in China, for illustration cougar has unfastened many shops in Olympic small town in China to showcase new aggregation and run into the demand for Puma’s footwear demand, this enlargement has attacked new clients and cougar has provided support to single athleticss personality for illustration, the CEO of Puma is quoted as â€Å" If we find the right individual we will see partnering with those Chinese athleticss starts† ( China daily describe 26,2007 ) Advanced merchandises Puma has a advantage in footwear, dress and accoutrements because it a batch easier for cougar but manner know who with the aid of interior decorators and the CEO of cougar has the apprehension of manner â€Å"the new combination of elements of past† in which when cougar spots a new tendency alternatively of doing a new trade name, puma uses it old trade name to plan and this counted for 10 % of footwear, dress and accoutrements based on the old design and this besides made puma a tendency starting motor. In footwear cougar besides collaborated with sought after interior decorators like Stella McCartney, Alexander McQueen to bring forth new line of women’s and men’s footwear which was launched in the spring of 2006 Broad consumer entreaty Puma offer a really diverse merchandise line for everyone and this histories for the wide client entreaty because there is merchandise for everyone. In the spring aggregation of 2003 did Carter for both male and female for illustration Nuala merchandise line with cropped woven bloomerss and Nuala Nylon coat for adult females every bit good as Kings US Secret Service association football shirts that catered for both work forces and adult females. Puma besides ventured into Action athleticss line for emerging athleticss like BMX skateboarding and downhill mountain bicycling making Pt series offering causal footwear and dress and accoutrements for such events Relational market asserts Puma has got greater bond with its clients this has forged a working relationship work with clients to industries extremely alone and customized trade names for illustration in the instance survey cougar promoted the â€Å"top victor thrift† a aggregation of 510 alone and single places that were created out of recycle fabrics from Jeans and ties, with the purchase of such points, clients allowed to come in puma’s sole community on the web. Supplies to run into the assorted demands of consumers Puma’s major provider was Yue Yuen, the largest provider of footwear, so when the demand for peculiar footwear goes up cougar is more readily meets the demand from changeless supply of branded merchandises from YueYuen. Intellectual market asserts Puma has great in deepness cognition sing clients demands and penchants for illustration cougar has gained cognition and credibleness in athletic wear and equipment, this was a consequences of many old ages of trading on the same merchandise line and which made it really easy to hold competitory advantage over others manner industry, this cognition made it easy for cougar to re-launch merchandises that clients most prefer to hold. 3.1.3 Better company public presentation Selling run Puma participated in assorted selling runs to originate client trade name consciousness for illustration it sponsored large events, chose music telecasting channel which was known for its immature audience who tired to distinguish themselves and targeted them with cougar adverts, this has resulted in o better public presentation because it improved trade name consciousness which in bends led to high gross revenues public presentation. Out sourced production Puma outsourced all productions and natural stuff procurances in European were to expensive and natural Martial were inexpensive in Asians states, this allow cougar to cut down it’s working capital and let cougar to shorten the production and enable full quality control of input factors, this consequences in a better company public presentation because it enables cougars to run into the market needs efficaciously and salvage a batch of money from holding its production and stuff from a inexpensive beginning Use of engineering Puma invention of the â€Å"cell technology† which introduced the froth –free midsole where alone designs were made by single designs and athleticss work forces were convinced to have on pumas merchandises for illustration cougar introduced the All-In-One ‘UniQT’ for the Cameroon football squad at the 2004 African Cup of Nations. The new ‘UniQT’ is the replacement of the sleeveless shirt worn by the Cameroon squad in the 2002 African Cup of Nations, this has resulted in to break company public presentation because with the alone manners of athleticss wear more and more promotion was being done for cougar and doing the trade name more known hence doing puma merchandise line good known and increasing gross revenues Harmonizing to ( Carty, Victoria 2001, 34-66 ) â€Å"Almost all administrations of any sensible size have some sort of strategic planning† and strategic planning direction was/is a chief portion of cougar schemes of a better public presentation company for illustration cougar knew that rhythm for each athletics differ from athletics to feature and establishing on the general regulation of thrum that a rhythm lasts for 12 to15 old ages with 5 to 8 old ages of a merchandise popularity and that it’s demand lowers, this indicates that investings in new merchandise line demand to be planned good in progresss and this is what cougar did for illustration in 2003 cougar entered the cricket market get downing in Austria, South Africa and Africa where cricket going trendy and was expected to be grow in popularity. Planing and clocking market trends This planning and timing scheme makes Puma a better acting company because it’s easier for cougar to come in other subjects markets fast as its presence in the market is good known and every bit good as the trade name which in bend led to increase in gross revenues of footwear, accoutrements and dress. Collaborations with other spouses Collaborations with other spouses with athletic trade names for cougar for illustration the coaction with McQueen, this coaction brought the footwear, accoutrements and dress closer to the universe of high manner by for illustration this coaction lead to Puma opening up a shop in New York ace hip meatpacking territory a long side Alexander McQueen’s flagship shop. This aggregation was unveiled in September 2007 gross revenues growing and enlargements Puma direction confirmed addition in gross revenues on of footwear, dress and accoutrements for based on the fiscal consequences for the first one-fourth of 2008 this has come as a consequence of cougar outsourcing production and stuff to developing states where labor is inexpensive every bit good as cost of production, together with monolithic advertizement and selling, cougar gross revenues in all the three key markets saw high gross revenues growing. Puma has continued to open and spread out more in retail and retail- now how for illustration in 2007 cougar opened up 25 shops making more involvement in the shops and spread outing its customer’s base and determining the place of retail stores that aids to bring forth more growing and trade names quality. 4. Coup detat Take over is dealing that takes topographic point between two or more companies where one company lose it’s control to another company for illustration Puma relinquished all it control to Pinault Printemps Redoute, this return over come finalised by July ( Daily News, Record, 2006 111-123 ) Puma and Pinault Printemps Redoute will strategically profit from this move as discussed below 4.1 Strategic benefits PPR Economies of graduated tables Puma and Pinault Printemps Redoute will profit both from economic systems of graduated tables by uniting production and bring forthing big volume of footwear/luxury goods, the return over enables to both companies to bring forth goods economically by to the full using the works machineries during production clip for illustration by jointly bring forthing and new design save cost and by utilizing both engineerings the companies improve on development clip doing new designs to make clients on clip. Puma’s Economies of graduated table Puma uses the expertness and design cognition of PPR group this has enable Puma to bring forth high trade names enabling cougar to put it self as category apart from it’s rivals Synergies Synergies between cougar and Pinault Printemps Redoute is much greater than cougar or Pinault Printemps Redoute runing entirely, strategically puma will profit more because it will be given opportunity to broaden it merchandise line so that it has market for each sections in the market for illustration in the footwear, accoutrements, dress, snowboarding and skating and Pinault Printemps Redoute will go on bring forthing its luxury merchandise scope, this trade name distinction by cougar and Pinault Printemps Redoute will enable the houses fair good in the oligopoly markets. PPR group Growth Pinault Printemps Redoute has strategically benefit from growing in two ways, this can be internal or external, the return over will enable the company to turn fast and quickly for illustration to the Pinault Printemps Redoute web site, Puma’s 2007 part to PPR group amounted to ˆ1,718 million, that’s a rise of 3.6 % as compared to 2006 before the return over, in 2007 cougar contributed runing income of ˆ 236 million to PPR group that’s operating net income at 13.8 % gt ; after take over at 27.1 % control of cougar, Pinault Printemps Redoute increased in interest to 62.1 % on completion of the offer but this growing can besides attributes to sale residuary interest in France Printemps to RREEF and the Borletti Group every bit good as the acquisition by Redcats USA of united Retail Group Puma’s enlargement and Growth Puma benefited from this move through enlargement shiping on Phase IV of its strategic programs which included broade ning the merchandise line into non puma trade name every bit good as enlargement onto other parts. For illustration Puma benefitted from this move by spread outing to china markets where it opened up new shops to run into the footwear demand by showcasing it’s new aggregation in Olympic small town in readying for 2008 Olympics Reduce competition Strategically both Puma and Pinault Printemps Redoute will cut down competition between themselves and increase their market power to vie with other houses such as Nike and Adidas for illustration with a combine market, both companies will hold equal portion of market size which will be able to kill of competition from other trade names such as Adidas, Nike and Reebok which has strong competition with Puma for market portions for athletic wear and athleticss equipments Increased liquidness of ownership portions of the company Pinault Printemps Redoute has benefited from the return over by having a commanding interest in by selling monetary value portion of ˆ330 which raised tonss of liquid hard currency money for PPR and it commanding interest made PPR major determination doing refering cougar. High portion monetary value Puma benefited from the return over through portions sold at a monetary value of ˆ330 tot some of puma portion holders this besides made puma stockholder who bought portion in PPR it’s portion holder who benefits financially if PPR trades good on the stock market Stronger Financial base Until early 1980- 1990, Puma had a really hapless trade name image that show a diminution in its market portion and prompted cougar to alter it strategic determinations to better on its image, this procedure of alteration was led by Jochen Zeitz Puma CEO based on stages one to four of strategic program to alter puma’s image so that it can vie favourable in the market place and within a twosome of old ages Jochen Zeitz had alteration puma’s trade name image into one of the most desirable and sought after trade name of athletic wear and footwear worn both buy famous persons and manner followings all over the word. Puma is invariably introducing utilizing engineering, growing and trade name run consciousness. Puma’s hereafter is bright with a healthy. hypertext transfer protocol: //www.ppr.com/front__sectionId-454_Changelang-en.html 6. 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