Puma – CRM Class Assignment

• Brothers Rudolf Dassler and Adolf Dassler started making shoes in 1924 and formed
a company called Adidas.
• However, in 1948, Rudolf split from his brother’s company, and started a company
called Puma. Puma has since then grown to become one of Germany’s largest maker
of athletic shoes.
• It is a public limited company, which is listed in Frankfurt Stock Exchange. Puma
employs more than 9,000 people and distributes its shoes in more than 120 countries
throughout the world, generating more than $2.5 million in revenue per year.
• The company has headquarters in London, Germany and Hong Kong.

7 P’s of Marketing
Product in 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 produce of NASCAR and Formula 1. 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
Apparels
Fancy shoes
T shirts
Tracks
Boxers accessories
Gloves
Helmets
Water bottles

• Puma uses national brand ambassadors to promote its product line.

Product diversification strategies include production of gymnasium equipment,
trekking equipment and Nutrition and Fitness consultancy.
• Product diversification strategy is designed to make the company more profitable and
attract a diversified customer base.

Promotion in Puma
• 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 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- Saina Nehwal
• Tennis Gears- Somdev Devramman
• Cricket Equipment- Gautam Gambhir
• Health Academy- Shilpa Shetty
• Puma is also playing its public relations game well. For instance, the company
sponsors trophies in order to promote and protect its image.

Place in Puma
• Puma shoes are mostly distributed to multibrand storefronts as well as the exclusive
Puma stores that can be found in major cities in the world. This 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.

Pricing in 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 its rival companies.
Moreover, Puma normally uses premium pricing strategy because Puma views its
brand as premium.
• Thus, Puma will be higher priced when compared to a competitor like Bata. Adidas
and Reebok are the only closest competitors for Puma, pricing of whom is
comparatively higher than Puma.
• Due to the brand name it enjoys, the pricing of Puma products look convincing most
of the times.

Physical Evidence
• Almost all services include some physical elements even if the bulk of what the
consumer is paying for is intangible. PUMA – This can be linked with PUMA’s
online website.
• When you buy a product from puma online and receive the product, you will receive a
confirmation letter with the product of your order.

People
• All companies are reliant on the people who run them from front line Sales staff to the
Managing Director. Having the right people is essential, offering the same
products/services you are offering.
• PUMA – this includes people like Rihanna, Kylie Jenner etc people who have a major
influence helping to sell products.

Process
• The delivery of your service is usually done with the customer present so how the
service is delivered is once again part of what the consumer is paying for.
• The process side can involve Puma understanding how to create a quick and reliable
online purchasing service for consumers.
 • Also, it can involve employees offering a unique, enjoyable and bright experience
when it comes to customers shopping in chain retailers or Puma specific shops.
• Also, an important process is creating an easy to understand and helpful process in
which a customer might need to return an item after purchase, or even to review items
online or over the phone.

Value-in-use:
• It is the want satisfying power of a commodity. The satisfaction which one obtains
from the use of a commodity is known as the value-in-use.

• PUMA is the 26th most popular clothing & footwear brand and the 11th most famous.

• PUMA is described by fans as: Well made, Good quality, Good value for money,
Trendy and Family-friendly. The products fulfill wants and desires based on image,
not needs.

Value-in-exchange:
• The value exchange is the sales transaction between the company and its customers.
This transaction happens repeatedly over and over again.

• The health of the exchange transaction has a significant impact on the overall health
and success of the business.

• In PUMA they give value to their customers

• Assist them during and post purchase transactions
• 50-60% Discount for the regular customers

• PUMA in India is committed to happiness. So in case if there are any customers who
are not happy with the product can return it in a span of 30 days of the initial delivery
date.

• There is something called customers points, which is during the transaction

• I.e Every purchase, there will be a certain number of points depending on the price of
the product.

• After he/she crosses a certain point level, that person would be entitled to a gift from
the company or choose a product of a certain value from the range.

Value in Experience
• Whenever we visit a puma store the value which experience is always
Welcoming, Surprising, Colorful, sustainable, and above all else, Joyful!

• When consumers hear the words Pumas, they associate words such as quality, comfort
and accessibility.

• This proves that Pumas is successfully promoting their overall marketing strategy.

• They aim their advertising at a predominantly middle-upper class consumer group and
this reflects in their marketing campaigns.

• This image is also boosted by their store layouts and presentation, as well as their
genuine concern to stock quality products.

• 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 position strategy.

• 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.

• Puma keeps customers up-to-date about new possibilities, designs etc.

• Bring-Me-Back Bin Programme, PUMA says: “materials put back in the right place.
This way we don’t steal from nature, but borrow. And borrowing is a good thing”

• Basically, collect all the old shoes and clothes that you don’t want anymore (even the
non-PUMA stuff). Drop on the PUMA bring me back bin

• By taking old clothes and re-using, re-cycling, or re- purposing them, they mitigate
the amount of virgin material that would otherwise be used to make new products.
They have a partnership with I-Collect which creates a closed-loop system that diverts
products from the landfill, and becomes a new product.
 Submitted By – Nikhil Chandran Batch 28
PGDM

Thank You