Download as pdf or txt
Download as pdf or txt
You are on page 1of 43

COMMUNITY INSTIUTE OF COMMERCE AND

MANAGEMENT STUDIES BANGALORE

Towards partial fulfillment of


Bachelor of Business Administration (BBA)

“MARKETING STRATEGY OF PUMA AT PUMA


SHOES
COMPANY LTD”
INDIA

GUIDED BY: Submitted by:


MRS.MANJUSHREE MOHAMMED
(faculty) JUMAIN
MAAZ
TABLE OF CONTENT
1) INTRODUCTION
a) Background of the problem
b) About The PumaCompany
c) Puma Maxsight
d) Company Overview
e) Product Trend
2) RESEARCH METHODOLOGY
a) Research objectives
b) Research design
c) Data sources
i) Primary data
ii) Secondary data
d) Questionnaire design formulation
e) Sample design
f) Limitations of the research
3) COMPANY PROFILE
a) Puma Company Ltd. – A company profile
b) Recent Development
c) Future Plan
d) Risk and Concern
e) Literature Review
f) 4ps of Puma
g) SWOT Analysis
4) DATA ANALYSIS
5) CONCLUSION FINDINGS
) RECOMMENDATIONS
a) Other suggestion include
7) ANNEXURE
INTRODUCTION

BACKGROUND OF THE PROBLEM

Since the late 1980s, Business School marketing professor


Itamar Simonson has looked for ways to understand how
consumers make choices. Much of his work debunks the
accepted theory that giving consumers what they want and
making a profit are the most basic principles of marketing.
Customers may not know what they want, and second guessing
them can be expensive, says the professor who teaches MBA
and PhD marketing and consumer decision making courses. In
Simonson’s words, “The benefits and costs of fitting individual
customer preference are more complex and less deterministic
than has been assumed.” That’s because “customer
preferences are often ill-defined and susceptible to various
influences, and in many cases, customers have poor insight
into their preferences.” In one of his recent papers, Simonson
tackles the issue of one-to-one marketing and mass
customization. Supporters of these marketing approaches have
suggested that learning what customers want and giving them
exactly what they want will create customer loyalty and an
insurmountable barrier to competition.
In an example taken to the extreme in the 2002 movie Minority
Report, Tom Cruise’s character runs through a shopping mall
past talking billboards that recognize him by name and urge
him to buy products he had earlier expressed an interest in
such as jeans and Ray-Bans, the ultimate in personalized
advertising. But Simonson has this to say: “The fact that
consumer preferences are often fuzzy, unstable, and
manipulatable is unlikely to change. So, the effectiveness of
methods to give customers exactly what they (say they) want
has been grossly exaggerated.” His take on the long-held
assumption that individual marketing will supplant targeted
marketing is “not so fast.” In studies, he has learned that
“even when customers have well-defined preferences and
receive offers that fit those preferences, it is far from certain
that the response to such offers will consistently be more
favorable than those directed at larger market segments.”
It’s all psychology. Consumers with well-defined preferences
may be skeptical that a marketer could match expectations.

Those who don’t know what they want may not ever see the fit
with what the seller wants them to buy. So, individualized
offers depend on customers’ preferences &; how the offer was
extended &; and on trust. “Effective individual marketing
requires not only an understanding of individual preferences
and matching offers to those preferences, but also a thorough
familiarity with the various factors that impact customers’
responses,” Simonson writes.

This is a tall order, one that some companies have been able to
fill, at least to some extent. For example, Amazon keeps track
of customers’ purchases and suggests other books they might
like. Dell builds computers from mass-made parts to
customers’ specifications.

But Simonson argues some companies can take the concept


too far, like the Custom Foot chain of shoe stores that took
detailed measurements and specifications from each customer
to design one-of-a-kind shoes. Custom Foot didn’t take into
account that some customers were put off by the individualized
attention, Simonson says, and felt obligated to buy the shoes
because the store went to so much trouble.
They often didn’t come back. So knowing only the customer
preferences is not enough. It is required to understand other
aspects of customer behavior. Kipping this in mind, present
study will find out and analyze consumer behavior of Puma
shoes with reference to ladies segment.

………………………….
ABOUT THE Puma COMPANY
Puma SE, branded as Puma, is a German multinational
company that designs and manufactures athletic and
casual footwear, apparel and accessories, which is
headquartered in Herzogenaurach, Bavaria, Germany.
PUMA is the third largest sportswear manufacturer in
the world.The company was founded in 1948 by Rudolf
Dassler. In 1924, Rudolf and his brother Adolf
Dassler had jointly formed the company Gebrüder
Dassler Schuhfabrik (Dassler Brothers Shoe Factory).
The relationship between the two brothers deteriorated
until the two agreed to split in 1948, forming two
separate entities, Adidas and Puma. Both companies
are currently based in Herzogenaurach, Germany.
Puma has been a public company since 1986, listed at
the Frankfurt Stock Exchange. French luxury group
Kering (formerly known as Pinault-Printemps- Redoute
or PPR) holds 16%, Kering's largest shareholder
Artemis SA owns 29% of the share capital. Since 1 July
2013, the company has been led by former football
professional Bjørn Gulden (CEO).
As of 2017, Puma SE employs more than 13,000
people worldwide and distributes its products in more
than 120 countries.
Following the split from his brother, Rudolf Dassler
originally registered the new-established company as
Ruda, but later changed the name to Puma.
Puma's earliest logo consisted of a square and beast
jumping through a D, which was registered, along with
the company's name, in 1948. Puma's shoe and
clothing designs feature the Puma logo and the
distinctive "Formstrip" which was introduced in 1958.
HOWTHEY WORK
Puma’s patented Puma Light Architecture™
selectively alters specific wavelengths of light
within the visual spectrum to enhance key
elements in sport.

The athlete gets crisp, clear vision without


anything getting in their way. By removing most
of the blue light, contrast and clarity are
enhanced — a decided advantage for any
competitor. For sports not conducive to eyewear,
such as golf, tennis and soccer, athletes will see
marked improvement, even on days where the
sun’s not at its brightest.

Puma provides through-and-through tinting


(unlike cosmetically tinted lenses), so there’s no
bending or scattering of light. Plus there’s limited
incidental light or peripheral flickering creeping
around the sides, as with sunglasses. Athletes
tested in Puma MaxSight lenses found they
squinted less, were able to relax more, and had
exceptional views of contours and movement.
Wearers will also discover a game-day benefit –
the look.

“It makes the eye look distinct, the large-pupil


effect,” says Alan Reichow, Puma Vision
Consultant. “It looks competitive.”
Marco Materazzi of Italy’s Inter Milan football
club and Baltimore Orioles second baseman Brian
Roberts are among the pro athletes wearing
Puma MaxSight. “It has been a lot of fun to start
the season this hot,” said Roberts early in the
MLB season. In fact, he became one of the first
true fans of Puma MaxSight after impressive
initial results.

During a spring daytime game, Roberts said, “I


wore the lenses and went 2 for 4. They are so
awesome.”
With Puma MaxSight, there’s minimal squinting
in bright light, and quicker visual definition when
going from bright light to shadows.

Puma MaxSight is a 30-day lens, though most


athletes will wear them selectively and for short
durations. Lenses come in six-pack packaging.
Puma MaxSight is available with or without a
correction, thereby making it accessible to
athletes whether they wear contacts or not.
PRODUCT TREND

Bovine skin was by far the most preferred leather


Material, followed by goat/kid/lamb/sheep skin and
crocodile skin.

Respondents overwhelmingly preferred the color black


and, to a lesser extent, dark brown.
For handbags/ briefcases, popular colors included light
brown, white and red. Consumer Segments with the
Biggest Spending Power Male professionals, managers
and executives are the segment with the biggest
spending power for now and in the coming three years.

Other major consumer segments include male office


workers; sole proprietors/business owners; female
office workers; and female professionals, managers
and executives.

The Competitiveness of Hong Kong Brands/ Suppliers


of Leather Consumer Goods. Most retailers consider
Hong Kong brands to be either very competitive or
quite competitive in both high-end and mid-range
segments, but less competitive in the low-end
segment.

The competitiveness of Hong Kong brands mainly rests


on their product style/design and quality, with most
respondents picking those as the major reasons behind
the attractiveness of Hong Kong brands in the high-end
and mid-range segments respectively.
PRODUCT PROFILE

Apart from delivering a pair of comfortable sports


shoes Puma also provides a number of value-added
features with its products. The features that are a part
of every Puma sports shoe are as follows.

High P e r f o r m a n c e S p o r t s Sh o es : Puma has patented


the “Air” system and has made it into a regular feature
in most of its models. Many models feature an air
pocket in the shoe that reduces the weight of the shoe
and reduces pressure on the heels.
Besides the overall design and compactness of the
shoes have made it a favorite of many professional
athletes around the world.

C o mf o r t : Puma shoes are renowned all over the world


for the comfort they provide. Well padded and
cushioned, they provide a tremendous level of comfort
to the wearer and reduce the strain to his feet while
playing.

L i g h t w e i g h t : This attribute is in line with the two


described above. A lightweight shoe provides greater
mobility and eases the pressure on the feet of the
wearer.

D u r a b i l i t y : People purchasing a pair of shoes at such


a high price often feel that they have made an
investment. They would obviously want to see their
shoes last a long time.
S t y l e : Puma’s designs are considered to be the most
stylish in the Company and beat all others as far as
looks are concerned. Attractively packaged, it is a
delight to bring a pair home. Add to this the “Swoosh”
– the most recognizable symbol in sports and you have
a product that would give the user a definite sense of
pride.

Puma shoes also come with a guarantee card that


enables the owner to return it in case of manufacturing
defects.

However, owing to the fact that the company


implements strict quality control measures, coming
across a defective pair in a store are a rarity.

The most recent additions to their line are the Puma


6.0 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'.[ Puma positions its products in such a
way as to try to appeal to a "youthful....materialistic
crowd".It is positioned as a premium performance
brand.

........................................
RESEARCH METHODOLOGY

Research comprise defining and redefining problems,


formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last
carefully testing the conclusions to determine whether
they fit the formulating Hypothesis. In short, the
search for Knowledge through Objective and
Systematic method of finding solutions to a problem is
Research.

RESEARCH OBJECTIVES

To study the tastes, preferences, and buying


behavior of consumers in case of footwear of Bata.

To analyze buying behavior of ladies segment of


consumers.

To recommend strategies to Puma to increase sales


in ladies segment.

The main objectives of this study are:

Working of Insurance Plans


SWOT analysis of the product sold
Comparative study with the competitors
RESEARCH DESIGN

TYPE OF RESEARCH

Descriptive research

Descriptive research includes Surveys and factfinding


enquiries of different kinds. The main characteristic of
this method is that the researcher has no control over
the variables; he can only report what has happened or
what is happening.

DATA SOURCES

There are two types of data. Source of primary data for


the present study is collected through questionnaire
and answered by consumers of Puma shoes. The
secondary data is collected from journals, books and
through Internet search.

PRIMARY DATA

The data that is collected first hand by someone


specifically for the purpose of facilitating the study is
known as primary data. So in this research the data is
collected from respondents through questionnaire.

SECONDARY DATA

For the company information I had used secondary


data like brochures, web site of the company etc. The
Method used by me is Survey Method as the research
done is Descriptive Research.
QUESTIONNAIRE DESIGN FORMULATION
Under this method, list of questions pertaining to the
survey are prepared for marketing staff of consumers
of Puma shoes.
Questionnaire has structured type questions as well as
unstructured type questions. Structured objective type
questions are prepared for the respondents with fixed
response categories. Some of the questions are of
multiple-choice type. The questions have more than
one alternative.

Questionnaire: - A questionnaire consists of a set of


questions presented to respondent for their answers. It
can be Closed Ended or Open Ended
Open Ended: - Allows respondents to answer in their
own words & are difficult to Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers &
are easy to Interpret and Tabulate.

TYPES OF QUESTION INCLUDED:DICHOTOMOUS QUESTIONS


Which has only two answers “Yes” or “No”?

MULTIPLE CHOICE QUESTIONS


Where respondent is offered more than two choices.

IMPORTANCE SCALE
A scale that rates the importance of some attribute.

RATING SCALE
A scale that rates some attribute from highly satisfied to
highly unsatisfied and very inefficient to very efficient
SAMPLING UNIT
Who is to be surveyed? The marketing researcher must
define the target population that will be sampled.

EXTENT
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the
survey.

TIME FRAME
When the survey should be conducted?
I conducted my survey for 8weeks from 10th may to 10th July.

SAMPLING FRAME
The source from which the sample is drawn.

SAMPLING TECHNIQUE
How should the respondent be chosen?
In the Project sampling is done on basis of Probability
sampling. Among the probability sampling design the sampling
design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different
age group, different gender and different profession.
STEPS FOLLOWED IN COMPLETING THESTUDY

1.Libraries at
(a)Indian Council for Applied Economic Research
(b)Indian Institute of Technology, (IIT) Delhi
(c)Council of scientific and industrial Research (CSIR)
(d)PHD chamber of commerce, are visited.
2.Internet sites containing information on Puma
shoes & marketing are browsed.
3. Sample survey was conducted.
4. Data was thoroughly checked for error.

DATA PROCESSING METHODOLOGY

Once the primary data have been collected, they are


(i) edited – inspected, corrected and modified.
(ii)Tabulation – bring similar data together and
totaling them in meaningful categories.
Questionnaires are edited both in the field and later in
home. Field editing took place just often the interview.
Generally editing is required for open type of questions.
Brief notes or symbols are frequently used during the
interview to initially record the interviewer’s response
since it was not desirable to interrupt the flow with
lengthy note taking. Then immediately after the
interview, brief notes are respondent. The responses
are thoroughly checked in home for incorrect,
inconsequential or contradictions categories are
developed only often the replies has been reviewed.
This review provided a feel for the pattern of answers
and thus determine what categories best represent the
answers.

Percentages of respondents answered similarly are


calculated and placed in a table.
Then this is interpreted. This involved drawing
conclusion from the gathered data. Interpretation
changes the new information immerging from the
analysis into information that is pertinent or relevant to
the study.

CONCLUSION WAS DRAWN BASED ONTHE


SURVEY FINDINGS

Finally recommendation was made to improve the sales


strategy of Puma shoes to increase the sales volume in
ladies segment.

SAMPLE DESIGN

THE BASIS OF SAMPLING: -


Consumers of Puma shoes are chosen randomly, so
that unbiased, representative sample may be obtained.
LIMITATIONS OFRESEARCH

The geographical area was very much limited to


residential area & so the results are not particularly
reflection of the current behavior.

BIASES AND NON-COOPERATION OF THE


RESPONDENTS
❖ The collected data are placed into an order.
Percentages of respondents answered similarly are
calculated and placed in a table.

❖ Then this is interpreted. This involved drawing


conclusion from the gathered data. Interpretation
changes the new information immerging from the
analysis into information that is pertinent or
relevant to the study.

❖ Due to limited time period and constrained working


hours for most of the respondents, the answers at
times were vague enough to be ignored.

❖ Most of the people in India take their Puma Shoes


in the period preceding March & so the response to
initial contacts were not all encouraging and that
has been the primary reason in the inability to
quantify the results large enough so as to deduce
any relevant outcomes.
RISK ANDCONCERN

Lifting of quantitative restriction on import of footwear


will lead to the market being flooded by imports. Labor
issues have always bothered BIL and this resulted in
disruption of manufacturing activities on numerous
occasions.

Competition is hotting up in the domestic market due


to popular brands such as Gaitonde, Red Tape, Lotus
Bawa and Tatas. These brands are gaining market
share especially in the premium segment and in this
segment BIL has no significant presence.

Latest Results Sales for Q3 FY2000 increased by 5.5%


yoy to Rs1.7bn. profits dropped by 90% yoy to Rs3.8
Mn due to lower operating margins and higher
depreciation and interest. Depreciation increased by
6.3% yoy to Rs 37 Mn while interest cost increased by
9.3% yoy to Rs 23.4 Mn.

Operating margins dropped by 3.3% due to increase in


input cost. The Peenya plant has not commenced
operations despite lifting up of the lock out since July
3, 2007.
VALUATION

BIL’s long-term success is dependent on the how


labour issue is tackled and the flexibility, which it can
adopt to meet threat of imports and competition from
local footwear companies. Long term investors with a
two-year investment horizon can accumulate the stock
at current levels. It is also increasing focus on rural
thrust for volume growth in the low-priced footwear
segment.
Lifting of quantitative restriction on import of footwear
will lead to the market being flooded by imports. Labor
issues have always bothered BIL and this resulted in
disruption of manufacturing activities on numerous
occasions.
Competition is hotting up in the domestic market due
to popular brands such as Gaitonde, Red Tape, Lotus
Bawa and Tatas. These brands are gaining market
share especially in the premium segment and in this
segment BIL has no significant presence.
Sales for Q1 CY2001 decreased marginally by 0.6%
yoy to Rs 1590.7 mn. There was a net loss of Rs 30.2
mn as against a profit of Rs 39.6 mn in the
corresponding period of the previous year. The loss is
due to lower operating margins and higher interest.

BIL’s long-term success is dependent on the labor issue


and the flexibility, which it can adopt to meet threat of
CONSUMER BEHAVIOR

Shopping locations, Department stores were the most


preferred type of retailers, followed by outlets in
shopping malls and chain stores. Product variety,
guaranteed quality, brand choice, price, services and
store environment were cited as the major reasons for
visiting a leather consumer goods store.

SHOPPING TIME

Thirty-eight percent of respondents visited leather


consumer goods shops at least once a month.
Shopping during weekends is common. Other popular
shopping occasions include National Day (1st October),
Chinese New Year (January/February), New Year's Day
(January) and Labour Day (1st May).

MARKETING CHANNELS

Promotional activities in shopping malls and


department stores are the most popular promotional
and sales activities, followed by discount/price
reduction, TV commercials, discount coupons,
promotional stands, exhibitions, buy-one- (or more)
gets-one-free.

POPULAR BRANDS
Most respondents considered brands important.

SELECTION CRITERIA

When choosing leather consumer goods product quality


stood out as the principal consideration for respondent,
followed by product material, craftsmanship,
style/design, price and brand.

PURCHASING POWER

On average, respondents owned 4.2 pairs of shoes, 1.2


pieces of wallets, 1.3 pieces of belts and 1.3 pieces of
handbags/briefcases. Over the past 12 months, an
average respondent's spending on leather consumer
goods was as follows:

- Shoes: RMB 597 (total) RMB 328 (per pair)


- Wallet: RMB 226 (total) and RMB 193 (per piece)
- Belt: RMB 220 (total) and RMB 194 (per piece)
- Handbag/briefcase: RMB 476 (total) and RMB 359
(per piece)

4PS OFPUMA

Puma’s 4Ps comprised of the following approaches to


pricing, distribution, advertising and promotion, and
customer service:

Pricing: Puma’s 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.

Place: Puma shoes are distributed to Multi Brand store


front and the exclusive Puma stores across countries.
While this necessitates a second trip for the customer
to come and pick up the shoes, it allows Puma to offer
a much wider selection than any of the competition.

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.

Product: The product range of Puma comprise of


shoes, sports wear, watches etc. Its product history
began with long distance running shoes in 1963. (Past
17 years: Air Jordan basketball shoes). Wide range of
shoes, apparel and equipment.
For example:

❖ Puma Oregon Digital Super Watch


❖ Puma Presto Cee Digital Medium Watch
❖ Puma Presto Cee Digital Small Watch
❖ Puma Ron Analog Watch
❖ Puma Triax 10 Regular Watch
❖ Puma Triax Armored II Analog Super Watch
❖ Puma Women's Imara Fit Digital Watch
SWOTANALYSIS
SWOT ANALYSIS PUMA, INC.

STRENGTHS

Puma is a very competitive organization. Phil Knight


(Founder and CEO) is often quoted as saying that
'Business is war without bullets.'
Puma has a healthy dislike of is competitors. At the
Atlanta Olympics, Reebok went to the expense of
sponsoring the games. Puma did not. However Puma
sponsored the top athletes and gained valuable
coverage.

Puma has no factories. It does not tie up cash in


buildings and manufacturing workers. This makes a
very lean organization. Puma is strong at research and
development, as is evidenced by its evolving and
innovative product range. They then manufacture
wherever they can produce high quality product at the
lowest possible price. If prices rise, and products can
be made more cheaply elsewhere (to the same or
better specification), Puma will move production.

Puma is a global brand. It is the number one sports


brand in the World. Its famous 'Swoosh' is instantly
recognizable, and Phil Knight even has it tattooed on
his ankle.

WEAKNESSES

The organization does have a diversified range of


sports products. However, the income of the business
is still heavily dependent upon its share of the footwear
market. This may leave it vulnerable if for any reason
its market share erodes.

The retail sector is very price sensitive. Puma does


have its own retailer in Puma Town. However, most of
its income is derived from selling into retailers.
Retailers tend to offer a very similar experience to the
consumer. Can you tell one sports retailer from
another? So margins tend to get squeezed as retailers
try to pass some of the low price competition pressure
on to Puma.

OPPORTUNITIES

Product development offers Puma many opportunities.


The brand is fiercely defended by its owners whom
truly believe 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 sport.
Some would argue that in youth culture especially,
Puma is a fashion brand. This creates its own
opportunities, since product could become
unfashionable before it wears out i.e. consumers need
to replace shoes.
There is also the opportunity to develop products such
as sport wear, sunglasses and jewellery. Such high
value items do tend to have associated with them, high
profits.
The business could also be developed internationally,
building upon its strong global brand recognition. There
are many markets that have the disposable income to
spend on high value sports goods. For example,
emerging markets such as China and India have a new
richer generation of consumers. There are also global
marketing events that can be utilized to support the
brand such as the World Cup (soccer) and The
Olympics.

THREATS

Puma is exposed to the international nature of trade. It


buys and sells in different currencies and so costs and
margins are not stable over long periods of time. Such
an exposure could mean that Puma may be
manufacturing and/or selling at a loss. This is an issue
that faces all global brands.
The market for sports shoes and garments is very
competitive. The model developed by Phil Knight in his
Stamford Business School days (high value branded
product manufactured at a low cost) is now commonly
used and to an extent is no longer a basis for
sustainable competitive advantage. Competitors are
developing alternative brands to take away Puma
market share.

As discussed above in weaknesses, the retail sector is


becoming price competitive. This ultimately means that
consumers are shopping around for a better deal. So if
one store charges a price for a pair of sports shoes, the
consumer could go to the store along the street to
compare prices for the exactly the same item, and buy
the cheaper of the two. Such consumer price sensitivity
is a potential external threat to Puma.
DATA ANALYSIS

1.BRAND POSITIONING OF PUMA SHOES ..?

Particular Respondent
Puma 32
Relaxo 25
Nike 43

50
45
40
35
30
25
20
15
10
5
0
Puma Relaxo Nike

Interpretation:-
The most preferred brand in the market is Nike (43%)
followed by Puma (32%) & Relaxo (25%).
2. WHAT TYPES OF SHOES DO YOU LIKE TO
PURCHASE MOSTLY?

Particuler Respondent
Sports 47
Canvas 18
Formal 35

50

45

40

35

30

25

20

15

10

0
Sports Canvas Formal

Interpretation:-
In the above graph we find out which type of shoes
company purchase. 47% company purchase the order
of sports shoe.18% company purchase the order of
canvas shoe, 35% company prefer formal shoes.
3. HOW DO YOU KNOW PUMA SHOES?

Particular Respondents
Advertisement 16
References 33
Past purchase 26
Sale person visit 25

35

30

25

20

15

10

0
Advertisement References Past purchase Sale person vist

Interpretation:-
In this question we have the survey about the how the
other company should know about the select shoes.
Where the result is shown that 16% know through
advertisement, 33% are references , 26% are past
purchase & 25% are sale person visit.
4. HAVE YOU HEARD THE NAME OF THE PUMA
SHOES?

Particular Respondent
Yes 89
No 11

100

90

80

70

60

50

40

30

20

10

0
Yes No

Interpretation:-
The graphically result shows that 89% people are
known about the Puma shoes & 11% people are not
know about the name of Puma shoes.
5. WHICH TYPE OF ADVERTISEMENT YOU DO THE
ATTRACT MORE?

Particular Respondent
Internet 48
TV 22
Bill boards 9
Newspaper 21

60

50

40

30

20

10

0
Internet TV Bill boards News paper

Interpretation:-
The graphically result shows that 48% say internet,
22% say TV, 9% say bill boards & remaining 21% say
newspaper.
6. FACTORS AFFECTING THE PURCHASING
DECISION?

Factors Respondent
Price 28
Quality 31
Size 11
Brand image 18
Design 12

35

30

25

20

15

10

0
Price Quality Size Brand image Design

Interpretation:-
Studies reveals that price, quality, size, brand image &
design fall between large extent & extent others
attributes like colour of the shoes lies between the
some extent and least extent.
7. PRODUCT QUALITY OF PUMA SHOES?

Particular Respondent
Poor 3
Fair 26
Average 22
Good 44
Excellent 5

50

45

40

35

30

25

20

15

10

0
Poor Fair Average Good Excellent

Interpretation:-
The graphically result shows that 3% is poor, 26% is
fair, 22% is average, 44% is good & 5% is excellent
quality of shoes.
8.DO YOU HAVE ANY COMPLAINTS ABOUT THE
PRODUCT OF THE COMPANY?

• Yes 17%
• No 83%

Yes
No

9.DO YOU PREFER BUYING THE PRODUCT


ONLINE?

• Yes 60%
• No 40%

Yes
No
Do you ask for a specific brand by name?
➢ 90% people say yes to this. and the remaining
10% say no.

Which brand do you generally use?


➢ People in India prefer Puma the most as we can
see that 17% people prefer Puma sports wear.

Has any sports shoes ad made an impact on you?


➢ Most of the people are influenced with Adidas’s ad,
then with Reebok and then Puma. The most
uninfluential is that of action.

By this we infer that the consumer wants the shoe to


be durable that is of primary importance for them.
Then the price is also very important for them. The
shoe should be comfortable. Along with that looks and
the brand image is also important.
CONCLUSION
The specific brand objective of Puma India would be to
build up its brand reputation, image and equity. A
brand is not simply a collection of products and
benefits, but also a storehouse of value stemming from
awareness, loyalty, and association of quality and
brand personality. A brand is a name, term, sign,
symbol or design or a combination of them intended to
identify the goods or services of one seller or group of
sellers and to differentiate from those of competitors.
In essence, a brand identifies the seller or maker. It
can convey up to six levels of meaning: Attributes,
Benefits, Values, Culture, Personality and User. If a
company treats a brand only as a name it misses the
point. The branding challenge is to develop a deep set
of positive associations for the brand.

Although these six meanings are noticeable in the


Puma brand in the west and other parts of the world,
they are yet to be cultivated in India. Puma has to
ensure that their brand is built up on these pillars in
India.

The secondary brand objective of Puma India would be


to ensure that they match the market share and sales
volumes of its competitors. After all, a company is in
business to make profits and stay ahead of its
competitors. A company, product or brand may have a
very good reputation and image, but if it is not
profitable, it does serve its purpose. At the same time
sales figures and data can be misleading. Hence
market share has also to be paid attention to.
Puma despite being one of the most popular brands in
the world has not really caught on in India. Yet, there
is reason to believe that Bata’s Power and Liberty
would be ahead of Puma in terms of popularity. We
also notice that Puma is at par with Reebok. This again
does not reflect too well on the brand, considering that
Puma outsells Reebok everywhere else in the world.

Hence it is reasonable to state that Puma’s popularity


level in India could do with a boost. The best way to
achieve this would be some serious brand building.
The image of the brand has to be improved and people
must be made aware of its presence. Thus, the
rationale behind choosing improvement of brand image
and reputation as the company’s primary objective is
quite clear.
Puma’s distinctive competency lies in the area of
marketing, particularity in the area of consumer brand
awareness and brand power. On the global scale this
key distinctive competency towers over the
competitors. As a result, Puma’s market share is
number-one in the athletic footwear Company in most
places around the world. Catch phrases like, "Just Do
It," and symbols like the Puma "Swoosh," couple with
sports icons to serve as instant reminders of the Puma
Empire. It is about time that this competency is
leveraged on to India.
Two key attributes of a distinctive competency are its
inability to be easily replicated and the value or benefit
it offers to consumers. Few companies have such a
recognizable image and the resources to promote it.
This ultimately translates into added value for
consumers. The public benefits from the strength of
Puma’s image at the point of purchase.

For decades, consumers have come to associate the


Puma image with quality products. By associating star
athletes and motivational slogans like, "Just Do It,"
with marketing campaigns that emphasize fitness,
competition, and sportsmanship, consumers identify
their purchases with the prospect of achieving
greatness. Younger consumers especially benefit from
this positive influence. This image is something that
competing companies can not easily duplicate by
simply enhancing the physical characteristics of their
products.

Puma’s vision is to remain the leader in the Company.


The company will continue to produce the quality
products that have been provided in the past. Most
importantly, Puma will continue to meet the
everchanging needs of the customers, through produc
innovation. In the past, the company has utilized
product differentiation as the main competitive
strategy. As Puma’s reputation dictates, it will continue
to place emphasis in this area. Puma has built its
business on providing products that rise above all
others and this has made it the worldwide success that
it is today.
Puma is known for its technologically advanced
products and is the leader in this area. This allows
Puma’s products to stand out from the rest. The
company’s focus also allows it to maintain a some what
narrow niche that enables it to effectively capture the
needs and wants of the consumers. An example of
Puma’s superior and innovative technology is its new
range of shoes called “Air Presto”. Termed as the first
FINDINGS
The most preferred brand in the market is Nike (43%)
followed by Puma (32%) & Relaxo (25%).We find out
which type of shoes company purchase. 47% company
purchase the order of sports shoe,18% company
purchase the order of canvas shoe, 35% company
prefer formal shoes.

We have the survey about the how the other company


should know about the select shoes. Where the result
is shown that 16% know through advertisement, 33%
are references , 26% are past purchase & 25% are sale
person visit. We shows that 89% people are known
about the Puma shoes & 11% people are not know
about the name of Puma shoes.

We shows that 48% say internet, 22% say TV, 9% say


bill boards & remaining 21% say newspaper. Studies
reveals that price, quality, size, brand image & design
fall between large extent & extent others attributes like
colour of the shoes lies between the some extent and
least extent.

We shows that 3% is poor, 26% is fair, 22% is


average, 44% is good & 5% is excellent quality of
shoes.
RECOMMENDATIONS

To explore the mainland market, Hong Kong companies


should position themselves in areas in which they are
strong. From the viewpoint of mainland consumers,
Hong Kong's leather consumer goods are considered
competitive in the high-end and mid-range. Mainland
consumers are brand conscious, and it is vital to
promote own brands which have clear image.

This survey also shows that Hong Kong products are


preferred for their design/style and quality. Bearing
these in mind, Hong Kong companies should never
compromise on quality, and they should allocate more
resources to product design, selection of material and
craftsmanship.

OTHER SUGGESTION INCLUDE

Department stores are the prime sales and marketing


channel for leather consumer goods. In addition, store
decorations and product displays should be designed to
create a strong first impression. Seasonal promotion
campaigns, like special discounts and advertisements,
could be employed. New lines of collections should be
introduced for festivals.
In addition to promotional activities in shopping malls
and department stores, discounts and TV commercials
are considered effective channels for promotion. It is
advisable to pay attention to the affordability of
customers in different cities, while setting price points
for different product categories. Meanwhile, leather
shoes offer better growth potential.
The vast majority (91%) of consumers receive some
form of permission-based email with 57.2% receiving
special offers from online merchants, 55.4% receiving
them from traditional retailers, and 48.5%receiving
them from catalogers. Other popular types of
marketing emails included account statements/online
bill payment information (received by 49.8% of
respondents), travel emails (43.3%), coupons for
groceries (40.0%), health (41.1%) and household
tips/recipes/crafts (42.1%). Of categories in which
consumers do not currently receive e-mails,
respondents are most interested in receiving grocery
coupons (cited by 22.1%) and household
tips/recipes/crafts (13.6%).Other categories of strong
interest were electronics and computer software/
hardware, 13.8% and apparel/shoes at 12.3%.
Permission-based email also continues to be the
preferred method of contact from the favorite retailer
regarding new products, services or promotions
(preferred by 59% of consumers), while only 32.1%
preferred direct mail. Sender Recognition, Content
Relevance Most Impacts Purchasing consideration
behavior, the line continues to be the most compelling
reason to open permission-based email, cited by
63.3% of all respondents, an increase from 59.9%
in2005.
This speaks to the growing significance of user
recognition of sender and the power of brands — even
more important in an era of spam. Of all types of
subject lines, discount offers are the primary
motivational factor for opening permission based email
(increased to59.5% of all respondents from 56.7% in
2007), while compelling news and information fell from
57.6% of all respondents to 48.6% in 2006.
Special offers from retailers/catalogers received by at
least 50% of respondents. When asked what most
compelled them to take action on a permission-based
email, product I needed at the time, a reflection of the
relevancy of the offer, was noted by37.8% of all
respondents, outranking the next most common
choice, special offer or discount, cited by 35.0% of
respondents.
Likeliness to respond could be increased if an email
contains relevant information (noted by 67.3% of
respondents) and contains information based on
interests specified to that company. Consumers found
recommendations based on past purchasing behavior
less appealing (noted by only 28.1% of all
respondents).Consumers clearly want a degree of
control over what marketers send them and would like
their specified interests taken into account.
Consumers are also very specific in their frequency
preferences, with news and weather most often
preferred daily, special offers from retailers, online
merchants and catalogers most often preferred weekly,
and account statements/bill payment communications
monthly. However, there’re significant numbers of
consumers who vary in these preferences, with just
over20% of those who receive special offers and
discounts from retailers, online merchants and
catalogers preferring the communications to come
monthly. In accordance with specified frequency
statements, when asked what concerned them about
their inboxes, frequency of permission-based email was
second only to Spam, cited by 42% of respondents.
This danger is even more pronounced considering only
28% noted frequency of permission-based email as a
concern in2006.
ANNEXURE

QUESTIONNAIRE

1. WHAT TYPES OF SHOES DO YOU LIKE TO


PURCHASE MOSTLY?

➢ Sports 47.00
➢ Canvas 18.00
➢ Formal 35.00

2. HOW DO YOU KNOW PUMA SHOES?

➢ Advertisement 16.00
➢ References 33.00
➢ Past Purchases 26.00
➢ Sale Person Visit 25.00

3.BRAND POSITIONING OF SHOES?

➢ Puma 32.00
➢ Relaxo 25.00
➢ Nike 43.00

4. HAVE YOU HEARD THE NAME OF THE PUMA


SHOES?

➢ Yes 89.00
➢ No 11.00

5. WHICH TYPE OF ADVERTISEMENT YOU DO THE


ATTRACT MORE?

➢ Internet 48.00
➢ TV 22.00
➢ Bill boards 09.00
➢ Newspaper21.00
6. FACTOR AFFECTING THE PURCHASING DECISION?

➢ Price 28.00
➢ Quality 31.00
➢ Size 11.00
➢ Brand image 18.00
➢ Design 12.00

7. PRODUCT QUALITY OF PUMA SHOES?

➢ Poor 03.00
➢ Fair 26.00
➢ Average 22.00
➢ Good 44.00
➢ Excellent 05.00

8.DO YOU HAVE ANY COMPLAINT ABOUT THE PRODUCT


OF THE COMPANY?

➢ Yes 17.00
➢ No 83.00

9. DO YOU PREFER BUYING THE PRODUCT ONLINE?

➢ Yes 60.00
➢ No 40.00

10. EFFECT OF PRICE?

➢ Yes 83.00
➢ No 17.00

You might also like