A MARKET SURVEY PROJECT REPORT

ON

TITLE

“Marketing Strategy of PUMA at PUMA SHOES COMPANY

LTD”
Submitted in partial fulfillment of the requirements for the award of the
degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Chhatrapati Shahu Ji Maharaj University, Kanpur

Under the Guidance of: Submitted by:

Ms. Ojaswani Srivastava Shabana Khatoon

(Assistant Professor) BBA 4th SEMESTER

Roll No. 22014000728

Session 2023-24

Axis Institute Of Higher Education, Kanpur

1
 DECLARATION

I hereby declare that the Market Survey Project Report entitled “Marketing
Strategy of PUMA at PUMA SHOES COMPANY LTD” submitted to Axis Institute
of Higher Education, Kanpur in partial fulfillment of Degree of Bachelor of
Business Administration is the original work conducted by me. The information
and data given in the report is authentic to the best of my knowledge.

This Market Survey Project Report is not being submitted to any other University
for award of any other Degree, Diploma and Fellowship.

Place: Kanpur Name: Shabana Khatoon

Date: Roll No.: 22014000728

2
 CERTIFICATE

This is to certify that the research project report entitled “Marketing Strategy of
PUMA at PUMA SHOES COMPANY LTD” is bonfide work of “Shabana
Khatoon” student of BBA 4th semester. It has been done under my supervision for
the partial fulfillment of the requirement for the award of BBA Degree from
CSJM University, Kanpur.
The study presented here has not been submitted earlier elsewhere. I am pleased
to say that the performance of the student during the period of report work was
satisfactory.

Ms. Ojaswani Srivastava Dr. Neetu Singh

(Assistant Professor) (Principal AIHE)

3
 PREFACE

A professional course in (Bachelor of Business Administration) is incomplete

unless the theoretical knowledge acquired in the class room is backed up by
practical exposure, as theories alone do not give perfection to any discipline.
Thegapbetweentheoryandpracticalisbridgedbythepracticalexperience, which has
been an integral part of the syllabus.

This present Project report is an image of what I have done and observed during
my survey in “Marketing Strategy of PUMA at PUMA SHOES COMPANY LTD”

I was assigned project “Marketing Strategy of PUMA at PUMA SHOES

COMPANY LTD”.

I have tried my level best to be as systematic as possible and to avoid any sort of
biases.

4
 ACKNOWLEDGEMENT

This work bears the imprints of many persons whose valuable assistance
and insightful suggestions have made this project worthy. With sincere
thoughts and deep sense of gratitude, I would like to take this
opportunity to express my sincere to thanks to our “Ms. Ojaswani
Srivastava” whose able guidance helped to me to give the present shape
of the project.

I feel immense pleasure in extending my gratitude to all for motivating

me for completing my project. I shall ever remain grateful to all for
motivating me for completing my project. I shall ever remain to all of
them for there wishes, which inspire me to come out with flying colors in
the path of honesty and humanity.

I am also thankful to my parents who has helped me. Present work

would not have been possible without their kind support.

With regards:
Shabana Khatoon
 TABLE OF CONTENT

S.NO. TITLE PAGE.NO

1. Introduction 1

2. Objectives Of the study 11

3. Research Methodology 13

4. Company Profile 19

5. Data Analysis 39

6. Conclusions And Suggestions 49

7. Annexures 59
 CHAPTER-1

INTRODUCTION

1
 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.

2
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
3
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 "Form strip" which was introduced in 1958.

HOW THEY WORK

Puma’s patented Puma Light Architecture™ selectively alters specific wavelengths of
light within the visual spectrum to enhance key elements in sport.

4
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.

5
 THE HISTORY
Christoph von Wilhelm Dassler was a worker in a shoe factory, while his wife Pauline
ran a small laundry in the Franconian town of Herzogenaurach, 20 km (12.4 mi) from
the city of Nuremberg. After leaving school their son, Rudolf Dassler, joined his
father at the shoe factory. When he returned from fighting in World War I, Rudolf
was trained as a salesman at a porcelain factory, and later in a leather trading business
in Nuremberg.

In 1924, Rudolf and his younger brother, Adolf, nicknamed "Adi", founded a shoe
factory. They named the new business "Gebrüder Dassler Schuhfabrik" (Dassler
Brothers Shoe Factory) which was the only business at the time that manufactured
sports shoes. The pair started their venture in their mother's laundry. At the time,
electricity supplies in the town were unreliable, and the brothers sometimes had to use
pedal power from a stationary bicycle to run their equipment. In 1927, they moved
into a separate building.

The brothers drove from Bavaria to the 1936 Summer Olympics in Berlin with a
suitcase full of spikes and persuaded United States sprinter Jesse Owens to use them,
the first sponsorship for an African American. Owens won four gold medals. Business
boomed; the Dasslers were selling 200,000 pairs of shoes annually before World War
II.

Both brothers joined the Nazi Party, but Rudolf was slightly closer to the party. A
growing rift between the brothers reached a breaking point during a 1943 Allied bomb
attack.

Adi and his wife climbed into a bomb shelter that Rudolf and his family were already
in. "Here are the bloody bastards again," Adi remarked, apparently referring to the
Allied war planes, but Rudolf, due to his apparent insecurity, was convinced his
brother meant him and his family. When Rudolf was later picked up by American
soldiers and accused of being a member of the Waffen SS, he was convinced that his
brother had turned him in.

6
 COMPANY OVERVIEW
Organizations that were promoting fair trade and worker's rights did not
criticize PUMA's employment practices in their developing world factories,
predominantly relating to workers in China, Turkey, El Salvador, and Indonesia.

The company has made some steps towards greater transparency. In 2000, PUMA
began auditing all of its suppliers on a yearly basis, and makes the results available in
its sustainability reports. Since 2005, it has publicly provided a list of its suppliers.

PUMA has made a strong commitment to respecting workers rights in some areas. For
example, PUMA has obtained the Ethical Clothing Australia accreditation for its
Australian-made products. This labour-friendly accreditation applies to only a tiny
percentage of PUMA’s total production.

In May 2011, The Guardian released an article saying that Puma was the "world's first
major company to put a value on its environmental impact".

According to the article the company "has made a commitment that within four years,
half its international collections will be manufactured according to its internal
sustainability standard, by using more sustainable materials such as recycled
polyester, as well as ensuring its suppliers develop more sustainable materials and
products."

Puma is also known for boosting positive environmental practices in its supply chain
through financial incentives. The innovative Supply Chain Finance scheme
implemented links the sustainability performance of key suppliers to the costs at
which they can access finance. Such scheme won the company an "Innovation
Award" in Supply Chain Finance in 2016.

PUMA SE is engaged in designing, developing, selling and marketing footwear,

apparel and accessories. The Company's segments include Europe, Middle East and
Africa (EMEA), Americas (North and Latin America) and Asia/Pacific. The
Company offers performance, as well as sportstyle products across six business units:

7
Teamsport, Running and Training, Golf, Motorsport, Fundamentals and Sportstyle,
and Accessories and Licensing. The Company is engaged in the sale of products from
the PUMA and COBRA Golf brands through the wholesale and retail trade, as well as
from sales directly to consumers in its own retail stores and online stores. The
Company markets and distributes its products across the world primarily through its
own subsidiaries. The Company distributes its products in approximately 120
countries. For various product segments, such as fragrances, eyewear and watches, the
Company issues licenses authorizing independent partners to design, develop and sell
these products.

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

8
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 Performance Sports Shoes: 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.

Comfort: 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.

Lightweight: 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.

Durability: 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.

Style: 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.

9
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.

10
 CHAPTER-2

OBJECTIVES OF THE
RESEARCH

11
OBJECTIVES OF THE RESEARCH

 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.

 Working of Insurance Plans

 Comparative study with the competitors

12
 CHAPTER-3

RESEARCH METHODOLOGY

13
 RESEARCH METHODOLOGY
Research comprises 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 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

14
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.

15
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 THE STUDY

1. Libraries at
(a) Indian Council for Applied Economic Research

16
(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.

17
 CONCLUSION WAS DRAWN BASED ON THE 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 OF RESEARCH
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.

18
 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.

19
 CHAPTER-4

COMPANY PROFILE

20
 COMPANY PROFILE
PUMA COMPANY LTD. – A COMPANY PROFILE Puma India Ltd (BIL) is
India‘s largest footwear company.
The company has a few dozen small corporate offices around the world, and four
"international hubs": Boston, Massachusetts (moving to Assembly Row, Somerville,
Massachusetts; Hong Kong; Ho Chi Minh City, Vietnam; and global headquarters
in Herzogenaurach, Germany.

Puma Sports India Pvt Limited operates as a manufacturer and distributor of sports
products in India. The company offers footwear, apparel, and sports accessories for
football, motorsport golf and everyday use. The company was founded in 2005 and is
based in Bengaluru, India. Puma Sports India Pvt Limited operates as a subsidiary of
Puma AG Rudolf Dassler Sport.

RECENT DEVELOPMENTS
Puma India has said that it’s Faridabad and Mokamehghat units are being taken over
by Fashion Shoe Private Ltd and BDCL Enterprises Pvt Ltd, respectively. The
company is also enabling the buy back provision in its Articles of association to
enable buy back of shares.
The assets and liabilities of both the units will be transferred to these companies and
shares will be offered in the agreed ratio to the existing shareholders of Puma India
Ltd on a record date, which will be fixed by the Calcutta High Court.
While retail sales have increased both in value and volume, wholesale sale have
declined due torestriction of supplies as a means to recover customers outstanding.
General recession and sluggish market conditions in the Company also have had a
direct impact on lower sales and profitability.
Resistance of consumers to price rises in popular volume products as well as
discounts to clear slow moving stocks and under utilization of production capacity
adversely affected the operational results. The lockout declared at the Peenya factory
on October 1, 2007 due to serious industrial relation problems and non-compliance
with the tripartite settlement has been withdrawn. The footwear manufactured in this

21
factory, which was shifted to the company‘s other factories and associated
manufacturers, will now be gradually produced within the factory. The
commencement of production from this factory will help in re-cooping the minimal
loss being suffered by the company from this lockout.

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 will create customer
loyalty and an insurmountable barrier to competition.

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.
22
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.

FUTURE PLAN
The management says that it is not averse to outsourcing if it worked out cheaper. It is
also open to the idea of importing shoes - mostly from China - if it works out cheaper.
Puma and Reebok Company have announced an agreement to foray into retailing
partnership for sale of Reebok and Rockport footwear in Puma outlets.
The partnership entails retailing a range of sports shoes for walking, running, tennis
and training for personal fitness and sports ranging between Rs 900- 2,500. An
attractive valuation compared to its peers is the main trigger for the scrip. Besides, the
company’s aggressive focus on retailing and revamping of business (a division into
shoes and apparels) is also helping sentiment for the scrip. Plans are afoot to start
selling apparel in India made by the joint venture North Star. There’s talk that the
company is planning on a voluntary retirement scheme (VRS) to cut costs.
97% of the company’s revenues are from the domestic market while the remainder is
from exports. Puma India is the biggest player in the Indian shoe market.

For the third quarter ended 30 September 2007, Puma India reduced its losses to Rs
5.68 crore (Rs 8.51 crore) on a 9.2% increase in net profit to Rs 154.27 crore (Rs
141.26 crore). Despite reducing its losses for the quarter, Puma India has, over the last
few quarters, been continuously recording weak performances as a result of an overall
slowdown in the Company due to lower consumer spending. Increasing domestic
competition, particularly from the unorganized sector, has also been eroding into the
company’s market share.

23
The company is finding it difficult to maintain its market share in a highly price-
sensitive Indian market, despite having strong brand recall.
Puma India’s major problems include its high cost of production and low emphasis on
marketing. The company may be able to address the first problem through
outsourcing products. Bata’s brand image has been restricted to that of a company that
emphasizes on utilitarian products more than trendy ones. Customers feel the
company is lacking in innovation. Hence, their preference has shifted to other local
brands.
Puma India has a large marketing network with over 1,500 showrooms, 27 wholesale
depots and eight retail distribution centers across the country. Besides, there is a
network of 300 exclusive wholesalers servicing 25,000 dealers all over the country.
However, in spite of this and the license to sell other brands like Puma, Hush Puppies
and Lotto.Puma has not been able to improve sales consistently.
The recent rise in sales during the third quarter ended September 2006 can be
attributed to the festive season. Recently, it also entered into a retailing tie-up for Lee
Cooper shoes.
Puma India has also been trying to focus on aggressive marketing of its product. The
company has been going through a period of transition for the past one year. With the
expansion of the retail Company in New Delhi and Mumbai, the company has
recently decided to shift its marketing operations to Delhi in order to provide value
shopping for its customers. However, the manufacturing activity and the registered
office will continue at Kolkata.
Puma India has plans to invest in sophisticated machinery to retain its niche place in
manufacturing. The company has put a fresh focus to its retail business. The company
has decided to cleanse its wholesale operation by building relationships with credit-
worthy buyers. It is to the company’s credit that it has lately overhauled its marketing
set-up into a four-tier retail structure that will be stocked with products matching the
area’s customer profile. A Puma outlet in an up market place will offer a distinctly
different range of footwear from another in the suburbs. At the top of the four-tier
structure will be international stores stocking brands like Puma and Reebok. Next will
be city stores, located in up market areas and catering to middle and highincome
groups. The company has identified the brands Power, North Star, Bubble gummers,
Marie Claire and Hush Puppies for the top end of the market. Third in line will be
family stores at commercial locations displaying basic and mid-range footwear. At the
24
bottom will be bazaar stores that will basically aim at driving volume sales at lower
price points.
The management of Puma India is taking major steps in terms of improving market
penetration, focus on stores configuration, distribution logistics, better industrial
relations and overhead rationalization.
Launching of new products always remained at the center stage of the company’s
operations. At the same time, with the opening up of the economy, more and more
goods will be imported from China. This may significantly affect Puma India’s
prospects unless it manages to wean away customers with a drastic cut in costs.
Alternatively, like other Indian manufacturers, even Puma may consider relocating its
manufacturing bases in China. However, it is not that easy a task to undertake.
Puma India, the 51% subsidiary of Toronto-based Puma Shoe Organization, remains
the biggest player in the Indian shoe market, though its share in footfalls has been
decreasing over the years. Now in a determined bid to straddle across all product and
price points, Puma India has decided to restructure its 1,300-outlet strong retail
business division along specific customer segments into Bazaar, Family, and City and
Flagship stores.
Puma India has decided to appoint brand managers for each product group in a
newfound aggression to tackle dwindling sales. Each of these managers assisted by a
dedicated team would be like a brand champion responsible for procurement,
production, advertisement, promotion and re-supply.
Puma India has roped in Ogilvy & Mother for devising its festive season advertising,
side-stepping JWT, its incumbent agency. The job involves developing special
communication directed towards the festival season shoppers. Puma India Ltd (BIL)
is India’s largest footwear company selling over 60 Mn pairs per year in India, USA,
UK, Europe, Middle East and Far East. BIL has a market share of 60% in leather
products and 70% in canvas shoes.

The footwear Company in India is highly fragmented and dominated by the

unorganized sector. The Company size is around Rs 75 Bn and is growing at around
10% annually. It competes with Indian players such as Liberty Shoes, Phoenix
International, Mirza Tanners, Tatas, Action Shoes and Lakhani Shoes and global
players like Adidas, Reebok and Puma. Accessories and garments contribute footwear

25
sales account for more than 96% of sales while the balance. The turnover break up is
as follows –
 Products Volume (%) Value (%)
 Rubber and Canvas 50: 30
 Leather 29 :57
 Plastic 21: 9

GROWTH DRIVERS

The company has a very comprehensive distribution network which comprises its
own and franchise stores. It has 1500 showrooms, 25 wholesale depots and 8
distribution centers.

POPULAR BRANDS

Focus on middle-class and upper class Puma will continue to focus on middle and
upper class customers. It is introducing ‘budget stores’ which will help customers to
identify with the brand. It is also increasing focus on rural thrust for volume growth in
the low-priced footwear segment.

RISK AND CONCERN

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.

26
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 imports and competition from local footwear companies.
Long term investors with a two-year investment horizon can accumulate the stock at
current levels.

27
FINANCIAL HIGHLIGHTS

(In Rs Million) 200012 (12) 199912 (12) 199812

(12) Q1200103
Q1200003
Sales 7,315.70 7,103.90 6,353.20 1590.7 1600.9
% Growth 2.98 11.82 (0.6)
Net Profit 304.60 242.60 166.30 (30.2) 39.6
% Growth 25.56 45.88 (176)
EPS(Rs) 5.90 4.70 3.20 3.08
% Growth 25.53 46.88
Ratios 200012 (12) 199912 (12) 199812 (12)
Q300009 Q399909
OPM(%) 9.77 9.08 7.16 1.09 6.9
NPM(%) 4.16 3.42 2.62 2.5
ROE(%) 8.95 7.44 5.31
Puma understated 9 month losses -
Brief Financials (in Rs. Mn.)Detailed Quarterly
Period ending (months)30-Sep-2007 (9)31-Dec-
2006
(12)31-Dec-2006 (12)
Net sales 4980.206461.177172.91
Other Income42.1063.6165.21

28
 Total Income5022.306524.777238.12
Cost of goods sold4974.706471.797051.76
OPBDIT47.6052.98186.36
PAT-117.20-74.1039.80
Gross Block-2191.072062.26
Equity capital-514.22514.22
EPS (Rs.)--1.440.77
DPS (Rs.)-0.000.75
BV (Rs.)-37.2738.71
P/E range (x)-0.0 - 0.00.0 - 0.0
Debt / Equity (x)-0.320.26
Operating margin (% of OI) 0.90.82.6
Net margin (% of OI)-2.3-1.10.5
As on 30 June 2007, the public, institutions and
foreign bodies held
31.23%,13.91% and 0.16% stake in the company, respectively

LITERATURE REVIEW

The study of consumer behavior has evolved since the Information Processing Model
(Bettman, 1979) assumed that the individual is logical in his/her buying process. This
model was criticized because it failed to treat different consumption phenomena
motivated by symbolic meanings (Holbrook and Hirschman, 1982). Individuals are
not always looking for efficiency and economy, but also for distraction, aesthetic,
expression, etc. (Boyd and Levy, 1963). Calling for a broadening of theoretical
frameworks of consumer behavior, many authors pleaded in favor of the study of all
consumption forms (Holbrook, 1986), being inspired by European semi logy and
American semiotic (Levy, 1959, 1963, 1981; Hirschman, 1980; Kehret-Ward,

29
Johnson and Louie, 1985; Mick, 1986; Holbrook, 1986; O’Shaughnessy and
Holbrook, 1988; Nöth, 1988; Stern, 1988; Grafton-Small and Linstead, 1989).
These are the study of signs, meanings and production of symbols. Fantasy, emotion
and pleasant aspects of consumption were then tackled from an experiential point of
view. The Experiential View is a phenomenological perspective that perceives
consumption as a primary state of consciousness having a variety of symbolic
meanings, responses and hedonist criteria (Holbrook and Hirschman, 1982;
Olshavsky and Granbois, 1979). The basis of the traditional Information Processing
Model is the optimization of the utility of a product under the basis of a utilitarian
evaluation of its tangible characteristics. Nevertheless, it neglects emotional aspects.

On the other hand, the Experiential View leaves out different factors such as:-
economic conditions, expectations, some elements of the marketing mix (price,
distribution), perceived risk and conflicts, but mostly the social influence of the
consumers’ reference groups (Holbrook and Hirschman, 1982; Business Central
Europe, 1994) which is the aim of the Symbolic Interactionism Perspective.
Acquisition, possession and
consumption are activities taking place in a process of impressions creation or identity
management which is, according to Belk (1978), an interactive process concerning
both the image of goods consumed and that of the individuals consuming them. The
Symbolic Interactionism Perspective deals with the relationship between consumers
and the products they consume, and suggests that a significant proportion of
consumption behaviors consist of social behaviors, and vice versa (Solomon, 1983).
This leads us to consider the importance of socialization processes (family, reference
groups) through which individuals learn the meanings of symbols and those of
consumption. With the aforementioned meanings being negotiated and built through
interactions with others, consumption is not only an individual activity, but also a
social process of goods definition (Gallant and Kleinman, 1983).
Since individuals are often motivated to acquire products according to what they
mean to them and to members of their social reference groups (Leigh and Gabel,
1992), their behavior is subject to the pressures of cultural norms and the expectations
of socialization institutions rules such as those coming from family and other
reference groups (Faber, O’Guinn and McCarthy, 1987.

30
Thus, Symbolic Interactionism Perspective considers the human spirit as
fundamentally social, and dependent on shared symbols. The symbols being generated
at a global level (Geertz, 1973; Solomon, 1983; McCracken, 1986, 1988; Leigh and
Gabel, 1992), the Symbolic Interactionism Perspective accepts as precept the fact that
society and its culture precede every individual action, and that a cultural consensus
results from interactions, communication, and negotiation between social actors
(Charon, 1989).
If, at a conceptual level, the consumption good becomes an instrument of
communication, at an operational level, image variables may be regarded as the
intangible attributes of the product that carry cultural and social meanings. According
to Erickson, Johansson and Chao (1984), an image variable is defined as “some aspect
of the product that is distinct from its physical characteristics but that is nevertheless
identified with the product”. The image variables emerge from four cognitive
representations individuals have of their environment: the symbolism of advertising,
the celebrity endorsement, the brand, and the country of origin of the product.
The made-in is considered by Dichter (1962) as the fifth element of the marketing
mix, and is defined as the country where are located the corporate headquarters of the
organization doing the marketing of the product or the brand (Johansson, Douglas and
Nonaka, 1985). The country of origin carries a rhetoric that influences consumers’
preconceptions towards the products of a country.
Its meaning can be conceived as an indication serving as a basis of evaluation (Bilkey
and Nes, 1982), when one considers a product as a bundle of information.
The images of a foreign country that are formed by consumers are made of cognitive,
affective and behavioral components. The first one represents the perceived
characteristics of the country. The second one concerns the appreciation or not of
those characteristics, and the third one corresponds to the actions about the country
that the consumer feels are appropriate.
A tendency to evaluate positively the local production compared to imported
production, and biases in favor of industrialized countries have been found in
previous studies (Bilkey and Nes, 1982; Cordell, 1992). This does not mean the
consumer will not buy the product, but rather that he is not inclined to do so
(Schooler, 1971). “When entering foreign markets, sellers often face quotas, tariffs,
and nontariff barriers. In addition, they may face an intangible barrier in the form of
consumer bias on the basis of product origin” (Schooler, 1971).
31
The informational value of the country of origin was also found to vary according to
the level of involvement of the consumer in purchasing the product and the presence
of other cues such as brand name, guarantee and price (Ahmed and d’Astous, 1993).
In a recently published metaanalysis of country-of-origin effects, Peterson and
Jolibert (1995) conclude that the average effect size is lower (0.19) for purchase
intention, higher (0.30) for quality/reliability perceptions and context dependent.
More specifically, they found that the characteristics of the study (research design,
type of respondents, study cues, sample size, stimulus context etc.) influence the
relative effect of country of origin to a lesser degree for quality/reliability perceptions
than for purchase intention the type of respondent.

Stanford GSB marketing professor Itamar Simonson and Ran Kivetz, an assistant
professor at Columbia University, asked a group of 195 Columbia students to do; eat
a lot of sushi.Participants were offered a "frequent diner" program that would reward
them for their patronage at various university dining locations and given a card that
would track their purchases. They were randomly assigned to one of two groups those
in the "low" requirement group were told they would have to purchase 12 sandwiches
to get two free movie tickets, whereas those in the "high" requirement group were told
they would have to purchase 12 sandwiches and 12 orders of sushi to get two free
movie tickets. So, the second group had to do much more to receive the same reward.
Kivetz and Simonson also asked participants how much they liked sushi relative to
the typical student. The result? Students who liked sushi were much more likely to
join the "frequent diner" program that required them to purchase both 12 sandwiches
and 12 orders of sushi. "It shows a common mistake that consumers make & if they
see an offer that seems to fit them better than other consumers, for example, a
program that requires sushi-lovers to eat sushi that fit completely colors their
assessment of how attractive the offer is," Simonson says. "As a result, by creating
what appears like personal fit, marketers can attract consumers to frequency programs
and many other promotional offers." Kivetz and Simonson replicated these findings
regarding influences on participation in frequency, or loyalty, programs in studies
with travelers interviewed at domestic airports.

The theme that pervades Simonson's work is that customers may not know what they
want and second-guessing them can be expensive. In his words, “The benefits and
32
costs of fitting individual customer preference are more complex and less
deterministic than has been assumed." That's because, Simonson says, "customer
preferences are often ill-defined and susceptible to various influences, and in many
cases, customers have poor insight into their preferences."
In another recent paper, 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 2007 movie Minority Report, Tom Cruise's character Anderson runs
through a shopping mall past talking billboards that recognize him by name and urge
him to buy products he has expressed 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 longheld assumption that individual
marketing will supplant targeted marketing is "not so fast." That's because consumers
are very difficult to figure out, science fiction and technology notwithstanding.
"Further more, even when customers have well defined preferences and receive offers
that fit those preferences.

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," he 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
33
customer to design one-of-a-kind shoes. Simonson argues that Custom Foot didn't
take into account that some customers were put off by the individualized attention and
felt obligated to buy the shoes because the store went to so much trouble.
They often didn't come back. Indeed, an Internet search produces no Website.
Simonson, who has received many prestigious awards for his research on consumer
behavior and marketing, teaches MBA and Ph.D. marketing and consumer decision-
making courses. The loyalty program article is slated for publication in the Journal of
Marketing Research this year. Online customization gives consumers the opportunity
to select a product.
Many companies are looking at online customization as the future of online business
Janis Crow, Kansas State University marketing instructor, researched how people
make choices on the Internet. She recently studied consumers in an online
environment and their ability to customize several products - pizza, shoes, and
electronic devices.
Crow said that her study posed two questions for respondents: first, how difficult is it
to customize a product, and secondly, how likely is the person to purchase the product
he or she has customized? All participants in the study chose to customize products.
In terms of customers’ likelihood to purchase, a greater number of customers made
purchase decisions when there are more options to choose, she said. However, it was
slightly more difficult when more features were offered.
She created a website where people could customize products to their individual
preferences and needs.
Crow selected three generic products: pizza, shoes, and a Personal Digital Assistant
(PDA). Thirty-one college students took part in the study.
"Students could customize the three products, and I provided a drop-down box on the
site with attributes to choose from," she explained. Consumers could click on a drop-
down box to customize a product they would want to purchase, she said. She found
that more people relied on the default choices rather than selecting other choices that
were offered. She said, some research suggests that many people do not want to put a
lot of effort into purchase decisions. "A lot of times, people may not have preferences
already in mind," she said. When consumers have the chance to create preferences.

34
In the future, Crow says she will be studying strategies that consumers go through
during purchase decisions. "I will be studying decision processes to develop computer
aids that could help the consumer reach their purchase decision," she said.
Although her current project involves analyzing the consumer behavior of college
students in an online environment, in future projects she plans to analyze other
demographic groups.” Customization will be a key business opportunity in the future
for businesses online or in more typical shopping environments," Crow said. She
hopes her research will help consumers in making purchase decisions and help
businesses determine products to offer and how to offer them.
Hong Kong companies, including leather consumer goods suppliers, have shown a
growing interest in tapping the mainland consumer market after China's accession to
the World Trade Organization and gradual opening of its domestic market. For Hong
Kong companies targeting this vast market, a good understanding of the behavior of
mainland consumers is necessary in order to formulate an effective and suitable
market strategy.
In view of this, the HKTDC conducted a survey study in four major mainland cities in
February 2007. The study was composed of two interlocking surveys.
The first survey (survey on shoppers) successfully interviewed a total of 1,000
shoppers of leather consumer goods in four major cities, namely Beijing (BJ),
Chengdu (CD), Guangzhou (GZ) and Shanghai (SH). The second survey (survey on
retailers) interviewed managers/officers-in-charge of major department stores in these
four cities.

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.
35
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 CRITERI
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)

36
4PS OF PUMA
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

37
 SWOT ANALYSIS
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.

38
 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

39
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.

CHAPTER-5

DATA ANALYSIS

40
 DATA ANALYSIS
1.BRAND POSITIONING OF PUMA SHOES ..?

Particular Respondent
Puma 32
Relaxo 25
Nike 43

41
 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

42
 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.

43
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.

44
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.

45
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?
46
 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

47
 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%

48
  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?

49
  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.

50
 CHAPTER-6

CONCLUSION AND SUGGERSTIONS

CONCLUSION

51
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.

52
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.

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 product
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 somewhat 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 T-shirt

for the feet, these shoes can take the shape and size of the wearer’s feet.

53
 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 show that 89%
people are known about the Puma shoes & 11% people are not know about the name
of Puma shoes.

We show 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
some extent and least extent.

We show that 3% is poor, 26% is fair, 22% is average, 44% is good & 5% is excellent
quality of shoes.

54
 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

55
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
56
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.
Clearly marketers need to test for optimal frequency and solicit customer preferences.
Email Drives Multi-Channel Purchases But at the Expense of Offline Retail
Permission-based emails clearly drives purchases. Sixty-seven percent of respondents
received an email offer from a Consumers take action on emails corresponding to
product need Relevant content, information specified by user increases likeliness to
respond 2007 Consumer Email Study, Cataloger or online merchant that resulted in a
purchase. Top purchasing categories were: apparel/shoes at 83.4%making a purchase,
computer software/h ardware at 81.4%, gifts/flower sat 77.6%, travel at 77.2%,
electronics at77.1% and food at 71.7%. The only under performing category was
financial products and services at 41.5%, which could relate to the high consideration
necessary for these products, the incidence of spam in this category or lack of interest
due to the economy.
The channel purchased in as a result of permissionbased email is highly specific to the
category of product: travel had the highest incidence of online purchase at70% with
only 13% purchasing by catalog/phone/mail, while apparel/shoes had a relatively high
incidence of online purchase, 58% with 41% purchasing via offline retail and 23% via
catalog, and over the counter and prescription drugs had equal levels of online and
retail purchase at 32%.Email marketing promotes use of the online channel. In
comparing the typical channel purchase behavior of respondents in a variety of
categories to where they were most likely to purchase after receiving permission
based email.

The results show that respondents are more likely than usual to use the online channel
for purchasing after receiving a permission based email; this is true in all categories
except financial services. In apparel/shoes, where 31% would typically buy online, a
permission-based email resulted in an increase of online channel usage to 58%,
gifts/flowers saw online channel lift from 45%to 61%, and electronics from 45% to
60%.

For consumers who receive email offers from retailers in the apparel/shoes category,
email marketing does increase use of the catalog channel. Of those who receive
57
emails from catalogers, 16% reported that they typically bought via catalogs. This
number rose to 23% saying they had purchased though a catalog after receiving
permission based email. This example illustrates the direct connection between
catalog drops with effectively sequenced email marketing used as a purchase driver.
The Latent Impact of Email Marketing Most action taken in response to email
marketing does not result immediately from the click. While 27% clicked through and
made a purchase during that same
online session, an even greater number, 33.6%, clicked through to find out more
information, then purchased online at a later date. An additional 12.2% clicked
through to find more information and then purchase offline through catalog or retail.
Permission-based offers generate sales. As was demonstrated by the great interesting
discounts and special offers, email usage for composing is on the rise and as offline
thus latent impact as well. Seventy two percent of respondents reported having used
coupons or offer codes (an increase of 57% over the 46%who reported using them in
2007).

Fifty-eight percent of respondents used the coupon or offer code at an offline store.
All of this latent activity resulting from email marketing demands that marketers
increase their own cross channel sophistication in data capture: unless they’re
measuring both online and offline purchase activity, immediate and latent impact,
they are not capturing the full effect of their email performance.
Consumers Become More Selective in their Practices, Increasingly Use Tools to Limit
SPAME mail volume as reported by consumers was up but not markedly so (264
emails per week vs. 254 in 2007). Spam remained the number-one concern about their
email box, noted by 89% of respondents (consistent with last year).The percent of
email received that was Spam 56% was also consistent with2007. What have changed
are their opening practices: Only 27% opened 90% of their permission based email,
while about a third (30%) did so in 2007. In regards to what they are most likely to do
with Spam, an increasing number are deleting without reading (65% as compared
to60% in 2007) and only 4% are reading to determine whether it is of interest (as
compared to 5% in 2007 and 18% in2006). The likeliness of unsubscribe has declined
markedly (from 33% in2006 to 24% in 2007).
Perhaps consumers have gotten fed up or decided the activity was futile. When asked
what specifically they were doing to eliminate or limit spam, a vocal minority, 36.1%
58
reported using a Spam function of their email program, 15.9%downloaded spam
filtering software and13.7% created a secondary email address or making online
purchases.

A key finding of the 2005 study had been the usage of on average 2.6 email addresses
per respondent. This year, respondents have clearly become tired of the complexity of
managing those accounts: this year, only 34% reported having more than two
addresses while44% reported having that many in 2007. Respondents seem to be
consolidating, with an average number of accounts at2.3 in 2007.Latent impact:
nearly 46% purchase online or offline some time after clicking through an email With
more than one in-box, what do consumers consider the primary address? Perhaps in
relation to the amount of job instability and the desire of having a more permanent
address, the home address was considered the primary one. Of those with multiple
addresses, 74% had a specific email address that they used for online purchasing, with
either the home address (cited by 48.3%) and a free address (cited by 39.7%) as this
purchasing address. Retail oriented email marketers clearly need to make special
efforts at improving deliverability among the major home ISPs and free email
providers as this clearly will impact overall performance. Mars & Venus: Men Really
Are Different from Women in Respect to Email Marketing Two very specific areas
stand out in how men vs. women react to email marketing: men have a much broader
definition of Spam, while women are much more likely to be active purchasers as a
result of permission-based email.

More men than women consider spam to fall into these very broad definitions: 65%
cited an email from a company that I have done business with but comes too often
while only 56% of women did so, 61% of men cited an email that may have been
permission based but comes too frequently while only 55% of women did so and 36%
cited any email that tries to sell me a product or service while 32% of women did so.
Correspondingly, women are more sensitive to emails of offensive subject matter
(94% women vs. 91% men).
Active purchasers, those who purchased in multiple product categories or from
various types of companies (multi-channel shoppers) after receiving an email, are
more likely to be women than men. Aloof these data points add up to online behavior
that mirrors offline
59
Women remain the primary household purchasers, 2007 Consumer Email Study
Respondents with multiple accounts likely to use a free one for online purchases
Women more likely to be active purchasers, multi-channel purchasers.
The fourth of Double-Click annual consumer email studies points to an increasing
sophistication in consumer usage of email functionality and a corresponding
complexity of purchasing behavior. The Spam crisis continues to affect consumer
behavior online but does not necessarily cloud consumer receptiveness to legitimate
marketers: an overwhelming majority of online consumers receive offers by email and
have made a purchase online or offline as a result. Consumers are using available
tools to limit spam and are employing separate email accounts for purchasing, all in
attempts to increase control and improve their email experience.

Objectives/Methodology Double-Click, working with Beyond Interactive and the

NFO//net source panel of 900,000 US consumers, polled 1,000consumers via email
from July 30 - August5, 2007. All respondents recruited use email/internet 1+ times
per week, which reflects the usage of the larger online population (94% of the 18+
online population according to Nielsen, 2007).There was an equal segmentation of
men and women and the average age was 42.7.This is the fourth of an annual series of
consumer research studies and trending information was derived using the data from
previous years. The sample mirrored previous studies and is reflective of the online
population as a whole. Key Findings The majority of consumers receive some kind of
marketing email with special offers from retailers, online merchants and catalogers
most common Two to one consumers prefer to be contacted by their favorite retailer
regarding new products, services or promotions via email rather than direct mail.
Sender recognition most impacts operates, while content relevance increases
likeliness to purchase Frequency preferences, or how often respondents prefer to
receive emails of ascertain category, are very
specific to the category of email but vary greatly from one Consumers prefer to be
contacted by their favorite retailer via email.

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CHAPTER-7

ANNEXURE

61
 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

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  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

63