The History And Background Of Puma Marketing Essay

The History And Background Of Puma Marketing Essay Puma is a German company that established in 1948 by Rudolf Dassler. Puma produces sport categories such as sport shoes and sport clothing for different types of sports like football and golf. Puma is considered as the third successful brand at this field; the other two companies are Nike and Adidas (Puma, n.d.). The most commonly made Puma products are the athletic Puma shoes and that due to the fact that the first pumas products were shoes. For more details, Puma first football sneaker was produced in 1948 and it was worn in the first football match after the war by the Herbert Burdenski; the scorer who scored the first goal after the war (Puma,n.d.). As well as that, 48% of Puma profits from footwear which makes it the most selling Puma product (Puma, 2013). Puma shoes contain different types of sneakers for different types of sports such as running shoes, football shoes and cricket shoes. Varieties: Puma shoes have a unique design, using the technology; the shoes moulds are injected with the light foam materials by L.I.F.T (Lite Injected Foam Technology). As a result, this way decreases the weight of the shoes which makes the shoes very light and speedy. Moreover, it saves the materials of the shoes/cheaper to make; because with this process there is no need for -sutures and adhesions- process (Nely, 2010). As well as that, Puma shoes designed in a way that allows the feet to breathe some fresh air which makes the shoes smooth and comfortable for the wearer. In addition, the Puma shoes made to prevent friction and sliding so it protects the person who wears them from any accidence (Nely, 2010). Colours: There are the main colours for each type of shoes and also the customers can be customized by the customer. For example, the customer can change the colour of more than 10 parts of the shoe to match the costumers taste; from the outsole to the Puma logo (see appendix 1). This gives the customer who liked the design of the shoes but not its colours the ability to change it to suit his taste and his outfit. Logo: Moreover, the Puma logo stands for a jumping Puma; a type of cats that can leap with a one bounce to twenty feet high. The puma logo is putted on each of Pumas products and its shoes (Mokokoma, 2009). This logo expresses the strength, the speed and the power that Puma have in its shoes. Slogan: In addition, the Puma slogan is the nature of performance which means that every action is real, every attitude is innate and all of the player movements are natural. Puma uses this slogan with most of its shoes with changing the word -performance-. For example, it used slogan the nature of the Speed junkie for evoSPEED 1 FG shoes which gives an idea to the costumers about the main feature of this shoes (Puma, 2012). Personality: Puma personality is all about agility, speed, strength and creative. Its personality can be seen and known just by looking at the pictures they use on Puma website; athletics wearing Puma shoes and they are running agility and flexibility and their face features express the strength they have (see appendix 2). Promotion:- Social media: Puma has many social media accounts; on Facebook . Twitter, Youtube, Tumbler and Instagram as @ Puma which they can be found so easily. On their Facebook Page, they have more than 9 million people who liked their page! They also publish news constantly and include pictures with the resent news; so they avoid make the news boring and hard to read (Puma Facebook, 2013). Moreover, on Youtube, they have their own and official channel since 2005. On Youtube, they promote their selves by uploading videos for their new products or their events and their videos are about 3 minutes so they keep it interesting and not tedious (Puma Youtube,2013). Furthermore, on Instagram account, they post interesting and colourful pictures for their products and they attract their customers attention to their new product by distributing part of its pictures. For example, they post a picture of their new shoes that called Puma pigeon shoes and it was hidden between pigeons so only part of it can be seen (see appendix 3) (Puma Instagram,2013). Sponsorships: Puma sponsors of many sport teams, players, athletes and even coaches from different countries. It sponsors of many national football teams such as Italy team, Austria team and Switzerland team. What is more, Italy national team won the FIFA World Cup in 2006 and the players were wearing blue Puma shoes (Puma, 2006). Puma also sponsors of running athletics like Usain Bolt and Moses Kipsiro. Usain Bolt is the fastest man in this world (Puma, n.d.). In addition, it sponsors of golfers such as Lexi Thompson who won the Navistar LPGA Classic in 2011 and turned from Novice player to the youngest professional player at golf (Puma, 2011). Events: Puma holds events for different sports in many places in the world to promote their products. For instance, Puma held a campaign SOoo Fast in 2005 which demonstrated the fact that Puma has spirit of hilarity and adventure. The event was about people wearing shoes of Puma SOoo Fast and doing different activates like dancing. The aim of SOoo Fast campaign was to show the physical exertion and mental effort mixed with fun (Modi, 2010). As well as that, there is a calendar for the upcoming events on Puma website to inform people about their events, they update it every month and this month they have 9 upcoming events (see appendix 4). Advertising: Puma advertisements are so colourful, creative and interesting. They use different media to advertise about their products such as TV, social media, banners and posters. Advertising on social media are always attractive and are spoken directly to the customers minds by using the words you, your, we, us and after every shoes advertisement they say share your shoe pictures and tag our account (Puma Twitter, 2013). This way is very useful to the social media users who want to share everything they have and take or buy everything they dont have to share it with others. Moreover, the banners they use are so creative and innovative; sometimes they use animal or background that matches the shoes colours and sometimes they create attractive designs that show the strength of the shoe (see appendix 5). Price:- Cost and discounts: There are varying prices for Puma shoes. According to Puma store on their website the highest cost for a pair of shoes is 220$ -AMP Cell Fusion Golf Shoes- and the lowest one is 55$ -PowerCat 4 IT Indoor Trainers- so they are available for everyones financial condition. Although, there is a discount -more than 20$- on some shoes such as Faas 300 Running Shoes; it was 75$ and now it is 45$. Shipping: Puma store on the official website provides free shipping to its customers who buy a product over 85$ and this is available every day to every customer. Pricing comparison: Compared to Puma competitors prices -Nike and Adidas- Puma has lower prices than them. Puma has reasonable prices which makes it suitable for everyone. Place: Company headquarters: The main Puma headquarter is in Germany at Herzogenaurach city and the other three headquarters are in Boston-USA, London-UK and Hong Kong-China (graphisoft, n.d.). On the puma website they put the address details for all of their headquarters. Online: Puma has official website on World Wide Web -Puma.com-. The official website establishes everything about Puma brand. The official also gives the customer the ability to find the Puma stores on his country and give him the location of the stores by providing a map of the store. Marketing description:- Inform: Puma keeps informing their costumers about every product that released. Moreover, Puma always gives an idea for its customers about the new shoes by using the suitable media to inform the target audience of the new shoes. They always want their costumers to know every single detail about their new sneakers like where it is made or when it is released. For instance, puma informed their costumers on Instagram, twitter and the Puma official website about the new Puma Mobium Elite shoes and they give lots of details about it. They said where it is from -Germany-, who designed it Ray Horachek -, where the costumer can find them -in every Puma stores- and when it is available -6/2/2013-. They also post a picture about how the Mobium shoes get created (see appendix 6) (Puma Instagram, 2013). Remind: Puma also keeps reminding its costumer about the new shoes to stay in their minds and never forget about it. Moreover, to remind the costumer Puma keeps repeating the new products advertisings in different social media sites like Facebook, Instagram and Twitter For example, when it comes to Mobium Elite shoes, Puma did not stop publishing about it on Instagram, Twitter, Facebook and Youtube. They post different pictures of it and tweet about it on Twitter for more than 2 months since it released to remind. Persuade: Puma uses some ways to convince its costumer to buy the shoes. They speak directly to the costumers minds to make them feel that Puma shoes are their shoes and they need to get them. In addition, they show them famous sport players wearing Puma shoes which make the costumer feels that those Puma shoes are not normal because even the popular players wear them. For instance, when they advertised about Mobium Elite shoe, Puma on twitter said Be first to experience Adaptive Running , Prepare for the future of running and They were born to keep moving; those statements captured the customers hearts which makes some of them said Running will never be the same and The Mobium definitely makes me run Faster!. Furthermore, they post a picture of Sabrina Mockenhaupt wearing Mobium Elite shoe; she is a famous long-distance runner from Germany. On twitter they also announced about a contest for the most innovative shoe; everyone who shares a picture of him/her running with Mobium Elite shoe will enter the competition (Puma Running Twitter, 2013). Companys Branding Message:- Puma brand want to deliver its message to its customers minds that they are not a company which produces sport categories just for sports without any other purpose. However, Puma is a company which mixes the sport and the lifestyle together and makes them one brand that called Sportlifestyle. For more clarification, Puma mixes its performance that is all about the strength, agility and technical innovations with the lifestyle that is influences by cultural relevance, leadership style of urban and thrilling design innovation. Puma is trying to give the players from Sportlifestyle brand the joy and it is trying to make them enjoy every joyful moment in every game. Moreover, Puma says from its advertisements that we are making the customer enjoys the sport in his daily life without forgetting the fashion and style influences (Koch, 2012). Everyone who sees the pictures that Puma posts on Instagram can notice its brand message. They upload on their Instagram account pictures of normal people wearing Puma sneakers and doing their daily activities in front of scenes from everyday life. Furthermore, they post pictures which show that Puma shoes designed in certain ways to give their customers the fashion and style. As well as that, they use the PUMAlife, PUMAstyle and Sportlifestyle hash tags with most of their Instagram photos to share them with everyone (see appendix 7). Puma also says it is message directly in its twitter bio PUMA successfully fuses the creative influences from the world of sport, lifestyle fashion. All of the above proves that Puma message is to let everyone feels and lives the joy moments after Puma mixed the sport with the lifestyle. Two Different Advertisements:- First Advertisement: The first advertisement was displayed on a Japanese TV Spot and it is about Puma PowerCat 1.12 shoes (shabba08, 2012). This advertisement shows the journey of a football between PowerCat 1.12 shoes wearers in Japan. Type: TV advertisement URL: http://www.youtube.com/watch?feature=endscreenv=ZPY5yNVtBD8NR=1 Target audience: The target audience of this advertisement is Japanese from both gender girls and boys but mostly for boys -there are six boys who hit the ball and one girl-. The target audiences age is between 15 and 35 so they are all youth -the video shows different ages starting from the footballer who is 29 years old at the begging years to the little boy at the end who looks 15 years old-. Furthermore, when it comes to the financial background of the target audience it is not specific type because as the advertisement shows that the PowerCat 1.12 wearers are from different social positions -some of them dressed nicely football outfits and the others were farmer and villager-. Moreover, as the video shows that the most PowerCat 1.12 wearers are the people who are interesting in football and playing it -PowerCat 1.12 designed as football boots (Elliot, 2011)-. Advantages: Using the captain of the Japanese national team Makoto Hasebe in this advertisement is one of its advantages since the nationality of the target audience is Japanese. Therefore, this is a good way to attract the Japanese people who are interesting in playing football because Makoto Hasebe is one of the most famous football players in Japan. Showing the power and the strength of the PowerCat 1.12 shoes in this advertisement is also another advantage. It shows that every foot wears PowerCat 1.12 shoes get the power to run and jump after the ball no matter where is the player; in stadium, street or even a farm and no matter how old the player 15 or 30. It also shows the strength on the player face when he is hitting the ball with PowerCat 1.12 shoes and the joy and happiness after hitting the ball. Disadvantages: Using only one girl in this advertisement is not enough to show that this product is also for girls. If someone watch it for one time only, he will notice and remember the six boys but he will not remember the girl. To deliver the message that this product for both genders, there should be more girls who are wearing PowerCat 1.12 shoes; regardless of the fact that she was not wearing PowerCat 1.12 shoes but got the power to hit the ball from the guy who was next to her and he was handling PowerCat 1.12 shoes on his shoulder. Using this kind of idea for football commercials -passing the football around the world and then back to the playground- has became so familiar, commonplace and hackneyed. This kind of advertisement has being used a lot, so now it is not that much interesting to the viewers because the customers want new ideas to attract them, to steal their hearts and to persuade them to buy the product. Second Advertisement: The second advertisement is contributed on Puma official website online and it is about Puma evoSPEED shoes (Puma, 2012). This advertisement shows the speed of those shoes and how can anyone become fast just by wearing them. Type: Online video URL: http://www.puma.com/evospeed Target audience: The target audience of this advertisement are men from everywhere in the world who are youth and about 24 to 35 years old. In addition, this advertisement is directed to the sport players and the people who are doing those activities; the sports are running, football, cricket, golf and motor racing. This advertisement shows the players who are popular in playing those sports and they are from different countries, so this proves what I said before. Moreover, it is for the people who want the speed and want to be fast like Usain Bolt the fastest person on the earth. Advantages: Using the fastest man in the world Usain Bolt in this advertisement to present the evoSPEED shoes is a really useful way to attract the people who want to be faster and to persuade them to buy the those shoes. As well as that, it gives the customer an idea about from where Bolt gets his speed and gives them an opportunity to be like Bolt and get the speed of Bolt. Using a treadmill for the sport players to race on it and also the speed of this treadmill is the speed of evoSPEED is a great idea to show the rated speed that evoSPEED shoes have. They show that everyone could not handle the speed of treadmill which is the evoSPEED but only the one who was wearing them was able to keep up with the treadmills speed. This was an amazing way to inform the customers about the features of evoSPEED shoes. Disadvantages: In the advertisement they make the golfer Rickie Fowler faster than the footballer Sergio Agà ¼ero and the cricketer Yuvraj Singh. This is not true in the real life because Sergio Agà ¼ero is faster than him and how can a golfer be faster than footballer. As a result, this kills the credibility of a good concept for a commercial. Using F1 driver Fernando Alonso for such an advertisement about how to speed up your feet is useless because F1 drivers do not race using their feet, they race using cars. Therefore, the customers will not feel the need to have evoSPEED shoes for a motor race cause they only need to speed up their cars to win. Rather than using F1 driver who only need a fast car, they could use a basketball player who really needs quick feet. S.W.O.T Analysis:- Strengths: Puma is a well-none company and it is recognized in the worldwide at the shoes field because it has been established since 1948 and it started producing shoes since that time. Furthermore, for now most of Puma profits come from selling footwear -48.8 %-. As well as that, Puma has about 80 stores around the world in different countries that sell their shoes (Puma, 2013). Puma is sponsoring of many famous players and teams in various sports and the most important thing that they are sponsored of the fastest man on the earth Usain Bolt which can make Puma the best in the running shoes field compared with the competitors (Sammy, n.d.). Puma has great, different, innovative, unique and modern shoes designs and some of the Puma shoes designers are taking the idea of the shoes from some animals and getting inspired by them like what Raymond Horaceks idea for the Mobium shoes; he get inspired by cats to create those shoes (Puma Youtube,2013). That can be a good point for puma to be different that its competitors Nike and Adidas. Puma has an excellent management and good employees, staff and teams who manage the work and create the shoes. As what Owen Shifflett (Puma designer) said that Puma teams work together, they face the challenges together and they are friendly which make them try to create the best shoes every time (Shifflett, 2011) Weaknesses: Compared to the top Pumas competitors -Nike and Adidas- Puma has the lowest market shares in the athletic footwear which it is 7% while 31% for Nike and 16% for Adidas (see appendix 8) which creates a negative effect in the costumers minds. Puma focuses on some sports like football, running and golf and produces the most innovative shoes for them while neglect some other important sport such as basketball and swimming. While Nike and Adidas produce shoes for every sport even basketball since it is an important sport. This is can be knowing just by looking at the Puma official website cause there is no basketball section. Compared to the competitors Nike and Adidas, Puma has less financial strength than them and they get less money from its sales than them. In 2012, Puma got 3.27 million euro from selling its products while Adidas got 14.88 million euro (see appendix 9). Opportunities: Big events like Olympic and Boston marathon can be a great opportunity to raise their sales since Puma is really good at producing running shoes. Since the Pumas competitors are huge companies which they only use professional designers, Puma can take a step forward and cooperate with young designers to mentor them and to bring out their creativity so they will have professional designers in the future. Puma is starting to use technology to produce light width shoes such as the Puma tennis shoes which have been injected with light foam materials (apsense, 2011). Puma can focus more on lifestyle and fashion to become the first Sportlifestyle brand in the world to reach one of its goals (Puma, 2012). To became also different than its competitors. Puma can increase the health awareness campaigns to give the brand a good image. For example, make a new campaign like the campaign that held in 2012 which called Puma Project Pink to fight against breast cancer and to play football no matter what (Puma YouTube, 2012). Threats: Designs and ideas of Puma shoes are being copied and imitated by the competitive companies which sometimes they make shoes better than Puma shoes. Since the competitors are better than Puma, they get the advantage of being the best in producing shoes so that Puma lose its customers. Some of Pumas Asian competitors copy the Puma shoes designs and produce the same style of shoes with the Puma logo on them in cheaper prices. Therefore, Puma lose their customers who are looking for lower prices (shoesobsessions, 2009). There are many competitors outside that are competing Puma and trying to be better than it in the footwears field (hoovers, n.d.). As a result, it makes it hard to Puma to stay on the top because of the high competition. Nowadays, it needs a lot of money to sponsor an excellent sport players; millions of dollars. Therefore, Puma cannot make much sponsorship of the top good players since it has low financial strength so they cannot use many good players to advertise about their shoes. Appendix:- Appendix 1: Appendix 2: Untitled-1.gif Appendix 3: Appendix 4:301c80dea44e11e2b51f22000a9f4da7_7.jpg events.png Appendix 5: Appendix 6: creative-shoes.gif3b7b5674707f11e2b56022000a9f1354_7.jpg Appendix 7: Appendix 8:350px-Footwear_market_shares.pnghashtag.jpg Appendix 9: