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Puma AG Rudolf Dassler Sport is a major German multinational company and is known for Manufacturing
high-end athletic shoes, lifestyle footwear and other sportswear. It was formed in 1924 by Rudolf Dassler,
who was based in Germany. The company is known for its football shoes and since 2007 Puma AG has
been part of the French luxury group PPR.


  

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Rudolph Dassler Sports manufactures shoes under the brand of Puma. In 1051, first version of the Puma
logo got registered. Further down the road in 1986 it transformation into a stock corporation and had large
public investment. Its advertising and promotion focused on awareness and distribution. It associated its
brand with famous sports players for example it paid German sprinter Armin Hary money to wear Pumas
in the 100 meters final of Olympics. In the beginning phase it faced less competition and was able to
make frequent product modifications. To add to its existing line of product the Company opened
boutiques at selected stores around the world.

 

From 1968 it entered the phase of growth. Puma was making inroads into the American market which
was quite apparent with its Increasing rate of sales. Some of the key ideas and initiatives included its
merger of sports and fashion. The company further had cooperation with designer Jil Sander, a famous
fashion personality. The phase also marked the entry of several competitors. In 1980s and 1990s new
players Nike and Reebok entered and made the industry more competitive. To counter the competition it
promoted itself as performance shoe manufacturer. Puma was vastly favored by the brash, new Hip-Hop
µtribe¶ in the late 1970s/early 1980s. It projected an image of ³cool´ to the consumers and made them feel
proud about it. This Strategy was quite successful and thus growth of PUMA was remarkable.


  

With addition of several players and with varied products getting launched frequently, the Market became
saturated after sometime. Prices and profit decreased gradually. New brands from competitors outdid
PUMA in terms of new trend. Nike and Reebok enjoyed their µmoments in sun¶ and PUMA was tagged as
an µold-school¶ brand. Company did not come out with innovation and there was no product diversification
so competition rose. It is fair to say that there was no strong marketing strategy.

  

PUMA was close to bankruptcy due to issues in 1986 IPO. Chief reasons were Centralized corporate
structure, high cost of production in Germany. Further it had inability to keep up with the global trends. To
add to its worried In US, Company lost its license. The internal issues took control and Company got split
due to rivalry within. Profit declined due to higher costs linked to its expansion. The Organizations
promoting fair trade and workers' rights criticized Puma's employment practices in their factories in
the developing world.


   
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The recovery started with remarkable Growth of 30% every year from 1997 to 2000. In 2004, the
Company¶s earning was 257 million euro after it suffered losses in 1993.It is successful in its positioning
in the present day. PUMA now distributes its product in more than 80 countries. They had successfully
won the rights of sponsoring the ë
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 champions. On 15 March 2007, Puma launched its
first new 2007/2008 line of uniforms for a club. Operating through high-margin channels like concept
stores and departmental stores it has grown tremendously. Trendy image of the product is showcased to
the youth in Trendy stores and it calls for premium prices for its exclusive image.

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In conclusion we can state that Fashion trend does not stay for long, it¶s an industry which requires
continuous innovation and accord with latest trends. To stay at the top PUMA needs to fulfill the fashion
demand in the market, it must launch trendy products, bring exclusivity to its products and make a brand
image in customer¶s eyes. It has to maintain an air of modernity and has to compete in an industry with
rapidly changing trends and fickle consumers. While PPR owns the majority of Puma's stock, Puma
remains an independent company.‘