Qian Chen

Josh Mattes
Neha Parekh
Jessica Patel
Ray Riga
Tracey Ziober

PUMA
 Agenda

• Strategies and Objectives

• Financial Overview
• Annual Promotion Plan
 Positioning Strategy
PUMA is a high quality athletic brand that makes a
fashion statement

Product
Target Market Price Point Example

1. Youth in urban markets who want to

express individuality and make a < $100
fashion statement

2. Athletes across multiple sports who $100 - $200

want to make a fashion statement

3. Young professionals who want to

signal wealth and status while making $200 +
a fashion statement
 Designer Product Lines

• Christy Turlington
• Yasuhiro Mihara
• Neil Barrett
• Alexander McQueen
• Jil Sander
 Distribution Strategy

• Freestanding Retail Stores

– 31 in 18 states
– Mall and street locations
• Wholesale Trading Partners
– Foot Locker, Foot Action
– Nordstrom, Neiman Marcus, Macy’s
– Paragon, other sporting goods stores
• e-commerce
 Financial Overview
2006 % of change
(m euro) sales vs. PY

Sales 2,369.2 33.3%

Footwear 1,420.0 59.9% 20.9%
Apparel 795.4 33.6% 67.8%
Accessories 153.8 6.5% 19.6%

SG&A 831.8 35.1% 47.6%

of which mk tg and retail 419.6 17.7% 54.3%

Earnings before taxes 374.0 15.8% -7.4%

U.S. sales = 620.2M dollars, +31% vs. 2005

 Business Objectives
• Sales growth of 10% while maintaining
strong margins
• Continue to invest in product innovation
across categories and markets
• Expand retail operations
– Provide unique brand experience
– Speed to market
– Gain product development and marketing
expertise by being closer to consumer
 Marketing Objectives

• Raise profile of PUMA brand

– Continue designer collaboration approach
– Communicate through all touch points
• Drive traffic to PUMA stores
• Increase loyalty and repeat purchase
 Promotion Objectives

• Further penetrate extreme sports market

• Create buzz and awareness in young,
urban, hip market
• Increase relevance to fashion-conscious
consumers
 Budget Allocation
Annual US marketing budget is $110M
Sports-related activities
Maintain and develop
sports PUMA’s brand
associations with sports
related
35% Lifestyle-related activities
Enact strategy to move to
Other lifestyle more upscale customers
5% related
60% Other activities
Generate positive PR and
low-cost buzz
 Sports Sponsorship

• Leverage existing player sponsorships

• Focus on niche and extreme sports

Lifestyle
Lifestyle: Associate with Upcoming Musicians
Lifestyle: The PUMA VIP Card
 Lifestyle: Fashion Week
VIP Contest: two all-access passes to Fashion
Week
Cause-Related: The Florida Panther
• Donate a portion of
profits to Friends of
the Florida Panther
Refuge

• Work with “Panther

Posse” student
groups

• Tie-in with Miami

Fashion Week &
WMC
 Buzz Marketing
The Adventures of PUMA
Consumer-generated content:
Short documentaries from the ground level
Travel/lifestyle focus
Contest:
Winning content will be aired on TV and consumer will win a trip
 Giant PUMA’s
• Giant sneakers affixed to sides of landmark
skyscrapers
• Executed in key cities simultaneously
Calendar
Q&A
 Competitive Positioning
• NIKE – Premium
Performance Brand
“Just Do It”

• ADIDAS – Forever
Sport
“Impossible is Nothing”
 Who and What
• Sports:
• Who: fans of niche sports who are fashion
conscious
• What: buy the puma products for the sports they
like and express their love for the sports through
wearing them

• Lifestyle:
• Who: young, hip, trendy, urban
• What: buy, wear and talk about their PUMA gear
as a personal statement