PUMA COMMERCIAL
AGENDA
Company Overview- Kyle
Company History-Kyle
Footwear Industry- Lyndsey
Trends-Lyndsey
Global Issues- Lyndsey
Competitors- Coralee
SWOT- Blase
Company Overview
Puma’s hometown is Herzogenaurach, Germany
The company distributes its products in more
than 130 countries
2007 Revenues $3.8 billion
Employees 9,204
116 concept stores
Company History
1924 Rudolf and Adolf Dassler start their first
shoe company
1936 Olympics when Jesse Owens wears Dassler
Shoes
1948 the brothers split the company into two
separate shoes manufacturers
1986 Puma goes public on the on the Borse
Munchen and Frankfort Stock Exchange
Company History Cont…
1989 Armin and Gerd Dassler sold their shares of
stock
1990 Jochen Zeitz joined the company as the new
CEO
Late 90’s Puma started to open subsidiaries in
other countries
Store Pictures
Footwear Industry
Global Footwear Industry
In 2007 was valued at $191.7 billion
By 2012 expected to be valued at $248.9 billion
European market represents the largest percent of
the global market at 40.6%
Germany is included in the European market
Footwear Industry
German Footwear Industry
In 2007 was worth $11.1 billion
By 2012 expected to be worth $12.8 billion
Germany is part of the European market
German Footwear market makes up 14.3% of the
European market value
Trends
United States footwear market has seen a
constant growth since 2003
2006 men and children drove the athletic
footwear market
2007 more women started by athletic shoes and
the athletic shoe market saw a drop in sales to
men and children
Global Issues
Puma has four virtual headquarters around the
world
The company insures that human rights, product
safety, and environmental concerns.
Puma is a proactive company and has established
S.A.F.E- Social Accountability and fundamental
environmental standards
Part of the United Nations Global Compact (UNGC)
Global Issues Cont…
In 2007 Puma was accredited by the Fair Labor
Standards Association
The company has been rated by Greenpeace
Puma outsources its production facilities to over
40 different countries
Main Competitors
Market Share
Nike
US Based Company
World Leader in Athletic Footwear Industry
Employs 500 000 people world wide including
Subsidiaries
2007 Revenues of 16 billion
Actions in Environmental Issues: Re-use a shoe
Program
Why does Nike hold the number one position?
• Dollars spent in advertising and Marketing
• Sponsorship programs
Current actions of Nike
Adidas
German based Company
Second leading company in the world for athletic
footwear
Puma’s true rival
2007 Revenues of 15.6 billion
Purchase of Reebok in 2006
Actions in Social Responsibility
•Red Ball – right to play
Sponsorship
Reebok
Based out of the United Kingdom
Joseph Foster
Gains popularity in 1980’s
Sponsorship
Fair Labor Association 2004
Official foot wear sponsor for Avon-Walk around
the world
•Sponsoring $500 000 in 2008
New Balance
Head Quarters in Boston, US based company
Unlike all other competitors in this case analysis
•70% of manufacturing occurs in the US
Located in 120 countries
Employs 2800 people
Unique for specializing in width
2007 revenue of 1.6 billion
Run Proud Campaign – fight against breast cancer
SWOT Analysis
Strengths
Very high quality products
Major Sponsor of NASCAR and Formula One
Racing
One of the leading sportswear and shoe
companies in Europe
SWOT Analysis
Weaknesses
Not the biggest shoe and apparel company in
Germany
Seem to not be able to attract famous athletes in
the United States
Advertising is not a major priority in the United
States
SWOT Analysis
Opportunities
Gain more of the market share of the NFL and
NBA
Emerging Asian markets are a big opportunity for
growth
The whole US is an opportunity for expansion and
growth
SWOT Analysis
Threats
Rising costs of raw materials
Risk of counterfeit products being made illegally
Intense competition is always a constant problem
Recommendations
Short-Term
Focus greater attention to marketing and
advertising
Puma needs to meet the demands of growing
markets
Specialize products for needs and wants of baby
boomers
Develop a more user friendly website
Recommendations
Long-Term
Focus on environmental issues
Focus on a variety of sports markets
Focus more on the United States and Asian
Markets
Conclusion
Puma is a globally competitive
company
The company does an excellent job in
advertising
Puma needs to keep increasing their
revenues and stay out of debt
Any Questions
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