PUMA & RIHANNA : AN IMPACTFUL PARTNERSHIP Consumer Behavior Course Facilitator: Iin Mayasari, Dr., M.M., M.Si. Compiled by Group 5: Yoga Prasetyo - 421969 Bona Ade Putra - 421866 Ary Stevanus Christanto - 407163 Case Summary • • Puma designs and manufactures athletic and casual footwear, apparel and accessories, which is headquartered in Germany. PUMA is the third largest Sportwear manufacturer in the world. Puma’s revenue declined 9% compared 2012 YOY, jump to € 2.99 bio. • • Puma decide to revitalize the brand by having new positioning and targeting in 2014. To support this strategy, Puma choose Rihanna as creative director of the women’s line and Global ambassador. By having the energy of Rihanna, Puma’s revenue was steadily grow. 2013 • • • Total revenue in 2013 fell 9% to €2.9 bio. it predicted in the second half that would give the flat sales overall for 2014. Compared to the much bigger Nike and Adidas, Gulden said Puma was still struggling to get space at retailers. 2014 • • • • • In 2014, Puma was in the process of a major rebranding. Re-positioning: To be the Fastest Sports Brand in the world. Including Usain Bolt as Brand Ambassador. Tagline: Forever faster. Re-targeting: Strengthening our strategic focus on the female target group. Rihanna became creative director of the women’s line and Global ambassador. 2015 • • • Rihanna joined the biggest campaign “forever faster” aligned with global athlete Usain Bolt and Sergio Agüero. The campaign aims to show that 'Puma is back in sports’. Reason behind choosing Rihanna among the athlete : global profile, her charisma and individuality and her ambition. September 2015, brand of Rihanna, The Creeper, has been sold out only in 3 hours! 2016 • The Creeper sneakers won Footwear News’ Shoe of the Year in 2016, Fenty x Puma line became the collection to watch. • In 2016 was the introduction of a complete women’s collection of shoes and textiles Rihanna had a vital part of improving our product offering for women in Performance and Sport style categories. Problem Statement • How is the strategy of celebrity endorser (Rihanna) to succeed the company rebranding? • How choosing Rihanna can be successful to revitalize Puma image? “Puma Co-brands” Urban Street, Urban Modern, Contemporary Fashion ✓ Collaboration with fashion designers, international artist, architect, etc ✓ Targeting young people for the marketing communication ✓ Mix advertisement ✓ Taking advantage of the holiday season Puma Marketing Strategy 3 FAKTOR YANG DIMILIKI SELEBRITI UNTUK ENDORSEMENT: 1. Attractiveness: likeability dan attractiveness 2. Trustworhtiness: honesty dan integrity 3. Expertise: expert in their talent Improving BRAND IMAGE which can influence consumers purchasing decision There are 3 Variabel support : 1. Company→ providing trusted sport shoes 2. User → stylish and energetic 3. Product → fashion and sporty Why Rihanna? Adam Petrick Puma Global Marketing Director “We were looking for someone who draws women the world over, and that is hard to find in sports. Women’s basketball is big in one country but not another, for example. But in terms of body confidence, bravery and determination — all qualities associated with Puma — it was clear Rihanna met the criteria. She’s a game-changer Conclusion 1. Partnerships between brands and celebrities have proven to be very profitable. Puma increased its results due to a partnership with Rihanna. The goal? To establish a connection with female audience. For years, Rihanna has been an inspiration for women all around the world. She supports feminism and actively defends women’s rights, by writing songs and participating in events. And so, women identify themselves with her. By connecting to Rihanna, Puma made a direct connection to a larger female audience, and conveyed the singer's positive connection with fans to the brand. 2. Since signing on as creative director and global ambassador for PUMA in December 2014, she has codesigned several Fenty collections (the brand’s moniker is her real last name), with sneakers and slides ranging in price from $80 to $150. The shoes sell out in hours - even minutes. 3. A year after the signing, company’s profits jumped 11.2%. It’s not cheap to have an A-lister on your team — expenditures for marketing and retail purposes increased by 16.3%. “Rihanna is far more than an ambassador of the Puma brand,” said Adam Petrick, the company’s global director of brand and marketing, of her hands-on approach to design. “Each season she has taken the Fenty range to new heights and we continue to be in awe of her creative abilities.” 4. In the last quarter of 2015, Puma’s earnings increased by 17%. Executives from the brand believe the growth had been driven in particular by footwear, with sales up a currency adjusted 23 percent, and accessories, which rose 24 percent, while sales of apparel were up 8 percent. Puma proved once again that establishing relevant partnerships (for their audience) can be very profitable and provide better results than other initiatives. 5. Athletic brands have always established partnerships with athletes. Ronaldo with Nike, Messi with adidas. It’s an easy way to transport the “quality” of these players to the products. But establishing a partnership with Rihanna, who isn’t even an athlete? It's an example of how companies who have built a traditional image and struggle to differentiate and reach new markets, can somehow have a different positioning in the market and connect with their audiences. In this case, it was directed for women and women value Rihanna, and that’s why Puma’s campaign was so successful. “It helps that Rihanna has a mammoth following to draw from. According to NPD Group, which analyzes brand and celebrity matchups, fans of Rihanna show distinct preferences for products she uses and endorses. Rihanna fans—dubbed “The Navy”—are 3.7 times as likely to purchase from Rihanna than other celebrities. With 54 million Instagram followers and 73.9 million Twitter followers, that can mean cash for companies.” Recommendations for Selecting Celebrity Endorser DO Select an influencer based on targeted audience demographics. You wouldn’t advertise in a magazine without knowing its readership, and you shouldn’t partner with an influencer without researching their audience. When choosing influencers, context is key. Procure a person whose content or niche area of expertise is in line with your product. Build a relationship. An authentic affiliation between an influencer and your product is paramount. A long-term campaign is going to yield better results than a one-off post. It also exposes your product to an influencer’s audience over time. DON’T Abandon established marketing fundamentals for vanity metrics such as likes and comments. Target the right audience and make messaging consistent with your brand philosophy. Rely on a single influencer, allocating them all the power. Every influencer has thousands of twins. While it may sound harsh, no influencer is irreplaceable. You dictate the terms of the campaign, not the influencer. Make an influencer the face of your brand. This will backfire should the influencer become embroiled in scandal or undertake work for a competitor. Thank You