Indira Institute of Management,
Pune (MBA)
(2021-2023)
A Report On
Course Code: GC5T301
Strategy
Management
Under The Guidance of:
Dr. Sanjay Bhale
Submitted By: Group 19
1) Soniya Sharma
2) Suhrida Chakraborty
3) Suraj Yadav
4) Tanay Jain
5) Utkarsh Tirpude
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MK
MK
MK
MK
MK
B
B
B
B
B
54
55
56
57
58
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Table of Contents
1.
2.
TOPIC ........................................................................................................................... 3
INTRODUCTION ............................................................................................................. 3
OVERVIEW OF THE TOPIC ................................................................................................. 3
OBJECTIVE ....................................................................................................................... 4
3. STRATEGIES FOLLOWED ............................................................................................... 5
INDIAN SPORTS INDUSTRY ............................................................................................... 5
PUMA’S PLAN ................................................................................................................... 6
IDENTIFYING TRENDS ....................................................................................................... 6
REACHING & CONNECTING WITH CUSTOMERS ................................................................. 7
ONE8 COLLABORATION WITH PUMA ................................................................................ 9
AT CORPORATE LEVEL ................................................................................................... 10
1. BCG MATRIX ......................................................................................................... 10
2. ANSOFF MATRIX ..................................................................................................... 11
AT BUSINESS LEVEL ...................................................................................................... 12
1. PORTERS FIVE FORCES MODEL ............................................................................... 12
2. PESTEL ANALYSIS MODEL ................................................................................... 13
3. VALUE CHAIN ............................................................................................................ 15
4. BALANCED SCORECARD ............................................................................................. 17
AT OPERATIONAL LEVEL ............................................................................................... 19
1. CRITICAL SUCCESS FACTORS (CSFS)...................................................................... 19
4. FINDINGS & SUGGESTIONS ............................................................................................. 20
FINDINGS ........................................................................................................................ 20
SUGGESTIONS ................................................................................................................. 20
5. REFERENCES .................................................................................................................. 21
2
1. Topic
“PUMA is facing intense competition from Nike, Reebok, and Adidas in the Indian
athletic footwear and apparel market.”
2. Introduction
Overview of the Topic
One issue PUMA is facing with respect to competition from Nike, Reebok and Adidas in India
is market dominance. PUMA, like many other global brands, faces intense competition from
local and international competitors in the Indian market. Companies such as Nike, Reebok, and
Adidas have well-established presences in India and have built strong brand loyalty among
consumers. Both Nike and Adidas have established a strong presence in the Indian market and
have been able to gain a significant market share. This has made it difficult for PUMA to
penetrate the market and gain a foothold.
Another issue PUMA is facing is brand recognition and loyalty. Nike and Adidas have been
able to establish themselves as household names in India, with a strong brand image and loyal
customer base. This has made it difficult for PUMA to compete with these established brands.
Both Nike & Adidas have established strong brand identities and have significant market share,
making it difficult for PUMA to gain a foothold in the market. Additionally, Nike and Adidas
have both invested heavily in technology and innovation, which has helped them to develop
new products and stay ahead of the competition.
To overcome these challenges, PUMA is focusing on sustained competence. This means that
they are actively seeking ways to improve their products and services to remain competitive in
the market. One strategy they have implemented is to focus on innovation and design. They
have invested in research and development to create new and unique products that will appeal
to Indian consumers. PUMA has been focusing on building a strong brand identity and
developing innovative products. The company has also been investing in partnerships and
collaborations with other companies and individuals in the fashion and sports industries in
order to stay relevant and appeal to consumers. Furthermore, PUMA has been expanding its
online and e-commerce presence, as well as expanding into new markets and regions, in order
to reach new customers and increase its market share.
3
Additionally, PUMA is also focusing on building their brand image in India. They have
invested in marketing and advertising campaigns to increase brand awareness and promote
their products. They are also looking to establish partnerships with local sports teams and
athletes to increase their visibility in the market.
Overall, PUMA is working hard to maintain sustained competence in the Indian market by
focusing on innovation, design, and building their brand image. Through these efforts, they
hope to overcome the challenges posed by competition from Nike and Adidas and establish a
strong presence in the Indian market.
Objective
▪
Understand the current market scenario: The topic aims to understand the market share,
brand recognition and loyalty of Nike, Reebok and Adidas, and how PUMA is struggling
to establish its foothold in the Indian market.
▪
Analyze PUMA's strategies to overcome the competition: The topic aims to evaluate
PUMA's approach to counter the challenges posed by the competition, such as focusing on
innovation and design, building brand image, and partnerships with local sports teams and
athletes.
▪
Evaluate the effectiveness of PUMA's strategies: The topic aims to assess whether
PUMA's strategies are working to help them overcome the challenges of competition and
establish a strong presence in the Indian market.
▪
Provide recommendations for PUMA: The topic aims to provide suggestions and
recommendations for PUMA on how to improve their market position and compete
effectively with Nike and Adidas in the Indian market.
4
3. Strategies Followed
India is recognized as a vast market for various commodities and services. With its large
population comes a significant responsibility. Despite the longstanding dominance of cricket
in the Indian sports industry, the country has seen a significant growth in its sports versatility
in recent years, particularly following the 2020 Olympics and various world championship
events. As a result, the sportswear and accessories industry in India has experienced substantial
growth. While global leaders such as Adidas and Nike have a presence in the Indian market, it
is Puma that currently holds the largest market share in the sports product industry in India.
This may come as a surprise, but there is an intriguing explanation for this phenomenon.
Puma entered the Indian sportswear market in 2006, with an initial revenue of INR 22 crores.
At that time, other major sports brands had already established a strong presence in India, with
market caps of INR 99 crores for Nike, Nike happened to be the official kit sponsor of the
Indian cricket team. INR 186 crores for Adidas, Adidas as having Sachin Tendulkar as their
brand ambassador and INR 354 crores for Reebok. All of them were reasonably well at that
time. Puma was nowhere in the top spot of the top brands in India at that time. However, by
2020, Puma had surpassed all its competitors to secure the top position, with a market cap of
INR 1413 crores.
Indian Sports Industry
Indian Sports industries were having 3 major problems at that time. The sports industry was
too small for the big brands, It is very complex as India is the union of states culture, language,
etc. India is too price sensitive as well. However Indian cricket team sponsor Nike was having
99 crores in sales initially and after
sponsoring team India from 2006 to
2010 for the period. Nike revenue only
went on to become 186 crores. 96 crores
to 186 crores but this time around
Reebok was killing the Indian sports
segment in 2010.
In order to understand the success of the
Reebok brand in India, it is important to
examine its market positioning at that time. Reebok was not positioned as a performance brand,
but rather as a fashion brand. The majority of Reebok's sales in India came from the footwear
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segment, particularly shoes. Reebok's style statement campaigns, which featured iconic young
Indian superstars and cricketers such as Yuvraj Singh and Mahindra Singh Dhoni as brand
ambassadors, contributed to the brand's success in the market. In particular, the ad campaign
for the newly launched Z-Tech shoe was a major hit in India, performing exceptionally well in
the market.
Puma’s Plan
After the decline of Reebok in the Indian market, Puma took advantage of the opportunity by
adopting similar strategies that had previously been successful for Reebok. Specifically, Puma
positioned itself as a fashion brand in India and adapted to the country's price-sensitive market
conditions.
The brand opened 340 stores in 150 cities, implementing a single location-based model, where
only one outlet was established in each city. Among these 340 stores, 320 of them were run on
a franchise model. Meanwhile, Reebok closed 300 of its 900 stores in India, and Puma replaced
the company's B2B and B2C segment dealers, middlemen, and retail partners in the market.
Identifying Trends
India was the only market globally where the Puma was ahead of Nike and Adidas. Their
success over the years came from their capacity to identify trends in the market.
▪
Trend 1 – The lifestyle changes happening in the country.
With increased health concerns, Indians started taking more interest in sports. It created a
growing demand for sportswear as fitness became more integrated into their lives.
▪
Trend 2 – More women getting into sports.
An increasing percentage of women started attending their running events in India. They
also took to other activities such as calisthenics, Pilates & Zumba. Growth in the women’s
category has been higher than in the men’s category.
▪
Trend 3 – The rise of ‘athleisure’
Athleisure is defined as casual clothing designed to be worn both for exercising and for
general use. People started wearing sportswear at the office, in malls, in planes etc. It
became an integral part of their lifestyle.
6
▪
Trend 4 – The popularity of streetwear reaching India.
The sneaker culture developed as people started buying, collecting, and exchanging
sneakers while posting about it on social media. This led to a boost in their sales of sneakers.
Puma capitalized on this trend with their Relative Strength line. Despite the high price-point of
these sneakers, they were a hit among consumers in India who are usually known to be valueconscious. They also initiated associations and partnerships with sneakerheads.
Reaching & Connecting with Customers
Puma combines the ability to spot trends with a capacity to connect with their target audience.
They can find the right channels to reach them and the right messaging that will resonate with
them. Puma’s main target audiences are Millennials & Gen Z. Puma adopted a digital-first
approach which is a more cost-effective way of reaching them. They are moving away their
marketing spend from traditional advertising to spending ~90% of their budget on digital.
Puma adopts a multi-channel approach to reach their customers. They sell their products on
their own website, in their stores, on e-commerce platforms, in multi-brand stores etc.
The focus remains on driving more sales through their own online store (puma.com). It is a
preferred choice by brands as they have more control over the experience of visitors, can collect
more data and avoid commissions fees. To boost sales on their own e-commerce store, Puma
sells exclusive products not found elsewhere.
Puma also leverages on the popularity of other e-commerce platforms. They sell on sites like
Flipkart and Myntra which are both widely used in India. They are present wherever Indians
shop online without becoming too reliant on any external platform.
Puma’s messaging resonates with
Indians.
That
is
because
of
localisation. While they may be an
international brand, their campaigns
are localised which makes them more
relatable. Here’s an example with their
campaign ‘Suede Gully’.
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Localization extends to their products as well. They created flipflops and open sandals
exclusively for the Indian market. They sell over 5 million pairs every year. Here’s the search
for ‘sandals’ in their US store (left) and India store (right).
Puma launched a gully boys series with Divine 9.5 million views they got on YouTube.
Meantime In the women segment, they got few celebrities brand ambassadors. Puma’s biggest
strength is celebrity branding. It’s a tactic that’s particularly effective in Asia and especially in
India. It’s a great way to inspire consumers and gain credibility.
In India, the celebrities are actors/actresses from Bollywood movies and cricket players from
the national team. Their reach in the country is unparalleled. People across all strata of society
look up to them. They are the celebrities who
Puma partners with.
Puma has partnered with big stars such as
Kareena Kapoor and Jacquline Fernandez. And
more recently, the new joiner in the industry
Sara Ali Khan. On Instagram alone, that’s a
reach of over 80M.
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One8 Collaboration with Puma
Puma has formed strategic partnerships with various cricket players, including those on the
Indian national team. One notable example is their partnership with former Indian cricket
player, Yuvraj Singh, who served as a brand ambassador. However, their more recent
partnership with Virat Kohli, the current captain of the Indian cricket team, has been
particularly successful on a global scale. This is due to the fact that Virat Kohli is a highly
influential and popular figure in India, and thus represents a significant opportunity for Puma
in the country.
The partnership with Virat
Kohli
was
not
‘simple’
celebrity branding. Virat Kohli
launched his own brand called
One8 in collaboration with
Puma. It reported sales of $15
million in its first year. It is
growing rapidly and accounted
for a 10% rise in Puma India
sales in 2019.
Puma is a textbook example of how a brand can leverage on celebrity branding in India.
They’re able to convince the biggest stars to join them, they’re able to spot the up-and-coming
ones, and they have a finger on the pulse to identify those shaping the culture. That’s how Puma
was able to become the leading sportswear brand in India. Through their ability to identify
trends and their capacity to reach and connect with their audience effectively.
As a next step, they will be looking at extending their popularity outside of Tier 1 cities such
as Mumbai & Delhi. They will reach out more aggressively to new consumers in Tier 2, 3 cities
to consolidate their place as a leader in the market.
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At Corporate Level
1. BCG Matrix
A BCG matrix is a tool used to analyze a company's product portfolio and identify which
products are most likely to generate growth and profitability. In the context of Puma India, the
BCG matrix can be used to evaluate the company's competition with Nike, Reebok, and Adidas.
The BCG matrix classifies products into four categories:
▪
Stars:
In the case of Puma India, a star product
would be one that has high market share in
India and is expected to continue growing in
the future. For example, Puma's partnership
with Virat Kohli, which has been highly
successful globally, could be considered a
star product. Puma should continue to invest
in these businesses to not only defend its
present market share but also to increase
market share and profitability.
▪
Cash cows:
These are often established businesses in their segment. As these segments mature, the
marginal effects of new investment or resource allocation are relatively small. So, Puma should
continue to use the revenues from these businesses to reinvest into the faster growing segments.
In the case of Puma India, a cash cow product would be one that has high market share in India
but is expected to have limited growth potential in the future.
▪
Dogs:
In the case of Puma India, a dog product would be one that has low market share in India and
is expected to have limited growth potential in the future. If the profitability in the industry is
also low, then Puma should just exit from those businesses. Secondly if the business is critical
to other businesses of Puma, then it needs to continue that business even though it is a low
profit-making business.
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▪
Question marks:
Puma needs to figure out whether Question Marks represent a potential Star or a potential Dog.
If Puma has resources to turnaround the business by either procuring new technology, hiring
skilled human resources, or building better processes then it should invest in the question mark.
If the organization after analysis concludes that investing in a question mark is not feasible
with resources at hand, then Puma should divest from the segment and employ those resources
in star businesses.
2. Ansoff Matrix
The Ansoff Matrix is a strategic planning tool that
helps companies understand the risk involved in
different growth strategies. Puma India can use
this matrix to evaluate its different options for
growth in the highly competitive sports apparel
market in India. The four options in the Ansoff
Matrix
are
development,
market
product
penetration,
development,
market
and
diversification.
▪
Market Penetration: This strategy involves increasing market share in the existing market
through increased sales and marketing efforts. For Puma India, this could mean increasing
the number of stores and distribution channels, as well as investing in advertising and
promotions to increase brand awareness and appeal to new customers. An example of this
strategy would be Puma India expanding its presence in Tier 2 and 3 cities across India
through a franchise model.
▪
Market Development: This strategy involves entering new markets with existing
products. Puma India could explore this strategy by targeting new segments such as
women's sports apparel, children's sports apparel, or by expanding its presence in other
countries in South Asia. An example of this strategy would be Puma India targeting the
women's sports market in India by launching a new line of women's sportswear and
investing in an advertising campaign to target the female segment.
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▪
Product Development: This strategy involves developing new products for the existing
market. Puma India could explore this strategy by introducing new technologies and
materials in its products, or by developing new product lines. An example of this strategy
would be Puma India introducing a new line of eco-friendly sportswear made from
sustainable materials and investing in an advertising campaign to promote the eco-friendly
aspect of the product.
▪
Diversification: This strategy involves entering new markets with new products. Puma
India could explore this strategy by entering new product categories such as sports
equipment, or by entering new geographic markets such as Latin America.
An example of this strategy would be Puma India entering the sports equipment market by
launching a line of golf clubs and investing in an advertising campaign to promote the new
product line.
It is important to note that each strategy has its own advantages and risks. Market penetration
and market development are less risky as they involve the use of existing products in new
markets. Product development and diversification are riskier as they involve the development
of new products or entry into new markets. Puma India should carefully evaluate the risks and
opportunities associated with each strategy before deciding which one to pursue.
At Business Level
1. Porters Five Forces Model
Porter's Five Forces model is a tool used to analyze the competitive environment of a business
and assess the potential for profitability and success. In the case of Puma India, the five forces
are:
▪
Threat of New Entrants: The sports industry in India is competitive, with established
brands such as Nike, Adidas, and Reebok already present in the market. It may be difficult
for new entrants to break into the market and gain market share, as these established brands
have a strong reputation and customer base. Additionally, the high costs associated with
marketing and distribution in India may be a barrier to entry.
12
▪
Bargaining Power of Suppliers: Puma India, like other sports brands, may face the
bargaining power of suppliers if the suppliers have control over the prices or quality of the
materials and components used in the manufacturing of sports products. If there are few
suppliers in the market, they may have more bargaining power and be able to dictate the
prices and terms of their services.
▪
Bargaining Power of Buyers: In the sports industry, the bargaining power of buyers is
high due to the availability of multiple brands and the ability of customers to compare prices
and quality. This puts pressure on brands such as Puma to offer high-quality products at
competitive prices to attract and retain customers.
▪
Threat of Substitute Products: Puma India may face competition from substitute
products, such as generic sports brands or alternative forms of exercise and recreation. To
stay competitive, Puma must continue to innovate and differentiate their products from
substitutes.
▪
Rivalry Among Existing Competitors: The competition between established sports
brands such as Nike, Adidas, and Reebok is intense in the Indian market. Puma must
continually assess and respond to the strategies and actions of its competitors in order to
maintain its position in the market.
Overall, the Porter's Five Forces model suggests that Puma India faces a competitive
environment and must continue to innovate and differentiate its products in order to remain
successful in the market. Additionally, the brand must be aware of the bargaining power of
suppliers and buyers, and the threat of substitute products in order to stay ahead of its
competitors.
2. PESTEL Analysis Model
The PESTEL analysis of Puma India is a framework used to analyze the various external factors
affecting the company's performance and operations. These factors include:
•
Political: The political stability of India and government policies on foreign investment and
tax policies can impact the business of Puma India. For example, changes in the tax policies
could lead to increased costs for the company.
13
•
Economic: India's economic conditions, such as inflation, exchange rates, and consumer
purchasing power, can affect Puma India's sales and profits. For example, if there is high
inflation, consumers may opt for cheaper alternatives, leading to a decrease in Puma's sales.
•
Sociocultural: India's demographic and cultural factors, such as the increasing focus on
health and fitness, can impact Puma's sales and marketing strategies. For example, the
growing popularity of fitness and wellness could lead Puma to focus more on sports and
fitness products.
•
Technological: The advancements in technology, such as e-commerce, can impact Puma's
operations and distribution channels. For example, the increased popularity of online
shopping could lead Puma to focus more on its online presence.
•
Environmental: Environmental regulations and the growing concern for sustainability can
impact Puma's production processes and materials used. For example, Puma may have to
adopt eco-friendly production processes and materials to meet the environmental
regulations.
•
Legal: The laws and regulations in India, such as intellectual property rights, labor laws,
and consumer protection laws, can impact Puma's operations. For example, if Puma is
found to be infringing on someone's intellectual property rights, it could lead to legal issues.
In conclusion, the PESTEL analysis highlights the various external factors that can impact
Puma's performance and operations in India. Understanding these factors can help Puma make
informed decisions and develop strategies to remain competitive in the market.
14
3. Value Chain
Puma value chain is part of a larger value system of the industry that includes companies either
upstream (suppliers) or downstream (distribution channels), or both. Manager at Puma's
Challenge to Maintain Leadership in India needs to see each activity as part of that value system
and how adding each activity or reducing each activity impact the Puma's Challenge to
Maintain Leadership in India value chain. The decision is regarding where to sit in the value
system. As per the Value Chain model there are broadly two generic categories of activities –
Primary Activities and Supporting Activities.
Primary Activities:
▪
Inbound Logistics
These activities of Puma are associated with receiving, storing, and disseminating the
inputs of the products. It can include material handling, warehousing of physical products,
as well as architecture to receive and store customer information for digital media
companies. Puma at present has outsourced most of its inbound logistics activities.
▪
Operations
Activities that help the organization to transform raw material into finished products. For
the purpose of this article the definition is broad – it can mean using customer data to serve
advertisements based on usage behavior to clients, molding plastic to make products etc.
▪
Outbound Logistics
Puma undertakes these activities to distribute the finished products to channel partners and
final buyers. Outbound logistics activities include – wholesalers and retailers order
fulfillment, warehousing, scheduling, distribution network, and processing.
15
▪
Marketing and Sales
These activities are undertaken by Puma to create means through which the buyer can buy
a firm’s products. These activities include – advertising and promotion, channel selection,
pricing, marketing, sales force management etc.
▪
Services
Puma needs to provide after-sales services and maintenance for successful usage of the
product. Service activities of Puma can include – part supply, installation services, product
forward and backend alignment of software, post sales maintenance, and training.
Support Activities:
As the name explains, Support Activities of Puma are the ones that supports the firm’s Primary
Activities. Porter divided the Support Activities into four broad categories and each category
of support activities is divisible into several distinct value activities that are specific to the
industry in which Puma Sportswear operates. The four generic support activities are:
▪
Firm Infrastructure
Firm infrastructure support activities at Puma consists of activities such as – planning, general
management, finance and accounting, quality management and legal services. Firm
infrastructure activities at Puma supports entire value chain though the scope varies given that
Puma is a diversified company even within the industry. For example, the finance and planning
at Puma are managed at corporate level while quality management, accounting and legal issues
are managed at business unit level.
▪
Human Resource Management
HRM support activities include – Recruiting, Skill Assessment, Hiring, Selection, People
Planning, Training & Development and Compensation at both business unit level and corporate
level. Human resource management affects competitive advantage in any firm, but in some
industries, it is a defining factor. For example, in consulting companies HR is the main source
of competitive advantage.
▪
Technology Development
Technology supports almost all activities in modern day organization. In the technology
industry, technology development has become a source of competitive advantage. Technology
16
development at Puma may include activities such as - field-testing, technology selection,
process engineering, feature design, and component design.
▪
Procurement Development
Procurement activities at Puma include activities that are undertaken to purchase inputs that
are used by Puma’s value chain. It doesn’t include purchase inputs themselves. Purchased
inputs may include - raw materials, supplies, machinery, laboratory equipment, office
equipment, and buildings. Like all other value chain activities procurement also employs
technology for things such as – procedures, vendor management, information system, and
supply chain partner qualification rules and ongoing performance evaluation.
4. Balanced Scorecard
The Balance Scorecard of each company varies based on the nature, size of the firm and
industry it operates in. Broadly there are four main components / features of Balance Scorecard.
These four perspectives / components of Balance Scorecard are: Financial Perspective,
Customer Perspective, Internal Business Perspective & Innovation and Learning Perspective.
To gauge the performance of Puma India through the Balanced Scorecard, we can evaluate the
company's financial performance by looking at measures such as revenue growth, profitability,
and return on investment. To evaluate customer performance, we can look at metrics such as
customer satisfaction, market share, and brand loyalty. To evaluate internal process
performance, we can look at measures such as production efficiency, product quality, and
supply chain management. Finally, to evaluate learning and growth, we can look at metrics
such as employee satisfaction, training and development, and innovation.
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Balanced Scorecard Analysis For Puma
Perspective
1. Financials
2. Customers
Objective
Increase market share
Improve competative position
Reduce cost of production
Measures
Increase market share to a total 15%
Control 51% of total Puma's product sales
Decrease in production expenses
Time Expectation
Anually
Quaterly
Anually
Primary Responsibility
Marketing
Marketing
CFO
Customer satisfaction
Customer and online surveys
Product and purchasing reviews.
Membership and number of returning
and new customers.
Open more stores in various countries
Quaterly
Managers / Marketing
Quaterly
Marketing
Customer loyalty
Accessibility
Improve brand image
3. Internal Business
Product innovation
Perspective
Market penetration
4. Learning &
Growth
Biannually - Annually Marketing
Increase in sales and customers
Quaterly
recommendations
Number of new stores, products and marketing Quaterly
Number of stores ans sales in new/other
countries
Anually
Reduce advertising expenses
Eliminate lowest performing TV & Web ads
Improve employee job satisfaction Decrease employee turnover by 8%
Enhance capability of creating
Increase promotionrates by 15%
innovative technology
CEO
CEO/Marketing
Marketing
Quaterly
Anually
Marketing
Human Resources
Anually
Human Resources
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At Operational Level
1. Critical Success Factors (CSFs)
Critical Success Factors (CSFs) are the essential elements that are required for a company to
achieve its desired objectives and goals. For Puma India, the functional CSFs can be as follows:
▪
Product Quality: Ensuring that the products manufactured by Puma India meet the highest
quality standards and are competitive in the market.
▪
Innovation: Continuously introducing new products and features that cater to the evolving
needs and preferences of customers.
▪
Marketing: Effectively communicating the brand message to the target audience,
promoting brand awareness and creating a positive brand image.
▪
Supply Chain Management: Streamlining the supply chain process to ensure timely
delivery of products, reducing costs, and improving customer satisfaction.
▪
Cost Management: Controlling costs by optimizing resources, improving efficiency, and
reducing waste.
To attain these CSFs, Puma India can plan and execute the following activities:
▪
Product Quality: testing and quality control measures at every stage of the production
process, regular product testing, and incorporating customer feedback to improve product
quality.
▪
Innovation: Encouraging a culture of innovation and encouraging employees to suggest
and implement new ideas. Puma India can also invest in research and development to create
new products and technologies.
▪
Marketing: Developing an integrated marketing strategy that leverages digital marketing
channels to reach a wider audience and increase brand visibility.
▪
Supply Chain Management: Implementing technology and automation to improve supply
chain processes and reduce costs. Puma India can also develop partnerships with suppliers
to ensure the timely delivery of high-quality materials.
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▪
Cost Management: Implementing cost control measures, such as reducing waste,
optimizing resources, and improving operational efficiency. Puma India can also negotiate
better terms with suppliers to reduce the cost of materials and improve profitability.
4. Findings & Suggestions
Findings
Core findings for Puma India in competition with Nike, Adidas, and Reebok may include:
▪
Market positioning: Puma has been successful in positioning itself as a fashion brand in
India, similar to the approach Reebok took in the past. This has helped Puma gain a strong
foothold in the footwear segment in India.
▪
Adapting to the Indian market: Puma has been able to adapt to the price sensitivity and
cultural diversity of the Indian market. This has been evident in the company's decision to
open single-location-based stores and to adopt a franchise model.
▪
Brand ambassadors: Puma has had a successful partnership with Indian cricket players,
including Virat Kohli, which has helped to boost the brand's image and sales.
Suggestions
Based on these findings, some suggestions for Puma India may include:
▪
Maintaining market positioning: Puma should continue to maintain its position as a
fashion brand in India and continue to focus on the footwear segment.
▪
Expanding presence in India: Puma should consider expanding its presence in India by
opening more stores in different cities to increase visibility and accessibility for consumers.
▪
Building on brand ambassadors: Puma should continue to partner with Indian cricket
players and other sports stars to further boost the brand's image and sales.
▪
Investing in digital marketing and e-commerce: Puma should invest in digital marketing
and e-commerce to appeal to the younger generation and increase its online presence.
▪
Continuously monitoring market and competition: Puma should continuously monitor
the market and its competition to stay ahead of the curve and make necessary adjustments
to its strategies.
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5. References
▪
https://www.moneycontrol.com/news/business/companies/how-puma-scored-over-nikeadidas-in-the-indian-market-8239981.html
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https://rahulchakrapani.in/puma-the-rise-of-top-brand-in-india-a-business-case-study/
▪
https://in.puma.com/in/en?gclid=EAIaIQobChMIr_bPseHq_AIV49pMAh33OQoAEAA
YASAAEgIDtfD_BwE&utm_aud=OTH&utm_campaign=BS_GGL_SEA_TXT_Brand
▪
https://www.thecasesolutions.com/puma-6
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