LIME PUMA
PUMA INDIA CASE
TEAM INGENIOUS
Prakhar Agrawal
Sahil Kalra
Suraj Kumar Menon
Team Code: XLRI9768
XLRI
OUTLINE
1 Industry Overview- Indian Sportswear Market, PEST Analysis
2 Player Profiles (Nike, Adidas, Reebok, Puma)
3 Consumer Insights from Primary Research
4 SWOT Analysis for Puma
5 STP Analysis
6 Strategy for Penetrating the Target Market
2
OUTLINE
1 Industry Overview- Indian Sportswear Market, PEST Analysis
2 Player Profiles (Nike, Adidas, Reebok, Puma)
3 Consumer Insights from Primary Research
4 SWOT Analysis for Puma
5 STP Analysis
6 Strategy for Penetrating the Target Market
3
INDUSTRY OVERVIEW
The sportswear market in India is largely unorganized with organized players constituting only
around 30% of the market. Franchised exclusive brand outlets (EBO) and multi- brand outlets
form the core retail channels for sportswear in India.
Market segmentation
Indian sportswear market 2010-2014
22.9
25
20
US$ bn
15
10
CAGR 33%
Footwear
40%
7.3
60%
5
Apparel and
Accessories
0
2010
2014
Source: Sportswear market in India, Ernst and Young India report 2012
Market size
The sportswear market in India is estimated at Rs. 4000 crore.
The Indian sportswear industry is poised for strong growth over the next few years and is expected to grow at a
robust CAGR of 33% during 2010–2014.
 Several factors, including a booming middle-class population, a paradigm shift in consumer attitude toward health
and fitness, an increase in the number of sports events and growth in organized retail are driving the market.
Key segments
 The market includes sports apparel, footwear and accessories with footwear being the largest segment accounting
for around 60% of the total market.
4
INDUSTRY OVERVIEW
Indian sportswear market share
Nike,
10%
Others,
2%
Puma,
18%
*Other players include Fila,
Lotto, Converse and New
Balance
COMPANY
Bata
Liberty
Woodland
Planet Sports
Nike Inc
Adidas AG
Reebok International Ltd
Puma AG
Fila
Lotto Sport Italia
Rockport
Kappa
Skechers USA Inc
Royal Sporting House (RSH)

Organized sportswear market in
India is dominated by the “big four”.
Adidas, Reebok, Nike and Puma
enjoy a 98% market share of the
organized market with several others
such as Fila and Lotto ramping up
their presence.

Nike was the first international
player to enter the Indian market in
1994 through a licensing
arrangement with Sierra Industrial
Enterprises Pvt. Ltd. The company
later established a wholly owned
subsidiary in India in 2004.

The retail landscape faces
competition from multi-brand
sportswear retailers such as Planet
Sports and RSH. Domestic players
such as Bata and Liberty also enjoy a
considerable presence in the Indian
market.
Reebok,
45%
Adidas,
25%
APPAREL
INDIAN
O
O
INTERNATIONAL
O
O
O
O
O
O
O
O
O
FOOTWEAR
O
O
O
O
O
O
O
O
O
O
O
O
O
O
ACCESSORIES
O
O
O
O
O
O
O
O
O
O
Source: Sportswear market in India, Ernst and Young India report
2012
5
GROWTH DRIVERS
Young Population in India
•
464
•
430
Indian youth (in the age group 15 to 34 years) comprises over
34% of the total population.
This is expected to cross over 464mn by 2021 and forms the
core target group performance segment.
Shift to Increasing Discretionary Spends
353
Non- Discretionary
2001
2011
2021
2019-20
Discretionary
50
2009-10
50
60
2000-01
40
70
30
Growing Middle Class in India
Global
Strikers
Seekers
27
4
29
6
Increasing no. of sports
events in India
CAGR
21%
•
•
•
•
CAGR
17%
CAGR
12%
68
22
Aspirers
CAGR
12%
75
93
Deprived
2021
2011
Indian Premier League
Indian Hockey League
Indian Badminton League
Formula 1
CAGR
(2%)
6
PEST ANALYSIS FOR RELEVANT FACTORS
Political
Economic
VISUAL AWAKENING
 FDI in single brand retail raised from 51% to 100% , but with
30% local sourcing clause
 Former MD and CEO of Reebok India accused of a Rs. 870
crore fraud, leading to an acrimonious transfer of assets and
stock sale
 Home market lobbying lead to cut in Excise duty on
machineries for manufacturing from 7.5% to 5%, thus
encouraging local manufacturing
 The Sportswear market is expected to grow at a rate of 33% in
2014
 Growing middle class and its increasing Purchasing Power
leading to strong demand for the category
 Recent rupee depreciation cutting margins since most of the
products are imported
 Counterfeiting problem prevalent and bleeding the industry
 Consumer attitude and opinion changing in favour of
branded shoes
 Upward shift observed in lifestyle trends and enhanced
focus on fitness
 Recent success in Sporting Events leading to more
youngsters going for professional coaching
 Advertising and Publicity efforts have bought the category
into mainstream domain
 Breakthrough product innovations coming in the sector,
enhancing comfort, agility and durability
 Buyers shifting towards E-Commerce websites for value deals
 Social media systems becoming increasingly popular for
marketing to consumers
 Mobile platform being employed by players to reach out to the
target segment
Social
Technology
7
OUTLINE
1 Industry Overview- Indian Sportswear Market, PEST Analysis
2 Player Profiles (Nike, Adidas, Reebok, Puma)
3 Consumer Insights from Primary Research
4 SWOT Analysis for Puma
5 STP Analysis
6 Strategy for Penetrating the Target Market
8
PLAYER PROFILE – NIKE
Overview: Nike is the largest seller of athletic footwear and athletic apparel in the
world. Nike India Pvt. Ltd. (NIPL) is a subsidiary of US-based Nike Inc., and was
established in 2004 in India.
Key brands: NIKE, Converse, LunarElite+ and Star Chevron
Revenue: India’s contribution to Nike Inc.’s total worldwide revenues: NIPL generates
1% of the total revenues of the group.
Manufacturing: In FY11, contract factories in India manufactured 2% of the total
NIKE brand footwear. Nike also has manufacturing agreements with independent
factories in India to manufacture footwear.
Distribution: Nike sells its products to retail accounts, through NIKE-owned retail
stores and internet sales under its “Direct to Consumer” operations, and through a
mix of independent distributors and licensees, in over 170 countries around the
world.
NIKE in India
Nike does not own any
outlets in India.
SSIPL is the master
franchise of Nike in India
Association with one of India’s most popular sport- Cricket: Nike has renewed its 5-year contract (US$590
million) with the Board of Cricket Control in India, to continue to be the official sponsor and apparel licensee for the
Indian cricket team.
Product innovation: Launched the "DriFIT" apparel technology containing 62% cotton, 34% polyester and 4%
spandex, that has the capacity to contain sweating.
Online retail: Partnered with online retailers such as Myntra and Bigshoebazaar to expand distribution beyond the
conventional multi-brand outlets and large retailers.
9
PLAYER PROFILE- REEBOK AND ADIDAS
Overview: Adidas and Reebok entered the Indian market in 1995. Reebok
although owned by Adidas, runs as an independent entity. The companies sell a
range of products including apparels, footwear and accessories.
Key brands: Adidas has three brands in India, including the flagship brand,
Reebok and TaylorMade. The latter targets the golfwear market, while Reebok
and Adidas are known sportswear products.
Distribution: The players leverage upon their combined retail distribution of
1,800 stores across all three tiers of consumers.
– Adidas operates through 750 exclusive franchise outlets, and has
opened 125 new exclusive outlets in 2011 to strengthen its presence in
India.
– Reebok has over 1,000 stores across 325 cities and towns in India.
Joint Operating Model
(JOM)
 Adidas and Reebok
operate through a joint
model in India.
The two competing brands
have established an
agreement to not
cannibalize the market share
of each other, and aim to
increase their joint share.
Sports merchandising: Official sportswear partner for Force India, Reebok has dedicated a collection of apparel and
accessories inspired by the Force India F1 team. Adidas opened up a ‘Core Concept store’ in Delhi, which carries an
exclusive Sachin Tendulkar range, appealing to cricket fans.
Innovation: Reebok have introduced new footwear such as “Realflex”, "Easytone" and "Zigtech. Reebok is working
on a project to introduce a shoe priced at US$1 in rural markets.
Online retail: Reebok (www.shop4reebok.com) has started their online shop in India
Pricing: Reebok has adopted a pricing strategy to target both the premium and the lower-priced segment. However,
10
low-end products contribute significantly, comprising 70% of its sale volumes and 50% of its revenues.
PLAYER PROFILE- PUMA
Overview: Puma entered the Indian market in 2005, and has witnessed a CAGR of 40%–50% since 2006.
Key brands: Puma
Revenue: Puma have been growing at 50% y-o-y in India and is the number one brand in the country.
Manufacturing: Puma products are manufactured both in India and abroad. However, all products are designed
globally in Germany, London or Boston.
– Footwear: Puma imports a majority of its footwear. It has however, localized its products to suit the tastes
and preferences of the Indian consumers. Thus in 2007, it started manufacturing sandals, flip-flops and
floaters in India.
– Apparel: Apparel is manufactured locally, and a certain percentage is exported from India.
– Accessories: Accessories are imported from abroad to maintain a low cost base.
Distribution: The company has a strong distribution network with more than 165 exclusive outlets, approx. 200
large format stores, and over 500 dealer points in India.
Sports sponsorship: In 2012, Puma tied up with tow IPL teams Sunrisers Hyderabad and Rajasthan Royals. It is also
the official licensing partner for Ferrari and the supplier of team and race wear for Scuderia Ferrari
Product portfolio: The company plans to introduce its perfumes in India in 2012 leveraging its exclusive
manufacturing license with P&G.
Online retail and marketing: In 2011, Puma launched PumaShop.in selling footwear, apparel and accessories. The
company expects this ecommerce arm to contribute 10% of Puma India’s overall revenues by 2015. Nearly 40% of the
company’s ad spend goes into digital media.
11
OUTLINE
1 Industry Overview- Indian Sportswear Market, PEST Analysis
2 Player Profiles (Nike, Adidas, Reebok, Puma)
3 Consumer Insights from Primary Research
4 SWOT Analysis for Puma
5 STP Analysis
6 Strategy for Penetrating the Target Market
12
RESEARCH METHODOLOGY AND FRAMEWORK
204 Respondents
IN DEPTH INTERVIEWS
SURVEY DATA
28 Respondents
IDENTIFICATION OF KEY PURCHASE DRIVERS
AND PARAMETERS
MIND MAPS
31
INDIVIDUALS
PERCEPTUAL MAPS
PUMA BRAND
PERCEPTION
MULTI
DIMENSIONAL
SCALING
INDIRECT COMPARISON
OF BRAND PERCEPTION
KEY COMPETITOR
BRANDS
ANALYSIS OF
VARIANCE
IDENTIFY GAPS IN
CURRENT STP
PERFORMANCE CATEGORY SPECIFIC TARGETING
AND POSITIONING STRATEGIES
CONSUMER
AWARENESS
BRAND
RECALL &
SHARE OF
MIND
USAGE
PATTERNS &
LIFESTYLE DATA
PURCHASING
HABITS AND
INFORMATION
SEARCH
EXTERNAL
ENVIRONMENT
ANALYSIS +
CATEGORY
ANALYSIS
PERFORMANCE SEGMENT DRIVERS
RECOMMENDATIONS
13
CONSUMER INSIGHTS- ONE ON ONE INTERVIEWS
Why do consumers purchase
I am looking for a
shoe that provides
me comfort
I need a shoe for
exercise and rough
use
PURCHASE DRIVERS
Buying a good shoe
improves my
workout experience
What do consumers purchase
I would prefer a branded
shoe because it guarantees
performance
PRODUCT ATTRIBUTES
I look for the latest trends
I have owned the
same shoe for the
last five years
I like to purchase the
newest technology on the
market
CONSUMER INSIGHTS
When do consumers purchase
I buy shoes only
once in two to
three years
Makes a dual
statement- style
and good
performance
I buy whenever
there is a sale
My usage is limited
so I don’t buy new
designs too often
14
CONSUMER INSIGHTS- ONE ON ONE INTERVIEWS
How do consumers purchase
I take advice from
someone I trust
I prefer to go the
store and decide on
the spot
INFORMATION SEARCH
Online information
is often unreliable.
What do consumers look for when purchasing
I use these for long
periods, it must be
tough
Changing brands has
been a bad
experience
If a shoe is not
comfortable it is
annoying
Where do consumers purchase
I go only to
showrooms
I prefer buying at
large stores because
it gives me more
choice
I prefer trying on
various shoes for
myself
PURCHASE DRIVERS
I don’t mind paying
a higher price as
long as I get quality
CHANNEL CHOICE
I buy online
because deals are
better
I usually buy from
wherever is
suggested to me
15
DEMOGRAPHICS AND OTHER KEY PARAMETERS FOR PRIMARY RESEARCH
IN DEPTH INTERVIEWS:
 Students
 Gym members
 Gym Staff
 Housewives
 Professional Athletes
MIND MAP STUDIES :
 Students
 Gym members & Staff
 Housewives
 Professional Athletes
Female
21%
KEY SURVEY DEMOGRAPHICS:
Total survey respondents: 204
Further factored by:
 Age
 Gender
 Location
 Income (data not shown)
31-40
11%
> 40
6%
< 18
6%
19-24
29%
25-30
48%
Male
79%
International
, 5.9
Tier III , 14.2
Metro , 53.4
Age in years
< 18
19-24
25-30
31-40
> 40
Total
5.9
29.4
48.5
11.8
5.9
Male
2.9
26.5
38.2
7.4
2.9
Female
2.9
2.9
11.8
4.4
1.5
Tier II , 26.5
16
BRAND RECALL AND AWARENESS
Aided recall for performance
brands
PUMA
6%
WILLS
LIFESTYLE
1%
REEBOK
8%
100
100
100
98
ADIDAS
24%
91
91
57
44
55
NIKE
57%
Others
4%
Others ;
29%
Puma ; 19%
RESULTS FOR TOP OF THE MIND RECALL FOR
SPORTS/PERFORMANCE BRANDS
Nike ; 31%
Reebok ;
12%
Adidas ; 9%
PATTERN OF CURRENTLY OWNED SPORTS/PERFORMANCE
BRANDS AMONG SURVEY RESPONDENTS
17
AWARENESS ABOUT TECHNICAL FEATURES
% Awareness for various technical features across brands
70.6
66.2
60.3
29.4
19.1
23.5
22.1
19.1
7.4
Mobium
Zigtech
LunarGlide
FAAS
Bioweb
Clima Cool
Boost
Free
AirMaxx
KEY TAKEAWAYS:
 Poor top of the mind recall.
 High aided recall does not translate into purchase decision
 Awareness of Puma’s technical innovations is low
18
DECISION CRITERIA FOR PURCHASE PREFERENCES
ITEM
TOTAL SCORE 1
RANK
Comfort
747
1
Technical Features
729
2
Looks
726
3
Brand
708
4
Durability
693
5
Price
681
6
1-Weighted rank sum of all scores. Weights assigned in decreasing order of rank via responses to a question where respondents ranked parameters in their
order of preference. Scores calculated via Surveygizmo’s inbuilt analysis tool.
Key Takeaway: Category driven largely by credence and experience attributes and not by
search attributes
19
CONSUMER BEHAVIOUR ANALYSIS
Buying channels for Sports/Performance wear
67.7
35.3
35.3
27.9
17.7
4.4
Exclusive showrooms Large retail stores
Online
Factory Outlets
Specialised sports
stores
Others
KEY TAKEAWAYS:
 Brand specific channels dominate
 Online channels small but rapidly growing
 Online is a high growth segment which cannot be neglected
20
PERCEPTUAL MAP
 Utilises multi distance scaling
 Respondents were asked to rate eight different brands on two
parameters
 Technical superiority
 Looks and designs
 Participants provided a rating for each brand on these parameters
on a scale of 1-100.
 The average scores obtained for the brands were plotted pairwise
on a two by two axes with the intersection at (50,50) and
distances determined to construct the perceptual map as shown
in the following slide
21
PERCEPTUAL MAP FOR THE PERFORMANCE SPORTS INDUSTRY
KEY TAKEAWAYS:
High on
looks and
design
Low on
looks and
design
High on technical
features
Low on technical
features
Puma perceived largely only as a fashion brand.
For Puma to achieve a status comparable to that of Nike and Adidas, requires a better
perception of technical superiority
22
CONSUMER BEHAVIOUR ANALYSIS
Information sources for guiding purchase decisions
54.4
51
32.4
26.5
19.1
11.8
4.4
Manufacturers
advertisements
Online forums
Friends & Family
Gym
staff/trainers
Professional
athletes
In store sales
staff
Healthcare
professionals
Key Takeaways:
Category is driven by credence and experience attributes. Search attributes are often lower
in importance
23
CONSUMER INSIGHTS- EXERCISE FREQUENCIES
Others
11%
Walking/Light Jogging
33%
Gym/Fitness Training
22%
Basketball
3%
Football
7%
Tennis
3%
Running ( seriouss
runners)
14%
Cricket
8%
Emerging trend of fitness consciousness and running among consumers-significant
opportunity to specifically target this segment of the population through directed efforts
24
INSIGHTS FROM THE MIND MAPPING EXERCISE (REPRESENTATIVE)
Low Mainstream
Communication, Lack
of Social Media
Activity leading to
Poor Visibility
Brand Association
with Running
stronger than that
with team sports
Puma
Sturdy
Low Sales
Won’t Buy
Less Variety
Bad Football
shoes
No Ads
Known for its
fashion Quotient
Weak in colour
perception
Technological
Strength doesn’t
come out
Poor Brand
Strong Rivals
Visibility
Poor
Puma
Puma
Shoes
Tee
Athletics
Running
Sports
Running
Metal Tee
Usain Bolt
Usain Bolt
Basketball
Football
Jersey
Michael
Jordon
Olympics
Olympics
Athletics
Black
Tendulkar
Marathon
Strength
Party
Price
Ganguly
Sprint
Cricket
Formals
Material
Drogba
Casual jog
Money
Panther
Fashion
Puma
Sports
Fashion
Brand
footwear
Style
Flexible
White
Fancy
Elegant
Colours
Durable
Running
Expensive
Simplistic
Different
Lasting
Elite
Exclusive
Logo
showroom
Cut Shape
INDIVIDUAL BRANDS Vs IDEAL PROFILES
 Respondents were asked to rate their perception of the ideal
sports/performance product as well as four individual brandsNike, Reebok, Adidas and Puma on a scale of 1 to 7 on the
following parameters
•
•
•
•
•
•
Price
Durability
Technological Features
Brand
Looks and Design
Comfort
 The ratings were analysed by individual ANOVA followed by
Tukeys HSD Test to determine the source of variation for each
individual parameter
26
ANALYSIS OF VARIANCE- IDEAL vs OTHER BRANDS
WHETHER STATISTICALLY SIGNIFICANTLY DIFFERENT FROM IDEAL
NIKE
PUMA
REEBOK
ADIDAS
PRICE
No
No
No
No
DURABILITY
No
Yes
No
No
TECHNOLOGIC
AL FEATURES
No
Yes
No
No
LOOKS and
DESIGN
No
No
Yes
No
COMFORT
No
No
No
No
BRAND
No
Yes
Yes
Yes
Thus Nike and Adidas are seen to be closer to the ideal brand profile than Puma. The
difference arises significantly from inputs on price, technological features and comfort as well
as brand positioning
27
ANALYSIS OF VARIANCE- PUMA vs COMPETITOR BRANDS
NIKE
REEBOK
ADIDAS
PRICE
Yes
Yes
Yes
DURABILITY
Yes
Yes
Yes
TECHNOLOGICAL
FEATURES
Yes
Yes
Yes
LOOKS and DESIGN
No
Yes
No
COMFORT
No
No
No
BRAND
No
Yes
No
Thus the overall perception of Puma differs significantly from that of Nike and Adidas on
three main parameters: Price, Durability and Technological Features.
28
OUTLINE
1 Industry Overview- Indian Sportswear Market, PEST Analysis
2 Player Profiles (Nike, Adidas, Reebok, Puma)
3 Consumer Insights from Primary Research
4 SWOT Analysis for Puma
5 STP Analysis
6 Strategy for Penetrating the Target Market
29
SWOT ANALYSIS FOR PUMA’s Product and Marketing Strategies
Strengths
 Strong positioning in Sports Lifestyle Category
 Products seen as trendy and fashionable- important
criteria driving purchase decisions
 Widespread presence throughout the country – large
store network and strong sales presence
 Poor association of brand with sports
Weakness
 Marketing campaigns limited in scope and diffused
 Limited presence on social media compared to
competitors
 Unable to communicate technical superiority
effectively
 Efficient sourcing through WorldCat
 Growing running and gym culture across Metros
and Tier 2 Indian cities
 Opportunities to leverage technical superiority for
positioning in performance segments
 Positioned to leverage its partnership/affiliation
with RFL and football clubs ( Arsenal) to expand
presence in Indian market
Opportunities
 Entry of several focused competitors into the
performance segment such as Decathlon coupled with
growing consumer awareness
 Susceptibility to economic fluctuations and sourcing
variability
 Rival brands already have extensive foothold- can
expand rapidly
Threats
30
OUTLINE
1 Industry Overview- Indian Sportswear Market, PEST Analysis
2 Player Profiles (Nike, Adidas, Reebok, Puma)
3 Consumer Insights from Primary Research
4 SWOT Analysis for Puma
5 STP Analysis
6 Strategy for Penetrating the Target Market
31
SEGMENTATION ANALYSIS
13.2
12.9
11.6
12.6
10.2
7.6
Broadly Target A and B Class
Urban consumers- 32.6% of
Indian urban population
9.8
8.6
5.1
4.7
2.6
1.1
A1
A2
A3
B1
B2
C1
C2
D1
D2
E1
E2
E3
Population trends indicate that
a larger bracket will fall into
these categories in coming
years increasing the size of the
pie
Current SEC Urban Classification ( adapted from the Marketing Whitebook 2013)
32
SEGMENTATION AND TARGETING
Performance sportswear usage type linkage
Emphasise
style over
health
AGE GROUPS
Balanc
e style
and
health
Exercise
mainly for
health
benefits
Serious
athletes
Consumer Profile
School and college students- Large untapped market.
Usually just starting out and undecided on brand
EXPERIENCERS
13-22 years
Late teenagers- Highly status conscious. Tend to be driven
more by social acceptance than health. Prefer sports over
other forms of exercise
21-25 years
25-40 Years
STRIVERS
Young professionals- seek exercise mainly for social
benefits and less for health reasons
Working Professionals- approaching middle age, seeking
to maintain health and avoid lifestyle disorders. More
likely to be affiliated with gyms. Also explore alternate
health techniques such as yoga, aerobics etc.
ACHIEVERS
Homemakers – exercise as a social activity, prefer light
forms of exercise such as walking, cardio in the gym
Working professionals – tend to be highly health
conscious. Awareness of lifestyle disorders is high
>40 Years
NA
FULFILLEDS
Retired- usually empty nesters. Seek mild to moderate
forms of exercise
NA
33
OUTLINE
1 Industry Overview- Indian Sportswear Market, PEST Analysis
2 Player Profiles (Nike, Adidas, Reebok, Puma)
3 Consumer Insights from Primary Research
4 SWOT Analysis for Puma
5 STP Analysis
6 Strategy for Penetrating the Target Market
34
MARKET STRATEGY
Emphasize on Health and Fitness
EXPAND MARKET
SIZE
Catch customers young, at schools
Offer Innovative Pricing like EMI’s
Loyalty Programs, Exchance Offers
MARKET
STRATEGY
DEFEND MARKET
SHARE
Awareness about Technological brilliance
Integrated Mass Media campaigns
Product Line Extension-Fitness Accessories
Exclusive Performance Outlets
Digital Marketing
ENHANCE
MARKET SHARE
Mobile Apps
Tie ups with Gyms, Sports Clubs
Corporate Assosciations
35
SEGMENT SPECIFIC POSITIONING STRATEGIES
Marketing mix elements
Experiencers
Product: Design oriented, focus on technical attributes and style
Price: Aggressive
Promotion: Emphasis on youth, brand ambassadors
Place: In school and college tie ups
Strivers
Product: Focus on trendy, style and design
Price: Captive Pricing
Promotion: Focus on trendy image, youth directed fun oriented
campaigns
Place: Tie up with gyms, running clubs
Achievers
Product: Focus on technical superiority and health benefits
Price: Premium pricing
Promotion: Integrated campaigns emphasising health benefits
Place: Corporate tie-ups. Focus on premium channels and high end
Fulfilleds
Product: Health benefits and ease
Price: Captive Pricing
Promotion: Promote ‘wellness’ experience, endorsement by healthcare
professionals
Place: Customer centric, tie-ups with hospitals and medical practitioners
36
THE YOUTH SEGMENT- UNTAPPED POTENTIAL
With Brand Association very strong in the category, it is very important to target the
consumers young and engage with them to build Brand Loyalty and generate Word
of Mouth
Schools- Catch them Young
Colleges- Engage, Build Loyalty
Sponsor school teams at
Reputed Schools in Metros
and Tier 2 cities
Sponsor College Sports Fests,
distributing Footwear to Opinion
leaders and encouraging sales by
giving discount coupons
Establish PUMA running
academy to select, train and
promote young running talent
Engage with the target audience
across various social media
platforms like Facebook, Twitter
etc by giving Fitness Tips
Organize Sports Quizzes across
Schools for a stronger brand
association with sports
Organize Leadership Series events
where renowned Indian
sportspersons interact with college
students
37
PROMOTION STRATEGIES – MASS MEDIA
It is important to counter the mass media blitz created by Nike
through its Bleed Blue Campaign, Adidas through is ‘Impossible is
Nothing’ campaign
Tagline: Technology for Race
PRODUCT PLACEMENT: In Sports based Movies to capture widespread attention of
the target group
Title Sponsorship: Bid for Title rights for tournaments for non-cricketing sports like
Badminton, Tennis etc
Brand Ambassador: Bring Usain Bolt to India for a promotion trip. Will help
garner a lot of free media publicity
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ATL Advertising-Key Message, Storyboards and Strategy
Technology for the Race
Yuvraj running on
a mountain
stretch
He then shifts onto
an Icy Landscape
for running
Yuvraj talks about the
ease and comfort in
running with the shoe
in all terrains
Focus shifts on
highlighting the
Technology gone
into the shoe
Brand Mobium
highlighted as the
‘Shoe for the Human
Race ‘
Message: PUMA’s shoes are high on Technology and provide comfort even in extreme running conditions
Rationale to hire
• Youth Icon , one of the most
renowned non cricketing sportsperson
• Olympic medalist, holds a lot of
credibility
Rationale to retain
• World Cup Winner, in sync with our
TG
• Perceived as “manly” and sporty
Untapped Brand Potential
Exclusive association with PUMA
Brand
Ambassador
Brand
Ambassador
SALES STRATEGIES
Exclusive
Performance
Outlets
• Designate some outlets in Metros as Exclusive for sports wear
• They act as Experience Zones for consumers to get a feel of the product range and build awareness
• Provide Fitness tips and make them as Touch Points for On-Ground Activation Programs
Cross Selling
• Bundle products based on usage, Ex: Cricket shoes with Cricket Bats
• Leveraging the strength of a wide range of Sports Apparel
Upselling
Sales Force
Training
Gyms and
Sports Clubs
• Introduce EMI schemes for shoes above Rs. 5000 to expand the market
• Rs. 500 discount on returning old branded shoes to poach customers from others and maintaining
own brand loyalty
• They should have adequately technical knowledge to handle customers who have good knowledge of
the category
• Survey results show that after family & friends, they are the most trusted source for information
• Using coaches as opinion leaders to drive brand promotion
• Ensuring Product Display and bulk buy incentives
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DIGITAL MARKETING STRATEGY
Puma- Technology for Race
Tie up with Sports sites like Cricinfo, Goal.com to
display adds and run contests during major sports
events.
•
•
•
•
• Currently Puma has only an international channel
• Introduce a new Puma India Performance channel
• Video share on running tips and unforgettable
moments in sports history
• 20 sec non-skippable Ads on Youtube videos to
garner viewership of Target Segment
• Do Search Engine Optimization to ensure that Puma
appears when somebody searches for “Running
Shoes”
• Ensure visibility of latest performance wear on
homepages of online retail website like Flipkart,
Jabong, etc to drive purchases
Strong need to increase number of likes/shares
Get product testimonials/ product stories
5 users get a prize each week
Lucky draw to distribute invites to party with Yuvraj
Singh & Saina Nahiwal
• Post Exclusive Advertisements
• Post fitness tips
Identify Alfa Influencers in the Target Group
• Users who regularly post on the wall of FB page
• Users who have a large group of friends
• Users who are active on other platforms and have
followers there (blogs/twitter)
• Promoting products via non-monetary incentives
such as giving products before launch for trials to
such influencers & gather feedback
Since, we aim to target the age group of 18-30, digital media is the most preferred form as an average youth spends
more
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time on the internet than any other communication medium available
PROMOTION STRATEGY – MOBILE APP
Smart Phone Penetration in
India
Calculates the
distance run,
time taken,
speed and
calories burnt
Assigns “Bolt Score” to
each run based on various
parameters. Compete with
friends and professional
athletes - individually or in
teams.
Gives Purchase
recommendations,
nearest Puma store
details, latest
arrivals
Share runs,
achievements,
leaderboard positions,
purchases over social
media
Income
Sec D
Sec C
Sec B
RUN
Sec A
BOLT SCORE
Age
4%
6%
8%
18%
PUMA STORE
Source: Nielsen Informate Mobile Insights
Smartphone Adoption high in the age
group of 18-30
On the lines of “Nike Fuel”, Puma can develop a smartphone app and a performance measurement unit of
its own- “BOLT”. An iOS and Android running app. The same can help in
• aiding recall of the brand
• establishing Puma as a sports brand.
• communicating new products and promotions.
• suggest products to users based on performance patterns
PROMOTION- IMPROVING ENGAGEMENT WITH RFL
 Improve engagements with local RFL Chapters through short
term activations and one off events
 Combined PUMA sponsored teams for competitive running
events including PUMA Urban Stampede
 Bundle RFL memberships with purchases of PUMA products
 Chain premia for RFL members- co branded PUMA card
 Long term Mentoring programs:
 By brand ambassadors for RFL chapters
 By RFL members for younger audiences
 Student version of Urban Stampede for schools and
colleges in association with RFL
Anu Vaidyanathan
Shayamal Vallabhjee
Girish Mallya
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CASE SUMMARY
Topic
Insights and Strategy
Industry
Overview
4000 crore industry growing at a CAGR of 33%. Four Major Players- Reebok, Adidas, Nike, Puma share 98% of the market
Growth Drivers: Increasing youth population, increasing discretionary spends, increasing number of sports events,
growing middle class in India
Player Profiles
Nike: Leverages its strong association with Cricket and is known for both product technology and style
Reebok: Once, the market leader, losing market share now due to damage in brand equity on account of financial fraud
Adidas: Wide distribution, strong association with Sachin Tendulkar, manages Reebok too so looks to avoid cannibalization
Puma: Known more for style quotient than technology, has lifestyle product image, growing strongly in the segment
Expand
Market
Strategy
Poor top of the mind recall, awareness of Puma’s technical innovations is low, perceived as a fashion brand
Technology and Comfort are category drivers, sales driven through exclusive outlets though online sales are growing well
Trend of fitness consciousness increase in running, friends & family and sales staff are important influencers
Children, professionals living in Metro, Tier-2 cities are the target segments
Target schools and colleges to catch them young, sell shoes on EMI’s to rise over price hurdle
Emphasize more on Health and Fitness to increase the category size
Brand association with Energy Drinks to create a sports related positioning
Defend
Consumer
Insights
Design loyalty programs, promulgate exchange offers to generate repeat purchase
Raise awareness about technical brilliance of the products as that is not getting conveyed to the customers
Run integrated Mass Media campaign to target the ideal segment so as to build Top of the Mind Recall
Go for product line extensions in fitness accessories to capture incremental sales
Enhance
SWOT
Strength: Strong positioning in Sports Lifestyle Category, widespread sales network
Weakness: Poor association with sports, low digital presence, inability to communicate technical superiority
Opportunity: Growing running and gym culture, potential tie ups with EPL to boost brand association
Threat: Entry of focused brands, economical fluctuations, others have larger distribution network
Launch Exclusive Performance stores in metros to generate awareness, use them as touch-point for activations
Digital Media campaign to bridge gap with competitors and reach out to TG, mobile Apps for more engagement
Tie ups with Gyms to launch Puma Fitness Zones for providing health and fitness tips
Collaboration with corporates through running initiatives to build long term relationship
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Thank You
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