PUMA Running Shoes
Market Assessment
Market Facts/Trends:
1) Rapidly
increased
sales
of
jogging/running shoes
2) 25~64 year age of users are main
consumers
3) Female buy running shoes more than
male
4) Annual household income gets higher,
more running shoes are purchased by the
household.
5) Education of household is higher, more
running shoes are purchased by the
household
Marketing Plan Executive Summary.
Reference as:
 Sales of Jogging and running shoes:
1990
$1,110millions
upto
2010
$2,423millions
 The age of user:
25 to 34 years old
25.9%
35 to 44 years old
24.0%
45 to 64 years old
24.5%
 The sex of user:
Male
44.6%
Female 55.4%
 Education of household head:
Some college 30.9%
College graduate 58.1%
 Annual household income:
$35,000 to $49,999 14.1%
$50,000 to $74,999 19.5%
$75,000 to $99,999 19.5%
$100,000 and over 31.0%
Reebok is one of the American-inspired,
global brand that is loved by global
consumers. It provides a variety of
challenge and creativity sports products
specially its running shoes.
New Balance is an only domestic
manufacturing company in US. It
provides better quality on running shoes
and it has its loyalty consumers.
Consumers also respect company’s
environmental mission that all the shoe
box materials are made from 100%
Recycled paper 100% soy-based ink.
Competition:
1) Reebok
2) New Balance
Hurdles:PUMA has competitive price to
compete Reebok which has quite higher
pricing on running shoes field.
Meanwhile, PUMA can also compete
New Balance by its excellent design
which
is
more
loved
by
fashion-followers. PUMA can also hold
some
events
which
presents
environmental protection awareness to
compete with New Balance.
PEST Analysis:
Based on the following political, economic, sociological, technological policy, rules
and statics. PUMA will consider the marketing strategy including product and price
which is fittable for consumer’s incomes, place and promotions which is available to
attract consumers.
Political:
Sociological:
•Growth in wind and solar, is paid close •Be welcome from Middle to high
attention by politicians.
income household people
•US households are facing an average tax •More people care about health, start to
increase of $3,446.
Economic:
•Economic growth: real GDP rose +0.1%
in Q4 2012 after increased 3.1% in Q3
2012
•Reflecting growth in professional and
business services,
durable-goods, manufacturing, and trade.
•Retail Trade of Percent changes in
Chain-Type Quantity indexes is 0.2%
rose
•Personal Income -3.6 in Jan 2013
•Deficit increased to $44.4 billion in Jan
2013
•Unemployment rate 7.7% Feb 2013
•Productivity deduced 1.9% in Q4 2012
jogging or running
•Activate users with huge range of age
from 25-64 years old
•More popular by people who has high
education from college
•More people care about fashion and high
quality products
Technological:
•Federal Research and Development
totally spending $149,295 million, and
science and technology spending $14,749
million
•Social media continue to welcome the
use for marketing communications
•Website, blog will be used for promoting
campaigns. Mobile technology will also
be used to promote company’s new
products, events.
Budget
Budget: $20 million to launch the marketing implementation for PUMA Running
Shoes project in all aspects.
Marketing P- Set Goals & Measurement
Sales of $2MM in Y1, $5MM in Y2, $10MM in
Business Units Financial Goals:
Y3, $3MM in Y4
The goal for market development strategies is
Strategic Marketing Goals:
aimed at noncustomers of PUMA, to pursue
them purchase PUMA running shoes. On the
other hand, the goal of market penetration
strategies is aimed to obtain more amount by
current PUMA consumers.
The goal for the first year launch is aimed at
Tactical Marketing Goal:
increase the awareness of the new PUMA
running shoes by creating efficiently promotion
with consumers and check the goal .
Target
Target Segment 1:
The active running consume
Running is the most important purpose
for the active running consumer. A
running shoe which is flexible, tighter in
the toe area is always be desired by the
Persona profile
Lina, 23 years old, an university senior
student studying business, living in
California now.
She loves running in the morning and she
also loves nature, listening to the music
running consumer. The running consumer
are enjoying running / jogging when they
choose a well-fit and comfortable running
shoe. Because if a running shoe is not
fittable, it can make the running
consumer uncomfortable, even cause pain
and injury. Parks, Beach side, streets are
the most popular places which runners
choose, a good running shoe with
fast-speed, absorbing impact of the sole
and good-looking design is always
desired by these consumers to adapt for
outside movement.
Target Segment2:
The fashion-following consumer
These consumer are strongly fashion
followers. They dress well and are
keeping up with the latest fashions to
ensure that their personal reputation is
always high and stylish. They keep an
eye on the fashion elements. For instance,
the stylish design with comfortable
materials and popular color .
They dislike doing running or exercises,
however they are keeping purchase new
running shoes once the new style is
launched, in order to ensure that they are
well-informed and up-to-date. Fashion is
the most important factor in their daily
life.
and yoga.
She likes drinking Starbucks and also
sometimes “cha for tea” because she
cares about health. She uses MARC
JACOBS bags, wearing Tory Burch shoes
and Abercrombie cloths. She also loves
Organix hair care products and healthy
food, so Trader Joe’s is the best loved
supermarket for her to purchase organic
food.
Persona profile:
Alex, 30 years old, a businessman
working in the fashion industry.
He loves keeping in touch with friends,
sometimes they share fashion ideas
together, sometimes they show the
fashion stuffs they have owned. He wears
CK and carries COACH.
He likes reading magazines specially
fashion magazine, so that he ensure that
he is always informed with the latest
fashion, such as VOGUE.
He is drinking Starbucks coffee everyday
to keep inspire and passion. He likes
using iPhone, and he installs the amazon
application because he likes purchasing
new and fashion items on it.
He dislike running a lot, he only loves his
ford car driving outside, but he loves
PUMA running shoes.
How you plan to reach your target
For Target Segment1: The active running consumer
Positioning Statement
Key Message
To people who are always To the active running
actively running, PUMA consumer segments, the
offers a most fittable message would need to
running shoe with well- present the image as
design to enhance your fittable and well-designed
sportlifestyle passion and when it comes to PUMA
joy.
running shoes.
Media Selection
PUMA social club is the
specific social club for
PUMA including news,
media, events, shopping. it
is also an micro-site of
PUMA. It presents the
lifestyle while people are
wearing PUMA. Others,
such as Jogging magazine.
For Target Segment2: The fashion-following consumer
Positioning Statement
Key Message
To people who are always To the fashion-following
keeping an eye on fashion, consumer segments, the
PUMA offers excellent message would need to
design to support you stay present fashion, stylish
up to date with the latest when it comes to PUMA
fashion.
running shoes.
Media Selection
It will be recommended to
have
the
marketing
communication on fashion
magazines and jogging
magazines. Social media
will be supported for
promotions. Advertising
will be presented on TV /
website, or magazines
such as VOGUE, NYLON
Sample Market Communication and Spokesperson.
The first sample of a marketing communication illustrates how PUMA can acquire
new consumers:
“PUMA LOVE ME”
The second marketing sample demonstrates how PUMA will communicate with loyal
consumers:
“I LOVE PUMA”
Spokesperson:
AnnaSophia Robb, 20 years old, born in Denver, Colorado,U.S.
She is an actress and singer. Her famous drama "The Carrie Diaries" which support
her be popular in young people segmentations.
She could be the best match as a spokesperson for the running shoes since she is
passion, active, challenge. On the other hand, she is also fashion, joy, elegant.