Consignment goods- as in the case of Alexander McQueen, puma sells the |Limitation of products –Puma needs to increase their markets by providing|
|license to another to designer but is not owned by the consignee until the|more merchandise in different areas, for example, making a name for them |
|goods are paid for. Alexander McQueen can then put his name on the puma |in the formal wear sector of the clothing market. |
|product as in the case of Alexander McQueen Puma® . | |
|Sponsorship- Puma provides support to soccer and tennis events in South | |
|America and in parts of the United States, following a popular trend by | |
|sport merchandise companies. | |
|Acquisitions- Puma has made significant acquisitions of small shoe | |
|manufacturing international company such as Athletic Logo brand. | |
|Technology- Puma Tennis shoes are now light weight and colognes long | |
|lasting which are some example of Puma increasing their technological | |
|advantage. | |
Puma’s Development
Puma is a company which literally started off from nothing. Presently, Puma has shown its strength and its ability to compete with larger and more resourceful brands such a Nike and Adidas.
The Corporate Development Plan is devised into four phases:
• Phase I: 1993
o Establish a solid financial statement
• Phase II: 1997
o Reposition the brand
• Phase III: 2002
o Growth plan
• Phase IV: 2006
o Multi-category Sport lifestyle brands
Furthermore, in the development of Puma came a new Mission statement that is to become the most desirable Sport lifestyle company.
Their Brand Strategy
• Bringing distinctive designs and a global outlook by blending influences of sport, lifestyle and fashion
• Maintaining vigilant watch over distribution channels and also, solid guidance and strict alertness for licensee.
Furthermore, Puma did not become successful through the failure of its competitors. Instead it worked on some key aspects to win its customers, hence increase it market share and overall profits.
Puma started by increasing Global brand sales which means investment and development in outlets in other countries or even selling licenses to other companies to manufacture puma products. This initiative gave puma a great advantage and made their product even more popular on the international markets.
Secondly, Puma strategize their goals and decrease the overall cost of Product development and design expenses without affecting the quality of its products; This lead to an annual increase in earnings per share for the company.
Thirdly, in terms of Regional Development, Puma faced a tough consumer environment due to each consumer demands, competition from larger and smaller companies which provided the same product and manufacture cost due to oil prices etc.
However, it still invested millions of dollars into product development in terms of quality and uniqueness in the American and Asian markets.
In addition, the outlook for 2009 and beyond are very optimistic, since Footwear orders are up currency adjusted by 6.8% to € 703.5 million, Apparel by 0.6% to € 393.1 million and Accessories by 8.4% to € 66.7 million. Given the results achieved so far this year the Puma management has raised its sales guidance for the full-year outlook from a single-digit to a mid to high single-digit currency adjusted growth. Also, as already announced, Puma will continue with its brand investments as planned in order to explore the long-term growth potential.
Lastly, we live today in a world that is growing together, that changes ever faster, and that offers information in abundance. Puma is convinced that in such a world a brand's success depends on more than the quality of its products. Behind the products there must be a brand with its own unique personality. Only then will it distinguish itself from the competitor's.
Puma’s Final Analysis
After a legendary feud between Adolf Dassler and Rudolf Dassler, Rudolf decided to stem off and started his own company--Puma. Puma first started as a national organization offering its services only to the German population. Its products were often seen worn by the West German Foot Ball team and other popular German sports icons of that time. By 1950 Puma decided to go offshore and became a Small and medium sized enterprise (SME) establishing export ties to the United States. This began a rival between Puma and Adidas (Adolf’s company) which spanned for a few years iced with copyright and infringement lawsuits.
Albeit the ups and downs of Puma, the 1960’s was the spawning of Pumas Multinational appearance as it began to appear not only in the United States but in other countries as well. However, because Puma’s margin of profit began to decrease, they decided to go public offering stocks on the Munich and Frankfurt stock