PUMA analysis
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Transcript of PUMA analysis
Garcia | Luyong | Mendoza | Patriarcha | Pelayo| Siraj
Company Profile•A Germany-based company engaged in manufacture of sporting
equipment, operating worldwide through its subsidiaries.
Division of Operations•Footwear range: cross training, motor sports, running,
soccer, tennis and other activities.
•Apparel line : t-shirts, track jackets, pants, and hooded sweatshirts.
•Accessories: backpacks, belts, headwear, socks and utility bags.
Products
FAMOUS ENDORSERSU
SAIN
BO
LT Fastest man on earth.
Six-time Olympic gold medalist and World Record holder at 100m (9.58s), 200m (19.19s) and 4x100(36.84s).
Only person to defend the gold medal at 200m.
SERE
NA
WIL
LIAM
S Professional American tennis player.
She became the world no. 1 for the first time on July 8, 2002.
Current ranking: no.4
LEXI
TH
OM
PSO
N At 12, she became the youngest player in history to qualify for the U.S. Women’s Open.
2011- youngest professional golfer to win a professional tour event (2011 NAVISTAR LPGA CLASSIC).
Improved Version: Mission• At PUMA, we believe that our position as the creative
leader in Sport lifestyle gives us the opportunity and the responsibility to contribute to a better world for the generations to come.
Improved Version: Vision• To generate a better world that would be safer,
more peaceful, and more creative than the world we know today.
VALUESFAIR
HONESTWe believe that by staying true to our values, inspiring the passion and talent of
POSITIVE
CREATIVEour people, working in sustainable, innovative ways, and doing our best to
SAFE be Fair, Honest, Positive, and Creative, we will keep on making the products
PEACEFUL our customers love, and at the same time bring that vision of a better world a little closer every day.
Macro Environment: PESTEL Analysis
Opportunities Threats
Political forces Outsourcing Employment
Environment protection
Environmental IssuesTrade Restrictions
Tariffs
Economic forces Stable economy of Asia Import/export conditionsGNP and GNP growth rates
EMEA crisisAmerica's economy is
slowing downSocial/Cultural forces Lifestyle trends
Increase in popularity of sports
Misunderstanding with other cultures
Opportunities Threats
Technological forces R&D ActivitiesAutomation
Global CommunicationDevelopments in own or
related industry
Number of competitors who have online shopping
services.
Environmental forces Use of environmental friendly materials
Series of sustainability goals, pledging to cut its carbon emissions, waste
and water usage resulting from the production of
products and services by 25 percent by 2016.
Legal & Regulatory forces Government industrial policies
Antitrust & mergers
PUMA’s Managing Director
Managing Directors
Klaus BauerChief Operating
Officer
Franz KochChief Executive
Officer
Stefano CarotiChief
Commercial Officer
Antonio BertoneChief Marketing
Officer
Reiner SeizChief Supply Chain
Officer
PUMA’s Administrative BoardJochen Zeitz (Chairman of the Administrative
Board)CEO of the Sport &
Lifestyle Group of PPR, Paris, France
François-Henri Pinault (Deputy Chairman of the
Administrative Board)Chairman of the Board
and CEO (Président Directeur Général) of PPR
S.A., Paris, France
Todd HymelChief Operating
Officer (COO) of the Sport & Lifestyle
division of
Guy Buzzard (Employees' Representative)
Key Account Manager (Sales) of PUMA United
Kingdom Ltd., Manchester, England
Jean-François PalusDeputy Chief Executive
Officer and Chief Financial Officer
(Directeur Général Délégué/Directeur
Financier) of PPR S.A., Paris, France
Thore OhlssonPresident of Elimexo
AB, Falsterbo, Sweden
Michel FriocourtDirector Legal
(Directeur Juridique) of PPR S.A., Paris, France
Bernd Illig (Employees’
Representative)Specialist IT User & System Support of
PUMA SE, Herzogenaurach,
Germany
Martin Köppel (Employees’
Representative)Administrator IT
Microsoft Systems of PUMA SE,
Herzogenaurach, Germany
S• Good liquidity of assets• Low selling price than other competitors• Eco-friendly products• Increase on market share of shoes and accessories • Puma has grown substantially over recent years, and has experience global expansion.• Strong financial capabilities• Core competence involving its use of information technology• Has strong ethical values and ethical mission and vision statement.
W• Very short range of target market• Few promotional activities • Low working capital• Low total assets• Low market share • Low asset turnover• Not well known • Weak brand image
O• Stable economy of Asia• Transparency on financial record• Partnership with famous shoe designer • Strong presence in sports and fashion market • Backed and supported by PPR• Endorsers winning on olympics and world cups • Having customer loyalty programs• Possible Market in India
T• EMEA crisis• Americas economy is slowing down• Misunderstanding with other culture• Decrease in market share prices• Slow adaptation to technology towards growth• Decrease on market share of apparel • Government policies (taxes)
OPPORTUNITY THREAT
STRENGTH
Eco-friendly productsHas strong ethical values and ethical mission and vision statementEndorsers winning on Olympics and world cups
Puma has grown substantially over recent years, and has experience global expansionStrong financial capabilities
WEAKNESS
Collaboration through different shoe company such as Cobra and TretornOpen more store (online or store outlet)Possible market in India
Retail sector is becoming very competitive and consumers are highly price sensitive
Jamaica Olympic Association, BMW motorsport, soccer and rugby teams , Alexander McQueen Mihara Yasuhiro Sergio Rossi Impahla clothing,Distributors,Wholesalers
Licensing,Retail,Bring me back binRetail 2.0
BrandSubsidiariesLifestyle Working CapitalLabor Force
Puma Creative
Fair
Honest
Customer Oriented
Athletic, active eccentric, individualistic and bold
Retail 2.0 Gift couponsGives Value to CustomersUpdates customersTransparency
By Region:
EMEA, ASIA PACIFIC, AMERICA
Ages 20’s to 30’s
Class A-B
Store OutletsOnline Store or Web SalesPuma Franchises
For the year 2011Estimated Break Even point = 2373.5644 EurosGross margin % =49.6%EBIT % = 8.6%EBT% = 6.3%
Saleswholesale (2407.2) 80retail (361.08) 12e-com (240.72) 8
Customer Segment PRIMARY SECONDARY
Age 20-30 7-19; 30-45
Gender Male, Female
Social Class A, B A - C
Behavior Athletic, active, eccentric, individualistic, bold and creative consumers who admire originality
Sales (By Region)
Asia/Pacific (750)
America(1100)
EMEA(1350)
In million Euros
Value Proposition
• Committed to working in ways that contribute to the world by supporting Creativity, SAFE Sustainability and Peace, and by staying true to the principles of being Fair, Honest, Positive and Creative in decisions made and actions taken.
• Customer Oriented – Focused on giving the customers wants.
PUMA Creative
• The creative factoryPaint, Patch, Stitch and Create
-- “we supply the materials and you supply the imagination. ”
– 17 Creative Factories– Athletic, active, eccentric, individualistic, bold and
creative
• Boxpark, cape town, Istanbul, Moscow, Mumbai, Bangalore, Belgrade, Bratislava, Bucharest, Budapest, Dubai, Kiev, new Delhi, Prague, Sofia, Warsaw and Zagreb.
PUMA Creative Factory ‘Built For One’ UkraineThe iconic PUMA T7 Jacket continues to inspire creative minds from all around the world! Now it will also help to fight against AIDS.
Puma Creative Videos
Puma Creative Videos
Puma Creative Videos
Puma Creative Videos
Distribution Channels
Online Store Puma Store Outlet Franchises
• 7 PUMA stores in the Philippines-Alabang-Zapote Road Alabang, Phil-Ayala Avenue Makati City, Phil 1224-EDSA corner North Avenue Makati City, Phil 1105-Bonifacio Global City Taguig City,
Philippines 1674-Filinvest Corporate City, Alabang Muntinlupa City,
Philippines 1770
Official Puma stores
- Lapasan Street Cagayan De Oro City, Philippines - Mandalagan Street Bacolod City,
Philippines 6100
- 697 PUMA Retail Stores- 328 PUMA Outlets
Customer Relationship• Gives value to their customers
– Assist during and after sales– 50% - 60% discount to regular customers
• Customer points-Every purchase, there will be a certain number of points depending on the price of the product. After he crosses a certain point level, he would be entitled to a gift from the company or choose a product of a certain value from the range.
Retail 2.0• In five words, it is
described as: Welcoming, Surprising, Colorful, sustainable, and above all else, Joyful!
• The strategy behind the concept?– The store provides an
exciting and fun shopping experience for the consumers, with product being the hero.
Retail 2.0
• Is this also reflected in terms of sales?– YES! The focused ranged and the key item strategy
are driving higher sales on the same space. Overall, the new retail 2.0 store experience is delivering very good financial results.
• Puma promotes the health and safety of the consumers as well as the protection and preservation of the environment.
• Respect and equality, regardless of race, creed, age, sex, social origin, political views, sexual orientation or position.
• Gift coupons and vouchers– People would have the facility to buy these vouchers and present
them to their dear ones. This would be a good way to reach out towards newer customers through existing ones.
• Puma keeps costumers up-to-date about new possibilities, designs etc. This can be done via advertising.
• Shows clear records of financial reports
By Product
• Quality- The durability and consistency of the product
• Convenience- Ease of use
Revenue Streams
Sales
wholesale (2407.2)retail (361.08)e-com (240.72)
In Million Euros
Sales
Puma Brand(2701.8)Non - Puma Brand(300)
In Million Euros
Key Resources• Tretorn and Cobra Golf (subsidiaries)
• Lifestyle:-PUMASocial, Black Label, Timepieces, Clyde,
Mihara,Fragrances, creative factory
• Working Capital of 862 million-Consolidated sales increase by 6.1% to € 820.9 million.
• 10,043 employees
DISTRIBUTORS
Asia - Pacific (8) America (10) EMEA (25)
Key Activities
• Retailing
• Eco-friendly– Bring Me Back Bin– Clever Little Bag– PUMA Re-Suede
• Back On The Attack
• Licensing
What is the Bring-Me-Back Bin?1. Collect all the old shoes
and clothes that you don’t want anymore (even the non-PUMA stuff).
2. Drop on the PUMA bring me back bin
3. Star feeling really good about yourself
PUMA says: “With Bring Me Back Program, materials are put back in the right place. This way we don’t steal from nature, but borrow. And borrowing is a good thing.”
PUMA Bring Me Back Program? Why?
• PUMA is dedicated to making a smaller impact on our earth. The Bring Me Back program is one way we do that. We’re taking what would normally be trash, and breathing new life into your old sneakers, used t-shirts, and last season’s tote.
• By taking old clothes and re-using, re-cycling, or re-purposing them, we mitigate the amount of virgin material that would otherwise be used to make new products. This partnership with I-Collect creates a closed-loop system that diverts product from the landfill, and becomes a new product.
Clever Little Bag
PUMA “CLEVER LITTLE BAG”
• Cutting-edge sustainable packaging and distribution system by renowned industrial designer Yves Béhar, PUMA set new standards within the retail industry. The new innovative solution will significantly reduce the amount of waste and CO2 emissions that traditional product packaging such as shoe-boxes and apparel polyethylene bags generate and underpins PUMA’s target of reducing carbon, energy, water, and waste by 25%, and developing 50% of its international product collections in footwear, apparel and accessories according to best practice sustainability standards by 2015.
Clever Little Bag by Puma
Re-Suede Shoes• The Re-Suede is
currently being sold in PUMA’s Clever Little Bag, a cutting-edge innovation in sustainable packaging that replaces traditional shoeboxes.
Re-Suede Shoes• Every aspect of the shoes has been designed with environmental impact
in mind including the upper, sockliner, laces and sublining which are all made from 100% recycled materials and an innovative new outsole material.
• The synthetic suede is comprised of 100% recycled polyester fibers, produced by a chemical recycling process that reduces both the energy consumption and the CO2 emission by 80% compared to the production of virgin materials.
• The new PUMA Re-Suede is incredibly light weight, (140g/5.2oz less than the original) thereby reducing the fossil fuels needed in transport, saving fifteen tons of carbon emissions for every ten thousand pairs shipped.
“Back on The Attack Strategy”
2010 20153Billion Euros 4Billion Euros
2015 OBJECTIVE
• To be the most desirable and sustainableSportlifestyle company in the world
– Exploit the €4bn potential• Focus to grow the existing:
– Core Categories– Top 12 Markets– Key Emerging Businesses
Develop Group beyond PUMA brand
6 Strategies
• Restructuring• Transformation• Brand/Marketing Heat• Product Desirability• Distribution Focus• Non-PUMA Brand Development
IMPACT ON BUSINESS MIX
2012(Euros) Vs. 2015(Euros)Non-PUMA brands
3,000,000,000 x 0.03 = 90,000,000 4,000,000,000 x 0.08 = 320,000,000 PUMA Brand
3,000,000,000 x 0.97 = 2,900,000,000 4,000,000,000 x 0.92 = 3,680,000,000
Product Segment2012(Euros) Vs. 2015(Euros)
Accessories
3,000,000,000 x 0.13 = 390,000,000 4,000,000,000 x 0.15 = 600,000,000 Apparel
3,000,000,000 x 0.33 = 990,000,000 4,000,000,000 x 0.35 = 1,400,000,000 Footwear
3,000,000,000 x 0.54 = 1,620,000,000 4,000,000,000 x .50 = 2,000,000,000
By Region2012(Euros) Vs. 2015(Euros)
APAC3,000,000,000 x 0.21 = 630,000,000 4,000,000,000 x 0.23 = 920,000,000 America3,000,000,000 x 0.31 = 930,000,000 4,000,000,000 x 0.27 = 1,080,000,000 EMEA3,000,000,000 x 0.48 = 1,440,000,000 4,000,000,000 x .50 = 2,000,000,000
By Distribution2012(Euros) Vs. 2015(Euros)
Retail & E Commerce
3,000,000,000 x 0.16 = 480,000,000 4,000,000,000 x 0.20 =800,000,000 Wholesale
3,000,000,000 x 0.84 = 2,520,000,000 4,000,000,000 x 0.80 = 3,200,000,000
Key Partners
Key Partners
• A privately owned Cape Town, South Africa-based clothing manufacturing company that has become the first supplier within PUMA’s supply chain to publish its own integrated financial and sustainability report.
• The first supplier in PUMA’s supply
chain to reduce its electricity consumption by installing a solar photovoltaic (PV) plant on its building in Cape Town.
Impahla Clothing
Key Partners• Puma Sports India Pvt. Ltd.
– Wholesaler/Distributor / Supplier of Shoes, Sportswear and Apparel
• Specialties– PUMA Apparel ( Fashion & lifestyle + performance)
– PUMA Footwear ( Fashion & lifestyle + performance)
– PUMA Accessories ( Fashion & lifestyle + performance)
– Team sport , clubs, companies & tenders businesses
Key Partners
• Distributors Warehouse, Inc.– Business type: Distributor/Wholesaler
– Main Products: Inventory Puma tools and Parts. Sell mostly to industrial Distributors, Stock Gasoline Impact Wrenches. Sell Puma Air Compressor, Stock Several Economy Type Air Tools
– BRANDS: PUMA, Pneutech Air Tools, Puma Air Compressors
PUMA Teams
Designers
Alexander McQueen
Mihara Yasuhiro
Sergio Rossi
Cost Structure
By Product
Footwear (1561m)Apparel (1111.9m)Accessories (495.5m)
Cost Structure• Cost of Sales = 1515.6m • Sales = 3009.0m• Fixed Cost = 1,178m
Estimated Even Point = 1,178/(1-1515.6/3009) = 1,178/.4963 = 2373.5644% Increase from 2010 - 2012
Gross margin % = 49.6%EBIT % = 8.6%EBT% = 6.3%
Cost Structure
• Puma operated at (3009m/1178) which is equal to 255% of Break-Even during the year 2011.
MissionTo become the most
desirable Sportslifestyle company and as a creative
leader in sportlifestyle, Puma has the opportunity
and responsibility to contribute to a better world for the generation to come.
Mind Heart Spirit
VisionPUMAVision – a concept that we intend to guide our work with its
three core programs PUMA.creative, PUMA.safe and
PUMA.peace.
Focus on implementing cleaner, safer and more sustainable systems and processes within the supply chain.
ValuesPUMA
RETAIL 2.0
PUMA’s three-stage process for full environmental, social and economic reporting
1. Environmental P&L – covering GHG emissions, water use, the impacts of changes in land use on ecosystems and biodiversity, local air pollution and waste.
2. Social P&L – to include social impacts such as fair wages; freedom of association, health; security and stability; empowerment; community cohesion; human capital; and gender equality. PUMA will collaborate with other corporate and civil society stakeholders to address social issues.
3. Economic P&L – to focus on some of the beneficiaries of the economic impacts from PUMA’s operations. This could include: job creation; wages; total tax contributions; indirect and induced employment; indirect and induced output; productivity and efficiency gains; business creation and growth.
PUMA’s three-stage process for full environmental, social and economic reporting
• The PUMA Creative Factory Built For One event goes down at Earthlife on Upper Canterbury Street, Vredehoek on 29 February.
• With Cape Town recently being named Design Capital 2014 and hosting Design Indaba 2012 on 2 March, PUMA have launched the second phase of their design initiative in the Mother City. Fans will be able to customise their jackets by selecting individual components including front, back and sleeve panels as well as the iconic T7 stripe, in various colour options. Experienced tailors from Impahla Clothing, SA’s first carbon neutral clothing manufacturer and strategic supplier to PUMA South Africa, will craft the finished product on the night.
PUMA’s three-stage process for full environmental, social and economic reporting
• The likes of performance artist Lindiwe Suttle, GQ Fashion Editor Arthur Malan and actor Siv N, who have all customised their jackets at workshops in Cape Town and Johannesburg, will showcase their creations at the PUMA Creative Factory Built For One event, which will also feature live performances by P.H. Fat, Tommy Gun, Haasbroek, VGA and DJ Craig de Sousa.
• The T7 Track Jacket was born in 1968 and has achieved legendary status by being worn by famous athletes, rock stars, b-boys and artists including football legend Pele and the Beastie Boys. The jacket is environmentally responsible as it is made of 100% recycled polyester; building on PUMA’s mission to become the most desirable and sustainable sportlifestyle company.
Brand integrity
Brand identity
Bran
d imag
e
Brand
DifferentiationPositioning• Mixing the
influence of sports, lifestyle, and
fashion.• Targets active,
eccentric, individualistic, bold
and creative consumers who
admires originality.
3i
The 3i Model
• PUMA RETAIL 2.0
• Back on the Attack Strategy
• Partnership With Famous Designer• PUMA bioraid
technology
BioRide Technology
• This technology has 3 biomechanical, performance-enhancing parts - Rocker, Flex, and Groove - that work together to create a naturally responsive ride.
• Rocker = Natural Ride: A 'rocker' shape for smooth touchdown and effortless toe-offFlex = Responsive Ride
FINANCIAL CUSTOMERINTERNALBUSINESSPROCESS
LEARNING &GROWTH
OBJECTIVESTo achieve the
4Billion Euros long-term potential in
2015
To reach 30% market share
To increase no. of outlets
Zero turn over of Management staff
MEASURES Sales or revenues Market Share No. of company owned outlets Turn over rate of
management staff
TARGETS3.3B euros- 20133.7B Euros- 20144B Euros- 2015
30% of market share by 2015
Add 34 outlets by 2013
33 outlets by 201433 outlets by 2015
Zero turnover for 2013 to 2015
INITIATIVES
Increase Number of outlets
Increasing differentiation
between PUMA’s Performance and
Lifestyle categories
PUMA opens first sustainable PUMA
Store
Skills and career development
Employee Wellbeing Awareness Programme
Incentive scheme
MVV of PUMA
Financial Perspective
To improve average
receivables turnover.
Increase sales or revenues to
4Billion euros by 2015
Customer Perspective
To increase market share by 30% for the year
2015
Implement Bring-me-back-bin
Implement PUMA peace.
Process Perspective
To improve collection process by implementing online payment.
To increase no. of company
owned outlets
Implement retail 2.0 plan. Implement PUMA
Safe.
Learning and growth
perspective
Zero turnover of Management
Staff.
Continuous improvement of
absenteeism ratio of 1.4%
Implement PUMA creative.
2011 2012 2013 2014 2015
NET REVENUES 3009 3300 3600 3900 4200
CGS (1515.6)(50.36%)
(1662)(50.36)
(1813)(50.36%)
(1964)(50.36%)
(2115)(50.36%)
GROSS MARGIN 1493.349.61%
163848.64%
178749.64%
193649.64%
208549.64%
OPERATING EXPENSES
(1177.8)(39.14%)
(1287)(39%)
(1404)(38.89%)
(1521)(39%)
(1638)(39%)
OPM 333.211.07%
351 383 415 447
NET INCOME 230.4 7.65%
245.7 268.1 290.5 312.9
(In million Euros)
Videos
Recommendations
• By using Porters Five Forces Model, we highly recommend that PUMA must have their company owned distributor in order to increase their sales/revenue for the company to be able to achieved their target sales in the year 2015.
• We highly recommend that PUMA must do an actively advertisement of non-PUMA brand to increased market awareness.
Recommendations
• Go Green – Produce more eco-friendly products.
• Fully adopt the practice of marketing 3.0.• Create more sponsorships with professional
athletes especially with NBA basketball starplayers.
Recommendations
• We recommend that puma should increase additional company owned outlet
• Sponsoring extraordinary sport teams (e.g soccer teams, basketball teams etc. )
• Increase additional store outlet worldwide• Puma should advertise their products differently.
Creating a differentiation to Nike and Adidas• Puma should remain cheap but different and
stylish compared to other brands.
Recommendations• Puma should invest in a warehouse management system. The
strategy here is that they would use existing warehouse centre to store goods when needed which means they can quickly adapt to space needs as it relates to the flow of information and the management of stocks. It could also give Puma a competitive advantage by being able to respond to customers demands quicker leading to a better customer experience and then a long term objective of customer loyalty.
Puma should also embark on a new expansion drive in wholesale and retail business that are using a unique type of promotion as a medium to further solidify its relationship with existing partnerships to strengthen the brand Puma, the aim here is to increase visibility of the Puma brand.
Recommendations
• Puma’s product line is in a small variety, we recommend that Puma increase the variety of their product line. With this, their consumers would not have a limited choice on what they have to choose from. Having a wide variety of products would give Puma the starting point for them to increase their market share in a quick possible manner.
Recommendations
• Puma should make more eco-friendly products like their new re-suede shoes because it last longer than the other shoes and comfortable to wear.
They should sponsor more sport events.
They should also focus on basketball because it's one of the popular sports in the world.
Conclusion
• With PUMA, you can create a good and better life in the future. How is this possible? It is possible by buying stocks or make investment with PUMA. We can says this because by strategically analyzing PUMA, we will able to see that the company growth is constantly increasing every year and PUMA is a practitioner of modern marketing techniques.
Conclusion
• Number 3 in the world of footwear industry.• PUMA does not directly aim to be the number
1 or leading supplier of sports footwear worldwide. PUMA is contended in the current position they are in as long as they are continuously satisfying the consumer by providing high quality and eco-friendly products and treating their employees and key partners as part of their success.
Conclusion
• Entering the fashion sector puma become most flavoured brand worldwide.
• Redefining company structure lead to new image they can now able to compete with market leaders
• Growing market shares
Division of Labor