PUMA COMMERCIAL

AGENDACompany Overview- KyleCompany History-KyleFootwear Industry- LyndseyTrends-LyndseyGlobal Issues- LyndseyCompetitors- CoraleeSWOT- Blase

Company OverviewPuma’s hometown is Herzogenaurach, Germany

The company distributes its products in more than 130 countries

2007 Revenues $3.8 billion

Employees 9,204

116 concept stores

Company History1924 Rudolf and Adolf Dassler start their first shoe company

1936 Olympics when Jesse Owens wears Dassler Shoes

1948 the brothers split the company into two separate shoes manufacturers

1986 Puma goes public on the on the Borse Munchen and Frankfort Stock Exchange

Company History Cont…

1989 Armin and Gerd Dassler sold their shares of stock

1990 Jochen Zeitz joined the company as the new CEO

Late 90’s Puma started to open subsidiaries in other countries

Store Pictures

Footwear IndustryGlobal Footwear Industry

In 2007 was valued at $191.7 billion

By 2012 expected to be valued at $248.9 billion

European market represents the largest percent of the global market at 40.6%

Germany is included in the European market

Footwear IndustryGerman Footwear Industry

In 2007 was worth $11.1 billion

By 2012 expected to be worth $12.8 billion

Germany is part of the European market

German Footwear market makes up 14.3% of the European market value

Trends

United States footwear market has seen a constant growth since 2003

2006 men and children drove the athletic footwear market

2007 more women started by athletic shoes and the athletic shoe market saw a drop in sales to men and children

Global IssuesPuma has four virtual headquarters around the

world

The company insures that human rights, product safety, and environmental concerns.

Puma is a proactive company and has established S.A.F.E- Social Accountability and fundamental environmental standards

Part of the United Nations Global Compact (UNGC)

Global Issues Cont…

In 2007 Puma was accredited by the Fair Labor Standards Association

The company has been rated by Greenpeace

Puma outsources its production facilities to over 40 different countries

Main Competitors

Market Share

US Based Company

World Leader in Athletic Footwear Industry

Employs 500 000 people world wide including Subsidiaries

2007 Revenues of 16 billion

Actions in Environmental Issues: Re-use a shoe Program

Why does Nike hold the number one position?

•Dollars spent in advertising and Marketing•Sponsorship programs

Current actions of Nike

Nike

German based Company

Second leading company in the world for athletic footwear

Puma’s true rival

2007 Revenues of 15.6 billion

Purchase of Reebok in 2006

Actions in Social Responsibility • Red Ball – right to play

Sponsorship

Adidas

Based out of the United Kingdom

Joseph Foster

Gains popularity in 1980’s

Sponsorship

Fair Labor Association 2004

Official foot wear sponsor for Avon-Walk around the world• Sponsoring $500 000 in 2008

Reebok

Head Quarters in Boston, US based company

Unlike all other competitors in this case analysis • 70% of manufacturing occurs in the US

Located in 120 countries

Employs 2800 people

Unique for specializing in width

2007 revenue of 1.6 billion

Run Proud Campaign – fight against breast cancer

New Balance

SWOT AnalysisStrengths

Very high quality products

Major Sponsor of NASCAR and Formula One Racing

One of the leading sportswear and shoe companies in Europe

SWOT Analysis

Weaknesses

Not the biggest shoe and apparel company in Germany

Seem to not be able to attract famous athletes in the United States

Advertising is not a major priority in the United States

SWOT Analysis

Opportunities

Gain more of the market share of the NFL and NBA

Emerging Asian markets are a big opportunity for growth

The whole US is an opportunity for expansion and growth

SWOT Analysis

Threats

Rising costs of raw materials

Risk of counterfeit products being made illegally

Intense competition is always a constant problem

RecommendationsShort-Term

Focus greater attention to marketing and advertising

Puma needs to meet the demands of growing markets

Specialize products for needs and wants of baby boomers

Develop a more user friendly website

Recommendations

Long-Term

Focus on environmental issues

Focus on a variety of sports markets

Focus more on the United States and Asian Markets

ConclusionPuma is a globally competitive company

The company does an excellent job in advertising

Puma needs to keep increasing their revenues and stay out of debt

Any Questions????