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Athletic Footwear Industry
History of Athletic Footwear Market
ā€¢ Shape
The sneaker as itā€™s commonly referred to as has evolved in
many forms such as shape, design, features, functionality.
ā€¢ Design
The design element of the sneakers has evolved over the
centuries.
ā€¢ Features
When sneakers were first created the main feature was to
cover your foot and provide a new level for comfort.
ā€¢ Functionality
The original purpose was to for all purpose uses such as
cleaning, gardening, going out.
Evolution of the athletic shoes
ā€¢ 1800ā€™s - Athletic shoe companies have been around since the late
1800ā€™s, and have evolved tremendously over that time.
ā€¢ 1830ā€™s - Liverpool Rubber Company developed the Plimsoll shoe
ā€¢ 1895 - The J.W. Foster company
ā€¢ 1916 - Keds
ā€¢ 1917 - Converse All Stars
ā€¢ 1936 - Adi Dassler
ā€¢ 1950 - Adidas
ā€¢ 1970 - Nike
ā€¢ 1980 - Air Jordansā€™
ā€¢ 21st century - Nike has dominated the sports landscape as the
leading athletic shoe
Market Overview

Competitive environment of
different brands
Marketing and Advertising
Strategy
Competitive and
Market Strategy
Market Leaders
ā€¢ NIKE, Inc. is the worldā€™s leading innovator in
athletic footwear, apparel, equipment and
accessories that is engaged in the design,
development and worldwide marketing and
selling.
ā€¢ Headquarters: Beaverton, OR, USA
ā€¢ Founded: January 25, 1964
Mark Parker
Bill Bowerman & Phil Knight
Founder
"To bring inspiration and innovation to every athlete
in the world"

Innovate for better world

honesty, competitiveness, and teamwork
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Phil Knight and Bill Bowerman form
Blue Ribbon Sports as a
redistributor of Onitsuka Tiger
Shoes.
First appearance of Swoosh
Waffle Trainer was introduced, quickly
becoming the best-selling training shoe
in the US.
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BRS, Inc. now officially known as
Nike,Inc.
Air Force1 basketball shoe was released
Nike signed Michael Jordan to an
endorsement contract, release Air
Jordan shoes
Nike Airmax1 released, first with visible
air bubble
13
Nike opened first Niketown in Portland.
Nike signed Tiger Woods
Bill Bowerman dies at age 88
Nike Shox introduced

14
Nike acquired Converse and signed
Lebron James for an $87m
endorsement contract
Nike and Apple released Nike + iPod kit.

Nike releases their most expensive
shoes to date, the Lebron X ($315)

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Graphic design created by Caroline
Davidson in 1971. It represents the
wing of the Greek Goddess
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ļƒ¼ Nikeā€™s foremost focus is athletic footwear, designed for sports
and everyday usage with the brand name.
ļƒ¼ The production facilities are located close to the raw material
to have low labor prices.
ļƒ¼ The company presently sells roughly 300 models of athletic
shoes in 900 styles
ā€“
ā€“
ā€“
ā€“
ā€“
ā€“
ā€“
ā€“
ā€“
ā€“

Running
Basketball
Training
Football
Soccer
Skateboarding
Golf
Tennis
Childrenā€™s shoes
Customize with NIKEiD

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ļƒ¼ Nike charges high prices or premium prices for i high quality
products and its famous brand. The pricing based on the basis
of premium segment as target customers.
ļƒ¼ Nikeā€™s pricing strategy use of vertical, take part in more than
one channel level operations for control costs and influence
product pricing.
ļƒ¼ The company has designed its pricing structure in a way to
make it competitive to other shoes sellers.
ļƒ¼ The price of the products is variable depending on the type
and the size for example a comfortable and good pair of shoes
would cost from 70 to 150 dollars.
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ļƒ¼ Nike shoes are carried by multi-brand stores and the
exclusive Nike stores across the global.
ļƒ¼ Nike sells its product to about 25,000 retail accounts in
the U.S. and in almost 200 countries around the world.
This means that place strategy is used by Nike.
ļƒ¼ In the international markets, Nike sells its products
through independent distributors, licensees and
subsidiaries.
ļƒ¼ Independent distributors need not adapt to local
pressures because the 4Ps of marketing are managed by
distributors.
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ļƒ¼ Promotion is largely dependent on finding accessible store
locations. It also avails of targeted advertising in the
newspaper and creating strategic alliances.
ļƒ¼ Nike has a number of famous athletes that serve as brand
ambassadors such as the Brazilian Soccer Team (especially
Ronaldino, Renaldo, and Roberto Carlos), Lebron James and
Jermane Oā€™Neal for basketball, Lance Armstrong for cycling,
and Tiger Woods for Golf.

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ļƒ¼Nike also sponsors events such as Hoop It Up and The
Golden West Invitational.
ļƒ¼Nikeā€™s brand images, the Nike name and the
trademark swoosh, make it one of the most
recognizable brands in the world.
ļƒ¼ Nikeā€™s brand power is one reason for its high
revenues.
ļƒ¼Nikeā€™s quality products, loyal customer base and its
great marketing techniques all contribute to make
the shoes empire a huge success.
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ā€¢ Niche marketing, narrowly defined customer group
seeking a distinctive mix of benefits.
ā€¢ In the lifestyle and apparel market targets
consumers who identify with sport as a way of life
and are brand conscious.

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ļƒ¼Geographic segmentation
Density: Urban and semi-urban cities
ļƒ¼Demographic segmentation
ā€“ Age: 15 to 35
ā€“ Gender: Male and female
ā€“ Income: Middle to high income
ā€“ Social class: Upper middle, lower upper and
upper class

25
ļƒ¼Customer Profile
ā€“ Athletes
ā€“ Gym regulars
ā€“ Sports enthusiasts
ā€“ Brand freaks
ā€“ Image seekers
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Nike has divided its customers into the following way:
1. Y Women
2. Y Men
3. Y Girls
3-36 months
3-8 years
8-15 years
4. Y Boys
3-36 months
3-8 years
8-15 years
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ļƒ¼Psychographic segmentation
ļ± Active people who enjoy high quality sport footwear.
ļ± Customer who feel so strongly that the firm can meet their
needs best that any competitors are virtually excluded from
their consideration.
ļ± Consumers that wear Nike just want to build confident or
make other feel they wearing a branded shoes but not
ordinary shoes but not for sport purpose.
ļ± For youth, they think Nike shoes is a fashion lifestyle and they
wear it just to follow fashion trend.
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ļƒ¼Psychographic segmentation
ļ± Active people who enjoy high quality sport footwear.
ļ± Customer who feel so strongly that the firm can meet their
needs best that any competitors are virtually excluded from
their consideration.
ļ± Consumers that wear Nike just want to build confident or
make other feel they wearing a branded shoes but not
ordinary shoes but not for sport purpose.
ļ± For youth, they think Nike shoes is a fashion lifestyle and they
wear it just to follow fashion trend.
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ļƒ¼Behavioral segmentation
Most of them preferred Nike to Adidas, but felt that Nike was overpriced. Those who preferred Adidas,
however showed great brand loyalty to the brand. They rate attributes like quality, price, durability, comfort,
style, advertising and innovation on a scale of 10. The results that we obtained is graphically shown below

Nike
Adidas

Quality Durability

Price

Comfort

Style Advertising Innovation

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ļƒ¼Behavioral segmentation
ļ± Customers purchase products through Nike towns, Nike
stores, Nike outlet stores, and online website nike.com
ļ± Customer attitudes : Customers have good attitude to Nike
products. They share experience to their friends and family
Nike
including review products on internet which are spread to
Adidas
social very quickly.

ļ± Advertising, brand ambassador and special sport occasion
have effect to purchasing behavior of customers. For
examples, FIFA world cup, PGA grand slam of golf.
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ļƒ¼Behavioral segmentation
ļ± Customers purchase products through Nike towns, Nike
stores, Nike outlet stores, and online website nike.com
ļ± Customer attitudes : Customers have good attitude to Nike
products. They share experience to their friends and family
Nike
including review products on internet which are spread to
Adidas
social very quickly.

ļ± Advertising, brand ambassador and special sport occasion
have effect to purchasing behavior of customers. For
examples, FIFA world cup, PGA grand slam of golf.
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ļƒ¼The market segment targeting is quite
essential to differentiate itself from
competitors.
ļƒ¼Nike offers its consumers the option to custom
built their own shoes on its website, a huge
Nike
differentiation that Adidas does not have.Adidas
ļƒ¼ Nike also has a large of innovative products,
including the Nike+, in collaboration with
Apple.
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ļƒ¼ Nike positions itself as the market leader of sports footwear
with high price, high quality, high technology and uses the
greatest athletes and the record of their achievements in
advertising.
ļƒ¼ The swoosh logo together with the Just Do It slogan expresses
a high ambition and a will for victory, which is a part of Nikeā€™s
Nike
brand image and corporate culture.
Adidas

ļƒ¼ Nike, the largest seller of athletic footwear in the world .Nike
has been launching new technically advanced shoe models
from time to time
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However, the company still faces many challenges in
ā€¢ the changing fashion trends,
ā€¢ the falling sale of its higher- priced shoes
ā€¢ increasing competition

Nike
Adidas

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ļƒ¼ Nike places a significant weight on marketing and its products.
ļƒ¼ Nike agressively bonds the contracts with highly successful and
influential athletes, coaches, teams and to popularize its footwear.
ļƒ¼ Nike focus on the customer satisfaction.
ļƒ¼ Nike invests a lot in its product R&D , 3 primaries area:
ļ±

Biomechanics

ļ± Physiology
ļ± Sensory
ļƒ¼ Its innovation in products includes:
ā€“ ā€œNike with Appleā€
ā€“ Designs your own shoes

Nike
Adidas

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ļƒ¼ Nike actively responds to trends and changes in consumer
preferences by
ļ± Adjusting the mix of existing product offering,
ļ± Developing new products, style and categories, and Influencing
sports and fitness preferences through aggressive marketing.
ļ± Its primary areas of marketing remain internet, TV and
magazines

ļƒ¼ The only criterion where the company faces tough time is its
high competitive prices.
ļƒ¼ The competitors like Adidas that offer products at lower price
compared to Nike.
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ā€¢ A German multinational corporation that designs and
manufactures sports clothing and accessories.
ā€¢ This holding company consists of the Reebok sportswear ,
TaylorMade-Adidas golf company (including Ashworth),
Rockport, and 9.1% of FC Bayern Munich.
ā€¢ Adidas is the largest sportswear manufacturer in Germany
and Europe and the second biggest sportswear manufacturer
in the world.
ā€¢ Headquarters: Herzogenaurach, Bavaria, Germany
ā€¢ Founded: August 18, 1949

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FOUNDER
ā€¢ Adolf "Adi" Dassler
ā€¢ His brother Rudolf returned
to Herzogenaurach to join
his younger brother's
business
ā€¢ Rudolf Dassler became
founder of Puma.

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MISSION STATEMENT
The adidas Group strives to be the global leader in the sporting goods
industry with brands built on a passion for sports and a sporting lifestyle.
We are committed to continuously strengthening our brands and products
to improve our competitive position.

Vision
ā€¢

ā€¢

ā€¢
ā€¢

The company is innovation and design leaders who seek to help athletes of
all skill levels achieve peak performance with every product we bring to
market.
The company are consumer focused and therefore we continuously
improve the quality, look, feel, and image of our products and our
organizational structures to match and exceed consumer expectations and
to provide them with the highest value.
The company are a global organization that is socially and environmentally
responsible, that embraces creativity and diversity, and is financially
rewarding for our employees and shareholders.
The company are dedicated to consistently delivering outstanding
financial results.
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Core value
ā€¢ Performance
Sport is the foundation for all we do and executional excellence is a core value
of our Group.
ā€¢ Passion
Passion is at the heart of our company. We are continuously moving forward,
innovating, and improving.
ā€¢ Integrity
The company are honest, open, ethical, and fair. People trust us to adhere to
our word.
ā€¢ Diversity
The company takes people with different ideas, strengths, interests, and cultural
backgrounds to make our company succeed. We encourage healthy debate and
differences of opinion.

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TIMELINE
GebrĆ¼der Dassler Schuhfabrik ( 1924-1936 )
ā€¢ Adolf "Adi" Dassler started to produce his own sports shoes in his mother's wash
kitchen in Herzogenaurach, Bavaria after his return from World War I
ā€¢ In July 1924, his brother Rudolf returned to Herzogenaurach to join his younger
brother's business, which became Dassler Brothers Shoe Factory
ā€¢ Business boomed and the Dasslers were selling 200,000 pairs of shoes each year
before World War II

World War II and company split ( 1945 )
ā€¢ Both brothers joined the Nazi Party
ā€¢ The Dassler factory, used for production of anti-tank weapons during the war in April
1945,
ā€¢ Adi Dassler's wife, KƤthe, convinced the GIs that the company and its employees were
only interested in manufacturing sports shoes.
ā€¢ American occupying forces subsequently became major buyers of the Dassler
brothers' shoes.
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The brothers split up ( 1947 )
ā€¢ Rudolf forming a new firm that he called Ruda ā€“ from Rudolf Dassler, later rebranded
Puma
ā€¢ Adi forming a company formally registered as Adidas AG from Adi Dassler on 18
August 1949.
ā€¢ "Adi" (a nickname for Adolf) and "Das" (from "Dassler").

The Tapie affair ( 1987- 1994)
ā€¢ After the death of Adolf Dassler's son Horst Dassler in 1987, the company was bought
in 1989 by French industrialist Bernard Tapie,
ā€¢ Tapie was at the time a famous specialist of rescuing bankrupt companies, an expertise
on which he built his fortune.
ā€¢ Tapie decided to move production offshore to Asia.
ā€¢ In 1992, Tapie mandated the CrĆ©dit Lyonnais bank to sell Adidas
ā€¢ Tapie filed for personal bankruptcy in 1994

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Post-Tapie era (1994-2006)
ā€¢ In 1994, combined with FIFA Youth Group, SOS Children's Villages became the main
beneficiary.
ā€¢ In 1997, Adidas AG acquired the Salomon Group and its official name was changed
to Adidas-Salomon AG
ā€¢ Adidas also acquired the Taylormade Golf company and Maxfli, which allowed
them to compete with Nike Golf.
The World's First Intelligent Shoe (2005)
ā€¢ In 2005, Adidas introduced the Adidas 1, the first ever production shoe to use a
microprocessor. Dubbed by the company
ā€¢ in 2005, on 3 May, Adidas sold their partner company Salomon Group
Acquired Reebok (2006)
ā€¢ In 2006, Adidas acquired British rival Reebok as partner.
The Revenue peak (2012)
ā€¢ End of 2012, Adidas is reporting the highest revenues ever and Chief Executive
Herbert Hainer expresses optimism for the year ahead.
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The Adidas Logo

Logo #1: The Three Stripes

Logo #2: The Trefoil

Logo #3: The Three Bars

The company simple placed three
black stripes on everything that
they manufactured

This logo is still used on some of
their products, particularly their
line of classic products

Most of their high-performance
products have moved on to a third
and final logo

The three elements in this and all
other Adidas logos are said to
represent Dasslerā€™s three sons.

This logo was chosen because the
company wanted a logo that
represented the fact that their
brand was a lot larger and more
diverse that it used to be while
still keeping the classic Adidas
look.

Adidas Logo the Three Bars, This
logo is the latest one that has
been introduced, and it represents
the finest equipment that Adidas
sells
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4Ps
Products
ļƒ¼ Providing high quality products aimed at
providing the best value to the costumer.
ļƒ¼ The products portfolio is continuously
enhanced through creations and
innovations throughout the companies
various categories. This is pursued in
order to cater to the various needs and
wants of consumers worldwide.
ļƒ¼ Well-known brands for sports apparels,
equipment and accessories, the Adidas
group has a diverse brand portfolio
consists of: Adidas , Reebok , TaylorMade
Adidas Golf , Rockport, CCMHockey

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4Ps
Price
ļƒ¼ Using adapted pricing strategies,
depending on which market they are
operating in, so as to achieve its goals.
ļƒ¼ Penetrating attack markets with lower
prices or using market skimming tactics,
for instance.
ļƒ¼ In intense competition in the global
market, the company is involved in regular
evaluation of its price to ensure that the
products stay competitive at the point of
sale.

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4Ps
Place
ļƒ¼ Distribute its products to the consumer
with a strong focus on controlled space,
including: Own-retail business, ecommerce, Shop-in-Shop, Joint ventures
with retail partners, mono-branded
franchise stores, co-branded stores with
sports organizations and other brands.
Hence, a high level of brand control is
provided.
ļƒ¼ In addition, an ā€œintegrated distribution
roadmapā€ has been set up to ensure
further growth and to increase brand
presence in under-penetrated, affluent
cities, without cannibalizing their own
brands and distribution mix.
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4Ps
Promotion
ļƒ¼ Different promotional tools are used in
order to reduce the number of lost
customers and to increase sales.
ļƒ¼ The group has set up an unparalleled
portfolio of promotion partnerships with
international recognized sports
associations (e.g. UEFA, FIFA, NBA, NFL,
and NHL).
ļƒ¼ Commercials, ads, apps for smartphones,
product placement, sponsorships for
athletes and sport events (e.g. Berlin
Marathon 2011)

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Market Segmentation
GEOGRAPHIC SEGMENTATION:
divided the market into different units of location
ā€¢ neighborhood,
ā€¢ states,
ā€¢ regions
ā€¢ cities
ā€¢ countries.
ā€¢ Adidas Bold 2009 have operated in urban and
semi-urban cities of India.
BEHAVIORAL SEGMENTATION:
This segment divided the consumers according to
their attitude, knowledge, response and use of
the product. Below are the behavioral
segmentation for Adidas:
ā€¢ Benefits
ā€¢ Gym regular users
ā€¢ Sports lovers
ā€¢ Athletes
ā€¢ Image seekers
ā€¢ Brand freaks

PSYCHOGRAPHIC SEGMENTATION:
the analysis of the different personalities of each
consumers. The only key is to be different.
ā€¢ Achievers
ā€¢ Well-experienced
ā€¢ Hard workers
ā€¢ Goal achievers
DEMOGRAPHIC SEGMENTATION:
divided into different segments based on the
variables of family size, family life cycle, income,
gender, age and etc
The demographic segmentation of Adidas as
follows:
ā€¢ Age 15-36
ā€¢ Income level: $15,000
ā€¢ Social Class: Upper middle, upper class and
lower upper.
ā€¢ Gender: Both male and female
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Target Markets
ā€¢ sports personalities involved in various sporting activities such as
soccer, rugby, athletics and basketball.
ā€¢ young people
ā€¢ male and female
ā€¢ averagely between the ages of 10 to 30

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Product Positioning
adidas
ā€¢ the brand strive to be the
globally leading and most
popular sporting goods brand
ā€¢ focus is mainly on innovation
and technology
adidas Originals
ā€¢ the first brand leveraging its
sports assets in the lifestyle
area
ā€¢ it is regarded as a legitimate
sports lifestyle brand.
ā€¢ Snoop Dogg. Or Rihanna. Or
Katy Perry.
adidas Sport Style
ā€¢ "Future of Sportswear"
ā€¢ includes the labels Y-3
ā€¢ Porsche Design Sport

Reebok
ā€¢ American-inspired sports brand with the clear objective
to become the leading fitness brand in the world

adidas NEO, From the track to the catwalk, it helps you to "Style your Life"

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Strategies
ļƒ¼
ļƒ¼
ļƒ¼
ļƒ¼
ļƒ¼
ļƒ¼
ļƒ¼
ļƒ¼

Creating shareholder value
Investments focused on highest-potential markets and channels
Creating a flexible supply chain
Leading through innovation
Develop a team grounded in company heritage
Becoming a sustainable company
Brandā€™s Broad and Unique Product Portfolio
Brand Extension Strategies

Adidas Core Competencies
ā€“
ā€“
ā€“
ā€“
ā€“

Technology
Customer focus
Brand recognition
Supply chain
Collaboratively competitive
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Why Adidas is number two
compare to Nike?
ā€¢ Nike has an overall better selection of gym shoes, and basketball shoes
compare to than Adidas.
ā€¢ Nike have wider variation of types of shoes which ranges anywhere from boots,
to basketball shoes.
ā€¢ Nike also are endorsed by higher profile athletes than Adidas does.
ā€¢ Nike has players like Kobe, and Cristiano Ronaldo while Addidas has Kevin
Garnett, who is passed his prime.
ā€¢ Nike's shoes are also more stylish, and well known.
ā€¢ Nike have higher modification function for customers on design and technology

57
How to improve to rank no.1
in this market?
ā€¢ Adidas should improve its product lines substantially as variation in products
could lead to better and improved sales which form a major objective of any
business organization.
ā€¢ Adidas should concern more on innovation along with strategic partnership,
Now, Adidas signed a contract with Samsung to produce a shoe + phone
promotional campaign. In this strategic partnership, both the companies
developed a phone to be used with shoes during training
ā€¢ Improve brand association of professionals with Adidas is that it has a culture
of technology and has a history of achieving a strong position in the minds of
target customers.
ā€¢ Adidas should work towards improving market share and being at par with Nike
which is currently the world leader in Athletic footwear. Adidas should focus on
roping in more celebrities to promote their products

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PUMA
Puma core value
ā€¢ Design innovation and inclusiveness, and communicated
through all consumer touch points, from product to
distribution to marketing
Puma history
ā€¢ 1924 - the company was funded in
Germany by Rudolph and Adolf Dassoer.
Originally Puma shoes wore by many
Olympic athletes.
ā€¢ 1948 ā€“ The brothers split their business,
Adolf called his firm Adidas. Rodolf
called his new firm Ruda( from Rudolph
Dassler), after changed its name to
Puma
ā€¢ 1950 ā€“ Puma gains attention for the
development of their soccer shoes.
Puma history
ā€¢ 1960 ā€“ Puma becomes the first sports shoes manufacturer
to use the vulcanization production technique. To support
Puma athletes in showing top performances.
ā€¢ 1986 ā€“ Puma issue IPO on the Frankfurt stock exchange
ā€¢ 1998 ā€“ Puma merges sport and fashion by collaboration
with designer Jil Sander.
Puma history
ā€¢ 2001 ā€“ Puma acquires Tretorn Group.
ā€¢ 2007 ā€“ more than 60% of company shares are
acquired by French luxury goods company PPR(owns
Gucci and Yves Saint Laurent).
Puma segment
ā€¢ Puma's market segmentation targets unique, exclusive,
imagination consumers who attractive originality.
Puma segment
ā€¢ In the dynamic changing consumer market, Puma intent to
surprise consumers by constantly delivering the
unexpected and challenging perceptions that continues to
be a defining representative in the world of sports.
Puma target group
ā€¢ Puma target market is for the ages 15-30 which is the
age when a person is sporty and active the gender is
for both female and male with a range of females and
males sports clothing, shoe wear even a perfume line.
Puma position
ā€¢ Puma position themselves as the creative leader in
Sportlifestyle gives us the opportunity and the
responsibility to contribute to a better world for the
generations to come
Puma mission
ā€¢ Puma mission is to become the most desirable and
sustainable Sportlifestyle company in the world.
Puma vision
ā€¢ Puma.Creative
ā€“ the core competency by co-ordinate of different creative
and artists department

ā€¢ Puma.Safe
ā€“ comprises of initiatives and commitment for environmental
protection and improved working environment. Puma
lunched many programs implementing cleaner, safer and
more sustainable systems and processes within the supply
chain.

ā€¢ Puma.Peace
ā€“ to supports the global Day of Ceasefire or The International
Day of Peace known as World Peace Day on September 21
every year. The idea is the power of sports would persuade
people to get into peace.
Puma vision

Puma sustainability strategy
Puma strategy
ā€¢ Puma specific on sportlifestyle original in sport
then combine to lifestyle by fashion approaches.
The strategic objectives and related expansion
targets this long-term strategic objective is to be
achieved through three ways:
Puma strategy
ā€¢ First, Product expansion both develop existing product and
expand to new product. Develop existing product the entire
sportlifestyle from sport to fashion base on eliminate
weakness and improve design. Expand to new product need
to distinguish the Puma brand from the market and from
competition in a unique manner.
Puma strategy
ā€¢ Second, Geographic expansion, Puma aims expansion both in
the wholesale and in its own retail business. Additional goal is
to terminate the major distribution licenses and to
consolidate the business. The targeted expansion strategy in
conjunction with to be obvious virtualization of business
processes should lead to get more strengthen and expansion
of the share of retail operations in consolidated sales.
Puma strategy
ā€¢ Third, Expansion with Non-Puma Brands, In addition to the
brand Tretorn (since 2001) Puma does not rule out expansion
with non-Puma brands. And acquisition if that brand can
increase sustainable of the company.
Marketing Mix for Puma
ā€¢ PRODUCT ā€“ Puma shoes is sport lifestyle so their
need to have fresh design in order to provide the
best shoes to their customer.
Marketing Mix for Puma
ā€¢ PRICE ā€“ Puma price base on premium segment. For premium brand
like Puma if they set their price too low it would destroy brand
reputation. Product warranty for online they provide half-month
warranty to every customer to gain customer loyalty, that If
customer not happy for any reason have been seen after purchase
we will exchange with a new pair of shoes in order to create brand
image.
Marketing Mix for Puma
ā€¢ PLACE ā€“ Traditional sale is customer come to
outlet and buy, customer can find product
that fit, color and style to them.
ā€¢ Online shopping provide more convenience to
customer and give more advantage such as
extensive online catalog, current news on
Puma, newest items.
Marketing Mix for Puma
ā€¢ PROMOTION ā€“ Stimulate sale volume by launch new
promotion. Package design involves the development of a
container and a graphic design for a product. Packaging
function is to protecting product from damage and it can add
value to product by concern about environment sustainable.
Why Puma is no.3 of
sport shoes market?
ā€¢ Puma still very low brand awareness, low market share , low
advertising
ā€¢ Puma brands have revealed they are enthusiastic to respond
to the great eco-challenge announced by Greenpeace, aiming
to annihilate the usage and disposal of hazardous chemicals
until 2020.
How Puma can improve business
performance in these market?
ā€¢ In economic downturn Puma should do two approaches.
ā€¢ First increase investment into develop new product.
How Puma can improve business
performance in these market?
ā€¢ Second Geographical Expansion. If Puma can expand
into Asia they will get a lot of market share.
How Puma can improve business
performance in these market?
ā€¢ Puma should use Flanking attack and Bypass attack. Use
flanking attack to attack the leadersā€™ weakness, for example
one huge weakness with the NIKE Company is that they fail to
see problems in relation to their labor and factory conditions.
So Puma set their employee is first priority, like Puma talent
management and International leadership program.
How Puma can improve business
performance in these market?
ā€¢ Overview of International Leadership Program.

Puma talent management
How Puma can improve business
performance in these market?
ā€¢ Bypass attack initiate new product into new market.
How Puma can improve business
performance in these market?

Product Table Prototype for
Puma Black Station Store in
Tokyo

Puma phone
Analysis
NIKE
ā€œperformance driven styleā€

ADIDAS
ā€œsport performanceā€
ā€œsport heritageā€
ā€œsport styleā€
PUMA
ā€œactive lifestyleā€
NIKE

ADIDAS

PUMA

Reason for being

To bring inspiration and innovation to every
athlete in the world

Improving every athleteā€™s
performance through innovation

Mixing the influences of sports,
lifestyle and fashion

Value proposition

Just do it

Perform at the highest level

Fits your active lifestyle

Reasons to believe

- Footwear technology platforms (shox, air,
airmax, zoom air)
- Cutting edge performance / lifestyle apparel
l- Mass customization (NIKE ID)
- Full line of performance / lifestyle accessories
- Digital / Physical Experiences (Co-branding with
IPOD)
- Social responsibility (Livestrong, United Nations
programs)
- Branded retail experiences (Niketown)
- Event sponsorships (marathons, Olympics)

- Footwear technology innovations
- Automatic customization
(Adidas1)
- Co-developed celebrity lines
(Stella McCartney)
- Classic styles, tradition and
heritage
- Mass Customization (Adicolor)

- Distinctive trend setting styles
- Branded retail experiences
(concept stores)
- Co-developed celebrity lines
(Turlington / Nuala)
- Co branding partnerships (Ferrari)
- Partnerships with famous
designers (Starck, Wanders)
- Mass customization (Mongolian
bbq)
- Promotional events (beats &
treats)

Persona

Athletic, influential, outgoing, fresh, aggressive, hi-tech,
futuristic, retro cool

Clear, orderly, practical, hi-tech, classic,
sophisticated, sincere

Elegant, colorful, fresh,
spontaneous, individual,
metropolitan, international

Associations

Athletes at the top of their respective sport
(Michael Jordan, Tiger Woods, Lance Armstrong)
Unfair labor practices

Elite Soccer players, soccer teams,
NBA stars
Hip hop artists (Run DMC)
Mainstream sports

- Fashion brands (Gucci, Armani,
Dolce & Gabbana)
- Fringe / extreme sports
- Music artists & movie stars

Range of authority

Footwear, apparel, equipment in multiple
categories

High performance footwear
Performance & casual apparel

Performance & casual footwear
Apparel & accessories

Audience

All athletes - anyone with a body

Anyone who plays sports

Anyone who leads an active
lifestyle

Relationship

Fellow athlete

Respected coach

Hip friend who shows you a good
time
Soccer Shoes Comparison
August 2009 Soccer Shoes offers:
ā€¢
-

NIKE
15 models
Ranging price $30-$190
Special Nike ID customizable feature
Lightweight nature and durability
Indoor and outdoor models

ā€¢
-

ADIDAS
50 models
Ranging price $55-$220
Equipped with PowerPulse
Indoor and outdoor models

ā€¢
-

PUMA
30 models
Ranging price $25-$200
ā€œLace Wrapā€ System
Indoor and outdoor models
BRAND IMAGE
RECOMMENDATION
ā€¢ Recommendations for the Puma in order to strengthen
its brand image further include the revision of
strategies to be the main partner/sponsor of the Mega
Events like Olympics and Football World cups etc.
besides other integrated Marketing Communication
efforts. Brand Message is required to be communicated
all around and these forums will help the Puma in
creating Brand Awareness which ultimately results in
strong brand image for Puma and help Puma in
achieving its targets in all areas e.g. sale, market share
and enhanced profits.
92

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  • 2. History of Athletic Footwear Market ā€¢ Shape The sneaker as itā€™s commonly referred to as has evolved in many forms such as shape, design, features, functionality. ā€¢ Design The design element of the sneakers has evolved over the centuries. ā€¢ Features When sneakers were first created the main feature was to cover your foot and provide a new level for comfort. ā€¢ Functionality The original purpose was to for all purpose uses such as cleaning, gardening, going out.
  • 3. Evolution of the athletic shoes ā€¢ 1800ā€™s - Athletic shoe companies have been around since the late 1800ā€™s, and have evolved tremendously over that time. ā€¢ 1830ā€™s - Liverpool Rubber Company developed the Plimsoll shoe ā€¢ 1895 - The J.W. Foster company ā€¢ 1916 - Keds ā€¢ 1917 - Converse All Stars ā€¢ 1936 - Adi Dassler ā€¢ 1950 - Adidas ā€¢ 1970 - Nike ā€¢ 1980 - Air Jordansā€™ ā€¢ 21st century - Nike has dominated the sports landscape as the leading athletic shoe
  • 4. Market Overview Competitive environment of different brands Marketing and Advertising Strategy Competitive and Market Strategy
  • 6.
  • 7.
  • 8. ā€¢ NIKE, Inc. is the worldā€™s leading innovator in athletic footwear, apparel, equipment and accessories that is engaged in the design, development and worldwide marketing and selling. ā€¢ Headquarters: Beaverton, OR, USA ā€¢ Founded: January 25, 1964
  • 10. Bill Bowerman & Phil Knight Founder
  • 11. "To bring inspiration and innovation to every athlete in the world" Innovate for better world honesty, competitiveness, and teamwork 11
  • 12. Phil Knight and Bill Bowerman form Blue Ribbon Sports as a redistributor of Onitsuka Tiger Shoes. First appearance of Swoosh Waffle Trainer was introduced, quickly becoming the best-selling training shoe in the US. 12
  • 13. BRS, Inc. now officially known as Nike,Inc. Air Force1 basketball shoe was released Nike signed Michael Jordan to an endorsement contract, release Air Jordan shoes Nike Airmax1 released, first with visible air bubble 13
  • 14. Nike opened first Niketown in Portland. Nike signed Tiger Woods Bill Bowerman dies at age 88 Nike Shox introduced 14
  • 15. Nike acquired Converse and signed Lebron James for an $87m endorsement contract Nike and Apple released Nike + iPod kit. Nike releases their most expensive shoes to date, the Lebron X ($315) 15
  • 16. Graphic design created by Caroline Davidson in 1971. It represents the wing of the Greek Goddess 16
  • 17. 17
  • 18. ļƒ¼ Nikeā€™s foremost focus is athletic footwear, designed for sports and everyday usage with the brand name. ļƒ¼ The production facilities are located close to the raw material to have low labor prices. ļƒ¼ The company presently sells roughly 300 models of athletic shoes in 900 styles ā€“ ā€“ ā€“ ā€“ ā€“ ā€“ ā€“ ā€“ ā€“ ā€“ Running Basketball Training Football Soccer Skateboarding Golf Tennis Childrenā€™s shoes Customize with NIKEiD 18
  • 19. ļƒ¼ Nike charges high prices or premium prices for i high quality products and its famous brand. The pricing based on the basis of premium segment as target customers. ļƒ¼ Nikeā€™s pricing strategy use of vertical, take part in more than one channel level operations for control costs and influence product pricing. ļƒ¼ The company has designed its pricing structure in a way to make it competitive to other shoes sellers. ļƒ¼ The price of the products is variable depending on the type and the size for example a comfortable and good pair of shoes would cost from 70 to 150 dollars. 19
  • 20. ļƒ¼ Nike shoes are carried by multi-brand stores and the exclusive Nike stores across the global. ļƒ¼ Nike sells its product to about 25,000 retail accounts in the U.S. and in almost 200 countries around the world. This means that place strategy is used by Nike. ļƒ¼ In the international markets, Nike sells its products through independent distributors, licensees and subsidiaries. ļƒ¼ Independent distributors need not adapt to local pressures because the 4Ps of marketing are managed by distributors. 20
  • 21. ļƒ¼ Promotion is largely dependent on finding accessible store locations. It also avails of targeted advertising in the newspaper and creating strategic alliances. ļƒ¼ Nike has a number of famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane Oā€™Neal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf. 21
  • 22. ļƒ¼Nike also sponsors events such as Hoop It Up and The Golden West Invitational. ļƒ¼Nikeā€™s brand images, the Nike name and the trademark swoosh, make it one of the most recognizable brands in the world. ļƒ¼ Nikeā€™s brand power is one reason for its high revenues. ļƒ¼Nikeā€™s quality products, loyal customer base and its great marketing techniques all contribute to make the shoes empire a huge success. 22
  • 23. 23
  • 24. ā€¢ Niche marketing, narrowly defined customer group seeking a distinctive mix of benefits. ā€¢ In the lifestyle and apparel market targets consumers who identify with sport as a way of life and are brand conscious. 24
  • 25. ļƒ¼Geographic segmentation Density: Urban and semi-urban cities ļƒ¼Demographic segmentation ā€“ Age: 15 to 35 ā€“ Gender: Male and female ā€“ Income: Middle to high income ā€“ Social class: Upper middle, lower upper and upper class 25
  • 26. ļƒ¼Customer Profile ā€“ Athletes ā€“ Gym regulars ā€“ Sports enthusiasts ā€“ Brand freaks ā€“ Image seekers 26
  • 27. Nike has divided its customers into the following way: 1. Y Women 2. Y Men 3. Y Girls 3-36 months 3-8 years 8-15 years 4. Y Boys 3-36 months 3-8 years 8-15 years 27
  • 28. ļƒ¼Psychographic segmentation ļ± Active people who enjoy high quality sport footwear. ļ± Customer who feel so strongly that the firm can meet their needs best that any competitors are virtually excluded from their consideration. ļ± Consumers that wear Nike just want to build confident or make other feel they wearing a branded shoes but not ordinary shoes but not for sport purpose. ļ± For youth, they think Nike shoes is a fashion lifestyle and they wear it just to follow fashion trend. 28
  • 29. ļƒ¼Psychographic segmentation ļ± Active people who enjoy high quality sport footwear. ļ± Customer who feel so strongly that the firm can meet their needs best that any competitors are virtually excluded from their consideration. ļ± Consumers that wear Nike just want to build confident or make other feel they wearing a branded shoes but not ordinary shoes but not for sport purpose. ļ± For youth, they think Nike shoes is a fashion lifestyle and they wear it just to follow fashion trend. 29
  • 30. ļƒ¼Behavioral segmentation Most of them preferred Nike to Adidas, but felt that Nike was overpriced. Those who preferred Adidas, however showed great brand loyalty to the brand. They rate attributes like quality, price, durability, comfort, style, advertising and innovation on a scale of 10. The results that we obtained is graphically shown below Nike Adidas Quality Durability Price Comfort Style Advertising Innovation 30
  • 31. ļƒ¼Behavioral segmentation ļ± Customers purchase products through Nike towns, Nike stores, Nike outlet stores, and online website nike.com ļ± Customer attitudes : Customers have good attitude to Nike products. They share experience to their friends and family Nike including review products on internet which are spread to Adidas social very quickly. ļ± Advertising, brand ambassador and special sport occasion have effect to purchasing behavior of customers. For examples, FIFA world cup, PGA grand slam of golf. 31
  • 32. ļƒ¼Behavioral segmentation ļ± Customers purchase products through Nike towns, Nike stores, Nike outlet stores, and online website nike.com ļ± Customer attitudes : Customers have good attitude to Nike products. They share experience to their friends and family Nike including review products on internet which are spread to Adidas social very quickly. ļ± Advertising, brand ambassador and special sport occasion have effect to purchasing behavior of customers. For examples, FIFA world cup, PGA grand slam of golf. 32
  • 33. ļƒ¼The market segment targeting is quite essential to differentiate itself from competitors. ļƒ¼Nike offers its consumers the option to custom built their own shoes on its website, a huge Nike differentiation that Adidas does not have.Adidas ļƒ¼ Nike also has a large of innovative products, including the Nike+, in collaboration with Apple. 33
  • 34. ļƒ¼ Nike positions itself as the market leader of sports footwear with high price, high quality, high technology and uses the greatest athletes and the record of their achievements in advertising. ļƒ¼ The swoosh logo together with the Just Do It slogan expresses a high ambition and a will for victory, which is a part of Nikeā€™s Nike brand image and corporate culture. Adidas ļƒ¼ Nike, the largest seller of athletic footwear in the world .Nike has been launching new technically advanced shoe models from time to time 34
  • 35. However, the company still faces many challenges in ā€¢ the changing fashion trends, ā€¢ the falling sale of its higher- priced shoes ā€¢ increasing competition Nike Adidas 35
  • 36. 36
  • 37. ļƒ¼ Nike places a significant weight on marketing and its products. ļƒ¼ Nike agressively bonds the contracts with highly successful and influential athletes, coaches, teams and to popularize its footwear. ļƒ¼ Nike focus on the customer satisfaction. ļƒ¼ Nike invests a lot in its product R&D , 3 primaries area: ļ± Biomechanics ļ± Physiology ļ± Sensory ļƒ¼ Its innovation in products includes: ā€“ ā€œNike with Appleā€ ā€“ Designs your own shoes Nike Adidas 37
  • 38. 38
  • 39. ļƒ¼ Nike actively responds to trends and changes in consumer preferences by ļ± Adjusting the mix of existing product offering, ļ± Developing new products, style and categories, and Influencing sports and fitness preferences through aggressive marketing. ļ± Its primary areas of marketing remain internet, TV and magazines ļƒ¼ The only criterion where the company faces tough time is its high competitive prices. ļƒ¼ The competitors like Adidas that offer products at lower price compared to Nike. 39
  • 40. 40
  • 41. ā€¢ A German multinational corporation that designs and manufactures sports clothing and accessories. ā€¢ This holding company consists of the Reebok sportswear , TaylorMade-Adidas golf company (including Ashworth), Rockport, and 9.1% of FC Bayern Munich. ā€¢ Adidas is the largest sportswear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world. ā€¢ Headquarters: Herzogenaurach, Bavaria, Germany ā€¢ Founded: August 18, 1949 41
  • 42. FOUNDER ā€¢ Adolf "Adi" Dassler ā€¢ His brother Rudolf returned to Herzogenaurach to join his younger brother's business ā€¢ Rudolf Dassler became founder of Puma. 42
  • 43. MISSION STATEMENT The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position. Vision ā€¢ ā€¢ ā€¢ ā€¢ The company is innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market. The company are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value. The company are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders. The company are dedicated to consistently delivering outstanding financial results. 43
  • 44. Core value ā€¢ Performance Sport is the foundation for all we do and executional excellence is a core value of our Group. ā€¢ Passion Passion is at the heart of our company. We are continuously moving forward, innovating, and improving. ā€¢ Integrity The company are honest, open, ethical, and fair. People trust us to adhere to our word. ā€¢ Diversity The company takes people with different ideas, strengths, interests, and cultural backgrounds to make our company succeed. We encourage healthy debate and differences of opinion. 44
  • 45. TIMELINE GebrĆ¼der Dassler Schuhfabrik ( 1924-1936 ) ā€¢ Adolf "Adi" Dassler started to produce his own sports shoes in his mother's wash kitchen in Herzogenaurach, Bavaria after his return from World War I ā€¢ In July 1924, his brother Rudolf returned to Herzogenaurach to join his younger brother's business, which became Dassler Brothers Shoe Factory ā€¢ Business boomed and the Dasslers were selling 200,000 pairs of shoes each year before World War II World War II and company split ( 1945 ) ā€¢ Both brothers joined the Nazi Party ā€¢ The Dassler factory, used for production of anti-tank weapons during the war in April 1945, ā€¢ Adi Dassler's wife, KƤthe, convinced the GIs that the company and its employees were only interested in manufacturing sports shoes. ā€¢ American occupying forces subsequently became major buyers of the Dassler brothers' shoes. 45
  • 46. The brothers split up ( 1947 ) ā€¢ Rudolf forming a new firm that he called Ruda ā€“ from Rudolf Dassler, later rebranded Puma ā€¢ Adi forming a company formally registered as Adidas AG from Adi Dassler on 18 August 1949. ā€¢ "Adi" (a nickname for Adolf) and "Das" (from "Dassler"). The Tapie affair ( 1987- 1994) ā€¢ After the death of Adolf Dassler's son Horst Dassler in 1987, the company was bought in 1989 by French industrialist Bernard Tapie, ā€¢ Tapie was at the time a famous specialist of rescuing bankrupt companies, an expertise on which he built his fortune. ā€¢ Tapie decided to move production offshore to Asia. ā€¢ In 1992, Tapie mandated the CrĆ©dit Lyonnais bank to sell Adidas ā€¢ Tapie filed for personal bankruptcy in 1994 46
  • 47. Post-Tapie era (1994-2006) ā€¢ In 1994, combined with FIFA Youth Group, SOS Children's Villages became the main beneficiary. ā€¢ In 1997, Adidas AG acquired the Salomon Group and its official name was changed to Adidas-Salomon AG ā€¢ Adidas also acquired the Taylormade Golf company and Maxfli, which allowed them to compete with Nike Golf. The World's First Intelligent Shoe (2005) ā€¢ In 2005, Adidas introduced the Adidas 1, the first ever production shoe to use a microprocessor. Dubbed by the company ā€¢ in 2005, on 3 May, Adidas sold their partner company Salomon Group Acquired Reebok (2006) ā€¢ In 2006, Adidas acquired British rival Reebok as partner. The Revenue peak (2012) ā€¢ End of 2012, Adidas is reporting the highest revenues ever and Chief Executive Herbert Hainer expresses optimism for the year ahead. 47
  • 48. The Adidas Logo Logo #1: The Three Stripes Logo #2: The Trefoil Logo #3: The Three Bars The company simple placed three black stripes on everything that they manufactured This logo is still used on some of their products, particularly their line of classic products Most of their high-performance products have moved on to a third and final logo The three elements in this and all other Adidas logos are said to represent Dasslerā€™s three sons. This logo was chosen because the company wanted a logo that represented the fact that their brand was a lot larger and more diverse that it used to be while still keeping the classic Adidas look. Adidas Logo the Three Bars, This logo is the latest one that has been introduced, and it represents the finest equipment that Adidas sells 48
  • 49. 4Ps Products ļƒ¼ Providing high quality products aimed at providing the best value to the costumer. ļƒ¼ The products portfolio is continuously enhanced through creations and innovations throughout the companies various categories. This is pursued in order to cater to the various needs and wants of consumers worldwide. ļƒ¼ Well-known brands for sports apparels, equipment and accessories, the Adidas group has a diverse brand portfolio consists of: Adidas , Reebok , TaylorMade Adidas Golf , Rockport, CCMHockey 49
  • 50. 4Ps Price ļƒ¼ Using adapted pricing strategies, depending on which market they are operating in, so as to achieve its goals. ļƒ¼ Penetrating attack markets with lower prices or using market skimming tactics, for instance. ļƒ¼ In intense competition in the global market, the company is involved in regular evaluation of its price to ensure that the products stay competitive at the point of sale. 50
  • 51. 4Ps Place ļƒ¼ Distribute its products to the consumer with a strong focus on controlled space, including: Own-retail business, ecommerce, Shop-in-Shop, Joint ventures with retail partners, mono-branded franchise stores, co-branded stores with sports organizations and other brands. Hence, a high level of brand control is provided. ļƒ¼ In addition, an ā€œintegrated distribution roadmapā€ has been set up to ensure further growth and to increase brand presence in under-penetrated, affluent cities, without cannibalizing their own brands and distribution mix. 51
  • 52. 4Ps Promotion ļƒ¼ Different promotional tools are used in order to reduce the number of lost customers and to increase sales. ļƒ¼ The group has set up an unparalleled portfolio of promotion partnerships with international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and NHL). ļƒ¼ Commercials, ads, apps for smartphones, product placement, sponsorships for athletes and sport events (e.g. Berlin Marathon 2011) 52
  • 53. Market Segmentation GEOGRAPHIC SEGMENTATION: divided the market into different units of location ā€¢ neighborhood, ā€¢ states, ā€¢ regions ā€¢ cities ā€¢ countries. ā€¢ Adidas Bold 2009 have operated in urban and semi-urban cities of India. BEHAVIORAL SEGMENTATION: This segment divided the consumers according to their attitude, knowledge, response and use of the product. Below are the behavioral segmentation for Adidas: ā€¢ Benefits ā€¢ Gym regular users ā€¢ Sports lovers ā€¢ Athletes ā€¢ Image seekers ā€¢ Brand freaks PSYCHOGRAPHIC SEGMENTATION: the analysis of the different personalities of each consumers. The only key is to be different. ā€¢ Achievers ā€¢ Well-experienced ā€¢ Hard workers ā€¢ Goal achievers DEMOGRAPHIC SEGMENTATION: divided into different segments based on the variables of family size, family life cycle, income, gender, age and etc The demographic segmentation of Adidas as follows: ā€¢ Age 15-36 ā€¢ Income level: $15,000 ā€¢ Social Class: Upper middle, upper class and lower upper. ā€¢ Gender: Both male and female 53
  • 54. Target Markets ā€¢ sports personalities involved in various sporting activities such as soccer, rugby, athletics and basketball. ā€¢ young people ā€¢ male and female ā€¢ averagely between the ages of 10 to 30 54
  • 55. Product Positioning adidas ā€¢ the brand strive to be the globally leading and most popular sporting goods brand ā€¢ focus is mainly on innovation and technology adidas Originals ā€¢ the first brand leveraging its sports assets in the lifestyle area ā€¢ it is regarded as a legitimate sports lifestyle brand. ā€¢ Snoop Dogg. Or Rihanna. Or Katy Perry. adidas Sport Style ā€¢ "Future of Sportswear" ā€¢ includes the labels Y-3 ā€¢ Porsche Design Sport Reebok ā€¢ American-inspired sports brand with the clear objective to become the leading fitness brand in the world adidas NEO, From the track to the catwalk, it helps you to "Style your Life" 55
  • 56. Strategies ļƒ¼ ļƒ¼ ļƒ¼ ļƒ¼ ļƒ¼ ļƒ¼ ļƒ¼ ļƒ¼ Creating shareholder value Investments focused on highest-potential markets and channels Creating a flexible supply chain Leading through innovation Develop a team grounded in company heritage Becoming a sustainable company Brandā€™s Broad and Unique Product Portfolio Brand Extension Strategies Adidas Core Competencies ā€“ ā€“ ā€“ ā€“ ā€“ Technology Customer focus Brand recognition Supply chain Collaboratively competitive 56
  • 57. Why Adidas is number two compare to Nike? ā€¢ Nike has an overall better selection of gym shoes, and basketball shoes compare to than Adidas. ā€¢ Nike have wider variation of types of shoes which ranges anywhere from boots, to basketball shoes. ā€¢ Nike also are endorsed by higher profile athletes than Adidas does. ā€¢ Nike has players like Kobe, and Cristiano Ronaldo while Addidas has Kevin Garnett, who is passed his prime. ā€¢ Nike's shoes are also more stylish, and well known. ā€¢ Nike have higher modification function for customers on design and technology 57
  • 58. How to improve to rank no.1 in this market? ā€¢ Adidas should improve its product lines substantially as variation in products could lead to better and improved sales which form a major objective of any business organization. ā€¢ Adidas should concern more on innovation along with strategic partnership, Now, Adidas signed a contract with Samsung to produce a shoe + phone promotional campaign. In this strategic partnership, both the companies developed a phone to be used with shoes during training ā€¢ Improve brand association of professionals with Adidas is that it has a culture of technology and has a history of achieving a strong position in the minds of target customers. ā€¢ Adidas should work towards improving market share and being at par with Nike which is currently the world leader in Athletic footwear. Adidas should focus on roping in more celebrities to promote their products 58
  • 59. PUMA
  • 60. Puma core value ā€¢ Design innovation and inclusiveness, and communicated through all consumer touch points, from product to distribution to marketing
  • 61. Puma history ā€¢ 1924 - the company was funded in Germany by Rudolph and Adolf Dassoer. Originally Puma shoes wore by many Olympic athletes. ā€¢ 1948 ā€“ The brothers split their business, Adolf called his firm Adidas. Rodolf called his new firm Ruda( from Rudolph Dassler), after changed its name to Puma ā€¢ 1950 ā€“ Puma gains attention for the development of their soccer shoes.
  • 62. Puma history ā€¢ 1960 ā€“ Puma becomes the first sports shoes manufacturer to use the vulcanization production technique. To support Puma athletes in showing top performances. ā€¢ 1986 ā€“ Puma issue IPO on the Frankfurt stock exchange ā€¢ 1998 ā€“ Puma merges sport and fashion by collaboration with designer Jil Sander.
  • 63. Puma history ā€¢ 2001 ā€“ Puma acquires Tretorn Group. ā€¢ 2007 ā€“ more than 60% of company shares are acquired by French luxury goods company PPR(owns Gucci and Yves Saint Laurent).
  • 64. Puma segment ā€¢ Puma's market segmentation targets unique, exclusive, imagination consumers who attractive originality.
  • 65. Puma segment ā€¢ In the dynamic changing consumer market, Puma intent to surprise consumers by constantly delivering the unexpected and challenging perceptions that continues to be a defining representative in the world of sports.
  • 66. Puma target group ā€¢ Puma target market is for the ages 15-30 which is the age when a person is sporty and active the gender is for both female and male with a range of females and males sports clothing, shoe wear even a perfume line.
  • 67. Puma position ā€¢ Puma position themselves as the creative leader in Sportlifestyle gives us the opportunity and the responsibility to contribute to a better world for the generations to come
  • 68. Puma mission ā€¢ Puma mission is to become the most desirable and sustainable Sportlifestyle company in the world.
  • 69. Puma vision ā€¢ Puma.Creative ā€“ the core competency by co-ordinate of different creative and artists department ā€¢ Puma.Safe ā€“ comprises of initiatives and commitment for environmental protection and improved working environment. Puma lunched many programs implementing cleaner, safer and more sustainable systems and processes within the supply chain. ā€¢ Puma.Peace ā€“ to supports the global Day of Ceasefire or The International Day of Peace known as World Peace Day on September 21 every year. The idea is the power of sports would persuade people to get into peace.
  • 71. Puma strategy ā€¢ Puma specific on sportlifestyle original in sport then combine to lifestyle by fashion approaches. The strategic objectives and related expansion targets this long-term strategic objective is to be achieved through three ways:
  • 72. Puma strategy ā€¢ First, Product expansion both develop existing product and expand to new product. Develop existing product the entire sportlifestyle from sport to fashion base on eliminate weakness and improve design. Expand to new product need to distinguish the Puma brand from the market and from competition in a unique manner.
  • 73. Puma strategy ā€¢ Second, Geographic expansion, Puma aims expansion both in the wholesale and in its own retail business. Additional goal is to terminate the major distribution licenses and to consolidate the business. The targeted expansion strategy in conjunction with to be obvious virtualization of business processes should lead to get more strengthen and expansion of the share of retail operations in consolidated sales.
  • 74. Puma strategy ā€¢ Third, Expansion with Non-Puma Brands, In addition to the brand Tretorn (since 2001) Puma does not rule out expansion with non-Puma brands. And acquisition if that brand can increase sustainable of the company.
  • 75. Marketing Mix for Puma ā€¢ PRODUCT ā€“ Puma shoes is sport lifestyle so their need to have fresh design in order to provide the best shoes to their customer.
  • 76. Marketing Mix for Puma ā€¢ PRICE ā€“ Puma price base on premium segment. For premium brand like Puma if they set their price too low it would destroy brand reputation. Product warranty for online they provide half-month warranty to every customer to gain customer loyalty, that If customer not happy for any reason have been seen after purchase we will exchange with a new pair of shoes in order to create brand image.
  • 77. Marketing Mix for Puma ā€¢ PLACE ā€“ Traditional sale is customer come to outlet and buy, customer can find product that fit, color and style to them. ā€¢ Online shopping provide more convenience to customer and give more advantage such as extensive online catalog, current news on Puma, newest items.
  • 78. Marketing Mix for Puma ā€¢ PROMOTION ā€“ Stimulate sale volume by launch new promotion. Package design involves the development of a container and a graphic design for a product. Packaging function is to protecting product from damage and it can add value to product by concern about environment sustainable.
  • 79. Why Puma is no.3 of sport shoes market? ā€¢ Puma still very low brand awareness, low market share , low advertising ā€¢ Puma brands have revealed they are enthusiastic to respond to the great eco-challenge announced by Greenpeace, aiming to annihilate the usage and disposal of hazardous chemicals until 2020.
  • 80. How Puma can improve business performance in these market? ā€¢ In economic downturn Puma should do two approaches. ā€¢ First increase investment into develop new product.
  • 81. How Puma can improve business performance in these market? ā€¢ Second Geographical Expansion. If Puma can expand into Asia they will get a lot of market share.
  • 82. How Puma can improve business performance in these market? ā€¢ Puma should use Flanking attack and Bypass attack. Use flanking attack to attack the leadersā€™ weakness, for example one huge weakness with the NIKE Company is that they fail to see problems in relation to their labor and factory conditions. So Puma set their employee is first priority, like Puma talent management and International leadership program.
  • 83. How Puma can improve business performance in these market? ā€¢ Overview of International Leadership Program. Puma talent management
  • 84. How Puma can improve business performance in these market? ā€¢ Bypass attack initiate new product into new market.
  • 85. How Puma can improve business performance in these market? Product Table Prototype for Puma Black Station Store in Tokyo Puma phone
  • 86. Analysis NIKE ā€œperformance driven styleā€ ADIDAS ā€œsport performanceā€ ā€œsport heritageā€ ā€œsport styleā€ PUMA ā€œactive lifestyleā€
  • 87. NIKE ADIDAS PUMA Reason for being To bring inspiration and innovation to every athlete in the world Improving every athleteā€™s performance through innovation Mixing the influences of sports, lifestyle and fashion Value proposition Just do it Perform at the highest level Fits your active lifestyle Reasons to believe - Footwear technology platforms (shox, air, airmax, zoom air) - Cutting edge performance / lifestyle apparel l- Mass customization (NIKE ID) - Full line of performance / lifestyle accessories - Digital / Physical Experiences (Co-branding with IPOD) - Social responsibility (Livestrong, United Nations programs) - Branded retail experiences (Niketown) - Event sponsorships (marathons, Olympics) - Footwear technology innovations - Automatic customization (Adidas1) - Co-developed celebrity lines (Stella McCartney) - Classic styles, tradition and heritage - Mass Customization (Adicolor) - Distinctive trend setting styles - Branded retail experiences (concept stores) - Co-developed celebrity lines (Turlington / Nuala) - Co branding partnerships (Ferrari) - Partnerships with famous designers (Starck, Wanders) - Mass customization (Mongolian bbq) - Promotional events (beats & treats) Persona Athletic, influential, outgoing, fresh, aggressive, hi-tech, futuristic, retro cool Clear, orderly, practical, hi-tech, classic, sophisticated, sincere Elegant, colorful, fresh, spontaneous, individual, metropolitan, international Associations Athletes at the top of their respective sport (Michael Jordan, Tiger Woods, Lance Armstrong) Unfair labor practices Elite Soccer players, soccer teams, NBA stars Hip hop artists (Run DMC) Mainstream sports - Fashion brands (Gucci, Armani, Dolce & Gabbana) - Fringe / extreme sports - Music artists & movie stars Range of authority Footwear, apparel, equipment in multiple categories High performance footwear Performance & casual apparel Performance & casual footwear Apparel & accessories Audience All athletes - anyone with a body Anyone who plays sports Anyone who leads an active lifestyle Relationship Fellow athlete Respected coach Hip friend who shows you a good time
  • 88. Soccer Shoes Comparison August 2009 Soccer Shoes offers: ā€¢ - NIKE 15 models Ranging price $30-$190 Special Nike ID customizable feature Lightweight nature and durability Indoor and outdoor models ā€¢ - ADIDAS 50 models Ranging price $55-$220 Equipped with PowerPulse Indoor and outdoor models ā€¢ - PUMA 30 models Ranging price $25-$200 ā€œLace Wrapā€ System Indoor and outdoor models
  • 89.
  • 91. RECOMMENDATION ā€¢ Recommendations for the Puma in order to strengthen its brand image further include the revision of strategies to be the main partner/sponsor of the Mega Events like Olympics and Football World cups etc. besides other integrated Marketing Communication efforts. Brand Message is required to be communicated all around and these forums will help the Puma in creating Brand Awareness which ultimately results in strong brand image for Puma and help Puma in achieving its targets in all areas e.g. sale, market share and enhanced profits.
  • 92. 92