PUMA analysisPresentation Transcript
1. Garcia | Luyong | Mendoza | Patriarcha | Pelayo| Siraj
2. 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 : tshirts, track jackets, pants, and hooded sweatshirts. • Accessories: backpacks, belts, headwear,
socks and utility bags.
3. Products
4. FAMOUS ENDORSERS USAINBOLT 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. SERENAWILLIAMS Professional American tennis player. She
became the world no. 1 for the first time on July 8, 2002. Current ranking: no.4 LEXITHOMPSON
At 12, she became the youngest player in history to qualify for the U.S. Women‟s Open. 2011youngest professional golfer to win a professional tour event (2011 NAVISTAR LPGA CLASSIC).
5. 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.
6. VALUES FAIR HONEST We believe that by staying true to our values, inspiring the passion
and talent of POSITIVE CREATIVE our 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.
7. Macro Environment: PESTEL Analysis Opportunities Threats Political forces Outsourcing
Employment Environment protection Environmental Issues Trade Restrictions Tariffs Economic
forces Stable economy of Asia Import/export conditions GNP and GNP growth rates EMEA crisis
America's economy is slowing down Social/Cultural forces Lifestyle trends Increase in popularity
of sports Misunderstanding with other cultures
8. Opportunities Threats Technological forces R&D Activities Automation Global Communication
Developments 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
9. PUMA‟s Managing Director Managing Directors Klaus Bauer Chief Operating Officer Franz
Koch Chief Executive Officer Stefano Caroti Chief Commercial Officer Antonio Bertone Chief
Marketing Officer Reiner Seiz Chief Supply Chain Officer
10. PUMA‟s Administrative Board Jochen 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 Hymel Chief Operating Officer (COO) of the Sport & Lifestyle division of
Guy Buzzard (Employees' Representative) Key Account Manager (Sales) of PUMA United
Kingdom Ltd., Manchester, Englan d Jean-François Palus Deputy Chief Executive Officer and
Chief Financial Officer (Directeur Général Délégué/Directeur Financier) of PPR S.A., Paris,
France Thore Ohlsson President of Elimexo AB, Falsterbo, Sweden Michel Friocourt Director
Legal (Directeur Juridique) of PPR S.A., Paris, Franc e 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
11. 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)
12. OPPORTUNITY THREAT STRENGTH Eco-friendly products Has strong ethical values and
ethical mission and vision statement Endorsers winning on Olympics and world cups Puma has
grown substantially over recent years, and has experience global expansion Strong financial
capabilities WEAKNESS Collaboration through different shoe company such as Cobra and
Tretorn Open more store (online or store outlet) Possible market in India Retail sector is
becoming very competitive and consumers are highly price sensitive
13. Jamaica Olympic Association, BMW motorsport, soccer and rugby teams , Alexander
McQueen Mihara Yasuhiro Sergio Rossi Impahla clothing, Distributors, Wholesalers Licensing,
Retail, Bring me back bin Retail 2.0 Brand Subsidiaries Lifestyle Working Capital Labor Force
Puma Creative Fair Honest Customer Oriented Athletic, active eccentric, indivi dualistic and bold
Retail 2.0 Gift coupons Gives Value to Customers Updates customers Transparency By Region:
EMEA, ASI A PACIFIC, A MERICA Ages 20‟s to 30‟s Class A-B Store Outlets Online Store or
Web Sales Puma Franchises For the year 2011 Estimated Break Even point = 2373.5644 Euros
Gross margin % =49.6% EBIT % = 8.6% EBT% = 6.3% Sales wholesale (2407.2) 80 retail
(361.08) 12 e-com (240.72) 8
14. 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
15. Sales (By Region) Asia/Pacific (750) America(1100) EMEA(1350) In million Euros
16. 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.
17. PUMA Creative • The creative factory Paint, 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, B ratislava, Bucharest, Budapest, Dubai, Kiev, new Delhi, Prague, Sofia, Warsaw and
Zagreb.
18. PUMA Creative Factory „Built For One‟ Ukraine The iconic PUMA T7 Jacket continues to
inspire creative minds from all around the world! Now it will also help to fight against AIDS.
19. Distribution Channels Online Store Puma Store Outlet Franchises
20. • 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
21. - Lapasan Street Cagayan De Oro City, Philippines - Mandalagan Street Bacolod City,
Philippines 6100 - 697 PUMA Retail Stores - 328 PUMA Outlets
22. 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.
23. 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.
24. 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.
25. • 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.
26. • 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
27. • Quality- The durability and consistency of the product • Convenience- Ease of use
28. Revenue Streams Sales wholesale (2407.2) retail (361.08) e-com (240.72) In Million Euros
29. Sales Puma Brand(2701.8) Non - Puma Brand(300) In Million Euros
30. 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
31. DISTRIBUTORS Asia - Pacific (8) America (10) EMEA (25)
32. Key Activities • Retailing • Eco-friendly – Bring Me Back Bin – Clever Little Bag – PUMA ReSuede • Back On The Attack • Licensing
33. 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.”
34. 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.
35. Clever Little Bag
36. 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.
37. 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.
38. 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.
39. “Back on The Attack Strategy” 2010 2015 3Billion Euros 4Billion Euros
40. 2015 OBJECTIVE • To be the most desirable and sustainable Sportlifestyle 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
41. 6 Strategies • Restructuring • Transformation • Brand/Marketing Heat • Product Desirability •
Distribution Focus • Non-PUMA Brand Development
42. IMPACT ON BUSINESS MIX
43. 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
44. Product Segment 2012(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
45. By Region 2012(Euros) Vs. 2015(Euros) APAC 3,000,000,000 x 0.21 = 630,000,000
4,000,000,000 x 0.23 = 920,000,000 America 3,000,000,000 x 0.31 = 930,000,000
4,000,000,000 x 0.27 = 1,080,000,000 EMEA 3,000,000,000 x 0.48 = 1,440,000,000
4,000,000,000 x .50 = 2,000,000,000
46. By Distribution 2012(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
47. Key Partners
48. 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.
49. 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
50. 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
51. PUMA Teams
52. Designers Alexander McQueen Mihara Yasuhiro Sergio Rossi
53. Cost Structure By Product Footwear (1561m) Apparel (1111.9m) Accessories (495.5m)
54. 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%
55. Cost Structure • Puma operated at (3009m/1178) which is equal to 255% of Break-Even
during the year 2011.
56. Mission To 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 Vision PUMAVision – 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. Values PUMA RETAIL 2.0
57. 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.
58. 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.
59. 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.
60. Brand integrity Brand DifferentiationPositioning •Mixing the influence of sports, lifestyle, and
fashion. •Targets active, eccentric, ind ividualistic, 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
61. 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
62. FINANCIAL CUSTOMER INTERNAL BUSINESS PROCESS LEARNING & GROWTH
OBJECTIVES To 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
TARGETS 3.3B euros- 2013 3.7B Euros- 2014 4B Euros- 2015 30% of market share by 2015
Add 34 outlets by 2013 33 outlets by 2014 33 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
63. 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.
64. 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
1493.3 49.61% 1638 48.64% 1787 49.64% 1936 49.64% 2085 49.64% OPERATING
EXPENSES (1177.8) (39.14%) (1287) (39%) (1404) (38.89%) (1521) (39%) (1638) (39%) OPM
333.2 11.07% 351 383 415 447 NET INCOME 230.4 7.65% 245.7 268.1 290.5 312.9 (In million
Euros)
65. 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.
66. 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.
67. 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.
68. 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.
69. 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.
70. 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.
71. 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.
72. 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.
73. 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
74. Division of Labor

Puma analysis presentation transcript

  • 1.
    PUMA analysisPresentation Transcript 1.Garcia | Luyong | Mendoza | Patriarcha | Pelayo| Siraj 2. 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 : tshirts, track jackets, pants, and hooded sweatshirts. • Accessories: backpacks, belts, headwear, socks and utility bags. 3. Products 4. FAMOUS ENDORSERS USAINBOLT 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. SERENAWILLIAMS Professional American tennis player. She became the world no. 1 for the first time on July 8, 2002. Current ranking: no.4 LEXITHOMPSON At 12, she became the youngest player in history to qualify for the U.S. Women‟s Open. 2011youngest professional golfer to win a professional tour event (2011 NAVISTAR LPGA CLASSIC). 5. 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. 6. VALUES FAIR HONEST We believe that by staying true to our values, inspiring the passion and talent of POSITIVE CREATIVE our 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. 7. Macro Environment: PESTEL Analysis Opportunities Threats Political forces Outsourcing Employment Environment protection Environmental Issues Trade Restrictions Tariffs Economic forces Stable economy of Asia Import/export conditions GNP and GNP growth rates EMEA crisis America's economy is slowing down Social/Cultural forces Lifestyle trends Increase in popularity of sports Misunderstanding with other cultures 8. Opportunities Threats Technological forces R&D Activities Automation Global Communication Developments 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 9. PUMA‟s Managing Director Managing Directors Klaus Bauer Chief Operating Officer Franz Koch Chief Executive Officer Stefano Caroti Chief Commercial Officer Antonio Bertone Chief Marketing Officer Reiner Seiz Chief Supply Chain Officer 10. PUMA‟s Administrative Board Jochen 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 Hymel Chief Operating Officer (COO) of the Sport & Lifestyle division of Guy Buzzard (Employees' Representative) Key Account Manager (Sales) of PUMA United
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    Kingdom Ltd., Manchester,Englan d Jean-François Palus Deputy Chief Executive Officer and Chief Financial Officer (Directeur Général Délégué/Directeur Financier) of PPR S.A., Paris, France Thore Ohlsson President of Elimexo AB, Falsterbo, Sweden Michel Friocourt Director Legal (Directeur Juridique) of PPR S.A., Paris, Franc e 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 11. 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) 12. OPPORTUNITY THREAT STRENGTH Eco-friendly products Has strong ethical values and ethical mission and vision statement Endorsers winning on Olympics and world cups Puma has grown substantially over recent years, and has experience global expansion Strong financial capabilities WEAKNESS Collaboration through different shoe company such as Cobra and Tretorn Open more store (online or store outlet) Possible market in India Retail sector is becoming very competitive and consumers are highly price sensitive 13. Jamaica Olympic Association, BMW motorsport, soccer and rugby teams , Alexander McQueen Mihara Yasuhiro Sergio Rossi Impahla clothing, Distributors, Wholesalers Licensing, Retail, Bring me back bin Retail 2.0 Brand Subsidiaries Lifestyle Working Capital Labor Force Puma Creative Fair Honest Customer Oriented Athletic, active eccentric, indivi dualistic and bold Retail 2.0 Gift coupons Gives Value to Customers Updates customers Transparency By Region: EMEA, ASI A PACIFIC, A MERICA Ages 20‟s to 30‟s Class A-B Store Outlets Online Store or Web Sales Puma Franchises For the year 2011 Estimated Break Even point = 2373.5644 Euros Gross margin % =49.6% EBIT % = 8.6% EBT% = 6.3% Sales wholesale (2407.2) 80 retail (361.08) 12 e-com (240.72) 8 14. 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 15. Sales (By Region) Asia/Pacific (750) America(1100) EMEA(1350) In million Euros 16. 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. 17. PUMA Creative • The creative factory Paint, 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, B ratislava, Bucharest, Budapest, Dubai, Kiev, new Delhi, Prague, Sofia, Warsaw and Zagreb. 18. PUMA Creative Factory „Built For One‟ Ukraine The iconic PUMA T7 Jacket continues to inspire creative minds from all around the world! Now it will also help to fight against AIDS.
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    19. Distribution ChannelsOnline Store Puma Store Outlet Franchises 20. • 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 21. - Lapasan Street Cagayan De Oro City, Philippines - Mandalagan Street Bacolod City, Philippines 6100 - 697 PUMA Retail Stores - 328 PUMA Outlets 22. 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. 23. 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. 24. 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. 25. • 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. 26. • 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 27. • Quality- The durability and consistency of the product • Convenience- Ease of use 28. Revenue Streams Sales wholesale (2407.2) retail (361.08) e-com (240.72) In Million Euros 29. Sales Puma Brand(2701.8) Non - Puma Brand(300) In Million Euros 30. 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 31. DISTRIBUTORS Asia - Pacific (8) America (10) EMEA (25) 32. Key Activities • Retailing • Eco-friendly – Bring Me Back Bin – Clever Little Bag – PUMA ReSuede • Back On The Attack • Licensing 33. 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.” 34. 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-
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    Collect creates aclosed-loop system that diverts product from the landfill, and becomes a new product. 35. Clever Little Bag 36. 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. 37. 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. 38. 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. 39. “Back on The Attack Strategy” 2010 2015 3Billion Euros 4Billion Euros 40. 2015 OBJECTIVE • To be the most desirable and sustainable Sportlifestyle 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 41. 6 Strategies • Restructuring • Transformation • Brand/Marketing Heat • Product Desirability • Distribution Focus • Non-PUMA Brand Development 42. IMPACT ON BUSINESS MIX 43. 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 44. Product Segment 2012(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 45. By Region 2012(Euros) Vs. 2015(Euros) APAC 3,000,000,000 x 0.21 = 630,000,000 4,000,000,000 x 0.23 = 920,000,000 America 3,000,000,000 x 0.31 = 930,000,000 4,000,000,000 x 0.27 = 1,080,000,000 EMEA 3,000,000,000 x 0.48 = 1,440,000,000 4,000,000,000 x .50 = 2,000,000,000 46. By Distribution 2012(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 47. Key Partners 48. 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
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    integrated financial andsustainability 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. 49. 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 50. 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 51. PUMA Teams 52. Designers Alexander McQueen Mihara Yasuhiro Sergio Rossi 53. Cost Structure By Product Footwear (1561m) Apparel (1111.9m) Accessories (495.5m) 54. 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% 55. Cost Structure • Puma operated at (3009m/1178) which is equal to 255% of Break-Even during the year 2011. 56. Mission To 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 Vision PUMAVision – 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. Values PUMA RETAIL 2.0 57. 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. 58. 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. 59. 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
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    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. 60. Brand integrity Brand DifferentiationPositioning •Mixing the influence of sports, lifestyle, and fashion. •Targets active, eccentric, ind ividualistic, 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 61. 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 62. FINANCIAL CUSTOMER INTERNAL BUSINESS PROCESS LEARNING & GROWTH OBJECTIVES To 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 TARGETS 3.3B euros- 2013 3.7B Euros- 2014 4B Euros- 2015 30% of market share by 2015 Add 34 outlets by 2013 33 outlets by 2014 33 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 63. 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. 64. 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 1493.3 49.61% 1638 48.64% 1787 49.64% 1936 49.64% 2085 49.64% OPERATING EXPENSES (1177.8) (39.14%) (1287) (39%) (1404) (38.89%) (1521) (39%) (1638) (39%) OPM 333.2 11.07% 351 383 415 447 NET INCOME 230.4 7.65% 245.7 268.1 290.5 312.9 (In million Euros) 65. 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. 66. 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. 67. 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. 68. 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
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    they can quicklyadapt 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. 69. 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. 70. 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. 71. 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. 72. 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. 73. 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 74. Division of Labor