PUMA BRAND AUDIT

SUBMITTED BY- PGDM MARKETING (2016-18)

SIMRAN KAUR (17) | MEDHA VTSYAYANA (62)
PRIYANKA BHILARE (108) | GAURAV KUMAR (130)
Table of Contents
Sport Shoes Industry in India ............................................................................................................. 2
Background ......................................................................................................................................... 2
Brief History .................................................................................................................................... 2
Brand Portfolio ............................................................................................................................... 3
Brand Inventory: ................................................................................................................................ 3
Brand Elements .............................................................................................................................. 3
Product ........................................................................................................................................... 5
Pricing: ............................................................................................................................................ 6
Distribution ..................................................................................................................................... 6
Communication and Advertising: .................................................................................................. 6
Ambassadors: ................................................................................................................................. 7
Sports and Culture:......................................................................................................................... 7
Brand Exploratory: ............................................................................................................................. 8
Consumer knowledge..................................................................................................................... 8
Brand Resonance Pyramid ............................................................................................................. 9
Competitive Analysis:....................................................................................................................... 10
Points of Parity ............................................................................................................................. 12
Points of Difference...................................................................................................................... 12
Sport Shoes Industry in India:
The sportswear industry in India is valued at between Rs 3,500 crores and Rs 5,000 crores.
India is the third largest footwear consuming country in the world after China and USA, but
with very little separating the three, India is very soon expected to be the second largest
consumer as well.
The sport shoes industry is currently growing at compounded annual growth rate of 18%.
Indias footwear segment in general caters to men, women and kids, and mens footwear
comprises 55% of the entire industry, followed by womens footwear at 30% and kids
footwear at 15%.
In India, people do not just wear sports shoes while taking part in sporting activities; they
wear them with casual attire too.
The top four sporting brands in India are Reebok, Adidas, Nike, and Puma.
Reebok is the market leader with 46% of the total market share followed by Nike with 11%,
Adidas with 5% and Puma with 3%.
The sports shoe industry in India is definitely going to grow, given peoples awareness and
how conscious they are about their health. One of the selling propositions of sports shoe
brands in most parts of the world is the technology behind the shoe.
At present, the average Indian consumer is not as aware of these technologies as he should be,
which is why brands such as Nike, which develops shoes with unique technologies, are not
very popular in India. However, this will soon change with greater publicity and awareness.

Background:
Brief History:
Reebok is a global athletic footwear and apparel company, operating as a subsidiary of Adidas since
2005.Reebok produces and distributes fitness, running and CrossFit sportswear including clothing and
footwear. The brand has also collaborated with other companies to produce fitness equipment and
workouts. It is the official footwear and apparel sponsor for Ultimate Fighting Championship (UFC),
CrossFit, Spartan Race, and Les Mills.

In 1958, Reebok was established as a companion company to J.W. Foster and Sons, founded in 1895
in Bolton, Greater Manchester, England. From 1958 until 1986, Reebok apparel featured a Union Jack
flag. The company began expanding from tennis and aerobics shoes to running and basketball
throughout the mid to late 1980s, the largest segments of the athletic footwear industry at the time.
In 1985, Reebok had its initial public offering on the New York Stock Exchange under the ticker symbol
RBK.

In August 2005, Adidas acquired Reebok as a subsidiary, uniting two of the largest sport outfitting
companies, but maintaining operations under their separate brand names. Adidas acquired all of the
outstanding Reebok shares and completed the deal valued at $3.8 billion.

The company has released numerous notable styles of footwear including the 1982 introduction of
the Reebok Freestyle that was manufactured and marketed for women. The brand also introduced
one of their most signature shoes, The Reebok Pump.

In 2010, the brand released Reebok Zig, an athletic footwear technology and collection of shoes
include zigzag foam soles designed to push athletes forward. The Reebok Nano was released in 2011
and is the first official CrossFit shoe.

In 2017, the UFC announced the launch of a new collection under the name Fight Night Collection
that includes an upgraded version of the Reebok-branded apparels.
Brand Portfolio:
Reebok: An American-inspired global brand with the clear objective to become the worlds leading fitness
brand. With Reebok, we aspire to make our consumers fit for life. Innovation is rooted in developing
products, technologies and programming which enable consumers to live a healthy lifestyle and have fun
doing it. Reebok connects with the fitness consumer wherever they are and however they choose to stay
fit whether its training, running, walking, dance, yoga or aerobics. In addition, Reebok Classics
leverages the brands fitness heritage and represents the roots of the brand in the sports lifestyle market.
Reebok is a global brand that is committed to developing innovative products which will allow Reebok to
own Women's Fitness, challenge the Men's Sport Category and revive its classic heritage.

Reebok - CCM Hockey: CCM, formerly an initialism for Canada Cycle & Motor Co. Ltd., is a hockey
equipment and cycling brand. The brand is held by two separate entities both maintaining the CCM
trademark, one (The Hockey Company) manufacturing ice hockey equipment and the other, CCM (cycle)
manufacturing bicycles. In June 2004, The Hockey Company was bought by Reebok. All brands other than
the CCM brand were retired and Reebok introduced its own RBK Hockey gear, later to be re-branded as
Reebok Hockey.

Rockport: The Rockport Group is a manufacturer of shoes based in Newton, Massachusetts. It is home to
the Aravon, Dunham and Rockport brands and the popular Rockport Cobb Hill Collection. In 1986,
Rockport was preparing to go public when the family decided instead to sell the company to athletic
footwear giant Reebok

Brand Inventory:

Reeboks I am what I am campaign was aimed to encourage young people to embrace their own
individuality by celebrating their contemporary heroes. Reebok tapped star power by getting celebrities
from the music, film and sports industry to endorse it. Through the campaign, we hope to encourage young
people to find their own voice by celebrating contemporary icons who have accomplished their dreams by
being true to themselves and following their own unique path to greatness.

Brand Elements:

The Reebok logo holds a unique place in sports world and is undoubtedly among the most popular apparel
logos ever created. The original Reebok logo depicts the Union Jack, portraying the companys humble
beginnings in Bolton, England in 1895. In 1986, Reebok unveiled a second emblem, often termed as the
vector. The emblem was introduced to symbolize a new era of performance product. Its design was
inspired by the cues on the product, often called the side stripe cross check.

In 1996, the Reebok logo underwent only a few minor changes. Reebok took a big step in 1998 and took
away their logotype, while using only the cross check which appeared on their products very aesthetic.
In 2000, the company once again took out the logo and used only logotype, which was further modified
and made more modern in 2002.

In 2004, the logotype, too, was discarded, and the cross check was reissued. To attain a bigger link to the
youth market, the company brought in a new tier of product called Rbk in 2001. The wide success of
this rebranding made Reebok to look at its overall branding scheme and learn that the future of the
brand would be more effectively depicted by this new logo. The Rbk logo was created by the Arnell
Group.

Celebrating the 50th anniversary of the brand name in 2008, Reebok brought back its brand identity from
Rbk to Reebok. While Rbk worked for their brand identity, the culture and the business, Reebok is
timeless and manifests the companys high values. The Reebok logo design features a new font that is
modern yet simple, complementing the brand identity and reflecting the brand values.
The new Reebok Delta symbol represents the positive and transformative change that fitness can have on
a persons life. Through the millennia the delta has been a symbol of change and transformation. The
Reebok Delta has three distinct parts each representing the changes physical, mental and social that
occur when people push themselves beyond their perceived limits and embrace an active and challenging
life.

2014

2014 - Present
Product:
Reebok has strategically launched various new products in Mens and Womens segment. This study
has described all those products range launched by the company in recent past. Broadly speaking,
the product range of Reebok consists of footwear, apparels and sports related accessories.
Pricing:

Reebok follows the common pricing strategy. Their main aim is to survive and grow in the market.
But as such Reebok follows maximum market skimming strategy. Whenever Reebok unveils a new
technology in market they set a high price for it. Reebok starts for such products with high prices and
then slowly drop prices over time .As Reebok can sense that whenever they launch a product they
have sufficient number of buyers for that product and Reebok keeps the price high so that they are
able to control the demand, earn more profit and communicate to buyers with high price that the
product is superior.
Reebok usually follow skimming strategy but when it entered into the apparels and other accessory
market in India it followed penetrating pricing, i.e. Reebok set low prices for apparels to attract the
customers at the start to an introductory price, and as the products became more popular the prices
were raised to a normal level.

Distribution:

Reebok reaches out to its target customers through its 1000+ exclusive stores, 200+ shops in the
shop outlets & 2500+ dealer outlets. The footwear franchise provides a range of footwear such as
for Adventure, Basketball, and Casual and Cross Training. The Reebok franchise also has shoes for
Running, Soccer, Tennis, Walking and basic sandals for the men. The clothing and footwear franchise
has its apparel section for the women and men.

Reebok Indias footwear and athletic apparel market share was 54 percent as 2009 came to a close,
up from 51 percent the year before. Reebok was purchased by German sportswear giant Adidas in
2006 as the companies sought to catch U.S. market leader Nike. It has over 1,000 stores in over 325
cities and towns across the country, which is more than double of any of its rivals, and the numbers
continue to add every day. About one-third of its stores (over 300 outlets) cater to the lower end of
the market. And it offers over 80 stock-keeping units (SKUs) under Rs 2,590, which form the bulk of
its sales.

In 2009 Reebok joined hands with the largest integrated franchise and retail solution provider
Franchise India Holdings Limited (FIHL) in order to expand the franchise opportunity. Interestingly,
all of Reeboks stores in India are franchisee-owned. The Company has taken great pains to deal with
the accompanying trouble of maintaining brand consistency in such retail models. It is very choosy in
selecting our franchisees and even our sales team. But once on board, every month, the company
sends their own sales people visiting each Reebok store to address any issues that crops up. Besides,
the company tries to always stay on top of new trends through product proliferation, brand
extensions and segmentation strategies.

Communication and Advertising:

Advertising Agencies:

To promote its brand, Reebok has been taking services from advertising agencies for quite some
time now. During 2004-2007, McGarry Bowen was Reeboks brand agency globally. During this
period, Reebok had done advertising and marketing for various products. Pump sneakers
advertisements, Two People in Everyone ad campaign, Runners head game- I am what I am ad
campaign were all under this advertising agency.
In March 2009, Reebok changed its advertising agency to DDB Worldwide. This agency handled
Reeboks brand advertising and marketing communications as Reebok is trying to establish its brand
in the women's fitness market. The ad campaign Your Move was done under this agency.

However, Reebok handed its regional advertising business to WPP subsidiary Soho Square, which
was supposed to manage Reebok's key markets in the Asia Pacific including Hong Kong, Japan,
Korea, Australia and India and China.

Key Market Segments:

Reebok has started to shift its focus on specific market segments. It has developed a clear roadmap
for its key businesses going forward: Own Womens Fitness, Challenge Mens Sport and Revive
Classics.

Promotional Methods:

Reebok offers great deals on footwear, apparel, and fitness equipment for women, men, and kids.
The company uses various promotional tools to bring awareness among its customers. It offers
discounts, vouchers, coupons and custom made sneakers on their products. Apart from this, Reebok
uses various media tools to promote its brand and create awareness about the products. Reebok
uses television commercials, print ads, billboards, online advertising, sponsorship events and various
advertising campaigns for its promotion.

Ambassadors:

Reebok has long-standing partnerships with some of the worlds greatest athletes and Rapper Jay-Z
became the first non-athlete to get a signature shoe from Reebok. The "S. Carter Collection by Rbk"
was launched on November 21, 2003, and the S. Carter sneaker became the fastest-selling shoe in the
company's history.

Reebok uses many celebrities in India to shoot in a television commercial for promoting its different
categories of products. For sports related products, it has primarily used Indian Cricketers such as
M.S. Dhoni and Rahul Dravid. Filmstars like John Abraham, Bipasha basu and Nargis Fakhri have been
roped in as well.

Sports and Culture:

Reebok sponsored kits for Indian Premier League teams, such as the Royal Challengers Bangalore,
Kolkata Knight Riders, Rajasthan Royals and Chennai Super Kings in the first edition of the league held
in 2008. Reebok is the official outfitter of the Indian Davis cup tennis team

Reebok also became the official partner of Force India on February 2009. Force India - Indias only
Formula One Team - is all set to speed its way into the fast-paced lives of more and more Indians by
partnering with premier sports and lifestyle products giant Reebok as its official apparel and footwear
merchandising partner for the next 5 years. After inking the association in 2008, the partnership
between Force India F1 team and Reebok has rolled out with the 2009 Force India Team wear
collection.

Reebok, the worlds leading sportswear brand, is unveiling its My Name is Khan Collection,
showcased in the most awaited movie of the year starring Shahrukh Khan, Kajol and other stars. The
new range consists of footwear and apparel and will be available across Reebok stores in the
country.
Brand Exploratory:

Consumer knowledge:
Reebok mental map

Image
Physical change
Mental change
Social change
Fitness first
Be yourself
Durable
Comfortable

Performance
Innovative
Quality products
Universal appeal
Value for money

Sports
Gymming
Cricket
Tennis
Running
Yoga
F1

People
All age group
Concentration on feminine
Brand loyal
Ambassadors : athletes, sportsmen, celebrities
 Brand Resonance Pyramid:
-Consumers are loyal to the
brand Reebok

-High repeat purchase rate

because of low price factor

-High quality and Innovation -Sense of achievement and

profiled brand ability to do anything

- More designs

-Durable, Trendy and -Symbol of a cool

comfortable accessory in peoples eyes

-Remodified brand logo to

create ownership
-One of the leaders in fitness
accessories and sportswear
Competitive Analysis:

Nike, Inc. is an American multinational corporation, founded in 1964, that is engaged in the design,
development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment,
accessories, and services. The company is headquartered near Beaverton, Oregon, in the Portland
metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a major
manufacturer of sports equipment, with revenue in excess of US$24.1 billion.

In India, Nike has a brand share of 11%, which makes it the second largest in the market after
Reebok. The brand is known for introducing technology in their shoes which has made it a market
leader globally. However, this technology comes with a premium price. It is this premium price point,
clubbed with the lack of awareness in the Indian market that has hampered the growth of the brand
in the market.

Nike STP:

Segment: Nike targets Sports enthusiasts who are eager to experiment with new technology.

Target: Men, women and children from urban upper-middle and upper class

Positioning: Nike offers high quality sports products at a high price which gives satisfaction and
comfort

USP: Nike shoes that are made for professional athletes across sports worldwide
Adidas AG, founded in 1949, is a German multinational corporation, headquartered in
Herzogenaurach, Bavaria, that designs and manufactures shoes, clothing and accessories. It is the
largest sportswear manufacturer in Europe, and the second largest in the world.

It is the holding company for the Adidas Group, which consists of the Reebok sportswear company,
TaylorMade-Adidas golf company (including Ashworth), 8.33% of Bayern Munich and Runtastic, an
Austrian fitness technology company. Adidas revenue for 2016 was listed at 19.29 billion.

Adidas is known for its high fashion and high end products and designer collaborations. Adidas has
done several collaborations with well known designers, including Jeremy Scott, Alexander Wang, and
Raf Simons. They have also reached out to several celebrities, such as Kanye West, Pharrell Williams,
and Stan Smith to create some of the company's most notable and coveted pieces.

Adidas STP:

Segment: Young men ,women and children who have passion for fitness and sports

Target: Adidas, as a brand, is specifically targeted to the urban upper-middle and upper class

Positioning: Adidas stands for passion for sports

USP: Adidas is a world renowned company for sports equipment, clothing and other accessories
Points of Parity
Reebok operates in an industry where there are various similar brands competing with it on a global
level. The points of parity for Puma are:

High Quality Products: The products of Puma are perceived to be high quality like its
close competitors Nike and Adidas.
Pricing: The price of the products are similar to those of its competitors, reaching
out to a universal audience.
Product Portfolio: The product portfolio for Puma is very similar to those of its
competitors, essentially due to the product category it operates in.

Points of Difference
Puma, although similar to its competitors across various parameters, has successfully been able to
carve a niche for itself in the following areas:

Focus on Style: Puma is known to manufacture the most good looking sport shoes.
Its shoes are made keeping in mind the versatility of the shoes in mind.
Varied Product line: Puma constantly collaborates with sports person and other
celebs to launch a varied product lines across multiple target audiences. Some of the
collaborations include: Rihanna, Alexandra McQueen, Ferrari and BMW
Strong Sponsorship and celebrity endorsements: Puma was the official sponsor of
the FIFA football World Cup and has signed up various local celebrities such as Virat
Kohli to make the brand more relatable.
Research and Development: Puma brand is very innovative and has a very rich
Research and Development team. These screw boots were first launched by Puma
and they received great acceptance in the football world.

Puma, with the above points of difference, has been able to carve a niche for itself in the market. It
is known for its stylish and comfortable range of sports shoes widely desired due to its celebrity
endorsements and collaborations.

Recommendations:
Focus on the brand's DNA and heritage: In Puma's case this is performance and its sporting
roots in soccer and athletics fashion must come after sports.
Build on the brand's biggest and most promising category and strive for category
leadership: For Puma this is footwear. Precisely the running sub-category. With Usain Bolt as
brand ambassador this should be a clear objective and a non-negotiable one.
Heavily invest in innovation and in parallel cut Opex: Technological-driven innovations in its
core categories (running and athletics) must drive growth and margins. Sports should serve
the fashion-side of the business, not vice versa.
Focus on a few selected marketing campaigns and make them as big and as exciting as
possible: Fiercely promote existing brand ambassadors and at the same time get new top
ambassadors (the new Arsenal London deal will not be sufficient) to build brand recognition.
Maintain transparent and trustworthy relationships with main stakeholders: Re-build trust
with key retail partners, with employees and with French parent company Kering (which owns
84 percent of Puma).
 Strengthen the distribution network: Gain back lost share of space and share of mind at key
retailers. Establish a holistic multi-channel distribution strategy with a key emphasis on e-
commerce (both on its own site and on key e-retailers platforms).
Manage expectations: Bringing Puma back on track will require a comprehensive turnaround
and change management program. Something which can take anything between 12 to 24
months until the first significant benefits might appear. Senior management would be well
advised to pro-actively explain that to all stakeholders.
Do your financial homework and clean up the balance sheet: Quickly execute one-off charges
and write-offs which are typical in crisis situations. Future financial results will look more
encouraging and will help to stress that the company is on the right path. It is expected that
Puma will book approximately 130 million once-off charges in the fourth quarter of 2013,
mainly for the closure of a development center in Vietnam and for relocating staff from
London to Germany.
Appreciate the past and set the team's focus on conquering the future: The leadership team
needs to re-inject self-confidence into staff. They need to show appreciation and at the same
time constantly raise the bar. A mindset of innovation and Execution in Excellence should be
established and lived by everyone. Existing talents and high performers need to be rapidly
developed and empowered whilst new external talent should be recruited to bring in some
fresh ideas and drive.
The leader is key: A beleaguered brand needs strong leadership. Someone who is very close
to the business, who is in the relevant details himself and able to develop together with key
stakeholders a lasting vision and compelling strategy. He needs to be a convincing
communicator and motivator, being able to inspire the team in an honest way and in parallel
to deliver quick wins. He should display a positive Can-Do-Attitude, a very high level of
resilience and energy and manage his teams based on Tough Empathy (giving the teams what
they need and not necessarily what they want).
IN THE END IT'S ALL ABOUT A COMPANY'S ABILITY TO INNOVATE AND TO FOCUS