Puma’s Ag Case

PUMAs AG Case Adalbert and Rudolf Dassler founded puma in 1924 in Germany. The attach to was c every(prenominal)ed Gebruder Dassler OHG, and was inter subject arealy well known. However, the two brothers separated creating Adidas and panther, respectively. painter had sponsored some of the worlds most famous soccer players, localisation itself as whiz of the most important company in soccer shoes and accessories. In spite of that, the son of the founder, Armin Dassler, take Puma to a point where all harvest-festival were sold dirt-cheap, ruining the give away image. The high society was non willing to wear the brand.In 1993, Jochen Zeitz, became the CEO of the company, and together with Martin Gaensler, the supply chain wariness chief, applied 3 significant phases into the Comeback of Puma * Aimed at reservation Puma profitable in order to build a robust financial foundation. * Restructuring the whole company * Focusing in core competencies marketing, brand management, and product management. * Transform Puma into an attractive manoeuvres brand. (High- value brand in sport and lifestyle sales categories). * Sponsoring and advertisement. Pumas major competitors 1. Adidas Salomon AG * Headquarters in Bavaria, Germany. Production was in every continent, except in Australia, with administration, design, and marketing in Germany and France. * Production outsourced in Asia. * Only supplier c everywhere all sports. * Main strength soccer line, sky and tennis market. * cognise as a brand for the family, satisfying customers needs. * Sponsoring activities on huge sports events, famous teams, and athletes like FIFA World Cup and UEFA Champions League. 2. Nike * American company founded by Bill Bowerman and Phil Knight in 1964. * Outsourced branch of the production to chinaware and hard its skills on product design, marketing, and distribution. Located in Oregon. * Administrative activities concentrated in United States. * Europe, Africa, and Asia worked only in sales strategies. * Target group young people with the slogan Just do it * Marketing outline sponsoring events, popular teams, and athletes. * Introduction to specialized brands * Web-based Nike ID (customizing Nike products) 3. Reebok * Founded in 1895 in USA by Joseph William. * Key market bunswear industry (aerobics industry, womens sportswear, and design bridle-path & casual footwear). * Located in 140 countries. R & D in China, Korea, and Taiwan. dispersion finished goods via traditional retailers. * Sales in Gym gild trainers. * Reebok female sports shoes were the most famous. * 1992, change of strategy to American football, basketball, and soccer. * Sponsoring sport events and popular athletes. * Nevertheless, Reebok was often regarded as a fitness and exercise equipment manufacturer. 4. Fila * 1911, Italy. * statistical distribution in 50 countries. * Portfolio of sportswear and athletic footwear. * Focus on running, basketball, and fitness. 5. Prada * Italian brand focused on luxury leather goods. * Founded by Mario Prada. 2003 rollicking line called Prada Sport. 6. Diesel * 1970. Casualwear or sportswear company that became a luxury brand. PUMAs Value Chain * R&D sourcing, production, and logistics * 80% of all production move to Asia due to stark(a) materials and MOD * construct in Turkey and Mexico * It reduces its working capital and inventory to 21% * The raw material sourcing al mortifieding shortening the production and enabling full quality ascendancy of input factors. (Inditexs Zara strategy) * Production partners according to quality, monetary value, and environmental/social factors. Logistics was not a core competence. * Brand management * Turnaround new positioning of the brand itself. * 1980s unpopular image due to heavy price decline. * Jochen Zeitz (CEO), repositioned the brand * Making PUMA desirable again * 2003, the brand was already positioned and well-known and considered as a luxury * Ensuring success, PUMA hir ed magnetic personalities who could represent and understand the desired brand perception, recognition, and awareness even further. * Sponsoring some(prenominal) teams such as the Jamaican running team, Cameroon soccer team, and Italian national soccer team. Sponsoring Formula One, entering by the official supply of sportswear for the FIA World Rally Championship, the Ford Rally division, and freestyle motocross champion Travis Pastrana. * Quality over quantity and rely on innovation. * Following upcoming trends quickly and creating trends. * The Puma classic King was reintroduced creating a new market segment of lifestyle sportswear, having in consequence to it a significant competitive advantage over competitors from the fashion industry. * CEO understood the fashion as the new junto of elements of the past. * Right time for launching a new product line. Puma entered in the cricket market in Australia and Africa. * Advertising in MTV and in Hollywood movies. * Puma was perceived as rebellious and stylish. * Distribution * Outsourcing 70% in distribution logistics. * Building up a dodging to develop its own network in Europe. * Retail activities * Selected partners according to the collective message of Puma. * Sport retailer did not operated globally only foot Locker and Intersport, Decathlon, and JJB Sports. * There was no price discrimination due to low transportation costs in Europe. * Collaboration with strategic partners and allies Acquired the Swedish company Tretorn (manufacturer of tennis balls), because of the sophisticated and broad distribution system in the Scandinavian market and a very skilled management team. Corporative schema R&D and design (functionality and stylish appearance products). Launching the forward-looking Collection sport, lifestyle, and fashion. * Trying to be innovative in every part of the process * Marketing strategy Innovation * Modernizing latest collections and re-launch them Bibliography. Kaufmann, Lutz. Puma AG. T he WHU Otto Beisheim Graduate School of Management.