July. 11. 2005. Webzen Inc. Marketing Team Case Study - PUMA Kim Sang-youn Kim Yong-hwan Kim Jong-oh Lee Bo-mi Lee Soon-young July. 11. 2005. Webzen Inc. Marketing Team

Contents 1. Brand History 2. SWOT Analysis 3. STP Approach - Segmentation, Targeting, Positioning 4. Marketing Mix - Product, Price, Place, Promotion 5. Result

What do they have in common?

시장분석 Brand History In 1922, Adi Dassler and Rudolf Dassler started to make training shoes, but separated in 1948. The older brother Adi Dassler made ADIDAS, and younger brother Rudolf Dasselr made PUMA. E-land Group introduced PUMA to Korean market in 1995. The total revenue of PUMA Korea was 10 million USD, net income was 500,000 USD in 2000. In 2001, Total revenue was 34 mil. USD and the net income was 7 mil. USD. The total revenue increased rapidly up to 100 million USD in 2002.

SWOT Analysis 시장분석 Strength Weakness Powerful distribution channel of E- land group Target marketing (late teens to early twenties) Knowledge management Weak capital capability Simple product line Licensing(Loyalty fee) Opportunity Threat Well-being trend New CEO New designer(Jil Sander) of HQ 5-day per week working system Constant increase of brand recognition Other competitors(new global brand) Shortened fashion cycle Increased imitation products

STP Approach 시장분석 Segmentation ① Geographical segmentation : Concentrating on the downtown area (Myungdong, Apgujeong, COEX, Gang-nam, Shin-chon,etc.) ② Age segmentation : Young generation from late teens to early twenties ③ Character : Young, Progressive, Free, Active 2) Targeting : Young ladies (from late teens to early twenties) 3) Positioning : High quality sports brand, Refined design with top designer Jil Sander

Marketing Mix 시장분석 Product ① Symbol color : from green to red ② Product line : from men to women ③ Main customer : from men over mid twenties to women and men in early twenties 2) Price : lower than Nike, Adidas higher than pro-specs, lecaf

Marketing Mix Solution – Zero Base Marketing 시장분석 3) Place : Move the stores from suburb area to central area 4) Promotion : ① Sponsorship of hiphop festival, professional hiphop team ② Constant advertising on hiphop magazine ③ Star marketing-Serena Williams, Ahn Jeong-hwan ④ Ambush marketing – Rent the jam-sil stadium and use the space for cheering Korean soccer team during World cup season Solution – Zero Base Marketing

시장분석 Result Total revenue has increased 1,000% in 3 years (From 2000 to 2002 – From 10 mil. USD to 100 mil. USD) 800,000 Logo T-shirts and 280,000 sneakers were sold in 2002 Main customer has changed from men(90%) to women(80%), from late twenties(70%) to early twenties(80%) Brand recognition has improved and built up well German HQ benchmarked PUMA Korea’s success 1,100% of incentives and free tour to USA for all employees

Result Product Parody in cyber space

What do they have in common? They are TRANSGENDERS!!