PUMA COMMERCIAL

AGENDA Company Overview- Kyle Company History-Kyle Footwear Industry- Lyndsey Trends-Lyndsey Global Issues- Lyndsey Competitors- Coralee SWOT- Blase

Company Overview Puma’s hometown is Herzogenaurach, Germany The company distributes its products in more than 130 countries 2007 Revenues $3.8 billion Employees 9,204 116 concept stores

Company History 1924 Rudolf and Adolf Dassler start their first shoe company 1936 Olympics when Jesse Owens wears Dassler Shoes 1948 the brothers split the company into two separate shoes manufacturers 1986 Puma goes public on the on the Borse Munchen and Frankfort Stock Exchange

Company History Cont… 1989 Armin and Gerd Dassler sold their shares of stock 1990 Jochen Zeitz joined the company as the new CEO Late 90’s Puma started to open subsidiaries in other countries

Store Pictures

Footwear Industry Global Footwear Industry In 2007 was valued at $191.7 billion By 2012 expected to be valued at $248.9 billion European market represents the largest percent of the global market at 40.6% Germany is included in the European market

Footwear Industry German Footwear Industry In 2007 was worth $11.1 billion By 2012 expected to be worth $12.8 billion Germany is part of the European market German Footwear market makes up 14.3% of the European market value

Trends United States footwear market has seen a constant growth since 2003 2006 men and children drove the athletic footwear market 2007 more women started by athletic shoes and the athletic shoe market saw a drop in sales to men and children

Global Issues Puma has four virtual headquarters around the world The company insures that human rights, product safety, and environmental concerns. Puma is a proactive company and has established S.A.F.E- Social Accountability and fundamental environmental standards Part of the United Nations Global Compact (UNGC)

Global Issues Cont… In 2007 Puma was accredited by the Fair Labor Standards Association The company has been rated by Greenpeace Puma outsources its production facilities to over 40 different countries

Main Competitors

Market Share

Nike US Based Company World Leader in Athletic Footwear Industry Employs 500 000 people world wide including Subsidiaries 2007 Revenues of 16 billion Actions in Environmental Issues: Re-use a shoe Program Why does Nike hold the number one position? Dollars spent in advertising and Marketing Sponsorship programs Current actions of Nike

Adidas German based Company Second leading company in the world for athletic footwear Puma’s true rival 2007 Revenues of 15.6 billion Purchase of Reebok in 2006 Actions in Social Responsibility Red Ball – right to play Sponsorship

Reebok Joseph Foster Gains popularity in 1980’s Sponsorship Based out of the United Kingdom Joseph Foster Gains popularity in 1980’s Sponsorship Fair Labor Association 2004 Official foot wear sponsor for Avon-Walk around the world Sponsoring $500 000 in 2008

New Balance Head Quarters in Boston, US based company Unlike all other competitors in this case analysis 70% of manufacturing occurs in the US Located in 120 countries Employs 2800 people Unique for specializing in width 2007 revenue of 1.6 billion Run Proud Campaign – fight against breast cancer

SWOT Analysis Strengths Very high quality products Major Sponsor of NASCAR and Formula One Racing One of the leading sportswear and shoe companies in Europe

SWOT Analysis Weaknesses Not the biggest shoe and apparel company in Germany Seem to not be able to attract famous athletes in the United States Advertising is not a major priority in the United States

SWOT Analysis Opportunities Gain more of the market share of the NFL and NBA Emerging Asian markets are a big opportunity for growth The whole US is an opportunity for expansion and growth

SWOT Analysis Threats Rising costs of raw materials Risk of counterfeit products being made illegally Intense competition is always a constant problem

Recommendations Short-Term Focus greater attention to marketing and advertising Puma needs to meet the demands of growing markets Specialize products for needs and wants of baby boomers Develop a more user friendly website

Recommendations Long-Term Focus on environmental issues Focus on a variety of sports markets Focus more on the United States and Asian Markets

Conclusion Puma is a globally competitive company The company does an excellent job in advertising Puma needs to keep increasing their revenues and stay out of debt

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