International At the Football World Cup, Puma
sponsored most of the teams. The brand was on the brink of ruin in 1993.
How Puma managed to regain brand popularity
Company spokesman Ulf Santjer in the "Practical Handbook International
Marketing". Against the backdrop of tougher and more global competition, the
Brand management is forced to react to the increasing qualitative
to respond to the interchangeability of products that consumers
the ability to differentiate is reduced. To improve the perception of
consumers, the implementation of a concept helps to win over consumers.
brand communication, which involves consistent investment in increasing
of brand desirability.
Four construction steps
The key requirements include: long-term
Brand strategy, creativity, innovative brand communication,
design orientation, selective distribution and clear
Brand messages.
In practice, the most important factors for creating
Brand desirability is closely linked to the overall development of the company.
connected. In the first phase, a comprehensive
Restructuring of all corporate divisions forms the basis for the
Building brand desirability. For the desired brand turnaround
the second step is to invest in the brand. In
In a third phase, the strategic goal must be pursued of
to further increase the brand's desirability and turn it into a profitable
growth. In a fourth, expansion-oriented
The first step is to invest in the brand with this in mind,
to tap into new sales potential. At the center of all
Development phases that are decisive for brand desirability,
always stands for distinctive and innovative brand communication.
A management process is required to create brand desirability.
which requires the planning, coordination and control of a large number of
of long-term marketing measures. Elements of this
strategic brand development are targeted brand development,
ongoing brand management and effective distribution of branded goods. The
The basis for successful brand positioning is a
strategy, which uses an innovative marketing mix to create an emotional
and thus strengthens the desirability of the brand in the long term.
Desirability of the brand
The desirability of a brand is in constant interplay with trends
and changes in the market and competitive environment. In order to
To meet these challenges, creative management with
unusual and innovative ideas. Because creativity is the
The key to innovation. A company must focus on the development of
and implementation of a brand strategy can rely on employees who
are up to these creative challenges. Prerequisite for this
is the creation of an appropriate environment in the company in which
creativity can unfold. This includes the promotion and
Further development of shared values that are in line with the
brand personality. Under these framework conditions
creativity functions as the engine of corporate culture.
Brand communication must support the brand strategy by
it gives the brand an unmistakable profile and with innovative
concepts to set new trends in the market. Marketing must
take up unusual topics and concepts in order to
Brand desirability through brand-building measures and innovative
products. The public sector plays a central role here.
Relations, which are surprising and stimulating.
communication concepts in order to enhance the image of the brand.
strengthen. Innovative brand communication always opens up new perspectives.
the product, the desirability of the brand is strengthened.
A significant contribution to creating and strengthening the
Brand desirability is also ensured by the ongoing further development of
creative design, i.e. a design-oriented approach. In the
The focus must be on developing new products that succinctly reflect the
illustrate innovative brand aesthetics. All essential
Product concepts should consist of coordinated collections
the individual products are characterized by innovative materials and
technologies are optimized in their functionality. The
traditional view that functionality is at the center of every
product development is being replaced by the changed
Consumer behavior: Today's consumers expect not only the function
also innovative design. The purchasing decision is increasingly based on
Design or emotional perception of products.
In order to increase brand desirability, it is also possible to use a selective
distribution. This instrument allows different
products via selected distributors specifically to the respective
target group. To increase competitiveness and
Supporting the flow of goods and information along the
logistical process also includes the development and use of a
cross-company, web-based order management system. The
The degree of distribution derived from this serves as a key figure for the
brand desirability and to manage demand in retail.
The interchangeability of products constantly requires new
Communication measures whose efficiency is constantly reviewed
must. Against this backdrop, the communication of clear
brand messages are of crucial importance. Behind your own
products must have a brand with an unmistakable personality.
that reduces complexity with clear brand messages and
provides the consumer with orientation. The starting point for this is the
Development of an individual brand identity. To increase the
Desirability, the brand messages must above all reflect the positioning of the brand.
of the brand and reflect the positive assessment of the brand from
reflect the customer's perspective.
At the top of the list of factors is the visible brand identity with its
Presence in the public and the mediated product world. To the
invisible layers of the brand personality include specific
Values, ideas and characteristics that are based on the origin of the
Build a brand. In order to strengthen desirability, the existing
characteristics of the brand personality are supplemented by new elements that
to increase the brand presence and uniqueness of the
brand identity. The model (see below) shows that new
standards and values must be associated with the brand that are in line with
with the spirit of the times, which is decisive for brand popularity.
Restructuring (1993-1997)
In 1993, Jochen Zeitz takes over as Chairman of the Management Board. The
First phase of long-term corporate development at Puma
with the aim of consistent restructuring. The company concentrates
focus on the creation of a lean, effective and flexible
organizational structure as the basis for future growth and the
opportunity to later invest specifically in the brand and the development of
to be able to invest in brand desirability. The main
Measures introduced by management include, for example, the reduction of
of corporate hierarchies, the creation of profit centers and the
Closure of all remaining own production facilities by
Outsourcing. Through the creation of core categories such as football and
Running, the extremely diversified product lines are being streamlined,
to reduce the total number of individual products.
An indispensable component is the development of a
corporate culture that promotes entrepreneurial thinking, teamwork and
Promotes creativity. For the first time in the company's history
Puma is focusing on a globally integrated brand strategy by
marketing concepts are developed to enhance the image of the brand in the
core markets. In terms of communication, Puma focuses on
TV advertising and on the marketing of a newly compiled
portfolio of top athletes that fits the brand.
Strengthening communication (1998-2001)
During this phase of the brand turnaround, Puma concentrated on the
brand identity, the innovative Markom, on the products and on its
virtual structure.
Following the successful restructuring and strengthening of the
In the fourth quarter of 1997, Puma decided to increase its earnings position as part of its
second five-year plan to invest aggressively in the brand. The
The funds used are well above the industry average. Since then
Puma has continuously expanded its globally oriented brand strategy.
and further expanded its brand position. With high
Investments in communication, product design and development pursued
Puma's goal is to become "one of the most sought-after sports lifestyle brands in the world".
become. By enshrining brand desirability in the mission statement of the
company, their strategic importance is particularly emphasized.
According to its brand identity, Puma is the brand that combines the influences of
Sport, lifestyle and fashion successfully combined. Your sporty
Heritage gives the brand a high level of credibility for new ways in
Design, technology and communication. Concepts and products cover
all types of sport - from traditional to extreme sports.
However, since a brand is no longer only characterized by the quality of its products
is successful on its own, there must be a brand behind the products with a
unmistakable personality. Only in this way can it stand out from the
stand out from the competition. Puma wants to be one of these special brands, not
because of the size, but because Puma does things convincingly and
unmistakable approach.
In the innovative Markom, Puma concentrated on improving its image in the
key markets and increase the brand's presence.
Traditional sponsorship expenditure was cut in favor of more targeted
Investments shifted to product availability. These
Sales promotion measures included additional investments in the
Improvement of product presence in retail, for example through the
Expansion of in-store merchandising. Visual merchandising has the
brand to a concise brand presence at the POS. Decisive
for the smaller supplier in the concert of the leading sporting goods companies
For Puma, it is not only the right marketing mix and networking
the tools sales and sports promotion, PR, advertising and marketing
services in the core categories of football and running. The structure
of a new, globally oriented portfolio of promotional partners with
the top tennis player Serena Williams, the world-class track and field athlete
Wilson Kipketer or the Cameroonian national team, which is led by
their personality fit and fit the brand perfectly, have
made a decisive contribution to creating brand recognition.
The functionality and design of products play an outstanding role in the
importance. The development work takes place mainly in
Herzogenaurach, Boston and Taiwan. This enables the optimal
Utilization of the existing resources and competencies of the individual teams.
The product portfolio is expanded through external expertise via cooperations
has been decisively strengthened. A pioneering role for the industry
Puma when the company entered into a cooperation agreement with the
fashion label Jil Sander and thus the fusion of sport and fashion.
fashion as part of an innovative shoe collection.
This partnership opens up the possibility of creating fashionable
designs and thus give the brand access to new target groups.
to create a new audience. With the help of targeted product placement in print and
TV sector, Puma has set the tone and significantly increased its brand presence.
increased. Through the strategic alliance with its shareholder
Monarchy/Regency, one of the leading companies in the
Hollywood's entertainment industry in the areas of film, TV and music,
product placement is being further intensified. Puma products appear
regularly appear in Regency productions, and actors also wear
them more in their free time. With the help of Regency, a
Unique portfolio of international promotion partners
built up.
To support its global brand strategy, Puma has launched a
virtual organizational structure that differs from the conventional,
centralized structure. Linked to this is the
The challenge of making communication and processes faster and
more efficiently. The virtual company headquarters consists of
from decentralized competence centers located in Germany, the USA and Hong Kong.
are located. These are divided into the following corporate functions
Product, merchandise logistics, brand, growth, structure, enterprise value and
Culture. The individual functions are strategically located where
specialization and management know-how are optimally available and
can be used. Marketing was thus developed as part of the
The brand functional unit was relocated to the USA in order to
to take up. Distribution as part of goods logistics, on the other hand, is
Germany, where Puma laid the foundation stone for the virtual
company. Within the matrix structure, the company achieves a
geographical focus, thanks to which Puma is able to expand its subsidiaries, distributors and
licensees, but also dynamically adapt to regional and local conditions.
can react to changing circumstances.
Probably the most important contribution to the company's success is made by the
employees. During this phase, Puma developed a corporate culture
in which creativity can unfold, where processes can only be seen as
serve as a means to an end and traditional bureaucracy has no place.
Corporate development (2002-2005)
The brand strategy is supported with the help of a concise brand name,
that combines influences from the fields of sport, fashion and lifestyle.
The challenge is to communicate the innovative concept
"Sportlifestyle". Sportlifestyle is the emergence of a new
market against the backdrop that consumers are looking for sporty products and
styles that they can wear on the pitch and in their free time.
can carry. Brand communication reflects this modern
interpretation of the term "sport" by taking into account the concept of
Sportlifestyle thematically reloaded again and again and thus the image
of the brand in the target groups. On the one hand, this means
Consistent alignment of all PR instruments and measures with the sports enthusiast athlete in football, running and soccer.
from motor sports to extreme sports. On the other hand, it is
also fitness and wellness, the active professional or the
fashion-conscious consumers who want luxury in a sporty version
searches. Puma increases the brand value through the concise brand message
and the unmistakable voice in the Sportlifestyle segment. The result
convinced: According to an Interbrand study from 2004, the company is
Puma is one of the 14 most influential brands worldwide.
In Markom, football is one of the core segments that is given a high priority.
importance to the company. Equipment and marketing focuses on
on national teams (e.g. Italy or the Czech Republic),
Club teams (e.g. Lazio Rome, AS Monaco) and individual players (e.g.
Freddie Ljungberg/Arsenal London). Puma relies on the high
Product expertise and brand awareness, which have developed over the course of more than
55-year company history. Sport, lifestyle and
fashionable flair are mainly created by the Italian
national team. An expression of this partnership with the
Football Federation of Italy is the fact that not only the jersey,
but also its own fashion collection from renowned designer Neil
Barrett was developed.
In addition to football, running is one of Puma's core categories.
Through targeted merchandising, advertising and innovative products
Puma wants to inspire its customers and break new ground in running. In the
international area, the cooperation with the Jamaican
athletics team. This will not only improve the image
strengthened as one of the world's leading running brands, but also
the fun, joie de vivre and enthusiasm of the Jamaicans
transported. The company also accompanies a
development program for the next generation of athletes, which
Jamaica's pioneering role in the field of athletics.
Sporting goods and financial resources are not only used to promote sport in
the universities, but also the training of young talent and the
Junior competition program supported.
Puma further expanded its involvement in motorsport in 2005
and with the racing teams Scuderia Ferrari, BMW Williams, Mild Seven
Renault, Sauber Petronas and Minardi, there are now five Formula 1 teams in
its portfolio. Not only the new partnership with the Rallye
World Championship, but also the cooperation with Porsche and the
Involvement in the German Touring Car Championships rounds off the
spectrum and ensure a strong presence in the world of the
Motorsports. These partnerships give the company the
Possibility to equip riders and teams with shoes and clothing,
which meet the typical needs of motorsport both on and off the track.
reflect the race track. The first Puma racing shoes are already in
The first of these was worn by drivers and teams in the 1970s.
In this phase, Puma consistently implements its selective sales strategy.
and continuously reviews their implementation in order to ensure the desirability of
strengthen the brand. Products are initially marketed via selected,
limited distribution channels - such as the Puma stores, actual
showcase of the brand - introduced to the market. With corresponding
Acceptance on the part of customers and consumers is then decided,
to what extent and in what form these products are distributed.
By combining the brand personality with the high
design claim, Puma has achieved a unique positioning as a sought-after
Sportlifestyle brand within the sporting goods industry. Sport
continues to be of central importance, although today it is
much more modern. That's why the design of the products and the
design leadership in the sport lifestyle market segment is a
decisive role.
The mix of design-oriented, innovative products and the
consistent product lifecycle management strengthens the desirability of the
brand. Product management therefore works continuously with the
sales department to develop new products and styles that
rejuvenate the product range, expand existing concepts and enhance their
distribution.
Puma owes its success to the commitment of its more than 4000 employees worldwide.
employees. Their shared values promote the corporate culture,
are in line with the brand personality and can be combined with
can be summarized in four terms: Fascination, openness, self-confidence
and entrepreneurial action.
Company expansion (2006-2010)
The phase of corporate growth is usually accompanied by increased
investments in order to develop new markets and sales potential.
to open up new markets. Goals in the expansion phase can include increasing
of sales, increasing market share or possible acquisitions
be. This is usually also associated with an increase in the number of employees.
In the fourth phase of its strategic corporate development, i.e.
Puma is pursuing the long-term goal of contributing to the company's expansion.
most sought-after sports lifestyle company. The focus is on
strengthening and further development as a leading "multi
category" sports lifestyle brand. In order to achieve this goal, the
Puma consistently adheres to a number of cornerstones - the
However, brand recognition always comes first. Other cornerstones are
Sustainability, product life cycle management, corporate values,
organizational structure and value creation. The company wants to focus on
focus on three core areas: Expansion of product categories,
regional expansion and expansion via non-Puma brands.
The expansion of the product categories relates to both the
growth within the existing business as well as on the entry
into new product categories such as golf and motorcycle sports. The company
will accelerate the expansion of product categories on several levels,
by setting new, strong accents in the sports lifestyle segment - from sports to
fashion - and thus make Puma even more attractive to consumers.
becomes more relevant.
In addition to the expansion of the product portfolio in existing and new
categories, the company will continue its regional expansion in countries that
are already managed by subsidiaries, as well as
through selective joint ventures and license buybacks in the
core business. Initially, joint ventures with majority
Participation with current licensees in Japan, China/Hong Kong and
Taiwan and through 1001TP3 subsidiaries in India and Dubai
planned for the Middle East region, which will then take over the operational
business in the respective countries. In this phase, we are considering
the company for the first time also selectively through other brands.
expand. To this end, the brand desirability of the already
acquired second brand Tretorn. At the end of the phase
IV, secondary brands could account for up to ten percent of total business.
make up for this. According to management estimates, the long-term
potential of 3.5 billion euros, whereby in the course of the
phase IV, a large part of this is to be utilized.
Phase IV is intended to permanently establish Puma as one of the top three brands in the
sports equipment market and, in the long term, become the most sought-after
Sportlifestyle company. Phase IV starts in the year of
World Cup and sees significant investments in the areas of
marketing, sales (including our own retail business) and in the
product development and design.
Editing: Luca Aloisi
Football World Cup as a brand advocacy tool
For Puma, the World Cup 06 is a home game and an opportunity for the
brand communication at the same time. The goal: to maintain the position as one of the three
leading football brands worldwide. In addition
Puma is expanding its brand presence through the participation of twelve teams in the World Cup
and numerous individual players, through creative concepts and new
technologies and innovative designs. The basis for this is a
Coordinated internal and external communication. A first
Puma offered a taste of creativity with the one-pieces for
Cameroon's national team at the Africa Cup 04, which Fifa has not yet
during the tournament. With a highly regarded
campaign, Puma then supported African football and
Fifa has also shown its claws off the pitch.
The worldwide football campaign was launched in 2005 as part of a
international football conference in Berlin, where
football legend Pelé was presented as the new Puma World Cup ambassador.
Puma's other World Cup activities are not only focused on sport,
but also a corresponding lifestyle. (la)