Puma plans cost-cutting measures for sponsoring
After sports equipment manufacturer Puma saw its first-quarter profit plummet by nearly 94 percent to 5.6 million euros, the company announced cost-cutting measures. It plans to review advertising contracts with athletes and remove unprofitable products from the market.
After profits at sports outfitter Puma slumped by almost 94 percent to 5.6 million euros in the first quarter, the company has announced cost-cutting measures. Advertising contracts with athletes are to be reviewed and unprofitable products removed from the market, as Horizont.net reports. In future, the marketing focus will be on football. CEO Jochen Zeitz wants to expand the market share in this segment. After the company invested 119 million euros in 2008, he is planning to cut expenditure by around 65 million for the current year. The sports brand currently sponsors 11 African national teams in addition to VfB Stuttgart, TSG Hoffenheim, Tottenham Hotspurs and the world champions Italy. Puma is also active as a sponsor in Formula 1 and sailing.
