Casestudy of Puma

Topics: Marketing, Pricing, Brand Pages: 12 (4313 words) Published: January 10, 2013

Introduction to Puma3
Marketing Orientation3
Product Orientation3
Sales Orientation4
Puma Orientation4
The competitive advantage/disadvantage of puma.5
SWOT Analysis7
Marketing Mix8

Introduction to Puma
Puma is one of the world’s leading Sport lifestyle companies. As an organisation it designs and produces sports equipment, footwear, apparel and accessories. Puma distributes its products to “120 countries, employs more than 11,000 people worldwide and has headquarters in Herzogenaurach in Germany, Boston, London and Hong Kong” ( 2012). Puma as an organisation was founded in 1948 by a German man called Rudolf Dassler, who split from his brothers company which went on be known as Adidas after originally starting out as “Gebrüder Dassler Schuhfabrik”. The Puma group owns the brands Puma, Cobra golf and Tretorn, this allows the organisation to branch into different markets and compete for market share in different industries. Marketing Orientation

‘I make what I can sell’ (Adcock et al, 2001). This is the philosophy the orientation takes, following the organisations market research. Marketing orientation takes into consideration the customers and their competitors. The organisations look into several factors such as: * Identify the customer’s needs and wants, through market research * Develop their products to meet the needs, through product development * Decide on the price for the customers

* Distribution, looking at the right time to launch the product into the market * Informing and persuading the customers to buy the product, through promotion

Figure 1.

Product Orientation
Companies who are product orientated focus on pushing the sales of the products they sell the most. ‘It often involves manufacturing products in large quantities in order to minimise the costs of production.’ (Adcock et al, 2001). Problems exist in this orientation, such as although the initial sales may be very high due to a successful product but are more likely to decrease quickly. Another disadvantage is the unsatisfied customers are hard to please as the products are the same for the company. Companies who adopt product orientation often find themselves switching towards sales orientation when their product sales are declining as they introduce mass advertising and sales campaigns. Sales Orientation

‘Sales orientation dictates that a business must aggressively promote its products.’ (Adcock et al, 2001). The company is looking to promote an already existing product, it is up to the employees to find potential customers for the product and they will be targeting through promotion. Even though the customers are being targeted the product still does not meet the customers needs and wants therefore differing from customer orientated marketing. The main disadvantage of the orientation is the fact that customers needs and wants are not considered so if customers don’t like to the product sales will be very limited. Puma Orientation

Puma have adopted the marketing orientation, identifying their customers need and wants. Puma show that they use this orientation to great effect as they created the ‘Sports lifestyle segment’ in the market. This segment combined the technology of sports clothes but incorporated into fashionable clothes to wear on all occasions. ‘PUMA was not only able to strengthen its positioning as a sport lifestyle brand, but created a whole new market by establishing the segment sport lifestyle.’ (Neuber, 2011). Puma has been very successful in meeting the needs and wants of their professional clients. They have strong partnerships with athletes such as Usain Bolt, Michael Schumacher and Yaya Toure and sponsor many national football teams. When Michael Schumacher won his seven world championships Puma were the provider of his shoes and now are the largest provider of racing car...
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