puma commercial. agenda company overview- kyle company history-kyle footwear industry- lyndsey...
TRANSCRIPT
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AGENDA
Company Overview- Kyle
Company History-Kyle
Footwear Industry- Lyndsey
Trends-Lyndsey
Global Issues- Lyndsey
Competitors- Coralee
SWOT- Blase
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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
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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
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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
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Store Pictures
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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
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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
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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
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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)
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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
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Main Competitors
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Market Share
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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
Nike
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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
Adidas
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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
Reebok
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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
New Balance
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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
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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
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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
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SWOT Analysis
Threats
Rising costs of raw materials
Risk of counterfeit products being made illegally
Intense competition is always a constant problem
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RecommendationsShort-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
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Recommendations
Long-Term
Focus on environmental issues
Focus on a variety of sports markets
Focus more on the United States and Asian Markets
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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