PUMA Marketing Essay

Executive SummaryThe multi- one thousand million world-wide sportswear industry is a highly competitive sector that is continually evolving. Two of the largest players in this industry are Nike Co., which holds 37% market share, and catamount with 7% market share. Objectives To support its growth station to $23 billion by 2011, Nike intends to expand its market penetration in India, China, Brazil, and other acclivitous economies. To achieve this end, the partnership plans to create fall guys that are tailored-fit to different markets. PUMA , on the other hand, targets regional and product type expansion. The bon ton has drafted a five-spot category plan to arrive at this goal. Positioning/Product/Service/ toll scheme Analysis These leading shapers have differing accesses in their market strategies. Nike has poised itself as an innovator of high caliber sportswear, making sports as take off of an active lifestyle. It invests heavily in advertising and marketing campai gns to create injury power and awareness. The Nike name is associated with quality, conquest, and greatness. As a result of its successful marketing strategies, Nike has become part of sports culture. Its products are categorized under basketball, soccer, womens, running, mens, sports culture, and others.For the year ended December 31, 2007, Nike reported revenues of $16 billion, where more than half of which came from its athletic footwear division. On the other hand, Puma has positioned itself as a manufacturer that combines functionality with style, creating a niche among the fashion-conscious sports enthusiasts. It cooperates with designers from strategic markets, like Japan, to come up with designs that come upon the companys goal of providing stylish sportswear that appeal to the high-end market. Its seam is segmented into footwear, apparel and accessories. For the fiscal year 2007, PUMA reported revenues of $2.4 billion, where threescore percent of which was earned from footwear. Market Analysis Both Nike and PUMA target eighteen to thirty-five year old males and females globally. Despite the similarity of its market, the dickens companies attract different sorts of consumers. Nike has a strong consumer base for its performance shoes, tour PUMAs strength lies on its casual shoes.Distribution StrategyAnalysis Distribution reach is a key factor for the success of Nike and PUMA. Nike is headquartered in Oregon, and distributes its products in about twenty-two thousand locations with eleven rudimentary distribution centers. This extensive reach allows Nike to be available to the most come in of people around the world. Puma is based in Herzogenaurach, Germany, with distribution impart in more than eighty countries worldwide. However, it is largely concentrated in the European region, resulting to a lower market share. Both companies do not merchandise directly to the public. Instead, they sell through retail stores located in malls or department stores. Promotion Strategies Analysis PUMAs five-year plan for 2006-2010 focuses on expansion of product segments, regional penetration and non-PUMA brands.To do this, the company is change focus to capture younger consumers without losing its high-end costumers. It is also negotiating for the transfer of company sway to PPR, a conglomerate that operates luxury brands like Gucci and YSL. This move is seen to emergence sales for PUMAs sneakers and up profits by at to the lowest degree ten percent. For Nike, it continues its innovations coupled with aggressive marketing campaigns to promote its products and hold on to its leading position in the market. Conclusion Nike go away continue to be the sportswear industry leader for the years to come. The companys approach to innovation and its highly aggressive marketing campaigns will ensure the company its top position in the market. As it continue to provide quality products that appeal to majority of the target consumers, Nike will be able to reach its goal of posting a fifty percent revenue increase by 2011.Pumas shift in focus will help the company achieve a bigger market share. By reinventing its product lines and expanding its reach particularly in the U.S. market, PUMA will be able to increase its share target. The German company also necessarily to create products that would cater to the middle-end consumers. From this project, I have learned that marketing strategies and promotional campaigns do a lot to the brand. As a result of brand power, a companys pricing will also be at an advantage. I have also learned that Nikes forethought is doing very well to keep the company at the forefront, compared to PUMAs top executives who are still in the process of making the company more competitive globally.