Pumas brand challenges in India
PUMA CASE
Analyze the case by answering the four questions below. This is a research-based case which means you will need to conduct outside research in order to answer the questions. Your answers should be within 2 to 3 pages; single space; Times New Roman, Font 12.
Questions
- Analyze the Puma brand and the key factors that contributed to its success. Furthermore, analyze the drivers of growth in the Indian sportswear industry.
- What does Puma need to do to maintain the leadership position in the Indian sportswear market?
- How should Puma prepare to ‘fight’ the response from foreign brands in the Indian market?
- What concepts and theories of international business are found in the Puma case? Briefly discuss each one and relate them to the case.
EVALUATION CRITERIA FOR CASE ANALYSIS
Answering the questions correctly (60 points)
Length (10 points)
Language (20 points)
Format/structure (5 points)
Citations/References (5 points)
Page 2
9B16A006
PUMA WORLDWIDE
Puma SE (Puma), headquartered in Germany, was considered one of the world’s leading sportswear brands.
It had been designing, developing, marketing, and selling footwear, accessories, and apparels since 1948.
The company categorized its product portfolio by sport (such as football, fitness and training, running,
motorsports, and golf) and owned other popular brands, such as Puma, Dobotex, Cobra Golf, and Brandon
(see Exhibit 2). Puma employed approximately 10,000 people and distributed its products in more than 120
countries worldwide.8 To capture a leadership position globally, Puma revised its mission statement in 2013
to “be the fastest sports brand in the world,” meaning fast reaction to new trends, reduced time to market
with innovations, and speed in problem solving. The company’s repositioning initiative, such as its Forever
Faster campaign, was a reflection of its new revised mission statement.9
PUMA INDIA
Puma first entered the Indian market in the early 1990s with a licensing agreement with Carona. The
agreement was revoked in 1998, and in 2002, Puma re-entered the Indian market by sharing its license and
distribution partnership with Planet Sports. Under this model, Puma was responsible for quality and brand
consistency while Planet Sports was in charge of sourcing, distribution, and retail of Puma products in India.10
India’s monthly per capita income was expected to grow by over 10 per cent in FY2015/16 in comparison
to FY2014/15.11 The Indian consumer lifestyle had undergone a massive shift: disposable income levels
had increased and people were adopting international brands.12 By 2006, there had been a fourfold increase
in the availability of international accessories and shoe brands in India.13
To leverage this growing trend and strengthen its brand position in India, Puma established its first
executive outlet in the country in 2006, manufacturing and distributing apparel, footwear, and accessories
across multiple cities in the country.14 After three and a half years of operations, Puma reported a profit in
2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had
consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its
competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for
the first time ahead of its competitors Adidas, Nike, and Reebok.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do Not Copy or Po
It had been designing, developing, marketing, and selling footwear, accessories, and apparels since 1948.
The company categorized its product portfolio by sport (such as football, fitness and training, running,
motorsports, and golf) and owned other popular brands, such as Puma, Dobotex, Cobra Golf, and Brandon
(see Exhibit 2). Puma employed approximately 10,000 people and distributed its products in more than 120
countries worldwide.8 To capture a leadership position globally, Puma revised its mission statement in 2013
to “be the fastest sports brand in the world,” meaning fast reaction to new trends, reduced time to market
with innovations, and speed in problem solving. The company’s repositioning initiative, such as its Forever
Faster campaign, was a reflection of its new revised mission statement.9
PUMA INDIA
Puma first entered the Indian market in the early 1990s with a licensing agreement with Carona. The
agreement was revoked in 1998, and in 2002, Puma re-entered the Indian market by sharing its license and
distribution partnership with Planet Sports. Under this model, Puma was responsible for quality and brand
consistency while Planet Sports was in charge of sourcing, distribution, and retail of Puma products in India.10
India’s monthly per capita income was expected to grow by over 10 per cent in FY2015/16 in comparison
to FY2014/15.11 The Indian consumer lifestyle had undergone a massive shift: disposable income levels
had increased and people were adopting international brands.12 By 2006, there had been a fourfold increase
in the availability of international accessories and shoe brands in India.13
To leverage this growing trend and strengthen its brand position in India, Puma established its first
executive outlet in the country in 2006, manufacturing and distributing apparel, footwear, and accessories
across multiple cities in the country.14 After three and a half years of operations, Puma reported a profit in
2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had
consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its
competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for
the first time ahead of its competitors Adidas, Nike, and Reebok.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do Not Copy or Po
The company categorized its product portfolio by sport (such as football, fitness and training, running,
motorsports, and golf) and owned other popular brands, such as Puma, Dobotex, Cobra Golf, and Brandon
(see Exhibit 2). Puma employed approximately 10,000 people and distributed its products in more than 120
countries worldwide.
.8
To capture a leadership position globally, Puma revised its mission statement in 2013
to “be the fastest sports brand in the world,” meaning fast reaction to new trends, reduced time to market
with innovations, and speed in problem solving. The company’s repositioning initiative, such as its Forever
Faster campaign, was a reflection of its new revised mission statement.9
PUMA INDIA
Puma first entered the Indian market in the early 1990s with a licensing agreement with Carona. The
agreement was revoked in 1998, and in 2002, Puma re-entered the Indian market by sharing its license and
distribution partnership with Planet Sports. Under this model, Puma was responsible for quality and brand
consistency while Planet Sports was in charge of sourcing, distribution, and retail of Puma products in India.10
India’s monthly per capita income was expected to grow by over 10 per cent in FY2015/16 in comparison
to FY2014/15.11 The Indian consumer lifestyle had undergone a massive shift: disposable income levels
had increased and people were adopting international brands.12 By 2006, there had been a fourfold increase
in the availability of international accessories and shoe brands in India.13
To leverage this growing trend and strengthen its brand position in India, Puma established its first
executive outlet in the country in 2006, manufacturing and distributing apparel, footwear, and accessories
across multiple cities in the country.14 After three and a half years of operations, Puma reported a profit in
2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had
consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its
competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for
the first time ahead of its competitors Adidas, Nike, and Reebok.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do Not Copy or
PUMA INDIA
Puma first entered the Indian market in the early 1990s with a licensing agreement with Carona. The
agreement was revoked in 1998, and in 2002, Puma re-entered the Indian market by sharing its license and
distribution partnership with Planet Sports. Under this model, Puma was responsible for quality and brand
consistency while Planet Sports was in charge of sourcing, distribution, and retail of Puma products in India.
.10
India’s monthly per capita income was expected to grow by over 10 per cent in FY2015/16 in comparison
to FY2014/15.11 The Indian consumer lifestyle had undergone a massive shift: disposable income levels
had increased and people were adopting international brands.
.12
By 2006, there had been a fourfold increase
in the availability of international accessories and shoe brands in India.
13
To leverage this growing trend and strengthen its brand position in India, Puma established its first
executive outlet in the country in 2006, manufacturing and distributing apparel, footwear, and accessories
across multiple cities in the country.14 After three and a half years of operations, Puma reported a profit in
2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had
consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its
competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for
the first time ahead of its competitors Adidas, Nike, and Reebok.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do Not
C
2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had
consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its
competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for
the first time ahead of its competitors Adidas, Nike, and Reebok.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do Not C
2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had
consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its
competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for
the first time ahead of its competitors Adidas, Nike, and Reebok.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do Not
the first time ahead of its competitors Adidas, Nike, and Reebok.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do Not
the first time ahead of its competitors Adidas, Nike, and Reebok.
.17
SUCCESS MANTRA
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do N
Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to
Puma’s lead in India.18
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do N
Retail Strategy
Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
Do
strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
D
stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
D
the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
D
19 With this strategy, Puma steadily built its network of 340 stores
across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
D
19
With this strategy, Puma steadily built its network of 340 stores
.20 Puma
reported 13 per cent same-store sale growth in 2014 as compared to 2013.
D
.20
Puma
D
