What is Puma’s marketing strategy?
What is Puma’s marketing strategy? Puma has become a leading sports brand in the world. It carries out the development of designs and the commercialization of clothing and footwear. Thanks to its quality, since its foundation in 1948 by Rudolf Dassler, it is one of the companies with the highest performance when it comes to sports style.
This German company has expanded to more than 130 countries for its products and marketing strategy. If you are interested in knowing how marketing influences sports brands like Puma, continue reading this post.
Who is Puma’s target audience?
It is true, Puma, in its beginnings, was oriented toward professional athletes who competed nationally and internationally. However, over time it has been reinventing itself and showing its products to a more general target. Therefore, it has ceased to be a brand focused on elite sports. To now make its products known to anyone who wishes to acquire them.
Thus, the brand’s customer base is led by young people between the ages of 20 and 35. Puma customers belong to the upper-middle class, a group that cares about leading a healthy and hygienic lifestyle.
Following this, to attract many customers regardless of their segmentation, the brand has been concerned with knowing the individual characteristics. To make promotions more attractive to the target audience and end customers.
Positioning of the Puma marketing strategy
It is worth starting with a very important factor.
The Puma brand has used a combination of geographic, demographic, and psychographic targeting strategies for many years. In this way, you can more easily understand customers’ needs that can change from day to day in the market.
However, this segmentation strategy turns out to be the key to developing each of its products and categories. The brand has always been inspiring for those who want to move forward positively through life. Therefore, the positioning of the Puma brand has also been achieved by adding value to the company.
Competitive Advantage of Marketing Strategy
The competitive advantage of Puma marketing is divided as follows:
90% of the brand’s products come from Asian markets since the manufacturing and production plants are located right there. Supply is essential to Puma, maintaining stable coordination with more than 200 suppliers located in more than 36 countries.
Extensive product portfolio
For a long time, Puma has been responsible for several categories of its products. Such as personal care, footwear, sports accessories, eyewear, clothing, watches, and much more.
Indeed, being present in segments that cover different products helps the brand to have a greater share of the market to increase its portfolio of potential customers.
BCG matrix in marketing strategy
The BCG matrix works as a growth matrix used to evaluate the product portfolio within a company.
In the case of Puma, it took over Puma & Cobra Golf, which dealt with the same products in the sports market.
If we go back a few years, specifically to 2015, we can see that this group generated 45% of net sales.
From that date until today, the segmentation of this product has developed a high amount of income. Unlike other product categories such as clothing and accessories.
Distribution Strategy in Puma Marketing
Considering that Puma has also been carried away by a marketing mix, let’s talk a little about its distribution strategy. This company has distributed its offers through three exclusive channels. Including the brand’s exclusive retail stores, wholesale sites, and e-commerce sites such as Alibaba and Amazon. Typically, the largest percentage of your sales comes from the wholesale channel.
Brand Equity in Puma’s marketing strategy
For those who do not know what Brand Equity means, it is the efforts that are being made with the company’s brand and its products. Puma has had a long time in the footwear industry. And as time goes by, confidence in other of its products, such as sportswear, increases.
Likewise, these product categories have been inspired by their attractiveness and combining with those who are not afraid to take risks because they simply prefer to live their lives to the fullest.
The brand has achieved meaningful collaborations with world-renowned sports personalities. Such as Tyger Woods, to make good use of Brand Equity.
Analysis of the Puma marketing strategy
Let´s see the competitive and market analysis of Puma’s marketing strategy:
As we have already said at the beginning of this post, Puma has operations worldwide. However, the brand has focused on manufacturing the products in the Asian market because the price of labor is lower. Also, the cost of the raw material has been an advantage for the brand to stay one step ahead of the competition.
Currently, many factors can intervene in the industry so that sports brands can stay in the market. The bargaining power of suppliers, the lifestyle change, the migration of the population, and the increase in labor cost.
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Sports brands also need a marketing mix strategy to outperform the competition. Puma’s marketing strategy has been focused on understanding the needs of its public no matter where in the world it is. This has generated higher income, considering that its products are produced in a market such as Asia. Where the hand of work is not as expensive as in other countries.
If you have a sports brand that you want to make known, at BluCactus Canada, we have the marketing professionals you need to make a strategy that fits your objectives and your target audience. You just have to contact us, and we will gladly assist you.
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