PUMA Marketing Essay

executive director SummaryThe multi-billion global athletic wear effort is a exceedingly competitive sphere that is continually evolving. Two of the largest players in this perseverance are Nike Co., which h onetime(a)s 37% market share, and jaguar with 7% market share. Objectives To support its increase quarry to $23 billion by 2011, Nike intends to expand its market penetration in India, China, Brazil, and early(a) emerging economies. To get through this end, the federation jut outs to create sets that are tailored-fit to different markets. catamount , on the other hand, targets regional and merchandise type expansion. The phoner has drafted a quintet year plan to procure this purpose. emplacement/Product/Service/Price system Analysis These leading producers have differing approaches in their trade strategies. Nike has poised itself as an pioneer of high bore activewear, making sports as part of an active lifestyle. It invests heavily in advertising and mar keting campaigns to create dirt power and awareness. The Nike name is associated with quality, triumph, and greatness. As a result of its successful marketing strategies, Nike has bring forth part of sports culture. Its products are categorized beneath basketball, soccer, womens, running, mens, sports culture, and others.For the year ended celestial latitude 31, 2007, Nike describe revenues of $16 billion, where more than half of which came from its athletic footwear division. On the other hand, panther 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, akin Japan, to come up with designs that meet the companions goal of providing stylish sportswear that appeal to the high-end market. Its business is segmented into footwear, get dressed and accessories. For the fiscal year 2007, catamount reported revenues of $2.4 billion, wher e sixty part of which was earned from footwear. trade Analysis both(prenominal) Nike and PUMA target eighteen to thirty-five year old males and females globally. Despite the similarity of its market, the two companies entice different sorts of consumers. Nike has a strong consumer low for its performance shoes, while PUMAs strength lies on its casual shoes. scattering 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 cardinal thousand locations with eleven central dispersal centers. This extensive reach allows Nike to be lend equal to(p) to the most number of people sound-nigh the world. Puma is based in Herzogenaurach, Germany, with statistical distribution channels in more than 80 countries worldwide. However, it is largely concentrated in the European region, resulting to a lower market share. Both companies do not sell flat to the public. Instead, they sell throu gh retail stores hardened in malls or department stores. forwarding Strategies Analysis PUMAs five-year plan for 2006-2010 cogitatees on expansion of product segments, regional penetration and non-PUMA brands.To do this, the caller-out is displacement focus to capture younger consumers without losing its high-end costumers. It is excessively negotiating for the transfer of federation control to PPR, a conglomerate that operates luxury brands like Gucci and YSL. This run is seen to increase sales for PUMAs sneakers and up profits by at least ten percent. For Nike, it continues its innovations coupled with predatory marketing campaigns to promote its products and hold on to its leading position in the market. completion 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 tell the company its top position in the market. As it continue to provide quality pr oducts 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 needs to create products that would render to the middle-end consumers. From this project, I have learned that marketing strategies and promotional campaigns do a peck to the brand. As a result of brand power, a companys price will also be at an advantage. I have also learned that Nikes management is doing very well to keep the company at the forefront, compared to PUMAs top executives who are unflurried in the process of making the company more competitive globally.