Marketing Management Report: Market Segmentation Analysis for Puma

This report provides a comprehensive analysis of Puma's marketing management strategies, with a specific focus on market segmentation. It begins with a literature review, incorporating six academic articles to establish a theoretical foundation for understanding market segmentation principles. The report then delves into a case study of Puma, examining how the company applies these principles to target different consumer segments. The analysis covers various segmentation bases, including geographic, demographic, psychographic, and behavioral factors, highlighting how Puma tailors its products and marketing efforts to meet the diverse needs of its global customer base. The report explores Puma's strategic decisions in adapting to local cultures, offering products at different price points, and targeting specific consumer groups such as athletes and sports enthusiasts. The conclusion emphasizes the importance of market segmentation for Puma's success in fostering brand loyalty and driving sales and revenue generation, and the effective use of marketing techniques. The report also references various sources to support the claims and arguments.

Running head: MARKETING MANAGEMENT
Marketing management
Name of student
Name of University
Author note

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Table of Contents
Introduction..............................................................................................................................3
Literature review incorporating six article about market segmentation............................3
Selection of company or product to analyse case study from the perspective of market
segmentation.............................................................................................................................5
Conclusion.................................................................................................................................7
Reference list.............................................................................................................................8

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Introduction
The report has been aimed to provide a brief literature review on the management of
marketing and market segmentation as defined by Goyat (2011) as “The basis of market
segmentation: a critical review of literature”. This has been aimed at improving the sales
generation and raise the level of profit to gain competitive advantage and sustenance within
the competitive business environment too. With the facilitation of marketing management,
the company will be able to meet the varied needs of customers from different market
segments and even enable market segmentation for reaching out to the wider group of
audiences to influence their buying behaviours largely. The focus of the management of
marketing by Puma, which has been considered for the case study, has been the market
segmentation, which can allow the company to categorize the entire market in Australia into
smaller market segments consisting of customers with different kinds of needs and
preferences (Kotler et al., 2018). The concentration of the marketing energy will allow Puma
to implement the right marketing strategies and enable segmentation of market in order to
satisfy the needs of people belonging from each of the market segments. It will also keep
them satisfied and ensure that the demands and expectations of theirs for the products are
backed up by their ability to pay for the products and services that they are willing to
purchase (Au.puma.com, 2020).
Literature review incorporating six article about market segmentation
According to Goyat (2011), the segmentation of the market has enabled the marketers
of the business organisations to understand the targeted market segments’ needs and
preferences quite easily and meet those. The demands and preference have been shaped by
the society norms and thus it differ based on the different communities or societies. Due to
this, the companies have aimed at segmenting the market into smaller market segments with

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the buyers having different tastes, preferences, characteristics and behaviours, who needed
separate products and marketing mixes to fulfil their needs and preferences (Goyat, 2011).
Thus, the companies have segmented the market to deliver different products for matching up
with their needs, furthermore ensure that they are willing to pay for the product or service
delivered to them.
Also stated by Weinstein & Cahill (2014), that there are four segmentation bases
including the geographic segmentation, psychographic segmentation, demographic
segmentation and he behavioural segmentation. All these segmentation have been based on
different factors related to the characteristics of individuals and also on the basis of income,
their lifestyles, social aspects and their behaviours too (Weinstein & Cahill, 2014). With the
help of this market segmentation bases, the companies have managed to prioritise on the
targeted audiences as well as enabled the marketers to allocate the resources properly to
create interest among the buyers. As stated by Venter, Wright & Dibb (2015), the
demographic segmentation done by marketers allowed them to consider the age, gender,
income, family features, education, background and ethnicity and education of the individuals
the products have been targeted to. Based on the statistical data and information and on the
basis of their income, knowledge about the brand, the products have been delivered (Venter,
Wright & Dibb, 2015).
On the other hand, Cross, Belich & Rudelius (2015), argued that the psychographic
segmentation has been more effective, because it has focused more on the personality traits,
attitudes, areas of interests, lifestyles and family influences, which motivated clients to make
purchases. The behavioural segmentation has helped in understanding how the customers act
and what purchasing behaviours and spending habits possessed by them made tem aligned
with a specific brand (Cross, Belich & Rudelius, 2015). These kinds of customers have been
more associated with the brand interactions, which has enabled marketers to communicate

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with them frequently and established good relationships to foster brand knowledge among the
clients too.
There are various companies, as considered as Hatheway, Kwan & Zheng (2017),
which have aimed at geographic segmentation that is based on the ability to reach different
nations and cities and also considered the cultural aspects and climatic conditions before
introducing the products and services. This has favoured the marketing strategies to deliver
the products according to the climate conditions and according to the cultural aspects of
different places. Budeva & Mullen (2014), suggested that due to this, the individuals from the
market segments present in different nations and cities, were motivated and they had easily
been aligned with the brand and its prospects to make purchases consistently (Hatheway,
Kwan & Zheng, 2017).
Selection of company or product to analyse case study from the perspective of market
segmentation
Puma is a major multinational corporation that has been specialised in the
manufacturing and production of great quality athletic and casual footwear items and even
related apparel and accessories for catering to the diverse needs of people from all over the
world. The company has been actively engaged in the marketing activities and thus the
segmentation of market has also been done to gain greater outreach to the customers as well
as generate more profit in business and attain competitive advantage. One of the major issues
experienced by Puma currently has been the ability to meet the diverse needs of people
belonging from different market segments (D’Urso et al., 2013). It can be due to lack of
emphasis on the different market segments or even failing to deal with the clients properly
because of the premium products and services delivered. The company is known for its
excellent quality and features and thus, the prices are set as premium, which might be the

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source of issue considering the fact that most of the customers are from the premium market
segments and not from the middle and lower market segments (Deepak & Jeyakumar, 2019).
The company has made strategic decisions to enable the segmentation of market
based on the demographics, behaviours, psychographics and geographic aspects. The
geographic segmentation has allowed Puma to divide the market in terms of nation, states,
country wise and based on various regions (Au.puma.com, 2020). Puma has made sure to
adapt to the culture of different places all across Australia such as in Queensland, Adelaide,
Melbourne, etc. in order to meet the varied needs of people and ensure higher level of
satisfaction among them too. The regions covered by Puma are Europe, Middle East and
Africa, America and even Asia pacific regions (Schmid, 2017). The shoes are athletic
footwear items and accessories have been made according to the demands of the targeted
segments, which ensured fulfilment of their needs and satisfaction too.
The demographic segmentation is based on the age, income, social aspects,
occupation, education and knowledge, etc. Puma has made sure to offer products available in
different price range so as to meet the customers’ needs with higher as well as lower income.
Based on the education also, the customers have been acknowledged and informed about the
brand. The new products have been made available in the new market segments while the
existing products that have been innovated, have to be made available in the other market
segments comprising of people who have knowledge about the brand and its prospects (Kim,
2015). The kids, young adults and middle age customers, all have been provided with
different products to suit their needs. The occupation was considered, as the targeted
audiences also comprised of the sportspersons, who have been provided with the best in class
shoes and other sports accessories too (Au.puma.com, 2020).

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The consumers who are actively engaged in sports activities and enjoy premium
lifestyles, have ben targeted by the company through psychographic segmentation. The
sportspersons who are energetic and ambitious and often indulge in outdoor activities, have
been provided with good quality sportswear goods (Mahajan, 2020). Puma has targeted the
bases based on the VALs framework too through inclusion of Innovators, Achievers and he
experiencers, which emphasized on meeting the varied needs of people, among which, some
are active, some are goal oriented and the others tend to be young and seek adventure and
excitement (Au.puma.com, 2020).
The behavioural segmentation, as the name suggests, is based on the behaviours of
individuals that the customers possess on the basis of quality of product, its comfort and
convenience in meeting their performance requirements. Uma has remained consistent in
production of goods that are of great quality, deliver great performance and are convenient to
wear as well (Cross et al., 2015). The athletes are sports persons have remained loyal towards
the brand and thus their attitudes and behaviours are dependent upon how well the company
has delivered the products and services according to their needs and preferences. Thus, with
the management of these segmentation bases, Puma has fulfilled the diverse needs of people
belonging from different market segments, influenced them to make purchases and this
further resulted in higher sales and revenue generation too (Deepak & Jeyakumar, 2019).
Conclusion
The essay highlighted the importance of market segmentation done by Puma to reach
out to the market segments with the help marketing techniques and to meet the diverse needs
of people belonging from these different market segments. The analysis of the case study
involving Puma helped in understanding how the company made strategic decisions to
segment the market and delivered different products and services to different market
segments though the product category remained same, for aligning with their needs and other

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aspects too. Thus further helped in keeping the customers motivated and encouraged to make
purchases from Puma, thus established positive brand image, reputation and equity to
encourage higher sales and revenue generation.
Reference list
Budeva, D. G., & Mullen, M. R. (2014). International market segmentation. European
Journal of Marketing.
Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of
Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
D’Urso, P., De Giovanni, L., Disegna, M., & Massari, R. (2013). Bagged clustering and its
application to tourism market segmentation. Expert Systems with
Applications, 40(12), 4944-4956.
Deepak, R. K. A., & Jeyakumar, S. (2019). Marketing management. Educreation Publishing.
Goyat, S. (2011). The basis of market segmentation: a critical review of literature. European
Journal of Business and Management, 3(9), 45-54.
Hatheway, F., Kwan, A., & Zheng, H. (2017). An empirical analysis of market segmentation
on US equity markets. Journal of Financial and Quantitative Analysis, 52(6), 2399-
2427.
Kim, J. S. (2015). A Comparison of Alternative Approaches for Cluster-Based Buyer
Segmentation in Optimal Product Positioning Models. In Proceedings of the 1998
Academy of Marketing Science (AMS) Annual Conference (pp. 388-393). Springer,
Cham.

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Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing
management: an Asian perspective. Pearson.
Mahajan, S. (2020). Sneakers Market Size & Share Analysis Report, 2019-2026.
Au.puma.com. (2020). Retrieved 11 April 2020, from https://au.puma.com/.
Schmid, F. (2017). THE EFFECT OF SPORT SPONSORSHIP ON BRAND EQUITY: Does
the sponsorship of Usain Bold help Puma to increase their brand equity?.
Venter, P., Wright, A., & Dibb, S. (2015). Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), 62-83.
Weinstein, A., & Cahill, D. J. (2014). Lifestyle market segmentation. Routledge.