Puma's Marketing Fundamentals: A Critical Analysis

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Marketing Fundamentals 1
Marketing Fundamentals

Table of Contents
Introduction...........................................................................................................................................3
Task 1 (A)..............................................................................................................................................4
Processes and stages of marketing in terms of role of marketing, marketing environment and
marketing mix in Puma......................................................................................................................4
Analyze the marketing development in creating value for customers..............................................11
Identify stakeholders of Puma and assess their impact on marketing activities of company............13
Task 1(B).............................................................................................................................................16
Reflection........................................................................................................................................16
References...........................................................................................................................................19

Introduction
The report is prepared to determine the marketing fundamentals importance. The marketing
fundamentals described in the report are such as process and stages of marketing and the
marketing mix role in the marketing environment. It also critically analyzes marketing role in
creating value for customers. For this report, Puma is selected as an organization whose
stakeholder engagement and impact on marketing activities is evaluated.
Puma is the German multi-national company founded in the year 1948 by Rudolf Dassler. It
designs and manufactures casual footwear and athletic, apparel as well as accessories. It is
one of the third largest companies of sportswear. It serves the customers worldwide. Its
revenue for the year 2018 is €4.64 million (Puma, 2018). It employs 13000 numbers of
employees in the year 2019.

Task 1 (A)
Processes and stages of marketing in terms of role of marketing, marketing
environment and marketing mix in Puma
According to Keller et al (2011), marketing can be defined as the process of business to
create relationship with as well as satisfy the customers. In other words, it can be termed as
an “activity, set of institutions as well as processes for creating, communicating, delivering as
well as exchanging offerings that provide value for the customers, partners, clients as well as
society”. In the views of Philip Kotler, marketing are the satisfying needs as well as wants
through a process of exchange Amofah et al (2016), depicts several stages and processes of
marketing which includes such as development of vision before strategy, focus on the
experience of customer, adapt the engagement model and educate to generate and close.
These are important stages of having market success.
Marketing Environment
In terms of Puma, Nufer (2013), describes the role of marketing environment which includes
internal and external factors that is surrounded by the business on the regular basis. Puma
marketing environment includes Pestle analysis and SWOT analysis. It is described as below:

Pestle Analysis
Political
 Puma is affected by political
instability. Hence, it tried to expand
its market in a stable country and it
became successful.
 The outsourcing also affects the
company
 Puma is also affected by new tariffs
or taxes (Kotler, 2011).
Economic
 Puma is also influenced by the
exchange rate fluctuations as it
operates its business in various
countries.
 The cost of goods sold is increased
due to inflation (Todor, 2014)
 The financial position of Puma is
affected by the high rate of interest
Social
 Now, the consumers have become
health conscious and there is increase
in the participation of sports so, these
factor affect Puma positively.
Technological
 There is an increase in sales as it is
using technological advancement
 Puma is affected positively by this
marketing environment factor as due
to use of updated technology changes

in the product features as well as
quality.
Legal
 Puma is affected by the legal factor as
there is risk of change in the
employment laws as well as issues of
environment.
 The business activities are hampered
by the tough rules
Environmental
 Changes in the climate are becoming
challenge for Puma as well as other
different organization
 It has to minimize energy
assumptions
SWOT analysis of Puma
Strength
 Puma is one of the most reputed
company all over the world.
 The products produced by Puma are
such as innovative, high quality,
comfortable products for the fastest
Weakness
 The price of Puma products are high
 There is huge competition as well as
limited market share
 Less financial strength as compare to
other big competitors in the industry.

athletes.
 It was the official sponsor of the
FIFA football world cup (Gilaninia et
al., 2013).
 It comprises of strong marketing as
well as distribution strategies.
Opportunity
 The market demand can be expanded
on the basis of the demand of
customers
 It can also make further efforts to
increase the loyalty programs that
would help the company to make
better relationship with the customers
Threat
 New competitors presenting unique
products and service would be a
threat for Puma
 Government restriction, economic
downturns can also be a threat for
company (Kumar, 2010).
Marketing Research

Ting et al (2014), defines marketing research as the collection as well as information analysis
in terms of customers, competitors, as well as effectiveness of marketing programs. It also
includes accurate information about the marketplace, target market as well as competition
and market program effectiveness. In terms of Puma, it is one of the leading sports brands
that use mix of demographic, geographic as well as psychographic segmentation. This helps
the company to understand the change in the needs of customers in the market of
competition. In terms of Puma target group, it targets urban young upper middle class and
upper-class Men and women. In terms of targeting, it uses a differentiation strategy. Webster
and Lusch (2013), examine its competitors which include such as Nike, Reebok, Converse,
Adidas, Fila, New Balance, Bata, Liberty Shoes, Under Armour, Umbro, and Woodland.
Marketing mix of Puma
Product
The main product of Puma are such as sports shoes, custom made shoes, fancy shoes,
apparels, t-shirts, Water bottles, Helmets and etc. It uses product diversification strategy so
that company may attract diversified customer base (Taneja et al., 2012).
Price

The product price of Puma is easy to purchase as compared to competitors such as Adidas
and Reebok. It uses a premium pricing strategy as it views its brand as premium.
Place
It distributes its product to the multiband store fronts and in the Puma stores. It is continuing
in expanding its brand to the customer base as well as online retail stores (Desbordes and
Richelieu,2012).
Promotion
Puma uses different advertising strategies such as tv, online customization, excellent apparel
packaging, and engagement in CSR such as control of environment pollution. It also takes
into use sales promotion marketing strategy.
Marketing Theories
On the basis of above discussion, some theories can be applied to support the discussion of
Puma marketing fundamentals. The marketing theory includes Ansoff Matrix, Porter’s five
forces, and etc. For supporting the discussion Ansoff matrix is used. Ansoff matrix is defined
as the strategic tool that helps the senior managers as well as executives for future growth.
This theory adopted by Puma would help the company for the future growth (Li and Green,
2011). It consists of four elements such as market development, diversification, market

penetration, and product development. Market development would be helpful for Puma to
expand its product in a new market by using its existing products and services. In terms of
market penetration, Puma can use its products and services in the existing market. Product
development determines new products and services in the existing market to attain growth
(McDONALD et al., 2016). Puma can develop its new product in the existing market.
Diversification includes new products in new market. Puma can introduce its new product in
new market. This theory would be helpful for Puma to attain growth. For example, this theory
is adopted by different companies such as Nike, Reebok, and Adidas the competitors of
Puma. Another example of beverage industry is Coca-cola that also adopts this marketing
theory to expand its market internationally.
Source: (McDONALD et al., 2016).

Analyze the marketing development in creating value for customers
Egelhoff (2018), examined marketing as the set of activities in terms of developing
communication, exchanging offerings as well as delivering that have value for the customers.
The main function of marketing is to keep the customers as priority by satisfying their needs.
Puma (2015), argue that Puma created value for the customers by taking into consideration
different marketing promotion tools such as social media sites like Facebook, Instagram,
Twitter, and YouTube. The main purpose of using these tools is to build brand growth across
the world. With the help of these social sites, it engages with the customers and comes to
know their tastes and preferences. Thus, it can be said that marketing plays an important role
in creating value to the customers. As without the absence of marketing the customers cannot
be aware of the products and services the particular company is providing. Moreover,
Lindgreen et al (2012), stated that Puma is also adopting an innovating way to develop social
media to engage with the customers. Puma also uses its target marketing strategy in order to
create value for the customers. With the help of marketing, Puma creates a position in
customer minds. It keeps the customers as first priority and employees as second priority. It
has been determined that marketing is the critical part of the success of organization. For

example, Proctor & Gamble, Toyota, the large manufacturers’ represents major expenditure
as these companies is on the basis of effort of marketing.
On the support of creating value for customers, the theory is represented. It is described as
below:
Value Creation Strategy Theory
In the views of Gummerus (2013), the theory determines how value is created for the
customers as well as the strategy of the organization in terms of appropriate returns are
derived from that value. This model theory determines the organization value proposition for
the customers, partners as well as stakeholders. In this theory, main focus is on creating
customer value. On the basis of perspective of marketing theory, Achtenhagen (2013), stated
that the value of customer refers to the perception of customers of what they attained in return
in terms of their sacrifice.
Source: (Gummerus, 2013)