brand extension: marketing plan · strategy. although steering away from sportswear, all its...

B R A N D E X T E N S I O N : M A R K E T I N G P L A NVei BobadillaRizta PratamaMichelle Nguyen

EXECUTIVE SUMMARYPUMA’s rising sales in the past year has prompted a poten-tial for a successful brand extension. In this marketing plan is the introduction of a Ready-To-Wear line catered towards the power women, embracing PUMA’s “The Future is Female” strategy.

Although steering away from sportswear, all its products will maintain PUMA’s high performance quality — allowing flexibility and comfort in every day wear.

With its new product line in a new arena, PUMA can gain an advantage reaching into an uptapped market in sportswear. A RTW collection would spread PUMA into the fashion industry and put it in the forefront — gaining new market share that its competitors have yet entered.

ABOUT PUMA“FOREVER FASTER”PUMA is a global athletic brand founded in 1948 and headquartered in Germany.

Their products have played a key and influential role in sports throughout the decades. Their collections range from performance to lifestyle.

It currently distributes to over 120 countries.

BRAND VALUESBRAVE CONFIDENT DETERMINED JOYFUL

CURRENT LINESTEAMSPORT football apparel, footwear, products

RUNNING & TRAINING running apparel, footwear, products

GOLF COBRA PUMA GOLF apparel, footwear, accessories

MOTORSPORT racing apparel, footwear, partnerships

SPORTSTYLE sports-inspired lifestyle collections

KIDS lifestyle and sportswear collections for infants to teens

ACCESSORIES & LICENSING accessories

TARGETANALYSIS OF CURRENT CUSTOMERSPRIMARY:

15-35 years oldMale, femaleMiddle to upper class

SECONDARY:

7-14, 36-55 years oldMale, femaleMiddle to upper class

ATHLETIC

BOLD

ACTIVE

STYLE-CONSCIOUS

CREATIVE

COMPETITION

Global revenue: 3.39 billion euros 16.92 billion euros 27.83 billion euros

# of stores worldwide: 540 (2013) 1,698 (2015) 931 (2015)

PARTNERSPUMA SPORTS INDIA PVT. LTD. Wholesaler / Distributor / Supplier for:

Sports ProductsSports FootwearsSports ApparelSport Accessories

DISTRIBUTORS WAREHOUSE, INC. Wholesaler / Distributor for:

Inventory PUMA tools, parts, air compressors

INTRODUCTION OF NEW LINEa new ready-to-wear collection for apparel, footwear, and accessories

collection is emphasized by its performance capabilities — despite being more formal wear.

PUMA RTW CollectionPOTENTIAL IN SALES TURNOVER goal is to improve sales in the period by 20% FORECASTS we predict line will thrive due to increase popularity in sportswear and fashion collaborations

TIMING now is a good time to enter this market because PUMA has al ready initiated its fashion image with FENTY... the market is currently very receptive to sport vs. fashion collaborations

idea & development) 1 monthproduction ) 2 months

promotion & distribution) 3 months

3 AIMS

1. Extend the PUMA brand into RTW collections market

2. Refresh PUMA reputation and keep it relevant to evolving markets

3. Pioneer the evolution of athletic companies and product technology

"PEST" ANALYSISPOLITICAL & LEGAL

ECONOMICAL

SOCIAL & CULTURAL

TECHNOLOGICAL

Governmental regulations for importing and exportingTrade practice & manufacturing lawsTaxes, tariffs, etc.

Rising strength of developing markets Asia, Central & South AmericaStability in European markets

Successful use of celebrities / spokespeople to endorse brandPositive Brand ImageEstablishment of product in market positioningIncrease in popularity of lifestyle + sportstyle trend

Rising use of social media platforms to promote brand imageE-commerce used to reach international marketsInternet offers immediate and direct feedbackProduction technology allows for the advanced product capabilities

SWOT ANALYSISSTRENGTHS WEAKNESSES

THREATSOPPORTUNITIES

Strong, positive brand awareness

Successful & stable business model

Financially stable & able to sup-port new venture

Different approach to brand and product lines

May take time for consumers to adjust

Slow introduction / adaptation into the market

Inability to successfuly merge into current product lines

Pioneer this branch of RTW for traditionally athletic company

Not many direct competitors to new product lines

MARKET SEGMENTATIONFemale, ages 18-40Medium - high income, flexible spending patterns

FASHION FORWARD, INDIVIDUALISTIC, CREATIVE, PRACTICAL, ATHLETIC

Trusts the brand, but is willing to experiment with the new extension and type of products offered

Responds well to digital marketing, celebrity endorsements, and the allure of being at the forefront of the curve

The product line would fit into her typical fashion habits while satisfying the novelty factor she seeks and refreshing the brand image

ALTERNATIVE STRATEGIES

Sports / athletic drinks & nutritional supplements Adding an extension to the brand that focuses on PUMA brand athletic drinks and supplements such as protein bars to pair with athletic theme

Technology accessories Creating a line of sports accessories and technology such as watches, bands, headphones, and other pieces that are capable of monitoring athletic activities

CHOSEN MARKETING STRATEGYPUMA FOR THE “IT” WOMANReady-To-Wear collection that complements the brand image, but invites a new target audience of high, fashionable women

Extends the product line beyond athletics but maintains its essence

Products hold performance capabilities, making them unique in the market

Gives PUMA a distinct advantage over other athletic company competitors and shows ini-tiative towards the direction of the company

Continues brand’s effort into the fashion markets (FENTY, McQ by McQueen, etc.)

MARKETING MIXPRODUCT PRICE

PROMOTIONPLACE

RTW Collection that features sleek, chic, forward styles

With exceptional performance capabil-ities that extend the brand while main-taining its essence and values

Mid to high level prices

Ranges from $50- 300

Affordable to target

Use celebrity endorsements by influential figures that appeal to target market

Social media platforms to spread commu-nication and introduce the product line through platforms that the target uses

Sold primarily in PUMA retail loca-tions

Multi-brand retail and department stores

PRODUCTHIGH QUALITY APPAREL, FOOTWEAR, ACCESSORIES — same superior performance quality as previous products

AIMS Extend the PUMA brand into RTW collections market Refresh PUMA reputation and keep it relevant to evolving markets Pioneer the evolution of athletic companies and product technology

PACKING & PACKAGING Maintain original PUMA packaging as to not divert from brand

WARRANTY Offers a 1-year warranty for any malfunction or manufacturing error

PRICING STRATEGYPRODUCT INTRODUCTION:

PRODUCT DEVELOPMENT:

PRODUCT MATURITY:

PRODUCT DECLINE:

PRODUCT RE-LAUNCH:

skimming pricing strategy — introduce collection with higher price then price re-duction until it aligns average demands

decrease prices to reach more market shares, increase production volumes

maintain stable prices

price reduction — place discounts for a limited time using special information campaign to not lose brand awareness

original launch in north america and if successful, relaunch globallydepending on success, we could keep the items that are in demand and launch new collections every season

DISTRIBUTION

DIRECT PUMA stores, online store, and outlets

INDIRECT Selective distribution in order to fitwithcollectionstyle Multi-brand retail and depart ment stores

PROMOTION STRATEGYOBJECTIVE Inform about new collection Strengthen “The Future Is Female” strategy Create positive emotions to associate with collection Generate customer interest and purchase intentions

“THE FUTURE IS FEMALE” PUMA believes that women will continue to be more and more involved in sports worldwide, and sports is having an ever in- creasing influence on fashion PUMA wants to strengthen focus on female target group

ADVERTISING Launch advertising campaigns consisting of female heroes Strong, confident, powerful, dominant Emotionally lure target market to want to be like the models

Message: be successful, powerful, strong and fashionable with PUMA

High fashion magazines: Vogue, Elle, Marie Claire, Nylon, etc. Digital: Hypebae, Highsnobriety, social media, influencers

PUBLIC RELATIONS Product placements in magazines and editorials Involve female journalists as example of our power women

VISIONSHORT-TERM In a quarter, improve sales by 20% Successfully make collection viral Learn about primary competition and brainstorm what PUMA offers that they don’t

LONG-TERM Increase revenue by 5% at the end of the current fiscal year Reposition PUMA as the World’s fastest sports brand To be the world’s leading sports brand Propel PUMA as a fashion-oriented sportstyle brand Increase additional store outlet worldwide

CONCLUSION

Launch Ready-To-Wear collec-tion

Create alternative product line to differentiate PUMA from oth-er brands

New market share acquisition

RECOMMENDATIONS

Stress on “The Future is Female” strategy

Refocus on the brand

Advertise philosophy and sustainability aspect

Advertise products differently, especially in comparison to competitors

Have wider variety of product line