Business Essays – Puma Company Brand

Business Essays Puma Company Brand Puma Company Brand 1. Executive Summary Puma AG is a multinational company that is based in German and manufactures high athletic and sportswear shoes both for women and men, It was founded by Rudolf Dassler after a dispute with his brother Adi Dassler with whom they had founded the Dassler Schuhfabrik in 1924. Puma had a very poor brand image that show a decline in its market share and prompted puma to change it strategic decisions to improve on its image, this process of change was led by Jochen Zeitz Puma CEO based on phases one to four of strategic plan to change puma’s image so that it can compete favorable in the marketplace and within a couple of years Jochen Zeitz had change puma’s brand image into one of the most desirable and sought after brand of sportswear and footwear worn both buy celebrities and fashion followers all over the word. 1.1 Introduction Puma was founded in Dassler Schuhfabrik, Herzogenaurach, Germany by Rudolf Dassler after a dispute with hi s brother Adi Dassler with whom they had founded the Dassler Schuhfabrik in 1924. Until early 2003 puma had a very poor brand image that show a decline in its market share and prompted puma to change it strategic decisions to improve on its image, this process of change was led by Jochen Zeitz Puma CEO based on phases one to four of strategic plan to change puma’s image so that it can compete favorable in the marketplace and within a couple of years Jochen Zeitz had change puma’s brand image into one of the most desirable and sought after brand of sportswear and footwear worn both buy celebrities and fashion followers all over the word. This report is divided in three parts, Part one presents the factors that influenced puma to change it brand image and it further goes to describe these factors under Macro-environmental analysis basing on market trends, rivalry between customers and strategic group mapping. The second part presents the puma’s resources and capab ilities in terms of strengths and weakness as well as virtuallity as seen as strengthens and the third part of the report presents puma’s winning strategies basing on pumas situation that fits the company, sustainable completive advantages and as a better performing company. According to case study of Puma AG (in Thompson, A.A., Strickland, A.J. and Gamble, J. (2005) Crafting and Executing Strategy (Fourteenth Edition), McGraw-Hill, New York, pages C411- C432), The environmental and competitive factors that influenced Puma’s strategic decision to improve its Brand image is identified under Macro- environmental factors, rivalry between competitors and strategic group mapping as below. 1.1.2 Macro –environmental factors Lack of social acceptance of Puma brand from the upper class customers who were not willing to wear the brand because they considered to of poor quality and were sold â€Å" dirt-cheap † Puma’s brand was compromised and this a affecte d it’s value for example Rudi’s son wanted puma products to reach all the customers of all social back ground and this move was seen by the upper class people as some thing below them and they can not be seen wearing the same brand as people on welfare recipients. In order for pumas brand to be accepted as a high quality brand of value, force puma to change and improve its brand so that it can be socially accepted by customers.