Market Segmentation of Puma

Puma is the world’s top sports brand, designing, selling, and marketing footwear, clothing, and accessories in over 130 countries. Established in Germany, but developed its global reach over the last 67 years, employing more than 12000 diverse and devoted employees in 45 countries. Rudolf Dassler founded the company in 1948, and it has since authorized itself as a leading manufacturer and designer of performance and sports style items. PUMA has created history as a designer of rapid product designs for the world’s fastest athletes for more than 70 years.

Before we go any further, let’s look at one of Puma’s commercials to see what type of customers they prefer.  

Brand segmentation tactics define the qualities of a company’s ideal consumer persona. Puma has ascended to the top by catering to the demands of its target market. The traits of their ideal consumer persona will be revealed by analyzing this Puma commercial.

It’s almost time for sunset. A shopkeeper lowers his steel shutters. The light from a streetlamp turns on. The skyline begins to light up. Pool balls are stacked on the green baize, chalked cues, pinball machines are shoved, and bowling balls are aimed at pin racks.

The Original goal of the commercial was to recruit a different type of athlete and, as a result, expand their target audience and impact. They desired to be associated with and engage with the world’s trendiest influencers to increase the relevance of their brand. Puma’s strategy is to develop an altogether new category that will resonate with a new audience.

Puma’s strategy was to provide events where their new target demographic could have a good time and then distribute the material generated by the nights via social media. The parties were held in fashionable places worldwide and were promoted through essential websites, including Vice, Last.FM, and Sneakers.

Puma has started a global campaign to promote Puma Social, a new type of footwear for the ‘after-hours athlete.’

Droga5’s campaign wants to bring pleasure back into sports and advocate footwear for individuals who are socially active and athletically active.

The commercials include individuals playing pool in a club and bowling at night, with slogans like “It’s a lot more fun to take a 5 am cab than a 5 am run” and “Give 75%.”

This commercial urges the audience to forget about calorie counting, exercise, and hydration. It was all about having fun while participating in after-hours sports. From ping-pong and football, darts or karaoke, they salute the athletes whose primary objective is to have fun and fully enjoy the process of playing different games. 

Naysayers are the type of customers who are sceptical, security-conscious. Safety is the most crucial factor for them while making a purchase. They strive to earn notoriety and reputation in an already adapted environment after they have found safety. This is the type of customer that Puma prefers to work with. 

Here are some interesting facts about Naysayers.

Their approach to life is reasonably practical. They prefer a peaceful life, without any extremes, which guarantees their secure future. For naysayers, living conditions must always be planned and well-arranged – this is the most important thing for them. 

Naysayers’ attitude towards technology and to things that they are unfamiliar with confuses and bothers them. They prefer choosing between those options that are familiar to them. They choose the ways that are proven to be the best ones. 

Naysayers are not ambitious, and they do not care about career development and any decision they make. They neglect recognition and respect by family, peers and fellow workers. 

Their life motto is ‘I am who I am, not what I wear”. Naysayers do not care a lot about their appearance. They do not follow fashion trends and don’t try to dress in style. They follow the same logic regarding brand usage and adoption; they buy for comfort, not style. For them, practical preferences are more important than trends. Naysayers believe that if the brand is popular and well-known, it doesn’t necessarily mean that those are the best shops. 

Naysayers rarely purchase something, only when something is essential or when something goes wrong. They do not buy anything just for the sake of having that product. Even when they are doing their shopping, they think twice before paying for something. Primarily, such attitude is based on the low level of their income, making them spend very carefully and never buy anything in a rush. 

For Naysayers, the definition of leisure activity is chilling at home. They prefer lovely and quiet evenings at home. They enjoy spending time with their families as well. While staying indoors with their relatives, they cook and clean and help them with other household chores. 

Nights in pubs or clubs is not their style. First and foremost, they don’t have money for that. They don’t eat outdoors either – for Naysayers, and the best food is only food made by mom. 

16 Personalities (Which one is for your business?)

Let’s discuss some key qualities of Naysayers.

• They have a simplistic and practical approach to life. Static life is the most preferable variant, without drastic changes and nuances.
• Appearance is of less importance, they do not try to dress in style and think that looks do not represent the person.
• Naysayers are hard workers and prefer having a secure and predictable life with a safe future. 

Puma owes its worldwide success to not only their well-designed product but also to its segmentation strategy. Who is our customer? What must we do to satisfy them? How can we earn their trust in our business? Danone and Activia have found the answers to these questions.

Want to discover more on the topic of segmentation? Check out our book of 16 Personalities, where you will surely find the life preferences and values of your ideal customer, and learn more about others. Moreover, you can find other marketing and negotiation tips in the book as well. 

Now, let’s see how Puma forms their positioning plan.

To understand the changing demands of clients in a competitive market, Puma uses a combination of demographic, regional, and psychographic segmentation tactics.

The cornerstone of the product development process is the targeting strategy. For different product categories, Puma has a distinct targeting strategy.

It has always positioned itself as a brand that motivates people to attain their full potential. For the same, Puma employs a value-based positioning approach.

90% of its product range is obtained from Asian markets, where most of its manufacturing and production units are based. Puma’s sourcing is a significant undertaking managed by Big Cat Ltd., a firm that coordinates with 190+ suppliers in over 35 countries for sourcing and product development. One of Puma’s most crucial competitive advantages is procurement.

Puma sells footwear, personal care, eyeglasses, watches, sports accessories, and clothes, among other things. Being present across interconnected product sectors with a considerable number of products aids the brand in gaining a significant share of the wallet and increasing the size of the client basket.

Puma’s appeal of being a risk-taker, confident, bold, driven, and joyous disposition to live life to the fullest has always been a source of motivation and inspiration for those in the footwear, sportswear, and clothing industries. The brand has been linked to some of the world’s most famous athletes, including Usain Bolt, Tiger Woods, and many others.

Puma’s marketing mix will give an overview from several perspectives.

Puma, as a brand, is dedicated to making a positive impact on the sports world by promoting sustainability, peace, and creativity. And the company’s commitment to its beliefs has helped it become a worldwide power. However, this is not the only factor that has contributed to the company’s enormous success. It is superb marketing approach has ensured that it remains a global leader in sports footwear manufacturing. Apart from shoes, the company has ventured into producing sporting equipment, watches, and other accessories.

Product.

Puma offers a diverse selection of footwear, sporting products, athletic apparel, and stylish accessories. Puma is also the leading manufacturer of racing shoes and outfits for enthusiasts. In reality, NASCAR and Formula 1 are solely produced by the firm. In addition, BMW and Ferrari have partnered with the firm.

Puma has established itself as a dependable brand that can be relied upon to produce exceptional items via collaborations with prominent designers such as Alexander McQueen, Rossi, and Yasuhiro Milharaand.

Puma promotes their product range with the help of national brand ambassadors. Gym equipment, hiking equipment, and nutrition and fitness consulting are all examples of product diversification tactics. The goal of a product diversification plan is to increase profitability and attract a broader range of customers.

Place.

Puma sneakers are mostly sold at multibrand stores and unique Puma stores located in key cities throughout the world. Customers will need a more significant assortment of shoes and accessories than the competitors. It is a brand that can be found practically anywhere thanks to its extensive distribution network backed up by resources and knowledge.

Puma is also always concentrating on retail development, as seen by its rapid establishment of new stores in different nations worldwide. This serves to bring the items closer to the consumer and promote the brand and create revenue. Puma has said that it would continue to grow its customer base and fully integrate its retail outlets online.

Price 

When compared to higher-priced competitors such as Reebok and Adidas, Puma’s products are cheaper. The price strategy is intended to create competitiveness for the company’s competitors. Puma also employs a premium pricing approach since the company considers its brand to be high-end. As a result, Puma will be more expensive than a rival like Bata. Puma’s two direct competitors are Adidas and Reebok, both of whom have higher prices than Puma. The cost of Puma items appears to be convincing most of the time due to the brand reputation it enjoys.

Promotion 

In India, the company’s advertising approach centres on generating money from cricketing equipment and sponsoring the Ranji Trophy. However, the corporation also spends a lot of money on print advertising and building unique billboards. In addition, there is a more significant emphasis on earnings from football equipment.

The following are some more advertising strategies:

– Commercials on television Customization possibilities on the internet

– Packaging for clothing that is excellent

– Participating in corporate social responsibility activities such as pollution control

Puma’s second marketing technique is sales promotion, which consists of various short-term incentives that stimulate additional product purchases and trials.

The following celebrities have given their support to the puma brand.

– Saina Nehwal, badminton

– Somdev Devramman’s Tennis Equipment

– Gautam Gambhir’s cricket equipment; Shilpa Shetty’s health academy

Puma is also doing an excellent job with its public relations. For example, to promote and maintain its image, the corporation supports prizes.

The prevalence of counterfeit products, the high negotiating power of customers/suppliers, growing labor costs, population movement, and changing lifestyles make it harder for industry participants to stay afloat.

Although Puma actively advertises its goods aimed at athletes in all of its marketing initiatives, most of its customer base is made up of young people aged 20 to 35 who are willing to transfer brands due to the shifting competitive positioning pursued by athletes.

We managed to do a deep analysis of the Marketing Segmentation of Puma. Besides the company’s general information, we get to know the type of customers they enjoy working with—naysayers. And based on the description of the segment, we understood why the company targets them. We found out a lot about Puma’s marketing mix, which impacts its marketing strategy. Thus, we can indeed say that based on its characteristics, Puma deserves the fame and success it has today.

If you enjoy reading posts like this, feel free to check out our Homepage! 

Looking for top-notch client personas crafted exclusively for your business?

Our team at thesocialgrabber.com is here to help!

• Don’t hesitate to reach out to us with any questions you may have.
• Our dedicated team is always eager to assist you with your business requirements and ensure you get the most out of your marketing efforts.
• Ready to get started? Simply leave us your email address and we’ll be in touch as soon as possible to discuss how we can help take your business to the next level.