Effect of brand image on sales essay paper

Puma

Company Background

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Puma is known as the major German international corporation that designs and creates casual footwear that is athletic for all ages. They also create tons of clothes for both men and women. The corporation is stationed in Herzogenaurach, Bavaria. The business was established in 1924 by Adolf and Rudolf Dassler. The affiliation among the two brothers failed at one point and time while doing business together. This ended when the two made the decision to split in 1948, creating two separate units, Puma and Adidas. Each of the enterprises are presently centered in Herzogenaurach, Germany.

The most normally created Puma brands are Puma shoes, which are athletic in design. This is because due to the fact that the first puma’s products were shoes. For more details, Puma first football sneaker was produced in 1948 and it was worn in the first football match after the war by the Herbert Burdenski; the scorer who scored the first goal after the war (Puma, 2016). The company is able to managed 40% of Puma incomes from footwear. This makes it the most marketing Puma merchandise in the world (Puma, 2013). Puma is known for holding various kinds of sneakers. They create them for many types of sports for instance, running shoes, cricket shoes and football shoes. Some of the geographic place that Puma has marketed in are Australia, Singapore, Puerto Rico Cuba and Columbia.

Country and Market Analysis

Puma will expand in Germany because that is where the show was produced, so there is a huge market for the brand there. Puma has become one of Germany’s major creator of athletic shoes. Puma is a public limited business, which is registered in the Frankfurt Stock Exchange (Ataman, 2003). In Germany alone, it employs over 9,000 individuals and deals out its shoes in beyond 120 nations all over the world, producing above $2.5 million in income every year.

In Germany, actually, Puma as a brand which is dedicated to provide to the sports world by supporting sustainability, creativity and peace. Plus, staying true to its ethics has made the corporation a national force. Nevertheless, this is not the only reason why the company has recorded such an enormous achievement in Germany. Its excellent marketing strategy has seen to it that it continues to be a global leader in athletic shoe making. Separately from shoes it has also forayed into developing of sports gear, wristwatches and other fixtures. In Germany, part of the marketing involves sportsmen, plus men and women who like athletic active attire with a spray of uniqueness in their clothing. The company also markets to urban young upper middle class and aristocratic Men and Women in Germany. Puma is a global product with originality, energy and style in their attire at a very reasonable worth.

Puma has utilized expertise in design knowledge with key competencies in all areas of marketing and design. For instance, with the purchasing of Puma by PPR group, it has allowed puma to use PPR as bigger base design team. The strategy behind this is to produces high quality of desirable brands that will be attractive to the clients. In the end, this information and expertise makes puma a force to be reckon with while at the same time, setting itself apart from its main opponents. Puma has been able to meet the needs of its customer but evaluating and listening to their desires. For instance, change in customers taste and style is something that Puma keeps up with and monitors. For instance, there was a high demand for fashion apparel that was oriented in the direction of high value and lifestyle brands. This change in customer’s demand swayed pumas to change its brand image in order to meet the customers increasing demand.

Demographic modification in soccer marketplace for example, was a high demand to respond to needs of both children playing on and nationals soccer team. This also, spilled over into playing expert at global level that requisite high quality product. However, in order for Puma to tap in to these demographic areas in Germany, puma needs to progress its brand image.

Marketing mix & Staffing policy

As mentioned before, Puma has a great range of sports goods, footwear, and sportswear and fashion ornaments. The company is likewise the key producer of enthusiast driving shoes and race outfits. Also, the corporation is the only yield of NASCAR and Formula 1. Furthermore, to that, the corporation has alliance with Ferrari and BMW.

Through its association with well-known designers for example Yasuhiro Milharaand, and Alexander McQueen, Puma has proven itself as a dependable product that can be depended upon to propose quality merchandises. Precisely, the business creates the following brands:

Athletic shoes

Custom made shoes

Clothes

Fancy shoes

T shirts

The HRM staffing policy the company should use what is called the ethnocentric policy. This approach to staffing labels home nation nationals as top standing workers in worldwide operations. Such as, executive positions are detailed to Germans in an office of a German company located in another nation. The key advantage of this staffing policy method is that it permits the organization to make sure that the individuals in the top positions are experienced in the industry of the trade.

Market Entry Strategy

Puma’s market Entry Strategy encompasses six entry modes such as the following.

Exporting

Licensing

Management contracting

Joint venture FDI

Acquisition FDI

Greenfield FDI

Exporting is considered to be the easiest way to meet needs of foreign marketplace. Licensing is an entry mode for the company because it can be the process of transferring technology from one company to another. Management contracting is good because it exists when a local stockholder in a foreign marketplace offers the capital for a better business. Joint venture FDI is when a business joins another non-national business for shared notice. Acquisition FDI is well-defined as having a majority of interest in another corporation. Greenfield FDI has something do with the investment in a profitable office, manufacturing plant, delivery facility or other physical assembly in a nation where no corporate facilities formerly occurred.

The best entry modes to use for the company are exports because they are the easiest way to meet needs of foreign marketplace and it has slight effect on the normal processes of the company. Licensing can be the procedure of transferring technology from one corporation to the other or from home nation to the host nation.

Strategy for international business operations

One strategy is to go through the problematic task of redefining their retail business and close others that weren’t money-making. Another strategy is to redefine the business style to advance and optimize procedures and organizational system. Strengthen the brand of their product internationally is something that will be successfully for the company.

References

Ataman, B. (2003). “A note on the effect of brand image on sales.” Journal of Product, 12(4), 237-250.

Puma. (2016, April 27). Retrieved from http://us.puma.com/en_US/home?locale=en_US&mktID=PL:Brand%20Marketing:Puma.com-CatchAllPage:United%20states-en&plinkID=Brand


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