Puma Nontraditional Retail Initiative

FASM 415 PROFESSOR CANEPA Brian Edwards - Erin Kelly - Kayla Willis Isabella Yidi - Annette Zuozo

TABLE OF CONTENTS COMPANY OVERVIEW PERCEPTUAL MAP PLACEMENT COMMUNICATION & PROMOTIONS OMNI-CHANNEL AUDIT NEW INITIATIVE MARKET ANALYSIS VISUALS TARGET CONSUMERS COMMUNICATION PLAN FINANCIAL PLAN CONCLUSION

COMPANY OVERVIEW

-HISTORYFounded in 1948 by brothers, Rudolf and Adolf Dassler, in Herzogenaurach, Germany.

Launched football shoe company that turned into an international breakthrough for the two brothers. Today, it is one of the world’s leading sports brands, designing, developing, selling, and marketing footwear, apparel, and accessories.

-MISSION STATEMENT“ To be the Fastest Sports Brand in ” the world.

-FUTURE GROWTH PLANSTo continue the brand’s repositioning strategy by: •Improving womens product offerings •Expansion of online website and product offerings •Optimize IT infrastructure •Platforms to improve the design, development and planning processes •Continue to foster strong retail partnerships

perceptual map

HIGH ACCESSIBILITY

HIGH PRICE

LOW PRICE

LOW ACCESSIBILITY

PLACEMENT

-sales by channel79% WHOLESALE

15% RETAIL

6% online

-TOTAL SALES-

COMMUNICATION & PROMOTIONS

-TOTAL REVENUE-

3.39 Billion euros 2015 revenue

-SPEND FIGURES-

43% marketing costs

-ADVERTISING ACTIVITIES-

-AMBASSADORSUsain Bolt Kylie Jenner

-COLLABORATIONS“Rihanna took on an important role in our second Forever Faster brand campaign in 2015.

In 2016 with the introduction of a complete women’s collection of shoes and textiles, she will be a vital part of improving our product offering for women in our Performance and Sportstyle categories.”

OMNI-CHANNEL AUDIT

-online traffic5.20M

TOTAL VISITS

03:16

TIME ON SITE

TRAFFIC BY COUNTRIES:

UNITED STATES 26.20% RUSSIA 8.47% FRANCE 5.95%

FACEBOOK ANALYSIS Brings in 41.76% of traffic to online site.

15K

FOLLOWERS

1-2/week POSTS

100-200 likes, 5 comments

AVG LIKES/COMMENTS

INSTAGRAM ANALYSIS 2.1 M

FOLLOWERS

3-4/week POSTS

20K-40K likes, 1K comments AVG LIKES/COMMENTS

TWITTER ANALYSIS Brings in 13.55% of traffic to online site.

1.41 M

FOLLOWERS

4-5/week POSTS

300-600 likes, 50 retweets

AVG LIKES/RETWEETS

YOUTUBE ANALYSIS Brings in 9.76% of traffic to online site.

15K

FOLLOWERS

2/week POSTS

600K views

AVERAGE VIEWS

-IN-STORE EXPERIENCECustomers want:

•a more personalized experience •for the brand to be more interactive and engaging •quicker service •offer more products •to push their digital presence

NEW INITIATIVE

-PROPOSED INITIATIVEAfter researching the market for brands that are in need of new strategic initiatives, we chose PUMA, a company that is in the midst of a brand repositioning. Our new strategy will take into consideration their consumer’s needs of a more interactive and attractive experience when shopping in their stores. By incorporating more technology, such as a virtual reality experience it will hopefully create consumer engagement for the brand.

This will allow PUMA to stay true to their objective of being a brand that is forever faster.

-TECHNOLOGYVirtual Reality LED Interactive Screens

-TECHNOLOGY suppliers-

•Started in 2013 •Specializes in Cinematic Virtual Reality •Built the first professional grade stereographic cinematic VR camera, called Jaunt ONE. •Previous clients: InStyle Magazine, Rebecca Minkoff, The North Face, Disney, Elle Magazine, ABC News, and more.

•MultiTaction® iWall Lobby Solution •An interactive video wall targeted to public spaces.

•12 panel horizontal display in 3 rows of 4.

•Previous Clients: Audi, IBM, Google, Bloomberg, T-Mobile, BeautyTouch, and more.

-OPERATIONAL IMPLEMENTATIONS•Puma R&D- (7 months) Month 1-Research into gaps in the market

Month 2-Target market, customer Month 3-Technology we want to implement

Month 4-Financial arrangement Month 5-Research competition using technology Month 6-Sourcing companies who specialize in VR Month 7-Prototyping •Sourcing VR companies-Jaunt & MultiTaction (3 weeks) •Development of Technology Collaboration (4 months)

6 weeks: Pre Production-Technology Development

1 month: Production-filming footage

6 weeks: Post Production-editing •Design & Development of showroom-Colkitt & Co (2 months)

1 month: Real Estate Research

1 month: Store Design and Interior Renders •Hiring Process (1 month) •Marketing Campaign (1 month) Pre launch Launch Post launch •Showroom Setup (2 weeks) •Arranging technology into store (2 weeks)

TOTAL: 17 months 3 weeks

-OPERATIONAL IMPLEMENTATIONSMonths

PUMA R&D- 7 months -Research into gaps in the market -Target market, Customer -Technology we want to implement -Financial arrangements -Research competition using technology -Sourcing companies who specialize in VR -Prototyping

Sourcing VR companies: Jaunt & MultiTaction- 3 weeks Development of Technology Collaboration- 4 months -Pre Production-Technology Development- 6 weeks -Production-Film Footage- 1 month -Post Production-Editing- 8 weeks

Design & Development of Showroom-Colkitt & Co- 2 months -Real Estate Research- 1 month -Store Design and Interior Renders- 1 month

Hiring Process- 1 month Marketing Campaign- 1 month -Pre-launch -Launch -Post-launch

Showroom Setup- 2 weeks Arranging Technology Into Store- 2 weeks

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market ANALYSIS

-overall MARKET SIZE-

-LOCATION131 Spring st. soho, ny

-location analysisAn established neighborhood for international fashion and luxury brands. More and more retailers are moving downtown to join in the success of the booming district. Real estate in the Soho neighborhood has grown to a new high hitting $556/sq ft in 2016. A lot of business can be derived from the foot traffic from the popular subway stops nearby. The average population in the Soho district accumulates to about 51,240 residents. The median income of residents in the Soho district under the age of 25 equals to $30,088, between the ages of 25-44 equals to $80,342. Also, the hight rate of international visitors brings in many consumers to the area. It was accounted that 12.2 million international visitors traveled to the Soho district in 2015. Many come to the area for leisurely activities; retail shopping being the largest consumption. It was reported in 2015 that New York City’s fashion industry employs over 180,000 people, accounting for 6% of the city’s workforce and generating $10.9 billion in total wages, with tax revenues of $2 billion.

-Retailers USING VRIKEA VR Experience

Lowe’s Holoroom

Samsung Gear VR

-FUTURE COMPETITIONNIKE Nike-Neymar VR: Nike virtual reality experience, introduced, lets people step into none other than Neymar's shoes. You can feel what it's like to have defenders flying toward your feet, dribble the ball and, of course, score a goal -- all things the Brazil and Barcelona player is familiar with. To get the full effect in VR, you'll need to have a Google Cardboard headset.

ADIDAS Adidas turns sneaker into augmented reality device: Adidas has created a virtual 3-D world that can be accessed using an upcoming line of five men’s sneakers All users have to do is go to the Adidas site and hold up their sneaker, which has a code embedded in its tongue, in front of their computer webcam. A virtual world then pops out in front of them and they can navigate it using their sneaker as a controller.

-long-term success•Creates a fully immersive shopping experience •Competitive advantage in the activewear market •Attract millennials •Part of the re-branding initiative

VISUALS

target consumers

-demographic segmentation-

Male & Female Ages 18-40 Income: $3K-80K Education: High School-College Graduate

-psychographic segmentation•Active lifestyle •Tech savvy •Influenced by social media

-celebrities & pop culture •Trend driven •Fast-paced lifestyle •Quality over quantity

Natalia Oliveira Age: 24 Location: Sao Paulo, Brazil Career: Lifestyle Blogger Yearly Income: $55K Marital Status: Single Leisure Activities: Staying active, photography, traveling

JORDAN LANE Age: 32 Location: London, England Career: Senior Designer at Vice News Yearly Income: 80k Marital Status: Married Leisure Activities: Plays intramural soccer, gallery events, traveling, Equinox gym

ANDREA RUIZ Age: 19 Location: New York City Career: Student at Parsons majoring in Graphic Design, Part-Time Sales Associate at Nordstrom Yearly Income: $3,000 (Supported by parents) Marital Status: Single Leisure Activities: SoulCycle, Crossfit, shopping, hanging out with friends

COMMUNICATION PLAN

For our marketing campaign, we aimed to attract consumers by incorporating the headline “This Could Be You” in our advertisements. The advertisements will be shown throughout all social media platforms, billboards, and subway stops in NYC. The Puma Play campaign is featured in both the store design and as a trending hashtag to generate awareness of the implementation of virtual reality. Posting different times pre launch and post launch will also keep Puma’s followers intrigued into the new initiative.

-COMMUNICATION TIMELINE-

Q1 JUN

SOCIAL MEDIA Pre-Launch Launch Post-Launch

KEY DATES U.S Holidays

MEASURING IMPACT Customer Follow-Up

JUL

Q2 AUG

SEP

OCT

Q3 NOV

DEC

JAN

Q4 FEB

MAR

APR

MAY

-COMMUNICATION OBJECTIVES1. STRATEGY OVERVIEW We plan to offer a more interactive experience for our consumers by utilizing Virtual Reality headsets and videos with the help of LED screen displays in the retail store to hopefully promote brand awareness and new customer acquisitions for the Puma company. With our new strategic initiative, we hope to reach a new younger, more techsavvy target consumer on everyday social platforms.

2. COMMUNICATION PLATFORM Puma plans on reaching several of their consumers and more specifically their target market by advertising on social media platforms with the most traffic such as their Instagram and Facebook accounts. Pre-Launch we will be raising awareness to the campaign by posting 2-3 times a day. On our launch day Puma will be hosting a livestream for Facebook viewers as well as behind the scenes interaction with our Virtual Reality experience. Post-Launch we will still be raising awareness by posting to the accounts every other day.

3. MESSAGING •Bring awareness to the store opening (live stream) •Holiday gift guides •Entice consumers with promotional videos •Sneak peek of VR videos •Photos of interactive screen displays •Posts of events throughout the year •Photos of new showroom

•Promotional sales •Customer re-posts wearing merchandise •Entice consumers with promotional videos •Sneak peek of VR videos •Photos of interactive screen displays •Posts of events throughout the year •Photos of new showroom •Promoting new app updates

•Entice consumers with promotional videos •Photos of new Rihanna collection (other merchandise) arriving in store •GIFS of merchandise & styling •Customer re-posts wearing merchandise •Entice consumers with promotional videos •Sneak peek of VR videos •Ambassadors promoting launch event •Photos of interactive screen displays •Posts of events throughout the year •Photos of new showroom •Behind-the-scenes photoshoots

4. KEY DATES 1st week of September 2017- NYC Fashion Week July 2017- Preseason of Premiere Soccer League July 4, 2017- Fourth of July Events September 9, 2017- Launch and opening of Spring St Showroom October 9, 2017- Columbus Day Sales November 24, 2017- Black Friday Sales December 2017-January 2018- Holiday season January 2017- MLK Day February 2017- President’s Day May 2017- Memorial Day

5. MEASURE THE IMPACT After the launch of “Puma Play” campaign, the company will be able to measure their communication efforts to bring in new customers and social media followers. By utilizing Google analytics and measuring website traffic volume they will be able to see a positive spike in their platforms. Like other major brands like Burberry and Sephora, Puma will also see an increase in profits after launching their new campaign.

INTERACTIVE WALL DISPLAY RENDER

promotional video

FINANCIAL PLAN

TOTAL $2,867,100.00

CONCLUSION

in conclusion...

Our strategic initiative is aimed to maintain Puma’s mission of being “forever faster” by implementing the latest technology of virtual reality. Through the virtual reality, consumers will be immersed into Puma’s lifestyle with options to be anywhere from the Arsenal Stadium in London, to being backstage at the Fenty Puma photoshoots. Looking into the future, this initiative will give Puma the opportunity to be on the same competitive platform as other successful activewear brands, such as Nike and Adidas.

PRICING QUOTES

APPENDIX

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