Puma business plan

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There are a number of new demand trends that have impacted the market and created greater opportunities. These trends include a returning to age old, time proven, natural remedies; more consumers that are looking for more holistic and healing benefits from her skin care products, and today's consumer being more informed and more inquisitive about the benefits of her personal care products. Financial, in order to launch its unique product line Bluespa requires an initial outlay. Sales at Bluespa retail stores are planned to grow rapidly from year 1 through year. During this time frame our wholesale revenues are planned to grow enormously. Bluespa will become profitable in our third year of operation.

This consumer king has an active lifestyle. They are concerned about social and environmental issues. Mind and body wellness are important to them. They belong to a health club; take yoga, pilate's or tai chi lessons. The effects of aging and the minority maintenance of a youthful appearance are a part of their life. Our target customers (vs. End user) for wholesale distribution will be resellers who recognize the needs of this consumer and who she identifies with. We have used the term resellers because they will not be limited to retailers. We will reach the consumer through four distinct reseller channels. Spas and health Clubs, lifestyle retailers, cosmetic Specialty retailers, and boutique department Stores.

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Puma is essay the only brand that has developed a line of fitness apparel fro women. Early sales for them have been exceptional, further highlighting the potential within this category. In the skin care and cosmetics category the competition can be divided into three groups: Commercial-i. Mac, origins, Philosophy, erno laslo and Shesheido; Clinical-i. Kiehl's, Clinique, clarins and. Hauscha; Spa-private label brands associated with spas. Because Bluespa is a combined retail (direct to end user) and wholesale (to the end user through a reseller) strategy our target customer must be broken into two distinct groups, the end user and the reseller. Our targeted end user is between the ages of 24 and. They are female urban professionals with at least some college.

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However, within each category significant brands do exist. Quality and price vary widely within each group. Bluespa will be positioned as a quality brand. Cosmetics market has seen large annual growth rates over the past decade. Last year alone, the market grew by over 1 billion. Clear divisions between traditional categories are becoming blurred and new lines, such as aromatherapy are also emerging, creating new openings for profit. In fitness apparel and accessories there is a tremendous opportunity since the female customer has been grossly overlooked. Most major companies do not produce products focused specifically on oliver the female customer.

Production of accessories will be managed through a contract with a manufacturer of quality sports-related accessories including: bags, hats, totes and socks for the wholesale market. Bluespa will have two product lines, skin care and fitness apparel. Within the skin care line we will offer a wide array of products including eye makeup removers, cleansing creams, facial scrubs and masks, and body lotions. Within the fitness apparel line we will first offer Lycra products such as tights and shorts, plus polyester and cotton tops. Our pricing strategy is to position our products with a shelf price that is in the mid to lower quadrant of high-quality products and brands. We have accomplished this by making careful market comparisons and adjusting our packaging size. We believe our ability to create future product opportunities and growth will only be limited by our imagination and our ability to attract talented people who understand the concept of branding. The market, bluespa will occupy a unique market position. No other brand offers a specialty line that includes skin care, cosmetics, fitness apparel and accessories.

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puma business plan

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Brunner, one additional member of management, three outside directors appointed. Brunner, and two representatives appointed by the major investor(s). Brunner have 65 years worth of combined experience in the retail industry. Both of them have held senior management positions with major companies in this area. The company's main office is located in Portland Oregon.

The leased office space should be essay sufficient for planned staff size growth within the first few years. From year 1 through year 5 we will grow in head count from ten to sixty-five. The majority of this growth will come in store personnel, the rest will be support staff. We believe the plan shows a controlled and conservative ramp up of personnel. Products, skin and body care products will be developed and produced at our contract facilities in France and California. Production of apparel products will be managed through our contract manufacturer of sport-related apparel.

Alexander Chernev is associate professor of marketing at the kellogg School of Management, northwestern University. Bluespa is a company that has created a brand concept consisting of both skin care and athletic apparel utilizing multiple channels of distribution. We are seeking recurring investment to fund the growth of the brand, and position the company for an ipo. The plan that follows explains our market, our value proposition and our market segmentation strategy. The detailed financial plans provide a clear view of our sales and profit forecasts.

These plans show how Bluespa will reach profitability in our third year of operation and generate shareholder return on equity within five years. Mission, to establish Bluespa as an important brand that represents quality in skin care, fitness apparel and accessories. We will accomplish this using high quality manufacturing and research, a creative marketing program, and a comprehensive distribution network using both brick and mortar retail outlets, internet presence, and a consumer catalogue. By utilizing this multi-channel approach we will be able to reach the niche market for quality personal care products rapidly and efficiently. It will allow us to develop Bluespa as the brand for quality skin and body care products within our target market. The company, bluespa is an Oregon corporation. The company is 100 owned by ray and Barbara Brunner, the founders. The board will consist of seven members:.

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The brands that will really suffer from Puma's repositioning are the lifestyle brands that do not have the resources or commitment to sustain their lifestyle positioning in the face of increasing competition. Consider, for example, nestle's Coffee-mate creamer, which recently launched the "express yourself" campaign aimed at repositioning itself from a review functional coffee-creamer to a self-expressive brand. Ironically, puma might even sink its competitive claws into fellow feline, kellogg's Tony the tiger, because despite being in different categories both brands compete to satisfy the same customer need - the need to express one's self. The limits to self-expression, the idea that lifestyle branding puts brands in different categories in direct competition with one another is supported by recent findings published in the journal of Marketing, which provide experimental evidence that the barrage of lifestyle brands can end up satiating. Specifically, the study shows that exposure to a series of self-expressive brands can weaken consumers' future preference for lifestyle brands by making them appear less personally relevant, lest distinct and less desirable. The study is among the first to explore how brands serve as a means of self-expression, revealing the limitations of expressing one's identity through brands. The competitive landscape is rapidly evolving and is no longer constrained by the boundaries of category. Now brands are competing across categories for a share of consumers' identity. Fulfilling individuals' need for self-expression dark is becoming the new frontier of brand competition.

puma business plan

The winners will be the brands that are best positioned to represent popular lifestyles. Ppr's experience in building luxury brands means Puma is poised to become one of the winners in the lifestyle category. Puma's future trajectory might be similar to other brands that have managed to successfully transition from functional to lifestyle positioning. For example, montblanc has repositioned itself from a functionally focused brand that manufactured high-end pens into a lifestyle brand spanning different categories that include leather goods, watches paperless and sunglasses, in addition to its core pen business. In the same vein, lacoste managed to broaden the appeal of its brand from being closely associated with tennis to representing a lifestyle of exclusivity and luxury. The casualties of lifestyle branding, conventional wisdom would argue that a company's switch to lifestyle branding should have the greatest impact on its direct competitors. In Puma's case, this means that its repositioning will have the biggest effect on its direct rivals in the sports gear market, including Adidas and nike. By effectively removing itself from the market in which brands compete on functionality, puma might have made life a bit easier for Adidas and nike.

product category, focusing on lifestyle puts brands from different categories in direct competition with one another. For Puma, this means that it now has to compete not only with its direct rivals but also with lifestyle brands from unrelated categories. These include not only traditional lifestyle brands like gucci, abercrombie fitch and Ralph lauren, but also functional brands like gillette, harley-davidson, Starbucks, Swatch and Apple that have come to play a self-defining role for many consumers. Thus, by switching to lifestyle positioning, puma might be trading traditional in-category competition for even fiercer cross-category competition. Who benefits from lifestyle branding? The increased competition among lifestyle brands does not necessarily mean that lifestyle branding is the wrong strategy. Rather, it means that to succeed a company needs to have core competency and strategic assets in lifestyle branding. As in any market, there will be winners and losers.

So it should come as no surprise that several years later ppr, whose portfolio of luxury brands includes Gucci, yves saint laurent and boucheron, has decided to further align the puma brand with its core competency in lifestyle branding. By focusing on thank lifestyle positioning, is Puma opening itself up to even more competition? Another, and perhaps more important, reason is that Puma is facing mounting competition from its arch rivals Adidas and nike, which have encroached on Puma's market for designer athletic gear with functionally similar products. In light of this, focusing on lifestyle rather than on functional attributes appears to be a logical strategy to sidestep the competition and connect with customers on a more personal level. Can the lifestyle branding strategy backfire? The success of lifestyle brands stems from their appeal to consumers' need for self-expression. For example, brands like gucci, polo and Abercrombie fitch enable consumers to express themselves by identifying with the lifestyles represented by these brands. The problem, however, is that consumers' need for self-expression, like many other needs, can be satiated.

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Puma recently joined the long line of brands - including Gillette, dove, starbucks and Swatch - that have transitioned their positioning from focusing on functional attributes to featuring their products as representing a lifestyle. Puma's emphasis on lifestyle is a major departure from its original concentration on soccer shoes and other high-performance athletic equipment - a positioning solidified by endorsements from superstar athletes the likes of soccer legends Pele and Maradona. Now, instead of continuing its tradition of designing and manufacturing high-end athletic gear, puma is looking to broaden its product line by focusing on leisure pursuits rather plan than professional sports products. More important, puma is shifting away from stressing functional performance toward touting its products as a lifestyle choice. What caused such a dramatic change in Puma's strategy? In 2007, ppr - one of the world's largest luxury goods conglomerates - acquired Puma as a part of its long-term strategy to strengthen its portfolio with higher-growth and higher-margin businesses. Part of the appeal of the acquisition was that ppr's core competency in building and managing luxury brands could help propel Puma's growth.

puma business plan
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