Advertising Campaign for Athletic Footwear Company
Advertising, Campaign, Athletic Footwear, Company
PUMA is among the leading companies across the globe in developing sports brands, developing, and marketing footwear, and accessories. For over six decades, PUMA has continued to develop some of the fast product designs that have continued to be used by the fastest athletes on the planet. PUMA has continued to have different collaborations with some of the most prominent celebrities in the world, such as Rihanna together with her Fenty collection. PUMA offers different products that are based on the sports lifestyle (Wilson, Baack & Till, 2015).
The sports categories that PUMA specializes in include Motorsport Running, Golf and many more categories. There are a variety of PUMA products offered in the company’s online store, and a collection of such products include clothing, accessories, and shoes.
PUMA has continued to sponsor some of the well-known football clubs including Arsenal FC, Leicester City FC and many more football clubs. PUMA still sponsors different national teams including Italy, Uruguay, Chile, and several other national teams. There are as well other Golf champions who have continued to be sponsored by PUMA including Rickie Fowler and Lexi Thompson. PUMA has also managed to obtain licensed gear from different motorsport collections such as Red Bull Racing and BMW Motorsport.
PUMA has continued to distribute its products to approximately more than 120 countries having employed over 10,000 employees across the globe. PUMA continues to use modern marketing techniques which have made the company record a consistent growth for many years.
There are no direct intentions of the company becoming number one in the industry or even being the leader in supplying sports footwear in the world. PUMA is satisfied with the current position as long as it continues to satisfy its current customers. Some of the key factors that have contributed to the company satisfying its customers which includes providing customer-friendly products and eco-friendly products.
The mission of the company is to become one of the most desirable Sports Lifestyle Company. PUMA intends to distribute some of the best products across the globe. PUMA intends to evolve some of its most important values which will help in improving the effectiveness of its products. PUMA intends to develop products that evoke achievement since it has been associated with some of the legendary players.
Most of such legendary players are celebrated in their fields across the globe (Lee & Hong, 2016). The marketplace in the world has faced a lot of dynamism. PUMA needs to have higher levels of openness if it intends to adopt to these dynamisms within the marketplace.
The situational analysis will consist of both the internal and external factors of PUMA Company will use in figuring out its capacities, the business environment, and its potential customers, which will help the company in making its future advertisement decisions. There are some typical methods that the company will use in completing the situational analysis, and the first method will be the SWOT analysis and the statement of the advertising problem that PUMA Company is facing.
Strengths: The first strength that PUMA has is that it has a strong financial position. The financial position has continued to grow for many decades. That makes the company become more diversified compared to its competitors. Another strength that PUMA has is the quality in its brand. PUMA uses the latest technology when developing its products.
The company has been in the business of manufacturing the footwear for many years hence meaning it has managed to develop different better strategies compared to the competitors (Phadermrod et al., 2019). Another strength is that the top management in PUMA is marketing oriented, and the majority of the people working for the company have a marketing background. This has strengthened the company in becoming more of marketing-driven rather than being product-driven. The other strength is that PUMA is a global brand.
Weaknesses: One of the key weaknesses that PUMA is experiencing is that it does not promote that much. That is simply to mean that the company uses lesser promotional activities. Not much advertisement is being done by PUMA hence should resolve in doing so. Although the company has a diversified number of products, the other weakness is that the company only depends on the footwear market.
This puts the company at a higher risk of closing up in case the market erodes. The other weakness that is affecting PUMA is that the retail sector which the company operates in is much sensitive on prices. Nevertheless, the majority of the income derived in the retail sector is from selling into retailers. In most cases, retailers provide similar experiences to consumers.
Opportunities: The key opportunity that PUMA is experiencing is that its brand is fiercely defended where its owners have a belief that its brand is not a fashion brand. Another opportunity is that the business can be developed internationally hence having international recognition.
The company may have better recognition in both the Chinese and Indian markets that have a new generation of consumers. The other opportunity is that there are different events that can serve as the marketing platforms for PUMA, which include the soccer world cup and the Olympics.
Threats: The first threat affecting PUMA is that it may be challenging for the company to penetrate into a new market because of the existing competitors. Such an issue may cost the company a lot of money and put the company to a lot of pressure during the development of marketing research.
The weakening markets may as well serve as a threat to the company since the product life cycle will be short, which plays a significant role in determining the product line of a company. The other threat that PUMA faces is that it is exposed to the international nature of trade. That results in the instability of its costs since it sells its products to different countries that use different currencies. That means the company may sometimes manufacture and sell its products at a loss.
PUMA fails to reposition as the World’s Fastest Sports Brand and optimize the distribution quality through failing to analyze the basic marketplace requirements.
For the youths who wish to succeed in the sports world, PUMA products provide them with the ultimate reason to smile.
The marketing strategy that is used by PUMA includes different strategic priorities. One of the priorities is to reposition the company as the World’s Fastest Sports Brand. The other priority is to improve the product engine and to optimize the quality of its distribution. Another priority is to increase the speed within the organization and finally to renew the IT infrastructure. The best advertising strategy that the business will use is measuring and tracking the advertising.
The majority of the businesses have no idea whether their advertising campaigns are working as planned. Some of the online platforms such as Facebook will provide the business with extensive stats that are related to the advertisement campaign and will as well help the business in identifying what is working and what is not working (El Khoury & Farah, 2018).
That does not mean that the company will not need to test and experiment since it can take time to create an advertising campaign that will resonate with the target customers. Although that does not mean that the company should make faster decisions on what they should try doing next time.
PUMA has managed to define its market segments in various ways. One of the strategies that PUMA has managed to carve up its market is through identifying the preference segments, including the PUMA shoes and bags. The other way is through the identification of the preferences that are already existing where the customers are on demand of the same products, including the PUMA t-shirt.
The company segments its market through the diffused preferences where the customers are in demand for different products, including the PUMA women clothes. The clustered preferences are the other way that PUMA in segmenting its market like in the puma sports item.
Tracking is important for the advertisement campaign. Tracking will help in measuring the satisfaction of the customers, the identity of the brand, and the opinions of the customers towards the new products in the market. When the company is not tracking, then it means that it is not advertising.
Once the company does the advertisement on a particular page or website, and then it has to analyze the targeted customers’ visits on the page (Pfiffelmann &Soulez, 2018). Nevertheless, it can be challenging for the business to obtain this information when it is using offline campaigns such as newspaper advertisements, magazine advertisements, and both radio and television commercials.
It does not matter whether the product is new to the market or not, and tracking usually shows the effectiveness of the advertisement efforts. It helps in showing the advertisement efforts and where the company is spending its advertisement budget.
The advertisement strategy statement aims at persuading the customers to buy PUMA products and will be used as a framework for reviewing the effectiveness of the advertisement campaign. The advertisement campaign will target the youths that love sports whose age range between 18 years to 26 years. The advertisement campaign will help to inspire the youths is purchasing the company’s products. The main objective of the advertisement campaign is to ensure that the usage of the product increases by 10%.
Love for sports is the main reason why the advertisement campaign will be targeting the youths between the ages of 18 to 26 years. The key customer benefit for using PUMA’s products is that they will be filled with a sense of pride and reward.
An advertising campaign that is well executed will assist the business in understanding how the customers perceive the products, the audience the company will be trying to reach to, the kind of deliverables the company will be trying to look for, and the voice that the company will use while passing the message to effectively reach out to the customers.
PUMA Company will promise to offer all the features that the customers need while using the product, especially when it is being used in the sports. The company promises to offer features that will be easy for the customers to understand and easy for usage for anyone that lies within the age group that is being targeted by the company.
Despite the various choices that one might be having on the different means of advertisements that they might use, all means of advertisement share some mutual goals, which include influencing the customer and either converting them into customers or leads.
When developing an advertisement campaign that can be impactful, irrespective of the platform, the advertisers usually have a method to their madness that usually begins with research and strategy (Kim & Dekker, 2018). The method that the company uses should be cost-effective and makes sense with the product that the company is advertising.
The paid search advertising plan will include bidding on the keywords where the keywords that are related to the particular keywords will be placed on top of the search engine results page (SERP). In this type of advertising, PUMA Company will pay once their advertisement has been clicked hence providing the alter-ego pay-per-click (PPC).
For example, for one to differentiate between paid and organic search, one can search for a small label that us next to the link that indicates that the result is an advertisement. Paid search is usually efficient, targeted, simple, measurable, and cost-efficient.
Social media advertising will serve the advertisement campaign via different social media platforms. Social media will give the business a quick ROI whenever it advertises through it since everything on the platform is done in real-time (Chapelle, Manavoglu & Rosales, 2015).
Social media will allow the company with a little more freedom so that it can release the personality of the brand since social media tends to be a more relaxed platform when compared to the paid search advertisement.
It is important to choose the platform wisely when advertising through the social media understanding that not all the audience uses all the platforms. For instance, the audience in LinkedIn tends to differ with the ones on Instagram. In the case of the company, since the product is new, paying for the advertisements will assist in reaching potential customers.
Having $10,000,000 for the national campaign, it is essential to divide it respectively to each advertising method. The paid research advertising would cost the company more expenses compared to any other form of advertising that is readily available for the business. The paid research advertising would cost the company approximately $3,000,000.
The more the company spends on this advertising method, the more it will be effective. There are so many competing companies that are willing to pay more on this advertising method. In order for the company to remain competitive, it must, therefore, adapt to the strategy of spending more on the strategy.
Doing advertisement on some social media platforms requires the company to pay some charges. It must, therefore, focus on the platforms that are most used by the people in the age group of 18 years to 26 years.
Such platforms include Instagram, which will be the most appropriate in targeting the age group, and the amount of money that the company can spend on the method of advertising is approximately $2,000,000. Another social media platform that the company can spend some amount on is Facebook, where it can spend approximately $1,000,000 to ensure that the information reaches the target audience effectively.
Display advertising is another technique that the company can use to ensure that it addresses the target audience. The company will have to invest in displaying its product on YouTube, where the majority of the targeted audience has proved to be frequently visiting. The company can spend approximately $2,000,000 on this media of advertisement.
The last form of advertisement is outdoor advertising that includes the formation of the billboards. The amount of money that the company is expected to spend on outdoor advertising is approximately $2,000,000. Investment in those advertisement mediums will help in the success of the advertising campaign.
The promotions that the company will participate in will ensure that it has created the brand identity and still ensuring there is a tie to the potential customers. The sponsorship is one of the best means of promotion that the company will use, and it will include supplying resources that can be in the form of money to a particular event or group for an exchange of advertising.
For example, the company can even decide to fund football teams or some events with an exchange of having its logo prominently visible (Lundh et al., 2017). The sponsorship usually places the company in a better position of buying publicity and making sure that the public pays close attention to the new product.
Personal selling can be termed to be the oldest form of promotion. This form of promotion will take place when the representatives of the company engage with the customers face to face or even though the telephone so that they can persuade them to place an order.
The main advantage of using this form of promotion is that the message is always custom-tailored to the prospective customer (Deeter-Schmelz, 2019). If the customer does not understand a particular concept on the product, the sales representatives can use another approach in addressing the needs of the customer. This cannot be the best means of promotion since some sales representatives can be aggressive or sometimes become more annoying.
The company will participate in the advertisement campaign since the company wishes to find a suitable way and time that it can distribute the PUMA products to the youths aging between the age of 18 years to 26 years.
The advertisement campaign will help the company is comparing itself with the rest of the companies that are in the same industry and who are the main competitors (Blake, Nosko & Tadelis, 2015). Due to the high demand of the PUMA products by the youths, it was then important to ensure that a good advertisement campaign has been developed.
Media Length Cost Research Advertising October-February $3,000,000 October-February $2,000,000 August-September $1,000,000 YouTube September-December $2,000,000 Outdoor Advertisement September- December $2,000,000 Plan Budget $10,000,000
Research Advertisement: Specialized form of advertisement that will be used in improving the efficiency of advertisement.
Instagram: Figures include the data that will be used and the agents that will be doing the postings on behalf of the company.
Facebook: The figures include the payments that will be made on the agents who will spend much time persuading the customers.
YouTube: The figures include the amount that will be paid to the different companies that can advertise on behalf of PUMA Company.
Outdoor Advertisement: The figures include the shows that the company will perform in the process of advertising the PUMA products.
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