Puma is a German company, founded in 1948 by Rudolf Dassler. It currently operates on a multinational level. However, Puma was born when Dassler and his brother began their own footwear company in 1924. Puma has maintained growth since the beginning and is now among one of the fastest-growing companies in the world. In just 67 years, Puma has employed 12000 workforces that span across the globe, reaching more than 45 nations. What makes Puma a marketing powerhouse and how has the company grown so quickly? Great business marketing! Here’s a look at how.
Puma’s 3 Segmentation strategies
To increase profitability, a business should find a target market or maybe multiple target markets. Imagine how difficult it is to sell diapers or baby clothes when advertising is tailored to appeal to athletes. It would make much more sense to appeal to parents, right? It is also beneficial to cater to the needs of this target market. If the target market for an automobile company is buying more pickup trucks, it wouldn’t make much sense to make and advertise sedans. Instead, the company would be better off making and advertising trucks. Segmentation helps achieve this reciprocity between the target market(s) and the business. Think of it as each ‘segment’ of the market getting its own, unique, product and marketing strategy. Puma uses three different segmentation strategies.
- Demographic: This type of segmentation splits up the population according to age, stages in life, gender, income, religion, race, and nationality. Each of these creates a niche group for targeting.
- Geographic: Geographic segmentation is fairly straightforward. The population is split according to location, language used, and ideologies that coincide with different people groups across the globe.
- Psychographic: This form of segmentation takes into account lifestyle and activities, interests, and psychological aspects of the consumer and their purchasing habits and behaviors.
Puma utilizes these three forms of segmentation to create target markets in an otherwise overwhelming population of consumers. Segmentation is, however, only the first step in Puma’s business marketing plan. After segmentation, the next step in marketing is targeting.
Different groups of people buy products in many different ways and for many different reasons. Therefore, advertising and product development should evolve alongside each group. After noticing trends or patterns in market ‘segments’, tailor advertisements and product development to each group respectively. Simplistically; Puma sells more soccer cleats to certain ‘segments’. Therefore, those particular segments will see more advertisements for soccer cleats. Also, you must keep the segments informed of new cleats and soccer-related products.
Positioning and Recognition
‘Positioning’ refers to the place that a brand or company holds in the consumer’s mind. When you think of a quality computer, what brand comes to mind? How about a cheap and affordable computer? Quality products hold a reputation in the consumer’s mind, and this takes specialized marketing and then, ultimately, a quality product to back it. Puma has fought for and earned its reputation as a provider of quality athletic wear. This ‘brand positioning’ is the goal of rigorous marketing strategies.
Creating Successful Business Marketing Like Big Brands Such as Puma
These 5 elements set Puma apart from their slower-growing competitors. They can be achieved by any business. These strategies can also be applied to small business marketing schemes. Though flooded and quite overwhelming, the internet can be a great place to learn about a product market and employ the right targeting practice. To learn more about how to target the market for your small (or large) business, click here.