Promotional Activities..
Through the above
strategies, Puma not only solve its financial problem, but also succeed in the
fierce competition.
The
difference between promotional activities and advertising is that sales
promotion offers an incentive to buy whereas advertising offers a reason to
buy. Sales promotion includes tools for consumer promotion, trade promotion,
business and sales-force promotion.
Jochen
Zeitz carried out guerrilla marketing when he took over Puma in 1993, when Puma
was facing biggest financial loss which helped Puma to make a surprising
investment return.
Puma
put limited marketing funds into low cost promotional activities instead of
putting heavy funds in advertising and publicizing as its competitors do. Few
examples of the promotional activities of Puma are presented.
Cardboard shoe made in "Thrift" |
In the
fall of 2002, Puma sponsored a sports shoes design contest named “Thrift”,
participants of which are some avant-grade designers. Designers must use the
old shirts, pants, ties and wallets and other raw materials to design sports
shoes. The company will produce 510 pairs of shoes called “sports shoes with
spirit”. These limited edition products were sought by many collectors. The
price of each pair of shoes was as high as $250, and some were even collected
by the London Art Museum.
Another out of box thinking and creative
promotion campaign of Puma is during the 2002 World Cup in Japan and South
Korea when other sports brands spent millions of money to obtain the official
sponsorship and sign a contract with stars. Puma signed a sponsorship contract
with Jamaica, Tunisia and some other African football teams. On one hand, these
African teams performed excellently and caught much attention from audience and
media. Zeitz said that Jamaica’s and Tunisia’s athletes characters are in
accordance with Puma’s brand image.
Puma Shudoh soccer ball |
Puma has also organized a PR activity entitled “Shudoh”(
means the ways to be the owner of the football). Besides Puma invited famous
Japanese chef Masaharu Morimoto to specifically design a sushi roll for the
World cup, which can be supplied in major cities of the world and regard as the
most common foods during the World cup.
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