Presentation of Puma and PPR groups

Résumé du document

The PPR group was pleased to announce that after the expiry of the additional acceptance period of its voluntary public takeover offer for
Puma it had become the majority shareholder with a 62.1% stake in Puma. 

1962: Creation of the PINAULT company
Acquisition of companies in the same market in order to become number one in this sector on the national scale
1988: Entry in the stock exchange of Paris
1991: Entry in the big-box-store market with the acquisition of Conforma.

Following years: Developing itself in distribution and remote sales on the international scale (acquisition of: Ellos (leader in Scandinavia), Guilbert (Distribution of Office furniture) and 49.9% of Brylan (Remote sales in the United States)

Puma group: Several sub-brands such as: Nuala (Women clothes), 96 Hours (Urban travel Style), Platinum (Premium Luxury Style) and a retro brand called Retro Puma Adaptation of Collections with special Edition makes by designers such as: Puma Starck, Alexander McQueen and so on.

Extraits

[...] Different product: sexy and desirable to change the image. For example: new range of products on the French market called “ pour les athletes de la nuit” with clothes fit for to go out and very fashion, lifestyle and new “green family” of product THE NEW MARKETING MIX ON THE FRENCH MARKET Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png PRODUCT Puma is trying to have different products in each sports to be always different and have always the product which can respond to the demand. [...]

[...] < number > Capture d'écran 2011-05-01 à 11.38 .41.png EXPANSION WITH NON-PUMA BRANDS To further increase the company's presence in the market. Screening the Sportlifestyle market for potential strategic acquisition targets in order to strengthen the core business. Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png MARKET ORGANIZATION Risks Competitors' imitation Loss of customers' interest Excess of differentiation (excessive costs / excessive prices) Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png PRODUCT Wide range of footwear, sportswear, sports goods, and fashion accessories. Black label include collaboration with renowned designers such as Alexander McQuenn, Yasuhiro Mihara and Rossi. [...]

[...] Open mind of the brand: New Brand image AISSA MAÏGA, French actress born in DAKAR (SENEGAL). Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png PRESENTATION OF PUMA AND PPR PUMA PUMA Group: Several sub-brands such as: NUALA (Women clothes) HOURS (Urban travel Style), PLATINIUM (Premium Luxury Style) and a retro brand called RETRO PUMA Adaptation of Collections with special Edition makes by designers such as: PUMA Starck, Alexander MCQUEEN and MIHARA YASUHIRA LIMITED PUMA EDITION. 2007: PPR enter in the capital of PUMA mqueen_puma.jpegstarck.jpegUntitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png PUBLIC TAKEOVER BID : STRATEGIC TENDENCIES Clothing and sports equipment sector Strong growth and high internationalization Since 90's: The brand image reflects by the product has became one of the first factor to sell There is a big gap between leaders and others competitors A solution: to develop points of distribution Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png PUBLIC TAKEOVER BID : STRATEGIC TENDENCIES PPR has become the majority shareholder with a stake in Puma A price per share which is 330€ Puma is today evaluated at 5.3 euros billions Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png ADVANTAGES WHICH PRESENTS PUMA FOR PPR A potential growth An evolution in a dynamic sector Since 10 years, its turnovers growth has increased by 20% on average In 5 years, Puma's net profit has been multiply by 14 In 2006, its profitability rose up to It's the third worldwide brand in this sector → Good points to have a fresh new start with Puma Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png ADVANTAGES WHICH PRESENTS PUMA FOR PPR PPR has two options To develop a cluster around clothing and sport equipment + a synergy with luxury brands To reinforce Puma's distribution network Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png SYNERGIES WITH LUXURY 2006, Puma had a collaboration with Alexander Mc Queen → Association between sport world and fashion world alexander-mcqueen-puma-high.jpgmqueen_puma.jpgUntitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png TODAY WITH THIS BUYOUT PPR wants to do of Puma an aside strategic group in comparison with its competitors A price policy which is rising Sales with an high addes value Direct sales An international market → Puma's competitors keep distant → PPR and Puma surprise the market Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png TODAY WITH THIS BUYOUT PPR wants to give to puma a new positioning, a new value into consumer's mind: it sticks to the sport's world but mixing it with a new position in the luxury world New luxury orientation : associating puma with others brands, doing new lines of creation Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png STRENGTHENING OF DISTRIBUTION NETWORK WITH SYNERGIES WITH THE LUXURY DIVISION Retails stores represents only 15% of general sales of Puma and could be if it was more extended: it would be more profitable and would rise up profit margins. [...]

[...] Play Better Capture d'écran 2011-05-01 à 13.54 .20.png THE NEW MARKETING MIX ON THE FRENCH MARKET Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png CONCLUSION Good things for PPR and Puma Good prospect for Puma in terms of market share Show the power of PPR in terms of money and marketing Strengthening the sport/relaxation pole. New OPA on Volcom 2 days ago. THE NEW MARKETING MIX ON THE FRENCH MARKET Untitled-2.JPGCapture d'écran 2011-05-01 à 11.38 .41.png CONCLUSION Even if because of this OPA, PPR has invested heaps of money they may have a very good R.O.I. thanks to the strategy set up by the group. [...]

[...] “Going global” is one of the means to achieve this. Today, it's hard to imagine any corporation not being multinational in one way or the the other, or having at least some parts of its supply chain stretched around some parts of the globe. In his paper, Ghoshal provided a framework for selecting appropriate strategies when going global, and risk management was one of the strategies he looked at. Competitive advantage – means and ends In a multinational or global setting, competitive advantage can be gained from three sources (means): Exploiting national differences in the countries the company is involved in, Benefiting from economies of scale, and Exploiting synergies from economies of scope, created by the diversification of its activities. [...]