““SportingSporting Goods Goods””

Detailed FindingsDetailed Findings

Consumers PerceptionsConsumers Perceptions Defining Sporting GoodsDefining Sporting Goods Current perceptions of companyCurrent perceptions of company Where consumers buy sporting goodsWhere consumers buy sporting goods

Consumers HabitsConsumers Habits Frequency of sporting goods purchaseFrequency of sporting goods purchase Importance of piece when purchasing sporting goodsImportance of piece when purchasing sporting goods Importance of interactivity in a sporting goods departmentsImportance of interactivity in a sporting goods departments Age differences in participation in sports and outdoor activities Age differences in participation in sports and outdoor activities Gender differences in sports and outdoor activitiesGender differences in sports and outdoor activities

Consumer wantsConsumer wants Ideal sporting goods store/department layoutsIdeal sporting goods store/department layouts Insights from in-depth interviewsInsights from in-depth interviews

Defining “ Sporting Goods ”Defining “ Sporting Goods ”

Tools for an active lifestyle.Tools for an active lifestyle.

Anything you could to possible to need to engage in Anything you could to possible to need to engage in sports activities, from different types of shoes and sports activities, from different types of shoes and clothing to actual equipment.clothing to actual equipment.

Both traditional sporting products plus hunting and Both traditional sporting products plus hunting and fighting products.fighting products.

Goods and products used for the products of physical Goods and products used for the products of physical activities.activities.

Key InsightKey Insight : Sporting Goods is difficult to define. : Sporting Goods is difficult to define.

•Industry Suppliers : Brands, manufacturers, suppliers and/or distributors (including

licensing, franchising and retail businesses) of sporting goods and services.

•Industry Supporters: Recognized federations, associations and/or firms related to the

sporting goods industry (such as trade fair organizers, consultancy companies, etc.) which are not directly engaged in the manufacturing, supply or trading of sporting goods and services.

•National or Regional Organizations: National or regional organizations constituted and recognized as

national or regional sporting goods governing bodies in any country throughout the world. Regional organizations can include their national federations in their membership.

Where Consumers Buy Sporting Where Consumers Buy Sporting GoodsGoods

Women are 63% more likely then men to buy sporting Women are 63% more likely then men to buy sporting goods at target.goods at target.

Men are 47% more likely to buy sporting goods at Men are 47% more likely to buy sporting goods at specialty stores.specialty stores.

34% of more men and 33% of women bought sporting 34% of more men and 33% of women bought sporting goods at mass retailers in the last years.goods at mass retailers in the last years.

Key InsightKey Insight : : Consumers are more likely to purchase Consumers are more likely to purchase their sporting goods from mass retailers than specialty their sporting goods from mass retailers than specialty stores. Affluence plays a significant role in purchasing stores. Affluence plays a significant role in purchasing patterns.patterns.

Frequency of Sporting Goods Frequency of Sporting Goods PurchasesPurchases

0

2

4

6

8

10

12

Weekly Monthly Every fewmonths

Once ayear

other

Frequency of Sporting Goods Frequency of Sporting Goods PurchasesPurchases

““Good quality equipment doesn't have to be replaced Good quality equipment doesn't have to be replaced that often”.that often”.

““Only when a sports season changes or when a family Only when a sports season changes or when a family member out grows something”.member out grows something”.

Key InsightKey Insight : Consumer Typically shop for sporting goods : Consumer Typically shop for sporting goods every few months, therefore, they want quality products every few months, therefore, they want quality products that will last through the season.that will last through the season.

Importance of price when Importance of price when purchasing sporting goodspurchasing sporting goods

I I don’t like to waste money on things I know I will ruin quickly so don’t like to waste money on things I know I will ruin quickly so inexpensive items are helpful.inexpensive items are helpful.

Price is a primary purchase decision criterion. The quality of an item Price is a primary purchase decision criterion. The quality of an item is often related to its price.is often related to its price.

The cheapest price isn’t always the best buy.The cheapest price isn’t always the best buy.

I’ll pay anything to get a good quality product.I’ll pay anything to get a good quality product.

I shop for value.I shop for value.

Specialty stores draw people with higher income.Specialty stores draw people with higher income.

Importance of interactivity in a Importance of interactivity in a sporting goods departmentsporting goods department

• Interactivity allows me to determine quality level of the Interactivity allows me to determine quality level of the itemitem

• I want to know what I am buying before I have to return I want to know what I am buying before I have to return it.it.

Importance of interactivity in a Importance of interactivity in a sporting goods departmentsporting goods department

A majority of our respondents believed interactivity would A majority of our respondents believed interactivity would add to their experience when purchasing sporting goods.add to their experience when purchasing sporting goods.

Key InsightKey Insight : Interactivity in sporting goods departments : Interactivity in sporting goods departments helps consumers make educated purchasing decision.helps consumers make educated purchasing decision.

Age differences in participation in Age differences in participation in sports and outdoor activitiessports and outdoor activities

• As people get older, they participates less in sporting As people get older, they participates less in sporting activities (particularly around the age 45).activities (particularly around the age 45).

Key InsightKey Insight : : Fitness and health are an emerging trend Fitness and health are an emerging trend for both children and adults. This trend is affecting for both children and adults. This trend is affecting purchasing decisions for sporting goods.purchasing decisions for sporting goods.

RecommendationRecommendation

► Specific sport or outdoor activity labels.Specific sport or outdoor activity labels.► Increase product quality, while keeping price intactIncrease product quality, while keeping price intact► Significantly increase the level of interactivitySignificantly increase the level of interactivity► Tout partnership with Gold’s GymTout partnership with Gold’s Gym► Carry name brandsCarry name brands► Provide athletic shoesProvide athletic shoes► Advertise in parenting magazinesAdvertise in parenting magazines► Sell seasonal equipmentSell seasonal equipment► Sell swimming accessoriesSell swimming accessories

Additional ResearchAdditional Research

• Swimming has the highest participation of any Swimming has the highest participation of any sports.sports.

• Hispanics purchasing power will increase by Hispanics purchasing power will increase by 48% by 2011.48% by 2011.

• Baby boomers are leaving team sports and Baby boomers are leaving team sports and having at home fitness equipment.having at home fitness equipment.

• Children cause elevated ownership of sporting Children cause elevated ownership of sporting goods.goods.

• Moms and grandparents buy children sporting Moms and grandparents buy children sporting goods. goods.

Top 5 Brands in “Sporting Goods”Top 5 Brands in “Sporting Goods”

Nike – Value $10.7 Billion – Nike is the sports apparel Nike – Value $10.7 Billion – Nike is the sports apparel giant.giant.

Adidas – Value $7.3 Billion – All Day I Dream About Adidas – Value $7.3 Billion – All Day I Dream About soccer.soccer.

Gatorade - Value: $6.4 Billion – While not technically an Gatorade - Value: $6.4 Billion – While not technically an

“apparel” brand“apparel” brand Reebok – Value: $2 Billion – While Reebok is the official Reebok – Value: $2 Billion – While Reebok is the official uniform provider for the NFL and NHLuniform provider for the NFL and NHL

Under Armour – Value: $530 millionUnder Armour – Value: $530 million

1. Brands in Sporting Goods

Definition and ManufacturedDefinition and Manufactured

Puma meaning and definitionPuma meaning and definition► A large American carnivore, found from Canada to A large American carnivore, found from Canada to

Patagonia, especially among the mountains. Its color is Patagonia, especially among the mountains. Its color is tawny. Or brownish yellow, without sports or stripes. Called tawny. Or brownish yellow, without sports or stripes. Called also catamount, cougar, American lion, mountain lion, and also catamount, cougar, American lion, mountain lion, and panther or painter.panther or painter.

ManufacturedManufactured► Puma is based in GermanyPuma is based in Germany► But has factories in a number of countries including china, But has factories in a number of countries including china,

turkey, el salvador, and indonesia.turkey, el salvador, and indonesia.

PumaPuma

Industry Clothing and consumer goods manufacture.Industry Clothing and consumer goods manufacture.

Founded 1924 ( registered in 1948)Founded 1924 ( registered in 1948)

Founder Rudolf DasslerFounder Rudolf Dassler

Headquarters Herzogenauurach, GermanyHeadquarters Herzogenauurach, Germany

Products Footwear, Sportswear, Sports goods, Fashion Products Footwear, Sportswear, Sports goods, Fashion accessories.accessories.

Revenue €2.461 billion (2009) Revenue €2.461 billion (2009)

Operating Income €192.4 million (2009)Operating Income €192.4 million (2009)

Profit €128.2 million (2009)Profit €128.2 million (2009)

Employees 9,650 (end 2009)Employees 9,650 (end 2009)

Creation of PumaCreation of Puma

• Rudolf’s company Rudolf’s company changes its name changes its name to Puma Scuhfabrik to Puma Scuhfabrik Rudolf in 1948, Rudolf in 1948, and became a and became a public company in public company in 1986. listed on the 1986. listed on the Borse Munchen Borse Munchen and Frankfurt stock and Frankfurt stock Exchange.Exchange.

Puma : Shoe Ads Done RightPuma : Shoe Ads Done Right

File these under File these under creative ads puma has creative ads puma has associated its shoes associated its shoes with real life animals with real life animals in their latest ad in their latest ad campaign, and the campaign, and the results are quite eye-results are quite eye-catching to say the catching to say the least continue reading least continue reading for more pictures.for more pictures.

Present dayPresent day

Puma AG has approximately 9,204 employees.Puma AG has approximately 9,204 employees.

Distributed its products in more than 80 countries.Distributed its products in more than 80 countries.

For the fiscal year 2003, the company had a revenue of For the fiscal year 2003, the company had a revenue of €€1.274 billion.1.274 billion.

Puma were the commercial sponsors for the 2002 anime Puma were the commercial sponsors for the 2002 anime series Hungry Heart Wild Striker, with the jerseys and series Hungry Heart Wild Striker, with the jerseys and clothing sporting the puma brand.clothing sporting the puma brand.

ControversyControversy

Organizations promoting fair trade and workers ‘rights Organizations promoting fair trade and workers ‘rights criticize Puma’s employment practices in their developing criticize Puma’s employment practices in their developing world factories, predominantly relating to workers in world factories, predominantly relating to workers in China, Turkey. EI salvador and Indonasia.China, Turkey. EI salvador and Indonasia.

2. Brand in Sporting Goods

DefinitionDefinition and Manufactured and Manufactured

Definition Definition ► All Day I Dream About Sports.All Day I Dream About Sports.

ManufacturedManufactured► Adidas manufactures their products in Herzogenaurach, Adidas manufactures their products in Herzogenaurach,

Bavaria which is Germany. The city it manufactures in is Bavaria which is Germany. The city it manufactures in is

also the city where the HQ is.also the city where the HQ is.

AdidasAdidas

Industry Clothing and consumers goods manufacture.Industry Clothing and consumers goods manufacture.

Founded 1924 (registered in 1949).Founded 1924 (registered in 1949).

Founder Adolf Dassler.Founder Adolf Dassler.

Headquarters Herzogenauurach, Germany.Headquarters Herzogenauurach, Germany.

Area served Worldwide.Area served Worldwide.

Revenue Revenue €€10.38 billion (2009 ).10.38 billion (2009 ).

Operating income €508 million (2009).Operating income €508 million (2009).

Profit €245 million (2009).Profit €245 million (2009).

Employees 39600 (2009)Employees 39600 (2009)

Products Products

Adidas currently manufactures several running shoes, Adidas currently manufactures several running shoes, including the adistar control 5, the adistar Ride, the including the adistar control 5, the adistar Ride, the supernova sequence and the supernova cushion 7, supernova sequence and the supernova cushion 7, among others.among others.

AccessoriesAccessoriesAdidas designs and makes sandals, watches, eyewear, Adidas designs and makes sandals, watches, eyewear,

bags, baseball caps, and socks. As well, Adidas has a bags, baseball caps, and socks. As well, Adidas has a branded range of male and female deodorants, branded range of male and female deodorants, perfumes, aftershave and lotions.perfumes, aftershave and lotions.

Financial InformationFinancial Information in millions of eurosin millions of euros

YearYear 20022002 20032003 20042004 20052005 20062006

SalesSales 6.5236.523 6.2666.266 6.4786.478 6.6366.636 10.08410.084

EBITDAEBITDA 532532 627627 725725 818818 10981098

Net Net resultresult

208208 260260 314314 382382 483483

Net debtNet debt 14981498 946946 594594 551551 22312231

3. Brand in Sporting Goods

NikeNike

• Industry Designing and manufacturing sportswear sport Industry Designing and manufacturing sportswear sport equipment.equipment.

• Founded January 1964 as Blue Ribbon Sports 1978 as Founded January 1964 as Blue Ribbon Sports 1978 as Nike,Inc.Nike,Inc.

• Founder William J. Bill Bowwerman Philip H. Knight.Founder William J. Bill Bowwerman Philip H. Knight.

• Headquarters Washington County Oregon, united statesHeadquarters Washington County Oregon, united states

• Area served Worldwide.Area served Worldwide.

• Product Athletic shoes apparel sports equipment Product Athletic shoes apparel sports equipment accessoris.accessoris.

• Revenue US$19.2 Billion (2009).Revenue US$19.2 Billion (2009).

• Operating income US $1.87 Billion (2009).Operating income US $1.87 Billion (2009).

• Employees 30,200 (2009).Employees 30,200 (2009).

Marketing of Sporting goodsMarketing of Sporting goods

Cricketing GearCricketing Gear Bats, Balls, Gloves, Helmets.Bats, Balls, Gloves, Helmets. Made from specially Made from specially

designed designed English & Kashmir willow, English & Kashmir willow, our batsour batsare well balanced and nicely are well balanced and nicely curvedcurvedwith a special bulge for extra with a special bulge for extra power.... power....

Inflatable BallsInflatable Balls

Footballs, Volleyballs, Basketballs, Footballs, Volleyballs, Basketballs, Rugby.Rugby.

Some of the worlds most popular Some of the worlds most popular games, football, volleyball, games, football, volleyball, basketball etc have evolved into a basketball etc have evolved into a global sports. We have a wide range global sports. We have a wide range of inflatable balls which are of the of inflatable balls which are of the highest quality and made with the highest quality and made with the latest approved materials latest approved materials

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