On the one hand, brands can increase a company’s value significantly or even represent the company itself. On the other hand, consumers want to take over the image of a brand and identify themselves with the characteristics carried by the brand. This goes along with the need of having branded goods as a mark of status and belonging.
Therefore, companies need to focus on strengthening their brand image and brand equity in order to succeed on the market and diversify themselves from their competitors.
However, the question is, are the efforts in creating a strong brand image and high brand equity justified when thinking about the impact on the consumer?
Why are so many companies focusing on image instead of paying attention to the quality of their products? And why do so many companies spent money on sponsoring sports teams instead of investing in the improvement of their product’s characteristics or developing new innovative products?
In order to get into the topic, this case study will have a look at Puma as a concrete example of how branding affects a company.
The intention of this case study is to point out how Puma achieved the way from a shoe manufacturer to a well-known lifestyle brand by looking at the creation of a brand image on the one hand and an increase in brand equity on the other hand.
- Does a positive brand image have an influence on a company’s turnover?
- Does a high brand equity influence a company’s economic development or does a positive development of a company increase its brand equity?
- Do brands have an effect on consumer’s buying behaviour?
Table of Contents
1 Introduction
1.1 Problem
1.2 Aim of this work
1.3 Structure of this work
2 Branding
2.1 History of Branding
2.2 Brand Definition
2.3 Self-Image and Brand Image
2.4 Brand Name and Logo
2.5 Brand Strategy
2.5.1 Individual Brands
2.5.2 Extension and Stretching
2.5.3 Family Branding
2.5.4 Brand Entertainment
2.5.5 Product Placement
2.5.6 Ingredient Branding
2.6 Brand Equity
2.6.1 Monetary Valuation
2.6.2 Behavioural Valuation-Models
2.6.3 Combination of Monetary and Behavioural Models
3 Consumer Choice
3.1 Basics of Buying Behaviour
3.1.1 Categories of Buyers
3.1.2 Roles of Buyer
3.1.3 Basic Buying Process
3.1.4 Consumer’s Fashion Adoption Process Model
3.2 The Consumer
3.2.1 Involvement
3.2.2 External Influence Factors
3.2.3 Internal Influence Factors
3.2.3.1 Cultural factors
3.2.3.2 Social factors
3.2.3.3 Personal factors
3.2.3.4 Psychological factors
3.2.3.4.1 Motivation
3.2.3.4.2 Perception
3.2.3.4.3 Attitude
3.2.3.4.4 Learning
4 Puma
4.1 History of Puma
4.2 History of Puma as a Brand
4.3 Brand Strategy
4.3.1 Puma’s Four-Phase-Strategy-Plan
4.3.2 Brand Extension and Stretching
4.3.3 Brand Entertainment
4.3.4 Product Placement
4.4 Brand Image
4.5 Effect on Puma’s economical Development – brand equity
4.5.1 Annual Report
4.5.2 Puma’s Brand Equity
5 Summary and Conclusion
5.1 Critical View on Branding and Brand Equity Evaluation
5.2 Critical View on Puma as a Brand
5.3 View into the Future
6 Sources
6.1 Internet-Sources
6.2 Literature-Sources
Objectives and Core Themes
This case study examines the impact of branding strategies on corporate development, using the sports article manufacturer Puma as a practical example. The research explores how creating a strong brand image and increasing brand equity influence economic growth and consumer buying behavior.
- Fundamentals of branding and brand strategy development.
- Theoretical models for calculating and valuing brand equity.
- Analysis of consumer buying behavior and psychological factors in the purchasing process.
- Puma's transformation from a traditional shoe manufacturer into a globally recognized lifestyle brand.
- The relationship between brand image, marketing efforts, and actual economic performance.
Excerpt from the Book
2.1 History of Branding
Brands can be traced back to the Egyptian antiquity when people used logos to sign their property. Everyone knows the old Egyptian vases with old letters on their bottom. However, the expression „brand“ has been implemented in the USA many centuries later. It was originally used to describe the process of branding cattle to assign them to their owner.
The first branded product in Germany was “Royal-Sugar” in the beginning of the 20th century. Before that, the wholesaler delivered bags with 50 kg of sugar. As the retailer had to fill bags of one kg for his customers and as this was very time-consuming, the wholesaler decided to deliver 50 bags of one kg instead of one bigger bag. He printed the name “Royal” on these bags and within a short time the customers asked for “Royal” when they wanted sugar.
The first massive campaigns concerning brands started in the late 19th century, but they were more like advertising campaigns than brand campaigns. As there were many completely new products like radio and car, it was important to inform customers about these new products, as many did not know anything about what a radio was for example. Advertisements had to be descriptive and had to give many details about the product’s characteristics. The focus was therefore not on creating new brands; this appeared later when more and more sellers entered the market. The different manufacturers had to find a way to differentiate themselves from the others. In that way branding was created.
Chapter Summaries
1 Introduction: Introduces the growing significance of branding in the modern business world and establishes the research goal of analyzing Puma's brand evolution.
2 Branding: Explores the historical roots of branding, defines core concepts, and details various brand strategies and valuation models used to measure brand equity.
3 Consumer Choice: Examines the theoretical framework of consumer buying behavior, including decision processes, influence factors, and how these relate to brand perception.
4 Puma: Provides an in-depth case study on Puma, detailing its history, the implementation of its four-phase strategy, and how these measures impacted its brand image and economic success.
5 Summary and Conclusion: Synthesizes the findings by providing a critical view on brand equity evaluation and the challenges faced by Puma as a global lifestyle brand.
6 Sources: Lists the internet sources and literature references utilized throughout the research.
Key Terms
Branding, Brand Equity, Brand Image, Consumer Behavior, Lifestyle Brand, Product Placement, Brand Entertainment, Market Segmentation, Brand Strategy, Corporate Identity, Buying Process, Puma AG, Sport Lifestyle, Brand Recognition, Economic Development.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on the significance of branding in modern business, specifically examining how a successful brand strategy influences a company's economic development and its ability to connect with consumers.
Which theoretical frameworks are applied?
The work utilizes various branding theories, valuation models (monetary and behavioral), and consumer behavior models, such as Sproles’ Consumer’s Fashion Adoption Process Model and Kotler’s S-O-R Model.
What is the central research question?
The study investigates whether the efforts invested in creating a strong brand image and high brand equity are justified and how these factors specifically affect corporate turnover and consumer buying behavior.
How is the methodology structured?
The methodology combines academic background research on branding and buyer behavior with a practical, evidence-based case study of Puma's corporate transformation.
What topics are covered in the main body?
The main body covers the history and definition of branding, specific branding strategies (extension, entertainment, placement), models of brand valuation, and a detailed analysis of Puma's operational and strategic changes.
Which keywords best describe this study?
Key terms include Branding, Brand Equity, Brand Image, Consumer Behavior, Lifestyle Brand, and Corporate Strategy.
How did Puma transform its brand image?
Puma shifted its focus from being a traditional sports footwear manufacturer to a "lifestyle" brand by diversifying its product line, targeting trendy sports, and employing creative marketing campaigns like the "New Stuff" initiative.
What impact did the "Four-Phase-Strategy-Plan" have on Puma?
The plan, implemented under CEO Jochen Zeitz, allowed Puma to restructure effectively, reposition the brand, expand its distribution, and eventually achieve significant double-digit growth rates.
Is brand equity easily measured?
The study concludes that finding a fair, universal value for brand equity is difficult, as different valuation models (such as A.C. Nielsen's vs. Interbrand's) can produce widely varying results.
How does the author view Puma's future?
The author suggests that Puma must continue to prioritize long-term brand equity over short-term gains, maintaining its strong lifestyle image to remain competitive in the market.
- Quote paper
- Dipl. Wirt.-Inf. (FH), Dipl. Kfm. (FH), BBA Andreas Schutt (Author), 2009, The effect of branding on the development of a company with an example of Puma, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/177238
