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Abstract
This paper will discuss and analyze Under Armours current position in the sporting goods
market. This paper will also supply Under Armour with recommendations and strategies that
have the potential to augment their current market segment. With their newly developed sector,
identified as Team Under Armour, the firm has to transition and redevelop its current marketing
mix. This paper will outline the external forces effecting the success of this firm. To successfully
transform into an international brand, Under Armour has to strongly develop their Team Under
In 1996, Kevin Plank created Under Armour. Under Armours original core business was selling
compression clothing made from technologically advanced materials. Since its emergence into
the sporting goods market, Under Armour has expanded tremendously. It is now a publicly
traded company on the New York Stock Exchange under the UA ticker symbol. Even though
their original core business was compression clothing, they have expanded their business to
athletic gear, footwear, and sports relate accessories. However, with the rise of Team Under
Armour, they have refocused their business on sponsoring prominent celebrities. Under
Armours marketing director stated that we pick that athlete with a chip on their shoulder and
their desire to win because it aligns with our own attitude (2015)
As mentioned in their 2013 Mission, Vision, and Values Statement, their overall mission is to
make all athletes better through passion, design, and the relentless pursuit of innovation (2013).
Majority of their current sales are accumulated by the apparel sector. With new sponsorships
with athletes like Stephen Curry and Cam Newton, Under Armour has the potential to compete
External Forces
Under Armours competitive atmosphere resembles the foundation of pure competition market.
Although Nike and Adidas are the only other companies that dominate the market, several other
companies sell similar products in the same price range. Nike is a global powerhouse who
obtained $30 billion in yearly revenue in 2015. Whereas Adidas obtained $17 billion. As for
Under Armour, a fairly new company, they approached $4 billion in annual revenue. In 2009, the
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company made less than $1 billion (Nasdaq, 2015). Under Armour was named the 53rd fastest
In the terms of a products life cycle, Under Armour is still within its growth stage, meaning that
the company will continue to grow and gain market share. Nike and Adidas were founded
decades before Under Armour. These two companies have reached a later stage in the product
life cycle in are closer to maturity than UA. In 2013, Nike 12-Month revenue growth was 4.9%,
Adidas was 11.5%, and Under Armour exceeded its competitors with 24.6% (Colbert, 2013). The
market for sports apparel is growing rapidly. According to Forbes, the sporting apparel market
was worth nearly $135 billion in 2012 and it is estimated to reach nearly $178 billion by the end
2019 (Forbes, 2013). Under Armour has the ability to occupy a large portion of the market share
Social Factor
All around the world people are desiring to live a healthier lifestyle. The increase in the desire to
live healthier is the framework for the success of the sporting apparel market. In 2014, over 54
million Americans paid for a gym membership. Between 2008 and 2014, membership growth
has increased by 18.6% (Franchise Help, 2015). Under Armor provides athletic performance gear
to these 54 million Americans who play collegiate sports, professional sports, recreational sports,
and gym participants. This increase in physical activeness can also be accredited to the rapid
increase of women becoming more active. In 2014, Under Armour begun a campaign to target
athletic women to outshine their competition who reluctantly neglects their female sector. This
Technology
To actively stay ahead of competitions, Under Armour has to continue to make revolutionary
strives in technology. They believe in their technology model, everything here makes you
better. Fabric, footwear, and mobile apps have all been technically redesigned to make every
athlete better. UA record is a dashboard that stores all of an individuals activity, sleep, and
workouts on a daily basis. This information is connected directly to a device and can be viewed
to track accomplishments (Under Armour, 2016). Under Armour has three different groups of
fabrics that were designed to keep athletes cool, warm, and dry. For instance, the ColdBlack lines
is not like ordinary fabrics that heat up in extreme temperatures. ColdBlack fabric reduces sweat,
fatigue, and focus lose by reflecting heat and IR rays. They have also revolutionized the comfort
and performance of athletic shoes. Charge cushioning is one of Under Armours new
technological advances. Athletic shoes with this technology absorbs the impact of a foot strike
SWOT Analysis
Strengths
Under Armour has demonstrated steady growth since 2008. This growth has also
highlighted the development and launch of new products and growing the companys portfolio.
This makes UA a competitive brand in the sporting apparel market. Under Armours strengths
include strong online sales, high brand equity, customer loyalty, innovative culture, and strong
product recognition.
Unlike its competitor Nike, Under Armour is not associated with indecent labor. As stated in
their Code of Ethics, We require that all of our manufactures adhere to a code of conduct
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regarding quality of manufacturing, working conditions, and other social concerns (Under
Armour Inc., 2013). Also, Under Armour endorses two of todays biggest names in sports,
Stephen Curry and Cam Newton. Sales of Currys signature basketball shoes are up 350% since
2015, which makes them higher than sales of any Nike signature shoes except Jordans (Inc,
2016).
Weaknesses
Nike developed Nike ID to allow consumers to customize their famous style of shoes with their
own custom colors and even embroidered numbers and names. As for Under Armour, products
Recently the company has taken strives to increase the presence of loyal female customers but
they have to stay focused on the task at hand to increase the number of female customers. Under
Armours problem with womens apparel is not the performance or design, but it distribution of
the apparel (Townsend, 2015). This aspect is also proven in their higher prices than their
competition. High prices decrease their customer base. Under Armours prices are typically
higher than its competitors. Even though this may market their brand as prestigious, average
individuals who participate in recreational activities are reluctant to pay premium prices for
Nike Adidas are globally recognized brands. For Under Armour to successfully compete within
this market they have to shift their focus internationally, lower cost, and address their female
market.
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Opportunities
Overall, Under Armour is a successful company. To increase their brand image and their
presence in the market, they have to explore the multitude of opportunities. As mentioned earlier,
Under Armour has to broaden its target audience. Since its creation, men have been at the
forefront of their campaign. With women becoming more active and involved in physical fitness,
Also Under Armour needs to expand globally. Although they have present in a few foreign
countries, they competitors Nike and Adidas are dominating the international market. In 2015,
Under Armour expanded in China, which has started their international progress. This is an
important factor to expansion. In 2016 third quarter, Nikes China sales increased by 23%
(Market Realist, 2016). With their new found technology and the increase of Team Under
Armour, expanding to Asia, Europe, and Australia could benefit the overall success of the
company.
Threats
With a large number of substitutes, Under Armour has to proclaim their spot in the sporting
apparel market. With products that are closely substitutable, it has to make sure its image and
brand prevails over the competitors. This also puts a cap on the prices Under Armour can charge
for products regardless of the innovation associated with it. Nike has DriFit and Adidas has
ClimaCool, which are two alternatives to consumers within this market. The presence of close
substitutes could also lessen the chance of Under Armour obtaining successful celebrity
endorsements. It was reported that Nike spends nearly $1 billion dollars every 12 months on
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endorsements (CNN, 2002). Under Armour is still in its growth stage and is not able to spend a
Marketing Strategy
Product Strategy
Under Armour focuses on how their products utilize the newest and best technology. This is also
a characteristic that distinguishes Under Armour from its competition. Under Armour currently
has over 15 different innovative fabrics including HeatGear, StormGear, and ColdGear. Although
competitors have recreated their own version of these products they do not perform on the same
levels as Under Armour. Exceptional marketing of these products has created Under Armours
high brand equity. By constantly employing famous athletes with positive images to foster long
Pricing strategy
Warren Buffet once stated that the single most important decision in evaluating a business is
pricing power (Forbes, 2014). Under Armour uses their customers value as a price determinant,
which is referred to as value-based pricing. This approach does not simply strive to increase
prices to the highest level consumers are willing to pay, but it strives to create additional
customer value to increase their willingness to pay, despite the presence of strong competition. In
2013, Under Armour sold their Highlight Football Cleat for $110, in 2014 the price rose to $130
(Forbes, 2014).
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Promotional Strategy
Under Armour advertises their products through television, billboards, magazines, sponsorships,
and the internet. UA focuses on being relatable to its consumers. The start of the I WILL
campaign was created to impact a large number of viewers regardless of race, age, gender, or
active level. The internet is one of Under Armours biggest means of promotion. YouTube, an
online video source, streams their advertisements to individuals who have browser histories that
They use public relations to promote its brand and to ensure the public of their good image.
Under Armour has created a separate sector entitled UA Gives Back to continue to provide the
community with support. For instance, in 2014 Under Armour started a campaign in its
hometown to improve the functionality to local basketball courts in hopes to empower the
Under Armours biggest promotional are accredited to their commercials and slogans. Their
commercials focus on personal endurance and achievements. Generally, the individuals in the
commercials are depicted as hardworking and dedicated. The commercials endorse their products
as well as their sponsored athletes like Cam Newton, Tom Brady, and Steph Curry. Another way
Under Armour increases exposure is by elaborating with large sporting goods stores like Dicks
and Sports Authority to showcase their new collections. This promotional strategy reduces cost
of advertising because the sporting goods store and UA split the cost evenly.
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Distribution Strategy
Under Armour uses direct and indirect channels to distribute their products to their consumers.
Their products are sold directly from their website,(underamour.com), as well as Under Armour
stores. Consumers are able to browse through a large database of products and learn about
innovation and technology associated with each product directly. Their direct sales approach only
contributes to 20% of their overall sales. The largest percentage of their sales are streamed from
selling their products to wholesalers like the Sports Authority and Dicks. They selective
distribute their products to stores. Their products are not easily found in all retail locations,
typically just sporting goods stores. By utilizing a mix of distributions tactics, Under Armour has
the potential to maximize their sales. Internet sales also work as a prominent factor in
distribution. Consumers are able to browse through a large database of products and learn about
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