Comprehensive insight and strategic analysis of Under Armour
Under Armour Case Study analysis
Under armour case study analysis, company profile, history, internal & external assessment, product positioning map, organizational structure, value chain analysis, IFE/EFE matrix, BCG matrix, SWOT...Full description
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Cassidy Robinson
Under Armour
Under Armour
Table of Contents Content s Under Armour History Product Description Company Analysis Customer Analysis Competitors S.W.O.T. Analysis ar!etin" ob#ecti$es Communication Ob#ecti$es Ad$ertisin" Ob#ecti$es edia Ob#ecti$es Public Relation Ob#ecti$es %aunc& Strate"ies Success etrics Press Release '(ecuti$e Summary
Under Armour
History Of Under Armour +n 1,,- /&en 2) year old 0ootball player e$in Plan! stru""led /it& &a$in" to c&an"e multiple times a day durin" 0ootball season because o0 &o/ muc& &e /as s/eatin". He decided t&at t&ere &ad to be a better option out t&ere. He /anted to nd a solution to &is s/eat soa!ed cotton T3s&irts.
A0ter lots o0 researc& on materials 0abrics and at&letic material Plan!5s ne/ company Under Armour desi"ned t&e rst o0 many moisture3/ic!in" ber s&irts /&ic& &elped t&e 0ootball players stay dry and cool e$en in t&e &ottest o0 conditions. He called t&is rst desi"n a Heat6ear T3s&irt also named 788)9. A0ter "reat success /it& &is Heat6ear T3s&irt line Plan! introduced t/o ne/ lines o0 T3s&irts !no/n as Cold6ear and AllSeason6ear. T&e Cold6ear allo/ed at&letes to stay /arm and dry e$en in t&e coldest o0 conditions. And t&e AllSeason6ear /as desi"ned to !eep at&letes com0ortable bet/een all e(tremes. +n 1,,, one pi$otal moment 0or Under Armour t&at &elped to "et t&em reco"ni:ed /as t&eir in$ol$ement in t&e lm Any 6i$en Sunday starin" Al Pacino and ;amie altimore. Wit& t&is lar"e amount o0 "ro/t& t&e company decided to create its rst T? commercial 0eaturin" 0ormer Uni$ersity o0 aryland 0ootball star 'ric @>i" '@ O"bo"u and a "roup o0 youn" at&letes. T&is T? commercial establis&ed t&e brand t&rou"& e$ery &ouse&old across t&e US and made it become a re"ular name to people e$ery/&ere. +n 288) /it& "ro/in" demand and success Under Armour launc&ed its /omen5s line UA Women. +n 288* Under Armour also created a ne/ line o0 acti$e/ear specically 0or boy5s and "irls and outdoor at&letes. Anot&er bi" success by Under Armour /as t&e launc& o0 its 6ol0 line in 2884.
%ess t&an 18 years a0ter its launc& Under Armour ended t&e year /it& 2B1 million in re$enue. +n 288- Under Armour /anted to ac&ie$e e$en more and set out to clot&e t&e at&letes 0rom &ead to toe. Under Armour started a ne/ campai"n called Clic!3Clac!. T&is branc&ed into t&e 0oot/ear business and /as done t&rou"& a line o0 0ootball cleats. T&e brand captured a 2) s&are o0 t&e mar!et in #ust t&e rst year. Due to t&e enormous success o0 t&e 0ootball cleats Under Armour e(panded to include baseball so0tball and lacrosse cleats. +n 288B Under Armour re$ealed its &i"&ly anticipated line o0 per0ormance trainers mar!in" its ocial entry into t&e at&letic 0oot/ear mar!et. T&e year 2818 ended /it& an incredible nancial milestone 0or Under Armour as it &ad surpassed 1 billion in annual re$enue almost =uadruplin" re$enues in a $e3year period. As t&e company "re/ so did t&eir ability to start ma!in" a presence in ot&er countries. T&ey started ma!in" deals /it& pro0essional teams in ;apan 'urope Canada and %atin America. +n 2811 Under Armour opened its rst3e$er brand store in C&ina. Also in 2811 Under Armour created a ne/ line o0 C&ar"ed Cotton apparel t&at dried 0ast and per0ormed /&ic& "a$e t&e at&letes t&e same /ater3 resistant tec&nolo"y t&at t&ey &ad lo$ed /it& UA ot&er lines o0 clot&in". 19 years a0ter its ori"inal launc& o0 Heat6ear Under Armour too! it to a /&ole ne/ le$el once a"ain /it& t&e launc& o0 Armour),. T&is /as t&e rst3e$er per0ormance monitorin" system t&at measures /&at matters most to an at&leteE t&eir W+%%po/er. Fe(plaine /&at t&is is in detailG
T&e brands mission is to ma!e all at&letes better t&rou"& passion desi"n and t&e persistent pursuit o0 impro$ement. +ts commitment to t&at mission &as led to countless "ame3c&an"in" products t&at "i$e at&letes an ad$anta"e.
Product Description
Product Description Mission Statement:
MAKE A ATHETES !ETTE"
TH"OU#H PASS$O%& DES$#%& A%D THE "EE%TESS PU"SU$T O' $%%O(AT$O%
Under Armour /as created by a 0ootball player named e$in Plan! 0or 0ootball players. O$er t&e years Under Armour &as "ro/n to creatin" and supplyin" products 0or men /omen and c&ildren /it&in a /ide ran"e o0 sports and outdoor acti$ites. T&e 0eature product t&at Under Armour desi"ned is t&eir /ic!in" tec&nolo"y T3S&irts. T&e microber tec&nolo"y allo/s 0or t&e 0abric to dra/ oI t&e li=uid 0rom t&e body !eepin" at&letes cool and dry. Under Armour desi"ned t&e rst o0 many moisture3/ic!in" ber s&irts /&ic& &elped t&e 0ootball players stay dry and cool e$en in t&e &ottest o0 conditions. He called t&is rst desi"n a Heat6ear T3s&irt also named 788)9. A0ter "reat success /it& &is Heat6ear T3s&irt line Plan! introduced t/o ne/ lines o0 T3s&irts !no/n as Cold6ear and AllSeason6ear. T&e Cold6ear allo/ed at&letes to stay /arm and dry e$en in t&e coldest o0 conditions. And t&e AllSeason6ear /as desi"ned to !eep at&letes com0ortable bet/een all e(tremes. Under Armour &as also started a line o0 s&oes. T&ey started oI /it& cleats and mo$ed on to creatin" runnin"Jat&letic s&oes. Under Armour5s "oal is to satis0y t&e needs o0 a /ide $ariety o0 sports and at&letic endea$ors. T&ey &a$e e$eryt&in" 0rom s/immin" and bi!in" to rac=uetball and "ol0. 'ac& product line t&at t&ey &a$e added is specically en"ineered to "i$e t&at at&lete t&e best possible e(perience.
Product ife Cycle $ntroduction: )**+,)**-
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>rand Ke/ +dea Synt&etic microber /ic!in" T3s&irts created 0or
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AllSeason6ear Due to e(ponential "ro/t& UA mo$ed &ead=uarters to >altimore
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#ro.t/: )***,011)
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•
•
Sales continued to "ro/ ou"&t rst bi" print ad in 'SPK "eneratin" 948888 increase in sales 6ained relations&ips /it& a#or %ea"ue >aseball Kational Hoc!ey %ea"ue and t&e >altimore arat&on
#ro.t/: 0110,0112
• •
• • • •
+n 288) Under Armour launc&ed its rst T? campai"n Under Armours Slo"an LProtect T&is HouseM became &u"e amon" at&letes %aunc&ed its /omen5s line in 288) +n 288* launc&ed a boy5s and "irls line +n 2884 UA introduced it ne/ line o0 6ol0 attire 18 years a0ter its launc& UA ended t&e year /it& 2B1 million in re$enue
#ro.t/: 011+,01)1
•
288- /anted to dress at&lete &ead to toe >e"an t&e !ne/ Clic!3Clac! campai"n and introduced cleats Captured 2) mar!et s&are in rst year +n 288B t&ey re$ealed t&eir line o0 per0ormance trainers Fat&letic
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0oot/earG Roster o0 at&letes "re/ Ray %e/is %indsey ?onn 6eor"es
• • •
St8Pierre >randon ;ennin"s ic&ael P&elps Tom >rady and • •
Sloane Step&ens Opened a 'uropean &ead=uarters in Amsterdam >uilt rst branded3retail store in Annapolis D
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#ro.t/: 01)1,Present
• •
6ro/in" /orld/ide %atin America A0rica 'urope Canada Asia 2811 UA opened rst branded store in C&ina and became t&e ocial tec&nical partner to Totten&am Hotspur o0 t&e >arclays
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Premier %ea"ue 2811 de$eloped cotton c&ar"ed apparel t&at dries 0ast and per0orms
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+n 281) UA launc&ed per0ormance monitorin" system Re$enue is around 2 billion annually and t&e brand is reco"ni:ed /orld/ide as a "lobal leader
Positionin3 Under Armour /ants its customers to $ie/ t&e brand as top o0 t&e line at&letic per0ormance "ear /it& tec&nolo"ically ad$anced 0abric /it& /ic!in" properties 0or e$ery man /omen c&ild at&lete and sports 0an out t&ere. T&ey &a$e a /ide $ariety o0 clot&in" options 0or a /ide $ariety o0 sports and outdoor acti$ities. T&ey belie$e t&at e$ery acti$ity needs its o/n identiable products made /it& inno$ati$e material t&at /ill ne$er cease to impress. Under Armour continues to "ro/ and reposition its brand in ne/ and inno$ati$e /ays. T&eir /orld/ide at&letic campai"n &as ta!en t&e at&letic mar!et by storm and t&ey still continue to surprise us /it& t&eir astoundin" products.
Under Armour stores Sports Aut&ority Dic!5s Sportin" 6oods >i" 4 Sportin" 6oods Sport C&alet 6ol0smit& An"ler5s C&oice >ass Pro Road Runner Turners Outdoorsman Soccer
Company
Company Analysis
#oals: Under Armour &as been in a continuous state o0 "ro/t& since it5s creatin" in 1,,-. T&ey sur$i$ed t&e recessions and continue to t&ri$e /it& t&eir consistent ability to adapt and c&an"e to t&e "ro/in" needs o0 t&e at&letic mar!et. Ho/e$er no/ t&at t&e company &as ac&ie$ed so muc& "ro/t& in annual re$enue and a massi$e amount o0 mar!et s&are t&ey need to 0ocus more o0 t&eir attention on corporate social responsibility.
'ocus: • • • • •
>rin" "lobal a/areness to at&letes e$ery/&ere >e accountable and stay &umble Ta!e ris!s and stri$e 0or "reatness 'mpo/er support c&allen"e and inspire De$elop more 0ocus on social responsibility
Culture: LCulture5s a really po/er0ul t&in". +t5s an incredibly important t&in" in e$ery or"ani:ationM Fe$in Plan!
Mar6et S/are: +n 281* Under Armour surpassed Adidas to become t&e number t/o at&letic sports brand be&ind Ki!e. Under Armour &ad 1.2 billion in sales Adidas &ad 1.1 billion and Ki!e came in /it& B., billion in sales. Ki!e &as ** more years o0 mar!et e(posure t&an Under Armour. T&is ne/ly emer"in" company is "ainin" more popularity amon" acti$e/ear customers and is eatin" a/ay at Ki!e5s mar!et s&are. T&is company is "ro/in" and e(ceedin" all e(pectations ori"inally "i$en.
Customer
Customer Analysis
Mar6et: T&e acti$e/ear mar!et &as "ro/n 1 in t&e past year and t&e total sales &a$e reac&ed 28-.) billion. Acti$e/ear sales &a$e increased si"nicantly because customers are no lon"er #ust /earin" acti$e/ear to t&e "yms but t&ey are no/ L&an"in" outM in acti$e/ear. Consumers /ant to be com0ortable and $ersatile. Acti$e/ear in t&is current mar!et &as become a 0as&ion statement t&at allo/s consumers to e(press not only t&emsel$es but also a sense o0 at&leticism and /ellbein". Due to t&is "ro/in" demand competitors &a$e &ad to nd ne/ and inno$ati$e /ays to stand out amon"st t&e competition. T&ey &a$e done t&is /it& inno$ation creati$ity color and uni=ueness /it& t&eir desi"ns. T&e main reason t&at t&e acti$e/ear mar!et &as boomed so muc& is t&e com0ort t&at is associated /it& t&e acti$e/ear. Accordin" to Cotton +ncorporated around 9) o0 t&e customers /&o &a$e adopted t&e acti$e/ear trend did so /it& purposes ot&er t&an /or!in" out suc& as com0ort. Wearin" clot&in" meant 0or t&e "ym &as become a ne/ trend and style. Consumers not only /ant to be com0ortable but t&ey also /ant to loo! &ealt&y. >y /earin" at&letic clot&in" it can lead t&em to be loo!ed by ot&ers as i0 t&ey /or!out or "o to t&e "ym. '(ercise and &ealt& are "ro/in" in a/areness around t&e United States and t&e demand 0or acti$e/ear is "ro/in" /it& it. Fstatistics be&ind itG
Types of Customers: Under Armour tar"ets a /ide $ariety o0 customers /&o are bot& male and 0emale /it& diIerent at&letic outdoor sport needs.
Primary Customer:
Secondary Customer: • • •
Tertiary Customer: Adults ale and
(alue Dri7ers: Under Armour &as many 0emale at&letes and models in numerous sports and acti$ities t&at t&ey endorse. Some o0 t&ese 0amous indi$iduals t&at support and promote t&eir brand are isty Copeland %indsey ?onn 6isele >Nndc&en >rianna Cope and elley O5Hara. Under Armour &as consistently deli$ered top o0 t&e line sports apparel t&at caters to many o0 t&e needs o0 its customers. Under Armour #ust released its ne/ line o0 Cotton C&ar"ed t3 s&irts t&at deli$er t&e same dependability and &i"& =uality t&at t&e microber t3s&irts pro$ide. T&is ne/ line o0 Cotton t3s&irt allo/s 0or more mo$ement /&ile /or!in" out. Under Armour does a lar"e amount o0 sales t&rou"& t&eir /ebsite and t&e /ebsites o0 t&e retailers 0rom /&ic& t&e "oods are sold. Under Armour is sold in almost e$ery sports store in t&e country and is e$en sold in numerous stores "lobally. T&ey &a$e 1*- stores in t&e U.S. Ho/e$er most o0 Under Armour sales FB8 o0 its businessG are done t&rou"& 28888 retail stores Fsuc& as Dic!5s Sportin" 6oods t&e Sports Aut&ority and >i"
Decision Ma6in3: Under Armour promotes sustainability and responsibility to bot& t&e en$ironment and t&eir /or!ers. Alt&ou"& t&ey are still tryin" to impro$e t&eir en$ironmental 0ootprint /it&in t&e manu0acturin" and pac!a"in" o0 t&eir products t&ey are committed to lessenin" t&eir en$ironmental impact. Under Armour5s "reen products are made 0rom recycled plastic bottles and in t&e year 2811 t&ey con$erted o$er
2888888 one liter bottles. F///.recycleban!.comJpartnerJunderarmour3com G +t is o0 upmost importance to Under Armour to maintain a stron" commitment to !eepin" t&e &ealt& and sa0ety o0 t&eir /or!ers in place. >ot& t&eir suppliers and subcontractors must pro$ide t&e employees /it& sa0e and &ealt&y /or!in" conditions. >ein" a socially responsible company t&ey &old t&eir suppliers manu0acture and $endors to t&e re"ions rules and labor re"ulations. T&ey /ant to ensure t&at all companies comply /it& all o0 t&e /or!place conditions sa0ety and en$ironmental la/s and re"ulations o0 t&at re"ion. Under Armour /ants to !eep t&eir products "reen and ma!e sure t&at t&ey maintain a sa0e and &ealt&y /or!in" en$ironment.
Competitors
Competitors T&e at&letic apparel industry is &i"&ly competiti$e in not only t&e US but around t&e /orld. T&e leadin" brands t&at compete "lobally are Ki!e Reebo! and Columbia Sports/ear Company. W&en Under Armour de$eloped and became t&e leadin" pro$ider o0 t&e /ic!in" tec&nolo"y t&e ot&er competitors sa/ t&e success o0 t&is ne/ idea and did t&eir best to copy t&e tec&nolo"y in order to stay a rele$ant brand. T&ere is intense competition /it& t&ese brands and as styles and trends are consistently c&an"in" and becomin" bri"&ter more out"oin" and 0ull o0 patterns. Under Armour &as not only mana"ed to remain t&e rst mo$er o0 t&is /ic!in" tec&nolo"y but is also one o0 t&e main pro$iders o0 t&ese color0ul pattern lled at&letic "oods.
Stren3t/s: ?ery competiti$e pricin" •
Kumber one sports brand Has a stron" mar!etin" position /it& top at&lete sponsors
8ea6nesses: • • •
T&ey are not socially responsible +ncreasin" cost %ac! o0 brand stores