2. Student work starts here
Contents
0.1 Introduction............................................................................................................................ 3
0.2 Target audience...................................................................................................................... 4
0.2.1 Demographic.................................................................................................................... 4
0.2.2 Psychographic.................................................................................................................. 5
0.2.3 Behaviour........................................................................................................................ 6
0.2.4 Geographic....................................................................................................................... 7
0.2.5 Benefits ........................................................................................................................... 8
0.3 Brazil opportunity and threat for Under Armour(UA)................................................................ 9
0.4 Brazil cultural value............................................................................................................... 10
0.4.1 Strength and weakness of UA in Brazil............................................................................. 11
0.5 UA brand positioning............................................................................................................. 12
0.5.1 Perception Maps: ........................................................................................................... 13
0.6 Recommendation and adaptation for UA in the Brazilian market............................................. 14
0.7 Entry mode........................................................................................................................... 14
0.8 Conclusion............................................................................................................................ 14
References................................................................................................................................. 15
Appendix.................................................................................................................................... 17
3. 0.1 Introduction
Thisreportwill investigate the practicality of UnderArmourenteringthe Brazilianmarketplace.The
reportwill look intothe threatsandopportunities of the Brazilianmarkettoevaluate the strengths
and weaknessesof UnderAmour marketingefforts. A conclusion,withrecommendationsand
strategiesforthe Braziliancultural marketplace toadoptwill resultfromthisinvestigation. Thiswill
be achieved withoutcompromising UnderArmour’s brandvalue proposition.
Brazil ispart of the BRIC Nationswhichare the fastestgrowingandlargestemergingeconomies.
Theyaccount for almostthree billionpeople,orjustunderhalf the total populationof the world.
(economywatch,2010).Brazil’seconomyisthe largestinSouthAmerica;ithasa majoragricultural
products,commodity-basedeconomy and,therefore reliesheavilyon the price of commodities and
exporting. Brazil iscurrentlyinatransformationphase, becomingaconsumerdriveneconomy
whichrelies onitsgrowingmiddleclassspending tomaintainthe economystability.The
governmentencouragesinternational business (nytimes,2012)
Under Armour(UA) isbasedin NorthAmericaand is a developeranddistributorof athleticand
lifestyle fashionapparelformen,womenandchildren.Itsbrandvalue propositionmissionisto
make all athletesbetter,throughpassion,design andthe relentlesspursuitof innovation. The
brand’svisionistoempower athleteseverywhere,motivatingthemtoachieve greatness.
(underarmour,2015). UnderArmour is the marketleaderinperformance apparel withover70%
marketshare,including companybrandsHOTGEAR,COLDGEAR andALLSEASONGEAR. These are
extremelypopularamongprofessional athletesaswell asconsumers.As apparel ishightechand
innovative,the costof the product ishighand above that of competitors. Itsmaincompetitorsare
Nike ,Adidas,PumaandReebok, all of which are well established brandswithinthe marketplace
while UnderAmourhasyetto expandinternationally.
4. 0.2 Targetaudience
In orderto move intoBrazil’smarketplace UnderArmourwillneedtoevaluatethe waysinwhich
theywill be able tobreakcustomersintoeasilytargetedsegments. These segmentswouldhave
similarcharacteristicswhichwouldallow the companytoconcentrate theireffortsonthe needsof
the customerswithinthe groups. ‘Thismakessegmentationaproactive partof developinga
marketingstrategyandinvolvesthe applicationof techniquestoidentifythese segments’(Wind,
1978)(Brassington,2006,p193).The analysesthe behaviourpatternsof the Braziliansocialclassesin
an attemptto understandthe attitudesinlinewithUnderArmour’sopportunitieswithinthe
Brazilianmarket.
0.2.1 Demographic-Demographicssegmentation isthe usage of populationcharacteristicsand
provides arange of useful variablestostate currenttrendsandopportunities inconsumerbehaviour
(Materson,Pickton,2010,p125)
Brazil’scurrentpopulationis203 millionwithayearlychange of 0.85% (1.6 million).Itisglobally
ranked5th most populatedcountryinthe world(worldometers,2015). 85% (172 million) live in
urbanisedenvironmentsand62%of the populationisaged29 or under(Appendix 1)
(worldpopulationreview,2014). Male to female ratiois49.156% to 50.844%. Brazil’spopulationis
projectedbythe national statisticsagencytopeakat 228 millionin2042 (worldpopulationreview,
2014).
As Brazil’sinfrastructure improvesandpovertyisminimised,thusspear-headingBrazil’smiddle-class
growth,life expectancyisincreasingto71 yearsfor menand78 yearsforwomen. It isestimated
bothmenand womenwill live,onaverage,longerthan80 years by2041.
(worldpopulationreview,2014)
As more womenare enteringthe workforce andchoosingtowaitbefore havingchildren,an aging
populationisbeingcreatedinBrazil (worldpopulationreview,2014). In the 1980’s, Brazil’sfertility
rate was4.31. This hasdecreasedto1.82 in 2015 (worldometers,2015),resultinginfewermouthsto
feedandmore disposal income tospendonproducts.
Brazil issegmentedto4 wavesof household;subsisterhouseholdpoverty(12% of population),
makingunder$3,000 annually. Occupationsinclude:cleaners,unemployed.Restrictedhouseholds
have recentlypassedpoverty(59%of population),making between$3,000-$15,000. Occupations
include:housemaids,builders.Secondwave:emergenthouseholds(18% of the population) make
$30,000- $45,000. Occupationsinclude teachers,managers.Thirdwave,establishedmiddle-class
(5% of the population) whomake $30,000 to $45,000. Occuationsinclude:doctors,lawyers. Fourth
wave:affluenthouseholds(6%of the population) make $45,000 andbeyond. Occupation:investors
and businessowners. (bcgperspectives) and(thebrazilbusines,2011)
Table:0.2.1a: demographic
The demographicinformationshowsBrazil population istoincrease;alsoitisa youngpopulation,
life expectancyhasincreased, womenfertilityrate hasdecreased.Thisindicates the potentialof
consumerswithinthe BrazilianmarketforUnder Armour,as families have anincrease indisposal
income andlongerlife isassociatedwithhealthand exercise, therefore atargetaudience forUA
sport performance apparel will have anpositionwithinagrowingpopulation.Social gradingisused
to understandthe populationof eachsocial classand the capabilityof purchase powerforthe UA
brand. The informationshowsthatrestrictedhouseholdsare the biggest population;Therefore UA
can devise astrategyto specifically targetthisgroupthroughprice initiatives.
5. 0.2.2 Psychographic- Psychographicreferstothe understandingof the psychologicalbasisof
opinions,motivations andattitudes.Ithelpstodeterminethe reasonsof purchase of productsand
services.(Yeshin,2011,p197)
In Brazil incomesreflectconsumptionrate perhouseholdonproductandservice categories.Itis
importantto understandspendingpsychologyof consumerstoanticipate purchase intentand
precisely,strategicallypositionandtargetthe productstocustomers. Householdsenteringnew
income segments:subsisterhouseholdscanaffordtopurchase little more thannecessities.
Restrictedhouseholdsincrease consumptionof basicgoodsanddurable products. Theyalsotrade
up to highervalue products,especiallyinelectronics.Emergenthouseholdsspendmoneyon
essential andhighervalueproducts.These householdstrade uponproducts.Establishedhouseholds
increase spendinginnewcategoriesandtrade upinwine,clothingandentertainment.Affluent
householdsspend40%on discretionaryconsumption;theydramaticallyspendmoneyonlivingin
luxury.(Appendix 2) (bcgperspectives,anon)
The emergentandestablishedhouseholdswill representaround35% of Brazil’sincome in2020,
while the affluentwill increase theirshare from39% to nearly43 %.The middle-classandaffluent
householdswill accountfor85% of incremental consumptioninBrazil between2010 and2020
(Appendix 3) (bcgperspectives).The emergentandestablishedsocial classrepresents80.2% on
sport apparel total spendandaffluenthouseholdsrepresent11.66% (Appendix 4)(M.O.F.A.O.D,
2014).
Table 0.2.2a: Psychographic
The psychographicinformation showssocial classesspendingonsportbrandapparel,therefore
indicatingcustomerprofitabilityforUA brand withinBrazil emergent,establishedandaffluent. The
psychographicinformationshowsthe differentspendinghabitswithinsocial classes.It isimportant
to understand attitudes,motivationandincome becauseitcan predictcategoriestrade upas
income increases.Thiscanvarydue to the perception of brandpositioningtothe consumer.
….”Schaninger(1981) comparedthe relative effectivenessof social classandincome.Income exerts
an influence whenthe productof concernisexpensive,andsocial classexertsaninfluence whenthe
productof concerncan be seenasa reflectionof consumersocial class thisinformationisparticular
inproduct categories ”….Positioningthe UA brand as highluxurysportbrandwill create animage
withinthe societytoreflectthe targetaudience of affluentandmiddle classconsumers.
Personality
VALSwas createdtomaximize the abilitytopredictconsumerbehaviour. VALS systembasedon
demographicandpsychological characteristics correlatedwithpurchase behaviour.The dimension
of the frameworkisbasedonmotivationandresources.Differentlevelsof resources(age,
education,income)enhance orconstrainthe expressionof apersonmotivation( J.Baker,
2014,p270) UA will be targetingpersonality;
Achievers Consumerswhoare primarilymotivatedbyachievementlookforproducts
and servicesthatdemonstrate successtotheirpeers. Theyare attractedto
premiumbrands
Experiencers Young , enthusiastic, self- expressiondesiresocial orphysical activity,variety
and risk,
Table 0.2.2b: personality
Thistwo combinedpersonalityrepresentthe UA brandpositioning whichis primarybasedon
enhancingpersonal skillsthroughhardwork.
6. 0.2.3 Behaviour –Behavioursegmentationisbasedonthe relationshipbetweencustomerand
productusage (Brassington,2006,p207)
In Brazil 80 millionpeopleclaimingtobe activelyengagedinone ormore sports,andapproximately
60% of the populationbeingunder30yearsold,(latinvex,2014) . Womenswearis the largest
segmentinsport-wear, accounting for about 48% of the industry; menswear and children’s
wearaccount for 34% and19%, respectively.(M.O.F.A.O.D,2014)
The 2014 FIFA WorldCup,followedbythe 2016 OlympicGames,bothinBrazil,will playarole in
drivingthe performance of sportswear.Inadditionthe warmclimate makesiteasytopractice
outdoorsportsall year long.
Football’sisthe dominate sportinbrazil,runningandcyclingare gainingmomentum.The Riode
JaneiroOlympicswill bringworld-classrunnersandcycliststoBrazil,promotingthe popularityof
these sports,stimulatinggrowthasa result.(latinvex,2014).Runninghasbecome the country’s
secondmostpopularsport,with4.5 million runnerstrainingregularly,dedicatedrunnersare happy
to investinperformance sportswear,includingspecialfootwear,fast-dryT-shirts,compression
shortsand anti-UV caps,and there remainsplentyof opportunityfordevelopment.(latinvex,2014)
Brazil prefersperformance apparelaccountingfor45% of sportsapparel value salesin2013.
Brazilianstendtopurchase performance brandsoverfashionsportapparel,Thisislargelydue tothe
seriousnessforsport. Theyare preparedtopay more forhigh-specsportswear.Brazilianconsumers
are extremelybrandconsciousandbrandname certainlyinfluencespurchase decisions.
(latinvex,2014)
target audience byusage; highusers;professionalathletes,aspiringyoungathletes andsports
enthusiast. Mediumusers:students,dieters,peoplepursuinghealthylifestyle. Lowusers:people
whowant to keep fit, once aweekrunnersorbike ridersandleisure funsports.
Table 0.2.3a: Behaviour
The behavioursegmentationshowsthe relationshipbetween Braziliansandsportsproducts.It
shows80millionare activelyintoone ormore sportsand 60% of the populationisunder30 years,
thisshowsthe customerprofitabilityforUA inthe marketplace.Brazil will hostthe worldcupand
OlympicGamesthiswill have adirectinfluence andmotivationformore people topartake in
sportingactivities. Sportperformance apparel isalreadyestablished withinBrazil as45% of sales
were performance apparel.Braziliansare willingtopayhighpricesforenhancingperformance
therefore UA will profitfromthisbehaviourastheyare the function brandleadersinsport
performance apparel inthe USA.
UA brand positioninginAmericacaterstoheavyusers;athletes,aspiringyoungathletesorsports
enthusiast.they mostlytraineverydaytoimprove theirsportperformance forcompetitions.
Competitorsare stronglypositionedformediumandlowerusers. UA strategyto penetrate high
userswasthrough sponsoringcollege/universitiesandendorsingprofessional athletesto promote
itsbrand withinAmerica,thisstrategycan be adoptedinBrazil.
7. 0.2.4 Geographic-Definedasthe analysispeoplebywhere theylive (slight,1997,p6) thisgive an
understandwhere customersare placedgeographicallywithinthe country.This will make the
targetingprocesseffective andefficient.
0.2.4a Table :Geographic
The geographicinformationindicates southandsouth-eastregioninBrazil consistof the wealthiest
individualandfamilies. These regionsconsistof Sao-PauloandRio,these are the biggestpopulated
citieswithinBrazil andcoverover72% of all e-commerce revenue. NorthandNorthwest regions
showsthe mostpromisinggrowthpotential ashousehold increasesincome.UA will targetthe
wealthysouthernareasof Brazil tohave more exposure topotential customersandeasilytargete-
commercial customerwithspecial local offers.
Geographiclandscape of Brazil isbrokendowninto5 regionsand26 states.The southand the
southeastregionare consideredasthe urbanisedandwealthycitiesinBrazil.Southandsoutheast
regionconsistof Sao –Paulowitha populationof 19millon(2007) and RioDe Janeiro14million
(2007) people (Appendix 5). Sao-Pauloisregardedasthe one of the largestcityinthe world
(worldpopulationreview,2014) itsknownforits vibrantcolourful culture,beaches,shoppingmalls.
Thisregionwill have the highestconcentrationsof upper-incomeBraziliansin2020. Nike alreadyhas
establishedstoresinthese location(Appendix6) The northand northwestare still undevelopedbut
showthe fastestgrowth potential itis“projectedtoaddaround2.5 millionnew middle-classand
affluenthouseholdsbetween2010 and 2020.” (bcgperspectives,anon) Appendix7showsthe
growthrate potential of newemergingcitieswithinbrazils.
E- Commerce
Only53% of brazils202 millionpopulationare active onthe internet.Mostof the populationthatis
yetto have access to the webcome fromunder-developedstateswhere connectionsare still
expensive andunreliable(techinbrazil,2015).
Southand south-easternregion ;SãoPaulo,Riode JaneiroandMinas Gerais,combinedwithEspirito
Santogather over72% of all e-commerce revenue. E-commerce revenue washighlyapparentin
south-easternasbecause theseareashave goodinfrastructure logistics.Customerstruste-
commercial sitesbecause deliveryisina timelymanner.SaoPauloshowedthe highestrevenue
share among othersinnercities(Appendix 8) ,outside the cityandmetropolitanareasof brazil
customerare lesslikelyuse e-commercial due tounreliablelogistics andtheyprefertosee andfeel
itemsthe before deciding topurchase(techinbrazil,2015).
The Braziliangovernmentimplementedagrowthaccelerationprogramme (PAC2) particularlyin
termsof infrastructure,of R$958 billion(round€400 billion).This effortwillbe developingthe
logisticstoimprove the e-commerce deliveryaroundBrazil inparticularcitiesoutside the capital or
metropolitanareas,thereforeindicatinggrowthof e-commercial inmore citiesaroundbrazil
(bpostinternational,2014)
Customerbehaviour
Braziliane-commerce revenue bysocial class,Affluent(ClassA) andEstablished(ClassB) accounts
61% of purchasesonline,researchfrom2013 showsthat 97% of citizensbelongingtoclassA and
78% of citizensbelongingtoclassB were online.Emergent(classC) accountfor35%, Restricted
(ClassD) and Subsister(ClassE) accountsfor4% (techinbrazil,2015) (Appendix 9) .Fashionand
accessorieshasthe largestshare amongcustomerusinge-commercial ,itmade up18% of retail
ecommerce transactionsinH1 2014. The nextlargestshare came fromhealthand beautyaids(16%),
(emarketer,2015) (Appendix 10)
8. 0.2.5 Benefits- Benefitsegmentationisthe desiredorsoughtfunctional andpsychosocial benefits,
reflectingthe fundamentalhumanneedsof consumers forthe productor service (Haley1968)
As UnderAmouris a specialistatproducingperformance basedtechnologyclothing,
Under Amourshave several productrangeswhichbenefitthe customers.”Infraredtechnologythat
recirculatesheataroundthe wearer’sbody,Coldbacktechnologydesignedtoreflectheatandkeep
athleticscool inthe sun,and MagZip technologywhichallowsazippertobe pulledwithone hand.”
(prophet,2014) HeatGearArmourVent:“builttohandle the worstheat—it’stougher,driesfaster&
givesyoutrue breathability.”wickssweatawayfromthe body,Anti-odourColdGear:circulates
heat, keepspeopledryandprotected, smusclesforincreasedpower. Heatgear: Moisture
Transport Systemwickssweatawayfromthe body.(underarmour,2015)
0.2.5 Table:Benefits
All the featuresbenefitcustomerspartakinginsportsbymakingthemfeel comfortableandenabling
themto trainlongerto improve sportperformance throughconditioningtheir body.UA products
featuresare functional tomostlyheavyuserswhotrainhardunderweatherconditions.UA product
usestechnologyforindividualtoenhance theirskillsthroughtraining.UA usesthe tagline “Iwill”
whichdifferentiate itself fromNike “justdoit”.
Summary
The segmentationprocesswasusedtounderstandUA targetaudience withinBrazil.The information
establishedafoundationof amore focusedmarketingeffort(smith1957)p193. The purpose of
segmentationprocessistopositionUA brandto enhance customerlifestyleorhelpthemtoachieve
theiraspirationforphysical activitySolomon(1994)
Target audience
Demographic Social class Personality Productusage Geographic Benefits
Male/female
Age 18-40
Future:
40-80 age
(greymarket)
Emergent,
middle-class
and affluent
Achievers
Experience
Heavyusers:
Professional
athletes,aspiring
athletes,sport
enthusiast,dieters,
healthyliving
Age
South, south
east- Sao
Pauloand Rio
Jeniro
Future plans:
north and
north west
Motivated
athletes,keep
athlete dry,
recirculates
heataround
body,wick
sweat,
9. 0.3 Brazilopportunityand threat forUnderArmour(UA)
Opportunities threats
85% (172 million) liveinurbanisedenvironments
,62% of the populationisaged29 or under, peak
at 228 millionin2042, Life expectancy
grown(age 80) ;these indicate the potential
customerbase for UA withinthe Brazilian
market.It statespeople are livingforlonger
therefore aneedtoexercise tomaintaina
healthylifestyle will be importantandUA can
utilise thisopportunityinthe longterm.
Raise of middle class, highdisposal income,
80 millionpeople claimingtobe activelyengaged
inone or more sports, 2014 FIFA WorldCup,
followedbythe 2016 OlympicGames ,Brazilians
purchase performance brandsoverfashionsport
apparel;these showthe potentialpopularity
growthof sportwithinbrazil marketplace.UA
can utilise these eventsandcaterto customers’
needstopromote itsproducts.
Big citiesSao- PauloandRioDe Janeiro will have
the most affluent. classin2020, São Paulo,Rio
de JaneiroandMinas Gerais,combinedwith
EspiritoSantogatherover72% of all e-
commerce revenue:thesecitieswithinbrazil
showsthe mostcustomerprofitabilitypotential
withinbrazil.UA can concentrate totarget these
areas.
Northernregion,underdevelopedcitiesshow
greatestopportunityasmore familiesbecome
middles-classoraffluent;thisshowsfuture
opportunitiesoutside the majorcity,quickly
reactingto thisgrowthareas will gainan
advantage overcompetitors
logisticsInfrastructure improvementto
underdevelopedcitieswithinbrazil,thiswill help
e-commercial sites
Womenhavinglesschildren, agingpopulation;
thisindicates UA will mainly targetedatyoung
heavyusers,therefore thismaycause a decline
inUA products
Economyinstabilityof the countriesthreaten
customersspendinghabits,asinfinancial crisis
consumertendtouse theirmoneywiselya
decrease onluxuryproducts
incomesreflectsconsumptionrate per
household,therefore the emergentmiddleclass,
isbiggestpopulatedsocial classmaysettle for
lowerprice competitorsbrands
Football dominatesbrazil,Nike andAdidashave
strongpresence,footballisthe biggestsport
marketwithinbrazil.
Nike,Adidasandlocal sportsbrandsalready
establishedwithinbrazil
Apple watch;apple are transformingitswatch
intoa healthylifestylesport trackers.Thisisa
directcompetitorwithUnderArmourlongterm
goal ;to enterwearable technologysportgearto
improve consumerperformance
GenerationZ,are not heavyusersof UA
products, theyprefertobe on the internetor
fastfoodchains.They do not like exercise and
follow fashion,therefore brandslike Nike and
Adidasare appealingtothem.
0.3 Table:Brazil opportunityandthreatforUnder Armour(UA)
10. 0.4 Brazilculturalvalue
Culture valuesinfluence all aspectsof consumerbuyer behavioursindifferentcountries.Thiscanbe
the central considerationindevelopingandimplementinginternationalmarketingstrategies. (Doole
& Lowe,2012,p66)
Brazil culture values;The understandBrazilianculture the three mainareastounderstand is;beliefs,
valuesandcustom of specificsituatione.gChristmas,Easteretcthatserve todirectconsumers
behaviour.(Doole &Lowe,2012,p66)
Brazil isone of the world’s mostdiverse placesdue toitsmixture of differentnationalitiesmigrating
to create unique culture andcustom.Brazil has a bigvibrantculture full of funandenjoyment.They
love football,carnival,musicandwell knownfordanceslike sambaandsalsa. (brazil.org,2015)
Brazil is a collectivismsociety theyare very familyorientated;theyare tight-knitted, intimesof
hardshipfamilymemberswill sticktogethertoresolves problems formally. Braziliansvaluetrustand
loyalty whichisbuiltthroughfriendship,therefore productwill have to create valuablerelationships
with Brazilianconsumers. Religionisamajorcultural variable andhas significanteffecton beliefs
and normsas well astaboos (Doole & Lowe,2012,p68) inbrazil 80% of the populationascribesto
the Roman Catholicfaith traditions.
Brazilian generations’ differences
To understandgenerationdifferencesinbrazil Inglehart(1997) states “that historical,societal and
cultural eventsthattake place duringthe formative learningyearsof agenerational cohortwill
impactthe values,attitudesandbehavioursof thatgroupthroughlife” these changestookplace in
brazil as itsgoingthrougha developingphase of anagriculture societytoa post-modernsociety.
The differencescanbe seenthroughgenerationXtogenerationZ.
GenerationX GenerationY GenerationZ
This generation grew up comfortable
to a dominant authority,with
modest expectations. Limited
expertise or confidence in how to
build a business;they were more
comfortable being partof the
multinational enterprises that
dominated the economy after
Vargas’rule. They were idealismfor
a better future and an anti-
authoritarian pointof view; Worried
about the economy, this generation
developed a short-term orientation
and became excessiveconsumers.
They fought for a better future
through protesting against military
control and gained democratically
election. This difficultpath left
members of Generation X risk-
adverse, with a strong sense of self-
relianceand a strong commitment
to their families.
(tammyerickson,2011)
Culture: dictatorship,family,,equal
rightfighters, pessimistic
Brazilian generation Y emerged
motivated with the freedom
they gained from generation X
efforts to make brazil a much
fairer workingenvironment
with the help of government .
This generation developed
excitement about the economy
status of Brazil.This generation
is optimistic,with a desireto
make things better and gain
success.This is becauseof
generation X instilling“you can
be anythingyou want”. This has
enabled this generation to
become a vibrantmiddle-class.
This generation has puts their
family as priority as generation
X. generation Y are social class
oriented as imageplacea big
emphasis on lifestyle.
(tammyerickson,2011)
Culture: democratic,religious,
family,technology, work hard,
optimistic
Generation Z is benefitting from
previous generations efforts. This
generation are tech savvy and image
conscious.They have great interest
in brand image within society. They
are startingto develop their sense of
identity and are anxious to cultivate
a sophisticated self-image.Brands
are seen as status symbols,and they
are not prepared to compromise,
even in hard time. They are concern
with environmental issues as they
have witnessed the deforestation of
the amazon and pollution within
brazil.They are interested in
sustainability.This generation spend
time alone56% explore the Internet
alone,30% play on their own, and a
sad 5% say they hangout alone. They
want to be successful.(Euromonitor
International,2011)
Culture; Democratic,religious,family
oriented, technology, success ,brand
conscious.
11. Summary
The Brazilianculture isveryvibrant,excitingandsociable;thesetraitsare embeddedwithinthe
culture andhave been passedthroughgenerations.Hofstede (2010) illustratespeoplebelief system
and behaviourpattern(Appendix 11) GenerationXvaluesandattitudeswasbasedonfighting
againstdictatorshipandmilitarycontrol fora betterfuture fortheirchildren’s,GenerationYvalues
and attitudeswasmotivatedbytheirparentsgivingthemconfidenceinachievingthe impossible,
thisgenerationisthe drivingforce of the raisingBrazilianmiddle-class,GenerationZisbenefiting
fromparentshard work,theyvalue theirfamiliesandsustainability.Theyare brandconsciousand
have a highusage of the internet.Theyspendvarioushoursalone onthe internetandhave astrong
belief forwhattheysee onsocial media.
UA can use thisinformationtotargetgeneration’svaluesandattitudes.The ethosof the Brazilian
culture andvalue isbasedon hard workingtoachieve success.This philosophyissimilartothe UA
brand positioningthereforeUA can use these generationstoryintoitsmarketingefforts.Generation
Z is brandconsciousare not willingtocompromise therefore there are brandloyal toprestige
brandswithhighsocietyacceptance. UA can utilise this bypositioningitbrandtobe highquality
luxurysportperformance brand.
0.4.1 Strength andweakness of UA in Brazil
Strength
Unique sellingpropositionof innovative
sportsweartechnology(marketleaderinsport
performance apparel inAmerica)
Positionedasa highquality,expensive sport
performance apparel brand
Highbrand presence inthe USA whichshows
credibilitytothe Brazilianconsumers
HighlyintegratedwithAmericanFootball and
Americanbasketballwhichisbecomingan
interesttoBrazilianyoungsters
Acquirednewsportsponsorshipsdeals with
Brazilianfootball team;Sao-PauloFC,
(localisation)
Weakness
Notestablishedinternationally
Productline isa discretionaryitems and
therefore ineconomiccrisisorcut back these
productswill notbe purchasedbycustomers
Team basedinthe America,hasnot expandedor
have any officesin brazil
Veryintensive competition,Nike,Adidas,
Reebokandlocal Brazilianheritage sportbrand,
competitorscaneasilyproduce UA replicas,as
the Braziliangovernmentdoesn’thave aspecific
departmentforpatentcontrols,there isa black
marketinbrazil where people sell counterfeit
brandsat lowerprices
12. 0.5 UA brand positioning
Positioningiscreatingabrand whichhasa competitive advantage andcaterstoconsumerneeds.
Positioningisthe perceptioninwhichcustomerview brandsthroughmarketingeffortsandstatus
withinitscommunity. (Brassington,2006,p358)
UA standsfor workinghardto overcome obstaclestobettercraftthe individual skillstobe a winner.
The brand essence revolvesaroundbeingthe underdog,beingmotivatedtoworkhardto succeed.
The slogan“I will”isemotional whichcapturesthe passion,intensityanddrive forthe individual.UA
productshave functional innovativefeatureswhichare advantages overcompetitors,butthroughits
emotional transparencyithasdevelopedanpersonality whichis describedasattitude clothing.
Competitors personality: brandpersonalityisthe ”setof humancharacteristicsassociated witha
brand” thisis a driverof self-expressivebenefits,brand-customerrelationshipsandthe
communicationof functional benefits, using brandpersonality dimensionsof JenniferLAaker
frameworkwill gainagreaterunderstandingof UA and competitor.(prophet,2013)
Brands Personality brand reflection
Nike Sophisticated,ruggedness,
competence ,
True sportsmanship,champion
and aggressive
Under Armour Sophisticated,ruggednessand
competence
Hard work outmotivation,team
workand aggressive
0.5.1 Table:
Brazil rationvs emotional
Nike andUnderArmour are similarbutbetraydifferentimages. Nike isachampiontopdog witha
tagline “justdoit”, while UnderArmouris an underdogmotivatedtoovercome obstaclestobe a
championthroughhard workand determination. UnderArmourhasanemphasisontrainingand
performinginits promotions.
In Brazil UA marketingeffortswill be towardsemotional positioningthroughbetrayingasporting
and healthylifestyle.In Brazil, brandsdictate social status, individualism;sophistication therefore
emotional lifestyle marketinghastobe associated withprestige andcredible imagery.Brazilians
trust people whotheybuildrelationships with,throughemotionaladvertisingUA will be able to
buildanemotional trustworthy bondtothe Brazilian market, consumerwillbecome brandloyal.The
“I will”ethosisinstilledwithinBrazilianculture thereforemanipulatingandintegratingUA brand
positioningwillhave tobe executed creativitytocapture Braziliansattention
13. 0.5.1 Perception Maps:
Perceptionmapsare insightintocompetitorspositioningwithin amarket,the perceptionmapis
primarilyusedtoidentifycompetitive advantages pointsandpossibleavenuetodifferentiate
productsor brand for consumers. (Brassington,2006,p360)
USA perceptionmap
Brazil perceptionmap
In Brazil UA will positionasa highprestige brandaimingathighusersand affluent social class.
Brazilianperceptionare basedonsocietystatus,thereforepositioningthe brandasa high luxury
sport brandfor seriousathletesandsportpersonal,willmotivateandattractall social classes inthe
categoryof sportwear.Braziliansare brandconsciousand willingtopaythe cost to fulfil needbut
alsosociallyaccepted.
Performance
Leisure
HighpriceLow price
Under Armour
Nike
Adidas
Affluent
Lower- Class
Low user Highuser
UA
Nike
14. 0.6 Recommendationandadaptationfor UA in theBrazilian market
UA shouldadoptsBrazilianvibrantcolourstoitsproducts,Brazilianstakespride intheir
countrycolours ;
UA shouldgaininsightto category spendingbehaviouramongsocial classes andunderstand
whencustomerstrade updue to increase inincomes;
UA shoulddevelop agrey marketsportperformance apparel asbrazil isforecastedtobe an
agingpopulation;
UA is primarya sport andfitnessfocusedbrand,UA shouldtryto adapt tothe Brazilian
culture throughmarketingthroughdifferentactivitiese.g,UA wearforsamba or salsa
dancing,sportperformance gearforphysical workers,egagriculture workers,bricklayers
and miners
UA shouldtargetgenerationZthroughdigital base platform andpromote healthyliving.
therefore buildahealthysocial media platformwhere generationZ can interactwith
sportingactivities withinthe communityandprovide incentives
UA shoulduse the Braziliansuccessstory“nothingtosomething“mentality adoptedinUA
marketingefforts.UA standforunderdogand Brazil has resemblance of the Brazilianculture
withinitscurrentmarketingefforts.
UA can target familieswithincentives,asfamiliesare valuedandatthe core of decision
making;UA can utilise thisculture byofferingfamilyinitiative
0.7 Entrymode
Establishalocationforoffice space inBrazil.License manufacturesin Brazil toavoidpurchasinga
factory cost. Negotiate acontract agreementof percentage of salesandcommission withthe
licenser,Setupadistributionnetwork viaagentsorlocal companiestogetUA withinbrazil
supermarketchainsorsmall sportspecificretailers.Openup UnderArmourspecialist storesin
capital citiestocompete withcompetitors. Establishe-commerce logisticspartnershipsto tocater
for online customers.Create abigBraziliancampaign launch, acquire Braziliansportpersonal tobe
the front manof the campaign.Asthe companieswillbe basedin Brazil thiswill eliminatetariff fees
and take advantage of the “MERCOSUL agreement”
0.8 Conclusion
The report investigatedBrazil marketwithUA opportunitiestoenterthe marketplace.The Brazilian
marketshowsa lotof potential withitsyoungpopulationandgrowingmiddle classwhoare willing
to spendonprestige internationalbrands.The growingof sportsandthe importance of performance
sport apparel consumptionindicatesUA iswell positionedtoenterthe marketasit has the
innovative productsalready.UA will have tocreate a verycreative advertisementtoentice andbuild
relationshipswithcustomers.
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22. Appendix 11
Figure 0.4.1: Hofstede dimensionsof brazil
Results Reasoning
High power distance Brazil is a high power distancecountry due to its family
orientation where older members are respected and make key
decisions on behalf of the family. This translates into the
business organisation of hierarchy structure,managers are
responsiblefor final decision making.
Collectivism As Brazil is a family oriented society, they have bigfamilies and
decisions arebased on family principles.They look out for trust
and loyalty which is builtthrough social meetings and gatherings
to build businessrelationships.Brazilians will alwaysgive
opportunities to people they trust or in their inner circlebefore
seeking partnerships fromless sociablepartners outsidetheir
circle.
Feminine/masculinity Brazil is a feminineand masculine society,meaningit is in-
between “masculinevalues such as achievement and exerciseof
power and feminine values;caringfor others, being less self-
centred”. This stems from the Brazilian attitudes of friendliness
and free spirit. Also females work as much as male figures and
there is an upcoming wave of strongeducated women in Brazil.
High uncertainty avoidance Brazil is a high uncertainty avoidancesociety, with a strong need
for rules and elaboratelegal systems in order to structurelife.
This provides a safer environment in which to live. Due to high
crime levels in Brazil this balances Brazilian life with sociable
encounters with peers.
Normative and pragmatic Brazil is a normativeand pragmatic society.This means they
have traditional principles and arelookingto the future for a
better living. This may stem from parents workinghard to give
better opportunity for their children by sending them to school
in order to have a better future.
Indulgent society Brazil is an indulgentsociety. This means they love enjoyinglife
and have a positiveattitude to each other. They areoptimistic
and enjoy socialising,which stems from family values.
