1. I. PROSPECT INFORMATION
A. Company Name: Sports Authority
B. Type of Business:
SIC Code – 5600 – Retail-Apparel & Accessory Stores
NAICS – 451110 – Sporting Goods Stores
o Common Description: Athletic equipment and supply stores
Sports Authority is a nationwide sporting goods store, consisting of over 460 stores
in 45 states. It recognizes its customers as those who are passionate about the sports that
they play and strive to “run faster, jump higher, hit the ball harder, carry their team to
victory, and more”. They attempt to satisfy these needs with by providing quality brands at
tremendous values, and using their experience as an industry leader for almost a century.
IBISWorld’s industry marketing research report for sporting goods stores claims that
there has been an increase in competition in the past two decades; nevertheless, sporting
goods stores have persistently benefited from their capability to offer customers particular
brands and specialized services. In addition, the presence of 36,929 businesses in this
industry and average annual growth of 0.1% between 2008 to 20013, as found in
IBISWorld’s report, supports the idea that this is a mature industry. However, the $40
billion in annual revenue these companies bring in also supports that this industry is viable.
C. Prospect’s Name: Tom Lane
D. Job Title: Executive Regional Buying Manager (Decider)
E. Other Influential Individuals within the buying firm:
NAME, JOB TITLE DEPARTMENT ROLE IN PURCHASE
PROCESS
Mark Grand, Aurora, IL Store
Manager
Management Initiator, Influencer
Katie Williams, Footwear
Department Manager
Management Initiator, Influencer
John Walcott, Footwear
Department Sales
Representative
Sales User, Initiator, Influencer
F. Key Facts you know about the company and/or buyer:
Sports Authority is a prime name in the sporting goods industry. Sports Authority is known
for its extremely wide selection of sporting equipment, apparel, and footwear. The store is
organized in a fashion that makes it easy to navigate, giving each sport its own section within the
store. Many of Sports Authority’s floor displays are paid and provided for by the corporations
that manufacture the products that Sports Authority sells. The store generally plays trendy but
appropriate music to stimulate the purchasing experience, and all employees are trained to
2. 2
politely greet customers as they enter, as well as ask them if they need help finding anything
specific.
Headquartered in Englewood, Colorado, Sports Authority is one of the nation’s top athletic
equipment providers, operating over 460 stores in 45 of the United States, and is operated by GSI
Commerce, Inc. After multiple mergers, the company operates in conjunction with Aeon,
allowing stores to in Japan under special licensing agreements. The current CEO of Sports
Authority is Darrell Webb who has elected to retire and will be replaced by Michael Foss. The
company’s strategy can be explained in two parts. First, the strategy involves carrying the top
products from every major brand. This results in the store carrying products from several major
competitors including: Nike, Under Armour, Reebok, and more. Secondly, Sports Authority also
carries off-brands, offering consumers an inexpensive alternative to many more expensive
products. Therefore, the store serve two price levels and is great for any consumer looking for
top-end or price-sensitive products for any sport or physical activity.
While the store generally sells its products at the company’s set prices, they offer great
premiums and promotions for loyal customers. Customers who make multiple purchases and are
part of the free loyalty program can look forward to regular coupons in the mail which carry
large discounts on purchases over $50 and $100. This strategy allows Sports Authority to
maintain positive relationships with its customers and maintain a top-of-mind position with
regular buyers, promoting habitual rebuys. While this costs them some money in the short run, it
encourages large and group purchases when a customer may have only been planning to buy one
product.
One of Sports Authority’s main focuses as a corporation is to maintain positive relations
with all of its suppliers. Sports Authority takes constant precautions to sell suppliers’ products
the way they are expected to, advertising them properly, and keeping to the set prices when
necessary. The store also spends time and money training employees to specialty sections. For
instance, sales associates may specialize in baseball equipment, football equipment, or shoes.
This way, a customer with questions can get specific information and specifications on whatever
products they may have questions about.
Sports Authority’s overall objective is to get in tune with the consumer’s passion and help
them to accomplish their physical and athletic goals. They do this by carrying high quality, name
brand products, and employing courteous, knowledgeable employees with high expertise in their
available products. This way, the consumer feels that they are always making the right choice by
shopping at Sports Authority stores.
G. Buying Decision type and why:
The buying decision type for this buyer will be a modified re-buy. The reason for this is that
Sports Authority already carries a solid array of Under Armour products, including football
cleats. In result, they have already deemed Under Armour and its products a match for meeting
the company’s interest and objectives. We will only be attempting to add a new shoe to the
existing selection of Under Armour football cleats within Sports Authority’s stores. Therefore,
this purchase is likely to involve a limited search, rather than a habitual rebuy, which will require
Under Armour to establish an understanding of how this new product and its innovative features
are capable of meeting the needs of Sports Authority, and their customers, that are not currently
being satisfied to the fullest.
3. 3
As for the purchase frequency, the purchase will be pulsating. Sports Authority will
generally be making large, bulk orders of the product at the beginning of the summer and the fall
seasons (coordinating with summer football camps and the beginning of the actual football
season in fall) and making smaller restock orders throughout the year. The primary bulk of the
orders will be ordered at times when large volumes of sales are expected and small order
restocking will enable the store to keep up with customer demand. Due to Sports Authority’s
implications within their business strategy of providing top brands to their customers, the store’s
search may be limited to a few select brands with high equity. Purchasing products from
companies that do not fit this image would diminish their company image in the minds of their
customers. Due to the high volume of competitors, there are low switching costs for the
consumer. Therefore, the damage to their company image could decrease their number of
customers and sales.
H. Anticipated Buyer Needs
Type of Need Anticipated Buyer’s
Needs
Why/How Important?
Functional Providing High Quality,
Top-End Products
This is very important. Sports Authority must be
consistent with their company image while they
satisfy their customers’ athletic needs.
Well constructed
Increases performance
Knowledge &
Psychological
Understanding the
Technology Inside the
Products
This is highly important. It provides information
that supports the modified rebuy, and will allow
sales personnel to effectively communicate the
benefits of the product to the consumer,
increasing the likelihood of making sales.
Training pamphlets and session
FAB video for customers
Knowledge of superior offerings
Increasing sales, leading to an increase in
a salesperson’s self-worth
Psychological Providing Strong Brand
Names and Offering Buy-
Backs
This is highly important. It is a part of Sports
Authority’s company goal, and it provides
themselves and their customers with a sense of
low risk, pride, and satisfaction. Offering buy-
backs decreases the risk of purchasing and
holding excess inventory.
Strong brand names decrease risk
Increases customer’s self-image
Buy-backs decrease risk
Functional
Social
Keeping Up with
Competition
This is highly important. Sports Authority needs
to remain competitive in this mature industry.
They also need customers to perceive them as
providing desired brands or they could lose their
reputation.
4. 4
Retaining/building a quality social image
Maintaining competitive offerings
Situational Meet Delivery Needs to
Stores Spread Across
Illinois and Gives
Extended Payment Periods
This is highly important. The product will need
to be delivered in various shipment sizes to
Illinois stores when needed. Due to size of
purchase, extended payment periods could help
keep Sports Authority’s cash flow strong.
Timely, customized deliveries
Extended payment periods
There were a total of five anticipated buyers needs for Sports Authority that were deemed
important for consideration. They included a functional, knowledge and psychological,
psychological, functional and social, and situational need. The functional need pertained to
Sports Authority’s need for providing high quality, top-end products, which is stated within their
company mission. This need is significant, because Sports Authority must promote a consistent
company image while they satisfy their customers’ athletic needs. The combined knowledge and
psychological need for Sports Authority is understanding the technology (or features) inside the
product. This is important, because the information affects the buying decision process (modified
in this case), and sufficient information allows the sales personnel to effectively communicate
the benefits of the product to the consumer, increasing their ability to make sales (which are
benefits of knowledge) and therefore increase their sense of self-worth as an effective employee
(which is the psychological benefit). In addition, educating customers can further stimulate sales
and decrease the time of the selling process. The dominantly psychological anticipated need of
providing strong brand names also came from Sports Authority’s company mission, and the need
of receiving buy-backs is one typical of retail stores. Providing strong brand names is important,
because it allows Sports Authority to achieve a part of the company mission and it provides
themselves and their customers with a sense of low risk, pride, and satisfaction within the
purchase. In addition, offering buy-backs satisfies the need of decreasing the risk of purchasing
and holding excess inventory for Sports Authority. The functional and social need identified was
Sports Authority’s need to keep up with competitors and remain a reputable social image. This is
a functional and social need, because they must remain competitive in this mature business
industry with many alternatives, and they want to be perceived by their consumers as the best
place to shop for their sporting good needs, and if they do not they could get lost in the crowd of
competitors and lose top-of-mind awareness levels with current and prospective customers.
Lastly, the situational needs of meeting the delivery needs to stores spread across Illinois and
extended payment periods are essential, because Sports Authority needs reliable delivery in the
periods the product has demand from consumers, and because of the nature of these orders tend
to be large, it is important that Sports Authority receives an extended payment period so that it
can remain a strong cash flow during payments.
II. SALES CALL OBJECTIVES:
ADAPT-RELATED OBJECTIVES FINAL PRESENTATION OBJECTIVES
1. Establish Rapport & Assess Prospect’s
Situation
1. Reinvestigate Needs
2. Discover & Confirm Prospect’s Needs 2. Co-create and Validate Solutions
5. 5
3. Confirm Sales Presentation 3. Earn Commitment to the Sale
III. IDENTIFICATION OF TOTAL MARKET OFFERING
Under Armour a US manufacturer and retailer of performance sportswear and
accessories. It was established in 1995 when the special teams captain at the University of
Maryland, named Kevin Plank, decided there had to be some product that was better than the
cotton T-shirts that were drenched with his and his teammates’ sweat after every practice. He
found the solution in microfiber materials and founded Under Armour. According to The Wall
Street Journal, the initial IPO was in 2005 and was the most successful IPO in the United States
since the year 2000. CEO Kevin Plank used his success in sports apparel and aptitude for product
innovation to expand into serving over apparel and accessory needs for over 15 different
professional and recreational sports in the first fifteen years, including: Football, Baseball,
Basketball, Gymnastics, Rugby, Tennis, and more. Under Armour is headquartered in Baltimore,
Maryland and has a global presence with over 109 US retail locations and international locations
in the Netherlands, China, Hong Kong, and Canada. Under Armour’s largest retailing contracts
are with Dick’s Sporting Goods and Sports Authority, making up 26% of their revenue in 2011,
according to Trefis stock reviews.
Under Armour focuses on differentiating itself from industry competitors by establishing
itself as an industry benchmark for innovation, quality, and service. This is reflected through the
company mission, which states, “Respect the UGOP (Universal Guarantee of Performance).
Every product we build must be better than what’s currently available on the market – best in
class. Every product must be field tested, and every product must make athletes better. That’s our
guarantee.” According to Trefis company analysis of Under Armour, this differentiation is
requiring Under Armour to battle Nike and Adidas for the most effective and efficient research
and development operations. In addition, Under Armour is also strongly concentrating on
footwear and women’s apparel, as it is seeing the greatest returns in these departments. Under
Armour’s differentiation strategy and focus on footwear and women’s apparel has shown signs
of benefit as it recorded a 23% increase in revenue for the first and second quarter of 2013,
increased its net operating income outlook 24-25% for the year, and according to CNBC’s “Mad
Money with Jim Cramer”, as of July 2013 Under Armour’s stock is more appealing than Nike’s,
due to its high increases in revenue, and Under Armour boasted its newest innovations while
Nike, still remaining the top industry giant, claimed it needed to amp-up its innovation. In result,
Under Armour is implementing its business strategy successfully and putting the pressure on the
previous industry giants, including Nike and Adidas.
As a result of Under Armour’s innovative nature, they have developed a new product
offering. This product is an innovative football cleat that is inspired by NFL star athlete Cam
Newton, and therefore named the Cam Highlight MC. The new Cam Highlight MCs from Under
Armour include such innovative features as an outsole made of Pebax® plates, cushioning
technology, and form-fitting CompFit® ankle construction. The result of these features are that
Pebax® offers lightweight durability and traction, cushioning technology provides comfort and
durability in the heel and toe regions, and CompFit® provides ankle stability and protection.
Together, these advantages lead to customers that are equipped with a well-branded, high
quality, top-end cleat that will propel them toward their athletic goals.
The following statements are additional offerings of significant importance to buyers and
customers, outside of the physical product offerings, that are presented by Under Armour and the
6. 6
Cam Highlight MCs. Under Armour provides the buyer and customers with sufficient knowledge
of the product to understand its benefits, which stimulates sales. Under Armour has a strong
brand name and buy-back offerings that decrease the risk of purchasing for buyers and
customers. The Cam Highlight MCs supply retailers with an innovative, competitive product that
keeps their offerings competitive. Lastly, Under Armour has the ability to deliver custom orders
across the nation with extended payment periods, which increases purchasing options and allows
buyers to remain a higher cash flow throughout payment periods.
In conclusion, Under Armour believes that the total benefits that it is able to provide, as a
company and through its Cam Highlight MC product, would allow it to satisfy the company
needs and objectives of the sporting good retailer Sports Authority, as explained in the matrix
below. Therefore, Under Armour plans to initiate the selling process between itself and Sports
Authority to stimulate the recognition of Sports Authority’s “needs gap” that could be satisfied
by Under Armour’s Cam Highlight MCs.
TOTAL MARKET OFFERING – FAB MATRIX
PROSPECT’S
NEED OR
BUYING
MOTIVE
FEATURE ADVANTAGE BENEFIT
Providing High
Quality, Top-
End Products
The new Cam
Highlight MCs from
Under Armour
include an outsole
made of Pebax®
plates, cushioning
technology, and
form-fitting
CompFit® ankle
construction.
Pebax® offers
lightweight durability
and traction, cushioning
technology provides
comfort and durability
in the heel and toe
regions, and CompFit®
provides ankle stability
and protection.
Keeping consistent with
their company image, Cam
Highlight MCs will offer
Sports Authority the ability
to equip customers with a
well-branded, high quality,
top-end cleat that will
propel them toward their
athletic goals.
Understanding
the
Technology
Inside the
Products
Issuing
informational
pamphlets and free
training sessions in
Aurora, Illinois.
Training pamphlets will
educate the Sports
Authority buying center
and sales force on Cam
Highlight MC’s product
benefits. A free training
session at Under
Armour’s Aurora,
Illinois outlet center will
provide the sales force
further selling points
and techniques to
improve their sales.
Sports Authority will see
the benefits of the modified
rebuy, turn knowledge of
product benefits into more
efficient selling, and a
training session in Aurora
will increase the number of
sales made by the sales
force and their self-worth
(through the satisfaction of
being well equipped and
increasing sales
performance).
7. 7
A thirty second FAB
video to be played in
stores on iPads and
the online shopping
center.
The thirty-second FAB
video on iPads in the
stores and on the online
shopping center will
provide customers with
engaging and concise
information that shares
the product benefits.
Knowledge of product
benefits will stimulate need
recognition and could
promote Cam Highlight
MCs into the customer’s
choice set, stimulating in
store and online purchases.
Providing
Strong Brand
Names and
Offering Buy-
Backs
Under Armour is a
globally recognized
manufacturer and
sponsor of NFL
athletes. The Cam
Highlight MCs are
inspired and worn by
a 2011 NFL first
round pick, Panthers
quarterback, Cam
Newton.
Under Armour will
provide Sports
Authority with a top
named brand and NFL
star affiliate that will
provide itself and its
customers reduced
purchasing risk and an
increased self-image
through gearing-up like
the pros.
The benefit is that Sports
Authority meets its
company objective of
holding strong brand names
and the low purchasing risk,
high satisfaction being
perceived by customers will
increase Sports Authority’s
sales; thus, increasing its
own satisfaction.
Under Armour owns
its own outlet stores
in 109 locations.
Under Armour’s strong
outlet presence makes it
able and willing to buy-
back up to 20% of non-
purchased items at up to
80% of the MSRP.
This reduces Sports
Authority’s risk of buying
Under Armour’s Cam
Highlight MCs and holding
excess inventory.
Keeping Up
with
Competition
Sports Authority’s
competitors have
bought Cam
Highlight MCs.
By selling Cam
Highlight MCs to Sports
Authority, Sports
Authority will be able to
provide competitive
offerings and enhance
its ability to satisfy
customer needs.
Customers perceive Sports
Authority as an effective
retailer. Every sale of the
Cam Highlight MCs will be
a sale that Sports Authority
would have otherwise loss
to competition and is
satisfying the need of a
consumer, again solidifying
the top-of-mind awareness
Sports Authority wants.
8. 8
Meet Delivery
Needs to
Stores Spread
Across Illinois
and Gives
Extended
Payment
Periods
Under Armour
provides customer
order sizes in
shipments of 10
units (pairs of shoes)
and guarantees
shipments will arrive
within 24 hours of
the intended
delivery.
This gives Sports
Authority the ability to
highly adjust their order
size based on demand
forecasts, and provides
comfort that their
products will be
delivered timely.
Sports Authority’s increased
purchasing options decrease
the likelihood of excess
product, and on time
delivery allows for better
planning of inventory
management and in-store
advertising. Both may
potentially decrease costs.
Under Armour
provides a 90 day
extended payment
option.
This decreases Sports
Authority’s need to
spend cash now.
Sports Authority can
maintain a stronger cash
flow throughout the
payment period.
Due to the request for a limit of 5 F-A-B paragraphs, “Meet Delivery Needs to Stores
Spread Across Illinois and Gives Extended Payment Periods” need and the buy-backs
portion of the “Providing Strong Brand Names and Offering Buy-Backs” need have been
eliminated from the FAB paragraphs (the conversation regarding this information was
held on 9/17/13, in class, between Mitchell Wehrenberg and Dr. Humphreys).
Need#1: Providing High Quality, Top-End Products
Sports Authority aims to target consumers gunning for top-end, high quality performance
gear and footwear, as well as those looking for more price-sensitive options. The new Cam
Highlight MCs from Under Armour are a perfect match for those consumers looking for top-end,
unbeatable quality. These shoes include an outsole made of Pebax® plates, cushioning
technology in the rearfoot and forefoot regions, and form-fitting CompFit® ankle construction.
Translating the advantages of these materials, Pebax® offers lightweight durability and traction,
the cushioning technology provides comfort and durability in the heel and toe regions, and
CompFit® provides ankle stability and protection. Wearing Cam Highlight MCs means arming
oneself with the ability to move faster, with less weight, in any direction with protection and
stability built inside and outside of the shoe, carrying oneself and the team safely to victory.
Therefore, Cam Highlight MCs will offer Sports Authority the ability to remain consistent with
their mission and equip customers with a well-branded, high quality, top-end cleat that will
propel them toward their athletic goals.
Need#2: Understanding the Technology Inside the Products Part I
Sports Authority has built its company mission around helping customers reach their
performance goals. They cannot do this without thorough knowledge of the products they sell
and the benefits of those products. With the purchase of Under Armour’s Cam Highlight MCs,
Under Armour will provide Sports Authority with training pamphlets and a free training session
at Under Armour’s Aurora, Illinois outlet location. The pamphlets are will educate the buying
center and sales force on the product benefits of the Cam Highlight MC. Under Armour’s free
training session is available to further equip the Sports Authority sales force with additional
selling points and techniques that may be exceptionally beneficial to less experienced sales staff.
9. 9
Through the knowledge provided in these pamphlets and the free training session, Sports
Authority will be efficiently equipped to understand the advantage of the modified rebuy and
share the benefits of the Cam Highlight MCs to their customers. In result, the advantage of the
sales forces’ ability to effectively connect the customer’s performance goals with the benefits
offered from this product in turn offers Sports Authority the benefit of making them an effective
salesperson that achieves the company mission, increase sales, and increases their self-worth
through being an effective employee.
Need#3: Understanding the Technology Inside the Products Part II
Under Armour understands that Sports Authority provides several footwear and football
cleat products that they intend to sell, and therefore may want a way for customers to learn about
the benefits of the Cam Highlight MC cleat as efficiently as possible so that the sales force may
be as effective as possible. Under Armour plans to respond to this need by providing a 30 second
F-A-B video that will be played on iPads in the footwear department of Sports Authority’s and
will also be playable online in the Sports Authority online retail store. This video will engage,
educate and share the benefits of the Cam Highlight MCs with customers at little opportunity
cost for them. In result, this video will benefit Sports Authority by helping activate the
customer’s need recognition, putting the Cam Highlight MCs into the customer’s choice set, and
possibly finishing the consumer’s selection process; therefore, stimulating and increasing the
efficiency of sales both in stores and online.
Need#4: Providing Strong Brand Names
Part of Sports Authority’s mission is to hold the top name brands in the performance
industry. The Under Armour brand is a globally recognized manufacturer, sponsoring several
professional athletes and teams, including athletes from the NFL. Furthermore, the Cam
Highlight MC is inspired and worn by one of the NFL first round picks from 2011, Panther
Quarterback Cam Newton. In result, Under Armor’s Cam Highlight MCs provide the well-
established Under Armour brand name (that is turning heads with its product innovation, quality,
and strong increases in revenue and stock value) in combination with the name of an NFL star
athlete that will surely increase the prestige of the product in the mind of customers, and
therefore decreases the purchasing risk for Sports Authority and their customers. By holding this
top-end product, Sports Authority is not only benefitting from satisfying its company mission
and a low risk, highly reputable brand name, but it is also able to share these benefits with its
customers in the form of a dependable, secure, and self-rewarding purchase that will result in an
increase in sales and reassurance for Sports Authority’s purchase of the Cam Highlight MCs as
well.
Need#5: Keeping Up with Competition
Sports Authority is operating in a mature industry; therefore, it is critical to them to
maintain a reputable image that consists of providing customer demanded, competitive product
offerings, not only for their social image, but also for their ability to remain competitive against
the many alternatives. Under Armour’s Cam Highlight MCs are its newest, high quality, well
branded athletic footwear that has already been purchased by Dick’s Sporting Goods, Eastbay,
Sports Unleashed, and more. Thus, the advantage of Sports Authority’s buying Cam Highlight
MCs is the fact that it will allow them to remain competitive with what alternative retailers have
to offer and remain an effective shopping location in the mind of consumers. The benefit is that
10. 10
for each time they sell a pair of Cam Highlight MCs, Sports Authority is gaining a sale that
would have otherwise been lost to competitors, who would also be satisfying their customers’
needs. Therefore, by providing this product they remain competitive, increase sales, and sustain a
quality social image for being an effective retailer.
IV. COMPETITIVE SITUATION PROFILE
Competitor Comparison Chart #1: Strengths & Weaknesses
KEY COMPETITORS STRENGTHS WEAKNESSES
Nike Well-known brand
Large scale
marketing efforts
High quality
product
Internationally
popular
Factory and labor
lawsuits
Expanding into markets
they aren’t experts in
Sponsored athletes in
legal and moral scandals
Adidas Well-known brand
Large scale
marketing efforts
Dominates soccer
apparel industry
Internationally
popular
Lower price
Shrinking in popularity
Scrutiny because of
labor issues
Lower production
quality
Low innovation
Competitor #1 – Nike
Nike is an extremely popular and high quality brand. Its quality is matched by its marketing
efforts across all different types of media and is a tough competitor for Under Armour. However,
its weaknesses and lack of innovation that Under Armour has produced in the footwear category
make it a less desirable selection. While Nike is internationally popular, it is also known for certain
times it has faced heavy scrutiny for its factory conditions overseas. This was a big blow to Nike’s
reputation and business as a whole. In addition, Nike is known for sponsoring multiple athletes
who have gotten into legal trouble or received scrutiny for sexual scandals. These seemingly small
11. 11
black marks on Nike’s reputation have lost them market share in some cases. Under Armour offers
sponsored athlete Cam Newton who is an overall positive role model and featured athlete for the
cleats Under Armour is selling. Under Armour is also highly known for their innovation. This
innovation is highly present in the Cam Newton cleats which feature a high-boot ankle shape. This
innovation, coupled with Under Armour’s matching quality, makes it a stronger company to
purchase athletic footwear from.
Competitor #2 – Adidas
Adidas is also a very popular brand with a quality product. Adidas is well-known and
possesses a matching large scale marketing campaign. While it is still a popular brand, Adidas is
slowly shrinking in popularity due to the increasing popularity of Nike and Under Armour and
its slightly lower quality. Adidas is also known for dominating the soccer apparel industry. The
reason that this is a major strength for the company overall is that soccer is such a popular sport
around the world and this increases its market share drastically. However, this extreme focus on
soccer causes Adidas to lower its focus on other sports, leaving them out of the consumer’s
choice set for such sports as football, which Under Armour is becoming dominant in. Adidas
also outsources almost all of its production around the world, which some believe lowers the
production quality and encourages scrutiny of the brand. Adidas also stuck with many of the
same general styles of earlier products. Under Armour’s high quality and high focus on the
category of football, in addition to its constant innovation and boldly different products, makes it
the better choice in this field.
Multi-attribute Competitor Comparison
FEATURE UNDER ARMOUR NIKE ADIDAS
Imp Perf I*P Imp Perf I*P Imp Perf I*P
Quality 10 10 100 10 10 100 10 8 80
Logistics 6 9 54 6 8 48 6 7 42
Apparel
Features
10 10 100 10 8 80 10 7 70
Cost 5 7 35 5 8 40 5 9 45
Branding 10 10 100 10 10 100 10 7 70
Company
Structure
4 7 28 4 7 28 4 6 24
Sales Service 9 9 81 9 8 72 9 7 63
Total Score 498 468 394
V. ADAPT Sequence
Need#1: Providing High Quality, Top-End Products
Assessment Question: Tell me about some of your suppliers and the qualities and features they
posses?
12. 12
Discovery Question: What are some of the positive and negative aspects of doing business with
these suppliers?
Activation Question: In reference to your business, what are some of the effects caused by the
negative aspects of doing business with your suppliers?
Projection Question: If you were able to elude these implications, what would it mean for your
business?
Transition Question: Therefore, we agree that if you were able to avoid the negative aspects
you are currently experiencing with suppliers, it would result in increasing sales while decreasing
excess inventory?
Need#2: Understanding the Technology Inside the Products Part I
Assessment Question: Share with me how thorough your current suppliers are in terms of
sharing knowledge about products with your company and its sales force?
Discovery Question: How satisfied are you with this level of information sharing?
Activation Question: In what way has insufficient information and understanding of the
suppliers’ product affected your company and its sales staff?
Projection Question: What would reaching a sufficient level of information and knowledge of
the supplier’s product mean for your company and its sales staff?
Transition Question: Do we agree that properly educating your company about a supplier’s
product would increase the sales staff’s ability to effectively communicate the benefit of the
product to consumers and drive an increase in sales?
Need#3: Understanding the Technology Inside the Products Part II
Assessment Question: Share with me how thorough your current suppliers are in regards to
displaying product benefits directly to your customers?
Discovery Question: How satisfied are you with this level of information sharing?
Activation Question: In what way has insufficient demonstration of product benefits to
consumers affected your sales or customer satisfaction?
Projection Question: What would improving information sharing and demonstration of product
benefits to your consumers mean for your sales and product interest?
Transition Question: Do we agree that providing customers with better knowledge of the
product benefits would increase customer awareness, interest, and your overall sales?
13. 13
Need# 4: Providing Strong Brand Names
Assessment Question: Share with me the impression your customers seem to have regarding
your current suppliers?
Discovery Question: How satisfied are you with the level of quality, security, and reward
perceived by your customers, in regards to your current suppliers’ products?
Activation Question: In what way has negative or insufficient brand or product recognition
affected your sales or customer interest?
Projection Question: What would a prestigious and professionally endorsed brand name mean
for your sales and product interest?
Transition Question: Do we agree that carrying a brand with prestige in the sports industry as
well as a product endorsed by a popular and respected professional NFL player would increase
customer awareness and interest, as well as sales?
Need#5: Keeping Up with Competition
Assessment Question: Share with me the degree of competitive advantage you gain by carrying
the latest products from your suppliers?
Discovery Question: How satisfied are you with selection of football cleats you are currently
providing, in terms of remaining competitive?
Activation Question: In what way would neglecting to carry the newest products manufactured
by your suppliers, as well as carried by your competitors, affect your competitive advantage and
sales?
Projection Question: What would carrying the newest, innovative, and well-endorsed product
mean for your business and sales?
Transition Question: Do we agree that carrying the newest and most innovative product,
possibly already carried by your primary competitors, would be imperative to remaining
competitive and continuing your success?
14. 14
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valuation/2013-02-13>.
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2013
Cramer, Jim. "Cramer’s Performance Test: Under Armour vs Nike." Mad Money with Jim
Cramer. Ed. Lee Brody. CNBC, 30 July 2013. Web. 17 Sept. 2013.
<http://www.cnbc.com/id/100925505>.
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Competitors. N.p., n.d. Web. 26 Sept. 2013.
Gelsi, Steve. "Under Armour's IPO Doubles: First U.S. Stock to Rise 100% in Trading Debut in
Five Years." Market Watch. The Wall Street Journal, 2005. Web. 17 Sept. 2013.
<http://www.marketwatch.com/story/under-armour-up-100-in-biggest-us-open-since-
2000>.
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15. 15
"Sporting Goods Stores in the US: Market Research Report." IBISWorld. N.p., Aug. 2013. Web.
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