Under Armour Competitor and Market Analysis

1. Under Armour:
Competitor and
Market Analysis
Brian Teufel
MGT 490-004
Assignment #2
Professor McDermott
March 17, 2011

4. Company PA Sales Total Sales PA sales as % % of sales
(in millions) (in millions) of total sales spent on R&D
Under Armour $853 $1,060 81% 33%
Nike $1,300 $19,014 7% 12%
Adidas $1,150 $11,990 9% 5%
Columbia $400 $1,484 27% 1%
Sportswear
Company
Sugoi $34 $85 40% 2%
PUMA $425 $2,862 15% 4%
Quiksilver $250 $1,834 14% 3%
North Face $300 $1,400 21% 3%
New Balance Private Private Private Private
Company Company Company Company

5. Competitive
Advantage
Low Cost Differentiation
• New Balance • Nike
• Columbia Sportswear • Adidas
Company • Under Armour
• Champion
Broad
Target
Competitive
Scope • PUMA
• The North Face
• Quiksilver
Narrow
Target

6. Price
Low High
•New Balance
Low
•Champion
•PUMA
Quality
•Columbia
Sportswear
•Quiksilver Company
•The North Face
High
•Adidas
•Nike
•Under Armour

7. 1% 2% Sales
4%
9% U.S.
Europe
20% Asia/Pacific
64%
Rest of North America and South
America
Africa
Australia

8. -UA = 4% -UA =5%
-Nike = (-6%) -Nike = 0%
-UA = 23.5% -Adidas = 7%
-Nike = 8% -Adidas = 2%
-Col. Sportswear = 13% -Col. Sportswear = 30%
-Adidas = 7% -Quiksilver = (-8%)
-Col. Sportswear = 22% -Quiksilver = 4%
-PUMA = (-3%) -PUMA = (-2&)
-Quiksilver = (-9%)
-PUMA = 22%
-UA = 0%
-Nike = 20%
-Adidas = 16%
-UA = 0%
-Col. Sportswear = 13%
-Nike = 20%
-Quiksilver = N/A
-Adidas = 14%
-PUMA = -3%
-Col. Sportswear = 10%
-Quiksilver = (-9%)
-PUMA = 22%

9. Company Core Competence/Competencies Core Competencies -
Weak/Moderate/Strong
Under Armour Innovation, Quality, R&D Strong
Nike Inspiration, Innovation, Strong
Brand Image/Loyalty
Adidas Innovation, Technology, Strong
Sustainability
Columbia Distribution, Outerwear Moderate
Sportswear
Company
Sugoi Quality, Bicycle-wear Moderate
PUMA Sustainability, Value, Moderate
International Football
Quiksilver Surfwear, Quality Moderate
North Face Innovation, Outerwear Moderate
Environmental Awareness
New Balance Footwear, Innovation, Customer Weak
Service
Champion Comfort, Quality Weak

10. Company Key Brands Product Scope
Under Armour Under Armour Apparel, Footwear, Accessories
Nike Nike, Nike Golf, Air Jordan, Apparel, Footwear, Sporting
Cole Haan, Hurley, Equipment, Accessories, Caps
Converse, Umbro, ect…
Adidas Adidas, Reebok, Taylor Apparel, Personal Care, Footwear,
Made Golf Sporting Equipment, Accessories,
Caps
Columbia Columbia Sportswear, Apparel, Footwear, Accessories
Sportswear Mountain Hardware, Sorel,
Company Pacific Trail
Sugoi Subsidiary of Dorel Apparel, Accessories
Industries Inc.
PUMA Puma, Cobra Golf, Tretorn Apparel, Footwear, Sporting
Equipment, Accessories
Quiksilver Quiksilver, DC, Roxy, Hawk Apparel, Footwear, Accessories,
Sporting Equipment
North Face Subsidiary of VF Corporation Apparel, Sporting Equipment,
Camping Equipment, Accessories
New Balance New Balance, Dunham, Apparel, Footwear, Accessories
Aravon, Warrior, Brine
Champion Subsidiary of Hanes brands Apparel, Footwear, Accessories

11. Company Target Market Market Power
(Low/Moderate/High)
Under Armour Male and female, anyone who wants to High
enhance performance and comfort
Nike Male and female, ages 18-35, physically High
active, athletes
Adidas Male and female, physically active, Moderate
athletes
Columbia Male and female, physically active, loves Moderate
Sportswear outdoor activities
Sugoi Male and Female, physically active, Low
loves biking and running
PUMA Male and Female, physically active, Moderate
loves soccer (international football)
Quiksilver Male and female, young adult (ages 15- Low
35), love warm weather activities
(surfing/skating)
North Face Male and female, young adult (ages 16- Low
35), love cold weather activity
New Balance Male and female, older adults (ages 35+), Low
love walking/running
Champion Male and female, hard working, Low
physically active, all ages

12.  Performance Apparel is defined as anything that
is worn which enhances the performance of the
user.
 New and existing companies are attempting to
break into the PA industry every day due to the
rapid growth.
 The top three companies in the global PA
industry include Nike, Adidas, and Under Armour
 Gross sales come from company owned stores
and third party retailers.
 Sell products of quality which enhance
performance while providing comfort to the user.

13. Global Performance Apparel Sales ($ billions)
10
8 7.6
6.4
6
Global Performance
4 3.3 Apparel Sales ($
2.8
billions)
2
18% Inc. 52% Inc. 15% Inc.
0
2002 2006 2010 2014
• The Performance Apparel industry has grown
rapidly in the past four years and it is expected
to continue to grow rapidly the next four years.

14. 15% 9% 22%
2%
4%
7%

15. Trend Opportunity/Threat Comment
Sales increase (15%+) Opportunity Will continue to grow
Quality over price Opportunity Consumers want value for their
money
Increase in technological Opportunity Compression apparel is currently
innovation the big thing in PA
People becoming more Opportunity Market to entire market, not
physically active particular segments
Increase in cost of raw Threat Find ways to negate such costs
materials/resources
Eco-friendly design Opportunity More consumers will buy product
and feel they are helping the
environment
Fashion friendly Opportunity Consumers feel better when wearing
something fashionable (esp.
women)
New competitors entering Threat Create high barriers to entry and
market superior product
Moving towards all ages Opportunity Market to entire market, not
(older generation) particular segments

16. Company Corporate Social Mission Marketing Vision/Strategy
Responsibility Statement
Under Innovation, Inspiration, Make all athletes -Athlete Be the world’s #1
Reliability, and Integrity better through Endorsements performance
Armour passion, science, -Commercials/ athletic brand
and the relentless Slogans (“Click
pursuit of clack” and “We
innovation must protect this
house”)
-Event and team
sponsorships
Nike Sustainability, Bring inspiration -Brand Image Experience the
Innovation, Quality and innovation to -Brand promotion emotions of
every athlete in the -Athlete and team winning and
world. sponsorships crushing the
competition.
Adidas Sustainability, Strive to be the -Brand Image Enhance social and
Innovation, global leader in the -Focus on env. performance
Environmental sporting goods international in the company
Awareness industry with sports marketing and the supply
brands built on a -Athlete and team chain, thereby
passion for sports sponsorships improving the
and a sporting lives of the people
lifestyle making our

17. Company Corporate Mission Marketing Vision/Strategy
Social Statement
Responsibility
Columbia Responsible Provide consumers -Increase on-line Continue to
business practices the greatest marketing internationalize
Sportswear balancing quality outdoor -Stick to what we and provide high
economic goals gear while keeping know and show quality products to
with social and them safe consumers outdoor
environmental advantage of enthusiasts
considerations products
Sugoi Innovation, Make excellent _Increase global Every garment that
Excellence, Value performance awareness of carries the Sugoi
athletic wear for brand name is still
bikers and various _Prove quality designed,
other activities and uniqueness developed, and
to consumers made in Vancouver,
Canada
PUMA Sustainability, Stay true to our -Sponsor PUMAvision- create
work towards a values; inspire the international a safer, more
more eco-friendly passion and talent football and peaceful, and more
world, global of our people cricket players creative world than
peace, Quality working in and teams we know today
sustainable, -Increase

18. Company Corporate Social Mission Statement Marketing Vision/
Responsibility Strategy
Quiksilver Touch people Become the leading Focus is social Maintain our core focus
worldwide and global youth apparel media and roots while bringing
improve quality of company our lifestyle message of
life, quality board riding,
independence, creativity
and innovation to this
global community
North Send famous athletes Never stop exploring -Goal is to Our passion is beyond
overseas and give increase brand setting records and
Face back as much as they awareness achieving fame, it's all
can; innovation; -Social about changing our lives
consumer-focused marketing and those people who
inspire us to aim for
extraordinary dreams
New New Balance Demonstrating -Word of Continue to give back to
Foundation; Make responsible leadership, mouth all communities and
Balance consumers value we build global brands -Athlete provide excellent
worth their money that athletes are proud sponsorships products to excellent
to wear, associates are consumers
proud to create and
communities are proud
to host
Champion Ethical business Anticipate what -Social media world-class consumer
practices, protect consumers want and -Athlete goods company with a
environment, quality innovate to meet those endorsements distinctive competence
needs in comfort, fit, in operating a low-cost
and value global supply chain

19.  Social media has impacted the PA industry
positively, increase in sales due to easier
communication between consumers.
 Consumers can give feedback (+ and -) in a
relaxed environment.
 Consumers can also socialize with other
consumers to discuss PA products.
 Marketing has been most effected by social
media with sites such as
Facebook, Twitter, Foursquare, and LinkedIn.
◦ PA companies can market to larger groups of consumers
at a much cheaper cost.

20.  Nike and Adidas are Under Armour’s primary
competition in the performance apparel industry.
 Nike and Adidas have jumped UA in total PA sales
even though PA accounts for only 7% of Nike’s and 9%
of Adidas’s total turnover.
 Under Armour would be the global leader in
performance apparel sales if they were as successful
internationally as they currently are in the U.S.
 Asia and North America are fueling growth in the
performance apparel industry with Europe also
growing.
 The performance apparel market is growing at a rate
of higher than 15% and it is expected to continue to
increase for the for seeable future.