Running Head: MARKETING 1
MARKETING 14
Principles of Marketing
Institutional Affiliation
Student Name
Introduction
Kevin Plank, a former Fork Union Military Academy football player, established Under Armour in 1995 upon noticing that the cotton shirts of his football team at the University of Maryland were always soaked in sweat and noted better items for his team (Kraft, P., & Lee, J. W. 2009). He wanted to create shirts that were always cool even in the hottest of weather conditions. Plank went ahead and designed his prototype for his team, which attracted much attention from other collegiate teams. This prompted the expansion and growth of Under Amour products hence resulted in the opening up of its headquarters at Maryland-Baltimore. Nonetheless, despite its success, Under Amour continues facing stiff competition from similar sports retail brands. As a relatively new organization, Under Amour faces a high threat from competitors, yet it still has the opportunity to incorporate creative and innovative ideas (Kraft & Lee, 2009).
Five Environmental Forces
Environmental factors form part of a component of the PESTLE analysis tool, which gathers information regarding the firm’s circumstances. The environmental factors constitute usually impact various essential aspects of the business (Lam et al., 2019). A detailed description of how environmental factors affect Under Amour is outlined below.
Social factors
Under Amour is influenced by any alternations, whether positive or negative, in social factors in various circumstances. The management should examine the people's lifestyle in a given locality to determine whether they exercise regularly or not. This would determine if the company is viable to widen or restrict market share in the region.
Economic Factors
A business organization such as Under Amour is affected when significant trends in the economy might alleviate or hinder the organization attaining the set goals and objectives. The management must examine consumer behavior, interest rate adjustments, banking behavior, inflation, as well as overall economic indicators. When the economic factors are positive, the business growth would be significant as well.
Technological
Under Amour’s management should consider the changes brought about by the technology. It is because technology is changing the way of doing things in any organizational setting. Organizations that fail to embrace technology offer services and goods that are less competitive in the market hence low market share.
Competitive
Business growth and success are dependent on how organizations are capable of competing in the market. Under Amour’s management must ensure substantial financial resources are budgeted to ensure that the organization conducts aggressive marketing campaigns for brand awareness and recognition to the potential market.
Regulatory
The laws and regulations are enacted by the federal and state government to regulate the way bu.
1. Running Head: MARKETING 1
MARKETING 14
Principles of Marketing
Institutional Affiliation
Student Name
Introduction
Kevin Plank, a former Fork Union Military Academy football
player, established Under Armour in 1995 upon noticing that the
cotton shirts of his football team at the University of Maryland
were always soaked in sweat and noted better items for his team
(Kraft, P., & Lee, J. W. 2009). He wanted to create shirts that
were always cool even in the hottest of weather conditions.
2. Plank went ahead and designed his prototype for his team,
which attracted much attention from other collegiate teams.
This prompted the expansion and growth of Under Amour
products hence resulted in the opening up of its headquarters at
Maryland-Baltimore. Nonetheless, despite its success, Under
Amour continues facing stiff competition from similar sports
retail brands. As a relatively new organization, Under Amour
faces a high threat from competitors, yet it still has the
opportunity to incorporate creative and innovative ideas (Kraft
& Lee, 2009).
Five Environmental Forces
Environmental factors form part of a component of the PESTLE
analysis tool, which gathers information regarding the firm’s
circumstances. The environmental factors constitute usually
impact various essential aspects of the business (Lam et al.,
2019). A detailed description of how environmental factors
affect Under Amour is outlined below.
Social factors
Under Amour is influenced by any alternations, whether
positive or negative, in social factors in various circumstances.
The management should examine the people's lifestyle in a
given locality to determine whether they exercise regularly or
not. This would determine if the company is viable to widen or
restrict market share in the region.
Economic Factors
A business organization such as Under Amour is affected when
significant trends in the economy might alleviate or hinder the
organization attaining the set goals and objectives. The
management must examine consumer behavior, interest rate
adjustments, banking behavior, inflation, as well as overall
economic indicators. When the economic factors are positive,
the business growth would be significant as well.
Technological
Under Amour’s management should consider the changes
brought about by the technology. It is because technology is
changing the way of doing things in any organizational setting.
3. Organizations that fail to embrace technology offer services and
goods that are less competitive in the market hence low market
share.
Competitive
Business growth and success are dependent on how
organizations are capable of competing in the market. Under
Amour’s management must ensure substantial financial
resources are budgeted to ensure that the organization conducts
aggressive marketing campaigns for brand awareness and
recognition to the potential market.
Regulatory
The laws and regulations are enacted by the federal and state
government to regulate the way business organizations operate.
If the laws do not exist, there would be exploitation on the side
of the customers as well as unfair competition among various
firms. Under Amour’s management must ensure that the
company observes the legal framework to avoid sanctions and
penalties.
Four P’s of Marketing
Price
Most consumers of goods and services often research the prices
before making purchasing decisions. Under Amour’s
management should factor the income levels of the players and
clubs across the globe. The company should devise a pricing
discrimination strategy where the high-income players incur
high costs at the same subsiding the prices of the low-income
players. This would ensure that the company would make more
sales overseas market (Patel, S. and Arya, M. 2017).
Product
The management should develop various qualities of the t-shirts
for the players. Although Kevin Prank saw an opportunity to
improve the quality of sports attire, mainly t-shirts. The
company ought to fulfill the needs of all players across the
globe, depending on their income levels. However, the company
should not affect the quality of the t-shirts. Moreover, it should
devote itself to producing unique and high-quality brands
4. noticing across the globe (Patel, S. and Arya, M. 2017).
Place
The management needs to establish the market, whether internal
or overseas. Organizations across the globe are unable to see the
opportunities presented by the trading pacts between
international countries. They restrict themselves to the local
market and fail to identify international business opportunities,
effectively limiting their growth patterns. The overseas markets
such as clubs in the developing countries require sports kits;
hence the management needs to up their game and take the
market share hence improve on their sales (Patel, S. and Arya,
M. 2017).
Promotion
The sports attire ventures across the globe often fail to advertise
their services to the people. Organizations that conduct
aggressive product promotion campaigns are rewarded through
increased sales volume. Most of the consumers of sports attire
are entirely in the dark since they do not know the specific
localities to acquire them. The management should strive to tap
this market through promotions in press media, sports
magazines, as well as sponsoring some clubs (Patel, S. and
Arya, M. 2017).
SWOT ANALYSIS
The SWOT analysis below chronicles the elements that make
Under Armour stand out and areas where it could focus on its
areas and weakness to capture an even more significant share of
the existing market.
STRENGTHS
WEAKNESSES
· Innovative technology
· Diversity of its Product
· Strong Brand recognition
· Athlete Endorsements
· Eco-friendly/ Green products
· Limited Material/Technology
5. · Stiff Competition
· No significant retailers
· Limited Footwear Line
OPPORTUNITIES
THREATS
· International Expansion
· Expansion of athletic footwear
· Expansion of markets to incorporate women campaigns
· E-commerce
· High competition (Adidas, Nike, Reebok)
· Product Replacement
Strengths
One of Under Armour’s greatest strength is the unique and
innovative technology behind its products. Under Armour was
established on the premise that its t-shirts wick off perspiration
as opposed to absorbing it hence keeping the athletes cool even
in hot temperatures. In 2013, the company designed and
released shirts that tracked an athlete’s heart by installing
sensors in the shirts that could register electrical signals from
the heart (Boone, L. E. and Kurtz, D. L. 2013). Moreover, the
company also developed tape-replacing cleat that offered
ultimate support to the athletes. Such outstanding inventions
offer Under Armour a better competitive position against other
retail brands. Competitive position “Is the position that a firm
has already acquired or is trying to acquire, relative to its
competitors” (Boone, L. E. and Kurtz, D. L. 2013, p.5). Even
better as the company strives to keep with emerging
technological advancements in society, it could easily resonate
with many consumers.
Under Armour’s brand recognition in the sporting arena is
another of its significant strengths. Brand recognition “Is the
ability of a consumer to recognize one brand over other brands”
(Kerin & Hartley, 2016, p. 10). Under Armour is a renowned
brand whose logo has been evidenced in almost every sports
event like football, snowboarding, baseball, among others. Its
6. company logo has been evidenced in major jerseys and stadium
walls, making it a familiar brand in the eyes of the Americans in
the last decade, especially (Boone, L. E. and Kurtz, D. L. 2013).
Under Armour has mostly invested in marketing for golf, which
has made acquire brand equity in the golf arena to the extent
that professional golfer, Jordan Spieth, has endorsed the
organization. Brand equity is defined as “Residing in the minds
of the consumers and results from what they have felt, seen and
heard about brand overtime” (Kerin & Hartley, 2016, p. 15).
Three, Under Armour also takes pride in producing a wide range
of products. The company takes pride in being innovative, and
hence it not only relies on making t-shirts but rather it also
makes products like football helmet clips and speed skating
suits. This relays the message that Under Armour centers on
utility and quality. Although some of the products by Under
Armour may be less known, it has been driven to engage
creative partnerships and to be up-front in creating unique and
quality brands.
Under Armour is also widely acclaimed for its athlete
endorsements, which have helped to market its brand on a
broader spectrum. The company is very intentional in its athlete
endorsements that it could spend millions in its contractual
agreements. Through the years, Under Armour has key athlete
endorsements, and with such endorsements, it has created an
impression with its competitors while attracting vast numbers of
potential clients (Wagner, K. 2013).
Finally, Under Armour prides itself on being eco-friendly in its
operations. The company has committed to being sustainable by
posing as little risk to the environment as possible in its
productions. It has gone as far as having five commitments to
being more eco-friendly, which include recycling its materials,
reducing energy, reducing and recycling its wastes, improving
its environmental impact, and incorporating green practices in
its production. These principles have guided Under Armour’s
product line while giving it substantial strengths. Also, these
environmental values have helped to enhance its corporate
7. responsibility as an organization that is environmentally sound.
Corporate Responsibility, “Is the way a company takes
responsibility for its actions and their impact on communities,
stakeholders and employees” (Kraft, P. and Lee, J. W. 2009)
Weaknesses
Its lack of competitiveness in the shoe industry remains to be
Under Armour’s greatest weakness. Despite releasing the
Speed-form, which rivals Nike’s Free series running shoes,
Reebok has also released a similar shoe which models the
Speed-form but lighter. So far, the Speed form has not
significantly impacted the market, nor has it become a popular
running shoe (Wagner, K. 2013). Also, unlike Nike and Adidas,
which have historically had famous athlete shows like the Air
Jordan and Nike Air Force, Under Armour does not have a
popular show to its name. All in all, Under Armour, has a bright
future; nonetheless, it must produce quality shows that match up
to the standards of those produced by Adidas and Nike (Wagner,
K. 2013). Also, it attains a similar level of status as these
companies must produce a wide range of products that targets
not only the athletes but the public as well.
The other weakness of under Armour is its lack of
innovativeness concerning technology and material use. Despite
having a diverse product line, most of the technology and
materials used to create its products are becoming sparse. Even
worse, large companies are fighting for patents, which have
resulted in limited suppliers (Wagner, K. 2013). For example,
Under Armour has had different cases concerning its patent
infringement and access to materials. Under Armour has been
involved in over three cases with big companies like Nike and
Adidas over patent rights, and mostly such cases result in public
relation issues that limit its expansion strategies.
Opportunities
Under Armour has the opportunity to expand its operations
outside of the United States. For example, it recently expanded
its operations to Brazil, which serves as a significant step to the
company attaining its international expansion goals and meeting
8. continued growth. With its expansion in Brazil, Under Armour
now stands to become major sports apparel in major business
hubs. Hence, once Under Armour continues expanding its
operations to other international markets, it could attract a huge
market from outside the United States.
Upon its establishment, its main target market were males from
the teen to their early 20s. Target Market is defined as “A
particular group of consumers at which a product/service is
aimed” (Kerin, R. A. and Hartley, S. W. 2016). However, the
company’s limited target market has served as its potential
weakness in the sports arena. Despite starting to expand its
brand to include women merchandise in 2014, Under Armour
still needs to be more rigorous with its target audience
expansion and to invest in more marketing campaigns for the
women apparel (Heitner, D. 2014). According to Kerin and
Hartley, “Marketing is an organizational function and a set of
processes for creating, communicating and delivering value to
customers for managing customer relationships in ways that
benefit the organization and its stakeholders.” By targeting the
women consumers, Under Armour has the potential to garner
enormous success and to attain a better competitive edge in the
sports arena.
E-commerce offers immense opportunities for Under Armour.
According to Heitner, e-commerce, “Is conducting all business
operations electronically/online” (Heitner, D. 2014). In recent
years, companies have been making high retail sales because of
their online operations. Today, unlike in the past, customers are
investing more in products online, and hence it is becoming
more apparent for brands to have an online presence to attain
overall success (Heitner, D. 2014). Currently, Under Armour
has a working website as well as an active online presence on
social media, and by capitalizing on these platforms, it could
attain efficient sales while meeting consumer convenience.
Under Armour could also benefit from partnering with
innovative sports technologies, which could expand its
opportunities to make more sales. Previously, Under Armour
9. has partnered with a fitness company known as MapMyFitness,
which offers its users with the ability to evaluate their everyday
workouts. MapMyFitness is known to have one of the most
extensive fitness communities, and hence Under Armour stands
to acquire more consumers from such partnerships.
Threats
Under Armour faces the consistent threat of competition from
more established athlete brands like Adidas and Nike. Owing to
the level of competition that exists in the market, Under Armour
is continuously forced to release new technology and equipment
to help strengthen its image and niche in the market. For
example, once the company stops releasing its cold weather
apparel, then it is likely to fail.
The other threat that Under Armour faces is product
replacement from less expensive brands. Currently, the market
is dominated by less expensive brands like Russell, Badger,
Athletic, and Badger, which mainly compare to Under Armour
but charge less (Heitner, D. 2014). These companies have been
able to create an alternative for the customers who must decide
whether to spend more on the higher quality products from
Under Armour or spend less for fewer quality products that still
compare to those from Under Armour. In such a scenario, most
young people prefer going for the less expensive companies
because of the costs.
Recommendations
Despite its current shortcomings, Under Armour could still gain
a better competitive edge in the market by adopting several
recommendations. For Under Armour to take advantage of its
opportunities and strengths, it needs to focus on several
recommendations, which include; investing in research and
development, extending its reach to the international arena,
implementing a differentiation strategy, acquiring patents,
having a broader segment and product diversification (Kerin, R.
A. and Hartley, S. W. 2016). Nonetheless, the two most
dominant recommendations that could best benefit the company
are having an international presence and investing in research
10. and development for its products.
Under Armour stands to have an even more significant market
share once it extends its operations in the international arena.
At the moment, Under Armor relies on North America for over
90% of its returns. Therefore, by shifting its operations to the
international, it would help generate significant revenues for
Under Armour while also assisting the company in outdoing its
rivals.
The second recommendation is investing in research and
development for its products. This is critical to assist the
company in experiencing continued growth, especially since its
greatest strength relies on quality design and technology
utilization. Also, with the stiff competition in the industry, it is
without a doubt that Under Armour requires to invest a
significant amount of its finances in developing a new product,
endorsing and advertising it. Thus, by mainly focusing on these
two significant recommendations, Under Armour will especially
gain a better competitive edge while being more successful in
the future.
Next, we analyze the company through the teste of the study of
International Business (BUSB). This process entails carrying
out market opportunity analysis with a primary objective of
acquiring information about the consumers and competition. It
is also helpful in the development of higher perspectives on the
market overview as well as aiding in exploring the next
opportunities. We need to understand the business environment
factors and finally find the market needed very quickly. This
would assist in gaining overseas markets hence boosting its
sales volume.
11. References
Boone, L. E., and Kurtz, D. L. (2013). Contemporary
Marketing. South-Western Cengage learning. 16th Ed. 1-748
Retrieved from
https://books.google.com/books?hl=en&lr=&id=UaMWAAAAQ
BAJ&oi=fnd&pg=PP1&dq=Boone,+L.+E.,+and++Kurtz,+D.+L.
+(2013).+Contemporary+Marketing.+Cengage+learning.&ots=N
tPs_LYMBR&sig=X94_eDOMQA0YaFU66BzpmIIMq0U
Heitner, D. (2014). PGA Tour Golfer Jordan Spieth Striking
Gold On-And-Off the Course. Forbes. Forbes Magazine.
Retrieved from:
https://www.forbes.com/sites/darrenheitner/2013/09/18/pga-
tour-golfer-jordan-spieth-striking-gold-on-and-off-the-
course/#7813fe21318b
Karin, R. A., & Hartley, S. W. (2016). Marketing. New York:
McGraw-Hill/Irwin. ISBN:9781259573545. 13th Ed. 1-198
Kraft, P., & Lee, J. W. (2009). Protecting the house of Under
Armour. Sport Marketing Quarterly. Morgantown. 18(2), 112-
116. Retrieved from:
http://search.proquest.com/openview/11954fc34530778a21ed38
1fdccd857b/1?pq-origsite=gscholar&cbl=28711
Patel, S., & Arya, M. (2017). The BUS Framework: a
comprehensive tool in creating an mHealth app utilizing
12. behavior change theories, user-centered design, and social
marketing. Journal of mobile technology in medicine, 6(1), 39.
Wagner, K. (2013). Under Amour’s Crew of Star Athletes.
Fortune. Retrieved from: https://fortune.com/2013/06/13/under-
armours-crew-of-star-athletes/
Lam, M. M., Wong, C. W., Chan, W. T., Leung, C. H., & Mei-
chun, C. (2019). Effects of institutional environmental forces on
participation in environmental initiatives. Resources,
Conservation and Recycling, 150, 104402.
Running head:Effects single motherhood has on African
American males joining gangs 1
The effects single motherhood has on African American males
joining gangs
Rameque Smalls
Senior Research 1
Dr.Corjuo
Running head:Effects single motherhood has on African
American males joining gangs 2
13. Introduction
This research proposal is to shed light on the single effect
parenthood has on African American
males joining gangs. Gang joining has been associated with
several fundamental factors. Ideally,
the factors will vary depending on the groups of association, the
youth, old and children as well.
It is primarily prudent to establish the forces making these
groups have the need to get engaged
in this act. One of the fundamental and most experienced factors
is single parenthood that poses
a few challenges to the youths which makes them desire to join
the gang (Yoder, Whitbeck, &
Hoyt 2003). However, upon study and analysis of the various
factors and situations that brings
about single-parent households, one is in a better position to
understand all that appertains gang
joining and its relation with the single parentage.Additionally,
every individual is, to some
extent, vulnerable and susceptible to gang joining. However,
upon analysis of the most
represented group, it is revealed that African Americans are the
most susceptible to gang joining
14. (Curry, & Spergeln 1992). This establishment is, as a result, the
general atmospheres they were
brought up and the exposures they have in their lives. Research
and experiences reveal that race
is always central to mindset, feelings, and above all, identity.
Among the many causes of gang
joining is the mindset and need to be superior, among others;
therefore, it goes without saying
that individuals with low self-esteem and identity issues will
strive to revive themselves by
joining a gang.Additionally, identity has a direct link with
family and parentage; therefore,
alteration of such will lead to low self-esteem and,
consequently, the desire to join a gang. This is
the sole reason as to why African Americans are most
vulnerable to gang joining. However,
single parentage is experienced by all races on different levels,
and no race has absolute
Running head:Effects single motherhood has on African
American males joining gangs 3
immunity over the same. It is therefore significant to analyze
every aspect of gang joining and
15. the vulnerable groups as well as the apparent causes of the
same. With this information, there is a
lot that can be established over how best gang joining can be
reduced significantly or dealt away
with.
Literature Review
In this age, several parents raise their children on their own.
Critically, the single parentages are
brought out due to their personal choices while others out of
unavoidable situations (Oakey
2006). However, all types of single parenthood are seen to have
a negative influence on the kind
of children raised. The different kinds of single parentage are
due to divorce, others as a result of
a death that brings about widow and widower for females and
males, respectively. Moreover, a
parent may choose to pursue single parentage by running a
family on their own without the
partner’s involvement. Notably, a house led by a single parent
due to the death of a partner is
always a situational occurrence that occurs naturally. This
means that the parent had no
deliberate choice. However, it is, all the same, hard for single
parents to raise kids and meet the
16. daily family needs.Families led by a single parent as a result of
divorce is always seen to be out
of choice as both the parties separated on account of their own
decisions. However good and
relieving it may appear before the parents’ sight, there are very
critical effects that the kids face
in their upbringing. Besides, there reaches a point where both
the parents feel to strain in how
they manage all that life needs. Notably, houses led by single
parents to parents who decided not
to engage in marriage also face quite some challenges (Oakey
2006). Several situations may lead
to this kind of parentage. It may be because the parent was
brought up in such circumstances that
makes the emulate the same. Besides, it may be out of
intentions to avoid the responsibilities of
Running head:Effects single motherhood has on African
American males joining gangs 4
having a partner. This type of household is quite dangerous
because the children may never
know who their father or mother.Reasons people join
gangsJoining a gang is one of the many
17. endeavors that the young always want to associate themselves
with. There are, however, many
reasons that motivate the young and any other individual to join
a gang. Through the initial
training and inductions done to those entering a band, there is
always a deep sense of identity
that one is always exposed to. They are continuously trained to
be recognized because of the
activities they involve themselves in. Critically, this sense of
recognition has made the majority
of the youth engage in this activity and be recruited into gang
groups. Moreover, the recognition
this is always brought about by factors like single parentage
that makes these young people feel
intimidated and so want to regain their identity by joining a
gang.Additionally, there is always
relational warmth that is found in the gangs. The partners in this
activity always interact well and
always make themselves feel loved and accommodated.
Therefore, many are motivated to join a
gang because they believe in the fellowship that exists in the
gang. Ideally, this is always brought
about by the fact that there is the luck of such in their homes
and therefore seek to find the
18. brotherhood in their respective gang groups. Notably, in single-
parent households, there is
always a lack of an interactive environment for the members of
that particular family (Oakey
2006). Therefore, the kids raised in such families always see the
need to find a place where they
can be accommodated and loved, therefore resolve to join a
gang.Protection seeking is one of the
motivations that make youth join a gang. Many situations in life
exposes people, especially
young people, to high insecurity issues. This state of
consciousness makes most of them get the
urgency to join the gang because they believe that it will serve
best to give them a high sense of
protection. Most often, the households most affected by
insecurity issues are those that are led by
Running head:Effects single motherhood has on African
American males joining gangs 5
a single parent; more specifically, the families that are driven
by mothers alone probably because
of widow situation. In this kind of environment, there is always
a need to get security and
protection from the kids and, therefore, many resolve to join a
19. gang to get it. Besides,
single-parent houses still face intimidation from the public face,
and therefore children will
always have the desire to get protection by joining the
gang.Impact of geographical location has
a big choice in their decisions,There are a lot that a geographic
location can speak regarding the
levels of gang joining happening in the society. In areas where a
significant number of youth are
seen, participating groups may bring about the influence of
others joining the act. Moreover, in
areas where there are a lot of gang activities, there may be
motivations to join the sake to get
protection from the same. Civilization brings in respect of
humanity and good morals. However,
in areas where the population is not civilized, they may engage
in harmful activities like joining
the gang. This is solely because of a lack of moral uprightness.
Indeed, there is a lot that
single-parent households can do to an individual, making them
seek to join a gang (Oakey 2006).
Methodology
20. Running Head: MARKETING 1
MARKETING 6
Principles of Marketing
Institutional Affiliation
Student Name
Plank established Under Armour in 1995 upon noticing that the
cotton shirts of his football team at the University of Maryland
were always soaked in sweat and noted that there had to be
something better for his team (Kraft& Lee, 2009). He thus
wanted to create shirts that were always cool even in the hottest
of weather conditions. Plank went ahead and designed his first
prototype for his team, which attracted a lot of attention from
other collegiate teams. This prompted the expansion and growth
of Under Amour products hence resulted in the opening up of its
headquarters at Maryland-Baltimore (Kraft& Lee, 2009).
Nonetheless, despite its success, Under Amour continues facing
21. stiff competition from similar sports retail brands. As a
relatively new organization, Under Amour faces a high threat,
yet it still has the opportunity to incorporate creative and
innovative ideas (Kraft& Lee, 2009). The SWOT analysis below
thus chronicles the elements that make Under Armour to stand
out and strategies that it could incorporate to reinvent its brand
a take an even bigger share of the existing market.
STRENGTHS
WEAKNESSES
· Innovative technology
· Diversity of its Product
· Strong Brand recognition
· Athlete Endorsements
· Eco-friendly/ Green products
· Limited Material/Technology
· Stiff Competition
· Lacks a Top Seller
· Limited Footwear Line
OPPORTUNITIES
THREATS
· International Expansion
· Expansion of athletic footwear
· Expansion of markets to incorporate women campaigns
· E-commerce
· High competition (Adidas, Nike, Reebok)
· Product Replacement
Strengths
One of Under Armour’s greatest strength is the unique and
innovative technology behind its products. Under Armour was
established on the premise that its t-shirts wick off perspiration
as opposed to absorbing it hence keeping the athletes cool even
in hot temperatures. In 2013, the company went on and released
shirts that tracked an athlete’s heart by installing sensors in the
shirts that could register electrical signals from the heart
(Boone& Kurtz, 2013). Moreover, the company also developed
22. tape-replacing cleat that offered ultimate support to the athletes.
Such outstanding inventions offer Under Armour a better
competitive position against other retail brands. Competitive
position “Is the position that a firm has already acquired or is
trying to acquire, relative to its competitors” (Boone& Kurtz,
2013). Even better as the company strives to keep with
emerging technological advancements in society, it could easily
resonate with many consumers.
Under Armour’s brand recognition in the sporting arena is
another of its major strengths. Brand recognition “Is the ability
of a consumer to recognize one brand over other brands” (Kerin
& Hartley, 2016). Under Armour is a renowned brand whose
logo has been evidenced in almost every sports event like
football, snowboarding, baseball, among others. Its company
logo has been evidenced in major jerseys and stadium walls,
making it a common brand in the eyes of the Americans in the
last decade, especially (Boone& Kurtz, 2013). Under Armour
has largely invested in marketing for golf, which has made
acquire brand equity in the golf arena to the extent that
professional golfer, Jordan Spieth, has endorsed the
organization (Boone& Kurtz, 2013). Brand equity is defined as
“Residing in the minds of the consumers and results from what
they have felt, seen and heard about brand overtime”(Kerin &
Hartley, 2016).
Three, Under Armour also takes pride in producing a wide range
of products. The company takes pride in being innovative, and
hence it not only relies on making t-shirts but rather it also
makes products like football helmet clips and speed skating
suits. This relays the message that Under Armour centers on
utility and quality. Although some of the products by Under
Armour may be less known, it has been driven to engage
creative partnerships and to be up-front in creating unique and
quality brands.
Under Armour is also widely acclaimed for its athlete
endorsements, which have helped to market its brand on a
broader spectrum. The company is very intentional in its
23. athlete, endorsements that it could spend millions in its
contractual agreements. Through the years, Under Armour has
key athlete endorsements, and with such endorsements, it has
created an impression with its competitors while attracting huge
numbers of potential clients (Wagner, 2013).
Lastly, Under Armour prides itself on being eco-friendly in its
operations. The company has made a commitment to being
sustainable by posing as little risk to the environment as
possible in its productions. It has gone as far as having five
commitments to being more eco-friendly, which include
recycling its materials, reducing energy, reducing and recycling
its wastes, improving its environmental impact, and
incorporating green practices in its production. These principles
have guided Under Armour’s product line while giving it
substantial strengths. Also, these environmental values have
helped to enhance its corporate responsibility as an organization
that is environmentally sound. Corporate Responsibility, “Is the
way a company takes responsibility for its actions and their
impact on communities, stakeholders and employees” (Kraft&
Lee, 2009).
Weaknesses
Its lack of competitiveness in the shoe industry remains to be
Under Armour’s greatest weakness. Despite releasing the
Speed-form, which rivals Nike’s Free series running shoes,
Reebok has also released a similar shoe which models the
Speed-form but lighter. So far, the Speed form has not really
significantly impacted the market, nor has it become a popular
running shoe (Wagner, 2013). Also, unlike Nike and Adidas,
which have historically had popular athlete shows like the Air
Jordan and Nike Air Force, Under Armour does not have a
popular show to its name. All in all, Under Armour, has a bright
future; nonetheless, it must produce quality shows that match up
to the standards of those produced by Adidas and Nike (Wagner,
2013). Also, it attains a similar level of status as these
companies must produce a wide range of products that targets
24. not only the athletes but the public as well.
The other weakness of under Armour is its lack of
innovativeness in relation to technology and material use.
Despite having a diverse product line, most of the technology
and materials used to create its products are becoming sparse.
Even worse, large companies are fighting for patents, which
have resulted in limited suppliers (Wagner, 2013). For example,
Under Armour has had different cases with regard to its patent
infringement and access to materials. Under Armour has been
involved in over three cases with big companies like Nike and
Adidas over patent rights, and essentially such cases result in
public relation issues that limit its expansion strategies.
Opportunities
Under Armour has the opportunity to expand its operations
outside of the United States. For example, it recently expanded
its operations to Brazil, which serves as a major step to the
company attaining its international expansion goals and meeting
continued growth. With its expansion in Brazil, Under Armour
now stands to become major sports apparel in major business
hubs. Hence, once Under Armour continues expanding its
operations to other international markets, it could attract a huge
market from outside the United States.
Upon its establishment, its main target market were males from
the teen to their early 20s. Target Market is defined as “A
particular group of consumers at which a product/service is
aimed” (Kerin & Hartley, 2016). However, the company’s
limited target market has served as its potential weakness in the
sports arena. Despite starting to expand its brand to include
women merchandise in 2014, Under Armour still needs to be
more rigorous with its target audience expansion and to invest
in more marketing campaigns for the women apparel (Heitner,
2014). According to Kerin and Hartley, “Marketing is an
organizational function and a set of processes for creating,
communicating and delivering value to customers for managing
customer relationships in ways that benefit the organization and
its stakeholders” (Kerin & Hartley, 2016). By targeting the
25. women consumers, Under Armour has the potential to garner
enormous success and to attain a better competitive edge in the
sports arena.
E-commerce offers immense opportunities for Under Armour.
According to Heitner, e-commerce “Is conducting all business
operations electronically/online” (Heitner, 2014). In recent
years, companies have been making high retail sales because of
their online operations. Today, unlike in the past, customers are
investing more in products online, and hence it is becoming
more apparent for brands to have an online presence to attain
overall success (Heitner, 2014). Currently, Under Armour has a
working website as well as an active online presence on social
media, and by capitalizing on these platforms, it could attain
efficient sales while meeting consumer convenience.
Under Armour could also benefit from partnering with
innovative sports technologies, which could expand its
opportunities to make more sales. Previously, Under Armour
has partnered with a fitness company known as MapMyFitness,
which offers its users with the ability to evaluate their everyday
workouts. MapMyFitness is known to have one of the most
extensive fitness communities, and hence Under Armour stands
to acquire more consumers from such partnerships.
Threats
Under Armour faces the consistent threat of competition from
more established athlete brands like Adidas and Nike. Owing to
the level of competition that exists in the market, Under Armour
is constantly forced to release new technology and equipment to
help strengthen its image and niche in the market. For example,
once the company stops releasing its cold weather apparel, then
it is likely to fail.
The other threat that Under Armour faces is product
replacement from less expensive brands. Currently, the market
is dominated by less expensive brands like Russell, Badger,
Athletic, and Badger, which largely compare to Under Armour
but charge less (Heitner, 2014). These companies have been
able to create an alternative for the customers who must decide
26. whether to spend more on the higher quality products from
Under Armour or spend less for fewer quality products that still
compare to those from Under Armour. In such a scenario most
young people prefer going for the less expensive companies
because of the costs.
Recommendations
Despite its current shortcomings, Under Armour could still gain
a better competitive edge in the market by adopting a number of
recommendations. For Under Armour to take advantage of its
opportunities and strengths, it needs to focus on a number of
recommendations, which include; investing in research and
development, extending its reach to the international arena,
implementing a differentiation strategy, acquiring patents,
having a broader segment and product diversification (Kerin &
Hartley, 2016). Nonetheless, the two most dominant
recommendations that could best benefit the company are
having an international presence and investing in research and
development for its products.
Under Armour stands to have an even bigger market share once
it extends its operations in the international arena. At the
moment, Under Armor relies on North America for over 90% of
its returns. Therefore, by shifting its operations to the
international, it would help generate significant revenues for
Under Armour while also assisting the company to outdo its
rivals.
The second recommendation is investing in research and
development for its products. This is critical to assist the
company in experiencing continued growth, especially since its
greatest strength relies on quality design and technology
utilization. Also, with the stiff competition in the industry, it is
without a doubt that Under Armour requires to invest a big
amount of its finances in developing a new product, endorsing
and advertising it. Thus by especially focusing on these two
major recommendations, Under Armour will especially gain a
better competitive edge while being more successful in the
future.
27. References
Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing.
Cengage learning.
Kerin, R. A., & Hartley, S. W. (2016) Marketing. 13th Ed.
Kraft, P., & Lee, J. W. (2009). Protecting the house of Under
Armour. Sport Marketing Quarterly, 18(2), 112.
Heitner, D. (2014). PGA Tour Golfer Jordan Spieth Striking
Gold On-And-Off The Course. Forbes.
Wagner, K., (2013). Under Armour’s Crew of Star Athletes.
CNNMoney. Cable News
Primary Reference for Terms and Concepts
Marketing. (13th ed.) by Roger A. Kerin (Author), Steven W.
Hartley (Author) New York: McGraw-Hill/Irwin.
ISBN:9781259573545
Five Environmental Forces;
Social, Economic, Technological, Competitive, Regulatory
28. Four P’s of Marketing;
Price, Product, Place, Promotion
SWOT Analysis;
Strengths, Weaknesses, Opportunities, Threats
Brand Equity;
Resides in the minds of the consumers and results from what
they have felt, seen, and heard about a brand overtime
Marketing is an organizational function and a set of processes
for creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit
the organization and its stakeholders. Marketing’s two primary
goals are a) discovering the needs of prospective customers and
b) satisfying them. Achieving these two goals also involves the
four marketing mix factors largely controlled by the
organization and the five environmental forces that are general
outside its control. Marketing affects all individuals, all
organizations, all industries and all countries.
Target Market - a particular group of consumers at which a
product or service is aimed.
Points of difference in a product – superior characteristics that
deliver unique benefits sufficient enough to motivate a change
in consumption behavior.
Intangibility of services – services can’t be held, touched or
seen before the purchase decision.
Types of pricing –
1. Prestige pricing – for consumers who perceive price as an
indication of quality or prestige; price Different types of
advertising –
a. Product advertising –
29. i. Comparative – shows one brand’s strengths relative to those
of competitors; requires market research to back up legal
support for claims.
ii. Competitive (or persuasive) – promotes a specific brand’s
features and benefits in a effort to persuade the target market to
select the target market to select a firm’s brand rather than a
competitor