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WVU IMC 613: Brand Audit
Renee Watkins
Renee Watkins
IMC 613, Week9 Assignment
Page 1
Table of Contents
Executive Summary............................................................................................................................3
Company History ...............................................................................................................................4
Brand Inventory.................................................................................................................................5
Brand Position ............................................................................................................................5
Brand Hierarchy......................................................................................................................5
Market Share .........................................................................................................................5
Brand Elements...........................................................................................................................7
Brand Name...........................................................................................................................7
URL........................................................................................................................................8
Logo ......................................................................................................................................8
Spokespeople ........................................................................................................................8
Slogan .................................................................................................................................10
Marketing Support Programs ....................................................................................................12
Product ............................................................................................................................... 12
Place ...................................................................................................................................13
Price ...................................................................................................................................14
Promotion ........................................................................................................................... 14
Analysis of Under Armour’s Marketing Efforts ............................................................................ 17
Strengths ............................................................................................................................. 17
Weakness ............................................................................................................................ 17
Under Armour Competitors .......................................................................................................... 19
Adidas .................................................................................................................................19
Nike ....................................................................................................................................20
Competitive Analysis .................................................................................................................... 22
Brand Exploratory ........................................................................................................................... 23
Under Armour’s Brand Position..................................................................................................23
Competitor’s Brand Position Brand Position................................................................................ 24
Perceptual Map ........................................................................................................................ 25
Brand Elements......................................................................................................................... 26
Brand Name......................................................................................................................... 26
URL......................................................................................................................................26
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Logo ....................................................................................................................................27
Spokespeople ...................................................................................................................... 27
Slogan .................................................................................................................................28
Marketing Support Programs ....................................................................................................29
Product ............................................................................................................................... 29
Place ...................................................................................................................................30
Price ...................................................................................................................................30
Promotion ........................................................................................................................... 31
Analysis of Under Armour’s Marketing Efforts ............................................................................ 32
Strengths ............................................................................................................................. 32
Weakness ............................................................................................................................ 32
Surveyed Responses.................................................................................................................. 33
Brand Recommendations .......................................................................................................... 43
References .............................................................................................................................. 46
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Executive Summary
The athletic apparel industry is the one of the fastest growing sectors of the apparel market
today. Many consumers have found athletic apparel to be comfortable, versatile, and
fashionable and therefore have been wearing athletic apparel to more places than just the gym.
This increase in versatility and demand has lead athletic apparel sales to grow to $33.7 billion
and represent 16% of total apparel market sales in 2014. (NPD Group, 2014). However, the
growth doesn’t stop there. The athletic apparel industry is projected to grow an additional 4
percent over the next year. (NPD Group, 2014). Industry forecasters expect the largest
segment of this growth to be in the women’s athletic apparel lines. (Tamariz, 2014).
This projected increase in industry sales provides Under Armour with a unique, favorable
opportunity to gain additional revenue, increase its market share, and better position the brand
as it tries to close in on Nike for the title as the largest athletic brand in the industry. Lastly, one
of Under Armour’s largest competitors, Adidas is losing ground as it struggles to connect with
its consumer base. Under Armour could not ask for a better opportunity to strategically
position itself for growth than it has right now. Failing to devote resources to Under Armour’s
branding activities at this time will cause Under Amour to open the door and watch others take
its place as one of the industry’s leading athletic apparel brands.
Therefore, it’s imperative that Under Armour devotes its marketing resources to increasing
brand awareness among the female demographic, marketing its unique synthetic temperature
controlled athletic apparel, and continues to secure predominate athletic sponsorships.
Under Armour can potentially enjoy several tangible benefits from devoting resources to these
brand activities. These tangible benefits include increasing brand awareness among all the
different gender and age markets, improving consumer perceptions of Under Armour’s unique
synthetic apparel advantages, increase brand loyalty among Under Armour’s current market,
increase market share – particularly in the women’s athletic apparel line and sport sponsorship
areas, and lastly the ability to further the gap between Under Armour and its trailing
competitors such as Adidas. Overall, Under Armour has the potential to increase its market
share by 2% if it strategically implements a strong branding strategy.
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IMC 613, Week9 Assignment
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Where it all began
Company History
Under Armour was founded in 1996 by former University of
Maryland special teams’ captain football player Kevin Plank.
Back in his playing days, Kevin Plank hated having to change his
sweat-soaked cotton T-shirts over and over again during two-a-
day practices. After researching a variety of materials that
would keep athletes dry and cool, Plank discovered the benefits
of synthetic fabrics. Before long, Plank designed his first Under
Armour HeatGear® T-Shirt, which he named #0037. Working
from his grandmother’s basement in the Georgetown
neighborhood of Washington DC, Kevin would travel up and
down the East Coast selling his new, revolutionary #0037
product out of the trunk of his car. By the end of 1996, Plank made his first team sale and
Under Armour generated $17,000 in sales. (Under Armour, n.d.). For the next three years,
Under Armour grew at a slow pace. However, that all changed in 1999 when Under Armour
caught a lucky media break.
In 1999, Under Armour played a supporting, highly visual role in one of the year’s most talked
about movies, Any Given Sunday. In the film, the football team predominately wore Under
Armour apparel and accessories in key scenes. (Under Armour, n.d.). Capitalizing off his 15
minutes of fame, Plank made a large gamble and bought his first print ad in ESPN the Magazine.
While risky, Plank’s decision paid off. The ESPN magazine ad, coupled with the success of the
movie, generated brand awareness and a $750,000 increase in sales. (Under Armour, n.d.).
Over the next two years, Under Armour formed relationships with key retail partners and
professional sports leagues including Major League Baseball, the National Hockey League, and
the Baltimore Marathon. (Under Armour, n.d.). In 2003, the brand launched its first TV
campaign, Protect this House®. Protect this House® quickly became a rallying cry for athletes
everywhere as it established the brand as a household name.
Today, Under Armour provides men, women, and youth with a wide variety of athletic apparel,
footwear, and accessories. Innovation and performance remain the heart of the Under Armour
brand as it strives to make all athletes better through passion, design, and the relentless pursuit
of innovation. (Under Armour, n.d.).
Figure 1: Under Armour CEO, Kevin Plank
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Brand Inventory
Brand Positioning
Under Armour Brand Position
Under Armour provides men, women, and youth with a wide variety of athletic apparel,
footwear, and accessories. Examples of these products include hoodies, sweat shirts, polo’s,
graphic T’s, sleeveless shirts, tanks, long sleeve shirts, short sleeve shirts, sports bras, outwear,
pants, leggings, tights, capris, crops, shorts, underwear, shots, boots, and sandals.
Under Armour’s athletic apparel comes in a variety of fits and styles that are intended to
enhance comfort and mobility, regulate body temperature, and improve the athlete’s
performance regardless of weather conditions. (Under Armour, 2015). Under Amour’s apparel
is engineered to replace the traditional non-performance fabric retailors by strategically
positioning it’s three gear lines which include HeatGear®, ColdGear®, and AllSeasonGear®.
HeatGear® is designed to be worn in warm to hot temperatures under equipment or as a single
layer. While sweat-soaked traditional, non-performance gear can weigh up to two or three
pounds, HeatGear® is engineered with a unique microfiber blend that is designed to wick
moisture from the body. This helps the body stay cool, dry, and light. HeatGear® is offered in a
variety of tops and bottoms in a broad vast choice of colors and styles.
ColdGear® is designed to wick moisture away from the body while circulating body heat from
hot spots to help maintain core body temperature. (Under Armour, 2015). Under Armour Cold
Gear® keeps athletes both dry and warm. ColdGear® was developed to be worn beneath a
jersey, uniform, protective gear, or ski-vest. ColdGear® outerwear protects the athlete from
the outside in. Because of its unique composition, ColdGear® usually sells at a higher price than
Under Armour’s other product lines as well as its competitors. (Under Armour, 2015).
AllSeasonGear® is designed to be worn in between extreme temperatures and was developed
to keep the athlete cool and dry in warmer temperatures and warm in cooler temperatures.
(Under Armour, 2015).
All of Under Armour’s gear lines come in three primary fits. These fit includes compression fit,
fitted, and loose.
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Brand Hierarchy
Under Armour sells products to both the individual consumer and athletic organizations.
Consumers have the ability to purchase Under Armour products in retail locations or online.
Whether it’s the physical store or online, Under Armour offers products for men, women, and
youth. Under Armour also provides customized apparel for both college and professional level
sporting needs.
Market Share
As Under Armour enters the 2015 fiscal year, which also happens to be its 10 year anniversary
as a public company, it has much to celebrate.
In 2014, Under Armour’s stock rose over 150%. The brand’s 2014 Q4 earnings increased 35%
on a year-over year basis. (Trefis Team, 2014). Moreover, Under Armour was able to increase
net sales from $2,277.1 million in 2013 to $2,997.9 million in 2014. In other words, Under
Armour increased net sales by $720.8 million or 31.7% in 2014. (Under Armour, 2015).
Under Armour’s sports apparel sales now account for 14 percent of the U.S. market, allowing it
to surpass Adidas and claimthe title as the second largest athletic apparel brand today.
Under
Armour
Consumer
products
Retail
Mens
product lines
Womens
product lines
Youth
product lines
Online
Mens
product lines
Womens
product lines
Youth
product lines
Athletic
Sponsorships
College
Professional
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(Mirabella, 2014). However, it is important to note that Under Armour’s woman’s apparel only
contributes to 30 percent of Under Armour’s overall company sales. (Tamariz, 2014).
Brand Elements
Under Armour Brand Elements
Brand elements are trademarkable devices that serve to identify and differentiate the brand
from its competitors. (Keller, 2013). Keller suggest suggests marketers chose brand elements
that build brand equity. The criteria for doing so is that a brand element should be memorable,
meaningful, likable, transferable, adaptable, and protectable. (Keller, 2013). Memorability,
meaningfulness, and likability are the marketer’s offensive strategy to build brand equity. A
brand element that is transferable, adaptable, and protectable play a defensive role for
leveraging and maintaining brand equity.
Below is an examination of Under Armour’s brand elements and how they fit Keller’s six criteria
for selecting brand elements.
Brand name
Very few people know how Under Armour got its brand name. Founder Kevin Plank was
originally going to call the company Heart, thinking that athletes wear their heart on their
sleeves. However, when it came to the patent and trademark process, Heart was rejected.
Plank then planned on calling the company Body Armour when his older brother jokingly called
the company Under Armour. Plank quickly rushed to the trademark office to patent the name,
Under Amour. The reasons Plank added a “U” in Armour was because he was skeptical if the
internet would still exist in the future. Therefore, he added the U because he thought the
phone number 888-4Armour was more compelling than 888-44Armor. (Harrison, 2014).
Despite the fact that Under Armour Kevin Plank’s third name choice, it was the best choice for
it fulfills all six of Keller’s brand criteria. Under Armour’s unique name and spelling makes the
brand name easily to recognize and to recall. The brand name is also very fun and interesting,
transferable across all geographic boundaries, transferable across all product categories, and
legally protected. In addition, consumer’s often associate the brand name with Under Armour’s
original and most popular product line, compression gear. This brand association was
developed because compression gear is often worn underneath the athlete’s main clothing
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pieces, hence the name Under Armour. While the brand did not consider this brand association
during the naming process, it has inserted meaning into the Under Armour brand name.
URL
Under Armour’s website URL is www.underarmour.com. The URL is a direct translation of the
brand name. This makes this particular brand element easy to recall and memorable.
Competitors Adidas and Nike also use a direct translations of their brand names for the
company URL.
Logo
Under Armour’s logo features a simple, overlying U and A with the
company’s brand name written under the logo. The graphical
representation of the U and A give the logo meaning and make it
memorable.
The Under Armour is logo is very clean, minimalistic, and easily
transferred across geographic boundries and product lines, causing
the logo to be likeable, adaptable, and transferable. The logo is also
legally registered, making the logo protected.
Adidas and Nike also have very simplistic, clean logos that are transferrered across geographic
boundries and product lines, making the logo likeable, adaptable, and transferable. Both
competitors logos are legally registered, making them legally protected.
Spokespeople
Under Armour utilizes a large variety of athletic spokespersons for its marketing campaigns.
Under Armour looks for high-profile athletes that will increase brand awareness and generate
buzz marketing across various consumer marketing channels. Under Armour’s current portfolio
of celebrity spokespersons include Gisele Bundchen, Misty Copeland, Manteo Mitchell, Tom
Brady, Cam Newton, Jermaine Jones, and Andy Murray. (Under Armour, 2015)
By tying these athletes to the Under Armour brand name, Under Armour’s marketing efforts
become more easily recalled, persuasive, likable, transferable, and adaptable. Celebrity
endorsers such as Tom Brady and Misty Copeland create market credibility for the Under
Armour brand in their specific sport markets.
Figure 2: Under Armour Logo
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.
Figure 3: Under Armour Spokespersons
Under Armour’s competitors Adidas and Nike also regularly utilize celebrity athletes to help
make their ads more memorable, likeable, meaningful, transferable, and adaptable.
Since 1997, Adidas has been utilizing a long list of celebrity endorsers where the brand captures
them with their “Adidas game face expression on.” This raw, authentic moment of passion
shows itself in every Adidas moment. (Athlete Promotions, n.d.). Celebrities who showed their
Adidas game face include, David Beckham, Josh Smith, Chauncey Billups, Tim Duncan, Tracy
McGrady, Michael Beasley, Candace Parker, Tony Allen, Kendrick Perkins, Antwan Jamison,
Deshawn Stevenson, Nene, Rodney Stuckey, Corey Maggette, Anthony Randolf, Jordan Farmar,
Adam Morrison, Mario Chalmers and Luc Mbah A Moute. (Athlete Promotions, n.d.).
Nike also owns a large, ever growing list of celebrity endorsers including, Carmelo Anthony,
Derek Jeter, Chris Paul, Ray Allen, DJ Augustin, Mike Bibby, Dre Bly, Michael Finley, Richard
Hamilton, April Holmes, Juwan Howard, Joe Johnson, Andruw Jones, Kevin Martin, Quentin
Richardson, CC Sabathia, Bobby Simmons, Jason Taylor, Gerald Wallace, Josh Howard, Michael
Crabtree, Dwight Freeney, LaMarr Woodley, Try Polamalu, Drew Brees, Larry Fitzgerald,
Cristiano Ronaldo, Wayne Rooney, Andrew McCutchen, and Didier Drogba. (Athlete
Promotions, n.d.). All of Nike’s celebrity endorsement ads include a picture of the athlete, a
motivational quote, a URL, and the Nike logo.
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Figure 4: Nike Ad featuring celebrity spokesperson Lebron James
Slogans
Under Armour, who positions itself as the unique, humble, and hungry underdog, has adapted
and trademarked the motivational tagline, “I Will.” (Diaz, 2014). This simple, yet motivational
slogan is easy to recall and recognize, making it memorable. The slogan emotionally connects
with the consumer, making it meaningful and likeable. The slogan is also transferable across
product lines and geographical boundaries. Under Armour has trademarked the logo, making it
highly protectable. Moreover, Under Armour has updated the slogan to “I will protect this
house” and “I will what I want” in some of its marketing campaigns, making it very adaptable.
Figure 5: Under Armour "I Will What I Want" Slogan Figure 6: Under Armour "I Will" Slogan
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Adidas and Nike also both utilize motivational taglines to help make their respective brands
more memorable, meaningful, likeable, transferable, adaptable, and protectable.
It wasn’t until 1974 that Adidas began associating the brand with its “Impossible is nothing”
tagline. Despite the fact that the “Impossible is nothing” tagline is slightly less recognizable
from its competitors, it was voted as one of the 40 Best Advertising Slogans of Modern Brands
by Advergize. (Waltz, 2013). Adidas’ tagline was taken from a quote by one of the most
legendry boxers and former Adidas endorser, Muhammad Ali. This helped make the Adidas
slogan even more memorable, meaningful, likable, and adaptable. The slogan is trademarked
making it protectable and it has been used across all of Adidas’ product lines making it
transferable.
Figure 7: Adidas slogan, "Impossible is nothing"
Nike’s “Just Do It” tagline is one of the most recognizable and iconic taglines today. This tagline
is easily recognizable and easy to recall, making it memorable. The tagline was adapted in 1988
after serial killer Gary Gilmore’s famous last words “Let’s do it.” Gilmore was executed by a
firing squad in 1977. 11 years later, Nike modified those last words to “Just Do it.” Associate
Professor and Director at George Washington University’s School of Business believes the
tagline caught on because it was short, simple, easily understood and remembered. The slogan
was to the point, a little bold, and confident just like many of Nike’s athletes at the time.
(Martin, 2013). Even though those athletes have since changed, the tagline is still meaningful,
likable, transferable, adaptable, and protected by trademarks today.
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Figure 8: Nike's iconic tagline, "Just Do It."
Marketing SupportPrograms
Product
Under Armour’s product line provides men, women, and youth with a wide variety of athletic
apparel, footwear, and accessories. Under Armour’s athletic apparel comes in a variety of fits
and styles that are intended to enhance comfort and mobility, regulate body temperature, and
improve the athlete’s performance regardless of weather conditions. (Under Armour, 2015).
Under Amour’s apparel is engineered to replace the traditional non-performance fabric
retailors by strategically positioning it’s three gear lines which include HeatGear®, ColdGear®,
and AllSeasonGear®.
Below is a full, comprehensive list of Under Armour’s product lines for each of these target
markets.
Under Armour’s Men’s
Product Offerings
Under Armour’s Women’s
Product Offerings
Under Armour’s Youth
Product Offerings
Hoodies and Sweatshirts Hoodies and Sweatshirts Hoodies and Sweatshirts
Long sleeve shirts Long sleeve shirts Tops
Short Sleeve Shirts Short Sleeve Shirts Bottoms
Graphic T’s and Tanks Graphic T’s and Tanks Underwear
Sleeveless and Tanks Sleeveless and Tanks Outwear
Under Shirts Sports Bras and Bras Athletic Shoes
Outwear Outwear Outwear
Pants Pants Accessories
Leggings and Tights Leggings and Tights
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All of Under Armour’s products are manufactured with technical fabrications produced by third
parties and is developed in collaboration with product development teams. (Under Armour,
2015). This approach enables Under Armour to select and create superior, technically
advanced fabrics, produced to Under Armour’s specifications while focusing its product
development efforts on design, fit, climate, and product end use. Under Armour seeks to
regularly update and improve products with
the latest in innovative technology while
producing its product offerings. (Under
Armour, 2015).
74.3 percent of Under Armour’s product
sales are contributed to its athletic apparel
line. Footwear makes up 14 percent of
sales, 8.9 percent of sales are tied to the
accessories lines, and 2.8 percent to
licensing and other revenues. (Under
Armour, 2015).
Place
A majority of Under Armour’s sales are generated through wholesale channels, which include
national and regional sporting goods chains, independent and specialty retailers, department
store chains, institutional athletic departments, leagues, and teams. Under Armour also sales
products directly to consumers through its own network of brand and factory house stores in
the North America, Latin America, and Asia-Pacific operating segments and through global
websites. (Under Armour, 2015).
Shorts Capris and Crops
Underwear Shorts
Athletic Shoes Underwear
Cleats Athletic shoes
Boots Cleats
Slides and Sandals Boots
Accessories Slides and Sandals
Accessories
Figure 9: Under Armour Net Revenues
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Factory house stores allow Under Armour to sell a large portion of
excess, discontinued, and out-of-season products while maintain
the pricing integrity of the Under Armour brand and other
distribution channels.
When taking a closer look at the net revenues by distribution,
Under Armour’s wholesale network contributes to 66.8 percent of
revenues, direct to consumer networks equal out to 30.4 percent
of net revenues, and licensing and other are responsible for only
2.8 percent. (Under Armour, 2015).
Price
Under Armour’s has a reputation for manufacturing high-quality,
dependable products that enhance the athlete’s performance. This
reputation allows Under Armour to charge a slightly higher price than the competition. The
table below shows a price comparison for a basic men’s T-shirt from Adidas, Nike, and Under
Armour. The basic men’s T selected across the various brands is comparable in fabric, style,
and fit.
Brand Price for basic men’sT
Adidas $22.00
Nike $22.00
Under Amour $22.99
Promotion
Under Armour promotes it’s product through a wide variety of traditional and digital marketing
channels. Under Armour also employs numerous sponsorship and endorsement marketing
efforts.
Digital Marketing Channels
Figure 10: Under Armour's Net
Revenues by Distribution
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Under Armour utilizes a large variety of digital marketing channels to promote its brand. In
2014, Under Armour developed a five episode digital video series that followed Under Armour
endorser, Cam Newton, as he prepared for the next NFL season. Under Armour’s video focused
on keeping a positive mindset through tough times, such as just missing the NFC championship
game in the prior year’s playoffs and undergoing ankle surgery. The video underscores Under
Armour’s brand mission to empower all athletes and make them better through passion.
(O'Brien, 2014). The Under Armour logo was predominately displayed throughout the entire
video. In less than a week, the six minute video was viewed more than 150,000 times and
featured on Under Armour’s website. (O'Brien, 2014).
In 2011, Under Armour launched a new website expressing the boldness and innovation of the
Under Armour brand, allowing its products and athletes to shine. With its streamlined,
inspirational design and innovative features such as a dynamic temperature tool to help users
shop for hot or cold weather gear and a fit guide to ensure customers would feel confident in
purchasing online, the site redefined the Under Armour shopping experience. Additional
personalization elements were also added to the site to create a customizable shopping
experience that would drive customer satisfaction and repeat site visits. The overhaul of the
Under Armour website was proven successful for ecommerce sales increased 59 percent year-
over-year. (Huge, 2012).
Under Armour also utilizes several social media so users can continue the conversation
between purchases. Users are encouraged to share product ratings and reviews as well as build
a sense of community with other Under Armour customers. (Huge, 2012). Under Armour’s
Facebook page now boasts 21,000 followers.
Traditional Marketing Channels
Under Armour utilizes print magazine advertisements and television spots to market its
products to a wide variety of audiences. Television spots focus on the athletes’ ability to
overcome obstacles and finding the will from within to set your own path. Print ads are very
simplistic in nature and often are an image that was taken from the television commercial. Ads
feature the Under Armour logo and motivational tagline.
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Figure 11: Under Armour Print Ad
Under Armour also aligns itself with several socially responsible campaigns. These campaigns
include Under Armour’s Power in Pink campaign where Under Armour contributes $2 million
annually to John Hopkins to develop the Live Well Center and support research and innovation
in the field of breast health. (Under Armour, n.d.). The second campaign, Win, is focused on
empowering athletes of the next generation. This campaign provides kids in underserved
communities access to sports by enhancing the places where the kids play, investing in
programs that use sports to teach life kills, outfitting kids with the latest products, and
supporting people who dedicate their time to coaching. (Under Armour, n.d.). The last
campaign, Protect This House, supports the United States’ armed forces. Annually, Under
Armour donates $250,000 to support First Responders, Military Support Organizations, Law
Enforcement Officers, and Veterans who have committed to keeping us safe. (Under Armour,
n.d.).
Sponsorships and Endorsements
Under Armour’s marketing and promotional strategy starts with selling its products to high-
performing athletes and teams on the high school, collegiate, and professional levels. Under
Armour executes this strategy through outfitting agreements, professional and collegiate
sponsorships, individual athlete agreements, and by providing and selling products directly to
team equipment managers and individual athletes. (Under Armour, 2015). As a result, Under
Armour’s products are seen on the field, giving them exposure to various consumer audiences
through the internet, television, magazines, and live sporting events.
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In addition to the list of celebrity endorsers listed in the brand element section, Under Armour
currently sponsors 13 athletic departments on the college level. These schools include Auburn,
Hawaii, Maryland, Texas Tech, Boston College, Utah, Notre Dame, Northwestern, St. John's,
Navy, Colorado State, South Florida and South Carolina. (Rovell, 2014).
Analysis of Under Armour’s Marketing Efforts
Strengths
The Under Armour brand has a very strong marketing presence. Under Armour strategically
utilizes various digital and traditional marketing channels to more effectively leverage a tactful
integrated marketing approach to a largely diverse audience. Under Armour has also
redesigned its ecommerce website to make shopping an easier, more enjoyable experience. In
addition Under Armour builds a sense of community through its social media presence and
ability to allow users to rate and review products on its website. Millennials trust user
generated content 50 percent more than other forms of media, making it a great addition to
Under Armour’s digital platforms. (Knoblauch, 2014). Celebrity endorsers bring more credibility
and higher brand awareness to Under Armour’s product lines. By sponsoring college athletics,
Under Armour is positioning itself to gain additional media coverage and build brand loyalty
from consumers at a younger age.
Weaknesses
Until 2014, Under Armour’s approached its woman’s line by the “shrink it and pink it”
approach. This concept did not appeal to the female audience, causing Under Armour to
destroy $600,000 in clothing. (Schultz, 2014). In 2014, Under Armour targeted the $410 million
American women’s apparel business with a series of digital and traditional media ads. While
these advertisements created a positive response from women (as seen in the chart below),
women’s apparel still only makes up 30 percent of Under Armour’s total sales. (Lutz, 2012).
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Figure 12: Women's positive sentiment to the Under Armour women's campaign
Under Armour will can’t rely on a single marketing campaign to leverage its women’s fitness
lines. Under Armour will need to continuously focus its marketing efforts and spend in this area
to increase sales and capture a larger portion of this ever growing market.
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Under Armour’s competitors
Competitive Environment
While there are many competitors in the athletic apparel industry, Under Armour should focus
on two particular brands, Adidas and Nike.
Adidas
Adidas was founded in Germany in 1949 by Adolf Dassler. (Adidas Group, n.d.).
Adidas has a clear mission to be the globally leading and most popular
sporting good brand. Adidas offers men, women, and youth a vast variety of
products, which are aimed at supporting athletes in their lifestyle.
Market Share
Adidas, who was once the second largest athletic apparel brand has recently
fallen to third behind Under Armour. (Mirabella, 2014). This recent drop was monumental for
the Adidas brand for that it was the first time Adidas has ever been in the number three spot.
In 2014, Adidas’ combined sales of athletic footwear and apparel fell 23% to $1.1 billion.
During the same time, Under Armour’s sales were up over the same period to $1.2 billion.
(Germano, Adidas Slips Behind Under Armour in U.S., 2014).
Adidas associates this loss in revenue to the company’s lack of focus. Adidas plans to rebound
in the market by entering into several sponsorships including supplying NBA and NHL jerseys.
The company also endorses NBA point guards Derrick Rose of the Chicago Bulls and John Wall
of the Washington Wizards. Adidas also hopes to release a popular signature sneaker line for
Mr. Wall that will retail for $115. (Adidas Group, n.d.).
However, climbing back to the number 2 spot will be a difficult feat for Adidas for customers,
especially in the youth apparel market, strongly prefer Nike and Under Armour products.
Moreover, Nike is gaining ground in Adidas’ core European market as Adidas struggles for
traction in the United States. (Adidas Group, n.d.).
Adidas currently owns 6 percent of the athletic apparel market. (Mirabella, 2014).
Figure 13: Adidas logo
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Nike
Founded in 1972, Nike is the world’s largest and most iconic athletic apparel brand today. Nike
offers men, women, and youth a large and diverse selection of athletic apparel, equipment,
footwear, and accessories.
While much has changed in the athletic apparel industry,
Nike attributes its success to staying true to its mission
and by bringing inspiration and innovation to every
athlete. Nike believes the recipe for success is to
develop sustainable, quality products for its consumers
while connecting with them on a deeper, more
meaningful level. (Nike, 2014).
Nike connects with its target audience through a diverse set of marketing communications
including TV commercials, print ads, digital retargeting efforts, social media communities,
professional and colligate sponsorships, and more.
Market Share
Current market leader Nike, far outpaces its competitors with a combined total of $8.9 billion in
sales. Nike also owns 46% of the athletic footwear market and a third of all sports apparel
sales. (Mirabella, 2014). In fiscal year 2014 alone, Nike’s revenue grew 10% and its gross
margin increased 120 basis points, despite the rising cost environment. Moreover, Nike’s
profitability in North America hit a record high. (Nike, 2014).
Despite Under Armour’s impressive market share gains, Nike tops Under Armour in revenue
performance by $24.8 billion. (Peterson, 2014).
Figure 14: Nike Logo
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Figure 15: Revenue comparison between Nike and Under Armour
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Figure 16: Under Armour vs Competitors Market share
Competitive Analysis
Points-of-parity
Under Armour shares many brand attributes with its competitors, Adidas and Nike. All 3 brands
offer high-quality, easily obtainable athletic apparel for men, women, and youth. Under
Armour, Adidas, and Nike also spend a large portion of their marketing budget sponsoring
professional and collegiate athletics. In addition, all 3 athletic brands maintain an active social
media presence filled with images of sponsored athletes and motivational quotes.
Points-of-difference
Despite the similarities listed above, Under Armour’s synthetic apparel provides one core point-
of-difference than its competitors. This point-of-difference is that Under Armour’s athletic
apparel is designed with the latest technology to enhance an athlete’s comfort and mobility,
regulate body temperature, and enhance an athlete’s performance. Under Armour’s
compression gear improves the body’s coordination of muscle patterns, spatial awareness, and
reduces muscle movement, which helps prevent injury. Compression gear also enhances the
athlete’s power, endurance, and ability to jump repeatedly, more effectively.
44%
14%
6%
36%
Market Share (in percentages)
Nike
Under Armour
Adidas
Other Brands
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Brand Exploratory
Brand Positioning
Under Armour Brand Position
As mentioned in the Brand Inventory section of the Brand Audit, Under Armour provides men,
women, and youth with a wide variety of athletic apparel, footwear, and accessories. Under
Armour’s athletic apparel comes in a variety of fits and styles that are intended to enhance
comfort and mobility, regulate body temperature, and improve the athlete’s performance
regardless of weather conditions. (Under Armour, 2015).
A large majority of consumers associate Under Armour as a high-end, high-quality, premier
athletic brand. (Campbell, 2013). When the marketing research company iModerate asked
consumers describe the Under Armour brand, they were quick to point out all of the technical
aspects that make Under Armour functional in the most challenging of conditions. Aside from
minimal mentions of price and overall quality, consumers used descriptive language such as
“wicking,” “skin-tight,” “insulating,” and “breathable” to describe the brand. (iModerate
Research Technologies, n.d.).
Moreover, athletes found that Under Armour’s most motivating quality is the performance of
the gear. Athletes report that the Under Armour brand protects them from outside weather
elements, giving them no excuses to miss a work out. (iModerate Research Technologies, n.d.).
In fact, iModerate survey respondents were quoted saying, “Having equipment to withstand
unfavorable weather motivates you to stay active even when Mother Nature doesn’t” and “Just
having the Under Armour symbol on my shirt motivates me. I don’t want to be seen eating a
burger and fries. I want to be seen going through a grueling workout or Tough Mudder event.”
However, it’s important to note that while Under Armour’s focus on performance may appeal
to consumers who live a largely athletic lifestyle, it also alienates a large sector of the
population that doesn’t associate themselves to this degree of athleticism. (iModerate
Research Technologies, n.d.). Therefore, Under Armour, which also happens to have started
out as a male-centric niche football brand, tends to particularly alienate those less who are
uninspired by the perceived unattainable fitness level and women.
A small group of students and a professor from West Virginia University’s (WVU) Integrated
Marketing Communications graduate program was surveyed to give their perceptions of the
Under Armour brand. The small WVU research group was comprised of 8 members, 6 females
and 2 males from various age groups. All 8 of the surveyed group members agreed that Under
Armour provides high-quality athletic gear. However, only 2 out of the 6 female respondents
believed that the Under Armour brand provides athletic apparel that appeals to them.
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Competitors
Brand Perceptions
Adidas
Even though Adidas has recently fallen to third in the athletic apparel industry, the Adidas
brand still has a reputation for quality. (Lefton, 2014). However, Adidas’s brand image is still
greatly linked to soccer, tear-a-way pants, and Run DMC, which has caused the Adidas brand to
be perceived more as “an oldie but a goodie” or more of a retro brand rather than consumer’s
brand of choice.
Figure 17: RUN DMC in their iconic Adidas track suit
Nike
It’s no surprise that Nike, who owns 44% of the athletic apparel’s market share has found a way
to fit into everyone’s lifestyle. According to iModerate’s brand survey, consumers turn to the
Nike brand for practicality, performance, and fashion. (iModerate Research Technologies, n.d.).
From the recreational park-walker to the true elite athlete, Nike has you covered. Moreover,
Nike’s advertisements feature compelling stories that inspire and motivate consumers,
regardless of age or athletic ability. Consumers have been quoted saying that “Nike ads show
that no matter what you look like, you can succeed at your goals.” (iModerate Research
Technologies, n.d.).
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Despite gender, age, and geographical differences, all 8 members of the WVU study group
identified Nike as one of their top 3 brands for athletic apparel, further supporting this
testament.
Perceptual Map of Under Armour and its Competitor’s Brand Perceptions
Below is a perceptual map that depicts Adidas, Nike, and Under Armour’s brand perceptions in
the market place.
Adidas, who is now the third largest brand in the athletic apparel industry is appropriately
situated below Nike and Under Armour when it comes to product quality. However, thanks to
Adidas’ brand associations with Run DMC and tear-a-way pants, Adidas is perceived more as a
lifestyle brand rather than an overall performance brand.
Nike, the athletic apparel industry leader is strategically placed at the highest point of the
perceptual map in relation to its perceived quality. Nike is seen as a high-quality brand that fits
every lifestyle, whether it’s a first time runner or an avid racer. Therefore Nike is place largely
High Quality
Lifestyle
Performance
Low Quality
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in the lifestyle portion of the graph but is very close to being positioned as a performance brand
as well.
Under Armour is perceived as the brand of athletes, which strategically positions the brand to
the far right of the perceptual graph. Like Adidas and Nike, Under Armour is perceived as a
high-quality athletic brand.
Brand Elements
Under Armour Brand Elements
As previously discussed in the Brand Inventory section, brand elements are trademarkable
devices that serve to identify and differentiate the brand from its competitors. (Keller, 2013).
Brand elements should be memorable, meaningful, likable, transferable, adaptable, and
protectable. (Keller, 2013).
Below is an examination of Under Armour’s brand elements from the consumer’s perspective
and how they fit Keller’s six criteria for selecting brand elements.
Brand name
Under Armour owns 75% of the compression market. (Salter, 2005). This has caused the Under
Armour brand name to become synonymous to the compression gear market, just as Kleenex
and Band-Aid have in the past. While compression gear is only a portion of Under Armour’s
product offerings, this brand association has helped leverage the Under Armour brand name,
making it more memorable, meaningful, adaptable, and transferable in the consumer’s eyes.
Nike and Adidas have not reached a synonymous brand and product association in the market
the way Under Armour has.
URL
Under Armour’s website URL is www.underarmour.com. The URL is a direct translation of the
brand name. This makes this particular brand element easy for consumers to recall and
memorize. Competitors Adidas and Nike also use a direct translations of their brand names for
the company URL.
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Logo
Under Armour’s logo features a simple, overlying U and A with the
company’s brand name written under the logo. The graphical
representation of the U and A give the logo meaning and allow
consumers to easily regonize and memorize the Under Armour
logo.
In addition, the logo is very clean, minimalistic, visually appealing
and easily transferred across geographic boundries and product
lines, causing the logo to be likeable, adaptable, and transferable.
The logo is also legally registered, making the logo protected.
Adidas and Nike also have very simplistic, clean logos that are transferrered across geographic
boundries and product lines, making the logo likeable, adaptable, and transferable. Both
competitors logos are legally registered, making them legally protected as well. Consumer’s are
able to easily recognie and identify Adidas’, Nike’s, and Under Armour’s logo’s by only the
image.
Spokespeople
Every year, Under Armour hires a long list of celebrity
spokespersons to help leverage the Under Armour brand
to its various target markets. Each celebrity spokesperson
is chosen based on their high-profile status and ability to
reach and relate to a wide variety of demographics.
The use of celebrity spokespersons make the Under
Armour brand more memorable, meaningful, and likeable
to the consumer. This is because celebrity spokespeople
who appeal to consumers are more likely to grab and hold
the consumer’s attention while Under Armour delivers its
brand message. Also, by using celebrity endorsers such as
Tom Brady, it gives additional credibility to Under Armour’s products in that particular sporting
line.
Under Armour often chooses celebrity endorsers who are popular across different product lines
and geographical regions, making the brand transferable. Under Armour’s portfolio of
spokespersons is constantly being updated to reflect consumer preferences. This makes Under
Armour’s spokespersons adaptable as well.
Figure 18: Under Armour
Logo
Figure 19: Tom Brady, Popular NFL
Quarterback and Under Armour Spokesperson
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Under Armour’s competitors Adidas and Nike also regularly utilize the industry’s most popular
celebrity athletes to help make their ads more memorable, likeable, meaningful, transferable,
and adaptable.
Slogans
Under Armour positions itself as the unique, humble, and hungry underdog. Under Armour has
adapted and trademarked the motivational tagline, “I Will.” (Diaz, 2014). This simple, yet
motivational slogan is easy to recall and recognize, making it memorable to the consumer. The
slogan also emotionally connects with the consumer, making it meaningful and likeable. The
slogan is also transferable across product lines and geographical boundaries. Under Armour
has trademarked the logo, making it highly protectable. Moreover, Under Armour has updated
the slogan to “I will protect this house” and “I will what I want” in some of its marketing
campaigns, making it very adaptable. Under Armour’s tagline resonates with consumers as it
motivates them to unapologetically go after what they want, despite the negativity they may
receive from others. (Bohannon, 2014).
Adidas and Nike also both utilize motivational taglines to help make their respective brands
more memorable, meaningful, likeable, transferable, adaptable, and protectable. However,
Adidas’ “Impossible is nothing” tagline is less recognizable and from its competitors. Adidas’
“Impossible is nothing” tagline is also written in a way that it is less motivational and
internalized than Nike and Under Armour. For example, a consumer may set their alarm for a 5
a.m. workout to quickly realize 5:00 a.m. comes faster than expected and he/she is still
extremely tired. The athlete can say to him/herself “I will…make it to the gym this morning” or
think to him/herself “Just do it.” However, Adidas’ “Impossible is nothing” tagline falls short in
these situations, which prevents the consumer from connecting with the brand on levels he/she
could with Nike and Under Armour.
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Figure 20: Under Armour's tag line motivates consumers to go after their goals
Marketing SupportPrograms
Product
Under Armour’s product line provides men, women, and youth with a wide variety of athletic
apparel, footwear, and accessories. Under Armour’s athletic apparel comes in a variety of fits
and styles that are intended to enhance comfort and mobility, regulate body temperature, and
improve the athlete’s performance regardless of weather conditions. (Under Armour, 2015). As
mentioned in previous sections, consumers widely associate the Under Armour brand with its
compression line and/or as athletic gear for high performance male athletes. Therefore, in
effort to appeal to the everyday woman athlete, Under Armour developed a product line for
women called Studio. Studio is comprised of a wide selection of tight fitting athletic apparel,
mainly used for running or yoga. (Clifton, 2014).
However, many consumer reports indicate that women still are not familiar with the Under
Armour brand and if they’ve seen previous Under Armour ads or borrowed a boyfriend’s shirt,
they more than likely assume the brand line is for men. (Salter, 2005).
Fortunately for the Under Armour brand, the small surveyed group of individuals from WVU
contradict this statement. All 8 respondents, which was comprised of 6 females and 2 males,
were aware that Under Armour provides athletic gear for both men and women. However,
only 2 out of the 6 female respondents felt that the Under Armour brand appealed to them.
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Place
A majority of Under Armour’s sales are generated through wholesale channels, which include
national and regional sporting goods chains, independent and specialty retailers, and
department store chains such as Dicks Sporting Goods and Sports Authority. (Under Armour,
2015). Under Armour also owns 100 outlet locations and 5 full-priced stores. (Townsend,
2013).
In addition, Under Armour is opening a test
store in its hometown of Baltimore that will
ditch the company’s prevailing locker-room
vibe for natural light, cheery colors, and 10
times as many mannequins. (Townsend,
2013). The outreach to women is part of
Under Armour’s efforts to broaden out
beyond performance apparel and become
the next athletic apparel brand for everyone.
The various Under Armour store locations
combined with the Under Armour website
makes the brand very assessable for the consumer. All 8 WVU survey respondents agreed that
the Under Armour brand was easily obtainable for consumers.
Price
Under Armour’s has a strong brand reputation for manufacturing high-quality, dependable
products that enhance the athlete’s performance. This strong brand reputation translates into
more loyal customers and the ability to charge a higher price per unit than competitors.
(Campbell, 2013). As demonstrated in the Brand Inventory, consumers are willing to pay a $1
more for the Under Armour brand name than comparable merchandise from other strong
competing brands such as Adidas and Nike.
Despite being willing to pay more for the Under Armour brand, 5 out of the 8 WVU surveyed
disagreed to the statement that “Under Armour is a cost-efficient brand.” In addition, 3 out of
the 8 surveyed respondents stated that the thing they liked least about the Under Armour
brand was the price tag associated to the products.
Figure 21: Newly revamped section in an Under Armour store
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Promotion
As mentioned in the Brand Inventory section of the Brand Audit, Under Armour promotes it’s
product through a wide variety of traditional and digital marketing channels as well as various
sponsorships and endorsements. These campaigns have been largely successful because Under
Armour not only utilizes a large mix of integrated marketing channels to reach the consumer at
various stages in the buying cycle, but also because Under Armour develops marketing
promotions that emotionally connect with the consumer.
For example, in the Brand Inventory section we examined Under Armour’s digital video series
that followed Under Armour endorser, Cam Newton, as he prepared for the next NFL season
after undergoing a devastating ankle surgery. This particular video series was so successful
because the narrative depicted CamNewton as a real man, a real leader, and a real athlete,
rather than a super hero athlete that nails his objectives and goals every time he steps on the
field. (Oster, 2014). During the video series, consumers got to see CamNewton working
towards his college degree, his struggles as he recovered from survey, and him helping kids at
his charitable program. Consumers were able to relate to Cam Newton’s struggles and time
management responsibilities, in turn allowing them to further relate to the Under Armour
brand.
Another example of this is Under Armour’s 2014 ad featuring soccer star Heather Mitts. The
television ads features Heather Mitts speaking about her torn ACL, how devastating it was for
her to know the injury would keep her from her first World Cup, and her fear of the injury
would ultimately remove her from the sport entirely. Mitts speaks about how tired she was
when she could finally work out again and how she didn’t
think she could have made it back into the sport without her
teammates support. This particular ad was very relatable to
women everywhere because it spoke to many women’s
insecurities of not being able to complete your goals. It
spoke to overcoming the fatigue many women face when
they start back at the gym; and most of all, the ad was
relatable because it featured a woman in a very
unintimidating format.
In addition, Under Armour also aligns itself with several
socially responsible campaigns such as Under Armour’s
Power in Pink campaign, Win, and Protect This House. (Under
Armour, n.d.). This wide variety of socially responsible
charitable programs create a positive sentiment between
consumers and the Under Armour brand and can even
influence a consumer into purchasing the brand. (Nielson, 2014). Moreover, 57 percent of
Figure 22: Under Armour
spokesperson Heather Mitts
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global online consumers across 60 countries have said they are willing to pay more for products
and services provided by companies that are committed to positive social and environmental
impact. (Nielson, 2014). Therefore, the decision to align itself with several charitable programs
further drives positive consumer sentiment towards to the Under Armour brand.
Under Armour also launched a new website in 2011. When developing the website, Under
Armour developed the website with consumer’s usage in mind. Under Armour streamlined the
design and added innovative features such as a dynamic temperature tool that helps
consumers shop for hot or cold weather gear. Under Armour also added a fit guide and
additional personalization elements to the site to create a customizable shipping experience
that would increase consumer’s confidence when it came to shopping on the Under Armour
website as well as drive customer satisfaction and repeat site visits. (Huge, 2012).
Analysis of Under Armour’s Marketing Efforts
Strengths
The Under Armour brand has a very strong marketing presence from both a brand and
consumer perspective. Under Armour strategically utilizes various digital and traditional
marketing channels to more effectively leverage a tactful integrated marketing approach to a
largely diverse audience and builds positive consumer sentiment in the process. Whether you
are a hard core performance athlete, an athlete recovering from a devastating injury, or lacing
up the running shoes for the first time, Under Armour has a spokesperson and campaign that
relates to you. This helps consumers internalize and incorporate the Under Armour brand into
their everyday lives. Moreover, by redesigning the company website with the consumer in
mind, Under Armour is presenting consumers with a more positive, enjoyable shopping
experience that is sure to keep shoppers coming back time and time again. Under Armour’s
support of a wide variety of charities let Under Armour consumers feel good about purchasing
the Under Armour brand, letting Under Armour to in turn charge more for its premium
products.
Weaknesses
As stated in the Brand Inventory section of the Brand Audit, it wasn’t until 2014 that Under
Armour graduated from the “shrink it and pink it” approach. Therefore, Under Armour still has
a lot of marketing to do to fully penetrate the female demographic. Under Armour needs to
continuously work on developing products and marketing promotions that appeal to this new
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target audience. According to Gerard J. Tellis, the director of the Center for Global Innovation,
the Neely Chair of American Enterprise, and a professor of marketing, management, and
organization at the Marshall School of Business at the University of Southern California, it
typically takes a brand 6.2 years to achieve more than 2 percent penetration of a new market.
Therefore, while Under Armour is off to a great start, it needs to keep restlessly pushing
through to achieve its goal of being coming the largest athletic apparel brand for both the men
and women markets.
Surveyed Responses
Several times throughout the course of the Brand Explanatory there were mentions of findings
from a small group of surveyed respondents. The survey respondents consisted of 6 females
and 2 males from WVU’s Integrated Marketing Communications program. Survey respondents
come from a wide variety of age and geographical demographics. Below is a summary of the 3
brief survey questions as well as the responses received.
Question 1: When shopping for athletic apparel, do you tend to shop for a particular brand
over others? If so, what are the top 3 brands you seek out? Please list the brand names in
order from most frequently shopped to least.
0
1
2
3
4
5
6
7
Adidas Nike Under Armour Other
Prefered Athletic ApparelBrand of WVUCommunity
Men Women
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The chart above was placed in context to the brands examined throughout this particular brand
audit. As you can see, 0 of the surveyed respondents claimed Adidas to be one of their top 3
brands of choice. All of the surveyed women and men indicated that Nike is one of their top 3
brands of choice. Only 1 male and 1 female revealed that they actively sought the Under
Armour brand when making an athletic apparel purchase. Many respondents also disclosed
that they sought other brands such as Victoria’s Secret, Sketchers, LuLuLemon, Champion,
Columbia, Fabletics, and New Balance when making an athletic apparel purchase.
Question 2: What do you like the most about Under Armour? Least?
There were a large variety of answers to this question. Some of the surveyed respondents
refrained from answering this question for they have never purchased the Under Armour
brand.
What consumers liked the most about Under Armour:
 Under Armour is starting to reach out to women
 It’s a high-quality product
 Great quality brand. I like the fabric and texture
 Moisture control fabric
What consumers liked the least about Under Armour:
 Viewed as a brand for men only
 Viewed as a brand exclusively for men
 Dislike how Under Armour does not carry a line for women who are under 5’5’
 The brand can be expensive
 Price
 Viewed as a men’s brand only
Based off the responses above, it should be noted that while Under Armour is striving to appeal
to the women, 3 out of 6 female respondents still view Under Armour as an athletic brand for
males only.
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Question 3: Please indicated your agreement with the following statements.
Under Armour…
Provides high-quality athletic gear
6 out of the 8 respondents agree with the statement that Under Armour provides high-quality
athletic gear. Nobody disagreed with this statement. 2 people did not feel they’ve had enough
experience with the Under Armour brand to comment on this particular brand attribute.
0
1
2
3
4
5
6
7
Agree Disagree Neutral
Under Armour Provides High-Quality Athletic Gear
Consumer Responses
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Provides athletic gear in styles that appeal to me
As you can see from the chart above, both of the surveyed males agree that Under Armour
manufactured athletic gear that appeals to them. However, only 1 female responded that
Under Armour gear appeals to them. 2 women disagreed with this statement and an equal
amount of women were unsure.
0
0.5
1
1.5
2
2.5
Agree Disagree Not Sure
Under Armour provides athletic gear in styles that appeal
to the consumer
Men Women
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Is cost-efficient
While a majority (5 percent of the respondents) were unsure if the Under Armour brand was
cost-efficient, 3 respondents stated that they do not believe that Under Armour is cost-
efficient. Only 1 person agreed that Under Armour is a cost-efficient brand.
1
35
Under Armour is cost-efficient
Agreed Disagreed Unsure
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Meets the needs of men, women, and youth athletes
Half of the surveyed women believe that Under Armour fits the needs of men, women, and
youth, while the other half is unsure of this statement. Men respondents were also equally
split on this particular statement. 1 male respondent agreed to this statement while the other
indicated he was unsure.
0
0.5
1
1.5
2
2.5
3
3.5
Agree Disagree Unsure
Under Armour meets the needs of men, women, and youth
athletes
Men Respondents Women Respondents
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Is easily assessable for purchase
All 8 of the respondents agreed to the statement that Under Armour is easily assessable for
purchase.
Under Armour is easily accessiblefor purchase
Agree Disagree
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Provides quick, courteous customer service
A large majority of the respondents have no experience with Under Armour’s customer service
and could not answer the question. However, the one student who did have experience with
Under Armour’s customer service agreed to the statement that, “Under Armour provides quick,
courteous customer service.”
Under Armour provides quick, courtious customer service
Agree Disagree Not Sure
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Provides unique brand attributes that I cannot find anywhere else
The Under Armour brand prides itself on its innovative, technology enhanced athletic gear. Out
of the 8 surveyed respondents, 2 people agreed that they couldn’t find this type of athletic
apparel anywhere else. 2 people disagreed with this statement, while 4 people said they were
unsure.
Under Armour provides uniquebrand attributes that I can't
find anywhereelse
Agree Disagree Not Sure
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Develops quality marketing promotions that I find engaging and relevant
Under Armour puts a large portion of its resources towards its marketing promotions.
However, only 50% (1 respondent) of the surveyed men found the marketing promotions to be
engaging and relevant to them. Interestingly, 4 women found the marketing programs to be
relevant and engaging, while 1 respondent disagreed and another was not sure.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Agree Disagree Not Sure
Under Armour develops quality marketing promotions that
I find engaging and relevant
Men Women
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Brand Recommendations
Overall, Under Armour’s brand elements and current marketing strategies have helped Under
Armour grow to the second largest brand in the athletic apparel industry. However, if Under
Armour wants to continue to gain additional market share, Under Armour should focus its
marketing efforts on the following brand recommendations.
Brand Recommendation 1
Goal
To increase brand awareness of Under Armour’s women’s apparel line with the female
demographic.
Objective
Increase brand awareness of Under Armour’s women’s apparel line with the female
demographic by 15% in 12 months.
Strategies
Educate women on Under Armour’s brand offerings for women.
Tactics
Develop a series of television commercials, featuring women athletes and celebrities wearing
Under Armour women’s athletic apparel.
Develop a series of Facebook and Twitter ads that promote Under Armour’s women’s athletic
apparel line to women between the ages of 17 and 34 across the United States.
Send brand ambassadors to Under Armour outlet locations. Have brand ambassadors stand
outside the Under Armour outlet and hand out 20% discount coupons on women’s athletic
apparel line to women shoppers.
Work with large universities to become the official athletic apparel brand sponsor for its various
women’s teams.
Brand Recommendation 2
Goal
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Increase market share by educating consumers of Under Armour’s unique point-of-difference -
temperature control, performance gear.
Objective
Increase market share by 2% in 12 months by educating consumers of Under Armour’s unique
point-of-difference temperature control, performance gear.
Strategies
Educate consumers on the benefits of Under Armour’s temperature control, performance
enhancing athletic gear.
Tactics
Develop a series or television commercials and YouTube videos that educates consumers on
Under Armour’s unique temperature control, performance enhancing benefits.
Develop eye-catching signage that educates consumers on the benefits of each of Under
Armour’s performance gear lines. Signage should be placed near the respective gear lines at
Under Armour brand and factory stores, national and regional sporting good chains,
independent and specialty retailers, and department store chains that carry the Under Armour
brand.
Update the Under Armour website so it features the various temperature controlled athletic
apparel lines. Insert a button that will allow consumers to filter and search for the respective
Under Armour temperature controlled gear lines.
Brand Recommendation 3
Goal
Leverage current collegiate athletic apparel sponsorships to help secure new, additional
sponsorships in the future.
Objective
Leverage current collegiate athletic apparel sponsorships to help secure 3 new, additional
sponsorships in 12 months.
Strategies
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Market Under Armour’s current athletic apparel sponsorships to help build credibility to the
Under Armour brand as well as increase brand awareness in those respective fan based
markets.
Tactics
Secure testimonials from University officials and players about Under Armour’s athletic
sponsorship and products and market these testimonials on the Under Armour website, social
media channels, and informational marketing flyers.
Anytime a new collegiate athletic sponsorship is secured, announce the partnership on Under
Armour’s social media channels, the Under Armour website, and by releasing a press release.
Develop an engaging television commercial that will air during the respective sponsorship
season during game commercial breaks. Messaging should convey that Under Armour is the
official brand of the respective university and close with its logo and website URL.
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References
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Under Armour Brand Audit

  • 1. WVU IMC 613: Brand Audit Renee Watkins
  • 2. Renee Watkins IMC 613, Week9 Assignment Page 1 Table of Contents Executive Summary............................................................................................................................3 Company History ...............................................................................................................................4 Brand Inventory.................................................................................................................................5 Brand Position ............................................................................................................................5 Brand Hierarchy......................................................................................................................5 Market Share .........................................................................................................................5 Brand Elements...........................................................................................................................7 Brand Name...........................................................................................................................7 URL........................................................................................................................................8 Logo ......................................................................................................................................8 Spokespeople ........................................................................................................................8 Slogan .................................................................................................................................10 Marketing Support Programs ....................................................................................................12 Product ............................................................................................................................... 12 Place ...................................................................................................................................13 Price ...................................................................................................................................14 Promotion ........................................................................................................................... 14 Analysis of Under Armour’s Marketing Efforts ............................................................................ 17 Strengths ............................................................................................................................. 17 Weakness ............................................................................................................................ 17 Under Armour Competitors .......................................................................................................... 19 Adidas .................................................................................................................................19 Nike ....................................................................................................................................20 Competitive Analysis .................................................................................................................... 22 Brand Exploratory ........................................................................................................................... 23 Under Armour’s Brand Position..................................................................................................23 Competitor’s Brand Position Brand Position................................................................................ 24 Perceptual Map ........................................................................................................................ 25 Brand Elements......................................................................................................................... 26 Brand Name......................................................................................................................... 26 URL......................................................................................................................................26
  • 3. Renee Watkins IMC 613, Week9 Assignment Page 2 Logo ....................................................................................................................................27 Spokespeople ...................................................................................................................... 27 Slogan .................................................................................................................................28 Marketing Support Programs ....................................................................................................29 Product ............................................................................................................................... 29 Place ...................................................................................................................................30 Price ...................................................................................................................................30 Promotion ........................................................................................................................... 31 Analysis of Under Armour’s Marketing Efforts ............................................................................ 32 Strengths ............................................................................................................................. 32 Weakness ............................................................................................................................ 32 Surveyed Responses.................................................................................................................. 33 Brand Recommendations .......................................................................................................... 43 References .............................................................................................................................. 46
  • 4. Renee Watkins IMC 613, Week9 Assignment Page 3 Executive Summary The athletic apparel industry is the one of the fastest growing sectors of the apparel market today. Many consumers have found athletic apparel to be comfortable, versatile, and fashionable and therefore have been wearing athletic apparel to more places than just the gym. This increase in versatility and demand has lead athletic apparel sales to grow to $33.7 billion and represent 16% of total apparel market sales in 2014. (NPD Group, 2014). However, the growth doesn’t stop there. The athletic apparel industry is projected to grow an additional 4 percent over the next year. (NPD Group, 2014). Industry forecasters expect the largest segment of this growth to be in the women’s athletic apparel lines. (Tamariz, 2014). This projected increase in industry sales provides Under Armour with a unique, favorable opportunity to gain additional revenue, increase its market share, and better position the brand as it tries to close in on Nike for the title as the largest athletic brand in the industry. Lastly, one of Under Armour’s largest competitors, Adidas is losing ground as it struggles to connect with its consumer base. Under Armour could not ask for a better opportunity to strategically position itself for growth than it has right now. Failing to devote resources to Under Armour’s branding activities at this time will cause Under Amour to open the door and watch others take its place as one of the industry’s leading athletic apparel brands. Therefore, it’s imperative that Under Armour devotes its marketing resources to increasing brand awareness among the female demographic, marketing its unique synthetic temperature controlled athletic apparel, and continues to secure predominate athletic sponsorships. Under Armour can potentially enjoy several tangible benefits from devoting resources to these brand activities. These tangible benefits include increasing brand awareness among all the different gender and age markets, improving consumer perceptions of Under Armour’s unique synthetic apparel advantages, increase brand loyalty among Under Armour’s current market, increase market share – particularly in the women’s athletic apparel line and sport sponsorship areas, and lastly the ability to further the gap between Under Armour and its trailing competitors such as Adidas. Overall, Under Armour has the potential to increase its market share by 2% if it strategically implements a strong branding strategy.
  • 5. Renee Watkins IMC 613, Week9 Assignment Page 4 Where it all began Company History Under Armour was founded in 1996 by former University of Maryland special teams’ captain football player Kevin Plank. Back in his playing days, Kevin Plank hated having to change his sweat-soaked cotton T-shirts over and over again during two-a- day practices. After researching a variety of materials that would keep athletes dry and cool, Plank discovered the benefits of synthetic fabrics. Before long, Plank designed his first Under Armour HeatGear® T-Shirt, which he named #0037. Working from his grandmother’s basement in the Georgetown neighborhood of Washington DC, Kevin would travel up and down the East Coast selling his new, revolutionary #0037 product out of the trunk of his car. By the end of 1996, Plank made his first team sale and Under Armour generated $17,000 in sales. (Under Armour, n.d.). For the next three years, Under Armour grew at a slow pace. However, that all changed in 1999 when Under Armour caught a lucky media break. In 1999, Under Armour played a supporting, highly visual role in one of the year’s most talked about movies, Any Given Sunday. In the film, the football team predominately wore Under Armour apparel and accessories in key scenes. (Under Armour, n.d.). Capitalizing off his 15 minutes of fame, Plank made a large gamble and bought his first print ad in ESPN the Magazine. While risky, Plank’s decision paid off. The ESPN magazine ad, coupled with the success of the movie, generated brand awareness and a $750,000 increase in sales. (Under Armour, n.d.). Over the next two years, Under Armour formed relationships with key retail partners and professional sports leagues including Major League Baseball, the National Hockey League, and the Baltimore Marathon. (Under Armour, n.d.). In 2003, the brand launched its first TV campaign, Protect this House®. Protect this House® quickly became a rallying cry for athletes everywhere as it established the brand as a household name. Today, Under Armour provides men, women, and youth with a wide variety of athletic apparel, footwear, and accessories. Innovation and performance remain the heart of the Under Armour brand as it strives to make all athletes better through passion, design, and the relentless pursuit of innovation. (Under Armour, n.d.). Figure 1: Under Armour CEO, Kevin Plank
  • 6. Renee Watkins IMC 613, Week9 Assignment Page 5 Brand Inventory Brand Positioning Under Armour Brand Position Under Armour provides men, women, and youth with a wide variety of athletic apparel, footwear, and accessories. Examples of these products include hoodies, sweat shirts, polo’s, graphic T’s, sleeveless shirts, tanks, long sleeve shirts, short sleeve shirts, sports bras, outwear, pants, leggings, tights, capris, crops, shorts, underwear, shots, boots, and sandals. Under Armour’s athletic apparel comes in a variety of fits and styles that are intended to enhance comfort and mobility, regulate body temperature, and improve the athlete’s performance regardless of weather conditions. (Under Armour, 2015). Under Amour’s apparel is engineered to replace the traditional non-performance fabric retailors by strategically positioning it’s three gear lines which include HeatGear®, ColdGear®, and AllSeasonGear®. HeatGear® is designed to be worn in warm to hot temperatures under equipment or as a single layer. While sweat-soaked traditional, non-performance gear can weigh up to two or three pounds, HeatGear® is engineered with a unique microfiber blend that is designed to wick moisture from the body. This helps the body stay cool, dry, and light. HeatGear® is offered in a variety of tops and bottoms in a broad vast choice of colors and styles. ColdGear® is designed to wick moisture away from the body while circulating body heat from hot spots to help maintain core body temperature. (Under Armour, 2015). Under Armour Cold Gear® keeps athletes both dry and warm. ColdGear® was developed to be worn beneath a jersey, uniform, protective gear, or ski-vest. ColdGear® outerwear protects the athlete from the outside in. Because of its unique composition, ColdGear® usually sells at a higher price than Under Armour’s other product lines as well as its competitors. (Under Armour, 2015). AllSeasonGear® is designed to be worn in between extreme temperatures and was developed to keep the athlete cool and dry in warmer temperatures and warm in cooler temperatures. (Under Armour, 2015). All of Under Armour’s gear lines come in three primary fits. These fit includes compression fit, fitted, and loose.
  • 7. Renee Watkins IMC 613, Week9 Assignment Page 6 Brand Hierarchy Under Armour sells products to both the individual consumer and athletic organizations. Consumers have the ability to purchase Under Armour products in retail locations or online. Whether it’s the physical store or online, Under Armour offers products for men, women, and youth. Under Armour also provides customized apparel for both college and professional level sporting needs. Market Share As Under Armour enters the 2015 fiscal year, which also happens to be its 10 year anniversary as a public company, it has much to celebrate. In 2014, Under Armour’s stock rose over 150%. The brand’s 2014 Q4 earnings increased 35% on a year-over year basis. (Trefis Team, 2014). Moreover, Under Armour was able to increase net sales from $2,277.1 million in 2013 to $2,997.9 million in 2014. In other words, Under Armour increased net sales by $720.8 million or 31.7% in 2014. (Under Armour, 2015). Under Armour’s sports apparel sales now account for 14 percent of the U.S. market, allowing it to surpass Adidas and claimthe title as the second largest athletic apparel brand today. Under Armour Consumer products Retail Mens product lines Womens product lines Youth product lines Online Mens product lines Womens product lines Youth product lines Athletic Sponsorships College Professional
  • 8. Renee Watkins IMC 613, Week9 Assignment Page 7 (Mirabella, 2014). However, it is important to note that Under Armour’s woman’s apparel only contributes to 30 percent of Under Armour’s overall company sales. (Tamariz, 2014). Brand Elements Under Armour Brand Elements Brand elements are trademarkable devices that serve to identify and differentiate the brand from its competitors. (Keller, 2013). Keller suggest suggests marketers chose brand elements that build brand equity. The criteria for doing so is that a brand element should be memorable, meaningful, likable, transferable, adaptable, and protectable. (Keller, 2013). Memorability, meaningfulness, and likability are the marketer’s offensive strategy to build brand equity. A brand element that is transferable, adaptable, and protectable play a defensive role for leveraging and maintaining brand equity. Below is an examination of Under Armour’s brand elements and how they fit Keller’s six criteria for selecting brand elements. Brand name Very few people know how Under Armour got its brand name. Founder Kevin Plank was originally going to call the company Heart, thinking that athletes wear their heart on their sleeves. However, when it came to the patent and trademark process, Heart was rejected. Plank then planned on calling the company Body Armour when his older brother jokingly called the company Under Armour. Plank quickly rushed to the trademark office to patent the name, Under Amour. The reasons Plank added a “U” in Armour was because he was skeptical if the internet would still exist in the future. Therefore, he added the U because he thought the phone number 888-4Armour was more compelling than 888-44Armor. (Harrison, 2014). Despite the fact that Under Armour Kevin Plank’s third name choice, it was the best choice for it fulfills all six of Keller’s brand criteria. Under Armour’s unique name and spelling makes the brand name easily to recognize and to recall. The brand name is also very fun and interesting, transferable across all geographic boundaries, transferable across all product categories, and legally protected. In addition, consumer’s often associate the brand name with Under Armour’s original and most popular product line, compression gear. This brand association was developed because compression gear is often worn underneath the athlete’s main clothing
  • 9. Renee Watkins IMC 613, Week9 Assignment Page 8 pieces, hence the name Under Armour. While the brand did not consider this brand association during the naming process, it has inserted meaning into the Under Armour brand name. URL Under Armour’s website URL is www.underarmour.com. The URL is a direct translation of the brand name. This makes this particular brand element easy to recall and memorable. Competitors Adidas and Nike also use a direct translations of their brand names for the company URL. Logo Under Armour’s logo features a simple, overlying U and A with the company’s brand name written under the logo. The graphical representation of the U and A give the logo meaning and make it memorable. The Under Armour is logo is very clean, minimalistic, and easily transferred across geographic boundries and product lines, causing the logo to be likeable, adaptable, and transferable. The logo is also legally registered, making the logo protected. Adidas and Nike also have very simplistic, clean logos that are transferrered across geographic boundries and product lines, making the logo likeable, adaptable, and transferable. Both competitors logos are legally registered, making them legally protected. Spokespeople Under Armour utilizes a large variety of athletic spokespersons for its marketing campaigns. Under Armour looks for high-profile athletes that will increase brand awareness and generate buzz marketing across various consumer marketing channels. Under Armour’s current portfolio of celebrity spokespersons include Gisele Bundchen, Misty Copeland, Manteo Mitchell, Tom Brady, Cam Newton, Jermaine Jones, and Andy Murray. (Under Armour, 2015) By tying these athletes to the Under Armour brand name, Under Armour’s marketing efforts become more easily recalled, persuasive, likable, transferable, and adaptable. Celebrity endorsers such as Tom Brady and Misty Copeland create market credibility for the Under Armour brand in their specific sport markets. Figure 2: Under Armour Logo
  • 10. Renee Watkins IMC 613, Week9 Assignment Page 9 . Figure 3: Under Armour Spokespersons Under Armour’s competitors Adidas and Nike also regularly utilize celebrity athletes to help make their ads more memorable, likeable, meaningful, transferable, and adaptable. Since 1997, Adidas has been utilizing a long list of celebrity endorsers where the brand captures them with their “Adidas game face expression on.” This raw, authentic moment of passion shows itself in every Adidas moment. (Athlete Promotions, n.d.). Celebrities who showed their Adidas game face include, David Beckham, Josh Smith, Chauncey Billups, Tim Duncan, Tracy McGrady, Michael Beasley, Candace Parker, Tony Allen, Kendrick Perkins, Antwan Jamison, Deshawn Stevenson, Nene, Rodney Stuckey, Corey Maggette, Anthony Randolf, Jordan Farmar, Adam Morrison, Mario Chalmers and Luc Mbah A Moute. (Athlete Promotions, n.d.). Nike also owns a large, ever growing list of celebrity endorsers including, Carmelo Anthony, Derek Jeter, Chris Paul, Ray Allen, DJ Augustin, Mike Bibby, Dre Bly, Michael Finley, Richard Hamilton, April Holmes, Juwan Howard, Joe Johnson, Andruw Jones, Kevin Martin, Quentin Richardson, CC Sabathia, Bobby Simmons, Jason Taylor, Gerald Wallace, Josh Howard, Michael Crabtree, Dwight Freeney, LaMarr Woodley, Try Polamalu, Drew Brees, Larry Fitzgerald, Cristiano Ronaldo, Wayne Rooney, Andrew McCutchen, and Didier Drogba. (Athlete Promotions, n.d.). All of Nike’s celebrity endorsement ads include a picture of the athlete, a motivational quote, a URL, and the Nike logo.
  • 11. Renee Watkins IMC 613, Week9 Assignment Page 10 Figure 4: Nike Ad featuring celebrity spokesperson Lebron James Slogans Under Armour, who positions itself as the unique, humble, and hungry underdog, has adapted and trademarked the motivational tagline, “I Will.” (Diaz, 2014). This simple, yet motivational slogan is easy to recall and recognize, making it memorable. The slogan emotionally connects with the consumer, making it meaningful and likeable. The slogan is also transferable across product lines and geographical boundaries. Under Armour has trademarked the logo, making it highly protectable. Moreover, Under Armour has updated the slogan to “I will protect this house” and “I will what I want” in some of its marketing campaigns, making it very adaptable. Figure 5: Under Armour "I Will What I Want" Slogan Figure 6: Under Armour "I Will" Slogan
  • 12. Renee Watkins IMC 613, Week9 Assignment Page 11 Adidas and Nike also both utilize motivational taglines to help make their respective brands more memorable, meaningful, likeable, transferable, adaptable, and protectable. It wasn’t until 1974 that Adidas began associating the brand with its “Impossible is nothing” tagline. Despite the fact that the “Impossible is nothing” tagline is slightly less recognizable from its competitors, it was voted as one of the 40 Best Advertising Slogans of Modern Brands by Advergize. (Waltz, 2013). Adidas’ tagline was taken from a quote by one of the most legendry boxers and former Adidas endorser, Muhammad Ali. This helped make the Adidas slogan even more memorable, meaningful, likable, and adaptable. The slogan is trademarked making it protectable and it has been used across all of Adidas’ product lines making it transferable. Figure 7: Adidas slogan, "Impossible is nothing" Nike’s “Just Do It” tagline is one of the most recognizable and iconic taglines today. This tagline is easily recognizable and easy to recall, making it memorable. The tagline was adapted in 1988 after serial killer Gary Gilmore’s famous last words “Let’s do it.” Gilmore was executed by a firing squad in 1977. 11 years later, Nike modified those last words to “Just Do it.” Associate Professor and Director at George Washington University’s School of Business believes the tagline caught on because it was short, simple, easily understood and remembered. The slogan was to the point, a little bold, and confident just like many of Nike’s athletes at the time. (Martin, 2013). Even though those athletes have since changed, the tagline is still meaningful, likable, transferable, adaptable, and protected by trademarks today.
  • 13. Renee Watkins IMC 613, Week9 Assignment Page 12 Figure 8: Nike's iconic tagline, "Just Do It." Marketing SupportPrograms Product Under Armour’s product line provides men, women, and youth with a wide variety of athletic apparel, footwear, and accessories. Under Armour’s athletic apparel comes in a variety of fits and styles that are intended to enhance comfort and mobility, regulate body temperature, and improve the athlete’s performance regardless of weather conditions. (Under Armour, 2015). Under Amour’s apparel is engineered to replace the traditional non-performance fabric retailors by strategically positioning it’s three gear lines which include HeatGear®, ColdGear®, and AllSeasonGear®. Below is a full, comprehensive list of Under Armour’s product lines for each of these target markets. Under Armour’s Men’s Product Offerings Under Armour’s Women’s Product Offerings Under Armour’s Youth Product Offerings Hoodies and Sweatshirts Hoodies and Sweatshirts Hoodies and Sweatshirts Long sleeve shirts Long sleeve shirts Tops Short Sleeve Shirts Short Sleeve Shirts Bottoms Graphic T’s and Tanks Graphic T’s and Tanks Underwear Sleeveless and Tanks Sleeveless and Tanks Outwear Under Shirts Sports Bras and Bras Athletic Shoes Outwear Outwear Outwear Pants Pants Accessories Leggings and Tights Leggings and Tights
  • 14. Renee Watkins IMC 613, Week9 Assignment Page 13 All of Under Armour’s products are manufactured with technical fabrications produced by third parties and is developed in collaboration with product development teams. (Under Armour, 2015). This approach enables Under Armour to select and create superior, technically advanced fabrics, produced to Under Armour’s specifications while focusing its product development efforts on design, fit, climate, and product end use. Under Armour seeks to regularly update and improve products with the latest in innovative technology while producing its product offerings. (Under Armour, 2015). 74.3 percent of Under Armour’s product sales are contributed to its athletic apparel line. Footwear makes up 14 percent of sales, 8.9 percent of sales are tied to the accessories lines, and 2.8 percent to licensing and other revenues. (Under Armour, 2015). Place A majority of Under Armour’s sales are generated through wholesale channels, which include national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments, leagues, and teams. Under Armour also sales products directly to consumers through its own network of brand and factory house stores in the North America, Latin America, and Asia-Pacific operating segments and through global websites. (Under Armour, 2015). Shorts Capris and Crops Underwear Shorts Athletic Shoes Underwear Cleats Athletic shoes Boots Cleats Slides and Sandals Boots Accessories Slides and Sandals Accessories Figure 9: Under Armour Net Revenues
  • 15. Renee Watkins IMC 613, Week9 Assignment Page 14 Factory house stores allow Under Armour to sell a large portion of excess, discontinued, and out-of-season products while maintain the pricing integrity of the Under Armour brand and other distribution channels. When taking a closer look at the net revenues by distribution, Under Armour’s wholesale network contributes to 66.8 percent of revenues, direct to consumer networks equal out to 30.4 percent of net revenues, and licensing and other are responsible for only 2.8 percent. (Under Armour, 2015). Price Under Armour’s has a reputation for manufacturing high-quality, dependable products that enhance the athlete’s performance. This reputation allows Under Armour to charge a slightly higher price than the competition. The table below shows a price comparison for a basic men’s T-shirt from Adidas, Nike, and Under Armour. The basic men’s T selected across the various brands is comparable in fabric, style, and fit. Brand Price for basic men’sT Adidas $22.00 Nike $22.00 Under Amour $22.99 Promotion Under Armour promotes it’s product through a wide variety of traditional and digital marketing channels. Under Armour also employs numerous sponsorship and endorsement marketing efforts. Digital Marketing Channels Figure 10: Under Armour's Net Revenues by Distribution
  • 16. Renee Watkins IMC 613, Week9 Assignment Page 15 Under Armour utilizes a large variety of digital marketing channels to promote its brand. In 2014, Under Armour developed a five episode digital video series that followed Under Armour endorser, Cam Newton, as he prepared for the next NFL season. Under Armour’s video focused on keeping a positive mindset through tough times, such as just missing the NFC championship game in the prior year’s playoffs and undergoing ankle surgery. The video underscores Under Armour’s brand mission to empower all athletes and make them better through passion. (O'Brien, 2014). The Under Armour logo was predominately displayed throughout the entire video. In less than a week, the six minute video was viewed more than 150,000 times and featured on Under Armour’s website. (O'Brien, 2014). In 2011, Under Armour launched a new website expressing the boldness and innovation of the Under Armour brand, allowing its products and athletes to shine. With its streamlined, inspirational design and innovative features such as a dynamic temperature tool to help users shop for hot or cold weather gear and a fit guide to ensure customers would feel confident in purchasing online, the site redefined the Under Armour shopping experience. Additional personalization elements were also added to the site to create a customizable shopping experience that would drive customer satisfaction and repeat site visits. The overhaul of the Under Armour website was proven successful for ecommerce sales increased 59 percent year- over-year. (Huge, 2012). Under Armour also utilizes several social media so users can continue the conversation between purchases. Users are encouraged to share product ratings and reviews as well as build a sense of community with other Under Armour customers. (Huge, 2012). Under Armour’s Facebook page now boasts 21,000 followers. Traditional Marketing Channels Under Armour utilizes print magazine advertisements and television spots to market its products to a wide variety of audiences. Television spots focus on the athletes’ ability to overcome obstacles and finding the will from within to set your own path. Print ads are very simplistic in nature and often are an image that was taken from the television commercial. Ads feature the Under Armour logo and motivational tagline.
  • 17. Renee Watkins IMC 613, Week9 Assignment Page 16 Figure 11: Under Armour Print Ad Under Armour also aligns itself with several socially responsible campaigns. These campaigns include Under Armour’s Power in Pink campaign where Under Armour contributes $2 million annually to John Hopkins to develop the Live Well Center and support research and innovation in the field of breast health. (Under Armour, n.d.). The second campaign, Win, is focused on empowering athletes of the next generation. This campaign provides kids in underserved communities access to sports by enhancing the places where the kids play, investing in programs that use sports to teach life kills, outfitting kids with the latest products, and supporting people who dedicate their time to coaching. (Under Armour, n.d.). The last campaign, Protect This House, supports the United States’ armed forces. Annually, Under Armour donates $250,000 to support First Responders, Military Support Organizations, Law Enforcement Officers, and Veterans who have committed to keeping us safe. (Under Armour, n.d.). Sponsorships and Endorsements Under Armour’s marketing and promotional strategy starts with selling its products to high- performing athletes and teams on the high school, collegiate, and professional levels. Under Armour executes this strategy through outfitting agreements, professional and collegiate sponsorships, individual athlete agreements, and by providing and selling products directly to team equipment managers and individual athletes. (Under Armour, 2015). As a result, Under Armour’s products are seen on the field, giving them exposure to various consumer audiences through the internet, television, magazines, and live sporting events.
  • 18. Renee Watkins IMC 613, Week9 Assignment Page 17 In addition to the list of celebrity endorsers listed in the brand element section, Under Armour currently sponsors 13 athletic departments on the college level. These schools include Auburn, Hawaii, Maryland, Texas Tech, Boston College, Utah, Notre Dame, Northwestern, St. John's, Navy, Colorado State, South Florida and South Carolina. (Rovell, 2014). Analysis of Under Armour’s Marketing Efforts Strengths The Under Armour brand has a very strong marketing presence. Under Armour strategically utilizes various digital and traditional marketing channels to more effectively leverage a tactful integrated marketing approach to a largely diverse audience. Under Armour has also redesigned its ecommerce website to make shopping an easier, more enjoyable experience. In addition Under Armour builds a sense of community through its social media presence and ability to allow users to rate and review products on its website. Millennials trust user generated content 50 percent more than other forms of media, making it a great addition to Under Armour’s digital platforms. (Knoblauch, 2014). Celebrity endorsers bring more credibility and higher brand awareness to Under Armour’s product lines. By sponsoring college athletics, Under Armour is positioning itself to gain additional media coverage and build brand loyalty from consumers at a younger age. Weaknesses Until 2014, Under Armour’s approached its woman’s line by the “shrink it and pink it” approach. This concept did not appeal to the female audience, causing Under Armour to destroy $600,000 in clothing. (Schultz, 2014). In 2014, Under Armour targeted the $410 million American women’s apparel business with a series of digital and traditional media ads. While these advertisements created a positive response from women (as seen in the chart below), women’s apparel still only makes up 30 percent of Under Armour’s total sales. (Lutz, 2012).
  • 19. Renee Watkins IMC 613, Week9 Assignment Page 18 Figure 12: Women's positive sentiment to the Under Armour women's campaign Under Armour will can’t rely on a single marketing campaign to leverage its women’s fitness lines. Under Armour will need to continuously focus its marketing efforts and spend in this area to increase sales and capture a larger portion of this ever growing market.
  • 20. Renee Watkins IMC 613, Week9 Assignment Page 19 Under Armour’s competitors Competitive Environment While there are many competitors in the athletic apparel industry, Under Armour should focus on two particular brands, Adidas and Nike. Adidas Adidas was founded in Germany in 1949 by Adolf Dassler. (Adidas Group, n.d.). Adidas has a clear mission to be the globally leading and most popular sporting good brand. Adidas offers men, women, and youth a vast variety of products, which are aimed at supporting athletes in their lifestyle. Market Share Adidas, who was once the second largest athletic apparel brand has recently fallen to third behind Under Armour. (Mirabella, 2014). This recent drop was monumental for the Adidas brand for that it was the first time Adidas has ever been in the number three spot. In 2014, Adidas’ combined sales of athletic footwear and apparel fell 23% to $1.1 billion. During the same time, Under Armour’s sales were up over the same period to $1.2 billion. (Germano, Adidas Slips Behind Under Armour in U.S., 2014). Adidas associates this loss in revenue to the company’s lack of focus. Adidas plans to rebound in the market by entering into several sponsorships including supplying NBA and NHL jerseys. The company also endorses NBA point guards Derrick Rose of the Chicago Bulls and John Wall of the Washington Wizards. Adidas also hopes to release a popular signature sneaker line for Mr. Wall that will retail for $115. (Adidas Group, n.d.). However, climbing back to the number 2 spot will be a difficult feat for Adidas for customers, especially in the youth apparel market, strongly prefer Nike and Under Armour products. Moreover, Nike is gaining ground in Adidas’ core European market as Adidas struggles for traction in the United States. (Adidas Group, n.d.). Adidas currently owns 6 percent of the athletic apparel market. (Mirabella, 2014). Figure 13: Adidas logo
  • 21. Renee Watkins IMC 613, Week9 Assignment Page 20 Nike Founded in 1972, Nike is the world’s largest and most iconic athletic apparel brand today. Nike offers men, women, and youth a large and diverse selection of athletic apparel, equipment, footwear, and accessories. While much has changed in the athletic apparel industry, Nike attributes its success to staying true to its mission and by bringing inspiration and innovation to every athlete. Nike believes the recipe for success is to develop sustainable, quality products for its consumers while connecting with them on a deeper, more meaningful level. (Nike, 2014). Nike connects with its target audience through a diverse set of marketing communications including TV commercials, print ads, digital retargeting efforts, social media communities, professional and colligate sponsorships, and more. Market Share Current market leader Nike, far outpaces its competitors with a combined total of $8.9 billion in sales. Nike also owns 46% of the athletic footwear market and a third of all sports apparel sales. (Mirabella, 2014). In fiscal year 2014 alone, Nike’s revenue grew 10% and its gross margin increased 120 basis points, despite the rising cost environment. Moreover, Nike’s profitability in North America hit a record high. (Nike, 2014). Despite Under Armour’s impressive market share gains, Nike tops Under Armour in revenue performance by $24.8 billion. (Peterson, 2014). Figure 14: Nike Logo
  • 22. Renee Watkins IMC 613, Week9 Assignment Page 21 Figure 15: Revenue comparison between Nike and Under Armour
  • 23. Renee Watkins IMC 613, Week9 Assignment Page 22 Figure 16: Under Armour vs Competitors Market share Competitive Analysis Points-of-parity Under Armour shares many brand attributes with its competitors, Adidas and Nike. All 3 brands offer high-quality, easily obtainable athletic apparel for men, women, and youth. Under Armour, Adidas, and Nike also spend a large portion of their marketing budget sponsoring professional and collegiate athletics. In addition, all 3 athletic brands maintain an active social media presence filled with images of sponsored athletes and motivational quotes. Points-of-difference Despite the similarities listed above, Under Armour’s synthetic apparel provides one core point- of-difference than its competitors. This point-of-difference is that Under Armour’s athletic apparel is designed with the latest technology to enhance an athlete’s comfort and mobility, regulate body temperature, and enhance an athlete’s performance. Under Armour’s compression gear improves the body’s coordination of muscle patterns, spatial awareness, and reduces muscle movement, which helps prevent injury. Compression gear also enhances the athlete’s power, endurance, and ability to jump repeatedly, more effectively. 44% 14% 6% 36% Market Share (in percentages) Nike Under Armour Adidas Other Brands
  • 24. Renee Watkins IMC 613, Week9 Assignment Page 23 Brand Exploratory Brand Positioning Under Armour Brand Position As mentioned in the Brand Inventory section of the Brand Audit, Under Armour provides men, women, and youth with a wide variety of athletic apparel, footwear, and accessories. Under Armour’s athletic apparel comes in a variety of fits and styles that are intended to enhance comfort and mobility, regulate body temperature, and improve the athlete’s performance regardless of weather conditions. (Under Armour, 2015). A large majority of consumers associate Under Armour as a high-end, high-quality, premier athletic brand. (Campbell, 2013). When the marketing research company iModerate asked consumers describe the Under Armour brand, they were quick to point out all of the technical aspects that make Under Armour functional in the most challenging of conditions. Aside from minimal mentions of price and overall quality, consumers used descriptive language such as “wicking,” “skin-tight,” “insulating,” and “breathable” to describe the brand. (iModerate Research Technologies, n.d.). Moreover, athletes found that Under Armour’s most motivating quality is the performance of the gear. Athletes report that the Under Armour brand protects them from outside weather elements, giving them no excuses to miss a work out. (iModerate Research Technologies, n.d.). In fact, iModerate survey respondents were quoted saying, “Having equipment to withstand unfavorable weather motivates you to stay active even when Mother Nature doesn’t” and “Just having the Under Armour symbol on my shirt motivates me. I don’t want to be seen eating a burger and fries. I want to be seen going through a grueling workout or Tough Mudder event.” However, it’s important to note that while Under Armour’s focus on performance may appeal to consumers who live a largely athletic lifestyle, it also alienates a large sector of the population that doesn’t associate themselves to this degree of athleticism. (iModerate Research Technologies, n.d.). Therefore, Under Armour, which also happens to have started out as a male-centric niche football brand, tends to particularly alienate those less who are uninspired by the perceived unattainable fitness level and women. A small group of students and a professor from West Virginia University’s (WVU) Integrated Marketing Communications graduate program was surveyed to give their perceptions of the Under Armour brand. The small WVU research group was comprised of 8 members, 6 females and 2 males from various age groups. All 8 of the surveyed group members agreed that Under Armour provides high-quality athletic gear. However, only 2 out of the 6 female respondents believed that the Under Armour brand provides athletic apparel that appeals to them.
  • 25. Renee Watkins IMC 613, Week9 Assignment Page 24 Competitors Brand Perceptions Adidas Even though Adidas has recently fallen to third in the athletic apparel industry, the Adidas brand still has a reputation for quality. (Lefton, 2014). However, Adidas’s brand image is still greatly linked to soccer, tear-a-way pants, and Run DMC, which has caused the Adidas brand to be perceived more as “an oldie but a goodie” or more of a retro brand rather than consumer’s brand of choice. Figure 17: RUN DMC in their iconic Adidas track suit Nike It’s no surprise that Nike, who owns 44% of the athletic apparel’s market share has found a way to fit into everyone’s lifestyle. According to iModerate’s brand survey, consumers turn to the Nike brand for practicality, performance, and fashion. (iModerate Research Technologies, n.d.). From the recreational park-walker to the true elite athlete, Nike has you covered. Moreover, Nike’s advertisements feature compelling stories that inspire and motivate consumers, regardless of age or athletic ability. Consumers have been quoted saying that “Nike ads show that no matter what you look like, you can succeed at your goals.” (iModerate Research Technologies, n.d.).
  • 26. Renee Watkins IMC 613, Week9 Assignment Page 25 Despite gender, age, and geographical differences, all 8 members of the WVU study group identified Nike as one of their top 3 brands for athletic apparel, further supporting this testament. Perceptual Map of Under Armour and its Competitor’s Brand Perceptions Below is a perceptual map that depicts Adidas, Nike, and Under Armour’s brand perceptions in the market place. Adidas, who is now the third largest brand in the athletic apparel industry is appropriately situated below Nike and Under Armour when it comes to product quality. However, thanks to Adidas’ brand associations with Run DMC and tear-a-way pants, Adidas is perceived more as a lifestyle brand rather than an overall performance brand. Nike, the athletic apparel industry leader is strategically placed at the highest point of the perceptual map in relation to its perceived quality. Nike is seen as a high-quality brand that fits every lifestyle, whether it’s a first time runner or an avid racer. Therefore Nike is place largely High Quality Lifestyle Performance Low Quality
  • 27. Renee Watkins IMC 613, Week9 Assignment Page 26 in the lifestyle portion of the graph but is very close to being positioned as a performance brand as well. Under Armour is perceived as the brand of athletes, which strategically positions the brand to the far right of the perceptual graph. Like Adidas and Nike, Under Armour is perceived as a high-quality athletic brand. Brand Elements Under Armour Brand Elements As previously discussed in the Brand Inventory section, brand elements are trademarkable devices that serve to identify and differentiate the brand from its competitors. (Keller, 2013). Brand elements should be memorable, meaningful, likable, transferable, adaptable, and protectable. (Keller, 2013). Below is an examination of Under Armour’s brand elements from the consumer’s perspective and how they fit Keller’s six criteria for selecting brand elements. Brand name Under Armour owns 75% of the compression market. (Salter, 2005). This has caused the Under Armour brand name to become synonymous to the compression gear market, just as Kleenex and Band-Aid have in the past. While compression gear is only a portion of Under Armour’s product offerings, this brand association has helped leverage the Under Armour brand name, making it more memorable, meaningful, adaptable, and transferable in the consumer’s eyes. Nike and Adidas have not reached a synonymous brand and product association in the market the way Under Armour has. URL Under Armour’s website URL is www.underarmour.com. The URL is a direct translation of the brand name. This makes this particular brand element easy for consumers to recall and memorize. Competitors Adidas and Nike also use a direct translations of their brand names for the company URL.
  • 28. Renee Watkins IMC 613, Week9 Assignment Page 27 Logo Under Armour’s logo features a simple, overlying U and A with the company’s brand name written under the logo. The graphical representation of the U and A give the logo meaning and allow consumers to easily regonize and memorize the Under Armour logo. In addition, the logo is very clean, minimalistic, visually appealing and easily transferred across geographic boundries and product lines, causing the logo to be likeable, adaptable, and transferable. The logo is also legally registered, making the logo protected. Adidas and Nike also have very simplistic, clean logos that are transferrered across geographic boundries and product lines, making the logo likeable, adaptable, and transferable. Both competitors logos are legally registered, making them legally protected as well. Consumer’s are able to easily recognie and identify Adidas’, Nike’s, and Under Armour’s logo’s by only the image. Spokespeople Every year, Under Armour hires a long list of celebrity spokespersons to help leverage the Under Armour brand to its various target markets. Each celebrity spokesperson is chosen based on their high-profile status and ability to reach and relate to a wide variety of demographics. The use of celebrity spokespersons make the Under Armour brand more memorable, meaningful, and likeable to the consumer. This is because celebrity spokespeople who appeal to consumers are more likely to grab and hold the consumer’s attention while Under Armour delivers its brand message. Also, by using celebrity endorsers such as Tom Brady, it gives additional credibility to Under Armour’s products in that particular sporting line. Under Armour often chooses celebrity endorsers who are popular across different product lines and geographical regions, making the brand transferable. Under Armour’s portfolio of spokespersons is constantly being updated to reflect consumer preferences. This makes Under Armour’s spokespersons adaptable as well. Figure 18: Under Armour Logo Figure 19: Tom Brady, Popular NFL Quarterback and Under Armour Spokesperson
  • 29. Renee Watkins IMC 613, Week9 Assignment Page 28 Under Armour’s competitors Adidas and Nike also regularly utilize the industry’s most popular celebrity athletes to help make their ads more memorable, likeable, meaningful, transferable, and adaptable. Slogans Under Armour positions itself as the unique, humble, and hungry underdog. Under Armour has adapted and trademarked the motivational tagline, “I Will.” (Diaz, 2014). This simple, yet motivational slogan is easy to recall and recognize, making it memorable to the consumer. The slogan also emotionally connects with the consumer, making it meaningful and likeable. The slogan is also transferable across product lines and geographical boundaries. Under Armour has trademarked the logo, making it highly protectable. Moreover, Under Armour has updated the slogan to “I will protect this house” and “I will what I want” in some of its marketing campaigns, making it very adaptable. Under Armour’s tagline resonates with consumers as it motivates them to unapologetically go after what they want, despite the negativity they may receive from others. (Bohannon, 2014). Adidas and Nike also both utilize motivational taglines to help make their respective brands more memorable, meaningful, likeable, transferable, adaptable, and protectable. However, Adidas’ “Impossible is nothing” tagline is less recognizable and from its competitors. Adidas’ “Impossible is nothing” tagline is also written in a way that it is less motivational and internalized than Nike and Under Armour. For example, a consumer may set their alarm for a 5 a.m. workout to quickly realize 5:00 a.m. comes faster than expected and he/she is still extremely tired. The athlete can say to him/herself “I will…make it to the gym this morning” or think to him/herself “Just do it.” However, Adidas’ “Impossible is nothing” tagline falls short in these situations, which prevents the consumer from connecting with the brand on levels he/she could with Nike and Under Armour.
  • 30. Renee Watkins IMC 613, Week9 Assignment Page 29 Figure 20: Under Armour's tag line motivates consumers to go after their goals Marketing SupportPrograms Product Under Armour’s product line provides men, women, and youth with a wide variety of athletic apparel, footwear, and accessories. Under Armour’s athletic apparel comes in a variety of fits and styles that are intended to enhance comfort and mobility, regulate body temperature, and improve the athlete’s performance regardless of weather conditions. (Under Armour, 2015). As mentioned in previous sections, consumers widely associate the Under Armour brand with its compression line and/or as athletic gear for high performance male athletes. Therefore, in effort to appeal to the everyday woman athlete, Under Armour developed a product line for women called Studio. Studio is comprised of a wide selection of tight fitting athletic apparel, mainly used for running or yoga. (Clifton, 2014). However, many consumer reports indicate that women still are not familiar with the Under Armour brand and if they’ve seen previous Under Armour ads or borrowed a boyfriend’s shirt, they more than likely assume the brand line is for men. (Salter, 2005). Fortunately for the Under Armour brand, the small surveyed group of individuals from WVU contradict this statement. All 8 respondents, which was comprised of 6 females and 2 males, were aware that Under Armour provides athletic gear for both men and women. However, only 2 out of the 6 female respondents felt that the Under Armour brand appealed to them.
  • 31. Renee Watkins IMC 613, Week9 Assignment Page 30 Place A majority of Under Armour’s sales are generated through wholesale channels, which include national and regional sporting goods chains, independent and specialty retailers, and department store chains such as Dicks Sporting Goods and Sports Authority. (Under Armour, 2015). Under Armour also owns 100 outlet locations and 5 full-priced stores. (Townsend, 2013). In addition, Under Armour is opening a test store in its hometown of Baltimore that will ditch the company’s prevailing locker-room vibe for natural light, cheery colors, and 10 times as many mannequins. (Townsend, 2013). The outreach to women is part of Under Armour’s efforts to broaden out beyond performance apparel and become the next athletic apparel brand for everyone. The various Under Armour store locations combined with the Under Armour website makes the brand very assessable for the consumer. All 8 WVU survey respondents agreed that the Under Armour brand was easily obtainable for consumers. Price Under Armour’s has a strong brand reputation for manufacturing high-quality, dependable products that enhance the athlete’s performance. This strong brand reputation translates into more loyal customers and the ability to charge a higher price per unit than competitors. (Campbell, 2013). As demonstrated in the Brand Inventory, consumers are willing to pay a $1 more for the Under Armour brand name than comparable merchandise from other strong competing brands such as Adidas and Nike. Despite being willing to pay more for the Under Armour brand, 5 out of the 8 WVU surveyed disagreed to the statement that “Under Armour is a cost-efficient brand.” In addition, 3 out of the 8 surveyed respondents stated that the thing they liked least about the Under Armour brand was the price tag associated to the products. Figure 21: Newly revamped section in an Under Armour store
  • 32. Renee Watkins IMC 613, Week9 Assignment Page 31 Promotion As mentioned in the Brand Inventory section of the Brand Audit, Under Armour promotes it’s product through a wide variety of traditional and digital marketing channels as well as various sponsorships and endorsements. These campaigns have been largely successful because Under Armour not only utilizes a large mix of integrated marketing channels to reach the consumer at various stages in the buying cycle, but also because Under Armour develops marketing promotions that emotionally connect with the consumer. For example, in the Brand Inventory section we examined Under Armour’s digital video series that followed Under Armour endorser, Cam Newton, as he prepared for the next NFL season after undergoing a devastating ankle surgery. This particular video series was so successful because the narrative depicted CamNewton as a real man, a real leader, and a real athlete, rather than a super hero athlete that nails his objectives and goals every time he steps on the field. (Oster, 2014). During the video series, consumers got to see CamNewton working towards his college degree, his struggles as he recovered from survey, and him helping kids at his charitable program. Consumers were able to relate to Cam Newton’s struggles and time management responsibilities, in turn allowing them to further relate to the Under Armour brand. Another example of this is Under Armour’s 2014 ad featuring soccer star Heather Mitts. The television ads features Heather Mitts speaking about her torn ACL, how devastating it was for her to know the injury would keep her from her first World Cup, and her fear of the injury would ultimately remove her from the sport entirely. Mitts speaks about how tired she was when she could finally work out again and how she didn’t think she could have made it back into the sport without her teammates support. This particular ad was very relatable to women everywhere because it spoke to many women’s insecurities of not being able to complete your goals. It spoke to overcoming the fatigue many women face when they start back at the gym; and most of all, the ad was relatable because it featured a woman in a very unintimidating format. In addition, Under Armour also aligns itself with several socially responsible campaigns such as Under Armour’s Power in Pink campaign, Win, and Protect This House. (Under Armour, n.d.). This wide variety of socially responsible charitable programs create a positive sentiment between consumers and the Under Armour brand and can even influence a consumer into purchasing the brand. (Nielson, 2014). Moreover, 57 percent of Figure 22: Under Armour spokesperson Heather Mitts
  • 33. Renee Watkins IMC 613, Week9 Assignment Page 32 global online consumers across 60 countries have said they are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact. (Nielson, 2014). Therefore, the decision to align itself with several charitable programs further drives positive consumer sentiment towards to the Under Armour brand. Under Armour also launched a new website in 2011. When developing the website, Under Armour developed the website with consumer’s usage in mind. Under Armour streamlined the design and added innovative features such as a dynamic temperature tool that helps consumers shop for hot or cold weather gear. Under Armour also added a fit guide and additional personalization elements to the site to create a customizable shipping experience that would increase consumer’s confidence when it came to shopping on the Under Armour website as well as drive customer satisfaction and repeat site visits. (Huge, 2012). Analysis of Under Armour’s Marketing Efforts Strengths The Under Armour brand has a very strong marketing presence from both a brand and consumer perspective. Under Armour strategically utilizes various digital and traditional marketing channels to more effectively leverage a tactful integrated marketing approach to a largely diverse audience and builds positive consumer sentiment in the process. Whether you are a hard core performance athlete, an athlete recovering from a devastating injury, or lacing up the running shoes for the first time, Under Armour has a spokesperson and campaign that relates to you. This helps consumers internalize and incorporate the Under Armour brand into their everyday lives. Moreover, by redesigning the company website with the consumer in mind, Under Armour is presenting consumers with a more positive, enjoyable shopping experience that is sure to keep shoppers coming back time and time again. Under Armour’s support of a wide variety of charities let Under Armour consumers feel good about purchasing the Under Armour brand, letting Under Armour to in turn charge more for its premium products. Weaknesses As stated in the Brand Inventory section of the Brand Audit, it wasn’t until 2014 that Under Armour graduated from the “shrink it and pink it” approach. Therefore, Under Armour still has a lot of marketing to do to fully penetrate the female demographic. Under Armour needs to continuously work on developing products and marketing promotions that appeal to this new
  • 34. Renee Watkins IMC 613, Week9 Assignment Page 33 target audience. According to Gerard J. Tellis, the director of the Center for Global Innovation, the Neely Chair of American Enterprise, and a professor of marketing, management, and organization at the Marshall School of Business at the University of Southern California, it typically takes a brand 6.2 years to achieve more than 2 percent penetration of a new market. Therefore, while Under Armour is off to a great start, it needs to keep restlessly pushing through to achieve its goal of being coming the largest athletic apparel brand for both the men and women markets. Surveyed Responses Several times throughout the course of the Brand Explanatory there were mentions of findings from a small group of surveyed respondents. The survey respondents consisted of 6 females and 2 males from WVU’s Integrated Marketing Communications program. Survey respondents come from a wide variety of age and geographical demographics. Below is a summary of the 3 brief survey questions as well as the responses received. Question 1: When shopping for athletic apparel, do you tend to shop for a particular brand over others? If so, what are the top 3 brands you seek out? Please list the brand names in order from most frequently shopped to least. 0 1 2 3 4 5 6 7 Adidas Nike Under Armour Other Prefered Athletic ApparelBrand of WVUCommunity Men Women
  • 35. Renee Watkins IMC 613, Week9 Assignment Page 34 The chart above was placed in context to the brands examined throughout this particular brand audit. As you can see, 0 of the surveyed respondents claimed Adidas to be one of their top 3 brands of choice. All of the surveyed women and men indicated that Nike is one of their top 3 brands of choice. Only 1 male and 1 female revealed that they actively sought the Under Armour brand when making an athletic apparel purchase. Many respondents also disclosed that they sought other brands such as Victoria’s Secret, Sketchers, LuLuLemon, Champion, Columbia, Fabletics, and New Balance when making an athletic apparel purchase. Question 2: What do you like the most about Under Armour? Least? There were a large variety of answers to this question. Some of the surveyed respondents refrained from answering this question for they have never purchased the Under Armour brand. What consumers liked the most about Under Armour:  Under Armour is starting to reach out to women  It’s a high-quality product  Great quality brand. I like the fabric and texture  Moisture control fabric What consumers liked the least about Under Armour:  Viewed as a brand for men only  Viewed as a brand exclusively for men  Dislike how Under Armour does not carry a line for women who are under 5’5’  The brand can be expensive  Price  Viewed as a men’s brand only Based off the responses above, it should be noted that while Under Armour is striving to appeal to the women, 3 out of 6 female respondents still view Under Armour as an athletic brand for males only.
  • 36. Renee Watkins IMC 613, Week9 Assignment Page 35 Question 3: Please indicated your agreement with the following statements. Under Armour… Provides high-quality athletic gear 6 out of the 8 respondents agree with the statement that Under Armour provides high-quality athletic gear. Nobody disagreed with this statement. 2 people did not feel they’ve had enough experience with the Under Armour brand to comment on this particular brand attribute. 0 1 2 3 4 5 6 7 Agree Disagree Neutral Under Armour Provides High-Quality Athletic Gear Consumer Responses
  • 37. Renee Watkins IMC 613, Week9 Assignment Page 36 Provides athletic gear in styles that appeal to me As you can see from the chart above, both of the surveyed males agree that Under Armour manufactured athletic gear that appeals to them. However, only 1 female responded that Under Armour gear appeals to them. 2 women disagreed with this statement and an equal amount of women were unsure. 0 0.5 1 1.5 2 2.5 Agree Disagree Not Sure Under Armour provides athletic gear in styles that appeal to the consumer Men Women
  • 38. Renee Watkins IMC 613, Week9 Assignment Page 37 Is cost-efficient While a majority (5 percent of the respondents) were unsure if the Under Armour brand was cost-efficient, 3 respondents stated that they do not believe that Under Armour is cost- efficient. Only 1 person agreed that Under Armour is a cost-efficient brand. 1 35 Under Armour is cost-efficient Agreed Disagreed Unsure
  • 39. Renee Watkins IMC 613, Week9 Assignment Page 38 Meets the needs of men, women, and youth athletes Half of the surveyed women believe that Under Armour fits the needs of men, women, and youth, while the other half is unsure of this statement. Men respondents were also equally split on this particular statement. 1 male respondent agreed to this statement while the other indicated he was unsure. 0 0.5 1 1.5 2 2.5 3 3.5 Agree Disagree Unsure Under Armour meets the needs of men, women, and youth athletes Men Respondents Women Respondents
  • 40. Renee Watkins IMC 613, Week9 Assignment Page 39 Is easily assessable for purchase All 8 of the respondents agreed to the statement that Under Armour is easily assessable for purchase. Under Armour is easily accessiblefor purchase Agree Disagree
  • 41. Renee Watkins IMC 613, Week9 Assignment Page 40 Provides quick, courteous customer service A large majority of the respondents have no experience with Under Armour’s customer service and could not answer the question. However, the one student who did have experience with Under Armour’s customer service agreed to the statement that, “Under Armour provides quick, courteous customer service.” Under Armour provides quick, courtious customer service Agree Disagree Not Sure
  • 42. Renee Watkins IMC 613, Week9 Assignment Page 41 Provides unique brand attributes that I cannot find anywhere else The Under Armour brand prides itself on its innovative, technology enhanced athletic gear. Out of the 8 surveyed respondents, 2 people agreed that they couldn’t find this type of athletic apparel anywhere else. 2 people disagreed with this statement, while 4 people said they were unsure. Under Armour provides uniquebrand attributes that I can't find anywhereelse Agree Disagree Not Sure
  • 43. Renee Watkins IMC 613, Week9 Assignment Page 42 Develops quality marketing promotions that I find engaging and relevant Under Armour puts a large portion of its resources towards its marketing promotions. However, only 50% (1 respondent) of the surveyed men found the marketing promotions to be engaging and relevant to them. Interestingly, 4 women found the marketing programs to be relevant and engaging, while 1 respondent disagreed and another was not sure. 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Agree Disagree Not Sure Under Armour develops quality marketing promotions that I find engaging and relevant Men Women
  • 44. Renee Watkins IMC 613, Week9 Assignment Page 43 Brand Recommendations Overall, Under Armour’s brand elements and current marketing strategies have helped Under Armour grow to the second largest brand in the athletic apparel industry. However, if Under Armour wants to continue to gain additional market share, Under Armour should focus its marketing efforts on the following brand recommendations. Brand Recommendation 1 Goal To increase brand awareness of Under Armour’s women’s apparel line with the female demographic. Objective Increase brand awareness of Under Armour’s women’s apparel line with the female demographic by 15% in 12 months. Strategies Educate women on Under Armour’s brand offerings for women. Tactics Develop a series of television commercials, featuring women athletes and celebrities wearing Under Armour women’s athletic apparel. Develop a series of Facebook and Twitter ads that promote Under Armour’s women’s athletic apparel line to women between the ages of 17 and 34 across the United States. Send brand ambassadors to Under Armour outlet locations. Have brand ambassadors stand outside the Under Armour outlet and hand out 20% discount coupons on women’s athletic apparel line to women shoppers. Work with large universities to become the official athletic apparel brand sponsor for its various women’s teams. Brand Recommendation 2 Goal
  • 45. Renee Watkins IMC 613, Week9 Assignment Page 44 Increase market share by educating consumers of Under Armour’s unique point-of-difference - temperature control, performance gear. Objective Increase market share by 2% in 12 months by educating consumers of Under Armour’s unique point-of-difference temperature control, performance gear. Strategies Educate consumers on the benefits of Under Armour’s temperature control, performance enhancing athletic gear. Tactics Develop a series or television commercials and YouTube videos that educates consumers on Under Armour’s unique temperature control, performance enhancing benefits. Develop eye-catching signage that educates consumers on the benefits of each of Under Armour’s performance gear lines. Signage should be placed near the respective gear lines at Under Armour brand and factory stores, national and regional sporting good chains, independent and specialty retailers, and department store chains that carry the Under Armour brand. Update the Under Armour website so it features the various temperature controlled athletic apparel lines. Insert a button that will allow consumers to filter and search for the respective Under Armour temperature controlled gear lines. Brand Recommendation 3 Goal Leverage current collegiate athletic apparel sponsorships to help secure new, additional sponsorships in the future. Objective Leverage current collegiate athletic apparel sponsorships to help secure 3 new, additional sponsorships in 12 months. Strategies
  • 46. Renee Watkins IMC 613, Week9 Assignment Page 45 Market Under Armour’s current athletic apparel sponsorships to help build credibility to the Under Armour brand as well as increase brand awareness in those respective fan based markets. Tactics Secure testimonials from University officials and players about Under Armour’s athletic sponsorship and products and market these testimonials on the Under Armour website, social media channels, and informational marketing flyers. Anytime a new collegiate athletic sponsorship is secured, announce the partnership on Under Armour’s social media channels, the Under Armour website, and by releasing a press release. Develop an engaging television commercial that will air during the respective sponsorship season during game commercial breaks. Messaging should convey that Under Armour is the official brand of the respective university and close with its logo and website URL.
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