This document provides a market analysis of Under Armour, Inc. It summarizes the company's current marketing strategy, sales, and investments. The analysis finds that while revenue has increased, net income is low. Most revenue comes from North America, and high promotional investments may not be effective. The report recommends assessing investments, creating tailored international campaigns, pursuing partnerships, and using social media to boost exposure and sales growth internationally by 2025.

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A Market Analysis for
Under Armour, Inc.
Isamar Miranda Colón
Full Sail University
Project & Portfolio II: Business and Marketing
October 25, 2020

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EXECUTIVE SUMMARY
This analysis report focuses on the current status of Under Armour’s marketing strategy,
sales and investments. This report provides a detailed look on how the investments are affecting
the efficiency of the brand; and the capital expended on promotions throughout the years leading
to 2019. Several charts are included to substantiate the analysis conducted. On page 6 of this
report, recommendations are discussed in detail which include: assessment of investments,
tailored marketing campaigns, partnerships/collaborations, and usage of social media.

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OBJECTIVE
This report was arranged to help the Board of Directors of Under Armour understand,
identify, and assess areas of improvement by working with their strengths and business
opportunities. Within this report, a strategic plan of action will be recommended and explained to
guide the Under Armour brand toward success within the sportswear industry.
RESEARCH METHODOLOGY
The information used in this report is qualitative and quantitative data gatherer mainly
from external, secondary research from the internet and online databases, complied during the
month of October 2020. Financial information was based on the most recent year-end figures of
2019.
RESEARCH AND KEY FINDINGS
For the men and women who are not afraid to push beyond their boundaries, Under
Armour is an innovative brand that features high-quality moisture wicking and cooling
capabilities and footwear that adjusts to their needs. Athletes, Runners, and gym aficionados can
unleash their full potential with each training session, no matter the intensity.
To begin, Under Armour is a clothing brand focused on adaptable sportswear and aspires
to make athletes better through science, passion, and relentless innovation. The company offers
an ample selection of products that range from apparel to fitness apps to broaden its target
market from College and Professional Athletes to the low to medium active individuals.
When it comes to revenue, UA has been progressing throughout the years, earning 5.27
Billion in net revenue in 2019 (Statista, 2020). However, the net income, as of December 31st
,
2019, was $92,139 (UA Income Statement, 2019).

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Most of the net revenue came from the North American region since this is the brand’s
main area of focus and largest one with 69%. In addition, back in 2019, UA spent 374 Million
U.S. dollars on advertising in the United States, which increased its promotional investments by
eight million, compared to the year before. However, UA had previously expended an exorbitant
amount of capital on promotions in 2017 (Statista, 2020). This is a clear indicator that the
marketing strategy utilized that year wasn’t as effective as they hoped.

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UA’s high investments are limiting their ability for new acquisitions and opportunities for
increased revenue. Furthermore, the sole focus on the North American region has impacted, not
only the reachability of the brand internationally, but also the brand’s operating presence, since it
is getting overshadowed by their competitors. This leads UA to rely mostly on the region
mentioned.
I Will What I Want by Under Armour

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When it comes to marketing, UA most talked about campaigns was the I Will What I
Want. This was created to attract the female market through the art of empowerment by telling a
story, which focuses on all types of women, making this an inclusive and socially aware
marketing campaign. Some captions include, “I will not be Unsupported,” “I will not be
Stopped,” and “I will not be Restricted.” By running a campaign that specifically empowered
women to be athletic, they made female consumers feel more comfortable engaging with the
brand, since UA is considered to be very masculine (Isler, 2020).
CONCLUSIONS
Under Armour is mainly focusing on the American market, which can be beneficial to
some extent. However, this means that the opportunity for international growth is reducing and
will continue to reduce as time goes on if no action is taken. In addition, the high investments are
something that the brand has to assess since it is limiting their opportunities for effective
expansions, partnerships, and product line exposure.
RECOMMENDATIONS
Based on the research findings and conclusions, Under Armour needs to do an
assessment of the investments being made. Upon making this assessment, the company will be
able to identify which investments to keep and which to remove. This will be determined by the
amount of revenue and benefits the company is receiving due to such investment; if the amount
being given is larger than the amount received, it needs to be removed. After such changes have
been made, the company should have additional capital to use in other areas. For instance,
creating an extension of an existing product line, by taking advantage of collaborations and

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partnerships with well-known athletes, coaches, etc. This can help boost the brand’s product line
exposure and broaden visibility to the target market.
Regarding international growth, UA can take advantage of their specialized collections
and create a marketing campaign that best fits the location targeted. For example, if the brand is
focusing on Alaska, it has to take into consideration the average weather, which ranges from 40º
to 60º Fahrenheit in the summer and -18º to -30º in the winter. The best product line to advertise
is the ColdGear Collection because it is designed to work on 55º F and below. The lightweight
base layer keeps the individual dry and warm. Now, when paired with the ColdGear Infrared, the
lining absorbs and retains body heat to keep the individual warmer, longer.
Upon tailoring a marketing campaign strictly for targeted locations based on the product
line, the sales and exposure will begin to increase. In this case, The ColdGear has Alaska,
Greenland, Middle East, Canada, etc. The HeatGear has the Caribbean, Latin America, Africa,
Middle East, etc. If done effectively, by 2025 the brand should begin to see an increase in sales,
revenue and net income.
Furthermore, creating a marketing campaign similar to the “I Will What I Want,” will be
better received by the target audience. This campaign tells a story, it’s relatable and empowers,
which is why the sales for the UA women’s collection increased significantly. In addition, this
type of campaign doesn’t limit to the women market, it extends to the individuals with
disabilities, hardships, etc. This is what the brand should strive towards: Relatability and
Empowerment.
Partnerships and Collaborations are key to a company’s success when it comes to
exposure and marketing. In 2020, social media is one of the biggest and most effective tools for
advertising. When a famous athlete does a collaboration with a specific brand and uploads it on
social media, the fandom for such athlete will be interested in the product. However, the brand

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and the other party have to be consistent with the online marketing when using social media as a
primary tool. This is vital for sales because it will reach new audience, reduce marketing cost,
and strengthen the brand. Since UA’s target market fall between the ages of 17 to 24 and 30 to
45 it is important to do a thorough assessment when using social media. This will guarantee
maximum exposure and reachability.
This is a strategic recommendation that requires time and effort in order to see results in
the next 5 years. An analysis should be made in April 2023 as a half-way follow up report to
assess the areas the changed, marketing strategies, partnership opportunities, and product line
development. This will serve as an evaluation to know and understand if changes need to be
carried out to maximize analysis and brand efficiency.

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REFERENCES
Beer, J. (2018, February 1). New HOVR shoe is Under Armour’s biggest ever product marketing
campaign. Fast Company. https://www.fastcompany.com/40524687/new-hovr-shoe-is-under-
armours-biggest-ever-product-marketing-campaign
Garcia, T. (2019, April 11). Under Armour is attracting older customers while teens prefer Nike and vans.
MarketWatch. https://www.marketwatch.com/story/under-armour-is-attracting-older-
customers-while-teens-prefer-nike-and-vans-2019-04-10
Habibi, S. (2020). Under Armour: Description and Justification of Target
Market. https://sarahabibi.weebly.com/uploads/2/8/4/0/28408507/under_armour_in_singapo
re.pdf
Isler, L. (2020, April 2). CASE STUDY: Under Armour's I will what I want campaign. MYTHOS
®. https://www.impactstories.com/blog/2019/09/case-study-under-armours-i-will-what-
i-want-campaign/
Soni, P. (2014, December 10). Under Armour: The nature of its business, product portfolio. Market
Realist. https://marketrealist.com/2014/12/armour-nature-business-product-portfolio/
Under Armour apparel technologies. (2020). Tennis
Express. https://www.tennisexpress.com/info/under-armour-apparel-technologies
Under Armour, Inc. (UA). (2020). Yahoo Finance - Stock Market Live, Quotes, Business & Finance
News. https://finance.yahoo.com/quote/UA?p=UA
Under Armour, Inc. (UA). (2020). Yahoo Finance - Stock Market Live, Quotes, Business & Finance
News. https://finance.yahoo.com/quote/UA/financials?p=UA
Under Armour: Ad spend in the U.S. 2019. (2020, July 13).
Statista. https://www.statista.com/statistics/464014/under-armour-ad-spend-usa/

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Under Armour: Net revenue share by region worldwide 2019. (2020, February 26).
Statista. https://www.statista.com/statistics/518584/global-net-sales-share-under-
armour-by-region/
Under Armour: Net revenue worldwide 2019. (2020, February 26).
Statista. https://www.statista.com/statistics/259174/net-sales-of-under-armour-
worldwide/
Under Armour. (2020). Shibboleth authentication request. Shibboleth Authentication
Request. https://web.a.ebscohost.com.oclc.fullsail.edu:81/ehost/detail/detail?vid=4&sid=
32fdf1cc-5aa9-49b5-95e8-
e5665e748300%40sessionmgr4006&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=1
43821312&db=bth