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Brand Audit of Under Armour

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BRAND AUDIT
Rachel Groves
IMC 613
October 16, 2014
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TABLE OF CONTENTS
Executive Summary........................................................................................
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EXECUTIVE SUMMARY
While Under Armour (UA) is a successful and growing brand in the athletic apparel
industry, they are s...
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Brand Audit of Under Armour

  1. 1. BRAND AUDIT Rachel Groves IMC 613 October 16, 2014
  2. 2. 2 TABLE OF CONTENTS Executive Summary..............................................................................................................................................................3 Background................................................................................................................................................................................4 Target Market .........................................................................................................................................................................5 Brand Inventory......................................................................................................................................................................6 Product Categories................................................................................................................................................................6 Company Perception............................................................................................................................................................7 Brand Elements......................................................................................................................................................................8 Brand Associations............................................................................................................................................................11 Product....................................................................................................................................................................................11 Place.........................................................................................................................................................................................12 Price..........................................................................................................................................................................................13 Promotion..............................................................................................................................................................................13 Competitors ..........................................................................................................................................................................13 Points-of-Parity...................................................................................................................................................................15 Points-of-Difference..........................................................................................................................................................16 Under Armour Brand Hierarchy..................................................................................................................................18 Brand Exploratory..............................................................................................................................................................19 Consumer Product Knowledge.....................................................................................................................................19 Consumer Perceptions.....................................................................................................................................................20 Brand Elements...................................................................................................................................................................21 Marketing Support Programs .......................................................................................................................................22 Competitive Environment..............................................................................................................................................24 Consumer Brand Associations......................................................................................................................................25 Brand Recommendations...............................................................................................................................................26 Recommendation #1.........................................................................................................................................................26 Recommendation #2.........................................................................................................................................................26 Recommendation #3.........................................................................................................................................................27 References...............................................................................................................................................................................29
  3. 3. 3 EXECUTIVE SUMMARY While Under Armour (UA) is a successful and growing brand in the athletic apparel industry, they are still well behind their major competitor Nike. This brand audit is meant to see how the company feels their brand is doing and how that compares to how consumers feel about the brand. Areas where these two groups differ will show UA where they can improve in order to meet customers’ expectations and increase the brand’s equity. The brand exploratory found that consumers have mixed feelings about the Under Armour brand. On one hand, consumers said they think of UA as high quality, trendy, and innovative. These brand descriptions show UA what areas they have succeeded in building brand equity with their customers. However, consumers also described UA as too expensive and only for professional or serious athletes. Other consumers noted that they are not very brand loyal to UA, either because they shop based on price or because they are already loyal to another performance apparel brand. These are areas in which UA needs to improve in order to attract new customers and gain market share. The recommendations for these areas of improvement include creating an integrated marketing campaign that showcases all types of athletes, from newbies to professionals, in order to make everyone feel like they are Under Armour athletes. The second recommendation is to do more to promote the Under Armour Universal Guarantee of Performance and what it means to consumers, so that they understand the long-term value and quality of the UA products that they purchase. Finally, it is recommended that more emphasis be placed on informing consumers about all the innovations UA works on in order to make their products better for their consumers.
  4. 4. 4 BACKGROUND Under Armour is an athletic apparel company that is known for their compression apparel that wicks away sweat and moisture. Their mission is to “make all athletes better through passion, design and the relentless pursuit of innovation” (Our Mission). Under Armour was started in 1996 by Kevin Plank, a 23-year old former University of Maryland football player who was tired of having to change his sweat-soaked cotton t-shirt multiple times during practice (It all started with an idea). After extensive research on the athletic benefits of synthetic fabrics, he designed the first Under Armour HeatGear t-shirt to “keep athletes cool, dry and light in the most brutally hot conditions” (It all started with an idea). Later, ColdGear was designed to keep athletes warm and dry during cold weather, and AllSeasonGear was created for in between extreme seasons. However, the company makes more than just HeatGear and ColdGear. They now sell all types of apparel, shoes, accessories and team uniforms and are a growing player in the athletic apparel industry. Although Under Armour (UA) is one of the newest brands in the athletic apparel industry, it is also one of the fastest growing brands. In fact, “the $244 billion sportswear industry is unusually brand-obsessed, and Under Armour has come from nowhere to establish itself as an household name alongside industry titans like Nike and Reebok (which Adidas owns)” (DePillis, 2014). UA is known for offering top quality and innovative athletic apparel for athletes. With “revenues [having] grown at a rate higher than 20% for
  5. 5. 5 16 straight fiscal quarters,” it is obvious that many consumers are interested in UA products and believe they are worth the price. Target Market Under Armour’s current target market includes adults in their 20’s and 30’s who work out regularly. These young adults are middle to upper class and can afford Under Armour’s higher end athletic apparel. They are also looking for sports apparel that will be effective and fashionable at the same time. The majority of their targeted audience is already in good shape and considers exercising an important part of their life. This is why having high quality athletic gear is important to them. Under Armour (UA) has recently focused on targeting women more with products in the “‘athleisure’ market, as the stretchy-pant-and-tank-top chains of this world are known” (O’Connor, 2014). Focusing on women is a huge step for a company that until recently had the mindset of “shrink it and pink it” for women’s apparel (O’Connor, 2014). With supermodel Gisele Bündchen as the newest endorser for the company, UA has shown it plans on changing direction with this new target market. By not only showing professional athletes, Under Armour is trying to appeal to women who do not consider themselves athletes. However, having a supermodel in that role might not speak directly to the audience they should be targeting, such as women who are trying to be more active to get healthy.
  6. 6. 6 BRAND INVENTORY Product Categories Under Armour offers products in three main categories, apparel, shoes, and accessories, which are all available for men, women and children. Under Armour apparel includes tops, bottoms, outerwear, underwear, and swimsuits. Current shoe types offered by the brand include running shoes, basketball shoes, cleats, hiking shoes, boots and sandals. The wide range of UA accessories include bags, hats, gloves, sunglasses, socks, and sports equipment. Under Armour items also fall into several product lines including athletic, hunting, military, and sports uniforms. Under Armour’s athletic line is its most popular group of products and features items used and worn while working out. Their hunting line features camouflage apparel worn during hunting, and can be seen on the famous cast of the TV show Duck Dynasty. The military line of products includes tactical items worn with or under military uniforms. Under Armour also outfits several sports teams with uniforms, most notably thirteen college football teams. These teams include Auburn, Hawaii, Maryland, Texas Tech, Boston College, Utah, Northwestern, St. John's, Navy, Colorado State, South Florida, South Carolina, and its most recent and biggest deal ever, Notre Dame (Rovell, 2014). Each of these product categories includes several Under Armour brands, such as the well known HeatGear and ColdGear. Some of these brands have products in all of the
  7. 7. 7 product categories while others are specific to one category or another. For example, ColdGear is the brand of products that are worn in the cold to keep customers warm and dry. Under Armour sells shirts, pants, shoes, jackets, gloves, hats and other items under the ColdGear brand. By using the same brand of products throughout all these departments, customers become familiar with the ColdGear name and the benefits it provides, no matter what type of product they are looking for. Other brands are specific to apparel or shoes only, such as UA SpeedForm shoes. The materials and innovation of SpeedForm only translates to shoes and therefore would not be a good brand for UA to use for apparel. Company Perception Under Armour sees itself as a brand that must make athletes better (Mission & Values). Therefore, they continue to focus on innovating new products and reinventing current products in order to fulfill this guarantee to athletes. This will help UA to continue to be the new and exciting brand in the athletic industry. Instead of being satisfied with current products or announcing slight modifications, Under Armour fights to constantly create innovative products. In 2013, they announced UA SpeedForm Apollo running shoes, Armour Vent apparel, and their acquisition of MapMyFitness, which will help propel their
  8. 8. 8 “Connected Fitness” platform (Annual Report, 2013). However, their products must not only be innovative, they also feel they must build a product that is better than any other product currently available in the market (Mission & Values). UA views its products as the best of the best and will not settle for anything less. While Under Armour’s brand mission is “to make all athlete better through passion, design, and relentless pursuit of innovation,” the company also understands they still must sell their innovations in order to succeed (Mission & Values). The CEO has a simple message in his office to help “him not lose sight of his initial goal: ‘Don't forget to sell shorts and shoes’" (Berens, 2012). This helps the company stay grounded as it continues to reach for more. Under Armour also views itself as the underdog in the industry, even as it continues to rapidly grow. One of the brand’s values is to “Be humble and stay hungry: Nobody’s going to give us anything. We have to earn it every day” (Mission & Values). With this view, the brand works hard for each accomplishment it has. They feel that this hard work will continue to help the company expand and gain on its main competitors Nike and Adidas. The industry leaders might not feel like they have the same pressure on them as Under Armour to produce new and innovative products, which UA can use to their advantage. Brand Elements The brand name Under Armour actually came along as a mistake. UA CEO, Kevin Plank, “wanted to name the company Heart, but that was too common. Then he thought of Body Armour. Finally, Plank’s oldest brother, Bill, mistakenly asked how Under Armour was coming along. ‘I thought, that’s it,’ Plank says” (Heath, 2010). This is a strong brand
  9. 9. 9 name because it is created with familiar words but is still distinctive and follows the criteria for brand elements. It is memorable as a sports apparel brand because it is original and unlike any other company. The name Armour is also memorable as it alludes to how athletes feel when wearing the product, since Under Armour is meant to protect them from the elements and sweat. This gives the customer “general information about the function of the product” (Keller, 2013, p. 115). The brand name has also proven that it is transferable to many different products, including everything from t-shirts to shoes to sunglasses. The brand name is also protected by a copyright and cannot be used by any other brands without legal repercussions. The Under Armour logo is made up of two curves, one facing up and one facing down. The way these curves intersect creates the brand’s initials, UA. This logo is memorable because it is unique to the brand and makes viewers immediately think of the Under Armour brand. The meaningfulness of the logo is easy to see since the logo makes the initials of the brand name. Customers do no have to guess about which company the logo belongs to since they can see the UA and associate that back to Under Armour. The logo also has the ability to be adaptable over time if necessary. While it has not been updated in the brand’s history, slight modifications could be made to it without damaging the logo’s perception. Just like the Under Armour name, the logo is also protected by a copyright and cannot be used by any other brand.
  10. 10. 10 The slogan that Under Armour currently uses is “I will.” This slogan was originally part of another slogan the brand used as a chant. That slogan was “Protect this house” with the response being “I will.” This slogan is likable because it is used to energize athletes. “I will” can be used in many different ways including succeeding at your sport, deciding to be healthier and working hard for your goals. This slogan is highly transferable and can be used in association with professional teams as well as individuals new to working out. The current Under Armour campaign focuses on women and uses the slogan in the phrase “I will what I want.” This phrase is a reminder that you don’t need permission, advice, or affirmation when you have WILL. It’s a celebration of who you are. As an athlete. As a woman. As everything in between and beyond. It’s a reminder that the best things in life aren’t given. They’re earned. And there’s one reason you are where you are today. That reason is you. (I will what I want) The “I Will” slogan has shown it can adapt over time. First, it was part of the slogan “Protect this house,” then it started to be used on its own and now it is being used in new slogans like “I will what I want.” Under Armour has also gone to court to protect the use of “I will.” In 2013, UA “filed suit in federal court in Baltimore against sports apparel rival Nike, alleging they infringed on Under Armour trademarks by using variants of the phrase "I Will" in promotional campaigns” (Mihoces, 2013). The suit alleged “there [were] images
  11. 11. 11 on the Nike Facebook page with slogans such as ‘I will protect my home court’ and ‘I will finish what I started’” (Mihoces, 2013). This causes confusion to consumers about the brand that is distributing the advertising. While no details were released, Under Armour says the suit was “resolved on a confidential and mutually agreeable basis” (Mirabella, 2014). This shows that even the words “I will” can be legal protected by the brand. Brand Associations Under Armour uses many successful athletes as celebrity endorsers for their products. Among these athletes are swimmer Michael Phelps, skier Lindsey Vonn, football player Tom Brady, and ballerina Misty Copeland. When looking at all of Under Armour’s endorsers it becomes obvious that the brand strives to associate itself with athletes in a wide range of sports, which in turn appeals to a wide range of consumers. UA does this because they hope “celebrities’ fans will also become fans of their products” (Keller, 2013, p. 251). Consumers also want to see a “reasonable match between the celebrity and the product” that is being endorsed (Keller, 2013, p. 252). Therefore, Under Armour is making sure it aligns itself with professional athletes that understand what Under Armour products can do to help them. Product Under Armour products are the best in class and must make athletes better in order to meet their brand values (Mission & Values). In order to ensure Under Armour products meet these values, each product is field tested to guarantee quality, performance and durability (Mission & Values). UA feels so strongly about their products that they offer a
  12. 12. 12 universal guarantee of performance. This guarantee states “Our mission is clear: Make All Athletes Better. If you are not 100% satisfied with your gear, return it for a refund. Anytime. Any Reason. Guaranteed” (Returns). This guarantee shows UA believes it only sells the highest quality products in the industry. Place Under Armour sells their products in a wide range of places to give as many consumers access to the brand as possible. UA products can be found in many sports stores like Dick’s Sporting Goods, The Sports Authority, and Modell’s Sporting Goods. Under Armour also has its own stores including Brand House stores and Factory House Outlet stores. Under Armour Brand House stores “focus on cutting-edge products and design” and “serve as a stunning example of Under Armour's commitment to offering customers a superior shopping experience” (PR Newswire). The brand says Factory House Outlet stores “provide a profitable way to manage our excess inventory and serve as a vehicle to attract more athletes to our brand” (Annual Report, 2013). Their final place to sell brand products is on their website, www.underarmour.com.
  13. 13. 13 Price Under Armour offers products at multiple price levels, including offering discounted items through its Factory House Outlet stores (Annual Report, 2013). The brand’s ColdGear products are usually priced higher than their other lines (Annual Report, 2013). The brand is careful with how much and how often they offer discounts on their products because that could harm their brand image (Annual Report, 2013). Promotion Under Armour uses a variety of channels to promote their brand, including both traditional and new media. Their marketing efforts can be seen across multiple social media networks, print ads, online and offline video, and online ads, just to name a few specific advertising venues. Last year, UA spent $17.9 million on traditional advertising including print and TV ads, while competitor Nike spent $64.3 million on their traditional advertising efforts (Perlberg, 2014). Under Armour’s CEO plans to increase marketing spending to 11% of revenue, or about $330 million this year (Perlberg, 2014). This amount is up from $245.5 million spent on UA marketing efforts last year (Perlberg, 2014). Competitors Under Armour has two main competitors in the sports apparel industry, Nike and Adidas. These brands are well established in professional and non-professional sports apparel and are considered top quality by consumers. Like UA, these brands offer sporting apparel, shoes, accessories, uniforms and sports equipment.
  14. 14. 14 Nike originally began in 1964 as a shoe company called Blue Ribbon Sports that sold Tiger shoes out of the trunk of a car (History & Heritage). In 1971, the name Nike came to be and the swoosh logo was designed soon after (History & Heritage). In 1972, the first line of Nike shoes was developed in time for the U.S. Track & Field Trials (History & Heritage). Since then, Nike has expanded its product line from shoes to apparel, accessories, and much more. It is the athletic apparel and shoe industry leader, having made $8.9 billion in sales in 2013 (Germano, 2014). In 1924, Adi Dassler started Adidas in Bavaria, Germany (History). Adi’s mission was to provide athletes with the best possible sports equipment (History). In 1949, Adi started a new company called “Adi Dassler adidas Sportschufabrik” where he registered a shoe with the soon-to-famous three stripes along the side (History). In 1954, the company got the world’s attention when the Germany soccer team beat the unbeatable Hungarians in the World Cup final while wearing Adidas’ new “lightweight football boots” (History). Today, Adidas still holds a large portion of the sports apparel and shoe industries, coming in second worldwide only to Nike. Under Armour currently holds approximately 14.7% of the U.S. athletic apparel market while rival Nike holds a 27% share of the apparel market (Friesner, 2014). Adidas is also a strong competitor who is usually second only to Nike. Recently however, Adidas slipped to third in U.S. sportswear brands after their “combined sales of athletic footwear and apparel [fell] 23% from a year earlier to $1.1 billion” (Germano, 2014). They fall to third behind Nike who made $8.9 billion in sales and Under Armour who made $1.2 billion during the same time period (Germano, 2014). The U.S. sneaker market looks a bit
  15. 15. 15 different. Nike is still the clear winner with 60% of the market (Friesner, 2014). Adidas however, outranks Under Armour in this part of the industry with 10% of the market (Powell, 2014). Under Armour only has 2.25% of the U.S. sneaker market which shows how far behind it is behind these other two sports apparel brands (Friesner, 2014). Points-of-Parity Under Armour’s main point-of-parity, or similarity to its main competitors Nike and Adidas, is that it is a brand that sells performance apparel for athletes. Consumers pay a premium price for quality apparel from these brands and expect their clothes to provide them with support during their activities. Another point-of-parity is that all three of these companies sell more than just apparel. Outside of apparel these brands are known for their athletic shoes including running shoes, cleats, and cross trainers, as well as accessories like bags, socks, and hats. A third point-of-parity is that each of these brands uses professional athletes as celebrity endorsers. Nike is well known for their endorsers like Michael Jordan and Tiger Woods, Adidas has worked with RG3 and David Beckham and Under Armour has partnered with Michael Phelps and Lindsey Vonn, just to name a few. These brands use professional athletes in the hopes that they can achieve positive brand impact that will lead the consumer From association to recognition, consideration, favorability, loyalty and ultimately to increased sales of a product. It is thought that consumers purchase athlete endorsed products based on a bundle of perceived benefits and these can include knowledge of the sport, entertainment, nostalgia, affiliation and other benefits personal to the buyer. (Conway, 2011)
  16. 16. 16 Each of these brands pays millions of dollars to their celebrity endorsers in the hopes that it will help them gain even more market share. Points-of-Difference Under Armour’s biggest point-of-difference, and what really sets the brand apart from its competitors, is its dedication to being innovative. Kevin Plank, Under Armour’s CEO, started this dedication by innovating a way for athletes to stay cool and dry with the original UA compression shirt (Product Innovation). Today the company has made innovation not only a goal but also a way of life. In fact, UA headquarters has an innovation lab “which requires a special key fob and a vascular scan for entry” (Sanneh, 2014). In this lab some of the newest technology in the athletic world is being developed. One of these new inventions was “ColdGear Infrared, an insulation system meant to provide warmth without bulk. (The technology was purportedly inspired by a “powderized ceramic” that protects military aircraft)” (Sanneh, 2014).
  17. 17. 17 Even with an innovation lab, UA knows it cannot come up with all the best ideas in- house. This is why UA hosts a competition called Future Show that allows inventors to submit their ideas to the innovative company in hopes that UA will pick their idea and use it in their products. In 2013, the winner was a man who invented a way to include LED lights into a runner’s shirt (Horovitz, 2013). The innovator was A concerned father who worried about his teenage son longboarding at night. So, he devised a motion-based lighting system for the front and back of his son's longboard (a longer type of skateboard). Next, the father tweaked this technology, which he dubbed Light Bohrd, to be placed inside shirts for joggers who run in the dark. The technology is driven by a tiny, rechargeable lithium battery embedded into the apparel. (Horovitz, 2013) By understanding that great ideas can come from both inside and outside the company, and continuously working to create better products and new ideas, UA understands that innovation is what is going to increase their market share. That is why their mantra is “We have not yet invented our defining product for the brand” (Foster, 2014).
  18. 18. 18 Under Armour Brand Hierarchy Under Armour Apparel HeatGear ColdGear Charged Cotton UA Tech UA Compression AllSeasonGear Armour Fleece UA Studio Lux UA Base Shoes ColdGear Micro G SpeedForm Studio Lux UA Spine ClutchFit 4D Foam Ridge Reaper Accessories HeatGear ColdGear Ridge Reaper ArmourShield Charged Cotton UA Armour Armour39 ArmourFit Studio Lux ArmourVent
  19. 19. 19 BRAND EXPLORATORY Consumer Product Knowledge Under Armour (UA) has successfully positioned itself as a high quality and performance brand of sports apparel. Brand associations show that consumers are mostly aware of the brand’s athletic apparel such as their famous compression shirts. Many consumers think of ColdGear and HeatGear when they think of UA. Consumers trust these products to keep them cool or warm depending on the weather. Knowledge of all the products and categories that UA offers might not be as well known to consumers as the brand would like. For example, the variety of accessories and types of shoes available from UA might surprise a lot of consumers. Consumers are also less aware that UA also sells military/ tactical apparel and hunting wear. The TV show Duck Dynasty has helped publicize Under Armour’s hunting line since “Under Armour apparel — a lot of camouflage — is featured prominently in the show, and Under Armour is the title sponsor of a Duck Dynasty spinoff show, ‘Buck Commander’” (Meehan, 2013). However, these lines of apparel are still not what most people think of when they think of the brand.
  20. 20. 20 Consumer Perceptions Consumer perceptions about Under Armour are varied. Consumers positively associate the brand with being trendy, high quality, and innovative. However, the brand is also considered by consumers to be expensive and only for serious athletes. Other brand associations that consumers have for Under Armour include athletic, strength, and endurance. The number of consumers who consider Under Armour products to be high quality shows the positive perception that people have of the brand. This description is very important for most products, but is especially important in an industry where consumers are seeing other brands offer low quality alternatives. For example, last spring customers at Lululemon realized the yoga pants they bought were actually see-through (O’Connor, 2014). While other supposed high-end brands are offering lower quality products, like Lululemon’s sheer pants, Under Armour continues to be viewed as high quality. They are also viewed by many as a trendy brand, which is a move in the right direction and away from just offering tight fitting shirts. Consumers consider several things when purchasing athletic apparel, including price, quality, and appearance. If consumers do not find UA apparel attractive and trendy, they will quickly find other apparel that is. Therefore, being seen as a trendy company by consumers will help the brand continue to grow. Expensive High Quality Trendy Athletic Football Temperature Regulation Innovative Maryland
  21. 21. 21 A major negative consumer perception of Under Armour is that the brand is only for serious athletes. One customer said Under Armour needs to “appeal to those who are new to working out/sports, not just serious athletes” in order to get her business (K. Reeves, personal communication, September 16, 2014). The intense image the brand gives off might be good for the professional athletes that are interested in Under Armour products, but it can push other consumers away from the brand. Consumers that do not feel good enough to be considered athletes are intimidated by the brand and feel like they are being pushed away. If consumers see Under Armour products as high quality but only for serious athletes, then a large portion of them will continue to shop for products by competitor brands that make them feel more welcome. Brand Elements The most recognized Under Armour brand elements for consumers are the logo, slogan, and celebrity endorsers. Consumers like the UA logo because it is easy to remember because of its unique look, making it very memorable. Consumers also like the logo because they like wearing UA apparel, which has the logo prominently displayed. To many consumers, the UA logo means fitness and is worn as a badge of honor. This makes the logo very meaningful to them as well.
  22. 22. 22 The second brand element that is very familiar to consumers is the UA slogan. While consumers know the current slogan of “I will”, many of them also remember the original UA slogan of “Protect this house.” This could confuse some consumers if they were not aware that “I will” was also part of the original slogan. However, “I will” is meaningful and liked by consumers because it makes them feel empowered. “I will” puts the consumer as the focus of the brand, which gives the slogan meaning to consumers. While the athletes and celebrity endorsers that Under Armour uses may not have the association that Michael Jordan has with Nike, they are still well known and recognized as spokespeople for UA. The recent announcement of Gisele Bundchen as an endorser for UA grabbed consumers’ attention because she is not a professional athlete like the other brand endorsers. This makes her memorable to consumers because she is the first non-athlete featured as a celebrity endorser. Marketing Support Programs As previously mentioned, consumers think of Under Armour products as high quality. There is a large selections or products offered by the brand, in a variety of colors and styles. Consumers like that the products are trendy and modern, and many find their apparel to be comfortable. Consumers are mainly interested in Under Armour’s athletic apparel, although some think it is only for serious athletes.
  23. 23. 23 UA products are sold in a variety of places including brand stores, sporting stores, as well as online. This variety of locations allow customers options to where they would like to shop for UA apparel depending on what is most convenient for them. The different store options also allows customers to shop a variety of styles and prices since the UA Factory House stores sell different products than the Brand Houses, and at lower prices. Consumers often consider Under Armour apparel to be expensive. This high price range for their products makes consumers consider cheaper alternatives from their competitors or store brands. One consumer said, “I would be a lot more loyal to Under Armour if they weren't so expensive. I've used their products and then off brands as well. The off brand products were similar and got the job done for me... so I never buy Under Armour anymore” (C. McElroy, personal communication, September 16, 2014). More promotions and sales on UA products could help offset the idea that their products are too expensive to consumers. Under Armour marketing can be seen on TV, online, and in print. Consumers are constantly connected to the brand through their social and digital media, including Facebook, Twitter, Pinterest, Instagram, Google+, and YouTube. By using these types of media, Under Armour “encourage[s] consumerparticipation in [their] product marketing” (Reed College of Media, 2014).
  24. 24. 24 Competitive Environment Under Armour is quickly growing more popular to consumers in the United State, but it is still far behind its main U.S. competitor, Nike. Consumers have a long history with Nike, and have grown to trust the brand with providing them with durable performance apparel. Many of these consumers are actually brand loyal to Nike since the company has been providing them with high quality athletic apparel for so many years. These consumers are not even willing to purchase Under Armour apparel because of their loyalty. Other consumers are basing their purchasing decisions solely on price. They are looking for quality athletic products but at a cheaper price than UA can offer. Therefore, many of these consumers turn to UA competitors like Nike or Adidas, or they look for store brand athletic apparel at discount stores such as Target, Walmart, or JCPenney. Even some non-discount retailers are starting to sell their own athletic apparel because of the growth potential of this industry. Retailors such as Old Navy, Victoria’s Secret, and GAP are entering the athletic apparel market in order to capture part of the $80 billion U.S. athletic apparel industry (Nouroumby, 2013). With more stores offering their own brand of athletic apparel, consumers’ choices are constantly increasing, as is UA’s competition. This means that the “global sports and fitness clothing industry is highly fragmented, with many brands competing, from basic discount brands to high-end fashion names. Even well-established brands have to work hard to maintain their share of the market” (Global Sports). This variety of choices makes it difficult for consumers to decide which brand of athletic apparel to purchase, and therefore forces them to base their decision on things like price, quality, and fashion.
  25. 25. 25 Consumer Brand Associations
  26. 26. 26 BRAND RECOMMENDATIONS Recommendation #1 One of the challenges Under Armour currently faces is making customers of all athletic abilities believe that their performance apparel is for them. UA refers to its customers as athletes, which some people might think only refers to people who exercise and participate in a sport frequently (Sanneh, 2014). However, this can be seen as a positive term even for people who wear UA apparel while taking a stroll around the block. In order for all consumers to feel like they are Under Armour athletes, the brand needs a marketing campaign that shows all athletic abilities. This campaign can be an integrated campaign across digital, print, and broadcast media. The campaign should focus on what makes each person an athlete. For Tom Brady it is being a quarterback in the NFL, for another person it could be taking the dogs for a nightly walk, and for yet another it could be training to run her first 5K race. By showing this wide range of what is considered an athlete, Under Armour will encourage more consumers to wear their apparel. Consumers that previously did not feel like they were in UA’s audience because they are not a serious athlete, will now feel like the brand is perusing them. Recommendation #2 Research has shown that consumers consider Under Armour apparel to be expensive. Without lowering the price of their products, Under Armour’s only other option to combat this idea is to communicate the long-term value of their items. If consumers feel like UA products are of the highest quality and will last them for a long time without
  27. 27. 27 needing to be replaced, then they are more likely to understand the pricing and feel like the products are worth their price tags. One way to communicate this value is by promoting the Under Armour Universal Guarantee of Performance. As mentioned earlier, this guarantee says that every UA product is made to the highest standards and will make the consumer better at their chosen fitness goal. If the consumer does not agree with this the product can be returned at any time. This guarantee is listed at the very bottom of the brand’s website. This guarantee should be much more visible on the website as well as on the brand’s social media page, apparel packaging and tags, and print media. It can only benefit the brand to have their guarantee known by their consumers. By hiding it at the bottom of their website, UA is not using this guarantee as a point-of-difference over competitors. Recommendation #3 Under Armour focuses a lot of their attention and resources on being innovative in the performance apparel industry. However, not many consumers seem to know this about the brand. Since innovation is one of UA’s defining points-of-difference, it is important to increase consumers’ awareness to this aspect of the brand. Knowing how dedicated the brand is to finding new and better ways for consumers to improve their workouts will in turn increase consumers’ trust and loyalty to Under Armour. To raise awareness of their innovations, Under Armour could have a page of their website dedicated to the numerous innovations they have created over their short life span. They can also have a social media accounts dedicated to innovative ideas that allows consumers to submit ideas they have for new products or problems they would like a
  28. 28. 28 product to solve for them. These medias can also be used to help build suspense and excitement over the launch of new Under Armour inventions. By following the brand recommendations, Under Armour could gain 5% market share in the next year. That would give them 19.7% of the athletic apparel industry and put them much closer to their competitor Nike.
  29. 29. 29 REFERENCES Annual Report. (2013). Under Armour. Retrieved from http://files.shareholder.com/downloads/UARM/3487362204x0x735952/1020FA2 0-6420-440E-8167-BCD7DB8D5422/2013_Annual_Report.pdf Berens, C. (2012, July 12). Under Armour’s 4 tips for building a mighty brand. Inc.com. Retrieved from http://www.inc.com/caitlin-berens/tips-for-building-a-strong- brand-kevin-plank-under-armour.html Conway, C. (2011, February 15). How to choose the right athlete to endorse your brand. Sports Networker. Retrieved from http://www.sportsnetworker.com/2011/02/15/athlete-brand-endorsements/ DePillis, L. (2014, February 7). Five smart things Under Armour did to take on the sports retail giants. The Washington Post. Retrieved from http://www.washingtonpost.com/blogs/wonkblog/wp/2014/02/07/five-smart- things-under-armour-did-to-take-on-the-sports-retail-giants/ Foster, T. (2014, July). Kevin Plank’s formula for Under Armour’s innovative design. Inc.com. Retrieved from http://www.inc.com/magazine/201407/tom-foster/kevin- planks-formula-for-under-armours-innovative-design.html Friesner, Z. (2014, July 4). A look at Nike and Under Armour: An industry leader vs the little guy. The Motley Fool. Retrieved from http://www.fool.com/investing/general/2014/07/04/a-look-at-nike-and-under- armour-an-industry-leader.aspx
  30. 30. 30 Germano, S. (2014, September 5). Adidas slips behind Under Armour in the U.S. Wall Street Journal. Retrieved from http://online.wsj.com/articles/under-armour-edges-out- adidas-in-u-s-1409940825 Global Sports Clothing & Accessories Industry. (n.d.). ReportLinker. Retrieved on October 3, 2014 from http://www.reportlinker.com/ci02121/Sport-Clothing-and- Accessories.html Heath, T. (2010, February 1). Apparel upstart takes on big boys. The Journal Gazette. Retrieved from http://www.journalgazette.net/apps/pbcs.dll/article?AID=/20100201/BIZ/30201 9934 History. (n.d.). Adidas Group. Retrieved on September 23, 2014 from http://www.adidas- group.com/en/group/history/ History & Heritage. (n.d.). Nike Inc. Retrieved on September 23, 2014 from http://nikeinc.com/pages/history-heritage Horovitz, B. (2013, October 20). Under Armour seeks ideas for its next Big Thing. USA Today. Retrieved from http://www.usatoday.com/story/money/business/2013/10/20/under-armour- sports-apparel-equipment/2975577/ I will what I want. (n.d.). Under Armour. Retrieved on September 21, 2014 from http://www.underarmour.com/shop/us/en/iwillwhatiwant
  31. 31. 31 It all started with an idea. (n.d.). Under Armour. Retrieved from http://www.uabiz.com/company/history.cfm Keller, K. (2013). Strategic brand management (4th ed.). Upper Saddle River, NJ: Prentice Hall. Meehan, S. (2013, December 20). Under Armour sticking with ‘Duck Dynasty.’ Biz Journals. Retrieved from http://www.bizjournals.com/baltimore/news/2013/12/20/under- armour-duck-dynasty-phil-roberston.html Mihoces, G. (2013, February 22). Under Armour suing Nike over advertising slogan. USA Today. Retrieved http://www.usatoday.com/story/sports/2013/02/22/under- armour-suing-nike-i-will-advertising/1938605/ Mirabella, L. (2014, February 11). Under Armour and Nike settle trademark infringement lawsuit. Baltimore Sun. Retrieved from http://articles.baltimoresun.com/2014-02- 11/business/bal-consuming-under-armour-nike-settle-trademark-infringement- lawsuit-20140211_1_trademark-infringement-lawsuit-apparel-brand Mission & Values. (n.d.). Under Armour. Retrieved on September 21, 2014 from http://www.underarmour.jobs/our-mission.asp Nouroumby, M. (2013, February 23). Global sportswear industry to generate additional US $55 billion in new sales by 2017, according to Euromonitor. Yahoo Finance. Retrieved from http://finance.yahoo.com/news/global-sportswear-industry- generate-additional-080000338.html O’Connor, C. (2014, September 4). Under Armour goes after Lululemon with Gisele and ‘Womanfesto.’ Forbes. Retrieved from
  32. 32. 32 http://www.forbes.com/sites/clareoconnor/2014/09/04/under-armour-goes- after-lululemon-with-gisele-and-womanifesto/ Our Mission. (n.d.). Under Armour. Retrieved from http://www.uabiz.com/company/mission.cfm Perlberg, S. (2014, September 2). Can Nike block Under Armour’s marketing shot? Wall Street Journal. Retrieved from http://blogs.wsj.com/cmo/2014/09/02/nike-under- armour-ad-spending-kevin-durant/ PR Newswire. (2014, June17). Under Armour to open “brand house” specialty retail store on Chicago’s Magnificent Mile. Market Watch. Retrieved from http://www.marketwatch.com/story/under-armour-to-open-brand-house- specialty-retail-store-on-chicagos-magnificent-mile-2014-06-17 Product Innovation. (n.d.). Under Armour. Retrieved on September 17, 2014 from http://www.uabiz.com/company/productInnovation.cfm Reed College of Media. (2014, August 18). Lesson 7: Managing brands. Retrieved from learn.wvu.edu Rovell, D. (2014, January 21). Notre Dame Fighting Irish, Under Armour agree to most valuable apparel contract in NCAA history. ESPN. Retrieved from http://espn.go.com/college-football/story/_/id/10328133/notre-dame-fighting- irish-armour-agree-most-valuable-apparel-contract-ncaa-history Sanneh, K. (2014, March 24). Skin in the game. The New Yorker. Retrieved from http://www.newyorker.com/magazine/2014/03/24/skin-in-the-game

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