This document provides a brand audit of Under Armour. It summarizes the company's background, target market, product categories, brand elements, and perceptions. Consumer research found mixed feelings about the brand - some see it as high quality and innovative, while others view it as too expensive and only for serious athletes. Recommendations include creating a marketing campaign that appeals to all types of athletes, promoting the product guarantee, and informing consumers about innovations. The goal is to improve brand equity by addressing areas where consumer and company perceptions differ.
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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.
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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
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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.
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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
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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
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“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
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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.
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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
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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
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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.
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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.
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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
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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)
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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).
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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).
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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
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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.
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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
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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.
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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.
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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).
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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.
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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
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
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
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