Individual Mini Marketing Plan Under Armour

Published: 2021-09-12 08:30:08
essay essay

Category: Marketing, Strategy

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
Under Armour was developed in 1996 by Kevin Plank in his grandmother’s basement (Buana 2016). Plank created t-shirts with material similar to compression shorts, to keep athletes dry while working out (Buana 2016). He took his design up and down the East coast selling shirts out of his trunk. NFL quarterback Jeff George wore his shirt on the cover of USA Today and Plank’s shirts skyrocketed from there (Buana 2016). Today, the company markets to almost every consumer out there providing products that range from apparel to technology devices. The core of their customers is between 25 and 34 with an income of more than $75,000 (Buana 2016). The consumers buy from UA because the products are known for specializing to benefit an athlete (Buana 2016).
Focusing on the current demographics the company shows they have the right target markets. Therefore, the highest priority is keeping those consumers as repeat customers and finding ways to make their more common items affordable. Providing their current targeted audience with new innovations on apparel, shoes, and applications that are new to the market. And then concentrating more focus on the consumers with less income than their current target markets will help increase sales and have a large impact on overall sales revenue (Buana 2016). Strength Under Armour has demonstrated steady growth for the past five years, one of the biggest positive in the firm’s growth story (Soni 2018). Other key strengths are the development and launch of new products and a growing product portfolio. This keeps the UA brand competitive and visible in the marketplace (Soni 2018). The company is also launching highly visible marketing campaigns, top-profile endorsements and publicity all of which keeps the brand in the limelight (Soni 2018). Weakness The company has yet to establish itself around the world. Over 90% of its 2013 revenues came from North America (Soni 2018). UA also doesn’t manufacture its own products. This leaves the company vulnerable to disruption in its supply chain that may or may not be under its control. It also lacks a personal fitness device like Nike FuelBand (Soni 2018). UA is vulnerable to business cycles. The 2008 recession took a toll on company earning and its products are categorized as consumer discretionary (XYL) items (Soni 2018). Such products tend to do well when the economy is expanding, and employment and wages are increasing. But they tend to take a back seat in terms of consumer priorities during a recession (Soni 2018).
Opportunities Since innovation is the backbone of the products of the company, with its constant innovation it can extend its product line to increase the benefits offered and attract more consumers (Buana 2016). Huge potential since the company is a relatively new company, it can expand to unexplored markets in Asia, Europe and Australia (Buana 2016). Kids comprise the largest consumer market in terms of sports apparel, team gear and equipment and the company’s partnership with NBA league will create high brand visibility for the viewers who are mostly kids (Buana 2016). The footwear market share despite being small, it drives adequate revenue; thus, the company has huge opportunity to achieve more market share in this competitive industry (Buana 2016).
Threats Competitors like Adidas and Nike have high brand recognition and recall with high customer base globally which is a major threat for Under Armour. Brand awareness is still low since it’s just a 22-year-old company. Nike is 54 years and Adidas is 68 years. Price Under Armour’s target audience are those of the athletic type. Since Under Armour already has a well-established hold in the professional sports market, they can get away with charging a little more for similar products that its competitors sell (Groves 2015). Customers are willing to spend a little more on their products due to value-based pricing and with the fact that Under Armour markets their products as the best in the market and of the highest quality (Groves 2015). Place Under Armour is a company that sells its products both online and offline. Due to the online expansion, this has helped get its products to more customers in different locations. Amazon is just one company that helps Under Armour sell its products on a global level. The company has approximately 162 factory stores in North America alone and it has a distribution chain of both regional and national distributors when it comes to shipping out its products (Groves 2015). Product The products this company sells caters to a global audience of practically any demographic that is into sports or athletic wear (Buana 2016). Its innovative reputation can be seen in its products that are designed for hotter environments and separate products designed for colder climates (Buana 2016).
Under Armour’s introduction of HeatGear is a product designed to wick away sweat from the body that is also breathable to keep the person cool. The ColdGear is another product that is layered in a certain way to keep those in colder climates just warm enough but not too hot while working out. Under Armour makes a wide array of products such as backpacks, hats, sunglasses, sports equipment, and more aside from just athletic clothes (Buana 2016). Promotion Under Armour’s marketing strategy for its promotion of products can be seen from some of the other parts of the marketing mix. Overall Under Armour markets with large billboards on famous routes, TV commercials, YouTube ads, campaigns on social media, sponsorships with professional athletes, and magazine ads.
Under Armour had recently started an “I Will” campaign which involves a number of professional athletes and everyday people from different backgrounds in life (Wastie 2017). This includes different races and genders conquering in athletic competitions and battles. Another method they use is offering free online shipping through their website if customers spend over a certain amount. They hit heavily on the fact that their products are innovative and of the highest quality. Another big driver they use is their purpose in the athletics wear market. Their innovations are not only product breakthroughs, but also great for athletes as well (Wastie 2017). Direct Competitors Nike was founded on January 25, 1964 as Blue Ribbon Sports and officially became Nike, Inc. on May 30, 1971 (O’Reilly 2014).
Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Bike Skateboarding, and subsidiaries including Brand Jordan, Hurley International and Converse. The company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with highly recognized trademarks of “Just Do It” and the Swoosh logo (O’Reilly 2014).
Adidas was founded on August 18, 1949 by Adi Dassler and it is a multinational corporation in Herzogenaurach, Germany, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in Europe. Adidas’ revenue for 2016 was listed at 19. 29 billion (Cipriano 2016). Strengths and Weaknesses in Market comparisons to Direct competitors Nike is the leading American apparel maker while Under Armour is the upstart. Nike is by far the larger company, in terms of key metrics like market capitalization, revenue, and net profit. Nike is also the more consistent performer. Although its recent financials haven’t blown the market away; the company always manages to land well on the bottom line at margins that have generally improved over the last decade. Nike net income in 2017 was 3.866 billion and the profit margin was 11.13% (Volkman 2018). Under Armour isn’t as consistent. The company was quite the sprinter, as far as its fundamentals and share price were concerned, earlier this decade. With smart product designs that wowed consumers and smart endorsement deals, the company at one point posted an astonishing 26 quarters in a row of 20% plus sales growth. But that was then, and this is now: over its last two reported quarters, Under Armour’s performance has lagged. In fact, the revenue decline of 5% which was a shock after that sustained growth spurt and saw its net income dive by almost 60% (Volkman 2018). Adidas has far above the ground brand value among the consumer since it established. The company supports key sporting events such as Olympics and most important sportsmen and teams and their products are obtainable in the globe and they have well-built workforce (Haseeb 2015).
Adidas is also a creator of large multiplicity of manufactured goods such as sports footwear, Adidas, bags, shirts, watches, eyewear, and other sports and clothing related good (Haseeb 2015). Not only is it more than five times bigger on a revenue compared to Under Armour, it has made nearly 10 times more in net income over the past year (Haseeb 2015). Scale doesn’t necessarily equal success, but it lays the framework for how we should think about these companies. Adidas is actually trending in the opposite direction as Under Armour. It isn’t growing as quickly, but operating margin is on the rise as it leverages the growth it does have. Just like Nike, Adidas is slow but steady in growth (Haseeb 2015).
Since Adidas is a mainstay in the soccer world, it can choose to expand into new sports in a more conservative way. It’s done that in basketball, signing James Harden, Andrew Wiggins, and Damian Lillard to sponsorship deals and slowly building a steady business (Haseeb 2015) On a P/E basis, Adidas is significantly cheaper than Under Armour at a P/E of 32, compared to Under Armour’s of 49 (Haseeb 2015). Adidas is executing at the top of its game, with EPS likely to grow around 20%. Under Armour, meanwhile, is expected to see its profits contract as it continues to invest in marketing and connected fitness. The Baltimore-based upstart may return to solid growth again, but it’s far from guaranteed. Adidas, on the other ahead, is executing on a number of levels, and its shares are still significantly cheaper. It’s the better buy today (Haseeb 2015).
Focused Price Leadership
Under Armour talks about sustainability which ties into their strategy: to meet the expectations of their customers, investors, and other stakeholders. The company wants to maximize opportunities and help manage both costs and risks while preserving future growth (Under Armour, Inc.). Their Sustainability vision is to commit to making the right call with factories such as how they source and design and adding values to the communities in which they work, build and run stores and offices (Under Armour, Inc.).

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read