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JULY 4, 2013
1 EXECUTIVE SUMMARY
1.0 Executive Summary 3
2 SITUATION ANALYSIS
2.0 Situation Analysis 3
2.1 Market Needs 4
2.2 The Market 4
2.2.1 Market Demographics 5-7
2.2.2 Market Trends 7
2.2.3 Market Growth 7
2.3 The Company 7-8
2.3.1 Mission 8
2.3.2 Service Oering 8
2.3.3 Positioning 8
2.3.4 SWOT Summary 8
2.3.4.1 Strengths 8-9
2.3.4.2 Weaknesses 9
2.3.4.3 Opportunities 9-10
2.3.4.4 Threats 10
2.4 Competition 10
3 MARKETING STRATEGY
3.0 Marketing Strategy 11
3.1 Value Proposition 11
3.2 Critical Issues 12
3.3 Financial Objectives 12
3.4 Marketing Objectives 12
3.5 Target Market Strategy 12-13
3.6 Messaging 13
3.6.1 Branding 13
3.7 Strategy Pyramids 13
5 FINANCIALS
5.0 Financials 15-16
6 CONTROLS
6.0 Controls 16
6.1 Keys To Success 16-17
6.2 Contingency Planning 17
6.3 Market Research 17
6.4 CRM Plans 17
6.5 Marketing Organization 17
REFERENCES 18
SITUATION ANALYSIS
Product MSRP
FIGURE 2.2
Less Than High School High School Some College College Graduate
2.3.1 MISSION
Under Armours mission is to make all athletes better through passion, design, and the relentless
pursuit of innovation.
2.3.3 POSITIONING
Under Armour oers sport apparel, shoes, and accessories with the most advanced technology
available in the market. UA gear is designed with one goal in mind to help the athlete perform better.
UA oers comparable products for men, women, and children, typically priced at the upper end of the
market. This brand and price positioning is intended to reinforce UAs status as a premier product.
2.3.4.1 STRENGTHS
The key strengths of the company and brand are as follows:
Reputation Since entering the market in 1996, Under Armour has solidied its status as a
provider of premier sport apparel, shoes, and accessories to athletes. The company is seen as
an innovator in the industry, bringing a number of unique products and innovations to the
market, including ColdGear, HeatGear, AllSeasonGear, Charged Cotton, and the UA
Spine technology used in the development of the Spine Brawler football shoe.
2.3.4.2 WEAKNESSES
Pricing While some may see Under Armours pricing structure as a weakness, we feel it is
justied by the quality of our products and the technology/innovations provided to the athlete.
However, we will list pricing as a weakness since there is no doubt it is a factor in some
consumers decisions whether to purchase UA products. Cost-conscious buyers may opt for
other, lower-priced products instead.
Late Entry Into the Market Under Armour entered the market much later than its primary
competitors companies that have been around for decades and have well-established
customer bases. In some cases, loyalty to these established brands is passed down to future
generations, making it dicult for UA to grab some of these younger customers.
Product Availability While Under Armour products are widely available online and in UA
stores, as well as sporting goods stores, other brands have a much wider reach. UA product
selection in sporting goods stores can be limited as well.
2.3.4.3 OPPORTUNITIES
Under Armour competes in a very challenging market with well-established brands such as Nike and
Adidas. Based on UAs previous success in penetrating the market, as well as its demonstrated brand
equity, we feel there are numerous opportunities for the brand to continue this upward climb.
However, to justify UAs brand and pricing placement, we must continue to be proactive in marketing
the strengths, innovations, and benets of UA products to consumers.
Continued International Expansion Under Armours presence on the international market
has grown signicantly, but there is still much room to grow. We will continue to seek out
global partners who share UAs fast-paced, passionate, performance-based culture.
Licensing Deals Licensing deals with major college athletic programs have helped increase
UAs brand awareness, and we must continue to seek out these opportunities. Deals with
professional leagues and teams must be considered as well.
2.3.4.4 THREATS
The current challenges that Under Armour faces are:
Economic Concerns While the economy is in much better shape than it was a few years ago,
the unemployment rate is still high, and many people are still hesitant to spend money. We
must continue to monitor economic indicators to determine if alterations to our marketing
and/or pricing plans are necessary.
Intense Competition Under Armour is positioned in an extremely competitive market with a
number of well-established brands. The market has been dominated by Nike for years,
although UA has gradually picked up a larger share of the market. Competitors have continued
to introduce products comparable to UAs oerings some at a much lower price.
The Nike/NFL Licensing Deal The NFL is big business, and the $1.1 billion Nike paid for
exclusive licensing rights to NFL gear is proof of that. For Under Armour, this presents an
additional challenge, since Nike products (including football shoes/cleats) are elevated by this
licensing deal. It also gives Nike the opportunity to produce team-specic shoes/cleats
something UA and other companies cannot do.
2.4 COMPETITION
As previously stated, competition is erce in this market. Nike is the clear leader, but Under Armour has
overtaken Adidas as the runner-up in the past couple of years. Both Nike (Jordan) and Adidas (Reebok)
also have secondary brands in the market. Other competitors include Russell, Champion, New Balance,
Brooks, Puma, Saucony, and a host of smaller companies. Traditional clothing retailers such as Old
Navy, Gap, Aeropostale, and similar companies have also began producing performance apparel to
compete with the major players in the market.
Although UA has come a long way in a short period of time, there is still much work to be done. As
with any fast-growing company, there are questions about Under Armours ability to live up to
expectations. Most people who buy Under Armour gear wear it on the eld and in the gym, whereas
Nike and Adidas clothing is just as likely to be donned for a trip to the mall, or backyard barbecue
(Sorensen, 2011).
To eectively continue to build the UA brand, our focus must remain narrow, instead of trying to be all
things to all people. The core of our business is performance.
3.6 MESSAGING
The core message of Under Armour is rooted in performance how our products perform compared to
alternatives, and how consumers/athletes perform using UA gear. This drives everything we do, and
should be at the forefront of all UA communication and marketing eorts.
3.6.1 BRANDING
The Under Armour brand represents our mission to make all athletes better through passion, design,
and the relentless pursuit of innovation. UAs commitment to that mission has led to countless game-
changing products that give athletes an advantage.
The Under Armour crisscross logo is now an easily-recognized symbol for the company,
comparable to the Nike swoosh and the Adidas stripes. It is a versatile mark that we can display in a
variety of formats, colors, and sizes on products and in marketing collateral. It can be displayed with or
without accompanying slogans or text; because our brand awareness is strong, the logo can essentially
stand on its own.
We are the ocial outfitter of athletic teams in several high-prole collegiate conferences, and since
2006 we have been an ocial supplier of footwear to the National Football League (NFL). In 2010, we
signed an agreement to become an ocial supplier of gloves to the NFL beginning in 2011 and we are
the ocial combine scouting partner to the NFL with the right to sell combine training apparel
beginning in 2012. In addition, in 2011 we became the Ocial Performance Footwear Supplier of
Major League Baseball, as well as becoming a partner with the National Basketball Association (NBA)
which allows us to market our NBA athletes in game uniforms in connection with our basketball
footwear starting with the 2011/2012 season ("Under Armour 2012 SEC Filing," 2012).
enhancing benets so that these outweigh the cost associated with the product. We want the
consumer to justify the purchase by acknowledging the performance benets the product will provide
to him.
Therefore, all marketing initiatives must prominently include the Spine Brawlers benets: the UA
Power Clamp, the UA Spine chassis, 4D Foam, the 3D-molded MPZ tongue, and V56 technology.
4.1 PRICING
The UA Spine Brawler Mid MC Football Shoe is priced at $149.99 MSRP, placing it at the upper end of
the product category. This pricing structure is intended to establish the Spine Brawler as a premier
product because of the technological and performance-enhancing features it has.
Coincidentally, Under Armour has established the low and high ends of the product category our
Mercenary 5/8 MC is priced at the low end of the market (MSRP $74.99), and our Cam Highlight MC
(Cam Newtons signature shoe) is priced at $159.99 MSRP. Main competitor Nike also has products
scattered throughout the pricing spectrum. (See FIGURE 2.2 for more information.)
4.2 PROMOTION
Under Armours promotional strategy incorporates a combination of print, television, and web-based
advertising. We will also utilize the relationships we have with online vendors such as Eastbay and
Zappos, and brick-and-mortar vendors such as Sports Authority, Dicks, and Academy to promote the
product.
Our promotional eorts will utilize the relationships we have with a number of NFL football players to
build awareness for the product and its performance-enhancing benets.
4.2.1 ADVERTISING
We will utilize the following methods to advertise the UA Spine Brawler:
Print advertisements in a number of prominent magazines (Sports Illustrated, ESPN The
Magazine, Sporting News, Pro Football Weekly, etc.)
Television commercials featuring UA endorsers Tom Brady, Julio Jones, and Arian Foster
displayed during college football and professional football broadcasts, and on ESPN and NFL
Network
Web-based promotions on UA.com, Eastbay.com, and Zappos.com
Product testimonial videos posted on YouTube.com and Vimeo.com
Social media outlets, including Twitter and Facebook
FINANCIALS
5.0 FINANCIALS
Under Armour is committed to balancing its operating budget and operating on a solid nancial
foundation while focusing on increasing year-to-year revenue. Both revenues and internal expenses
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2008 2009 2010 2011 2012
FIGURE 5.0
CONTROLS
6.0 CONTROLS
The purpose of the Under Armour Spine Brawler Mid MC Football Shoe marketing plan is to serve as a
guide to the marketing sta in order to eectively communicate the benets of the Spine Brawler to
the consumer. It also serves to establish a baseline for company executives and the Board of Directors
to oversee and ensure the accurate execution of the plan.
Mullins, L. (2007). Muscling Up in Sports Gear. U.S. News & World Report, 143(20), 57-58.
SBRnet Market Research. (2013). Retrieved July 5, 2013, from
http://www.sbrnet.com.logon.lynx.lib.usm.edu/
Sorensen, C. (2011). AN UNDERDOG WITH ATTITUDE. Maclean's, 124(35), 46-47.
Under Armour 2012 SEC Filing. (2012). http://www.uabiz.com/secling.cfm?lingID=1336917-13-11
Under Armour Launches I WILL, its Biggest Ever Global Marketing Campaign. (2013). Retrieved from
UA Biz website: http://www.uabiz.com/news/releasedetail.cfm?ReleaseID=739814
Under Armour Leadership Team. (2013). Retrieved July 6, 2013, from
http://www.underarmour.jobs/leadership.asp
Under Armour Performance Sports Company History. (2013). Retrieved July 4, 2013, from
http://www.underarmour.jobs/our-history.asp
Under Armour Spine Brawler Mid MC Football Shoe. (2013). Retrieved July 5, 2013, from
http://www.underarmour.com/shop/us/en/mens-ua-spine-brawler-mid-football-
cleats/pid1235869-061
Weedon, G. (2012). "I Will. Protect this House:" Under Armour, Corporate Nationalism and Post-9/11
Cultural Politics. Sociology of Sport Journal, 29(3), 265-282.