Under armour 4

Under ArmourBy Stuart Wright, Rob Sonczak and Joe Stojic

Founded in 1996By Kevin Plank a former American University

football player

Products engineered to keep athletes cool, dry and light throughout the course of a game, practice or workout.

The technology behind Under Armour's

diverse product assortment is complex, but the program is simple: wear HeatGear® when it's hot, ColdGear® when it's cold, and AllSeasonGear® between the extremes.

Mission Under armour's mission is to provide the

world with technically advanced products engineered with their superior fabric construction, exclusive moisture management, and proven innovation. Every Under Armour product is doing something for you; it's making you better.

To start of withWanted to produce a superior T shirt provided compressiontake perspiration away from your skin rather

than absorb it.Provide a shirt which regulated temperature

and enhance performance.

What they do nowUnder Armour developed its unique line of

microfiber gear Make under shorts and leggings as well as

topsProvide equipment for a number of sportsStarted making footwear

Point 2Clearly identify which market segments are

being targeted by the organisation

“marketing may be defined as the process established by an organisation to understand, develop and influence exchanges with individuals, groups or organisations in a way to reach the company’s objectives.” Dubois, Jolibert and Muhlbacher (2007, p25)

Market Segments• The company has made its fortune by

exploiting the niches largely overlooked by the biggest names in sports.

• Targeted professional athletes and serious fitness athletes, with a line of tight-fitting T-shirts made of a special material designed to keep active participants cool and dry during workouts and games.

UA started off only targeting professional athletes in American Football.

As the company started to experience profits and growth it expanded into women's, men’s, children’s clothing and at different price ranges for the everyday athlete.

UA has also expanded into various sports such as baseball, rugby, basketball, running, gym wear, ice hockey, field hockey, cricket, tennis, football and golf.

At the moment in 2010 Under Armour are targeting the entire clothing market in the fitness sector including in recent years footwear.

They have experienced such rapid growth since their establishment they can now sponsor and provide clothing for entire sports teams such as the Wales Rugby Union team.

This is how Under Armour themselves describe who they target for their products.

“Our performance products are designed for use in a variety of sports and other activities. We currently focus

on marketing and selling our products to consumers for use in athletics and outdoor activities. We maintain strict

control over our brand image with an in-house marketing and promotions department that designs and produces

all of our advertising campaigns. We seek to drive consumer demand for our products by building brand identity

and awareness, as a leading performance alternative to cotton and non-performance apparel and footwear.”

(Under Armour Report, 2005)

Product Many companies see their product or service to be

the heart of the firm’s marketing efforts but companies must learn to see its output as flexible, being subject to development and adaptation. Christopher and McDonald (1995)

Started off as specialising on a t-shirt to be superior than the competitors.

Now has whole cloths range from shirts to shoesThere is a different range for different temperature

conditions. HeatGear when its hot, ColdGear when it is cold and AllSeasonGear between the extremes

Price The price range for the Under Armour cloths is

bigger than most brands. It does low and high priced cloths where as other brands just focus on one of the other like skins is high end and adidas is on the lower end

On the official websites these were the average prices;

1. skins cloths are lot more expensive £402. then Under Armour cloths £32 3. Adidas was only £22

Under Armour (2010) http://www.underarmour.com/shop/uk/en/pid1003539-Men-s-ColdGear-Shortsleeve-Mock/1003539-600

Adidas (2010) http;//shop.adidas.co.uk/product/KZ766/P92367/Sports/Men’s-TECHFIT-Preparation-Tee/detail.jsf

Skins (2010) http://store.skins.net/uk/men/sportt-mens-compression-short-sleeve-top.html

Cost-based pricing

Product

Cost

Price

Customers

Value

Nagle & Holden (1995)

This top diagram is where the product is the most important thing so it would be a high quality expensive product.

This bottom diagram is where the customer is the most important thing rather than the product so the product is going to be lower cost because the product isn’t going to be high quality

Place/ distribution The primary objective of physical distribution of

product is to ensure that the right products are available when and where needed. Dibb et al (2001)

Under Armour is based in the United States but offer their full range of products to almost everywhere in the world. North America, Latin America, Africa, Asia, Australia & New Zealand, Europe and the middle east

Under Armour have partnered with internation shipping company FiftyOne to supply 37 countries

Promotion “how to communicate with customers abd

potential customers.” Christopher and McDonald (1995)

There are two broad catergories1. Personal (face to face dealing with

customers) Under Armour does this by

2. Impersonal promotion (advertising, sales promotions) Under Armour does this by

Advertising

Under Armour has targeted the younger generation to normal to show it isn’t just for professionals or adults

http://www.youtube.com/watch?v=DvQYaGyVWS8&feature=related (29th November 2010)

Physical evidenceThe Under Armour cloths looks high quality

for professionals is aimed for all

Process Online, official website and retail shops such

as JJB SportsCan buy in retail stores like JJB sports

Positioning Under Armour is positioned at the high end

of the scale but is not just targeting professionals but everyone

People “face-to-face explanation and guidance is

fundamental to the customers” persived level of satisfaction” Dibb et al (2001)

This may be nessasery for Under Armour because the customer may not understand what the difference is with the HeatGear and ColdGear

Can buy in retail stores like JJB sports

Point 4The product. The product is the most important part of

Under ArmourHigh quality

ProductProduct is definitely Under Armours most effective part of

the marketing mix for a number of reasons:Their products provide a USP and differentiate

themselves from the main competitors such as Nike and Adidas.

UA were the first to create performance enhancing apparel which meant they can capture a larger market share first. Once they have taken control of this market share then they can look to exploit it.

High performance athletes will be willing to pay premium prices for performance enhancing clothing therefore product is the most important and effective influencing of the marketing mix.

adidas Group (2010) Adidas official website. [internet] available from: <http;//shop.adidas.co.uk/product/KZ766/P92367/Sports/Men’s-TECHFIT-Preparation-Tee/detail.jsf> [accessed on 29th November 2010]

Christopher and McDonald (1995) marketing introductory text. London, Macmillan Press LTD

Dubois, Jolibert and Muhlbacher (2007) marketing management a value- creation process. New York, Palgrave Macmillan p25

Dibb, Simkin, Pride and Ferrell (2001) marketing concepts and stratigies. Fourth edition. Boston, Houghton Mifflin

<http://files.shareholder.com/downloads/UARM/0x0x36606/5d75c7b3-0d4b-4f6b-b4e8-df2a1e5a1b4e/2005AR.pdf>

Nagle and holden (1995) strategy and tactics of pricing. Second edition. Prentice Hall  (Englewood Cliffs, N.J.)

Skins™(2010) Skins official website. [internet] available from: <http://store.skins.net/uk/men/sportt-mens-compression-short-sleeve-top.html> [accessed on 26th November 2010]

Under Armour®(2010) Under Armour official website. [internet] available from: <http://www.underarmour.com/shop/uk/en/pid1003539-Men-s-ColdGear-Shortsleeve-Mock/1003539-600> [accessed on 29th November 2010]

http://www.youtube.com/watch?v=DvQYaGyVWS8&feature=related