Under Armour Case Analysis. Business & Marketing Essay

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UNDER ARMOUR CASE ANALYSIS
Introduction
The success of any business greatly depends on the uniqueness of the product it offers, its target market, and the mode used to advertise the product. Through the “I Will What I Want” campaign, Under Armour enjoyed relative success as it focused mainly on women sportswear. The products were advertised through multichannel platforms, which not only attracted many customers but also created significant value for the company. Nevertheless, since the “I Will What I Want” initiative only generated $500 million from sales, questions have been raised on the competitive edge of this initiative. Therefore, this paper aims to determine; whether Under Armour should continue focusing on women, whether it should use multichannel platforms as the primary mode of advertisement, and whether the company should continue using famous athletes in its advertisements.
1. Should Under Armour continue targeting and growing the female market segment? Or should it target a broader population to gain more traction on Nike and get closer to the number one spot?
Yes, Under Armour should focus on growing the female market rather than engaging in the broader market. Focusing on the broader population means that the company will be competing with Nike, Umbro, and Adidas for the same customers. In 2013, Under Armour generated $2.3 billion from sales. This is significantly less compared to $25, 313 billion generated by Nike in the same year (NIKE revenues 2006-2009, n.d.). The huge difference in the revenue generated can be attributed to Nike’s global appeal as a multi-national corporation. Therefore, for Under Armour to top the apparel wear industry, it will have to create a global appeal that involves operating in all countries. This proposal is unattainable as it requires a huge amount of capital that Under Armour cannot raise. However, even if the company was able to raise the capital, success is not guaranteed as Nike controls a large market share of the broader population.
On the other hand, Nike, Adidas, and Umbro have largely ignored women when designing their products as they mostly focus on male athletes. Since they do not have female sportswear, they usually take the men apparel, reduce them into small sizes with bright colors and later sell them to women. Through the “I Will What I Want” initiative, the company has already explored this vacuum and generated $500 million. Given that women account for roughly 50% of the world’s population, it only makes sense for Under Armour to focus more on women. This can be done by pushing the “I Will What I Want” concept beyond the borders of the United States and Canada. According to Marquis (2015), exploring new markets and growing existing ones helps a company to benefit from global trends by leveraging the organization across a larger market, while significantly reducing its risk.
Furthermore, focusing more on women’s apparel will differentiate Under Armour from the other Apparel companies. The distinction will be through a brand that recognizes Under Armour as a company that specifically produces women’s sportswear. In the long run, the brand will not only make a memorable impression on women consumers, but it will also allow the women to know what exactly to expect from Under Armour. Additionally, since brands increase business value by giving companies more leverage, focusing on women’s apparel may become an appealing investment opportunity for investors. Considering Under Armour is low on capital, such investment will be of great benefit to the company.
2. Should Under Armour keep paying famous Athletes to be part of its advertisement campaign or should it use more of everyday people.
Yes, Under Armour should continue using well-known athletes in its advertisements. Although every day people offer a cheap alternative, this mechanism only appeals to the friends and relatives of the person used. As a result, sales and revenues cannot increase significantly since the majority of the people cannot identify with an ordinary person. On the other hand, although they are expensive, famous athletes are idolized by masses. Consequently, they are likely to attract attention and pull those masses to the company’s brand. From the case study, Under Armour is struggling with brand identity. As a result, there is no better way of improving the...