Marketing Mix – Under Armour

Marketing Mix – Under Armour
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August 22, 2023
PART A: GENERAL INFORMATION AND SITUATION ANALYSIS
Section 1
Company Background:
Under Armour, Inc., a quintessentially American brand, is a testament to the spirit of innovation and resilience in the sports and casual apparel industry. Established in 1996, the company's origin is rooted in a visionary pursuit by its founder, Kevin Plank, a 23-year-old former football player. His entrepreneurial journey began in his grandmother's basement in Washington, D.C., when he identified a gap in the market for moisture-wicking compression shirts (Fundable, n.d.). These shirts were designed to keep athletes dry, calm, and light, even during intense physical activity.
Over nearly three decades, a focused attempt to revolutionize sportswear became an expansive venture. Today, Under Armour's repertoire is not just limited to moisture-wicking shirts. It encompasses an extensive range of products that resonate with the athletic community and those who prioritize comfort in their daily wear.
Core Products and Services:
Under Armour stands out in the crowded athletic wear industry due to its relentless commitment to product quality and innovation. The brand offers a diversified collection of sports apparel, ranging from signature shirts, meticulously designed trousers, and ergonomically perfected shoes to accessories like hats, gloves, and backpacks.
However, what truly distinguishes Under Armour is its approach to design and technology. The company is driven by the idea of enhancing athletic performance and endurance. To this end, Under Armour consistently invests in research and collaborates with athletes for feedback. According to Newcomb (2019), Under Armour has developed innovative technologies like ColdGear Reactor and Infrared, which reflect the brand's dedication to understanding biomechanics, anatomy, and the ever-evolving demands of various sports disciplines (Newcomb, 2019).
Direct Competitors:
In the high-stakes world of sportswear and athletic gear, competition is fierce. Leading the pack alongside Under Armour are behemoths like Nike and Adidas. With their global presence and expansive product lines, these brands are in direct competition with Under Armour in terms of product offerings, market strategy, target demographic, and brand ethos.
Puma and Reebok also emerge as significant competitors. While they might not match the sheer market volume of Nike or Adidas, they offer niche products catering to specific athletic community segments. A Business Insider report from 2020 highlighted how these brands are vying for supremacy in the athletic wear market space, leveraging celebrity endorsements, technological innovations, and strategic marketing campaigns (Bringé, 2021). Each brand constantly evolves in this highly competitive arena, trying to outpace the other.
Section 2
SWOT Analysis:
1 Strengths:
1 Strong Brand Recognition: Under Armour is synonymous with high-quality athletic wear. Its branding has resonated with many consumers globally, thanks to effective marketing campaigns and endorsements by renowned athletes. According to the company’s report, it ranked among the top 2 most valuable apparel brands globally, emphasizing its powerful brand equity (Under Armor, n.d.).
2 Innovative Products: The brand's commitment to innovation has developed several patented technologies and fabrics, such as the ColdGear and HeatGear lines. As highlighted by Forbes, Under Armour's culture of innovation has consistently been its driving force in the competitive sportswear landscape.
3 Expanding International Presence: Over the past few years, Under Armour has increased its footprint in markets outside the U.S., such as Asia and Europe, signifying its ambition for global dominance.
2 Weaknesses:
4 Heavy Reliance on the US Market: Despite its global expansion, a significant portion of Under Armour's revenue is generated within the U.S. This geographical concentration poses risks, as localized economic downturns or market shifts can heavily impact sales (Under Armour, Inc. & P.R. NewsWire, 2023).
5 High Competition: The sportswear industry is saturated with powerful brands like Nike, Adidas, and Puma. Competing against these established names necessitates continuous innovation and marketing efforts.
6 High Product Pricing: Under Armour's products often have a premium price tag. While this underscores their quality, it may alienate cost-conscious consumers.
3 Opportunities:
7 Expanding to Untapped International Markets: Regions like Africa and parts of Southeast Asia present vast growth opportunities. As a McKinsey report indicated, the African urban consumer market is expected to grow significantly in the next decade (Agyenim-Boateng et al., 2015).
8 Growing Athleisure Trend: The blurring lines between sportswear and casual wear offer brands like Under Armour a chance to capitalize on this trend. As The Business of Fashion reported, athleisure is not just a trend but a lifestyle shift expected to continue.
9 Increasing Health Awareness: The global push towards fitness and wellness, amplified by digital platforms and fitness influencers, presents a vast market potential for athletic wear brands.
4 Threats:
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