Sports apparel and athletic footwear are irreplaceable products especially with the growing call for fit healthy lifestyles and athletes will always need those products. The sports industry, in general, is a very large industry and has many industries depending on it. The demand is continuously rising for such products and it is difficult for athletes and regular customers to switch to alternative products without compensating quality or performance. There are competitors such as Victoria's Secret and Forever21 for example which offer sportswear for women. There are also shops such as Bershka which offer sportswear for men and women. These substitutes offer sports apparel at lower prices but with low performance as well. Consequently, they …show more content…
The strategic group map is attached in the Appendix (Appendix C, D). As shown in the appendix, parameters used in the strategic group mapping are: price, perceived quality and image, and product line (lifestyle/casual vs. performance). Adidas is more focused on lifestyle and casual products. Adidas is also relatively high in prices and has strong brand recognition. Nike has higher prices than Adidas and stronger brand recognition, as well as a balance between performance and lifestyle apparel. Under Armour focuses more on performance. Under Armour offers products at high prices and their products are associated with durability and high performance. Fila, Reebok, Puma, and Columbia are all in the lower prices category. Fila and Puma focus on performance while Columbia and Reebok focus more on lifestyle product lines. On the outer map, there are substitutes or indirect competitors (Bershka, Forever21, Victoria's Secret) who offer low prices, low quality, and no performance related products (Appendix D). Those are merely examples mentioned in those grouping and there are more brands in the …show more content…
Strong advertisements: sports apparel brands are known for their strong advertisements and inspiring messages. They can reach their audience by motivating them to exercise or take on a sport. This constitutes a key strength factor for the industry.
4. Quality control: brands in the sports apparel industry are known for the durability of their products and their quality. This means that buyers are willing to invest in those products.
5. Well-known brand name: most companies in the sports apparel industry have strong brand recognition and their brands are appealing and known by a big segment of the population.
6. Ability to secure favorable display space on retailer shelves: known brands have the power to secure favorable display space with special lighting and display methods in certain stores which helps to attract customers.
7. Offering solutions for athletes and people with specific problems: sports apparel not only offers desirable designs, it also offers solutions. For example, fabrics used in shirts keep athletes cool. Another example is sports footwear specifically designed for people with flat
The most recognized brands amongst US males in the sports and fitness clothing market are Nike, Adidas, Reebok, and Puma (Statista, 2014). However, there is a large amount of opportunity to gain market share as only Nike hold a high percentage favoritism from male shoppers (Statista, 2012). Multiple brands have a stronger focus on women’s clothing such as: Fabletics, Athleta, and Lululemon. Lululemon has a similar business model however the brand has a stronger connection with women and yoga.
Advantage: Expanding the sale of products in foreign countries will help UA to become a global competitor in the world market for sport apparel and performance products; enhancing the global awareness of UA brand name and strengthening the appeal of UA products worldwide.
The reason consumers select Under Armour is because the brand is innovative. They’re constantly creating new products. Under Armour is the originator of performance apparel. That is what attracted their first customers, their present customer, and future customers. Add that with their marketing, and that is what helps make the company what it is today.
middle of paper ... ... d it to establish a brand image characterized by authenticity and quality. Moreover, they came up with a more enduring concept of ‘comfortable, sweet-wicking gear’ which help the perception of the Americans on athletic clothing. UA also managed to convince former team mates like Eddie George to wear its shirts. This strategy worked well, for it enabled the shirts to gain further and wide exposures.
The sports apparel and accessories industry has a highly competitive market. Businesses are constantly competing for elite athletes to sponsor, raw materials, and every opportunity to expand. Under Armour is able to not only survive but thrive in this market because of their ability to think outside of the box. They are constantly creating new and exciting products that help athletes everywhere.
Although, Under Armour’s profit is significantly lower than its competitors, it is important to note that Under Armour competes against mature companies. Similar to gross profit, Under Armour’s revenue over the past three years is significantly lower than their competitors (refer to figure 2 in appendix). While Under Armour’s growth has fluctuated, both Nike and Adidas will no longer have significant
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
This report is for individual or institutional investors who want to diversify their portfolio by investing in sportswear retail industry. Given the positive announcement of its high profit, it is suggested that JD sports Fashion Plc is undervalued and a final justification will be made in this report. The report will provide in-depth analysis of JD sports Plc. that includes the following content:
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
But what makes people buy the name brand Nike? They have great advertisement. I love to watch Nike commercials; they appeal to me as an athlete. The commercials show the inner fight in people, breaking records, becoming a stronger person, being the best you, and being the best athlete; you can be overcoming anything. I find their advertisement to be very inspiring and motivational. The Nike slogan ‘Just Do It’ plastered on so many products inspire others to get out and ‘Just Do It,' no hesitation. Nike tries to appeal to you to buy their products by placing their apparel on professional athletic. Everyone knows Lebron James he has many young athletes that look up to him and want to be just like him. What do they see Lebron James wearing? Nike apparel, for the kids that want to be just like him, they want what he has. So they want the Nike look. For me personally, I see Nike products and logos at just about all sporting events, which is a great strategy for the business.
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
Nike recruits brand ambassadors from different parts of the world who top in athletes and who are having a good following in the public, which helps them to reach the audience that influences them to purchase the Nike sportswear. (MichaelSam85, 2011)
The second recommendation for Under Armour is that they should develop a shoe line and marketing campaign for women, based on the idea of everyday athlete. Focusing on the fact that women want to compete and have the same performance benefits that everyone wants, but also have a shoe that is stylish enough that she can wear straight
They attempt to choose athletes who they want to reflect their brand, they are achievers, winner, determined and accomplishment orientated, which is what they also encourage their consumer to be. Another important source for brand equity from Nike is the high perceived quality of their products not only by athletes but the public as well. Although most consumers won’t be using their Nike products for high level athletic performance, Nike products are always designed to be able to be used with that
The most problem faced in sports clothing companies include constantly changing fashion style because style changes constantly and most consumer derive high taste and also taste for a particular product changes and also tough competitions and more price conscious shoppers, all this stand to affect the sport clothing industry all over the world