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Strategic analysis of under armour
Under armour marketing strategy
Under armour marketing strategy
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Since its creation in 1996, Kevin Plank's Under Armour has under gone rapid expansion. It has taken over the performance apparel market in the United States, outselling sporting giants such as Nike and Addidas. The company has even expanded beyond the performance apparel line and introduced products including footwear and casual wear. Although it has an immense following in the United States, Under Armour has been facing many difficult barriers to their entry into foreign markets, specifically Europe. These 'entrance barriers' include the increase in competition, the limited scope of their main sport (American Football) in Europe, and the small range of the company compared to the larger, more established companies. However, given the lack of a clear apparel king in Europe and Under Armour's history with clever advertising, it is possible for them to assert their marketing muscles and become a force in the foreign market.
Under Armour, a relatively small-market company, has a very strong foot hold on the American market for performance apparel. It has carved out a nich...
Under Armour provides innovatively designed performance products that incorporated a variety of technologically advanced fabrics and specialized manufacturing techniques, all in attempt to make the wearer feel “drier, lighter, and more comfortable.” This is Under Armour’s core competitive strength.
As stated, “Americans dominated sales in the global tennis racket market in 2015, accounting for a share of 49.2%. The region is expected to continue leading the market during the forecast period, with an estimated 51.21% market share in 2020.” This dominance in the market make the population a perfect target to sell Pacific products. Tennis apparel market is also dominated by the Americans in sales. Pacific should target the market of the United States. The best distribution channels to connect to Americans is through online sales and product sales in retail stores. These distribution channels will help Pacific connect with Americans with more ease. Since many consumers live in the United States this strategy can potentially grow the company
Rivalry is especially strong in the outdoor apparel industry. Patagonia competes with many comparable outdoor clothing brands who feature cheaper, more affordable alternatives of high quality. With innovation and sustainability being a core value of their target market, Patagonia must consistently introduce new technology, increased durability, and added comfort in order to remain relevant and competitive. The threats that Patagonia faces has to do with the bargaining power of buyers and the threat of industry competition. As a company focused on quality, Patagonia faces the threat of buyers forcing down their prices by not purchasing their goods. Buyers might feel that their products, although high-quality, are too pricy to purchase. There is also the threat of
Nike is a household brand name not only in the United States but also throughout the world, although roughly half of sales are sourced in the United States (Brick). This dominance in North America, an area which represents $108.7 billion of the $282.3 billion worldwide, is key in the overall evaluation of the Nike assets (Euromonitor 1). Nike’s position of industry power is supported through their innovation in design as well as notable sponsorships and collaborations with professional athletes and tech companies like Apple. Their event and team sponsorships also elevate Nike to an elite level (4). However, competitors in this industry are quickly gaining momentum. For example, Under Armour has experienced notable growth in the past five years, and adidas continues to grow their presence in the United States. This has detracted some of the Nike dominance in the U.S. market
I chose to research two very different apparel retail stores. The GAP, Inc. and Nordstrom, Inc. are very interesting companies to me because they deal with something that is very important to me and a lot of people, clothes. Everyone buys and wears clothes, and these are two companies who have succeeded in this venture. They both started out with the same intentions, to sell apparel through specialty stores, but at this point Nordstrom’s has been more successful.
In an increasingly competitive market with strong rivals such as Reebok, Adidas, Nike’s latest strategy is offering consumers the shoes they desire. This is done by providing customers with the option of designing their own shoes. At Nikeid.c...
Under Armour’s target market is consumers that are involved in physical activities. The demographic age groups that they cater to varies from youth to adults. Their products can with stand any weather condition from cold weather to warm weather, which means their product can be used in any geographic location. These consumers can be either light user like walkers or heavy users like football players.
Founded in 1996 by University of Maryland graduate Kevin Plank, Under Armour has become the leading supplier of the athletic performance apparel industry. Under Armour began with simple idea to create a t-shirt that would enhance athletic performance by regulating body temperature and removing perspiration without absorbing it. Under Armour was based out of Plank's grandmother's basement in D.C. until he moved the headquarters to, and built a manufacturing plant in, South Baltimore.
This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage. Through an inside-out perspective, Under Armour has been able to concentrate on the growth mission. Its mission is about building ... ...
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.
American Eagle Outfitters is a fairly new company but they are doing extremely well because they have a clear grasp of who their target market is. They posses a fresh new hip look with great quality clothing at a reasonable price for consumers (http://www.prism.gatech.edu/~gte201w/aeostrat.html). This is one of the main reasons why teenagers and young adults are so attracted to the company. American Eagle is aiming to appeal not only to the targeted 20 year old but also consumers between the ages of 16 and 34 years old. This will widen the gap between their major competitors because they are trying to appeal to more segments than just one. American Eagle seeks to be assessable, fashion orientated, and has a strong value proposition, which has allowed the company to thrive and take shares from competitors over the past five years. Not only is their clothing line very comfortable, bold and fresh, the store layout and atmosphere is also major key factors in American Eagle’s success over the recent years. AE also has a strong competitive advantage because of their short lead times and their ability to position themselves in high-visibility, high-profile locations in key markets. American Eagle’s cycle time is about five months from design to delivery, versus about nine months for The Gap and six months for Abercrombie. AEOS minimizes lead times by maintaining sourcing relationships with a few key manufacturers and producing much of the merchandise in North America, versus 9% for The Gap and a minimal amount for Abercrombie. AEOS has the ability to quick-source some of its simpler product categories in order to react quickly to sales trends. (http...
Analysis of sports clothing industry, including its main features, key market drivers and competition within industry.
Under Armour has always set aggressive targets for themselves and they should not change that now. The leadership team believes that “a 3% share of the (athletic footwear) market would nearly double UA’s total revenue” (Wheelen, Hunger, Hoffman, & Bamford, 2015, 2012, 2010), and this should be another one of the metrics that Under Armour monitors and grows.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Customer behavior can be defined as the process used by organizations, individuals and groups, to select, buy or use particular products or services to satisfy their needs and the impact it has on the society (Wikipedia, consumer behavior). Every product in the market is given a different value by an individual user based on the need it satisfies and also the level of the want. For example a person may put choosing a car as just for a means of transport from point A to point B but for another individual a car is not only used as a mode of transport but also as a means of his lifestyle. Many marketers use these difference of needs in consumers to create different marketing campaigns to attract consumers that use their products.