Under Armour
IMC Comprehensive Project
Carleigh Lewis
EXECUTIVE SUMMARY
Under Armour is an international brand which has become synonymous with health and fitness. Providing
the best, quality, innovative gear to its consumers, Under Armour is looking to grow into the first choice for
all athletes.
The purpose of this campaign will be to launch bricks and mortar locations for Under Armour specific lines
instead of relying as heavily on partnerships through other retailers. The goal will be to grow brand
awareness by 15% across Canada, and ultimately increase revenues.
Through a variety of marketing tactics, this integrated marketing campaign will achieve these goals, without
causing cannibalization of current products in other retailers. Under Armour has set its eyes on first place,
versus the likes of competitors Nike and Adidas.
Our unique concept of creating a race which gets consumers actively responding to posts created by Under
Armour is a concept which reflects everything Under Armour represents. Through registering online, our
account users are able to create a mini profile and also track their place in the eight week competition.
Essentially, competitors will provide their personal information, pick a specific item of their choice through
their downloadable Under Armour Army app and then they will be sent the location, date and time of the
next race. When they show up to the site, they must take a picture and upload it to their account, and then
through the GPS tracking system installed in the app, they will be followed and placed accordingly on their
final position.
On the date of the grand opening of the new Under Armour retail locations, the top five winners of each race
with be granted their choice of prize as voted through the app. Combined with a direct mail campaign, outof-home advertising efforts and some public relations, the stores should experience great success and the
site as well. Even if not all of Under Armour’s consumers choose to participate in the events, viral videos and
blogs are guaranteed to sprout everywhere, causing a virtual stir in the world of social media.
MARKETING & PROMOTIONAL PLAN
MARKET ANALYSIS & SEGMENTATION
Geographics
Country: Canada
Region: Niagara Region
Density: Urban and Suburban
Climate: Variety of weather, seasonal changes
Type of place: Tourist City
Demographics
Age: 18-30
Gender: Males and Females
Family: Students/Adults
Education: College/University
Ethnicity: Diverse
Income: $20,000–60,000 +
Occupation: Student, Athlete, Professional Career
Psychographics
Lifestyle: Achievers, athletically inclined
Interests: Sports, working-out, style and trends
Religion: All
Attitudes: Fit, healthy life-styles, high-class
Behavioral
Benefits Sought: Status, sex appeal, symbolism, healthy-lifestyle
Usage Rate: 3-5 times a week (heavy)
Loyalty: Strong
Adaptors: Fast adaptors to new products
Ways of purchasing: In-store and Online
Frequency of purchases: Regular
GROWTH POTENTIAL
Under Armour is offered in over 25,000 retail stores worldwide. This makes growing the brand that much
easier because it is already well known and well adapted. Through selling a majority of their products in
North America, it is clear to see there is room for growth and expansion in other countries.
PRODUCT & COMPETITIVE ANALYSIS
PRODUCT ANALYSIS
Under Armour is in the business of lifestyle athletic apparel, with a range of product offerings, including:
Clothing & Apparel
The Under Armour line offers a variety of styles and fits that are meant to enhance comfort and mobility,
regulate body temperature and improve performance. Their clothing offers a variety of benefits as outlined
below:
Fit Types
Compression (tight fit)
Fitted (athletic fit)
Loose (relaxed)
Heat Gear
Compression t-shirt
Wicks moisture from the body to keep the body cool, dry and light
Different colours and styles
Cold Gear
Provides both dryness and warmth in a single light layer
Can be worn under any other garment of clothing
Higher prices than other gear
All Season Gear
Worn in changing temperatures and uses technical fabrics to keep the wear cool and dr
Footwear
Under Armour introduced their line of footwear in 2006 to compliment their existing clothing line. Designed
with innovative technology and engineered to maximize the comfort and control of athletes. They have
created footwear for the following athletic needs:
Football
Baseball
Lacrosse
Softball
Soccer
Performance training
Running
Basketball
Hunting
Accessories
Perfectly rounding off their selection with athletic accessories is what ties the brand together. Under Armour
supplies the following:
Hats
Sporting bags
Socks
Team uniforms
Sport specific gear:
o Baseball
o Football
o Golf
o Running
COMPETITIVE ANALYSIS
Competition in this industry is fierce, especially since Under Armour is still a relatively new line compared to
more established brands such as Nike or Adidas. Below we have outlined how these big names match up
against each other.
NIKE
Product line: Apparel, footwear, accessories, athletic
training, and sport focused gear including basketball,
football, soccer, running and tennis.
ADIDAS
Product line: Apparel, footwear, accessories and
sport focused gear including football, running,
basketball, tennis and Olympic sports.
Pricing: $60-$200
Pricing: $40-$150
Community: Use of environmentally preferred
materials and they also support community
programs worldwide, including:
Bola PRA Frente (Brazil)
Let me Play (China)
The Nike Foundation
Bowerman Track Program
Strengths: An established brand with strong roots in
Canada, promoting average prices and a variety of
product offerings.
Strengths: Nike is a well known brand in Canada
which has always developed catchy taglines. They
have strong advertising techniques and own multiple
branded lines (such as Nike Basketball).
Weaknesses: Nike has been attacked in previous
years for child labour scandals, and they have also
been accused of creating cheaply made products
which are slightly over priced.
Strategies & Objectives: Nike has increased their
advertising and marketing efforts by 6% or $615
million and supported key product launches.
Weaknesses: Adidas has recently lost its footing in
the athletic industry, but has gained strides in the
FIFA world. Their positioning is slowly turning around
although it is not as popular of a brand as it used to
be.
Strategies & Objectives: Adidas tries to keep a core
focus on the consumer and also through achieving
operational excellence. They remain true, honest and
committed to what their lines represent with a focus
on being the leading sports brand in the world.
SWOT ANALYSIS
STRENGTHS
Observed as a high-scale brand which is well
known and gaining its roots
Quality, innovation fabrics
Diverse manufacturers
Globally branded with multiple retail outlets
world wide
Variety of products and styles
Willing to shop globally
Sponsorship of multiple athletes
OPPORTUNITIES
Growth and expansion into the Canadian
marketplace
Partnership opportunities (ex. GoodLife
Fitness)
Expansion opportunities in product lines
Shifts in consumer awareness and health
Advertising and PR opportunities
WEAKNESSES
No current Under Armour specific retail
location (they sell through other retailers)
Higher pricing strategy
Limited advertising campaigns
Known for athletic purposes mainly, not as
common for casual wear
Positioning in mainly aimed at males
THREATS
Direct competition with brands like Nike and
Adidas
Indirect competition with the likes of other
clothing retailers or small chain athletic
stores
Weak economic trends
BRAND POSITIONING
Through its continual efforts, Under Armour aims to improve the performance of athletes through their
clothing and footwear lines, in order to create passion and pursuit through all elements of weather. They aim
to be the first choice of athletes whether they are training or competing, and they look to connect with those
who understand the benefits and performance of their products.
MARKETING OBJECTIVES
Within the next two years, Under Armour should assess the potential of introducing multiple stand-alone
retail locations in Niagara Falls, Toronto, Monteal, Calgary and Vancouver. Following year one of operations,
these locations will aim to increase Canadian brand preference for their products by 15% and from here,
subsequent pilot locations will open in other carefully researched areas across the country.
MARKET STRATEGY
The strategy used to introduce these new stores will work around social media outlets, out-of-home
advertisements, public relations and a direct mail campaign to homes within the area. These advertising
outlets will be strategically placed where Under Armour’s ideal market would work and play. Advertisements
will be displayed in large public areas (malls, arenas, bus stations and stadiums), mail will be sent directly to
specifically targeted consumers and Under Armour will also be able to access them through online resources.
MARKETING MIX
PRODUCT
Under Armour products will stay relatively the same, but in these retail locations we plan to carry a much
wider range of items than most Canadian retailers currently offer. This will also create a much larger
consumer base for each store, due to the much greater variety. All of the products will be of the same quality
and durability that Under Armour is known for.
PRICING
The pricing for Under Armour products will be competitive with the other retailers that currently carry the
lines. Keeping the prices relatively equal avoids complications or cannibalization of Under Armour products at
other retailers, while at the same time giving the retail outlet a slight advantage based on selection. Prices
will range from $20-$250.
PLACE
Besides the Under Armour specific retail location, selling predominately through other retailers will still be a
priority, as well as online. Under Armour sponsored kiosks will also be present at local sporting events, as
well as promotional events (races). The retail locations will be located in large, urbanized areas (Toronto,
Vancouver, Calgary, Montreal and Niagara Falls).
PROMOTION
Promotions will include online advertising (Website, Facebook, Twitter); out-of-home mediums
advertisements (mall displays, bus shelters, GO train/bus displays and posters); and direct mail (flyers, mini
catalogues and postcards).
MARKETING TACTICS
OOH Displays
MAY 2013
JUNE 2013
JULY 2013
AUGUST 2013
SEPT 2012
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Direct Mail
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Website
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Under Armour
Army Challenge
Grand
Openings
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OOH DISPLAYS
These types of displays will go up in the respective communities which will be hosting the actual races. There
will be a core focus on billboards and also posters in bus stations in the more urbanized locations, while
posters and mall displays will be placed in the rural communities.
DIRECT MAIL
The direct mail campaign will focus on targeting registered Under Armour fans and also purchasers that
currently go to other retailers for their Under Armour clothing. Once a month, these consumers will receive a
small postcard in the mail reminding them of the store opening in their area, and then once every three
months they will receive a small Under Armour catalogue with products, work out tips and fun athletic event
information.
WEBSITE
The website will act as the hub where everything will circulate back to. This is where the application will be
available for downloading once the racing goes live.
All of these activities have been timed to maximize the exposure each store gets before they open. Each
location will have its own run of direct mail pieces within their city to keep the ads aimed at the surrounding
community. The grand openings will happen simultaneously to maximize hype.
PROMOTIONAL OBJECTIVES
The goal of this IMC campaign would be to differentiate the Under Armour product line from other brands
through advertising mediums such as print, out-of-home, public relations and a direct mailing effort, six
months prior to the grand opening of their retail locations. Overall, we would aim to increase sales and brand
awareness of Under Armour by 15% throughout the country by the end of the second year of operations.
PROMOTIONAL STRATEGIES
Using a pull strategy, we will promote the unique retail locations by generating consumer demand through
advertising, PR and sales promotions.
IMAGE
Remaining true to the Under Armour line is necessary. It is important to promote an image which is strong,
independent and active, just like the typical Under Armour consumer.
ADVERTISEMENTS
Marketing efforts and brand awareness will be achieved through the following efforts:
Out-of-Home
Mall advertising
Billboards
Hockey sideboards
Bus shelter displays
GO train/bus displays
Street posters and signage
Public Relations/Publicity
Sponsoring local teams
Holding a race for a charity in those communities (ex. the Spartan Race)
Sales Promotion
Offer early entrance on opening day to Under Armour members who have registered to the site for
an online account
Have highlight months featuring special products
Introduce member prices for specific items
Direct Marketing
Customized email blasts to registered members
Mobile sale reminders
Interactive consumer website
Mini catalog distribution
PROMOTIONAL MIX
The promotional mix will consist of advertising (as outline above), personal selling tactics and sales
promotions.
Personal Selling
Demonstrations of products in store and at local athletic events sponsored by Under Armour
Knowledgeable sales associates who will be required to run through extensive training in regards to
product and innovation offerings
Sales Promotions
Contests or monthly rewards will be offered to Under Armour members
Sponsoring local teams so those athletes will be representing Under Armour equipment and gear
Introducing a loyalty program
CAMPAIGN ELEMENTS
CREATIVE BRIEF
WHAT’S HAPPENING IN THE MARKET?
Today’s consumers have a health-conscious, green and active lifestyle. Training and working out has become
a huge part of Canadians daily lives. In 2009, revenues and sales in clothing rose up to $25 billion dollars in
Canada, giving brands like Under Armour the perfect opportunity to expand into the market and target these
ideal consumers.
WHAT DO WE EXPECT THIS COMMUNICATION TO DO?
The advertising and promotional messages will increase brand recognition in Canada and increase the
opportunities available to become the leader of sportswear in Canada.
WHO ARE WE TRYING TO REACH?
Under Armour appeals to athletes between the ages of 18-30 who enjoy living a healthy, active life style and
have a competitive edge.
WHAT INSIGHTS DO WE HAVE ABOUT THESE PEOPLE?
These consumers are trend adaptors and strive to stay on the top, making this campaign less challenging.
They are already affiliated with the best gyms in their areas and use the best products to improve their
performance. They are not necessarily price conscious as they are willing to pay the most to be the best.
THE BRAND HAS A UNIQUE CHARACTER – WHAT IS IT, OR WHAT SHOULD IT BE?
The brand’s character is style, agility, comfort and mobility. It should continue with these defining
characteristics while emitting an attitude of being the best apparel an athlete can buy.
WHAT SINGLE THOUGHT DO WE WISH TO COMMUNICATE?
Under Armour is the ingredient to a successful, healthy lifestyle. It helps athletes reach their goals by
providing mobility, comfort and persistently keeping them at the top of their game.
WHY CAN WE SAY THIS?
Under Armour does not create success, but encourages it through its innovative designs and its cutting edge
appeal.
WHAT IS THE MOST INTERESTING ASPECT ABOUT THIS PROJECT?
Creating a joint society in which Under Armour actually relates to, while bringing it to Canada to sell first
hand to consumers. It is a new creative edge, and a fun way to interact with the existing Under Armour fans
that currently are not exposed to a wide range of Under Armour products.
THE BIG IDEA – UNDER ARMOUR ARMY RACE
Billboards, direct mail and social media will be the main sources of communication for this game. Following
the same theme, style and tone, each advertisement will contain information regarding the store openings
and the contest itself.
THE CHALLENGE
1. Consumers will log onto the Under Armour website in order to download a specialized app to their
mobile device.
2. As a part of the download, they will be asked to fill out their personal information in order to receive
news updates and discounts (which will tie back to the loyalty program). On the site, consumers will
also have the opportunity to fill out a mini biography explaining their hobbies and Under Armour
preferences. The information required to register will be as follows:
a. Name
b. Address
c. Phone number
d. Email
e. Date of birth
3. On the Friday of each week, they will vote on their favourite product from a list updated on their
Under Armour app. After they vote for their product of choice, a race will be revealed. They must do
this every Friday, however during the eight week phase in which this game will run, a race may not
be revealed every week.
4. When a race is revealed they have to get to the final destination by the given date and time.
5. At the race, they must take a picture of the starting point through the mobile application and then
post it to their account. This will register them at the official challenge location and it will also act as
a GPS tracking device which follows their movement during the race. Each racer will also be assigned
a number based on when their photo was uploaded.
6.
When each participant has finished the race, the app will automatically update and inform them of
their place.
7. Those who place in the top five of the race will be granted their favourite item which they had voted
on earlier through the Under Armour app. Those who participate in all of the races will also have a
chance to randomly be selected and offered one of the items from their votes.
8. The prizes will be handed out at the racer’s local Under Armour store on the grand opening day, with
a special preview for members only.
GTA and Niagara store races will occur in Toronto, Niagara, Milton, Oakville and Hamilton.
Montreal store races will occur in Beloeil, Lacolle, Marieville, Saint-Denis and Saint-Jacques.
Vancouver store races will occur in Bellingham, Chilliwack, White Rock, Ladysmith and Gibsons.
Calgary store races will occur in Calgary, Banff, Cochrance, Black Diamond and Canmore.
What makes this concept so exciting is that all of the out-of-home advertising and direct mail efforts will
entice consumers to flood back to the Under Armour website and register for this event. The Under Armour
Army will grow through these active, social media and IMC efforts, increasing product purchases and
consumer interaction.
MEDIA PLAN
This chart outlines how the spending for this campaign will be allocated.
ACTION
Direct mail pieces
OOH advertisements
DESCRIPTION
This will cover the costs associated
with sending the postcards once a
month for three consecutive
months, reminding consumers
about the store opening and the
event. After the grand opening,
the magazines will come into
circulation once every three
months.
This includes doing bus station
signage, one billboard in each
urbanized location (strategically
placed), mall signage in rural
locations and banners for the
races.
MONETARY ALLOCATION
TOTAL: $15,000
$2,500 per urban billboard x 5
cities x 2months = $25,000
$900 per suburban billboard x 20
cities x 1 month = $18,000
Additional mall and bus signage
roughly estimated at $15,000
TOTAL: $58,000
The Under Armour Army Race
The money allotted to this event
will cover set-up of the race and
also the promotional giveaway
that the top five racers will be
awarded at the grand opening of
TOTAL: $25,000
Website and App Development
their local store. No prize will be
valued over $100, allowing Under
Armour to control this cost point.
This will cover the design of the
app used for the race and also
creating new graphics and
synching it to the site.
TOTAL: $10,000
GRAND TOTAL: $108,000
DIRECT MAIL STRATEGY
The focus for the direct mail campaign will be to create awareness of the store openings and also drive
consumers to the website in order to register for the race. The ideal Under Armour customer is active,
inventive and eager to explore, so this campaign is specifically targeted to them. Distribution will be based on
sign up and account creation through the Under Armour website and app download.
PR PLAN
The Under Armour Army Race will drive free publicity and spark the interest of those in the respective
communities. For the grand opening celebration, we would also post a print ad to clarify date and time.