Under Armour: New Product Line

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UNDER ARMOUR: NEW PRODUCT LINE

Grafton Elliot

Nicole Liebman

Owen Coale

Salem Demirkon

COMPANY PROFILE: BACKGROUND

• One of the leaders today in the sporting clothes and accessories industry.

• Based out of Baltimore, MD.

• Annual sales around $2.25 billion dollars and continuing to grow.

• Biggest competitor is Nike (Columbia, Adidas, Reebok)

• Annual revenue of around $25 billion

COMPANY PROFILE CONT…

• Under Armour offers a total of five product lines:

• Cold Gear

• Loose Gear

• Turf Gear

• All-Season Gear

• Heat Gear

• Firm focuses on innovative products

• Shirts that monitor heart rate

• Shoes that mimic the human spine

• Tape-replacing cleat

PRODUCT: UNDER ARMOUR SNOWBOARDING

BOOTS AND HELMETS

• Cold gear boots

• Cold gear helmets (Over Armour by Under Armour)

MARKET POTENTIAL

• Number of US snowboarders in 2010= 6.1 million, compared to 4.3 million in 2000.

• Women make up 33% of snowboarding market

• Global sporting events such as 2014 Sochi Olympics present exponential marketing opportunities

COMPETITORS IN FUTURE MARKET

• Industry Leader(Snowboard Boots): Nike and Burton Snowboards

• Industry Leader(Helmets): Smith

PRICE

• Men's Snowboarding Boots: $150-200

• Women’s Snowboarding Boots: $100-150

• Men’s Over Armour Helmets: $125-175

• Women’s Over Armour Helmets: $100-150

TARGET MARKET

• Users ages 12 to 24

• Largest number of snowboarder range from 12 to 24 (56%)

• Also 25 to 44 years of age (25% of market)

• These consumers tend to have a stronger brand awareness of Under Armour as well

• Both male and female

• Income level of $65,000+, people who are more affluent

DISTRIBUTION METHOD

• Today, UA uses a selective distribution strategy (multi-channel design).

• Sell to both retail as well as directly to consumers

• Online

• Principal customers: Dick’s Sporting Goods, Eastbay, and Sports Authority.

PROMOTION

• Social Media

• Television

• Billboards

• Sporting Events

• In-store promo

• Celebrity Endorsements

SURVEY & RESULTS

• Telephone interview

• 300 people called

• 50% incidence rate lowering us to 150

• 50 people refused leaving us with 100 qualified and willing to respond

SURVEY INTERPRETATION METHODS

• Correlation Tables

• Descriptive Statistics

• Pivot Tables

• Bar Graphs

• Pie Charts

• Line Graphs

RESULTS

• Negative relationship between the likelihood to purchase the Under

Armour product and the frequency of

Snowboarding/Skiing

• Demonstrates that those who are involved in snow recreation activities are less likely to buy our newly developed product

• Why?

• Brand loyalty possessed by avid snowboarders and skiiers

SURVEY RESULTS

• Quality shows to be the dominant trait for UA as demonstrated by the respondents.

• Shows that other aspects for the products need more focus such as safety and comfort.

• Safety is most likely rated lower due to

UA’s lack of actual safety products

SURVEY RESULTS

• Price Rating had the largest variance illustrating that there were a lot of mixed results for how people perceived UA’s pricing for their products

• People of Asian decent are least likely to purchase our newly developed products

• People of Hispanic decent are most likely to purchase

• Most respondents answered “4” for likelihood indicating a strong interest in purchasing

Price Paid

Boots 2

Frequency

Snowboading/

Ski

Quality

Price Rating

Durability

Aesthetics

Comfort

Safety

Gender

Race

Apparel Brand

Type

Likelihood

Income

City

Correlation Table

Price Paid

Helmet 1 Gender

1

0.047970385

Race

Apparel

Brand Type

Likelihoo d

Incom e City

1

-0.075073769 -0.006223799

1

-0.126537055 -0.020069432 0.652244413

1

0.029935223 -0.024423888 0.479677312

0.10342

2 1

-0.083069327 -0.067323291 0.389419146 0.25119

0.080257235

0.031049762 0.400891863

0.47118

1

0.161291

79

0.110789

-

4

1

0.5099

7 1

-0.042285457 -0.165011714 0.375293194

0.28461

2

0.128013

69

0.3443

1 0.404313865

Price Paid Boots

2

Frequency

Snowboading/Ski

1

Quality Price Rating Durability Aesthetics Comfort Safety

Price Paid

Helmet 1 -0.031978212 -0.146241529 0.353386014

0.33551

8

0.192697

99

0.3865

3 0.458409468

1

0.031543453

0.082872436 0.381946121

0.38143

7

0.126842

26

0.4302

1 0.522190214

0.35051

1 0.464012321

1

0.031543453

0.082872436 0.381946121

0.38143

7

0.126842

26

0.4302

1 0.522190214

0.35051

1 0.464012321

1

1 1

0.094448608

0.119230002 -0.179774984 0.02132

0.203834

1

-

-

0.1742

-0.153316655

-

0.13155 -0.156219344

0.14439

-

-0.037041486

0.029389941 -0.218591843

0.18265

0.014462

13

-

0.3747

-0.507858964

-

0.10441 -0.174737455

0.28854

-

0.20017043 -0.111493855 0.066185161

0.01325

0.078650

24 0.1987

0.021226474

0.06814

1 0.11676589

0.03102

6

0.102380116 -0.016663985 -0.063427224

0.02880

2

0.107120

03

-

0.0576

-0.064741746

0.15088

5 0.145413266 0.00242

0.036890039

0.075333094 0.044325253

0.01739

0.031407

35

-

0.0983

0.079016358

-

0.28217 -0.186812234

0.04515

5

-0.185514

0.105640162 0.012866675

0.10672

2

0.018284636

0.036500274 -0.089600383

0.00551

7

0.033060

5

0.1629

2 0.154262759

0.121150

-

8 0.0611

-

0.115307404

0.12972

3 0.172977491

-

0.03761 -0.039884761

0.02827

5

0.07279

-

-0.144391956

-0.288539831

0.031026266

0.002419754

0.045155454

0.028274856

-0.072790697

1

0.073100826

1

-0.019897703

0.0307044

49 1

0.055352822

0.0425896

73

0.05162177

7 1

0.012217837

-0.121563673

0.101766567

0.0899898

34

0.1219318

21

0.0505194

9

-

0.12015692

2 0.02284832

1

-

0.06578857

8 0.036115335 0.162016953

0.06283272

-

5 -0.198859977 0.051423543

1

0.06405726

-

2 1

CORRELATION TABLE RESULTS

• No STRONG correlations

• Stronger than normal correlation between Apparel Brand & Likelihood to

Purchase (positive)

• The table indicated that most people preferred Smith products

• City and type of item purchased(positive)

• City and consumer income(positive)

• Strongest correlation is the Apparel brand purchased and Type of Apparel

Purchased

• Indicates that most people buying helmets prefer to go with a Smith product

• Most males buying boots lean towards a Burton Product

• Women favored the idea of buying boots from Under Armour

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