Under Armour – Case Study
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Case Study: Under Armour UA WIN Program
Erin Cornell
PRCM 3050
Under Armour – Case Study
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Brief Contents
I.
Research: The Client
3
Public Relations Opportunity
12
III.
Objectives
13
IV.
Programming and Evaluation
14
Conclusion
20
II.
V.
Under Armour – Case Study
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I. Research: The Client
This paper assesses a unique public relations opportunity for sports apparel giant, Under
Armour, hereafter referred to as UA. In less than two decades, UA has grown to become one of
the most successful sports apparel and equipment brands in the world. Famous for its trademark
“moisture-wicking” fabric designed to keep athletes cool and dry, the company has grown its
signature products, resulting in widespread global recognition and expansion.
Mission
UA’s mission is: “To make all athletes better through passion, design and the relentless
pursuit of innovation” (“About Under Armour,” n.d.). The company’s signature shirt concept set
a precedent for other larger competitors to create similar products. UA’s ability to secure a new
niche in the sports apparel retail market accounts for much of the the company’s rapid growth.
As the newcomer in the sports apparel industry, UA successfully distinguished itself from other,
more established brands.
History
UA was the creation of 23-year-old Kevin Plank, a former football player for the
University of Maryland who did not like having to change his sweat-soaked cotton t-shirt
multiple times during two-a-day practices. Wanting to create a more efficient way for athletes to
dress, Plank launched UA in 1996 with the first “Heat Gear” t-shirt. Managing the company
from his grandmother’s basement in Washington D.C.’s Georgetown neighborhood, by the end
of 1996 Plank made his first team sale to Georgia Tech, generating $17,000 in sales. In 1997,
UA introduced Heat Gear’s counterpart, the “Cold Gear” fabric for colder conditions, followed
by “All Season Gear” to be worn between the extremes (“History,” n.d.).
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By the end of 1998, UA had outgrown its basement operation and Plank moved its
headquarters to Baltimore, Maryland (“History,” n.d.). UA’s move to Baltimore was based on
strategy, practicality and gut instinct. While Plank could have taken his company anywhere,
Baltimore appealed to Plank for several different reasons. Plank’s business partner Kip Fulks
(now COO) had been a lacrosse player; a sport which Plank thought would be beneficial to the
company and lacrosse also had a strong presence in Baltimore. Plank had visited the city
throughout his time in college and the then mayor, now Governor, Martin O’Malley was from
the Washington D.C. area like Plank (Unger, 2013).
The brand made its first movie appearance in 1999 when the company generated products
for the Warner Bros. film, Any Given Sunday. Using UA’s increased exposure from the movie;
Plank bought the company’s first print advertisement in ESPN the Magazine. The decision paid
off, increasing awareness and resulting in $750,000 increase in sales. In 2002, the brand moved
its headquarters from a 15,000 square-foot facility in the Southeast District of Baltimore to an
old soap factory with 400,000 square feet of space. The new corporate offices were now located
in the Tide Point section of south Baltimore (“History,” n.d.). Leaving Baltimore was never an
option for Plank, as the hard-edged, blue-collar identity of Baltimore matched the culture Plank
wanted to bring to UA (Unger, 2013). Since 1998, Baltimore and UA have continued to build a
strong relationship.
Following UA’s first TV campaign “Protect This House” in 2003, the company officially
became a household name. In the immediate years after, UA designed new lines specifically for
women, children, and outdoor athletes. In 2005, UA Golf was released and the company signed
its first all-school deal with Plank’s alma mater, the University of Maryland. Toward the end of
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that year, UA issued an IPO to become publicly traded. The brand expanded its product
categories in 2006 with the addition of football cleats, followed by baseball, softball and
lacrosse. Less than two years later, UA revealed a line of performance trainers, marking its
official entry into the athletic footwear market. In 2010, UA opened its European headquarters in
Amsterdam and built its first branded-retail store in Annapolis, Maryland. In 2011, the company
further expanded its global reach when it opened its first store in China and became the official
technical partner to Tottenham Hotspur of the Barclays Premier League (“History,” n.d.). Today,
the company remains strong in the athletic apparel market and is aggressively expanding its
footwear business (Germano, 2014).
Products and Services
UA has consistently enhanced its products in response to consumer demands. The
company strives to dress athletes from head to toe exclusively in its products. UA offers
consumers shirts, shorts, outerwear, underwear, shoes, accessories and even more for men,
women and children. Customers can choose from leggings, graphic tees, long sleeve shirts,
sunglass, hats, headbands, protective gear, gloves and anything else the athlete might need.
Equipment is sold for a variety of activities from running to hunting to snowboarding.
Products are primarily sold through major sporting goods retailers. UA’s two largest sporting
goods retail customers include Dick’s Sporting Goods and The Sports Authority (“Form 10-K
Annual Report,” 2014). Products are also sold through UA’s online store and UA outlet stores
with locations in 34 states. UA operates full-price retail locations available in Maine,
Massachusetts, and Illinois (“Our Locations,” n.d.). UA’s original “Heat Gear” and “Cold Gear”
remain among the most popular products. UA’s products have a strong, loyal consumer base.
Under Armour – Case Study
Despite its popularity, UA captured less than three percent of the U.S. sports apparel market in
2011, compared to seven percent by Nike. UA received only six percent of its revenue from
international markets, while more than 60 percent of Nike’s revenue is from global sales. UA
shoes comprise 12 percent of its revenue, but only account for one percent of the U.S. athletic
footwear market (Roberts, 2011).
UA was named the official footwear sponsor of Major League Baseball in 2011 and has
become a sponsor for high school athletes (“Under Armour named,” 2011). UA sponsors AllAmerica games for baseball and football, inviting the best high school athletes from across the
country to play a televised game wearing UA gear. The brand is currently a sponsor for
collegiate athletic programs, including 11 division I teams, as well as NFL Scouting Combine
(“History,” n.d.). These events reinforce UA’s image of being committed to supporting and
dressing all athletes throughout their careers.
UA’s products offer consumers a desirable, active lifestyle. The company maintains
endorsements from world-class athletes across a variety of professional sports, such as gold
medal skier Lindsey Vonn, MMA World Champion Georges St- Pierre and two-time (2002 and
2004) Super Bowl MVP Tom Brady. Two of the most important athletes who endorse UA are
Ray Lewis, former Baltimore Ravens Linebacker, and Michael Phelps, the most accomplished
Olympian of all time and a Baltimore native (“History,” n.d.). Baltimore is important to the
foundation of the company and UA consistently seeks a way to support the city.
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Internal Structure
Plank serves as the Chief Executive Officer and Chairman of the Board. Other
administrative positions include the Chief Financial Officer, Chief Operating Officer and
President of Product, International President, Executive Vice President of Global Marketing,
Senior Vice President of Sales for North America, and President for North America (“Executive
Team,” n.d.). The company maintains a bureaucratic structure with Plank at the top, the
executives beneath him, followed by managers of all the different locations a step below that.
With UA’s global presence, it is necessary to have a linear chain of communication to ensure
messages are received clearly. The Board of Directors is comprised of 10 people including
Plank, six of which are independent directors (“Profile,” n.d.). At its headquarters in Baltimore,
UA employs 1,300 personnel across six buildings located on its campus (Unger, 2013). UA also
maintains offices located in Denver, Colorado; Amsterdam, Netherlands; Guangzhou, China;
Hong Kong, and Toronto, Canada, as well as 123 retail locations across the United States (“Our
Locations,” n.d.). In total, the company employs almost 4,000 workers worldwide (“Under
Armour, Inc.,” n.d.).
Internal Culture
UA’s culture is characterized as fast-paced and motivates the innovation and strong work
ethic of its employees (“The Culture,” n.d.). Executive Vice President of Global Marketing Matt
Mirchen explained in a 2013 interview with Baltimore Magazine that Tide Point and the city of
Baltimore fit the company’s culture of “blue collar, inner city tough” (Unger, 2013). The
Baltimore headquarters is referred to as a campus with employees referred to as teammates,
almost as if they are part of a sports team.
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The company’s atmosphere is relaxed with regard to its dress code, as employees are
perceived as a direct reflection of the brand’s products. Desiring to link his brand with health,
Plank encourages an active lifestyle throughout the UA campus. To facilitate this culture, new
employees receive $50 a month towards personal or group training sessions. In its on-site
cafeteria, menu items are marked with a color-coded dot, ranging from green for healthy to red
for unhealthy. The fast-paced environment of UA results in a high demand on employees,
including working long hours to uphold the company’s rapid growth (Unger, 2013). The
company’s concept of team helps employees relate to the target consumers and work together to
maintain the global expansion of the brand.
Management’s View of PR
UA is open to the use of Public Relations and demonstrates this throughout its many
initiatives. UA’s three most prominent community campaigns are UA Power in Pink, UA WIN
and UA Freedom. UA Power in Pink is designed to encourage women to use fitness and exercise
to stay healthy, and also serves as a platform to help raise awareness about breast health. UA
donates a minimum of $2 million annually to Johns Hopkins Hospital in Baltimore to develop
the Live Well Center and to support research for breast health (“UA Power in Pink,” n.d.). UA
also developed a clothing and accessories line dedicated to breast health. Ten percent of each
“Power in Pink” item purchased is donated to a number of organizations involved in breast
cancer research. Since its inception, UA’s donation amount has more than doubled each year
because of the increasing popularity of the “Power in Pink” apparel and accessories (“Under
Armour’s,” 2012).
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UA WIN provides funding to support sports among underserved communities. UA works
directly with coaches and leaders in the communities to address problems in youth sports, such
as improving locations for youth to play and equipping youth with the newest UA products
(“WIN Global,” n.d.). Through UA Freedom, UA donates a minimum of $250,000 annually to
support First Responders, Military Support Organizations, Law Enforcement Officers, and
Veterans. UA is also a partner of the Wounded Warrior Project, which supports veterans in their
recovery and transition back into civilian life (“Freedom,” n.d.).
In addition to the company’s three philanthropic initiatives, UA employees volunteer
time to the Baltimore community. In 2013, 281 community projects were completed by 1,000
employees who donated more than 600 hours of time. Through UA employees’ efforts, 800
jackets were collected and donated to a homeless shelter, 1,500 meals were served to individuals
and families, and employees provided holiday presents to 375 children from the Salvation Army
(“In the Community”, n.d.). These positive campaigns demonstrate UA’s strong presence in the
lives of people of all ages and backgrounds. The company’s use of community relations
contributes to its growing success as an athletic apparel brand.
UA utilizes both traditional and social media. The brand’s advertisements can be seen on
television and heard on the radio. UA uses its website as way for consumers to learn more about
the company as well as a platform for its social media. The company is able to reach a wide
audience through Twitter, Facebook, YouTube, Pinterest, Google Plus, and Instagram. UA uses
social media in order to maintain a two-way communication effort with consumers.
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Image
UA is constantly working to enhance its image among the public. The charitable work
done in Baltimore and other communities around the country prevents negative press.
As the official sponsor for the U.S. Olympic speedskating team, the 2014 Winter
Olympics presented the first major media challenge for the company. Some of the U.S. skaters
claimed a flaw in their UA designed suits caused underperformance. Company executives
remained supportive and responsive to the athletes during the situation, and identified a way to
fix the company’s mistake (Horowitz, 2014). With the company trying to improve sales globally,
the situation may have tarnished UA’s image of supreme quality products to possible global
retailers. UA’s management of the situation, however, supported its image of remaining focused
on its clients. Since this issue did not involve one the company’s best-selling products, it did not
have as big of a media impact as it could have. UA must prepare itself in the case that a flawed
design occurs in the gear of sport that has the potential to more heavily impacts sales.
In September 2014, the company announced its plans to continue partnering with the
Baltimore Ravens following the mishandling of Ray Rice’s domestic violence allegations
(Barker, 2014). With the national controversy surrounding this situation, UA could have easily
been cast in a negative light. Instead, because of all the work UA does in Baltimore and the
positive press generated by its breast health and military veteran initiatives, the company is able
to maintain the image of a stable and loyal partner.
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Financial Status
Less than 10 years after its launch, UA earned $280 million in revenue. In 2010, the
nearly quadrupled its revenues in a five-year period, exceeding $1 billion (“History,” n.d.). By
the end of 2013, the company’s revenue was $2.33 billion (“Annual Financials,” n.d.). Currently,
UA’s sales have increased 20 percent from 2013, now reaching $1.2 billion (Germano, 2014). In
July 2014, the company achieved its 17th consecutive quarter of more the 20 percent revenue
growth. The company plans for continued growth with its expanded outreach to female
customers. During this quarter, apparel sales, which comprise 75 percent of net revenues, rose by
35 percent. The company has sustained strong fiscal growth over the last decade and the outlook
is that UA will continue increase revenue. UA anticipates as much as a 29 percent increase of
full year revenue in 2014 to $2.9 billion (Team, 2014).
Current Reputation
Overall, the reputation of UA is positive. The company’s substantial growth in such a
short amount of time indicates consumers’ positive attitudes and loyalty towards the brand. UA
is endorsed by some of the most accomplished athletes in the world, connecting the athletes’
success with the quality of the brand. In order to attain this amount of success, Plank and his
employees worked to expand the company’s original product into a variety of products
consumers have responded to. UA’s quick response to innovate merchandise has built a strong
reputation that could withstand a crisis. With all the good ways the company has presented in
interacting with the public, a crisis is difficult to imagine.
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II. Public Relations Opportunity
As stated earlier, UA has a large corporate giving effort with three major philanthropic
campaigns. Out of the three, UA has not been able to create as much awareness for UA WIN as
the other two. UA must continue to build positive relationships with consumers and the UA WIN
initiative puts the UA name and brand in the hands of youth in underserved communities. With
the goal of sharing the gift of sports to children, UA can develop more opportunities for kids to
play sports, work with coaches and wear UA gear. By creating a more solid foundation in the
United States, UA could expand the effort globally. The UA WIN program symbolizes
everything with which the company wants to be associated: giving back, supporting active
lifestyles, and promoting the value of sports. By making more people aware of the program
through different outlets, the influence on people’s lives could be multiplied and UA’s mission
expanded.
Audiences Affected
The audiences affected by this public relations opportunity would be the receivers of this
charitable effort, global consumers, and UA employees. UA has quickly become a powerhouse
in the sports apparel industry in the U.S. and has the potential to do so internationally as well.
With employees at the forefront of the mission, UA could reach more communities all over the
world. Once UA has connected with new communities, consumers in these areas will be more
aware of everything the company offers and the brand can continue to get stronger.
Under Armour – Case Study
III. Objectives
To better establish the UA WIN program in the United States, UA must set specific
objectives to strengthen and expand the company’s community relations.
Public Relations Opportunity
UA has excelled in its domestic community relations programs. UA has the opportunity
to increase awareness of the UA WIN program, which supplies youth in underserved
communities with areas to play sports as well as UA gear and equipment. UA must promote
participation in the program to raise overall effectiveness and influence.
Informational Objective
1. To increase awareness of the UA WIN program among consumers.
Behavioral Objective
1. To encourage consumers to participate in the UA WIN program.
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IV. Programming and Evaluation
PR Opportunity: UA should increase efforts in engaging with consumers to support the UA
WIN program.
Objective #1: To increase UA consumers’ awareness of the UA WIN program.
Strategy 1-1:
Key Publics
Channels:
Evaluation:
Addressed:
Create
1. The meeting is
 UA Executive 1. Individual (One to
partnerships with
one or one to small
considered successful
Board
UA’s two largest
group):
A
UA
if Dick’s Sporting
 Dick’s
sporting goods
representative must
Goods and The Sports
Sporting
retail customers,
meet
with
executives
Authority are willing
Goods
Dick’s Sporting
from Dick’s Sporting
and excited to support
Executive
Goods and The
Goods
and
The
Sports
the UA WIN program.
Board
Sports Authority.
Authority to create and
An agreement must be
 The Sports
implement
plan
to
reached which benefits
Authority
increase promotion of
all parties and achieves
Executive
UA
WIN
through
the goal of increased
Board
partnerships
with
these
awareness.
 UA consumers
retail stores.
 Followers of
2. Social Media:
2. Observe amount of
UA social
Announce partnership
likes and shares of
media
for
the
UA
WIN
content to estimate the
accounts
program through post on amount of Facebook
UA Facebook page.
users reached by the
Repost periodically.
post. Also assess users’
comments for an idea
of level of interest and
positive or negative
feedback. Measure the
difference in likes,
shares and comments
for each time the
content is reposted.
3. Social Media:
3. Measure the
Announce partnership
amounts of retweets
for the UA WIN
and favorites of the
program through post on post. Monitor for an
UA Twitter account.
increase or decrease in
Repost periodically.
attention with each
repost.
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4. Social Media:
Announce partnership
for the UA WIN
program through post on
UA Instagram account.
Strategy 1-2:
Target employees
of Dick’s Sporting
Goods, The Sports
Authority, UA
outlet stores and
UA brand houses
to inform
consumers.
Key Publics
Addressed:
 Retail store
employees
 In-store UA
consumers
5. Mass Media: Include
section on UA WIN
program page of the UA
website listing Dick’s
Sporting Goods and The
Sports Authority as
partners.
Channels:
4. Observe the amount
of likes on the post in
order to measure
followers’ interest
level in the partnership
and the UA WIN
program.
5. Monitor the number
of views of the page on
the UA website to
indicate the amount of
people possibly
reached.
Evaluation:
1. One to one: During
check-out, retail store
employees should ask
customers if they are
aware of the UA WIN
program. If not,
employees should give
the customer a brief
overview and
instructions for how to
reach the UA WIN page
on the UA website.
1. Monitor UA website
views during the time
employees are sharing
the message of the UA
WIN program with
customers. Measure the
difference in views
before and after this
time period.
As more consumers are
reached, ask employees
to look for an increased
awareness of the
program when
customers are asked at
check-out.
2. One to one with
personalized message
tool: Employees should
greet customers at the
door with an item
decorated with UA WIN
logo and website link
(baseball, keychain,
lanyard, etc.).
2. Monitor UA website
views before and after
giving out these special
items.
Under Armour – Case Study
Strategy 1-3:
Create social and
mass media
awareness
opportunities for
the UA WIN
program.
Key Publics
Addressed:
 UA executives
and employees
 UA consumers
 Followers of
UA social
media
accounts
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Channels:
Evaluation:
1. Mass Media: Send
emails to UA
consumers who have
recently made a
purchase, or are signed
up to receive UA
emails, information
about the UA WIN
program including
participating
communities, quick
facts, and goals of the
program.
1. Record number of
emails sent to estimate
amount of consumers
reached. Monitor
views of the UA WIN
page on the UA
website. Also, note if
there are an increase in
inquiries into the
program through
emails, messages sent
through the UA
website, or posts on
social media.
2. Track the number of
hits the website records
before and after the
update in information.
2. Mass Media: Update
the UA WIN page on
the UA website to
include previous and
future locations for the
UA WIN program,
photo galleries,
interviews with coaches
and youth involved in
UA WIN, and
interactive features for
consumers who visit the
page.
3. Social Media: Create
social media hashtag
(#UAWIN) and use on
Facebook, Twitter and
Instagram whenever
posting about the UA
WIN program.
4. Social Media: Create
a UA WIN board on the
UA Pinterest page that
includes UA gear,
equipment, locations
and participants.
3. Track use of the
hashtag by social
media users (the
amount of times it is
used, retweets, likes,
shares, etc.).
4. Track the number of
pins from the UA WIN
Pinterest board.
Under Armour – Case Study
Strategy 1-4:
Promote the
testimony of
beneficiaries of the
UA WIN program
through YouTube
video interviews
highlighting one
participant each
month.
(A participant is
someone who lives
in an underserved
community which
has been helped by
the UA WIN
program and has
received UA gear
and equipment to
promote the value
of an active
lifestyle).
Key Publics
Addressed:
 UA executives
and employees
 Members of the
communities
affected by the
UA WIN
program
 Subscribers to
UA YouTube
channel
 Followers of
UA social
media
 UA online
consumers
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Channels:
Evaluation:
1. Social Media: Post
video interviews with
UA WIN participants
on UA YouTube
channel.
1. Track number of
likes and views of the
videos each month.
Observe increases or
decreases in likes and
views each month to
assess awareness level.
Also monitor
comments on the
videos for feedback.
2. Track number of
likes, shares and
comments on each of
the posts. Monitor
comments for positive
and negative feedback.
2. Social Media: Link
videos to posts on the
UA Facebook page
upon release each
month and repost
weekly as an “In case
you missed it” post.
3. Social Media: Link
videos to a post on the
UA Twitter account
upon release each
month and repost
weekly as an “In case
you missed it” post.
4. Mass Media: Post
videos to front page of
UA website upon
release each month.
Also post videos to the
UA WIN page.
3. Track the number of
retweets and favorites
on each post to get an
idea of the number of
users reached.
4. Track the number of
hits on the UA website
before and after the
videos are posted.
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Objective #2: To encourage UA consumers to participate in the UA WIN program.
Strategy 2-1:
Key Publics
Channels:
Evaluation:
Addressed:
Develop a
1. Track the number of
 UA executives 1. One to one: Retail
consumer give-back
store
employee
informs
give-back items
and employees
program within
customers of the givepurchased in retail
 Retail store
retail stores in
back
program
upon
store locations during
employees
which each time a
walking into the store,
the specified months.
 UA in-store
particular item is
including
which
items
consumers
purchased during
qualify to be donated
(Specific retail store
one month of each
and whom the items
mentioned above)
season (March,
benefit.
 UA online
June, September
2. One to one: Retail
2. Track the number of
consumers
and December) a
store employee informs give-back items
matching item
customer of the
purchased in retail
corresponding to
opportunity to purchase store locations during
the sport season is
a give-back item if
the specified months
donated to a
customer has not
of the give-back
community
already done so.
program.
benefitting from the
3. Mass Media: An
3. Track the number of
UA WIN program.
automated message
give-back items
For example,
shows up on the screen purchased online
baseball and
before a consumer can
during the specified
softball bats could
check-out on the UA
months of the givebe available as part
website to inform the
back program.
of the give-back
consumer of the
program for the
opportunity to buy a
month of March.
give-back item.
4. Personalized
message tool: Emails
are sent to consumers
who have recently
made a purchase online
informing the consumer
of the opportunity to
buy a give-back item
and information on the
UA WIN program. If
the consumer bought a
give-back item, special
messages will be sent
the consumer thanking
him or her for doing so.
4. Track the number of
emails sent to
consumers who have
purchased a give-back
item online.
Under Armour – Case Study
Strategy 2-2:
Develop an event
such as a 3v3
soccer or basketball
tournament
sponsored by the
UA WIN program
which will involve
people in the UA
WIN mission
providing youth the
access to sport.
Key Publics
Addressed:
 UA executives
and employees
 Residents of
communities
hosting the
event
 UA consumers
 Followers of
UA social
media
accounts
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5. Social Media: At the
beginning of March,
June, September and
December, a post is
released on UA’s
Facebook, Twitter and
Instagram announcing
the give-back item for
that month and an
overview of how the
program works.
Channels:
5. Track the number of
likes, shares, retweets
and favorites on social
media posts to
measure awareness
level.
1. Special Event: The
3v3 soccer or basketball
tournament which will
be hosted by an
underserved community
involved in the UA
WIN program. These
events can occur
quarterly to coincide
with increased levels of
awareness during the
give-back program.
2. Social Media: Posts
on UA Facebook,
Twitter and Instagram
will announce the event
with information on
location, times,
registration and other
ways for consumers to
give back.
3. Mass Media: The
UA WIN page on the
UA website will be
updated with the next
event’s date, location
and registration
information.
4. Advertising: Ads for
the event will be placed
in local media of the
community hosting the
event.
1. Record the
attendance of the
event. Record the
number of participants
registered in the
tournament. Send a
survey to participants
to gain feedback on
how to enhance the
next event.
Evaluation:
2. Track the number of
likes, shares,
comments retweets
and favorites on the
posts to measure
awareness and
popularity.
3. Track the numbers
of hits to the page
before and after the
update, as well as the
number of people
registered.
4. Record the number
of ads placed and the
size of circulation of
each medium.
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V. Conclusion
UA has built itself over the last 20 years as one of the premier athletics apparel and
equipment companies in the world. A company with humble beginnings in Plank’s
grandmother’s basement has expanded to sponsorships across major sports conferences and
leagues, sporting goods retailers, outlet locations, brand houses and an online store. UA not only
retails its products as a marketing tactic, but uses the company’s influence as a way to make a
difference in the lives of others. Through the UA WIN program, UA empowers young athletes
and coaches in underserved communities to be engage in sports as an approach to a better quality
of life. UA WIN gives UA the opportunity to improve its reputation among communities,
consumers and employees; therefore, the promotion of the program is vital to achieve the
company’s goals. Implementation of the objectives and strategies mentioned previously in this
paper will provide UA with the means to establish a strong public relations campaign.
Under Armour – Case Study
21
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Under Armour – Case Study
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