Bibliography - WordPress.com

advertisement

Team TASE

Tom Farrell

Angela Miller

Scott Stromberg

Erica Tafavoti

Team TASE

Contents

Introduction

Situation Analysis

Competitors

Technologies

Customers

SWOT Analysis

Objectives

Financial Objectives

Selecting a Target Audience

Product Positioning

Selecting a Marketing Communication Mix

Our Media Mix

Advertising

Public Relations

Direct Marketing

Creative Strategy

The Theory

Bibliography

Page

20

22

24

11

12

14

15

16

18

20

5

6

9

10

3

4

4

5

2

Team TASE

Introduction

Under Armour's mission is to make all athletes better through passion, science, and the relentless pursuit of innovation. Although it is relatively new company, Under Armour has found tremendous success in the sports apparel and accessory industry. By focusing their attention on skillfully crafting their products with the most advanced technology on the market, they have tapped into markets that were previously nonexistent. In its short life, Under Armour has found success in a number of different sports markets including but not limited to football, baseball, basketball, soccer, golf, gymnastics, ice hockey, mixed martial arts, rugby union, and swimming.

Not only have they targeted certain sports industries, but they have also targeted certain demographics. They have focused much attention on high school and collegiate sports teams, spreading knowledge of their brand quite quickly among that demographic. They have also found that by targeting and sponsoring entire sports teams instead of singular athletes, they have enlarged their market share.

Although Under Armour has tapped into markets quite successfully, they are not currently targeting a quite lucrative market. The extreme sports industry is one of the fastest growing industries in sports right now. The statistics are impressive: Snowboarding has increased 240% in participation since 1992 and is now an Olympic sport; by 2005, the number of skateboarders in the U.S. is expected to have grown to 15 million, a 22% increase from 2000. These numbers prove that there is a need in the industry. The growing success of these sports will in turn add success to whoever takes advantage of the opportunity to market to these athletes. We believe that by technologically crafting clothing and accessories for these athletes, Under Armour could benefit greatly. Because Under Armour is known for its high-end sporting apparel, they would be a great company to represent this industry that has so much to do with sponsors and image.

3

Team TASE

Situation Analysis

Competition

Under Armour’s main competitors are Nike, Adidas, and Puma. All of these companies provide a similar assortment of high quality athletic goods, like that of Under Armour. With such tough competition, it makes it difficult to establish a higher statue of prestige over the competition. However, there is a part of the market that Nike, Adidas, Puma, or Under Armour have not tapped into yet. This market is extreme sports. When one thinks of surfing, brand names such as O’Neill, Billabong, and Hurley are the first to be associated with the sport. With snowboarding, Spyder, Volcom, and Dynastar seem to be the reoccurring brand names. Under

Armour just doesn’t have much leverage with many of the extreme sports such as snowboarding, surfing, rock climbing, free running, and many more. One way UA could capture this portion of the market would be by producing specific styles of clothing for different types of extreme sports. For instance, wet suits for surfing, ski jackets for snowboarding, altered shoes for free running, etc. Not only could this produce a larger amount of revenue from this market segment, but it could also enhance Under Armour’s image as seeing the athlete in everyone.

Technologies

One of the key aspects to Under Armour’s breakout success is their technological innovation that always keeps them at the forefront of the athletic gear market. The two main collections that Under Armour promotes are their Cold Gear and Heat Gear. Cold Gear boasts technology that is designed to keep an athlete’s core warmer in temperatures of 55 degrees

Fahrenheit or less. Prior to the development of this technology, athletes often would have to wear

4

Team TASE bulky layers in an attempt to keep warm, which is definitely not the most effective way of keeping someone in prime competitive condition. Beyond the ability to keep an athlete warm,

Cold Gear is also advancement in compression technology. By reducing muscle vibration, your body is exposed to less resistance, thus increasing your ability to stay stronger, longer.

Compression technology also speeds up the evaporation of moisture from your body, helping to regulate your core body temperature while keeping your attire light and free from sweat. Another benefit to compression technology is the reduction in recovery time. By compressing the muscles during stress, swelling and soreness are reduced and soft tissue damage is minimized. This results in a shortened healing time and muscles that repair themselves more quickly. Heat Gear utilizes the same moisture wicking technology as Cold Gear, keeping athletes sweat free and light during times of extreme heat. Ideal for use in temperatures of 75 degrees Fahrenheit or warmer, this technology is much lighter than Cold Gear. Promoted as “second skin” technology,

Heat Gear is the lightest and most absorbent attire on the market. With attire to suit such a broad range of environments, Under Armour has the ability to reach nearly every sport imaginable and provide them with the necessary attire to perform to the best of their ability.

Customers

The type of consumers that UA would need to direct their extreme sports wear would be young, sporty men and woman age 20-35. This is the segment of people that are typically involved in extreme sports (onecaribbean). Some specialists believe that the age group over 55 is even a possible target market in the extreme sports world (onecaribbean). This age group is starting to get involved in white-water rafting, bungee and parachuting (onecaribbean).

5

Team TASE

Currently, UA targets the ‘athlete’ who is serious about their sport and serious about their performance. Many of the UA products are called performance products, conveying the idea that these products are made of high enough quality that a competitive athlete at the highest level would wear this gear. UA has decided specifically to advertise their products to the performance athlete so that the customer feels like a professional athlete when they buy and use UA products.

Another reason to aim UA products at extreme sports is the fact that extreme sports are becoming much more popular. Following the socio-cultural pattern that is emerging with extreme sports, it could be an area of business that UA could target before their other big competitors get there. The customers like to make the connections with brands and have a sense of brand loyalty. If UA can cover extreme sports, when the customer follows the trends to these up and coming sports, they will be more than inclined to purchase UA products as they have already formed a bond with the brand.

SWOT Analysis

Looking at Under Armour, they are situated in a huge market along with competitors like

Adidas, Nike and Puma. We all have our favorite companies, but why? Some customers prefer to buy products from Adidas for their clothing, others prefer Nike shoes, and golfers prefer Puma gear, especially at Oklahoma State thanks to Rickie Fowler. We carried out a SWOT analysis for

Under Armour as the brand it is today.

Strengths

One of Under Armour’s key strengths is the power of their brand. Being such a young company in comparison to its major rivals, it has done a great job at establishing itself in the

6

Team TASE market. This is evident because you can ask any sportsman what UA is, and they will know this, even though the company was only started 16 years ago. Since it was founded, it has been a rapidly growing company. They offer a wide range of products, which cover all areas of the sporting market. They cover each sport, and we are sure that each athlete could somehow have a piece of UA clothing in their closet.

One of their efforts to gain customers is a scheme called ‘UA Green’. This is their attempt at making high quality sporting gear with less effect on the environment. They have a very positive response from the customers that they gain, as many of them like their products and switch from the original brands to the new UA brand.

They have been very clever in sponsoring high schools and college teams as a way of targeting new and young customers. This way they embed into the young potential customers mind that they are a quality new product in the hope that they buy UA for the rest of their lives.

They are very strong financially, and this benefits them because they can deal with any problems that arise, and by having a high profit to earnings ratio, along with a constant growth rate since UA’s founding, it looks very good to the investor in the stock market.

Weaknesses

As any company out there, UA has its weaknesses. One common theme from customers who bought their gear or from potential customers is that they do not reduce their costs in the same way as their competitors do. They clearly have higher prices than their competitors but this is largely because of their efforts to stay green and not cut costs. This is one of the costs that come with being such a highly regarded company.

7

Team TASE

They do have a relatively weak and limited product line. Comparing the Nike and UA websites, Nike have a vastly greater product depth than what UA does, but again this results because they focus on a few of their products being the best in the industry rather than having a huge volume of products.

Originally the UA brand was a predominantly a male oriented brand with very few options for women. More recently this has begun to change, and they are trying to reach out to women with their ‘UA Power In Pink’. This is a range of clothing helping women who are in the fight against breast cancer. This is a predominant aim at women to help bring them to UA.

The final weakness and one that is going to be our focus is that they aim their products at the general sports section of the market. They do not aim any of their clothes in the extreme sports segment.

Opportunities

Being such a new company UA has many different opportunities that could help them move forward as a company. We think that by diversifying their product base into extreme sports like snowboarding, surfing, and sailing they could capture a much bigger share of the market.

There is not one ‘big’ brand in extreme sports that covers most sports. Brands like Hurley and

Roxy are big names but not as big as the likes of Nike or Adidas.

Other opportunities that UA has are to go more international and target overseas more than just American and Canadian sports, and to also change the way the customers spend and what they buy provides a big opportunity for UA to explore. The two final opportunities that UA could explore to help them compete with the big brands is to reduce their prices and to increase the number of retail outlets so there are more places to buy UA .

8

Team TASE

Threats

Obviously the actions of a competitor could be a major threat to UA. They always have to be on their ‘game’ and be constantly thinking about new ideas so that they can retain customers and try to gain new customers who are interested in the UA product line. Since UA is open in the way it is technologically advanced in comparison to their competitors, their competitors are coming out with new products that are going to really challenge and compete with UA.

The final threats are more of the obvious ones. The hard competition from such companies like Nike and Adidas is a very real threat. Also, the recession could very easily impact the sales of the company and the other companies that come in with low prices, which may not be as high quality as UA but it is cheaper for the customer.

Objectives

We will be reaching out to the world of extreme sports through social media, print media and digital media. There are two major events that we really want to get a grasp on; the summer and winter X Games and the Winter Olympics. Through our exposure, we would promote the sales of our clothes that would assist in the athlete’s performance, keep them cooled off in hot areas of the states as well as warmer in the cooler states, and how Under Armour is a suitable and comfortable fit for any serious athlete in any sport.

As almost everyone in the US has access to the internet, it has become a great resource for advertising. Being able to specifically target the right audience helps save money and increases effectiveness. We will also use print media and digital media to target our audience.

9

Team TASE

Typically for print media, it will specifically be in extreme sports magazines, and our digital media will be predominantly using TV. We will be using TV for advertisements placed at specific times of the day, but especially during certain events that we want to target, like the X-

Games. We are likely to reach out to more of our audience if we advertise around the time of extreme sports events, when the majority of the watching audience will be extreme sports athletes.

As we are delving into an area that UA does not sell products in, creating awareness in our IMC campaign will be vitally important. The likelihood that our new target audience knows about UA is very high; they just do not relate UA to extreme sports for apparent reasons. What we can capture is the brand loyalty that potential customers already have with UA for other sports they participate in and by taking UA to their extreme sport, they will prefer to buy the brand they are already loyal too.

We will also have to capture the new customers who do not know about UA. We will do that in a very similar way that UA did when they first started out. They were able to compete with already huge established brands, something we think UA can become if they delve into extreme sports.

Financial Objectives

Under Armour has been a constantly growing company since its founding in 1996. In

2010 alone, Under Armour’s net revenues increased 24% to $1.064 billion. Though Under

Armour produces footwear and accessories as well, 80.2% of their revenue in 2010 came from apparel alone.

10

Team TASE

We believe that by adding a new line of apparel for a different kind of athlete, Under

Armour can sell to a wider range of consumers and increase their net revenues even more in the coming years. Considering the number of people who participate in the “extreme sports” recreationally and also competitively, it would be reasonable to expect a 5% increase in sales over the next 3 years. This time span allows for Under Armour to sponsor and advertise in the summer and winter X-Games, and will also include product placement in the 2014 Winter

Olympics to allow us to reach consumers on a global scale.

Selecting a Target Audience

We will be targeting those who participate in extreme sports recreationally and competitively. We will also be offering products for men, women, and children.

Demographically, the people who we will be targeting for our new line of products are part of an upper class majority. Extreme sports are not ‘cheap’ to participate in, therefore it is very unlikely that the people partaking in these sports are going to have a small amount of disposable income. Not only does it cost a reasonably high amount of money to participate in these sports, but to equip one’s self with the correct equipment and clothing it is also very expensive. This has a small effect on how we price our new line of clothing. We need our prices to be practical and realistic in comparison with our competitors’ prices but also for the people who do wish to participate in the extreme sports, who do not have a huge amount of money, our range does need to be affordable.

There will be an emphasis in advertising efforts of the products in areas that are the most conducive to the sport. For example, we will advertise our heat gear for children more heavily in

11

Team TASE

Aspen, Colorado as compared to areas where that product is in less demand like coastal regions.

Because of these factors, our main form of segmentation will be geographic. Because extreme sports tend to be prominent in extreme conditions, it will be important to market the right products in the right places. Also, although these will be new products in the sports merchandise market; we will not be trying to target new customers, but instead targeting those who have already entered the market. Those who are already invested in the area of extreme sports will be our main target audience, and we will have less focus on trying to add new people to the extreme sports industry.

Product Positioning

With Under Armour’s venture into extreme sports being a completely new venture for the company, we will definitely have very strong competition with the likes of Hurley, Roxy,

Burton, Volcom, and other extreme sports apparel brands. Under Armour’s product price is generally in the upper middle section of athletic apparel. Comparable to Nike and Puma, they provide an excellent quality product with a fairly reasonable price. Branching into extreme sports, this would be no different. The company whose price and quality would most similarly reflect Under Armour’s ideal placement in the world of snow sports would likely be Burton. For a heavy duty jacket, the recreational snow athlete can expect to pay from $250-$350, depending on the technical aspects of the product. Though there are definitely cheaper options, Under

Armour would seek to use only the highest quality materials manufactured specifically for a snowboarder or skiers needs, thus making the cost of the jacket reasonable and expected.

12

Team TASE

For summer extreme sports, Under Armour’s product would be aligned to provide the same quality and price and be competitive with the brand Body Glove. Men’s boardshorts run upwards of $50, and a typical wetsuit for men is being between $150 and $400 according to the coverage of the suit. Similarly to snow gear, wetsuits and rash guards for diving, surfing, and wakeboarding are very specifically tailored to the athlete’s personal needs. Using pre-existing cold and heat gear technology, Under Armour would be able to produce different styles of surf and beach gear depending on the local climate of the athlete, tapping into a very specific niche market. This summer sports gear would be produced for both men and women, and within the women’s market, Under Armour would be able to bring a certain sort of style to their products, as they have with their running and active clothing already. Being in competition with brands like Roxy, the women’s summer extreme sports market may be difficult to break through in, but we believe that Under Armour’s technological advancements will precede them and allow for a very successful product.

Since this is a completely new line of products for Under Armour, the expectation we will have set for the placement of these products will be on the higher side of quality, with a slightly above average price to reflect that. We want a technology advanced enough that an Olympic athlete can wear our gear, with a price low enough that a recreational snow or water athlete can as well.

However, this is still “extreme” athletes that we are marketing towards, and Under Armour will not sacrifice style for technological advancements. Whether it is by color, print, or design, all extreme sportswear produced under the Under Armour name will express the unique and edgy appeal goes along with our brand name.

13

Conservative

Design

Team TASE

Under Armour Product Positioning Map

High Quality

UnderArmour

Body Glove Burton

Hurley Roxy

Extreme

Design

Low Quality

Selecting a Marketing Communication Mix

Under Armour has always positioned its brand in a way that targets athletes, specifically serious athletes. Although there are other brands that market specifically towards extreme sport athletes, we at Under Armour feel that these athletes deserve the same technicality, specialization, and effort put into their sports gear as they put into the sport itself. Not only are we looking to provide specialized clothing at affordable prices, but we are also offering these athletes diversity and options. There will be much variety in the line as we are well aware that everyone has their preferences and likes to showcase those with what they wear while they are

14

Team TASE doing what they love to do. As we have studied the needs of these athletes in regards to their sportswear, we are very excited to provide highly technological sportswear with a 100% satisfaction guarantee to these extreme sport athletes.

Our Media Mix

To get our message out in the vast media world, we will be hitting from all cylinders:

Television, Magazines and Internet. Our commercials will be shown with an athlete sponsor that we feel will reach out to other athletes that are involved with extreme sports during certain seasons. Promoting different seasonal sports during the same seasonal time will increase the likeliness of obtaining more awareness. Magazines will have articles and sections dedicated to different types of extreme sports and how UA will be reaching out to them with our clothing and accessories. We can greatly increase our target market by focusing our efforts to illuminate the extreme sports world with magazine concentration. Mailing subscriptions and providing sample magazines is how we will get our magazine campaign rolling. Last but not least, the internet will be a huge asset to our cause. We will have a website dedicated to extreme sports and extreme sports athletes. The site would include blogs, articles, and images of our clothing line that would appeal to extreme sport athletes. With access to our store and our plan for extreme sports on the

World Wide Web, the consumers will have a way to find out all the information they want to know about us.

Advertising – TV

We will mainly be showcasing this new line during extreme sporting events. This will assure that we are reaching our target market and that there will be very little wasted money on

15

Team TASE advertising. As this line is targeting such a niche market, it would be inefficient to focus our advertising on unspecialized national television. We will, however, be using television advertisements during certain programs which will be viewed by our main target market. The X-

Games is an example of an event in which we will advertise during using television.

We decided that our advertisements will show our products in use, like the current UA advertisements. By using the athletes that we are going to sponsor, it will be a cool and eye catching commercial by showing them doing their ‘thing’ while clothed in our new UA line. For example if we use Sean White as a sponsored UA athlete, to have him jumping off the side of a half-pipe or a mountain and carrying out a series of impressive tricks and ending with a small message from Sean, commenting on how he likes the new UA products and how good they are during what he does.

To raise awareness for the Summer X Games, we would concentrate our marketing strategy in the state of California, where the Summer X Games are held. The big sports in the

Summer X Games are Skateboarding, BMX, Motocross, and Rally Car Racing (ESPN). A great way to get their attention would be by offering our products that are comfortable to wear and are snug to the body to eliminate and chance of clothing getting in the way, such as, our Dry Fit shirts.

To get a hold of the extreme sports in the Winter X Games, we would focus our promotion towards Colorado, the gaming grounds for Winter X Games. Since snowboarding and skiing are the two biggest sports in the Winter X Games, we would build our reputation of our clothing that maintains body heat and keeps the athletes warm in colder conditions. We would maintain a similar form of marketing for the 2014 Winter Olympics, which are being held in

16

Team TASE

Sochi, Russia. Since the Olympics are in a foreign country and also being shown worldwide, it is important that our line is widely known before then so that we can advertise most effectively.

Advertising - Print Media

We will also use print ads using direct marketing in certain geographic areas in which extreme sports are more prominent, for example Aspen, Colorado. Another area where we can use print media is in extreme sport publications, to really access our target audience. Magazines such as Extreme Sport X, Backcountry, Freeskier are just some examples of extreme sports publications that we will use. By choosing specific magazines to advertise in, it minimizes the amount of people we reach who do not care to read about extreme sports. Although the men’s magazine GQ has millions of people who read it monthly, it is not worth it for us to advertise in such a magazine. It is much more efficient for us to choose a magazine with a smaller purchasing audience but the percentage of potential customers we will reach is much higher.

To the right is an example of a magazine advertisement that we would potentially use.

17

Team TASE

Public Relations

We will be sponsoring certain athletes, and we will use them in the print ads and commercials during televised extreme sporting events. By using spokespeople to promote our gear, it encourages the customers to purchase our new products. Take Kelly Slater for example, an amazing surfer who a lot of surfers look up to and wish they could be like. Slater, to these surfers is their role model. We want our customers to think that if our new UA products are good enough for Slater and he uses them, then they need to have them, just so they can be so much closer to their role model.

We decided that having a plethora of spokespeople to tap into the extreme sports world would be more beneficial than having just one face of UA. By having more than one spokesperson, we can market our strategy towards the different types of extreme sports, as well as the different seasons that these sports take flight. Sean White is our main focus to appeal to winter sports. We feel with his past achievements, such as his perfect 100, winning four gold medals in the Winter X games, and being the first person to three-peat in Super Pipe in the

Winter X Games, he would be a positive celebrity to help brand a permanent and successful image for UA and extreme sports. As for the summer extreme sports, Kelly Slater would be a great face. Slater is now forty years old and has had an amazing career. He was ranked first in the Association of Surfing Professionals (ASP) World Tour eleven different times ranging from

1992 – 2011. Throughout our marketing campaign, we would be introducing other athletes as well such as Alex Honnold, Lindsey Vonn, and Damien Walters to promote the sports of Rock climbing, Skiing, and Parkour. Our goal is to establish a relationship to all different kinds extreme sports so that the athletes of these sports, whether they are widely known or in a

18

Team TASE growing process, will see that we are passionate about getting involved with their market segment.

Sponsoring Events

Having a group of spokespeople is not the end of our public relations affairs. Another great way to promote our warm clothing products is with a merchandise sponsorship so that all of the merchandise sold at the Winter Olympics would have the Under Armour symbol on it somewhere strategic to attract the customer’s eye. With these two sponsorships, we could successfully improve our awareness in another country. Aside from sponsorships, advertisements are another great tool to use. We could make banners, posters, and catalogs for customers to see and learn more about our products. By increasing our reputation, attracting outside attention, and sponsoring athletes, we as a company can make a successful profit and establish solid ground in the world of extreme sports. We have provided below an example of what one of our banners may look like for the Winter X-Games, using Sean White, one of our spokespeople.

19

Team TASE

Direct Marketing

As social media has quickly become a huge phenomenon in society, it has also become a very successful way of reaching out to customers. With extreme sports following their name sake, the amount of ‘older’ people who participate in them is limited which has a positive correlation with the amount of ‘older’ people who use the likes of Twitter and Facebook.

Therefore social media sites forms like Twitter and Facebook will be a great way for us to reach our young target audience. Not only can we create a Facebook group to promote UA and the new products we are coming out with and the new sports we are reaching out to, but it is also a great way to aim advertisements at the billions of users on Facebook each day. We could also use a

UA Extreme twitter account to tweet about new product information or perhaps hold sweepstakes and contests. Social networking will not be our only form of internet advertising, and we will use a host of extreme sports websites like the X-Games website and a few others, for example extreme.com and xtsports.com. Our line of extreme sports clothing will also be headlined on the UA online store, so that fans of the brand will be able to see our new line when shopping for other UA gear.

Creative Strategy

The message we are trying to put across to our audience is a very similar message to what

UA currently uses. As previously discussed they provide the serious athlete with scientific and technological gear that has been proven to increase or help the level of your performance. The new lines of gear we are going to aim at the different sports are going to be unique from the other brands currently in the sports as they are going to have a much more ‘athlete/ serious’ feel to them. We want to be able to tell our potential customers that once they buy the specific UA gear,

20

Team TASE they are not only going to feel like a different athlete but they are going to be looked at differently by other participants on the slopes, or on the waves as they are wearing this ‘new’ brand. We have to be creative in the way that we put this message across because it is integral that we make our new line stand out and seem much better than companies, such as North Face or Roxy, that are already a permanent fixture in the extreme sports world. We want our target audience to realize that what we are releasing is much higher quality than what they already own.

Not only this, but we have to make it visually stunning in a way that they are inclined to purchase clothing from our line even when they may already own a comparative item that they have previously purchased.

We need to stand out from our competitors in ways that UA stood out from Nike, Adidas and Puma when they first began in 1996. We feel like we are bringing a new side to the extreme sports. Currently our competitors focus on the items looking ‘cool’ and ‘colorful’. Like we have discussed previously, we are going to bring science and technology to these extreme sports, and obviously they will still look aesthetically pleasing. We are going to stand out from the competition by having gear that helps improves performance, as well as by having great advertisements and commercial media that increase consumer knowledge and interest in our new line. Our commercials will be striking but simple. Like our examples above for a magazine ad and a banner, they are simple but get the message across. Our banner ad emphasizes on the technological side of our new products and the magazine ad focuses on the spokesperson aspect.

Both of these ways show our creative strategy and encourage the customers to go out and buy our products. The advertisements shown are not very informational, but we will have numerous different ads that will include information regarding price, science, and where the products can be bought.

21

Team TASE

The Theory

Obviously with many great ideas and strategies of why we are planning to target the audience like we have discussed, there has to be a reason behind this thinking. As we started to think of the new line of extreme sports gear for UA, one of the things we may have taken into account or assumed is that we at UA are already within the customers potential evoked set of brands. We are not a completely new brand; we are just targeting a new line of products at a new area of extreme sports. We have to attack the sense of our potential customers that we need to win over, but we are not going to be able to tap into the taste and smell senses very easily, it may be an area we could expand into later. For now we have to concentrate on targeting our audience’s senses of touch, sight and hearing. By referring to the selective perception process, with UA already being a fairly well-known brand we can assume that our audience is already exposed to UA as a brand and all we have to do is to bring their attention to the new targeted sports, get them to comprehend our message, and then get them to retain the information in the hope that they go out and purchase some of or gear.

By tapping into objective and subjective evaluative criteria we should be able to create products that the customer cannot say no to. For example, if we are able to create a reasonably priced, high quality product with a lifetime guarantee that also looks ‘cool’ and carries out the requirements of the athletes, it is going to be hard for the potential customers not to at least try it.

While aiming our products at different attributes and changing the attitudes of extreme sports athletes we can assess their thinking and actions using the Multi-Attribute Attitude Model. We can make our products better and our advertising message more effective if we base it off this model because we can improve the customers overall view of the new products by increasing

22

Team TASE their beliefs about the products and also the importance attached to each attribute. If we work on having very few ‘bad’ attributes then the customers will find it hard to criticize the new products.

In conjunction with using the Multi-Attribute Attitude Model, we will also use the Halo

Effect. By making our brilliant attributes look so good and stand out, we will be able to mask the not as good ones. For example if our new cold range focuses on how great the technology and science behind it, and how great it looks we can mask that the price may be relatively high. Then by having nothing else on the market that is comparable to our new products they will be unable to reasonably compare other brands products.

Finally we also need to be aware of the instrumental conditioning process, we need the early adopters to have a pleasant and positive experience with our products so that they pass on a good message to their friends, as word of mouth is one of the best marketing tools that cannot be controlled to a huge extent. We need our products to be of a high level so that they remember using our products as a positive experience and that they will recommend to someone else that they should purchase our products.

23

Team TASE

Bibliography

Wikipedia

Under Armour – www.underarmour.com http://www.gurufocus.com/news/123488/under-armour-inc-reports-operating-results-10k http://investor.underarmour.com/investors.cfm

http://articles.latimes.com/2003/aug/16/entertainment/et-bresnahan16 http://espn.go.com/action/

24

Download