Patrick Tye Kyle Lynch Crystal Li Joe Shocker Sam Tieyuan Chen Michael Chelala About Under Armour Now Under Armour is one of the most innovative athletic apparel, footwear, and accessory companies in the world It has the trademarked COLDGEAR, HEATGEAR, and ALLSEASONGEAR Sponsors famous athletes such as Tom Brady, Cam Newton, and Lindsey Vonn Financial Data Under Armour’s Net revenue for 2013 was over 2.3 billion dollars A 498 million dollar increase in revenue from 2012-2013 The last 15 quarters Under Armour has boasted at least 20% growth in revenue Stock Opened at 46.79$ per share and they do not pay dividends on their common stock Financial Data Current Ratio is 2.64 meaning they are highly capable of paying their short term debt They have 347 million in cash or cash equivalents They have plenty of capital expand and respond to challenges Revenue Break Down North America accounts for 94% of Under Armour’s Revenue 22% of net revenue is from Sports Authority and Dick’s Sporting Goods 76% apparel, 13% footwear, 9% accessories, and 2% licensing Women’s sales are roughly 30% of revenue and around 680 million Competitor Analysis Nike 1971 – Diversified distribution strategy Lululemon Athletica 1998 – Yoga-inspired athletic apparel Adidas 1924 – Largest sportswear manufacturer in Europe Women’s Athletic Apparel Market In 2013, in the US, sales of women’s activewear alone reached $11.5 billion, a 9 percent jump from 2012 In 2004, Nike increased its focus on the women’s market with the launch of its first female-targeted catalogue. Nike’s women’s training products, which generated $1.1 billion globally in 2013, was up 6 percent from 2012 and has helped the company to boost overall sales, particularly in North America. In 2004, Adidas kicked off its sportswear collaboration with Stella McCartney, which, ten years later, has grown into a full-fledged brand available at 790 points of sale with a product range aimed at surfers, runners, and practitioners of yoga Lululemon has been doubling women sales every two years, but the company has seen a decline in share prices by 17.55% due to the company’s management and quality control issues. --Kevin A. Plank Graphs Comparison Currently women’s apparel sales account for 30 percent of Under Armour’s business, up 18 percent from eight years ago, and outpacing the overall growth of the company. $680 million female sales for Under Armour, in 2013 $4 billion female sales for Nike, in 2013 Big Goal—2X Growth By 2016, the company goal is to reach $4 billion in total revenue, meaning women’s sales would come in around $1 billion by 2016. By the end of 2013, Under Armour got its revenue of $2.26 billion, and female sales reached to around 680 million Under Armour Marketing Campaings for female athletes Next step Jump over online social media, coming out to the real world, reaching out our customers through our events with our passion, design and relentless pursue of innovation Let them feel our passion, try our products and enjoy our great service Breast Cancer Awareness walks in the first weekend of October in four different cities. (New York, Los Angeles, Chicago, Houston ). The Walks Use Social Media to promote events. Giving out complementary Under Armour T-shirts. Registration fee of 15 dollars, participants are encouraged to donate more for the cause. Goal of 10,000 people per event. The Walks cont. Increases trial of our product to women. Each walker has an opportunity to buy our clothing at the walk as well as donate to the cause. 50% of all proceeds made will go to breast cancer research at the Breast Cancer Research Foundation (BCRF). Example of Giveaway Shirt We estimated that this would cost us around $500,000 How much will this cost? Permit Costs T-Shirts Staff, maintenance, food/drink, ect. Total 80,000 200,000 220,000 500,000 Main Purposes of the Breast Cancer Campaign In terms of Finance: to increase revenue generated through the sales of women's apparel In terms of Management: to further increase UA's female market share through market penetration In terms of Marketing: to improve UA's relationships with female consumers through promotion and building strong brand awareness Taking Advantage of Breast Cancer Awareness About 1 in 8 U.S. Women (almost 12%) is expected to develop invasive breast cancer at some point in life. About 39,620 American women were expected to die in 2013 from breast cancer. In 2013, there were more than 2.8 million women with a history of breast cancer in the U.S. Picking Breast Cancer as Main Theme of Event Fits perfectly into UA's pro-health, profitness brand image Helps the company achieve its “vital” mission of “volunteerism and serving others” Helps address the market segment the company is trying to penetrate Under Armour Currently has a line of Breast Cancer Awareness Apparel Specific Objectives of these Events Use the “public relations” promotion tool to build better relationships with various stakeholders, especially the media and the target audience (women) Communicate UA's emphasis on an active, healthy, and sports-oriented lifestyle Build up a stronger brand image in the eyes of women through both the physical display of brand symbols and delivering the company's values and beliefs Summary We see a Lucrative opportunity in pursuing the female market We want to continue to give back to communities and using the Breast Cancer event should prove to be effective We want Under Armour to continue to grow, expand, and Innovate for exisiting and new markets.