Under Armour Case Study
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Transcript of Under Armour Case Study
Under ArmourThe Building of The House
Kristopher NoltCasey Doyle
Case Overview
The initial concept was simple: create a T-shirt that would be affordable, featherweight, moisture-wicking, helpful to every individual athlete’s body type and training environment, and would fit skin tight so it would lie flat under straps and pads (Shannon, 2003).
Saturated Market Develop Cost Effective
Marketing Techniques
Facts/Issues Co-Founders: Kevin Plank, Kip Fulks $310,000 Funding Humble Beginnings Successful Marketers
Decisions What Product would be created Where would their limited
resources be allocated Which Marketing Methods would
be the most effective
SWOT AnalysisStrengths
Innovative Product Owner
Weaknesses Limited Resources Small Amount of Capital
Opportunities Lack of performance apparel Development of useful
marketing methods
Threats Saturated Market
Courses of Action Under Armour could
allocate monetary resources and develop a traditional marketing plan consisting of TV/Radio advertisements, printed advertisements etc.
Under Armour could allocate their resources into developing a cutting edge product and find creative ways to market the product through cheap and effective techniques.
Evaluation Criteria
Capital Availability of
new Marketing Techniques
Athlete Endorsement
Word of
Mouth
Infusion of Pop Culture and
Buzz Marketing
Product Placem
ent
Decided to allocate resources to create a innovative, quality, and superior product
Start building brand with low cost marketing techniques
Decision
Athlete Endorsements
Product as Marketing Agent
Athletes are walking billboards
The utilization of athlete endorsers is a successful method of marketing because of the desire of young athletes to play sports and act as the professionals act (Stone, Joseph, & Joe, 2003).
Word Of Mouth Word of mouth marketing is one of
most impactful methods of marketing, influencing awareness, expectations, perceptions, attitudes, behavioral intentions, and actual purchase (Ha, 2004; Reichheld & Schefter, 2000; Roman & Cuestas, 2008; Ward & Lee, 2000).
“Two things we can guarantee with every (new product) launch is that we will deliver great innovation with the product and that the brand will deliver entirely new energy and buzz into whatever category it enters” – Steve Battista
Infusion of Pop Culture and Buzz Marketing
When brands are able to evoke the energy and emotion of what is cool at the moment, they are more likely to stand out in today’s cluttered marketplace (Mehta, 2009).
With the impact that media has on society, popular culture can create fashion trends and icons of individuals in a very short period of time (Kenyon, Woods, & Parsons, 2008).
Product Placement Product (or brand) placement
has grown significantly over the past decade; marketers now frequently use placements as the basis for multimillion dollar advertising and promotional campaigns (Karrh, Mcee, & Pardun, 2003).
With the increase in non-traditional media, such as video games and Tivo, traditional 30-second TV inventory was not as effective as it has been in the past (“IMG revolutionizes… Tivo,” 2007).
Consequences
Under Armour has exploded Company name has
become synonymous with the product
Expanded Product Line Afford traditional marketing
methods Team Sponsorships Licensing Deals Title Sponsorships
What We Learned Importance of creating a
quality product Benefits of utilizing cost
beneficial marketing techniques
If you believe in a product, others will as well
QUESTIONS?