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Under Armour

Transcript: Consumers who choose Under Armour over other sports apparel brands do so because the products help solve problems for athletes "We see this as a huge opportunity for our brand," and as a way to make inroads into the $26.4 billion U.S. footwear market, Plank said of the new shoes. Under Armour entered the footwear business in June 2006 Top Selling Women's UA Charge RC Storm Running Shoe Opportunities South African Consumer Profile Population 48,810,427 people (July 2012 est.) Approximately 90% of South Africa's economically active population is found in areas surrounding the cities: Johannesburg, Cape Town, Durban, Pretoria, and Port Elizabeth Represent the country's major areas of economic activity and consumer markets Introduction-Company Overview South Africans are very brand conscious Promotional “give-aways” are also very popular South Africans are becoming increasingly comfortable with making purchases online Avg. Salary $31,500 USD (251,685 ZAR ) South Africa is a middle-income, sophisticated market Brand Mission "To make all athletes better through passion, design and the relentless pursuit of innovation" Founded in 1996 by former University of Maryland football player Kevin Plank Provide the world with technically advanced products engineered with superior fabric construction, exclusive moisture management, and proven innovation Specializing in sport-specific garments, the company dresses its consumers from head to toe. A sophisticated banking sector; The recent strong performance of the rand versus the U.S. dollar; Infrastructure improvements; South Africa serves as a gateway to other countries in Southern Africa U.S- branded goods are known for their quality and continue to gain market share Why Under Armour? In 2011, Under Armour had a measly 6% of the company’s 1.5 billion dollars in revenue came from countries outside the U.S. Huge room for growth internationally. Recently hired new chief of international business. The best way to penetrate a foreign market is by sponsoring teams and endorsing players. Marketing campaign- Many successful campaigns in the U.S. Traditional marketing channels and Social Media The UA Charge RC Storm weighs less than 10 ounces A two-piece upper encourages your foot to flex like it does naturally. UA compression wraps your forefoot muscles in a squeeze that maximizes their strength and slows fatigue. UA HeatGear® fabric wipes away sweat to keep your feet dry, cool, and ultra-comfortable. Micro G® foam and a carbon fiber spring plate add a bounce to each step, converting downward heel-strike energy into forward energy. Inside, our 4D Foam™ The sockliner literally molds to your foot for a slip-free fit. Finishing off by strategically adding a breathable, highly water-resistant DWR finish. That means when you take it off-road, you don't need to fear the mud and splash. Factors Benefiting U.S. Large Emerging Market Stable Economy Huge Growth Potential Pro-Business Environment South Africa-SWOT Why South Africa? UA Shoe Types Olympics Works Cited UA Charge RC Running Shoe Storm UA Micro G® Running Shoe Split Split II Grade Composite Split Grade Strut Stealth UA Assert UA Reign Grade Coldblack Split Brand Awareness That means when you take it off-road, you don't need to fear the mud and splash! Rugby and Soccer Under Armour Moves Across the Globe into South Africa International Marketing Plan Opportunities for U.S in South Africa reflect the growth of its consumer base and its efforts to upgrade and develop its infrastructure to match and further fuel its economic growth Possible sponsorship of the South African Olympic Team Government purchasing is a significant factor in the South African economy Would have to work with the Government officials in order to come to an agreement Climate of South Africa = A subtropical location, moderated by ocean on three sides of the country and the altitude of the interior plateau, account for the warm temperate conditions so typical of South Africa It's a relatively dry country, with an average annual rainfall of about 464mm (compared to a world average of about 860mm). While the Western Cape gets most of its rainfall in winter, the rest of the country is generally a summer-rainfall region. Marketing Managers: Matt Leon, Elizabeth Desmond, and Adam Paterakis Currently the soccer clubs in South Africa are sponsored by Adidas, Nike, and Puma. Big cities like Johannesburg, Cape Town, and other have multiple club teams. There are 19 rugby club teams. Already presence outside the U.S. UA official sponsor for the Welsh Rugby Union and for the German soccer league club Hanover 96. Top Selling Men's UA Charge RC Storm Running Shoe Eventually we will look to expand from shoes to the other Under Armour apparel Such as Compression shirts, Polos, T-shirts etc.... South Africa Population Expansion of Other Apparel There is plenty of room for entry into South American Rugby and Soccer leagues. Under Armour looking for a team that fits the brand.

Under Armour

Transcript: HISTORY Started in 1995 by University of Maryland football player, Kevin Plank T-shirts soaked with sweat after games Used compression technology in new t-shirt design for athletes The 5 Ps of UA Product Performance apparel, footwear & accessories Moisture- wicking fabric HEATGEAR®, COLDGEAR®, ALLSEASONGEAR® Price Variety of price levels Classic compression gear: £20-40 Same prices for Men & Women COLDGEAR® more expensive Place Wholesale distribution to national, regional, independent & specialty retailers Product licensing to teams Direct to consumer channels: factory house, website, catalogs Mostly in North America, smaller European presence Promotion In-house marketing and promotions department Professional & collegiate athlete/ team sponsorship Sponsor events @ grassroots level: camps, clinics, leagues, tournaments Digital, broadcast, print media advertising Product placement People Personal selling in retail locations Concept shops: in-store fixtures & display Life size athlete mannequins The UA Customer MAJOR COMPETITORS Product Innovation & Technology Implementation: top premier league club product licensing (Manchester United, Arsenal) sponsor big name UK athletes (rugby & football) sponsor youth leagues, junior olympic teams run camps & clinics create brand loyalty at young age Implementation: London Olympics 2012 sponsorship World Cup sponsorship UA promotional stands outside sporting events & in stadiums water bottles, towels, t-shirts, hats Implementation: cater towards mild/ wet UK climate create customer loyalty programs customer surveys email lists: event invites, discounts, alerts, preview upcoming products Implementation: increase online advertising & social media invest in better website marketed to people other than athletes consult UK advertising agency Implementation: gain floor space in big UK retailers launch flagship store similar to Nike Town develop point of sale displays for educating UK customers Brett Carr Matt O'Neill Joelle Barr STAYING DRY COMPETITIVE ADVANTAGE Nike Performance & quality of product Selective distribution policies Focused gearline merchandising story Most Important British Customer Need.... UK Expand retail opportunities If you think Wilshere has potential, you should check out our new compression coreshorts High quality product Specialized: geared towards athletes/ performance Strong brand name Innovators Higher growth rate than Nike & Adidas Improve UK- specific advertising campaigns UA Meets The UK Gain more brand awareness with popular UK sports & fans Further develop brand image through strategic alliances with major global events Third party suppliers and manufacturers Weak economy (low consumer spending) Nike 10x size, Adidas 3x size (Air Jordan, Reebok) May not raise enough capital for expansion Negative publicity (Tiger Woods scandal, etc) Strengths youth to professional athletes No fabric patents High prices Weak global presence (majority in US) Limited product line depth/ breadth Brett Carr, Matt O'Neill, Joelle Barr SWOT USA RECOMMENDATION: COMPETITION fitness, athletics, training, outdoors UNDER ARMOUR RECOMMENDATION: Growing performance apparel market Untapped social media Young company Older/ limited competition (Nike & Adidas) Alternative sports & activities Climate of UK Active/ healthy lifestyle trend Opportunities Threats RECOMMENDATION: RECOMMENDATION: Adidas Active Men, Women & Children Build strong customer relationships Weaknesses RECOMMENDATION: Highly competitive market includes new & established brands UA does not own any fabric or process patents Compete for purchasing decisions & floor space

under armour

Transcript: Ads with prominent figures Develop more ads that are diverse Eco-friendly clothes Market diversification "Not just for professional athletes, but also for the athlete within you..." One of the best approaches Objective and Task Determines objectives Outlines the tasks Determines the promotion costs Current Sponsorship Future outlook Conclusion Objective Founded by Kevin Plank in 1996 grandmother's basement "Any Given Sunday" Bought a full page Ad: ESPN The Magazine Developing an IMC PROGRAM The start of Under Armour Under Armour Product Heatgear, coldgear, & allseasongear Distribution sales are generated through wholesale channels Revenue Only 6% of our net revenues were generated outside of North America North America accounted for 94% of their net sales IMC Programs discounts survey for consumer postive message •To promote the products of Under Armour in other sports besides football •Diverse target market Under Armour Mixture of promtional elements Advertising Public relations and promotions Retail and online Under Armour Mission Statement: "To make all athletes better through passion, science, and relentless pursuit of innovation" Thank you for your attention! Product Heatgear, coldgear, & allseasongear 12% footwear & 9% accerssories Distribution Majority of their sales are generated through wholesale channels Revenue North America accounted for 94% of their net sales Only 6% of their net revenues were generated outside of North America Design the Promotion Promotional Schedule Suggestions Budgeting Under Armour Planning Target audience Soccer, Basketball, & Baseball Spread to people that engage in active activities Expanding the product to females and not just males Promotion decision Process Planning Implementation Evaluation Areas already being promoted in: Super Bowl Proposed targets of interest Summer Olympics World Cup Prime time TV Product Placement

Under Armour

Transcript: "Make all athletes better" First slogan was inspired by teammate Eric Ogbogu Power in Pink Wounded Warrior Project UA Green Youth Movement Sandtown Habitat for Humanity Ronald McDonald House V Foundation Boomer Esiason Foundation Living Classroom Foundation Conservation Fund Heavily involved in Baltimore Community First sale was made to Georgia Tech University Big break: Jeff George (Raiders) was seen wearing UA undershirt By 1996, UA had 5 different product lines derived from same Microfiber 1998, UA became official supplier to NFL Europe 1999, UA signed Warner Brothers as a Client Supplied clothing for movies; The Replacements & Any Given Sunday 2005, UA supplied 100 divesion 1A football teams and 30 NFL teams 2006, a women's line, UA Metal, with 60 new products were created Being an Under Armour Employee Kevin Plank Revenue 2005-2010 Under Armour and the Community Locations How It Works Performance clothing ColdGear, HeatGear, and AllSeasonGear Sports Apparel Cross Training Shoes Athletic Accessories Mottos Ray Lewis (NFL) Anquan Boldin (NFL) Tom Brady (NFL) Brandon Jennings (NBA) Kemba Walker (NBA) Greivis Vasquez (NBA) Jose Reyes (MLB) Buster Posey (MLB) Tyler Seguin (NHL) Michael Phelps USA Bobsled Team Univeristy of Maryland and 26 other colleges 30 US High Schools Low pay/long hours Annual pay increase is minimal Not enough vacation time Young, inexperienced employees No advancement opportunities Pros Growth in Sports Market Notable Sponsorships History Challenges in the Past (1990s) Current Challenges Founder, CEO, & Chairman of the Board Recent News Under Armour 42% to $291.3 Million in 2nd quarter of 2011 Apparel Net Revenues Increased 36% to $204.8 Million Company Raises 2011 Net Revenues Guidance to $1.42 Billion to $1.44 Billion (+33% to +35%) Based US headquarters in Baltimore, MD International headquarters located in Amsterdam US Locations: Baltimore and Denver International Locations: Hong Kong, Toronto, and Guangzhou 1st retail store opened in 2007 (Annapolis, MD) Currently 85 "UA factory houses" in the US Main distributor of gear besides factory houses is Dick's Sporting Goods Founded by Kevin Plank in 1996 Idea of a new moisture wicking t-shirt High tech fabrics $20,000 of own money to start, $40,000 from credit, $250,000 small business loan. All used to start Under Amour Created first shirt in his grandmother's basement Given to friends to test out Went to Georgetown Prepatory High School in DC and dropped out Continued at Fork Union Military Academy University of Maryland Graduate (1996) Earned bachelor’s degree in business administration Created own business "Cupid's Valentine" while enrolled Self-proclaimed "sweatiest player" on the team Cons Products "Protect this House" "Click-Clack" "Athletes Run" "Do you hear footsteps? Or are they hearing yours?" History Continued Gwen Lemelin, Ryan Wheeler, Ryan Quesenberry Headquarter expansion New young athlete signings: Kemba Walker, Torrey Smith, and Cam Newton "Maryland Pride" jerseys/Nike imitators Misson: Primary competition with Nike Seconday competition with Adidas, Reebok, Converse, and New Balance Adding products to an already large inventory Coming up with new ideas in addition to ColdGear, HeatGear, and AllSeasonGear Other companies copying product ideas (Nike Dri-Fit) Other companies having monopolies (NFL/NHL & Reebok, NBA & Adidas, MLB & Majestic Constant change in the economy Growing company Great benefits (50% discounts, Health and Dental) Great atmosphere Young Company Very relaxed and stress-free environment Gym at Tide Point-promotes healthy work place Financing Finding investors Making a name for themselves in the market Competing against companies such as Adidas and Nike Finding vendors to sell products Locating resources for products Financing factories for productions Paying employees 2005-$281.1 Million 2006- $430.7 Million 2007-$606.6 Million 2008-$725.2 Million 2009-$856.4 Million 2010-$1.35 Billion Started with football cleats and training shoes Gradually added footwear and gear for: lacrosse, baseball, soccer, volleyball, hunting, skiing/snowboarding and beachwear Most recently added basketball shoes Polos Graphic tees Shirt works with the body Uses moisture wicking material Keeps the muscles warm Removes sweat from the skin Regulate body temperature and enhance performance Form fitting for maximized comfort Different seasonal gears to optimize performances in all environments Financial Growth

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