The Marketing Strategy Of Kevin Plank Essay

Under Armour’s rapid rise in the sports apparel industry under its founder and CEO Kevin Plank has surprised many. Plank has turned a company that he started in his grandmother’s basement into a powerful opposing force to Nike. The company’s competitive advantage comes through its focus on performance, and its products have been well received by athletes. The company currently enjoys a strong position as professional athletes and movie and video game creators clamor for its products.

Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of

a. Under Armour’s approach towards innovation is very unique, they think and plan out their projects thoroughly in order to create a one of a kind product that could be appealing to their consumers. The company has been extremely progressive throughout the years in order to stay ahead of the other competitive companies in their targeted industry. By constantly updating and coming up with different product lines, such as compression shirts and cleats, Under Armour is able to compete with other top athletic wear company’s in their market. If

Under Armour’s business strategy towards market segmentation is broken down into three different basis; Age, Gender, Uses. The first major market segmentation is by age, different age groups demand different products and Under Armour has produced certain merchandise to appeal to each generation. The second is Gender, both male and female respectively make up roughly 50% of the market equally.To appeal to females UA produces apparel in brighter colo, as a fashion forward athletic wear. While for males they they cater toward masculine vibe of tight fitting and resistant to wear and tear. Lastly, UA segments by the range of uses for their products.

Kevin Plank, the founder of Under Armour sports apparel line is a brilliant businessman. This former college football player started making work-out T-shirts from his grandmother’s basement; seventeen years later, the company is generating billions of dollars in revenue. Kevin Plank has created a brand that is more than just a fancy success story. The Under Armour’s mission in the sporting goods industry is to “make all athletes better through passion, design, and the relentless pursuit of innovation (Thompson, 2014, C-53).” This company is more than just a fancy success story. VIRO Analysis reported, Under Armour has been growing its revenue at a rate of +20% for 5 consecutive years, which is extremely impressive. The company’s financial

The also place a big emphasizes on the Under Armour logo and pushed for brand recognition. Under Armour became the official uniform sponsor for many colleges and sport teams. Under Armour’s strategy was to design and make varies styles of sports apparel with their moisture-wicking fabrics to satisfy the needs of athletes of all levels and all sports. Their growth strategy was to continue to expand on the products they offered their consumers. They wanted to create more products that encompassed several sports and activities. By doing this they would be targeting additional consumers with their new performance products. Part of the growth strategy was to expand sales in foreign countries, become a global competitor in sports apparel and strengthening the appeal of their products and brand

Under Armour’s (UA) current CEO Kevin Kant founded the company in 1996, which has witnessed the company grow in recent years to become a key player in the sporting gear and apparel industry. UA focuses its products and marketing efforts towards the youth, men, and women. The amount of resources that are allocated to each group of customers differs in that initially, UA primary source of revenue was from men even if youth and women products were also produced and sold. The specificity of UA’s products and their sporting activities selectivity can be attributed to UA’s limited global market share in the sporting gear and apparel industry. The company’s mission statement is inspiring, but in order to gain competitive advantages against larger

Under Armour faces intense competition such as Nike and Adidas. They play an important role in sportswear products, and have a strong market outside North America where Under Armour has a limited presence in international market (Trefis

Although the primary reason for sports and athletic wear was initially intended for athletes, many individuals whom do not pursue sports such as students, stay at home mothers, senior citizens, among many others, wear athletic wear daily and do not participate in sports or athletic activities. In conclusion, Under Armors mission statement is short, sweet, simple and to the point. Under Armor’s top competitors consist of a strong mix of new as well as established companies expanding into performance products such as footwear, apparel, work-out wear and sports accessories. Under Armor also competes against sporting goods stores such as Academy, Dicks and Cabela’s. In addition, it competes with companies that specialize in outdoor apparel such as Nike, Adidas, Columbia Sportswear and The

Under Armour is in the Textile- Apparel Clothing industry, in the consumer goods sector. The market has been driven by economic recovery, new product offerings and a

The strength of the competitive forces vary among the Under Armour, Nike, and The Adidas Group. The buyer bargaining power of Under Armour, is somewhat weak. Under Armour’s growth strategy entails, “Securing

The rapid success of Under Armour is not a mistake. The company dominates the performance apparel category. According to Founder Kevin Plank, “The mission of Under Armour is to make technically advanced products that are engineered with superior fabric construction, to provide proven innovation available to the masses-aimed at making athletes perform better” (UnderArmour.com). Under Armour uses many marketing initiatives including athlete endorsement, product placement, and popular culture which illustrates the success of Under Armour.

To understand the significance of Under Armour’s recent success, a brief history of the company is needed. It was founded in 1996 by Kevin Plank, a former football player from the University of Maryland. Under Armour’s original product was a shirt designed with synthetic fibers and wicking material to keep athletes cool and dry, even in the hottest weather. As the success of his t-shirts grew, Plank continued to innovate and developed many new products. Currently, Under Armour sells shoes, shirts, socks, backpacks, headbands, sports equipment, shorts and much more. It has traditionally played second-string to Nike, but with Curry’s support, Under Armour has surpassed its biggest competitor. Today, Under Armour is a very profitable company, specializing in sports apparel.

The management strategy set by Kevin Plank is based on innovation technology used in their material, and the great marketing development has given them an edge over other competitors. The company has the ability to offer anything and everything that has to do with fitness and athletics accessories. The reputation to make performance gear provided a competitive advantage. The SWOT analysis provides a clear summary of the strength, weaknesses, threats, and opportunities facing Under Armour. This analysis provides an in-depth combination of the internal and external environment.

Industry Needs/Target Market: Under Armour’s currently markets its product to people who have active lifestyles, into sports and all things physically active. Also, it is nationally (U.S.A) driven; only in recent years as it branched out internationally. The company needs to consider another segment of the market, which is those that are only interested in a more casual look. There is a need to shift from the traditional market of performance-based apparels to a more diverse product segment of sportswear. Under Armour’s narrow focus of only considering athletes has led to a loss of customers to its competitions such has Nike; that makes both athletic and casual wears.