Grafton Elliot Nicole Liebman Owen Coale Salem Demirkon UNDER ARMOUR: NEW PRODUCT LINE
COMPANY PROFILE: BACKGROUND One of the leaders today in the sporting clothes and accessories industry. Based out of Baltimore, MD. Annual sales around $2.25 billion dollars and continuing to grow. Biggest competitor is Nike (Columbia, Adidas, Reebok) Annual revenue of around $25 billion
COMPANY PROFILE CONT… Under Armour offers a total of five product lines: Cold Gear Loose Gear Turf Gear All-Season Gear Heat Gear Firm focuses on innovative products Shirts that monitor heart rate Shoes that mimic the human spine Tape-replacing cleat
PRODUCT: UNDER ARMOUR SNOWBOARDING BOOTS AND HELMETS Cold gear boots Cold gear helmets (Over Armour by Under Armour)
MARKET POTENTIAL Number of US snowboarders in 2010= 6.1 million, compared to 4.3 million in Women make up 33% of snowboarding market Global sporting events such as 2014 Sochi Olympics present exponential marketing opportunities
COMPETITORS IN FUTURE MARKET Industry Leader(Snowboard Boots): Nike and Burton Snowboards Industry Leader(Helmets): Smith
PRICE Men's Snowboarding Boots: $ Women’s Snowboarding Boots: $ Men’s Over Armour Helmets: $ Women’s Over Armour Helmets: $
TARGET MARKET Users ages 12 to 24 Largest number of snowboarder range from 12 to 24 (56%) Also 25 to 44 years of age (25% of market) These consumers tend to have a stronger brand awareness of Under Armour as well Both male and female Income level of $65,000+, people who are more affluent
DISTRIBUTION METHOD Today, UA uses a selective distribution strategy (multi-channel design). Sell to both retail as well as directly to consumers Online Principal customers: Dick’s Sporting Goods, Eastbay, and Sports Authority.
Social Media Television Billboards Sporting Events In-store promo Celebrity Endorsements PROMOTION
Telephone interview 300 people called 50% incidence rate lowering us to people refused leaving us with 100 qualified and willing to respond SURVEY & RESULTS
Correlation Tables Descriptive Statistics Pivot Tables Bar Graphs Pie Charts Line Graphs SURVEY INTERPRETATION METHODS
Negative relationship between the likelihood to purchase the Under Armour product and the frequency of Snowboarding/Skiing Demonstrates that those who are involved in snow recreation activities are less likely to buy our newly developed product Why? Brand loyalty possessed by avid snowboarders and skiiers RESULTS
Quality shows to be the dominant trait for UA as demonstrated by the respondents. Shows that other aspects for the products need more focus such as safety and comfort. Safety is most likely rated lower due to UA’s lack of actual safety products SURVEY RESULTS
Price Rating had the largest variance illustrating that there were a lot of mixed results for how people perceived UA’s pricing for their products People of Asian decent are least likely to purchase our newly developed products People of Hispanic decent are most likely to purchase Most respondents answered “4” for likelihood indicating a strong interest in purchasing SURVEY RESULTS
GenderRace Apparel BrandType Likelihoo d Incom eCity Price Paid Helmet 1 Price Paid Boots 2 Frequency Snowboading/SkiQualityPrice RatingDurabilityAestheticsComfortSafety Gender 1 Race Apparel Brand Type Likelihood Income City Price Paid Helmet Price Paid Boots Frequency Snowboading/ Ski Quality Price Rating Durability Aesthetics Comfort Safety Correlation Table
No STRONG correlations Stronger than normal correlation between Apparel Brand & Likelihood to Purchase (positive) The table indicated that most people preferred Smith products City and type of item purchased(positive) City and consumer income(positive) Strongest correlation is the Apparel brand purchased and Type of Apparel Purchased Indicates that most people buying helmets prefer to go with a Smith product Most males buying boots lean towards a Burton Product Women favored the idea of buying boots from Under Armour CORRELATION TABLE RESULTS