brought to you by under armour - weebly
Post on 16-Oct-2021
5 Views
Preview:
TRANSCRIPT
U n d e r A r m o u r S n o w s t o r m | 1
Under Armour Snowstorm: Brought to you by Under
Armour
By: Gregory Baron, Seth Hidde,
Mason Thorbjornsen, Corinne Wright
U n d e r A r m o u r S n o w s t o r m | 2
Table of Contents
Executive Summary 4 Background 5 What is Under Armour Snowstorm? 6 Brand Equity Analysis 8 Organizational Mission 11 Organizational Vision 11 Organizational Goals 13 Market Assessment 15 Market Selection Decisions 18 SMART Objective 20 Marketing Mix Decisions 21 Advertising 26 Survey Results 27 Competitors 28 Sponsorships 29 Service Decisions 32 Risk Management 34 Trademark 36 Financial Analysis 37 Monitoring of Marketing Mix 39 Anticipated Response from Competitors 40 Appendix: Survey 41 Survey Results 42 Graphic I 43 Graphic II 44 Graphic III 45 Works Cited 46
U n d e r A r m o u r S n o w s t o r m | 3
December 2nd, 2013
Dear Matthew C. Mirchin,
The brand image of Under Armour is very important, it is essential that we enhance as
well bring positive recognition to this brand. This is why we bring to you Under Armour
Snowstorm. Under Armour Snowstorm is the new revolution in winter athletic wear. The
products that will be introduced in this new branch of the company will reach out to new markets
while at the same time making the brand that much stronger. This new era of Under Armour gear
will not only enhance our brand image but also increase our overall sales. Under Armour
Snowstorm we feel is the new wave in winter sports products, we thank you for your time and
hope that you are even more intrigued as you read through the rest of our proposal.
Sincerely,
The Public Relations Department.
U n d e r A r m o u r S n o w s t o r m | 4
Executive Summary
We at Under Armour are here to proudly announce our introduction of our new product
line. Snowstorm is our new line geared towards winter sport athletes. As UA is currently growing
at a rapid pace, we feel this is a perfect time to expand. We are looking to come out with new
products that will be directly fit the needs and wants of skiers and snowboarders. Our goal is to
reach into the market and be big time competitors in our first 5 years. For this to happen we are
going to be sponsoring both males and females who have reached the professional level in either
skiing or snowboarding. We also plan on sponsoring major events such as the Winter X Games
as well as the Winter Olympics.
As a company, we believe that sponsoring such mega events directly related to our target
market is a perfect way to get our brand in the customer’s eyes. To start, we are going to have
products such as board bags, helmets, custom boots for both skiing and snowboarding, bindings,
snow shoes, and goggles with new technology.
We feel that by being able to break into this market, UA will be able to expand even
further if the Snowstorm line as successful as we expect it to be. Since Under Armour is already
a house held name in a lot of middle to upper class families, it shouldn’t be too difficult to get
out name out there. Since Snowstorm is an UA line, we are hoping that loyal customers will want
to purchase are newest products that we are coming out with. Our brand image and loyalty is
very important to us and we feel like by coming out with this new line there is only benefits to
come for Under Armour.
U n d e r A r m o u r S n o w s t o r m | 5
Background
Kevin Plank, University of Maryland alumni founded Under Armour in 1996. He
originally started by driving up and down all of the east coast selling clothing out of his car. The
idea of Under Armour came when Plank was playing football at Maryland. He did not like the
feeling of his wet shirt he used to wear under his jersey. He realized that his compression shorts
would always stay dry throughout the day and then came up with his idea of making a shirt made
up of synthetic fabric.
Under Armour broke into the scene in 1999 when Warner Brothers asked them to make
outfits for the films Any Given Sunday and The Replacements. Later that year, Kevin Plank
bought an advertisement page for ESPN the Magazine. Under Armour was able to profit
$750,000 from this advertisement alone. In 2000, Under Armour was asked to be the main
uniform sponsor the XFL. A few years later, in 2003 when Under Armour launched its first
commercial, there new motto “Protect This House” quickly became well known saying
throughout America.
Today, Under Armour has quickly become a top competitor to companies such as NIKE,
Adidas, and Reebok. The company has now been expanded well beyond clothes and now makes
high end sporting goods and accessories. They are now the main sponsor of the Cal Ripken JR.
World Series as well as the NFL Combine. Today they sponsor some of the biggest athletes in
their sport. Some of these athletes include Tom Brady and Ray Lewis of the NFL, Bryce Harper
of the MLB, Michael Phelps, Lindsey Vonn a USA skier, and Canelo Àlvarez a Spanish boxer.
U n d e r A r m o u r S n o w s t o r m | 6
What is Under Armour Snowstorm?
When you think of the brand Under Armour many things come to mind. You think of
top-notch athletic wear, whether it is a pair of football gloves or a pair of high top cleats. With
Under Armour Snowstorm we are trying to enter the winter sportswear market and take it by
storm.
We have a new line of products that are going to truly revolutionize what people do out
on the slopes but at the same time stay true to the brand and represent Under Armour as the top
class athletic wear company that already exists. We plan on promoting our line of products to the
already existing winter sports market and showing our potential consumers how versatile and
innovative this new branch of Under Armour can be.
The name Under Armour Snowstorm speaks for itself, when you think of a snowstorm
there is high winds, icy conditions and you need gear that can withstand all of this. With the
products that will be introduced to the market there will never be hesitation ever again when
entering a Snowstorm. Our product line will tap in to the complete needs of all of our consumers.
Whether it is the need for a winter hat or something as advanced as our revolutionary snowboard
goggles. There is a product that taps into almost every need or want a consumer can have and we
feel like that is very important. At the end of the day no matter what your revenue is or how
many stores your product is in, the most important judgment tool is how responsive and satisfied
your consumers are.
We feel we have a product line that can really bring Under Armour to its absolute
potential. When looking at all of the competitors and potential markets Under Armour
U n d e r A r m o u r S n o w s t o r m | 7
Snowstorm seems like the answer. This branch off of the already successful Under Armour will
bring this entire brand to a level that the global market has never seen.
U n d e r A r m o u r S n o w s t o r m | 8
Brand Equity Analysis
Perceived Quality
Under Armour as a supplier of athletic apparel and equipment has already established
itself as a top competitor in the ever growing sport market. It is widely understood and accepted
that the Under Armour brand provides quality, durable, and comfortable performance-based
products to its consumers. As proof of this, in a 2008 survey of runners, over one-third of
respondents claimed that they purchased Under Armour brand footwear as a result of the brand’s
product quality and over sixty percent said they would indisputably purchase the brand again
(Kerrigan, 2008). This perceived quality of Under Armour footwear is vital to the success of the
ski/snowboard boots in the Snowstorm product line.
For apparel in the Snowstorm line, Under Armour ColdGear and HeatGear have already
provided examples of the ability that the brand’s products have to regulate body temperatures in
various weather conditions. We firmly believe that the perceived quality of and the customer
experience with the Under Armour brand is what will push our new product line to be successful.
Brand Awareness
When consumers within the target market can recognize and remember the brand name,
the organization has achieved brand awareness (Shank, 2009). Provided that Under Armour held
75% of the performance apparel market share in 2011, it can be assumed that brand awareness
has been achieved. Furthermore, Under Armour products are synonymous with the Under
Armour name which allows us to conclude that Under Armour has gone above and beyond brand
awareness. An example of this synonymy is that when consumers are referring to their base layer
apparel they do not say “base layer”, instead they simply refer to the apparel as “Under Armour”.
U n d e r A r m o u r S n o w s t o r m | 9
Nike has been able to achieve this level of brand awareness with their footwear but it seems that
Under Armour is the only brand to achieve this in the athletic apparel market. Additionally,
Under Armour consumers go further than referring to their products by the brand name. Perhaps
it was a strategy implemented by Under Armour or just luck, either way consumers often refer to
their products by the name of the product line such as ColdGear or HeatGear.
Provided with consumers who are currently overwhelmingly aware of the Under Armour
brand, the Snowstorm line is faced more with the challenge of product awareness rather than
brand awareness. As previously stated, the ColdGear products will greatly assist in this as they
are vastly similar to products within the Snowstorm line.
Brand Association
A large part of Under Armour’s success can be attributed to their early efforts of
associating themselves with sports and organizations that would increase the publicity of the
brand. We understand that this is not only important for the brand, but for each individual
product line as well. We plan to associate the Snowstorm line with professional winter athletes
such as Olympic and world champion downhill skier Lindsey Vonn, a prime candidate to be
sponsored by the Snowstorm line as she was recently featured in Under Armour’s “Under
Armour Makes You Better” campaign. The campaign focuses on current professional athletes
while conveying an underlying message of empowerment to youthful competitors. The current
associations that Under Armour has with winter sport athletes will provide the organization with
a platform that we can use to attract potential consumers within our desired target market.
Furthermore, the use of both male and female athletes will assist Under Armour in appealing to
both male and female consumers.
U n d e r A r m o u r S n o w s t o r m | 10
Additional brand association exists within both domestic and international relationships
that Under Armour has formed. In 2014, national winter-sport teams in the U.S. and Canada will
be outfitted with highly innovative and stylish Under Armour performance apparel and
equipment.
Brand Loyalty
According to Shank in Sports Marketing: A Strategic Perspective, brand loyalty exists
when consumers display a consistent preference or repeat purchase of one brand over all others.
Due to the market size and competition, brand loyalty can be difficult to achieve in the athletic
apparel market. However, Under Armour’s consistent product quality and overall brand
awareness provides the organization with a slight edge over some competitors.
The major brands that Under Armour competes with for brand loyalty are Nike, Adidas,
and Reebok. The Under Armour brand stands out because of the unique technology used in its
products. Under Armour products are notorious for their durability but also their capabilities. As
previously stated, the ColdGear and HeatGear lines are capable of regulating body temperature;
the Storm product line is known for being water-resistant, a technology that causes water to bead
up and dry on the apparel without absorbing into the material.
We feel strongly that the technologies being introduced with Snowstorm will reinforce
brand loyalty with our current customers as well as introduce potential customers to Under
Armour with the intent to make them loyal to the brand.
U n d e r A r m o u r S n o w s t o r m | 11
Under Armour Mission Statement
o To make all athletes better through passion, design and the relentless pursuit of
innovation
Under Armour Vision
o To empower athletes everywhere
Brand Values
o Respect the UGOP (Universal Guarantee Of Performance). Every product we
build must be better than what’s currently available on the market—best in class. Every
product must be field tested. And every product must make athletes better. That’s our
guarantee.
o Let’s Be Great.
§ Build great product, tell a great story, provide great service, and build a
great team.
o Integrity.
§ Without it we cannot be a team.
o No One Person is Bigger than the BRAND – TEAM.
§ No athlete either.
o Make One Dollar Spend Like Three.
§ We must be creative with the resources we have.
o Help Others.
§ Volunteerism and serving others are vital parts of our mission.
o Walk With a Purpose.1
1 All of the information on this page was obtained from www.ua.com
U n d e r A r m o u r S n o w s t o r m | 12
§ Everything we do is part of a deliberate, long-term strategy/vision. Know
where you’re going.
o Protect the UA Culture, But Embrace Change.
§ Evolve and innovate. We’re a different company every 6 months, and we
can’t use culture as an excuse to not change product, process, or people.
o Be Humble and Stay Hungry.
§ Nobody’s going to give us anything. We have to earn it every day.2
2 All of the information on this page was obtained from www.ua.com
U n d e r A r m o u r S n o w s t o r m | 13
Organizational Goals
As part of the Under Armour organization, our main goal is to create a new line that will
be attractive to a new target market. The new Snowstorm line is geared specifically for winter
athletes who enjoy skiing and snowboarding. This line will have many new products that Under
Armour is first going to be making. We at Under Armour have set a timetable and are hoping to
be top competitors within are first five years.
Since Under Armour is not a “new” company already, we feel that our goals are not out
of our reach. With are already big customer base; we are hoping that people will be happy to
make the switch over from one of our competitors such as Burton or Oakley. We believe
Snowstorm will be a very valuable line, because we are getting away from the typical UA lines
of clothes and coming out with gear and accessories for skiing and snowboarding.
Our goal of being a top competitor within 5 years, all starts with our advertising. We have
contacted top winter athletes as well as up and coming athletes. We have talked to them about
having Snowstorm being one of their individual sponsors. As well as sponsoring individual
athletes, we are going to sponsor mega events such as the Winter X Games and the Winter
Olympics. With the 2014 winter games right around the corner in Sochi, Russia, our organization
feels this is a perfect opportunity to break into the market. By using our athletes, tabling and
billboards, we feel it is a great way for fans at the event to get a look at our new line. Television
is going to be are biggest and most efficient way to get people at home to get a look at our
Snowstorm line.
We are hoping that the pre-existing brand image and loyalty, Snowstorm will have an
easier time breaking into the market rather than a new company building up from scratch. Under
U n d e r A r m o u r S n o w s t o r m | 14
Armour is currently on the list of the fastest growing companies so we feel our customer base is
already in existence and large enough for us to reach our goals. Our organization is hoping that
our customers and products can help us reach our goal quicker than five years and hopefully
make us the top of the competition in five years instead of just an average competitor.
U n d e r A r m o u r S n o w s t o r m | 15
Market Assessment
Market Research
The Snowstorm line is engineered for the ski and snowboard industry. Although ski and
snowboard participation rates decreased from 2011 to 2012, the accessory, equipment, and
apparel sales in the industry have remained relatively consistent since 2004 (Snow Sports
Fact Sheet, 2013). Reports show that sales in these three categories totaled over $3 billion
during the 2012 season, an increase of 3% from the previous year. Since our product relies
more on purchasing habits than participation, we remain confident that our product can thrive
in the current market.
SnowSports Industries America (SIA) reported that over one-third of the ski and
snowboard population lives in areas that were directly impacted by Hurricane Sandy in the
latter months of 2012 which directly impacted ski and snowboard sales in the South and
Northeast through November, decreasing the sales by an average of 25%. SIA’s reports also
indicated that ski and snowboard participants ages 25 to 35 have less time and discretionary
income to devote to skiing and snowboarding. However, despite these two issues, SIA
conducted a survey which revealed that almost 50% of surveyors’ buying habits remained
consistent to past seasons.
SWOT Analysis
In an effort to project the likelihood of our product being successful we have conducted a
SWOT analysis to outline the strengths, weaknesses, opportunities and threats that are
foreseeable. Included in the strengths of the Snowstorm line are brand awareness and
reputation. Given that Under Armour is a top brand, not necessarily in the ski and snowboard
U n d e r A r m o u r S n o w s t o r m | 16
market but in the overall apparel market, we believe that consumers will be more willing to
try our products as opposed to if we were a new company. Consumers throughout the entire
sport market are aware of the Under Armour brand and the perceived quality that comes with
it. Additionally, the uniqueness of our product is also a projected strength. Our apparel is
engineered to retain heat and regulate the body temperatures of our consumers and the
pairings of our equipment with the latest technological developments is unprecedented.
The weaknesses of our product include entering an already cramped market which
contains established leaders such as Oakley, The North Face, and Burton. Competing with
companies who have been at the top of their respected market for long periods of time could
make it difficult for Snowstorm to achieve its goal of becoming a top competitor within the
first five years of its existence. Additionally, Under Armour has little to no experience in the
snow sport industry which may make innovations and marketing strategies difficult to
compose.
Snowstorm has the opportunity to attract consumers who have not yet established brand
loyalty within the market. As many skiers and snowboarders are equipped with multiple
brands, Under Armour has the ability to create brand loyalty with these consumers. Also, due
to some of the Snowstorm equipment being unprecedented, consumers are highly likely to try
our products at least once, increasing the chance of brand loyalty being established between
us and the consumer.
The obvious threats in our situation are the established brands within the market and their
ability to match our products. With today’s technologies it does not take long for one
company to produce a similar product that has been engineered by a different company. With
U n d e r A r m o u r S n o w s t o r m | 17
the existing snow sport brands’ experience in the industry, they might be able to quickly
produce products that have better quality and performance than ours.
After conducting this analysis we concluded that Snowstorm could use its strengths and
opportunities to overcome any weaknesses or threats. Given that Under Armour is held in
such high regard from a consumer’s prospective and is considered a leader in performance
innovation, we believe that it is possible to become a top competitor in the snow sports
market no matter what challenges and obstacles we are faced with.
Competitive Analysis
As stated in the SWOT analysis, there are many brands that Snowstorm will have to
directly compete with. Due to the fact that Under Armour is not creating a brand new
product, it will have competition in all product areas including apparel, accessories, and
equipment. To be competitive we plan to launch products that are not new, but have new
technologies not found in current products within the market. We feel that it is important to
continue innovating and developing products into the future to ensure that our line remains
competitive.
Indirectly, our products must overcome the decreased participation in the ski and
snowboard industry. Although decreased participation does not influence the buying habits of
those who do participate, it could affect our overall sales. Reasons for decreased participation
include weather conditions and sports leagues that run year-round. There is no way to combat
what Mother Nature does, but it is possible to compete with other sports. Under Armour
should work with the ski and snowboard industry to promote the skiing and snowboarding as
both a sport and an activity which could help increase participation.
U n d e r A r m o u r S n o w s t o r m | 18
Market Selection Decisions
Segmentation & Target Marketing
Our marketing segments include geographic, demographic, and behavioral segmentation.
Our geographic segmentation will be molded by the market overview we have obtained from
SnowSports Industries America (SIA) which stated that New York, Pennsylvania, Texas,
Illinois, and California are the states with the most snowboarders. SIA also stated that almost
half of snowboards also alpine ski so we can target these states for both skiers and snowboarders.
The demographics in our target market vary significantly between skiing and
snowboarding. SIA concluded that 29% of male and 24% of female snowboarders are under the
age of 17 and 52% of alpine skiers are between the ages of 18 and 44. Similarly, both sports and
male-dominated with alpine skiing consisting of 61% males and snowboarding consisting of
65% male. However, both sports include a large amount of female participants, both totaling
more than 30% of their respective populations. The variety within the market will force us to be
appealing to both young and old, and male and female participants.
Furthermore, SIA’s research revealed that even in years when participation has declined,
consumers purchasing habits have remained constant. This means that lower participation will
not necessarily yield lower sales or revenue. This is important because it provides us with
consistency in buyer behavior, allowing our marketing strategies to be more effective.
Positioning
We will attempt to position Snowstorm in a way that will most positively impact the
line’s success. Under Armour is currently positioned as a leading brand in its existing markets
and we believe this reputation and position will carry into the snow sports market. By portraying
U n d e r A r m o u r S n o w s t o r m | 19
our product as a leader in innovation, quality, and performance we believe Snowstorm will thrive
and stimulate the success of Under Armour’s climb into a new market.
U n d e r A r m o u r S n o w s t o r m | 20
SMART Objective
We hope to break through the snow sports market with Under Armour Snowstorm with
the goal of becoming a top competitor in the market within the first five years. We believe this
objective meets the SMART requirements of being specific, measurable, attainable, realistic, and
time bound. We have targeted a specific market in which our product will be engineered for; we
have multiple established competitors in which we can use to measure our success; given the
resources that Under Armour has this objective is surely attainable; and giving Snowstorm five
years to establish itself as a leading product line makes our objective both realistic and time
bound.
U n d e r A r m o u r S n o w s t o r m | 21
Marketing Mix Decisions
Products: This new branch of Under Armour is focused on a few key products:
Go-Pro Infused Solar Faced Snowboarding Goggles
Our biggest project is this new revolutionary pair of snowboarding goggles. These
goggles are so unique due to the fact that they have solar faces built in which provides these
goggles with the ability to be charged when you are out on the slopes. What really makes these
goggles so different from that of their competition is the built in Go-Pro camera linked with an
interface that is over the eye of the rider. This built in Go-Pro allows the rider with the
convenience and ease of mind when they want to record their runs. Every rider likes to be able to
show their family and friends what their view looked like going down the mountain. No longer
will riders have to worry about attaching a bulky camera on their helmets or goggles. This built
in Go-Pro concept we feel like is going to change the game when it comes to snowboarding gear.
Custom Under Armour Snowboard Boots
When you think of Under Armour and any kind of footwear apparel it is natural to
automatically think of a training shoe or an athletic cleat. When it comes to the brand Under
Armour snowstorm we want the sole thought to be about snowboard boots. Under Armour
already has a bunch of products that closely resemble what a snowboard boot would look like
without the true functionality that particular boot would need. With our new products we plan to
change all of this. Our snowboard boots are going to have the lightweight high ankle support of
Under Armour latest Highlight Speed MC football cleat. White at the same time having the
durability and waterproof features of Under Armour most premier hunting boot. What set our
U n d e r A r m o u r S n o w s t o r m | 22
snow boot apart from our competitors are the reinforced ankle support and the snap in and out
bottoms that will click into our custom binding pads.
Innovative and new Snowstorm binding pads
These bindings are unique due to the fact that they are made specifically to fit our snow
boots. These binding pads are different from traditional bindings in the sense that they are just
pads that the snow boots click into and out of with enough security and flexibility to accomplish
all of your desires out on the slopes. We feel that binding pads are better than just normal
bindings because for one they provide an easier time when getting on and off the slopes and they
also make it that much easier for riders of all skill levels. Our goal at Under Armour is to always
satisfy the consumer and we feel with how easy these binding pads are to operate this idea is a no
brainer from a functionality standpoint.
Key Note
As a new branch of Under Armour we wanted to focus on just a few products in our
proposal. When it comes to actual winter sports performance apparel Under Armour is already
leading the market in that phase. We wanted to dive into an area of the winter sports market we
felt that we were lacking in and that why we developed the Snowstorm line. These three products
are all unique in nature and we feel as if these are the products that are going to truly put Under
Armour as a whole into a league of our own.
Price:
When determining the prices of these products a lot of factors were involved, we wanted
to have products that were affordable for our consumers but at the same time within a
U n d e r A r m o u r S n o w s t o r m | 23
competitive range with our competitors. We felt it was very important to keep a balance between
pleasing our customers as well as not selling our products short. When researching a price point
for our Go-Pro Infused Solar Faced Snowboarding Goggles we researched similar goggles
with similar capabilities. We found that these types of goggles ranged anywhere from $400 to
upwards of $600, so we felt comfortable setting our price for these goggles at $475. We felt that
this price is fair to the consumer and also puts us in a place to really take advantage of our
comfortable price point. As for our Custom Under Armour Snowboard Boots, setting a price
for these boots were a little more difficult since these boots correlate directly with our binding
pads we had to keep this in mind. We wanted to set the price for the boots and the pads in an
affordable range so that they could be purchased as a package deal if need be. For that reason we
set the price of the custom UA boots at $250 and the binding pads at $150. Together that is a
total of $400; this price combined still keeps us competitive with companies that are solely
pricing their boots at this price. We thought long and hard about these prices and a lot of research
went into these price point decisions. We are very comfortable and confident that these prices
will prove to be successful.
Place:
Under Armour as a brand is a global name throughout the world. This company is located
throughout countries such as Spain all the way to Australia. Under Armour Snowstorm is a
continuation of this already successful global name. Under Armour Snowstorm is a product line
that is obviously focused towards winter sports so as a company we plan on having these
products available in locations that would have the highest demand for these new winter sports
products. For example in the United States we would want these products readily available in
areas such as Colorado, Vermont, Central and Northern New York. In a global sense we would
U n d e r A r m o u r S n o w s t o r m | 24
want these products available in the northern countries such as Canada, Sweden, Norway and
Finland. All of these products will be available on the Under Armour website but it is very
important to have our products at stores that our consumers can get to. As for the actual stores
that our products will be located in, we will have them in every ski and snow house throughout
the U.S as well as having our products in stores like Dicks Sporting Goods, and as many small
business ski and snowboard stores that we can get our product out to.
Promotion:
In any promotional mix the goal is to inform, persuade and remind our target audiences.
In our first phase of promotions, would be to get our new product line Under Armour Snowstorm
out to the masses. The way in which we would go about doing this is through online advertising
on almost every athletic apparel and winter sports website out there. We would also send our
new products out to some of the premier riders in the world. Sending out our products for free to
top tier riders allows for us to one get feedback from the individuals who know their gear the
best and potentially if our products tests the way we know they should, then we will gain those
riders support and they will spread our new product line out by word of mouth to the entire
winter sports market. Among these ideas we also plan on holding expos and test runs with our
gear at ski resorts throughout the globe. Under Armour is already such a huge name in sports
apparel and to have the ability to work off of that existing name with our new line gives us that
much more opportunity to reach every facet of our target audience. Another way in which we
will promote our product line is through the usage of commercials. Our price points for these
products are extremely affordable and we want to let our consumers know that in our product
you are not only getting a great price but you are also getting the best product. We have already
put forth efforts to have riders such as Shaun White, Markus Keller, and Terje Haakonsen to
U n d e r A r m o u r S n o w s t o r m | 25
name a few who are featured in our commercials. All of these techniques will hopefully allow
Under Armour Snowstorm to receive the exposure it deserves.
Public Relations:
The perception of Under Armour Snowstorm is a product line that was created with our
consumers in mind. When we developed all of the concepts for our new products our consumers
were being included in every decision and every testing phase we had. It is very important to us
as a company that our consumers realize that we are trying to benefit all of the individuals that
buy our products in every way possible. The brand Under Armour believes in the idea that every
product put forth to the public should be tested and proven before any athlete gets their hands on
the products. This thought process is very important to us; we want to be able to say at the end of
the day that Under Armour Snowstorm thought of every little detail possible before even
deciding whether or not to go through with putting a product out on the market. The new
products we have introduced in our product line we feel are revolutionary. They were designed
with convenience and sophistication in mind and we feel like every athlete or even just an
everyday rider will benefit from our products.
U n d e r A r m o u r S n o w s t o r m | 26
Advertising
Advertising is a key part to any business, with a solid advertising plan in place any company
will greatly benefit from it. Since our mother company Under Armour already has a strong
advertising plan in place. We will meet with them to discuss their forms and methods of
advertising. With regards to their advertising plan, we will create one of our own that is very
similar to theirs. Yet, we will focus more on our select target market in hope of gaining new
business.
In addition to incorporating our brand in to Under Armour’s already existing advertising
plan, our main target market in terms of advertising is the 2014 Winter Olympics. As a team, we
feel that this will bring us the most recognition and will help create awareness for our brand. We
will advertise before, during and after the Olympic Games through various outlets, such as, TV
commercials, billboards, magazines, and through our sponsorships. From these different outlets
we will concentrate on the northern half of the United States. We also will hold an experiment
expo a week before we will release our products, so that potential customers can come in and
have a chance to see and experiment with our new products.
U n d e r A r m o u r S n o w s t o r m | 27
Survey Results
After handing out 40 surveys to all different types of people we have tallied up the results
to see what the public thought of our idea. As the graph below shows nearly everyone agreed
with us that Under Armour Snowstorm has the potential to be a very successful branch company.
Through this survey we have gained both support and encouragement. However, in
understanding that the sample size was quite small we still believe we can use this as a good tool
of reference.
U n d e r A r m o u r S n o w s t o r m | 28
Competitors
Competing with your competitors is a key part to succeeding in the retail industry. Some of our
main competitors will be Oakley, Burton, Giro, SPY, GoPro and DC. Although all of these
companies are very successful and well known, we hope to separate ourselves from the pack by
offering an assortment of high end products at a reasonable price. However, since that is a lot
easier said than done, we will also focus on providing our customers with a quality product that
has the Under Armour lifetime guarantee on it.
U n d e r A r m o u r S n o w s t o r m | 29
Sponsorships
Sponsorships are a great marketing technique, not only do they create awareness for your
product or service but they also connect your brand to the person or event you are sponsoring.
We understand that choosing the right person or event to sponsor is vital in creating a respected
and successful company. That’s not only because those you sponsors will become the face of
your brand, but also because the more well-known and respected that athlete or event is, the
more marketable they are. The events that we plan on sponsoring in the future are the Winter X
Games and the Winter Olympics. However, before doing so will try to strength out products
through individual sponsorships, the athletes that we have chosen are listed below.
Skiing:
Female: Lindsey Vonn- 2 Olympics medals, 5 World Championship medals
Male: Bode Miller- 5 Olympic medals, 5 World Championship medals
U n d e r A r m o u r S n o w s t o r m | 30
Snowboarding:
Female: Kelly Clark- 2 Olympic medals, 8 Winter X Games medals
Male: Danny Kass - 2 Olympic medals, 6 Winter X Games medals
U n d e r A r m o u r S n o w s t o r m | 31
U n d e r A r m o u r S n o w s t o r m | 32
Service Decisions
Since Under Armour is already an established company with many outlets of sales. We
will use that to our advantage in releasing our new Snowstorm product line. As a branch
company, our plan is to follow our mother company (Under Armour) to its retailers and sell our
new products there, where Under Armour already has a reputable and profitable means of sales.
In doing so we will provide our sellers with extravagant displays, to not only advertise for our
new products but to also stimulate sales for those individual stores. Although, we will only
provide our products to the retailers in sates that regularly receive a good amount of snow each
year. Below is map of the United States, its shows the annual show fall for the different regions
of the country. In correlation to this map, our goal is to strategically place out product line in the
snow filled regions of the country.
U n d e r A r m o u r S n o w s t o r m | 33
However, before we begin to sell our products we must familiarize the sellers with the
products. To maximize the sales we will put the retailers through a training seminar, which will
explain all of our new products in great detail and will show our sellers how to go about
supplying the customers with knowledgeable information on our products.
U n d e r A r m o u r S n o w s t o r m | 34
Risk Management
Risks can come from uncertainty in financial markets, project failures, legal liabilities,
credit risk, accidents, natural causes and disasters as well as a deliberate attack from an
adversary, or events of uncertain or unpredictable root-cause. When dealing with risks the usual
strategic process is to transfer the risk to another party, avoid the risk, reduce the negative effect
or probability of the risk, or sometimes accepting some or all of the potential or actual
consequences of a particular risk.
Our risk management plan will involve taking into account all of the potential problems
that a new branch can have on a pre-existing company. First off, since we are introducing new
products into the market we have to take into account the fact that our products are going to
endure some type of scrutiny from our competitors and critics of winter sports products. At the
same time we have to be aware that because our products are brand new the harsh reality could
mean that some of our products might have functional or aesthetic flaws. If this problem were to
come about we are confident in the fact that our product manufacturers will handle this problem
in a professional and very timely manner. Along with the risk of products critiques and flaws we
also have to worry about our competitors in the winter sports market. We are a global brand that
is known all over the world and due to the fact that we are introducing our new line of products
in the Under Armour Snowstorm branch, some of our competitors are going to try to do whatever
they can to compete with us in the winter sports markets. We might run into risks such as other
corporations copying our new concepts as well as adjusting their prices to face off with our
extremely affordable products. All of these scenarios are practical risks that we are already
planning to handle. The unfortunate truth about risks is sometimes you can’t plan for everything
that comes your way, as a precautionary measure we will have contingency plans set up in order
U n d e r A r m o u r S n o w s t o r m | 35
to attend to whatever risk we did not directly plan for. What these contingency plans will do is
allow our corporation the ability to have a list of steps to follow for risks that were not precisely
planned for. For example, if a competitor would decide to use our product in one of their
commercials and completely try and trash its credibility, not only would this situation be a legal
predicament but we would refer to one of our contingency plans to go through steps and decipher
what the most responsible and professional risk management plan would be necessary. Whether
it is complete avoidance of the situation or on the other hand accepts all of the scrutiny and
simply produces a more professional commercial in return. The fact of the matter is these
contingency plans allow for proper procedures when handling risks that we as a company were
not directly expecting.
U n d e r A r m o u r S n o w s t o r m | 36
Trademark
Our trademark will be the same trademark in which Under Armour has now, expect for a
minor adjustment. We will put our SnowStrom logo beneath the Under Armour logo, this will
only appear on our gear and nothing else Under Armour makes. From there, we will get our
SnowStorm logo legally registered to prevent any problems down the road. We also will be
displaying our new brand logo profoundly throughout our advertisement campaigns to generate
awareness for our up-and-coming product line. To better visualize our logo, the picture below is
in fact the logo we have chosen to represent our brand.
U n d e r A r m o u r S n o w s t o r m | 37
Financial Analysis
Sales and Income Projections
Creating projections for a company can be a very tricky process because you are never
really sure what’s going to happen. However, since we are already part of an organization we
will reference and follow Under Armour’s projections that we got from www.4-traders.com. As
shown in the timeline below our sales and income projections from now through 2017 should
increase at very steady rate. We believe this will happen because both past and current sale
numbers and also our reliable and growing customer base. We acknowledge that much of this
Annual Income Statement Data
Actuals in M $ Estimates in M $
Fiscal Period December 2010 2011 2012 2013 2014 2015
Sales 1 064 1 473 1 835 2 269 2 767 3 361
Operating income (EBITDA) 144 199 252 315 385 477
Operating profit (EBIT) 112 163 209 263 327 409
Pre-Tax Profit (EBT) - - 203 - - -
Net income 68,5 96,9 129 155 194 246
EPS ( $) 0,67 0,93 1,21 1,44 1,79 2,23
Dividend per Share ( $) - - - - - -
Yield - - - - - -
Announcement Date 01/27/2011
12:00pm
01/26/2012
12:00pm
01/31/2013
12:00pm - - -
U n d e r A r m o u r S n o w s t o r m | 38
success is due to the quality products that we offer. That’s why we will never cut corners when it
comes to providing our customers with top level performance gear.
http://www.4-traders.com/UNDER-ARMOUR-INC-39444/financials/
U n d e r A r m o u r S n o w s t o r m | 39
Monitoring of Marketing Mix
Since monitoring the marking mix is an important part of the evaluation and control of an
organization. We will proactively monitor our branch company to help prevent problems from
occurring. This will be done by first hiring good and dependable staff, and then we will make
sure to always keep an eye on all the components that make up the marketing mix to assure we
are performing at our most profitable level. From there we will do our best to stay up to date on
upcoming trends and products, so we do not fall behind the competition. We also will require
each manger to fill out a weekly evaluation of the progress within our branch. This will cover
things such as, expenses, profit, and revenue, demographic of sales, advertisement costs, and
much more. Once that is complete, we will review each of them and make any necessary
changes. This process should and will always keep us in a position to max profit and prevent
problems from within the marketing mix.
U n d e r A r m o u r S n o w s t o r m | 40
Anticipated Response from Competitors
We at Under Armour have thought of responses that we might receive from our
competitors. We understand that companies such as Burton, Oakley, DC, SPY, and GoPro
produces similar products to the ones we are going to be coming out with. What makes
Snowstorm unique is that we take similar products and combine them into one company. Some
of these companies have different target markets and we are trying to take everyone and bring
them together with Under Armour Snowstorm. Our biggest threat will probably be Oakley, since
they just came out with a similar type of goggle technology. What is going to separate us from
them is that in our goggles, we are implementing a new camera similar to the GoPro, which will
help us, stand out from the rest of the competition.
U n d e r A r m o u r S n o w s t o r m | 41
Survey
Please Circle One
1. In the winter season, do you go skiing or snowboarding?
Yes No
2. Do you think it is a good idea for Under Armour to start making winter sports gear?
Yes No
3. If they did, would you be interested in buying it?
Yes No
4. Do you think Under Armour can compete with the other brands that sell winter sports
gear?
Yes No
5. Would you say that Under Armour: Snowstorm has a good chance to thrive in its field
of sales?
Yes No
U n d e r A r m o u r S n o w s t o r m | 42
22
35
32 31 31
18 5 8 9 9 0
5
10
15
20
25
30
35
40
Ques6on 1 Ques6on 2 Ques6on 3 Ques6on 4 Ques6on 5
Survery Results Yes No
U n d e r A r m o u r S n o w s t o r m | 43
3
3 This graphic was obtained from SnowSports Industries America
U n d e r A r m o u r S n o w s t o r m | 44
4
4 This graphic was obtained from SnowSports Industries America
U n d e r A r m o u r S n o w s t o r m | 45
5
5 This graphic was obtained from SnowSports Industries America
top related