under armour marketing case study

Marketing & Branding

• 30 Sep 2020

What Can Be Learnt From Under Armour’s Marketing Strategy?

Effy Pafitis

This article is part of our ‘Marketing Strategies’ series, an in-depth look at how some of the world’s most successful companies promote their brand and their products.

Business leaders can often feel intimidated when entering competitive industries, fearing that their innovative products, clever marketing techniques and ambitious sales strategies will fall short of reaching the success of dominant market leaders. The inspirational upward trajectory of American sportswear brand Under Armour, however, provides an astonishing example of a brand that accomplished just that, offering valuable lessons to entrepreneurs seeking to achieve the same.

Founded in 1996, Under Armour set about realising its vision: "to inspire you with performance solutions you never knew you needed and can't imagine living without." It delivered on this promise to consumers by producing athletic apparel with new fabrics and designs geared towards comfort and convenience, positioning its products as "innovations built to perform." 

For the first years of its operation, the business focused on selling its signature moisture-wicking compression athletic tops. It then steadily incorporated new, original materials into its expanding apparel portfolio to better serve athletes' endurance and performance. These included patented creations, such as HeatGear, ColdGear, and AllSeasonGear materials, before moving into specialised sporting footwear, women's apparel, and more.

As a result, Under Armour quickly proved itself as a serious contender for retail giants Nike and Adidas, and is today the world's fourth-leading athletic apparel brand with  sales of $5.2bn  last year. In 2019, the company also  claimed a spot  among the world's top ten most valuable sporting brands, with a staggering brand value of $3.5bn.

So, how did a company that began in the basement of its founder’s grandmother reach such heady heights? We’ve taken a closer look at the company’s marketing approach to find out.

Under Armour's Marketing Strategy

Under Armour's marketing strategy has significantly contributed to its popularity among professional and amateur sportsmen and women. The company invested an  impressive $579m  in promotional techniques in 2019, focusing on impactful sporting partnerships, celebrity endorsements, as well as online and offline communications.

This year, Under Armour is looking to increase advertising spending to  as much as 12%  of its global revenue (roughly $632m), and has affirmed that its marketing mix will become even more varied in an effort to reinforce brand consideration and positioning. 

Most of the company's marketing efforts seek to foster a close community among consumers and wider sporting enthusiasts. Through its UA Community, Under Armour engages with audiences, sharing its corporate values, philanthropic initiatives, and ways in which buyers can get involved. This organic interaction goes a long way to earning buyers' respect, consideration, and positive brand perception, thereby influencing long-term loyalty .

This approach comes from the business' deep understanding of the care-abouts, motivations, and expectations of its primary customer base.

Customer Profile

Under Armour's US customers are  mostly male  (69% compared to female buyers) and aged between 18 and 24, suggesting a Generation Z-inspired target market. They are sporting amateurs, enthusiasts, or athletes, attracted to the brand not only by its performance-oriented products, but also its close alignment with their own morals and views.

These are captured in Under Armour's eight core team values, among which are: Stand for Equality, Stay True, and Think Beyond. They embody the company's commitment to promoting gender and race inclusivity, corporate transparency, and environmental sustainability .

Indeed, representation of these values is often incorporated into Under Armour's marketing campaigns and activities, passionately advocating for important sporting and social issues while also highlighting how the company addresses them itself.

Budding businesses can learn from this approach and use detailed market research not only to guide the delivery of promotional campaigns to target audiences, but also to delve deeper into the passions and expectations of consumers and align with them. This research may be conducted through a combination of activities , including focus groups, consumer interviews, in-store and online feedback forms, and more.

Marketing Mix

Under Armour adopts a variety of exciting marketing tactics to reach sport and fitness enthusiasts. Its messaging consistently focuses on reiterating the brand's mission that "Under Armour makes you better" through its performance-enhancing apparel, while campaign imagery captures the excitement of physical training and competition.

Here are some of the key ways in which Under Armour has successfully targeted consumers.

Key Sporting Partnerships

Early on, Under Armour founder Kevin Plank realised that striking partnerships with college, university and professional sports teams would be extremely helpful in promoting the brand's products to relevant new audiences. Following sizeable successes with college and NFL football teams, the company became the official supplier of the National Hockey League (NHL) in 2001, and has continued to sign similar deals ever since.

As well as sports organisations, Under Armour currently boasts multimillion-dollar agreements with a variety of sports teams, including in football, motor racing, baseball, basketball, rugby, and athletics. The brand  spent $75m  on sponsorships in 2016, with this figure continuing to increase since that time.

These agreements see teams don Under Armour apparel throughout training and competitions, as well as promote the brand's logo across their marketing and communication materials. For example, the company's deal with the Welsh national rugby team saw a series of large-scale advertisements incorporated into the aesthetic of the Principality Stadium in Cardiff, built around the slogan "Protect This House".

Celebrity Endorsement Deals

Under Armour also sponsors elite individual athletes, featuring them in blockbuster campaigns delivered online and offline to attract the attention of target consumer groups and drive relevant brand positioning.

These endorsement deals see celebrities star in campaign videos and photographs, wear the brand's apparel during sporting participation, as well as promote their collaboration with the brand across their social media accounts. Recent endorsers include actor and former wrestler Dwayne Johnson, swimmer Michael Phelps, and basketball legend Stephen Curry.

Although this expensive marketing method is sure to be out of the reach of most small businesses, scaled down influencer marketing can still represent an attractive alternative for entrepreneurs seeking to obtain similar promotional benefits.

Product Placement

Under Armour has also indulged in  product placement campaigns , most notably in 1999 when it agreed to supply apparel for the Oliver Stone-directed NFL satire,  Any Given Sunday . The movie, which starred Al Pacino and Jamie Foxx, featured the brand's activewear clothing in key scenes, driving both awareness and demand for the company's offerings.

This was the first of many embedded campaigns for Under Armour, who have since featured their logo and apparel highlights in numerous Hollywood productions, including  Dodgeball ,  Superbad ,  The Social Network  and  Warrior .

This marketing strategy sees the brand able to reach broad audiences, increasing brand awareness and influencing powerful brand associations in the minds of viewers.

Digital Communication

Among Under Armour's key team values is its objective to "Always Connect" with buyers. The brand aims to "live at the center (sic) of the consumer's life. All day, every day," claiming that its connection to the athletes it serves is what sets it apart. It fulfils this objective by executing targeted digital communications through an omnichannel approach, creating an engaging digital customer experience.

The company expertly adopts social media to consistently share relevant, exciting content, making sure it maintains a strong presence on all platforms where its target buyers invest their time and attention. Its online newsletter and digital newsroom also offer direct communications that work to maintain relationships with loyal buyers and contribute to valuable consumer retention.

Finally, Under Armour has made significant investments in mobile apps in recent years, with a view to engaging with existing and potential consumers on a daily basis. The acquisition of fitness apps MapMyRun, Endomondo, and MyFitnessPal has strengthened its digital ecosystem, and as a result of this strategic expansion, Under Armour now boasts the world's largest online fitness and wellness community. 

Under Armour has found success in promoting its innovative products through a combination of marketing methods. It reinvests large sums in costly sporting partnerships and celebrity endorsement deals to influence heightened brand consideration among target consumers. 

To balance this costly approach, Under Armour delivers inexpensive digital communications to share its values of equality, support and sustainability, while it also aims to continuously build on its UA Community to this end.

Key Campaign

In 2014, Under Armour believed that it was missing out on an important, profitable consumer market that it had not yet been able to broach: female athletic apparel buyers. To address this issue, the company launched a highly successful campaign entitled 'I Will What I Want'. 

The campaign's objectives were to modify the brand's image as overtly masculine, aggressive, and uninviting to women, and to earn the consideration of female athletes and sportswomen.

To initiate this change, it hired New York advertising agency Droga5 and, together, they delved deeper than ever before into the unique experiences of women in sport and fitness. As a result, it adjusted its messaging not only to make women feel included, but also empowered, valued and inspired.

Under Armour adopted two new brand ambassadors for the campaign: ballet dancer Misty Copeland, and model Gisele Bündchen. Campaign delivery methods included online video, TV ad spots and outdoor billboards, with the campaign's content focusing on the performance and training of female athletes. It pushed a message of overcoming adversity and disappointment to inspire viewers to drown out the noise around them and work to achieve their goals. To illustrate this, Bündchen's spot saw her train with a punching bag, while positive and negative online comments about the model's collaboration with the brand were illuminated across the gym. Copeland's video, meanwhile, saw her perform a routine to the background audio of a ballet school rejection letter being read aloud.

This moving content sparked many comments and conversations among female audiences, garnering significant media attention globally as a result. It affected positive change among its target viewers, improving female consumers' perception of Under Armour.; indeed, the brand noted a  900% increase  in its association with the term 'stylish', and a 730% increase in its link to the word 'empowering' following the campaign's launch. 

Ultimately, 'I Will What I Want' resulted in a 28% increase in sales of women's apparel, a 42% increase in traffic to the brand's website, 5bn worldwide media impressions, and several international advertising awards.

Under Armour has achieved what many companies aspire to; it has grown steadily from humble beginnings to an essential brand in its industry. It has offered fierce competition to longer-established athletic apparel giants, and carved out a portion of the market for itself. 

Yet although its innovative products form the foundation for its success, Under Armour's marketing strategy has been one of the core factors behind its global expansion, continuing to support the brand's transition to new markets and new consumer groups. The company's ability to reach and connect with customers, maintain a valuable community among buyers and sporting enthusiasts, and align with consumer needs and expectations have all been key pillars in Under Armour's promotional achievement.

Budding businesses can, therefore, learn from the brand's example, and adopt a variety of marketing techniques that all serve their company's mission and values, creating authentic, long-term relationships with consumers, and effectively attracting the consideration of new buyers.

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Under Armour Marketing Strategy 2024: A Case Study

Under Armour has firmly established itself as one of the leading athletic wear brands, competing head-to-head with industry giants like Nike and Adidas. Through their relentless focus on innovation and performance, Under Armour has positioned itself as a brand that delivers “innovations built to perform.”

In order to reach their target audience and maintain a competitive edge, Under Armour employs a comprehensive digital marketing approach. This includes allocating a significant portion of their resources towards advertisements, establishing a strong presence on social media platforms, and creating tailored content that resonates with their audience.

One of the key factors contributing to Under Armour’s success is their ability to connect with sports-loving individuals, with a specific emphasis on the Gen Z demographic. Approximately 69% of Under Armour’s customer base consists of males aged 18 to 24, revealing the brand’s appeal to this particular group.

Under Armour strategically enhances its visibility and recognition within the sporting community through partnerships with colleges, universities, professional sports teams, and top-level athletes. By aligning themselves with these esteemed entities, they solidify their brand presence and credibility in the world of sports.

An example of the impactful marketing campaigns executed by Under Armour is the ‘I Will What I Want’ campaign, launched in 2014. This campaign championed inclusiveness and celebrated women in sports, successfully aligning the brand with societal issues and building strong customer loyalty.

In addition to this, Under Armour has launched notable marketing campaigns such as ‘Rule Yourself’ (2016), ‘Unlike Any’ (2017), and ‘The Only Way Is Through’ (2020). Each of these campaigns leveraged athlete partnerships to convey messages of empowerment and authenticity.

Key Takeaways:

• Under Armour focuses on innovation and performance, positioning itself as “innovations built to perform”.
• Under Armour invests significantly in digital marketing, including ads and social media engagement, to reach their target audience .
• The brand appeals primarily to males aged 18 to 24, who have a passion for sports.
• Partnerships with colleges, universities, pro sports teams, and top-level athletes enhance Under Armour’s visibility and recognition within the sporting community.
• Noteworthy marketing campaigns such as ‘I Will What I Want’, ‘Rule Yourself’, ‘Unlike Any’, and ‘The Only Way Is Through’ showcase Under Armour’s commitment to empowerment and authenticity through athlete partnerships.

Brand Positioning: Innovations Built to Perform

At the heart of Under Armour’s brand positioning strategy lies their unwavering commitment to “innovations built to perform.” They have revolutionized the sports apparel industry with their signature HeatGear® and ColdGear® fabrics, which have set a new standard for comfort and functionality. Under Armour’s dedication to innovation is evident in their constant pursuit of advanced materials and technologies that enhance athletes’ performance.

Under Armour’s clothing is engineered to push the limits of what is possible in terms of comfort, convenience, and performance. They offer specialized gear, such as their HeatGear® line designed for hot weather and their ColdGear® line engineered to keep athletes warm in cold climates. Additionally, their AllSeasonGear is optimized to adapt to changing weather conditions, ensuring athletes can perform at their best, regardless of the environment.

With a strong emphasis on quality and performance, Under Armour attracts customers who prioritize high-quality athletic wear and equipment. Their target audience spans a wide range of individuals engaged in various sports and fitness activities. From professional athletes to casual enthusiasts, Under Armour caters to those who seek reliable and cutting-edge gear to support their active lifestyles.

Under Armour’s brand positioning as “innovations built to perform” resonates strongly with their target audience. It conveys the brand’s commitment to excellence and their continuous efforts to push boundaries in the sports apparel industry. By consistently delivering products that prioritize performance, comfort, and style, Under Armour has earned the trust and loyalty of athletes worldwide.

Digital Marketing Approach: Investing in Promotional Techniques

Under Armour understands the power of digital marketing and has made substantial investments in this area. In 2019 alone, the company invested an impressive $579 million in promotional techniques, showcasing their commitment to utilizing the digital landscape to engage with their audience.

Looking ahead, Under Armour has plans to increase their advertising spending to approximately $632 million, which equates to around 12% of their global revenue. This major investment highlights their dedication to leveraging digital platforms to enhance brand visibility and drive customer engagement.

An integral part of Under Armour’s digital marketing approach is their focus on social media marketing . The company strategically utilizes popular platforms such as Facebook, Instagram, Twitter, and YouTube to actively connect with their audience on a personal level.

Connecting with the Audience through Social Media Marketing

Under Armour shares engaging content, captivating campaign videos, and inspiring athlete stories on social media to foster a strong connection with their audience. By harnessing the power of storytelling and showcasing real-life examples of how their products enhance athletic performance, Under Armour effectively captures the attention and loyalty of their target market.

Furthermore, Under Armour develops targeted content that resonates with their audience, addressing their specific needs and desires. This approach helps athletes of all levels visualize how Under Armour’s products can elevate their performance and assist them in achieving their fitness goals.

One key aspect of Under Armour’s social media strategy is the creation of the UA Community. This platform serves as a hub where athletes and fitness enthusiasts can come together, share their successes and challenges, and interact with the brand and each other. The UA Community enables Under Armour to cultivate a sense of belonging and forge strong connections with their customers, further solidifying brand loyalty.

Revamping Digital Capabilities for Enhanced Engagement

To stay ahead in the competitive digital landscape, Under Armour recognizes the need for continuous improvement. They have plans to revamp their digital capabilities, including website features and social media marketing. By enhancing their online presence and user experience, Under Armour aims to facilitate seamless engagement with their target audience and create a differentiated brand experience.

Overall, Under Armour’s digital marketing approach revolves around investing in promotional techniques and leveraging social media marketing to connect deeply with their audience. Their emphasis on engaging content, targeted communication, and community building positions them as a frontrunner in the digital marketing arena, ensuring sustained growth and customer loyalty in the dynamic sports apparel industry.

Target Market Analysis: Gen Z-Inspired Sporting Enthusiasts

Under Armour’s target market has expanded beyond athletes to include Gen Z-inspired sporting enthusiasts. This demographic consists primarily of males aged 18-24, with a strong passion for sports and an appreciation for performance-oriented products.

Under Armour recognizes the unique characteristics of Gen Z athletes and tailors its marketing efforts to their preferences. This generation is tech-savvy and highly connected to internet-connected devices, making digital marketing and social media engagement crucial for reaching and connecting with them.

By understanding the values and interests of Gen Z, Under Armour has successfully tapped into wider consumer trends and shifted its target market to include those seeking activewear for everyday use. This strategic move has enabled the brand to capitalize on the growing popularity of athleisure and widen its consumer base.

Under Armour’s commitment to gender and race inclusivity, corporate transparency, and environmental sustainability aligns with the values of Gen Z athletes. This resonates well with young consumers who actively seek out brands that prioritize honesty, social responsibility, and environmental protection.

Under Armour’s target market analysis showcases their ability to adapt and connect with the evolving needs and preferences of Gen Z-inspired sporting enthusiasts. By leveraging their brand recognition, investment in research and development, and strategic marketing initiatives, Under Armour continues to capture this growing market segment and emerge as a top choice for young athletes.

Competitive Advantage: Key Sporting Partnerships and Celebrity Endorsements

Under Armour has managed to establish a strong competitive advantage in the sports apparel industry through its key sporting partnerships and celebrity endorsements. By collaborating with prestigious colleges, universities, and professional sports teams, the brand has gained significant visibility and trust among athletes and sports enthusiasts alike.

One of the key strategies employed by Under Armour is partnering with renowned athletes who embody the brand’s values of performance, excellence, and determination. Notably, basketball legend Stephen Curry has been a long-standing partner of Under Armour, playing a pivotal role in enhancing the brand’s appeal and market presence.

By having famous athletes wear their products and feature in their advertisements, Under Armour effectively strengthens its brand appeal and reputation. Consumers associate the brand with success, excellence, and athletic prowess, which further raises brand visibility and recognition.

The competitive advantage gained through these partnerships and endorsements extends beyond visibility and reputation. It also aligns the brand with excellence in sports and showcases the brand’s commitment to supporting athletes in achieving peak performance.

This strategy has proved to be highly effective in capturing the attention and loyalty of Under Armour’s target audience. The brand primarily targets individuals within the 18-35 age range who prioritize comfort, functionality, style, and performance-enhancing features in their athletic wear choices.

With its strategic sporting partnerships and celebrity endorsements, Under Armour has successfully established itself as a trusted and revered brand among athletes and sports enthusiasts, giving it a significant edge over its competitors in the market.

Marketing Campaigns: ‘I Will What I Want’ and Beyond

Under Armour has a history of launching successful marketing campaigns, and one of their most notable campaigns is ‘I Will What I Want.’ This campaign, featuring Misty Copeland and Gisele Bündchen, marked a significant increase in Under Armour’s overall revenue. The campaign challenged stereotypes and celebrated strong women in sports, resonating deeply with their audience.

Misty Copeland’s video in the campaign highlighted her inspiring ballet journey, emphasizing her determination to overcome stereotypes and traditional barriers in the ballet world. This powerful message empowered women and athletes around the world.

Gisele Bündchen’s ad focused on showcasing her athleticism and resilience amidst negative comments, challenging the perception of being solely a model. Her determination and commitment to breaking barriers aligned perfectly with Under Armour’s brand values.

The success of the ‘I Will What I Want’ campaign led Under Armour to follow up with another campaign called ‘Unlike Any,’ also featuring Misty Copeland. These campaigns were not only about selling products; they were about storytelling, empowerment, and addressing important societal issues.

Through their marketing campaigns, Under Armour has been able to connect deeply with their audience and foster loyalty to the brand. By focusing on storytelling and addressing societal issues, they have gone beyond traditional advertising methods, creating a strong emotional connection with their customers.

Social Media Marketing: Engaging Audiences and Building Community

Social media plays a crucial role in Under Armour’s marketing strategy . They actively engage with their audience on platforms like Facebook, Instagram, Twitter, and YouTube, leveraging the power of these platforms to connect with their fans and build a community. By utilizing social media wisely, Under Armour creates a sense of belonging and loyalty among their customers, while also strengthening their online presence.

Under Armour shares exciting content, campaign videos, and athlete stories on their social media channels to connect with their fans and foster a sense of community. By providing valuable and engaging content, they create a space where athletes and sports lovers can come together to share their experiences and support one another.

One example of how Under Armour uses social media to engage their audience is through their UA Community. This platform serves as a hub where individuals can interact, share successes, and inspire each other. Under Armour encourages active participation and promotes sharing and virtual events, providing a space for their customers to connect and feel a sense of belonging to the brand.

Through social media marketing, Under Armour doesn’t just promote their products; they foster a community of like-minded individuals who are passionate about sports and athleticism. By sharing content that resonates with their target audience, they strengthen their brand image and maintain a strong online presence.

Under Armour’s social media marketing efforts align with their target market, which consists primarily of young individuals, with a significant portion being male. They carefully select athletes and influencers who align with their values and have a strong influence in their respective sports, optimizing their exposure and impact on social media platforms.

Overall, Under Armour leverages social media platforms to create engaging content that fosters community engagement and user-generated content. By building a community and fostering a sense of belonging among their audience, Under Armour strengthens brand loyalty and elevates their brand image in the highly competitive athletic wear industry.

Benefits of Under Armour’s Social Media Marketing:

• Engages with the target audience on popular social media platforms.
• Shares exciting content, campaign videos, and athlete stories to connect with fans.
• Fosters a sense of community and belonging among customers.
• Promotes sharing and participation through the UA Community platform.
• Aligns social media marketing efforts with the target market’s demographics and interests.
• Strengthens brand loyalty and elevates brand image in the competitive athletic wear industry.

Branding Tactics: Key Sporting Partnerships and Product Placement

Under Armour employs strategic branding tactics to enhance its brand visibility and recognition. One of the key strategies is forming partnerships with sports teams and athletes, allowing the brand to reach a wider audience of sports enthusiasts. By collaborating with renowned athletes and sporting organizations, Under Armour establishes a strong association with excellence and performance, reinforcing its position in the athletic apparel industry.

Product placement is another effective tactic employed by Under Armour. The brand strategically places its products in media such as films and TV shows, ensuring maximum exposure to its target audience. Through these placements, Under Armour creates opportunities for consumers to see its products in action, increasing brand awareness and influencing consumer perception.

By combining key sporting partnerships and strategic product placement, Under Armour maximizes its brand exposure in various contexts. This branding approach reinforces the association between the Under Armour brand and high-performance sport, appealing to athletes and sports enthusiasts alike.

Under Armour History and Mission

Under Armour, founded in 1996 by Kevin Plank, has a rich history rooted in innovation and performance. Plank, a former college football player, recognized the need for athletic apparel that effectively wicked away sweat, leading him to create the iconic Under Armour HeatGear shirts. This marked the beginning of Under Armour’s journey to revolutionize the sportswear industry with its cutting-edge technology.

Through strategic partnerships and investments, Under Armour quickly gained traction and established itself as a leading athletic wear brand. Today, it competes with industry giants like Nike and Adidas, continually pushing the boundaries of what athletic apparel can achieve.

Central to Under Armour’s success is its relentless mission to make all athletes better. With a passion for design and innovation, Under Armour is committed to providing athletes with gear that enhances their performance and helps them reach their full potential.

Under Armour’s mission extends beyond individual performance. The company is dedicated to making a positive impact on the world and the communities it serves. Through initiatives like court refurbishments and youth development programs, Under Armour aims to impact 100,000 youth and renovate 20 safe places to play by 2025.

Key Milestones:

• 1996: Under Armour is founded by Kevin Plank, introducing the groundbreaking HeatGear shirts.
• 2003: Under Armour partners with the University of Maryland, marking the beginning of its successful collegiate partnerships.
• 2016: Under Armour celebrates Kelley O’Hara’s remarkable 15-year career in professional soccer, showcasing its commitment to supporting athletes throughout their journeys.
• 2018: Under Armour extends its partnership with the University of Maryland for an additional 12 years, reinforcing its dedication to collegiate athletics.
• 2024: Under Armour celebrates Pride with a campaign featuring Division 1 athletes from the LGBTQ+ community, demonstrating its commitment to inclusivity.

Under Armour’s history and mission have shaped the brand into a powerhouse in the sportswear industry. With a focus on relentless innovation and empowering athletes, Under Armour continues to push boundaries and inspire the next generation of sporting enthusiasts.

Target Market Segmentation and Differential Advantage

Under Armour’s success can be attributed to its strategic target market segmentation and its differential advantage in the athletic wear industry. To effectively reach their diverse range of consumers involved in physical fitness, Under Armour strategically segments its audience based on demographics such as age, geography, gender, and financial status. By understanding the unique needs and preferences of their target market, Under Armour can tailor their marketing efforts and product offerings to better cater to their customers.

One of Under Armour’s primary differential advantages lies in its innovative and performance-enhancing athletic wear. The brand has revolutionized the industry by developing signature fabrics such as HeatGear® and ColdGear®, which provide athletes with temperature-regulating garments for enhanced performance and comfort. This emphasis on innovation and cutting-edge technology sets Under Armour apart from its competitors.

By focusing on the needs of athletes and consistently delivering high-quality gear that effectively wicks away sweat, Under Armour has established itself as a top choice among customers who prioritize performance and functionality. This commitment to innovation and performance is a key factor that differentiates Under Armour from its competitors and contributes to the brand’s strong market presence.

Under Armour’s Market Segmentation

Under Armour’s target market segmentation allows the brand to effectively tailor its marketing strategies, product development, and customer experiences to different consumer groups. By understanding the unique preferences and needs of each segment, Under Armour can create targeted campaigns and develop products that resonate with their diverse customer base.

Overall, Under Armour’s target market segmentation and differential advantage in delivering innovative and performance-enhancing athletic wear have been instrumental in establishing the brand as a leader in the industry. With a deep understanding of their target market and a commitment to meeting the demands of athletes, Under Armour continues to differentiate itself and drive growth in the competitive athletic wear market.

Under Armour’s marketing strategy has been instrumental in establishing the brand as a top player in the athletic wear industry. By focusing on brand positioning, digital marketing, target market analysis, competitive advantage, marketing campaigns, social media marketing, branding tactics, and their history and mission, Under Armour has effectively connected with their audience, built brand loyalty, and differentiated themselves from competitors.

Moving forward, Under Armour will continue to invest in promotional techniques and expand their marketing mix to reinforce brand consideration and positioning. Their commitment to consumer centricity, product innovation, go-to-market strategies, end-to-end planning, and omni-channel excellence will ensure continued growth and success. Additionally, Under Armour’s partnerships with organizations like the University of Maryland and USA Football, as well as collaborations with LGBTQ+ athletes and the signing of notable talents, highlight their dedication to supporting sports and athletes at all levels.

Under Armour’s continuous focus on research and development, customization options, and technological expertise positions them at the forefront of the sportswear industry. Despite facing challenges during the COVID-19 pandemic and in consumer positioning, Under Armour’s loyal customer base and commitment to quality and customer satisfaction will drive their future success. By effectively engaging and communicating with consumers, Under Armour can strengthen brand connections and foster collaborative innovation, ultimately leading to further growth and an enhanced brand experience for their customers.

What is Under Armour’s brand positioning?

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Nina Sheridan is a seasoned author at Latterly.org, a blog renowned for its insightful exploration of the increasingly interconnected worlds of business, technology, and lifestyle. With a keen eye for the dynamic interplay between these sectors, Nina brings a wealth of knowledge and experience to her writing. Her expertise lies in dissecting complex topics and presenting them in an accessible, engaging manner that resonates with a diverse audience.

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Under Armour Marketing Strategies: Rebuilding a Brand

Kevin Plank didn’t take much to get the idea to create one of the world’s biggest sporting apparel brands . He set off on a mission to develop moisture-wicking athletic apparel for amateur and professional athletes. He eventually saw his brand beat out Adidas for the 2nd biggest sportswear brand in the world in 2014.  

In this article

So, what marketing strategy does Under Armour use?

Marketing strategy: solving an audience gap, under armour brand: less macho, more women., online shopping made easy: harnessing the power of digital to promote the under armour apparel, the largest online fitness community in the world, recognizing weaknesses – looking ahead, armour’s marketing strategy: more than just a clothing brand, the final whistle .

It’s no secret that Under Armour’s marketing strategies are one of the best in the game, with footwear sales at just over $5 billion dollars and having tripled its marketing investments in just ten years. But the company has now dropped to 4th position behind Puma, Adidas, and the forever kings of sportswear, Nike.

Let’s blow the whistle and start this game of analysis on Under Armour’s marketing strategies that propelled itself to where it once was and how it plans to regain its number 2 spot or even challenge its biggest rivals to the top in late 2021 and 2022.  

Under Armour has used sponsorships and endorsements like its biggest competitors with many athletes, celebrities, and sporting organizations. 

Some of its most notable endorsements include wrestler turned actor Dwayne ‘The Rock’ Johnson, swimmer Michael Phelps, basketball player Stephen Curry, and the USA boxing team. 

Dwayne Johnson, Steph Curry, and Michael Phelps for Under Armour

In 2014, Under Armour struggled to find the reason behind its initial downfall compared to its competitors. 

When looking at the prominent faces of their brand, their business leaders realized they were portraying a macho, aggressive, and uninviting feel to women through their marketing, which contributed to their loss of a potential target market.  

In light of this revelation and its pursuit of change, Under Armour created its ‘I Will What I Want’ campaign to adjust its brand image and cater to the new target market, female athletes and women fitness enthusiasts.  

The Under Armour marketing strategy did not take the project lightly and teamed up with the New York advertising agency Droga5 to build this campaign. Many businesses are now turning to online advertising agencies to help them maximize their efforts and appeal more to their new target audience.

The brand decided to incorporate American ballet dancer Misty Copeland and Brazilian model Gisele Bündchen as brand ambassadors and released their newest marketing video ads.

As a result of this campaign, according to  Starting Business , Under Armour saw:

• 5 billion worldwide media impressions
• 730% increase in the brand’s link with the word ’empowering’
• 900% increase in the brand’s association with the word ‘stylish’
• And their biggest goal of all – 

A 28% increase in sales of women apparel.  

The marketing strategy to expand their target market pool was a success, and Under Armour now has a female market comprising 31% of consumers.  

On top of their success in sales thanks to the ‘I Will What I Want’ campaign, Under Armour also saw an increase of 42% in website traffic that year, which has only gotten bigger in the past year due to the COVID-19 pandemic. 

In 2020, just like with many businesses worldwide, Under Armour saw the majority of its 15,000 retail stores have to shut down for many weeks and months, and the company saw itself having to rely solely on its online store.  

Before the pandemic, the brand planned to increase its marketing budget to 12% of its annual revenue . They wanted to focus on top-of-funnel activity , drop sports marketing contracts, and focus on the company branding.  

With no way of physically interacting with its clientele, the brand opted for an omnichannel approach to create one of the world’s largest online sporting communities.  

The goal was not to get people to buy products but instead for them to see the brand as a place of experience and a way to connect with others much beyond their sporting products.  

The way they did this was to create as many digital customer experiences as possible with their brand at the center of it. This creates a direct to consumer sales experience that is more appealing to digitally savvy customers.

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Not only was the brand using all of its social media platforms as a place for interaction, but Under Armour has now invested $710 million as part of its marketing budget in three fitness apps. Armour launched in MyFitnessPal, MapMyRun, and Endomondo. This competitive advantage resulted in a successful community of more than 120 million athletes . 

This makes Under Armour the largest online fitness and wellness community in the world of sportswear industry.  

With endless data on a large audience pool and leveraging digital channels, Under Armour’s distribution channels can create more online sales from specified products and services.  The brand consideration and efficient pricing strategy implemented led to their goal of becoming one of the leading sports apparel.

In what some could call the loneliest and most isolating year ever, 2020 called for unity and a sense of community in whichever way possible.  

In recent months and years, their strategy has proved to bring various sporting communities together. They kept this same rhythm throughout the pandemic via their mobile app endorsements. 

Although the brand had looked at increasing its marketing spending at the beginning of 2020, Under Armour spent $29 million less than the previous year, for a total of $550 million.  

In 2021, however, the Under Armour board has reconstructed its marketing strategy in an almost post-pandemic view to continue working on its initial plan to raise brand awareness . This proved to be one of the best Under Armour promotional strategies .

In recent years, its marketing strategies have failed to increase brand recognition along with its sales, which has now caused stagnation in the brand’s growth. They have not been able to prove to their audience what Patrick Frisk describes as “why they should consider Under Armour.”

In May of 2021, at the Q1 2021 Earnings Call between board members of Under Armour and the press, CEO Patrick Frisk mentioned that they are still “significantly under-penetrated from a brand awareness perspective” in various country markets such as China and Germany.  

To fix these issues, the company plans on letting go of long-term contracts such as endorsements and sponsorships and instead redirect the money to spend much more on upper-funnel marketing .  

Some of these ideas were already visible with their “The Only Way is Through” (that became the “Through This Together” campaign once the pandemic hit) in early 2020.  

Frisk  said  that the idea of this campaign was to deliver:

…a singular Under Armour voice with focused performers [and] in 2021, we are evolving these efforts to bring the ecosystem of how we engage and inspire athletes across both physical and digital experiences into even better alignment…

Additionally, this year, the company plans on accelerating marketing investments to drive awareness and increase conversions, which will, in turn, raise engagement and help the brand reach its final goal: drive consideration.

At the end of the day, Under Armour wants its marketing investments to be directed beyond its goods and more on the experience the brand offers to its audience, thus also redirecting the Under Armour branding strategy by broadening what its brand stands for.

Although Under Armour has struggled in the past few years to make it amongst the top 3 most famous athletic apparel companies in the world, they are most definitely making a significant shift in their marketing strategy in 2021 to carve their name back at the top.

Suppose your business could also benefit from some changes in its marketing strategy, especially in rebranding. In that case, you may want to consider working with one of our experienced branding agencies in the United States or elsewhere to help you out.

Anne-Gaëlle is a self described "third culture kid" who trained as a journalist before dedicating herself to all matters marketing. Finding digital marketing strategy particularly inspiring she loves it when it's integrated with her second passion: sport. Just ask her about Perrier's especially awesome adverts at Roland Garros!

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Marketing Strategies and Marketing Mix of Under Armour

Marketing Strategies and Marketing Mix of Under Armour 19 min read

Emerging from the humble basement of a former football player in 1996, Under Armour has transformed into a global powerhouse in the world of sports apparel. Driven by a relentless pursuit of innovation and a deep understanding of athletes’ needs, Under Armour has redefined the standards of performance wear, empowering athletes to push their limits and achieve their goals.

The Genesis of Under Armour: A Passion for Performance

Kevin Plank , a young football player at the University of Maryland, was the driving force behind Under Armour’s inception. Frustrated with the inadequacy of traditional cotton T-shirts that soaked up sweat and became heavy during intense training sessions, Plank sought to create a more functional and comfortable alternative.

In the basement of his grandmother’s house, Plank embarked on a journey of experimentation, utilizing moisture-wicking fabrics designed for sportswear to create a new type of undergarment. His creation, a form-fitting, sweat-absorbing shirt, marked the genesis of Under Armour.

A Revolutionary Approach to Performance Wear

Under Armour’s initial success was built on its groundbreaking fabric technology. The company’s signature HeatGear® and ColdGear® fabrics revolutionized the industry, providing athletes with garments that regulated temperature and enhanced performance in various conditions.

Plank’s vision extended beyond fabrics to encompass design and construction. Under Armour’s garments were meticulously crafted with compression technology, strategically placed seams, and ample movement for unrestricted activity. Every stitch, every rivet, every element of Under Armour’s apparel was thoughtfully designed to maximize performance and support athletes’ movements.

The Rise of a Global Sports Icon

Under Armour’s innovative approach quickly gained traction among athletes, from professional football players to weekend warriors. The brand’s performance-enhancing apparel resonated with those who demanded the best from their gear, propelling Under Armour into the forefront of the sports apparel industry.

Strategic partnerships with renowned athletes, such as basketball legend Stephen Curry , further amplified Under Armour’s visibility and appeal. The brand’s association with top performers reinforced its reputation as a leader in innovation and performance, attracting a loyal following among athletes and sports enthusiasts worldwide.

Under Armour: A Legacy of Innovation and Empowerment

Today, Under Armour stands as a testament to the power of innovation, dedication, and a deep understanding of athletes’ needs. Its legacy extends beyond apparel; the brand has become a cultural icon, synonymous with pushing boundaries and achieving the impossible.

Under Armour’s impact is not limited to the sports arena. The brand has expanded into various lifestyle categories, offering casual wear, footwear, and accessories that embody its core values of performance, innovation, and dedication to empowering individuals to reach their full potential.

Under Armour’s story is one of relentless pursuit, unwavering commitment to innovation, and a profound understanding of athletes’ needs. From its humble beginnings in a basement to its position as a global leader in sports apparel, Under Armour has consistently delivered products that empower athletes to push their limits and achieve their goals. The brand’s legacy continues to endure, as Under Armour remains a symbol of innovation, resilience, and the unwavering spirit of human performance.

Table of Contents

Marketing Strategy of Under Armour

Under Armour’s marketing strategy has evolved over the years, but the company’s primary focus has consistently been on creating a strong brand identity and building a loyal customer base through authentic and engaging storytelling. Here are some key components of Under Armour’s marketing strategy:

1. Brand Positioning

Brand positioning is a key marketing strategy for Under Armour that has established itself as a leader in the athleisure market. The brand’s positioning strategy is centered around its mission to empower athletes and help them perform at their best.

Under Armour’s brand positioning is built around several key pillars. Firstly, the brand is committed to providing cutting-edge technology and innovative products that help athletes improve their performance. This includes its signature Moisture-wicking fabric, which keeps athletes cool and dry during competition, as well as its Curry 6 basketball shoes , which feature advanced cushioning and support systems.

Secondly, Under Armour’s brand positioning emphasizes the importance of comfort and style . The brand’s products are designed to be both functional and fashionable, allowing athletes to look and feel great whether they’re on the field, in the gym, or on the street. This focus on comfort and style has helped Under Armour appeal to a broad range of consumers, from elite athletes to casual exercisers.

Thirdly, Under Armour’s brand positioning is centered around the idea of community and collaboration . The brand believes that athletes are stronger together, and it has created a platform called UA We Will Community to connect athletes and provide them with resources, support, and motivation. This platform allows athletes to share their experiences, advice, and insights with one another, creating a sense of camaraderie and shared purpose.

Finally, Under Armour’s brand positioning is built around the concept of “empowerment.” The brand believes that athletes should be empowered to take control of their own success, and it provides them with the tools and resources they need to achieve their goals. This includes its popular “I Will” campaign, which encourages athletes to set their sights on their dreams and work towards achieving them.

Overall, Under Armour’s brand positioning strategy is designed to create a powerful emotional connection with its target audience. By emphasizing innovation, comfort, style, community, and empowerment, the brand has established itself as a leader in the athleisure market and continues to inspire and motivate athletes around the world.

2. Target Audience

arget audience is a crucial aspect of Under Armour’s marketing strategy, as the brand aims to connect with consumers who share its passion for athletic performance and comfort. Under Armour’s target audience can be described as follows:

Demographic:

• Age : Under Armour’s primary target audience falls within the 18-35 age range , although the brand also caters to younger and older consumers who share its values.
• Gender : Both men and women are part of Under Armour’s target audience, with a focus on those who participate in sports and fitness activities.
• Income : Under Armour’s target audience generally has a higher disposable income, allowing them to invest in high-quality athletic wear and equipment.

Psychographic:

• Passion for athletic performanc e : Under Armour’s target audience is driven by a desire to perform at their best, whether they are professional athletes or casual exercisers. They seek out products that can enhance their performance and help them achieve their goals.
• Comfort-focused : Under Armour’s target audience prioritizes comfort and functionality in their athletic wear. They want clothing that feels good, fits well, and allows them to move freely.
• Style-conscious : While performance is paramount, Under Armour’s target audience also cares about looking good. They want clothing that is visually appealing and complements their personal style.
• Tech-savvy : Under Armour’s target audience is familiar with technology and seeks out products that incorporate advanced features, such as moisture-wicking fabrics, breathable mesh panels, and smart fabrics that track performance metrics.

Behavioral:

• Active lifestyle : Under Armour’s target audience leads active lifestyles, engaging in regular exercise, sports, and outdoor activities. They seek out products that can keep up with their busy schedules and varied interests.
• Health-conscious : Under Armour’s target audience prioritizes health and wellness, choosing products that promote physical activity, nutrition, and recovery.
• Loyal : Once Under Armour’s target audience finds a product that meets their expectations, they tend to become repeat customers, loyal to the brand and its offerings.

By understanding its target audience, Under Armour can tailor its marketing strategies to effectively reach and engage with its desired consumer base. This includes creating product lines that cater to specific sports and activities, developing marketing campaigns that resonate with its target audience’s values and interests, and partnering with influencers and ambassadors who embody the brand’s vision.

3. Product Innovation

Product innovation is a vital aspect of Under Armour’s marketing strategy. The brand continuously strives to develop new and improved products that meet the evolving needs of its target audience. To achieve this, Under Armour’s product development team works tirelessly to improve existing products and create new ones that address specific needs and concerns of athletes.

One notable example of Under Armour’s product innovation is its signature Moisture-wicking fabric . Introduced in the early 2000s, this technology revolutionized the sports apparel industry by keeping athletes cool and dry during competition. The fabric’s unique design pulls sweat away from the skin, allowing athletes to perform at their best without feeling weighed down by heavy, wet clothing.

Since the introduction of Moisture-wicking fabric, Under Armour has continued to iterate and improve upon this technology. The brand has introduced new versions with enhanced performance and comfort features, such as the addition of four-way stretch material for greater mobility and the integration of anti-microbial technology to prevent odor buildup.

In addition to its Moisture-wicking fabric, Under Armour has also developed a range of other innovative products, including its popular Curry 6 basketball shoes. These shoes feature advanced cushioning and support systems, along with a sleek, stylish design that appeals to both athletes and fashion-conscious consumers.

Another area where Under Armour has excelled in product innovation is in its wearable technology . The brand’s line of smartwatches, fitness trackers, and connected shoes allow athletes to track their performance, monitor their progress, and connect with a community of like-minded individuals. These devices provide valuable data and insights that help athletes optimize their training and achieve their goals.

Overall, Under Armour’s commitment to product innovation has been instrumental in the brand’s success. By continuously pushing the boundaries of what’s possible in sports apparel and technology, Under Armour has established itself as a leader in the industry and has earned the loyalty of millions of athletes around the world

4. Celebrity Endorsements and Sponsorships

Celebrity endorsements and sponsorships have played a significant role in Under Armour’s marketing strategy. The brand has partnered with numerous professional athletes across various sports disciplines, such as football, baseball, basketball, and tennis. These athletes act as brand ambassadors, promoting Under Armour’s products and helping to increase brand awareness and credibility among their fans and followers.

One of Under Armour’s most notable celebrity endorsements is its partnership with NBA star Stephen Curry . Curry, who is widely regarded as one of the greatest shooters in NBA history, has been a vocal advocate for Under Armour’s products, frequently praising their performance and comfort. His endorsement has helped to boost Under Armour’s reputation in the basketball world and beyond, and has contributed to the brand’s growing popularity among young athletes and aspiring basketball players.  Another notable endorsement is Tom Brady – New England Patriots quarterback Tom Brady has been an Under Armour athlete since 2007, appearing in numerous ad campaigns and promoting the brand’s products on and off the field.

In addition to its athlete endorsements, Under Armour has also sponsored several major sporting events, such as the NFL Scouting Combine and the NCAA Men’s Basketball Tournament . These sponsorships have provided the brand with valuable exposure and allowed it to connect with a large and engaged audience of sports fans. By aligning itself with prominent events and athletes, Under Armour has been able to reinforce its message of performance, innovation, and dedication to the athletic community.

Moreover, Under Armour has extended its celebrity endorsements beyond the realm of sports, partnering with actors, musicians, and other influential figures who embody the brand’s values and ethos . For example, the brand has collaborated with actor and producer Dwayne “The Rock” Johnson, who has promoted Under Armour’s products on his social media channels and appeared in several commercials and advertising campaigns. Similarly, Under Armour has worked with singer and entrepreneur Beyoncé, who has worn the brand’s clothes and shoes during her performances and has promoted them on her social media accounts.

Overall, Under Armour’s use of celebrity endorsements and sponsorships has proven to be a highly effective marketing strategy, helping the brand to expand its reach, build brand awareness, and establish itself as a leader in the athletic apparel industry. By partnering with talented and influential individuals who share its vision and values, Under Armour has been able to amplify its message and connect with a diverse and engaged audience of sports enthusiasts and young athletes.

5. Digital Marketing

Digital marketing is a key component of Under Armour’s overall marketing strategy. The company recognizes the importance of connecting with its target audience through digital channels, especially given the increasing amount of time people spend online. Under Armour’s digital marketing efforts aim to showcase its products in a compelling and authentic way, while also building brand awareness and driving sales.

One of the main pillars of Under Armour’s digital marketing strategy is social media marketing . The company maintains a strong presence on platforms such as Instagram, Facebook, Twitter, and YouTube, where it posts engaging content that highlights its products and brand story. Under Armour’s social media content often features athletes and influencers wearing its gear, performing impressive feats, and sharing their experiences with the brand’s products. This helps to create a sense of excitement and aspiration around the brand, as well as demonstrate the quality and performance of its products.

Another important aspect of Under Armour’s digital marketing strategy is search engine optimization (SEO) . The company optimizes its website and online content to rank high in search results for relevant keywords, such as “workout clothes,” “athletic wear,” and “performance gear.” This ensures that when people search for products like those offered by Under Armour, the brand’s website appears near the top of the search results, making it more likely that users will click through and make a purchase.

Email marketing is another key element of Under Armour’s digital marketing strategy . The company collects email addresses from customers and subscribers, and uses these addresses to send out regular newsletters and promotional emails. These emails typically feature special offers, discounts, and exclusive access to new products, as well as updates on the latest brand news and initiatives. Email marketing allows Under Armour to stay in touch with its audience, build customer loyalty, and encourage repeat purchases.

Finally, Under Armour uses data analytics to measure the effectiveness of its digital marketing efforts, and to inform future strategy. The company tracks metrics such as website traffic, social media engagement, email open rates, and conversion rates, to determine which tactics are working best and where there may be opportunities for improvement. This data-driven approach enables Under Armour to continually refine and optimize its digital marketing efforts, ensuring that the brand stays ahead of the curve and reaches its target audience in the most effective ways possible.

6. Connected Fitness and Technology

Connected fitness and technology have become integral components of Under Armour’s marketing strategy. The company has recognized the growing trend of consumers using technology to track their fitness goals and has incorporated this into its marketing efforts. Under Armour’s connected fitness platform, called UA Record , allows users to track their workouts, sleep patterns, nutrition, and other health-related metrics. Users can also connect with friends and join challenges to enhance their fitness journey.

Under Armour has also developed a suite of mobile apps that complement its connected fitness platform. The UA Training app provides users with personalized workouts based on their fitness level and goals, while the UA Coaching app offers virtual coaching and personalized feedback. Additionally, the UA Community app allows users to connect with other Under Armour enthusiasts and participate in discussions related to fitness and wellness.

To further enhance its connected fitness offerings, Under Armour has partnered with various technology companies, such as IBM and Salesforce. These partnerships enable Under Armour to leverage cutting-edge technologies like artificial intelligence, machine learning, and cloud computing to deliver personalized experiences to its customers. For example, Under Armour uses IBM Watson’s AI capabilities to analyze user data and provide tailored recommendations for improving physical performance.

Under Armour’s connected fitness and technology strategy would not be complete without mentioning its impact on the retail experience. The company’s brick-and-mortar stores now double as hubs for its connected fitness platform, offering shoppers the opportunity to test out its technology firsthand. Customers can try on Under Armour’s smart shoes, which track steps and distance traveled, or use the company’s interactive mirrors to see how they look in different outfits. These immersive experiences create a seamless blend of online and offline shopping, further solidifying Under Armour’s position as a forward-thinking brand.

7. Retail Presence

Retail presence is a vital component of Under Armour’s marketing strategy. The company has focused on creating a strong retail presence to increase brand visibility, improve customer engagement, and drive sales. Under Armour’s retail strategy involves a combination of owned and operated retail stores, shop-in-shops, and e-commerce platforms.

Owned and Operated Retail Stores: Under Armour operates a chain of owned and operated retail stores across the United States and internationally. The total number of owned stores are more than 400. These stores serve as flagship locations for the brand, offering a wide range of Under Armour products and immersive brand experiences. The stores are strategically located in high-traffic areas, such as malls, shopping centers, and urban districts, to maximize visibility and foot traffic.

Shop-in-Shops: In addition to owned and operated stores, Under Armour has established shop-in-shops within select department stores and specialty retailers. These shop-in-shops offer a curated selection of Under Armour products and provide an intimate brand experience for customers. By partnering with other retailers, Under Armour expands its reach and exposes its brand to new audiences.

E-Commerce Platforms: Under Armour has also invested heavily in e-commerce platforms to broaden its retail presence. The company operates multiple websites catering to various markets, including underarmour.com, ua.com, and uae.com. These sites offer a wide assortment of products, easy navigation, and streamlined checkout processes, making it convenient for customers to shop from anywhere in the world.

To create an engaging retail experience, Under Armour incorporates innovative technology and design elements into its stores. For instance, the company’s “ Fit Studio ” concept combines interactive displays, augmented reality, and 3D scanning to help customers find the perfect size and style. Additionally, Under Armour’s “Shoe Closet” feature allows customers to scan their feet and receive personalized shoe recommendations based on their foot shape and running style.

Under Armour adopts an omnichannel approach to ensure a seamless shopping experience across all touchpoints. Customers can browse products online and pick them up in-store, or order items in-store and have them delivered to their homes. This integrated approach eliminates barriers between physical and digital channels, allowing customers to interact with the brand in the way that suits them best.

8. Customer Loyalty Programs

Customer loyalty programs are a crucial marketing strategy for Under Armour, as they aim to retain existing customers and encourage repeat purchases. The company’s loyalty program, known as “UA Rewards,” offers customers exclusive benefits and rewards for their purchases, such as discounts, free shipping, and early access to new products. Members can earn points for every dollar spent, which can be redeemed for rewards such as gift cards, apparel, and accessories. The program also includes tiered levels, with higher levels offering additional perks such as personalized service, exclusive events, and VIP access to new product launches.

By offering incentives and recognition to loyal customers, Under Armour encourages repeat purchases and builds brand loyalty. The program also helps the company gather valuable customer data, which can be used to personalize marketing messages, improve product offerings, and enhance the overall customer experience. Furthermore, Under Armour’s loyalty program fosters a sense of community among its members, who can share their passion for the brand and connect with others through social media and in-store events. By investing in customer loyalty, Under Armour increases customer retention and drives long-term growth.

By implementing these strategies, Under Armour has successfully built a strong brand identity, engaged with its target audience, and driven sales growth over the years.

Marketing Mix of Under Armour

Let’s delve into a detailed analysis of each element of the marketing mix (4Ps) for Under Armour:

Under Armour is renowned for its innovative and technologically advanced sportswear . The product range spans across various athletic categories, including apparel, footwear, and accessories.

A key distinguishing feature is the incorporation of cutting-edge materials and design elements aimed at enhancing athletic performance. From moisture-wicking fabrics to compression gear, Under Armour continually pushes the boundaries of sportswear innovation.

The brand’s commitment to product development ensures that athletes and fitness enthusiasts have access to gear that not only meets their functional needs but also aligns with the brand’s identity of performance and innovation.

Under Armour employs a pricing strategy that positions it as a premium athletic brand . The emphasis on technological advancements and high-quality materials justifies a relatively higher price point. The brand recognizes the value it provides to consumers, emphasizing that the initial investment in Under Armour products pays off through durability, performance enhancement, and the overall quality associated with the brand.

Additionally, the tiered pricing strategy caters to a diverse consumer base, offering a range of products at different price levels to ensure accessibility while maintaining a premium image.

3. Place (Distribution)

Under Armour employs a multi-channel distribution strategy to ensure its products are widely accessible. The brand operates its own retail stores , providing a controlled and immersive brand experience. Additionally, strategic partnerships with third-party retailers and department stores extend the brand’s reach, making Under Armour products available in a variety of physical locations.

The brand’s e-commerce platform serves as a comprehensive and direct-to-consumer channel, offering convenience and accessibility for customers globally.

This omnichannel approach contributes to a seamless shopping experience, reinforcing Under Armour’s commitment to meeting customers wherever they choose to engage with the brand.

4. Promotion

Under Armour’s promotion strategy is multifaceted, encompassing various channels and tactics. The brand consistently invests in digital marketing , leveraging social media platforms, online advertising, and its official website to engage with its audience.

The use of influential athletes as brand ambassadors and the endorsement of high-profile celebrities strengthens the brand’s credibility and resonates with its target demographic.

Beyond traditional advertising, Under Armour engages in content marketing , telling compelling stories of athletes and showcasing the brand’s commitment to empowering individuals in their fitness journeys.

The brand’s involvement in community events , sponsorships of sports leagues, and grassroots initiatives reinforces its connection with its audience on both a personal and community level.

In summary, Under Armour’s marketing mix is characterized by a commitment to innovation in product development, a premium pricing strategy justified by quality and performance, a distribution strategy that combines company-owned stores with partnerships, and a comprehensive promotional approach that leverages digital channels, influential endorsements, and community engagement. These elements collectively contribute to Under Armour’s status as a leading brand in the competitive athletic apparel industry.

Also Read: Marketing Strategies and Marketing Mix of New Balance

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• Harvard Business School →
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• January 2018
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Under Armour

• Format: Print
• | Language: English
• | Pages: 27

About The Author

Rory M. McDonald

Related work.

• December 2019 (Revised April 2021)
• Faculty Research
• Under Armour  By: Rory McDonald and Matt Higgins

Under Armour Target Market Segmentation & Brand Analysis – Audience Demographics, Marketing Strategy & Competitors

Under Armour is the best kind of brand success story.

It began in the basement of founder Kevin Plank’s grandmother’s home in 1996. As a former special teams captain of the University of Maryland football team, Plank knew how it felt to be soaked in a sweaty shirt at the end of a game. So he devised the first sports shirts made of moisture-wicking fabric, so athletes could stay cool and dry. 

Imitation is the sincerest form of flattery. Big sportswear brands like Nike and Adidas soon launched their own moisture-wicking collections, but Under Armour got there first. 

By 2021, Under Armour was the 6th largest sports apparel brand in the world in terms of revenue. Publicly traded on the New York Stock Exchange, Under Armour today has more than 16,000 employees worldwide, with stores located in most parts of the world.

Since 2008, the company has seen continuous strong growth, from less than $1 billion annual revenue, to over $5.5 billion in 2021.

Source – Statista

The Under Armour journey goes from the world’s first moisture-wicking shirts in grandma’s basement to a global sports brand competing with the likes of Nike, Puma and lululemon. Let’s explore how Under Armour business strategy is the key to its success, and what the Under Armour target audience looks like. 

Want to learn more?

Who is under armour’s target market.

The Under Armour target market is mostly in the young adult to middle age segment, and includes both males and females .

The brand operates in North America, Europe, the Middle East, Africa, Asia and Latin America, although North America is the largest market . The typical Under Armour customer is health conscious, highly focused on fitness and sports performance, tech savvy, and in the middle to upper socio economic classes . An important segment of the target market of Under Armour is college-age athletes, who have the motivation, budget and desire to be loyal customers of the brand. 

Under Armour Target Market Segmentation

The best way to conduct an Under Armour market segmentation is by focusing on the target market from four perspectives: demographic, geographic, behavioral and psychographic.

Combined with an Under Armour brand analysis, this provides a comprehensive study of the success and strategy of one of the world’s most valuable sportswear brands. Let’s dive in.

Under Armour Demographic Segmentation

Under Armour demographics include men, women and kids . Though the brand previously performed most strongly among men, a women-centric marketing strategy in the past few years has attracted more female customers. 

While an Under Armour demographic segmentation was typically associated with the young adult market of ages 18 to 34, there has been a shift towards older consumer segments since around 2018. In that time, the youth segment among Under Armour’s target market has not increased, and younger customers have shown some preference towards Adidas, Lululemon and Nike. This has left much of Under Armour’s growth in the 35+ segment .

Under Armour Geographic Segmentation

Under Armour market share is largest by far is North America, which accounted for two-thirds of annual sales in 2021 .

Even so, the sales attributed to the North American market slightly dipped, while there was impressive growth of 14.2% in Asian markets, as well as a 5.1% sales increase in Europe .

In 2019, Asia overtook Europe as the brand’s second-biggest market. That year, Under Armour revenue in Asia was higher than Europe’s for the first time, generating $636 million in revenue, compared to $621 million in Europe.

In 2022, Under Armour had 164 stores in the US. The state with the highest number of stores was California (16), followed by Texas and Florida with 13 each . 

Under Armour Behavioral Segmentation

Under Armour apparel is the most popular product category among the brand’s target market, accounting for over two-thirds of sales. 

However, Under Armour is giving Nike and Adidas a run for their money in footwear sales, which grew significantly for the brand in recent years, reaching more than $1.2 billion in 2021.

During the pandemic, Under Armour’s online sales increased particularly among female customers . By the end of 2020, sales of women’s clothing on the brand’s webstore had jumped 214% . Girl’s sports apparel also showed growth online, up 46%.

Under Armour Psychographic Segmentation

The typical Under Armour customer is athletic, highly focused on health, and looking for innovative sports products to enhance their athletic performance .

The brand has a long history of operating various fitness apps, tapping into the digital-native character of the target audience. For example, Under Armour’s MapMyFitness app and MapMyRun app were specially created to help athletes and fitness enthusiasts stick to their routines and improve their training.

During the pandemic, there was a surge in popularity for running, and this is reflected in MapMyRun’s data. On March 26, 2020, which was in the early days of COVID, the app saw the largest usage ever, with the number of logged workouts increasing by 65% compared to the same time in the previous year.  

Who are Under Armour competitors?

The global sportswear market has a total value of over $300 billion , making it a very big pie for which several brands are in tight competition – most notably Nike and Adidas. In a comparison of Nike vs Adidas vs Under Armour market share, the loyalty of the Nike target market makes it the clear winner with 15%, followed by Adidas at around 8% . Puma comes in at 2% market share, while Under Armour is just slightly above at 2.46%. Although much smaller than the Nike or Adidas audience , the popularity of Under Armour still rates it as one of the most valuable sports brands in the world.

Although Nike is the world’s biggest sports brand, Under Armour is demonstrating stronger annual growth: 9.4% compared to Nike’s 6.5%. Similarly, Adidas is a behemoth in the sportswear industry, and Under Armour does not come close in terms of sheer revenue. However, the innovation of the Under Armour brand should not be underestimated – after all, the concept of moisture-wicking shirts is attributed to Under Armour, and not Nike or Adidas, which were both founded half a century earlier.

Under Armour leads in another way too: social engagement. For example, Under Armour and footwear brand Asics have a similar brand valuation (around $3 billion). A month-long sample of Twitter activity shows that Under Armour tweeted 5 times , compared to Asics’ 16 tweets. Even so, Under Armour got engagement on 100% of its tweets, compared to Asics, which had just 25% engagement.

In addition to Nike and Adidas, Under Armour competitors include other market leaders, such as VF Corporation, owner of several popular sports, footwear and outdoor apparel brands like Timberland, Vans, The North Face and Jansport.

What is Under Armour Marketing Strategy?

Under Armour marketing strategy has shifted in recent years to see more success in Direct-to-Consumer sales, both online and in its brand stores and factory house stores. While wholesale remains Under Armour’s biggest revenue source, DTC accounted for close to 40% of sales in 2021 .

The global sportswear market is incredibly competitive and lucrative. Therefore, the brand takes an aggressive approach to marketing and advertising. In the US, Under Armour invested close to $650 million in marketing spend in 2021, 18% more than the previous year. 

One of Under Armour’s most costly and effective strategies is collaborations and partnerships with high-profile athletes and celebrities. In 2016, the brand launched a cooperation with sports star and actor Dwayne “The Rock” Johnson. This continues till today, with the launch of the Black Adam Training Collection , timed for the release of Johnson’s new Black Adam movie. 

In addition, NBA star Stephen Curry is a long-time collaborator with Under Armour. The brand recently released its 10th shoe in 10 years to be sponsored by the star athlete .

In 2016, Under Armour partnered with UCLA in a record-breaking sportswear sponsorship valued at $280 million over 15 years, the largest of its kind in the history of the NCAA . This is another example of the brand’s enormous investment in collaborations as a key part of the Under Armour advertising strategy.

The company’s focus on the women’s market is longstanding. In 2014, Under Armour launched its “I will what I want” campaign. Beyond messaging, the appeal of the brand among female customers can be attributed to product innovation. Rather than just producing men’s sportswear in smaller sizes, Under Armour works to create unique, women-first sports apparel and associated products, and it is a big success. From January to May 2020, Under Armour sales of women’s products online increased by 77% in the US.

Although its main market is North America, Under Armour invests in expansion to overseas markets too. Under Armour launched in India in 2017, and has recently introduced a DTC platform in the region to boost e-commerce sales. It has also announced a collaboration with Indian Olympic gold-medalist Neeraj Chopra to enhance the brand’s local profile as part of its strategy to open more stores.

Product placements are a favored tactic for Under Armour marketing, and the brand’s products have featured in numerous hit movies and shows, including The Blind Side, The Dark Knight Rises, and House of Cards. 

A visual and interactive approach to Under Armour advertising is evident in the brand’s YouTube channel. The company produces a large amount of high quality video content around fitness training, performance and inspiration, often featuring high-profile and college athletes, as well as micro-influencers from the world of sport.

In terms of sustainability, Under Armour’s 2021 report underscores an ambitious approach that contributes positively to the brand image. The company aims to reduce single-use plastic in its packaging by 75% by 2025 . By 2030, Under Armour plans to have moved fully to the use of renewable energy in all its owned and operated facilities, and to achieve net-zero emissions by 2050. Beyond sports apparel and footwear, the big brand race is up and running in the area of sustainability too.

Want to discover data insights about your target audiences, in the sportswear niche or any of 500+ consumer categories and locations? Visit the Consumer Insights and Audiences Hub , where Start.io first-party data from its global mobile network can help you create better targeting and better results from your mobile campaigns.

Under Armour FAQs

What are under armour's goals.

Under Armour aims to be the sports apparel brand of choice to a highly motivated, health conscious and upwardly-mobile target market. By focusing on collaborations with high-profile athletes, Under Armour maintains an image as a leading and exclusive brand in sports performance and excellence.

What is Under Armour's competitive advantage?

Under Armour’s competitive advantage comes from its strong focus on product innovation. The company was the first in the world to develop and market moisture-wicking fabric for sports shirts. Big brands like Nike and Adidas followed suit.

In addition, Under Armour has high potential to expand into overseas markets outside of North America, and is investing in its DTC strategy to boost online sales across regions.

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Under Armour: Creating and Growing a New Consumer Brand

Under Armour: Creating and Growing a New Consumer Brand ^ KE1051

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Publication Date: March 28, 2018

Source: Kellogg School of Management

The case traces the development of the Under Armour (UA) brand, product, and market growth under CEO and founder Kevin Plank from its inception in 1996 through 2016. UA provides a cohesive case study of how to launch and sustain a consumer brand even in the face of its third-party manufacturing approach, which gives its apparel no patentable design or fabric technologies. The case uses UA's brand and advertising development as a backdrop for the current pivotal issue of how to target women to sustain growth. UA's stated goal is to build a $1.9 billion women's business by 2019. In laying out UA's growth and competitive moves, the case lets students analyze broadcast, social media, and other digital advertising campaigns in view of the company's brand development and strategic targeting. The case also highlights the importance of leveraging brand heritage and historical differentiation while respecting key nuances when extending into new markets (i.e., moving from a predominantly male-driven audience to female). It also allows an exploration of how to use consumer insight and broader cultural attitudes and trends to support extending a position into new markets.

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Marketing Case Analysis: Under Armour Changing Consumer Culture First Year Seminar

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Madeeha Kanwal

Strategy is about the most crucial and key issues for the future of organizations. Strategy is also important to explore several strategic options, investigating each one carefully before making strategic choices. The study incorporates a rigorous and systematic effort to uncover the strategies and its impact on the company's performance by analysing case studies, articles and the annual report of Nike Inc. and Adidas Inc. The study attempts to find out the relevance of the strategies adopted by these companies, which are globally successful athletic apparel companies in the context of Bahrain. The findings of the study highlight Nike's strategies which focus on innovation and emphasis on its research and development department, provision of premium pricing for its customers, broad differentiation strategy, market Segmentation Strategy and Closed-Loop strategy. The Adidas strategies focus on the broad differentiation, innovation, trying to produce new products, services and processes in order to cope up with the competition. It embraces a multi-brand strategy, emphasis on expanding activities in the emerging markets, continuously improving infrastructure, processes and systems, foster a culture of challenging convention and embracing change, foster a corporate culture of performance, passion, integrity and diversity. These strategies coupled with its resources and unique capabilities form the basis of sustainable competitive advantage for both the companies. INTRODUCTION: The strategy is a path towards achieving the optimum goals of individuals, groups and organizations. In addition, it leads to a best use of companies' available resources and it also guides the company to stay in a business successfully and continuous improvements for its processes. The definition of strategy could be differ from one author to another, but the most common definition is that the strategy is long term plans and approaches towards the intended visions and objectives. It is a general framework that specified the organizations' plans, policies and approaches to meets its objectives, goals and end results. The way an organization used to shape its strategies could be differentiate from other organizations in order to make its products unique and remarkable. Globally, companies formulate their strategies based on their visions and reaching the satisfaction of customer's needs, requirements and expectations. Subsequently, they use those strategies as a baseline to compare their actual performance with planned ones, to evaluate the end results and ensuring the continuing organizational excellence. There are many kinds of strategies that are pursued by the companies; Such as cost leadership, differentiation and the focus strategies (Porter, 1985), services strategies, growth strategies. Based on the goals, the companies form those strategies and they rank them upon the priorities. It is more than important for any organization to put strategies and not any strategies; the correct strategies which are formulated after a long time of studying and after numerous number of brainstorming among the top management members. Therefore, those strategies then to be implemented by converting the organization's plans and policies into real actions through the best use of available resources such as: human resources, budgets and technological advance; in order to enhance the organization's performance, productivity and sustainability.

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Please note you do not have access to teaching notes, under armour: creating and growing a new consumer brand.

Publication date: 28 March 2018

Teaching notes

The case traces the development of the Under Armour (UA) brand, product, and market growth under CEO and founder Kevin Plank from its inception in 1996 through 2016. UA provides a cohesive case study of how to launch and sustain a consumer brand even in the face of its third-party manufacturing approach, which gives its apparel no patentable design or fabric technologies. The case uses UA's brand and advertising development as a backdrop for the current pivotal issue of how to target women to sustain growth. UA's stated goal is to build a $1.9 billion women's business by 2019.

In laying out UA's growth and competitive moves, the case lets students analyze broadcast, social media, and other digital advertising campaigns in view of the company's brand development and strategic targeting. The case also highlights the importance of leveraging brand heritage and historical differentiation while respecting key nuances when extending into new markets (i.e., moving from a predominantly male-driven audience to female). It also allows an exploration of how to use consumer insight and broader cultural attitudes and trends to support extending a position into new markets.

• Advertising
• Campaign Analysis
• Consumer Marketing
• Growth Strategy
• Marketing Communications
• Marketing Strategy
• Positioning
• Product Development
• Product Management
• Social Media

Sternthal, B. and Malaviya, P. (2018), "Under Armour: Creating and Growing a New Consumer Brand", . https://doi.org/10.1108/case.kellogg.2021.000056

Kellogg School of Management

Copyright © 2018, The Kellogg School of Management at Northwestern University

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Under Armour Company’s Strategic Challenges Case Study

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Introduction

Under Armour is one of the many companies that have seen its inception and growth through athletic events. Under Armour found its inception with the sole aim to improve the athletes’ performance by promoting the participation conditions of the athletes in all weather conditions. The aim was achieved through innovative measures of tailor-made athletic products of various athletic events inform of apparel, footwear, and accessories to promote the body conditions and enhance performance. These tailored products are an alternative to the old athletic gears. They include various products for male and female, old and youth athletes, and all end users involved in sporting and recreational activities. The overall activities involve designing branded products with the company’s logo, marketing, distribution, and athletic wear to various sports individuals and organizations.

Marketing activities include sponsorship agreements with colleges and professional sports institutions to support a sporting event and sell the athletic garments to individual athletes and team managers. This marketing approach promotes product and brand awareness on field sports audiences and new global markets through television coverage, enhancing market penetration and expansion. Individual athletes’ sponsorship poses a great challenge to the company’s financial planning and budgeting as performance-based agreements. However, several other foreseen challenges hinder the company’s expansion that includes the famous Brexit affecting the European countries as new policies will be put in place to regulate business activities plus entrance, expansion, and tax levy. The competitive edge posed by other companies providing competing products with bigger market share and financial strength that include Nike and Addidas adds to expansion challenges affecting Under Armour. Despite these challenges, the foreign market remains one of the unexploited markets that gives great hope for exploiting and expanding market share.

Strategic Issue

Under Armour enjoys the identical brand recognition of its athletic garments locally in North America and gaining gradual penetration to Japan, China, and European countries. The objective to earn over $4 billion from the sale of the company’s product is the chief strength for the company’s growth with the current localized market share of over 90% of sales in North America alone. The company’s revenue position of over $1,834,921 provides financial strength to support marketing, brand, and product promotion in existing and new markets. Moreover, distribution channels in the form of factory outlets, company websites, and specialty stores for the diverse sports and recreational activities garments in different market segments bolster its revenue and market share. Additionally, licensing agreements with other firms and advertisements through television programs, catalogs, online and social media promote consumer demand, expand target market segments, and increase revenue income.

Various challenges hinder the growth and expansion of the Under Armour. Competition from established market-leading companies such as Nike and Adidas is a threat to the company’s expansion and market penetration. The extra financial cost that cuts into the net revenue is required to market and advertise the products and company brand, including sponsorship programs to different individual athletes, sports organizations, and sporting events. Sponsoring individual athletes’ cost has an added constraint in financial planning as agreements are performance-based and cannot provide a robust position to make a future forecast of the company’s marketing and expenditure cost. Moreover, the cost of funding the designing of retail outlets in different market segments to promote the company’s retail consumer store product adds to the financial burden. Therefore, the strategic issue is, ‘What tactical business steps should the company take to break these growth challenges and increase its market share?’

External Environment

In an organization, the external environment comprises the immediate competitive environment and the extensive environmental factors. The immediate competitive environment refers to factors such as economic, market, and competitor forces that dictate the industries’ opportunities, profits, and expansion. The Macro-environment factors include political, economic, social, cultural, technology, environmental factors, and legal policies that direct its objectives, strategy, and direction of operation. In the sports, attire manufacturing industries, sporting, and recreational activities are factors of the external environment that support the industry’s existence and growth.

The relevance of the political factors involves the decision by states, countries, or governing bodies to hold a sport or recreational event in a certain geographical location. A change in the political environment such as Europe Brexit leads to new terms in the business environment that may include a change of trading conditions, inflation, and currency that negatively affect the industry’s income revenue. The negative impact on the economic conditions affects the buyers’ buying potential and subsequently reduces the profit margin hindering growth and expansion. Additionally, political influences by governing bodies on sponsorship of sports or recreational events limit companies’ competition and subsequently affect growth and expansion of an industry.

The shifting socio-cultural needs of sports, recreational activities, and healthcare awareness by the rising population adjust the manufacturers’ flexibility to meet the changing consumer markets. Incorporating technology to support sales, research, and product development to meet the dynamic customer behaviors promotes industry growth. Combining the two factors heightens the competition between local and established industry firms that manufacture various quality performance products to meet the market demand. The heightened competition forces companies to take strategically costly steps to cut on market share or face market fall-out.

Environmental and legal factors influence the sporting events within a given geographical location. Various climate conditions widen the sports and recreational activities of a population and diversify customer needs. Developed countries have strict legal policies aimed at protecting its citizens and the county’s economic position by regulating local and foreign companies’ business operations. Companies must comply with the regulations that involve local and global rivalry to gain market penetration before engaging in any business activity to promote their brand name and boost its business activities.

Porter’s Five Forces Analysis

The five forces analysis provides important economic market characteristics of various products that shape the strategic direction of Under Armour and subsequently influence the growth of the industry. The analysis offers knowledge on market size given the geographical locations, the existing demand and supply forces, competitive forces, and the technological shift that offer business growth and expansion opportunities. Buyer bargaining power influences the degree of sales, profit potential, and the overall growth of a company in a given target market. Companies promote brand awareness and customer loyalty through several advertisements and promotional efforts to claim a significant market niche with a considerable impact on the companies’ profit margin. Sponsorship programs in the sports industry promote sales through buyer brand identification and restrict competition from new entrants and small companies such as global market penetration by Under Armour already dominated by Nike and Adidas.

The diversity of sports activities influences product quality in any given industry. The presence of substitute products with superior quality promotes competition between manufacturing industries to control buyers’ tastes and needs. In the sports industry, athletic and leisure shoe, apparel and sports equipment companies provide substitute products, influence product price, and increase advertisement and promotions cost that subsequently decrease income revenue and threaten growth. Sponsorship and athlete endorsement lowers the seller bargaining power as there is high customer switching cost to sponsoring companies. The industry competition from the new entrants is thus limited due to the sponsorship and promotion barriers by large-scale operators such as Nike, causing high investment requirements from new companies. The rivalry is due to the need to improve market standing and business performance by the existing companies, fear of being faced-out, or overtaken in the otherwise slow-growing industry.

Key Success Factors

Sponsorship and endorsement programs, coupled with the provision of highly designed performance products, promote customer satisfaction and loyalty despite being costly. The growth of technological know-how such as online and social media amongst the world population, specifically in the developed countries and the youth with various ways to access the global market, proves to be a good solution for market penetration. Companies must gain their competitive advantage by incorporating these factors with a quick delivery process to meet these customers’ needs to promote their market relevance.

Industry Profile and Attractiveness

Despite the great political influence, dynamic legal regulations, and the economic instability in several markets due to inflation, the sports industry remains the most attractive to the incumbent investors with high projected growth and expansion due to the population’s shifting ecological needs. The healthcare awareness, changing recreational activities and the rapid technological growth provide a need for product diversity, increased revenue and growth in the industry

Company Situation

In the earlier years of its life, Under Armour experienced a milestone in marketing, brand promotion, and sales growth that positively influenced its revenue income and local market penetration. Licensing agreements, college, high school, and professional athletes’ sponsorship and endorsements proved to accelerate market penetration and the company’s growth rate improving the sales revenues every year. The company aims to provide highly designed quality performance apparel, footwear, and accessories that provided a competitive advantage over rival and substitute products. Under Armour established its competitive edge by expanding its selling units to retail customers, online markets, the opening of factory outlets, and specialty stores. The expansion provided promotional marketing and customer service touch that improved brand recognition and customer satisfaction.

Under Armour realized the highest increase in percentage growth of net sales in the year 2011 with a characteristic fall in sales growth rate in 2012(Table1). Nike enjoyed total sales of $20.9 billion in fiscal 2011, with a huge sales increase of $3.2 billion to hit a total of $24.1 billion in 2012. The great margin of total sales between the two competing companies informs that there is a great space for growth and expansion of the industry. Nike’s huge sales growth of $3.2 billion in 2012 provides a clear indication that much of the industry’s market is untapped and needs exploitation as the sports and recreational industry is still in the growth phase of its life cycle.

Financial Analysis

The analysis of the financial data indicates that Under Armour has had a good financial position with an ability to meet its liability obligations that had continually grown each year. As shown in Table 1 (Appendix), the profitability ratio of gross profit margin stagnated at about 48%, which means that there was no significant growth in revenues. However, profitability ratios indicate that the benefits have increased from 2008 through 2012. Specifically, profit margin, return on assets, and return on equity have increased from 5.27% to 7.02%, 7.84% to 11.13%, and 11.55% to 15.76%. Liquidity ratios indicate that the liquidity of Under Armour fluctuated across the five-year duration (Table 2).

In 2008 through 2012, the quick acid ratios were 2.24, 9.26, 12.79, 2.26, and 5.52 respectively. Working capital ratios for 2008 through 2012 were 10.69, 26.98, 42.36, 11.83, and 18.70 correspondingly. Leverage ratios of Under Armour are less than one. Evidently, debt ratios of Under Armour are 0.094, 0.037, 0.024, 0.085, and 0.053 for 2008 through to 2012. Debt to equity ratios of the same period are 0.14, 0.005, 0.03, 0.12, and 0.08 while equity ratios are 0.68, 0.73, 0.74, 0.69, and 0.71 (Table 3). In the aspect of activity ratios, inventory turnover has 2.04, 3.01, 2.48, 2.34, and 2.99 for 2008 through 2012 respectively.

The financial analysis indicates that Under Armour has robust financial status, which would enable it to grow and develop in competitive markets. Under Armour has a profit margin of about 6%, Nike has about 24%, and Adidas has about 4.8%. Profit margin shows that Under Armour ranks second in profitability performance. Liquidity ratios such as quick ratio and working capital ratio reveal that Under Armour can pay its liabilities at any instance. Under Armour has leverage ratios of less than one, it shows that its debts are significantly low and within acceptable financial levels. The activity ratio of inventory turnover shows that Under Armour is active for its inventory has a turnover of two or three times. Therefore, the overall financial status of Under Armour indicates that it can grow its sales and augment profits.

SWOT Analysis

Under Armour’s objective and passion for the production of highly designed performance attire despite high cost incurred promotes brand name and customer loyalty over competitor products. The company’s expansion of selling units to retail customers, online, and websites supported by the technological shift by consumers provides a great means for product promotion and marketing to lead to profitability, as seen in the current financial position of the company. The growing diversified consumers’ need in the global market is a good opportunity for investment to drive the company objectives to venture into the foreign market. Contractual agreements with manufacturing firms’ pull together the companies’ interest and provide a combined strength to absorb the shocks of rivalry and competition from local and global established firms providing substitute products. The financial strength together with the opportunities promotes profitability, growth, and expansion of the company in the industry

Despite the prospective growth potential of the company, great challenges limit its expansion. Lack of long-term contractual agreements with the manufacturing firms having no obligation to make and use the company’s products leads to reduced market penetration and expansion due to poor brand recognition and customer loyalty. Under Armour, diverse products directed to meet various customer needs faces several setbacks due to the impact of external forces. Petroleum-based products that largely rely on the cost of oil prices, which undergo frequent fluctuation together with charged-cotton products relying on the cotton harvest, have led to unstable product prices and product availability due to the cost of production subsequently damaging the customer trust on the company and brand loyalty. Rival companies and competing substitute products take advantage of these production challenges to gain an extended market segment and threaten the company’s market share while risking market fall-out as a result of poor returns on investment.

Recommendation

To achieve its objectives of increased sales, market penetration, and expansion, Under Armour, must take several tactical steps directed towards reduced production cost, market penetration, stable product price, adequate production of diverse products, and long-term contractual agreements. These steps will provide a robust operation platform for the company to compete in the local and global markets by adequately meeting different customer needs while reducing operational costs and improving product quality and availability to boost net revenue returns.

Strategic Recommendations

Contractual agreements with manufacturing firms provide a great step for market penetration and global expansion. Under Armour Company should take a bold step to make long-term contractual agreements with other firms in foreign markets to boost production and use of its products. In addition, the company should establish constant cotton supply in different cotton production countries for Charged-cotton products that high rely on cotton harvest leading to the shortage in the market. The production of these seasonal cotton products should be bulk during the cotton harvest season and stocked to avoid shortage in the market.

Moreover, the company should target to promote more sponsorship programs in colleges and professional sports organizations in the foreign market as the chief marketing and brand promotion tool. Expansion of selling units with product diversification to meet the increasing number of customers with diverse needs is another strategic marketing tool that is still underutilized. In this view, Under Armour should strive to open and maintain extra stocked selling units in foreign markets while keeping local stores fully facilitated to limit the chances of product shortage or unavailability in the market.

Sales from the foreign market should continually be monitored every quarter, and adjustments made to meet the needs of the diverse customers and competition of the global companies. The company’s profit target should be set and revised for both local and foreign markets every quarter for the whole year. Analyze sponsorship agreements to check the extent of coverage, cost, and effect of individual agreements on the market within a given location—controlled production cost to control the pricing of all company’s products, including Charged-cotton products to build customer loyalty.

Strategic Justification

Production of Charged-cotton products in bulk during the cotton harvest season will help the company meet customer demand of these products throughout the seasons. The production move will help control and stabilize market prices for these cotton products. Establishing additional selling units such as factory outlets, online websites, and retail customers to cut across local and foreign markets will provide customers with easy placement of orders and faster delivery of goods and build customer loyalty while at the same time acting as the marketing and promotional sites. The technology incorporation and additional outlets will provide an additional point of research to understanding customer needs that will promote the company’s objective of meeting the ever-changing diverse customer needs. Additionally, sponsorship programs will provide on-field authenticity of the company’s products to the audience while building a brand relationship with the sports organizations and professional athletes that helps boost trust from other consumers with active lifestyles in the global market. These steps promote market penetration, growth, and expansion of Under Armour in the sports industry across both local.

Appendix: Financial Ratios

Table 1: Profitability Ratios.

Table 2: Liquidity Ratios.

Table 3: Leverages Ratios.

Table 4: Activity Ratios.

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IvyPanda. (2020, November 3). Under Armour Company's Strategic Challenges. https://ivypanda.com/essays/under-armour-companys-strategic-challenges/

"Under Armour Company's Strategic Challenges." IvyPanda , 3 Nov. 2020, ivypanda.com/essays/under-armour-companys-strategic-challenges/.

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IvyPanda . 2020. "Under Armour Company's Strategic Challenges." November 3, 2020. https://ivypanda.com/essays/under-armour-companys-strategic-challenges/.

1. IvyPanda . "Under Armour Company's Strategic Challenges." November 3, 2020. https://ivypanda.com/essays/under-armour-companys-strategic-challenges/.

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IvyPanda . "Under Armour Company's Strategic Challenges." November 3, 2020. https://ivypanda.com/essays/under-armour-companys-strategic-challenges/.

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UPDATE: With Dismal Q1 2025 Results, Under Armour Makes Brand Leadership Shakeup

• August 9, 2024 at 9:53 AM EDT
• By Alicia Esposito
• Originally Published on August 7, 2023

[Update as of Aug. 9, 2024] The day after Under Armour announced a brand leadership change, it shared results from its Q1 2025, which ended June 30, 2024. As a result of a 10% drop in revenue for the quarter, the brand has updated its fiscal outlook for 2025. This story has been updated to included detailed results from the earnings call.  

– Original story from Aug. 7, 2024 begins –

After a little more than a year in his role as EVP and Chief Consumer Officer, Jim Dausch has stepped down from his post at Under Armour , according to an SEC filing from the company. Although the Chief Consumer Officer role will not be filled, longtime Adidas executive Eric Liedtke will join the company as EVP of Brand Strategy, filling the brand leadership gap. Dausch joined Under Armour in July 2023, hired by the brand’s former CEO Stephanie Linnartz to support the brand’s “Protect this House 3” strategy for driving U.S. sales. Reporting directly to Linnartz, Dausch led global brand, marketing, digital engagement and customer experience across all commerce channels. Before joining Under Armour, he spent more than 20 years in various roles at Marriott . When Dausch leaves the company on Aug. 30, 2024, Liedtke will take over the brand post and report directly to President and CEO Kevin Plank, who returned to Under Armour in April 2024. The appointment comes with Under Armour’s acquisition of Unless Collective , a zero-plastic regenerative fashion brand that Liedtke co-founded in 2020. Financial terms were not disclosed, but the deal is expected to close this week. “We are thrilled to welcome Eric and the Unless team to Under Armour,” Plank said in a statement. “With Eric’s best-in-class history of driving exceptional growth in the branded sports industry and an established reputation as an exceptional leader, his experience will be a tremendous asset in galvanizing Under Armour’s brand strategy, refining our operating model, and ensuring that every facet of consumer engagement is moving our brand forward.” Before starting and leading Unless as CEO, Liedtke spent more than 26 years at Adidas, taking various senior positions in footwear marketing and executive roles as VP of Brand Marketing, SVP of Sports Performance Brand Marketing and Head of Sports Performance, and most recently Brand President and Executive Board Member. In his most recent role, Liedtke was credited with orchestrating the creation and implementation of a five -year plan that drove more than $8 billion in revenue growth for Adidas, promising results for Under Armour, which has unveiled extensive plans to tackle business declines . “Sports, inspiration and culture bring people together, and I am honored by the opportunity to contribute to Under Armour’s long legacy as an iconic brand that connects across these dimensions,” said Liedtke in a statement. “I see tremendous opportunity to elevate the brand, enable deeper loyalty, and drive growth among new and existing consumers.”

Righting the Under Armour Ship

Plank has played a central role in the growth and evolution of the Under Armour brand and its products since he founded the company in 1996. From 1996 to 2019, he was acting CEO and Chair of the Board of Directors, and in 2020 he was appointed Executive Chair and Brand Chief. Now, he’s working to turn the Under Armour brand around after a tumultuous year.

In Under Armour’s Q4 2024 results , which ended Mach 31, 2024, the brand reported a 10% decrease in North American revenue to $772 million , while international revenue increased 7% to $561 million . Wholesale revenue also decreased 7% to $850 million , while direct-to-consumer (DTC) revenue was flat year over year. And although owned and operated store revenue increased 7% , ecommerce revenue decreased 8% . For the entire fiscal year, Under Armour also reported a revenue drop of 3% , with North America revenue and wholesale revenue suffering the most, with a loss of 8% and 7% respectively.

Q1 2025 results were equally dismal, with overall revenue down 10% and drops across:

• North America revenue ( 14% decrease) and international revenue ( 2% decrease);
• Wholesale revenue ( 8% decrease) and DTC revenue ( 12% decrease);
• Apparel revenue ( 8% decrease) and footwear ( 15% ).

As a result, Under Armour has updated its fiscal 2025 outlook and is expecting revenue to be down at a low double-digit percentage rate. However, due to reduced promotions and discounting activities, the brand expects gross margin to go up 75 to 100 basis points.

“We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations,” said Plank in a statement. “Our renewed energy and alignment are proving to be critical enablers as we work to deliver superior products and storytelling while driving efficiencies, reducing promotional activity, and complexity.”

• Posted In: Customer Experience , Digital Marketing , Loyalty , Market News , Omnichannel Alignment
• Tagged With: Adidas , executive leadership changes , Under Armour
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4 case studies of businesses that scaled to greatness.

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Joe Camberato is the CEO and Founder of National Business Capital , a leading FinTech marketplace offering streamlined small business loans.

Have you ever wondered why some companies succeed in unimaginable ways while others fade into obscurity? The best way to understand how to scale a company is to look at how the most successful companies have done it. Let’s look at four companies that started out small and become global players in their industries.

Amazon is one of the best-known companies in the world, so it’s easy to forget that founder Jeff Bezos started the company out of his garage . In 1994, Bezos financed Amazon, which began as an online bookseller, with $10,000 of his own money.

Amazon experienced many losses during its early days, but its revenue quickly grew from $4.2 million to $8.5 million in 1996. The company went public in 1997, and the following year, it expanded beyond books.

One of its biggest game changers came in 2005 when the company launched Amazon Prime, its subscription service. There are 180 million Prime members in the U.S. alone.

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Amazon’s continued commitment to innovation has led it to be one of the world’s most successful companies. Amazon provides its customers with almost unparalleled convenience.

Under Armour

In 1996, Under Armour was founded with the idea of creating a T-shirt that wicks sweat away more efficiently and keeps athletes dry. The company started small , with founder Kevin Plank selling T-shirts out of the trunk of his car and to his former teammates on the University of Maryland’s football team.

Under Armour made several iterations of its original prototype, and the T-shirt was a huge success. The company began growing organically. Plank wanted to increase the company’s growth, so in 1999, he decided to take out an ESPN ad for $25,000 . It was a risky move at the time, and employees agreed to go without pay for a couple of weeks so the company could afford the ad. However, the risk paid off, and Under Armour generated $1 million in sales the next year and dramatically increased its brand recognition.

Under Armour’s initial funding came from Plank , but the company went public in 2005 . Under Armour began to diversify and release new products, but it never lost focus on its central mission—improving the performance and comfort of all athletes.

In 2007, Brian Chesky and Joe Gebbia couldn’t afford the rent for their San Francisco apartment, so they decided to rent out their loft space to earn some extra money. They didn’t want to post an ad on Craigslist , so they decided to create their own rental site.

In 2009, they were accepted into Y Combinator and received $20,000 in funding . Airbnb later received another $600,000 in funding in a seed round, despite receiving a lot of early resistance. By 2014, Airbnb had more than 550,000 properties listed worldwide and 10 million guests.

One of its keys to success is its focus on the user experience. By allowing people to rent out their homes, the company gives the average person a way to earn an additional stream of income.

In 1997, Netflix was started as a DVD rental service to help customers avoid getting hit with late fees. Customers selected the movies and TV shows they wanted online and could then have them delivered to their homes.

In 1999 , founder Reed Hastings introduced a subscription-based model. Once customers were locked into a monthly subscription, they were more likely to rent more movies. In 2000, Netflix released its Unlimited Movie Rental program, which allowed customers to rent an unlimited number of movies each month for a monthly subscription of $19.95.

In 2007, Netflix launched its online streaming service, and that was the first year the company surpassed $1 billion in revenue. The company later began entering into content licensing deals with television studios and, in 2011, started producing its own original programming.

Netflix has been a success because the company is flexible and able to adapt quickly to changes in the marketplace. And Netflix’s founders were able to see the long-term vision for what the company could become, unlike companies like Blockbuster.

Tips On Scaling Your Business

Scaling a business is the ultimate goal for most entrepreneurs, but how can you make it happen? First, it’s important to understand the difference between growth vs. scaling. Growing businesses focus on getting bigger and acquiring more customers and more team members. In comparison, scaling focuses on efficiency. Scalable companies can serve more customers without significantly more effort.

It’s near-impossible to scale a company by yourself, so you should ensure you have the right team in place. This isn’t just about bringing on more employees. It’s about finding those few, highly specialized employees who can help you move the company forward.

Research from McKinsey found that the highest performers are 800 times more productive than average employees in the same role. Focus on finding and keeping the right staff of people who believe in the company’s mission.

My company started with me. I worked as hard as I could and made some great progress in the beginning, but a business can only reach a certain level with only one person. It started with one hire, then two, then three. Before long, I was surrounded by amazingly talented people, and the business started to grow beyond what I was able to achieve on my own.

You also need to focus on understanding your customers and maintaining quality customer service. As companies start to scale, maintaining a high level of customer service becomes increasingly difficult. Ensure you’re meeting your customers’ needs by creating standard operating procedures, automating what you can and investing in 24/7 live chat.

Scaling your business requires investing in technology and systems, which aren’t cheap. Even if you don’t need the funds yet, start identifying potential banks or online lenders where you can access a loan or ongoing line of credit. Finding the right financing opportunities allows you to build the infrastructure necessary to scale.

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