BRANDWARS:NIKEvs.

UNDERARMOUR

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BRANDWARS Weloveagoodcompetition.Andwebelievethatakeyingredientinagoodcompetitionisaclearwinner,nomatterhowclosethebattle.Sowepinnedtwoindustryleaders– NikeandUnderArmour – againsteachotherinagoodoldfashionedheadtohead,andcollectedconsumerinteloneachbrandtounderstandwhoisthefanfavoriteandwhy.

Whichathleticbrandwillcomeoutontopin2015?Readontofindout.

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THREE QUESTIONS.TWOLEADERS.ONE WINNER.

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BEHINDTHECURTAIN

Wereachedoutto1,000consumerstoaskthreequestionsabouteachbrand.WeusedThoughtPath,ourcognitiveframework(rootedinthreetheoriesofpsychology),asourguidetocarefullycraftquestionsaimedatcultivatingthemostinsightregardingconsumers’perceptionsof,andrelationshipto,eachbrand.Oncewecollectedthefeedback,weimplementedMergetextanalyticstocullthroughthemassiveamountofdataquicklyandaccurately.Fromthere,ouranalyststeasedapartthenuanceintheverbatims togainadeepunderstandingofhowconsumersviewanddiscusseachbrand.

Letthegamesbegin.

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THEQUESTIONS

PERCEPTIONTHEORYHowwouldyoudescribe[Nike/UnderArmour]tosomeonewhohasneverheardofitbefore?Pleasegiveasmuchdetailaspossible.

IDENTITYTHEORYHowwouldyoudescribethetypeofpersonthatwears[Nike/UnderArmour]?Pleasegiveasmuchdetailaspossible.

EXPERIENCETHEORYHowdoes[Nike/UnderArmour]motivateyoutoliveanactivelife?Pleasegiveasmuchdetailaspossible.

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FIRSTGLANCE?TOSSUP

ConsumersseeUnderArmour andNikeinaverysimilarlight.They’rebothpricey,well-loved,athletically-mindedsportsbrands.Butwedidn’thavetoaskconsumerstoknowthat,sowecontinuedtodigbelowthesurface.Withalittleeffort,agreatdealofnuanceemergesfromconsumers’perceptionsoftwosimilarbrands,illuminatingcleardifferencesinthewaythatconsumersviewNikeandUnderArmour.

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EXPENSIVE

POPULAR

SPORTS-FOCUSED

HIGH-QUALITY

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[spoileralert]ATHLETICPEOPLE

WEARBOTHWhenweaskedwhattypeofpersonwearseachbrand,atasurfacelevel,theperceptionsofeachbrand’sloyalistsareverysimilar.Consumersusethesamebroadlanguagetodescribeboth.But,inunderstandingtherelationshipsbetweenwordsandflushingoutthecontextwithwhicheachwordisused,welearnedthatthesamewordcanmeanverydifferentthingstoconsumers– evenwhendiscussingtwoseeminglysimilarbrands.Evenwhenthetermsusedtodescribeeachbrandareidentical,thecontextinwhichthewordisusedisverydifferent.

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SPORTYDudes,sweaty,football, runner

ATHLETICTough,strong, attractive

ACTIVEAthlete,outdoorsy, serious

SPORTSAthleticallyminded,inclined, player

COMFORTABLEStrong,shape, clean

WHATTYPEOFPERSONWEARS[NIKE/UNDER ARMOUR]?

SPORTYEnergetic,healthy,fashionable,stylish

ATHLETICCool,stylish,conscious,fashionable

ACTIVEAthletic,very,runner

SPORTSHealthy,wealthy,fan,sneakers

FITSportycrowd,comfortable,athlete

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NIKE=ATHLETICSHOES

WhendescribingNikeasabrand,shoesaretopofmind.Boomers,moresothanmillennials,associatethebrandwithathleticshoes.ButNike’sathleticshoesaren’tyouraverageshoe– consumersspeaktothefactthatthecomfortofNikeshoesiswhatgetsthemoutofbedinthemorningandreadytohitthestreets.It’sthewaythebrandmotivatesthemmosttoliveanactivelife,morethaneventhefamedinspirationalcommercials.

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Oneofthebestsneakerbrands.Manystyles,colors,andtypesavailable.

– Female,25-34

Theirshoesarecomfortableenoughforyoutowanttogothatextramile.

– Female,45-54

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EVERYONENEEDSSNEAKERS ConsumersbelievethatNikeisabrandforeveryone– theymentallyleap

fromthesentimentthatNikeissynonymouswithathleticshoestothethoughtthateveryoneneedsathleticshoes,andthereforereasonthateveryonecouldwearNikes.

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Mysonwouldsaytheyhavealotofswag.Isaytheyhavesomethingforeveryone.

– Female,35-44

Everybody– athletes,students,professionals,moms,dads,grandparents,

etc.It’sashoeforeveryone!– Female,35-44

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NIKEWEARERSARELIKEME ConsumersspeaktoNike’smessagingandadvertisingasenforcersofthe

“Nikeisabrandforeveryone”sentiment.Adsfeatureindividualswhoconsumersrelatetoandthinklooksimilartothemselves.Furthermore,theadvertisements’compellingstoriesinspireandmotivate,regardlessofageorathleticability.

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JUSTDOITisthebestlineever.Iamover60andstilllivebyit.

– Female,65+

Nikeadsshowthatnomatterwhatyoulooklike,youcansucceedatyourgoals.

– Male,18-24

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TRIPLETHREAT BydiggingdeeplyintowhoconsumersviewasNike-wearers,wefoundthreemainpointsofentry,orthreereasonsthatconsumersturntoNike:practicality,performance,andfashion.Fromtherecreationalpark-walker,totheeliteathlete,tothegeekchicad-exec,Nikecoversamultitudeofbases.

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PRACTICALITY

PERFORMANCE

FASHION

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ANDNEITHERSNOW,NORRAIN… WhenwelookathowconsumersdescribeUnderArmour,theyarequickto

pointoutallofthetechnicalaspectsthatmakeUnderArmour functionalinthemostchallengingofconditions.Asidefromminimalmentionsofpriceandoverallquality,consumersuselanguagesuchas“wicking,”“skin-tight,”“insulating,”and“breathable”todescribethebrand.Toconsumers,UnderArmour’s keydifferentiatorsarewovenintothefabricoftheirapparel(whichisfitting,asthebrand’soriginalproductwasamoisture-wickingshirt).

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PERFORMANCE

CLOTHINGISALLABOUTPERFORMANCE.

base layer elastic

light wicking

thermal

nylonbreathable

skin-tight

insulating

protects

Anactiveindividualwhoisseriousaboutwhattheydo,andpushestheirbodytothelimitsbutwantsandneedsthebest

activegearavailable today.–Male, 18-24

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NOEXCUSES AthletesfindthatUnderArmour’s mostmotivatingqualityistheperformanceofthegear– iftheycan’tusetheirfaultyapparelorequipmentasacrutchinbadweather,theyhavenoexcusebuttobravetheelements.Withtherightequipment,there’snosuchthingasbadweather,andthismakesthemfeelunstoppable.

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JusthavingtheUSsymbolonmyshirtmotivatesme.Idon’twanttobeseeneatingaburgerandfries.Iwanttobe

seengoingthroughagruelingworkoutorToughMudder event!

– Male,35-44

HavingequipmentwithstandunfavorableweathermotivatesyoutostayactiveevenwhenMotherNaturedoesn’t.

– Male,25-34

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UNIVERSALAPPEALISLACKING Butnoteveryoneisaneliteathlete– orwouldevenconsiderloggingafew

milesinthesnow.WhileUnderArmour’s focusonperformancepleasesathletes,italienatesalargesectorofthepopulationthateitherdoesn’tcareabouteliteathleticsorcannotrelatetothisdegreeofathleticism.WhenweaskedwhowearsUnderArmour,wefoundthatUnderArmour wearersarenotyouraverageathleteinbothathleticismandattitude– consumersusedwordslike“cocky,”“trendy,”and“wealthy.”Thesuper-humanathleticismcanbeoff-putting,leadingsomeconsumerstobeuninspiredbytheperceivedunattainablefitnesslevel.

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IntenseathletesthatareprobablyintoAmericanfootball.– Male,25-34

Athletic,trendy,butunrelatable.– Male,18-24

Athletic,activeandprobablyattractive.– Female,65+

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NIKEHASABIGGERFOOTPRINT So,bytappingintoconsumersperceptionsofthebrandsoverall,their

perceptionsofwhowearseachbrand,andtheirpersonalexperienceswitheachbrand,we’reabletounderstandthattherearethreedistinct,yetbroadreaching,pointsofentryforNike,andonlyoneforUnderArmour.

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PRACTICALITY

PERFORMANCE

FASHION

WHYBUYNIKEVS.UA?

PERFORMANCE

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NIKEWINSOUT Simplyput,morepeoplerelateto,andcanseethemselvesin,Nike.

Thebrand’srichsneakerheritagecontributestothebroadappeal,asdoestheirrelevantandinspiringmessaging.WhilesneakersaremoretopofmindforBoomers,itsclearthateveryone,regardlessofgeneration,isawareofNikeandcanimaginethemselvesdonningtheswoosh– andtheyoftendo.

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OURWINNER?

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THE(FEROCIOUS)UNDERDOG

ThefactthatUnderArmour isathreattoNikeisimpressiveinitself–justnineteenyearsago,thebrandwasapipedreaminCEOKevinPlank’sgrandmother’sbasement.WhileUnderArmour comesinbehindNike,thebrandhasagreatdealofmomentumandopportunity.Millennialsinparticularofferhopeofclosingthegap:theyraveaboutUnderArmour’scomfort,anddon’tsaythesameforNike.Millennialsandeliteathletesaside,therearemanymarketsthatUnderArmour cantaptocontinuetogrowmarketshare.Thebrandhasalreadysuccessfullykickedoffthisoutreach;theyexecutedawildlysuccessfulandaward-winning“IWillWhatIWant”campaigntargetingwomenin2014,andrecentlyspentmorethan$600millionpurchasingtwofitnessapps,MyFitnessPalandEndomondo,allowingthemtohelpadiversegroupachievetheirexercisegoals,regardlessoffitnesslevel.

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THERUNNER

UP

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OURMETHODOLOGY

…toderivethecontextand storybehindconsumer commentary.

Cutting-edgetext analytics…

…withhuman analysis…

MERGEAsolutionthatcombines:

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OURMETHODOLOGY

WecompletedthisresearchusingMergeAnalytics,asolutionthatleveragesacutting-edgetextanalyticssoftware,backedby20|20’sexpertanalysts,tohelpcompanieseasilyandefficientlyunderstandwhatisgoingonwiththeirconsumers.Withthisapproach,we’reabletolookatconsumercommentaryfrommultiplesources,includingsocialfeeds,productreviews,surveyverbatims,andcallcentertranscripts,anddistillitdownintoactionablefindings.

Thisresearchwasconductedbyaskingthreeopen-endedquestionsforeachbrandofN=1,000consumers.Questionswerecraftedusingourcognitiveframework,ThoughtPath.

ThiscontentwasadaptedfromapresentationgivenattheQuirksEventinBrooklyn,NYinFebruary2015.

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Research,Uncomplicated.

2020research.com|advice@2020research.com| 800.737.2020