Grafton Elliot

Nicole Liebman

Owen Coale

Salem Demirkon

UNDER ARMOUR: NEW PRODUCT LINE

COMPANY PROFILE: BACKGROUND• One of the leaders today in the sporting clothes and accessories industry.

• Based out of Baltimore, MD.

• Annual sales around $2.25 billion dollars and continuing to grow.

• Biggest competitor is Nike (Columbia, Adidas, Reebok)

• Annual revenue of around $25 billion

COMPANY PROFILE CONT… • Under Armour offers a total of five product lines:

• Cold Gear

• Loose Gear

• Turf Gear

• All-Season Gear

• Heat Gear

• Firm focuses on innovative products

• Shirts that monitor heart rate

• Shoes that mimic the human spine

• Tape-replacing cleat

PRODUCT: UNDER ARMOUR SNOWBOARDING BOOTS AND HELMETS

• Cold gear boots

• Cold gear helmets (Over Armour by Under Armour)

MARKET POTENTIAL

• Number of US snowboarders in 2010= 6.1 million, compared to 4.3 million in 2000.

• Women make up 33% of snowboarding market

• Global sporting events such as 2014 Sochi Olympics present exponential marketing opportunities

COMPETITORS IN FUTURE MARKET• Industry Leader(Snowboard Boots): Nike and Burton Snowboards

• Industry Leader(Helmets): Smith

PRICE• Men's Snowboarding Boots: $150-200

• Women’s Snowboarding Boots: $100-150

• Men’s Over Armour Helmets: $125-175

• Women’s Over Armour Helmets: $100-150

TARGET MARKET• Users ages 12 to 24

• Largest number of snowboarder range from 12 to 24 (56%)

• Also 25 to 44 years of age (25% of market)

• These consumers tend to have a stronger brand awareness of Under Armour as well

• Both male and female

• Income level of $65,000+, people who are more affluent

DISTRIBUTION METHOD• Today, UA uses a selective distribution strategy (multi-channel design).

• Sell to both retail as well as directly to consumers

• Online

• Principal customers: Dick’s Sporting Goods, Eastbay, and Sports Authority.

• Social Media

• Television

• Billboards

• Sporting Events

• In-store promo

• Celebrity Endorsements

PROMOTION

• Telephone interview

• 300 people called

• 50% incidence rate lowering us to 150

• 50 people refused leaving us with 100 qualified and willing to respond

SURVEY & RESULTS

• Correlation Tables

• Descriptive Statistics

• Pivot Tables

• Bar Graphs

• Pie Charts

• Line Graphs

SURVEY INTERPRETATION METHODS

• Negative relationship between the likelihood to purchase the Under Armour product and the frequency of Snowboarding/Skiing

• Demonstrates that those who are involved in snow recreation activities are less likely to buy our newly developed product

• Why?

• Brand loyalty possessed by avid snowboarders and skiiers

RESULTS

• Quality shows to be the dominant trait for UA as demonstrated by the respondents.

• Shows that other aspects for the products need more focus such as safety and comfort.

• Safety is most likely rated lower due to UA’s lack of actual safety products

SURVEY RESULTS

• Price Rating had the largest variance illustrating that there were a lot of mixed results for how people perceived UA’s pricing for their products

• People of Asian decent are least likely to purchase our newly developed products

• People of Hispanic decent are most likely to purchase

• Most respondents answered “4” for likelihood indicating a strong interest in purchasing

SURVEY RESULTS

Gender RaceApparel Brand Type

Likelihood

Income City

Price Paid Helmet 1

Price Paid Boots 2

Frequency Snowboading/Ski Quality

Price Rating Durability Aesthetics Comfort Safety

Gender 1

Race 0.047970385 1

Apparel Brand -0.075073769 -0.006223799 1

Type -0.126537055 -0.020069432 0.652244413 1

Likelihood 0.029935223 -0.024423888 0.4796773120.10342

2 1

Income -0.083069327 -0.067323291 0.389419146 0.251190.161291

79 1

City 0.080257235 0.031049762 0.4008918630.47118

1

-0.110789

40.5099

7 1

-0.042285457 -0.165011714 0.3752931940.28461

20.128013

690.3443

1 0.404313865 1

Price Paid Helmet 1 -0.031978212 -0.146241529 0.353386014

0.335518

0.19269799

0.38653 0.458409468 1 1

0.031543453 0.082872436 0.3819461210.38143

70.126842

260.4302

1 0.5221902140.35051

1 0.464012321 1

Price Paid Boots 2 0.031543453 0.082872436 0.381946121

0.381437

0.12684226

0.43021 0.522190214

0.350511 0.464012321 1 1

Frequency Snowboading/Ski 0.094448608 0.119230002 -0.179774984 0.02132

-0.203834

1-

0.1742 -0.153316655-

0.13155 -0.156219344-

0.14439 -0.144391956 1

Quality -0.037041486 0.029389941 -0.218591843-

0.182650.014462

13-

0.3747 -0.507858964-

0.10441 -0.174737455-

0.28854 -0.288539831 0.073100826 1

Price Rating 0.20017043 -0.111493855 0.066185161-

0.013250.078650

24 0.1987 0.0212264740.06814

1 0.116765890.03102

6 0.031026266 -0.0198977030.0307044

49 1

Durability 0.102380116 -0.016663985 -0.0634272240.02880

20.107120

03-

0.0576 -0.0647417460.15088

5 0.145413266 0.00242 0.002419754 0.0553528220.0425896

730.05162177

7 1

Aesthetics 0.036890039 0.075333094 0.044325253-

0.017390.031407

35-

0.0983 0.079016358-

0.28217 -0.1868122340.04515

5 0.045155454 0.0122178370.0899898

340.12015692

2 0.02284832 1

Comfort -0.185514 0.105640162 0.0128666750.10672

20.033060

50.1629

2 0.1542627590.12972

3 0.1729774910.02827

5 0.028274856 -0.121563673

-0.1219318

21

-0.06578857

8 0.036115335 0.162016953 1

Safety 0.018284636 0.036500274 -0.0896003830.00551

7

-0.121150

8-

0.0611 0.115307404-

0.03761 -0.039884761-

0.07279 -0.072790697 0.1017665670.0505194

9

-0.06283272

5 -0.198859977 0.051423543

-0.06405726

2 1

Correlation Table

• No STRONG correlations

• Stronger than normal correlation between Apparel Brand & Likelihood to Purchase (positive)

• The table indicated that most people preferred Smith products

• City and type of item purchased(positive)

• City and consumer income(positive)

• Strongest correlation is the Apparel brand purchased and Type of Apparel Purchased

• Indicates that most people buying helmets prefer to go with a Smith product

• Most males buying boots lean towards a Burton Product

• Women favored the idea of buying boots from Under Armour

CORRELATION TABLE RESULTS