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Under Armour : New Product Line. Grafton Elliot Nicole Liebman Owen Coale Salem Demirkon. Company Profile: Background. One of the leaders today in the sporting clothes and accessories industry. Based out of Baltimore, MD.
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Under Armour: New Product Line Grafton Elliot Nicole Liebman Owen Coale Salem Demirkon
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.
Promotion • Social Media • Television • Billboards • Sporting Events • In-store promo • Celebrity Endorsements
Survey & Results • 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 Interpretation Methods • Correlation Tables • Descriptive Statistics • Pivot Tables • Bar Graphs • Pie Charts • Line Graphs
RESULTS • 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
Survey 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
Correlation tAble results • 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 • 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