case study of under armour

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?

How does under armour approach digital marketing, who is under armour’s target audience, what gives under armour a competitive advantage, what are some of under armour’s notable marketing campaigns, how does under armour utilize social media in their marketing strategy, how does under armour utilize branding tactics, when was under armour founded, what is under armour’s mission, who is under armour’s target market, what is the conclusion of under armour’s marketing strategy, related posts:.

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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 : Case Study

Business case study series.

Under Armour: A Comprehensive Business Case Study

1. Introduction

Under Armour, Inc., a renowned American sports equipment company, is recognized for its innovative athletic apparel, footwear, and accessories. This case study explores Under Armour's business model, market strategies, financial performance, challenges, and future prospects.

2. Company Overview

Founder : Kevin Plank

Founded : 1996

Headquarters : Baltimore, Maryland, USA

Industry : Athletic Apparel and Footwear

Core Products : Athletic apparel, footwear, and accessories

3. Market Analysis

Market Size : The global sports apparel market is valued at over $200 billion, driven by increasing health consciousness and participation in sports and fitness activities.

Consumer Behavior : Consumers seek high-performance, comfortable, and stylish athletic wear, with a growing focus on sustainability.

Competitors : Nike, Adidas, Puma, and other major sportswear brands.

4. Business Model

Under Armour operates a product-focused business model, emphasizing performance innovation and direct-to-consumer sales.

Product Offering : High-performance athletic apparel, footwear, and accessories for men, women, and youth.

Revenue Streams : Retail (direct sales through brand stores and online), wholesale (sales to department stores and specialty retailers), and licensing.

Retail Channels : Brand stores, outlet stores, e-commerce platforms, and wholesale distribution.

5. Evolution and Growth

Initial Phase : Started with moisture-wicking compression shirts, targeting athletes for improved performance.

Product Expansion : Diversified into a full range of athletic apparel, footwear, and accessories.

Global Expansion : Expanded into international markets, establishing a presence in Europe, Asia, and Latin America.

Digital Transformation : Invested in digital platforms and fitness applications to engage customers and gather data-driven insights.

6. Operational Strategy

Innovation : Continuous investment in research and development to create cutting-edge athletic wear.

Quality Control : Strict quality assurance processes to maintain high standards of performance and durability.

Supply Chain Management : Strategic partnerships with manufacturers and suppliers to ensure efficiency and flexibility.

Customer Experience : Focus on providing a seamless shopping experience through both online and offline channels.

7. Financial Analysis

Revenue Streams : Significant revenue from apparel sales, with growing contributions from footwear and accessories.

Cost Structure : Major costs include production, marketing, research and development, and retail operations.

Profitability : Competitive pricing and premium product offerings contribute to profitability, although margins are pressured by intense competition.

Financial Performance : Consistent revenue growth with periodic fluctuations due to market dynamics and strategic investments.

8. Marketing and Customer Acquisition

Target Market : Active individuals, athletes, and fitness enthusiasts seeking performance-enhancing athletic wear.

Marketing Channels : Digital marketing, social media, influencer partnerships, athlete endorsements, and sponsorships.

Brand Positioning : Emphasizes performance, innovation, and a competitive edge, appealing to serious athletes and fitness-minded consumers.

9. Challenges

Market Competition : Intense competition from established brands like Nike and Adidas, requiring constant innovation and marketing.

Economic Sensitivity : Vulnerability to economic downturns affecting consumer spending on non-essential items.

Brand Differentiation : Need to differentiate from competitors and establish a unique brand identity.

Supply Chain Issues : Potential disruptions in the supply chain affecting production and distribution.

10. Strategic Initiatives and Solutions

Innovation Focus : Continual investment in R&D to develop unique, high-performance products.

Digital Transformation : Enhancing digital capabilities for better customer engagement and personalized experiences.

Sustainability Efforts : Commitment to sustainable practices, including eco-friendly materials and ethical manufacturing.

Market Penetration : Expanding presence in emerging markets and leveraging digital platforms for global reach.

Brand Strengthening : Building a strong brand identity through targeted marketing campaigns and strategic partnerships.

11. Future Prospects

Geographical Expansion : Increasing focus on expanding in high-growth markets like China, India, and Southeast Asia.

Product Diversification : Introducing new product lines and leveraging technology for smart wearables.

Technological Advancements : Utilizing AI, data analytics, and IoT to enhance product offerings and customer experiences.

Sustainability Leadership : Leading the athletic wear industry in sustainability initiatives and setting benchmarks for environmental responsibility.

12. SWOT Analysis

Strengths :

Strong brand recognition in the performance athletic wear market

Innovative product offerings with a focus on performance

Strategic endorsements and athlete partnerships

Robust digital presence and engagement

Weaknesses :

Dependence on the North American market

Intense competition from larger, more established brands

Periodic supply chain disruptions

Fluctuating financial performance due to strategic investments

Opportunities :

Expansion into new geographical markets and product categories

Growing demand for sustainable and ethical athletic wear

Leveraging digital technologies for enhanced customer engagement

Intense competition from other sportswear brands

Economic downturns affecting consumer spending

Rapidly changing fashion and fitness trends

Supply chain vulnerabilities

13. Strategic Recommendations

Enhance Sustainability Efforts : Accelerate the adoption of sustainable practices, including the use of eco-friendly materials and circular fashion initiatives.

Expand Digital Capabilities : Invest in advanced technologies to improve online shopping experiences, personalized marketing, and inventory management.

Diversify Product Offerings : Explore new product lines and collaborations to attract a broader customer base and stay ahead of fitness trends.

Strengthen Brand Storytelling : Develop a stronger brand narrative through storytelling, influencer partnerships, and targeted marketing campaigns.

Optimize Global Supply Chain : Enhance supply chain resilience by diversifying suppliers and investing in advanced logistics solutions.

14. Conclusion

Under Armour has established itself as a key player in the athletic wear industry through its focus on innovation, quality, and performance. By continuing to invest in sustainability, digital transformation, and market diversification, Under Armour can maintain its competitive edge and capitalize on growth opportunities. Addressing challenges related to market competition, economic sensitivity, and supply chain management will be crucial for sustaining long-term growth and solidifying its position in the global athletic wear market.

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Under Armour

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

Related Work

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

How Under Armour Is Challenging The Athletic Market

Table of contents.

It’s hard to believe that Under Armour was established in 1996 given the way it competes with industry giants Nike and Adidas.

A retail powerhouse in the athletics space, Under Armour is renowned around the globe due to its premium-quality products – apparel, footwear, accessories, and equipment – backed by great branding, celebrity endorsements, and tactful product placements.

Here are a few statistics from 2020 highlighting Under Armour’s leading position:

• Net Revenue of $4.5 billion
• Gross Profit of $2.1 billion
• Share Price of $14.9
• Total Assets of $5.03 billion
• Around 15,000 employees worldwide
• 100+ countries where Under Armour products are sold
• Operates in four geographic areas : North America, Latin America, Europe, the Middle East and Africa ("EMEA"), and Asia-Pacific

With a clear-cut purpose of ‘Empower Those Who Strive For More” Under Armour strives to enhance the performance of athletes at all levels from all walks of life as well as people with active lifestyles.

Let’s now take a detailed look at the growth journey of Under Armour…

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Under Armour: The Poster Child For Next-Gen Performance Apparel

It was 1995, and Kevin Plank had an idea while playing as a fullback at the University of Maryland Football team.

Kevin had had enough of changing his sweat-soaked cotton t-shirts worn over his jersey during his two-day practice. The problem wasn't just the sweat and the continuous changing of shirts, but the fact that the shirts drenched in sweat made him hot and heavy, impacting his performance negatively.

At the same time, he was fascinated with the way his compression shorts stayed dry and wondered if there was a particular type of fabric that could be used to make lightweight shirts. This made him realize that there is an unexplored opportunity to find a better alternative to cotton t-shirts.

From Idea To Inception

After graduating, Kevin began working on the prototypes of shirts in 1996. He tried and tested and eventually designed a shirt made of synthetic fabric that would wick away moisture and fit athletes perfectly. Named "The Shorty," prototype #0037 started it all. 

Not only was it soft, stretchy, and skin-tight, but it also wicked away sweat faster than anything else out there, keeping athletes light, dry, and cool. No wonder that when he gave the prototypes to his teammates at Maryland and friends who went on to play in the NFL, he received glowing feedback with both male and female players from different sports showcasing their interest. He further perfected the design and officially launched the "HeatGear" - a synthetic base layer made to wick away sweat.

With this, Kevin Plank founded Under Armour on September 25, 1996, by using all his savings and even racking up a credit card debt of $40,000. He began working from his grandmother's basement in Washington D.C. All this while, he also spent his time traveling with the apparel in the trunk of the car, exploring opportunities to expand and make sales. By the end of 1996, he had managed to make his first big sale of apparel to the Georgia Tech team, earning $17000. Under Armour was well and truly on its way to making a dent in the Nike and Adidas ruled athletic apparels industry. 

Why The Name Under Armour?

The widely recognized Under Armour name was the result of a mistake. Yes, that's right. Initially, Kevin wanted to name the company "Heart" as he felt it would be a good representation of wearing your heart on your sleeve. But, luckily, it didn't go through the patent and trademark process. Next, he came up with Body Armor and had almost finalized the name, but it too was already taken. Just around then, one of his acquaintances asked him: "How that company you are working on…. Ummm, Under Armor?" This made a light bulb go on Kevin's head as he instantly liked the name and thought it was ideal. Hence, he went ahead with it. The simplistic yet highly effective and aesthetic logo came straight out of the company name, combing the U in Under With A in Armour. Safe to say, it too was a hit.

Success Comes Calling

Having delivered on the keep-you-cool promise with HeatGear, Under Armour went a step further by introducing ColdGear in 1997 designed to keep athletes warm, dry, and light in cold conditions. The AllSeasonGear soon followed, offering athletes a comfy and high-performance t-shirt for all seasons.

The word about Under Armour's revolutionary t-shirts spread, and a number of teams from the NFL gladly became the company's esteemed customers. The year 1997 ended with $100,000 in sales, and it became crystal-clear that Under Armour had arrived as both Nike and Adidas took notice and began launching similar products.

As 1998 arrived, Kevin knew the company had outgrown Grandma's basement, and it was about time to move. Hence, he set up the company's headquarters and warehouse in Baltimore, MD.

The Big Break

Under Armour was already doing fairly well by any stretch of imagination. But then came the big break in 1999 as Warner Brothers signed the company to outfit two of its films – Oliver Stone's Any Given Sunday (a 1999 sports drama film) featuring Al Pacino and Jamie Fox, and The Replacements (a 2000 sports comedy) starring Keanu Reeves, Gene Hackman, and Orlando Jones among others. In the former, the football team wore Under Armour apparel and accessories, making it a hit with athletes everywhere. To further capitalize on this unique opportunity and make the most of the brand awareness and visibility, the Under Armour team bought a print ad in the ESPN magazine in 2000 with employees forgoing their paychecks so that the company could afford to buy the ad. This move worked even better than they had anticipated and led to an increase of $750,000 in sales.

Key Takeaway 1: Take The Leap Of Faith

If you have an idea, get it out there. Kevin did just that and built a brand from scratch that within a few years of its inception began competing with industry giants such as Nike and Adidas. Was it easy? Absolutely not. From spending his savings and racking up debt to working in his grandmother’s basement and selling apparel from the trunk of his car, Kevin did it all to make his vision a reality.

He knew there was a vacuum in the market and his product could offer high value to athletes and he backed himself. Soon his efforts paid dividends and a number of athletes, teams, and even movie production houses began contracting Under Armour. While at it, Kevin never hesitated to take bold steps such as launching a print ad on ESPN or diversifying the products portfolio.

Under Armour Making Giant Strides

With the turn of the century, Under Armour's fortune changed for the better as the company elevated itself to the next level.

New Products. New Signings. Same Old Effective Marketing Tactics.

In 2001, Under Armour became the official supplier of the National Hockey League and signed licensing deals with USA Baseball as well as Major League Baseball in addition to XFL Football League, garnering more attention than ever.

In 2002, the company further expanded its product portfolio by launching its first-ever line of performance underwear. The Armour Underneath was stretchable, light, and breathable to help wick sweat, enable athletes to recover, and stay comfy. 

2003 was a significant year for the company as Rosewood Capital, a private equity firm, invested $12 million into the company, empowering it to expand. Moreover, Under Armour premiered its first-ever television commercial – the now legendary Protect this House – that starred University of Maryland's football standout Eric "Big E" Ogbogu. The ad was quite successful in portraying Under Armour as the voice of the next generation, and its theme pertaining to discipline, hard work, valor helped align the brand with its customers. By 2004, sales were over $200 million, and there was no stopping Under Armour as it went back to its roots and became the official outfitter of the University of Maryland – the place where the idea of the company was born and shaped just 8 years ago.

Here Comes The IPO

Under Armour went public in November 2005 by listing on Nasdaq, raising $153 million and becoming the first U.S. based IPO in almost five years to double on the very first day of trading. The capital enabled the company to diversify its portfolio and expand quickly.

The very next year, Under Armour began offering footwear, and it let the world know that it's launching its first line of football cleats with its "Click-Clack" advertisement, which resonated with the football players worldwide. It was an instant success as within one year, Under Armour captured 23 percent share of the market and became the official footwear supplier to the NFL. Late next year, in 2007, Under Armour opened its first brand house retail store in Westfield Annapolis mall in Annapolis, Maryland.

In 2008, Under Armour launched its highly anticipated performance trainers announcing it through its first Super Bowl Commercial, marking its entry into the athletic footwear industry. In 2009, Under Armour went a step ahead and launched its performance footwear line, striding into the running category. Moreover, the same year, Cal Ripken Jr – a baseball Hall of Famer – established an alliance that paved the way for Under Armour to have a significant presence at various events, including Cal Ripken World Series and minor league Aberdeen IronBirds. Under Armour also reportedly sponsored the reality T.V. show Duck Dynasty and went out of its way to show support to a controversial cast member, Phil Robertson.

Reaching The $1 Billion Milestone

Meanwhile, the company went on its merry way to open new stores and factory outlets in 39 states within the U.S. and also doubled down in expanding to Canada and China. Other than Baltimore, Under Armour also established offices in renowned cities around the globe, right from London in the U.K. and Amsterdam in the Netherlands to Shanghai in China and Paris in France, among many others.

The company signed Tom Brady, arguably one of the greatest athletes in the world, in 2010. It proved to be critical for the company's continuous success in the years to follow. 

By 2010, Under Armour was a name that needed no introduction. The company had quadrupled its revenue in just five years and surpassed $1 billion in sales – not too bad for a company that was just launched 14 years ago in a basement.

Key Takeaway 2: Create Your Own Pathway

Under Armour quickly figured out what works for it and what doesn’t. Once it did that, the company stuck to its guns – launching new innovative products focused on enhancing performance, expanding its network of stores and footprint within the U.S. and abroad, and leveraging the power of marketing and advertising to get through to its customers.

These simple strategies delivered results and helped Under Armour reach the monumental $1 billion mark within five years of launching, becoming a force to be reckoned with in the athletic-apparel industry.

From 2011 Onwards To Today

In 2011, Under Armour, thanks to its innovation as well as Research and Development (R&D), developed Charged Cotton – a fabric that was very much like cotton in terms of softness and comfort it provided but dried way faster than cotton. The company also collaborated with Zephyr Technology to develop E39, a health sensor-laden shirt that was also used in the NFL combine.

The next year, Under Armour launched the ultimate sports bra. Having talked to hundreds of athletes and tested thousands of prototypes, Under Armour developed the perfect product for women. The high attention to detail and commitment to enhance the performance of athletes was laid bare with the company’s innovative approach of constructing each cup size to offer unparalleled support and comfort.

Continuing to innovate and offer even better-quality products, Under Armour launched ColdGear Infrared in 2013. It featured the best insulation system – a soft thermo-conductive lining that absorbed and retained body heat, allowing athletes to stay warmer without any additional weight.

Becoming A Tech Company

In the same year, Under Armour made the landmark acquisition of MapMyFitness for $150 million, stepping up its digital health game to create the ultimate digital community for all athletes. In its quest to craft an elevated training experience for athletes and help them improve, Under Armour understood the importance of embracing software, harnessing the power of digital, and acquiring data. Although slightly late to the fitness tracking space, by 2013, Under Armour was a company on a mission to digitize and modernize. By acquiring MapMyFitness, Under Armour aimed to become the best digital training experience provider and mobile fitness platform, encouraging people to lead healthier lifestyles.

In 2014, Under Armour also launched Speedform Appolo, a running shoe tailored to offer speed and comfort. With the tagline “This is what fast feels like,” Under Armour announced that it was well and truly a footwear brand eager to offer the best to its customers. By signing the super-model Gisele Bundchen and Ballerina Misty Copeland in 2014, Under Armour laid bare its strategy to expand the brand to women. 

The company also won the contract to become the official apparel and equipment provider to the University of Notre Dame. By 2014, Under Armour was bigger and better than ever with $3 billion in annual sales, surpassing Adidas to become the best-selling sports apparel brand in the U.S.

The very next year, Under Armour acquired MyFitnessPal, the calorie and nutrition counting app maker, for $475 billion in order to expand its digital platform into online fitness communities and, Endomondo, the free GPS-based tracking app maker for $85 million, augmenting its digital offerings.

With the three acquisitions of MapMyRun, MyFitnessPal, and Endomondo, Under Armour creates the world’s largest digital fitness and health community. Having already revolutionized the way athletes dress, Under Armour was now changing the way they live. The idea behind the acquisitions was to build a social community and encourage physical activity. Given that the community would be exposed to the Under Armour brand, it would help drive sales for athletic apparel, footwear, and accessories.

Under Armour also launched the UA Record app that offered everyone, everywhere, the opportunity to proactively manage their health and fitness. The app allowed the syncing of thousands of fitness tracking devices and apps onto its open platform and created a visual and user-friendly dashboard.

Partnerships Driving Growth

Having already signed NBA superstar Stephen Curry in 2013, Under Armour launched the Curry shoe line after he became a two-time NBA MVP. The Curry One shoes were an instant hit, and the sales of his shoe began driving the brand forward. From this point onwards, Curry was the face of the brand to the point that the soles of his shoes had a huge impact on the stock price. That was not all. Under Armour also signed a marketing deal with the legendary Muhammad Ali.

During the same time, Under Armour collaborated with HTC and IBM in a bid to embrace technology and data to deliver additional value to its customers. Furthermore, it partnered with American Soccer League (NASL), UCLA, and Major League Basketball (MLB).

In 2016, Under Armour launched its first-ever smart shoe, the Speedform Gemini 2, with a built-in sensor to track and store data pertaining to duration, distance, and splits, providing athletes an exceptional device-free running experience. The next year, Under Armour, signed PGA golfer Jordan Spieth, who later on launched his own golf shoe line with a shoe named Spieth One.

The following year, Athlete Recovery Sleepwear was launched, inspired by Tom Brady. It outlined the brand’s innovative capabilities and commitment to offer holistic performance-enhancing apparel. The advanced sleep system that Under Armour developed helped athletes recovered faster and led to a better quality of sleep. The soft inner fabric with bioceramic print absorbed heat and reflected infrared energy back to the skin, enabling athletes to rest and win – time and again.

Carrying on its innovation spree, Under Armour launched UA HOVR in 2018. With a revolutionary pinnacle cushioning system, the shoe not only absorbed impact but provided the additional burst of energy to keep athletes going. In the same year, Under Armour signed Joel Embiid, Philadelphia 76ers center, to a sneaker endorsement deal.

Under Armour Fallen Into A Bit Of A Rut

In late 2019, Kevin Plank announced that he would step down in 2020, and Patrik Frisk, the company’s COO, would take over as the CEO.

Amid declining sales, the Covid-19 pandemic posed further challenges to the company. However, with agility, relentless focus, and adoption, Under Armour managed its way through the uncertain times. With consumers embracing at-home workouts and outdoor runs, Under Armour continued to provide them with the products they needed. Ranging from the Project Rock collection, UA HOVR Machina, Phantom 2, and Breakthru footwear offerings to the Meridian pant, Infinity sports bra, and award-winning UA Sports Mask, Under Armour made the most of the opportunities that came its way. It also launched the Curry Brand, strengthening the partnership with Stephen Curry to deliver a suite of quality products such as the Curry 8 basketball shoe. Moreover, whilst prioritizing the safety and health of its employees, Under Armour launched the North American e-commerce platform in time to reap the benefits of the boom in e-commerce during Covid-19. As part of a restructuring effort, Under Armour divested MyFitnessPal and discontinued Endomondo platform, the two acquisitions it made back in 2015. The primary reason for divesting and discontinuing it’s two main platforms was that Under Armour wanted to simplify and narrow down the focus of its brand on its target customer. At the same time, Under Armour made it a point to throw all its weight behind the MapMyFitness platform, which includes MapMyRun and MapMyRide, making it the essential element in its digital strategy just as the connected fitness segment was trending.

In addition to this, the company, which was found in a rock and hard place with critics saying that its performance-focused products led to its downfall and that the company should have embraced athleisure, was not paid any heed to. In fact, Under Armour doubled down on targeting its core customer – the focused performer – and stated clearly time and again that it won’t budge from its commitment to make athletes better and empower those who strive for more.

Key Takeaway 3: Innovate & Explore New Avenues Of Growth

By any stretch of the imagination, Under Armour was an established brand by 2010, and it looked like it was only getting started. Thanks to continuous innovation as depicted by the invention of Charged Cotton and new products such as ColdGear Infrared, Speedform Gemini 2, and Athlete Recovery Sleep Wear, among many others, Under Armour kept on setting the bar higher and offer valuable products to its customers. All this while, Under Armour acquired promising companies to form a digital ecosystem, transforming the way people live. Coupled with collaborations with the Bradys and Stephen Curry, Under Armour leveraged the star power to augment its position.

2015 onwards Under Armour began declining as athleisure became the trend. However, rather than give up what the company stood for, Under Armour enhanced its focus on its target audience and strived to provide products that its customers could use to become better performers. Moreover, the company stood firmly in the face of adversities and took the difficult yet much-needed steps of restructuring and change in management to bounce back.

The Under Armour Way Of Doing Business

At the heart of it, Under Armour creates state-of-the-art products designed and developed to utmost protection to elevate the performance of athletes. That’s not all. Under Armour also leverages digital health and fitness apps to connect, gather insights, and drive performance. It wouldn’t be wrong to say that over the years, Under Armour has made the switch from being an apparel and footwear company to a tech company.

All great companies stand up for what matters and make it count. Under Armour is no different. It’s committed to people, practices, and places, striving to make them all better in one way or another. To craft change around the globe, Under Armour has set high standards and implemented effective strategies and strong programs.

Under Armour has closely witnessed the needs and preferences of users evolving. With handheld technology and the desire to embrace a healthy as well as active lifestyle, users navigate the physical and virtual worlds effortlessly. This has led Under Armour to transform itself digitally to offer meaningful value to its target audience.

Gone are the days of being a shirt and shoe company. Under Armour has adopted a digital innovation strategy aimed at connecting athletes’ apparel and devices, collecting data to derive essential insights in order to boost the overall performance. In addition to this, the company has embraced an omnichannel approach to offer a holistic customer experience while creating one of the world’s biggest sporting communities.

By placing the brand at the center of digital customer experience and not just focusing on selling the products but creating a community to connect and empower people, Under Armour changed the game altogether.

Review & Reform

Post-2015, there has been constant restructuring within the company happening to this day. The company is focusing on its core offerings and target audience – the performer – to achieve a competitive advantage and become the go-to choice.

The company has made the difficult decision to let go of long-term contracts such as sponsorships and endorsements to prioritize upper-funnel marketing to build awareness and recover lost ground.

It was evident in the “The Only Way is Through” campaign, which later became “Through This Together” as the Covid-19 pandemic raged the world. Rather than marketing to sell products directly, Under Armour is now focusing on the brand experience it offers.

A Brand For All

For a while, Under Armour seemed to have lost it. Deviating from its roots, the company was at a crossroads. With the athleisure trends becoming mainstream, Under Armour was left behind by solely focusing on performance. Critics were hard at the company, and sales were plummeting along with the stock price. However, Under Armour did some soul-searching and reiterated that its target audience is indeed the athletes looking to enhance performance and people wanting an active lifestyle. This is expected to bode well for the company going forward as nothing is worse than a brand unable to figure out what it does and who it serves.

Finally, Under Armour has also come a long way from portraying a macho and aggressive feel that did not include women to a great extent. Now, the brand has well and truly adjusted its brand image and caters to women around the world.

Philanthropy

Under Armour envisions a world in which everyone, everywhere, can reach their peak performance and aims to help people break through the barriers bogging them down. The company understands that it can make a lasting impact through coaching skills, education, mentorship, and service. From supporting Soccer Without Borders – an organization using sport to serve immigrants, refugees, and asylees – to lending a helping hand to the brave men and women committed to protecting all, Under Armour leaves no stone unturned in making a positive impact in the community.

Diversity, Equity, & Inclusion

In a world mired by racial violence, civil unrest, increased division, and xenophobia, Under Armour stands firmly for equality. The company strives to build an equitable workplace and support the communities it is a part of. Having set clear-cut goals for improving the diversity of talent at Under Armour, making the workplaces safe and inclusive for all, and supporting black communities. Continuous efforts by the company earned it recognition by helping it bag the Diversity Best Practices Award and CEI Best Place to Work Award in 2020.

Sustainability

Best performance on the cleanest Earth possible – that’s what Under Armour wants to achieve. Going the extra mile to embrace ethical, efficient, and sustainable ways to safeguard the planet, Under Armour is continuing to set the bar higher. In addition to making a better world, Under Armour focuses on creating a better world for all. From responsible sourcing and collaborating with multiple partners throughout the supply chain to investing in cleaner and greener operations that produce less waste and lower the carbon footprint, Under Armour embraces sustainable ways of doing business. The company understands that sustainability begins at home and leads the way to sustain the environment for future generations to come.

Key Takeaway 4: It’s Never Too Late

Sure, things haven’t worked out as Under Armour hoped that they would. However, Under Armour is currently transforming and building back better. With increasing focus on its core customer, leveraging digital channels to derive the growth, and solving the audience gap to cater to women, Under Armour is going in the right direction.

The company has made the bold move to cut back on conventional marketing strategies and embrace top-of-the-funnel marketing and personalized marketing to enhance brand awareness and become the brand of choice. All this while, the company remains committed to sustainability, philanthropy, and diversity, equity, and inclusion to make the world a better place.

Under Armour Today & Key Strategic Takeaways

Under Armour has come a long way. From an idea in the late 1990’s to a brand that’s recognized and demanded around the globe today, Under Armour ushered a new era in the athlete apparel, footwear, and accessories industry. Making innovative products to enhance performance is the core DNA of Under Armour, and the company has stayed committed to its goal through thick and thin. The company is going through a transformation currently and well and truly on its way to bouncing back better than ever before.

Key Strategic Takeaways

Cater to the pain points of your customers.

Is your product or service solving the problems faced by your customers and providing additional value? If yes, then you are in business. If not, then it's better to come with another solution. Under Armour understood this from the very beginning. The first product of the company was a short-sleeved t-shirt made to be worn in warm weather. It helped athletes stay light and dry, enhancing their performance. No wonder the company's initial customers came back with glowing reviews and even asked: Do you make shirts in long sleeves? Do you make clothing for cold weather? Do you have apparel for sports other than football? Do you make apparel for women? At that point, Under Armour did none of these things, but the brand went back to the drawing board and catered to its customers' needs and preferences, giving them exactly what they wanted.

Standout By Resonating With Your Target Audience

Connecting with the customers on a deeper level has always been the specialty of Under Armour. After all, how else could the company carve out a pie for itself in the Nike and Adidas dominated athletic apparel and footwear industry? From offering quality products such as HeatGear and ColdGear that struck a chord with its customers, starting a chain of word-of-mouth marketing that propelled the brand to launching unique advertisements, ranging from the ESPN ad in 2000, the "Protect this House" ad in 2003, and the "Click-Clack" ad in 2006, among others, Under Armour always strived to always connect with its customers, and its efforts paid off. That's not all. The company also made strategic collaborations with the right celebrities such as Tom Brady and Stephen Curry, among others, building its brand following. No wonder, Under Armour kept growing exponentially, and its customers became its biggest advocates.

Innovate & Experiment Come What May

"The Times They Are a-Changin." Under Armour understands this better than most companies out there. This is why it continues to launch new innovative products, delved into new markets of footwear and accessories after it started off with apparel, and expanded internationally. That's not all. Under Armour also embraced a digital strategy in 2013, realizing the importance of creating a community, harnessing the power of technology and data to improve lifestyles. Under Armour even makes new collaborations as a way to further its brand appeal and visibility and never backs down from taking bold steps. Has it all worked every time? No, absolutely not. But it has made sure that Under Armour continues to progress and reinvent itself to cater to the ever-evolving customer preferences and market dynamics while gaining a competitive advantage.

Persevere Through The Difficult Times

Setting up and running a business is not easy. Kevin Plank learned this the hard way. He invested his savings, racked by credit card debt, worked from his grandmother's basement, sold the apparel from the trunk of his car. That's not all. He had industry giants breathing over his neck trying to run him out of business, the company's million-dollar acquisitions of MyFitnessPal and Endomondo didn't work out as planned, the share price tanked post-2015, the company missed out on the athleisure trend, there was negative publicity with the company almost written-off, Kevin had to step aside and let Patrick Frisk take over as CEO, there was painful, but necessary structural changes with layoffs, and the Covid-19 struck a blow to the company as well. The challenges were never-ending throughout the company's 25 years in business. However, at no point did the company give up. It learned from its mistakes, stuck to its guns, and rather than adopt a new strategy altogether, it increased its focus on its core customer and goal of enhancing the performance of athletes. The company continues to transform itself by taking the difficult yet necessary steps to bounce back, and that is a testament to it's never-give-up attitude.

Brought to you by:

Under Armour

By: Rory McDonald, Clayton M. Christensen, Daniel West, Jonathan E. Palmer

After twenty years of growth unprecedented in the sports apparel industry, Under Armour finds itself with a new record to beat: making the leap from $5 to $10 billion in sales - a feat only…

• Length: 27 page(s)
• Publication Date: Jan 9, 2018
• Discipline: Strategy
• Product #: 618020-PDF-ENG

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After twenty years of growth unprecedented in the sports apparel industry, Under Armour finds itself with a new record to beat: making the leap from $5 to $10 billion in sales - a feat only accomplished to date by competitors Nike and Adidas. At the heart of this challenge is how Under Armour can maintain its brand's authenticity while adding new products that fuel future growth. The case traces the evolution of Under Armour's brand and describes how the company chose to extend or not extend its brand into adjacent categories and markets in the past. Now Under Armour needs to decide on their next steps. Should the company focus on its core markets? Should it stretch the brand into more adjacencies? Or should it consider something more radical, like app-related sales through subscriptions and wearable technologies?

Learning Objectives

How can the performance apparel company move into unfamiliar market segments--without losing touch with athletes?

Jan 9, 2018

Discipline:

Industries:

Sports apparel

Harvard Business School

618020-PDF-ENG

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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 SWOT Analysis and 4 Recommendations

Our Under Armour SWOT analysis identifies 10 strengths, 12 weaknesses, 15 opportunities and 12 threats for the sportswear company.

Hailing from Baltimore, USA, Under Armour (started in 1996) is a company that manufactures footwear, sportswear, and casual apparel. It has also created various fitness apps to help people stay healthy.

Under Armour became a multibillion-dollar brand under the leadership of Kevin Plank, the founder and CEO from its inception until 2020, when the COO Patrik Frisk replaced him, only to return as CEO in 2024. The company initially gained recognition for its moisture-wicking performance apparel designed to keep athletes cool and dry during exercise.

Under Armour has had to shut down stores because of the COVID-19 pandemic, which has been a massive blow for them, as it has been for many businesses. As of 2024, Under Armour, Inc. continues to position itself as a major player in the sports apparel and equipment industry.

We’ll work out an Under Armour SWOT analysis to see where it is standing but first, let’s understand what a SWOT analysis actually is. 

Lookout; the FBI is after you! Just kidding, no need to get your knickers in a twist; you’re safe.

In a SWOT analysis, the components are divided into internal and external factors. Strengths and weaknesses are considered internal factors because they are inherent to the company itself and can typically be directly managed or influenced by the organization. You can learn everything you need to know about this strategic tool on our dedicated page for SWOT analysis .

Let’s now see where Under Armour falls based on this analysis.

Under Armour Strengths

Every SWOT analysis begins with a list of strengths . The strengths below showcase Under Armour's capacity to leverage its brand, innovation, and strategic market moves to maintain a strong position in the competitive sports apparel market.

Brand Recognition and Loyalty

Under Armour has successfully built a strong brand recognized globally for its innovation in performance apparel. The brand loyalty is evident in its consistent customer base, particularly among athletes.

Innovative Products

Innovation is a core strength, with the company regularly introducing new fabrics and technologies, like their moisture-wicking fabric and HeatGear clothing lines, which keep athletes dry and comfortable during workouts.

We have a strong appreciation for Under Armour's marketing strategies, which always stand out from the clutter. The core strength of this brand is the revolutionary T-shirts they manufacture, which are comfortable, light, and very resistant to sweat, perfect for athletic people who like to stay fit.

Diverse Product Range

Under Armour offers a broad array of products, including sports gear, footwear, and casual apparel, which appeals to a wide demographic, from professional athletes to casual gym-goers.

Strong Celebrity Endorsements

The company has a strong roster of endorsements from high-profile athletes and celebrities, which enhances its visibility and appeal.

Strategic Partnerships and Sponsorships

Under Armour has secured key partnerships with sports teams and educational institutions, which not only broadens its market reach but also solidifies its status in the athletic community.

Global Presence

The coolest thing about the brand is that it has managed to have a global presence with its key locations in North America, Asia Pacific, EMEA, and Latin America. With operations in numerous countries, Under Armour has a substantial international market presence that helps diversify its revenue streams and reduces dependence on any single market.

E-commerce Strength

The company has a robust e-commerce platform that complements its brick-and-mortar stores, making its products easily accessible worldwide.

Supply Chain Efficiency

The Under Armour business model has managed to survive and prosper amongst competition because of the brand’s diverse distribution channels, portfolio, and exceptional quality clothing.

Under Armour has developed an effective and responsive supply chain, which helps in minimizing costs and adapting quickly to market changes.

Community and Social Engagement

They actively engage in community initiatives and sports programs, which boosts their brand image and customer loyalty.

Commitment to Sustainability

Increasing focus on sustainability, with initiatives aimed at reducing environmental impact and promoting sustainable practices, aligns with the growing consumer preference for eco-friendly products.

These strengths have eventually paved the way for Under Armour to be a step ahead of the competition in the sports apparel industry. Now that the company has gone digital by creating its fitness apps, it can claim to be the biggest fitness company globally.

Under Armour Weaknesses

Identifying weaknesses in Under Armour's business strategy and operations provides insights into areas where the company might be vulnerable or lagging behind its competitors. Moving to the second section of our SWOT analysis, here are twelve weaknesses that Under Armour might be facing:

High Dependence on North American Market

Despite its global presence, a significant portion of Under Armour’s revenue is still heavily reliant on North American sales, exposing it to risks from regional economic downturns.

Limited Diversification

Compared to competitors like Nike and Adidas, Under Armour has less diversification in sports offerings and lifestyle products, which can limit market appeal. Whereas the Under Armour target market consists of both men and women, they don’t seem to be the number one choice for women athletes. There aren’t many options to customize Under Armour apparel and accessories, either.

Inventory Management Issues

Under Armour has faced challenges with excess inventory in the past, which can lead to increased operational costs and reduced profitability due to markdowns.

Pricing Strategy

The brand is positioned as a premium sports apparel provider, which might limit its customer base, particularly in cost-sensitive markets.

Intense Competition

Under Armour faces fierce competition from established brands like Nike, Adidas, and newer entrants, which consistently pressure its market share and pricing.

Weak Performance in Footwear

Although Under Armour has expanded into footwear, it has struggled to gain a significant market share compared to its apparel products, partially due to lower consumer ratings on performance and style.

Supply Chain Complexity

Global supply chain disruptions have exposed vulnerabilities in Under Armour’s logistics and distribution strategies, impacting its ability to meet demand efficiently.

Inconsistent Quality Across Product Lines

There have been occasional complaints about inconsistent quality and durability in some product lines, which can hurt the brand’s reputation.

Retail Store Performance

The physical retail sector, where Under Armour has significant investments, is increasingly challenging with high operational costs and shifting consumer preferences towards online shopping. They already had fewer physical stores worldwide, to begin with, compared to competitors such as Nike, but this recent pandemic has made things much worse for the company.

Marketing Missteps

Some of Under Armour’s marketing campaigns have faced criticism for not resonating well with target audiences, reflecting a potential misalignment with market dynamics and consumer preferences.

Management Turnover

The company has experienced significant executive turnover in recent years, which can lead to strategic inconsistency and hinder long-term planning.

Data Security Concerns

Like many retailers, Under Armour has faced issues with data security, specifically a significant data breach in its MyFitnessPal app, which can undermine consumer trust.

Under Armour Opportunities

Under Armour has several opportunities to leverage for growth and improvement. As we move to the third part of our SWOT analysis, here's a detailed look at 15 opportunities that could be impactful for their strategy:

Expanding Global Footprint

By increasing its presence in emerging markets like Asia and Latin America, Under Armour can tap into new customer bases and reduce its dependency on the North American market.

Women's and Kids' Athletic Wear

The market for women's sports apparel and athleisure is growing. Under Armour could expand its offerings in this segment to meet the rising demand. They can also work on marketing strategies to attract female consumers to whom they cater but somehow don’t appeal to, not as much as they could, at least.

The Under Armour target market can easily be expanded to include a kid’s range, too. They also can diversify their product line and venture out into different types of sports to grow even further.

Sustainable Products

Increasing consumer awareness and demand for eco-friendly products present an opportunity for Under Armour to innovate and lead in sustainable sports apparel.

Footwear Innovation

Investing in research and development to enhance the performance and style of its footwear line could help Under Armour capture more of this lucrative market.

Digital Transformation

Enhancing digital platforms for a better customer experience and integrating advanced technologies like AI for personalized products and services can boost sales and customer loyalty.

Health and Wellness Trend

Capitalizing on the growing trend towards health and fitness, Under Armour can offer more health-oriented products or services, such as fitness apps or wellness programs.

Strategic Acquisitions

Acquiring smaller brands or startups with innovative technologies or products could allow Under Armour to broaden its product line and access new markets.

Partnerships with Esports

The esports industry is rapidly growing. Under Armour could forge partnerships with esports teams or tournaments to market its products to a younger, tech-savvy audience.

Augmented Reality Shopping

Implementing AR in shopping apps to allow customers to try products virtually could enhance the online shopping experience and increase sales.

Collaborations with Designers

Limited edition collaborations with well-known designers or celebrities could generate buzz and appeal to a broader consumer base.

Expansion into Lifestyle Apparel

Broadening its product range to include more casual and work-from-home apparel could capture more of the everyday wear market.

Smart Clothing Technology

Investing in the development of smart clothing that can track health metrics could position Under Armour at the forefront of technological innovation in sportswear.

Increased Focus on Retail Experience

Revamping retail stores to offer unique in-store experiences can attract more foot traffic and enhance brand loyalty.

Community and Sports Programs

Increasing involvement in community sports programs and school partnerships can improve brand visibility and foster customer loyalty from a young age.

Leveraging Social Media

Enhancing social media engagement and influencer partnerships can effectively reach and engage with the younger demographics. The “fit” lifestyle is becoming more and more popular with each day, so it is an industry full of potential for Under Armour. With fitness enthusiasts and influencers increasing daily all over social media, the fitness world continues to grow without any plans of stopping.

Under Armour Threats

In the context of a SWOT analysis, recognizing potential threats is crucial for Under Armour to proactively mitigate risks. In the final section of our SWOT analysis, here are twelve significant threats that the company may face:

Intense Market Competition

Under Armour competes with larger, more established brands such as Nike and Adidas, which have greater resources for marketing, innovation, and global presence. Their core competency of sweat-proof T-shirts is no longer specific only to this brand; the competition has caught up, and this type of design in apparel is available in other brands, often at better prices too.

Economic Downturns

Global economic instability, like recessions, can reduce consumer spending on sporting goods and apparel, impacting Under Armour's sales.

Currency Fluctuations

As a global retailer, fluctuations in currency exchange rates can affect profitability and pricing structures in international markets.

Counterfeiting

The presence of counterfeit products can harm Under Armour’s brand reputation and reduce its market share.

Changes in Consumer Preferences

The sportswear industry is trend-sensitive; a shift in consumer preferences away from Under Armour’s core product offerings can lead to reduced sales.

Supply Chain Disruptions

Events like natural disasters, pandemics, or political instability affecting countries where Under Armour manufactures its products can disrupt supply chains.

Regulatory Changes

New regulations related to trade tariffs, import-export controls, and manufacturing standards can increase costs or limit market access.

Technological Disruptions

Failure to keep up with technological advancements in product development and consumer engagement could leave Under Armour behind its competitors.

Retail Channel Disruptions

The shift towards online shopping can threaten Under Armour's physical retail business model, necessitating higher investments in digital transformation.

Data Security Risks

As Under Armour expands its digital footprint, it becomes more susceptible to cybersecurity threats, which can compromise consumer data and trust.

Labor Practices Scrutiny

Like many global brands, Under Armour could face scrutiny and reputational damage over labor practices in its supply chain if not managed ethically.

Health and Fitness Trends

Changes in health and fitness trends can impact the demand for specific types of apparel and equipment, potentially disadvantaging Under Armour if it fails to align with these trends.

4 Recommendations based on our Under Armour SWOT Analysis

Under Armour has been a player in the sports industry for decades now, and they have seen a very long period of constant highs.

Based on the comprehensive SWOT analysis of Under Armour, here are four strategic recommendations that could help the company build on its current strengths, address pressing weaknesses, seize new opportunities, and better prepare for potential threats:

• Enhance Global Market Diversification : To reduce its dependency on the North American market and mitigate risks associated with economic fluctuations, Under Armour should aggressively expand its footprint in emerging markets. This could involve localized marketing strategies, partnerships with local athletes, and expanding distribution channels to cater to regional tastes and preferences. This approach not only spreads risk but also taps into new revenue streams. According to reports , Under Armour's international segment more than doubled over a four-year period in late 2023!
• Invest in Footwear and Women’s Segments : Given the opportunities in the growing markets for women's sports apparel and footwear, Under Armour should focus on diversifying and enhancing its product offerings in these categories. This could involve investing in targeted marketing campaigns, collaborating with fashion influencers, and prioritizing research and development to innovate products that meet specific demands in these segments.
• Accelerate Digital Transformation and E-commerce Initiatives : To address the shift towards online shopping and compete effectively with rivals who are advanced in digital capabilities, Under Armour should enhance its e-commerce platforms. Improving user experience, employing advanced data analytics to personalize marketing efforts, and integrating augmented reality features to try products virtually can enhance online consumer engagement and sales.
• Strengthen Supply Chain Resilience and Sustainability Practices : In response to threats from supply chain disruptions and increasing consumer demand for sustainable products, Under Armour should invest in making its supply chain more resilient and environmentally friendly. This could include diversifying manufacturing locations, investing in sustainable materials and processes, and enhancing transparency in labor practices. Such initiatives can also serve as a marketing tool to boost the brand's image among eco-conscious consumers.

This proactive approach will support the company's long-term growth and stability in the competitive sportswear market.

Despite the potential threats faced by them, especially in light of the pandemic, we believe Under Armour still has the potential of becoming a key competitor for other similar brands, provided they play on their strengths and divulge into the opportunities effectively.

Having now completed the SWOT analysis of Under Armour, here is the analysis of Under Armour's competitors we have conducted here at PESTLEanalysis:

• SWOT analysis of Nike
• SWOT analysis of Puma
• SWOT analysis of Adidas
• SWOT analysis of Lululemon
• PESTLE analysis of the sportswear industry

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