Under Armour IMC Comprehensive Project

Carleigh Lewis EXECUTIVE SUMMARY Under Armour is an international brand which has become synonymous with health and fitness. Providing the best, quality, innovative gear to its consumers, Under Armour is looking to grow into the first choice for all athletes. The purpose of this campaign will be to launch bricks and mortar locations for Under Armour specific lines instead of relying as heavily on partnerships through other retailers. The goal will be to grow brand awareness by 15% across Canada, and ultimately increase revenues. Through a variety of marketing tactics, this integrated marketing campaign will achieve these goals, without causing cannibalization of current products in other retailers. Under Armour has set its eyes on first place, versus the likes of competitors Nike and Adidas. Our unique concept of creating a race which gets consumers actively responding to posts created by Under Armour is a concept which reflects everything Under Armour represents. Through registering online, our account users are able to create a mini profile and also track their place in the eight week competition. Essentially, competitors will provide their personal information, pick a specific item of their choice through their downloadable Under Armour Army app and then they will be sent the location, date and time of the next race. When they show up to the site, they must take a picture and upload it to their account, and then through the GPS tracking system installed in the app, they will be followed and placed accordingly on their final position. On the date of the grand opening of the new Under Armour retail locations, the top five winners of each race with be granted their choice of prize as voted through the app. Combined with a direct mail campaign, out-of-home advertising efforts and some public relations, the stores should experience great success and the site as well. Even if not all of Under Armour’s consumers choose to participate in the events, viral videos and blogs are guaranteed to sprout everywhere, causing a virtual stir in the world of social media.

MARKETING & PROMOTIONAL PLAN MARKET ANALYSIS & SEGMENTATION Geographics Country: Canada Region: Niagara Region Density: Urban and Suburban Climate: Variety of weather, seasonal changes Type of place: Tourist City Demographics Age: 18-30 Gender: Males and Females Family: Students/Adults Education: College/University Ethnicity: Diverse Income: $20,000–60,000 + Occupation: Student, Athlete, Professional Career Psychographics Lifestyle: Achievers, athletically inclined Interests: Sports, working-out, style and trends Religion: All Attitudes: Fit, healthy life-styles, high-class Behavioral Benefits Sought: Status, sex appeal, symbolism, healthy-lifestyle Usage Rate: 3-5 times a week (heavy) Loyalty: Strong Adaptors: Fast adaptors to new products Ways of purchasing: In-store and Online Frequency of purchases: Regular GROWTH POTENTIAL Under Armour is offered in over 25,000 retail stores worldwide. This makes growing the brand that much easier because it is already well known and well adapted. Through selling a majority of their products in North America, it is clear to see there is room for growth and expansion in other countries.

PRODUCT & COMPETITIVE ANALYSIS PRODUCT ANALYSIS Under Armour is in the business of lifestyle athletic apparel, with a range of product offerings, including: Clothing & Apparel The Under Armour line offers a variety of styles and fits that are meant to enhance comfort and mobility, regulate body temperature and improve performance. Their clothing offers a variety of benefits as outlined below: Fit Types

Compression (tight fit)

Fitted (athletic fit)

Loose (relaxed) Heat Gear

Compression t-shirt

Wicks moisture from the body to keep the body cool, dry and light

Different colours and styles Cold Gear

Provides both dryness and warmth in a single light layer

Can be worn under any other garment of clothing

Higher prices than other gear All Season Gear

Worn in changing temperatures and uses technical fabrics to keep the wear cool and dr Footwear Under Armour introduced their line of footwear in 2006 to compliment their existing clothing line. Designed with innovative technology and engineered to maximize the comfort and control of athletes. They have created footwear for the following athletic needs:

Football

Baseball

Lacrosse

Softball

Soccer

Performance training

Running

Basketball

Hunting Accessories Perfectly rounding off their selection with athletic accessories is what ties the brand together. Under Armour supplies the following:

Hats

Sporting bags

Socks

Team uniforms

Sport specific gear: o Baseball o Football o Golf o Running

COMPETITIVE ANALYSIS Competition in this industry is fierce, especially since Under Armour is still a relatively new line compared to more established brands such as Nike or Adidas. Below we have outlined how these big names match up against each other.

NIKE ADIDAS

Product line: Apparel, footwear, accessories, athletic training, and sport focused gear including basketball, football, soccer, running and tennis. Pricing: $60-$200 Community: Use of environmentally preferred materials and they also support community programs worldwide, including:

Bola PRA Frente (Brazil)

Let me Play (China)

The Nike Foundation

Bowerman Track Program Strengths: Nike is a well known brand in Canada which has always developed catchy taglines. They have strong advertising techniques and own multiple branded lines (such as Nike Basketball). Weaknesses: Nike has been attacked in previous years for child labour scandals, and they have also been accused of creating cheaply made products which are slightly over priced. Strategies & Objectives: Nike has increased their advertising and marketing efforts by 6% or $615 million and supported key product launches.

Product line: Apparel, footwear, accessories and sport focused gear including football, running, basketball, tennis and Olympic sports. Pricing: $40-$150 Strengths: An established brand with strong roots in Canada, promoting average prices and a variety of product offerings. Weaknesses: Adidas has recently lost its footing in the athletic industry, but has gained strides in the FIFA world. Their positioning is slowly turning around although it is not as popular of a brand as it used to be. Strategies & Objectives: Adidas tries to keep a core focus on the consumer and also through achieving operational excellence. They remain true, honest and committed to what their lines represent with a focus on being the leading sports brand in the world.

SWOT ANALYSIS

STRENGTHS

Observed as a high-scale brand which is well known and gaining its roots

Quality, innovation fabrics

Diverse manufacturers

Globally branded with multiple retail outlets world wide

Variety of products and styles

Willing to shop globally

Sponsorship of multiple athletes

WEAKNESSES

No current Under Armour specific retail location (they sell through other retailers)

Higher pricing strategy

Limited advertising campaigns

Known for athletic purposes mainly, not as common for casual wear

Positioning in mainly aimed at males

OPPORTUNITIES

Growth and expansion into the Canadian marketplace

Partnership opportunities (ex. GoodLife Fitness)

Expansion opportunities in product lines

Shifts in consumer awareness and health

Advertising and PR opportunities

THREATS

Direct competition with brands like Nike and Adidas

Indirect competition with the likes of other clothing retailers or small chain athletic stores

Weak economic trends

BRAND POSITIONING Through its continual efforts, Under Armour aims to improve the performance of athletes through their clothing and footwear lines, in order to create passion and pursuit through all elements of weather. They aim to be the first choice of athletes whether they are training or competing, and they look to connect with those who understand the benefits and performance of their products. MARKETING OBJECTIVES Within the next two years, Under Armour should assess the potential of introducing multiple stand-alone retail locations in Niagara Falls, Toronto, Monteal, Calgary and Vancouver. Following year one of operations, these locations will aim to increase Canadian brand preference for their products by 15% and from here, subsequent pilot locations will open in other carefully researched areas across the country. MARKET STRATEGY The strategy used to introduce these new stores will work around social media outlets, out-of-home advertisements, public relations and a direct mail campaign to homes within the area. These advertising outlets will be strategically placed where Under Armour’s ideal market would work and play. Advertisements will be displayed in large public areas (malls, arenas, bus stations and stadiums), mail will be sent directly to specifically targeted consumers and Under Armour will also be able to access them through online resources.

MARKETING MIX PRODUCT Under Armour products will stay relatively the same, but in these retail locations we plan to carry a much wider range of items than most Canadian retailers currently offer. This will also create a much larger consumer base for each store, due to the much greater variety. All of the products will be of the same quality and durability that Under Armour is known for. PRICING The pricing for Under Armour products will be competitive with the other retailers that currently carry the lines. Keeping the prices relatively equal avoids complications or cannibalization of Under Armour products at other retailers, while at the same time giving the retail outlet a slight advantage based on selection. Prices will range from $20-$250. PLACE Besides the Under Armour specific retail location, selling predominately through other retailers will still be a priority, as well as online. Under Armour sponsored kiosks will also be present at local sporting events, as well as promotional events (races). The retail locations will be located in large, urbanized areas (Toronto, Vancouver, Calgary, Montreal and Niagara Falls). PROMOTION Promotions will include online advertising (Website, Facebook, Twitter); out-of-home mediums advertisements (mall displays, bus shelters, GO train/bus displays and posters); and direct mail (flyers, mini catalogues and postcards).

MARKETING TACTICS

OOH Displays Direct Mail Website Under Armour Army Challenge

Grand Openings

MAY 2013

JUNE 2013

JULY 2013

AUGUST 2013

SEPT 2012

OOH DISPLAYS These types of displays will go up in the respective communities which will be hosting the actual races. There will be a core focus on billboards and also posters in bus stations in the more urbanized locations, while posters and mall displays will be placed in the rural communities. DIRECT MAIL The direct mail campaign will focus on targeting registered Under Armour fans and also purchasers that currently go to other retailers for their Under Armour clothing. Once a month, these consumers will receive a small postcard in the mail reminding them of the store opening in their area, and then once every three months they will receive a small Under Armour catalogue with products, work out tips and fun athletic event information. WEBSITE The website will act as the hub where everything will circulate back to. This is where the application will be available for downloading once the racing goes live. All of these activities have been timed to maximize the exposure each store gets before they open. Each location will have its own run of direct mail pieces within their city to keep the ads aimed at the surrounding community. The grand openings will happen simultaneously to maximize hype.

PROMOTIONAL OBJECTIVES The goal of this IMC campaign would be to differentiate the Under Armour product line from other brands through advertising mediums such as print, out-of-home, public relations and a direct mailing effort, six months prior to the grand opening of their retail locations. Overall, we would aim to increase sales and brand awareness of Under Armour by 15% throughout the country by the end of the second year of operations. PROMOTIONAL STRATEGIES Using a pull strategy, we will promote the unique retail locations by generating consumer demand through advertising, PR and sales promotions. IMAGE Remaining true to the Under Armour line is necessary. It is important to promote an image which is strong, independent and active, just like the typical Under Armour consumer. ADVERTISEMENTS Marketing efforts and brand awareness will be achieved through the following efforts: Out-of-Home

Mall advertising

Billboards

Hockey sideboards

Bus shelter displays

GO train/bus displays

Street posters and signage Public Relations/Publicity

Sponsoring local teams

Holding a race for a charity in those communities (ex. the Spartan Race) Sales Promotion

Offer early entrance on opening day to Under Armour members who have registered to the site for an online account

Have highlight months featuring special products

Introduce member prices for specific items Direct Marketing

Customized email blasts to registered members

Mobile sale reminders

Interactive consumer website

Mini catalog distribution PROMOTIONAL MIX

The promotional mix will consist of advertising (as outline above), personal selling tactics and sales promotions. Personal Selling

Demonstrations of products in store and at local athletic events sponsored by Under Armour

Knowledgeable sales associates who will be required to run through extensive training in regards to product and innovation offerings

Sales Promotions

Contests or monthly rewards will be offered to Under Armour members

Sponsoring local teams so those athletes will be representing Under Armour equipment and gear

Introducing a loyalty program

CAMPAIGN ELEMENTS CREATIVE BRIEF WHAT’S HAPPENING IN THE MARKET? Today’s consumers have a health-conscious, green and active lifestyle. Training and working out has become a huge part of Canadians daily lives. In 2009, revenues and sales in clothing rose up to $25 billion dollars in Canada, giving brands like Under Armour the perfect opportunity to expand into the market and target these ideal consumers.

WHAT DO WE EXPECT THIS COMMUNICATION TO DO? The advertising and promotional messages will increase brand recognition in Canada and increase the opportunities available to become the leader of sportswear in Canada.

WHO ARE WE TRYING TO REACH? Under Armour appeals to athletes between the ages of 18-30 who enjoy living a healthy, active life style and have a competitive edge.

WHAT INSIGHTS DO WE HAVE ABOUT THESE PEOPLE? These consumers are trend adaptors and strive to stay on the top, making this campaign less challenging. They are already affiliated with the best gyms in their areas and use the best products to improve their performance. They are not necessarily price conscious as they are willing to pay the most to be the best.

THE BRAND HAS A UNIQUE CHARACTER – WHAT IS IT, OR WHAT SHOULD IT BE? The brand’s character is style, agility, comfort and mobility. It should continue with these defining characteristics while emitting an attitude of being the best apparel an athlete can buy.

WHAT SINGLE THOUGHT DO WE WISH TO COMMUNICATE?

Under Armour is the ingredient to a successful, healthy lifestyle. It helps athletes reach their goals by providing mobility, comfort and persistently keeping them at the top of their game.

WHY CAN WE SAY THIS? Under Armour does not create success, but encourages it through its innovative designs and its cutting edge appeal.

WHAT IS THE MOST INTERESTING ASPECT ABOUT THIS PROJECT? Creating a joint society in which Under Armour actually relates to, while bringing it to Canada to sell first hand to consumers. It is a new creative edge, and a fun way to interact with the existing Under Armour fans that currently are not exposed to a wide range of Under Armour products. THE BIG IDEA – UNDER ARMOUR ARMY RACE Billboards, direct mail and social media will be the main sources of communication for this game. Following the same theme, style and tone, each advertisement will contain information regarding the store openings and the contest itself. THE CHALLENGE

1. Consumers will log onto the Under Armour website in order to download a specialized app to their mobile device.

2. As a part of the download, they will be asked to fill out their personal information in order to receive news updates and discounts (which will tie back to the loyalty program). On the site, consumers will also have the opportunity to fill out a mini biography explaining their hobbies and Under Armour preferences. The information required to register will be as follows:

a. Name b. Address c. Phone number d. Email e. Date of birth

3. On the Friday of each week, they will vote on their favourite product from a list updated on their

Under Armour app. After they vote for their product of choice, a race will be revealed. They must do this every Friday, however during the eight week phase in which this game will run, a race may not be revealed every week.

4. When a race is revealed they have to get to the final destination by the given date and time.

5. At the race, they must take a picture of the starting point through the mobile application and then post it to their account. This will register them at the official challenge location and it will also act as a GPS tracking device which follows their movement during the race. Each racer will also be assigned a number based on when their photo was uploaded.

6. When each participant has finished the race, the app will automatically update and inform them of their place.

7. Those who place in the top five of the race will be granted their favourite item which they had voted

on earlier through the Under Armour app. Those who participate in all of the races will also have a chance to randomly be selected and offered one of the items from their votes.

8. The prizes will be handed out at the racer’s local Under Armour store on the grand opening day, with

a special preview for members only. GTA and Niagara store races will occur in Toronto, Niagara, Milton, Oakville and Hamilton. Montreal store races will occur in Beloeil, Lacolle, Marieville, Saint-Denis and Saint-Jacques. Vancouver store races will occur in Bellingham, Chilliwack, White Rock, Ladysmith and Gibsons. Calgary store races will occur in Calgary, Banff, Cochrance, Black Diamond and Canmore. What makes this concept so exciting is that all of the out-of-home advertising and direct mail efforts will entice consumers to flood back to the Under Armour website and register for this event. The Under Armour Army will grow through these active, social media and IMC efforts, increasing product purchases and consumer interaction.

MEDIA PLAN This chart outlines how the spending for this campaign will be allocated.

ACTION DESCRIPTION MONETARY ALLOCATION

Direct mail pieces This will cover the costs associated with sending the postcards once a month for three consecutive months, reminding consumers about the store opening and the event. After the grand opening, the magazines will come into circulation once every three months.

TOTAL: $15,000

OOH advertisements This includes doing bus station signage, one billboard in each urbanized location (strategically placed), mall signage in rural locations and banners for the races.

$2,500 per urban billboard x 5 cities x 2months = $25,000 $900 per suburban billboard x 20 cities x 1 month = $18,000 Additional mall and bus signage roughly estimated at $15,000 TOTAL: $58,000

The Under Armour Army Race The money allotted to this event will cover set-up of the race and also the promotional giveaway that the top five racers will be awarded at the grand opening of

TOTAL: $25,000

their local store. No prize will be valued over $100, allowing Under Armour to control this cost point.

Website and App Development This will cover the design of the app used for the race and also creating new graphics and synching it to the site.

TOTAL: $10,000

GRAND TOTAL: $108,000

DIRECT MAIL STRATEGY The focus for the direct mail campaign will be to create awareness of the store openings and also drive consumers to the website in order to register for the race. The ideal Under Armour customer is active, inventive and eager to explore, so this campaign is specifically targeted to them. Distribution will be based on sign up and account creation through the Under Armour website and app download. PR PLAN The Under Armour Army Race will drive free publicity and spark the interest of those in the respective communities. For the grand opening celebration, we would also post a print ad to clarify date and time.