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Under Armour Campaign Plan

Stephanie Hertl

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EXECUTIVE SUMMARY

MAJOR TARGET AUDIENCES: Under Armour sneakers have two very influential target audiences. Its primary consumers are men between the ages of 25 to 34 who have graduated college with professional and sports related occupations. They have a household income of at least $75,000 and are currently engaged or married.

Under Armour’s second influential consumer of athletic sneakers are men between the ages of 18 to 24 who have attended college or graduated with a degree pursuing occupations in business, management, and finance. They have a household income of at least $75,000 annually and they have never been married.

TIME PERIOD OF CAMPAIGN: One year- (January 2014 to December 2014). Under Armour athletic sneakers are a non-seasonal product. A pulse schedule will be used with emphasis in the last three quarters when weather is warmer and interest is at a peak. A defensive strategy will continue to sell men’s athletic sneakers where Under Armour has had success and where competitors have done well. Offensive strategy will be used by implementing a new advertising medium.

CAMPAIGN SCOPE: Both national and spot advertising will be utilized. Television and magazines will continue to be valuable media in the national promotion of athletic sneakers. Select cities with high television viewership will be used for additional spot television emphasis. The Under Armour campaign will introduce network radio as a new advertising medium.

REACH AND FREQUENCY: Under Armour’s upcoming campaign will have an average frequency of 3.2 and a high reach of 80. Because it is a new campaign, we value awareness and reach. As an image-focused message with low brand share, it is important to have a decent frequency as well. Television and magazines will get this campaign necessary reach and radio will provide a stable frequency.

BUDGET: With a $20,000,000 dollar total budget, our campaign will spend 45% on television advertising, 45% on magazine advertising and 10% on radio. Of the 45% spent on television, 20% will be allocated for network television, 20% will be allocated for cable television, and 5% will be allocated for spot television. The radio budget will be dedicated to network radio.

EXTRAS: What makes this campaign unique is its pulse schedule. In the first quarter, only 2 million dollars of the total budget is spent. In quarters two, three, and four, triple the amount of money than the first quarter is spent. This strategic challenge calls for attention to the spending percentage amounts for each medium in each quarter. The allotted amount for each medium each quarter must compare to the cost of 20 GRPs for each medium.

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SITUATION ANALYSIS

PRODUCT/INDUSTRY ANALYSIS

The Under Armour athletic company was started in 1996 by Kevin Plank. The brand was created by athletes and their first product line was a microfiber T-shirt developed in 1996. Under Armour developed the shirt to hold moisture and keep body temperatures cool during athletic workouts. Their products are made to enhance the performance of athletes around the country. In 1997, college football teams and NFL teams began to wear their apparel. By the year 2000, the company gained huge popularity with law enforcement and military personnel for performance products. In 2003, they were the official supplier of sports gear for the NFL, MLB, and the NHL.

In 2004, Under Armour encountered a problem with merchandise because it did not have a patent. This resulted in a series of competitors like Nike and Reebok cutting deals with major league teams for performance apparel. Under Armour performance apparel has been featured in many films. Their gear has been used in the movie Any Given Sunday, and The Replacements. Under Armour is now widely available in 2,500 retail stores in the Maryland region including all Sports Authority chain stores. Under Armour continues to be a dominant force in performance apparel bringing in 110 million dollars in retail sales. Under Amour has expanded into women’s performance apparel and sports bras.

According to MRI data, 88 percent of adults aged 18 to 49 have used under Armour brand athletic shoes. Out of the total population, an index of 150 is more likely to use the brand in this demographic category. According to reports, performance apparel is the most dominate force along with the sneaker market, which makes about 9 billion dollars annually in retail sales. Under Armour is the most dominant brand in the performance apparel category and its hold a 75 percent share of the market. Under Armour is facing competition with several shoe brands that could potentially cut into market share. One of its biggest competitors is Nike. Nike has been the dominant brand in the sneaker market, making about 13 billion dollars annually.

Under Armour and Nike are competing brands in the market due to their prime athletic shoes. Under Armour makes men’s and women’s running shoes called Spines. Spines are a lightweight sneaker built for athletes who run track. They have a mesh lining which allows the foot to breathe. It has a special design of rubber under the soles for strong ground traction. Other popular athletic shoes in the Under Armour brand are baseball and soccer cleats. As stated, shoe products contain both mesh lining and rotational traction for ground performance.

Under Armour has an edge above the competition because its products focus specifically on athletes and top performance apparel. According to The National Shoe Retailer’s Association Bureau, the footwear industry’s annual revenue is 48 billion dollars a year. Under Armour has direct competition with Nike, Adidas, Reebok, K-Swiss, New Balance, and Converse. A possible market segment for Under Armour would be cross training shoes because this company is known for its mesh-lined athletic shoes.

CONSUMER ANALYSIS

Segments of athletic shoe consumers for brands like Under Armour are synonymous to the athlete’s sport or activity preference. Three common segments of athletic shoe consumers are basketball players, runners or joggers, and hikers. Each of these segments contains a group of people using an athletic shoe that best suit their needs.

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BASKETBALL PLAYER GROUP

Index Pct Down

Age

18-24 237 30.3

Sex

Male 138 67

Education

No College 119 53.3

Occupation

Natural Resources, Construction, and maintenance

118 6.6

HH Income

$40,000-$49,999 122 10.7

Psychographic Profile

Competitive, hardworking, and masculine. They are naturally protectors, providers, and socially recognized. They exercise regularly playing recreational basketball to reduce stress and love trying new things.

They are media savvy and go out of their way to impress people. Family oriented individuals who also work well with new people. Handle stress well and make life seem easy.

RUNNERS/JOGGERS GROUP

Index Pct Down

Age

25-34 125 22.5

Sex

Male 111 53.9

Marital Status

Never Married 111 29.8

Education

Attended College 112 21.7

HH Income

$50,000-$59,999 142 11.7

Psychographic Profile

Successful, independent men that put great energy into work. Other people may be intimidated by their drive. Owns at least one dog with which they often go jogging with. Have a close group of friends and neighbors they can depend on.

Volunteers in the community with available free time.

Occasionally seeks extreme activities others might not try.

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HIKER GROUP

Index Pct Down

Age

45-54 116 22.5

Sex

Male 118 57.1

Marital Status

Now Married 117 63.1

Child Age

12-17 years 144 28.8

HH Income

$75,000-$149,999 161 45.6

Psychographic Profile

They have remained in a steady job and been promoted several times. Living comfortably, they look for new activities and hobbies to take part in. With gown kids and a soon-to-be “empty nest,” they look for any moment to enjoy the outdoors.

Frequently go camping and hiking with both friends and family. Love exploring and watching animals in their natural habitat. May occasionally go hunting. Content individuals who enjoy the quiet.

COMPETITOR ANALYSIS

CMR lists several other athletic sneaker brands as direct competitors to Under Armour: Adidas, Asics, Brooks, Converse, Keds, K-Swiss, New Balance, Nike, Puma, Reebok, Saucony, and Vans. These brands all have shoes for specific athletic purposes. Their cleats for baseball, softball, and soccer are a direct competition for Under Armour sneakers. Serious athletes may prefer or be required to wear a competitor’s sneaker instead of an Under Armour sneaker. Several of these brands are quality hiking, golf, basketball, running, fitness, cross training, tennis, and walking shoes. If a consumer has a specialized sport, they could easily be drawn to one of the listed competitor brands instead of choosing Under Armour.

Indirect competition includes several brands from segments of general shoes. Casual shoes, lower class sneakers, or work boots that are not for the avid athlete; however, may be seen in a pick-up game, recreational sport, or other activity. These brands include: Air Walk, Avia, Easy Spirit, Ecko, Fila, Jordan, Merrell, Rockport, Sketchers, Timberland, Vibram, Gravity, Aerosoles, ALDO, Born, Coach, Cole Hann, Crocs, Florsheim, Johnson & Murphy, Keen, Kenneth Cole, Naturalizer, Nina, Nine West, Sperry, Stacy Adams, Steve Madden, and UGG.

Under Armour spends its money advertising in magazines, network television, spot television, and cable television. More than 90% of its budget for men’s sneakers in 2011 was spent in magazines and almost 80 percent of advertising for both men and women’s sneakers was spent in cable television. Most of the competition has spread advertising between the same media sources. The only two brands slightly differing are Adidas and Asics. Adidas men and women’s sneakers spent 18.5% of its budget in Syndication and 12.3% of the budget for Asics men and women’s sneakers was spent on outdoor advertising.

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Reebok sneakers for women have the largest share of voice for magazine advertising in 2011. New Balance sneakers for both men and women have the largest share of voice for newspapers, while Asics sneakers for men and women have the largest share of voice for outdoor advertising. Nike men’s sneakers have 36.9% share of voice in network television and Puma women’s sneakers have 50.2% share of voice in spot television. Adidas sneakers for men and women have 100% share of voice in syndication and Nike men’s sneakers have 20.4% share of voice in cable television. New Balance sneakers for men and women have the only share of voice in national spot radio. Under Armour has average to nonexistent share of voice in each medium.

ADVERTISING AND MEDIA ANALYSIS Under Armour is a relatively new product founded in 1996. A line of sneakers was launched in 2006. Innovation is Under Armour’s core. CURRENT ADVERTISING CAMPAIGN PLAN -“I Will” is the main campaign that launched in February 2013 -Moved from “Protect This House”

-Still uses “Protect this House” -Desires to focus more evenly on both sexes -Spending 20% more than the previous years’ $12 million budget for “I Will” Campaign -Utilizes Athletes: Cam Newton, Canelo Alverez, Bryce Harper, Sloane Stephens, Kemba Walker -Wounded Warrior Project, NFL, American Breast Cancer Foundation -Themes: Under Armour shoes are made best for athletes -Positioning Strategy: The Under Armour brand improves the athlete. It is not only a comfort, but a tool for success. Under Armour is different from competitors because it helps push the athlete farther and develop new innovations in sports. It uses sports science for athletes to achieve new and advanced records, talents, and capabilities. -Problems: Weak global presence. Targets primarily east coast men and relies heavily on sales via Dick’s Sporting Goods, Sports Authority. CURRENT TARGET AUDIENCE: Collegiate and professional athletes, and those who partake in athletic lifestyles -East Coast -Both men and women, more strongly men -Basketball sneakers: men 18-24 -Running sneakers: men 25-34 -Brand loyalty for customers is high. They enjoy wearing the brand so the public can see the logo. CURRENT MEDIA STRATEGIES: -Under Armour (2,716.9) is spending significantly less than top competitors Nike (4350.8) and Asics (4,888.5) for advertising men’s and women’s shoes. -Vehicles: broadcast media, new media -Media Mix: -Using 90.8% advertising for ONLY men’s sneakers via magazines, 4.2% spot TV and 5.2% cable TV -using 79.3% advertising for ONLY men and women’s sneakers on cable TV, 7.7% spot TV, 5.3% net TV, 15.1% magazines -Under Armour brand observed on team uniforms, sponsors at sporting events

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REFERENCES GfK Mediamark Research & Intelligence, LLC (MRI). Athletic Shoes - Brands Bought: Under Armour in last

12 months. Published data, Fall 2011 Product: Apparel/ Accessories, Available from MRI+.

PIB and Kantar Media Intelligence. Ad$ summary: Multi - Media Service: January – December 2011.

Published data, Available from Competitive Media Reporting 2011.

PIB and Kantar Media Intelligence. Media Service: Class? Brand $: January – December 2005. Published data,

Available from Competitive Media Reporting 2005.

Under Armour Performance. Investor Relations: Overview, Financials, Press Releases, Governance, Stock

Information, Contact Information, FAQs. Retrieved from http://www.underarmour.com

MARKETING OBJECTIVE

To increase Under Armour unit sales by 10 percent, while maintaining current market share for the next year.

Out of 230,416,000 people in fall 2011, 1,602,000 bought Under Armour shoes. This is only about 0.7% of the sales population with competitors holding a vast majority of sneaker sales. Spring 2011 showed little improvement. Under Armour sold 1,857,000 athletic shoes, reaching 0.8% of the sales population. By brand, a total of 201,836,000 athletic sneakers were sold in fall 2011. Under Armour makes up 0.8% market share of the brands sold. Because Under Armour does not have significant market share, it would be best to increase sales. Selling approximately 2 million shoes annually, Under Armour does have potential to build revenue. Although top brands Nike, Adidas, New Balance, Reebok, and Sketchers form more than 40% of the athletic sneakers sold to the total population, Under Armour still maintains high personal sales. The spring 2011 data shows Under Armour selling 13% more athletic sneakers than the fall 2011 data. According to MRI, Under Armour is not included in a product category for athletic sneakers until 2011. This leads researchers to believe 2011 is the first year Under Armour sales have made a distinction in the industry from which it can progress.

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MEDIA OBJECTIVES:

TARGET AUDIENCE

Under Armour sneakers have two very influential target audiences. Its primary consumers are engaged or married men between the ages of 25 to 34 who have graduated college with professional and sports related occupations. They have a household income of at least $75,000 annually and live in the Midwest or south region of the United States.

This target audience has a life-long passion for sports and thrives in a competitive atmosphere. It believes in challenging itself, both working hard and playing hard. A healthy well-being and physical fitness have always been important. Athleticism is an art form this audience lives by, as it invests significant parts of life to the industry voluntarily. It is composed of well-read intellectuals intrigued by facts and progress. Maintaining seriousness about personal goals, audience members preach hobbies and studies to other people. They enjoy discussing current athletic trends and innovations.

Under Armour’s second influential consumer of athletic sneakers are men between the ages of 18 to 24 who have attended college or graduated with a degree, pursuing occupations in business, management, and finance. They have a household income of at least $50,000 annually. Living in the South or Midwest region of the United States, they have never been married.

This consumer frequently looks to sport activities to relieve stress from work or home. Consistent recreational activates helps them feel together and promote positive energy in the rest of their lives. They are naturally motivated to move and they love spending time with family. Athleticism promotes less seriousness and more personal healing, self-fulfillment, and refocus. They enjoy activities for a sense of community and teamwork.

Justification for these demographics and psychographics can be found from MRI and CMR data. Men between the ages of 18 to 34 had the highest index at 198. Both target audiences include age groups from this projected range. The highest index numbers and percent down were seen in individuals who have challenged themselves academically and make a higher household income. The selected target audiences are proven to be hard working and naturally driven for success. Business, management, and finance had an index of 212, while professional and related occupations had an index of 168. The two career areas maintained the highest percent down, outside of other miscellaneous occupations. The Southern region of the United States did not have the highest index number; however, it maintained a larger percent down than the dominating Midwest region. Under Armour has directed it advertising largely to magazines and cable television. For this reason, target audiences are defined as well-read, wanting to spend time with family, and find ways to relax.

SEASONALITY

Under Armour should advertise throughout the year and place heavier emphasis on the last three quarters (April to December). Under Armour should also take advantage of pulse scheduling. With a budget of 20 million dollars, quarter one should spend 2 million dollars and quarters two, three, and four should spend 6 million dollars each.

2005 CMR data does not have a specific breakdown of money spent each quarter for Under Armour “sneaker” advertising. The closest breakdown it listed was for Under Armour “Athletic wear,” including much more than sneakers in its advertising expenditure information. For this reason, the total money spent was irrelevant. However, Under Armour’s pattern of spending was important. Under Armour used pulse scheduling for its athletic wear in 2005. Its emphasis on spending for men and women were sporadic.

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It’s important to see what patterns of spending Under Armour’s top competitors were using in 2005. All showed elements of pulse scheduling with emphasis on any of the last three quarters of the year. Top competitors like Nike spent roughly $10 million more in quarters two and four for men’s sneakers and $6 million more in quarter three for men and women’s sneakers. Reebok placed advertising emphasis on quarter two, K-Swiss placed emphasis on quarter three, and Adidas placed emphasis on quarter four. Of all the top brands from 2011 CMR, Reebok and New Balance were the brands which had a similar budget to Under Armour (roughly 2,500,000 dollars). In 2005, New Balance favored quarters one and three for advertising, while Reebok’s spike in quarter three has previously been mentioned. Seeing how drastically unique advertising expenditures have been for both major competitors and competitors with similar budgets, it would be best to use the majority of Under Armour’s budget in the last three quarters. These three quarters have the most activity for competitors with the same product.

MEDIA OBJECTIVE AND STRATEGY

TARGET AUDIENCE

OBJECTIVE: Under Armour’s upcoming campaign will target men, ages 18 to 34, who have attended college or graduated with a degree, pursuing occupations in business, management, or sports relations. They make a household income of at least $50,000 annually.

STRATEGY: Place 15 second, Prime Time network television spots on ESPN and ESPN 2. Website statistics reveal viewership to be up to 78% male. On ESPN, 32% of viewers are age 18 to 34. This is a large number for network television. Place 15 second, Early News network television spot on FX. Although this channel only has 55% male viewers, 38% of its viewers are age 18 to 34. This is the largest compatible number in network television with a greater male audience. Cable television has several successful channels for the demographic targeted. VERSUS holds nearly 85% male viewership, VH1 holds 65%, and Comedy central holds 60%. In addition, website statistics show that 40% of viewers are ages 18 to 34 on VERSUS and 72% are ages 18 to 34 on Comedy Central. Late fringe and early fringe 15 second spots on these channels will target the desired audience. Los Angeles, Dallas, and Atlanta are in the top 10 markets for television. Additional 15 second spot television advertisements will be placed in these television-friendly cities on the compatible networks mentioned.

One popular radio network and one news radio network carry a range of listeners from the ages of 18 to 49. Spots for 60 seconds on Dial Global Complete FM and United Stations Impact carry a large viewership. Magazines like Men’s Health, Men’s Fit, and Maxim have a large circulation of male readers. The average age reader for Maxim is 33 years old. Its website shows that 41% of its readers are ages 18 to 34.

REGIONALITY

OBJECTIVE: Under Armour’s upcoming campaign will have national coverage. Additional spot coverage will be emphasized in a few top cities, evenly scattered across the nation.

STRATEGY: Because Under Armour spent 90.8% of its budget (based on CMR 2011 data) in magazines and 5.2% of its budget in cable television, its previous goal has been to advertise nationally. Under Armour has dedicated large amounts of its budget to mediums that broadcast to a national audience. In 2011, Under Armour also spent 79.3% of its budget on cable television advertisements for both men and women’s’ athletic sneakers. This campaign will continue to spend large portions of the budget in valuable national mediums; however, it will also utilize more national mediums. Practicing national medium dispersion, it will use network television and network radio along with magazines and cable television.

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When analyzing Under Armour's previous advertising expenditures, one can see it has an insignificant to nonexistent share of voice in regional mediums. This plan allocates a small part of the budget to experience the benefits of spot coverage. It will add 15 second spot television advertisements concentrated in the cities of Los Angeles, Dallas, and Atlanta. These three cities are within the top 10 television markets of 2011 and they are evenly spread through the nation. Spot television coverage in these three areas will help capture the target audience through a well-liked medium and achieve a regionality objective.

SEASONALITY

OBJECTIVE: Under Armour will advertise throughout the year with pulse scheduling and place heavier emphasis on the last three quarters (April to December). With a budget of 20 million dollars, quarter one (January to March) will spend roughly 2 million dollars and quarters two, three, and four will spend roughly 6 million dollars each.

STRATEGY: Advertising expenditures per quarter for major competitors and competitors with similar budgets to Under Amour have proven to be drastically unique in 2005 CMR data. Spending patterns by quarter, specifically for Under Armour men’s athletic sneakers, is not available in 2005 CMR data. However, it is best to focus Under Armour’s budget in the last three quarters. This is where most competitor activity is seen for the same product.

Magazines are a non-seasonal medium. A large portion of the budget will be invested in magazine advertisements. Niche audiences can be reached from specific athletic magazines every month. The continuity and frequency of athletic magazines is a valuable option to directly reach the target audience. Cable and network television can be used for advertising every quarter. The target audience is more inclined to watch television during summer months, so more money will be spent on television in quarters two and three. Autumn encourages people to enjoy the changing weather and scenery. Television spots will be taken advantage of in quarter four to get people outside in Under Armour sneakers. This target audience is driving to work and school, making visits, sightseeing, or taking road trips with friends during many parts of the year. Network radio is a preferable advertising medium to reach an audience with many reasons to be in a car. Avid radio music listeners and car adventurers will be reached monthly. This target audience is more likely to travel in cars for longer excursions during summer months. More GRPs in network radio from March to October will be bought.

REACH/ FREQUENCY

OBJECTIVE: Under Armour’s upcoming campaign will have an average frequency of 3.2 and a high reach of 80.

STRATEGY: In February, Early News Network Television allows for more reach per GRP at a low cost with 15 second spots. August and November have a larger portion of the budget to utilize Day-time and Prime-time Network Television. Half page magazine ads help reduce expenses, while keeping the reach high and noticeable. Men’s magazine, in particular, boosted the reach with little effect on the budget at half a page. Several months invested large amounts of GRP in both evening drive and night time network radio. The frequency increased greatly when 20 or more GRP were purchased in network radio spots. Television and magazines also increase frequency, but this comes with a cost much greater than network radio.

BUDGET

OBJECTIVE: 45% of Under Armour’s total campaign budget will be dedicated to magazine advertisements. Another 45% of the total budget will be dedicated to television, and the last 10% will be allotted to radio advertisements.

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STRATEGY: Keeping in mind a pulse schedule plan of 2 million dollars spent in the first quarter and 6 million dollars spent in the remaining three quarters, a goal dollar amount was calculated for each medium per quarter (based on goal percentages). The number of months per quarter were divided to get an estimate of how much to spend per medium per month. These numbers were compared to the cost of a minimum purchase of 20 GRPs in each desired medium.

Television and magazines are expensive, but very efficient media. Because network television is so costly, the minimum amount of GRP (20) in one month per quarter was bought for this medium. Almost as costly, cable television was bought one month per quarter as well. Because the first quarter of the campaign has only 1/3 the budget of every other quarter, spot television was excluded from this portion of the campaign. Spot television is more affordable in the last three quarters of the campaign, where the budget is 6 million instead of 2 million. These strategies keep a total television budget close to 45%, one of our budget objectives.

For the first quarter, the campaign budget is 2 million dollars. Magazine advertisements account for 45% of

this total. Considering the other quarters have a budget of $6 million, 45% of $2 million is significantly less for

a medium of high demand. To compromise for the smaller budget, half-page magazine advertisements were

used for January, February, and March. The reach was barely affected for half of the price. Although magazine

ads are expensive in color, it is a necessary expense to display the product desirably. Network radio was very

inexpensive. Large amounts of GRP in this medium will help build the frequency necessary. Network radio is

an expense easily afforded each month of the campaign.

PART 1: MEDIA MIX

MEDIA OBJECTIVES: -WHO: Men ages 18 to 34 who have attended college with a household income of at least

$50,000. –WHERE: Largely national approach (Defensive & Offensive Strategies). –WHEN: Pulse Scheduling

(most in last 3 quarters) –HOW: High reach & medium frequency for attention. –HOW MUCH: $20,000,000

(Total).

OVERALL MEDIA MIX

TV: 45% (total)

-Network TV: 20%

-Cable TV: 20%

-Spot TV: 5%

RADIO: 10% (total)

-Network Radio: 10%

MAGAZINES: 45% (total)

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NETWORK TELEVISION- 20%

In 2011, two of Under Armour’s top competitors, Adidas and Nike, held the dominant share of voice in network television. Adidas spent 40% of its budget in network television. Nike spent nearly 60% in network television for men and women’s sneakers and women’s sneakers and 40% for just men’s sneakers. Adidas and Nike show similar spending habits in 2005, as well. A majority of their budgets are dedicated to this medium. With top competitors using this medium, it is important for Under Armour to make an impact in network television. In 2011, Under Armour spent only 5% of its budget in network television for athletic sneakers. By placing 20% of Under Armour’s budget in network television, Under Armour will claim a share of voice higher than many of its competitors. Although it will not surpass Adidas and Nike, this medium’s share of voice will be noticeable next to them.

The advertising objective is to create awareness for the Under Armour sneaker. Based on previous advertising campaigns, Under Armour should stand out as a brand and innovation. To create this brand attention, it is vital to use network television. Sight and sound effectively reach a large population. The campaign message will benefit because audio and visual will project a controlled interpretation of the Under Armour brand.

Media objectives of high reach and medium frequency are supported with an increase in network television advertising. National television and advertisements will efficiently reach a large amount of the public. This is a highly competitive market in which sneakers are sold frequently. The larger budget than previous years is necessary to match competitors’ advertising frequency.

Television is expensive. However, it is necessary to make a creative impact and reach a large number of people. Under Armour will use television to strategically communicate a brand perception to the audience.

CABLE TELEVISION- 20%

In 2011, two of Under Armour’s top competitors, Adidas and Nike, maintained a dominant share of voice in cable television. Adidas spent 54% and Nike spent 57% in cable television for men’s athletic sneakers. Although Under Armour’s minor competitors spend most of their money in magazines for men’s sneakers, its top competitors have advertised differently. In both 2011 and 2005, cable television has proven to be the second largest spending category. With top competitors utilizing this medium, it is important for Under Armour to make an impact in cable television. Based on CMR data, it is a trend for sneaker companies to spend for men’s sneakers in magazines and for men and women’s sneakers in cable television. However, if Under Armour wants to capture its target audience of males, it should follow the spending patterns of its top competitors and increase advertising in cable television. In 2011, Under Armour only spent 5% of its budget in cable television for men’s sneakers. With Adidas and Nike in the fiftieth percentile rage, Under Armour should secure at least 20% of its budget for cable television. This will help create a share of voice higher than many of its competitors, as well as share of voice closer to Adidas and Nike.

Television is the best medium to show consumers how Under Armour sneakers are relevant to them. The advertising objective to increase awareness of the brand is accomplished with a precise message. Television is delivered by image, motion, and sound. The brand is easily conveyed to the viewer as a tool to advance athletes in a sport. The vivid images and specific sound choice can change viewers’ mood. This is hard to do for media outside of television.

A high reach and medium frequency are necessary media objectives for Under Armour to surpass the competition in the athletic sneaker industry. Because this is a new campaign, television would be a great

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resource to expose Under Armour to a large part of the population. Cable television will continue to be used nationally. Continuity scheduling for Under Armour sneakers in this medium will support a high reach.

Cable television is expensive, but necessary. Once again, it maximizes reach to make such a price efficient. Under Armour sneakers are image-focused products and the viewer’s attention will be drawn to the sights and sounds from this medium. A large amount of people will view a very focused and detailed message.

SPOT TELEVISION- 5%

In 2011, two of Nike’s top competitors, Puma and Nike, have the dominant share of voice for men’s sneakers in spot television. Puma spent 10% and Nike spent 0.2% of its budget in spot television. To make an impact with spot television, Under Armour should secure about 5% of its budget for this medium. This is an appropriate average between the two competitors with the highest share of voice for men’s sneakers. It is also relatively similar to Under Armour’s budget commitment from previous years. In 2011, Under Armour spent 4% of its budget in spot television. A budget commitment of 5% in spot television will increase its share of voice among top competitors.

Television offers the least amount of confusion in the message the brand intends the viewer to receive. It projects both images and sound for the viewer. The advertising objective of creating awareness can be achieved most accurately in this medium. With spot television will directly target specific places where the target audience watches television. Television images will also pay attention to the detail of the sneaker and its purpose.

Spot television is expensive, but necessary to directly reach areas where Under Armour’s target audience is the strongest. It’s necessary for areas that will benefit most from an ad with impact and creativity. It does not reach very many people, but it reaches the right ones.

MAGAZINE- 45%

Under Armour’s magazine quintile index average is 123.5. This number has great potential being well above 100. It shows that a high number of people who bought Under Armour sneakers in 2011 read magazines heavily. This is the first reason we should direct a large portion of our budget to magazine advertising.

In 2011, two of Nike’s top competitors, Asics and K-Swiss, maintained the dominant share of voice for men’s sneakers in magazines. It’s a trend for sneaker companies to spend 90-100% of their budget in magazines for men’s sneakers. Asics, K-Swiss, and many other competitors fall under this category. In 2011, Under Armour also spent more than 90% of its budget for men’s sneaker advertising in magazines. However, two outstanding competitors, Adidas and Nike, have successfully spent little to none of their budgets in magazines. This bold polarity in competitor spending has proven the exploration of other mediums to be just as valuable. Should Under Armour follow the spending patterns of its top competitors, it will spend less money in magazine advertising. For this reason, Under Armour should secure 45% of its budget in magazines. It’s important to mention that Under Armour is exploring opportunities in other media, but magazines still hold the majority of the budget like many other sneaker companies.

The advertising objective to increase awareness will benefit from using magazines. Selecting appropriate magazines to place ads will directly reach the target audience. Magazines have high audience attentiveness because people are interested in the type of magazine they are reading. Also, sneakers are imaged-focused products to advertise. The vivid colors and magazine sheen will enhance the advertisement, making it appealing to view. People will be more likely to read what it says. Not only does the ad have quality, but a

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magazine is a self-paced medium. The viewer can look at it for as long as they like. There is no time limit for the viewer to comprehend the ad.

Magazines are important in directing reach to target audience members. Placing several ads in this medium will increase frequency and guarantee members of the target audience see what is desired for their viewing. It is necessary to have a high percentage of the budget in magazine advertising to increase the frequency among the selected target audience.

Magazines are expensive, but niche communities are most likely to buy the product being advertised. Under Armour would benefit from being placed in sports magazines like Sports Illustrated. Readers share an interest in the product if it applies to the subject matter of their personal interest. Magazine ads are also necessary because they allow the reader to take as much time as they want to think about the product or view it.

NETWORK RADIO- 10%

According to CMR 2011 data, Under Armour did not invest any advertising in network radio for athletic sneakers. However, growth in this medium is suggested for a few reasons. First, it hasn’t been done before. Many of Under Armour’s competitors have not spent money in network radio. Reserving a small portion of the budget for this medium may gain a previously unreached part of the target audience. The quintile index number for radio shows great potential at 121. A large number of people who bought Under Armour sneakers in 2011 listen to the radio heavily. Network radio is also an inexpensive way to reach a specific group of listeners. Athletes may listen to a certain station.

FINAL PLAN

Part II: Media Vehicle Selection

NETWORK TV

Channel Program (optional)

Day Part Ad Type

CPP ($) Audience Profile

ESPNews n/a Early Morning :30 7,194.18 73% Men 29% Age (18-34) 43% attended college

ESPNews n/a Early New :15 13,468.59 73% Men 29% Age (18-34)

USA Network n/a Early News :15 13,468.59 50.4% Men 34.5% Age (18-34) 44% attended college

FX n/a Early News :15 13,468.59 55% Men 38% Age (18-34) 44% attended college

ESPN n/a Prime Time :15 23,877.18 72% Men 31% Age (18-34) 40% attended college

ESPN2 n/a Prime Time :15 23,877.18 78% Men 32% Age (18-34) 39% attended college

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CABLE TV

Channel Program (optional)

Day Part Ad Type

Index Pct Down Audience Profile

ESPN n/a Prime Time :15 151 44.2 70.1% Men 30.2% Age (18-34)

TBS Family Guy, Big Bang Theory

Prime Time :15 115 33.5 51.3% Men 35.6% Age (18-34)

CNN n/a Prime Time :15 107 *30.7 *51.5% Men *20.1% Age (18-34)

ESPN2 n/a Prime Time :15 169 29.8 77.8% Men 30.9% Age (18-34)

USA Network

Psych, NCIS, Burn Notice

Prime Time :15 112 28.9 50.4% Men 34.5% Age (18-34)

Comedy Central

South Park, Tosh.0

Prime Time :15 101 *21.2 *59.8% Men *47.5% Age (18-34)

FX The Americans, 2 & a Half Men

Late Fringe :30 *121 20.8 *59.6% Men *45.5% Age (18-34)

MTV Jersey Shore, Real World

Early Fringe :30 *123 20.8 48.9% Men *62.9% Age (18-34)

ESPNews n/a Early Fringe :30 *158 19.1 *75.7% Men *34.7% Age (18-34)

NFL Network

n/a Early Fringe :30 *199 19 *72.3% Men *33.7% Age (18-34)

CBS Sports Network

n/a Early Fringe :30 *229 15 *75.8% Men *30.5% Age (18-34)

VERSUS n/a Early Fringe :30 *222 14.8 *84.5% Men *40.1% Age (18-34)

Vh1 n/a Late Fringe :30 *124 14.2 46.6% Men *61.1% Age (18-34)

Adult Swim

King of the Hill, Family Guy

Late Fringe :30 *157 12.8 *65.1% Men *71.7% Age (18-34)

SPOT TV

Market Rank Day Part Ad Type

Los Angeles 2 Early news :15

Dallas 5 Prime time :15

Atlanta 8 Prime time :15

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NETWORK RADIO

Day Part Formats Ad Type Rating Audience Profile

Morning Drive News/talk/weather :60 2.2 5,744 Age 25-54 Dial Global Adult Power

Morning Drive News :60 1.5 3,931 Age 18-49 United Stations Impact

Evening News/talk/AC :60 1.9 4,842 Men 25-54 Premiere Today’s Men

Night Time popular :60 2.9 7,366 Age 19-49 Dial Global Complete FM

MAGAZINE

Size Color Index Pct Down

Circ. Cost CPM Audience Profile

Runners 1/2 Yes 399 4.9 726016 92010 126.7 56% men Av. Age: 37

Bicycling 1/2 Yes 422 3.8 446925 39745 88.9 79% men Av Age: 38

Men’s Fit 1/2 Yes 277 9.3 585265 46155 78.86 89% men 45% 18-34

Men’s Health 1/2 Yes 172 9.3 1918387 127455 66.43 84% men 40.9% 18-34

Muscle and Fitness

1/2 Yes 284 6.8 345074 32265 93.5 74% men Av. Age: 32

Maxim 1/2 Yes 176 8.1 2518827 141055 56 80% Men 57% 18-34

Sports Ill. 1/2 Yes 180 15.7 3204945 277700 86.64 77% men Av. Age: 37

ESPN 1/2 Yes 220 15.3 2142937 131077 61.1 81% men Av. Age: 30

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