Under Armour Buying Plan

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Table of Contents // Company Analysis History Core Mission and Brand Identity Scope and Size Merchandising Venues Core Competencies Target Customer

4 7 8 11 12 15

Competetive Marketplace Analysis Key Competitors SWOT Analysis Current Trends

20 22 24

Buying Plans Six Month Buying Plan Store Buying Plans Assortment Plan

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// Anna Suhr Lauren Thomas Roanne Nonesa


History // Kevin Plank, the co-founder of Under Armour, had a vision to one day create a sport attire which would improve standard and performance to all athletes alike. The revolution began in 1995 when Plank, the team leader of the University of Maryland football team saw that the cotton t-shirts he and his fellow team members wore underneath their pads were continually overpowered with sweat. After college, he set in motion his plan to make sports attire that best suited athletes in extreme weather, a shirt designed to feel light, and keep dry. Collaborating with Warner Brothers, Under Armour contracted them to feature their products in a couple of their feature films. This lead to Plank getting an ad on ESPN which grossed in three quarters of a million dollars. Under Armour opened their first warehouse in Baltimore in 1998. The company became a corporation in 2005. Plank opened an Under Armour store in his home state, Maryland in 2007. The corporation opened their first international store in China in 2011and established their European headquarters in Amsterdam. Today Under Armour’s net worth is approximately $3.5 billion dollars worldwide and the 2nd leading activewear brand.


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Core Mission // Brand Identity Vision statement:

Empower athletes everywhere. Mission statement: Make all athletes better through passion, design, and the relentless pursuit of innovation. 2003

“Protect This House” 2013

“I Will What I Want” 2015

“Rule Yourself”

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Size // Scope 62

on Fortune’s Fast Growing Companies in August 2015

739

on Fortune 1000’s in June 2015

$4,900,000,000 annual revenue

25,000+

retail stores carry UA merchandise

11,000 employees


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26

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Merchandising Venues // # of Stores Army Navy USA Bass Pro Belk Champ City Sport Dick’s Sporting Goods Easybay Finish Line Golfsmith Hibbett Macy’s Modell‘s Nordstrom PGA Superstore REI Sports Authority

= 25,000 + retailers

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Core Competencies // Innovation of textiles replacing cotton logo tees with compression garments designed for high intensity workouts Technology moisture wicking and body temperature regulating Sponsorships NFL MLB NBA Jordan Spieth, Michael Phelps, Tom Brady, Misty Copeland, Gisele Bundchen Active lifestyle clothing that works as hard as the athlete who wears it


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40% 45% 15%


Target Customer // 15 million dollar

campaign to double women’s sales Featuring a series of commercials Plans to launch app to help women track their fitness Achievers

45% Experiencers

40% Strivers

15%

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Meet // Brianna “Bri” Levens 26 years old Grew up in Baltimore suburbs University of Maryland College sprinter Jr. Creative Associate @ Baltimore marketing agency Hosts “Run Club” at work

Participates in charity 5k’s Foodie - eats clean but loves to splurge Discovers spirituality through meditation In committed relationship Loving the athleisure trend Seeks adventure


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Meet // Joshua Middleton 22 years old Grew up in downtown Baltimore Johns Hopkins University

Volunteers with local youth lacrosse team Puts family first Loves his dog

Seeks quality College lacrosse over quantity player Balanced and Dedicated high calorie diet medical student and team Explores new captain exercise for fun Highly social and Baltimore involved Ravens fan

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Competition // Brick & Mortar

Customization (NikeID) Fashion & fitness focused Innovative design College campus presence Partnerships (Michael Jordan, Hurley, Apple) Athlete sponsorships

Graphic design Fashion focused Strides in sustainability Technology (micoach) Partnerships (FIFA, Raf Simmons, X Games) Celebrity sponsorships

Crossfit collaboration Personalizaton Partnerships (UFC and NHL)


Competition // Online

Luxury active sportswear Designer items (Fendi, Cynthia Rowley) Trendsetting Broad range of product

Luxury interpretation Strong focus on yoga Fashion oriented Focus on wellness Targets female customer

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Strong female customer base Fashion focus Broad range of product and activities


SWOT Analysis // Strengths

Weaknesses

Healthy lifestyle for the serious athlete

Not fashion-focused Limited product range

Product endorsers and sponsorships Performance enhancing Customer loyalty Background story Textile innovation Health Box Under Armour Connected Fitness

Opportunities Athleisure trend Footwear industry Growing women’s market Brand awareness abroad

Threats Trendy styles from strong competitors

UA record MapMyFitness Endomondo MyFitnessPal

Competing apps (Nike+ running, adidas Confirmed and micoach)


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Current Trends // Textiles

innovation in fabrics for high performance

Fashion

styles to take note of for a trendy new look

Lifestyle

aspects in daily life effecting the consumer’s decision making


Textile Trends //

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fiber blends

cleanliness

reflectivity

reactivity

tech fabrics

eco-friendly

lightweight

durability

temperature regulating


Fashion Trends //

athletic silhouette

fashionable textiles

sneakers over stilettos

bold prints and colors

athletic goth

versatility


Lifestyle Trends //

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fitness and exercise

travel

digitally connected

mindfulness

health tracking

wearable tech



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Six Month Buying Plan //


Under Armour // Women’s Apparel The net sales of $7 million is based off Under Armour’s five Brand Houses. The planned 66.67% increase from last year is in response to the growing women’s activewear market and Under Armour’s wish to double women’s sales this year. An average Brand House will turn slightly less than two times per season because we carry staple items such as leggings. The planned reductions are an average 15% because the product is less conceptual and in need of less markdown promotion. Purchases are higher in August and September for “back to school”. They are also higher in November and December in preparation for holiday and New Year’s resolutions. The initial markup is 57%.


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Store Buying Plans // Baltimore & Las Vegas


Store Plan // Baltimore The net sales for the Baltimore store of $2.1 million is higher than an average Brand House because it is the flagship store. The average turnover rate of 2.07 is higher than the average rate because it is a high volume store.


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Store Plan // Las Vegas The net sales for the Las Vegas store of $1.5 million is higher than an average Brand House because it is a highly popular tourist destination. During the beginning of the season, sales in Las Vegas are lower due to the high temperatures and lower tourist volume. In January, there is a spike because of tourist season and travel for the New Year.


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Assortment Plan //


Assortment Plan // Tops & Bottoms The plan to buy 65% tops and 35% bottoms is because many consumers buy multiple tops and bras to match a few pairs of bottoms. The planned purchases for categories like bras, tanks, shortsleeves, shorts, and leggings are higher because these are less expensive items and more versatile between seasons. Under Armour’s sizing favors size small and medium because our average consumer is fit and healthy.


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Fall Winter 2016-17 // An Opportunity If the athleisure lifestyle were to become more of a passing trend, this would prevent the potential growth in sales for the coming season. During a season that includes “back to school”, holiday, and New Year’s resolutions, there is great possibility to surpass the planned increase in sales. We believe our buying plan is an opportunity for Under Armour to grow in the women’s market. With great growth, there is always a risk, but we believe this is a risk that Under Armour should take.


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“Brand is not a product, that’s for sure; it’s not one item. It’s an idea, it’s a theory, it’s a meaning, it’s how you carry yourself. It’s aspirational, it’s inspirational.” Kevin Plank



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