PORTFOLIO MBA Fashion Business MICHAEL J MCATOMNEY | BFA Fashion Design | Queensland University of Technology | MBA Fashion Business | IFA Paris
© Michael McAtomney
Name: Michael McAtomney Lecturer: Tassos Sofroniou Class: Collection Development/Brand Extension Project: Brand Extension and Omni-Channel Concept Company: Under Armour Š Michael McAtomney
Under Armour, the UA logo and the images of Under Armour Products and Properties are Copyright of Under Armour, INC and are used in this document for educational purposes only under the Fair Use Clause. All intellectual property is Copyright of Michael McAtomney
Table of Contents 3. Under Armour Brand Profile and Overview 4. Current State of Under Armour Retail Innovation and Omni Channel 5. Proposed Under Armour Omni-Channel Strategy Concept Overview 6. Omni-Channel Startegy Proposal One 8. Omni-Channel Strategy Proposal Two 12. References.
Š Michael McAtomney
Under Armour Brand Profile Overview
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Started in 1996 by Kevin Plank, a graduate and former Captain of Special Teams from the University of Maryland in Baltimore. From his time playing college football he saw he need to change the undershirt worn by football players due to the amount of saturation and moisture thegarments collected, causing the players to be heavier and therefore fatigue more quickly. Started to produce undershirts made from ‘moisture-wicking’ material and supplied these to some friends in the NFL to test the garments. By the end of 1996 he had sold over 500 of these shirts to a number of college football associations and had over $100,000 worth of orders by the end of 1997. The brand continued to grow thanks to endorsement deals struck with film companies and an expanding roster of teams to which the company supplied equipment, though Plank has always remembered the core purpose of the business is to sell apparel direct to consumers. In 2016 the brand is still based in Tide Point, Baltimore, with additional headquarters in Amsterdam, Sao Paulo and Guangzhou. In 2014 the Under Armour revenue grew 32% to $3.08 Billion USD with a predicted 2016 revenue of $4.95 Billion USD and a goal of $7.5 Billion by 2018 (YSL’s current revenue is around $1 Billion USD, Lacoste’s around $3 Billion USD, Nike $30.6 Billion USD). The company now has multiple product lines catering to all sports and leisure activities including hunting and fishing and in 2013 invested millions into procuring digital apps such as Map My Fitness as well as the Endomondo Group responsible for developing such fitness applications.
Under Armour Brand Profile Current State of Under Armour Retail Innovation •
The Under Armour does the majority of its business within the United States, shielding it from currency fluctuations and instability within the Global Economy.
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International Business Currently responsible for 12% of Under Armour’s Revenue.
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Currently pursuing large growth in Fitness Technology – 160 Million Users of their fitness apps at the end of 2015 - MapMyFitness, Endomondo, MapMyRun.
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UA Record (an incorporation of these apps) is able to track sleep, fitness, nutrition and activity.
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Worlds biggest digital health platform from which to access data.
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Investment in wireless headphones that can also monitor heart rate.
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SpeedForm Gemini 2 with micro-chip to track pace, stride and distance.
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Sponsors of the NFL Scouting Combine (Scouting camp of potential NFL Players from the College Teams) – has put chip in every shirt used by the players to monitor heart rate, breathing and acceleration to name but a few.
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Tom Brady (NFL); Stephen Curry (NBA); Jordan Spieth (Golf); Andy Murray (Tennis) and Michael Phelps (Swimming) are all brand representatives for Under Armour.
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Under Armour Omni-Channel Strategy Concept Overview Due to the fact that Under Armour is now the second biggest sports retailer in the United States, the focus of building the omni-channel platform through trial stages should be within the United States. The Business-to-Customer service of Under Armour is currently something in which the company has made huge progressions within the last two years, however this can still be improved. This Business-to-Customer interaction alongside a huge focus on the Business to Business Omni-Channel development is what the company needs to continue to push rivals such as Nike and Addidas and to expand it’s marketshare outside the USA. Therefore, I have developed a number of potential strategies to implement for the Under Armour Company involving in-store interaction with products and further leverage off their innovation in Fitness Technology. Under Armour Brand Association
Innovative: Forward Thinking Design and Strategy; Latest Technologies; Innovation Conferences
Athletic: Continually expanding the product to cover an extremely vast range of sports and outdoor leisure activities. Professional: Professional endorsement deals wth world class athletes. World class facilities for R&D.
American: Inherently an American brand and synonymus with America’s obsession with sporting culture.
Youthful: Appealing predominantly to a demographic between 25 - 35 years of age with higher education. Premium: Expanding technologies and designs put the brand at the high-end of the sportswear market.
Aspirational: The culture on which the Under Armour brand is built on offers the consumers an aspirational outlook. Functional: Specialising on Products designed to perfom under rigourous conditions.
Versatile: A continued athleisure trend sees brands such as Nike and Under Armour continue to rise in terms of use both on and off the sporting field.
“Don’t forget to sell shirts and shoes”
(Kevin Plank, CEO)
© Michael McAtomney
Under Armour Omni-Channel Strategy Business-to-Consumer.
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The relationship that the Under Armour brand has built over the past ten years with a range of professional and semi-professional smporting teams such as the Tottenham Spurs, the Chicago Cubs and the Welsh Rugby Union team offers the brand insights into how their garments withstand the most intense of sporting environments, though this will not always translate to how the general public interact with the garments. The Under Armour brand has become globally recognised as a sports powerhouse, and its customers are often aspirational and active members of the health and fitness community.
Proposal One In the Baltimore headquarters at Tide Point, the company has its own self-sufficient gym to which the public can become members, the company also recently opened its largest retail space yet in Chicago, Illinois with full LED Screen displays and multi-level offerings of goods and equipment. I propose merging these two concepts to further develop the global Under Armour community. Develop smaller interactive in-store spaces, or spaces attached to the store for the public to “try before you buy� with a range of products available to the public after having input metric data into the computers aside these spaces such as age, weight, sport played, position, aspirational level and a rough training schedule. These spaces could utilise things such as Virtual Reality and simulation spaces (similar to indoor golf simulators) for aspring athletes to test a range of product lines (primarily related to American Football and Baseball) for a time limit before placing an order for the final selected product and having it delivered to the customers place of residence or sporting club. Evidently this would not work for all product lines from the brand, however it would lead to better customer data and a refinement of product offerings in certain demographic and geographic locations. The items of equipment used within these testing spaces can then be donated to charity organisations or youth sporting teams through smaller sponsorship deals. With continued interaction and tracking of these customers it would be possible to continue to suggest enhanced product offerings to the consumers through digital avenues. Š Michael McAtomney
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© Michael McAtomney
Under Armour Omni-Channel Strategy Business-to-Consumer.
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Under Armour’s continues to sponsor the NFL Combine each year when the best NFL Prospects train at a camp over consectutive days all while
being tracked and judged by NFL player scouts. This concept of camp style training could be easily utlised by the Under Armour brand in a range of sports, or in general health and fitness to increase customer interaction with the brand and therefore increase brand loyalty.
Proposal Two Under Armour can increae it’s brand association in the minds of it’s consumers through the use of bootcamp training programs. I propose the company look at further partnerships with dominant members of the health and fitness community to develop bootcamps available to a limited number of public or corporate groups three times a year in the Oregon region. Throughout this 3 or 4 day event, the consumers can live and breath the spirit of Under Armour while getting advice from health professionals on fitness regimes and outdoor adventure activites while using Under Armour products for each different exercise with the option of purchasing the equipment used throughout the day at the end of each day via a digital Under Armour platform. This would generate more data for the company while also positioning the brand front of mind in the consumers for all future purchases.
This style of camp could be linked to other sporting associations such as the Junior Playes Gold Academy in North Carolina, or EXOS - A company specialising in providing training programs, support and health advice for aspiring NFL Players once they graduate from College Football leading into NFL trials. Using a database such as UA Record across a range of different single person sports such as golf and tennis for customers to log information relating to the round. i.e. Final score, time taken, course conditions. This information woud then be uploaded to a database on to a UA interactive page and website so that the community can become global by comparing scores with friends and strangers on similar course or trainig programs.
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Under Armour Omni-Channel Strategy Business-to-Consumer. All of this would be integrated into selling product through digital interaction with the athletes and the fitness community. Providing instant access to the products used in these events with online purchase and home or in-store delivery available to the consumer. The trial of these camp style events within the United States would offer a valuable insight into how well recieved the concept would be in other countries focusing on other sports such as football or rugby union.
“Fashion companies must leverage both data and people to create an unbeatable social commerce experience that delivers the excitement, emotion, and nuance of fashion for the digital era.� (Tracy Sun, BOF, 2016)
Š Michael McAtomney
References
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Badenhausen, K, 2016. Under Armour Launches Portfolio Of Connected Fitness Products At CES. [online] Available at: http://www.forbes.com/sites/kurtbadenhausen/2016/01/05/under-armour-launches-portfolio-of-digital-fitness-products-at-ces/#e5aaa323e573. [Accessed 28 March 2016]. Gensler, L., 2016. Under Armour Revenue Rises 31%, Helped By A Surge In Shoe Sales. [online] Available at: http://www.forbes.com/sites/laurengensler/2016/01/28/under-armour-fourth-quarter-revenue/#3cd372664e66. [Accessed 28 March 2016]. Hall, C., 2015. Under Armour boosts customer experience with digital signage in new Chicago store. [online] Available at: http://www.retailcustomerexperience. com/articles/under-armour-boosts-customer-experience-with-digital-signage-in-new-chicago-store/. [Accessed 28 March 2016]. Mirabella, L., 2014. Under Armour surpasses Adidas to become No. 2 sports brand. [online] Available at: http://articles.baltimoresun.com/2014-09-08/business/ bs-bz-under-armour-beats-adidas-20140908_1_armour-ceo-kevin-plank-market-leader-nike . [Accessed 30 March 2016]. Nike, 2015. NIKE, INC. REPORTS FISCAL 2015 FOURTH QUARTER AND FULL YEAR RESULTS. [online] Available at: http://news.nike.com/news/nike-inc-reportsfiscal-2015-fourth-quarter-and-full-year-results . [Accessed 31 March 2016]. Olsen, P., 2015. Silicon Valley’s Latest Threat: Under Armour. [online] Available at: http://www.forbes.com/sites/parmyolson/2015/09/30/kevin-plank-under-armour-apps-technology/#b00757d4b253 . [Accessed 30 March 2016]. Prindle, D., 2013. Forget the wheel, under armor just reinvented the zipper. [online] Available at: http://www.digitaltrends.com/health-fitness/forget-the-wheelunder-armour-just-reinvented-the-zipper/ . [Accessed 31 March 2016]. Salmon, K, 2015. 2015 Omnichannel Fulfillment: A Kurt Salmon Special Report. [online] Available at: http://www.kurtsalmon.com/en-us/Retail/vertical-insight/1297/2015-Omnichannel-Fulfillment%3A-A-Kurt-Salmon-Special-Report. [Accessed 28 March 2016]. Soni, P., 2014. North America: The Critical Market For Under Armour. [online] Available at: http://marketrealist.com/2014/12/north-america-critical-market-armour/ . [Accessed 31 March 2016]. Soomer, K, 2015. Why are so few retailers achieving omnichannel functionality. [online] Available at: http://www.mobilecommercedaily.com/why-are-so-few-retailers-achieving-true-omnichannel-functionality-and-is-it-even-possible. [Accessed 28 March 2016]. Stock, K., 2014. Under Armour’s Kevin Plank on retails future. [online] Available at: http://www.bloomberg.com/news/articles/2014-11-06/retail-expert-outlook2015-under-armours-kevin-plank. [Accessed 28 March 2016]. Under Armour, 2016. Under Armour Inc. History. [online] Available at: http://www.uabiz.com/company/history.cfm . [Accessed 29 March 2016].
© Michael McAtomney
Name: Michael McAtomney Lecturer: Philip Milhailovich Class: Branding Project: Brand Building Company: Vanoukk © Michael McAtomney
VANOUKK by Michael McAtomney & Bianca Young
VANOUKK Brand History and Pedigree The Vanoukk brand is a men’s footwear brand based in Berlin. Started by two design graduates, Michael McAtomney and Bianca Young, the brand specializes in men’s casual boots and hiking boots based around bespoke service and craftsmanship, inspired by Berlin Minimalism and Brutalism and the alpine wilderness. Having grown up in regional Australia and spending the majority of his youth outdoors camping, hiking, hunting or fishing with his brothers and father in rugged hinterland regions or in outback Queensland, Michael started his career as a builder and went on to study fashion design in Australia before working in bespoke and made-to-measure menswear, men’s sportswear design and fashion consulting, before finally completing his MBA in Fashion Business through IFA Paris in 2017. His desire to combine his love of design, aesthetics and bespoke tailoring with his nostalgia for the outdoors birthed the idea of Vanoukk. He was quick to recruit his longtime friend, fellow fashion designer and fellow Australian ex-pat Bianca Young to launch the business in 2018. Bianca, also an avid hiker and outdoor enthusiast, comes from a more refined background of bridal and womenswear. The combination of these two contrasting design aesthetics offers a product that is so far unseen on the men’s footwear market. The brand takes techniques from traditional men’s shoe and boot making such as Goodyear Welting and bespoke lasts and transfers these techniques to men’s hiking and casual to create unique and highly functional footwear for men of all ages using the finest and most innovative materials and handmade craftsmanship all manufactured in-house. This sits alongside a small ready-to-wear offering of boots produced twice a year available through the online store, the Berlin flagship as well as selected wholesalers. Inspired by Berlin design and the German wilderness and alpine regions such as Zugspitze, Vanoukk focuses on quality, design and functionality. We see each purchase as an investment for the wearer rather than simply a pair of shoes, and treat each pair as so. © Michael McAtomney
VANOUKK Brand Reputation PLACE Currently available in Berlin flagship store Available online through the web store (Vanoukk.com) Available through elected wholesale boutiques Inspired by the alpine wilderness
QUALITY VANOUKK uses handmade boot making techniques, good-year welting and an extremely high level of personal service In store to get to know the clients, their desires and needs to create a specific boot for each individual. Resulting in extremely high levels of service and quality and building a bond between business and client
© Michael McAtomney
CORE BRAND VALUES | MISSION STATEMENT | BRAND CODES Durability and acute design to produce personal and unique boots for each man
PERSONALITY An all-terrain brand with a smooth
designed to fit his purpose. Ruggedness; Functionality; Aesthetically Pleasing; Minimalism; Durability
personality, focusing on design with a rugged durability to ensure both functionality and longevity with each investment.
ENDORSEMENT Working with Berlin Based Utilitarian and Sportswear inspired brand Acronym to develop a capsule collection of Ready-to-Wear boots. Endorsed by German/Irish Actor Michael Fassbender – giving the brand huge visibility in both Germany and in his current place of residence, London. © Michael McAtomney
PRODUCT RANGE
Casual Men’s Boots | Hiking Boots | Dual Purpose Boots
PRICE POINT
€350 (Ready-to-Wear) - €1200 (Full Bespoke)
VANOUKK HAUTeLUXE Luxury Pyramid
AURA
Berlin Brutalism and German design mixed with Alpine hiking and the outdoors
THE GRIFFE OUR DNA Fashion Forward Utilitarian design Specifically sourced leathers and finishings Goodyear welting technique Durability Atelier and flagship in Berlin Craftsmanship
© Michael McAtomney
© Michael McAtomney
MAISON | ATELIER Flagship store and Main Atelier in Berlin, Germany. Online store and wholesale boutiques
Brand Affinity
FUNCTIONAL
EMOTIONAL
INCLUSIVITY
EXCLUSIVITY
The functionality of the boots is integral to the brand.
Brutalist Minimalist Durable Fashion Forward Innovative Honest
Inclusivity into the German world of design
Bespoke offerings from the brand give the consumers complete exclusivity to their designs
All products are highly functional for their intended use.
Inclusivity into the brand values and brand community
Dual purpose boots offer enhanced functionality
ASSOCIATION The association of the brand with German design, engineering and functionality that is so highly regarded worldwide. Streetstyle through collaborations with Acronym Association with outdoors and hiking © Michael McAtomney
Ready-to-wear collaborations of limited supply, offering exclusivity through supply and demand
EMPATHY
EGO
SOCIAL CAUSES
The relationship developed between the brand and it’s clients through continued consultation on bespoke designs and ready-to-wear offers. This shows the brand is empathetic towards their clients and is always listening to new demands
Aesthetically pleasing Attention grabbing Comfortable Ergonomic Design
The continuation of smaller more specialized fashion labels, placing quality and personalization over quantity and capitalism. All manufacturing in-house and promoting sustainable design and production
VANOUKK SWOT Analysis STRENGTH Craftsmanship and Quality
OPPORTUNITIES
Strong design background
Continue to collaborate with Influential and unique
Strong knowledge of global fashion industry
designers to create more exposure
Australian Heritage
Focus on the correct market niche
Atelier/Flagship in Berlin
Expand distribution strategy
Connections to Australian and French Fashion Industry
Greater demand for personalized objects
Collaboration with Acronym
Return to Slow Fashion
Unique mixture of design influencers and bespoke Online site and social media connections Price point
WEAKNESSES Small scale production team if orders are too increase too rapidly Global access to bespoke offer is limited Cost of materials
© Michael McAtomney
THREATS
Threat of bigger companies (north face, palladium, APC) Continued Fast Fashion Threat Currently a weak distribution strategy to United States Threat of fluctuation in revenue due to import and export duties and limited deals with influencers abroad
VANOUKK DNA | MOOD BOARD
© Michael McAtomney
VANOUKK Consumer Target
Male Higher Education Graduate 25 – 45 Years of Age Middle to High Income ($60,000 USD upwards) Design and Aesthetics Oriented Purchases for Longevity and Exclusivity An Innovator or Early Adopter of Trends Material affinity Self-conscious but confident Lives in an Urban Environment but regularly is in touch with nature Purchasing for Self-Actualization
© Michael McAtomney
VANOUKK Brand Positioning Exclusivity" 9" 8" Empathy"
Emo:onal"
7" 6"
Ego"
Vanoukk
5"
John"Lobb"
4"
Carmina"
3"
The"Last"Conspiracy"
2"
Heschung"
1"
Crocket&Jones"
0"
Func:onal"
Sneakerboy" Loake" Loding" Meermin" Church's" Machtelinckx"
Social"Causes"
Associa:on"
Inclusivity" © Michael McAtomney
VANOUKK Sample Business Cards
Brisbane Queensland Australia Vanoukk.com Sales@vanoukk.com Bianca Young 0411 177 666 Michael McAtomney 0411 357 232
© Michael McAtomney
We are pleased to announce the 2018 Launch of Berlin’s newest men’s footwear brand VANOUKK. The brain child of two Australian Ex-Pat designers Michael McAtomney and Bianca Young, the brand perfectly fuses the outdoor cultural identity felt by many Australians with expert and detailed German design to create a bespoke men’s footwear brand rivaled by few. Selling Bespoke boots in casual, hiking and dual purpose styles alongside a limited release of ready-to-wear designs, the Berlin flagship and accompanying atelier have been in the works for around 18 months now, and VANOUKK is hugely proud to invite members of the press to view and partake in our opening night. With the finest materials sourced globally and all manufacturing completed in-house by expert craftsman, the VANOUKK brand represents the new face of Berlin design in 2018. Having grown up in regional Australia and spending the majority of his youth outdoors camping, hiking, hunting or fishing with his brothers and father in rugged hinterland regions or in outback Queensland, Michael started his career as a builder and went on to study fashion design in Australia before working in bespoke and made-to-measure menswear, men’s sportswear design and fashion consulting, before finally completing his MBA in Fashion Business through IFA Paris in 2017. His desire to combine his love of design, aesthetics and bespoke tailoring with his nostalgia for the outdoors birthed the idea of Vanoukk. He was quick to recruit his longtime friend, fellow fashion designer and fellow Australian ex-pat Bianca Young to launch the business in 2018. Bianca, also an avid hiker and outdoor enthusiast, comes from a more refined background of bridal and womenswear. The combination of these two contrasting design aesthetics offers a product that is so far unseen on the men’s footwear market.
Press Contact
Michael McAtomney Sales@vanoukk.com +33 6 27 68 11 53 © Michael McAtomney
Sales Contact
Bianca Young Sales@vanoukk.com +61 411 177 666