Under Armour Pop Up Shop

FASM 410 Professor Cannata

Under Armour Pop-up Shop

Alia Sobrepena Angela Kastrunes Merica Ramirez Olivia Brandt

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Table of Contents Executive summary Company Summary

Mission and Vision History

Business Structure Plans for growth

Competitive analysis

4 5

5 6 7 8

9

STORE LOCATION 30

Location Justification 31 Area Lifestyle

32 Sales Potential 33 Barra Competition 34 Area Attractions 35 Human Resources 36 Legalities

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Swot analysis 10 Identity Matrix 11

Market positioning 12

Distribution

13 Communication & Promotion 14

STORE DESIGN 38

Market Analysis 15

Overview of Brazil 16

Brazil in the GRDI 17 Pestel 18

Market size

20

Entry Mode

22

Key Players

23

Target Customer 27

Physical Structure Space Costing

39 42

Product plan 43

Capsule Collection Regular Styles

44 45

Promotional Plan 46 Financial Plan 48 Conclusion 50 Bibliography 51

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EXECUTIVE SUMMARY The following pop-up shop was developed in an Undergraduate Retail Management course for the rising sportswear brand Under Armour (UA), by students Alia Sobrepena, Angela Kastrunes, Mericia Ramirez and Olivia Brandt. Their goals developing the pop-up shop were to build brand awareness, create a memorable experience for customers and globally expand to test a new market.

South America is an attractive market for brands due to the growing amount of economic opportunities. Brazil offers a unique opportunity for sportswear brands because people’s perceptions about fitness is positively changing. These two market factors influenced the UA team to strategically choose their pop-up shop to leverage off of the Summer 2016 Olympics in Rio de Janeiro, Brazil.

Under Armour’s pop up shop will be located in the Barra Shopping Center, in Rio de Janeiro, Brazil. The UA team recognizes that the Brazilian consumer is tech savvy and active on social media. Promotional material has been developed to specifically cater to these consumers through collaboration with Brazilian fitness bloggers. A UA capsule collection was also developed to offer customers limited Olympic merchandise. This pop-up shop with last for three months, starting June 1st, 2016 and ending August 31st, 2016. The UA team is confident in their decisions that they made when developing this pop-up shop, as a highly digital company the team wanted to create a pop-up shop that reflected the brand in this way. Through the use of digital signage, interactive games, and promotional strategies, the pop-up shop should yield success for Under Armour and earn a profit. * Conversion rate used consistently throughout this book is $1USD to R$ 4, as of Feburary 20th.

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COMPANY SUMMARY Mission: “Make all athletes better through passion, design, and the relentless pursuit of innovation”

VISION: Empower athletes everywhere 5

History Under Armour (UA) is an American sportswear company that was started in 1996 by, former University of Maryland football player, Kevin Plank. After many two-a-day football practices, Plank noticed that he and his teammates were constantly drenching their cotton tee shirts with sweat. Through extensive research on synthetic fabrics, Kevin developed a solution and created the first moisture-wicking tee shirt. This performance shirt offered compression and was sold out of Plank’s grandmother’s garage for the next year. Under Armour supplies sportswear apparel, accessories, footwear, and digital technology for men, women, and children. The company’s three iconic gear lines are: HeatGear®, ColdGear®, and AllSeasonGear®.

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Business structure Under Armour is a vertically integrated company that is publicly traded on the New York Stock Exchange, (NYSE:UA). This business structure gives the company the ability to be independent and have more control over their specialized assets. It offers a competitive advantage because they are able to create, develop, market and distribute their performance products more efficiently. Under Armour’s strives to offer quality innovation through securing patents in apparel, footwear, and digital accessories.

Kevin Plank - Chief Executive Officer & Chairman of the Board

Lawrence Malloy - Chief Financial Officer

James Hardy - Executive Vice President, Global Operations

Henry Stafford - Chief Merchandising Office

Robin Thurston - Chief Digital Officer

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Plans For Growth

In 2014, Under Armour’s revenue reached R$12.32 billion. Kevin Plank has set a future company goal of reaching R$31.2 billion in sales by 2018. He also projects that UA’s Digital Fitness revenue will grow from R$360 million to R$1.5 billion, a 322% increase. A 5-year global expansion plan has been developed to reach customers in Asia, Europe, Africa and Latin America. In 2016, UA will be concentrated on entering the following locations: France, Turkey, North Africa, South Africa, Vietnam, Paraguay, and Uruguay. The company still would like to grow nationally but global expansion offers some better opportunities. The Baltimore based company has been working diligently over the past few years by increasing its sales rapidly, compared to top competitors. UA’s commitment to expansion and upscaling revenue, demonstrates a persistent effort in becoming the top global retailer in the sportswear industry.

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Competitive analysis

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Swot STRENGTHS

WEAKNESSES

Wearable technology

International brand recognition

National brand recognition

Product recalls

Apparel

Social media

Vertical Integration Patented technology Distribution channels including: E-commerce, Brick & Mortar

OPPORTUNITIES

THREATS

Athleisure lifestyle trend

Competitors

Develop an app with purchasing power

Fast fashion

Global expansion Expand Brick & Mortar to the West Coast

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Identity matrix

AMERICAN

PERFORMANCE APPAREL

PRODUCT INNOVATION WEARABLE TECHNOLOGY

COMMUNITY EMPOWERMENT

COMMITTED TO BEING BETTER

PRODUCT

ORGANIZATION

ATHLETIC GOAL ORIENTED MOTIVATED PERFORMANCE DRIVEN

PERSON

SYMBOL

BRAND IDENTITY MATRIX

PRODUCT - Performance apparel designed for the true athlete is at the core of UA’s brand. It started with the innovative sweat-wicking teeshirts and has evolved into other product categories.

UA’s focus has been on men’s apparel, especially football, but is shifting due to other market opportunities.

ORGANIZATION - The Philadelphia based brand is committed to the athlete and delivering products that are innovative to enhance their performance. UA strives to create fabrics and products that eliminate problems that arise during training sessions or game time events. They empower their communities through volunteering, charity events and other initiative programs.

PERSON - UA can be identified as a masculine brand. It is focused on the athletic individual who has the willpower to perform at their best, no matter the conditions. The brand mentality is continuously work hard as if their sport, or business, is marathon, not a sprint.

SYMBOL - The letters U and A have been fused together to form the brand’s iconic logo. When consumers see the Universal Guarantee of Performance symbol, they know they are purchasing a great quality UA product. “Protect This House” is a company motto that evokes passion and strength to fight for what is yours and not to let anyone stand in the way of success.

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Market positioning

GLOBAL ACCESSIBILITY +

GLOBAL ACCESSIBILITY -

PRICE +

PRICE The perceptual map is a visual comparison, based on price and number of stores globally, of Under Armour to its 9 top competitors worldwide. These brands offer a variety of clothing, accessory and footwear products within the athletic market, both in Brick and Mortar and E Commerce.

Under Armour is positioned very close to Adidas, but is fighting to keep up with Nike, their top competitor. All two brands are perceived as high priced brands and have a high level of accessibility. Reebok, Fila and New Balance demonstrates some competition for Under Armour but differentiate due to their lower price points and active participation in the global market.

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Distribution Existing channels: UA sells through the top three forms of distribution channels: wholesale, direct to consumer, and E-Commerce. Though most brands start off “direct to consumer”, Under Armour started off selling specifically through wholesale.

UA’s wholesale retailing represents over 67% of their sales last year which was about R$8.4 billion. UA plans to have over 2,000 shops-in-shops worldwide with key wholesale accounts by 2018.

The Direct to Consumer retailing includes the UA Brand House and UA Factory House. The UA Brand House is equivalent to a regular brick and mortar retailer.

Currently, there are five brand houses in North America. The UA Factory House is an outlet version of the retailer with 125 in North America.

Last year, 32% of the brand’s net revenue came from Direct to Consumer (which was equal to R$ 1 Billion) UA’s store count increased by 25 year-over-year to 160 in 2015. Under Armour also offers an E-Commerce site with shipping to over 24 countries globally.

Distribution Models North America distribution facilities lease and operate in California and Maryland. In addition, they distribute products in North America through third-party logistics providers with primary locations in Canada, New Jersey and Florida.

Europe sells apparel, footwear and accessories through retailers, websites and independent distributors in certain European countries. UA generally distributes products to their retail customers and e-commerce consumers in Europe through a third-party logistics provider based out of Venlo, The Netherlands. This agreement continues through April 2017.

UA sells apparel, footwear and accessories products in China through seven brand and two factory house stores which Under Armour operates, along with stores operated by distribution partners. UA distributes products in AsiaPacific primarily through a third-party logistics provider based out of Hong Kong.

UA has a license agreement with Dome Corporation, which produces, markets and sells branded apparel, footwear and accessories in Japan and Korea.

They are actively involved with this licensee to develop variations of our products for the different sizes, sports interests and preferences of Japanese and Korean consumers.

Latin America sells products in Chile, Mexico and Brazil through wholesale distributors, website operations and two brand and six factory house stores. In these countries they operate through third-party and independent distribution facilities.

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Communication and Promotion Last year, Under Armour spent about R$1.32 Billion alone on advertising campaigns. UA purchases print ad space in publications such as ESPN Magazine, Sports Illustrated, Health, and many more. They use social media channels to promote products/lifestyle of the brand. Though they feature content on some of their social media sites, it does not seem to be consistent throughout every channel (ex. Youtube lifestyle videos) Their inconsistency to post regularly on their social media sites hinders a great source of advertising, causing them to miss the mark for a younger customer base (which Kevin Plank is striving to achieve). The brand’s current campaign is entitled we WILL what we want.

This features popular women athletes/women in the media. In the beginning of 2016, the brand bought a R$64 million partnership with Yale. This deal includes producing all of Yale’s athletic wear, as well as the school store apparel.

Their current direct marketing strategies are not very strong. In 2012, they made their College internship application only using social media.

This required applicants to follow UA on all platforms to find out info on how to apply.

The current sales promotions in place for US mainly take place on E-Commerce. This sales tactic includes earning free shipping on orders of R$196 or more. The UA Healthbox Subscription grants free membership to UA Record app (which is the brand’s first mobile app).

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Market Analysis

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Overview of Brazil

Throughout this section, an in depth analysis will be done on Rio de Janeiro's retail situation in the sportswear industry. The influence of the Global Retail Development Index has created a base for making a choice in which new market to enter for Under Armour and the building of research has stemmed from there. This analysis of the Brazilian market will also be done through the PESTEL Anaylsis and research of the market size, key competitors of Under Armour that are already present in the market. Demographic and psychographic traits of the population have been learned so Under Armour can capitalize on them when opening the pop-up shop.

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Brazil In the GRDI Trailing close behind Uruguay and Chile, Brazil comes in third place for Latin America in the 2015 Global Retail Development Index. Reporting that despite the macroeconomic struggles, retail within the country has seen growth and it is expecting further development. With total retail sales at R$3.1 trillion for 2014, it was a 2.2% growth for the country and unemployment rates stayed relatively low. Most of this growth was seen in the beauty and cosmetic industry but there was also a focus on luxury expansion within Sao Paulo and Rio de Janeiro as well as food chain franchising.

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Market Size The sportswear industry for Brazil is set to be most lucrative given half of the population is under the age of 30 and 80 million people claiming to engage in sport. With the Fifa world cup bringing awareness to sporting events and the upcoming summer Olympics set to take place in Rio, more and more attention to the sportswear industry in general is rising in Brazil. Performance apparel and footwear are the largest categories in sportswear, which total to 49% of value sale shares in 2014.

Whatever sports they practice, Brazilians have always tended to purchase performance brands and products as a way of showing their dedication to their discipline and encouraging them in its practice. “Sports-inspired apparel registered the strongest performance within sportswear in 2014, growing its value sales by 12% to reach sales of BRL 5,274 million� (Euromonitor, 2015). The main sport for Brazil is football, ranked 5th largest number of teams and players in the world. Behind football (soccer), is running with 4.5 million runners in the country which is good for Under Armour.

With our patented quick dry technology we can cater to the football and running sectors by providing high performance products. A downfall to the market in Brazil are taxes on importation from China and other countries are extremely high, this is in attempts to save and promote local manufacturers.

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The Chart below shows projected forecast for sportswear in Brazil for the next 4 years. For the sportswear section alone there will be a R$ 2 million increase in that time, many other sports related categories will see increases as well. This forecast sheds a positive light into Under Armour’s future within the Brazilian market, the sportswear sections are forecasted to increase in the coming years giving Under Armour the opportunity to expand within Brazil.

The retail channels in which merchandise is sold is important to factor in when researching how to enter this market with our pop up shop. The chart below shows the different type of retailers within Brazil and the growth percentage within the last six years. Although more traditional ways of retailing did see slight increases, the major growth and percentage jump was in non-store retailing. With this information we will build our pop up shop keeping in mind that the Brazilian market has seen more growth within Internet retailing and omni-channel selling.

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Entry Mode Due to Brazil’s culture valuing relationships and social interactions, Under Armour will use a joint venture as the mode of entry for the pop-up shop. It has been identified that it can be difficult to enter the public sector without the help of a Brazilian partner, so this was the driving factor when selecting a mode of entry. It will allow Under Armour to enter the market faster and start gaining recognition.

Benefits of a joint venture with a Brazilian partner:

Knowledge and experience with the Brazilian consumer

Access to national subsidies, loans, and tax deductibles

Lower economic risk

The success of the joint venture will heavily rely on:

Establishing inter-cultural trust

Identifying clear business goals, rights and responsibilities

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Understanding and accepting of the partner’s culture

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Key Players

Adidas

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Reebok Company Description and History Founded in 1895 as J.W. Foster and Sons in Bolton, Lancashire, England.

It was later renamed Reebok and has been operating as a subsidiary of Adidas since 2005.

Headquarters: located in Canton, Massachusetts, U.S. with regional offices in Amsterdam (EMEA), Montreal (Canada), Hong Kong (Asia Pacific) and Mexico City (Central and South America) founder : J.W. Foster President: Paul Fireman

Scope and Size Currently, Reebok has over 9000 employees worldwide. As many activewear Companies, Reebok’s product categories are sorted by sport/activity. They include training, running, walking, crossfit, combat, studio/yoga, and dance.

Reebok has over 1800 retail stores/outlets worldwide and sell through thirdparty distributors throughout the world. Reebok is the official footwear and apparel sponsor for UFC, CrossFit, Spartan Race, and Les Mills.

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Deny Sports

Deny is the leading sporting good shop in south America with over 40 locations.

They provide an array of athletic wear brands, as well as sporting and exercise equipment.

One of their most popular locations is in the Barra Shopping center. They are consider one of our indirect competitors because it is a one-stop-shop for all things active. This store saves time, while providing products from all of your favorite brands.

Gap

Gap, is an American multinational clothing and accessories retailer.

It was founded in 1969 by Donald Fisher and Doris F. Fisher and is headquartered in San Francisco, California. The company operates five primary divisions: the namesake banner, Banana Republic, Old Navy, Intermix, and Athleta.

Gap has recently been promoting their “gap fit” line, offering consumers a wide variety of athletic wear for any activity/a fraction of the price.

This competes with UA because of their strong focus on athletic wear, but also offering customers clothing for other occasions.

Paqueta Sports

Paqueta Sports began June 20, 1945, as a small shoe store.

They strive to bring their customers the best in design, technology and comfort through the best sports brands in the world.

Now has over 30 stores in the states of Rio Grande do Sul, Santa Catarina, Rio de Janeiro, São Paulo, Federal District, Mato Grosso, Paraná, Bahia and Pernambuco.

It has 18,000 employees, more than 350 stores and sells over 12 million pairs of shoes per year.

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Store Location

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Location Justification

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Area lifestyle Barra da Tijuca has an average of 320,000 residents located on the West side of Rio de Janeiro. This area has gained great popularity among the citizens and has an estimated population growth of 125% for 2020. The neighborhood has experienced a construction boom, which includes more recreational spaces and widened streets, and has been given the nickname of “Miami of Rio”. It has become a highly residential, commercial and business area. Barra da Tijuca contains the largest mall in Latin America and has the largest concentration of shopping centers.

Over the last 5 years, Barra da Tijuca’s real estate has been developed to offer residential complexes and office buildings.

The contemporary styled apartments exhibit design based on some of the latest innovations of architecture, bringing a sense of modernity. Families and other residents can enjoy a number of attractive amenities, such as swimming pools, playgrounds and gyms. These developments have attracted a great number of the younger population to the area. It now represents the youngest and most modern area of Rio de Janeiro.

Barra da Tijuca’s neighborhood main trends consist of enjoying of good entertainment and food, shopping and participating in sports clubs. People who live and work in this area are highly active. When they are not working, they enjoy their leisurely activities like seeing the newest movie at the theater. The gym has become a big lifestyle movement, a clear reflection of the “Athleisure” acceptance of the population. The gym is not only a place where people go to exercise and train, but a place to socialize and relax. Brazilian gyms focus on creating a social environment where people like to hang out and meet new people. The most popular fitness centers offer classes in: dance, yoga, cross-fit, high-intensity and boxing. All these options, have become accepted sport activities within the neighborhood, especially targeting the female consumer.

The active and healthy inclination of Barra da Tijuca´s population comes from a positive shift towards social and environmental awareness. The green consumption is becoming a strong factor within the fashion environment and product development process. The millennial populace have a significant valorization for organic products and social responsibility related to the brands they buy. In this terms, the healthier and greener someone is, the trendier and stylish he or she becomes.

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Sales potential BarraShopping is one of the largest shopping and multipurpose complexes in Latin America. It is a stable location to operate a pop-up shop because there are less seasonality issues.

BarraShopping presents a high amount of sales potential: 26 million people visited the complex in 2014 77% of that are Classes A & B, 61% were women consumers BarraShopping employed 10,380 jobs Retail Details: Total leasable area - 74,714/m2 Rental revenue increased by 7.7% from R$22.4million to R$24.1 million Average rent* - R$196/m2 Sales per m2 ** - R$2,224 *Calculated by the sum of base and overage rents charged from tenants divided by the Gross Leasable Area (GLA) **Only considers the GLA from stores that reports sales, excludes kiosks Parking & Transportation: 5,000 parking spaces at BarraShopping Mass Transit Services: Uber, Taxi, and Bus Routes Minibus Fleet is free fleet circulating around the BarraShopping condominiums, shopping areas, business centers and hotels.

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Barra Competition As the second largest fitness market, Brazil offers much competition to UA. Nike is the leading company in sportswear in Brazil, closely followed by Adidas with the strongest performance. The country has many local athletic wear companies such as Bia Brazil, Shakti Activewear, and Sara-Da-Silva.

With so much active wear in one country, we narrowed down our main competition based off of the geographic in which we would be opening our pop-up shop. We are currently planning on opening our shop in the Barra Shopping Center since it is the largest mall in Brazil which earns the most foot traffic of customers every year. Opening our shop in Barra guarantees notoriety from locals, as well as the visiting tourists for the Olympic games.

Our top 3 competitors in the Barra Center are Nike, Adidas, and Puma.

Adidas: With over 457k followers on the Adidas Brazil Instagram account, it’s no surprise that the stores in Rio are doing so well. Launching a Brazil signature line this past year, the company made about R$4.8 mil in sales just from that collection alone. Sales in Brazil have gone up nearly 12 percent since last year.

Puma: There are over 10,00 Facebook check-ins at the Puma store in Barra Shopping Mall, making it one of the most visited spots in the shopping center. After the World Cup in Brazil, it gained much brand recognition within the country, making an increase of 21% in brand recognition. This totaled an increase in Brazil sales by 19.3%

Nike: At the end of 2014, Nike predicted that Brazil would be the third largest point of sales due to the Olympics. They predict a $4 Billion revenue goal for the end of 2016 and R$64 million coming specifically from Brazil.

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Area Attractions Within Barra da Tijuca the attractions are plentiful from live music to beaches, the area has something for everyone. Appealing to a younger conscious consumer there are condominiums in this suburb that are built with sustainability in mind which is a luxury in terms of living within Rio. The Barra Shopping center and New York City center combined create a mega mall within this area.

The largest beach line in Rio (17 kms) is also located within this western zone, white beaches with rough waters makes it an attractive site for the youth and athletes of Rio. Beaches of are the most sought after by active citizens which is most beneficial to Under Armour opening within this area, creating benefit and convenience to the consumer.

There are many options when it comes to entertainment in this area, bowling, cinemas, shopping, but in terms of nightlife Barra da Tijuca has a similar aesthetic as Miami with a carioca touch. With a variety of bars and nightclubs there is always a place to go. One can follow local traditions and have a few drinks at the bar, commonly known as “vv� then head on over to the nightclubs for some dancing.

You can find restaurants serving cuisines from all over the world especially from Europe and Asia. Diversity in dining in Barra da Tijuca is found in the food and price, with famous franchises and high end dining. With an array of attractions and diversity in choices we feel that the Under Armour consumer will respond positively to this established area. The development and youthful vibe of Barra da Tijuca and the Barra Shopping center will cater to all the consumer needs.

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Human Resources

The main tasks required to be performed for this pop-up shop include managing personnel, sales and inventory. The company also needs people helping with foot traffic around the store, taking care of customer service and greeting people who enter the store. Under Armour will need people to be in charge of completing the sales and taking care of product returns, better known as cashiers.

The company will have some of its associates in charge of welcoming customers to participate in “UA Games�. This fun fitness experience has the goal of bringing consumers the experience of participating in the Olympic games, giving them the opportunity to participate not just as viewers but also athletes.

UA has designed a recruitment plan for its Pop Up shop in Rio de Janeiro for opening positions.

These will include 2 store managers, 15 sales associates/cashiers, 3 loss prevention employees, 2 assistant managers, 1 social media manager and 2 janitorial workers. For each of these positions, the company will use relocate some of their top US employees for managing positions. The five managerial positions and two sales associates positions will be filled by US employees. The rest of those positions will be filled from local Brazilians. Under Armour will utilize recruiting services in Rio, such as online agencies riodejaneiro.angloinfo.com, www.jobsinrio.com and Lee Hetch Harrison management consulting agency.

UA is planning to compensate their local recruit employees working as Sales Associates, cashiers and loss preventions positions with the minimum wage of R$36.6 ($9.15) 50% off for all product categories, as well as a minimum working hour of 26 hours per week. Managing positions such as store management will get an economical compensation of R$ 18,036 ($4,509) monthly plus 50% off and a minimum working schedules of 42 hours per week. Assistant managers R$12,908 ($3,227) monthly plus store benefits and minimum schedule of 42 hours. The social media Manager will get the save store benefits of 50% discount on merchandise and will receive a monthly wage of R$20000 ($5000). Associate managers will receive the same store benefits and discounts plus R$51.72 ($12.93) per hour. Additionally Under armour will employ 2 janitorial staff employees which will receive an economical compensation of R$150 ($37.5) per hour. They will work an hour per day.

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Legalities Trade Regulations: UA has at least one factory and distribution center in all of the major continents. That being said, regions like Latin America require some sort of transportation to the port of each country. · The Federative Republic of Brazil is Latin America’s largest economy. · Brazil is the largest country in Latin America and fifth largest in the world. · Brazil’s 2014 Gross Domestic Product (GDP) of R $9.2 trillion ranks Brazil as

the world’s seventh-largest economy.

Payment:

As in any country, payment is a very important factor on the economy. Currency exchange rates can make or break tourists from choosing to travel to a specific country (especially if their currency of choice is weaker than the destination’s native form of payment. Since our pop up shop is taking place during the highest peak of tourism, it is important to learn about the exchange rates, as well as accepted forms of payment. · Brazilian real is Brazil’s form of currency. As of 2/20/16, the USD to real conversion rate is $1=4 reals · 80% of Brazilians use local payment methods when purchasing online. This includes the real and national credit cards · Though international credit cards are accepted almost anywhere, only 20% of Brazilian buyers have access to international credit cards. That’s why it is key for vendors to accept local credit cards

Building:

Building codes play a large part into the opening of new shops. These laws determine the requirements needed in order to successful open a store. Since we are building a pop up shop in a retail space of a mall, our regulations are not as strict since the mall has to have already abide by building laws. · License for a property built or refurbished without a permit, but which follows the legal requirements in place at the time it was done. The regularization may be asked together with the refurbishment. · Whenever a project plans more than the use of 80 parking units, it is necessary to obtain the permit from the City Transport Secretary.

Health and Safety:

Health and Safety codes play a large part into the employee’s rights and benefits. These laws ensure workers are not being overworked, underpaid, or working in unhealthy conditions. · Labor inspection in Brazil has also a preventive nature. Labor Inspectors give guidance, provide information and technical advice to workers and to employers subject to labor inspection, according to certain criteria such as: administrative opportunity and convenience; previous investigation and analysis of situations that could generate occupational diseases and accidents; the necessary preventive measures to be taken; the notification of those subject to undergoing inspections so they are better able to fulfill their obligations, correct irregularities and adopt measures that will eliminate risks to health and safety of employees, within their facilities or working practices.

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store design For our space within the Barra shopping center we have decided to strategically place our store between direct and indirect competitors, Nike and Gap. Located in the Americas section/floor of the mall our store is a corner end unit with window displays on multiple sides which gives us more visibility to the consumer. The average retail space for the Barra Shopping center is 1,230 sq.ft. Our location that was chose was slightly above the average size at 1510.5 sq. ft. of retail floor space in addition to the employee stock room, fitting rooms and bathroom which is an additional 370 sq.ft.

The store consists of an industrial design aesthetic. This includes steel detailing, and very minimal decorations. The store window includes a hologram-like screens featuring the Under Armor and Olympic rings. Through our store, we plan to have multiple virtualreality workout stations for customers to test the usability of working out, while wearing our products. These virtual games are similar to “wii games” , making you feel as if you are actually competing in the Olympic games. Our product assortment around the store includes Under Armour’s best-selling products, as well as the Olympic capsule collection.

Our wearable technology will be displayed behind the checkout counter which also includes computers for our “ship it home” concept. To bring the omni-channel aspect to our shop, the consumer can have the choice to purchase our products online and ship them home. This is catered to the traveling consumer who may be in Rio for touring and may not have room in their bags.

Barra’s shopping mall includes a security system within each store space. This prevents theft and damage after hours. The store also includes 14 sprinklers in order to warn mall patrons of fire (and to also control fires which could occur in the store).

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Floor Plan

Front Facade

Side Facade

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Merchandise Display Area

Checkout - Ship it home

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Merchandise Display Area

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space costing Item Pedestal

Cost in BRL 14

usd

25,200 450 ea

6,300

Display

2

Metal Trash Bin

2

Railing- Black Metal

5

MX300

2

122000

30,500

Stairs_52

4

2400

600

Hy Pro- Football Goal

1

500

125

Pure Strength Dumbell Rack

1

1360

340

Close Couple Toilet

1

600

150

Basin and Mirror

1

2200

550

Pro Casa Cabinet

1

600

150

T Shirt Rack

5

1300 (65 ea)

325

T Shirt Stand

4

960 (60 ea)

240

Curved Clothes Rack

2

480

120

iMac Core 2 Duo

4

Marseille Olive Soap

1

40

10

Ceramic Tissue Box

1

140

35

Shelf Display

3

2400

600

Display

4

3200

800

Tie Top Linen Curtains

3

780

195

Square Mirror

1

480

120

2400 (300ea)

600

800

200

3500 (175 ea.)

25600 (1,600)

875

6400

Polish Chrome Ceiling Light

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19680 (120 ea)

4920

Metal Beam

10

3000 (75 ea)

750

Toilet Paper Dispenser

1

152

38

Toilet Paper Holder

1

80

20

Detroit Trash Bin

1

160

40

Palmero Over Mirror Light

1

640

160

Modena Display Unit

8

5120 (160 ea)

1280

Laver Table and Chairs

1

2800

700

mx800 Dual camera

4

easy chair

2

3,600

Zinc Bench

5

5,000 (250 ea) 1250

display case

2

2,000

500

799,172

199793

Total

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# of Items

560,000 (35,000ea)140000 900

Product Plan

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Capsule Collection

Men’s tee (The Sao Palo) UABRAZLS2

Men’s shorts1 (The Fortaleza) UABRAZS15

Men’s jacket (The Recife) UABRAZJ4

Men’s tank (The Salvador) UABRAZTT3

Woman’s long sleeved tee (The Belem) UABRAZLS18

Men’s short sleeved tee (The Rio) UABRAZSS1

Woman’s tank (The Brasilia) UABRAZTT19

Woman’s short sleeved tee (The Belo) UABRAZSS17

Men’s jacket (The Recife) UABRAZJ4

See Appendix for Complete Product Assortment List

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Woman’s shorts 1 (The Olinda) UABRAZS21

Regular Styles

Men’s short sleeved tee UAMSS11

Men’s jacket UAMJ14

Men’s tank UAMTT13

Woman’s jacket UAWJ14

Woman’s shorts 1 UAWS15

UA Healthbox UAMT1

Men’s shorts1 UAMS15

Men’s long sleeved tee UAMLS12

Woman’s tank UAWTT13

Woman’s shorts 2 UAWS216

Headbands UAWH17

See Appendix for Complete Product Assortment List

Woman’s long sleeved tee UAWLS12

Bag UAWMB18

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PROMOTIONAL PLAN Promotional Chart

For the UA pop-up shop in Rio, the promotional plan is spread throughout a 8 month time period.

According to our previous knowledge of the company promotions and our target customers we will be communicating our pop-up shop through multiple channels. At the end of 2015, Brazil was considered one of the largest internet markets in the world. Currently, the country has 128.5 million internet users across all online devices so we have chosen mainly digital marketing platforms.

Social Media: In Brazil, 92% of the internet users use social media. We will use Facebook, Instagram, Twitter, and Youtube to promote the pop up shop. With 89% of users on Facebook and 63% percent on Instagram, UA will utilize these channels by hiring a social media manager whose salary is included in human resources expenses. We will use the promotional campaign footage from previous campaigns and the recent “Rule Yourself� campaigns that feature Team USA gymnasts. This content will be promoted through the use of photography, GIFs and short videos.

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Youtube/ Tv: With Brazil being the 6th largest YouTube market in the world, Brazilians view

125 million online videos per month. Online videos have an 84% reach with consumers and television is present in 95% of Brazilian households. Promotional material will only be broadcasted during the month of July because of high advertising costs during the olympics. The television commercials will air on Brazil's largest television network, Globo during and towards the end of July leading into the Olympic Opening Ceremony on August 5th.

Blogging: Out of the 128.5 million online users, over 58% read fashion/fitness blogs.

Our plan is to reach out to famous Brazilian bloggers that touch on both fashion and fitness. We would reach out to about 100 bloggers (10 large bloggers and 90 underthe-radar bloggers) in April of 2016 to get an idea of who would be interested in participating in the #UAGames campaign.

Bloggers would be required to post one blog post the week of our pop-up shop opening (Week of June 21st 2016) and 2 social media posts per month across all channels (june, july, august) tagging under armour and using the #uagames hashtag.

In return for completing the campaign, bloggers will receive item of choice from the UA capsule collection to promote within their posts and social media posts.The 10 exclusive bloggers will receive R$2000 compensation for their completion of the campaign, on top of the other blogger perks.

Celebrities:

Upon arriving in Rio we will have multiple olympic athlete appearances during the media week before the games. With UA already sponsoring multiple olympic athletes, these appearances are pre existing in some athletes contracts, we also have costing for unsponsored team members.

A celebrity appearance to the pop-up shop would include:

-1-2 onsite interviews

-15 minute management meet and greet

-2-2.5 hours public appearance, autographs and pictures Under Armour will be able to use the athlete's name and likeness throughout promotional material during that month.

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FINANCIAL PLAN Income Statement JUNE JULY AUGUST TOTAL R$ 1,101,950.09

R$ 1,239,693.85

R$ 1,239,693.85

R$ 3,581,337.79 R$ 440,780.04 R$ 495,877.54 R$ 495,877.54 R$ 1,432,535.12

Net Sales Cost of Goods Gross Margin EXPENSES Design of Space Storing Wages Rent and Utilities Logistics Janitorial Promotional Activities Hotel and Flight

R$ 661,170.05 R$ 743,816.31 R$ 743,816.31 R$ 2,148,802.67

TOTAL EXPENSES

R$ 987,481.16 R$ 332,380.16 R$ 188,589.16 R$ 1,508,450.48

R$ 799,192.00 R$ 3,214.40

R$ 89,453.76 R$ 30,000.00 R$ 7,000.00

R$ 9,000.00

R$ 25,997.00 R$ 23,624.00

0 R$ 3,214.40 R$ 89,453.76 R$ 30,000.00 R$ 7,000.00 R$ 9,300.00 R$ 175,997.00 R$ 17,415.00

0 R$ 3,214.40

R$ 89,453.76 R$ 30,000.00 R$ 7,000.00

R$ 9,300.00

R$ 25,997.00 R$ 23,624.00

EARNINGS

Average Price of Products PRODUCT CATEGORY Women's Jacket Women's Shirts and Tanks Women's Shorts Men's Jackets Men's Shirts and Tanks Men's Shorts Technology Accessories Miscellaneous

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AVERAGE PRICE R$ 184.97 R$ 179.92 R$ 99.96 R$ 269.95 R$ 175.92 R$ 159.96 R$ 760.00 R$ 119.96

R$ 799,192.00

R$ 9,643.20 R$ 268,361.28

R$ 90,000.00

R$ 21,000.00

R$ 27,600.00

R$ 227,991.00

R$ 64,663.00

R$ 640,352.19

FINANCIAL PLAN Traffic and Sales Potential PERCENTAGE OF CONVERSION FROM FOOT TRAFFIC TO FOOT FALL

LOCATION FOOT TRAFFIC PER MONTH 2,166,600

FOOTFALL Conv. % FOOTFALL TO TRANSACT. AVERAGE BASKET AMOUNT

(all amounts shown in R$) (MKUP 60%)

TOTAL REVENUE COST OF GOODS SOLD

PRODUCT CATEGORY Women's Jackets Women's Shirts and Tanks Women's Shorts Men's Jackets Men's Shirts and Tanks Men's Shorts Technology Accessories Miscellaneous Accessories

TOTAL

% 0.05 0.25 0.1 0.05 0.25 0.15 0.05 0.1 1

0.80% 0.90% MONTH 1 -­‐ JUNE MONTH 2 -­‐ JULY 17333 19499 10.00% 10.00% R$ 635.76

R$ 635.76

TOT.REV TOT.REV R$ 1,101,950.09

R$ 1,239,693.85

R$ 440,780.04

R$ 495,877.54

0.90% MONTH 3 -­‐ AUGUST TOTAL 19499 56332 10.00% R$ 635.76 TOT.REV R$ 1,239,693.85

R$ 3,581,337.80

R$ 495,877.54

R$ 1,432,535.12

Month 1 R$ 55,097.50

R$ 275,487.52

R$ 110,195.01

R$ 55,097.50

R$ 275,487.52

R$ 165,292.51

R$ 55,097.50

Month 3 R$ 61,984.69

R$ 309,923.46

R$ 123,969.39

R$ 61,984.69

R$ 309,923.46

R$ 185,954.08

R$ 61,984.69

Month 2 R$ 61,984.69

R$ 309,923.46 R$ 123,969.39 R$ 61,984.69

R$ 309,923.46 R$ 185,954.08 R$ 61,984.69

Average Number of Units sold per month PRODUCT CATEGORY Women's Jacket Women's Shirts and Tanks Women's Shorts Men's Jackets Men's Shirts and Tanks Men's Shorts Technology Accessories Miscellaneous

JUNE

JULY

AUGUST

298 1531 1102 204 1566 1033 72 94

335 1723 1240 230 1762 1163 82 106

335 1723 1240 230 1762 1163 82 106

TOTAL UNITS 968 4977 3582 664 5090 3359 236 306 19182

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CONCLUSION

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After thorough research on the Brazilian market and the characteristics of Rio de Janeiro, Under Armour will test this foreign location with their pop-up shop surrounding the 2016 Summer Olympics. The market has proved to be well adapted to technology and heavily influenced by sports and athletics therefore will support the company’s strategic planning that is already in place. Using momentum from current events in the geographic location, UA will create a pop-up shop that encompasses the digital growth of the market while selling their classic athletic apparel to the active consumer. The pop-up shop will not only bring brand awareness to the untapped market of Rio but also generate revenue for UA and create the opportunity to open a permanent brick and mortar store.

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