grafton elliot nicole liebman owen coale salem demirkon under armour: new product line
TRANSCRIPT
Grafton Elliot
Nicole Liebman
Owen Coale
Salem Demirkon
UNDER ARMOUR: NEW PRODUCT LINE
COMPANY PROFILE: BACKGROUND• One of the leaders today in the sporting clothes and accessories industry.
• Based out of Baltimore, MD.
• Annual sales around $2.25 billion dollars and continuing to grow.
• Biggest competitor is Nike (Columbia, Adidas, Reebok)
• Annual revenue of around $25 billion
COMPANY PROFILE CONT… • Under Armour offers a total of five product lines:
• Cold Gear
• Loose Gear
• Turf Gear
• All-Season Gear
• Heat Gear
• Firm focuses on innovative products
• Shirts that monitor heart rate
• Shoes that mimic the human spine
• Tape-replacing cleat
PRODUCT: UNDER ARMOUR SNOWBOARDING BOOTS AND HELMETS
• Cold gear boots
• Cold gear helmets (Over Armour by Under Armour)
MARKET POTENTIAL
• Number of US snowboarders in 2010= 6.1 million, compared to 4.3 million in 2000.
• Women make up 33% of snowboarding market
• Global sporting events such as 2014 Sochi Olympics present exponential marketing opportunities
COMPETITORS IN FUTURE MARKET• Industry Leader(Snowboard Boots): Nike and Burton Snowboards
• Industry Leader(Helmets): Smith
PRICE• Men's Snowboarding Boots: $150-200
• Women’s Snowboarding Boots: $100-150
• Men’s Over Armour Helmets: $125-175
• Women’s Over Armour Helmets: $100-150
TARGET MARKET• Users ages 12 to 24
• Largest number of snowboarder range from 12 to 24 (56%)
• Also 25 to 44 years of age (25% of market)
• These consumers tend to have a stronger brand awareness of Under Armour as well
• Both male and female
• Income level of $65,000+, people who are more affluent
DISTRIBUTION METHOD• Today, UA uses a selective distribution strategy (multi-channel design).
• Sell to both retail as well as directly to consumers
• Online
• Principal customers: Dick’s Sporting Goods, Eastbay, and Sports Authority.
• Social Media
• Television
• Billboards
• Sporting Events
• In-store promo
• Celebrity Endorsements
PROMOTION
• Telephone interview
• 300 people called
• 50% incidence rate lowering us to 150
• 50 people refused leaving us with 100 qualified and willing to respond
SURVEY & RESULTS
• Correlation Tables
• Descriptive Statistics
• Pivot Tables
• Bar Graphs
• Pie Charts
• Line Graphs
SURVEY INTERPRETATION METHODS
• Negative relationship between the likelihood to purchase the Under Armour product and the frequency of Snowboarding/Skiing
• Demonstrates that those who are involved in snow recreation activities are less likely to buy our newly developed product
• Why?
• Brand loyalty possessed by avid snowboarders and skiiers
RESULTS
• Quality shows to be the dominant trait for UA as demonstrated by the respondents.
• Shows that other aspects for the products need more focus such as safety and comfort.
• Safety is most likely rated lower due to UA’s lack of actual safety products
SURVEY RESULTS
• Price Rating had the largest variance illustrating that there were a lot of mixed results for how people perceived UA’s pricing for their products
• People of Asian decent are least likely to purchase our newly developed products
• People of Hispanic decent are most likely to purchase
• Most respondents answered “4” for likelihood indicating a strong interest in purchasing
SURVEY RESULTS
Gender RaceApparel Brand Type
Likelihood
Income City
Price Paid Helmet 1
Price Paid Boots 2
Frequency Snowboading/Ski Quality
Price Rating Durability Aesthetics Comfort Safety
Gender 1
Race 0.047970385 1
Apparel Brand -0.075073769 -0.006223799 1
Type -0.126537055 -0.020069432 0.652244413 1
Likelihood 0.029935223 -0.024423888 0.4796773120.10342
2 1
Income -0.083069327 -0.067323291 0.389419146 0.251190.161291
79 1
City 0.080257235 0.031049762 0.4008918630.47118
1
-0.110789
40.5099
7 1
-0.042285457 -0.165011714 0.3752931940.28461
20.128013
690.3443
1 0.404313865 1
Price Paid Helmet 1 -0.031978212 -0.146241529 0.353386014
0.335518
0.19269799
0.38653 0.458409468 1 1
0.031543453 0.082872436 0.3819461210.38143
70.126842
260.4302
1 0.5221902140.35051
1 0.464012321 1
Price Paid Boots 2 0.031543453 0.082872436 0.381946121
0.381437
0.12684226
0.43021 0.522190214
0.350511 0.464012321 1 1
Frequency Snowboading/Ski 0.094448608 0.119230002 -0.179774984 0.02132
-0.203834
1-
0.1742 -0.153316655-
0.13155 -0.156219344-
0.14439 -0.144391956 1
Quality -0.037041486 0.029389941 -0.218591843-
0.182650.014462
13-
0.3747 -0.507858964-
0.10441 -0.174737455-
0.28854 -0.288539831 0.073100826 1
Price Rating 0.20017043 -0.111493855 0.066185161-
0.013250.078650
24 0.1987 0.0212264740.06814
1 0.116765890.03102
6 0.031026266 -0.0198977030.0307044
49 1
Durability 0.102380116 -0.016663985 -0.0634272240.02880
20.107120
03-
0.0576 -0.0647417460.15088
5 0.145413266 0.00242 0.002419754 0.0553528220.0425896
730.05162177
7 1
Aesthetics 0.036890039 0.075333094 0.044325253-
0.017390.031407
35-
0.0983 0.079016358-
0.28217 -0.1868122340.04515
5 0.045155454 0.0122178370.0899898
340.12015692
2 0.02284832 1
Comfort -0.185514 0.105640162 0.0128666750.10672
20.033060
50.1629
2 0.1542627590.12972
3 0.1729774910.02827
5 0.028274856 -0.121563673
-0.1219318
21
-0.06578857
8 0.036115335 0.162016953 1
Safety 0.018284636 0.036500274 -0.0896003830.00551
7
-0.121150
8-
0.0611 0.115307404-
0.03761 -0.039884761-
0.07279 -0.072790697 0.1017665670.0505194
9
-0.06283272
5 -0.198859977 0.051423543
-0.06405726
2 1
Correlation Table
• No STRONG correlations
• Stronger than normal correlation between Apparel Brand & Likelihood to Purchase (positive)
• The table indicated that most people preferred Smith products
• City and type of item purchased(positive)
• City and consumer income(positive)
• Strongest correlation is the Apparel brand purchased and Type of Apparel Purchased
• Indicates that most people buying helmets prefer to go with a Smith product
• Most males buying boots lean towards a Burton Product
• Women favored the idea of buying boots from Under Armour
CORRELATION TABLE RESULTS