Under Armour Marketing Analysis Essay

729 Words 3 Pages
Since its creation in 1996, Kevin Plank's Under Armour has under gone rapid expansion. It has taken over the performance apparel market in the United States, outselling sporting giants such as Nike and Addidas. The company has even expanded beyond the performance apparel line and introduced products including footwear and casual wear. Although it has an immense following in the United States, Under Armour has been facing many difficult barriers to their entry into foreign markets, specifically Europe. These 'entrance barriers' include the increase in competition, the limited scope of their main sport (American Football) in Europe, and the small range of the company compared to the larger, more established companies. However, given the …show more content…
When attempting to expand into a new market with a sport that isn't very well established, Under Armour has to not only compete against the large market companies such as Nike and Adidas, it also must face competition from European-based companies like Puma. The silver lining is that unlike the American market, no one single company has a strangle hold on the performance apparel market. According to a Commerzbank equity research studyStock:Nike(NKE). (n.d.). Retrieved March 13, 2010, from Wikinvest website: http://www.wikinvest.com/ stock/Nike_(NKE) , only 23% of the market is controlled by the top seven companies, including Nike with a 7% control and Adidas with a 6% control. This leave 76% of the market available for Under Armour to be able to strategically take advantage of. Fortunately, Under Armour has had the benefit of very clever and effective advertising. Since its inception as a company in 1996, Under Armour has stayed under the radar with simple market solutions, targeting amateur and colegiate sports organizations as opposed to Nike and Adidas using big name athlete endorsements to market their products. This cost effective advertising strategy has allowed Under Armour to focus more on brand quality and word of mouth to spread their product. When focusing on a new market, with a new product and a new sport, Under Armour has taken their advertising that has

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