Under Armour Case: Changes in Revenue and Market Shares

Under Armour-Case Study
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Under Armour-Case Study
1 Provide three facts to support the recent success of the brand in terms of its revenue growth
Under Armour has attained success by expanding in international markets while offering broad categories of footwear. Since its establishment, the company has built a positive reputation in footwear and equipment by producing compression shorts and wicking fabrics (Tybout, 2017). Despite facing numerous challenges in the market, the company has sustained its operations by providing cheap alternatives to footwear and apparel, hence appealing to customers. In addition, the company has established itself across all realms of its merchandise by exploring its strengths and available opportunities.
Besides, Under Armour segments the market into various groups according to the multiple uses to facilitate targeting and positioning merchandise for higher profitability. According to James and Whitney (2018), the company has proved successful by offering products in demand among customers to stimulate its future growth and expansion. The company’s mission has been to make athletes better through a relentless pursuit of innovativeness. Marketing, distribution, and development of branded performance apparel have been the key business activities that expedite its growth in the market.
2 The brand’s initial attempt to break into the womenswear segment of the market failed
Under Armour (UA) faced numerous challenges in trying to appeal to women in the market. One of such challenges that the company faced was assuming that all women behave similarly. However, the brand should be more precise since women customers resonate with a brand that acknowledges their lifestyle. Therefore, Under Armour utilizes viral marketing in targeting women while they prefer word of mouth as the mode of communication.
Besides, the company has faced equally significant issues targeting $1.9 billion in revenue from women-specific sales. However, using unisex targets, such as adverts, might not be acceptable in the Arab and Asian world since society has gendered roles (James & Whitney, 2018). In such instances, cross-sex advertisements might be offensive. Moreover, other cultural groups oppose the promotion of the female gender in ads. Over the years, the company has faced the challenge of balancing offering the products in demand from customers and making profits. Notably, changing consumer preferences and introducing different sports brands have hindered Under Armour’s sustainable operation.
3 In 2005, the brand expanded into the footwear market with a particular product. What was the product, and what area of IMC was used to promote it?
* Under Armour made a leap in the footwear market by introducing football cleats in 2005. As a result, the company emerged as one of the official footwear suppliers by capturing almost 23% of the market share. Moreover, the introduction of the new product was a potential of its growth by establishing a solid brand in a short period.
* The company used advertisement as Integrated Marketing Communication to appeal to a wide range of customers to purchase the newly introduced product.
6. Writ...