Introduction
Every established or renowned business enterprise faces both challenges and privileges that are geared towards accomplishing every set goal. Staying relevant and providing quality products and efficient services are just but a few of the elements required in ensuring there are growth and success in the business operations. With headquarters in Baltimore, U.S and Amsterdam, Europe, Under Armour is a business entity that concentrates on the manufacturing of cloth wears that include sports, foot, and casual wear. Established by Kevin Plank in 1996, Under Armour Inc. was driven by the need for a T-shirt that stayed dry during practice hence was ideal for all athletes. Thus the designs the founder came up with were made from microfibers essential for absorbing moisture wicking it to keep the individual wearing it dry.
Mistakes made by Under Armour
According to Nathan Bomer (2017), the CEO of Under Armor Inc. confirmed that the company had replaced its chief financial officer. Having worked with someone for a long time and they could understand the sources of strengths that helped in the growth of the company, a replacement without proper handing over can cause so many ripples in the way things are done and the outcomes. The Socially, most consumers expect their preferred brands to have a clear view and firm stand on some issues and at the same time commit to adequately support their position with facts and substantial evidence. The remarks of the company’s CEO towards Trump on a national television interview contributed to shun of purchase by most urban lifestyle brand consumers who had a different view of Mr. President. In the quest to grow and expand in various regions, the CEO confirms that they did not ‘cut their coat according to the available size of the cloth.’ The strategies applied to the expansion process contributed to the strains felt both in production and availability of sufficient finances to ensure the goal is accomplished. Hence were unable to meet customer needs and the company’s target.
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How Armour Can Attract New Customers
Considering the tight competition in the market from other brands like Nike, Unde Armour’s effort to support and promote its name through athletes like Steph Curry has been in vain. As a result, the company can target students engaged in sports activities and make commercial that feature younger individuals. While most brands make use of famous athletes, the company can break the norm and ensure that it involves students and children who are enthusiastic about sports. On the other hand, the prices in the market remain the same, and the company has not shown signs of lowering the cost of its products. Most of the times expensive are associated with quality, but a slightly lower priced product as compared to the competitors without jeopardizing quality attracts more customers.
The contributors of the Trefis Team (2015) highlight that connection with fitness industry can boost the company’s customer base. The association with fitness companies will be a boost since an increased number of individuals focus on staying healthy through fitness. To accomplish this and meet their requirements, the company should come up with trendy and fashionable attires worn during exercise for confidence and comfort. As mentioned earlier, most renowned companies make use of endorsers most of whom are established athletes to promote their brands. Despite the endorsement of the basketballer Steph Curry, the revenues of the company in the fourth quarter reviews were unsatisfactory. Furthermore, the poor performance of the U.S. Olympic team of the speed skating which was in Under Armour’s branded racing suits contributed to the fall in sales of the company’s products. The assumption that endorsers will impact the sales of a particular company’s product is relative hence it is a strategy that cannot be entirely relied on. Lindsey Vonn has been with the company’s endorser for eight years, and both parties admit that they are meeting the outlined goals of marketing each other both locally and internationally.
How Under Armour can be saved
Considering that various efforts including famous athlete endorsement have proved to be null in the process of reviving the Under Armour brand. Despite the competitiveness of the market, the company can find its niche once again that will impact its growth and stability. For instance, the company can apply some of the strategies that its competitors are using. In consideration of the constant changing trend in sportswear, foot and casual attire, it is vital for the company to conduct a market research that will help identify customer preference. While the company may have innovative ways in which they manufacture their products, it is essential to know what the customer needs and how they expect the product to be presented. On the other hand, the market research can help the company find ways in which they can maximize on winning over the existing competitors. The company can also be on the look-out for opportunities that other companies have not ventured in, making it easier for Under Armour Inc. to embrace uniqueness while evading already applied strategies.
The company can also consider sponsoring athletic students who are both good in studies and the curricular activities. That way, marketing the brand will be more natural since families of the sponsored children will develop a love for the brand primarily because of its noble venture (Strauss, 2016) . On the other hand, the schools that will support the brand’s initiative in sponsoring intelligent student and boosting the love for sports in the associated institutes will be centers of marketing. Besides, the company can also make use start foundations that focus on critical social issues that are a day to day challenge. For instance, allocating financial support for the needy is a strategy that ensures the company reaches out to various demographics. Sales of products that are geared towards giving out a percentage of the earnings to the noble project are observed to attract more customers who are willing to take part in the initiative.
Conclusion
Like most companies, the creation of products come out of an identified need from the founders and associated stakeholders. While sales of the products may be favorable during the initial years after establishment, it can be challenging for the company to keep up with the changes observed in the industry involved. For purposes of maintaining a stable trend in the company’s earnings, it is crucial that they take note of critical measures. As for the case of Under Armour, there is a chance to revive its existence in the market by ensuring that past mistakes are shunned, and application of long-term strategies is enhanced. Moreover, the tactic of athlete endorsement can be implemented by making use of younger upcoming sportsmen and women from high school purposely to focus on consumers who other brands have not reached (Strauss, 2016). While the move to replace a chief financial officer could have been out of the need to develop a ‘conducive’ financial environment, it led to the company’s weak transition. The CEO together with the management has a significant role to play in ensuring that potential investors find pride in the brand and the products made. A lowered price without jeopardizing quality is a tactic that the company can implement.
References
Bomer, N. (2017, January 31). Waning interest in Steph Curry shoes? Under Armour stock slumps . Retrieved November 12, 2017, from USA Today: https://www.usatoday.com/story/money/2017/01/31/waning-interest-steph-curry-shoes-under-armour-stock-slumps/97276094/
Strauss, E. S. (2016, March 16). You won't believe how Nike lost Steph to Under Armour . Retrieved November 12, 2017, from ESPN: http://kwese.espn.com/nba/story/_/id/15047018/how-nike-lost-stephen-curry-armour
Trefis Team. (2015, February 24). Under Armour Steps Up Efforts To Bring New Customers To The Brand . Retrieved November 12, 2017, from Forbes: https://www.forbes.com/sites/greatspeculations/2015/02/24/under-armour-steps-up-efforts-to-bring-new-customers-to-the-brand/#3ef528ab385c
