Abstract

The case is about Under Armour, global performance footwear, apparel, and accessories company, and its growing woes. It describes the phenomenal initial growth of the company in detail. Under Armour was founded in 1996 by Kevin Plank, a former football player with the University of Maryland. Plank came up with a synthetic textile design which enabled sweat to be ‘wicked-away’ during high levels of physical activity. Within a short span of time, the company became the next-generation athlete’s brand of choice, particularly in the US. However, the company found itself at a crossroads in 2016, when it projected slower than expected growth rate and its stock price started declining. For the third quarter of 2017, ending September 30, 2017, Under Armour sales fell to US$1.4 billion, down 4.5% from the same period in 2016. This marked the first decline in sales ever for the company, since it went public in November 2005. The case highlights some of the factors which resulted in poor results for Under Armour. Part of the problem was attributed to consumers not being able to understand what the Under Armour brand stood for. Plank had the big responsibility of turning around the fortunes of Under Armour, which not long ago had been gaining market share at the cost of Nike and Adidas.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the issues and challenges faced by a performance footwear, apparel, and accessories company in growing its business in the US and the international market.
• Identify the reasons for the problems faced by Under Armour related to its product categories and its markets
• Analyze the Under Armour brand and discuss ways of reviving the brand

Keywords

Brand Management; Differentiation; Strategic Marketing; Brand clarity; Positioning; Brand image; Performance-based brand; fashion; Differentiation; Business strategy; Turnaround management; Restructuring; Product portfolio; Distribution channels; Competition; Innovation; Footwear; Apparel; Wearable technology; Athleisure market; Under Armour; Nike; Adidas