Strategy and Positioning Paper
Strategy and Positioning Paper
When a company makes the decision to develop a new product there are many variables to take into consideration. The company must do market research to find out what the customer needs are and what similar products your competition is developing. You company wants to make sure that they promote the new product through the best channels to reach the target market that the advertising was intended to reach. You want to ensure that your company develops a product that is innovative and sets itself apart from the competition. The new product should be unique and make ...view middle of the document...
Under Armour used its unique products and athlete partnerships with some of the top athletes in the world to expand and reach a huge milestone of $1 billion in annual sales in 2010. Today, Under Armour is working hard to establish their brand outside the United States. Under Armourâ€™s commitment to make athletes better has led to numerous game-changing products that give the athlete an advantage. Under Armour was founded on the following core values: Innovation, Inspiration, Reliability, and Integrity ("Under Armour",Â 2015).
Description of product
Under Armour will be launching a new line of swimwear that will enable swimmers to reach their full potential in the water. This swimwear will not only look good, but it will allow individuals to cut through the water with ease. Under Armour will develop a unique swimwear product that will set them apart from the competition. We will promote the product using our athletic partnerships in our advertising, using athletes such as Michael Phelps, the most decorated Olympic swimmer ever.
One of Under Armourâ€™s major strengths is the steady growth that they have shown over the past five years. In addition, UAâ€™s has developed many unique products and has a growing product portfolio. The companyâ€™s also been launching highly visible marketing campaigns, top-profile endorsements, and publicity blitzes, all of which keeps the brand in the limelight ("Market Realist",Â 2015). One weakness the company has is that they have not established themselves in the international market place. The majority of the companyâ€™s revenue comes from North America. UA also does not develop their own products, which leaves them vulnerable to disruptions. Many consumers believe that UA products are very expensive. UA will need to work on cutting their cost to develop products, so they can pass those saving to the consumers. UA can use the launching of this new swimwear line as an opportunity to expand their brand into the international market, which will help grow their revenue and income base. In addition, the new line gives UA the opportunity to develop unique designs and attract new customers. A major threat to Under Armour is stiff competition from companies, such as, Nike Adidas, and Starter. Another threat to UA is similar products on the market for lower prices.
Competitive Analysis Using Porter's Five Competitive Forces
Under Armourâ€™s main competitors are from Nike, Adidas and Columbia Sportswear. Nike and Adidas, which have been in the game longer and have far more spending money, are making a play within the performance apparel market to gain market share in this up-and-coming product category (Arline, 2015). Under Armour traditionally has had limited patent protection on much of the technology, materials and processes used in the manufacture of products. Under Armour operates in a highly competitive market and the size and resources of some of our...