Under Armour

955 Words4 Pages
Founded in 1995, Under Armour entered the established sports merchandise market with exciting new designs, partnerships with elite athletes and competitive pricing. New designs and materials helped the company establish itself, but never became a realistic threat to sports merchandise giants Nike and Adidas. Partnerships with collegiate and high school sports teams has helped increase brand awareness, but to compete with Nike and Adidas, Under Armour determined the need to introduce athletic shoes to its customers. Much like how the company utilized competitive pricing and exciting designs to originally enter the market in 1995, the company is using the same approach as it enters the athletic shoe market, by offering quality, specific athletic…show more content…
• Competitor Pricing – Because Under Armour is entering into an established market, in terms of athletic shoes, it must take into consideration prices of other brand leaders like Adidas and Nike. • Pricing Objectives – Under Armour must determine effective pricing objectives, or goals that describe what a firm wants to achieve through pricing, to be competitive in selling new products like running shoes. Personal Case Analysis I learned Under Armour has established itself as a brand which specializes in developing new designs and technologies for specific sports target markets. The company continues to develop new products like women’s sporting apparel and shirts with LED lighting, however it is trying to become established in the ultra-competitive athletic shoe market. Because the market is established with leaders Nike and Adidas, Under Armour has determined it needs to offer shoes at several different price points to bring new customers to the brand with lower prices, as well as maintaining established customers who may want to purchase a more expensive…show more content…
It also appears as if Under Armour is utilizing product quality, which is what the company used to originally enter the sports apparel market. According to an article in the Baltimore Sun, “The Baltimore-based athletic wear maker is promoting its newly developed ClutchFit — a lightweight, stretch material designed to move with the foot without bunching or binding — as one of its latest innovations. And it's betting the technology will revolutionize shoes across multiple sports and pay off in a bigger share of the booming footwear market.” This shows Under Armour is hoping athletes realize the benefits of new technology and quality, which will hopefully increase sales. By using market share objectives, like offering some shoes in the $70 price range, Under Armour can also take advantage of new consumers looking for quality products at lower prices compared to Nike. Eventually those same customers may purchase higher priced Under Armour shoes, because of the quality of the original shoe

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