Under Armour Winning the millennials

Background of the Problem

  • Lower market share
  • UA: $1.9 billion revenue - Adidas: $8.2 billion (2015 Fiscal year)
  • Football Bowl Subdivision (FBS): 16.4% of teams sponsored by UA
  • Millennials have a purchasing power of $250 billion
  • Millennials not yet brand loyal

Problem Statement

Why is Under Armour performing below the market share levels of Nike and Adidas?

In general, why does Under Armour have a lower profit and market share than competitors?

More specifically, Under Armour is lacking a presence in areas where Millennials frequent

Research Question

What are factors influencing Millennials to choose other brands instead of Under Armour?

Hypothesis

A larger presence of Under Armour on college campuses would increase popularity amongst Millennials

Findings

  • 45 respondents met the criteria of being an LU student
  • 82% of these respondents female
  • Those with team affiliation had a strong brand loyalty
  • Key question: 70% said larger presence would not increase purchase frequency
  • 0.235 significance - cannot reject the n

Recommendations and Conclusion

Further research will have to be conducted to reach a conclusion, but the survey shows interesting indications that Under Armour should consider to reach the Millennials.

Overall, a better understanding of their target market will be essential for Under Armour to make educated decisions to increase market share

References

Gale (2015). Under Armour Financials. Business Insights: Global. Retrieved from http://bi.galegroup.com/global/remoteLink?id=956606&displayGroup=Fundamental-Analysis&url=http%3A%2F%2Finvreports.galegroup.com%2Freuters%2FFinancialReport%2FFinancialReportsWOWrapper.jsp%3FCOUNTRY%3DUS%26TICKER%3DUA%26EXCHANGE%3DNYS&documentSearchType=fundamentalAnalysis

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