Pr Campaign Under Armour 2z4t6b
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Under Armour PR Campaign
Running Head: UNDER ARMOUR PR CAMPAIGN
Under Armour Public Relations Campaign Michelle Waddle West Virginia University
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Under Armour PR Campaign
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Executive Summary
The public needs to have knowledge and understanding of what makes the new line of Under Armour footwear different, what makes it better than the competition. A failed second attempted launch of the footwear line, could negatively affect the company for a number of years. Research has shown that Under Armour has a strong foundation in the performance apparel market. The company has loyal customers that cross over a few different publics and has access to influentials that can speak to these key publics. The company has proven they have the internal expertise to enable success in the design and marketing of new products, such as footwear. Children, aged 6 to 11, form a key public for Under Armour. In addition to being the adult market of the future, many children have their own purchasing power and can influence their parents’ purchasing habits. Research has also noted that brand loyalties can be established as early as age two. Athletes likely to participate in the 2012 Summer Olympic track & field events are a second key public this campaign will focus on. High School and College athletes receive Under Armour brand materials from their college sports teams and believe in the technology because they have experience with the brand and its technology. For this reason, High School and College coaches are the third and final key public identified in this campaign. The goal of the Under Armour PR campaign is to increase awareness of value and use of Under Armour technology used in new footwear line. We need to instill faith that the company has created a product that is revolutionary, technologically advanced, and in line with the company mission. This strategy is key to success in a new market. The following tactics will be used, along with others, in this PR campaign and outlined more thoroughly later in this plan.
Store events, inviting children and parents to meet the athletes who wear Under Armour footwear. Educate parents about the technology in the shoes using informational brochures as well as insole cross samples. Invite athletes to explain their dedication to the Under Armour brand.
Team with video game programmers to include the Under Armour brand line of footwear in their sports video games.
Creation and use of a blog specifically focused on the needs, questions, and concerns of Olympic hopefuls. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure.
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Award scholarships to deserving Olympic hopefuls and present the scholarships and athletic sponsorships at periodical press conferences held at Olympic Training facilities across the country.
Work with Olympic athletes and hopefuls to set up exclusive interviews with key media personalities.
Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings.
Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear.
Under Armour representatives will attend parent interest meetings usually held at the beginning of each high school sport season. The representative will educate parents on the benefits of the brand and to explain the price vs. reward aspect of purchasing Under Armour.
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Table of Contents
Executive Summary ............................................................................................................................................ 2 Table of Contents ............................................................................................................................................... 4 Company Background ......................................................................................................................................... 5 Situation Analysis .............................................................................................................................................. 10 Core Problem Statement .................................................................................................................................. 10 Key Publics ........................................................................................................................................................ 10 Primary and Secondary Messages .................................................................................................................... 13 Campaign Goal .................................................................................................................................................. 14 Campaign Objectives ........................................................................................................................................ 14 Campaign Strategies and Tactics ...................................................................................................................... 14 Calendar of PR Activities ................................................................................................................................... 17 Budget .............................................................................................................................................................. 22 Evaluation Plan ................................................................................................................................................. 30 References ........................................................................................................................................................ 32
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Company Background
The External Environment The economy that Under Armour finds itself relaunching the footwear line in is less than ideal. The unemployment rate in the United States is at approximately 9.1% (Bureau of Labor Statistics, 2011a) and the U.S. Federal Reserve has recently downgraded its projection of the economic outlook. “Economic growth remains ‘frustratingly slow’ although it strengthened in the third quarter, stated Fed Chairman Ben Bernanke (Xinhua, 2011).” The Fed also said, "Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated (Xinhua, 2011)." The overall economy is slightly stronger than it was in 2009, when Under Armour attempted its first footwear launch, but growth remains slow. The Industry There are a few giants operating in this athletic shoe industry, primarily Nike and Adidas. There are also other, smaller, brands such as Brooks. Nike, through the Nike, Jordan and Converse brands, controls about 95% of the $2.4 billion basketball shoe market in the U.S (CNBC, 2011). The athletic apparel industry is projected to grow to $126.3 billion by 2015, due to “dramatic lifestyle changes, increasing sports participation particularly by women, and demand for stylish, functional and versatile sports apparel (PR Web, 2011).” With a rapidly-aging population, there is increased emphasis on healthy lifestyle and physical activities such as sports, yoga and jogging (PR Web, 2011). The Client Under Armour was founded in 1996 with a plan to make “a shirt that worked with your body to regulate temperature and enhance performance (Under Armour, 2011a).” The company was founded by University of Maryland alumni, Kevin Plank. Under Armour's mission is “to make all athletes better through ion, science, and the relentless pursuit of innovation (Under Armour, 2011a).” Under Armour sells apparel and shoes to men, women, and children. Products are used by professional athletes as well as amateur athletes and “weekend warriors.” According to the BrandDunk website, in 2009, at least 29 athletes or teams have endorsement deals with Under Armour. Under Armour needs to communicate to professional and college sports teams, athletes, those who consider themselves as such and those who enjoy sports. The Product, Service, or Issue The product line is designed to improve athletic performance and keep athletes’ bodies dry and at the optimal body temperature. Under Armour sells shirts, bottoms, underwear, sports bras, socks, outerwear, footwear, and accessories, such as hats, bags gloves, sunglasses, and mouth wear. The company has targeted lines for women and children in addition to the men’s line that they started with. The products all keep one thing at the forefront – the company’s mission is “to make all
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athletes better through ion, science and the relentless pursuit of innovation (Under Armour, 2011a).” Promotions When Under Armour launched the footwear line in 2009, the company spent $25 million on a campaign that included a commercial during the Super Bowl (AdAge, 2011). The campaign was far from successful, and Under Armour worked to redesign the product, this time offering the UA moisture wicking fabric inside the shoe. The original campaign was a disappointment and Under Armour seemed to learn from the lesson. For this launch, the company is taking its time preparing the public and giving the opportunity for the public to take in each new piece as it becomes available. Under Armour runs campaigns specific to their women’s line as well as charitable involvements. In commercials, UA has targeted women using musical tags such as “goodbye girl” and “boom boom tap,” but the company also realized that female athletes don’t want to be treated differently simply because they are female and have included all female versions of the popular “Protect This House. I Will.” ads in the campaign. Under Armour’s charitable efforts include “Power In Pink” and “UA Freedom.” Market Share Under Armour has a substantial market share when it comes to performance apparel, a 75% share of the $500 million market (Bloomberg, 2011b). As far as athletic shoes, Under Armour first ventured into the cleat side of the puzzle and captured 20% of the market (Bloomberg, 2011b). Cleats only make up 1% of the $12.3 billion athletic footwear market; running shoes alone make up 40%, or $12.3 billion, of the athletic footwear market (Bloomberg, 2011b). Under Armour currently has only a 1.3% market share of this market (Sharrow, 2011). Competition Under Armour’s biggest competitor is Nike. When venturing into the footwear market, Under Armour will move into territory where their competitor already has a strong foot hold. Nike, on the other hand, moved into the performance apparel. In 2005, Nike launched a full out attack on Under Armour's stronghold. “Morningstar Inc. stock analyst Brady Lemos estimates the behemoth spent $30 million that year alone to aggressively promote its line of pro-quality gear (Bloomberg, 2011a).” Resources Under Armour has formed a strong client base of athletes and sport enthusiasts. Fans are loyal and choose the brand over others because they believe in the company mission and in the quality of the product. Due to the relationships formed with college and professional athletes, the company has access to many loyal athletes that are used as influentials in commercials. Examples of athletes and teams with endorsement deals are as follows:
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Jeff Francoeur – Atlanta Braves Francisco Liriano – Minnesota Twins Nick Markakis – Baltimore Orioles Jose Reyes – NY Mets Alfonso Soriano – Chicago Cubs Jeff Samardzjia – Chicago Cubs Ryan Zimmerman – Washington Nationals Vernon Davis – San Francisco 49ers AJ Hawk – Green Bay Packers Devin Hester – Chicago Bears Julius Jones – Seattle Seahawks Patrick Kerney – Seattle Seahawks Ray Lewis – Baltimore Ravens Joe Thomas – Cleveland Browns Tommy Tuberville – former Auburn Head Coach Jonathan Vilma – NY Jets Patrick Willis – San Francisco 49ers Brandon Jennings – currently playing in Europe Jeremy Bloom – skiing Cat Osterman – softball Kimmie Meissner – figure skating Auburn Tigers Hawaii Warriors Maryland Terrapins North Texas Mean Green South Carolina Gamecocks South Florida Bulls Texas Tech Red Raiders Utah Utes (BrandDunk, 2011)
While successful in their performance apparel endeavors, Under Armour has faced a different experience with the original launch of their footwear in 2009, probably because it did not include any of the technology that makes the performance wear so valuable to its fans. With the addition of Under Armour-esque technology to the shoe designs, this attempt should be a bit more successful, but not everyone is convinced. When evaluating the Q3 2011 financial results, the following was said about the new footwear launch: “We still do not like Under Armour’s footwear strategy and we predict a similar fate for this year’s running offerings. We think a sea of mark-downs may hit Under
Under Armour PR Campaign
Armour footwear yet again, sending the company back to square one (Seeking Alpha, 2011).” SWOT Analysis
Internal Origin (attributes of the organization)
Helpful to achieving the objective
Harmful to achieving the objective
Strengths
Weaknesses
Loyal customer base.
Started in the performance apparel market before everyone else – looked at as a leader.
Beneficial pool of influentials to choose from when advertising and communicating about the product.
May be growing too fast to be able to sustain growth rates.
Because of high growth rate and high P-E ratios, investors may start shying away from stock (Bloomberg, 2011b).
Original footwear launch was implemented quickly and could have been better planned out and come across as less arrogant (AdAge, 2012).
New footwear team, including FORMER Nike executive, Gene McCarthy (Sharrow, 2011).
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Helpful to achieving the objective External Origin Opportunities (attributes of the Building upon current customer organization) loyalty, it is possible to introduce the footwear and its features in order to show quality for the price. Roll out a slower implementation of the offering and allow time for consumers to “want” each piece.
Harmful to achieving the objective Threats Not only is Nike the largest single competitor to Under Armour in footwear, but the competing company has also ventured into the performance apparel arena. The US economy is not yet ideal and people may need a little more time to decide to make a big purchase, if able to spend the money at all. "If Under Armour's shoes don't sell, and retailers are stuck with another weak footwear product from the company, the company could be handicapped in footwear for a number of seasons," Swinand of Morningstar recently wrote in a report (Walker, 2011).
Public Profiles Professional Athletes. These are probably the individuals that have been wearing the Under Armour brand the longest because they probably played college sports as well and wore the brand at that point. The motivating self-interest for this group is fame and more value that might aid in negotiating a higher salary. College Athletes. The college athlete doesn’t tend to have a great deal of extra cash to spend on expensive performance apparel and footwear. They receive Under Armour brand materials from their college sports teams and believe in the technology. The motivating self-interest for this group is to perform better, to be better athletes, and pride in their program. For a subset of this group, a motivating self-interest is to improve the athletic performance and image so that they are drafted to play professionally. Sports Enthusiasts. This group tends to either have played sports in high school college or just enjoys sports in general. This group is interested in imitating the professional athletes that they ire so much. A subset of this group may also visit the gym on their own to improve their physical abilities, but they tend to understand that they will never play professional sports.
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Situation Analysis
The research has shown that Under Armour has a strong foundation in the performance apparel market. The company has loyal customers that cross over a few different publics and has access to influential that can speak to various publics. The company has the internal expertise to enable success in the design and marketing of new products, such as footwear. The failed launch of a footwear line in 2009, only two years before the current launch, is going to be the biggest issue that will need to be overcome. We need to instill faith that the company has created a product that is revolutionary, technologically advanced, and in line with the company mission. This strategy is key to success in a new market. Core Problem Statement
Customers and investors alike need to understand the value in the new line of footwear being offered by Under Armour. If Under Armour fails a second attempted launch of the footwear line, it could negatively affect the company for a number of years. Key Publics
Children Children, aged 6 to 11, form a key public for Under Armour. In addition to being the adult market of the future, many children have their own purchasing power and can influence their parents’ purchasing habits (iMedia Connection, 2011). “According to the Center for a New American Dream, babies as young as six months of age can form mental images of corporate logos and mascots. Brand loyalties can be established as early as age two, and by the time children head off to school most can recognize hundreds of brand logos (iMedia Connection, 2011).” Demographic and psychographic profile. According to the 2010 census, there are approximately 24.3 million children in the United States in the targeted age range. Racial and ethnic diversity is changing rapidly and the percentage of Hispanic children has increased faster than any other racial or ethnic group (ChildStats, 2011). According to a 2005 study, 70% of children want to “make a lot of money” when they are older, go online frequently, nearly 60% say they watch commercials when they come on and a majority say friends are an important part of their lives (Mediamark, 2011). Motivating self-interests. Children are motivated by extrinsic means from an early age; they are trained to seek approval from parents and teachers. As they get older, they continue to seek approval but the focus changes to approval from their peers.
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Status of current relationship with the organization and issue. Children in this age range do not know much about the technology behind the footwear, but they have an ever-strengthening relationship with Under Armour. Many children already trust the UA brand, through their experiences in team sports and simply because they are familiar with the brand. Third party influential and other opinion leaders. Children influence their parents’ purchasing decisions. Marketers target children by creating "Pester power," which refers to “children's ability to nag their parents into purchasing items they may not otherwise buy (iMedia Connection, 2011).” Children are strongly influenced by their parents, coaches, teachers and peer groups. They are also influenced by public role models such as athletes, actors, musicians. Some studies have found that peer groups may have more influence over a child’s behavior that parents do (Barbour, et al., n.d.). What objectives each public will help accomplish. Children can help to generate interest in the new line of footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Though children will not be able to purchase directly online, they can use their influence to encourage parents to place orders. Key Public: Likely 2012 Summer Olympic Track & Field Athletes Athletes likely to participate in the 2012 Summer Olympic track & field events are a key public for Under Armour. Demographic and psychographic profile. Athletes on the US Olympic team are from all over the country, though a significant number call California home. Olympians are from various ethnicities and cultures. They are highly competitive and are always pushing themselves to try harder, be better, and accomplish more. These are the athletes who truly love their chosen sports and are proud to represent their countries. Motivating self-interests. Olympic athletes aspire to be the best in their given disciplines. Always striving to grow and out-perform their previous accomplishments, these athletes are motivated by self-improvement. Status of current relationship with the organization and issue. Track & field athletes wear Under Armour, but less often than other brands. Medal winners from the 2008 Summer Olympics wore Adidas, Mizuno and Nike brand shoes, with no mention of Under Armour (LIVESTRONG, 2011). In the 2011 Winter Shoe Guide on “Runner’s World” website, Under Armour had one shoe reviewed but the review wasn’t written strongly. It appears that runners currently prefer other brands (Runners World, 2011). The 2012 Men’s Head Coach for the Track & Field team competing in the 2012 Olympics is the University of Maryland head coach currently and, therefore, already has ties to Under Armour (Deem, Valmon selected, 2011). Third party influential and other opinion leaders. Olympic athletes are considered role models and often end up with sponsorships that encourage consumers to purchase the same brand
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the Olympians are wearing. Seeing a champion wearing specific brands makes those brands more appealing to people who look up to them and aspire to be like them. What objectives each public will help accomplish. Olympic athletes will help to accomplish the stated objective of 25,000 preorders from the website. Key Public: High School and College Track & Field Coaches High School and College athletes receive Under Armour brand materials from their college sports teams and believe in the technology because they have experience with the brand and its technology. For this reason, High School and College coaches are a key public for Under Armour. Demographic and psychographic profile. Typically, coaches are retired players of the sports they coach. In 2008, coaches and scouts held approximately 225,700 jobs in the United States. Many High School coaches work part-time in the role and full-time as teachers, they also typically coach more than one sport. College coaches are full-time workers and spend a great deal of time traveling for recruiting purposes. “Among those employed in wage and salary jobs, 52% held jobs in public and private educational services. About 13% worked in amusement, gambling, and recreation industries. Another 6% worked in the spectator sports industry (Bureau of Labor Statistics, 2011b).” Motivating self-interests. The motivating self-interest for this group is to perform better as a team, to cultivate better individual athletes and school pride, and to recruiting efforts. For a subset of this group, a motivating self-interest is to improve the athletic performance so that team athletes are drafted to play professionally. Status of current relationship with the organization and issue. Depending on the sport in question, some coaches have a very strong relationship with Under Armour. At least five colleges have endorsement deals with Under Armour and team logoed merchandise is available on the Under Armour website (Under Armour, 2011d). Third party influential and other opinion leaders. Coaches have very unique relationships with their athletes and, thus, have a great deal of influence. “The impressions coaches make on our children are vital, even decades after the child has left his watch. Right or wrong, coaches remain hugely important characters in this culture of ours. (Deford, 2004).” Because coaches often play such an important role in the lives of children and teens, they have profound influence over the thoughts, actions and beliefs of their athletes. What objectives each public will help accomplish. By buying into Under Armour technology use themselves, and transferring the beliefs to their student athletes, coaches will help accomplish the objective of raising awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear.
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Primary and Secondary Messages
Key Public: Children Primary Message.
Through a grass roots effort, interest can be generated for the new line of footwear, and stated purchase intention can be improved. Secondary Messages.
Children find friends to be an important aspect in their lives. Because of this, children trust each other and look to one another for guidance.
Peer pressure can be used to encourage peers to try the Under Armour brand and to purchase; children should discuss the Under Armour brand with their peers. Children can communicate the comfort of the shoes and the various benefits such as flexibility, increased traction, temperature control and moisture wicking capability.
Key Public: Likely 2012 Summer Olympic Track & Field Athletes Primary Message.
Olympic athletes are respected role models in our society and children and adults often want to imitate them. Secondary Messages.
By showing how well the Under Armour shoes perform under pressure, Olympic athletes can encourage others to place preorders on the website.
Olympic athletes should discuss in interviews how the technology used in the Under Armour shoes has allowed them to perform better.
Key Public: High School and College Track & Field Coaches Primary Message.
Coaches are capable of influencing many different aspects of the athletes’ behavior, thoughts, and feelings. Coaches are able to educate student athletes about a brand and its benefits. Secondary Messages.
Coaches should negotiate, with Under Armour’s assistance, an endorsement deal with the company that helps get funds and supplies into their schools.
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Coaches should educate athletes on the reasons why to wear Under Armour. Because “Coaches guide (Deford, 2004),” their athletes are more likely to consider the information and share it with their parents, which will lead to more people understanding the use of technology in the new footwear line. Campaign Goal
The goal of the Under Armour PR campaign is to increase awareness of value and use of Under Armour technology used in new footwear line. Key publics are already connected to Under Armour through the athletic apparel lines, so building awareness of and loyalty to the footwear lines will position UA in the athletic footwear market. Campaign Objectives
Objective 1 Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013. Objective 2 Over a six month period ending December 2012, generate interest in footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Objective 3 During the one month period ending January 2013, obtain 25,000 preorders for new athletic shoe on Under Armour website. Campaign Strategies and Tactics Key Public: Children Strategy #1. Utilize the power of peer pressure to show children the benefits of wearing the Under Armour line of footwear. Tactics.
Invite children and parents to Under Amour stores to meet the athletes who wear Under Armour footwear. Include high school, college, and professional athletes. Encourage partnerships offering discounts to local youth groups and sports clubs so that Under Armour footwear becomes part of the uniform and children and parents learn to trust the brand well before high school sports.
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Team with video game programmers to include the Under Armour brand line of footwear in their sports video games.
Strategy #2. Educate parents about the physical benefits of wearing the Under Armour line of footwear. Tactics.
Give “parent packets” out at events hosted at Under Armour stores. Included in these packets would be small cross sections of the insoles of the shoes so parents are able to see how the shoes will their child’s growing feet. Also in the packet would be information booklets explaining the science behind the design. Include in the discussions at the events examples of how the Under Armour shoes ed the athletes feet.
Key Public: Likely 2012 Summer Olympic Track & Field Athletes Strategy #1. Educate Olympic hopefuls about the technology included in the Under Armour line of footwear. Tactics.
Create a blog specifically focused on the needs, questions, and concerns of this public. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure. Encourage conversation comparing the brand to others in the market, with Under Armour representatives ing in the conversation to point out the benefits of the brand.
Hold periodical press conferences at Olympic Training facilities across the country to highlight the benefits of the Under Armour line of footwear. These press conferences can also double as a scholarship award ceremony, with an Under Armour presenting a scholarship to an athlete in addition to a sponsorship.
Strategy #2. Utilize Olympic athletes and hopefuls as role models to encourage others to purchase the Under Armour line of footwear. Tactic.
Work with Olympic athletes and hopefuls to set up exclusive interviews with key media personalities. Athletes will mention in these interviews how the Under Armour line of footwear fits into their training and the improvements they are seeing in their performance.
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Strategy #3. Utilize targeted mass media to reach public. Tactics.
Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings.
Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear. Testimonials from people who have tried the product should also be included.
Key Public: High School and College Track & Field Coaches Strategy #1. Create an environment in the locker room where Under Armour is the logical choice for athletes. Tactics.
Under Armour should negotiate endorsement deals with schools to help get needed funds and supplies into the school athletic programs.
High School coaches should invite Under Armour representatives to the parent interest meetings usually held at the beginning of each season to educate parents on the benefits of the brand and to explain the price vs. reward aspect of purchasing Under Armour.
Coaches should wear Under Armour brand footwear as well to set an example for athletes.
Under Armour PR Campaign
Calendar of PR Activities
Start Date: 1/1/2012 Public: Children, 6 – 11 Strategy #1: Utilize the power of peer pressure to show children the benefits of wearing the Under Armour line of footwear. Tactic #1: Invite children and parents to Under Amour stores to meet the athletes who wear Under Armour footwear. Include high school, college, and professional athletes. Tactic #2: Encourage partnerships offering discounts to local youth groups and sports clubs so that Under Armour footwear becomes part of the uniform and children and parents learn to trust the brand well before high school sports. Tactic #3: Team with video game programmers to include the Under Armour brand line of footwear in their sports video games.
Calendar: Under Armour Campaign Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb
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Under Armour PR Campaign
Start Date: 1/1/2012
Calendar: Under Armour Campaign (continued) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb
Strategy #2: Educate parents about the physical benefits of wearing the Under Armour line of footwear. Tactic #1: Give “parent packets” out at events hosted at Under Armour stores. Included in these packets would be small cross sections of the insoles of the shoes so parents are able to see how the shoes will their child’s growing feet. Also in the packet would be information booklets explaining the science behind the design. Tactic #2: Include in the discussions at the events examples of how the Under Armour shoes ed the athletes feet. Public: Likely 2012 Summer Olympic Track & Field Athletes Strategy #1: Educate Olympic hopefuls about the technology included in the Under Armour line of footwear. Tactic #1: Create a blog specifically focused on the needs, questions, and concerns of this public. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure. Encourage conversation comparing the brand to others in the market, with Under Armour representatives ing in the conversation to point out the benefits of the brand.
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Under Armour PR Campaign
Calendar: Under Armour Campaign (continued) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb
Start Date: 1/1/2012 Tactic #2: Hold periodical press conferences at Olympic Training facilities across the country to highlight the benefits of the Under Armour line of footwear. These press conferences can also double as a scholarship award ceremony, with an Under Armour presenting a scholarship to an athlete in addition to a sponsorship. Strategy #2: Utilize Olympic athletes and hopefuls as role models to encourage others to purchase the Under Armour line of footwear. Tactic#1: Work with Olympic athletes and hopefuls to set up exclusive interviews with key media personalities. Athletes will mention in these interviews how the Under Armour line of footwear fits into their training and the improvements they are seeing in their performance. Strategy #3: Utilize targeted mass media to reach public. Tactic#1: Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings. Tactic #2: Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear. Testimonials from people who have tried the product should also be included.
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Under Armour PR Campaign
Calendar: Under Armour Campaign (continued) Start Date: 1/1/2012 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Public: High School and College Track & Field Coaches Strategy #1: Create an environment in the locker room where Under Armour is the logical choice for athletes. Tactic #1: Under Armour should negotiate endorsement deals with schools to help get needed funds and supplies into the school athletic programs. Tactic #2: High School coaches should invite Under Armour representatives to the parent interest meetings usually held at the beginning of each season to educate parents on the benefits of the brand and to explain the price vs. reward aspect of purchasing Under Armour. Tactic #3: Coaches should wear Under Armour brand footwear as well to set an example for athletes. Research and Evaluation Objective #1: Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013.
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Under Armour PR Campaign
Calendar: Under Armour Campaign (continued) Start Date: 1/1/2012 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Objective #2: Over a six month period ending December 2012, generate interest in footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Objective #2: During the one month period ending January 2013, obtain 25,000 preorders for new athletic shoe on Under Armour website.
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Under Armour PR Campaign
Budget
Start Date: 2/1/2012
Budget: Under Armour Campaign Detail Per Item Cost
Total Projected
Sponsored Credit
Actual Projected
Public: Children, 6 – 11 Strategy #1: Utilize the power of peer pressure to show children the benefits of wearing the Under Armour line of footwear.
Tactic #1: Invite children and parents to Under Amour stores to meet the athletes who wear Under Armour footwear. Include high school, college, and professional athletes.
Catering during event at 87 stores (mini sandwiches and sweets)
$350.00
$30,450
$0
$30,450
Athletes will not be paid for attending, as it will be part of endorsement deals
$0.00
$0
$0
$0
Tactic #2: Encourage partnerships offering discounts to local youth groups and sports clubs so that Under Armour footwear becomes part of the uniform and children and parents learn to trust the brand well before high school sports.
Mailings to youth group and sports club leaders printing $.05 each and mailing $.44 each. Mailings will be sent to 50 organizations in each state.
$0.49
$1,225
$0
$1,225
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Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Tactic #3: Team with video game programmers Create relationships with to include the Under Armour brand line of programmers working for footwear in their sports video games. two major companies creating sports video games, EA Sports and 2K Sports. Allowance for dinners, sporting event tickets, etc. $5,000.00 $10,000 $10,000 Strategy Subtotal $5,350 $41,675 $0 $41,675 Strategy #2: Educate parents about the physical benefits of wearing the Under Armour line of footwear. Tactic #1: Give “parent packets” out at events hosted at Under Armour stores. Included in these packets would be small cross sections of the insoles of the shoes so parents are able to see how the shoes will their child’s growing feet. Also in the packet would be information booklets explaining the science behind the design. Tactic #2: Include in the discussions at the events examples of how the Under Armour shoes ed the athletes feet.
Printing of packet materials for 9,000 packets Production of insole cross sections, using regular insoles produced for running shoes and cut into thirds No cost for this tactic.
Strategy Subtotal Public Total Public: Likely 2012 Summer Olympic Track & Field Athletes
$0.55
$4,950
$0
$4,950
$5.00
$15,000
$0
$15,000
$0.00 $6 $5,356
$0 $19,950 $61,625
$0 $0 $0
$0 $19,950 $61,625
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Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Cost Strategy #1: Educate Olympic hopefuls about the technology included in the Under Armour line of footwear. Tactic #1: Create a blog specifically focused on the needs, questions, and concerns of this public. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure. Encourage conversation comparing the brand to others in the market, with Under Armour representatives ing in the conversation to point out the benefits of the brand.
New launch, content and customer interaction (12 months)
Tactic #2: Hold periodical press conferences at Olympic Training facilities across the country to highlight the benefits of the Under Armour line of footwear. These press conferences can also double as a scholarship award ceremony, with an Under Armour presenting a scholarship to an athlete in addition to a sponsorship.
Travel to/from training facilities and 1 night hotel for 2 people, 4 conferences
Sponsored Actual Credit Projected
$6,000.00
$72,000
$0
$72,000
$2,000.00
$8,000
$0
$8,000
$5,000.00 $13,000
$20,000 $100,000
$0 $0
$20,000 $100,000
Scholarship (4)
Strategy Subtotal Strategy #2: Utilize Olympic athletes and hopefuls as role models to encourage others to purchase the Under Armour line of footwear.
Total Projected
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Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Tactic#1: Work with Olympic athletes and Phone calls to media hopefuls to set up exclusive interviews with key s - no cost media personalities. Athletes will mention in these interviews how the Under Armour line of footwear fits into their training and the improvements they are seeing in their performance. $0.00 $0 $0 $0 Strategy Subtotal $0 $0 $0 $0 Strategy #3: Utilize targeted mass media to reach public. Tactic#1: Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings. Tactic #2: Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear. Testimonials from people who have tried the product should also be included. Strategy Subtotal Public Total
No cost for this tactic.
$0
$0
$0
$1,000.00 $1,000 $14,000
$3,000 $3,000 $103,000
$0 $0 $0
$3,000 $3,000 $103,000
Creation of three VNRs of 2-3 minutes each
Public: High School and College Track & Field Coaches Strategy #1: Create an environment in the locker room where Under Armour is the logical choice for athletes.
$0.00
25
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Cost Tactic #1: Under Armour should negotiate 5 schools will be chosen endorsement deals with schools to help get in each state and UA will needed funds and supplies into the school give $2,500 to each athletic programs. $2,500.00 Tactic #2: High School coaches should invite Travel to/from schools Under Armour representatives to the parent and 1 night hotel for 1 interest meetings usually held at the beginning person. This will occur at of each season to educate parents on the benefits the same high schools of the brand and to explain the price vs. reward designated for tactic #1 aspect of purchasing Under Armour. $1,000.00 Tactic #3: Coaches should wear Under Armour UA will offer 10% brand footwear as well to set an example for discounts to coaches for 2 athletes. orders per year. $20.00 Strategy Subtotal $3,520 Public Total $7,040
Total Projected
Sponsored Actual Credit Projected
$625,000
$0
$625,000
$250,000
$0
$250,000
$500,000 $1,375,000 $2,750,000
$0 $500,000 $0 $1,375,000 $0 $2,750,000
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Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Detail Per Item Cost
Start Date: 2/1/2012
Research and Evaluation Objective #1: Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013.
Kiosks will be set up in stores using iPads to survey people in person. The iPads will be set up to link to the same survey being used on the website and Facebook pages. information will be collected electronically and email blast will be sent to all opted-in individuals. 2 hours allocated to employee making a salary of $55,000/year. Evaluation and presentation of data. 40 hours allocated to 5 employees each making a salary of $55,000/year.
Total Projected
Sponsored Actual Credit Projected
$1,500.00
$130,500
$0
$130,500
$26.44
$53
$0
$53
$26.44
$5,288
$0
$5,288
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Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Objective Evaluation Subtotal $1,553 $135,841 $0 $135,841 Objective #2: Over a six month period ending Kiosks will be set up in stores using iPads to December 2012, generate interest in footwear, creating anticipation of release and survey people in person. The iPads will be set up to stated intention of purchase by 50% of key link to the same survey publics. being used on the website and Facebook pages. $1,500.00 $375,000 $0 $375,000 information will be collected electronically and email blast will be sent to all opted-in individuals. 2 hours allocated to employee making a salary of $55,000/year. $26.44 $53 $0 $53 Social media monitoring service, 8 months $1,000.00 $8,000 $0 $8,000 Evaluation and presentation of data. 40 hours allocated to 5 employees each making a salary of $55,000/year. $26.44 $5,288 $0 $5,288 Objective Evaluation Subtotal $2,553 $388,341 $0 $388,341
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Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Evaluation and presentation of data. 2 Objective #3: During the one month period hours allocated to ending January 2013, obtain 25,000 employee making a salary preorders for new athletic shoe on Under of $55,000/year. $26.44 $53 $0 $53 Armour website. Objective Evaluation Subtotal $26 $53 $0 $53 Research and Evaluation Total $4,132 $524,235 $0 $524,235 CAMPAIGN TOTAL $30,528 $3,438,860 $0 $3,438,860
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Evaluation Plan Objective #1 Criteria. Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013. Tools. Pre-campaign, use the Under Armour website and Facebook pages in combination with store displays where Under Armour products are sold, to invite people to take a survey to evaluate awareness of Under Armour technology usage. At the end of the survey, the person will be presented with a coupon for 10% off a purchase. They will also be asked to give their information and permission for UA to them to participate in the follow-up survey for a 20% discount coupon and the chance to be outfitted by Under Armour for one year. Once the campaign is concluded, the opted-in individuals will be invited to take another survey to determine if the campaign increased awareness of technology usage in key publics. Once the surveys are received they will be examined so that only the data collected from people falling into the key publics will be evaluated. Collected data will be used to extrapolate the trends of the key public as a whole, based on those representatives surveyed. The goal is for 80% of people identified as part of a key public to be aware of the technology usage in UA footwear. Objective #2 Criteria. Over a six month period ending December 2012, generate interest in footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Tools. Pre-campaign; use the Under Armour website and Facebook pages in combination with store displays where Under Armour products are sold, to invite the public to take a survey to evaluate their knowledge and/or excitement related to release of new footwear. Results will be evaluated and data determined to be related to key publics will be used to create a baseline measurement. At the conclusion of the campaign, the public will be given the opportunity to participate in a survey to evaluate knowledge and excitement about new footwear. In addition, respondents will be asked how likely they are to order the new footwear and to prioritize the reasons why/why not using a predetermined list of possible reasons. Once the data is collected, that determined to be related to the key publics will be compared with the baseline data. Before, during, and after the campaign, conversations regarding new footwear being offered by Under Armour and competitors will be monitored on social media sites such as Facebook and Twitter as well as traditional media sites such as magazines and newspapers. The monitoring service will identify key influentials for Under Armour to target in the social media space, document number of mentions, whether the comments were negative or positive, and number of comments showing order intention.
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Objective #3 Criteria. During the one month period ending January 2013, obtain 25,000 preorders for new athletic shoe on Under Armour website. Tools. Records kept of website preorders placed for the new athletic shoe.
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References
AdAge. Retrieved November 6, 2011, from http://adage.com/article/news/armour-s-latestfootwear-line-live-hype/140126/ Barbour, C., Barbour, N.H., Scully, P.A. (n.d.). Peer group influence. Retrieved December 23, 2011, from http://www.education.com/reference/article/peer-group-influence/ Bloomberg BusinessWeek. Retrieved November 6, 2011, from http://www.magazine.org/ Bloomberg BusinessWeek. Retrieved November 6, 2011, from http://www.businessweek.com/magazine/content/07_18/b4032069.htm BrandDunk. Retrieved October 26, 2011, from http://branddunk.com/2009/02/18/athletes-thatendorse-under-armour/ Bureau of Labor Statistics. Retrieved November 5, 2011, from http://www.bls.gov/eag/eag.us.htm#eag_us1.f.P Bureau of Labor Statistics. Retrieved November 21, 2011, from http://www.bls.gov/oco/ocos251.htm ChildStats. Retrieved November 20, 2011, from http://www.childstats.gov/americaschildren/index.asp CNBC. Retrieved November 7, 2011 from http://www.cnbc.com/id/38787000/Plenty_Riding_On_Under_Armour_s_Basketball_Sh oe Corner bakery. Retrieved December 18, 2011, from http://www.cornerbakerycafe.com/Catering/CateringMenu.aspx?category=1039 Deem, Valmon selected as head 2012 Olympic team staff – track & field. (2011, February 17). Retrieved December 26, 2011, from http://www.usatf.org/News/Deem,-Valmon-selectedto-head-2012-Olympic-Team-St.aspx Deford, F. (2004, September 6). Molders of men: Influence of coaches on young minds stretches far beyond school field [Electronic version]. Sports Illustrated High schools in the U.S. Retrieved December 18, 2011, from http://www.betterhighschools.org/pubs/documents/usfactsheetandreferences_final_08040 6.pdf
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iMedia Connection. Retrieved November 16, 2011, from http://www.imediaconnection.in/article/12/Marketing/marketers-target-kids-to-getextended-benefits.html LIVESTRONG. Retrieved November 21, 2011, from http://www.livestrong.com/article/404555what-kind-of-triple-jump-shoes-do-the-olympic-athletes-use/ Mediamark Research Inc. Retrieved November 20, 2011, from http://mediamark.com/mri/docs/press/pr_11-21-05_KidsStudy.htm Printing for less. Retrieved December 18, 2011, from https://www.printingforless.com/catalogseight.html PR Web. Retrieved December 24, 2011, from http://www.prweb.com/releases/sports_clothing_apparel/fitness_clothing/prweb8117767. htm Runner’s World. Retrieved November 21, 2011, from http://www.runnersworld.com/article/0,7120,s6-240-400--14112-F,00.html Seeking Alpha. Retrieved November 7, 2011, from http://seekingalpha.com/article/302383under-armour-posts-strong-q3-shares-remain-overvalued Sharrow, R. (2011). Under Armour debuts largest footwear campaign yet [Electronic Version]. Baltimore Business Journal So how much will a social media strategy cost? (n.d.). Retrieved October 2, 2011, from http://mackcollier.com/so-how-much-will-a-social-media-strategy-cost/ Under Armour. Retrieved October 26, 2011, from, http://investor.underarmour.com/company/about.cfm Under Armour. Retrieved December 18, 2011, from http://www.underarmour.com/shop/us/en/find-a-store Under Armour. Retrieved November 14, 2011, from http://www.underarmour.com/shop/us/en/pid1228138 Under Armour, Retrieved November 21, 2011, from http://www.underarmour.com/shop/us/en/search?q=college+ensorsements Walker, A.K. (2011). Sneaker comeback: Under Armour looking for footwear to return to growth this year [Electronic Version]. The Baltimore Sun
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Xinhua News Agency. Retrieved November 5, 2011, from http://news.xinhuanet.com/english2010/business/2011-11/03/c_131226719.htm
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Running Head: UNDER ARMOUR PR CAMPAIGN
Under Armour Public Relations Campaign Michelle Waddle West Virginia University
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Executive Summary
The public needs to have knowledge and understanding of what makes the new line of Under Armour footwear different, what makes it better than the competition. A failed second attempted launch of the footwear line, could negatively affect the company for a number of years. Research has shown that Under Armour has a strong foundation in the performance apparel market. The company has loyal customers that cross over a few different publics and has access to influentials that can speak to these key publics. The company has proven they have the internal expertise to enable success in the design and marketing of new products, such as footwear. Children, aged 6 to 11, form a key public for Under Armour. In addition to being the adult market of the future, many children have their own purchasing power and can influence their parents’ purchasing habits. Research has also noted that brand loyalties can be established as early as age two. Athletes likely to participate in the 2012 Summer Olympic track & field events are a second key public this campaign will focus on. High School and College athletes receive Under Armour brand materials from their college sports teams and believe in the technology because they have experience with the brand and its technology. For this reason, High School and College coaches are the third and final key public identified in this campaign. The goal of the Under Armour PR campaign is to increase awareness of value and use of Under Armour technology used in new footwear line. We need to instill faith that the company has created a product that is revolutionary, technologically advanced, and in line with the company mission. This strategy is key to success in a new market. The following tactics will be used, along with others, in this PR campaign and outlined more thoroughly later in this plan.
Store events, inviting children and parents to meet the athletes who wear Under Armour footwear. Educate parents about the technology in the shoes using informational brochures as well as insole cross samples. Invite athletes to explain their dedication to the Under Armour brand.
Team with video game programmers to include the Under Armour brand line of footwear in their sports video games.
Creation and use of a blog specifically focused on the needs, questions, and concerns of Olympic hopefuls. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure.
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Award scholarships to deserving Olympic hopefuls and present the scholarships and athletic sponsorships at periodical press conferences held at Olympic Training facilities across the country.
Work with Olympic athletes and hopefuls to set up exclusive interviews with key media personalities.
Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings.
Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear.
Under Armour representatives will attend parent interest meetings usually held at the beginning of each high school sport season. The representative will educate parents on the benefits of the brand and to explain the price vs. reward aspect of purchasing Under Armour.
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Table of Contents
Executive Summary ............................................................................................................................................ 2 Table of Contents ............................................................................................................................................... 4 Company Background ......................................................................................................................................... 5 Situation Analysis .............................................................................................................................................. 10 Core Problem Statement .................................................................................................................................. 10 Key Publics ........................................................................................................................................................ 10 Primary and Secondary Messages .................................................................................................................... 13 Campaign Goal .................................................................................................................................................. 14 Campaign Objectives ........................................................................................................................................ 14 Campaign Strategies and Tactics ...................................................................................................................... 14 Calendar of PR Activities ................................................................................................................................... 17 Budget .............................................................................................................................................................. 22 Evaluation Plan ................................................................................................................................................. 30 References ........................................................................................................................................................ 32
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Company Background
The External Environment The economy that Under Armour finds itself relaunching the footwear line in is less than ideal. The unemployment rate in the United States is at approximately 9.1% (Bureau of Labor Statistics, 2011a) and the U.S. Federal Reserve has recently downgraded its projection of the economic outlook. “Economic growth remains ‘frustratingly slow’ although it strengthened in the third quarter, stated Fed Chairman Ben Bernanke (Xinhua, 2011).” The Fed also said, "Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated (Xinhua, 2011)." The overall economy is slightly stronger than it was in 2009, when Under Armour attempted its first footwear launch, but growth remains slow. The Industry There are a few giants operating in this athletic shoe industry, primarily Nike and Adidas. There are also other, smaller, brands such as Brooks. Nike, through the Nike, Jordan and Converse brands, controls about 95% of the $2.4 billion basketball shoe market in the U.S (CNBC, 2011). The athletic apparel industry is projected to grow to $126.3 billion by 2015, due to “dramatic lifestyle changes, increasing sports participation particularly by women, and demand for stylish, functional and versatile sports apparel (PR Web, 2011).” With a rapidly-aging population, there is increased emphasis on healthy lifestyle and physical activities such as sports, yoga and jogging (PR Web, 2011). The Client Under Armour was founded in 1996 with a plan to make “a shirt that worked with your body to regulate temperature and enhance performance (Under Armour, 2011a).” The company was founded by University of Maryland alumni, Kevin Plank. Under Armour's mission is “to make all athletes better through ion, science, and the relentless pursuit of innovation (Under Armour, 2011a).” Under Armour sells apparel and shoes to men, women, and children. Products are used by professional athletes as well as amateur athletes and “weekend warriors.” According to the BrandDunk website, in 2009, at least 29 athletes or teams have endorsement deals with Under Armour. Under Armour needs to communicate to professional and college sports teams, athletes, those who consider themselves as such and those who enjoy sports. The Product, Service, or Issue The product line is designed to improve athletic performance and keep athletes’ bodies dry and at the optimal body temperature. Under Armour sells shirts, bottoms, underwear, sports bras, socks, outerwear, footwear, and accessories, such as hats, bags gloves, sunglasses, and mouth wear. The company has targeted lines for women and children in addition to the men’s line that they started with. The products all keep one thing at the forefront – the company’s mission is “to make all
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athletes better through ion, science and the relentless pursuit of innovation (Under Armour, 2011a).” Promotions When Under Armour launched the footwear line in 2009, the company spent $25 million on a campaign that included a commercial during the Super Bowl (AdAge, 2011). The campaign was far from successful, and Under Armour worked to redesign the product, this time offering the UA moisture wicking fabric inside the shoe. The original campaign was a disappointment and Under Armour seemed to learn from the lesson. For this launch, the company is taking its time preparing the public and giving the opportunity for the public to take in each new piece as it becomes available. Under Armour runs campaigns specific to their women’s line as well as charitable involvements. In commercials, UA has targeted women using musical tags such as “goodbye girl” and “boom boom tap,” but the company also realized that female athletes don’t want to be treated differently simply because they are female and have included all female versions of the popular “Protect This House. I Will.” ads in the campaign. Under Armour’s charitable efforts include “Power In Pink” and “UA Freedom.” Market Share Under Armour has a substantial market share when it comes to performance apparel, a 75% share of the $500 million market (Bloomberg, 2011b). As far as athletic shoes, Under Armour first ventured into the cleat side of the puzzle and captured 20% of the market (Bloomberg, 2011b). Cleats only make up 1% of the $12.3 billion athletic footwear market; running shoes alone make up 40%, or $12.3 billion, of the athletic footwear market (Bloomberg, 2011b). Under Armour currently has only a 1.3% market share of this market (Sharrow, 2011). Competition Under Armour’s biggest competitor is Nike. When venturing into the footwear market, Under Armour will move into territory where their competitor already has a strong foot hold. Nike, on the other hand, moved into the performance apparel. In 2005, Nike launched a full out attack on Under Armour's stronghold. “Morningstar Inc. stock analyst Brady Lemos estimates the behemoth spent $30 million that year alone to aggressively promote its line of pro-quality gear (Bloomberg, 2011a).” Resources Under Armour has formed a strong client base of athletes and sport enthusiasts. Fans are loyal and choose the brand over others because they believe in the company mission and in the quality of the product. Due to the relationships formed with college and professional athletes, the company has access to many loyal athletes that are used as influentials in commercials. Examples of athletes and teams with endorsement deals are as follows:
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Jeff Francoeur – Atlanta Braves Francisco Liriano – Minnesota Twins Nick Markakis – Baltimore Orioles Jose Reyes – NY Mets Alfonso Soriano – Chicago Cubs Jeff Samardzjia – Chicago Cubs Ryan Zimmerman – Washington Nationals Vernon Davis – San Francisco 49ers AJ Hawk – Green Bay Packers Devin Hester – Chicago Bears Julius Jones – Seattle Seahawks Patrick Kerney – Seattle Seahawks Ray Lewis – Baltimore Ravens Joe Thomas – Cleveland Browns Tommy Tuberville – former Auburn Head Coach Jonathan Vilma – NY Jets Patrick Willis – San Francisco 49ers Brandon Jennings – currently playing in Europe Jeremy Bloom – skiing Cat Osterman – softball Kimmie Meissner – figure skating Auburn Tigers Hawaii Warriors Maryland Terrapins North Texas Mean Green South Carolina Gamecocks South Florida Bulls Texas Tech Red Raiders Utah Utes (BrandDunk, 2011)
While successful in their performance apparel endeavors, Under Armour has faced a different experience with the original launch of their footwear in 2009, probably because it did not include any of the technology that makes the performance wear so valuable to its fans. With the addition of Under Armour-esque technology to the shoe designs, this attempt should be a bit more successful, but not everyone is convinced. When evaluating the Q3 2011 financial results, the following was said about the new footwear launch: “We still do not like Under Armour’s footwear strategy and we predict a similar fate for this year’s running offerings. We think a sea of mark-downs may hit Under
Under Armour PR Campaign
Armour footwear yet again, sending the company back to square one (Seeking Alpha, 2011).” SWOT Analysis
Internal Origin (attributes of the organization)
Helpful to achieving the objective
Harmful to achieving the objective
Strengths
Weaknesses
Loyal customer base.
Started in the performance apparel market before everyone else – looked at as a leader.
Beneficial pool of influentials to choose from when advertising and communicating about the product.
May be growing too fast to be able to sustain growth rates.
Because of high growth rate and high P-E ratios, investors may start shying away from stock (Bloomberg, 2011b).
Original footwear launch was implemented quickly and could have been better planned out and come across as less arrogant (AdAge, 2012).
New footwear team, including FORMER Nike executive, Gene McCarthy (Sharrow, 2011).
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Helpful to achieving the objective External Origin Opportunities (attributes of the Building upon current customer organization) loyalty, it is possible to introduce the footwear and its features in order to show quality for the price. Roll out a slower implementation of the offering and allow time for consumers to “want” each piece.
Harmful to achieving the objective Threats Not only is Nike the largest single competitor to Under Armour in footwear, but the competing company has also ventured into the performance apparel arena. The US economy is not yet ideal and people may need a little more time to decide to make a big purchase, if able to spend the money at all. "If Under Armour's shoes don't sell, and retailers are stuck with another weak footwear product from the company, the company could be handicapped in footwear for a number of seasons," Swinand of Morningstar recently wrote in a report (Walker, 2011).
Public Profiles Professional Athletes. These are probably the individuals that have been wearing the Under Armour brand the longest because they probably played college sports as well and wore the brand at that point. The motivating self-interest for this group is fame and more value that might aid in negotiating a higher salary. College Athletes. The college athlete doesn’t tend to have a great deal of extra cash to spend on expensive performance apparel and footwear. They receive Under Armour brand materials from their college sports teams and believe in the technology. The motivating self-interest for this group is to perform better, to be better athletes, and pride in their program. For a subset of this group, a motivating self-interest is to improve the athletic performance and image so that they are drafted to play professionally. Sports Enthusiasts. This group tends to either have played sports in high school college or just enjoys sports in general. This group is interested in imitating the professional athletes that they ire so much. A subset of this group may also visit the gym on their own to improve their physical abilities, but they tend to understand that they will never play professional sports.
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Situation Analysis
The research has shown that Under Armour has a strong foundation in the performance apparel market. The company has loyal customers that cross over a few different publics and has access to influential that can speak to various publics. The company has the internal expertise to enable success in the design and marketing of new products, such as footwear. The failed launch of a footwear line in 2009, only two years before the current launch, is going to be the biggest issue that will need to be overcome. We need to instill faith that the company has created a product that is revolutionary, technologically advanced, and in line with the company mission. This strategy is key to success in a new market. Core Problem Statement
Customers and investors alike need to understand the value in the new line of footwear being offered by Under Armour. If Under Armour fails a second attempted launch of the footwear line, it could negatively affect the company for a number of years. Key Publics
Children Children, aged 6 to 11, form a key public for Under Armour. In addition to being the adult market of the future, many children have their own purchasing power and can influence their parents’ purchasing habits (iMedia Connection, 2011). “According to the Center for a New American Dream, babies as young as six months of age can form mental images of corporate logos and mascots. Brand loyalties can be established as early as age two, and by the time children head off to school most can recognize hundreds of brand logos (iMedia Connection, 2011).” Demographic and psychographic profile. According to the 2010 census, there are approximately 24.3 million children in the United States in the targeted age range. Racial and ethnic diversity is changing rapidly and the percentage of Hispanic children has increased faster than any other racial or ethnic group (ChildStats, 2011). According to a 2005 study, 70% of children want to “make a lot of money” when they are older, go online frequently, nearly 60% say they watch commercials when they come on and a majority say friends are an important part of their lives (Mediamark, 2011). Motivating self-interests. Children are motivated by extrinsic means from an early age; they are trained to seek approval from parents and teachers. As they get older, they continue to seek approval but the focus changes to approval from their peers.
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Status of current relationship with the organization and issue. Children in this age range do not know much about the technology behind the footwear, but they have an ever-strengthening relationship with Under Armour. Many children already trust the UA brand, through their experiences in team sports and simply because they are familiar with the brand. Third party influential and other opinion leaders. Children influence their parents’ purchasing decisions. Marketers target children by creating "Pester power," which refers to “children's ability to nag their parents into purchasing items they may not otherwise buy (iMedia Connection, 2011).” Children are strongly influenced by their parents, coaches, teachers and peer groups. They are also influenced by public role models such as athletes, actors, musicians. Some studies have found that peer groups may have more influence over a child’s behavior that parents do (Barbour, et al., n.d.). What objectives each public will help accomplish. Children can help to generate interest in the new line of footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Though children will not be able to purchase directly online, they can use their influence to encourage parents to place orders. Key Public: Likely 2012 Summer Olympic Track & Field Athletes Athletes likely to participate in the 2012 Summer Olympic track & field events are a key public for Under Armour. Demographic and psychographic profile. Athletes on the US Olympic team are from all over the country, though a significant number call California home. Olympians are from various ethnicities and cultures. They are highly competitive and are always pushing themselves to try harder, be better, and accomplish more. These are the athletes who truly love their chosen sports and are proud to represent their countries. Motivating self-interests. Olympic athletes aspire to be the best in their given disciplines. Always striving to grow and out-perform their previous accomplishments, these athletes are motivated by self-improvement. Status of current relationship with the organization and issue. Track & field athletes wear Under Armour, but less often than other brands. Medal winners from the 2008 Summer Olympics wore Adidas, Mizuno and Nike brand shoes, with no mention of Under Armour (LIVESTRONG, 2011). In the 2011 Winter Shoe Guide on “Runner’s World” website, Under Armour had one shoe reviewed but the review wasn’t written strongly. It appears that runners currently prefer other brands (Runners World, 2011). The 2012 Men’s Head Coach for the Track & Field team competing in the 2012 Olympics is the University of Maryland head coach currently and, therefore, already has ties to Under Armour (Deem, Valmon selected, 2011). Third party influential and other opinion leaders. Olympic athletes are considered role models and often end up with sponsorships that encourage consumers to purchase the same brand
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the Olympians are wearing. Seeing a champion wearing specific brands makes those brands more appealing to people who look up to them and aspire to be like them. What objectives each public will help accomplish. Olympic athletes will help to accomplish the stated objective of 25,000 preorders from the website. Key Public: High School and College Track & Field Coaches High School and College athletes receive Under Armour brand materials from their college sports teams and believe in the technology because they have experience with the brand and its technology. For this reason, High School and College coaches are a key public for Under Armour. Demographic and psychographic profile. Typically, coaches are retired players of the sports they coach. In 2008, coaches and scouts held approximately 225,700 jobs in the United States. Many High School coaches work part-time in the role and full-time as teachers, they also typically coach more than one sport. College coaches are full-time workers and spend a great deal of time traveling for recruiting purposes. “Among those employed in wage and salary jobs, 52% held jobs in public and private educational services. About 13% worked in amusement, gambling, and recreation industries. Another 6% worked in the spectator sports industry (Bureau of Labor Statistics, 2011b).” Motivating self-interests. The motivating self-interest for this group is to perform better as a team, to cultivate better individual athletes and school pride, and to recruiting efforts. For a subset of this group, a motivating self-interest is to improve the athletic performance so that team athletes are drafted to play professionally. Status of current relationship with the organization and issue. Depending on the sport in question, some coaches have a very strong relationship with Under Armour. At least five colleges have endorsement deals with Under Armour and team logoed merchandise is available on the Under Armour website (Under Armour, 2011d). Third party influential and other opinion leaders. Coaches have very unique relationships with their athletes and, thus, have a great deal of influence. “The impressions coaches make on our children are vital, even decades after the child has left his watch. Right or wrong, coaches remain hugely important characters in this culture of ours. (Deford, 2004).” Because coaches often play such an important role in the lives of children and teens, they have profound influence over the thoughts, actions and beliefs of their athletes. What objectives each public will help accomplish. By buying into Under Armour technology use themselves, and transferring the beliefs to their student athletes, coaches will help accomplish the objective of raising awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear.
Under Armour PR Campaign
13
Primary and Secondary Messages
Key Public: Children Primary Message.
Through a grass roots effort, interest can be generated for the new line of footwear, and stated purchase intention can be improved. Secondary Messages.
Children find friends to be an important aspect in their lives. Because of this, children trust each other and look to one another for guidance.
Peer pressure can be used to encourage peers to try the Under Armour brand and to purchase; children should discuss the Under Armour brand with their peers. Children can communicate the comfort of the shoes and the various benefits such as flexibility, increased traction, temperature control and moisture wicking capability.
Key Public: Likely 2012 Summer Olympic Track & Field Athletes Primary Message.
Olympic athletes are respected role models in our society and children and adults often want to imitate them. Secondary Messages.
By showing how well the Under Armour shoes perform under pressure, Olympic athletes can encourage others to place preorders on the website.
Olympic athletes should discuss in interviews how the technology used in the Under Armour shoes has allowed them to perform better.
Key Public: High School and College Track & Field Coaches Primary Message.
Coaches are capable of influencing many different aspects of the athletes’ behavior, thoughts, and feelings. Coaches are able to educate student athletes about a brand and its benefits. Secondary Messages.
Coaches should negotiate, with Under Armour’s assistance, an endorsement deal with the company that helps get funds and supplies into their schools.
Under Armour PR Campaign
14
Coaches should educate athletes on the reasons why to wear Under Armour. Because “Coaches guide (Deford, 2004),” their athletes are more likely to consider the information and share it with their parents, which will lead to more people understanding the use of technology in the new footwear line. Campaign Goal
The goal of the Under Armour PR campaign is to increase awareness of value and use of Under Armour technology used in new footwear line. Key publics are already connected to Under Armour through the athletic apparel lines, so building awareness of and loyalty to the footwear lines will position UA in the athletic footwear market. Campaign Objectives
Objective 1 Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013. Objective 2 Over a six month period ending December 2012, generate interest in footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Objective 3 During the one month period ending January 2013, obtain 25,000 preorders for new athletic shoe on Under Armour website. Campaign Strategies and Tactics Key Public: Children Strategy #1. Utilize the power of peer pressure to show children the benefits of wearing the Under Armour line of footwear. Tactics.
Invite children and parents to Under Amour stores to meet the athletes who wear Under Armour footwear. Include high school, college, and professional athletes. Encourage partnerships offering discounts to local youth groups and sports clubs so that Under Armour footwear becomes part of the uniform and children and parents learn to trust the brand well before high school sports.
Under Armour PR Campaign
15
Team with video game programmers to include the Under Armour brand line of footwear in their sports video games.
Strategy #2. Educate parents about the physical benefits of wearing the Under Armour line of footwear. Tactics.
Give “parent packets” out at events hosted at Under Armour stores. Included in these packets would be small cross sections of the insoles of the shoes so parents are able to see how the shoes will their child’s growing feet. Also in the packet would be information booklets explaining the science behind the design. Include in the discussions at the events examples of how the Under Armour shoes ed the athletes feet.
Key Public: Likely 2012 Summer Olympic Track & Field Athletes Strategy #1. Educate Olympic hopefuls about the technology included in the Under Armour line of footwear. Tactics.
Create a blog specifically focused on the needs, questions, and concerns of this public. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure. Encourage conversation comparing the brand to others in the market, with Under Armour representatives ing in the conversation to point out the benefits of the brand.
Hold periodical press conferences at Olympic Training facilities across the country to highlight the benefits of the Under Armour line of footwear. These press conferences can also double as a scholarship award ceremony, with an Under Armour presenting a scholarship to an athlete in addition to a sponsorship.
Strategy #2. Utilize Olympic athletes and hopefuls as role models to encourage others to purchase the Under Armour line of footwear. Tactic.
Work with Olympic athletes and hopefuls to set up exclusive interviews with key media personalities. Athletes will mention in these interviews how the Under Armour line of footwear fits into their training and the improvements they are seeing in their performance.
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Strategy #3. Utilize targeted mass media to reach public. Tactics.
Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings.
Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear. Testimonials from people who have tried the product should also be included.
Key Public: High School and College Track & Field Coaches Strategy #1. Create an environment in the locker room where Under Armour is the logical choice for athletes. Tactics.
Under Armour should negotiate endorsement deals with schools to help get needed funds and supplies into the school athletic programs.
High School coaches should invite Under Armour representatives to the parent interest meetings usually held at the beginning of each season to educate parents on the benefits of the brand and to explain the price vs. reward aspect of purchasing Under Armour.
Coaches should wear Under Armour brand footwear as well to set an example for athletes.
Under Armour PR Campaign
Calendar of PR Activities
Start Date: 1/1/2012 Public: Children, 6 – 11 Strategy #1: Utilize the power of peer pressure to show children the benefits of wearing the Under Armour line of footwear. Tactic #1: Invite children and parents to Under Amour stores to meet the athletes who wear Under Armour footwear. Include high school, college, and professional athletes. Tactic #2: Encourage partnerships offering discounts to local youth groups and sports clubs so that Under Armour footwear becomes part of the uniform and children and parents learn to trust the brand well before high school sports. Tactic #3: Team with video game programmers to include the Under Armour brand line of footwear in their sports video games.
Calendar: Under Armour Campaign Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb
17
Under Armour PR Campaign
Start Date: 1/1/2012
Calendar: Under Armour Campaign (continued) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb
Strategy #2: Educate parents about the physical benefits of wearing the Under Armour line of footwear. Tactic #1: Give “parent packets” out at events hosted at Under Armour stores. Included in these packets would be small cross sections of the insoles of the shoes so parents are able to see how the shoes will their child’s growing feet. Also in the packet would be information booklets explaining the science behind the design. Tactic #2: Include in the discussions at the events examples of how the Under Armour shoes ed the athletes feet. Public: Likely 2012 Summer Olympic Track & Field Athletes Strategy #1: Educate Olympic hopefuls about the technology included in the Under Armour line of footwear. Tactic #1: Create a blog specifically focused on the needs, questions, and concerns of this public. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure. Encourage conversation comparing the brand to others in the market, with Under Armour representatives ing in the conversation to point out the benefits of the brand.
18
Under Armour PR Campaign
Calendar: Under Armour Campaign (continued) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb
Start Date: 1/1/2012 Tactic #2: Hold periodical press conferences at Olympic Training facilities across the country to highlight the benefits of the Under Armour line of footwear. These press conferences can also double as a scholarship award ceremony, with an Under Armour presenting a scholarship to an athlete in addition to a sponsorship. Strategy #2: Utilize Olympic athletes and hopefuls as role models to encourage others to purchase the Under Armour line of footwear. Tactic#1: Work with Olympic athletes and hopefuls to set up exclusive interviews with key media personalities. Athletes will mention in these interviews how the Under Armour line of footwear fits into their training and the improvements they are seeing in their performance. Strategy #3: Utilize targeted mass media to reach public. Tactic#1: Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings. Tactic #2: Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear. Testimonials from people who have tried the product should also be included.
19
Under Armour PR Campaign
Calendar: Under Armour Campaign (continued) Start Date: 1/1/2012 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Public: High School and College Track & Field Coaches Strategy #1: Create an environment in the locker room where Under Armour is the logical choice for athletes. Tactic #1: Under Armour should negotiate endorsement deals with schools to help get needed funds and supplies into the school athletic programs. Tactic #2: High School coaches should invite Under Armour representatives to the parent interest meetings usually held at the beginning of each season to educate parents on the benefits of the brand and to explain the price vs. reward aspect of purchasing Under Armour. Tactic #3: Coaches should wear Under Armour brand footwear as well to set an example for athletes. Research and Evaluation Objective #1: Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013.
20
Under Armour PR Campaign
Calendar: Under Armour Campaign (continued) Start Date: 1/1/2012 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Objective #2: Over a six month period ending December 2012, generate interest in footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Objective #2: During the one month period ending January 2013, obtain 25,000 preorders for new athletic shoe on Under Armour website.
21
Under Armour PR Campaign
Budget
Start Date: 2/1/2012
Budget: Under Armour Campaign Detail Per Item Cost
Total Projected
Sponsored Credit
Actual Projected
Public: Children, 6 – 11 Strategy #1: Utilize the power of peer pressure to show children the benefits of wearing the Under Armour line of footwear.
Tactic #1: Invite children and parents to Under Amour stores to meet the athletes who wear Under Armour footwear. Include high school, college, and professional athletes.
Catering during event at 87 stores (mini sandwiches and sweets)
$350.00
$30,450
$0
$30,450
Athletes will not be paid for attending, as it will be part of endorsement deals
$0.00
$0
$0
$0
Tactic #2: Encourage partnerships offering discounts to local youth groups and sports clubs so that Under Armour footwear becomes part of the uniform and children and parents learn to trust the brand well before high school sports.
Mailings to youth group and sports club leaders printing $.05 each and mailing $.44 each. Mailings will be sent to 50 organizations in each state.
$0.49
$1,225
$0
$1,225
22
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Tactic #3: Team with video game programmers Create relationships with to include the Under Armour brand line of programmers working for footwear in their sports video games. two major companies creating sports video games, EA Sports and 2K Sports. Allowance for dinners, sporting event tickets, etc. $5,000.00 $10,000 $10,000 Strategy Subtotal $5,350 $41,675 $0 $41,675 Strategy #2: Educate parents about the physical benefits of wearing the Under Armour line of footwear. Tactic #1: Give “parent packets” out at events hosted at Under Armour stores. Included in these packets would be small cross sections of the insoles of the shoes so parents are able to see how the shoes will their child’s growing feet. Also in the packet would be information booklets explaining the science behind the design. Tactic #2: Include in the discussions at the events examples of how the Under Armour shoes ed the athletes feet.
Printing of packet materials for 9,000 packets Production of insole cross sections, using regular insoles produced for running shoes and cut into thirds No cost for this tactic.
Strategy Subtotal Public Total Public: Likely 2012 Summer Olympic Track & Field Athletes
$0.55
$4,950
$0
$4,950
$5.00
$15,000
$0
$15,000
$0.00 $6 $5,356
$0 $19,950 $61,625
$0 $0 $0
$0 $19,950 $61,625
23
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Cost Strategy #1: Educate Olympic hopefuls about the technology included in the Under Armour line of footwear. Tactic #1: Create a blog specifically focused on the needs, questions, and concerns of this public. Invite Under Armour representatives to speak about the technology used, methods of testing durability and functionality, and performance under pressure. Encourage conversation comparing the brand to others in the market, with Under Armour representatives ing in the conversation to point out the benefits of the brand.
New launch, content and customer interaction (12 months)
Tactic #2: Hold periodical press conferences at Olympic Training facilities across the country to highlight the benefits of the Under Armour line of footwear. These press conferences can also double as a scholarship award ceremony, with an Under Armour presenting a scholarship to an athlete in addition to a sponsorship.
Travel to/from training facilities and 1 night hotel for 2 people, 4 conferences
Sponsored Actual Credit Projected
$6,000.00
$72,000
$0
$72,000
$2,000.00
$8,000
$0
$8,000
$5,000.00 $13,000
$20,000 $100,000
$0 $0
$20,000 $100,000
Scholarship (4)
Strategy Subtotal Strategy #2: Utilize Olympic athletes and hopefuls as role models to encourage others to purchase the Under Armour line of footwear.
Total Projected
24
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Tactic#1: Work with Olympic athletes and Phone calls to media hopefuls to set up exclusive interviews with key s - no cost media personalities. Athletes will mention in these interviews how the Under Armour line of footwear fits into their training and the improvements they are seeing in their performance. $0.00 $0 $0 $0 Strategy Subtotal $0 $0 $0 $0 Strategy #3: Utilize targeted mass media to reach public. Tactic#1: Offer exclusive interviews to magazines such as Runner’s World to highlight new features and improvements to new footwear offerings. Tactic #2: Create VNRs to be shown online on websites such as Runner’s World. The VNRs should highlight new features and technology used in footwear. Testimonials from people who have tried the product should also be included. Strategy Subtotal Public Total
No cost for this tactic.
$0
$0
$0
$1,000.00 $1,000 $14,000
$3,000 $3,000 $103,000
$0 $0 $0
$3,000 $3,000 $103,000
Creation of three VNRs of 2-3 minutes each
Public: High School and College Track & Field Coaches Strategy #1: Create an environment in the locker room where Under Armour is the logical choice for athletes.
$0.00
25
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Cost Tactic #1: Under Armour should negotiate 5 schools will be chosen endorsement deals with schools to help get in each state and UA will needed funds and supplies into the school give $2,500 to each athletic programs. $2,500.00 Tactic #2: High School coaches should invite Travel to/from schools Under Armour representatives to the parent and 1 night hotel for 1 interest meetings usually held at the beginning person. This will occur at of each season to educate parents on the benefits the same high schools of the brand and to explain the price vs. reward designated for tactic #1 aspect of purchasing Under Armour. $1,000.00 Tactic #3: Coaches should wear Under Armour UA will offer 10% brand footwear as well to set an example for discounts to coaches for 2 athletes. orders per year. $20.00 Strategy Subtotal $3,520 Public Total $7,040
Total Projected
Sponsored Actual Credit Projected
$625,000
$0
$625,000
$250,000
$0
$250,000
$500,000 $1,375,000 $2,750,000
$0 $500,000 $0 $1,375,000 $0 $2,750,000
26
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Detail Per Item Cost
Start Date: 2/1/2012
Research and Evaluation Objective #1: Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013.
Kiosks will be set up in stores using iPads to survey people in person. The iPads will be set up to link to the same survey being used on the website and Facebook pages. information will be collected electronically and email blast will be sent to all opted-in individuals. 2 hours allocated to employee making a salary of $55,000/year. Evaluation and presentation of data. 40 hours allocated to 5 employees each making a salary of $55,000/year.
Total Projected
Sponsored Actual Credit Projected
$1,500.00
$130,500
$0
$130,500
$26.44
$53
$0
$53
$26.44
$5,288
$0
$5,288
27
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Objective Evaluation Subtotal $1,553 $135,841 $0 $135,841 Objective #2: Over a six month period ending Kiosks will be set up in stores using iPads to December 2012, generate interest in footwear, creating anticipation of release and survey people in person. The iPads will be set up to stated intention of purchase by 50% of key link to the same survey publics. being used on the website and Facebook pages. $1,500.00 $375,000 $0 $375,000 information will be collected electronically and email blast will be sent to all opted-in individuals. 2 hours allocated to employee making a salary of $55,000/year. $26.44 $53 $0 $53 Social media monitoring service, 8 months $1,000.00 $8,000 $0 $8,000 Evaluation and presentation of data. 40 hours allocated to 5 employees each making a salary of $55,000/year. $26.44 $5,288 $0 $5,288 Objective Evaluation Subtotal $2,553 $388,341 $0 $388,341
28
Under Armour PR Campaign
Budget: Under Armour Campaign (continued) Start Date: 2/1/2012 Detail Per Item Total Sponsored Actual Cost Projected Credit Projected Evaluation and presentation of data. 2 Objective #3: During the one month period hours allocated to ending January 2013, obtain 25,000 employee making a salary preorders for new athletic shoe on Under of $55,000/year. $26.44 $53 $0 $53 Armour website. Objective Evaluation Subtotal $26 $53 $0 $53 Research and Evaluation Total $4,132 $524,235 $0 $524,235 CAMPAIGN TOTAL $30,528 $3,438,860 $0 $3,438,860
29
Under Armour PR Campaign
30
Evaluation Plan Objective #1 Criteria. Raise awareness of Under Armour technology usage, to include UA compression, HeatGear®, 4D Foam™ and Micro G® foam (Under Armour, 2011c), in new line of footwear to 80% among key publics over a twelve month period, ending January 2013. Tools. Pre-campaign, use the Under Armour website and Facebook pages in combination with store displays where Under Armour products are sold, to invite people to take a survey to evaluate awareness of Under Armour technology usage. At the end of the survey, the person will be presented with a coupon for 10% off a purchase. They will also be asked to give their information and permission for UA to them to participate in the follow-up survey for a 20% discount coupon and the chance to be outfitted by Under Armour for one year. Once the campaign is concluded, the opted-in individuals will be invited to take another survey to determine if the campaign increased awareness of technology usage in key publics. Once the surveys are received they will be examined so that only the data collected from people falling into the key publics will be evaluated. Collected data will be used to extrapolate the trends of the key public as a whole, based on those representatives surveyed. The goal is for 80% of people identified as part of a key public to be aware of the technology usage in UA footwear. Objective #2 Criteria. Over a six month period ending December 2012, generate interest in footwear, creating anticipation of release and stated intention of purchase by 50% of key publics. Tools. Pre-campaign; use the Under Armour website and Facebook pages in combination with store displays where Under Armour products are sold, to invite the public to take a survey to evaluate their knowledge and/or excitement related to release of new footwear. Results will be evaluated and data determined to be related to key publics will be used to create a baseline measurement. At the conclusion of the campaign, the public will be given the opportunity to participate in a survey to evaluate knowledge and excitement about new footwear. In addition, respondents will be asked how likely they are to order the new footwear and to prioritize the reasons why/why not using a predetermined list of possible reasons. Once the data is collected, that determined to be related to the key publics will be compared with the baseline data. Before, during, and after the campaign, conversations regarding new footwear being offered by Under Armour and competitors will be monitored on social media sites such as Facebook and Twitter as well as traditional media sites such as magazines and newspapers. The monitoring service will identify key influentials for Under Armour to target in the social media space, document number of mentions, whether the comments were negative or positive, and number of comments showing order intention.
Under Armour PR Campaign
31
Objective #3 Criteria. During the one month period ending January 2013, obtain 25,000 preorders for new athletic shoe on Under Armour website. Tools. Records kept of website preorders placed for the new athletic shoe.
Under Armour PR Campaign
32
References
AdAge. Retrieved November 6, 2011, from http://adage.com/article/news/armour-s-latestfootwear-line-live-hype/140126/ Barbour, C., Barbour, N.H., Scully, P.A. (n.d.). Peer group influence. Retrieved December 23, 2011, from http://www.education.com/reference/article/peer-group-influence/ Bloomberg BusinessWeek. Retrieved November 6, 2011, from http://www.magazine.org/ Bloomberg BusinessWeek. Retrieved November 6, 2011, from http://www.businessweek.com/magazine/content/07_18/b4032069.htm BrandDunk. Retrieved October 26, 2011, from http://branddunk.com/2009/02/18/athletes-thatendorse-under-armour/ Bureau of Labor Statistics. Retrieved November 5, 2011, from http://www.bls.gov/eag/eag.us.htm#eag_us1.f.P Bureau of Labor Statistics. Retrieved November 21, 2011, from http://www.bls.gov/oco/ocos251.htm ChildStats. Retrieved November 20, 2011, from http://www.childstats.gov/americaschildren/index.asp CNBC. Retrieved November 7, 2011 from http://www.cnbc.com/id/38787000/Plenty_Riding_On_Under_Armour_s_Basketball_Sh oe Corner bakery. Retrieved December 18, 2011, from http://www.cornerbakerycafe.com/Catering/CateringMenu.aspx?category=1039 Deem, Valmon selected as head 2012 Olympic team staff – track & field. (2011, February 17). Retrieved December 26, 2011, from http://www.usatf.org/News/Deem,-Valmon-selectedto-head-2012-Olympic-Team-St.aspx Deford, F. (2004, September 6). Molders of men: Influence of coaches on young minds stretches far beyond school field [Electronic version]. Sports Illustrated High schools in the U.S. Retrieved December 18, 2011, from http://www.betterhighschools.org/pubs/documents/usfactsheetandreferences_final_08040 6.pdf
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iMedia Connection. Retrieved November 16, 2011, from http://www.imediaconnection.in/article/12/Marketing/marketers-target-kids-to-getextended-benefits.html LIVESTRONG. Retrieved November 21, 2011, from http://www.livestrong.com/article/404555what-kind-of-triple-jump-shoes-do-the-olympic-athletes-use/ Mediamark Research Inc. Retrieved November 20, 2011, from http://mediamark.com/mri/docs/press/pr_11-21-05_KidsStudy.htm Printing for less. Retrieved December 18, 2011, from https://www.printingforless.com/catalogseight.html PR Web. Retrieved December 24, 2011, from http://www.prweb.com/releases/sports_clothing_apparel/fitness_clothing/prweb8117767. htm Runner’s World. Retrieved November 21, 2011, from http://www.runnersworld.com/article/0,7120,s6-240-400--14112-F,00.html Seeking Alpha. Retrieved November 7, 2011, from http://seekingalpha.com/article/302383under-armour-posts-strong-q3-shares-remain-overvalued Sharrow, R. (2011). Under Armour debuts largest footwear campaign yet [Electronic Version]. Baltimore Business Journal So how much will a social media strategy cost? (n.d.). Retrieved October 2, 2011, from http://mackcollier.com/so-how-much-will-a-social-media-strategy-cost/ Under Armour. Retrieved October 26, 2011, from, http://investor.underarmour.com/company/about.cfm Under Armour. Retrieved December 18, 2011, from http://www.underarmour.com/shop/us/en/find-a-store Under Armour. Retrieved November 14, 2011, from http://www.underarmour.com/shop/us/en/pid1228138 Under Armour, Retrieved November 21, 2011, from http://www.underarmour.com/shop/us/en/search?q=college+ensorsements Walker, A.K. (2011). Sneaker comeback: Under Armour looking for footwear to return to growth this year [Electronic Version]. The Baltimore Sun
Under Armour PR Campaign
Xinhua News Agency. Retrieved November 5, 2011, from http://news.xinhuanet.com/english2010/business/2011-11/03/c_131226719.htm
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