Under Armour’s Marketing Strategy of New Audience
Yantai Tang
1. * †
1
English School Attached to Guangdong University of Foreign Studies Guangzhou 510470 China
*
Corresponding author. Email: 2111808198@e.gzhu.edu.cn
†
These authors contributed equally
ABSTRACT
To acquire new customer groups while applying and expanding the brand's strategy, Under Armour researched the
brand's customer engagement. Both qualitative and quantitative methods are used to support the data in this research
report. The difference between these two research methods is also obvious. Quantitative research is mainly based on the
actual data obtained from the survey, while qualitative research is based on a large number of historical facts and life
experience materials. Based on various research conclusions on customer engagement in the previous period, the
problems and theories that can be used for the brand are summarized. Through the use of online and offline customer
engagement questionnaire surveys, data feedback is collected and analysed with SPSS and SWOT. If Under Armour
wants to expand a new custom. er base, it must increase customer satisfaction. The skill to improve customer
engagement is an inseparable marketing strategy for acquiring the market.
Keywords:
Customer Engagement, Under Armour, Blogger, Swot
1. INTRODUCTION
1.1 Background
Under Armour’s surveys in the US and China markets
(before COVID19 and COVID19) used new methods and
sales strategies to change the problems of the brand, such
as changes in online sales models and offline store
business methods, respectively, for the United States and
China Conduct investigations and discussions. Under
Armour, as an essential sports brand in the United States,
has been facing the problem of sales far below
expectations in recent years. In response to these
problems, Under Armour also did some market research.
They found a big gap between the needs of consumers
and their expectations. Their products are more tailored
to the needs of athletes than consumers expect. However,
their problem in communicating with users is the root
cause, and they tend to understand user feedback from
sales data. However, this does not allow them to truly
understand consumer demand for the product and hope
for product improvement. Under Armour needs to
improve and continue to advance in communication with
consumers. The article will analyse the existing market
problems of Under Armour and put forward methods to
promote each problem.
Under Armour, they have been providing a variety of
clothing to consumers with clothes tailored to different
needs in different environments. Due to the coronavirus
pandemic, Under Armour has closed some offline stores.
It is a big challenge for consumers to buy suitable
products online. The delivery time of goods has also been
affected by the epidemic. Under Armour has been trying
to tap new target user groups as new development goals.
Under different opportunities, the brand has extended
many new marketing branches. However, a single
marketing method has produced a huge obstacle to Under
Armour in achieving its goals.
1.2 Research Gap
Although the brand has a high sales volume, Under
Armour still faces many problems, especially consumer
positioning. The brand has always targeted North
American consumers as its targets; however, sales have
not only not been the same as before but have also
declined slightly [1]. Compared with other competitors,
the brand's main products have a sweat-wicking
performance. It lacks an appeal for shoppers other than
athletes. Brands understand that consumers have a high
degree of acceptance of new products such as HOVR and
Project Rock by analysing the reviews of Google Trends
[1]. However, it is not a good understanding of the
demand for the overall consumer. Under Armour did not
make good use of the brand communication strategy. It is
a technique that can help brands understand their
Advances in Economics, Business and Management Research, volume 652
Proceedings of the 2022 7th International Conference on Social Sciences and
Economic Development (ICSSED 2022)
Copyright © 2022 The Authors. Published by Atlantis Press International B.V.
This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/
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audience and get the correct information. Better
communication can leave the audience with a stronger
and more memorable brand experience. It could lead to
many sales. For Under Armour, the company needs more
objective and reasonable communication methods and
continuous in-depth communication to ensure that brands
understand the essential needs of their consumers.
1.3 Structure of the Paper
The article will analyse the research on some
adjustment methods that Under Armour has made to face
the marketing situation. By studying the development of
customer engagement in the overall marketing, people
understand the advantages and vulnerabilities of the
brand in the market. By summarizing the problems and
necessary factors exposed in these vulnerabilities, Under
Armour analyses the main factors that constitute these
factors. In order to ensure the reliability of the research,
the research will combine market feedback data and user
research models to analyse and summarize the direction
and marketing strategy that Under Armour needs to
adjust. Combining the conclusions that are most in line
with the Under Armour situation helps brands build new
marketing possibilities and provide new marketing ideas.
2. LITERATURE REVIEW
2.1 Definition
In recent years, Brand has been facing a problem. The
competition between various brands in the market has
become extremely fierce. The brand will focus on the
brand communication strategy to acquire consumers to
achieve their sales goals. Brand communication strategy
is the process by which a brand realizes brand
communication in various ways. No matter what kind of
company it is, excellent communication methods are
essential for any organization and are also the key to
successful business operations. When customers like the
way the brand communicates with them, they are more
likely to buy its products or services. Brand
communication strategy is also a necessary channel for
companies to understand and acquire user groups.
2.2 The Relationship Between Brand
Communication Strategy and Customer
Engagement
After disassembling the brand communication
strategy into different aspects, consumer engagement is
one of the essential factors. In previous studies, the
definition of consumer engagement is also slightly
different. The concept of this term can be traced back to
Vivek's attempt to explain the strength of the connection
between products and activities initiated by consumers or
organizations [2]. After that, Hollbeek is more inclined to
associate consumer engagement with certain specific
consumer motivations in brand activities [3]. The word
extends from the surface connection between things to
the psychological state.
2.3 Development
A lot of research has been speculating about how the
relationship between consumer engagement and brand
influences each other. Vivek has researched this research
direction. Research has realized that by defining the term
consumer engagement to understand this concept is in
many cases incomplete and very different. Most
definitions fail to realize that it is not clear that many
potential customers participate in online conversations or
the exchange of opinions and ideas [4]. Existing research
has shown that brands can benefit from consumer
engagement. The recent research discusses the values
that consumers may derive from their relationship with
the company. By expanding the scope of consumer
engagement, customer engagement, and various activity
modes, consumers can obtain more internal and external
value [4]. Because consumers are more likely to
concentrate on the product or participate in the event. The
past research methods are conducted in online
environments, so there are few systematic and empirical
exploration structures. Most
work on customer
involvement is descriptive. Research on different cases
found that customer engagement can help promote
collaborative innovation [4]. And the interaction of
consumer engagement and employee engagement can
lead to better sales performance [4]. Brands need more
knowledge
exchange
with
customers
to
attract
customers. New technology can provide a better platform
and opportunity for brands to interact and exchange
knowledge with customers.
Brodie et al. conducted a deeper study based on
previous theories [5]. Research emphasizes that
consumer engagement is an interactive experience based
on consumer engagement in a particular brand or
organization. Over time, it may appear at different levels
of intensity and reflect different states of engagement.
Consumer engagement is a multi-dimensional concept
including behaviour, cognition, and other dimensions [5].
The emergence of consumer engagement stems from
consumer demand for information. They will learn,
share, socialize, and other behaviours from the process.
For consumers, personal experience sharing also has the
effect of influencing others to advocate brands [5]. The
idea of what the brand brings is the impact on the
exchange value and use-value of the product or idea.
Research shows the importance and consequences of
understanding how consumers participate in specific
brand communities. Consumer engagement can increase
loyalty,
satisfaction,
empowerment,
connection,
emotional bonds, trust, and commitment [5]. Consumer
engagement and brand creation influence each other and
are based on the influence of online communities. Brands
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need to listen and feedback to consumers in their
communities and participate in consumer brand
communication because consumers’ understanding of
this model is non-commercial. There are some limitations
to the research. The direction of future research can be
more
multi-dimensional
and
based
on
enough
experimental base.
With the development of technology, consumers have
become more rapid and mature in obtaining information
and are no longer easily controlled and manipulated by
organizations [6]. They have a brand-new perception of
their power, so now consumers are no longer just passive
message receivers. They prefer to communicate and
understand the brand through engagement. Consumers
can see more information, so they are more willing to
accept and trust people who have similar opinions and
ideas to themselves than packaged brand information [6].
So how the brand chooses and utilizes these points is
crucial to the development of the brand. The research
uses a brand-new experimental model to study consumer
engagement in a more detailed interpretation of
consumer psychology [6]. The research analysed the
method by using intermediate bloggers as a channel for
the brand to communicate with consumers. Research
shows that information flows through one or more
individuals who are considered influential opinion
leaders. Geographical environment and face-to-face
communication are the main factors for consumer
interaction [6]. In the digital environment, geographic
space is no longer an influencing factor. Bloggers are
essential opinion leaders, so their authority and
confidence are important reference points for consumers
[6]. The facial conversational style of blogs makes them
suitable platforms for informal influence preferred by
opinion leaders [6]. The blogger’s settings meet most of
the consumers' needs for consumer engagement. They
can send comments to bloggers and get some feedback.
Blog readers can also share or like to pass information to
friends. The research further clarified the composition
mode of the influencing factors of consumer engagement.
Research on consumer engagement uses many
different brand communication strategies. These two
concepts interact and coexist. Consumer engagement has
a profound impact on the brand's position and consumers'
minds. With the development of technology, consumers
have a variety of ways to participate in all aspects of the
brand, from products to activities. Because consumers
have a faster and more convenient environment for
obtaining information. Brands need to grasp the new
direction of consumers in the new era. The research
found that for consumers to obtain "real, non-
commercial" feedback is the basis for them to participate
in and believe in a brand. Brands need to truly interact
more with consumers to understand feedback and have a
better development direction. It is also proven. Whether
a brand can have a better sales effect is linked to the
feedback from consumers.
2.4 Summary
Based on previous research results, consumer
engagement has a positive impact on brand development.
Because of the new era background, consumers have new
characteristics. Future research will focus on the
characteristics
of
consumer
engagement.
Some
experimental limitations and defects were also mentioned
in the previous research. Most of the research is based on
the online interactive environment. The research
environment is single and limited. Some research
institutes can conduct experiments, and data recovery
bases are limited. Lead to the incompleteness of the
results of the research. Future research will be aimed at
improving the above-mentioned shortcomings. In
addition to the research on the specific brand, a large
amount of data will be collected on the feedback of
consumer engagement to ensure the validity and
reliability of the resulting output. For the research model,
this research adopts a model test combining online and
offline systems to determine other factors for consumer
engagement.
3. METHODOLOGY
3.1 Research Design
In exploratory research, research issues related to
consumer participation are studied through quantitative
investigations. One of the main characteristics of the
quantitative method is to emphasize the accumulation of
a large amount of data, so it is very suitable to understand
the frequency and way consumers participate in the
interaction with the brand. Through the recovery of a
large amount of questionnaire data, in-depth research is
carried out to increase the understanding of consumer
participation from the perspectives of the researcher,
which is to obtain more extensive and in-depth
knowledge. Because most of the research is less about
offline.
For
collecting
the
research
feedback
comprehensively, the research design will be compared
with the research directions both online and offline.
Under Armour lacks a survey of consumer participation
in its brand in the overall data collection. As an essential
part of the brand communication strategy, this research
method can accurately and concretely describe the
behaviour of many subjects to produce quantitatively
meaningful results.
3.2 Data Collection
In terms of recovering data, age and frequency will be
taken
into
consideration.
Compared
with
other
questionnaires, most of the questions in this study will be
designed for consumer engagement in online and offline
channels. Subjects can fill in the questionnaire through
two modes: single-item selection and fill-in-the-blank.
The form of the questionnaire will be in the form of an
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online questionnaire. Most groups of research objects are
based on fixed group objects. However, this will have
limitations on the overall experimental subjects. Online
questionnaire surveys can ensure the privacy of
participants’ information. Participants will not be
disturbed by the external environment when answering
questions. The survey scope of the online questionnaire
is wider and more technical. Participants are required to
answer the following questions: When buying Under
Armour products on the web, will people refer to product
reviews for purchase? Will people be willing to
participate in Under Armour's online/offline activities?
Will people buy Under Armour products by asking a
clerk or online service staff? Is the feedback of Under
Armour sales staff important to people? What is an
important reference when people make a decision when
buying products? Why did people choose to buy Under
Armour products? What is the age of the consumer?
People can study the defective part before. The research
results can also give specific feedback on the specific
parts of the brand communication strategy that can
indeed help the brand and consumers better interact. Due
to the open-ended fill-in-the-blank questions in the
experiment, samples of the results of this part of the
experiment will be extracted and analysed based on high-
frequency vocabulary. The data will use SPSS for data
analysis. According to the fact, there are fewer product
reviews viewed on the Under Armour official website.
To stimulate testers to participate, coupons will be given
to consumers who participate in the questionnaire survey.
As a tester, people need to ensure that people have indeed
purchased Under Armour products in any way. The
experiment will be studied within a short time limit.
While conducting the questionnaire survey, group chat
and forums will be opened for the same topic.
Participants can also discuss the issues or experiences of
the brand.
3.3 Data Analysis
The overall data is divided into three parts for analysis
after recovery. The icon below shows the data recovery
status of every single issue. The questions involved in the
four questions are all about consumers' feedback on
online and offline participation. As the data all include
the target group when recovering the results, all feedback
results will be considered (Table 1).
Table 1.
The Results of Under Amour customer feedback survey
When buying Under
Armour products on
the web, will people
refer
to
product
reviews
for
purchase?
Options
Frequency
Percentage (%)
Cumulative
percentage (%)
In most cases
100
29.412
29.412
Basically not
90
26.471
55.882
In few cases
90
26.471
82.353
Always
60
17.647
100
Total
340
100
100
Will
people
be
willing to participate
in Under Amour’s
online/offline
activities?
Options
Frequency
Percentage (%)
Cumulative
percentage (%)
Basically not
220
64.706
64.706
In most cases
60
17.647
82.353
In few cases
50
14.706
97.059
Always
10
2.941
100
Total
340
100
100
Will
people
buy
Under
Armour
products by asking
a clerk or online
service staff?
Options
Frequency
Percentage (%)
Cumulative
percentage (%)
In most cases
120
35.294
35.294
Basically not
110
32.353
67.647
In few cases
90
26.471
94.118
Always
20
5.882
100
Total
340
100
100
Is the feedback of
Under Armour sales
Options
Frequency
Percentage (%)
Cumulative
percentage (%)
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staff important to
people?
In most cases
140
41.176
41.176
In few cases
130
38.235
79.412
Basically not
60
17.647
97.059
Always
10
2.941
100
Total
340
100
100
Options
Frequency
Percentage (%)
Cumulative
percentage (%)
What
is
an
important reference
when people make
a
decision
when
buying products?
Product
information/advertisement
130
38.235
38.235
Blogger recommendation
90
26.471
64.706
Comments from others
70
20.588
85.294
Social media posts
50
14.706
100
Total
340
100
100
According to the feedback from the above
questionnaire, most consumers tend to be highly engaged
in customer engagement. However, the degree of interest
of the participants in the offline and online activities
organized by the brand is much lower than the brand's
expectations. There is a gap between the actual feedback
and the forecast of the overall data. Because the data
collected is limited to the disagreement on whether to
refer to other people’s reviews of the brand. Most of the
participants do not regard other people's product reviews
as an important purchase factor. However, according to
the feedback of the first question, other people's
comments will influence and promote consumers to
achieve consumption.
In the data collection for age, most of the test subjects
are concentrated in the age group of 18-25 years old. The
overall information feedback only reflects the overall
views of consumers in this interval. The test question is a
multi-platform open questionnaire, so there is already a
potential to tap into the group that did not participate in
the test. However, there are also cases where the group
does not meet the brand mining goals.
Combined with the open platform feedback on the
questions contained in the questionnaire, several high-
frequency words appearing in the blanks are comfort,
professionalism, brand awareness, co-branding, fitness,
etc. Most of the participants who participated in the
reviews were long-term consumers of the brand. They
focus on the design of the brand for fitness needs. Some
students encountered the brand because the brand
cooperated with several universities, which touched
some potential users. A few participants specifically
mentioned the sneakers of the brand's propaganda Curry.
The advertising made by the brand is also part of the
factor that affects consumers.
Through the application of the SPSS data analysis
method, the collected questionnaire data was sorted by
frequency. The experimental data can more clearly see
the changes in consumers' participation in different forms
of engagement based on a ranking of cumulative
percentages from low to high. The wording of the four
frequency-related
options
that
appeared
in
the
questionnaire showed consumers' bipolar tendency
toward the overall situation. "In few cases" and "In most
cases" are two frequency terms that appear in pairs. The
answer data to several questions showed that the number
of choices was not ranked second. This phenomenon
presents a problem. Consumer groups' choices for this
customer engagement are very polarized. Therefore, it
proved that the brand could reach a limited number of
users in the specific form of customer engagement. There
are also individual problems where the pairable words are
ranked high. Therefore, it proved that most consumers
are partly interested in this type of engagement. Brands
still have a higher probability of reaching these users
whose interest is not high. What the brand needs to do is
to export different strategies to make diversified
adjustments in the form of this engagement. In response
to the last question of the questionnaire, the cumulative
percentage also provides a percentage ranking. Brands
can make more adjustments to future customer
engagements based on the distribution of their
proportions. The data results provide the brand with more
realistic data and how to distribute the later research
energy.
3.4 SWOT Analysis
3.4.1.Strength
Because Under Armour is a brand with the concept of
creating professional sports products, it has a great
advantage over other brands in terms of overall product
professionalism. The brand has strengthened its position
by leveraging on a broad product portfolio. Brands do not
Advances in Economics, Business and Management Research, volume 652
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rely on a specific product when selling products. Its
products involve footwear, apparel, sports equipment, etc
[7]. A wide range of product categories and business lines
ensure the company's high sales rate and continuous
growth in sales. In marketing, the brand's operating
strategy through multiple network distribution enables
the brand to grow rapidly. The brand has sales licenses in
some countries [7]. At the same time, the brand is also
exploring more countries where it can conduct sales
operations so that it can expand globally. In the summer
of 2020, North America launched a new e-commerce
website [7]. Brands will accelerate the digitization of
their sales channels by improving their own online sales
model. Under Armour also uses digital applications to
help them find potential sales opportunities. It has
developed MapMyFitness, MyFitnessPal, and other apps
[7]. These apps will be more professional to help users
record their exercise data tracking. This can increase their
brand awareness in terms of professionalism and increase
consumers' impression of their brand.
3.4.2. Weaknesses
Under Armour also has many disadvantages.
Compared with other brands, Under Armour is still an
emerging force. Therefore, sales in the international
market are limited. Because the brand has always
regarded the United States as its main sales market, it has
not yet produced a sales market as large as North
America in the international market. The expansion of the
single
market
has
made
brands
vulnerable
to
uncertainties [7]. This is also the reason for the extreme
decline in brand net income in 2020 [7]. In addition to the
development of its own market, Under Armour is also
investing in other objective opportunities. These high
investment expenditures need to bear certain risks. These
investments require a lot of expenses to follow up.
Although positive investment may generate more
revenue, it also limits the brand's own ability to make new
acquisitions. The use of Under Armour's e-commerce is
very slow [7]. Most core consumers have become
accustomed to buying in-store. This will make it difficult
for brands to switch to e-sales. In the brand's sales
strategy, Under Armour also has many loopholes. The
brand focuses on offline sales as its long-term sales
model and growth opportunities. So, it missed the
opportunity to sell online. The brand invested in new
storefronts but then stopped. This shows that in addition
to the low effectiveness of the brand's strategy.
3.4.3. Opportunities
Brands still have many opportunities to pursue new
development opportunities. Under Armour's innovative
ideas make its products technologically advanced. It also
enables brands to continue to provide better products.
The expansion of the brand product line can attract more
consumers. In the long run, this is very beneficial to the
company's development. Brands are also seeking
cooperation with many brand stores. In 2017, Under
Armour began to cooperate with Kohl’s [7]. At the same
time, Under Armour is also expanding sales opportunities
in more established department stores. However, many
retailers do not sell their branded products. Brands should
consider cooperating with more brands to reach
partnerships. It is more helpful for brands to enter more
markets in the future to achieve greater sales. The
international market still leaves a lot of room for Under
Armour to acquire new customers. The Asia Pacific and
Latin America have brought brand new growth
opportunities [7]. In the past two years, sales in these two
regions have continued to grow. Women's clothing is still
the direction in which the brand can continue to develop.
The sales of UA women's sportswear in North America
in 2020 increased by 77% compared to 2019 [7]. The
overall online sales of women's clothing have a large
span of growth. Growths are gradually showing the
potential of women's clothing for brand development.
3.4.4. Threatens
For Under Armour, the threat in the market is not
small. Nike and Adidas have higher brand awareness and
operating experience overseas [8]. It will allow the brand
to capture a large customer base. It is a big threat to
brands exploring new markets. Some products have also
been reported some negative news. Any kind of damage
caused by these products will damage the reputation of
the brand. In the past one or two years, the brand has been
reported various negative news involving various fields
[9]. These events have weakened the brand's revenue. If
the uncertain event persists, the loss to Under Armour
will be even greater and lasting.
3.4.5. SWOT Results
According to the survey on the Under Armour brand,
when people buy something from this brand, they will
basically listen to other people’s opinions, as well as
some advertising and sales recommendations, because
when people first buy this brand, people will understand
what they need from all aspects. Then company need to
improve the brand's customer satisfaction because the
results of the research make people believe some reviews
and other people's dictations, so once the brand does this
well, there will be a lot of improvement.
4. DISCUSSION
New methods and sales strategies should be used to
change the problems of the brand. It is completely
feasible because, in this research, they have targeted
different groups of people and different problems. People
can see that the current brand problems and the strategy
company want to achieve, because the current crowd may
not look at how famous the brand is but learn about the
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product from the scope of the internet that people can
know, and the population who has used the product next
to it. Therefore, improving the sales model and customer
satisfaction is more important. Customer satisfaction is
the key to the discussion. It is very important for the
customer's return rate and the source of new customers.
This article is universal. Regardless of the brand,
customers are an important source of the brand's success.
It is important to improve comments and promote online
promotion [10].
5. CONCLUSION
Under Armour is now lower than expected due to the
epidemic, and has done some research on these Under
Armour, the purpose is to change the current situation,
they cannot really understand the needs of customers,
there is no way to carry out existing and future products
In line with the improvement of customers, because the
current market is fierce, Under Armour needs to study
and use more different communication methods. For their
assumptions, the changes in online sales models and the
business methods of offline stores are more similar.
Because according to the survey of the Under Armour
brand, when people buy something from this brand, they
basically listen to other people’s opinions, as well as
some advertising and sales suggestions. If the customer
buys this brand for the first time, customers need to know
the brand is good, they need to improve the brand’s
customer satisfaction because the results of the research
make people believe in some comments and other
people’s dictations, so once the brand is done well, it will
be greatly improved. However, due to the coronavirus
pandemic, Under Armour closed some offline stores. It is
a big challenge for consumers to buy the right products
online. The delivery time of the goods has also been
affected by the epidemic. Under Armour has been trying
to tap new target user groups as new development goals.
Under different opportunities, the brand has expanded
many new marketing branches. However, a single
marketing method has brought huge obstacles to Under
Armour to achieve its goals. Especially consumer
positioning. The brand has always targeted North
American consumers, but sales have not only not been
the same as before but have also declined slightly.
Therefore next, Under Armour should change sales
because of the problem of using new methods and sales
strategies to change the brand. This is completely
feasible, and the research shows that target different
groups of people and different problems. Under Armour
can see current brand issues and research strategies it
wants to achieve.
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