Monthly Archives: September 2013

Chief Executive Kevin Plank certainly thinks so: “We believe we’re a … $10 billion brand that is doing $2 billion in business today,” he said. And he could be right. The company has had quite the year in 2013; their stock price has risen up by 35%, and they have seen at least 20% revenue growth from last year.

At it’s current pace experts predict that Under Armour would surpass the $10 billion mark in 2020. The company plans to reach it’s goal by selling to a larger consumer group and by expanding globally.

I believe that Under Armour could use the SWOT Analysis to determine how they can reach their goal even faster. This tool we learned and used in class can be used for even the biggest of corporations. Nike has a long-term growth rate of 11% whereas Under Armour has 21% long-term growth rate. So for young investors who are willing to take some risk should definitely invest in UA, but if you want to play it safe then Nike is the stock for you.

Read more about Under Armour’s success here: 

http://www.forbes.com/sites/monteburke/2013/09/17/under-armour-billionaire-kevin-plank-has-had-a-very-good-year/

http://www.businessweek.com/articles/2013-09-11/under-armour-ceo-aims-at-nike-adidas-and-10-billion

http://www.cnbc.com/id/100925505

Image from:

http://2.bp.blogspot.com/-lkoek6YewA8/UDGZsa0u_KI/AAAAAAAAGaY/qBch0LdFPYM/s640/rumor-nike-to-buy-under-armour-1.jpg

In an average day we are exposed to approximately 3,500 marketing messages, and 99% of them make no impact on us. So how can marketers create ads that stand out? Well some big name marketing companies decided to test the shock technique. Show the public something provocative, edgy, unpredictable, something that sparks a reaction.

But sometimes an advertisement that is “cool” or “hip” can also be seen as offensive to some. For example the commercial (below) directed by Tyler the Creator for Mountain Dew sparked quite a controversy. The ad was criticized for portraying racial stereotypes and downplaying violence against women. PepsiCo the owner of Mountain Dew did eventually pull the commercial upon realizing how some people could find it offensive. Later PepsiCo and Tyler’s manager also issued apologies, stating that the ad was not meant to offend, but it “was only an absurd story not meant to be taken seriously.”

https://www.youtube.com/watch?v=28XrdxRyhf0

Even though it’s tough to market products these days, companies need to be more aware of the audience that they are presenting to. And if mistakes are made they need to take full ownership of the issue like PepsiCo and offer a sincere apology and make good promises to ensure that it does not happen again in the future. By taking these steps it not only helps them keep up their good reputation but it will also not negatively impact the sales of their product.

Sources:

http://www.billboard.com/biz/articles/news/branding/1560125/updated-pepsi-pulls-mountain-dew-ad-helmed-by-tyler-the-creator

http://finance.yahoo.com/blogs/the-exchange/companies-issue-mea-culpas-offensive-racist-ads-143152385.html

http://www.cbsnews.com/video/watch/?id=50146033n

http://www.theguardian.com/media/2005/nov/19/advertising.marketingandpr

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