AN ANALYSIS OF THE SPORT BRAND IN THE 21 b l CENTURY

Patrick M. Kraft

Submitted to the faculty of the University Graduate School

In partial fulfillment of the requirements for the degree
Doctor of Philosophy
In the Department of Sport Management of,
Indiana University
June 2008
 UMI Number: 3332469

Copyright 2008 by
Kraft, Patrick M.

All rights reserved.

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Accepted by the Graduate Faculty, Indiana University, in partial fulfillment of the

requirements for the degree of Doctor of Philosophy.

Doctoral Committee

i^uLuLtiu
(Kimberly S. Mildth, Ph.D., Chair)

fr
(Larry Fielding, Ph.D.)

5
amela Laucella, Ph.D.)

Date of Oral Examination: June 27, 2008

u
 ©2008
Patrick Michael Kraft
ALL RIGHTS RESERVED

in
 To my family

Without your love, support and prayers none of this would have been possible.

IV
 Acknowledgements
I would like to thank Dr. Laucella, and Dr. Paul for your support and assistance through

this process. Dr. Laucella thank you for your willingness to always extend a helping hand. Dr.

Paul, thank you for all your help and suggestions and for making my decision to focus on

telecommunications worthwhile. I am so glad that I had the opportunity to share this experience

with both of you.

To Doc Fielding, I want to thank you for being the cornerstone of our department and my

academic life. I feel honored and privileged to have had the opportunity to work with you for the

past few years. I would not be here without the wonderful opportunities you provided me.

Thank you!

To my classmates, Andrea (Karl), Coyote, Galen, Liz, David, Ty, Tassos, Geoff, Erin,

Antonio, Sydney. I want to let all of you know it has been a fun and eventful journey together. I

am so glad I had each of you to go through this process. It wouldn't have been the same without

you guys. Thank you all for your support.

To my friends, too many to mention here, from Austin TX, Houston TX, Springfield IL,

Morgantown WV., Naperville III, Bloomington IN, Chicago IL, and New Jersey. You have all

been a wonderful outlet for me. Each of you are very special people in my life and this journey

would have been much more difficult without you.

To Maggie and Matt, thank you for allowing me into your home and treating me like

family. I will miss my visits to the house. Maggie thank you for being my toughest critic on brand

development. Boom Boom Tap!

To Dr. Miloch, thank you for being my backbone through this whole process. You have

been an inspiration and too wonderful to put into words. I have enjoyed every minute of our time

working together. It has been a joy and an experience for which I will never forget. I hope

someday I can repay you for the support you have shown me throughout this process.
 To Maddie, Patrick, Trey. You three have been my inspiration. I hope when each of you

get old enough to read this, you will know how important you were in this process. You provided

me with the motivation to keep going. My only goal is to make you proud of your uncle. You all

are such a special part of my life.

To Joe, Erin, MT, Greg, Danny, Tracy, I want to thank each of you for your love and

support both emotionally and financially, at times. I love each of you very much. You have been

so important to me through this whole experience. You each mean the world to me and you are

as much a part of this as anyone.

To mom and dad, you are the most important people in my life. You are my foundation.

I KNOW, I would not have been able to reach this point in my life without the love and support

you two provide me and the whole family on a daily basis. It has been so much easier to work

the past 3 years knowing that I have the two of you there no matter what. I love you both very

much and I want you to know that the following work is a result of your faith and love in me.

Thank you for everything!

VI
 Abstract

Patrick M. Kraft

AN ANALYSIS OF THE SPORT BRAND IN THE 21 ST CENTURY

Sport has become an integral element in our society and culture. It has

developed into a billion dollar business ranging from commercial and amateur sport to

consumer goods. Companies, from the young upstarts to those that are decades old,

utilize several different marketing and advertising techniques to develop and separate

their brands in the ever growing competitive marketplace.

When making informed decisions on brand development, an organization should

have a solid understanding of the internal and external environments for which it exists.

This study examined the role of sport brand management in marketing the sport

product. Specifically, this research focused on the brand management strategies of

Under Armour. Using Aaker's (2005) strategic market management theory as a

framework, this study analyzed the different marketing methods utilized to develop,

maintain and sustain a successful brand. In addition, a case analysis of Under Armour

was conducted using the branding literature as well as interviews from Under Armour

executives and outside branding specialists.

Results of the research indicated that Under Armour's integration of these five brand

development strategies in the current marketplace have helped it to become one of the

premiere brands in the United States.

1. Understanding the audience/consumer the brand is meant to reach is critical to

the modern day brand development process.

vii
2. Understanding the brand message is an important factor in the success of the

brand.

3. Seizing any opportunity to own the marketplace in which the brand competes can

have a positive impact on the strength of the brand.

4. Using the appropriate vehicle to deliver the brand message contributes to the

impact the brand has on the consumer.

5. Differentiating from other brands in the market helps separate the brand in the

marketplace from its competitors.

Vlll
 Table of Contents

Abstract VI
List of Tables, Appendices & Data Displays xi
Introduction 1
Purpose 6
Research Questions 6-7
Literature Review
Brand Equity 8
Brand Awareness 16
Brand Loyalty 19
Brand Perception 22
Brand Association 23
David Aaker's Strategic Market Management Theory 26
External Analysis 26
Consumer Analysis 28
Market Segmentation 31
Motivation 33
Competitor Analysis 35
Market Analysis 37
Market Growth 38
Profitability 38
Cost Structure 39
Distribution Systems 39
Market Trends 40
Key Success Factors 40
Environmental Analysis 40
Internal Analysis 43
Performance Analysis 45
Determinants of Strategy Options 46
Summary 48
Method
Qualitative Analysis 49
Data Collection 51
Strategic Market Management Theory 51
External Analysis 51
Internal Analysis 52
Personal Interviews 53
Sample Size 56
Interviewees 57
Under Armour Executives 58
Outside Branding Experts 58
Under Armour Interview Questions 59
Outside Branding Expert Interview Questions 60
Triangulation 62
Results
Data Analysis and Coding Selection 64
Emerging Frames and Themes 68
Emerging Frames and Themes from Outside Experts 70
Knowing your consumer 70
Understand your brand 72
Understand your brand message 74
Using the appropriate vehicle 75
Differentiating the brand from competitors 81
Emerging Frames & Themes from Under Armour Executives 83

IX
 Differentiation of the brand 83
When you promote or market your brand do it in a significant way 85
When you see an opening in the market own it 86
Positioning the brand is important to overall brand development 87
Aaker's Strategic Market Management Analysis 89
External Analysis 90
Consumer Analysis Points of Examination 90
Consumer benefits 90
Primary Target Segments 92
Largest Consumer Base 93
Consumer Value of the Brand 94
Competitive advantage or Disadvantage 96
Market Changes & Promotional Methods 99
Athlete Endorsement via Product Seeding 100
Word of Mouth 101
Product Placement 101
Unmet Needs of Competitors 105
Competitor Analysis Points of Examination 107
Competitor Analysis 107
Direct Competitors Competencies & Assetsl 11
Direct Competitor Strength & Weakness 111
Indirect Competitors 112
Competitive Entrants & Entry Barriers 112
Market Analysis Points of Examination 113
Financial Statements 114
Key Success Factors 115
Competitor Threats 116
Internal Analysis 116
Performance Analysis 117
Cost Associated with Brand Development 117
Strategic Decisions in Brand Development 118
Culture of the Brand 120
Determinants of Strategic Options 121
Brand Enhancements 121
Increase the Perception of the Brand 122
Strategic Vision 123
Alternate Brand Growth Opportunities 125
Research Questions 127
Summary 132
Discussion of Key Findings 134
Suggestions for Future Research 155
Manuscript 157

References 189

Appendix 221

Vita

X
 List of Tables, Appendices, and Data Displays

Table 1 Total Revenue in Millions from Fiscal Years 2003 - 2007 94

Table 2 Under Armour Apparel Revenue Growth 95

Table 3 Under Armour Product Placement Rank Q1 2008 on Cable TV 103

Table 4 Examples of Under Armour Product Placement 104

Table 5 Domestic Performance Apparel Market Share: Sports Retail 108

Table 6 Domestic Compression Apparel Market Share: Sports Retail 108

Table 7 Porters Competitive Forces Model 110

Table 8 Key Success Factors of Under Armour 115

Table 9 Five Synergistic Brand Development Methods 152

Appendix 221

Data Display 1 Frames based on Aaker's (2005) Brand Equity Theory 222

Data Display 2 Outside Branding Expert Responses per Interview Question 226

Data Display 3 Under Armour Executive Responses per Interview Question 238

Data Display 4 Outside Branding Experts Frames per Research Question 249

Data Display 5 Under Armour Executive's Frames per Research Question 255

XI
xii
 Introduction

As the new millennium approached, the world anticipated the growth of

new technology. This growth altered the way in which society communicated.

The effect wasn't just interpersonal communication. It went much deeper. The

advancements in communication impacted daily life, whether it was a professor

using a laptop to read ancient scribes, a mother searching the web for a cure to

the common cold, or a sport fan searching for the latest happenings of her

favorite team.

Technological advancements have played a significant role in the

advancement of the sport market. Through the increase in technology, the

awareness and popularity of sport has grown. The reach of the sport industry

continues to expand to all ages and genders. Sport has become an integral

element in our society and culture. It has developed into a billion dollar business

ranging from commercial and amateur sport to video games and consumer

goods. Many companies, from the young upstarts to those that are decades old,

utilize several different marketing and advertising techniques to develop and

separate their brands in the ever growing competitive marketplace. However, as

the sport business has thrived, more money has been focused on sport initiatives

which have intensified competition. Organizations are forced to examine their

external and internal characteristics, in order to fully develop their brand image

and to stand out when compared to their market competitors.

1
 The traditional marketing and advertising spending patterns that have

supported corporate brands no longer have the same impact in the present

market environment. Many of these time-honored initiatives now generate little

return on investment and cultivate few brand development opportunities. As the

marketplace has become more crowded, corporations have been forced to

develop creative and "out of the box" methods to allow the brand to thrive in a

cluttered marketplace. The element of creativity in marketing, promotions,

sponsorship, and advertising has become essential in today's sport marketplace.

Many sport brands build brand equity and have been strategically

positioned through non-traditional means. No sport company exemplifies this

better than Under Armour. Branding has become a key element in positioning

products in the crowded sport marketplace, and its role in effectively and

appropriately marketing the sport product warrants examination. Under Armour's

use of nontraditional advertising methods positioned the brand in the mind of the

consumer and has helped the company dominate competitors including Nike and

Adidas.

The sport Industry is led by two power brands, Nike, 16 Billion dollars in

revenue, and Adidas 14 billion dollars in revenue. Above and beyond the

enormous amount of revenue gained, these brands have engrained themselves

as the premier brands in the sport apparel industry throughout the world.

The sport apparel industry is one that can be very unpredictable. Trends

and fads can come and go, and larger more powerful brands can impact the

2
market in such a way that limits the exposure and the success of the lesser

known brands. In the case of Under Armour, its initial focus was on the niche

product market of performance gear and compression apparel. These were two

markets for which the market leaders had entered, but had not fully met the

needs of the consumer. Innovation and confidence in the product help Under

Armour rise above the crowd.

Kevin Plank believed in his product, as all entrepreneurs do. Plank felt his

product provides an unmet need of the consumer when it comes to performance

apparel. In understanding the desires and unmet needs of the consumer, it has

allowed Under Armour to maintain a high price point level and even price

increases (Harris, 2005). Plank's confidence in his product rested with the

technology and quality Under Armour was providing. Under Armour's focus from

the beginning was to defeat cotton performance gear and was not concerned for

the brands that were on the products (Salter, 2005). Experts in the apparel field

explain that in the current market, success is driven by functionality and less

about style (Baker, 2005). Under Armour understands that style is important,

but for the true athlete who is looking for gear to help with performance, they will

be more interested in how well the garment works and not how good it looks

(Baker, 2005). Under Armour's product development team has focused its

efforts on developing new fabric applications and design through brainstorming

sessions with athletes that use the product and the scientists that create it

(Salter, 2005).
 The success that Under Armour has experienced in the stock market

since going public, or the strength in market share that it owns, are not the only

signs of the companies impact on the sport apparel market.

"Probably every football player in the country, from the peewees to the

pros, has heard and perhaps even yelled, the Under Armour slogan, "Protect this

house!"(McKenna, 2006, cheap seats). According to Steve Battista, Vice

President of brand development, "We have tapes of everybody from David

Letterman to Oprah saying, 'Protect this house!" (McKenna, 2006, cheap seats).

In the apparel industry, image plays a vital role. Under Armour's rise to

elite status in the marketplace has as much to do with its brand strategies like the

"Protect this House" or "Click Clack" campaigns as it does with its scientific

product enhancements (McKenna, 2006). An important element to Under

Armour's brand success is how the product delivers when it reaches the

consumer. It performs as the consumer perceives it in advertisements (Harris,

2005).

Under Armour has continued its brand growth through strong relationships

with sport associations, sport franchises, universities, and the athletes that

compete. The company's brand marketing strategy includes individual athlete

agreements, collegiate sponsorships, and direct sales to individual athletes and

equipment managers of sports team (Salter, 2005).

For this research, a case analysis will be conducted using Aaker's (2005)

strategic market management theory. This theory will serve as the foundation of

this research, and will be used to examine Under Armour's brand development.

4
The Under Armour brand is a relative newcomer to the sport apparel market, with

its modest beginnings as a t-shirt company only 12 years ago. It now has

become a multimillion dollar giant in the industry. Under Armour has been

selected for this research for several reasons. First, Under Armour was a

company facing intense competition when it first entered the market. Second,

Under Armour utilized a unique marketing method to impact the marketplace,

and third, it is unique in that it was able to take a small brand in a niche category

and develop it into a market power.

The strength and brand power of the competition was a difficult obstacle to

overcome. Under Armour's competition is stiff in going toe to toe with industry

power Nike. Nike began distribution in 1971 and is the leader in the overall sport

apparel market. These two brands had significant revenue, history, and the

consumer base to dominate any type of upstart company that enters the

marketplace.

Under Armour used non-traditional methods to develop its brand image

quickly. Under Armour did not have the financial resources to compete in

distribution, marketing, promotions, advertising, and high profile paid celebrity

endorsements etc., so the company used creativity in devising a marketing plan

that worked on a limited budget. Under Armour's methods included product

seeding and unpaid athlete endorsement, product placement, word of mouth

marketing, popular culture and free media exposure to develop the brand.

Another reason for selecting Under Armour was its ability to take a market

category that had experienced minor success by other power brands and

5
completely dominate it. Under Armour has become synonymous with the

performance apparel market category, which it was integral in developing (Salter,

2005). Under Armour created a high level of brand equity through developing

brand awareness, brand loyalty, brand perception and brand association (Aaker,

2005). The ability to develop its brand image in such a short time is

unprecedented. Under Armour has never wavered from the type of products it

creates or who it creates them for. Under Armour is a product for the athlete,

elite or amateur, that desires a healthy competitive and mental edge.

Purpose

The purpose of this study was to examine the role of sport brand

management in marketing the sport product. Specifically, this research will focus

on the brand management strategies of Under Armour. Using Aaker's (2005)

strategic market management theory as a framework, this study analyzed the

different marketing methods utilized to develop, maintain and sustain a

successful brand. In addition, a case analysis of Under Armour was also

conducted using the branding literature as well as interviews from Under Armour

executives and outside branding experts. Based on the purpose of the study, the

following research questions were proposed.

Research Questions

Research Question 1: What modern methods of brand development are used in

sport marketing today?

Research Question 2: How does Under Armour's use of modern methods of

advertising and marketing impact the development of the brand?

6
Research Question 3: How does the percentage of Under Armour's market share

relate to the development of the brand?

Research Question 4: How does Under Armour's development of its brand

position the product in the eyes of the consumer in the marketplace?

7
 Literature Review

Based on the purpose of this research, this literature review will focus on

several key areas of brand development. The areas of focus include brand

equity and related concepts as well as Aaker's (2005) strategic market

management theory and its components. The related concepts of brand equity

include brand loyalty, brand awareness, brand perception, and brand

association. The components of Aaker's (2005) strategic market management

theory include an external analysis which focuses on an examination of the

consumer, the competitor, the market, and the environment. An internal analysis

is also highlighted focusing on performance aspects and key determinants of

strategy.

Brand Equity

As an organization builds its brand, it attempts to create a level of high

brand equity in the eyes of its consumers. Brand equity theory has become the

focus of many marketing theorists and strategist over the past 20 years (Grassl,

1999). Aaker (2005) conceptualized brand equity in four select categories of

overall brand assets: brand awareness, brand loyalty, perceived quality, and

brand associations (Ross, James & Vargas, 2006). Brand equity is the perceived

value of a product by the consumer (Randall, Ulrich & Reibstien, 1998). It is

considered in the business and academic worlds as a set of brand assets and

liabilities linked to the brand's name and symbol (Aaker, 1995, 2005; Keller,

1993). Both Aaker (1991) and Keller (1993) argue the creation of brand equity is

8
largely driven by consumers' mental associations relative to a specific brand.

Keller (1993) further explains that brand equity is the extra effects that occur to

the brand above and beyond traditional marketing, simply because of a brand's

name and perceptional image. "Brand equity can be estimated by subtracting

the utility of the physical attributes of a product from the total utility of the brand"

(Yoo, Dontho, Lee, 2000, p. 195). In the consumer-goods sector, like athletic

apparel, brand equity is the added value provided to a brand over other

competitors in the market category who are considered generic equivalents

(Boone, Kochuny & Wilkins, 1995).

Creating a level of high brand equity not only allows the brand to maintain

an advantage in the marketplace, but it also creates an opportunity to experience

success in otherwise untapped markets by establishing a level of awareness and

prestige (Broniarczyk & Alba, 1994). Marketers and advertisers understand that

with product parity in the marketplace, the development of brand equity can have

a major impact on the success of the product (Park & Srvinivasan, 1994).

The roots behind brand equity can be traced to cognitive psychology and

the consumer's cognitive process, as well as the signaling theory of information

economics (Erdem & Swift, 1998). There are two key elements to studying brand

equity: "one is financially based motivation, which is to estimate the value of the

brand, and the second is to improve marketability" (Keller, 1993, p.1). Grassl

(1999) estimates that "companies view brand equity from a financial perspective,

in that, brand equity is the net present value of the profit stream attributed to the

price premium of the brand" (p. 315). Brand equity is measured via the price

9
premium placed on the product simply because of the brand name (Holbrook,

1993; Bello & Holbrook, 1995).

An organization's good name is often its brand name. An organization's

brand equity can subtract from or add to the value provided by a product or a

service to both the consumer and the firm in the marketplace. A trusted brand is

a promise of high quality and good things to come, but a tainted brand can trigger

memories of poor quality and bad service which may drive the consumer to a

competitor (Crispell & Brandenburg 1993). The clarity and credibility of a brand to

the consumer is essential in the development process (Erdem & Swift, 1998)

In sport, brand equity is more critical than ever due to the growth of

technology, the impact of disposable income of the consumer, and the increase

of unique marketing opportunities via the development of new media outlets.

The consumer plays the most significant role in the brand equity process. An

increase in brand equity will result in a high level of consumer brand utility

(Randall, Ulrich & Reibstien, 1998). Customer based brand equity occurs when

the customer is familiar with the brand and holds some favorable, strong and

unique brand associations in their memory (Keller, 1993). Corporations with high

consumer brand equity will not only produce desirable outcomes for the

organization, but will also be sought after by other consumers (Gladden, Milne, &

Sutton, 1998). Scholars (Amis et al, 1999) note that consumer based brand

equity is an intangible resource that can add to the perceived customer value of a

product or service. When analyzing consumer based brand equity, it is essential

to understand the measures of a customer's mindset. These measures include

10
awareness, attitude, association, attachment, and the loyalty that consumers

have towards a brand (Aaker, 1991). Understanding consumers' attitudes and

desires will help create a level of total brand equity.

Consumers have a sense of knowledge, attractiveness, and loyalty to

brands with a high level of brand equity (Keller, 1993). Brands that are

considered high in equity have a financial power over their competitors because

they maintain an increased level of market share and profit margins (Ourusoff,

1994a). Managers understand that the overall value of the brand is what will

drive the success of their business (Keller & Aaker, 1992). Though managers

may understand the importance of building brand equity, efforts to develop it

often get cut for financial reasons (Keller & Aaker, 1992). The process of brand

development is one that takes long term patience and not short term focus. It

becomes important that management maintains the consistency in brand image

for the long term, but it is also important that the marketing mix supports the

organization's strategic brand position (Buchanan, Simmons, & Bickart, 1999).

The key element is not to confuse the consumer while maintaining a sense of

familiarity. When managers make brand development decisions, they must

consider who is buying the brand, what the consumer wants from the brand, and

why the consumer returns to the brand (Crispell & Brandenberg, 1993). When

building an organization's brand equity, it is key to maintain a consistent image

and strategy in one's marketing plan (Keller, 1993; Park, Jaworski, & Maclnnis,

1986). Corporations that maintain a high sense of brand equity with their

n
consumers will produce financially favorable outcomes for the organization

(Gladden, Milne, & Sutton, 1998).

Levitt (1960) explains that it is important for companies to define

themselves in terms of the consumer's wants and needs rather than the product

itself. Mainstream marketing has focused its attention to the development of the

brand in the eyes of the consumer and what impact this has in the success of the

product (Gladden, Milne & Sutton, 1998). (Levitt, Jean Noel Kapfere (as cited in

Gladden, Irwin, Suttone, 2001) explains that "Products are what the company

makes; what the costumer buys is a brand (P. 301). Expressing one's brand

image is a significant aspect and basic element of the marketing function (Park,

Jaworski, & Maclnnis, 1986).

In the current marketplace, it is the marketer's responsibility to define the

brand in a way that allows as much flexibility as possible, while holding true to

the core values of the product and the corporation (Dunne, 2004). This makes it

extremely important for the brand to relate to its target consumer in a very

personal and relevant way (Romaniuk & Sharp, 2002). The development of

brand equity is predicated by how effective the marketing, promotion, and

advertising strategies are. Experts indicate that marketing firms and advertising

agencies are expanding client services to include all forms of marketing and

sponsorship opportunities in order to positively impact brand equity to stand out

from their competitors. Current non-traditional methods like video games,

product placement, athlete endorsement and media exposure via popular culture

are becoming effective means for brand separation (Bonham, 1998, as cited in

12
Bush, Martin & Bush, 2004). Instead of focusing corporate resources on broad-

in- scope marketing campaigns that are not as focused as they should be,

marketers are better served by identifying the most profitable and actionable

segments of current customers and determining which of their communication

strategies will be the best method of driving the right attitudes, behaviors, and

results that will have a positive branding effect (Davis, 2005). Corporations no

longer need to rely on traditional sponsorship initiatives, such as repeated media

buys, in-game promotions, in-stadium signage and title sponsorship to develop

their brand. These corporations can now leverage several different techniques to

advance their brand image.

Brand equity is a vital tool in the development of marketing platforms and

initiatives (Gladden & Milne, 1999). Successful advertising, marketing and

promotions can enhance a brand's equity in a specific product category, leading

to a significant increase in the positive image of the overall brand (Chaudhuri,

2002). A greater level of exposure to the target consumer will have a positive

impact on the brand (Zajonc, 1980; Chaudhuri, 2002). Advertising theory

concludes that in the absence of functional brand differentiation, brand

advertisement must give each consumer some reason, benefit, or added value to

be able to select one brand over another (Ehrenberg, Barnard, Kennedy, &

Bloom, 2002). Successful advertising, marketing and promotion should affect a

consumer's experience. This means advertisers should not just rely on the

marketing message conveyed to the consumer about the brand, but should allow

the consumer to experience or feel the brand (Calder & Malthouse, 2005).

13
 It is the role of the marketing department to creatively advertise and

promote their organization's brand to attract the consumer dollar. Successful

brand development can have a significant effect on whether consumers will

spend their disposable income on a firm's product. The most important assets of

any business are the intangibles: its company name, brand, symbols, slogans,

their underlying associations, perceived quality, name awareness, customer

base, and proprietary resources such as patents, trademarks, and channel

relationships (Aaker, 1991). Intangible sources of competence are the most

important when attempting to secure a position of sustainable brand advantage

with the consumer (Amis et al, 1999). The perception alone conveyed by one's

advertising and marketing strategies can be significant enough to have a positive

or negative effect a firm's bottom line. Brand equity can represent the negatives

and positive attributes of a brand (Gladden & Milne, 1992).

Marketing directors focus on communicating their brands to the consumer

in ways that drive awareness to their organization's overall strategy. As a

brand's strategic plan grows successful so does the positive level of overall

brand equity. This provides a brand loyalty barrier reducing the consumers

desire to seek out other brands and has a direct affect on the bottom line (Boone

et. al, 1995).

To properly develop a product's brand, advertising and marketing

managers must be able to differentiate their product from their competitors. It is

important for a brand to stand out in the mind of the consumer so that when the

consumer is making a purchasing decision the brand exists in the consideration

14
set. As noted by Mehta, Rajiv, and Srinivasan (2001), "A consideration set refers

to the set of brands (a subset of all the brands in the product category) over

which a consumer makes an explicit utility comparison or cost-benefit trade-off

before she makes her brand choice decision" (p. 9). An individual's consideration

set affects his or her decision in brand choices, but this choice may vary with the

context-availability, a desire for variety, a mood, an advertisement or retail

display, a special offer, or a whim of the moment (Ehrenberg et al., 2002). For

consumers, the existing brands on the market are broken into different

awareness categories consisting of the majority of brands large or small (Roberts

& Latten, 1991). The brands that are in the consumer's awareness set are then

segmented further into those that the consumer actually considers purchasing

(Roberts & Latten, 1991). A high level of brand equity for a product in a specific

category increases the chance that it will be seriously considered by the

consumer.

Before continuing to discuss the positive effects of brand equity, it is

important to understand that not all equity is positive. Because brand equity is

controlled by consumers beliefs' towards a product, there can be several

unexpected shifts in brand equity (Dawar & Pillutla, 2000). Financial studies

show that product recall has a direct affect on costs normally related to a product

recall, but just as important is the indirect affect on the consumer's views of

brand equity of the product (Davidson & Worrell, 1992; Pruitt & Peterson, 1986,

Dawar & Pillutla, 2000). Negative advertisement and publicity alter the

perception and association of brand equity which negatively affects the value of

15
brand equity in the eyes of the consumer (Dawar & Pillutla, 2000). Keller (1993)

explains that when a product comes under scrutiny, the brand equity will diminish

which affects the consumers purchasing of the product. If the consumer feels as

though the product does not meet their needs there will be no sale (Levitt, 1980).

Due to the influence of negative brand equity, it is imperative that managers

maintain a consistent level of equity in their brand (Levitt, 1980).

According to Aaker (1995, 2005), brand equity is a multifaceted theory that

consists of four key elements: brand loyalty, brand awareness, brand perception

and brand association. Each of these elements plays an integral role in the

success rate of developing a high level of brand equity. By strengthening the

dimensions of brand development, a corporation can generate a high level of

brand equity (Yoo, et. al., 2000).

Brand Awareness

"Brand awareness consists of brand recognition and recall performance"

(Keller, 1993, p. 3). Aaker (1991) and Keller (1993) argue that a factor in the

development of brand equity is the presence of the brand in the mind of the

consumer. The level of awareness has a significant affect of what is present in

the consumers consideration set (Macdonald & Sharp, 1996)

Brand awareness is one of the four key elements in developing the brand

and maintaining high equity in the brand (Aaker, 1991). Investments in brand

equity, and in particular brand awareness, can lead to sustainable competitive

advantages and long term value. Brand awareness adds value by:

16
 • Placing the brand in the consumer's mind
• Acting as a barrier to entry to new un-established brands
• Reassuring the customer of the organization's commitment and quality
• Providing leverage in the distribution channels

(Aaker, 1992; Stokes, 1985; Macdonald & Sharp, 1996)

Hoyer & Brown (1990) define brand awareness as "a rudimentary level of

brand knowledge, involving at the least recognition of the name" (p. 141). A

significant goal when trying to generate a high level of attention for a brand

where none exists involves focusing on building brand awareness and

maintaining it over time (McMahon, 1980). "Advertisers use repetition to impress

the advertised name upon the consumer's consciousness to make them feel

more comfortable with the brand" (Hoyer & Brown, 1990, p.141).

The factors that determine brand awareness are similar to the

determinants of the change in financial brand equity (Ye & Raaj, 2004). Without

brand awareness, no other communication effects can occur. Brand awareness

at times is misunderstood and can be wrongly identified even by the most

experienced of managers. For a consumer to buy a brand they must first be

made aware of it. Managers can have an influence on the consumer's

perception of a brand by carefully guarding the reputation, service, product

quality and consistency (Ellis, 2004). Brand attitude cannot be formed and

intention to buy cannot occur unless the consumer is aware of the brand

(Rossiter & Percy, 1987).

Brand awareness has become a central element of corporate

communication activities (Kelly, 1991). In memory theory, brand awareness is a

vital first step in building the "bundle" of associations which are critical when

17
consumers are making purchasing decisions (Stokes, 1985). The brand is

conceptualized as a singular node in the consumer's memory. This provides a

platform for further information, positive or negative, to either build on the brand

image or take away from the brand image (Aaker, 1991).

Brand awareness does not necessarily require recall of the exact brand

name. There are other elements that factor into the overall awareness of a

brand, such as the location, individuality, motto and advertising campaigns

(Rossiter & Percy, 1987). It is a simple fact that if a brand is not considered, it

will not be chosen. Brand awareness has a direct affect on the consideration set

of the consumer (Hoyer & Brown, 1990; Keller, 1993). Baker (as cited in

Macdonald & Sharp, 1996) explains that "a brand that is not considered can not

be chosen and further the probability of the brand being chosen is a function of

the number of other brands in the consideration set, for instance, the probability

of a brand being selected from 1, 2, 3, or 4 brands, decreases rapidly from 1.0 to

0.5, 0.33, and 0.25 respectively" (p. 1). The average consumer will typically buy

the brands for which they are most familiar (Roselius, 1971; Jacoby, 1977; Keller,

1993).

As organizations continue to grow their brands, awareness becomes more

critical to the developmental process. It is the foundation for shaping consumers

attitudes and the product image (Macdonald & Sharp, 1996). There is difficulty in

demonstrating the value of assets such as brand awareness to managers.

Enormous pressure exists for organizations and their brands to demonstrate

short-term profit results (Aaker, 1991). Demonstrating long-term value of brand

18
building can be very difficult to achieve (Hogarth, 1980; Aaker, 1991). Even

managers who claim they are concerned with the brand building activities of their

firm find difficulty in gaining support and resources for these activities.

While brand awareness offers a great deal of potential value to the

marketing manager, the difficulty lies in its measurement. Managers' lack of

interest is partially justified by the insensitivity of existing measures of brand

awareness. While determining the scope of a brand's awareness is quite easy,

measuring its depth is extremely difficult due to differences in interpretation to

total overall value (Macdonald & Sharp, 1996). The depth of brand awareness

and the level of accessibility of the brand in the consumer's mind are critical in

mature markets (Macdonald & Sharp, 1996).

Brand Loyalty

Aaker (1991) explains that brand loyalty is a factor in the development of

brand equity. Having brand loyal consumers alleviates some marketing costs

and generates positive word of mouth marketing. Consumer brand loyalty is a

fundamental concept in the strategic marketing process (Wernerfelt, 1991).

"Brand loyalty can be conceptualized as an asset to an organization, due

to its affect on the organizations bottom line" (Aaker, 1984, p. 40). A loyal

consumer base provides a level of economies of scale which presents a barrier

from competitor's efforts to attract consumers (Aaker, 1992).

A product with high brand loyalty allows the consumer to act as a

marketing agent for the brand. This use of consumers as brand marketing

agents allows for a savings on marketing costs, which has a positive affect on the

19
bottom line (Aaker, 1992). Loyal consumers also boost the bottom line of an

organization by maintaining their spending power on the product and providing a

consistent revenue stream (Boone, Kochunny, & Wilkins, 1995; Kuo, Chang &

Cheng, 2004). Tucker (1967) defines brand loyalty as a biased choice behavior

between branded merchandise. Brand loyalty is described by scholars as

including three dimensions: behavioral, attitudinal, and spurious (Day, 1969;

Jacoby & Chestnut, 1978; Gladden & Funk, 2001) Behavioral loyalty infers that

the consumer will purchase a familiar brand repeatedly, giving little thought to

other brands in marketplace (Jacoby & Chestnut, 1978, Gladden & Funk, 2001).

Attitudinal brand loyalty is defined as a consumer's commitment to a brand

through a deep value already associated to the brand, like college alumni and

their loyalty and support for their school (Chauduri & Holbrook, 2001). Dick and

Basu (as cited in Gladden & Funk, 2001) explain that spurious loyalty "represent

purchases that are guided not by a strong attitude but merely by situational

exigencies" (p. 76). In other words, spurious loyalty, is loyalty that is not affected

by any form of positive association from the consumer, but the consumer still

purchases the product anyway (Gladden & Funk, 2001).

When a brand is high in consumer loyalty, it creates a stronger consumer

base, which helps protect it from competitors within the market (Berry, 1999;

Mullin Hardy, & Sutton, 2000). Enhancing brand loyalty also protects the

organization from becoming stale in the marketplace and provides the brand time

to adjust to the desires of the consumer (Boone & Kochunny, 1995). Loyal

20
consumers increase the chances for future purchases and protect the brand from

consumer defection (Seines, 1993).

One of the most powerful marketing tools for an organization is word of

mouth marketing. When consumers feel highly about a product, their actions and

words as satisfied purchasers speak louder than any form of paid advertising

(Seines, 1993). Word of mouth marketing allows for a far more targeted and

focused consumer market to experience the brand (Seines, 1993). Brand loyal

consumers act as agents in spreading the image and passion for the brand.

These loyal consumers help provide a consistent level of stability in those times

when the core product may suffer a dip in performance (Aaker 1991; Keller,

1993; Gladden & Funk 2001). Brand loyal consumers also provide an

opportunity for the brand to grow through brand extensions and other brand

developing elements (Aaker 1991; Keller, 1993; Gladden & Funk 2001).

Brand loyal consumers allow for the brand to maintain a high level of

price point in the marketplace (Gladden & Funk 2001; Aaker, 1991). A high price

point for a product creates a perception of strength towards the brand to other

consumers and competitors. Loyal consumers allow for a price premium to be

charged to the product. Brand loyalty also provides the organization with the

opportunity to use these extra sources of revenue for reinvestment in the brand.

This helps develop other brand equity elements like perception or association

(Aaker, 1991).

21
 Brand Perception

Perceived quality is included as an asset distinct from brand association

(Aaker, 1991). Positive perception of an organization's brand provides significant

value to an organization by providing the consumer with a reason to buy,

differentiating the brand from competitor brands, attracting interest, being the

basis for line extensions, and supporting higher prices (Aaker, 1991). The

consumer's perception is often the thoughts that are top of mind when a

consumer is making a consumption decision (Aaker, 1996). Perceived quality is

defined as the consumer's judgment about a product's overall excellence or

superiority (Zeithaml, 1988; Aaker & Jacobson, 1994). The consumer's perceived

value of the brand is a key factor in the long-term success the brand can

experience (Fournier, 1998). Any attitudes, positive or negative, towards the

product influence the perception of that product in the consumers' eyes (Boyd,

Ray, Strong, 1972). This is why the development of positive perception on the

organization and the brand are important to firms today (Morris, 1996).

Consistency in marketing strategies and initiatives is paramount in developing a

strong brand perception and an increased level of brand equity (Buchannan,

Simmons, & Bickart, 1999).

Keller (1993; 1998) refers to consumer perceptions of brands as brand

knowledge, consisting of brand awareness (recognition and recall) and brand

image. One's brand perception can be greatly affected by several different

attributes, like physical qualities, price, promotion, advertising, and packaging

(Munn, 1960). When discussing perception, it is important to recognize the role

22
of publicity and stereotypes and the influence they have on consumers'

perceptions (Matta & Folkes, 2005).

Perception of value directly influences the consumer's willingness to

purchase a product (Dodds, Monroe, & Grewal, 1991). Monroe & Kischan (1985)

note, the significance of price has an impact on consumers' perception of the

brand. Price has objective external properties as well as subjective internal

representations derived from the perceptions of price of a product, resulting in

some form of meaning to the consumer (Jacoby & Olson, 1977). Sethuraman

and Cole (1997) found that perceived quality explains a considerable portion of

the variance in the price premium consumers are willing to pay for national

brands. Price points of consumer goods are driven in part by the perceived value

of the product in the marketplace, so any manipulation in the brands perception

can have an impact on consumer's views of the minimum selling price (Simonson

& Drolet, 2004). The perception built around the brand whether based on price,

performance, or word of mouth marketing, have an affect on the overall brand

association.

Brand Association

When developing a brand, it is essential for an organization to create a

brand image that connects the brand to a set of associations that match the

companies' strategic decisions (del Rio, Vazquez, Iglesias, 2001). Memory and

brand recall are functions of association between the consumer and distinct

aspects of the brand (Quester & Farrelly, 1998). Aaker (1991) defines brand

association as anything linked in memory to the brand. It is important to note that

23
consumers remember negative associations as well as they remember positive

associations (Katsanis, 1994). Like brand perception and awareness, a negative

connotation towards a brand can have a damaging affect. The consumer's

association with the brand is a key component to the development of brand

equity (Aaker, 1991; 1996; Keller, 1993; 1998, del Rio, Vazquez, Iglesias, 2001).

Brand association is defined as nodes in the memory that link a consumer's view

of a brand's image and consumer's perception of the brand (del Rio, Vazquez,

Iglesias, 2001). Associations relate to a consumer's feelings and attributes

towards a brand. These feeling are likely to last longer in the mind due to their

accessibility to the consumer (Chattopadhyay & Alba, 1988). Consumers use

brand associations to help make their purchasing decisions (Aaker, 1991). It is

important to note that product functions related to the brand are physical

attributes and are present in all brands, causing a tangible association to the

consumer (del Rio, Vazquez, Iglesias, 2001). These tangible associations are

critical for managers to control from the beginning of the production process.

The brand functions are the intangible elements that relate to association of the

brand (del Rio, Vazquez, Iglesias, 2001).

There is much scholarly research focused on how brand association has a

significant influence on the consumers purchasing decision, preferences and

intentions, willingness to pay a price premium for the brand, acceptance of brand

extensions, and desire to recommend the brand to other consumers (Park &

Srinivasan, 1994; Cobb-Walgren et al., 1995; Agarwal & Rao, 1996; Hutton,

1997; Yoo et. al, 2000; del Rio, Vazquez, Iglesias, 2001). Organizations invest a

24
significant amount of their budgets to the development of their brands by building

and maintaining a positive association between the brand and the target

consumer (Quester & Farrelly, 1998). Brand associations help managers

differentiate position and extend the brand. This creates a positive feeling

towards the brand and enhances the consumer's chances of purchasing the

product (Low & Lamb, 2000). Much of the goodwill an organization receives

stems from the positive association the consumer has with the brand (Katsanis,

1994).

Brand name recognition and a strong brand association combined with

perceived quality can be developed with a focus on long-term strategies (Yoo, et

al., 2000). Managers can create a high level of association with the brand by

consistently communicating and exposing the brand image to the target

consumer (Aaker, 1991; Alba & Hutchinson, 1987). Brand associations are

stronger when they are connected with several different elements of exposure

and communication. Several methods, including brand image, brand attitude,

and perceived quality have been used to measure the effectiveness and level of

brand association in consumers (Low & Lamb, 2002).

Brand perception plays an integral role in how the consumer associates

with the brand. "The "Battle of the Brands" is a war fought over consumer

perceptions" (Richardson, 1997, p. 388). The stronger the association, the easier

it is for the consumer to make their purchase decisions (Ellis, 2004). Perceived

quality has become an important method in the brand development process.

25
David Aaker's (2005) Strategic Market Management Theory

Aaker's strategic market management theory is an external and internal

corporate analysis that provides information to help in strategy development and

strategic decisions affecting the final output (Aaker, 2005). The key to this

strategic theory is to provide management with a vision of their own business,

monitor and understand their environment around them, generate their strategic

options that will allow them to adapt to changes that face a business, and

develop strategies based on competitive market advantages (Aaker, 2004).

Aaker's (1995, 2005) internal analysis consists of examining the consumer, the

competitor, the market and the environment for which the organization is in.

Aaker's (1995, 2005) external analysis examines performance and strategic

options.

External Analysis

An external analysis is an examination of the critical elements that occur

outside of the organization (Aaker, 1995). Organizations need to be externally

focused toward competitors, the market, and the market's environment (Aaker,

2005). Recent indications show that greater qualitative focus on external

analysis is being utilized by major U.S. Corporations (Kennedy, 1984).

"Conducting an external analysis will develop market driven strategies that are

sensitive to the customer" (Aaker, 2005, p. 13). External factors of an

organization are the opportunities and threats presented by the external

environment (Dutton & Jackson, 1987; Fredrickson, 1985). Executives define

environmental changes as being either a threat or an opportunity (Dutton &

26
Jackson, 1987; Fredrickson, 1985; Jackson & Dutton, 1988; Chattopadhyay,

Glick, &. Huber, 2001). The ability to adapt external threats to opportunities has

been a leading characteristic of American management history (Ansoff, 1980).

These external factors may include macroeconomic matters, technological

change, legislation, and socio-cultural changes, as well as changes in the

marketplace or competitive position.

The external analysis will pose strategic questions and strategic choices of

the four critical environmental elements:

- Consumer analysis

- Competitor analysis

- Market analysis

- Environmental analysis

Porter (1979) proposes a five forces strategy as a method to examine the

external environment in which a company competes. The five forces strategy

consists of barriers of entry, threat of substitutes, bargaining power of buyers and

suppliers and the rivalry of existing competitors (Porter, 1979). This model has

been proven as a successful method of analyzing market forces that influence an

industry and has been utilized by business scholars and practitioners (Vining,

Shapiro & Borges, 2005, Ou & Chai, 2007). Using Porter's (1979) method,

organization's can draw conclusions in regards to competitive situations and

profit potential of the industry (Porter, 1980, 200; Ou & Chai, 2007).

Managers are more inclined to be more sensitive of existing threats rather

than the opportunities that might be present when a result of an external analysis

27
are revealed (Jackson & Dutton, 1988). The threats and the opportunities that

are present in the market are important issues for both managers and

researchers (Jackson & Dutton, 1988). "Threats and opportunities are two

categories that have been found to be salient in executive decision making"

(Chattopadhyay, Glick, &. Huber, 2001, p. 939). Aaker's (1991), strategic market

management theory explains that a successful external analysis will consist of

analyzing four strategic situations, and when studied appropriately will help to

better understand an organization's opportunities and threats. These four

situations consist of a consumer analysis, a competitor analysis, a market

analysis, and an environmental analysis.

Consumer Analysis

The consumer analysis is the first step of the external analysis and

involves identifying the organization's consumer segments. It should consist of

analyzing three sets of strategic questions: segmentation, motivation, and unmet

needs (Asseal & Roscoe, 1976; Fennel, 1978; Aaker, 1995, 2005). Identifying a

brand's consumer market segments helps structure the strategic investment

decision (Aaker, 2005). The consumer includes several characteristics such as

sex, age group, race, wealth, education level, education, religion, nationality, and

gender (Applebaum, 1951). The importance of consumer research to the

marketing discipline has perhaps never been higher as managers struggle to

adapt to a fast-changing marketing environment characterized by savvier

consumers and increased competition as well as the decreased effectiveness of

traditional marketing tactics and the emergence of new marketing tools (Keller,

28
2003). Researching the consumer entails analyzing all human activities

(Holbrook, 1987; Kernan, 1987). Analyzing the consumer has played a

significant role in the managerial decision process relative to marketing strategies

(Keller, 2003).

Executives, and specifically marketing directors, must consider three

questions: who buys the brand, what do they want from the brand, and why do

the consumers keep returning (Crispell & Brandenberg, 1993). Understanding

consumers' attitudes and desires are essential to developing a sense of total

brand equity which can enhance the added value of one's product. The added

value afforded to a certain product or corporation impacts both brand equity to

the consumer and the return on investment of the corporate entity. The use of

added value has been widely accepted as a strategy for achieving a competitive

advantage in the ever-growing consumer market place (Naumann, 1995). "Added

value is a multidimensional construct, interpreted differently by different people"

(Kraft, Pedersen, Miloch & Drane, 2007 p. 7).

If there is no attempt made to enhance the benefits perceived by the

customer, any attempts to leverage such a resource are likely to prove ineffective

(Mosakowski, 1993). Every person that enters a store or acknowledges an

advertisement is a potential purchaser and represents a unit of buyer influence

for the brand (Applebaum, 1951). It is important for managers to understand how

much the consumer is purchasing, what type of brand is purchased, by what

season or timeframe are they purchasing, and in what quantity does a consumer

purchase their product (Applebaum, 1951). Prior to making a purchase, the

29
consumer often analyzes why they either like or dislike a certain brand (Sengupta

& Fitzsimons, 2004).

With the emergence of branding and branding principles, it has become

necessary for managers to understand concepts, theories, and guidelines of

consumer research so the brand can continue to flourish (Keller, 2003). Because

of the significant affect branding has on consumers' purchasing behaviors,

managers are improving their design and implementation of brand building

strategies for their target consumers (Keller, 2003). Thus, marketers need to

relish the opportunity to garner any information on their consumer (Aaker, 2005).

The method of consumer analysis consists of using the data of past

purchasing behaviors of customers to help predict future purchases (Schmittlein

& Peterson, 1994). According to Schmittlein & Petersen (1994),

"consumer analysis uses data on frequency, timing and dollar value of each customers past
purchases to infer: number of consumers currently active, how that number has changed over
time, which consumers are most likely still active, how much longer each is going to remain a
loyal customer, and how many purchases can be expected from each during any future time span
of interest" (41).

It is important to analyze the current allocation of resources to different

consumer segments and identify the company's position relative to its

competition (Campbell & Cunningham, 1983). Tacit and intangible sources of

competence are, according to Amis et al (1999), the most important when

attempting to secure a position of sustainable advantage with the consumer.

Scholars believe (Aaker, 1991; Blackston, 1992; Keller, 1993; Gladden &

Funk, 2002) appropriate brand building requires managers to completely

understand the consumer's desire, needs and wants to enhance the overall

30
brand equity in the product. Additionally managers must also asses the

consumers' brand knowledge (Peter and Olson, 2001). Keller (2003) explains

that consumer brand knowledge should be measured by determining the

personal meaning stored in the consumer's memory about a specific brand.

Another important factor in the process of analyzing the consumer, is

understanding the attractiveness of the market or submarkets (Aaker, 2005).

Market Segmentation

Segmentation is the process of first identifying a general or brand consumer

group, and second, developing more specific target groups from within the

general profile. No task has as great an impact on the success of a marketing

campaign as defining a market segment (Bass, Tigert, & Lonsdale, 1968). Market

segmentation, as defined by Smith (as cited by Asseal & Roscoe, 1976) is an

"adjustment and marketing effort to (differences in) consumer user requirements"

(p. 67). There are five basic characteristics in which the consumer market can

be divided:

• Demographic (income, age, gender, profession, education, place of residence

social class, marital status, et.)

• Psychographic (Interests, hobbies, opinions, desires, lifestyles, leisure time

spent, disposable income, etc.)

• Product usage rate (how often a group uses/buys a product)

• Product benefits (consumer's opinions of the important benefits of the

product)

31
• Relationship strength (the strength of the emotional bonds between the

consumer and the product)

o (Milne & McDonald, 1999, p. 347).

Segmentation is essential in the development of marketing strategy and

tactical plans (Smith, 1978). Market segmentation has been viewed as one of

the cornerstones of modern marketing (Wind, 1978). Segmentation consists of

the how, what, when, and where. It also consists of components of demand in a

consumer analysis (Dickson, 1982). Bass et. al (1968) explains that two

fundamental propositions are involved in market segmentation. Market

segmentation is a critical management strategy that involves understanding the

consumer characteristics of the group as a whole not the individual consumer

(Bass et. al, 1968). Market segmentation is understanding the desires of your

consumers in order to appease their needs and wants (Smith, 1956).

Claycamp and Massey (1968) define market segmentation as "an

economic theory to show how a firm selling a homogeneous product in a market

characterized by heterogeneous demand could maximize profits" (p. 388). In

order to successfully develop a brand strategy, it is essential to understand who

the current consumer is and who the future consumer may be (Mcdonald &

Milne, 1999). Once it is known who is being targeted, it then becomes essential

to know what motives lead to the consumer's purchase.

32
 Motivation

Motivation is the method for which those in control of a product or service

generate the creation of a certain behavior towards the product and steer it in a

specific direction (Fennel, 1978). Consumers are motivated by several different

elements relative to consumption (Trail, Fink, Anderson, 2003). The motivations

of the consumer have a major impact on their perception and expectancies (Trail,

Fink, Anderson, 2003). There have been various studies on the motivational

factors that affect consumers purchasing patterns. These studies have

researched numerous motivational factors, both psychological and social. Trail's

et. al. (2000) research identified nine motives that affect the sport consumer:

"Vicarious achievement, acquisition of knowledge, social interaction,

drama/excitement, escape, family, physical attractiveness of participants, and the

quality of skill of the participants" (Trail et al. 2003, p. 10). Identifying the

psychological patterns of the consumer helps managers understand why the

consumer is loyal (Trail & James, 2001). Due to past research on motivation, it

can be assumed that males and females in general have different motivational

traits or that societies' affect on the individual plays a role in motivation

(Robinson & Trail, 2005). Other studies indicate this as well, thus their

expectancies and perceptions vary.

Motivation is said to be determined by the consumer's desire for the

product and the ability to actually purchase the product (Weiner, 1985).

Consumer's motivations are either innate in nature or learned over time (Deci,

1971). Wann and Wann (1995), Schrader, and Wilson (1999) noted that the

33
motive of men and women differed in the following areas: stress, self-esteem,

escape, entertainment, economics, aesthetics, group affiliation, and family

(Robinson & Trail, 2005). Desire and positive attributes from the brand have an

affect on the purchasing power and motivation of the consumer (Fennel, 1978).

The wants and unmet needs of the consumer are influenced by the perception

the consumer has of the product (Fennel, 1978).

Fennel (1978) notes that marketing's first law is "Don't sell what you

happen to make; make what the consumer wants to buy" (p. 38). Unmet needs

are strategically important because they represent opportunities for firms to either

increase their market share or enter a new market (Aaker, 1995). The marketing

initiatives may change as the customers needs change, but the overall brand

strategy and image should be consistent (Berry, 1999). Every product has a

point of difference, but in order to be successful the point of difference must be

able to meet the unmet needs of the consumer (Tauber, 1973). The consumer's

unmet needs play an important role in brand development and on the consumer's

decision process around brand choices (Hermann, 1970). It is important for

companies to understand what the consumer's needs are and develop strategies

focused on these needs (Berry, 1999). The development of new products in

response to consumers needs can have an affect on the development of new

market categories and demonstrate developmental progress (Twedt, 1965).

34
Competitor Analysis

The competitor analysis is the third step in the external analysis of the

strategic market management theory. "The competitor analysis starts with the

identification of competitors, current and potential" (Aaker, 2005, p. 22). The key

to a competitor analysis is to understand and predict the rivalry, or market

behavior between firms striving for market dominance (Caves, 1984; Porter,

1980; Scherer & Ross, 1990; Chen, 1996). Identifying one's competitor plays a

major role in how an organization develops its marketing strategies (Aaker, 1995;

Czepiel, 1992; Day, 1990; Sudharshan, 1995, Clark & Montgomery, 1999).

Deregulation, globalization of markets, flexible manufacturing, and the continued

growth of technology are giving way to a greater impact on competition for the

consumer's dollar (Weitz, 1985).

A market is defined as a segment of individuals with similar needs and

wants with some form of purchasing power who interact with a entity that can

provide a service or product to fulfill the consumers needs and wants (McCarthy

&Perreault, 1984).

It is essential to understand the market and the competitors as this plays

an important role in assessing strategic opportunities, in identifying strategic

threats, in developing marketing and branding initiatives, in assessing market

share, and in evaluating one's level of success (Weitz, 1985). An organization's

competitive action is typically externally directed specific, and observable

(Ferrier, Smith, Grimm, 1999). To maintain a successful marketing strategy, it is

important to have an understanding of the current product market and the

35
competitors that are present in the marketplace (Carpenter & Lehman, 1985).

An organization's marketing strategy is strengthened by the success of the

competitive analysis that occurs (Henderson, 1983). The evaluation of the

competitiveness within a market plays a significant role in determining profit

potential (Porter, 1990). Level of competition in a market affects the level of

marketing activities that companies should implement to be successful (Weitz,

1985).

When trying to enter a competitive market, a new company will typically

aggressively attack their competitors in an effort to increase the overall

performance of their product or service (Lumpkin & Dess, 1996; Miller, 1993;

Ferrier, 2001). In hypercompetitive markets, market share leaders constantly

strive to stay ahead of their competitors by aggressively attacking the market

(D'Aveni, 1994).

Strong brand names can increase their market share by strengthening

their product mix and exploiting their advantages over weaker market brands

(Carpenter & Lehman, 1985). When conducting a competitor analysis, one must

identify all brands in the marketplace that have experienced success, have

survived over time, and continue to maintain a competitive advantage

(Henderson, 1983). Each respective company must know its restrictions and

understand the many variables that impact market competition in order to

develop the most appropriate strategies. The primary objective of a competitor

analysis is to fully recognize and forecast the moves of market competitors and

assist in gaining a competitive advantage (Chen, 1996).

36
 Psychological research has stated the brain typically can process no more

then seven items at a single time (Miller, 1956). Lynch and Scrull (1982) explain

"people fail to recall any instance of a category or recall six or seven instances

from each category that is accessed" (p. 21). This would demonstrate a key

proponent of one's competitor analysis, in that managers can only identify and

strategize around those brands for which are in their consumer set (Clark &

Montgomery, 1999). Once a company understands its competitors, it can better

understand the market in which it competes.

Market Analysis

The market analysis is the third element of the external analysis.

Conducting an effective market analysis depends on the data available (Barrett,

1996). When engaging in a market analysis, a company gains a greater

understanding of the scope of the competitive market. Studies suggest that

"when a company chooses to enter a specific strategic group, it selects the

members of that group as its competitors" (Kottler & Armstrong, 1989, p. 496;

Chen, 1996, p. 102). Chen (1996) defines competitors as "firms in the same

industry, offering the same product to the same target consumer" (104). Many

sociographic elements greatly affect consumption (Armstrong & Stratta, 2004).

There is a two approach market analysis method that has emerged in the

literature, "these are top-down, competitive capabilities and resource transfers,

and bottom-up, consumer patterns or usage patterns when defining markets"

(Day, 1981, p.281).

37
 "A strong market analysis should include an examination of the market

size, growth, profitability, cost structure, channels, trends, and key success

factors" (Aaker, 1999, p. 23). Market size is a method of attraction for the

consumer when it comes to selection of a certain brand (Desarbo, Kim, Choi,

Spaulding, 2002). A crowded marketplace increases the market size which has

direct impact on the increase of intensity in the market (Melitz & Ottaviano,

2005). The actual and potential market size has a significant affect on the way in

which an organization should attack its competition (Gal, 2002).

Market Growth

Elements of market growth are vital to a market analysis. "A new use,

new user group, or more frequent usage could change dramatically the size and

prospects for the market" (Aaker, 1995, p. 89). The important issue when

examining potential market growth is whether the company sees an opportunity

to exploit opportunities for competitive advantage (Aaker & Day, 1985). "Studies

suggest the ability to increase market share is directly related to the market

growth of the brand" (Fogg, 1974, Henderson, 1978, Gatignon, Weitz, Bansal,

1990, p. 392). It should be understood that market growth in itself does not

create an increase in market share (Gatignon, Weitz, Bansal, 1990).

Profitability

Porter (1985) explains that large businesses have less of a profit

advantage when the product mix is larger than the smaller firms in the same

industry with a smaller product mix. Porter (1980) explains the element that

draws one to a market is the long-term return on investment. This long-term ROI

38
depends on five factors that influence profitability. These include the intensity of

competition, the existence of potential competitors that will enter when profits are

high, substitute products that will attract customers if prices become high, the

power of the consumers, and finally the bargaining power of the suppliers

(Porter, 1980)

Cost Structure

"Understanding the cost structure of a market can provide insight into the

present and future key success factors" (Aaker, 1995, p. 97). Researching and

analyzing the cost structure allows the organization to gain insights into customer

profitability, distribution channels, vendors, brands, regions, and other areas that

directly affect the profitability of a firm (Babad & Balachandran, 1993). For a

minor brand in a market, price discounts have a relatively larger effect for the

reinforcement segment than for the variety-seeking segment. The opposite is

true for a major brand as price discounts have a relatively larger effect for the

variety-seeking consumers than for the reinforcement consumers (Kahn & Raju,

1991). Variety seeking consumers are those willing to change their purchasing

behavior based on promotion, cost, and marketing (Kahn & Raju, 1991).

Reinforcement consumers are those consumers whose past brand choices

impact their purchasing choices (Kahn & Raju, 1991).

Distribution Systems

For successful distribution, companies must focus on broadening the

number of items distributed (Kruger, Dennerlien & Power, 1989). To provide

management with an accurate understanding of distribution chains, it is essential

39
that marketing research lead to an analysis that will allow for recommendations

that can positively affect distribution to the consumer (Christian, 1958).

Market Trends

Trends within the market can have an impact on the organizations future

strategies as well as its profitability (Aaker, 2005). "Trendspotters, field

researchers, brand specialists, social scientists, futurists or trend consultants are

people hired to track the 'next big thing' in corporate America" (Kerner &

Pressman, p. 38)

Key Success Factors

If an organization is aware of key success factors, it may avoid failure and

improve the opportunity for success (Hardy, 1986). "The fundamental paradigm

of strategy states that in order to perform well, the firm must compete in settings

in which the prerequisites for success-the 'key success factors' - match the firm's

distinctive competences or strengths. Viewed conversely, the firm must develop

strengths that match the key success factors in its industry" (Sousa De

Vasconcellos E Se & Hambrick, 1989, p. 367)

Environmental Analysis

Environmental analysis is the process of scanning and understanding the

company's environment. It is critical to an organizations performance and viability

in the marketplace (Elenkov, 1997). A manager's ability to analyze the entire

environment requires diligent attention across all business aspects (Day &

Schoemaker, 2006). An analysis of the entire business environment is important,

as managers may not know what may influence revenue. Key area for analysis

40
include economics, politics, technology, or from within the company's industry

(Day & Schoemaker, 2006). "Important forces outside an organization's

immediate markets and competitors will shape its operations and thrust" (Aaker,

2005, p. 25). It is important to limit the environmental analysis of the brand to

what is manageable and relevant. It is not efficient to examine or place

importance on insignificant details (Aaker, 2005).

The analysis of the environment involves five components. These include

technological, governmental, environmental, cultural, and demographic (Aaker,

1995).

Technology and marketing play a key role in the strategic development for

the ever changing marketplace (Capon & Glaser, 1987). Technology has

become one of the central factors in determining a businesses strategy (Itami &

Numagami, 1992). Strategists believe that technological turns in the industry

dramatically influence a company's revenue generation and profitability (Cooper

&Schendal, 1976).

Business and government have had an adversarial past met with

antagonism, opposition, and resistance (Steiner & Steiner, 1991). In recent

years, the level of communication between business executives and the

government has reached productive levels (Steiner & Steiner, 1981). In global

business the influence of government and politics in the environment is as

important as ever. The role of business is one of public diplomacy for the country

in which they operate (Goodman, 2006). Governments and consumers want the

business sector to respond to changes in the economic environment.

41
 "The environment's role in business strategy has long been considered as

the moderator of planning but some feel its role was controversial. "Early studies

rejected formal planning in favor of incrementalism in unstable environments, and

concluded that environment moderated the type of planning that firms should

conduct" (Brews & Purohit, 2007, p.65). To make knowledgeable strategic

decisions, managers must understand the entire market environment for which it

competes in (Saxby, Parker, Nitse, Dishman, 2002). Saxby, et al. (2002), explain

"environmental scanning allows managers in the organization to become

instantly aware of environmental factors that could significantly influence the

organization and its strategic direction" (p.28). When scanning the environment,

several principles should be considered. These include an analysis of the

peripheral business environment; anticipating change and growth rather than

predicting; scanning the environment with an open mind; utilizing several

perspectives to understand the complete environment; probing a situation before

jumping in; and responding to the challenge of knowledgeable leaders (Day &

Shoemaker, 2006)

In a global economy an understanding of culture is important. An

organization can gain a competitive advantage by analyzing the cultural elements

of an environment like place, people and product implications (S. Ramarapu,

Timmerman & N. Ramarapu, 1999). When developing a brand, a distinct

competitive position can be expressed through images, colors, shapes, and

languages. These can be used to appropriately communicate with the cultures of

the company's target segments.

42
 As the economy of scale has increased, the type of focus on

demographics has changed drastically. Understanding demographics is no

longer as simple as knowing the target markets age, race, and gender.

Demographic knowledge requires an understanding of different types of cultural

influences. There are several environmental elements that influence

demographics to change. These include increasing life spans, decreasing birth

rates, and aging subpopulations such as the U.S. baby boomer generation

(Crosby, Johnson, Caroll, 2006). In the United States, the aging of the population

will continue at a slightly reduced rate, particularly if immigration -- which tends to

introduce younger people into the populace - persists at current levels (Crosby,

Johnson, Caroll, 2006, p. 14).

Once the environmental analysis is complete, the firm can devise suitable

strategies to exploit the opportunities and negate the threats. Once

understanding the opportunities and threats that exist, it is imperative to

understand the strengths and weakness within the organization itself, by

conducting an internal analysis.

Internal Analysis

An internal analysis is critical to the overall growth of an organization. It

should be used to create and modify strategies while exploiting strengths and

compensating for weaknesses (Aaker, 2005). "An internal analysis aims to

provide a detailed understanding of the strategically important aspects of the

organization" (Aaker, 2005, p. 26). This type of analysis looks at the strengths

and weaknesses of an organization. When an organization conducts an internal

43
analysis, it is essential that the goals and strategies align the strengths and

weakness with the opportunity and threats of the organization (Porter, 1991).

In order for a firm to grow and be successful, it must understand what it

does well and leverage that strength to create future opportunities (Busija, O'Neill

& Zeithmal, 1997). The strength of an organization can be an advantage in the

marketplace (Hazelbaker, 2006). An organization's weakness is a limitation or

flaw that takes away from the productivity of the organization relative to one's

competition (Hazelbaker, 2006).

"The success and development of business strategy is concerned with

matching the consumer's needs, wants, desires, preferences and buying

patterns, with the internal abilities of the company" (Holmes & Hooper, 2000 p.

248). Strategy plays an important part in the internal development of an

organization (Hambrick, 1980). Internal assessments of an organization will lead

to changes for the better of the organization (Miles & Cameron, 1982). Analyzing

the core competencies of an organization helps to better understanding what the

firm does well (Holmes & Hopper, 2000). Understanding these core

competencies of a firm helps analyze and develop key strategies (Holmes &

Hooper, 2000).

Organizations attempt to create responsive strategies, either exploiting

strengths or correcting for weakness (Aaker, 1995). A successful manager

understands the internal strengths and weaknesses, such as working stress

levels, production rates, worker motivation, teamwork, cultural development, etc.

(Berg & Carlson, 2007, Hazelbaker, 2006). A leader understands the attributes

44
and internal culture of an organization making sure the character and dynamics

of the organization continue to grow (Von Krosgik, 2007). The strength of an

organization is based on the level of success that can be achieved (Pearce,

2007). An understanding of an organization's weakness is essential to the

growth of a company and brand (Pearce, 2007). The faster an organization can

come to realize its flaws, the quicker it can rectify them. To successfully analyze

the internal operations of an organization, two areas should be examined. These

include performance levels and key strategic determinants (Aaker, 2005).

Performance Analysis

A performance analysis is utilized when an organization desires to

enhance its efforts or correct a specific problem that has been identified (Rosset

& Sheldon, 2001). Performance analysis consists of profitability, sales,

shareholders value of the brand, customer satisfaction of brand, brand image

and quality, brand associations, brand costs, new products and the affect on the

brand, employee attitudes, representation of the brand and brand portfolio

association (Aaker, 1995). Superior brand performance outcomes such as

greater market share and a level of price premiums can be derived from a high

level of customer loyalty (Chauduri & Holbrook, 2001). An investigation into

performance initiatives is conducted to examine how a firm supports the mission

statement, its vision, goals, and overall brand image (Phillips, 2002).

"Experiences have replaced expectations as the standard for a comparison of a

brand's performance" (Woodruff, Cadott, Jenkins, 1983, p. 296). Performance

analyses have been proven to help improve the marketing techniques and

45
strategies of an organization (Martilla & James, 1977). A consumer's prior

experience may have an affect on perception which can have a direct impact on

the brands bottom line (Woodruff, Cadott, Jenkins, 1983). Brand popularity can

directly affect the brands performance in not only the short term, but also in the

long term (Kim & Chung, 1997).

There are several methods to measure brand performance. "Some of

brand performance measures consist of understanding several factors. These

factors consist of the percent of consumers buying a certain brand in a month,

the number of purchases per buyer, the percent buying once, twice, etc., those

consumer who are 100% loyal and what is the rate of purchasing, and which

other brands are bought" (Uncles, Ehrenberg, Hammond, 1995, p. G71). Studies

(Dekimpe & Hanssens, 1995) show that "temporary increases or shocks to

advertisement can have a permanent impact on brand performance" (p. 2). "Up

and downward evolutions in a brand's performance can also be caused by

external factors, which in turn can translate into gradually changing marketing

budgets and spending practices" (Dekimpe & Hanssens, 1995, p. G109).

Determinants of Strategy Options

Internal analysis is not useful unless there is a review of the

characteristics that influence strategic options (Aaker, 2005). "Formulating

competitive brand strategy is an important problem for marketing managers"

(Carpenter, 1989, p. 1029). Aaker (2005), outlines five areas that influence

strategic options, "past and current strategic problems, organizational capabilities

and constraints, financial resources and constraints, strengths, and weaknesses"

46
(p. 27). Business strategists believe an examination of strategic options is the

best way to make important corporate decisions (Bowman & Hurry, 1993;

Bowman & Moskowitz, 2001). Having an up-to-date strategic plan with clearly

stated principles, mission statements, goals, strategies and measurable

objectives helps every organization, project, and individual make a difference in

strategy (Aaker, 2005). Aaker (1995) explains that performance should be

evaluated along other dimensions relevant to the business and its strategy.

These dimensions would include brand loyalty, product quality, productivity,

manager capability and performance (Aaker, 1995).

It is important for an organization to understand the goals and objectives

desired to be achieved, before selecting its strategic options (Nutt, 1984).

Strategy researchers note that an organization's best decisions can be made

through a strategic options lens (Bowman & Hurry, 1993). These strategic

options play an integral role in marketing and advertising objectives (Bowman &

Hurry, 1993). After a brands introduction to the marketplace, its advertising cost

will decrease regardless of the brand strategy (Crawford, 1987). Organizations

that fail to recognize the true landscape of the marketplace will find their strategic

options ineffective (Dickson & Ginter, 1987). Perceptions of brand position in the

marketplace and competitive brand reaction are key factors in competitive brand

strategy (Carpenter, 1989).

Porter's (1980) research provides two scenarios for an organization in

selecting its strategic options. First, the organization can seek lower cost than its

competitors. Second, the organization can differentiate its product in varying

47
ways. Porter (1991) defines strategy as "a way of integrating the activities of the

diverse functional departments within a firm, including marketing, production,

research and development, procurement, finance" (96). An organization's

strategic options and decisions should be aligned with its competencies and

strengths (Porter, 1991).

Summary

The development of a successful brand through a high level of brand

equity requires focus on four fundamental aspects of the branding process: brand

awareness, brand loyalty, brand association and brand perception. When these

four elements of brand equity are achieved positively, they create a high level of

brand equity, which in turn creates a significant affect on marketing, promotion,

endorsement, and media involvement.

When making informed decisions on brand development, an organization

should have a solid understanding of the internal and external environments for

which it exists. Knowledge of the external properties of an organization like a

firm's competitors, consumers, market, and environment are critical to making

appropriate brand strategy decisions. Successful brand development must

include knowledge of the internal strengths and weaknesses of a firm. An

internal analysis assists the branding process by providing an analysis of the

firm's strategic options that exist.

48
 Method

The purpose of this study was to analyze Under Armour's brand management

strategy using Aaker's (2005) strategic market management theory and personal

interviews of both Under Armour executives and outside branding experts.

Aaker's (2005) theory was adapted to focus on the specific brand elements that

play a part in development of the Under Armour brand.

Qualitative Analysis

This research was conducted through the use of qualitative analysis. A

qualitative approach was the appropriate method for this study because this form

of research allowed for the most thorough and detailed examination of Under

Armour's brand development strategies through case-study research and

personal interviews. Kennedy and Luzer (1999) noted, "The objective of the

research, particularly the generalizations that researchers are going to make,

should direct the choice of method used" (p. 584).

Qualitative research utilizes methods like interviews, to better understand

and explain social phenomena (Myers, 1997). Qualitative research is used to

"investigate the intricate details about phenomena that are difficult to learn

through more conventional methods" (Strauss & Corbin, 1988, p. 11). "Qualitative

research is empirical, and seeks breadth rather than depth" (Ambert, A.M., Adler,

P.A., Adler, P. & Detzner, D. 1995). "In 'good' qualitative research, the analysis

is guided by previous theory and research, but stays open to competing

perspectives" (Marshall, 1984, p. 26). What separates qualitative research from

49
other forms of research is the ability of analyzing the environment in which

something exists and how it can impact the outcome (Smith, 1987).

When focus of the research subject is exploratory in nature, and seeks to

unearth and understand something where little is known about it or if the

research is attempting to find the meaning of or understand the experience of a

given situation to a group of individuals, then qualitative methodologies would be

appropriate (Strauss & Corbin, 1998; Symon & Cassell, 1998, Thomson, 2004).

Qualitative analysis strategy lends itself to a research design that utilizes

qualitative methods to collect the data, analyze the data and draw conclusions

from the data (Thomson, 2004).

Qualitative analysis consists of key elements that are beneficial for the

analysis that will be conducted in this study. Qualitative research consists of

data that is interpretive and is based on naturalistic observations that examine

different roles of everyday life (Obermeyer, 1997). Qualitative research also

provides the ability to capture the point of view and perspective of individuals and

their thoughts on that which you inquire. Finally, the use of triangulation helps

provide an in-depth view of the analysis (Obermeyer, 1997) Qualitative research

will allow the researcher to build an interactive and holistic relationship between

the research subject (Collins, 1992). In this perspective, the research data will

emerge from research interactions and will have a history and a future (Collins,

1992).

50
Data Collection

Data was collected from three different elements, Aaker's (2005) strategic

market management theory, personal interviews with Under Armour executives

and personal interviews with outside branding experts.

The first form of data collection consisted of a case analysis of Aaker's

(2005) strategic marketing management theory. Yin (1984) defines case study

research method as "an empirical inquiry that investigates a contemporary

phenomenon within its real-life context; when the boundaries between

phenomenon and context are not clearly evident; and in which multiple sources

of evidence are used" (p.23). Case studies are important for answering the

"how" and "why" questions (Yin, 1994). Conducting a case-study investigation

usually involves situations where there are more variables of interest than data

points (Kennedy & Luzar, 1999). The case study, like other qualitative methods,

relies on a prior knowledge of the research that is being conducted (Kennedy &

Luzar, 1999).

Strategic Market Management Theory

Using Aaker's (2005) theory, the internal and external environments were

examined. Each of these environments were analyzed using categorically

specific questions.

External Analysis: The external analysis consisted of an examination of

Under Armour's consumers, competitors, market and environment.

51
 Consumer Analysis Points of Examination:
• Consumer benefits
• Major segments trying to be reached
• Largest consumer base
• Most useful consumer in the brand development process
• Consumer value of the Under Armour Brand
• competitive advantage or disadvantage in the marketplace
• changes in the marketplace, i.e. media, technology, that
influence the consumers purchase motivation
• What marketing and promotional methods (product placement,
media buys, sponsorship etc.) utilized for brand develop

Competitor Analysis Points of Examination:

• Existing and potential competitors
• Perception of competitors brand
• Brand's opportunity for growth
• Strengths and weaknesses of your chief competitors
• Current brand strategies
• Competitors price comparison
• Leverage of unmet needs of competitors

Market Analysis Points of Examination:

• Role of the brand in forces reducing profitability in the market,
entry and exit barriers, growth projections, cost structures, and
profitability prospects.
• Industry trends affect on overall strategy
• Key success factors
• Market saturation
• Size of the market
• Growth of market
• Industry stability
• Brand success affect on price points
• Competitive advantage of brand awareness and brand image

Environmental Analysis Question:

• Environmental threats, opportunities and trends

Internal Analysis: The Internal Analysis consisted of analyzing Under

Armour's internal performance and its strategic options.

Performance Analysis:
• Cost associated with brand development
• Strategic decisions made in the development of brand
• Strengths, and weaknesses of the brand
• Culture of the brand

52
 Determinants of Strategic Options:
• Brand enhancement in the eyes of the consumer
• Increase the perception of the brand
• Role of cost in brand development
• Strategic vision
• Alternate brand growth opportunities

Personal Interviews

The next two methods of data collection stemmed from personal

interviews of executives at Under Armour Inc. and outside branding experts. The

personal interview is one of the most useful and effective methods of qualitative

analysis (McCraken, 1998). "A qualitative interview is an interaction between an

interviewer and an interviewee in which the interviewer has a plan of inquiry"

(Baxter & Babbie, 2004, p. 325). Additionally, when trying to analyze and

describe a specific issue, there is no instrument of inquiry that is more revealing

(McCraken, 1988). The interview method of qualitative analysis was the most

appropriate for successful research into understanding the different perspectives

of branding strategy. Qualitative interviews are known as conversations with a

purpose (Bingham & Moore, 1959). This method of research allows the

interviewer to get into the mind of the interviewee to better understand the

thoughts and logic of their decisions (McCraken, 1988). The "qualitative

interviewing design is flexible, interactive, and continuous, rather than prepared

in advanced and locked into stone" (H. Rubin & R. Rubin, 1995, p. 43). The

interview process is used to understand elements that can not be observed

(Baxter & Babbie, 2004).

53
 The semi-structured interview method was used for this research. Semi-

structured interviews consist of generally open-ended questions that the

interviewer wants answered by the information (Baxter & Babbie, 2004, p. 329).

The method of semi-structured interviews allowed for the researcher to have the

freedom to lead the interview in a certain direction if a new thought presents

itself. Semi-structured interviews pose questions designed to elicit the

interviewee's thoughts on the topic of interest. When conducting an interview, it is

appropriate to act as if you have no prior knowledge of the subject (Baxter &

Babbie, 2004). "You should offer yourself as "socially acceptable incompetent"

(J. Lofland & J. Lofland, 1995, p.56).

Kvale (1996) details seven stages in a complete interviewing process:

- Thematizing: clarifying the purpose of the interviews and the

concepts explored
- Designing: lay out the process through which the interviews will be
conducted
- Interviewing: conduct interviews (semi-structured process)
- Transcribing: creating a written text
- Analyzing: determining the meaning of gathered information in
relation to the purpose of the study
- Verifying: assessing the trustworthiness of the materials
- Reporting: written of explanation (p.88)

Interviews were conducted via the telephone, due to the proximity of the

interviewees. "A telephone interview provides the best source of information

when the researcher does not have direct access to the individuals" (Creswell,

1998, p. 124). The interviews were conducted at a pre-scheduled times set up by

the interviewer and the interviewee. After each interview, a follow up email was

54
sent to thank the interviewee and to inquire about the willingness for additional

help if needed. The interviews were taped and then given to a professional

transcriber. The tapes were transcribed by a professional and then double

checked by the interviewer by comparing the tapes and the written transcription.

The transcriber was paid for services rendered.

Coding the data took place after all the interviews were conducted.

Charmaz (1983) explains, "Coding, the initial phase of analytical methods is

simply the process of categorizing and sorting data. Codes then serve as

shorthand devices to label, separate, compile, and organize data" (p.111). The

analysis will consist of three concurrent flows of activity: data reduction, data

display, and conclusion-drawing/verification (Miles & Huberman, 1984). Coding

was lead by the themes collected from the data of the interviews and case

analysis. Themes were coded in specific categories as guided by the data

collected. The process of developing coding categories is one that will begin

during data collection and will continue till after all data is collected (Baxter &

Babbie, 2004). Common themes were drawn from the collected data and

organized according to similarities and differences via data displays. Themes can

be identified through recurring elements through the different methods of data

collection (Spradley, 1980). Themes may include concepts such as core values,

core symbols, basic premises, philosophies, interpretations, developmental

methods (Baxter & Babbie, 2004).

55
 Sample Size

In selecting sample size, it is important to make sure it is big enough to

assure that most of the perceptions of the subject matter are heard or all of the

different important perceptions are made aware of (Depaulo, 2000). When

attempting to determine the appropriate sample size in qualitative research, it is a

matter of judgment based on the researchers experience in evaluating the quality

of information that is collected in regards to the use of the data, the type of

research method and product of the research. (Sandelowski, 1995).The

researcher will grow the sample size until the data collection (e.g. interviews)

uncovers no new data (Douglas, 2003; Goulding, 2002; Locke, 2001, Thomson,

2004).

Sampling decisions should be based on the research methods, the

research goals, the resources that that can be used and other considerations

(Sobal, 2001). If the topic of research is obvious and clear to the researcher then

fewer participants are required (Morse, 2000). It should also be noted, should the

data that is being used is on target, rich and experiential, then fewer participants

will be needed to reach saturation (Morse, 2000).

A key element in deciding the amount of sample size is the knowledge,

ability and expertise of the researcher (Morse, 2000). The more the researcher

knows and understands about the subject the less research is required. As data

is provided to a knowledgeable researcher, the requirement to inquire further with

the subject is not necessary, then if the researcher has little knowledge about the

subject at hand (Corbin & Strauss, 1998).

56
 Sampling should include individuals who have expertise or previous

knowledge of the subject being studied (Thomson, 2004). Selecting experts in

the field of study that the research is based allows for the most effective way in

gathering data. (Corbin & Strauss, 1998; Glaser & Strauss, 1967).

Interviewees

The interviewees for this research were selected based on their expertise

in the field of branding and brand development. There were two separate groups

that were chosen. The first group interviewed was outside branding experts.

These experts were labeled as outside experts because they have not had

involvement in the brand development process at Under Armour, Inc. Each of

these individuals has devoted the majority of their respective professional

careers to the brand management within the context of marketing. They are

considered elite executives in this area. One of the experts has published a book

solely devoted to brand management and all of these experts currently

spearhead brand management for Fortune 100 companies and work for

companies that have consistently been named to Interbrand's yearly list of the

most recognizable brands in the world.

The second group of interviewees were executives from Under Armour

Inc. These executives were chosen based on their experience within the Under

Armour organization, their active involvement in its brand development, and their

day to day operational involvement with the strategic brand management of the

company. These individuals also have years of prior experience of working with

other top brands in the sports world.

57
 Under Armour Executives

For this research, two Under Armour executives were used for personal

interviews. These individuals were selected based on their expertise in the

company's branding and marketing initiatives of the past, present, and future.

The use of Under Armour executives for data collection provides a tremendous

insight in understanding the internal strategies for developing the brand.

Interview questions for Under Armour executives may be viewed on page 59.

Outside Branding Experts

Four outside experts in the field of branding were interviewed. The use of

outside experts provides additional input relative to Under Armour's brand

development and enhances validity and overall strength of the analysis. These

individuals were chosen due to their knowledge and expertise in the branding

process. These experts represent different facets of the marketing environment

including advertising firms, technology, consumer goods and pop culture. Each

of these individuals has spent their careers focusing on brand marketing and the

strategies that lead to developmental success. The interview questions for

outside branding experts may be found on page 60-61.

58
 Under Armour Interview Questions

The numbers after each question indicate the research questions in which
it is designated to address.

1. What has been your strategic brand vision? (1-4)

2. How have you adapted your brand management strategies over the

years? (2,3,4)

3. What strategies do you use to differentiate your brand? Can you

provide examples? (1,2,4)

4. What are your target segments? (1, 2,4)

5. How do you position the brand and market your products to those

target segments? (1,2,4,)

6. How did you determine that you should position your brand in such a

way? (1-4)

7. Over the years you have acquired a significant market share, what do

you attribute that to? (3)

a. How does perception of your brand impact market share? (3)

8. How have your strategies impacted your brand? (1-4)

9. How do you plan to position your brand in the future? (1-4)

10. What are the major challenges and major opportunities facing the

Under Armour brand?

a. How do you plan to address these? (1-4)

11. How would you characterize your brand strategies relative to your

competitors? (1-4)

59
 Outside Branding Expert Interview Questions:
The numbers after each question indicate the research questions in which
it is designated to address.

1. What is the role of branding in marketing a product and in the creating

buyer loyalty? (1,3)

2. What are some of the most effective means for a new company to

position its brand? (1-4)

3. What are some typical strategies companies use to position their

brands?

a. Which of these strategies usually are the most effective? (1,2,4)

4. How have brand management strategies evolved? What would be

some examples?

a. What impact do these strategies have on the consumer? (1,4,)

5. What percentage of a company's market share can usually be

attributed to its brand development? (3)

a. How does branding strategies impact market share? (3)

6. What would you consider modern methods of brand development? (1,

2)

7. What advantage/disadvantage do sport companies have/face when

positioning their products? (1, 2,4,)

8. Relative to Under Armour, how has the company positioned itself in the

eyes of its consumers? (4)

9. What methods does Under Armour employ that you perceive are most

effective in positioning their brand? (1, 2,4,)

60
10. How has the company differentiated its product from its competitors?

(1,2,4)

11. How would you characterize Under Armour's brand strategies

compared to other sport companies and non sport companies? (1,2,4)

61
Triangulation

Triangulation is broadly defined by Denzin (1978) as "the combination of

methodologies in the study of the same phenomenon" (p. 291). Qualitative

interviewing is a useful tool used in triangulation (Baxter and Babbie, 2004).

Lincoln and Guba (1985), explain that the use of triangulation can be a very

important way to establish credibility when conducting qualitative research.

In the social sciences, triangulation can be traced to the work of the use of

Campbell and Fiske (1959) who developed the idea of "multiple operationism"

which they argue that more than one method should be used in the validation

process to ensure that the variance reflected is that of the trait and not of the

method. Triangulation is mostly used as a form of cross validation when two or

more methods are congruent and will result in comparable data. Essentially it is

using multiple methods to examine the same dimension of data (Jick, 1979).

Patton (1990) states that triangulation is a powerful solution to the problem

of relying too much on any single data source or method, thereby undermining

the validity and credibility of findings because of the weakness of any single

method (p.193). "The production of similar findings from different methods merely

provides corroboration or reassurance; the absence of similar findings does not,

however, providing grounds for refutation. This is because different methods

used in qualitative research furnish parallel datasets, each affording only a partial

view of the whole picture" (Barbour, 2001, 116). Information from interviewees

with different perspectives should be analyzed and cross-checked with

information from other sources (LeCompte & Schendul, 1999a). Information for

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interviews can be validated by checking relevant documents that can support

other interview responses (Patton, 1990)

For this study, the method of triangulation was conducted between the

analysis of the Aaker's (2005) strategic market management theory and the

branding literature, interviews of outside branding experts, and interviews of

Under Armour branding experts. The blending and integrating of different data,

as triangulation demands, may be seen on a continuum that ranges from the

simple to the complex (Jick, 1979). For the purposes of this research, data was

tallied via several different data displays in order to build the theories and

triangulate the data. The data displays allowed for comparison across the various

data sources and enabled the researcher to more clearly establish themes and

codes while ensuring the reliability of the findings.

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 Results

This chapter will consist of the results of the qualitative analysis that was

explained in the methods section. This study was conducted to analyze the role

of sport brand management in marketing the sport product, with a specific focus

on the brand management strategies of Under Armour. Using Aaker's (2005)

strategic market management theory as a framework, this study analyzed the

different marketing methods utilized to develop, maintain, and sustain a

successful sport brand. In addition, a case analysis of Under Armour was

conducted using the relevant branding literature and interviews from Under

Armour executives and outside branding specialists.

Data Analysis & Coding Selection

The data analysis alleges that all explanations or theories are derived from

the dataset itself rather than from a researcher's prior theoretical viewpoint

(Glaser, 1967). The selection of data for this research was based on its relevancy

in regards to the purpose of the study. Data analysis should be designed so that

it can be viewed by people other than the primary analyst. For this research,

Pope, Ziebland and Mays' (2000) five stages of data analysis were used to help

develop the results section. A synopsis of the five stages is provided in the

following paragraphs.

The first stage in the data analysis process begins with familiarization.

"Familiarization is the immersion of information into raw data (or typically a

pragmatic selection from the data) by listening to tapes, reading transcripts,

studying notes and so on, in order to list key ideas and recurrent themes" (p. 16).

64
The next stage focuses on the identification of a thematic framework. This

involves "the process of identifying all key issues and concepts by which the data

can be examined and referenced. This is carried out by drawing on a priori

issues and questions derived from the aims and objectives of the study as well

as issues raised by the respondents themselves and views or experiences that

recur in the data. The end product of this stage is a detailed index of the data,

which labels the data into manageable chunks for subsequent retrieval and

exploration" (p. 16). The third stage in the data analysis focuses on indexing.

"Indexing is applying the thematic framework or index systematically to all the

data in textual form by annotating the transcripts with numerical codes from the

index, usually supported by short text descriptors to elaborate the index heading.

Single passages of text can often encompass a large number of different themes,

each of which has to be recorded, usually in the margin of the transcript" (p. 16).

The indexing stage of data analysis is followed by charting. "Charting is

rearranging the data according to the appropriate part of the thematic framework

to which they relate, and forming charts. For example, there is likely to be a chart

for each key subject area or theme with entries for several respondents. Unlike

simple cut and paste methods that group verbatim text, the charts contain

distilled summaries of views and experiences. Thus the charting process involves

a considerable amount of abstraction and synthesis" (p. 16).

The final stage in data analysis is mapping and interpretation. "Mapping and

interpretation involve using the charts to define concepts, map the range and

nature of phenomena, create typologies and find associations between themes

65
with a view to providing explanations for the findings. The process of mapping

and interpretation is influenced by the original research objectives as well as by

the themes that have emerged from the data themselves" (p. 16).

For this research, the researcher familiarized himself with the data by first

conducting a thorough literature review on the theory and philosophies of the

subject matter, brand management. A set of interview questions were developed

based on knowledge of the subject matter. The researcher then analyzed and

critiqued the transcriptions of the interviews that were conducted. After the

researcher was familiarized with the data, it was then interpreted and grouped

into continual frames that existed via an excel spreadsheet. The frames were

then broken down further based on recurring themes and based on the relevancy

each had with the research questions and the past literature. Themes also were

examined through an analysis of each interviewee's response to the interview

questions. Once the frames and themes had been identified and grouped by the

researcher, they were then interpreted based on the data that emerged.

Methodologies that require the gathering of verbal data can sometimes

overwhelm the researcher's information processing capabilities (Mayer, 1991).

Because of this, data displays are often utilized. Viewing data displays helps the

researcher better understand what is happening, and allows for further analysis

to take place based on that understanding (Miles & Huberman, 1984). "A data

display is an organized compressed assembly of information that permits

conclusion drawing and action" (Miles & Huberman, 1994, p. 11). The use and

creation of displays is not without analysis, as the displays are just a part of the

66
analysis (Miles & Huberman,1994). Data Displays have been used in this study

and are presented in this section as key points of the data analysis.

Coding is a technique that replicates and validates inferences made from

the data and its context (Krippendorff, 1980), and is an integral first step in the

process of moving the research from conceptualization to description. LeCompte

and Schensul (1999b) defined codes as "names or symbols that are used to

stand for a group of similar items, ideas, philosophies, that the researcher notices

in his or her data set" (p. 55). Coding the data also allows for a better

understanding of the different views and interpretations of the different data that

is gathered. The coding categories reflect the content of data collected rather

than the questions on the interview schedule or focus group topic guide and often

use concepts or vocabulary borrowed from respondents (Barbour, 2001). Codes

that emerge from the data assist in evaluating the data so that it may be easily

analyzed by the researcher. The frames in this study emerged from the data and

were used as a coding scheme for further examination. Essentially, the frames

that were discovered from data examination became the codes, and from this the

themes emerged.

Qualitative coding is often referred to as an emergent and iterative

process. This is because with qualitative research, categories emerge from the

data units and categories of data are then compared and examined to other

categories of data (Baxter and Babbie, 2004). The frames and codes for this

research emerged from the data, and the themes emerged from the frames. The

frames were taken directly from the data, not allowing for subjective

67
interpretation. Having the frames emerge from the data and keeping them close

to the data increases the reliability of the findings.

Emerging Frames and Themes

The dialogue and evidence in social research is guided by the use of

frames. An analytic frame is an outline or guide of an issue. It may be used to

articulate or describe the information gathered in a table (Ragin, 1994). Frames

formed the basis of the coding scheme for this research and several themes

emerged. These frames and emerging themes are discussed in greater detail on

page 70 and displayed in the Appendix on page 221.

"The concept of theme is critical to the accurate interpretation of

qualitative data" (De Santis & Ugarriza, 2000, p. 351). Several themes emerged

from the frames of this research. These themes highlighted several perspectives

and important elements central to the brand development process and are

discussed in subsequent paragraphs on pages 70-89.

Amongst qualitative researchers, it is believed that themes develop from

the concepts and data that are collected from analysis of interviews, observations

or other forms of qualitative analysis (Agar, 1979; Bernard & Ryan, 1998;

Emerson et al., 1995; Germain, 1993; Leininger, 1985; Morse & Field, 1995;

Patton, 1990, and DeSantis & Ugarriza, 2000). Themes emerge from continued

analysis of the emerging frames, and they may center on particular phrases,

incidents, thoughts, and types of behavior (Pope, Ziebland, Mays, 2000). In

qualitative research texts, themes have several different definitions. Brink &

Wood (1994) define "theme" as a term to denote the fact that the data are

68
grouped around a central theme or issue" (p. 215). Steubert & Carpenter (1995)

explain research themes as something "used to describe a structural meaning

unit of data that is essential to presenting qualitative findings (p. 317). Polit &

Hungler (1997) define a theme as a "recurring regularity emerging from the

analysis of qualitative data" (p. 470). Finally, Wilson (1993) defines thematic

analysis as a "strategy in phenomological research that involves recognizing

common themes in textual data" (p. 342).

The common themes for this present research emerged from a

combination of sources. The first source for theme development stemmed from

the literature and the research conducted on brand equity and brand

development, which was based on Aaker's (2005) Strategic Market Management

theory. Data Display I was utilized to specifically examine the elements of brand

equity. This data display was used to discover any themes that emerged from

both the literature and the interviews that were conducted. Data display I may be

viewed on page 222 The second source utilized for theme development were the

interviews of outside branding experts in the field and the third source consisted

of interviews of branding executives from within the Under Armour corporation.

The responses to these interviews were analyzed, and the frames and themes

that were discovered are presented in Data Display II and III, respectively. Data

display II may be viewed on page 226 and data display III may be viewed on

page 238. Data Display IV shows the frames and themes that emerged from the

outside branding experts interviews in relation to the research questions

presented. Date Display V shows the Under Armour executives interviews as

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each relates to the research questions presented. Data Display IV and V can be

seen respectively on page 249 and 255. Each of these themes was collected

singularly then compared and contrasted with each other.

Frames and themes emerged from each set of data. These are discussed

in great detail in the following pages.

Emerging Themes and Frames from Outside Branding Experts

From the interviews with outside branding experts, five frames emerged

as key points: audience/consumer, brand, brand message, message vehicle and

differentiation. From these frames, several themes became apparent. The

individual themes of knowing the consumer, understanding the brand,

understanding the brand's message, using the appropriate vehicle for the

message, and differentiating from competitor's brands emerged from the frames.

These themes are presented in the following paragraphs.

Knowing your consumer

After gathering the data, one of the prevalent frames that emerged was

the idea of understanding and knowing your consumer. This concept is highly

important in the current marketplace. With the increase in brand competition as

well as the increase in vehicles to promote the brand, understanding the target

consumer is central to effective branding. As noted by one outside branding

expert "they (consumer) want to feel like they're being taken care of. I think it's

got to be about supporting a brand image" (Outside expert A). Knowing the

consumer allows the company to target the appropriate group, which is the key in

developing specific strategies in reaching them. "There is better targeting, which

70
is a great development....you can target so much more specifically" (Outside

expert C). Understanding the consumer provides the opportunity for the brand

development process to be effective and to connect to the target consumer. It's

[brand development] where consumers meet, especially the younger consumer

right now, and where they develop their brand loyalty. Understanding where

technology is going, where the consumer is going, and you have to be on the

front edge of creating and owning the lifestyle. People are expecting a lifestyle

experience" (Outside expert A).

For brands to grow and to be successful, the consumer must feel

connected to the brand. They have to create a familiarity with the brand that

seems like a friendship. "I think you can think of a brand very similarly to that in

the sense that it is the sum total of all of the things that create interactions with

people. And that's really how they determine whether that's a relationship they

(consumer) want to be engaged in or not... it's (brand) one piece of many

interaction points you will have with the consumer. So, I think in that case, the

product name says something about the brand in the same way that the color

would, the price point would. You would basically go through your memory bank

and it would be the sum total of your impression of that person: the way they

dress, they way they carry themselves, the way they talk, etcetera... And that's

really how they determine whether that's a relationship they want to be engaged

in or not" (Outside expert D).

The more branding executives understand their consumer the better they

can create an emotional connection, and that connection is a critical element in

71
the brand development process. "If you can find a point where I have both an

emotional benefit and a functional benefit, and ideally those things are linked,

then I think you have a really powerful positioning there, that can not only kind of

cut through the clutter in the marketplace, but also be sustainable. Because it

isn't solely based on the functional benefit of the product. I think segmentation

studies are a very important place to begin, because it helps you get a sense of

where there's wide space in categories. It helps you get a sense for the roles that

different brands have. But it's very key in terms of how you set those (roles) up.

Collectively, it's such a -you sort of combine that with sort of the emotional

resonance or attachment people have to the brand" (Outside expert D). As these

results indicate, understanding the consumer is imperative in building a strong

foundation for brand equity.

Understand the brand

Understanding the brand emerged as a theme that plays an integral part

in the brand development process. As the research continued there were

several themes that emerged from this frame. The results of this study illustrate

that understanding the brand and what it represents are extremely important

aspects of brand management and should be conducted before moving forward

with marketing and other communication objectives. "I think that's

(understanding the brand) the first thing that a company or, whomever you are,

have to establish first; it kind of sets the overarching direction for the company or

for the product, for the marketing, for everything that you're going to do to

communicate to the consumer" (Outside expert C).

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 The more executives understand the brand the easier it is to align

strategies with other marketing objectives to reach the consumer. Strategies like

segmentation can be helped by understanding which consumers are being

targeted and what message is most appropriate in reaching them. "I mean a lot

of the rational things, if you look at categories, you could say well, branding was

never really important, and if you said that, I would expect that the lowest priced

products would be the biggest and the ones drawing the quickest, and the exact

opposite is true in a lot of image-related categories" (Outside expert D). "It's

certainly important to have a consciousness of the brand as you're building

something" (Outside expert B). "I think segmentation studies are a very important

place to begin, because it helps you get a sense of where there's wide space in

categories. It helps you get a sense for the roles that different brands have. But

it's very key in terms of how you set those (roles) up. Collectively, you sort of

combine that with sort of the emotional resonance or attachment people have to

the brand" (Outside expert D).

Understanding the brand also provides the organization with a framework

for where the brand should fit. A complete understanding of the brand is a must

when it comes to creating brand development strategies. Understanding the

brand influences how the corporation examines brand price points, target

markets, vehicles for delivering the brand message, primary consumer

demographics, consumer attitudes toward brands, and the clutter in the

marketplace. "It's an interesting chicken and egg question, a lot of people would

argue, and I would agree with, that it isn't so much that the product is so great

73
and therefore people are willing to tolerate the price point. Given that a lot of

times in the super premium parts of these price points, people are trying to

project this image of success or achievement, the price point is actually the thing

that drives the perception of quality" (Outside expert D).

Understand the brand message

Only after branding executives fully understand their brand can they really

develop their brand message and communicate this message to a specific target

market. Through continued analysis, the frame of understanding the brand's

message emerged from the research. From this frame several themes emerged.

These themes are discussed in the following paragraphs.

Understanding the brand and the brand's message helps an organization

maintain a consistent communication between the brand and the consumer.

Consistency is a key element in the brand development process. "It's certainly

important to have a consciousness of the brand as you're building something.

And mostly for the sake of consistency, you know? So people, everybody

understands that you have one message and represent kind of one idea (Outside

expert B). That's definitely (consistency in brand message) important, and I think

that's sort of again, how could you be consistent if you didn't really know what

you even were working toward" (Outside expert C).

Understanding the brand's message and how it relates to the consumer

can play an important role in creating brand loyalty. "I think it (brand message)

has to be about supporting a brand image. And I think it definitely creates a

loyalty" (Outside expert A). When communicating the brand message, it is

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important to understand the brand attributes and what the consumer associates

with the brand. The brand's attributes and associations must be aligned with an

organization's overall brand strategy. "Branding is done through association with

various attributes of the brand. That's where your value comes on the sports

side, with branding, is that you have got to make sure your messaging is dead

on. I'd figure out what they are, and that's where I'd enter. I think the big thing

now, and something that's very effective, is owning your own" (Outside expert A).

"Being conscious of what your brand stands for and how people perceive it is

different than promoting it" (Outside expert C).

Understanding the message becomes a critical part in the branding

process. The message that a brand conveys to the consumer is often the lasting

image that remains in the consumer's mind. This message may be all the

consumer will know about a brand, and it influences their awareness and

perception of the brand. This perception can be positive or negative. Regardless,

it will impact the financial viability of the brand. "From a branding perspective,

the way it influences a consumer and their buying habits, I definitely think that if

you've got the right brand and you're communicating it in the right way - whether

it's kids, or whoever your focus, your target is, I definitely think that influences

(purchasing decisions)" (Outside expert, C).

Use the appropriate vehicle to carry your message

In today's crowded marketplace and media driven world, the method for

which a brand's message is carried is extremely important. Another frame that

emerged from the research was the importance of using an appropriate vehicle

75
to carry the brand message. From this frame several themes emerged, and

these are discussed in the subsequent paragraphs.

In order to select the most appropriate vehicle to drive the brand's

message, executives must know where the consumers are and how they can be

reached. Today, numerous vehicles exist to reach the consumer, but there are

also many ways to get lost among the noise of the marketplace. This makes it

essential to deliver the brand message in the most appropriate and effective

manner possible. It is better to have the consumer see and feel the brand on

their own rather than have the consumer feel forced into feeling the brand. This

was clearly stated by one interviewee. "It is important to create those interfaces

in a way that isn't me kind of yelling my message to them, but rather I'm looking

for opportunities to weave my brand into their life, their social fabric, in ways that

are sort of inviting it in as opposed to me shoving it at them. And I think that's

really, really different mindset. It's like building a relationship basically. So, at the

end of the day it is trying to understand the consumer, whether you're doing a

text message, you're still doing the advertisement and the newspapers and the

quote unquote tradition stuff, via sponsorship" (Outside expert D).

As the data analysis neared completion, it was evident that the importance

of traditional public relations was considered a major aspect in successful brand

development and management. It has been proven to be the least expensive

method for generating awareness and communicating a message, and it can be

controlled by the corporate entity itself. "I can't imagine if I was launching

something, from the ground up, ever spending a penny on any of those (multi)

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media right off the bat. I think always if you're new, and your budgets are limited,

PR is always the best way to go" (Outside expert B).

Television has also continued to be a critical element in the development

of brands. But unlike the use of past television advertisements, the modern day

opportunities that are utilized now allow for a more focused method of reaching

the consumer. "Both in cable and with the internet. So as much as you have

people talk about fractured media and now you have to go so many more places

to reach the same amount of people, you can target so much more specifically

with all of those media, it's terrific. There is more of a focus, a lot less wasted

media dollars" (Outside expert B).

Sponsorship continues to be a method for which a brand can develop and

reach specific consumer groups, but it is becoming more important to leverage

and to activate these sponsorships to work for both properties. "Because they're

trying to make it (sponsorship and events) a more engaging experience. But if

you're out there, and you're a new product, and you're trying to enter, and you're

looking for what's the next thing people are going to catch onto, everything we've

talked about right now is so much a part of American culture that I think it's

difficult for sponsors to differentiate themselves. Definitely there is a lot of

crossover there between your brand attributes versus I guess the synergy that

you have with whatever you're sponsoring....Most of the people will pay the price

(for premier sponsorship). Because they want half the clutter now. People are

expecting a lifestyle experience now when they go to events. Events are trying to

make it a more engaging experience... find a program that works for the

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company, and it works for the other partners, and we'll pay a little bit more for it.

And a lot places are charging even a premium above that. Do it right. Do it right

and service them and make them happy" (Outside expert A).

With the value that traditional media still play in the process of brand

development, the emergence of new media platforms has started to have an

impact on the success of the brand. There are several modern technological

advancements that have helped branding executives deliver their brand

message, like the internet and viral strategies, mobile phones and even in-

stadium technology. Each of these methods are utilized to deliver unedited

brand specific messages to the target consumer. These new methods make it

easier for brands to communicate directly with the consumer. This helps in

building a connection with the consumer and the brand, which helps increase

word of mouth marketing and brand loyalty. "Technology provides better

targeting, which is a great development. Both in cable and with the internet. So

as much as you have people talk about fractured media and how you have to go

so many more places to reach the same amount of people, you can target so

much more specifically with all of those media, it's terrific. There is more of a

focus, a lot less wasted media dollars" (Outside expert B).

"Things are becoming more geared towards the internet and mobile after

that. Yeah, as phones becomes fast and speeds become faster and they develop

phones that open up and have larger screens and things" (Outside expert B).

We're doing a lot of virtual stuff. I think the mobile and definitely a lot of stuff

around the web, I think the viral - especially for teens, like letting them know - it

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seems like word of mouth from their own peers is pretty influential. That's a big

thing for us, consumer experience" (Outside expert C).

Even though there has been an increase in the development of modern

technology, the traditional methods of television, radio, and print are still effective

means of brand communication. "I think TV is still the most widely used, for

legacy reasons, you know? So, as much as people talk about the fact that TV

doesn't work and it's over saturated, and all this stuff, it's still the most money is

still buying television and print and radio, you know?" (Outside expert B). The

difference today is these time honored vehicles are utilized in a more specific and

modern way. Branding executives' strategies have become much more focused

on differentiating themselves from the clutter of the marketplace. "We can do TV

advertising on cable, a lot of cable stations and we have traditional avenues of

out of home and print. It's interesting, I think if you look at how consumers

engage with brands and each other, it has probably changed more in the last

fifteen to twenty years, especially with the advent of online, social media and the

way that people interact. It's probably changed more dramatically in the last

twenty years than in any other time in history, recent history. And yet marketers

really continue to approach things in a very traditional way. So everybody will talk

about, well, I have this web strategy, but it's always, but it always feels like it's a

bolt on. It's like, I'm doing all this other stuff, but then I'm doing this cool web

thing. So I still have advertising and I still have sponsorships, and I still have

sampling programs and I kind of do this web thing. I'm really just going to think

about all of the ways that my brand sort of interfaces or touches consumers"

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(Outside expert A). "I'm really just going to think about all of the ways that my

brand sort of interfaces or touches consumers. And I want to create those

interfaces in a way that isn't me kind of yelling my message to them, but rather

I'm looking for opportunities to weave my brand into their life, their social fabric, in

ways that are sort of inviting it in as opposed to me shoving it at them. And I think

that's a really, really different mindset. It's like building a relationship basically.

So, at the end of the day it is trying to understand the consumer, whether you're

doing a text message, you're still doing the advertisement and the newspapers

and the quote unquote tradition stuff, via sponsorship" (Outside expert D). "I

would totally say that (TV) was our biggest vehicle to kind of the - trying to put it

(brands) into buckets. So, there's the running - we've prioritized. There's so

many things we can be into. We can be into basketball, running, sport culture,

team sports" (Outside expert C). This illustrates the effectiveness a synergistic

approach to blending traditional methods with modern technology can have in

building strong brand equity.

Another theme that emerged from this frame was the success and power

of personal endorsement of the professional and experienced individual who

uses the product. The use of professional endorsement of individuals who are

deemed by society to be experts in a certain field establishes credibility for the

product. This method is successful when it is grown organically and not just

"shoved in the face" of the consumer. Letting the brand grow organically allows

for consumers to feel as if they have a relationship with the brand. This organic

growth is developed over time. "It's another thing when there's a real organic

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connection and the athlete or the artist is a true supporter of that brand. That's an

authentic relationship that I think translates. When it's organic it gives it

tremendous credibility for sure" (Outside expert B). "But I think it's that kind of

classic hey, I've got world class athletes who are, who can really make the

decision to use any products they want, and they are going to use what they feel

like are best, and if that product is working for them, it is a pretty clear signal that

this would be a great product for me, even in my sort of more casual state of

exercise" (Outside expert D). "Personal endorsement, it's so big these days"

(Outside expert A). "My sense, the whole sort of athlete association piece, is

kind of what I remember the most (of Under Armour commercials), but I felt like it

was intense in a bit of an understated way. Kind of like, these products can stand

up under the most intense conditions" (Outside expert D).

Differentiating the brand from competitors

Another frame that emerged from the research was the importance of

differentiating the brand from other competing brands and brand messages.

From this frame emerged several themes. These are discussed in the following

paragraphs.

Today, the marketplace is more cluttered than ever before with several

different brands in the same category. Some are large and others small, so it

becomes critical to differentiate one's brand image and message in order to

influence consumers' purchase decisions. In today's crowded market, brands will

pay for the right to stand out when compared to competitors. This becomes a

benefit for both parties as the sponsor has exclusivity for a premier property, and

81
the property can charge more for exclusivity. "People will pay the price (for

premier sponsorship), because they want half the clutter now" (Outside expert A).

In trying to differentiate the brand, it is imperative to reach the consumer

directly. Brands that communicate directly to the consumer allow for a more

intimate connection making the product stand out among its competition. "I

believe in finding ways, in this sense, to create organic consumer experience, to

sort of align with ambassadors, so to, speak who are true fans of the product.

Because otherwise you just don't have that connection (with the consumer) and it

just doesn't translate the same way" (Outside expert B). "I'm really just going to

think about all of the ways that my brand sort of interfaces or touches consumers.

And I want to create those interfaces in a way that isn't me kind of yelling my

message to them, but rather I'm looking for opportunities to weave my brand into

their life, their social fabric, in ways that are sort of inviting it in as opposed to me

shoving it at them" (Outside expert D).

Differentiating the brand from other competing brands can have a

significant impact on the brands market share. "From a branding perspective,

the way it influences a consumer and their buying habits, I definitely think that if

you've got the right brand and you're communicating it in the right way, whether

it's kids, or whoever your focus, your target is, I definitely think that influences

(purchasing decisions)" (Outside expert C). The consumers may not be fully

aware of market share, but it likely influences their perception of the power and

quality of the brand. The more a brand is exposed to consumers, the more it

influences their purchase decisions, which often leads to an increase in market

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share. "Absolutely (branding can impact market share). I mean there's a big

difference between the act of branding and marketing. Branding is the act of

creating an identity and marketing is the act of promoting it" (Outside expert B).

Emerging frames and themes from Under Armour Executives

After conducting this analysis of the interviews with Under Armour

executives, five frames were determined: differentiation, consumer/audience,

promotion and marketing, opportunities, and brand positioning. From these

frames, the individual themes of differentiation of the brand, understanding and

knowing the consumer, significant promotion and marketing of brand, seizing

opportunities to own the market, and brand positioning emerged. These themes

are discussed in the subsequent paragraphs and highlighted in Data Display 3 on

pages 238-240.

Differentiation of brand

The importance of differentiation in the marketplace cannot be overstated.

The marketplace is crowded and cluttered, and to survive and flourish, brands

must be distinguishable from their direct competitors. From within the frame of

differentiation, several themes emerged.

One method of differentiation is to create a brand image that rings true and is

authentic with the consumer. This message must remain consistent throughout

the lifetime of the brand. Creating and maintaining a consistent brand message

makes it conducive for synergy between products to occur, and it allows the

consumer to know exactly what the brand represents. A consistent brand image

limits the chance of confusion between other products or brands that may be

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similar in the marketplace. "Under Armour must and always will stand for

performance. And that is our brand vision" (Under Armour A). "We're still small,

we can be focused and crystal clear. And I think that's one of the ways we

differentiate ourselves. You'll see us go to market with a single point of view, and

that single point of view will carry us through the entire year" (Under Armour A).

Under Armour executive B explained "I think it's always being authentic. Always

being viewed as cool and cutting edge and not "me too." I think that's the way we

do it (differentiate), by being who we are and not trying to be anybody else." "We

break through and differentiate ourselves by having a singular crystal clear focus

and that we run through our entire, all of our business categories, under one

single brand umbrella" (Under Armour A).

The next frame that emerged from the Under Armour executive interviews

was the importance of understanding and knowing the consumer. In order to

appropriately disseminate the brand's message, brand developers must

understand the target audience. This allows the brand to maintain a competitive

advantage and maintain its viability at all stages in the product life cycle. "Our

(Under Armour) primary and dominant focus is on that teenage team sport

athlete, male and female. That's where we want to continue to resonate and

resonate well, because we feel like they will continue to grow up with our brand

and continue to buy our brand as they get older in life" (Under Armour A). "We're

more the team first kind of guy. We go for the lunch pail guy. The guy who's

going to show up early at the gym and stay late. "The guy that everyone on the

team respects and looks up to. He may not be the glamour guy, but he's the guy

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that carries weight in the locker room" (Under Armour A). Both Under Armour

executives relate the importance of the brand reaching the important youth

demographic, this was supported by Under Armour executive B, "we really go

after the high school kid. Our target audience is a real competitive athlete. On the

women's and on the boys and girls side, fourteen to twenty-four. We try to win

them to where little brother or little sister looks up to big brother and says, man, I

want to wear that stuff." Under Armour executive A stated "the other thing you

can say is, we're the brand of this generation. And that's ultimately what our

position is, too... we want to make sure that we continue to position ourselves

and attract that kid and never alienate him or her, so that we continue to be their

brand, the brand they built, the brand they discovered, and the brand that they

wear with pride because they were the ones who first adopted it and helped us

become who we are today".

When you promote or market your brand or do it in a significant way

Under Armour makes it a point to promote, market, and advertise in a

significant way. The use of big, loud promotions is a specific way that generates

a buzz and excitement for the brand. This method of attention is prominent in the

communication efforts of Under Armour. "When you see us do something, we

typically do it in a significant way. We're not just checking off boxes that say,

okay, we hit our media spend, we hit our digital spend, we hit our print spend. We

do things in a significant way. Subtlety is not our expertise. And the saying here

is, big bets with big partners. In retail, we go big. We don't hold back. Our fixtures

are not made cheaply. You know, we have very strong, durable, in your face

85
displays and similar graphic strategies, as well that show up on the floor and

again, they make an impact. They make a difference. I would just put it this way,

we aren't everywhere, nor will we ever be, but we find ways to partner" (Under

Armour A).

When you see an opening in a market own it

A key frame that emerged from the interviews with Under Armour

executives was the company's ability to find a vacuum in the market and take full

advantage of it. If a company can find a void in the marketplace and develop a

product and brand image to fill that void, it then becomes synonymous with that

market and product category. The capitalization of this type of opportunity led to

continued brand success and builds loyalty among consumers. Both Under

Armour executives describe the importance of owning the market. Under Armour

executive B makes the point that the Under Armour brand has developed to be

the name of the category itself, "We get credit for being first to market. When

competitors enter our market space. But I also think that we're known as the

Kleenex. When you want a tissue, you don't say I'd like a hand tissue, you know,

I want a Kleenex. That's what you ask for. And a lot of these equipment rooms,

you know, I need an Under Armour. And that means in a lot instances you're

asking for a performance t-shirt. In a lot of instances its compression." "Under

Armour is the bellwether definition for the word performance apparel" (Under

Armour A). "The strategies over the years, you will see that we've grown from

being a tight t-shirt company to being a performance brand that sells loose-fitting

product, that sells product for women, sells product for kids, sells product for your

86
feet, sells product like sunglasses, batting gloves, football gloves. There was an

opportunity that was not being tapped, we filled a vacuum. There was an

opportunity. He (Kevin Plank) took it. First mover, opportunity gives you the

chance to build that equity. And then if the competition takes too long to move

into the space, and you're able to scale fast enough to secure it, then you get to

own it" (Under Armour A). The analysis and results indicate that Under Armour

recognized an unmet need in the marketplace, and developed a product to

capitalize on this opportunity.

Positioning the brand is important to overall brand development

The Under Armour executives' interviews provided much insight into the

importance of positioning and the role it plays in developing the brand. The

method of brand positioning can be influenced by the manner in which the brand

message is delivered, by product quality, by brand promotion, by brand

awareness and by brand perception. From within this frame several themes

emerged. These themes are discussed in the following paragraphs.

The Under Armour brand is developed with quality first. The brand has

experienced success due to the quality for which the product is made. "The idea

and concept (of Under Armour gear) was built to be tough enough to withstand

the demands of the football field, the gridiron. Consumers adopted it, knowing

that hey, if it's tough enough for their needs, it's gonna get me through my four

mile run, or help me with my workout. It's going to help me be better at my sport

(Under Armour A). The brand image of top of the line products that can withstand

anything, help develop a level of authenticity to the brand, which fostered further

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brand development. "It (Under Armour product) started by positioning the brand

in the locker room, and team dealers out there, from a retail standpoint. To build

the authenticity from the ground up. And we've continued to build upon that. The

media deals that we do, we cut very focused buys that are going to be with

minimal waste. So that helps maintain a premium positioning, but it also helps us

focus our funds in support of what we do at retail, to show up in big, significant

ways, and be powerful in our presentation" (Under Armour A). To further the

importance of authenticity in the brand Under Armour Executive B stated, "from a

branding perspective, it all starts and ends with authenticity. If we're not on the

field of play in whatever important arena we're trying to enter, we don't stand a

chance because there will be no reason for people to try our products."

A critical element in positioning is to understand how and where the brand

should reach the consumer and in doing so, not over saturate the market. Being

selective in what opportunities to pursue strengthens the brand, as all

opportunities do not have the same potential for return on investment. "The

saying here is, big bets with big partners. In retail, we go big. We don't hold back.

Our fixtures are not made cheaply. You know, we have very strong, durable, in

your face displays and similar graphic strategies, as well that show up on the

floor and again, they make an impact. They make a difference. I would just put it

this way, we aren't everywhere, nor will we ever be, but we find ways to partner"

(Under Armour A).

Positioning can have an impact on the bottom line and the financial stake

in the market share of a brand. If the brand is perceived as a high end brand and

88
the consumers believe this brand message, the price points will be higher. This

increases total revenue and the prestige of the brand. According to the Under

Armour executives "We (Under Armour) are considered on the men's side, their

premium apparel. And we're their high priced apparel. And we're positioned as

such" (Under Armour A). Under Armour executive B supported this noting, "Yeah,

(perception) well it certainly helps you extend your product line., you know, you

can extend your product lines out if you've got a really solid position that you're

starting from, and you're working from, and if that position is one that's premium

and they value the dollar they pay for it".

The frames and themes that emerged from the interviews of both outside

branding experts and Under Armour executives resulted in several important

findings. The key frames that emerged from the interviewees were knowing the

consumer, understanding the brand, understanding the brand's message, using

the appropriate vehicle for the message to make a significant impact in delivering

the brand message in a significant way to own the market. Each of these frames

had several themes emerged that help support the similarities between the two

groups of interviewees.

Aaker's (2005) Strategic Market Management Theory

Aaker's (2005) strategic market management theory provides a theoretical

structure for examination of the external aspects of a brand based on the

competitor, consumer, market, and environmental perspectives. Aaker's (2005)

theory also analyzes the internal elements of a firm based on the performance of

the brand and the understanding of the strategic options that are required to

89
achieve success of the brand. This theory provided the framework for this

analysis of the Under Armour brand. The results of this analysis are presented in

the following pages.

External Analysis

Consumer Analysis Points of Examination

Consumer Analysis is conducted to gain a better understanding of the market

segments that exist, consumer motivations, and the exploration of the market's

unmet needs (Aaker, 2005). To perform the consumer analysis, several key

points were examined. These points are listed here and discussed in detail in the

subsequent paragraphs.

• Consumer benefits
• Major consumer segments trying to be reached
• Largest and most useful consumer in the brand development process
• Consumer value of the brand
• Competitive Advantages and Disadvantages in the marketplace
• Changes in the marketplace, i.e media, technology, that influence the
consumers purchase motivation
• What marketing and promotional methods were utilized for brand
development

• Unmet needs

Consumer Benefits

As noted in Under Armour's mission statement, "Every Under Armour product

is doing something for you: it's making you better" (Underarmour.com, 2008).

When interviewed, Under Armour executive B further explained "our brand

mission is literally to make all athletes better through passion, science and the

relentless pursuit of innovation". Under Armour executive A supported the brands

mission statement when interviewed, "Consumers adopted it (product), knowing

that hey, if it's tough enough for their (professional) needs, it's gonna get me
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through my four mile run, or help me with my workout. It's going to help me be

better at my sport"

The Under Armour product line is divided into three specific categories each

meant to benefit the active consumer in different environments, Heat, Cold, and

unpredictable/changing environments:

• HeatGear:

o Is designed to be worn in warm to hot temperatures under

equipment or as a single layer to wick moisture away from the body

to keep the body cool and comfortable.

• ColdGear:

o Is designed to wick moisture from the body while circulating body

heat from hotspots to maintain core body temperature and a warm

body core. Tight muscles restrict movement and leave one

vulnerable to injury. The double-sided fabric of Under Armour

ColdGear disperses heat from the warmer areas of the body in

order to deliver the ultimate base layer to keep one dry and to allow

the body to maintain its core temperature.

• AIISeasonGear:

o Is designed to be worn in changing temperatures. Under Armour

All Season Gear features a blend of moisture transport and

temperature control, which allows the shirt to flex between the heat

the body experiences during active participation or the coolness the

body experiences at times of rest.

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 Under Armour prides itself on providing apparel that is of premium quality

meant for all active individuals. "Give them more than they are expecting to get

from this good. Beyond that, at the end of the day, what it really comes down to

is the build. And I'll challenge anyone to build a better product than ours" (Under

Armour A). "It came out as a product designed and built by and for

professionals. This isn't recreational gear. This isn't something your mom wears

to go to the store Sunday morning. This is performance wear" (Outside expert A).

Every product that is produced is created with the athlete and their performance

in mind. "Our brand mission is literally to make all athletes better through

passion, science and the relentless pursuit of innovation."(Under Armour B)

"Consumers adopted it, knowing that hey, if it's tough enough for their needs, it's

gonna get me through my four mile run, or help me with my workout. It's going to

help me be better at my sport" (Under Armour A). "I feel like there are people

who are sort of hardcore, serious athletes, performance clothing is probably not a

new idea, but I feel it was probably a relatively narrow niche and I think they've

done a really nice job or sort of expanding that to say even the person who just

runs three or four times a week can really benefit from clothing that wicks

moisture" (Outside expert D).

Primary Target Segments

Under Armour currently targets professional, collegiate and Olympic

teams and athletes, active outdoor enthusiasts, elite tactical professionals, and

consumers young and old with active lifestyles (underarmour.com, 2008). At its

inception, the Under Armour brand was focused on elite football players. Initially,

92
the focus was to assist football players during competition and workout sessions.

Under Armour recently has shifted its central focus from the active male athlete

to a larger consumer segment, the valuable youth market. As the brand has

been developed its target consumer shifted to those young athletes who desired

to be like the active older male athletes that were seen working out in Under

Armour products. "Our primary and dominant focus is on that teenage team sport

athlete, male and female. That's where we want to continue to resonate and

resonate well, because we feel like they will continue to grow up with our brand

and continue to buy our brand as they get older in life" (Under Armour A). The

Under Armour executives make the point that the importance of personal

endorsement from all active athletes, not just professionals, is important in

reaching its target. "We really go after the high school kid. Our target audience is

a real competitive athlete. On the women's, and on the boys and girls side,

fourteen to twenty-four. We try to win them to where little brother or little sister

looks up to big brother and says, man, I want to wear that stuff." (Under Armour

B).

Largest consumer base

When analyzing Under Armour's 2007 financial statement the adult male

segment is responsible for over 57% of net revenues (Under Armour 2007

Financial Report, 2008).

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 Consumer value of the brand

The consumer value of the Under Armour brand can be considered

extremely high. This is evident in the consistent increase in total revenues since

2003 to 2007. This increase is illustrated in Table 1:

Table 1

Total Revenue in Millions from Fiscal Years 2003 - 2007

(Think Equity Partners, 2007)

The steady increase over time and continued market lead directly relates

to the consumer's consistent consumption of the brand. This continued

consumption is an indication of brand value in the eyes of the consumer.

Sethurman & Cole (1999) explain that consumers will pay a price premium and

continue to purchase brands that they consider to have high amounts of

consumption pleasure. As illustrated in Tables 3 & 4, Under Armour holds 78% of

94
the compression market and 43.7% of the performance market share. Under

Armour is the market leader in both categories.

Another indication of high consumer brand value is the continued growth

of sales in the men's, women's and youth market categories. According to equity

research on Under Armour, in Q3 of 2007 sales of men's, women's, and youth

apparel increased 43%, 49%, and 51%, respectively, while accessories

increased 101%. Core men's compression and loose-fitting apparel continue to

outperform expectations, while growth in newer categories such as training, golf,

and outdoor are contributing meaningful growth" (Wachovia, 2007).

The following table, Table 2, show the consistent growth of revenue as it

pertains to the men's, women's and youth apparel. The data was tabulated from

Under Armour's 2007 financial report (2008).

Table 2

Under Armour's Men's, Women's, and Youth Apparel Revenue Growth

$350 000 t
$300
$250:
$200
$150
$100
$50

2005 2006 2007

iMens •Womens DYouth

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 Competitive advantage or competitive disadvantage in the

marketplace

The Under Armour brand has created a strong presence in the marketplace.

The company's strong reputation for providing premium products that perform as

advertised allows Under Armour to maintain a competitive edge over current and

future consumers. Under Armour's ability to "own" the market by being first to

meet the consumers' needs has also placed the company at an advantage

compared to its competitors. "And so owning the lifestyle space that you're

competing in, I mean, it's not even a competition if you own it. Part of it is, where

is technology going, where is the consumer going, and you have to be on the

front edge of creating and owning the lifestyle" (Outside expert A). The brand has

become synonymous with the performance product. As Under Armour executives

explain, the product has established itself as the marquee name for the

performance apparel category. Under Armour executive B explained, "I think that

we're known as the Kleenex. When you want a tissue, you don't say I'd like a

hand tissue, you know, "I want a Kleenex." That's what you ask for. And a lot of

these equipment rooms, you know, I need an Under Armour. And that means in a

lot instances you're asking for a performance t-shirt. In a lot of instances its

compression". Under Armour executive A explained that because of this name

recognition within the category it's important to maintain the high brand

standards. "Under Armour must and always will stand for performance. And that

is our brand vision. The bellwether definition for the word performance".

96
Under Armour's continued growth in the youth and female market also provides a

further advantage in brand power. The growth of target markets beyond the

original consumer of elite football players has allowed for an increase in the

product line. "The strategies over the years, you will see that we've grown from

being a tight t-shirt company to being a performance brand that sells loose-fitting

product, that sells product for women, sells product for kids, sells product for your

feet, sells product like sunglasses, batting gloves, football gloves. The idea and

concept was built to be tough enough to withstand the demands of the football

field, the gridiron. Consumers adopted it, unknowing that hey, if it's tough enough

for their needs, it's gonna get me through my four mile run, or help me with my

workout. It's going to help me be better at my sport" (Under Armour A).

Under Armour executive B explained that reaching the target can be just

as influential using the personal endorsement of those close to the consumer as

using celebrity endorsements. "We came out with a women's line because we

have women showing up to buy men's small and stuff didn't fit right. So we were

like, oh, maybe we had a women's market. And once we had a women's market

established, our numbers were still skewing small because the parents were

buying the smallest they could find for little brother and little sister, because they

wanted to be like big brother, they wanted to be like dad, or whomever it was. So

I think there was always that team sports athlete was always the target, and

we've gotten some ancillary people through that. So we've gotten little brother

and little sister, and women to be honest. And we've also gotten that golfer who,

for some fathers and some mothers Under Armour is a way they can relate to

97
their kids. They come out and go golfing with their kids, and all of a sudden

they're cool" (Under Armour B). This growth in product lines will only enhance the

brand image and allow the brand to leverage its already successful position in

the market.

Another advantage for Under Armour centered on the company's ability to

mold and create its brand image from a grassroots and authentic perspective. It

was able to reach a "new" generation of athlete by providing a novel product.

Unlike more established brands in the market, the novelty of the product allowed

it to move into different market segments. When a brand is well established in

different market segments, it can become oversaturated and lose its perceived

authentic relationship with the consumer. Under Armour was selective in product

development and in its distribution. This reinforced the novelty and authenticity of

the product. "They (Under Armour) kind of had to play that down, and the

advantage was that they were able to kind of go in and kind of start from the

ground up and be real to the kids" (Outside expert C). "I think they've (Under

Armour) done a tremendous job of creating an authentic relationship with

people. However they've done it - I don't really know the story, so it's tough for

me to get into detail. But from my perception, they've done a great job of being

authentic. Of brand, sport and athlete. And that's a really powerful concept"

(Outside expert B). "They have a nice intersection of performance and style,

which I don't really think was necessarily on the radar screen for products that

were produced for athletes in the past, that it was more just about, hey, does it

help me perform" (Outside expert D).

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 Although Under Armour produced a novel and authentic product, a key

disadvantage for the company was the history, the longevity, and the strength of

its existing competition. The company's chief competitor is a brand that is

significantly larger, with a much more storied past. The company has a greater

marketing budget and much larger resources in the areas of research and

development. Its global presence allows it to implement an array of branding

initiatives and a significant consumer base. This competitor's brand also has the

financial ability to consistently compete with new technology, whether it's for

product design or for marketing initiatives. "An advantage for us (competitor), and

this is what we hang our hat on, is authenticity, and having all of the direct ties

into the game" (Outside expert C).

Competing in a cluttered marketplace is also disadvantageous for Under

Armour. Regardless of a brand's leadership in a specific market, it still must

differentiate itself from ancillary brands entering the market. "I think the

disadvantage is probably that, there is so much clutter, that it is probably from

year to year, and not even year to year but season to season, how is it that you

can keep up? I think that's a disadvantage, that you probably have, there's a lot

of noise out there, (most important is) first positioning products" (Outside expert

C).

Marketplace Changes & Promotional Methods Utilized to Develop

the Brand

In the beginning, Under Armour faced the challenge of developing a sense

of brand awareness and brand identity. It utilized several marketing initiatives to

99
target consumers while simultaneously developing its corporate brand image.

These marketing initiatives were strategically aligned with the overall corporate

strategy. The different methods utilized were time honored marketing methods,

but the concept and the ability to leverage the brand was developed by utilizing

modern techniques. With the growth of technology the thought process behind

branding had to shift to a more synergistic way of thinking, which was much

different than traditional marketing and branding initiatives. The primary methods

the company used to break through the clutter in the marketplace included

athlete endorsement via product seeding, word of mouth marketing, and product

placement. These methods are discussed in the subsequent paragraphs.

Athlete Endorsement through Product Seeding

Having confidence in his product, Plank knew that he needed to get his

unique style of performance t-shirts in the hands of the athletes. Then, these

athletes could be utilized as marketing agents. "Plank recruited several of his

friends that were playing college football and in the NFL to use his product free of

cost" (Salter, 2005, p. 97). Plank continued to utilize athletes as walking

billboards by seeding the product to as many as requested it. "When you're

dealing with sports you have iconic figures that you can attach yourself to. So I

think any entertainment sports related business has that advantage" (Outside

expert B). "It's that kind of classic hey, I've got world class athletes who are, who

can really make the decision to use any products they want, and they are going

to use what they feel like are best, and if that product is working for them, it is a

pretty clear signal that this would be a great product for me, even in my sort of

100
more casual state of exercise" (Outside expert D). The outside branding experts

make the point that the strategy of product seeding and letting the product grow

with the athlete naturally was very effective. "Many of the athletes who aren't

sponsored by Under Armour are wearing Under Armour, and that's some of the

best advertisement you can get. They have the athletes personal endorsement,

and in consumer products that's huge" (Outside expert A).

Word of Mouth

Under Armour's method of seeding the product to the athletes helped

increase the word of mouth which quickly elevated the product in the market.

Word of mouth advertising has become a mysterious force in the marketplace

(Arndt, 1967). As more athletes wore Under Armour, a buzz of positive energy

for the product was surfacing in college and NFL locker rooms across the

country. "Because it's a performance gear, and you've got these couple of

performance athletes who are wearing your stuff, the word gets out. They're

under the radar but they've got the word of mouth. And that's where they've got

to keep it going, keep those performance athletes. Keep those performance

athletes in your newest line of stuff and keep pushing edge development"

(Outside expert A).

Product Placement

With a marketing budget far less than that of its competitors, it became

essential that Under Armour leverage any opportunities it could to attract its

target market. It started to infuse its products in over a dozen popular television

shows, several motion pictures, and video games. Table 3 highlights Under

101
Armour's product placement. This use of product placement helped place the

product in a mainstream light and allowed the brand to reach a larger market. In

1998, Warner Brothers studio was working on two football movies and was

searching for an outfitter that would provide a level of authenticity for their actors

(goldmanbros.com, 2003). Shortly thereafter, ESPN entered into an agreement

with Under Armour to use its product in its pseudo-reality show "Playmakers",

which featured the lives of players, coaches, and families of a fictional

professional football team (Dash, 2003). Production companies, television

networks, and movie studios began using Under Armour more and more.

Several athletes who are not sponsored by Under Armour wear Under

Armour, and this has proved invaluable for the company. "Guys aren't getting

paid, but that's great placement. You can't beat that. And that's why the kids want

it" (Outside expert A). "I would see it a lot in terms of athletes pre or post game,

when they might not have had their pads or their jerseys or things like that on,

but they're just sort of chillin' before the game, and it would be more of kind of the

layers they would wear kind of under a uniform or along those lines" (Outside

expert D). "Putting in a behind the scenes brand that, I mean, going off on a

different subject here, but people like to discover things. People love to discover

things. People don't respond well to having things shoved down their throats.

They like to discover things, so the more you can build an organic connection

with your consumers, the better off you'll be" (Outside expert B).

According to Nielsen Product Placement Studies (2008), Under Armour

was the top placed product in Quarter 1 of 2008. This is highlighted in Table 4.

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Table 3

Under Armour Product Placement Rank Q1 2008 on Cable TV

Top 10 Brands for Ql 2008:

Product Placement on Cable TV
Total #
Brand Product Category Occurrences
Under Armour Apparel Apparel 2,960
A Elle Magazine A Magazine '2,429
Orange County Choppers Apparel Apparel 2,264"
Orange County Choppers Motorcycles Motorcycles 1,978
New York Yankees Baseball Team Baseball Team ' 1,155
Big Black Apparel Apparel 1,149
Parsons School Of Design School • 1,117
Metzeler Motorcycle Parts-Access Tires Motorcycle Parts-Access " 1,101
New Era Cap Hats Hats . 1,099
Airgas Industrial Supplier (tie) Industrial Supplier 1,052
Monster Energy Drinks-Isotonic (tie) Drinks-Isotonic 1,052
Total 17,356
Source: Place*Views, Nielsen Product Placement Service
Coverage - prime time entertainment programs on A&E, Bravo, HGTV, MTV, TLC )

103
 Under Armour has had a significant product placement presence in the

following broadcasts:

Table 4

Examples of Under Armour Product Placement

Product Placement Television Motion Pictures Video Games

Amazing Race Grid Iron Gang Tiger Woods Golf

2006
Apprentice Fantastic Four
Tom Clancy's
ESPN's Playmakers Dodgeball Ghost Recon 2:
Summit Strike
The Wire Game Plan
Fight Night Round
Real World Road I pronounce you 3
Chuck and Larry
Rules Challenge,
Million Dollar
MTV's The Inferno Baby

Two-A-Days. Mr.3000

Today Show (Matt

Lauer segment in
Antarctica)

Friday Night Lights

Clubhouse

Under Armour has ventured into the gaming world as well. In 2005 Under

Armour partnered with Ubisoft Entertainment and EA sports to outfit characters in

their videogames (Logan, 2005). This provided another outlet for brand

development. Advertising and marketing executives are starting to acknowledge

104
the benefits to their brand development when including their brands in video

games (Nelson, 2002). Video games, now more than ever, reach a wide

demographic range (Brown, 2006). To both advertisers and Under Armour, the

most important market segment is individuals born between 1977 and 1994,

otherwise known as Generation Y (Bush, Martin & Bush, 2004). Within this

overall market is the teen market segment, one of the most coveted of all

segments due to the consumers' spending power, ability to be trendsetters,

receptivity to new products, and tremendous potential for becoming lifetime

consumers (Wolburg & Pokrywczynski, 2001). Video games, "are the most

frequently used interactive media" among this valued market segment (Beentjes,

Koolstra, Marseille, & Voort, 2001, p. 95). The generation Y market is notoriously

difficult for marketers to capture, so as the infrastructure for in-game ads

improves, it seems clear that advertisers will recognize the potential and

embrace it (Tochen, 2006). Advertising in video games provides marketers a rare

opportunity to play a significant role within this popular and ever-growing

entertainment vehicle (Brown 2006). By actively getting involved in video games,

advertisers are developing a brand image in a medium that is attractive to this

market segment.

Unmet Needs of consumers

In the opinion of Kevin Plank, CEO and founder of Under Armour, there

was an unmet need that was not currently being met by the existing products

offered in the performance market. Under Armour addressed this unmet need by

creating a better product for active individuals. Prior to the company's entrance

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into the marketplace, the market segment was filled with brands that had

experienced success with traditional cotton material. Some of these successful

brands were power brands like Russell Athletics, Champion, Nike, Reebok, and

Adidas. As an active consumer, Kevin Plank wanted a product that was better

suited for the lifestyle that he and those he knew were participating in. Plank

wanted something that had a different feel than the cotton products that were

dominating the marketplace. "There was an opportunity that was not being

tapped. We (Under Armour) filled a vacuum. There was an opportunity. He

(Kevin Plank) took it. As a first mover, opportunity gives you the chance to build

that equity. And then if the competition takes too long to move into the space,

and you're able to scale fast enough to secure it, then you get to own it" (Under

Armour A). Under Armour executive B explained that the presence of the brand

evolved from a niche product that was geared towards an unmet desire of the

consumer, to eventually creating its own category. "I think it (the brand) evolves. I

think we get credit for being first to market. I think we get credit when competitors

enter our market space" (Under Armour B). When the unmet need of a consumer

is discovered and reached by a brand for the first time, it is much easier for a

brand to own that category. "And so owning the lifestyle space that you're

competing in, I mean, it's not even a competition if you own it. Part of it is, where

technology is going, where is the consumer going, and you have to be on the

front edge of creating and owning the lifestyle" (Outside expert A). The data

illustrated from both the outside experts and the Under Armour executives show

how important owning the market is. Both groups of interviewees agreed that the

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most effective way to create a significant brand impact is to own the market for

which the brand competes in.

Competitor Analysis Points of Examination

Competitor Analysis

Competition, at its core, is the basis of the success or failure of a firm

(Porter, 1998). "Some managers concentrate so single-mindedly on their direct

rivals in the fight for market share that they fail to notice other elements in the

competitive environment — often with disastrous results" (Porter, 1980, p. 34).

When analyzing Under Armour's competitors, it is important to focus on the

compression and performance apparel markets. This focus is warranted given

that Under Armour has only been active in other market segments for a short

period of time. This short period of time is insufficient to truly examine their

presence in these other market segments.

Performance apparel:

• Nike
• Adidas
• Russell Athletics
• Champion (See Table 5)

Compression Gear:

• Nike,
• McDavid (See Table 6)

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Table 5
Domestic Performance Apparel Product Category Market Share: Sports Retail

Domestic Performace Apparel Market

Share: Sports Retail Channel FY 06
Adidas, 5.10% Champion, 1.20%

Russell, 6.90%

Under
Other, 11.20% Armour, 43.70%

Nike, 32%

(Susquehanna Financial Group, 2008)

Table 6

Domestic Compression Apparel Product Market Share: Sports Retail Channel

Domestic Compression Apparel Product

Market Share: Sports Retail Channel FY 06
Vital
Apparel, 0.90%
McDavid, 1.37% Other, 2.80%

Nike, 16.20%

Under
Armour, 78.80%

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 Michael Porter (1980) explains understanding competitive strategy helps

establish a successful and sustainable position in the marketplace. Porter also

explains that in order to develop a successful strategy, it is essential to

understand the competition (Porter, 1980). To analyze the competitive

environment of Under Armour further, the researcher used Michael Porters

Competitive Forces (1980) model (Table 7). Porter (1980) notes the state of

competition in an industry is dependent on five basic forces: entry barriers,

supplier power, threat of substitutes, buyer power, and intensity of rivalry. "The

collective strength of these forces determines the ultimate profit potential of an

industry" (Porter, 1980, p. 34). According to Teece, Pisano, Shune (1998),

Porter's (1980) competitive forces model is the leading paradigm in the field.

Therefore, its use in this research is warranted.

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Table 7: Competitive Forces Model: Under Armour
Intensity of Rivalry among Firms
Entry Barriers
Direct Competitors
HIGH MED
• Nike
Capital requirements Brand Identity
o High BI = Low intensity
Market has industry leaders and
Differentiation (e.g. style of apparel)
marquee brands actively pursuing
share. Industry Expenses
Brand Identity High Exit Barriers
o Under Armour o Contracts with retail chains
o Nike o Marketing and Promotional
Differentiation (Cotton v. High Tech Revenue
Performance gear) Firm and Industry o Sponsorship contracts
Expected retaliation o Research and Development
Cost of Oil expenses
Strength of commissioners office
Profitability o high brand loyalty = emotional
barriers high
Fast pace initial Industry Growth.
Indirect Competitors High Switching Costs
• Russell Athletics
• Mc David
Supplier Power
• Adidas
• Other apparel companies Buyer Power
HIGH
Fabric produced by six third party
textile firms LOW HIGH
o Produce 70%-75% of Consumer Power Retail Power
products Low Bargaining power • High Visibility
o Largest supplier Lack of high quality Opportunities
produces 15%-20% Threat of Substitutes
choices • Can increase
Research and Development conducted Low level of price level Brand
internally sensitivity Awareness (real
o (LOW) MED
Low Switching cost Low level of estate)
Price fluctuations (HIGH) negotiation power • Increase level of
o Synthetic Fabrics, Raw Increase in product line opens the door for
more competition Low level of switching marketing/promot
materials, Petroleum costs ion opportunities
Limited number of products on site Substitutes have financial power over
Under Armour. (Marketing, R&D, • Power of Choice
(HIGH) • Inventory strategy
No long-term supplier contracts exist Promotions, Advertising Dollars)
Brands creating niche specific apparel is focused on
(MED) effectively
Market is crowded with many
Price point impact (HIGH) meeting
opportunities for success
consumer
demands
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 Direct competitors competencies and assets

Under Armour's competitors can be grouped into two different strategic

groups of direct and indirect competitors. Under Armour's direct competitor in the

market is Nike. Nike is the leader in the sport apparel market, with influence and

success that can be measured on a global scale. As shown in Table 5 & 6, Nike

is highly competitive in the performance gear market, and represents Under

Armour's closest competitor in the compression market. Nike is a company that

has established itself as the premier brand in the sport industry. The Nike brand

continues to grow and to achieve great success worldwide. The brand name is

what makes Nike who they are, and it is the company's ultimate strength. The

financial success the Nike brand has experienced is directly related to the

association for which the consumer places on the brand name.

"I mean the brand is obviously the most valuable thing we own. Doesn't show up
on the balance sheet but what we're doing as we've laid out last February is
trying to reorganize the company along the lines of the categories to really
deepen the focus and the connection we have on specific consumers, and as I
said a little earlier, I've never been more optimistic I should say, the ability to turn
the insights we get from that, those deeper connections into really relevant
product communications, very bullish on the potential of the Nike brand to grow."
(NikeBiz.com, 2008, Para 2)

Direct Competitor Strengths & Weaknesses

When any organization conducts an internal analysis, it is essential that the

goals and strategies align the strengths and weakness with the opportunity and

threats of the organization (Porter, 1991). Just as it is important to understand

strength and weaknesses, it is equally important to understand what your

competitor does well and where they are lacking.

in
Competitor Strengths
• Nike brand recognition via swoosh, logo, tag lines
• Brand perception
• Brand association and the connection to sport
• Brand history
• Distribution both retail and online
• Marketing and advertising staff
• Marketing and advertising budget
• Brand portfolio
• Athlete/Celebrity endorsement under contracts
• Sponsorship contracts

Competitor Weaknesses
• Different brand messages for large brand portfolio
• Left over inventory affecting retail discount sales
• Left over inventory affecting retail discount sales
• Lack of success with Bauer hockey brand
• Market share in compression market
• Women's performance and compression market
• Lack of ability to create a current product to meet the brand perception of
Under Armour in compression and performance market.

Indirect Competitors

Competitors like Russell Athletics, Adidas, McDavid and Champion are

secondary competitors to the Under Armour brand. These brands have been

classified as secondary competitors because of the lack of market share strength

each of these brands represent as it relates to other direct competitors (see table

5&6).

Competitive entrants & entry barriers

The potential competitive entrants are those brands that have been

involved in the active wear market and sport apparel market and have an

established brand name with the consumer. These brands would be other large

sport brands like Puma, Reebok, Fila, and Columbia. Other competitors may

grow from under garment product brands like Hanes or Fruit of the Lomb. Niche

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sport brands like Brooks, Big Dog, FUBU, No Fear, also may become indirect

competitors in the future. Other potential competitive entrants may stem from the

creation of a new celebrity or athlete apparel lines. Examples of this include Fifty

Cent's G Unit clothing and initiatives like the Stephon Marbury and Ben Wallace

shoe lines via Steve and Barry's. These lines are inexpensive products that

consumers in almost all income brackets can purchase.

Market Analysis Points of Examination

Conducting an effective market analysis depends on the data available

(Barrett, 1996). When engaging in a market analysis, a company gains a greater

understanding of the scope of the competitive market. Since most competition is

defined by the market that the brand exists in, market analysis is an essential

element of studies of competition (Brooks, 1995). Studies suggest that "when a

company chooses to enter a specific strategic group, it selects the members of

that group as its competitors" (Kottler & Armstrong, 1989, p. 496; Chen, 1996, p.

102).

A thorough market analysis consists of several different points of

examination. These points cover the essential elements to understand the role

the brand plays in profitability in the market, entry and exit barriers, growth

projections, cost structures, and profitability prospects. A market analysis also

helps indicate the current industry trends and their affect on brand strategy.

Understanding the marketplace also allows for a better understanding of the size

of the market, how open the market is, the stability of the market, and the growth

opportunities in the market. A market analysis will provide data that will help in

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analyzing the brands affect on price points and what competitive advantage can

be created via the brands awareness and image.

Financial statements

Apparel, the largest and fastest growing segment of the sports market,

accounts for 44% (or $113 billion) of the global sports market. Apparel sales rose

6% this year. Fueled by the growing trend of active wear as fashion, the U.S.

sports market posted the highest growth at 8%. Sales of sports apparel rose 5%

in Asia and 3% in Europe (Global Sports Market, 2008).

According to financial analysts, the domestic apparel product category will

continue to grow rapidly over the next several years as consumers look for gear

to replace the cotton and cotton-blended products (Susquehanna Financial

Group, 2008). Under Armour will continue to drive brand awareness and

perception to its consumers by increasing partnerships and distribution with its

retail partners by increasing the overall product offerings to attract a wider

consumer (camouflage gear for the hunter), and by creating a market

segmentation within its brand strategy (increasing its brand presence in the

female demographic).

With the performance apparel market growing 14.3% to 2,387 million in

sales in 2007, analysts project a continuation of growth. Due to this significant

growth rate, the expanding consumer sales trend will continue over the next

several years, which should offer Under Armour and its competitors a growing

and stable consumer base (Susquehanna Financial Group, 2008).

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 Key Success Factors

"Key Success Factors are those variables that management can influence

through its decisions and can affect the competitive market environment. These

decisions are affected by two main factors, economic and technological

characteristics of the industry and the competitive weapons for which each firm in

the market has built their strategies on" (Hofer & Schendal, 1978, p. 77). For this

research, a Key Success Factor Analysis of Under Armour was conducted to

better explain the competitive market in which the brand competes. (See Table 8)

Table 8

Key Success Factors of Under Armour

Primary KSF's Secondary KSF's

Brandy Loyalty/Brand Identity Continuing to stay on top of research
1. Increased brand loyalty will and development
ensure the continued success of
the brand

2. Maintaining brand image and

synergy of message

Increase of exposure in marketplace via Success of sponsored teams and

sponsorships, licensing, merchandising, athlete exposure
and broadcasting contracts will help
keep brand strong
Expansion into the European market Image outside sport
1. Popular culture
Monitoring the success of shoe product
Growth of retail sales presence

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 Competitor Threats

There are several forces that might reduce profitability and become

threats for the Under Armour Brand. These forces are important for Under

Armour to be aware of as it moves forward with its brand strategy.

Threats
• Direct competitors attacking the market share
• Indirect competitors
• Distribution chains power
• Entering into other product competitive markets
• Global brand recognition of competitors brand
• Direct competitors financial resources
• To fast of growth
• Ability to forecast new and updated products
• Changes in consumer preference

• Economic changes

The opportunities for the Under Armour brand to grow and achieve further

success are vast. It is critical for the brand to maintain its synergistic mentality

and remember its authenticity in brand development as it moves forward.

Opportunities
• Strength of the brand
• Penetration in the women's active apparel market.
• Success in the youth market
• Development of new product lines
• Potential for increase in retail penetration
• Global development

Internal Analysis

The Internal Analysis consisted of an analysis of Under Armour's internal

performance and its strategic options.

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 Performance Analysis

A performance analysis is utilized when an organization desires to

enhance its efforts or correct a specific problem that has been identified (Rosset

& Sheldon, 2001). A performance analysis consists of profitability, sales,

shareholders value of the brand, customer satisfaction of the brand, brand image

and quality, brand associations, brand costs, new products and the affect on the

brand, employee attitudes, representation of the brand and brand portfolio

association (Aaker, 1995). Many market managers have stated that the focus on

the short term performance of the brand is having an impact on the long term

value of the brand (Leuthesser, 1988).

Cost associated with brand development

The costs associated with brand development have shifted in recent

years. Initially, Under Armour was a niche brand lacking the financial resources

to dive into the media market and spend money on sponsorship or

endorsements. Understanding this, Under Armour used the product and the

quality of the product as its advertising. The initial cost of brand development

was nothing more than creating top of the line garments and providing them to

the athletes for which it was designed. Ultimately, this led to an organic and

authentic growth of the brand.

In recent years, as the brand has become more powerful and successful,

Under Armour has stretched itself into more sponsorship, media buys, and

promotional endeavors. Examples include the signing athletes like Alfonso

Soriano of the Chicago Cubs, buying commercial spots during the Super Bowl,

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and creating signage for the outfield walls of stadiums like Wrigley Field. Under

Armour was the first sponsor to ever create signage for the outfield walls at

Wrigley Field. In the first three months of 2008, Under Armour endorsement

deals rose to $66.2 million which include various sponsorship and marketing

partnerships (Kaplan, 2008). This figure could increase, as some agreements

provide for additional performance based incentives. The $66.2 million that

Under Armour will spend on sponsorship and marketing rights is significant for

several reasons. First, this will be the first time the brand has ever spent this

much on sponsorship and marketing. With the increase in marketing spending,

the brand will need to see how it affects the image of the brand on the consumer.

It is important for the brand to not lose its "edge". Second, it should be noted that

even though this year will be the first time the brand has spent $66.2 million on

marketing initiatives, it has been the market leader in performance wear for the

majority of the brands existence. Finally, it should be noted that Nike, the power

brand in sport apparel and second in the Performance category has spent 3.37

billion on sponsorship and endorsement since February of 2008 (Kaplan, 2008)

Strategic decisions made in the development of brand

The strategic decisions for the development of the brand have always

been to provide the athlete with the top quality product. "Under Armour must and

always will stand for performance. And that is our brand vision" (Under Armour

B). This vision is evident in the company's mission statement.

"Under Armour was developed for athletes by athletes. We understand their needs, and
the demands of competition. What began nearly a decade ago with our superior
undershirt for equipment sports has evolved into six diverse gear lines to cover all
seasons, climates and conditions. By employing only the finest microfiber fabrics, Under
Armour has engineered the ultimate Moisture Transport System in garments that slide

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 over your body like a second-skin to keep you cool, dry and light throughout the course of
a game or workout. As the originator of the industry, Under Armour remains dedicated to
new technology and is determined to enhance the performance of every athlete on every
level. Lighter. Faster. Stronger. Better." (UnderArmour.com, 2008)

The Under Armour executives that were interviewed explained the

company understands where the brand's foundation is, so as the product line

continues to grow it is imperative to maintain that same consistent brand

message. "The strategies over the years, you will see that we've grown from

being a tight t-shirt company to being a performance brand that sells loose-fitting

product, that sells product for women, sells product for kids, sells product for your

feet, sells product like sunglasses, batting gloves, football gloves. The idea and

concept was built to be tough enough to withstand the demands of the football

field, the gridiron. Consumers adopted it, unknowing that hey, if it's tough enough

for their needs, it's gonna get me through my four mile run, or help me with my

workout. It's going to help me be better at my sport" (Under Armour A).

In order for a firm to grow and be successful, it must understand what it

does well and leverage that strength to create future opportunities (Busija, O'Neill

& Zeithmal, 1997). The strength of an organization can be an advantage in the

marketplace (Hazelbaker, 2006). An organization's weakness is a limitation or

flaw that takes away from the productivity of the organization relative to one's

competition (Hazelbaker, 2006).

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Under Armour Strengths

• Quality Products
• Brand Identity with performance wear
• Market Share Leader
• Synergy of brand message on all levels of product communication

Under Armour Weaknesses

• Experience, longevity and strength of competition.

• Financial Power of direct competitor brand
• Brand success of direct competitor globally
• Overall market power of direct competitor

• Increase clutter in the marketplace

Culture of the brand

The culture of the brand is best defined by the last four words of the

mission statement, Lighter, Faster, Stronger, Better. This description paints the

intensity and quality that the product provides to the consumer. These four

simple descriptors have been the driving force behind Under Armour's brand

development. Through these four pillars, the brand has developed a culture of

intensity, quality, and authenticity in its brand message to the consumer. "Their

communication is also very aggressive" (Outside Expert C). "But it gets more and

more difficult the more and more things you have, and what under Armour did, at

least initially, were about performance clothing, and that's what we do, and we do

it better than anybody else. And I think there's a certain credibility that goes with

that notion of specialization and niche. You know, it's an important part of what

has helped them build the brand" (Outside expert D, 2008).

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 In a recent interview with Sports Business Journal, Kevin Plank (May 5,

2008) addressed the issue of culture:

SBJ: Brand and corporate culture are usually inseparable. Have you
defined both?
PLANK: We have a lot of things we say all the time, but really, I worry
about getting too settled because culture can help you, or it can hold you
back. The other day I asked someone why we didn't have a [marketing]
relationship with Salisbury State. I was told, "We won't do that kind of
school." I don't know who made that decision, it might even have been me
at some point, but I'm getting to the point where I think everything has to
be reinvented every year." (Plank on change, 2008, p. 26)

Terry Lefton in Sports Business Journal, (May 5, 2008) explains the

culture created within Under Armour, "A steely dedication to serving athletes,

innovation and a brand mentality has produced a corporate culture remarkably

similar to Nike's. Each was founded on product innovation and each was built

with an athlete's will" (Lefton, 2008, p. 1)

The culture of Under Armour is what makes the brand so powerful.

Everything that Under Armour produces, whether it be promotions, t-shirts,

shoes, commercials, all speak with the same voice. Plank has established the

culture of intensity and success at all levels of his company.

Determinants of Strategic Options:

Brand enhancement in the eyes of the consumer

A key element to the continued brand enhancement in the eyes of the

consumer is the trust that the consumer has in the brand. As Plank stated in the

aforementioned interview with reporter Terry Lefton, "the reason we could go into

football cleats and take better than 20 percent market in year one is because that

121
kid built such trust in us with our apparel. We can't violate that trust, or we are out

of the game" (p. 1).

Employees at Under Armour believe in the product and they let the

product's quality speak for itself. Under Armour doesn't need to promote the fact

that its products are superior, because the consumer trusts the brand. The

company respects this trust, and consistently provides the consumer with high

quality product lines. "Our products are built based upon a solid premise; you

have to be careful about how you're adopted and then how your message follows

that up. A piece of Under Armour is Under Armour long before the logo ever

lands on the chest, because of the build that we put into it. There's a significant

difference in the build, in the construction of the product. Kevin is always

challenging the product team, don't rob from the brand, don't rob from the

consumer. Give them more than they are expecting to get from this good.

Beyond that, at the end of the day, what it really comes down to is the build. And

I'll challenge anyone to build a better product than ours" (Under Armour A).

Increase the perception of the brand

Perception of the brand is an extremely important aspect of its growth.

Positive perception leads to continued success, while a negative perception can

have a detrimental impact, leading to a decrease in brand equity. It should be

noted that when the perception of a brand turns negative, it is often more difficult

to reverse that perception than it is to launch a new brand. This emphasizes the

importance of brand protection. "Reversing the trend (of negative perception) is

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challenging. We definitely have to protect our brands in everything that we do"

(Outside expert A).

Under Armour has driven the perception of its brand to be one of intensity,

performance enhancement, quality, and "good enough" for the elite athlete.

"Yeah, (perception) well it certainly helps you extend your product line. You

know, you can extend your product lines out if you've got a really solid position

that you're starting from, and you're working from, and if that position is one that's

premium and they value the dollar they pay for it" (Under Armour A). Outside

expert D explained the importance of who uses the Under Armour product,

"they've got world class athletes who can really make the decision to use any

products they want, and they are going to use what they feel like are best, and if

that product is working for them, it is a pretty clear signal that this would be a

great product for me (consumer), even in my sort of more casual state of

exercise." "It (Under Armour) came out as a product designed and built by and

for professionals. This isn't recreational gear, this isn't something your mom

wears to go to the store Sunday morning. This is performance wear" (Outside

Expert A). Outside expert explains the importance of Under Armour's ability to

be authentic, "I think they've done a tremendous job of creating an authentic

relationship with people. It's tough for me to get into detail. They've done a great

job of being authentic."

Strategic vision

Under Armour's strategic development is one that is focused on producing

the best product possible for the active consumer. Under Armour has centered

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its efforts on the quality of the product, knowing that its brand strength is directly

linked to the perceived quality of its products. "Its (brand strategy) started by

positioning the brand in the locker room, and team dealers out there, from a retail

standpoint. To build the authenticity from the ground up. And we've continued to

build upon that. The media deals that we do, we cut very focused buys that are

going to be very - with minimal waste. So that helps maintain a premium

positioning, but it also helps us focus our funds in support of what we do at retail,

to show up in big, significant ways, and be powerful in our presentation" (Under

Armour A). Under executive B supported this noting the importance of

authenticity. "It all starts and ends with authenticity. If we're not on the field of

play in whatever important arena we're trying to enter, we don't stand a chance

because there will be no reason for people to try our products." Under Armour

executive A explained how the brand strategy has changed over time, "the

strategies over the years, you will see that we've grown from being a tight t-shirt

company to being a performance brand that sells loose-fitting product, that sells

product for women, sells product for kids, sells product for your feet, sells product

like sunglasses, batting gloves, football gloves. The idea and concept was built to

be tough enough to withstand the demands of the football field, the gridiron.

Consumers adopted it, unknowing that hey, if it's tough enough for their needs,

it's gonna get me through my four mile run, or help me with my workout. It's going

to help me be better at my sport" (Under Armour A).

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 Alternate brand growth opportunities

Due to the near infancy of the Under Armour brand, several opportunities

exist for brand growth. Even though the brand has experienced a significant

amount of success in a short time period, it is still growing. "Because we have so

much growth and upside still ahead of us. There's so much open field yet in the

performance arena that we haven't come close to tapping" (Under Armour A).

Under Armour executive B described the opportunities of growth as still looming

large, "there's also big swaths of landscape where we're not at all. Basketball, we

don't have anything in basketball. So, that's probably the last, the biggest

marketing opportunity, the biggest target audience, the biggest sport that we've

never gone after yet. And when we decide to do that, that's a big opportunity for

us. International is a big opportunity for us. We haven't sold one shirt in China

yet. Nike and China - that's going to be their first billion dollar country, outside of

the U.S. So that's a big opportunity for us. Big opportunity for us."

Besides the growth opportunities internationally, Both Under Armour

executives understand this doesn't mean they can take their focus from the

brand targets in the United States, "we're trying, and our goal is to build out our

women's business, and this is all public information, we want our women's

business to someday be much larger than our men's apparel business. The other

thing you can say is, we're the brand of this generation. And that's ultimately

what our position is, too. We want to make sure that we continue to position

ourselves and attract that kid and never alienate him or her, so that he continue

to be their brand" (Under Armour A). "We are extending into footwear and other

125
categories of product in that role. Our opportunities are in Europe. We have good

business in Japan, but outside of Japan, we really don't exist in Asia. In Latin

America, we have a very small, small business as well. So when you think about

that, and consider what's out there, we're in a very good position" (Under Armour

A).

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 Research Questions

The data analysis and data displays were used to manage the data and to

appropriately address each research question. The research questions are

presented and discussed below.

RQ1: What modern methods of brand development are used in sport marketing

today?

Research question 1 focused on modern methods of brand development

in sport marketing. Results of the interviews with branding experts and Under

Armour executives revealed that several different methods of modern brand

development are used in sport marketing today. Interviewees explained the use

of modern technological methods like television, radio (both terrestrial and

satellite), internet, viral marketing and mobile technology are all modern day

technologies that are used to deliver the brands' message. The research does

explain that more important than the vehicle for which the message is being

delivered, is the strategy that current branding executives use to develop the

brand in the current marketplace. These methods are consistent with modern day

branding and marketing strategies that can create a successful brand.

Understanding the most effective way to reach the consumer with the brand's

message has become the top priority for branding executives. With the

enhancements in media, the modern day strategy for brand development

revolves around the focus on the target audience that can be reached.

Under Armour reaches its target consumer by creating platforms geared

towards these consumers. Examples of these modern day methods include

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Under Armour's use of technology to reach its target consumer, the teen. This

has allowed the target consumer to stay connected to the authenticity of the

brand. Understanding that the youth market is its target market and the most

valuable to the brand, Under Armour created a grassroots campaign to host 14

elite football combines nationwide (Mickle, 2008). Even though these Under

Armour combines reach just 3,200 high school players, Plank believes one will

return to their high school with Under Armour gear and influence others to

purchase gear" (Mickle, 2008) Grassroots campaigns like this allow Under

Armour to stay connected to the teen athletes (Lefton, 2008). The connection is

intensified through the use of the technological vehicles that teens utilize in their

everyday lives.

Another example of a modern method strategy that Under Armour

developed is the Under Armour tour bus. The Under Armour tour bus delivers the

brand directly to the target consumer. It provides a tangible experience for the

consumer while exposing them to the true authentic nature of the company's

products. The tour bus is wrapped with the Under Armour logo, and once inside,

visitors learn the history of the brand, can engage in product demonstrations, and

watch high definition videos of elite athletes utilizing the products.

As the research data explains, modern methods in sport brand

development don't necessarily just mean technological advancements. Modern

methods of branding also relates to the strategies that the brand utilizes to

develop and grow. Current branding strategies and methods become just as

important as the vehicle that is being used, "new" or "old".

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RQ2: How does Under Armour's use of modern methods of advertising and

marketing impact the development of the brand?

Through analysis of the interviews and literature, it was determined that

the use of modern methods of advertising and marketing had an impact on the

development of the Under Armour brand. The interviewees explained the

importance of "owning" a product category in assisting in the brand

developmental process. Regardless if it is top of mind for the consumer,

developed in a vacuum, or created in a category where white space exists,

seizing the opportunity to "own" a product category can be key to the

developmental success of a new brand.

The data illustrated the use of personal endorsement is an effective

means to develop a new brand. Personal endorsement has a rich history in

sport, and is considered a traditional advertising method. However, the key

difference in personal endorsement of the Under Armour brand was in the

manner in which the company seeded its products to the athletes. This form of

product seeding has allowed the company to organically grow its brand and

develop a sense of authenticity for the product. This was accomplished by

exposing the product to athletes and allowing the features of the product to sell

the brand. This authentic relationship between endorser and brand conveys to

the consumer that the relationship is not artificially created. Under Armour

created this type of relationship with its endorsers by product seeding rather than

using paid advertising.

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 Whether through paid solicitation or unpaid solicitation, product

endorsement is an extremely effective method in creating awareness for the

brand. A prime example is Under Armour's partnership with Cat Osterman, the

US National Team softball pitcher and 2006's Softball Collegiate Player of the

Year and with Kimmie Meissner, the 2006, Women's Figure Skating Champion.

Both women are outfitted exclusively in Under Armour's performance gear.

Osterman wears Under Armour branded apparel and footwear on and off the

softball field, and Meissner wears Under Armour during non-competition ice-time

and training. These two partnerships are strategically aligned with the brand's

continued focus on creating awareness for its emerging women's line.

The data collected also explained that relating to the consumer and

creating an authenticity through the product itself, allows the consumer to grow

towards the brand. In becoming authentic to the consumer, it is important to have

a consistent message in tone and platform. Having a consistent message is not

a new idea in the branding or marketing world, but the focus and importance of a

singular message is more critical today than ever before. Under Armour has

shown that the use of a consistent message helps keep a synergy between

product lines. It is easy to confuse the consumer if the brand message is

changing and not constant. In today's crowded marketplace, a consistent

message is important in maintaining a connection between the consumer and the

brand. The literature and the interviewees explained that once a brand has been

established, the protection of that brand and its message becomes just as

important as continued development.

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RQ3: How does the percentage of Under Armour's market share relate to the

development of the brand?

It was determined that the percentage of Under Armour's market share

can relate to brand development. The data that was collected showed that

branding can have an impact on the overall market share. The development of

the Under Armour brand via product seeding, product placement, personal

endorsement, and word of mouth marketing helped increase brand exposure.

This brand exposure led to an increase in sales which helped create a market

share lead in the performance category. Being a unique brand in an emerging

category allowed for continued success in brand development as well as

increased revenue growth. The stronger the brand the more likely it is to have a

significant hold on its categories' market share.

As an increase in brand loyalty, perception, association, and awareness

occurs, so to does the positive effect on consumer buying habits. Consumer

buying habits can positively or negatively affect the growth of market share. In

this case, the positive feelings of the consumer towards Under Armour helped

develop a loyalty to the brand. This positive identification with the Under Armour

brand directly impacted its market share position, as shown by the consistent

annual increase in revenue.

RQ4: How does Under Armour's development of its brand position the product in

the eyes of the consumer in the marketplace?

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 Through the literature analysis, interviews and Aaker's (2005) Strategic

Market Management Analysis theory, it was determined that the methods for

which Under Armour positioned its brand and continues to position its brand has

a significant effect on its successful development. The data showed that the

consistent image and message of intensity in performance wear helped Under

Armour achieve success in its market. The aggressive tone and message that

Under Armour portrays has proven effective and instrumental in its financial

viability. The interviewees explained that Under Armour's message "built by

professionals for professionals" had successfully reached and resonated with

several different demographics. The data also explained that in addition to the

consistent tone and message, Under Armour produces a high quality product

which synergizes the message and the product. The interviewees explained that

the product provided its own marketing tool based on its quality. They noted that

a successful product generates buzz for itself and will have a market impact by

the walking endorsement from nonpaid endorsers. The data showed that this

was a key factor in establishing credibility and authenticity for the Under Armour

brand among its target consumer base.

Summary

The purpose of this study was to analyze the development of the sport

brand in the 21 st century. This study utilized an analysis of the branding literature

on theory and practicality of brand development, David Aaker's (2005) strategic

market management theory and interviews of outside branding experts and

Under Armour branding executives to tabulate data. The data collection and

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analysis procedures were designed based on the purpose of the study. This

chapter presented the results of those procedures. The results of Aaker's (2005)

Strategic Market Management Analysis, Porters (1980) competitive forces model,

and the frames, themes and codes that emerged from the interviews with both

branding specialists and Under Armour executives were presented in this

chapter.

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 Discussion of Key Findings

Many studies have focused on the brand development process (Aaker,

1991; Keller, 1993, 2003; Romaniuk & Sharp, 2002; Kerr & Gladden, 2008;

Gladden & Funk, 2001). However, few of these studies examined the specific

methods utilized in the developmental process of the brand in the current sport

marketplace. The cornerstone of this research focused on the Under Armour

brand. Utilizing marketing and brand management theories, this study analyzed

the strategies implemented by Under Armour in establishing the company's

current position in the sport performance apparel marketplace. Aaker's (2005)

Strategic Market Management theory was used to analyze the internal and

external market elements of the Under Armour brand. Additionally, Porter's

(1980) Competitive Forces Model was utilized to gain a better perspective on

Under Armour's positioning within its current marketplace. Qualitative interviews

were conducted with marketing executives at Under Armour to gain an

understanding of the company's rationale for its implementation of various brand

management strategies. A group of branding experts external to Under Armour

were also interviewed in order to gain expert knowledge on brand management

and to gain expert opinions regarding Under Armour's brand management

strategies. These sources were used in triangulating the data and to enhancing

the reliability of the data pool. The use of frames, themes, and codes were

employed to extract data from each of these sources. A discussion of the

information that was collected follows.

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 The data revealed that Under Armour has utilized a modern day

philosophy in cultivating its brand image. The company was able to establish

itself as a premier brand quickly, due to its perceived creation of a product

category that met the consumer's needs. This ownership of the market allowed

the brand to dominate market share in the performance apparel category. Today,

as shown by Under Armour's success, brand messages can reach the consumer

in more direct and interactive ways. The exposure that athletes receive allows

for a more organic connection between personal endorser and consumer.

Methods like personal endorsement, the use of integrated public relations, the

use of word of mouth marketing, the use of product seeding at the high school,

collegiate, and professional levels are all methods that have impacted the growth

and success of the Under Armour brand.

Under Armour's modern day brand strategy centered on organically

growing its product within the athletic community. Executives at Under Armour

believed in their product, and this belief combined with their marketing strategies

allowed them to forge an authentic relationship with their target consumers. It

helped create the brand message that Under Armour wanted: that the product is

good enough for the world's best athletes so it's good enough for you, the

consumer.

Under Armour experienced success because of its belief in a superior

product, and its ability to meet the unmet needs of the consumer. The modern

day strategy of seeding the product at little cost to those individuals who could

demonstrate the proper use and benefits of the product, became the main

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strategic focus. Plank leveraged the product via his relationship with professional

and collegiate football players. He provided them with whatever gear they

required to get themselves in game playing shape. Plank felt that if the product

could withstand this type of physical regimen, it could withstand anything the

consumer would put it through.

As the brand began to develop a buzz within the inner circle of the athletic

community, word of mouth and unsolicited media generated awareness to the

consumer market. Under Armour was seen not in advertisements but in sports

reports, or post game interviews, work out interviews, press conferences and

other off the field activities. This exposure and synergy of modern methods

combined with a firm understanding of the company's brand message created a

key advantage for Under Armour relative to its competition. Each Under Armour

product carries the same brand message. This synergistic thought process

continues to help develop and deliver its brand message. Creating a consistent

brand message across product lines allows the consumer to know exactly what it

is they are getting when they purchase an Under Armour product. There is no

confusion between lifestyle goods or performance enhancing goods. Everything

that has the interlocked UA logo is meant for performance wear. As Under

Armour has developed beyond its original compression performance shirt, it has

maintained its message of superior performance enhancing goods.

According to the literature and the interviews, it is important for brands to

cut through the clutter that surrounds the consumer on a daily basis. It was

explained that there are several methods that can be utilized to rise above the

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clutter, like owning the market, making your brand top of mind, finding white

space in the market, differentiating your product and segmenting. The

interviewees explained the use of the internet, cable television, and mobile

phones allows for a more direct and interactive marketing approach. This direct

and interactive approach to marketing has become a key modern method

strategy of brand development. When using new forms of technology,

companies disseminate unaltered messages about their products directly to their

target consumers. They engage the consumer and expose the consumer to the

benefits of the product in a much more interactive and effective manner. In a

cluttered marketplace, this integrated modern approach is essential in

differentiating products from competitors.

The modern use of technology has aided companies in reaching specific

target consumer segments. As one interviewee noted, different vehicles are now

used to drive different messages to different target consumers. For example,

different brand vehicles are used to appeal to consumers in different age groups.

"We're doing a lot of virtual stuff- mobile and definitely a lot around the web, I

think viral, especially for teens (is important), it seems like word of mouth from

their own peers is pretty influential. But for the kids, at least the teens we're

trying to get out there, there's a lot of Youtube (videos) and interactive websites.

We text people and let them know when the latest and greatest products are

hitting. If you're a crazy Jordan guy then you can now be on the list to get the text

that says the Jordan 23 launches next week at your local Champs or wherever it

goes" (Outside expert C).

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 The emergence of new satellite and cable television networks and

programs not only provides the brand with the opportunity to reach its target

consumer on a more intimate level, but it also provides a cost savings

opportunity as well. Under Armour executive B explained that media coverage of

Under Armor athletes provides unsolicited and free brand development

opportunities. "We had athletes wearing it (gear) and showing up on Sports

Center, showing up in different magazines, and people go to searching for it.

That's the ultimate test. When people can't find something, they continue to

search for it. And then, you know, we did, and it started with some pretty intense

commercials that differentiated ourselves in a very targeted area. So we weren't

putting it on the Oxygen network, we were targeting football players who watch

football games. So people might have seen tons and tons of commercials, but

they might have been seeing every single one of them." The increase in direct

message opportunities meant less money was wasted in broad media buys,

which might only hit a portion of the target audience.

Under Armour also leveraged free media exposure through programs like

MTV's Real World/Road Rules Challenges. This show reaches the brand's

youthful target demographic while enhancing the performance angle of the

product. The contestants compete each week in extreme physical activities while

wearing Under Armour gear. Under Armour has the exclusive right to

competition outfitting for the show. This type of product placement is doubly

successful due to the consistent replay of the program on MTV as well as

providing multiple exposures throughout several broadcasts.

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 With the mass coverage of sports and a 24 hour news cycle, the

opportunity for brand exposure is non-stop. This is supported by Under Armour

executive B who noted that, "we were really targeting (media buys) it to a certain

area so it looked like our spend was bigger than it was. But it was really targeted

to when the people, that we want buying our product are watching sports, that's

when we want our commercials (products) on the air." This coverage in the

current market provides more opportunities to disseminate a specific brand

message to the target consumer. "Today's technology allows for better targeting,

which is a great development. Both in cable and with the internet. So as much as

you have people talk about fractured media and how you have to go so many

more places to reach the same amount of people, you can now target so much

more specifically with all of those media, it's terrific. Yeah, (more focus) A lot less

wasted media dollars" (Outside expert B).

Outside branding expert D explained that regardless of the approach,

traditional or modern, it is most important for the brand to become part of the

consumer's life. "I'm looking for opportunities to weave my brand into their life,

their social fabric, in ways that are sort of inviting it in as opposed to me shoving

it at them. And I think that's really, really different mindset. It's like building a

relationship basically. So, at the end of the day it is trying to understand the

consumer, whether you're doing a text message, you're still doing the

advertisement and the newspapers and the quote unquote tradition stuff, via

sponsorship."

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 While new technology now plays an integral role in brand management,

the data also revealed that traditional means of generating brand awareness are

still viable and often utilized. For example, personal endorsement, television

advertisements, print ads, and public relations are all still effective. However,

companies have refined their use of these methods and developed a more

modern approach to their use. As noted in the data, these modern methods

center on the synergistic efforts of several different key aspects in brand

development. These aspects include the use of both traditional and modern

tactics to establish an emotional or "authentic" connection with the target

consumer through the communication of a clear and consistent brand vision. The

data illustrated that in establishing "authentic" connections, brands must become

a daily part of target consumers' culture and lifestyle. The interviewees

consistently stated that understanding the brand and the consumer are critical to

the success and longevity of the brand. Interviewees explained that branding

executives should focus on fully understanding the brand message that is

conveyed and how it relates to the daily life of the target consumer.

The data illustrated the importance of touching the consumer from an

emotional perspective. Consumers must feel as though they are part of the brand

and that the brand is part of them. The ever-growing lifestyle of the consumer

crosses over from sport to entertainment to everyday life more so today than

ever before. It is paramount for brands to adapt to this. As one interviewee noted,

"what we do is in large part - the lion's share of what drives your market share in the marketplace,
is that story you're able to tell with your brand, the relationship you build with your consumer, and
therefore, their willingness to pay X for your brand. We can do TV advertising on cable, a lot of
cable stations and we have traditional avenues of out of home and print. It's interesting, I think, if
you look at how consumers engage with brands and each other, it has probably changed more in

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 the last fifteen to twenty years, especially with the advent of online, social media and they way
that people interact. It's probably changed more dramatically in the last twenty years than in any
other time in history, recent history. And yet marketers really continue to approach things in a very
traditional way... .everybody will talk about, (a special) web strategy, but it always feels like it's a
bolt on. It's like, I'm doing all this other stuff, but then I'm doing this (extra) cool web thing. I still
have advertising, I still have sponsorships, I still have sampling programs and I also have this web
thing.— I'm (focused) on all of the ways that my brand sort of interfaces or touches consumers. I
want to create those interfaces in a way that isn't me yelling my message to them, but rather
looking for opportunities to weave my brand into their life, their social fabric, in ways that are sort
of inviting it in as opposed to me shoving it at them" (Outside expert D).

Under Armour utilized different methods to reach the consumer with its

brand message. Under Armour initially reached the consumer via personal

endorsement from elite athletes that were provided products by means of product

seeding. Under Armour then leveraged the product by utilizing the word of mouth

marketing of athletes which increased exposure to the consumer. As the brand

has grown, the company uses its website www.underarmour.com to drive

product awareness and create another outlet for product sales.

Under Armour utilizes product placement via television on shows like the

Amazing Race, MTV's Real World Road/Rules Challenges, and ESPN's

Playmakers (see Table 4) Under Armour also utilizes the big screen for product

placement opportunities. Under Amrour's brand is exactly what movie

executives look for when trying to create an authentic feel in their films (see

Table 4). Understanding the need to reach a most important demographic, the

High School athlete, Under Armour has begun to sponsor the High School Ail-

American game airing on ESPN. Under Armour has also created an Under

Armour High School combine that provides another opportunity for the company

to showcase the best football talent in America. Along with its high school

sponsorship involvement, Under Armour has begun to have more of a presence

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with signage. The company now has in-field signage at historical baseball

stadiums like Fenway Park and Wrigley Field.

Another key finding evident in the data was the use of personal

endorsement to drive the brand. As mentioned earlier, this is not a new concept,

as the practice dates to the beginning of sport. Many interviewees noted that

today it is vital to allow the brand and the endorser to grow together organically.

The brand should have true brand ambassadors, meaning the endorser should

support the brand because he/she uses the brand and enjoys it. It should not be

a "fake" relationship driven by financial terms. The interviewees explained that

the more organic the partnership between the endorser and the brand, the more

authentic the brand will become for the consumer. The interviewees also

explained that the authenticity of the brand is invaluable in establishing brand

credibility. Consumers want to feel the authenticity of the brand, but the

interviewees suggested that if this authenticity is not naturally developed,

consumers will perceive it as fake. Outside expert C noted this when stating "the

brand needs to stay authentic to the loyal consumer."

The data illustrated that Under Armour was perceived as being successful

in building this authentic relationship between its target consumer and its brand.

The interviewees consistently noted that the relationship between the Under

Armour brand and its endorsers is one that is real and authentic. "I think they've

(Under Armour) done a tremendous job of creating an authentic relationship with

people. From my perspective, they've done a great job of being authentic. Of

brand, sport and athlete. And that's a really powerful concept" (Outside expert B).

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Interviewee A supported this stating that the most effective method Under

Armour utilized in creating brand awareness was using authentic personal

endorsements. "Many of the people who aren't sponsored by Under Armour are

wearing Under Armour, and that's some of the best advertisement you can get.

Guys aren't getting paid, but that's great placement. Because it's a performance

gear, and you've got these couple of performance athletes who are wearing your

stuff, and the word gets out. It's personal endorsement, and in consumer

products that's huge. They're in. They're hip. They've got that edge right now.

And there's nobody else out right now (other products on the market)".

The data illustrated that modern methods of brand development can have

a positive impact on brand development and management. Clearly, the data

indicates that integrated modern methods are critical to the growth and longevity

of the brand. This has been particularly true for Under Armour.

The research revealed that a key element of successful modern day

branding strategies is differentiation. The use of modern day branding strategies

assist in the differentiation process of the brand. Sharp and Dawes (2002) noted

several different perspectives on differentiation. "Differentiation makes the

product desirable, therefore you will make more sales and more profit.

Differentiation makes the product unique, therefore price comparisons are

difficult and you can get away with charging a higher price. Differentiation means

the offer is unique and highly valued, therefore demand will exceed supply and

you can charge a higher price. Differentiation causes brand loyalty; therefore

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marketing costs will be lower because it is cheaper to sell to existing customers"

(p. 740).

Differentiation can happen in several ways. Porter (1985) suggested the

most effective way to differentiate oneself is by being the standard by which all

competitors are judged. The interviewees explained finding an unmet need or

vacuum that existed in the marketplace was effective for Under Armour in

becoming "top of mind" for the consumer. If sport brands can find white spaces

in the market, they can then own that market. Interviewee A suggested "you

have to own the property. Not own as in you're paying all the money for it, but as

in, you have to be the premier property. And I think right now, it has to blur the

line between lifestyle choice and a sports or entertainment property."

When a brand owns a market in the eyes of the consumer, it means that it

has differentiated itself from its competitors as the leading brand in the market.

Being perceived as the market leader is critical to long term success. Once a

brand has taken over a category, it becomes vital that it maintains its position.

"The key is exclusivity. So how do you create an exclusive relationship and really

own that relationship in the market. And the consumer mind-set. That's the key"

(Outside expert B). Under Armour found an untapped market and provided a

product that satisfied the unmet needs of the consumer. As Under Armour

executive A explained, "there was an opportunity that was not being tapped. We

filled a vacuum. There was an opportunity. He (Kevin Plank) took it. first mover,

opportunity gives you the chance to build that equity. And then if the competition

144
takes too long to move into the space, and you're able to scale fast enough to

secure it, then you get to own it."

The results indicated that Under Armour chose to differentiate itself by

creating a singular brand message. Under Armour executive A discussed this

noting "where we're still small, where we can be focused and crystal clear. And I

think that's one of the ways we differentiate ourselves. You'll see us go to market

with a single point of view, and that single point of view will carry us through the

entire year. I think we break through and differentiate ourselves by having a

singular crystal clear focus and that we run through our entire, all of our business

categories, under one single brand umbrella. We don't have any conflicting

messages in the marketplace. As a result- we don't have the dollars to spend that

they do - so we have to focus them and make impact and make headway with

those dollars." Porter (1985), supports this identifying cost leadership as a key in

differentiating products and in creating an advantage over competitors. "Cost

leadership and differentiation can be achieved at the same time when there are

important interrelationships between industries that one competitor can exploit

and others cannot" (Porter, 1985, p. 19).

Building a strong relationship with target consumers enables the brand to

effectively differentiate itself. Differentiation can lead to brand loyalty, a high level

of brand perception, an increase in positive brand association, and brand

awareness. When each of these branding elements is positive, it will correlate to

a high level of brand equity. Creating a level of high brand equity not only allows

the brand to maintain an advantage in the marketplace, but it also creates an

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opportunity to experience success in otherwise untapped markets by establishing

a level of awareness and prestige (Broniarczyk & Alba, 1994). Marketers and

advertisers understand that with product parity in the marketplace, the

development of brand equity can have a major impact on the success of the

product (Park & Srvinivasan, 1994). Consumers have a sense of knowledge,

attractiveness, and loyalty to brands with a high level of brand equity (Keller,

1993). Corporations that maintain a high sense of brand equity with their

consumer will produce financially favorable outcomes for the organization

(Gladden, Milne, & Sutton, 1998). "From a branding perspective, the way it

influences a consumer and their buying habits, I definitely think that if you've got

the right brand and you're communicating it in the right way - whether it's kids, or

whoever your focus, your target is, I definitely think that influences (purchasing

decisions)"(Outside expert C).

Another key aspect that has helped to differentiate Under Armour from its

competitors was the organizational belief in "going big" in everything they do.

Under Armour made it a point to be intense with its advertisements. The

company wanted the consumer to feel its presence, its commercials, its in store

presence, and its internet presence. Under Armour executive A explained,

"when you see us do something, we typically do it in a significant way. We're not just checking
off boxes that say, okay, we hit our media spend, we hit our digital spend, we hit our print spend.
We do things in a significant way. Subtlety is not our expertise. And the saying here Under
Armour) is, big bets with big partners. In retail, we go big. We don't hold back. Our fixtures are
not made cheaply. You know, we have very strong, durable, in your face displays and similar
graphic strategies, as well that show up on the floor and again, they make an impact. They make a
difference. I would just put it this way, we aren't everywhere, nor will we ever be, but we find
ways to partner."

Results of the research also revealed that it is perceived that appropriate

brand development positively impacts market share. The experts interviewed

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believed a favorable brand image and high level of brand equity positively

influence consumers' purchase decisions. Weis (1968) suggested that changes

in market share position are affected by consumers' purchasing habits, which are

influenced by both economic and psychological factors. Weis (1968) provided

four variables that influence consumer purchasing behavior and a brand's market

share, "(1) price, (2) advertising expenditures, (3) retail availability, and (4)

physical product characteristics" (p. 290). For these variables to be impactful, the

brand must know and understand its target consumer. These four factors are

directly controlled by the organization and should be a focal point in all strategic

decisions.

"From a branding perspective, the way it influences a consumer and their

buying habits, I definitely think that if you've got the right brand and you're

communicating it in the right way - whether it's kids, or whoever your focus, your

target is, I definitely think that influences (purchasing decisions)" (Outside expert

C).

The interviewees noted that typically the consumer is not aware of the

actual market share numbers. As stated by Outside expert A "most people don't

recognize (market) share." However, this does not mean that it's not a vital

aspect to the modern day branding process. "Absolutely (branding can impact

market share). Absolutely. I mean there's a big difference between the act of

branding and marketing. Branding is the act of creating an identity, and

marketing is the act of promoting it." (Outside expert B).

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 In creating a product that met the consumers' needs and wants, Under

Armour created its own market. Being the first to take advantage of this market,

Under Armour owned the performance market form the very beginning. The

perception of authenticity and superior products, compared with its competitors,

helped drive Under Armour's market share. The company's commitment to

product quality and to the consumer has been a key factor in maintaining its

market share.

Results of the analysis indicated that Under Armour's development of the

brand had a favorable impact on its brand positioning. The data showed that

Under Armour's strategy has always been to allow the product to develop the

brand. This strategy has proven to be extremely effective. As Under Armour

executive A explained "A piece of Under Armour is Under Armour long before the

logo ever lands on the chest. Because of the build that we put into it." Brand

growth was successful because of Under Armour's confidence in the quality of its

product. Under Armour executive A explained the position of the brand in the

consumer eyes, "the strategies over the years, you will see that we've grown

from being a tight t-shirt company to being a performance brand that sells loose-

fitting product, that sells product for women, sells product for kids, sells product

for your feet, sells product like sunglasses, batting gloves, football gloves. The

idea and concept was built to be tough enough to withstand the demands of the

football field, the gridiron. Consumers adopted it, unknowing that hey, if it's tough

enough for their needs, it's gonna get me through my four mile run, or help me

with my workout. It's going to help me be better at my sport."

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 Under Armour's use of product seeding, product placement, and word of

mouth marketing has played an integral role in positioning the brand as the

leader in the performance apparel category. These methods allowed the brand to

grow organically from the elite athlete to the active consumer. Under Armour

utilized the elite athletes that were provided free clothing, via the product seeding

method, as walking brand billboards. "My sense is, I would see it a lot in terms of

athletes pre or post game, when they might not have had their pads or their

jerseys or things like that on, but they're just sort of chilling, before the game, and

it would be more of kind of the layers they would wear kind of under a uniform or

along those lines, That's my perception" (Outside expert, D).

The product seeding method positioned Under Armour as the premier

performance brand for some of the best athletes in the world. This type of

personal endorsement carried over from consumer to consumer via word of

mouth marketing. "Under Armour must and always will stand for performance.

And that is our brand vision. The bellwether definition for the word performance"

(Under Armour A). As Under Armour executive A stated, the brand is

synonymous with performance wear. The brand leveraged its loyalty from its

then chief target market, elite active males, to its current target consumer, the

invaluable youth market and the growing female market.

From the very beginning, the brand set out to be the brand for the active

person. Outside branding experts explained that Under Armour has successfully

positioned its brand as one of performance gear that is authentic to those

athletes' elite or not. And, staying true to its brand image, Under Armour has

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continued to position itself in this way despite its tremendous growth. This

consistency in positioning has further enhanced the image of the product and

reinforced the authenticity of the brand.

Outside expert A explained in the interview that "it (Under Armour) came

out as a product designed and built by and for professionals. This isn't

recreational gear, this isn't something your mom wears to go to the store Sunday

morning. This is performance wear. Their core is performance wear, and they

have to protect that base, and they have to build that base, and obviously, think

of their advertising, half the time you can't identify who the athletes are, but when

I look at them, I'm saying those are high performance athletes, this is not Joe

Blow at the gym on a Saturday morning."

Outside expert B further explained the importance of authenticity in the

Under Armour brand "I think they've done a tremendous job of creating an

authentic relationship with people. However they've done it - I don't really know

the story, so it's tough for me to get into detail. But from my perception, they've

done a great job of being authentic. Of brand, sport and athlete. And that's a

really powerful concept."

Outside expert D explained that the brand market success that Under

Armour has experienced can be attributed to the perception of the brand. "I feel

like there are people who are sort of hardcore, serious athletes, performance

clothing is probably not a new idea, but I feel it was probably a relatively a narrow

niche and I think they've done a really nice job or sort of expanding that to say

even the person who just runs three or four times a week can really benefit from

150
clothing that wicks moisture, that has this sort of style aspect to it, so they have a

nice intersection of performance and style, which I don't really think was

necessarily on the radar screen for products that were produced for athletes in

the past, that it was more just about, hey, does it help me perform?"

Under Armour is positioned in the marketplace as the premier

performance brand. It has maintained this positioning in part because of its

superior quality and its consistent price points. From the beginning, Under

Armour products have had high price points. These price points have not

changed since the brand's inception. Under Armour executive A explained,

"We (Under Armour) are considered on the men's side, their premium apparel. And we're their
high priced apparel. And we're positioned as such. We're trying, and our goal is to build out our
women's business, and this is all public information, we want our women's business to someday be
much larger than our men's apparel business. The other thing you can say is, we're the brand of
this generation. And that's ultimately what our position is, too. we want to make sure that we
continue to position ourselves and attract that kid and never alienate him or her, so that he
continue to be their brand, the brand they built, the brand they discovered, and the brand that you
know, they wear with pride because they were the ones who first adopted it and helped us become
who we are today."

A key finding from the research was the importance of synergy in the

brand development process within the current marketplace. It was evident

through the data that maintaining a synergistic strategy in the development

process is vital to the success of the brand. Five synergistic brand development

methods emerged from the data. These methods are interrelated and are

highlighted in Table 9.

151
Table 9

Five Synergistic Brand Development Methods

152
 Each of these five methods is vital to the brand development process.

When using these synergistic methods it is important to note that each is as

important as the other. This synergistic strategy is similar to the development of

positive brand equity. According to Aaker (1995, 2005), brand equity is a

multifaceted theory that consists of four key elements, brand loyalty, brand

awareness, brand perception, and brand association. Each element plays an

integral role in the success rate of developing a high level of brand equity. When

brand awareness, brand association, brand perception, and brand loyalty are

linked, brand equity is increased.

The five synergistic methods of brand development can be used as

strategic tools for organizations to use in developing, refining, and maintaining a

certain brand image. When using these elements, it is important to focus on how

each method integrates with one another. Together these methods are stronger

than each is alone. For instance, understanding the consumer is integral in

knowing how the brand will relate best to them. Understanding the brand is

critical to understanding what consumer the brand is reaching. Understanding the

brand and the consumer allows for the brand to seize opportunities in the market.

In seizing the market, it is important to know the most appropriate vehicle to use

to communicate the brand message to the consumer. Once the brand has its

communication vehicle, it then becomes critical to differentiate the brand from its

competitors.

As the research illustrated, there are several ways to approach each of

these methods. Under Armour saw an opportunity to meet the consumer's

153
needs by creating top of the line performance apparel. They understood who

they wanted to wear their gear, the active consumer, both young and old. Under

Armour understood their brand and the brand message was one of intensity.

Thus, all communications with consumers were consistent and positioned the

brand as one of intensity. The vehicle for which Under Armour felt was most

appropriate for brand growth allowed the brand to grow organically via product

seeding, personal endorsement, and word of mouth marketing. The company

differentiated itself by owning the market and staying consistent in its brand

communication. Under Armour did not force the brand on the consumer. Rather,

the company allowed the consumer to grow with the brand.

Results of the research indicated that integration of marketing and brand

development strategies is more important than producing a quality product.

While producing a quality product is of great importance, it is not as important as

developing integrated and authentic brand management strategies. A mediocre

product can thrive if the appropriate marketing strategies are development. An

integrated and synergistic brand development method is key in positively

impacting the brand and achieving long-term brand recognition and loyalty. When

these strategies are aligned to support a high quality product, such as Under

Armour, the brand can dominate its market.

This synergistic method of brand development is not something that can

be conducted once and forgotten. It requires continued analysis as the brand

develops. It can be easy to lose sight of where the brand is going, so the

154
synergistic brand development method provides an organization with the ability

to continually monitor the path of the brand.

This study explains several key factors in the developing the sport brand

in the 21 s t century. Over time several technological advancements have been

created that have become critical vehicles in the brand development process.

Some of these effective brand development vehicles would be mobile phones,

the internet, advertising technology within television and even cable television.

Each of these methods has helped provide another outlet for the brand to reach

the consumer. This is important because the modern marketplace is cluttered

with several different brand messages. The modern means of synergizing the

use of both old and new vehicles to deliver the brand is highly effective and

impactful. Under Armour used these modern brand development strategies to

increase its brand exposure over a very short period. The company used the

product to create brand equity through product seeding, word of mouth

marketing, personal endorsement, and the use of a consistent and synergistic

development of the brand's message. These methods along with leveraging the

increase in technology have allowed the Under Armour brand to create one of

the most powerful sport brands in the United States.

Suggestions for Future Research

This study has provided a foundation for future research on sport brand

management. Future research should examine Under Armour's expansion into

the shoe market, its product extensions, and its global expansion relative to

brand strength. As the company expands in the aforementioned areas, brand

155
equity may be impacted. Additionally, a quantitative study analyzing consumer

perceptions of the Under Armour brand would benefit both researchers and

brand developers. The company has been steadfast in its brand development

and has not deviated from its original brand message. As it continues to grow, its

brand message should be monitored and analyzed to determine the longevity of

its impact.

156
 Manuscript

As the new millennium approached, the world was anticipating the growth

of new technology. This growth altered the way in which society communicated.

Technological advancements have played a significant role in the advancement

of the sport market. Through the increase in technology, the awareness and

popularity of sport has grown. The reach of the sport industry continues to

expand to all ages and genders. Sport has become an integral element in our

society and culture. It has developed into a billion dollar business ranging from

commercial and amateur sport to video games and consumer goods. However,

as the sport business has thrived, more money has been focused on sport

initiatives which have intensified competition. Organizations are forced to

examine their external and internal characteristics, in order to fully develop their

brand images and stand out when compared to their market competitors.

The traditional marketing and advertising spending patterns that have

supported corporate brands and sport brands no longer have the same impact in

the present market environment. Many of these time-honored initiatives now

generate little return on investment and cultivate few brand development

opportunities. As the marketplace has become more crowded and cluttered,

corporations have been forced to develop creative and "out of the box" methods

to allow the brand to thrive in a cluttered marketplace. The element of creativity

in marketing, promotions, sponsorship, and advertising has become essential in

today's sport marketplace.

157
 Many sport brands build brand equity and have been strategically

positioned through non-traditional means. No sport company exemplifies this

better than Under Armour. Branding has become a key element in positioning

products in the crowded sport marketplace, and its role in effectively and

appropriately marketing the sport product warrants examination. Under Armour's

use of nontraditional advertising methods positioned the brand in the mind of the

consumer and has helped the company dominate its competitors including sport

brand leader Nike.

The purpose of this study was to examine the role of sport brand

management in marketing the sport product. Specifically, this research focused

on the brand management strategies of Under Armour. Using Aaker's (2005)

Strategic Market Management theory and Porter's (1980) Competitive Forces

Model as a framework, this study analyzed the different marketing methods

utilized to develop, maintain, and sustain the Under Armour brand. In addition, a

case analysis of the company was conducted and supplemented by interviews

with branding experts external to Under Armour as well as Under Armour

executives. To specifically examine the brand management strategies of Under

Armour, three aspects were of primary focus. A central aspect of the research

was to determine how Under Armour utilized modern methods of brand

development to drive its brand. Further, the research analyzed the connection

between brand development and market share as well as the role of brand

positioning in framing consumers' brand perceptions.

158
 Brand Equity Theory

The sport apparel industry is led by one power brand, Nike, which

generates $16 billion in revenue. The company has engrained itself as a premier

brand in the unpredictable sport apparel industry on a global scale in an

unpredictable industry. Trends and fads come and go, and larger more powerful

brands can impact the market in a manner that limits the exposure and the

success of lesser known brands. In the case of Under Armour, its initial focus

was on the niche product market of performance gear and compression apparel.

These were two markets for which the market leaders had entered, but had not

fully addressed the needs of the consumer. Under Armour entered these markets

with the specific goal of filling a void for the consumer by developing products

that would fulfill their needs. In doing so, Under Armour established a dominant

presence in the performance apparel market and established strong brand

equity. This was key to the company's growth and financial viability. The

elements of brand equity are examined here and are evident in the case analysis

that follows.

According to Aaker (1995, 2005), brand equity is a multifaceted theory that

consists of four key elements: brand loyalty, brand awareness, brand perception

and brand association. Each of these elements plays an integral role in the

success rate of developing a high level of brand equity. By strengthening the

dimensions of brand development, a corporation can generate a high level of

brand equity (Yoo, et. al., 2000).

159
 As an organization builds its brand, it attempts to create a level of high

brand equity in the eyes of its consumers. Brand equity theory has become the

focus of many marketing theorists and strategist over the past 20 years (Grassl,

1999). Aaker (2005) conceptualized brand equity in four select categories of

overall brand assets: brand awareness, brand loyalty, perceived quality, and

brand associations (Ross, James & Vargas, 2006). Brand equity is the perceived

value of a product by the consumer (Randall, Ulrich & Reibstien, 1998). It is

considered in the business and academic worlds as a set of brand assets and

liabilities linked to the brand's name and symbol (Aaker, 1995, 2005; Keller,

1993). Both Aaker (1991) and Keller (1993) argue the creation of brand equity is

largely driven by consumers' mental associations relative to a specific brand.

Keller (1993) further explains that brand equity is the extra effects that occur to

the brand above and beyond traditional marketing, simply because of a brand's

name and perceptional image. "Brand equity can be estimated by subtracting

the utility of the physical attributes of a product from the total utility of the brand"

(Yoo, Dontho, Lee, 2000, p. 195). In the consumer-goods sector, like athletic

apparel, brand equity is the added value provided to a brand over other

competitors in the market category that are considered generic equivalents

(Boone, Kochuny & Wilkins, 1995).

Creating a level of high brand equity not only allows the brand to maintain

an advantage in the marketplace, but it also creates an opportunity to experience

success in otherwise untapped markets by establishing a level of awareness and

prestige (Broniarczyk & Alba, 1994). Marketers and advertisers understand that

160
with product parity in the marketplace, the development of brand equity can have

a major impact on the success of the product (Park & Srvinivasan, 1994).

The roots behind brand equity can be traced to cognitive psychology and

the consumer's cognitive process, as well as the signaling theory of information

economics (Erdem & Swift, 1998). There are two key elements to studying brand

equity: "one is financially based motivation, which is to estimate the value of the

brand, and the second is to improve marketability" (Keller, 1993, p.1). Grassl

(1999) estimates that "companies view brand equity from a financial perspective,

in that, brand equity is the net present value of the profit stream attributed to the

price premium of the brand" (p. 315). Brand equity is measured via the price

premium placed on the product simply because of the brand name (Holbrook,

1993; Bello & Holbrook, 1995).

An organization's good name is often its brand name. An organization's

brand equity can subtract from or add to the value provided by a product or a

service to both the consumer and the firm in the marketplace. A trusted brand is

a promise of high quality and good things to come, but a tainted brand can trigger

memories of poor quality and bad service which may drive the consumer to a

competitor (Crispell & Brandenburg 1993). The clarity and credibility of a brand to

the consumer is essential in the development process (Erdem & Swift, 1998)

In sport, brand equity is more critical than ever due to the growth of

technology, the impact of disposable income of the consumer, and the increase

of unique marketing opportunities via the development of new media outlets.

The consumer plays the most significant role in the brand equity process. An

161
increase in brand equity will result in a high level of consumer brand utility

(Randall, Ulrich & Reibstien, 1998). Customer based brand equity occurs when

the customer is familiar with the brand and holds some favorable, strong and

unique brand associations in their memory (Keller, 1993). Corporations with high

consumer brand equity will not only produce desirable outcomes for the

organization, but will also be sought after by other consumers (Gladden, Milne, &

Sutton, 1998). Scholars (Amis et al, 1999) note that consumer based brand

equity is an intangible resource that can add to the perceived customer value of a

product or service. When analyzing consumer based brand equity, it is essential

to understand the measures of a customer's mindset. These measures include

awareness, attitude, association, attachment, and the loyalty that consumers

have towards a brand (Aaker, 1991). Understanding consumers' attitudes and

desires will help create a level of total brand equity.

Consumers have a sense of knowledge, attractiveness, and loyalty to

brands with a high level of brand equity (Keller, 1993). Brands that are

considered high in equity have a financial power over their competitors because

they maintain an increased level of market share and profit margins (Ourusoff,

1994a). Managers understand that the overall value of the brand is what will

drive the success of their business (Keller & Aaker, 1992). Though managers

may understand the importance of building brand equity, efforts to develop it

often get cut for financial reasons (Keller & Aaker, 1992). The process of brand

development is one that takes long term patience and not short term focus. It

becomes important that management maintains the consistency in brand image

162
for the long term, but it is also important that the marketing mix support the

organization's strategic brand position (Buchanan, Simmons, & Bickart, 1999).

The key element is not to confuse the consumer while maintaining a sense of

familiarity. When managers make brand development decisions, they must

consider who is buying the brand, what the consumer wants from the brand, and

why the consumer returns to the brand (Crispell & Brandenberg, 1993). When

building an organization's brand equity, it is key to maintain a consistent image

and strategy in one's marketing plan (Keller, 1993; Park, Jaworski, & Maclnnis,

1986). Corporations that maintain a high sense of brand equity with their

consumer will produce financially favorable outcomes for the organization

(Gladden, Milne, & Sutton, 1998).

Levitt (1960) explains that it is important for companies to define

themselves in terms of the consumer's wants and needs rather than the product

itself. Mainstream marketing has focused its attention to the development of the

brand in the eyes of the consumer and what impact this has in the success of the

product (Gladden, Milne & Sutton, 1998). Levitt, Jean Noel Kapfere (as cited in

Gladden, Irwin, Sutton, 2001) explains that "Products are what the company

makes; what the costumer buys is a brand (P. 301). Expressing one's brand

image is a significant aspect and basic element of the marketing function (Park,

Jaworski, & Maclnnis, 1986).

In the current marketplace, it is the marketer's responsibility to define the

brand in a way that allows as much flexibility as possible, while holding true to

the core values of the product and the corporation (Dunne, 2004). This makes it

163
extremely important for the brand to relate to its target consumer in a very

personal and relevant way (Romaniuk & Sharp, 2002). The development of

brand equity is predicated by how effective the marketing, promotion, and

advertising strategies are. Experts indicate that marketing firms and advertising

agencies are expanding client services to include all forms of marketing and

sponsorship opportunities in order to positively impact brand equity and stand out

from their competitors. Current non-traditional methods like video games,

product placement, athlete endorsement and media exposure via popular culture

are becoming effective means for brand separation (Bonham, 1998, as cited in

Bush, Martin & Bush, 2004). Instead of focusing corporate resources on broad-

in- scope marketing campaigns that are not as focused as they should be,

marketers are better served by identifying the most profitable and actionable

segments of current customers and determining which of their communication

strategies will be the best method of driving the right attitudes, behaviors, and

results that will have a positive branding effect (Davis, 2005). Corporations no

longer need to rely on traditional sponsorship initiatives, such as repeated media

buys, in-game promotions, in-stadium signage and title sponsorship to develop

their brand. These corporations can now leverage several different techniques to

advance their brand image.

Brand equity is a vital tool in the development of marketing platforms and

initiatives (Gladden & Milne, 1999). Successful advertising, marketing and

promotions can enhance a brand's equity in a specific product category, leading

to a significant increase in the positive image of the overall brand (Chaudhuri,

164
2002). A greater level of exposure to the target consumer will have a positive

impact on the brand (Zajonc, 1980; Chaudhuri, 2002). Advertising theory

concludes that in the absence of functional brand differentiation, brand

advertisement must give each consumer some reason, benefit, or added value to

be able to select one brand over another (Ehrenberg, Barnard, Kennedy, &

Bloom, 2002). Successful advertising, marketing and promotion should affect a

consumer's experience. This means advertisers should not just rely on the

marketing message conveyed to the consumer about the brand, but should allow

the consumer to experience or feel the brand (Calder & Malthouse, 2005).

To properly develop a product's brand, advertising and marketing

managers must be able to differentiate their products from their competitors. It is

important for a brand to stand out in the mind of the consumer so that when the

consumer is making a purchasing decision the brand exists in the consideration

set. As noted by Mehta, Rajiv, and Srinivasan (2001), "A consideration set refers

to the set of brands (a subset of all the brands in the product category) over

which a consumer makes an explicit utility comparison or cost-benefit trade-off

before she makes her brand choice decision" (p. 9). An individual's consideration

set affects his or her decision in brand choices, but this choice may vary with the

context-availability, a desire for variety, a mood, an advertisement or retail

display, a special offer, or a whim of the moment (Ehrenberg et al., 2002). For

consumers, the existing brands on the market are broken into different

awareness categories consisting of the majority of brands large or small (Roberts

& Latten, 1991). The brands that are in the consumer's awareness set are then

165
segmented further into those that the consumer actually considers purchasing

(Roberts & Latten, 1991). A high level of brand equity for a product in a specific

category increase's the chance that it will be seriously considered by the

consumer.

Before continuing to discuss the positive effects of brand equity, it is

important to understand that not all equity is positive. Because brand equity is

controlled by consumers beliefs' towards a product, there can be several

unexpected shifts in brand equity (Dawar & Pillutla, 2000). Financial studies

show that product recall has a direct affect on costs normally related to a product

recall, but just as important is the indirect affect on the consumer's views of

brand equity of the product (Davidson & Worrell, 1992; Pruitt & Peterson, 1986,

Dawar & Pillutla, 2000). Negative advertisement and publicity alter the

perception and association of brand equity which negatively affects the value of

brand equity in the eyes of the consumer Dawar & Pillutla, 2000). Keller (1993)

explains that when a product comes under scrutiny, the brand equity will diminish

which affects the consumers purchasing of the product. If the consumer feels as

though the product does not meet their needs there will be no sale (Levitt, 1980).

Due to the influence of negative brand equity, it is imperative that managers

maintain a consistent level of equity in their brand (Levitt, 1980).

166
 Method

Aaker's (2005) strategic market management theory provided a framework for

an external and internal corporate analysis. The key to this strategic theory is to

provide management with a vision of their own business, monitor and understand

their environment around them, generate their strategic options that will allow

them to adapt to changes that face a business, and develop strategies based on

competitive market advantages (Aaker, 2005). Aaker's (1995, 2005) internal

analysis consists of examining the consumer, the competitor, the market and the

environment for which the organization is in. Aaker's (1995, 2005) external

analysis examines performance and strategic options. Porters (1980)

Competitive Forces Model was also used to examine Under Armour's positioning

relative to its competition. The analysis and model was used in conjunction with

interviews of branding experts and Under Armour executives to provide an in-

depth understanding of Under Armour's brand development strategies.

The use of qualitative interviewing methods was most appropriate for this

research. It consists of key elements that are beneficial for this type of analysis.

Qualitative research consists of data that is interpretive and is based on

naturalistic observations that examine different roles of everyday life (Obermeyer,

1997). Qualitative research also provides the ability to capture the point of view

and perspective of individuals and their thoughts on that which one inquires and

finally the use of triangulation helps provide an in-depth view of the analysis

(Obermeyer, 1997). When focus of the research subject is exploratory in nature,

167
and seeks to unearth and understand something, or if the research attempts to

find meaning or understand the experience of a given situation to a group of

individuals then qualitative methodologies would be appropriate (Strauss &

Corbin, 1998; Symon & Cassell, 1998, Thomson, 2004). Qualitative analysis

strategy lends itself to a research design that utilizes qualitative methods to

collect the data, analyze the data, and draw conclusions from the data

(Thomson, 2004). Several themes emerged from the frames of this research and

are discussed in the results section.

Results

The results from Aaker's (2005) and Porter's (1980) analysis identified

several key success factors of Under Armour. These factors are presented in

Table 1. "Key Success Factors are those variables that management can

influence through its decisions and can affect the competitive market

environment. These decisions are affected by two main factors, "economic and

technological characteristics of the industry and the competitive weapons for

which each firm in the market has built their strategies on" (Hofer & Schendal,

1978, p. 77). For this research, a Key Success Factor Analysis of Under Armour

was conducted to better explain the competitive market in which the brand

competes.

168
Table 1

Key Success Factors of Under Armour

Primary KSF's Secondary KSF's

Brandy Loyalty/Brand Identity Continuing to stay on top of research
3. Increased brand loyalty will and development
ensure the continued success of
the brand

4. Maintaining brand image and

synergy of message

Increase of exposure in marketplace via Success of sponsored teams and

sponsorships, licensing, merchandising, athlete exposure
and broadcasting contracts will help
keep brand strong
Expansion into the European market Image outside sport
1. Popular culture
Monitoring the success of shoe product
Growth of retail sales presence

A key finding from the research was the importance of synergy in the

brand development process within the current marketplace. It was evident

through the data that maintaining a synergistic strategy in the development

process is vital to the success of the brand. Five synergistic brand development

methods emerged from the data. These methods are interrelated and are

highlighted in Table 2.

Each of these five methods is vital to the brand development process.

When using these synergistic methods it is important to note that each is as

important as the other. This synergistic strategy is similar to the development of

positive brand equity. According to Aaker (1995, 2005), brand equity is a

multifaceted theory that consists of four key elements, brand loyalty, brand

awareness, brand perception, and brand association. Each element plays an

169
integral role in the success rate of developing a high level of brand equity. When

brand awareness, brand association, brand perception, and brand loyalty are

linked, brand equity is increased.

Table 2

Five Synergistic Brand Development Methods

170
 The five synergistic methods of brand development can be used as

strategic tools for organizations to use in developing, refining, and maintaining a

certain brand image. When using these elements, it is important to focus on how

each method integrates with one another. Together these methods are stronger

than each is alone. For instance, understanding the consumer is integral in

knowing how the brand will relate best to them. Understanding the brand is

critical to understanding what consumer the brand is reaching. Understanding the

brand and the consumer allows for the brand to seize opportunities in the market,

by knowing what brand message will be most effective and by establishing the

needs of the consumer. In seizing the market, it is important to know the most

appropriate vehicle to use to communicate the brand message to the consumer.

Once the brand has its communication vehicle, it then becomes critical to

differentiate the brand from its competitors.

As the research illustrated, there are several ways to approach each of

these methods. Under Armour saw an opportunity to meet the consumer's

needs by creating top-of-the-line performance apparel. They understood who

they wanted to wear their gear - the active consumer, both young and old. Under

Armour understood its brand and the brand message was one of intensity. Thus,

all communications with consumers were consistent and positioned the brand as

one of intensity. Under Armour felt the most appropriate vehicle for brand growth

allowed the brand to grow organically via product seeding, personal

endorsement, and word of mouth marketing. The company differentiated itself by

owning the market and staying consistent in its brand communication. Under

171
Armour did not force the brand on the consumer. Rather, the company allowed

the consumer to grow with the brand.

Results of the research indicated that integration of marketing and brand

development strategies is more important than producing a quality product.

While producing a quality product is of great importance, it is not as important as

developing integrated and authentic brand management strategies. A mediocre

product can thrive if the appropriate marketing strategies are development. An

integrated and synergistic brand development method is key in positively

impacting the brand and achieving long-term brand recognition and loyalty. When

these strategies are aligned to support a high quality product, such as Under

Armour, the brand can dominate its market. This synergistic method of brand

development is not something that can be conducted once and forgotten. It

requires continued analysis as the brand develops. It can be easy to lose sight of

where the brand is going, so the synergistic brand development method provides

an organization with the ability to continually monitor the path of the brand.

The common themes for this present research emerged from a

combination of sources. These themes highlighted several perspectives and

important elements central to the brand development process. From the

interviews with outside branding experts, five frames emerged as key points:

audience/consumer, brand, brand message, message vehicle and differentiation.

From these frames, several themes became apparent. The individual themes of

knowing the consumer, understanding the brand, understanding the brand's

message, using the appropriate vehicle for the message, and differentiating from

172
competitor's brands emerged from the frames. After conducting this analysis of

the interviews with Under Armour executives, five frames were determined:

differentiation, consumer/audience, promotion and marketing, opportunities, and

brand positioning. From these frames, the individual themes of differentiation of

the brand, understanding and knowing the consumer, significant promotion and

marketing of brand, seizing opportunities to own the market, and brand

positioning emerged.

Results of the interviews with branding experts and Under Armour

executives revealed that several different methods of modern brand development

are used in sport marketing today. Interviewees explained the use of modern

technological methods like television, radio (both terrestrial and satellite),

internet, viral marketing and mobile technology are all modern day technologies

that are used to deliver the brands' message. The research explains that more

important than the vehicle for which the message is being delivered, is the

strategy that current branding executives use to develop the brand in the current

marketplace. These methods are consistent with the modern day branding and

marketing strategies that can create a successful brand. Understanding the most

effective way to reach the consumer with the brand's message has become the

top priority for branding executives. With the enhancements in media, the

modern day strategy for brand development revolves around the focus on the

target audience that can be reached.

Under Armour reaches its target consumer by creating platforms geared

towards these consumers. Examples of these modern day methods include

173
Under Armour's use of technology to reach its target consumer, the teen. This

has allowed the target consumer to stay connected to the authenticity of the

brand. Understanding that the youth market is its target market and the most

valuable to the brand, Under Armour created a grassroots campaign to host 14

elite football combines nationwide (Mickle, 2008). Even though these Under

Armour Combines reach just 3,200 high school players, Plank believes one

athlete will return to their high school with Under Armour gear and influence

others to purchase gear" (Mickle, 2008) Grassroots campaigns like this allow

Under Armour to stay connected to the teen athletes (Lefton, 2008). The

connection is intensified through the use of the technological vehicles that teens

utilize in their everyday lives.

Another example of a modern method strategy that Under Armour

developed is the Under Armour tour bus. The Under Armour tour bus delivers the

brand directly to the target consumer. It provides a tangible experience for

consumers while exposing them to the true authentic nature of the company's

products. The tour bus is wrapped with the Under Armour logo, and once inside,

visitors learn the history of the brand, can engage in product demonstrations, and

watch high definition videos of elite athletes utilizing the products.

Through analysis of the interviews and literature, it was determined that

the use of modern methods of advertising and marketing had an impact on the

development of the Under Armour brand. The interviewees explained the

importance of "owning" a product category. Regardless if it is top of mind for the

consumer, developed in a vacuum, or created in a category where white space

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exists, seizing the opportunity to "own" a product category can be key to the

developmental success of a new brand.

The data illustrated the use of personal endorsement as an effective

means to develop a new brand. Personal endorsement has a rich history in

sport, and is considered a traditional advertising method. However, the key

difference in personal endorsement of the Under Armour brand was in the

manner in which the company seeded its products to the athletes. This form of

product seeding has allowed the company to organically grow its brand and

develop a sense of authenticity for the product. This was accomplished by

exposing the product to athletes and allowing the features of the product to sell

the product. This authentic relationship between endorser and brand conveys to

the consumer that the relationship is not artificially created. Under Armour

created this type of relationship with its endorsers by product seeding rather than

using paid advertising.

Whether through paid solicitation or unpaid solicitation, product

endorsement is an extremely effective method in creating awareness for the

brand. A prime example is Under Armour's partnership with Cat Osterman, the

US National Team softball pitcher and 2006's Softball Collegiate Player of the

Year and with Kimmie Meissner, the 2006, Women's Figure Skating Champion.

Both women are outfitted exclusively in Under Armour's performance gear.

Osterman wears Under Armour branded apparel and footwear on and off the

softball field, and Meissner wears Under Armour during non-competition ice-time

175
and training. These two partnerships are strategically aligned with the brand's

continued focus on creating awareness for its emerging women's line.

The data collected also explained that relating to the consumer and

creating an authenticity through the product itself, allows the consumer to grow

towards the brand. In becoming authentic to the consumer, it is important to have

a consistent message in tone and platform. Having a consistent message is not

a new idea in the branding or marketing world, but the focus and importance of a

singular message is more critical today than ever before. Under Armour has

shown that the use of a consistent message helps keep a synergy between

product lines. It is easy to confuse the consumer if the brand message is

changing and not constant. In today's crowded marketplace, a consistent

message is important in maintaining a connection between the consumer and the

brand. The literature and the interviewees explained that once a brand has been

established, the protection of that brand and its message becomes just as

important as continued development.

It was determined that the percentage of Under Armour's market share

can relate to brand development. The data that was collected showed that

branding can have an impact on the overall market share. The development of

the Under Armour brand via product seeding, product placement, personal

endorsement, and word of mouth marketing helped increase brand exposure.

This brand exposure led to an increase in sales which helped create a market

share lead in the performance category. Being a unique brand in an emerging

category allowed for continued success in brand development, and this boosted

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revenue growth. The stronger a brand is, the more likely it is to have a significant

hold on its categories' market share.

As an increase in brand loyalty, perception, association, and awareness

occurs, so too does the positive effect on consumer buying habits. Consumer

buying habits can positively or negatively affect the growth of market share. In

this case, the positive feelings of the consumer towards Under Armour helped

develop a loyalty to the brand. This positive identification with the Under Armour

brand directly impacted its market share position, as evidenced by the consistent

annual increase in revenue.

Through the literature analysis, interviews and Aaker's (2005) Strategic

Market Management Analysis, it was determined that the methods for which

Under Armour positioned its brand and continues to position its brand have a

significant effect on its successful development. The data showed that the

consistent image and message of intensity in performance wear helped Under

Armour achieve success in its market. The aggressive tone and message that

Under Armour portrays has proven effective and instrumental in its financial

viability. The interviewees explained that Under Armour's message "built by

professionals for professionals" had successfully reached and resonated with

several different demographics. The data also explained that in addition to the

consistent tone and message, Under Armour produces a high quality product

which synergizes the message and the product. The interviewees explained that

the product provided its own marketing tool based on its quality. They noted that

a successful product generates buzz for itself and will have a market impact by

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the walking endorsement from nonpaid endorsers. The data showed that this

was a key factor in establishing credibility and authenticity for the Under Armour

brand among its target consumer base.

Discussion and Conclusions

Many studies have focused on the brand development process (Aaker,

1991; Keller, 1993, 2003; Romaniuk & Sharp, 2002; Kerr & Gladden, 2008;

Gladden & Funk, 2001). However, few of these studies examined the specific

methods utilized in the developmental process of the brand in the current sport

marketplace.

Under Armour was a company facing intense competition when it first

entered the market, but it utilized nontraditional marketing methods to impact the

marketplace. It was unique since it was able to take a small brand in a niche

category and develop it into a market power. The company used non-traditional

methods to develop its brand image quickly. Under Armour did not have the

financial resources to compete in distribution, marketing, promotions, advertising,

and high profile celebrity endorsement etc., so the company used creativity in

devising a marketing plan that worked on a limited budget. Under Armour's

methods included product seeding and athlete endorsement, product placement,

word of mouth marketing, popular culture and free media exposure to develop

the brand.

The data revealed that Under Armour has utilized a modern day

philosophy in cultivating its brand image. The company was able to establish

itself as a premier brand quickly, due to its perceived creation of a product

178
category that met the consumer's needs. This ownership of the market allowed

the brand to dominate market share in the performance apparel category. Today,

as shown by Under Armour's success, brand messages can reach the consumer

in more direct and interactive ways. The exposure that athletes receive allows

for a more organic connection between personal endorser and consumer.

Methods like personal endorsement, the use of integrated public relations, the

use of word of mouth marketing, the use of product seeding at the high school,

collegiate, and professional levels are all methods that have impacted the growth

and success of the Under Armour brand.

Under Armour's modern day brand strategy centered on organically

growing its product within the athletic community. Executives at Under Armour

believed in their product, and this belief combined with their marketing strategies,

allowed them to forge an authentic relationship with their target consumers. It

helped create the brand message that Under Armour wanted: that the product is

good enough for the world's best athletes so it's good enough for you, the

consumer. This modern day strategy, seeding the product at little cost to those

individuals who could demonstrate the proper use and benefits of the product,

became the main strategic focus.

Under Armour was seen not in advertisements but in sports reports, or

post game interviews, work out interviews, press conferences and other off the

field activities. This exposure and synergy of modern methods combined with a

firm understanding of the company's brand message created a key advantage for

Under Armour relative to its competition. Each Under Armour product carries the

179
same brand message. This synergistic thought process continues to help

develop and deliver its brand message. Creating a consistent brand message

across product lines allows the consumer to know exactly what it is they are

getting when they purchase an Under Armour product. There is no confusion

between lifestyle goods or performance enhancing goods. Everything that has

the interlocked UA logo is meant for performance wear. As Under Armour has

developed beyond its original compression performance shirt, it has maintained

its message of superior performance enhancement goods.

As illustrated in the literature and in the data, it is important for brands to

cut through the clutter that surrounds the consumer on a daily basis. It was

explained that there are several methods that can be utilized to rise above the

clutter, like owning a market in a vacuum, making your brand top of mind, finding

white space in the market, differentiating your product and segmenting. The

interviewees explained the use of the internet, cable television, and mobile

phones allows for a more direct and interactive marketing approach. This direct

and interactive approach to marketing has become a key modern method

strategy of brand development. When using new forms of technology,

companies disseminate unaltered messages about their products directly to their

target consumers. They engage the consumer and expose the consumer to the

benefits of the product in a much more interactive and effective manner. In a

cluttered marketplace, this integrated modern approach is essential in

differentiating products from competitors.

180
 The modern use of technology has aided companies in more appropriately

reaching different target consumer segments. As one interviewee noted, different

vehicles are now used to drive different messages to different target consumers.

For example, different brand vehicles are used to appeal to consumers in

different age groups. As one branding expert external to Under Armour noted,

"We're doing a lot of virtual stuff- mobile and definitely a lot around the web, I think viral,
especially for teens (is important), it seems like word of mouth from their own peers is
pretty influential. But for the kids, at least the teens we're trying to get out there, there's a
lot of Youtubes (videos) and interactive websites. We text people and let them know
when the latest and greatest products are hitting. If you're a crazy Jordan guy then you
can now be on the list to get the text that says the Jordan 23 launches next week at your
local Champs or wherever it goes".

The emergence of new satellite and cable television networks and

programs not only provides the brand with the opportunity to reach its target

consumer on a more intimate level, but it also provides a cost savings

opportunity as well. Under Armour Executive B explained that media coverage of

Under Armor athletes provided unsolicited and free brand development

opportunities. "We had athletes wearing it and showing up in Sports Center,

showing up in different magazines, and people go searching for it. That's the

ultimate test. When people can't find something, they continue to search for it.

And then, you know, it started with some pretty intense commercials that

differentiated ourselves in a very targeted area. So we weren't putting it on the

Oxygen network, we were targeting football players who watch football games.

So people might have seen tons and tons of commercials, but they might have

been seeing every single one of them." The increase in direct message

opportunities meant less money was wasted in broad media buys, which might

only hit a portion of the target audience.

181
 Under Armour also leveraged free media exposure through programs like

MTV's Real World/Road Rules Challenges. This show reaches the brand's

youthful target demographic while enhancing the performance angle of the

product. The contestants compete each week in the extreme physical activities

while wearing Under Armour gear. Under Armour has the exclusive right to

competition outfitting for the show. This type of product placement is doubly

successful due to the consistent replay of the program on MTV, so the product

placement provides multiple exposure throughout several broadcasts.

While new technology now plays an integral role in brand management,

the data also revealed that traditional means of generating brand awareness are

still viable and often utilized. For example, personal endorsement, television

advertisements, print ads, and public relations are all still effective. However,

companies have refined their use of these methods and developed a more

modern approach to there use. As noted in the data, these modern methods

center on the synergistic efforts of several different key aspects in brand

development. These aspects include the use of both traditional and modern

tactics to establish an emotional or "authentic" connection with the target

consumer through the communication of a clear and consistent brand vision. The

data illustrated that in establishing "authentic" connections, brands must become

a daily part of target consumers' culture and lifestyle. The interviewees

consistently stated that understanding the brand and the consumer are critical to

the success and longevity of the brand. Interviewees explained that branding

182
executives should focus on fully understanding the brand message that is

conveyed and how it relates to the daily life of the target consumer.

The data illustrated the importance of touching the consumer from an

emotional perspective. Consumers must feel as though they are part of the brand

and that the brand is part of them. The ever-growing lifestyle of the consumer

crosses over from sport to entertainment to everyday life, more so today than

ever before. It is paramount for brands to adapt to this. As one branding expert

external to Under Armour illustrated,

"what we do is in large part - the lion's share of what drives your market share in the
marketplace, is that story you're able to tell with your brand, the relationship you build
with your consumer, and therefore, their willingness to pay X for your brand. We can do
TV advertising on cable, a lot of cable stations and we have traditional avenues of out of
home and print. It's interesting, I think, if you look at how consumers engage with brands
and each other, it has probably changed more in the last fifteen to twenty years,
especially with the advent of online, social media and they way that people interact. It's
probably changed more dramatically in the last twenty years than in any other time in
history, recent history. And yet marketers really continue to approach things in a very
traditional way....everybody will talk about, (a special) web strategy, but it always feels
like it's a bolt on. It's like, I'm doing all this other stuff, but then I'm doing this (extra) cool
web thing. I still have advertising, I still have sponsorships, I still have sampling
programs and I also have this web thing.- I'm (focused) on all of the ways that my brand
sort of interfaces or touches consumers. I want to create those interfaces in a way that
isn't me yelling my message to them, but rather looking for opportunities to weave my
brand into their life, their social fabric, in ways that are sort of inviting it in as opposed to
me shoving it at them".

Under Armour utilized different methods to reach the consumer with its

brand message. It initially reached the consumer via personal endorsement from

elite athletes that were provided product by means of product seeding. Under

Armour then leveraged the product by word of mouth marketing to increase

exposure to the consumer. As the brand has grown, the company uses its

website www.underarmour.com to drive product awareness and create another

outlet for product sales.

183
 Under Armour utilizes product placement via television on shows like the

Amazing Race, MTV's Real World Road/Rules Challenges, and ESPN's

Playmakers. Under Armour also utilizes the big screen for product placement

opportunities. Under Armour's brand is exactly what movie executives look for

when trying to create an authentic feel in their films. Understanding the need to

reach a most important demographic, the High School athlete, Under Armour has

begun to sponsor the High School All-American game airing on ESPN. Under

Armour has also created an Under Armour High School combine that provides

another opportunity for the company to showcase the best football talent in

America. Along with its high school sponsorship involvement, Under Armour has

begun to have more of a presence with signage. The company now has in-field

signage at historical baseball stadiums like Fenway Park and Wrigley Field.

Another key finding evident in the data was the use of personal

endorsement to drive the brand. As mentioned earlier, this is not a new concept

as the practice dates to the beginning of sport. Many interviewees noted that

today it is vital to allow the brand and the endorser to grow together organically.

The brand should have true brand ambassadors, meaning the endorser should

support the brand because he/she uses the brand and enjoys it. It should not be

a "fake" relationship driven by financial terms. The interviewees explained that

the more organic the partnership between the endorser and the brand, the more

authentic the brand will become for the consumer. The interviewees also

explained that the authenticity of the brand is invaluable in establishing brand

credibility. Consumers want to feel the authenticity of the brand, but the

184
interviewees suggested that if this authenticity is not naturally developed,

consumers will perceive it as fake. One branding expert external to Under

Armour noted this when stating "the brand needs to stay authentic to the loyal

consumer."

The research revealed that a key element of successful modern day

branding strategies is differentiation. The use of modern day branding strategies

assists in the differentiation process of the brand. Sharp and Dawes (2002) noted

several different perspectives on differentiation. "Differentiation makes the

product desirable, therefore you will make more sales and more profit.

Differentiation makes the product unique, therefore price comparisons are

difficult and you can get away with charging a higher price. Differentiation means

the offer is unique and highly valued, therefore demand will exceed supply and

you can charge a higher price. Differentiation causes brand loyalty; therefore

marketing costs will be lower because it is cheaper to sell to existing customers"

(p. 740).

Differentiation can happen in several ways. Porter (1985) suggested the

most effective way to differentiate oneself is by being the standard by which all

competitors are judged. The interviewees explained finding an unmet need or

vacuum that existed in the marketplace was effective for Under Armour in

becoming "top of mind" for the consumer. If sport brands can find white spaces

in the market, they can then own that market. Interviewee A suggested "you

have to own the property. Not own as in you're paying all the money for it, but as

185
in, you have to be the premier property. And I think right now, it has to blur the

line between lifestyle choice and a sports or entertainment property."

The results indicated that Under Armour chose to differentiate itself by

creating a singular brand message. Under Armour executive A discussed this

noting "where we're still small, where we can be focused and crystal clear. And I

think that's one of the ways we differentiate ourselves. You'll see us go to market

with a single point of view, and that single point of view will carry us through the

entire year. I think we break through and differentiate ourselves by having a

singular crystal clear focus and that we run through our entire, all of our business

categories, under one single brand umbrella. We don't have any conflicting

messages in the marketplace. As a result- we don't have the dollars to spend that

they do - so we have to focus them and make impact and make headway with

those dollars." Porter (1985), supports this identifying cost leadership as key in

differentiating products and in creating an advantage over competitors. "Cost

leadership and differentiation can be achieved at the same time when there are

important interrelationships between industries that one competitor can exploit

and others cannot" (Porter, 1985, p. 19).

Building a strong relationship with target consumers enables the brand to

effectively differentiate itself. Differentiation can lead to brand loyalty, a high level

of brand perception, an increase in positive brand association, and brand

awareness. When each of these branding elements is positive, it will correlate to

a high level of brand equity. Creating a level of high brand equity not only allows

the brand to maintain an advantage in the marketplace, but it also creates an

186
opportunity to experience success in otherwise untapped markets by establishing

a level of awareness and prestige (Broniarczyk & Alba, 1994). Marketers and

advertisers understand that with product parity in the marketplace, the

development of brand equity can have a major impact on the success of the

product (Park & Srvinivasan, 1994). Consumers have a sense of knowledge,

attractiveness, and loyalty to brands with a high level of brand equity (Keller,

1993). Corporations that maintain a high sense of brand equity with their

consumer will produce financially favorable outcomes for the organization

(Gladden, Milne, & Sutton, 1998).

Summary and Suggestions for Future Research

Many studies have focused on the brand development process (Aaker, 1991;

Keller, 1993, 2003; Romaniuk & Sharp, 2002; Kerr & Gladden, 2008; Gladden &

Funk, 2001). However, few of these studies examined the specific methods

utilized in the developmental process of the brand in the current sport

marketplace. The cornerstone of this research focused on the Under Armour

brand. Utilizing marketing and brand management theories, this study analyzed

the strategies implemented by Under Armour in establishing the company's

current positioning in the sport performance apparel marketplace.

This study has provided a foundation for future research on sport brand

management. Future research should examine Under Armour's expansion into

the shoe market, its product extensions, and its global expansion relative to

brand strength. As the company expands in the aforementioned areas, brand

equity may be impacted. Additionally, a quantitative study analyzing consumer

187
perceptions of the Under Armour brand would benefit both researchers and

brand developers. The company has been steadfast in its brand development

and has not deviated from its original brand message. As it continues to grow, its

brand message should be monitored and analyzed to determine the longevity of

its impact.

188
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220
APPENDIX

221
Data Display 1
Interview Frames based on Aaker's (2005) Four Key Elements of Brand Equity
and Brand Equity Theory
Question Literature
Brand Loyalty Development of brand
equity- generates positive
word of mouth ~ affects
bottom line (revenue) --
Brand protection-
consumers marketing
agents via personal
endorsement - helps
maintain high price points
222
Interviews
Establish rapport and
relationship -
Engaging and
Knowing Audience -
Protection of brand -
Advantage over
traditional products-
personal
endorsement - Word
of mouth - Product -
Exclusivity -
Branching out but
staying true to base -
Connecting with the
Consumer -
Authenticity
 Brand long-term success the Overall Impact -
brand-- Consistency in Create Identity -
Perception
marketing strategies and Identification with
initiatives - brand image - Tone of
knowledge- publicity and Message - Advantage
stereotypes are influential - over traditional
- consumer's willingness products - Stay true
to purchase—maintain. to brand - edgy -
Price points- Product -
differentiation, attracting Creating Emotion -
interest, creation of line Consistency with
extension, influenced by Message -
physical qualities, price, Service the Brand -
promotion, advertising, and Public Relations -
packaging Differentiation
- Emotion - Cut the
clutter - Creativity in
Packaging

223
 Brand shapes consumers
Awareness attitudes on product image, Alignment with
elements that factor into audience (tone) -
the overall awareness of a Identification with
brand can be the location, image - Identifying
individuality, motto and Your Audience -
advertising campaigns- Public Relations -
repetition to impress the Knowing your Brand -
advertised name upon the Knowing your product
consumer's -
consciousness, creates Cut the clutter -
competitive advantages, Supporting Brand
and long term value- Image -
brand recognition and Protection of brand -
recall - Presence in the Advantage over
mind of the consumer- traditional products -
affect of the consumers Stay true to brand -
consideration set - affects edgy-
communication impact - Connecting with the
Protection of Brand Consumer - Creating
reputation— Brand Emotion -
quality and message Word of mouth
consistency - "bundle" of
associations critical in
making purchasing
decisions- critical to the
developmental process

224
 Brand feelings and attributes Consistency with
Association towards a brand.-- linked in Message -
memory to the brand- Authenticity -
impact purchasing Connecting with the
decisions -- builds and Consumer - Creating
maintains image between Emotion -
target and consumer- Supporting Brand
consistent communication- Image -
- Differentiate Key Message -
Know the Brand -
Identification with
image -
Competitive without
rights -
Standing out in
Clutter -
Alignment with
audience (tone) -
Create Identity -
Association with
Attributes -
Knowing.ldentifying &
Aligning with Your
Audience -
Knowing your Brand -
Knowing your product

Differentiation -
Segmenting (D)

225
 Data Display 2
Outside Branding Expert Responses per Interview Question
Q: Role of branding in marketing and creating buyer loyalty?
interview A Interview B
They want to know why 1 think it seems that people
something is like to sort of put the cart
sponsored, and why before the horse and try to
something else isn't. build a brand before the
And they want to feel actual product has had time
like they're being taken to gestate. But - it's certainly
care of.-l think it's got important to have a
to be about supporting consciousness of the brand
a brand image. And 1 as you're building something.
think it definitely -- And mostly for the sake of
creates a loyalty, consistency, you know? So
particularly when people, everybody
people see themselves understands that you have
in the property. -- That one message and represent
people can relate to kind of one idea
that product, that
people can emotionally It's important to understand
relate to it that you have one message
and represent kind of one
idea, but 1 think it's become
an over hyped concept.
Being conscious of what your
brand stands for and how
people perceive it is different
than promoting it. 1 think
1 think always if you're new,
and your budgets are limited,
PR is always the best way to
go.
1 mean, it's free media, right?
You know, getting a passage
or lead and sending it out to
all the writers from print to
television, to the [? 81], which
is the most effective?
Yeah, all these terms like
word of mouth and buzz and
viral and all this stuff is just -
it's really just all PR.
Interview C
Branding was one of the
things that we had identified
as being the thing that was
missing—kind of the most
critical part -Kind of lead role
in building that brand.-: Ok,
perfect. So, I mean—so I
guess for me, it was sort of
like coming in and going, wow,
you know, there's no
consistency or communication.
You know, we've got this PB
platform, you.know, what it is
that we're trying to say when
we go on - So I think from a
branding perspective, that was
one of the first things that I
was sort of, you know, told to
kind of, hey, this is what we
really need to get established.
So I think from a branding
perspective, that's sort of like
the first thing that—from a role
standpoint, I think that's sort of
the first thing that a company
or, you know, whomever you
are kind of have to establish
first; it kind of sets the
overarching direction for the
company or for the product, for
the marketing, for kind of
everything that you're going to
do to communicate to the
consumer.
226
Interview D Emerging
Codes
If you define it as truly your Creating Emotion
brand name of your product, (A)
" it's one piece of many Supporting Brand
interaction points you will have Image (A)
with the consumer. So, I think Key Message (B)
in that case, the product name Know the Brand (B,
says something about the D)
brand in the same way that the Consistency with
color would, the price point Message (C)
would- You would basically go Service the Brand
through your memory bank and (D)
it would be the sum total of Establish rapport
your impression of that person: and relationship
the way they dress, they way (D)
they carry themselves, the way
they talk, et cetera, - I call
customer service and it gets
sort of bounced all over the
place and you sort of walk
away from that saying, that
experience does not feel like a
premium, high-quality product,
you might sour on - you know,
that's not a brand I want to
associate with.--1 think you
can think of a brand very
similarly to that in the sense
that it is the some total of all of
the things that create
interactions with people. And
that's really how they
determine whether that's a
relationship they want to be
engaged in or not. So it, if the
brand name appeals to them
and it says the right things, and
let's just say for argument's
sake I'm in a category and I'm
looking for a premium brand, a
step-up brand, and I have a
complaint about a product.
Q: Effective means for a new company to position its brand?
branding is done through
association with various
attributes of the brand.--
That's where your value
comes on the sports side,
with branding, is that you
have got to make sure
your messaging is dead
o n . - I'd figure out what
they are, and that's where
I'd enter. 1 think the big
thing now, and something
that's very effective,
owning your own. 1 mean,
you have to own the
property. Not own as in
you're paying all the
money for it, but as in, you
have to be the premier
property. And 1 think right
now, it has to blur the line
between lifestyle choice
and a sports or
entertainment property.
1 can't imagine if 1 was
launching something, from
the ground up, ever spending
a penny on any of those
(multi) media right off the
bat.- : 1 think always if you're
new, and your budgets are
limited, PR is always the best
way to go.
1 think TV is still the most
widely used, for legacy
reasons, you know? So, as
much as people talk about the
fact that TV doesn't work and
it's over saturated, and all this
stuff, it's still the most money
is still buying television and
print and radio, you know?
You have to know what that
product(brand) stands for
because everybody's got to
kind of find their niche, - That's
definitely (consistency in
brand message), and 1 think
that's sort of again, kind of -
you didn't know, how could
you be consistent if you didn't
really know what you even
were working toward,
227
Positioning is interesting, Association
because it's sort of back to the with Attributes
question, positioning off of (A)
what? Especially if you're Messaging (A,
working in crowded categories, B,C)
it gets more and more Knowing and
complicated to truly find unmet Identifying
needs.--1 think it's very difficult Your Audience
to find positioning that is going (A)
to engage the consumer and Public
be long term sustainable. If you Relations (B)
can find a point where 1 have Knowing your
both an emotional benefit and Brand (C)
a functional benefit, and ideally Knowing your
those things are linked, then 1 product (D)
think you have a really Emotion (D)
powerful positioning there, that
can not only kind of cut through
the clutter in the marketplace,
but also be sustainable.
Because it isn't solely based on
the functional benefit of the
product.--1 think segmentation
studies are a very important
place to begin, because it
helps you get a sense of where
there's wide space in
categories. It helps you get a
sense for the roles that
different brands have. But it's
very key in terms of how you
set those (roles) up~
Collectively, it's such a -you
sort of combine that with sort of
the emotional resonance or
attachment people have to the
brand.
 to position their brands?
Q: Typical strategies companies use
Because they're trying to
make it a more engaging
experience. - But if you're
out there, and you're a new
product, and you're trying to
enter, and you're looking for
what's the next thing people
are going to catch onto,
everything we've talked
about right now is so much
a part of American culture
that 1 think it's difficult for
sponsors to differentiate
themselves. - definitely
there is a lot of crossover
there between, you know,
your brand attributes
versus 1 guess the synergy
that you have with
whatever you're
sponsoring.
And so -owning the lifestyle
space that you're
competing in - 1 mean, it's
not even a competition if
you own it.—Part of it is,
where is technology going,
where is the consumer
going, and you have to be
on the front edge of
creating and owning the
lifestyle.
Things are becoming more
geared towards the internet.
And mobile after that. Yeah,
as phones becomes fast and
speeds become faster and
they develop phones that
open up and have larger
screens and things.
1 would totally say that (TV)
was our biggest vehicle to kind
of the - trying to put it
(brands)(Differentiate) into
buckets. So, there's the
running - we've prioritized.
There's so many things we
can be into. We can be into
basketball, running, sport
culture, team sports
228
And 1 think there's a really Engaging and
interesting case made for the Knowing
fact that you'd be better served Audience (A,
to throw out all the descriptors C,D)
of the type of activity that Differentiation
you're doing. So, I'm not going (A, D)
to worry about categorizing Lifestyle (A, D)
something as advertising or Television (B,
promotion or sampling or PR., C, D)
and I'm really just going to Segmenting
think about all of the ways that (D)
my brand sort of interfaces or Transitioning
touches consumers. And 1 from
want to create those interfaces Traditional to
in a way that isn't me kind of Non Traditional
yelling my message to them, (A,B)
but rather I'm looking for Emotion (D)
opportunities to weave my
brand into their life, their social
fabric, in ways that are sort of
inviting it in as opposed to me
shoving it at them. And 1 think
that's really, really different
mindset. It's like building a
relationship basically. -- So, at
the end of the day it is trying to
understand the consumer,
whether you're doing a text
message, you're still doing the
advertisement and the
newspapers and the quote
unquote tradition stuff, via
sponsorship.
Q: How have brand management strategies evolved?
it's that crossover now
between sports and
lifestyle. It's where
consumers meet, especially
the younger consumer right
now, and where they
develop their brand loyalty. -
- Understanding where is
technology going, where is
the consumer going, and
you have to be on the front
edge of creating and
owning the lifestyle.-- And
most of the people will pay
the price(for premier
sponsorship). Because they
want half the clutter now.~
People are expecting a
lifestyle experience now
when they go to events.
That's why half-time shows
are getting outrageous, and
the pre-game, and all the
fan interaction in between,
and now you've got arenas
that are putting in feedback
statistics monitors for the
fans and you have all of
these different thinks going
on. Because they're trying
to make it a more engaging
experience.
find a program that works
for us, and it works for the
other partners, and we'll
pay a little bit more for it.
And a lot places are
charging even a premium
above that.
Do it right. Do it right and
service them and make
them happy,
better targeting, which is a
great development. Both in
cable and with the internet.
So as much as you have
people talk about fractured
media and now you have to
go so many more places to
reach the same amount of
people, you can target so
much more specifically with
all of those media, it's terrific.
Yeah, (more focus) A lot less
wasted media dollars
So you stay authentic to the Because there is very little to Age/Lifestyle of
people who are loyal do - the rational side of it just Consumer (A)
becomes unreasonable even Message (A,D)
to support, and the emotional Engaging (A,D)
piece is what the brand is built Technology (A, B, D)
on. So, back to market share, I Defining products and
feel like what we do is in large lifestyle (A)
part - the lion's share of what Cut the clutter (A)
drives your market share in the Service (A)
marketplace, is that story Authenticity (C)
you're able to tell with your
brand, the relationship you
build with your consumer, and
therefore, their willingness to
pay X for your brand.-- We can
do TV advertising on cable, a
lot of cable stations and we
have traditional avenues of out
of home and print. It's
interesting, I think - , if you
look at how consumers engage
with brands and each other, it
has probably changed more in
the last fifteen to twenty years,
especially with the advent of
online, social media and they
way that people interact. It's
probably changed more
dramatically in the last twenty
years than in any other time in
history, recent history. And yet
marketers really continue to
approach things in a very
traditional way. And I think he's
right. So everybody will talk
about, well, I have this web
strategy, but it's always, but it
always feels like it's a bolt on.
It's like, I'm doing all this other
stuff, but then I'm doing this
cool web thing. So I still have
advertising and I still have
sponsorships, and I still have
sampling programs and I kind
of do this web thing.- I'm really
just going to think about all of
the ways that my brand sort of
interfaces or touches
consumers. And I want to
create those interfaces in a
way that isn't me kind of yelling
my message to them, but
rather I'm looking for
opportunities to weave my
brand into their life, their social
fabric, in ways that are sort of
inviting it in as opposed to me
shoving it at them.
I mean a lot of the rational
things, if you look at
categories, you could say well,
branding was never really
important, and if you said that I
think would say, okay, so you
would have a bit of a [? 2:38]
mentality, so I would expect
that the lowest priced products
would be the biggest and the
ones drawing the quickest, and
the exact opposite is true in a
lot of image-related categories.
It's an interesting chicken and
egg question, because you
know, a lot of people would
argue, and I would agree with,
that it isn't so much that the
product is so great and
therefore people are willing to
229
 tolerate the price point. Given
that a lot of times in the super
premium parts of these price
points, people are trying to
project this image of success
or achievement, the price point
is actually the things that drives
the perception of quality

230
Q: Percentage of a company's market share can usually be attributed to its brand?
most people don't Absolutely (branding can from a branding perspective, No impact (A)
recognize, share doesn't impact marketshare). the way it influences a Protection of
make any difference for us, Absolutely. I mean there's a consumer and their buying brand (A)
how we market stuff. big difference between the act habits, I definitely think that if Impact (B, C)
reversing the trend is of branding and marketing. you've got the right brand and Create Identity
challenging. Branding is the act of creating you're communicating it in the (B, C, D)
we definitely have to an identity, and marketing is right way - whether it's kids, or
protect those two brands in the act of promoting it whoever your focus, your
everything that we do. target is, I definitely think that
influences (purchasing
decisions)

231
Q: What would be consider modern methods of brand development?
Developing a loyalty base Better targeting, which is a Lifestyle (A, D)
right now. great development. Both in Targeting with
Developing lifestyle cable and with the internet. Technology (B,
So as much as you have C)
people talk about fractured Targeting with
media and now you have to Community (C)
go so many more places to
reach the same amount of
people, you can target so
much more specifically with
all of those media, it's terrific.
Yeah, (more focus) A lot less
wasted media dollars

232
Q: Advantape/disadvantape do sport companies have/face when positioninp their?
You can totally compete. when you're dealing with We're doing a lot of virtual Advantage over
That's the nature of the sports you have iconic figures stuff-1 think the mobile and traditional
industry. You can totally that you can attach yourself definitely a lot of stuff around products (A, B)
compete. So, you know, to. So I think any the web, I think the viral - Creativity in
that's where you have to entertainment sports related especially for teens, like letting Packaging (A)
get away from just slapping business has that advantage. them know - it seems like Competitive
your logo on stuff. Because word of mouth from their own without rights (A)
most of the time it's not peers is pretty influential-
worth it. Coors and the That's a big thing for us,
NFL, it's not worth it.-- And consumer experience. Kind of
that's kind of the modern the hot word of the day.
way, now, is being creative
and finding a way to rise
above the clutter, and
utilize, it's almost Like a
guerilla marketing effort,
where okay, you own the
NFL, but we're going to own
twenty-eight teams. And
you know, we're going to do
some things in the local
market, where people are
loyal to a team more than
they are going to the brand,
and more of a presence.

233
Q: How has Under Armour positioned itself in the eyes of its consumers?
It came out as a product
designed and Built by and for
professionals, This isn't
recreational gear, this isn't
something your mom wears
to go to the store Sunday
morning. This is performance
wear.
Their core is performance
wear, and they have to
protect that base, and they
have to build that base, and
obviously, think of their
advertising,
Half the time you can't
identify who the athletes are,
but when I look at them, I'm
saying those are high
performance athletes, this is
not Joe Blow at the gym on a
Saturday morning
I think they've done a
tremendous job of creating an
authentic relationship with
people. However they've don
it - 1 don't really know the
story, so it's tough for me to
get into detail. But from my
perception as a consumer,
they've done a great job of
being authentic.
Of brand, sport and athlete.
And that's a really powerful
concept
I think the disadvantage is
probably that, there is so much
clutter, that it is probably from
year to year, and not even
year to year but season to
season, how is it that you can
keep up?-1 think that's a
disadvantage, that you
probably have, there's a lot of
noise out there. - is first
positioning products, think our
advantage, and this is what we
hang our hat on, is
authenticity, and having all of
the direct tie into the game.--a
disadvantage is that they were
Nike, so they kind of had to
play that down, and the
advantage was that they were
able to kind of go in and kind
of start from the ground up
and be real to the kids-Nike
that is another disadvantage
for us. We're always so big,
234
I feel like there are people who Performance
are sort of hardcore, serious wear (A, D)
athletes, performance clothing Authentic -
is probably not a new idea, but staying true (B,
I feel it was probably a C,D)
relatively a narrow niche and I Standing out in
think they've done a really nice Clutter (C)
job or sort of expanding that to
say even the person who just
runs three or four times a week
can really benefit from clothing
that wicks moisture, that has
this sort of style aspect to it, so
they have a nice intersection of
performance and style, which I
don't really thing was
necessarily on the radar screen
for products that were
produced for athletes in the
past, that it was more just
about, hey, does it help me
perform?-
Q: What do you perceive are most effective methods of used by UA in positioning their
brand?
It was the personal
endorsement.
Personal endorsement, and
granted it's so easy, it's so
big these days. But at the
same time you don't want to
get so big that everybody's
doing it.
Many of the people who
aren't sponsored by Under
Armour are wearing Under
Armour, and that's some of
the best advertisement you
can get.
Guys aren't getting paid, but
that's great placement. You
can't beat that. And that's
why the kids want it. You're
not seeing that. They're not
advertising Under Armour to
kids, that would be ridiculous.
Because it's a performance
gear, and you've got these
couple of performance
athletes who are wearing
your stuff, and the word gets
out. It's personal
endorsement, and in
consumer products that's
huge
They're in. They're hip.
They've got that edge right
now. And there's nobody else
out right now.
They're under the radar but
they've got the word of
mouth. And that's where
they've got to keep it going,
keep those performance
athletes. Keep those
performance athletes in your
newest line of stuff and keep
pushing edge development.
You know, that's how they're
going to stay and have that
edginess.
It's one thing today when
companies sponsor things
and license music and try to
align themselves with
properties just because that's
sort of the hot thing. It's
another thing when there's a
real organic connection and
the athlete or the artist is a
true supporter of that brand.
That's an authentic
relationship that 1 think
translates
When it's organic it gives it
tremendous credibility for
sure
1 believe in finding ways to in
this sense, to create organic,
to sort of align with
ambassadors so to speak
who are true fans of the
product. Because otherwise
you just don't have that
connection and it just doesn't
translate the same way
Their communication is also 'Yeah, my sense, the whole Personal
very aggressive.- sort of athlete association endorsement
piece, is kind of what 1 (A,D)
remember the most, even Placement (A,
though 1 know that's probably a D)
bit more recent. But 1 think it's Word of mouth
that kind of classic hey, I've got (A,D)
world class athletes who are, Not
who can really make the mainstream (A)
decision to use any products Stay true to
they want, and they are going brand - edgy
to use what they feel like are (A, B, C)
best, and if that product is Authenticity (B,
working for them, it is a pretty C)
clear signal that this would be a Alignment with
great product for me, even in audience (B,
my sort of more casual state of C(tone))
exercise. Aggressive (C)
Evaluation of
But 1 felt like it was intense in a Market (C)
- in a bit of an understated
way. Kind of like, these
products can stand up under
the most intense conditions,
and that comes through, but 1
just felt like the Super Bowl
spot was sort of loud, with
creaming at you, kind of grab
you by the shirt, pay attention
to me, which felt really different
than kind of their approach to t-
just the guys working out, A.J.
hawk working out is different
than that guy, that diesel of a
guy standing there yelling
235
Q: How has UA differentiated its product from its competitors?
The idea is, I'm getting paid to
be an ambassador for your
brand, but 1 want an
ambassador for your brand
before you decided to
officially partner with me.
That's the key. Which gets
back to the main point that
product is everything.
The key is exclusivity. So how
do you create an exclusive
relationship and really own
that relationship in the
market. And the consumer
mind-set. That's the key.
IT's very aggressive, yeah and
then if you see the graphics
they use, a lot of them are just
model shots (not specific
athletes).
236
My sense is, 1 would see it a lot Identification
in terms of athletes pre or post with image (A)
game, when they might not Product (B, D)
have had their pads or their Exclusivity (B)
jerseys or things like that on, Aggressive and
but they're just sort of chillin. Tone of
before the game, and it would Message (C)
be more of kind of the layers
they would wear kind of under
a uniform or along those lines,
That's my perception.
yeah, 1 feel that one of the
challenges is, if your Nike for
instance, you've got so many
different kinds of products, and
1 think they actually do an
amazing job of managing the
different lines that they do, and
they all have a certain
connective tissue back to
brand Nike. But it gets more
and more difficult the more and
more things you have, and
what under Armour did, at least
initially, we're about
performance clothing, and
that's what we do, and we do it
better than anybody else. And 1
think there's a certain credibility
that goes with that notion of
specialization and niche. You
know, it's an important part of
what has helped them build the
brand.
 Q: How Under Armour's brand strategies compared to other sport companies and non-
>
sport companies?
It's because they're
identifying with the image -
performance athlete,
performance wear, I'm here
to work. This is my job.~
North Face is branching out
pretty significantly now, but
they still have kind of a
performance, green
outdoorsy edge to them or
whatever. They don't do a lot
._ of advertising. They stick to
the program. They aren't in
SI, they're in business journal
or whatever.
That's the thing, (you don't
want to lose your edge) yeah,
if you want to become
another bike shorts, if you
want to be another Nike, it's
great to have those
aspirations, but Nike, but
Nike - but if someone says
Nike to me, 1 don't think
performance sports anymore.
Having respect for your
consumer is a tremendous
issue.
Do they have a connection
with and respect for the
consumer that they're trying
to make money off of? 1 think
it's a really important
distinction. And people smell
it when they're not being
respected.
Putting in a behind the
scenes brand t h a t - 1 mean,
going off on a different
subject here, but people like
to discover things. People
love to discover things.
People don't respond well to
having things shoved down
their throats. They like to
discover things, so the more
you can build an organic
connection with your
consumers, the better off
you'll be.
Tone. Exactly and Platform- So, 1 kind of feel like, if you aim Branching out
We are definitely reacting, and for the serious athlete, you get but staying
definitely reacting and upping the serious athlete, plus true to base
that part of it. - Under Armour everybody else. Whereas, if (A, B, D)
has the luxury, they're trying to you try to be, you know, a bit Connecting
expand in a whole bunch of more of a style brand, you just with the
different things. They used to sort of just get dismissed from Consumer (A,
have the luxury of focusing the core of the business. Who B, D)
and throwing all your money in are really the people who are Tone of
one kind of pot, like hey, look, this isn't really a Message (C)
style issue for me, it's about a Authenticity
performance issue. And if it (C,D)
doesn't sort of work with the Forcing
core, you've lost your credibility Competition
to Compete
(C)
Specialization
(D)

there has to be such a deep

relationship with someone,
where you really know that -
people do - as ridiculous do ,
as ridiculous as it is to me,
people believe in celebrity.
They believe in it. But you
have to know that this
relationship is organic.
Otherwise, I'm saying the
same thing fifty different
ways, but it's not going to
translate.

237
 Data Display 3

Under Armour Executive Responses per Interview Question

Question Interview A Interview B Emerging
Frames/
Codes
Strategic Brand Vision Under Armour must and always will Our brand mission is literally to Performance
stand for performance. And that is our make all athletes better through Clarity in brand
brand vision. passion, science and the vision
the bellwether definition for the word relentless pursuit of innovation.
performance That's what we come in and we try
and do. So whether that's through
shoes, whether that's through
apparel, whatever that is. That's
kind of our goal, ever day. How do
we go about doing that?

238
Brand Management The strategies over the years,
Strategies you will see that we've grown
from being a tight t-shirt
company to being a
performance brand that sells
loose-fitting product, that sells
product for women, sells
product for kids, sells product
for your feet, sells product like
sunglasses, batting gloves,
football gloves.
the idea and concept was
built to be tough enough to
withstand the demands of the
football field, the gridiron.
Consumers adopted it,
knowing that hey, if it's tough
enough for their needs, it's
gonna get me through my four
mile run, or help me with my
workout. It's going to help me
be better at my sport.
in the early days, we didn't have any money.. All Seek opportunities
we had was the value of our products, which we that match brand
treated very seriously. So any time we gave vision (making
somebody something, it had to be like there was a athletes better -
piece of gold. It had to be very well respected. performance)
Because these guys get free shit all the time. And Help you be better
all they do is just give it to their buddies. But I've - performance-
literally been in houses where guys have gone Authenticity
through, they can't find their Under Armour shirt,
and they figure out in whose locker it is. So that
product always had a value to it. Now as we have
grown and evolved over a period of time, we've
gone from being underneath the pads,
underneath th3e jersey, to putting the logo on the
forefront. So, on the jersey, university of Maryland
football being the prime example. You can kind of
change your perspective, because all of a sudden
you can see the logo, instead of sitting on the
couch with your girlfriend saying, actually the guy
that's playing center for Maryland, he's wearing
Under Armour, but you can't see it. Well, now all
of a sudden you can see it. Once you can do that,
the game changes because you know,. You're
putting your logo out there and it's more of a
marketing tool than it is a piece of equipment.
our product really started out as a niche product.
It was hard to find. Not everybody had it. And
once you had it it was like, oh this is really what
the guys wear, and it is. So I think from a
marketing perspective, we were just doing our
jobs and getting the product on the five cool kids,
high school kids, on each team. And really
building it that way. And I think authenticity is that
limestone key in the top of the window that keeps
all the other bricks in line. We have to have that. -
commercial spots - everything's very intense.
So when you try and find some of these people,
we try and find the hardworking guy, the
respected guy. Not necessarily the big star. We've
never had a star really, before, until Sorreano
really. And he was always kind of a freak of
nature, in terms of his abilities being very very
unique.
239
 Strategies to where we're still small, where
Differentiate the Brand we can be focused and
crystal clear. And I think
that's one of the ways we
differentiate ourselves. You'll
see us go to market with a
single point of view, and that
single point of view will carry
us through the entire year.
I think we break through and
differentiate ourselves by
having a singular crystal
clear focus and that we run
through our entire, all of our
business categories, under
one single brand umbrella.
We don't have any conflicting
messages in the
marketplace. As a result- we
don't have the dollars to
spend that they do - so we
have to focus them and make
impact and make headway
with those dollars
Int. Q. 4 Target Segments
I think that what really keeps us Small and focused and
different, why people have become so clear
enamored of us, is that we are like Single point of view
David going up against Goliath. And Single vision each year
people are wanting something different. Same brand vision -
On all of products, if it's a pair of shoes, different categories
it's built and designed for whatever Focus - singular focus -
position you play. Whether you're a Less budget = singular
home run hitter in baseball or a focus
defensive lineman in football, we
hopefully have a shoe that fits you
perfectly. And everything matters. And
I think that when we hold ourselves up
to standards like that, the quality of
product is significant. And the product is
really good, and people start to trust us.
And say hey, if you guys come out with
a product, it's going to be pretty good,
and we can trust it, where the other
guys - we've probably done a
phenomenal job of making the
consumer experience that much better,
because we've really put our
competitors - and forced them to get
better. Meaning, for them to compete
with us in a small niche area, they need
to make great products, just like we do.
I think that's been pretty cool as well.
always - kids may wear it to wear it, but
there's always going to be a
performance attribute to the product we
put out there4. So, there's no cotton in
any of our products. We have a - we
call it a tech team., it's a twenty dollar
feels like cotton, wears like Under
Armour performance, you know, micro
fiber t-shirt, that is our answer to cotton.
People can wear it just to wear it, but it
still helps you perform better. It's still
lighter, and it still keeps you cooler. So
there's always going to be that
performance attribute.
240
Target Segments Our primary and dominant focus is on that We really go after the high Teenage Team sport
teenage team sport athlete, male and school kid. Our target athlete
female. That's where we want to continue to audience is a real To grow up with the
resonate and resonate well, because we feel competitive athlete. On the brand
like they will continue to grow up with our women's, on the boys and Not iconic hero - the
brand and continue to buy our brand as they girls side, fourteen to "team captain"
get older in life. twenty-four. We try to win Show up early and
we're more the team first kind of guy. them to where little brother stay late
We go for the lunch pail guy. The guy who's or little sister looks up to big Not glamour -
going to show up early at the gym and stay brother and says, man, I carrying weight and
late. The guy that everyone on the team want to wear that stuff.- respect- Little
respects and looks up to. He may not be the brother, littler sister
glamour guy, but he's the guy that carries
weight in the locker room.

241
Positioning of the brand When you see us do something, we typically I think there was always - Significant meaning
in target segments do it in a significant way. We're not just that team sports athlete Not subtle
checking off boxes that say, okay, we hit our was always the target, and Partner- influence
media spend, we hit our digital spend, we hit we've gotten some from parents,
our print spend. We do things in a significant ancillary people through siblings
way. that. So we've gotten little
Subtlety is not our expertise. And the saying brother and little sister, and
here is, big bets with big partners. women to be honest. And
In retail, we go big. We don't hold back. Our we've also gotten that
fixtures are not made cheaply. You know, we golfer who, for some
have very strong, durable, in your face fathers and some mothers
displays and similar graphic strategies, as Under Armour is a way
well that show up on the floor and again, they they can relate to their
make an impact. They maker a difference. I kids. They come out and
would Just put it this way, we aren't go golfing with their kids,
everywhere, nor will we ever be, but we find and all of a sudden they're
ways to partner cool.— then grow with the
brand. A funny story I was
in, I was out to dinner
maybe a month ago, with
somebody who had their
seven year old, and they've
never grown up in an era
without Under Armour
products, and they were
saying to their father, oh,
you didn't have Under
Armour then? Like they
didn't know. So they just,
it's just a head nod with
them. Really resonates
with that youth really, really
well.

242
 How did you We are considered on the So whether that's through shoes, whether that's High priced apparel •
determine men's side, their premium through apparel, whatever that is. That's kind of our premium apparel
you should apparel. And we're their high goal, ever day. How do we go about doing that? For The brand of this
position your priced apparel. And we're me, from a branding perspective, it all starts and generation-
brand this way positioned as such. We're ends with authenticity. If we're not on the field of Authenticity
trying, and our goal is to build play in whatever important arena we're trying to
out our women's business, enter, we don't stand a chance because there will be
and this is all public no reason for people to try our products.
information, we want our
women's business to
someday be much larger than
our men's apparel business.
The other thing you can say
is, we're the brand of this
generation. And that's
ultimately what our position
is, too.
we want to make sure that we
continue to position ourselves
and attract that kid and never
alienate him or her, so that he
continue to be their brand,
the brand they built, the
brand they discovered, and
the brand that you know, they
wear with pride because the
were the ones who first
adopted it and helped us
become who we are today.

243
Attribution of market There was an opportunity that
share acquisition was not being tapped.
Filled a vacuum. There was an
opportunity. He took it.
first mover, opportunity gives
you the chance to build that
equity. And then if the
competition takes too long to
move into the space, and
you're able to scale fast
enough to secure it, then you
get to own it.
I think it evolves. I think we get Untapped opportunity
credit for being first to market. I Barriers to entry
think we get credit when Niche
competitors enter our market
space. But I also think that we're
known as the Kleenex. When you
want a tissue, you don't say I'd like
a hand tissue, you know, "I want a
Kleenex." That's what you ask for.
And a lot of these equipment
rooms, you know, I need an Under
Armour. And that means in a lot
instances you're asking for a
performance t-shirt. In a lot of
instances its compression.
244
Strategies Impacted Yeah, (perception)well it
your brand certainly helps you extend
your product line., you know,
you can extend your product
lines out if you've got a really
solid position that you're
starting from, and you're
working from, and if that
position is one that's premium
and they value the dollar they
pay for it.
Have your prices changed at
all over time, or have they
been kind of steady.
Interviewee: very stead.
We've found better ways to
build it. And we find other
ways to save money, too
It started by positioning the
brand in the locker room, and
team dealers out there, from a
retail standpoint. To build the
authenticity from the ground
up. And we've continued to
build upon that. The media
deals that we do, we cut very
focused buys that are going to
be very - with minimal waste,
So that helps maintain a
premium positioning, but it
also helps us focus our funds
in support of what we do at
retail, to show up in big,
significant ways, and be
powerful in our presentation.
We were really targeting it to a Performance - clear vision
certain area so it looked like our Extending product lines
spend was bigger than it was. But Three pronged strategy -
it was really targeted to when the media, retail, and sports
people, when the people that we marketing
want buying out product are Authenticity
watching sports, that's when we Focused buys
want our commercials on the air.l Selective distribution- Follow
think it's always being authentic. your brand leads
Always being viewed as cool and
cutting edge and not "me too." I
think that's the way we do it, by
being who we are and not trying to
be anybody else.--We came out
with a women's line because we
have women showing up to buy
men's small and stuff didn't fit right.
So we were like, oh, maybe we
had a women's market. And once
we had a women's market
established, our numbers were still
skewing small because the parents
were buying the smallest they
could find for their little brother and
little sister, because they wanted to
be like big brother, they wanted to
be like dad, or whomever it was.
So I think there was always - that
team sports athlete was always the
target, and we've gotten some
ancillary people through that. So
we've gotten little brother and little
sister, and women to be honest.
And we've also gotten that golfer
who, for some fathers and some
mothers Under Armour is a way
they can relate to their kids. They
come out and go golfing with their
kids, and all of a sudden they're
cool.
kind of take your brand where it
takes you.-- Athletes wearing it and
showing up in Sports Center,
showing up in different magazines,
and people go to searching for it.
That's the ultimate test. When
people can't find something, they
continue to search for it. And then,
you know, we did, and it started
with some pretty intense
commercials that differentiated
ourselves in a very targeted area.
So we weren't putting it on the
oxygen network, We were
targeting football players who
watch football games. So people
might have seen tons and tons of
commercials, but they might have
been seeing every single one of
them. It wasn't like - No, I mean
you really need to build it out in a
very very pragmatic way. Meaning,
the products...the shoe that we
launched Saturday needs to make
sense, needs to fit within the
baseball spikes and the football
cleats that we launched two years
ago. It also needs to matter to the
next shoes we come out, So there
245
 has to be - it's kind of like the flow
of life. You've got the tree; you've
got whatever the actual name is.
So everything has to matter and
everything has to work. And if you
start going out on limbs, then it all
of a sudden doesn't. So as long as
we are difficult on ourselves and
keep that focus where it needs to
be, that's not a concern of mine,
but I know it's a concern of people
outside the building, because it's
like, oh man, look at all these
places Under Armour is going,
We're not going - we have a
distributor in Australia. They're not
going to all of a sudden be a ten
million dollar business straight
away. It starts the same way that
we started here. So as long as
we're true to ourselves and commit
to businesses over a period of
time, we'll be find. But it's also very
difficult to fund things. Whether it's
resources in terms of people, it can
be very challenging. It can be a lot
of different things.

246
Major Challenges and our challenge is to say no to There's also big swaths of Seek opportunities
opportunities the right things,. Because landscape where we're not at all. Maintain a clear vision as
there's still an incredible Basketball. We don't have anything product lines expand
amount of opportunity in front in basketball. So, that's probably Price of oil and product
of us. Our challenge is saying the last, the biggest marketing development
no to the right things. Our opportunity, the biggest target Performance not fashion -
challenge, is, not mis-stepping audience, the biggest sport that International exposure to
with our footwear in a we've never gone after yet. And other sports. - Maintain
significant way. Our challenge when we decide to do that, that's a quality
is not to take our eye of the big opportunity for us. International
ball that got us here. And as is a big opportunity for us. We
we extend into footwear and haven't sold one shirt in China
other categories of product in yet.Nike and China - that's going
that role. to be their first billion dollar
Our opportunities are, we are country, outside of the U.S. So
very tiny in Europe. We are, that's a big opportunity for us.
we have good business in People don't realize that we're only
Japan, but outside of Japan, twelve years old. Uhm, the biggest
we really don't exist in Asia. In challenge is probably is always
Latin America, we have a very going to be in the product. Making
small, small business as well. sure that the product is always
So when you think about that, outstanding. Yeah. The quality's
and consider what's out there, got to be there. The day that we
we're in a very good position. lose out on quality, or sacrifice
One of the challenges we quality, we're in trouble.
have to be aware of, and
everyone does in this world, is
that the price of a barrel of oil
is over 110 dollars right now,
and we're all making
performance apparel from
petroleum based products. So
it's something that every single
one of us in the industry has to
become very well versed in
understanding how that's
going to impact our future
wholesale pricing, and then
retail pricing.
you run the risk then of just
becoming a fashion brand and
not being able to ground
yourself in a performance
story.

247
Characterization of Because we have so much growth and upside still We kind of do our own Performance
brand strategies ahead of us. There's so much open field yet in the thing, and they kind of not lifestyle
relative performance arena that we haven't come close to do their own thing. Protecting
to competitors tapping. the message
But that's up to them to adopt. We're not going to tell we just go about our Exceed
them that. It's along the lines of, you don't want to business, and not expectations
run afoul like Timberland did. really worry about
Our products are built based upon a solid premise, things, and try and Product
you have to careful about how you're adopted and control and work on quality
then how you message to follow that up. the things that we can Earn the UA
A piece of Under Armour is Under Armour long control, and not logo
before the logo ever lands on the chest., Because of necessarily worry Let the
the build that we put into it. No one can trademark, about everything else. product
no one in this business at least has trademarked : It goes back to speak for
and taken ownership of a fabric, because there are creating the quality, itself
some fabric mills out there that are doing all this making sure the quality
work,
there's a significant difference in the build, in the
construction of the product. Kevin is always
challenging the product team, don't rob from the
brand, don't rob from the consumer. Give them more
than they are expecting to get from this good.
Beyond that, at the end of the day, what it really
comes down to is the build. And I'll challenge
anyone to build a better product than ours.

248
 Data Display 4:
Frames from Outside Branding Experts per Research Question
Question Interview A
What modern methods They want to know why
of brand development something is sponsored,
are used in sport and why something else
marketing today? isn't. And they want to feel
like they're being taken
care of.—1 think it's got to
be about supporting a
brand image. That people
can relate to that product,
that people can
emotionally relate to it~
Because they're trying to
make it a more engaging
experience. - But if you're
out there, and you're a
new product, and you're
trying to enter, and you're
looking for what's the next
thing people are going to
catch onto, everything
we've talked about right
now is so much a part of
American culture that 1
think it's difficult for
sponsors to differentiate
themselves. - definitely
there is a lot of crossover
there between, you know,
your brand attributes
versus 1 guess the
synergy that you have
with whatever you're
sponsoring.
And so -owning the
lifestyle space that you're
competing in - 1 mean, it's
not even a competition if
you own it-Part of it is,
where is technology
going, where is the
consumer going, and you
have to be on the front
edge of creating and
owning the lifestyle.- it's
that crossover now
between sports and
lifestyle. It's where
consumers meet,
especially the younger
consumer right now, and
where they develop their
brand loyalty.-
Understanding where is
technology going, where
is the consumer going,
and you have to be on the
front edge of creating and
owning the lifestyle.- And
most of the people will pay
the price(for premier
sponsorship). Because
they want half the clutter
now.- People are
expecting a lifestyle
experience now when
they go to events. That's
why half-time shows are
getting outrageous, and
the pre-game, and all the
Interview B
everybody understands
that you have one -Kind of lead role in building
message and represent
kind of one idea
Being conscious of what
your brand stands for
and how people
perceive it is different
than promoting it. 1 think established. So I think from
1 think always if you're
new, and your budgets
are limited, PR is
always the best way to
go.
are kind of have to establish
1 mean, it's free media,
right? You know, getting overarching direction for the
a passage or lead and
sending it out to all the for the marketing, for kind of
writers from print to everything that you're going
television, to the [? 81], to do to communicate to the
which is the most
effective?
Yeah, all these terms
like word of mouth and
buzz and viral and all
this stuff is just - it's
really just all PR.--1
think always if you're
new, and your budgets
are limited, PR is
always the best way to
go.
I think TV is still the
most widely used, for
legacy reasons, you
know? So, as much as
people talk about the
fact that TV doesn't
work and it's over
saturated, and all this
stuff, it's still the most
money is still buying
television and print and
radio, you know? -
Things are becoming
more geared towards
the internet.
And mobile after that.
Yeah, as phones
becomes fast and
speeds become faster
and they develop
phones that open up
and have larger screens
and things.-better
targeting, which is a
great development.
Both in cable and with
the internet. So as
much as you have
people talk about
fractured media and
now you have to go so
many more places to
249
Interview C
kind of the most critical part
that brand.--: it was sort of
like coming in and going,
wow, you know, there's no
consistency or
communication. So I think
from a branding
perspective, that was the
first things that I was told
what we really need to get
a branding perspective,
that's sort of like the first
thing that—from a role first
thing that a company or,
you know, whomever you
first; it kind of sets the
company or for the product,
consumer.- You have to
know what that
product(brand) stands for
because everybody's got to
kind of find their niche, -
That's definitely (
consistency in brand
message),- I would totally
say that (TV) was our
biggest vehicle to kind of
the - trying to put it
(brands)(Differentiate) into
buckets. So, there's the
running - we've prioritized.
There's so many things we
can be into. We can be into
basketball, running, sport
culture, team sports- So
you stay authentic to the
people who are loyal-
We're doing a lot of virtual
stuff-1 think the mobile and
definitely a lot of stuff
around the web, I think the
viral - especially for teens,
like letting them know - it
seems like word of mouth
from their own peers is
pretty influential- That's a
big thing for us, consumer
experience. Kind of the hot
word of the day.
Interview D
it's one piece of many
interaction points you will have
with the consumer. So, I think
in that case, the product name
says something about the
brand in the same way that the
color would, the price point
would- You would basically go
through your memory bank
and it would be the sum total of
your impression of that person:
the way they dress, they way
they carry themselves, the way
they talk, et cetera, - I call
customer service and it gets
sort of bounced all over the
place and you sort of walk
away from that saying, that
experience does not feel like a
premium, high-quality product,
you might sour on - you know,
that's not a brand I want to
associate with.- I think you
can think of a brand very
similarly to that in the sense
that it is the some total of all of
the things that create
interactions with people. And
that's really how they
determine whether that's a
relationship they want to be
engaged in or not. So it, if the
brand name appeals to them
and it says the right things, and
let's just say for argument's
sake I'm in a category and I'm
looking for a premium brand, a
step-up brand, and I have a
complaint about a product. - I
think it's very difficult to find
positioning that is going to
engage the consumer and be
long term sustainable. If you
can find a point where I have
both an emotional benefit and
a functional benefit, and ideally
those things are linked, then I
think you have a really
powerful positioning there, that
can not only kind of cut
through the clutter in the
marketplace, but also be
sustainable. Because it isn't
solely based on the functional
benefit of the product- I think
segmentation studies are a
very important place to begin,
because it helps you get a
sense of where there's wide
space in categories. It helps
you get a sense for the roles
that different brands have. But
it's very key in terms of how
you set those (roles) u p -
Collectively, it's such a -you
sort of combine that with sort
of the emotional resonance or
attachment people have to the
brand. - Especially if you're
working in crowded categories,
fan interaction in between,
and now you've got
arenas that are putting in
feedback statistics
monitors for the fans and
you have all of these
different thinks going on.
Because they're trying to
make it a more engaging
experience.
find a program that works
for us, and it works for the
other partners, and we'll
pay a little bit more for it.
And a lot places are
charging even a premium
above that.
Do it right. Do it right and
service them and make
them happy,
- And that's kind of the
modern way, now, is
being creative and finding
a way to rise above the
clutter, and utilize, it's
almost Like a guerilla
marketing effort, where
okay, you own the NFL,
but we're going to own
twenty-eight teams. And
you know, we're going to
do some things in the
local market, where
people are loyal to a team
more than they are going
to the brand, and more of
a presence.
reach the same amount it gets more and more
of people, you can complicated to truly find unmet
target so much more needs.-And I think there's a
specifically with all of really interesting case made
those media, it's terrific. for the fact that you'd be better
Yeah, (more focus) A lot served to throw out all the
less wasted media descriptors of the type of
dollars activity that you're doing. So,
I'm not going to worry about
categorizing something as
advertising or promotion or
sampling or PR., and I'm really
just going to think about all of
the ways that my brand sort of
interfaces or touches
consumers. And I want to
create those interfaces in a
way that isn't me kind of yelling
my message to them, but
rather I'm looking for
opportunities to weave my
brand into their life, their social
fabric, in ways that are sort of
inviting it in as opposed to me
shoving it at them. And I think
that's really, really different
mindset. It's like building a
relationship basically. - So, at
the end of the day it is trying to
understand the consumer,
whether you're doing a text
message, you're still doing the
advertisement and the
newspapers and the quote
unquote tradition stuff, via
sponsorship.-Because there is
very little to do - the rational
side of it just becomes
unreasonable even to support,
and the emotional piece is
what the brand is built on. So,
back to market share, I feel like
what we do is in large part -
the lion's share of what drives
your market share in the
marketplace, is that story
you're able to tell with your
brand, the relationship you
build with your consumer, and
therefore, their willingness to
pay X for your brand.- We can
do TV advertising on cable, a
lot of cable stations and we
have traditional avenues of out
of home and print. It's
interesting, I think - , if you
look at how consumers engage
with brands and each other, it
has probably changed more in
the last fifteen to twenty years,
especially with the advent of
online, social media and they
way that people interact. It's
probably changed more
dramatically in the last twenty
years than in any other time in
history, recent history. And yet
marketers really continue to
approach things in a very
traditional way. And I think he's
right. So everybody will talk
about, well, I have this web
strategy, but it's always, but it
always feels like it's a bolt on.
It's like, I'm doing all this other
stuff, but then I'm doing this
cool web thing. So I still have
advertising and I still have
sponsorships, and I still have
sampling programs and I kind
250
of do this web thing.--1 m really
just going to think about all of
the ways that my brand sort of
interfaces or touches
consumers. And I want to
create those interfaces in a
way that isn't me kind of yelling
my message to them, but
rather I'm looking for
opportunities to weave my
brand into their life, their social
fabric, in ways that are sort of
inviting it in as opposed to me
shoving it at them.

I mean a lot of the rational

things, if you look at
categories, you could say well,
branding was never really
important, and if you said that I
think would say, okay, so you
would have a bit of a [? 2:38]
mentality, so I would expect
that the lowest priced products
would be the biggest and the
ones drawing the quickest, and
the exact opposite is true in a
lot of image-related categories.

It's an interesting chicken and

egg question, because you
know, a lot of people would
argue, and I would agree with,
that it isn't so much that the
product is so great and
therefore people are willing to
tolerate the price point. Given
that a lot of times in the super
premium parts of these price
points, people are trying to
project this image of success
or achievement, the price point
is actually the things that
drives the perception of quality
 How does the most people don't Absolutely (branding can from a branding
percentage of Under recognize, share doesn't impact marketshare). perspective, the way it
Armour's market share make any difference for Absolutely. I mean there's influences a consumer and
relate to the us, how we market stuff. a big difference between their buying habits, I
development of the reversing the trend is the act of branding and definitely think that if you've
brand? challenging. marketing. got the right brand and
we definitely have to Branding is the act of you're communicating it in
protect those two brands creating an identity, and the right way - whether it's
in everything that we marketing is the act of kids, or whoever your focus,
do.- Devoloping a promoting it your target is, I definitely
loyalty base right now. think that influences
Developing lifestyle (purchasing decisions)

252
 How does Under It came out as a product better targeting, which is
Armour's development designed and built by a great development.
of its brand position the and for professionals, Both in cable and with the
product in the eyes of This isn't recreational internet. So as much as
the consumer in the gear, this isn't something you have people talk
marketplace? your mom wears to go to about fractured media
the store Sunday and now you have to go
morning. This is so many more places to
performance wear.- It's reach the same amount
because they're of people, you can target
identifying with the so much more specifically
image - performance with all of those media,
athlete, performance it's terrific.
wear, I'm hear to work. Yeah, (more focus) A lot
This is my job.-- North less wasted media
Face is branching out dollars- when you're
pretty significantly now, dealing with sports you
but they still have kind of have iconic figures that
a performance, green you can attach yourself
outdoorsy edge to them to. So 1 think any
or whatever. They don't entertainment sports
do a lot of advertising. related business has that
They stick to the advantage. So 1 don't
program. They aren't in know if that's what you
SI, they're in business mean, but - think they've
journal or whatever. done a tremendous job of
creating an authentic
That's the thing, (you relationship with people.
don't want to lose your However they've don it - 1
edge) yeah, if you want don't really know the
to become another bike story, so it's tough for me
shorts, if you want to be to get into detail. But from
another Nike, it's great to my perception as a
have those aspirations, consumer, they've done a
but Nike, but Nike - but great job of being
if someone says Nike to authentic.
me, 1 don't think Of brand, sport and
performance sports athlete. And that's a really
anymore. powerful concept- The
idea is, I'm getting paid to
be an ambassador for
your brand, but 1 want an
ambassador for your
brand before you decided
to officially partner with
me. That's the key. Which
gets back to the main
point that product is
everything.
The key is exclusivity. So
how do you create an
exclusive relationship and
really own that
relationship in the market.
And the consumer mind-
set. That's the key.
253
Their communication is also very 1 feel like there are
aggressive.-IT's very aggressive, yeah people who are sort
and then if you see the graphics they of hardcore,
use, a lot of them are just model shots serious athletes,
(not specific athletes).-- Tone. Exactly performance
and Platform- We are definitely reacting, clothing is probably
and definitely reacting and upping that not a new idea, but
part of it. - Under Armour has the luxury, 1 feel it was
they're trying to expand in a whole bunch probably a
of different things. They used to have the relatively a narrow
luxury of focusing and throwing all your niche and 1 think
money in one kind of pot, they've done a
really nice job or
sort of expanding
that to say even the
person who just
runs three or four
times a week can
really benefit from
clothing that wicks
moisture, that has
this sort of style
aspect to it, so they
have a nice
intersection of
performance and
style, which 1 don't
really thing was
necessarily on the
radar screen for
products that were
produced for
athletes in the past,
that it was more
just about, hey,
does it help me
perform?~~Yeah,
my sense, the
whole sort of
athlete association
piece, is kind of
what 1 remember
the most, even
though 1 know
that's probably a bit
more recent. But 1
think it's that kind of
classic hey, I've got
world class athletes
who are, who can
really make the
decision to use any
products they want,
and they are going
to use what they
feel like are best,
and if that product
is working for them,
it is a pretty clear
signal that this
would be a great
product for me,
even in my sort of
more casual state
of exercise.
But 1 felt like it was
intense in a - in a
bit of an
understated way.
Kind of like, these
products can stand
up under the most
intense conditions,
and that comes
through, but 1 just
felt like the Super
Bowl spot was sort
of loud, with
creaming at you,
 kind of grab you by
the shirt, pay
attention to me,
which felt really
different than kind
of their approach to
t- just the guys
working out, A.J.
hawk working out is
different than that
guy, that diesel of a
guy standing there
yelling

254
 Data Display 5

Frames from Under Armour Executive Responses per Research Question

Question Interview A Interview B
What modern we can be focused and crystal And 1 think authenticity is that limestone
methods of clear. And 1 think that's one of key in the top of the window that keeps all
brand development the ways we differentiate the other bricks in line. We have to have
are ourselves. You'll see us go to that. - Commercial spots - everything's
used in sport market with a single point of very intense.-- All we had was the value
marketing view, and that single point of of our products, which we treated very
today? view will carry us through the seriously. So any time we gave
entire year.-- when you see us somebody something, it had to be like
do something, we typically do it there was a piece of gold. It had to be
in a significant way. We're not very well respected. -
just checking off boxes that You can kind of change your perspective,
say, okay, we hit our media because all of a sudden you can see the
spend, we hit our digital spend, logo, You're putting your logo out there
we hit our print spend. We do and it's more of a marketing tool than it is
things in a significant way. a piece of equipment.--
Subtlety is not our expertise.
And the saying here is, big
bets with big partners.
In retail, we go big. We don't
hold back. Our fixtures are not
made cheaply. You know, we
have very strong, durable, in
your face displays and similar
graphic strategies, as well that
show up on the floor and
again, they make an impact.
They maker a difference. 1
would just put it this way, we
aren't everywhere, nor will we
ever be, but we find ways to
partner

255
 How does Under Yeah, (perception)well it
Armour's use of certainly helps you extend
modern methods of your product line., you know,
advertising and you can extend your product
marketing impact lines out if you've got a really
the development of solid position that you're
the brand? starting from, and you're
working from,
Prices have been very stead.
We've found better ways to
build it. And we find other
ways to save money; too
It started by positioning the
brand in the locker room, and
team dealers out there, from a
retail standpoint. To build the
authenticity from the ground
up. And we've continued to
build upon that. The media
deals that we do, we cut very
focused buys that are going to
be very - with minimal waste,
So that helps maintain a
premium positioning, but it
also helps us focus our funds
in support of what we do at
retail, to show up in big,
significant ways, and be
powerful in our presentation.
there was an opportunity that
was not being tapped.
Filled a vacuum. There was an
opportunity. He took it.
first mover, opportunity gives
you the chance to build that
equity. And then if the
competition takes too long to
move into the space, and
you're able to scale fast
enough to secure it, then you
get to own it.
256
We try and find the hardworking guy, the
respected guy. Not necessarily the big
star. We've never had a star really,
before, until Sorreano really. And he was
always kind of a freak of nature, in terms
of his abilities being very very unique.-l
think that what really keeps us different,
why people have become so enamored of
us, is that we are like David going up
against Goliath. And people want
something different, on all of products, if
it's a pair of shoes, it's built and designed
for whatever position you play. Whether
you're a home run hitter in baseball or a
defensive lineman in football, we
hopefully have a shoe that fits you
perfectly. And everything matters. And I
think that when we hold ourselves up to
standards like that, the quality of product
is significant. And the product is really
good, and people start to trust us. And
say hey, if you guys come out with a
product, it's going to be pretty good, and
we can trust it, - We were really
targeting it to a certain area so it looked
like our spend was bigger than it was. But
it was really targeted to when the people,
when the people that we want buying out
product are watching sports, that's when
we want our commercials on the air.~
And that's why we do these All America
games, things that we are doing now.
Because there [?] buyers for ourselves.,
We get Taye Vaughn Austin who is a
running back prospect out of Dunbar and
Baltimore. We get him. He plays Under
Armour in the All America game, all of a
sudden, in every write up ever written
about the kid, until he goes to the draft,
he's an Under Armour All American, all
of a sudden our name, without even
having access to the kid and having him
try out product, and having a game which
airing on ABC or ESPN which then gets
played over and over again. All of a
sudden that footage gets used over and
over again. It's just a force multiplier, so
it's really just, you can use one event that
then carries on for 364 days, because
there's recaps of the event. There's Under
Armour All American Taye Vaughn
Austin commits to Joe Paterno,
whomever, whatever the deal is. It's trying
to do those things a little bit innovatively,
very similar, based on the McDonalds All
American game for basketball. So why
 can't we be the franchise for All American
games. No reason why we can't.

257
 How does the We are considered on the
percentage of Under men's side, their premium
Armour's market apparel. And we're their high
share relate to the priced apparel. And we're
development of the positioned as such. -- if you've
brand? got a really solid position that
you're starting from, and you're
working from, and if that
position is one that's premium
and they value the dollar they
pay for it.
Have your prices changed at
all over time, or have they
been kind of steady.
Interviewee: very stead.
We've found better ways to
build it. And we find other
ways to save money, too
It started by positioning the
brand in the locker room, and
team dealers out there, from a
retail standpoint. To build the
authenticity from the ground
up. And we've continued to
build upon that. The media
deals that we do, we cut very
focused buys that are going to
be very - with minimal waste,
So that helps maintain a
premium positioning, but it
also helps us focus our funds
in support of what we do at
retail, to show up in big,
significant ways, and be
powerful in our presentation.
258
I think it evolves. I think we get credit for
being first to market. I think we get credit
when competitors enter our market space.
But I also think that we're known as the
Kleenex. When you want a tissue, you
don't say I'd like a hand tissue, you know,
"I want a Kleenex." That's what you ask
for. And a lot of these equipment rooms,
you know, I need an Under Armour. And
that means in a lot instances you're
asking for a performance t-shirt. In a lot of
instances its compression.--We came out
with a women's line because we have
women showing up to buy men's small
and stuff didn't fit right. So we were like,
oh, maybe we had a women's market.
And once we had a women's market
established, our numbers were still
skewing small because the parents were
buying the smallest they could find for
their little brother and little sister, because
they wanted to be like big brother, they
wanted to be like dad, or whomever it
was. So I think there was always - that
team sports athlete was always the target,
and we've gotten some ancillary people
through that. So we've gotten little brother
and little sister, and women to be honest.
And we've also gotten that golfer who, for
some fathers and some mothers Under
Armour is a way they can relate to their
kids. They come out and go golfing with
their kids, and all of a sudden they're cool.
 How does Under We are considered on the
Armour's men's side, their premium
development of its apparel. And we're their high
brand position the priced apparel. And we're
product in the eyes positioned as such. We're
of the consumer in trying, and our goal is to build
the marketplace? out our women's business, and
this is all public information,
we want our women's
business to someday be much
larger than our men's apparel
business.
The other thing you can say is,
we're the brand of this
generation. And that's
ultimately what our position is,
too.
we want to make sure that we
continue to position ourselves
and attract that kid and never
alienate him or her, so that he
continue to be their brand, the
brand they built, the brand
they discovered, and the brand
that you know, they wear with
pride because the were the
ones who first adopted it and
helped us become who we are
today.
259
So on all of products, if it's a pair of
shoes, it's built and designed for whatever
position you play. Whether you're a home
run hitter in baseball or a defensive
lineman in football, we hopefully have a
shoe that fits you perfectly. And
everything matters. And I think that when
we hold ourselves up to standards like
that, the quality of product is significant.
And the product is really good, and
people start to trust us. And say hey, if
you guys come out with a product, it's
going to be pretty good, and we can trust
it, where the other guys - we've probably
done a phenomenal job of making the
consumer experience that much better,
because we've really put our competitors
- and forced them to get better. Meaning,
for them to compete with us in a small
niche area, they need to make great
products, just like we do. I think that's
been pretty cool as well.-- Athletes
wearing it and showing up in Sports
Center, showing up in different
magazines, and people go to searching
for it. That's the ultimate test. When
people can't find something, they continue
to search for it. And then, you know, we
did, and it started with some pretty
intense commercials that differentiated
ourselves in a very targeted area. So we
weren't putting it on the oxygen network,
We were targeting football players who
watch football games. So people might
have seen tons and tons of commercials,
but they might have been seeing every
single one of them. It wasn't like -
260
 Curriculum Vitae

Patrick M. Kraft
Indiana University,
Bloomington, IN 47405
HPER 172

HOME ADDRESS

1836 Waters Edge Drive #78

Bloomington, IN 47401
317.459.8302
pkraft@indiana. edu

EDUCATION

Indiana University, Ph.D.

Sport Marketing Program, School of (2005 - Present)
Bloomington, IN
Specializing in brand development, brand equity, marketing and sponsorship.

Indiana University, M.S.

Sport Marketing/Administration School of (2005)
Bloomington, IN

Indiana University, B.A.

Sport Marketing/Management, School of (2000)
Bloomington, IN
 Patrick Kraft— Vita ~ page 2

PROFESSIONAL EMPLOYMENT/EXPERIENCE HISTORY

INDIANA UNVERSITY
Bloomington, IN
Associate Instructor- Sport Marketing & Sport Manafiement August 2005 - Current
• Taught Introduction to Sport Management in the fall of 2005 at Ivy Tech State
College, as a satellite course for Indiana Universities Sport Marketing program.
• Taught 4 semesters of Sport marketing Class at Indiana University
• Currently teaching Sport sales class at Indiana University.
• Have been a regular guest lecturer for 3 years speaking on special topics like:
Branding, Brand Equity, the NCAA Brand, Brand Development through the Print
Medium, Video Games and The Affect on Brand Development, Current Issues in
Sport Marketing and Management.

UNITED STATES SYNCHRONIZED SWIMMING

Indianapolis, IN
Business Development Director October2001 -August 2004
• Oversaw solicitation and management of corporate sponsorship, fundraising,
advertisement and promotional programs.
• Create nationwide sponsor prospect pipeline that includes the management of support
activities and development of solicitation materials and proposals.
• Generate brand recognition and increase membership base by developing and
implementing national and international events, sponsorship and promotional
programs.
• Oversaw Marketing and Sponsorship budget.
• Oversaw and manage day-to-day operations of United States Synchronized
Swimming six National Championships each year.
• Create, manage and promote synchro educational materials, merchandise and
distribution channels.

CHICAGO RUSH FOOTBALL TEAM

Chicago, IL
Corporate Sponsorship and Promotions Coordinator July 2000 - October 2001
• Member of management team responsible for the launch of Chicago's new arena
football franchise.
• Contribute to team's strategic decision making to establish name, logo, media outlets,
ticket sales and target demographic.
• Part of two-person team focused on researching, creating and selling all aspects of
team corporate sponsorship packages. Responsible for over $750,000 of corporate
sponsorship sales in first 5-months of franchise existence.
• Development and organization of game day promotions including pre-game tailgate
party, half-time events, player/fan relations etc.
 Patrick Kraft— Vita — page 3

STARCOM, LEO BURNETT, USA

Chicago, IL
Sports Marketing Assistant March 2000 - July 2000
• Assist in market research and development of corporate marketing strategies,
sponsorships and event promotions for Allstate, McDonalds, Cheez-it, and Secret
Deodorant.
• Research new sponsorship leads; develop, propose, and sell corporate sponsorship
packages and promotions to existing and potential clients; implement sponsors
promotional packages and detail summary reports establishing corporate value.

PROFESSIONAL SERVICE

Manuscript Reviewer, International Journal of Sport Management and Marketing:

September 2005.
Manuscript Reviewer, The SMART Journal: July 2005.
Guest Researcher, Sport Communication and College Student Questionnaire: October
2007.

MEMBERSHIP IN PROFESSIONAL ASSOCIATIONS

Sport Marketing Association

North American Society for Sport Management

RESEARCH AND CREATIVE ACTIVITY

SCHOLARSHIP INTEREST

The business of sport, in relation to marketing, branding and sponsorship.

PUBLICATIONS - BOOK CHAPTERS & AUDIO RECORDINGS

"Roots: Branding the World one Beret at a Time" in Branding in Sport Business text
forthcoming (2008).

"Under Armour- Protect this Brand" in Branding in Sport Business text forthcoming
(2008).
 Patrick Kraft— Vita — page 4

Kraft, Patrick, Pod Cast (2007, Fall). Lecture on the current state of the sport market
industry for undergraduate sport marketing class. Sport Marketing Program, School of,
Marketing Lecture University of Miami

Kraft, Patrick, Pod Cast (2007, Fall). Lecture on how to start a career in the sport industry
and make yourself more marketable in the marketplace. Sport Marketing Program, School
of, Marketing Lecture University of Miami

PUBLICATIONS - REFEREED ARTICLES

Kraft, P., Pedersen, P., Miloch, K., and Drane, D. (2007). Sport Communication and
return on investment: A content analysis of the coverage of Tiger Woods in ESPN The
Magazine. InternationalJournal of Sport Communication (IJSC). Issue TBA

Kraft, P., Clavio, G., Pedersen, P. (2007). An Analysis of the Utilization of Product
Placement as a Method to Increase a Brand's Identity in the Sports Video Game Medium.
International Journal of Sports Marketing & Sponsorship. Issue TBA

PUBLICATIONS - IN REVIEW

Lee, J., Miloch, K., and Kraft, P. (In Review). Building the brand: A case study of Troy
University. Sport Marketing Quarterly.

PUBLICATIONS - WORKS IN PROGRESS

Dissertation: A case analysis of the development of the sport brand in the 21 st century.

Miloch, K., Kraft, P., & Miller, L., (2008, July). Sales success in sports marketing: A step
by step guide to sales success in the sports industry. A scholarly text book for
undergraduate studying sport sales.

Miloch, K., Kraft, P., & Laucella, P., (2008, January). The presentation of NFL general
managers, head coaches, and team leaders in the sporting press: Implications for branding
and media relations. Data collection complete. Analysis is ongoing.

Miloch, K. & Kraft, P. (2008, February). Building the sport brand: The role of public
relations in brand building. Data collection complete. Analysis is ongoing.

Kraft, P. & Lee, J, & Miloch, K., (2008, March). Case study on brand sport development
in the consumer goods sector. Data collection complete. Analysis is ongoing.
 Patrick Kraft— Vita ~ page 5

PRESENTATIONS

Kraft, P., Pedersen, P., Miloch, K. & Drane., (2006, November). Sport Communication
and return on investment: A content analysis of the coverage of Tiger Woods in ESPN The
Magazine. Sport Marketing Association Annual Conference. Denver, CO.

Miloch, K & Kraft, P., (2007, November). Brand building in sport: Using public relations
to cultivate brand equity. Sport Marketing Association Annual Conference. Pittsburgh,
PA

Kraft, P., Clavio, G., (2007, November). An Analysis of the Utilization of Product
Placement as a Method to Increase a Brand's Identity in the Sports Video Game Medium.
Sport Marketing Association Annual Conference. Pittsburgh, PA

PRESENTATIONS - INVITED

Kraft, Patrick (2005, Fall). The NCAA Brand. Guest speaker in sport marketing graduate
class on the beginnings and the development of the NCAA Brand. Sport Marketing
Program, School of

Kraft, Patrick (2005, Fall). Brand development and its relationship to marketing strategies.
Guest speaker in sport marketing undergraduate class on initial branding issues and how it
relates to the marketing process. Sport Marketing Program, School of

Kraft, Patrick (2005, Fall). Introduction lecture to freshman in the Sport Marketing &
Management Program. Discussed the opportunities that are available both academically
and professionally to future Sport Marketing & Management majors. Sport Marketing
Program, School of

Kraft, Patrick (2006, Spring). United States Olympic Sponsorship. Guest speaker in sport
sponsorship graduate class on the pros and cons of the key elements of the sponsorship
program of the USOC. Sport Marketing Program, School of

Kraft, Patrick (2006, Fall). Brand development and its relationship to marketing strategies.
Guest speaker in sport marketing Graduate class on initial branding issues and how it
relates to the marketing process. Sport Marketing Program, School of
 Patrick Kraft— Vita — page 6

Kraft, Patrick (2006, Fall). Introduction lecture to freshman in the Sport Marketing &
Management Program. Discussed the opportunities that are available both academically
and professionally to future Sport Marketing & Management majors. Sport Marketing
Program, School of

Kraft, Patrick (2006, Spring). Brand development and its relationship to marketing
strategies. Guest speaker in sport marketing graduate class on initial branding issues and
how it relates to the marketing process. Sport Marketing Program, School of

Kraft, Patrick (2006, Spring). United States Olympic Sponsorship. Guest speaker in sport
sponsorship graduate class on the pros and cons of the key elements of the sponsorship
program of the USOC. Sport Marketing Program, School of

Kraft, Patrick (2007, Spring). Strategic Brand Management. Discussed the importance of
strategic plans in the development of an organization's branding initiatives. Sport
Marketing Program, School of

Kraft, Patrick (2007, Fall). Branding of the sport product. Guest speaker in sport
marketing Undergraduate class on initial branding issues and how it relates to sport
specific product. Sport Marketing Program, School of

REFERENCES
Larry Fielding, Ph.D
Professor, Sport Marketing
Indiana University
School of HPER
1025 E. 7th Street
HPER 179
Bloomington, Indiana 47405
(812)855-1158
lfieldin@indiana. edu

Kimberly Miloch, Ph.D

Associate Professor, Sport Marketing
Indiana University
School of HPER
1025 E. 7th Street
HPER 174
Bloomington, Indiana 47405
(812)856-0868
kmiloch@indiana.edu