Under Armour Business Model

Under Armour’s business model revolves around delivering high-performance sportswear and athletic gear to athletes and fitness enthusiasts. They focus on product design, manufacturing, and distribution, while building a strong brand and forming partnerships with athletes and retailers. Revenue is generated through sportswear sales, branded apparel, and licensing/sponsorship deals. Key activities include research and development, marketing, and retail operations. Key resources include design capabilities, manufacturing facilities, and brand equity. Costs are incurred in product development, marketing, distribution, and partnerships.

Table of Contents

Value Proposition:

Performance and Innovation: Under Armour offers performance-driven sportswear and athletic gear designed to enhance athletes’ performance and comfort during training and competition. With a focus on innovation, advanced materials, and ergonomic designs, Under Armour products deliver superior functionality and support to athletes of all levels.
Athlete Empowerment: Under Armour empowers athletes with products and technologies that inspire confidence, motivation, and resilience. Through motivational messaging, athlete endorsements, and community engagement initiatives, Under Armour fosters a sense of belonging and empowerment among its customers, encouraging them to push their limits and achieve their goals.
Style and Versatility: Under Armour combines performance with style, offering athleisure apparel and casual wear suitable for both athletic activities and everyday wear. With trendy designs, bold colors, and fashionable silhouettes, Under Armour products appeal to fashion-conscious consumers seeking versatile, on-trend athleisure options.
Quality and Durability: Under Armour prioritizes quality and durability, ensuring its products withstand the rigors of athletic performance and frequent use. Through rigorous testing, quality control measures, and superior craftsmanship, Under Armour maintains high standards of durability, reliability, and longevity across its product range.

Revenue Model:

Product Sales: Under Armour generates revenue primarily through the sale of athletic apparel, footwear, and accessories to consumers through various retail channels, including company-owned stores, e-commerce platforms, wholesale distributors, and third-party retailers. Revenue from product sales includes sales of both performance-oriented sportswear and athleisure apparel.
Brand Licensing: Under Armour earns revenue through brand licensing agreements with third-party manufacturers and retailers who produce and sell licensed merchandise under the Under Armour brand name. Licensing revenue is generated through royalties, licensing fees, and product royalties from the sale of licensed merchandise across different product categories and geographic regions.
Subscription Services: Under Armour offers subscription-based services, such as its MapMyRun and MapMyFitness apps, which provide users with personalized training plans, workout tracking, and fitness analytics. Revenue from subscription services is generated through subscription fees, premium feature upgrades, and in-app purchases within the company’s digital fitness ecosystem.
Sponsorship and Endorsement Deals: Under Armour enters into sponsorship and endorsement deals with professional athletes, sports teams, and athletic organizations to promote its brand and products. Revenue from sponsorship and endorsement deals includes cash payments, product endorsements, and promotional partnerships that enhance brand visibility and reach new audiences.

Distribution Model:

Under Armour employs a multi-channel distribution model to make its high-performance sportswear and athletic gear accessible to customers:

Own Retail Stores: The company operates its branded retail stores and factory outlets, providing customers with a direct shopping experience.
E-Commerce: Under Armour maintains an online presence through its e-commerce platform, allowing customers to browse and purchase products conveniently.
Retail Partnerships: The brand collaborates with various retail partners, including sporting goods stores and department stores, to extend its reach and availability.
Athlete Partnerships: Under Armour leverages athlete partnerships to enhance distribution, as athletes endorse and promote the brand’s products.

Marketing Strategy:

Under Armour employs a dynamic marketing strategy to promote its sportswear and build brand recognition:

Athlete Endorsements: Partnering with athletes and sports personalities to endorse products and increase credibility among the target audience.
Sponsorship Deals: Sponsoring sports teams, leagues, and events to enhance brand visibility and connect with sports enthusiasts.
Marketing Campaigns: Launching marketing campaigns that highlight the performance and quality of their sportswear, targeting athletes and fitness-conscious consumers.
Digital Presence: Utilizing digital marketing channels, including social media, to engage with customers and promote products.
Brand Consistency: Maintaining brand consistency by emphasizing high-performance and innovative design in all marketing efforts.

Organizational Structure:

Under Armour’s organizational structure facilitates efficient operations and brand management:

Under Armour, Inc.: The parent company overseeing various divisions and brands.
Performance Apparel, Footwear, and Accessories: Focusing on the development, design, and manufacturing of performance sportswear, footwear, and accessories.
Connected Fitness: Operating the MapMyFitness, MyFitnessPal, and Endomondo platforms, emphasizing digital fitness and tracking.
International: Managing operations and expansion efforts in international markets to tap into global demand.
Marketing and Branding: Responsible for marketing, branding, and athlete partnerships to maintain brand consistency and recognition.
Retail Operations: Overseeing retail stores, factory outlets, and e-commerce platforms for product distribution.
Research and Development: Focusing on product innovation, materials, and design to ensure high-performance sportswear.
Digital and Technology: Managing digital platforms and technological initiatives for customer engagement and growth.

Key Highlights

High-Performance Sportswear: Under Armour’s primary objective is to create and provide high-performance sportswear and athletic gear catering to athletes and fitness enthusiasts.
Product Design and Manufacturing: The company emphasizes innovative product design and efficient manufacturing processes to deliver sportswear that meets the needs of active individuals.
Distribution and Retail: Under Armour manages the distribution and retail of their products to ensure they reach their target customers through various channels, including their own stores, e-commerce, and retail partners.
Brand Building: Under Armour focuses on building a strong brand identity associated with high-quality and high-performance athletic wear.
Athlete Partnerships: The company collaborates with athletes and influencers to endorse their products, adding credibility and connecting with their target audience.
Retail Partnerships: Under Armour forms partnerships with retailers to expand their distribution reach and make their products more accessible to consumers.
Diverse Revenue Streams: Revenue is generated through direct sportswear sales, branded apparel, and additional income from licensing and sponsorship deals.
Research and Development: Continuous research and development efforts drive Under Armour’s product innovation, ensuring their sportswear remains competitive in the market.
Marketing: Effective marketing strategies help Under Armour promote their brand and products to athletes and fitness enthusiasts worldwide.
Retail Operations: Under Armour’s own retail stores and online platform contribute to their direct-to-consumer strategy, allowing them to control the shopping experience and gather customer data.
Key Resources: Under Armour’s key resources include their design capabilities, manufacturing facilities, and the strength of their brand’s reputation.
Cost Management: Managing costs is essential for profitability. Under Armour focuses on optimizing product development, marketing expenses, distribution, and partnerships.
Customer Focus: Under Armour tailors their products and marketing efforts to resonate with the needs and aspirations of athletes and fitness-conscious consumers.
Innovation: Staying at the forefront of sportswear technology and trends is a priority, as Under Armour continually seeks innovative materials and designs.
Global Reach: Under Armour’s global presence allows them to tap into various markets, adapting to regional preferences and expanding their customer base.
Eco-Friendly Initiatives: Like other companies, Under Armour’s focus on sustainability aligns with the growing concern for the environment and ethical consumption.

Element	Description
Value Proposition	Under Armour offers the following value propositions for its customers: – Performance Apparel: High-quality sportswear for enhanced performance. – Innovative Technology: Incorporating advanced sports technology. – Comfort and Fit: Providing comfortable and well-fitting athletic gear. – Athletic Style: Stylish and trendy sportswear designs. – Durability: Known for the durability and longevity of its products. – Brand Loyalty: A loyal and engaged customer base. – Athlete Endorsements: Associating with professional athletes. – Fitness and Lifestyle: Catering to both active and lifestyle consumers.
Core Products/Services	Core products and services provided by Under Armour include: – Performance Apparel: Manufacturing and selling athletic apparel. – Footwear: Producing athletic shoes for various sports. – Accessories: Offering sports accessories and gear. – Connected Fitness: Digital fitness and health tracking platforms. – Branded Apps: Mobile apps for fitness and nutrition tracking. – HealthBox: Health and fitness monitoring kits. – Under Armour Connected Footwear: Smart shoe technology. – MyFitnessPal: A popular fitness and nutrition app.
Customer Segments	Under Armour targets various customer segments: – Athletes: Individuals engaged in sports and fitness activities. – Sports Teams: Athletic teams requiring sportswear and gear. – Fitness Enthusiasts: People focused on health and fitness. – Casual Athletes: Individuals adopting an active lifestyle. – Retail Partners: Sporting goods and retail partners. – Youth and Schools: Schools and youth sports organizations. – Tech-Savvy Consumers: Users of connected fitness technology. – Lifestyle Consumers: Those seeking athleisure and casual wear.
Revenue Streams	Under Armour generates revenue through several revenue streams: – Product Sales: Earnings from the sale of sportswear, footwear, and accessories. – Connected Fitness: Subscription fees from the MyFitnessPal app and connected fitness platforms. – Licensing and Partnerships: Income from brand licensing and collaborations. – Retail Sales: Revenue from retail partners and distributors. – Branded Apps: Income from mobile app advertising and premium features. – Connected Footwear: Earnings from smart shoe technology. – Customization Services: Fees for personalized product customization. – Fitness and Nutrition Products: Sales of health and fitness products.
Distribution Strategy	The distribution strategy for Under Armour focuses on both physical and digital channels: – Retail Stores: Operating company-owned retail stores. – Wholesale: Partnering with sporting goods and retail stores. – E-commerce: Selling products through the official website. – Connected Fitness Platforms: Offering digital fitness and nutrition apps. – Athlete Endorsements: Associating with professional athletes for promotion. – Licensing and Partnerships: Collaborating with brands and partners. – Customization Services: Personalizing products for customers. – Connected Footwear: Integrating smart shoe technology.