Under Armour’s most recent Fiscal report provided insight into another difficult moment for the brand. UA always feels to be in transition and with Plank back at the helm he acknowledged as much:
Plank also provided context around where UA needed to repair itself, everywhere. From DTC to wholesale Under Armour remains a discount brand and this has diminished margins reducing the ability to create and market innovative product and find where it can best serve the athlete and the business.
Even as an athlete like Sharon Lokedi locks down victories in marathons, Under Armour remains in a place away from runners and casual creations aren’t translating into sales, although the brand has a very good array of products which could translate to casual wear. It’s a difficult position in an unstable marketplace, where a brand as strong as Nike is facing headwinds. Unlike Nike, who can change fortunes at a moment’s notice, Under Armour is a very slow burn.
4 years ago, Under Armour launched their Dark Sky Distance team and program. This weekend arch was a media member at the Ed Murphey Classic a Puma American Track League professional meet. The investment into middle distance, distance and field events was evident. The UA logo was everywhere.
When I wrote the post above, I ended with this comment, “I think it’s unlike anything UA has done on the marketing side of things. It’s not a major play, it’s the small steps needed to correct problems for the company.” for Under Armour any investment is major as the company is losing ground across all categories.
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The abundance of Under Armour kits in the event was seen by an average crowd. The Puma ATL misses on marketing in several aspects. Field events in track and field aren’t given enough coverage although there are extensive opportunities for young athletes there and where there is opportunity Under Armour should be serving.
The running events garnered considerable engagement on social media and the YouTube Livestream via FloTrack was right at 20,000 views. This doesn’t help Under Armour. It helps Puma as the event has the Cat logo everywhere. Still, seeing Under Armour in attendance and on athletes was a sign of the brand taking their performance roots seriously. Unfortunately, the professional level for Under Armour doesn’t have a trickle-down effect. Sponsoring and supporting track and field athletes is important as the sport itself is extremely fractured. When distance runners think of running shoes, they don’t think of Under Armour. Even with the massive number of improvements in the products being created.
In every sport Under Armour is coming off of the bench. How does the brand move from a sixth man role into the starting five particularly in track and field? Grassroots. Track and field at the youth level offers a niche opportunity which requires a small investment which could pay incredible dividends. Under Armour currently drops a considerable amount of time and effort into their basketball grassroots. This is a market completely owned by Nike and adidas. Right now, track is controlled by Nike by default. While the Swoosh does offer a national meet and is the backbone of the USATF, there isn’t any local, regional investment. Young athletes simply buy what is more readily available and familiar. Since they wear Jordan and Nike off the track, they wear it on the track.
Athletes have long memories though. What’s done for them early in their careers sticks with them as they grow into adulthood. Kevin Plank is attempting to navigate the industry from the top down when the navigation starts from the ports and small waterways before a ship reaches the deep waters of the ocean. For Under Armour to become the brand it aspires to, the company will need to develop regional strategies for youth athletes. Seeing the pros rocking UA kits was an eye opener, but ultimately it is akin to building a ship in the ocean and setting sail as opposed to building the ship in a drydock where everyone can see the progress.