Kevin Plank Essay

In 1996, Kevin Plank, a former football player for the University of Maryland, began a small-time operation called Under Armour whose only objective was to create superior shirts for athletes. He envisioned a shirt that would be cool during hot seasons, and provide warmth on cold seasons. These apparels came to be called: HeatGear, ColdGear, and AllSeasonGear. The technology involved in creating the shirts includes using a Lycra blend to provide heat and warmth depending on the season. By regulating heat, athletes no longer find themselves soaked in sweat during days of hard training. What started as a basement operation in Baltimore turned into a multi-billion business, and gave birth to the performance apparel sector. The company currently holds at least seventy-five percent of the industry. It has about fourteen thousand stores globally, with offices in Canada, Hong Kong, Amsterdam, among others. Aside from shirts, Under Armour now sells cleats, boxer shorts, battling gloves, and sports bras. Almost a decade after its conception, Under Armour sold shares to the public in an initial public offering where stock prices rose to over $26 a piece. Marketing, Production & Growth The company’s growth is partly attributed to its modest marketing campaigns, which rely on cost-effectiveness and innovation rather than celebrity endorsements. Almost all of Under Armour’s products are manufactured overseas in countries where labor costs are lower, such as Mexico and China. These strategies enables Under Armour to save millions of dollars. To sustain its growth, Under Armour looks into new markets to penetrate. The company’s focus is currently on men’s apparel, which gives it the opportunity to explore women’s sports apparel. The company also believes in expanding into other markets in other countries to protect it from the effects of an unstable U. S. economy. Industry experts suggested that Under Armour, having no patent on its moisture-wicking technology, should innovate and launch more retail stores to provide their products with more exposure. Going Forward Studies made for the clothing industry revealed that the performance apparel industry accounts for about a quarter of retail clothing sales in the United States last year. The biggest markets with the biggest potentials are those in the outdoor sports wear, as well as the Chinese consumers, according to experts. The trend is geared toward creating performance wear that has moisture wicking, bacteria-resistant, UV protection, and is eco-friendly. It was also found out that sales for athletic footwear rose three percent. Responding to this growth, Under Armour disclosed that in May 2008, it will launch a full-ad campaign for its cross-trainer shoes. The ad will use up to thirteen percent of its 2007 revenue. Under Armour has also aired a sixty-minute ad during the Super Bowl in February. Its shares dipped on investors concern of overspending on the marketing during the Super Bowl and the new shoes campaign. It remains to be seen whether Under Armour’s latest foray will become another success.