Assessment Item

Student Name
Course

Campus
Lecturer

Table of contents

Executive Summary ............................................................................................................. 4

Introduction ......................................................................................................................... 5

Assumptions ........................................................................................................................ 5

Positioning Strategy............................................................................................................. 6
4.1

Target Market ............................................................................................................... 6

Geographic ......................................................................................................................... 6
Demographic ...................................................................................................................... 7
Psychographic .................................................................................................................... 7
Behavioural ........................................................................................................................ 7

4.2

Competitor Analysis ..................................................................................................... 8

4.3

POPs and PODs .......................................................................................................... 10

Building Brand Equity ....................................................................................................... 12

5.1

Brand Awareness ........................................................................................................ 12

5.2

Selection and justification of brand elements ............................................................. 13

5.3

Brand Image................................................................................................................ 15

5.4

Brand Associations ..................................................................................................... 16

Communication Strategy ................................................................................................... 17

6.1

Message and Creative Strategy ................................................................................... 18

6.2

Media Mix .................................................................................................................. 19

Measuring Brand Equity .................................................................................................... 20

Assumptions and Recommendations ................................................................................. 22

Conclusion ......................................................................................................................... 23

10 References ......................................................................................................................... 24
11 Appendices ........................................................................................................................ 27

Executive Summary

Under Armour Inc is a leading international sports brand with a mission To Make All
Athletes Better Through Passion, Design And The Relentless Pursuit Of Innovation (Under
Armour, n.d.). This brand plan proposes a brand extension in the form of a category extension
into the smart biometric clothing category. The unique feature of this brand is the integration
of wearable electronic LED displays into the product. This new technology will afford the
brand extension a unique competitive advantage, highlighting a key POD. The focus on
innovation creates a clear synergy with the parent brand. This brand plan fully details the
proposed strategy for the new brand extension, including brand positioning, outlining how to
build brand equity and detailing a communications strategy for the brand. Furthermore this
report highlights several key recommendations drawn from the analysis in this report. Failure
to implement this plan could result in a lost opportunity to be a market leader in this category,
potentially damaging the parent brands image through a perceived failure in not fulfilling its
mission, To Make All Athletes Better Through Passion, Design And The Relentless Pursuit
Of Innovation (Under Armour, n.d.).

Introduction

Under Armour Inc. (hereby referred to as UA) is a corporate brand containing several brands
within its brand hierarchy (appendix 1). This brand plan has been developed to propose a
brand extension, in a new product category, known as a category extension. This extension is
a move into the biometric, smart clothing category, with the distinct difference of
incorporating wearable LED displays (Jeffrey, 2015). The proposed brand extension is to be
called Under Armour SmartGear (hereby referred to as UASG). The plan will focus on a
single geographic location, North America, where UA currently generates 94.1% of total
revenues (MarketLine, 2014). This extension represents a growth strategy, developing new
products into existing markets, According to Ansoff, a product development strategy (Keller,
2013).

Assumptions

The author when developing this plan has relied on the following assumptions:

That no new competitors will enter the market in the next twelve months.

That the USAs economy will remain stable for the next twelve months.

That the marketing budget for launching the new brand extension is unlimited.

That there are no new technological developments in biometric clothing in the next
twelve months.

That consumers presently have an awareness of, and favourable associations about the
parent brand.

The organisation will conduct market research of the proposed target market prior to
executing the brand plan to obtain a quantitative baseline measure of brand equity and
awareness from which to gauge the success of the proposed elements of this plan.

Positioning Strategy

Brand positioning creates a distinct and valued place in the consumers mind by designing the
companys offer and image. Good positioning clarifies what a brand is about, highlighting
the reasons a consumer should purchase the product (Keller, 2013). Positioning involves the
identification of the target market using market segmentation. Optimal competitive brand
positioning requires defining the competitive frame of reference and selecting and
establishing points of parity and points of difference (Keller, 2013).

4.1

Target Market

The marketing process begins with the identification of the target audience with unfulfilled
needs, these form the focus of the organisations advertising and promotional efforts (Belch &
Belch, 2015). Market segmentation is the process of dividing a larger market into groups that
have common needs and will respond similarly to market action (Hanson, Hitt, Ireland &
Hoskisson, 2014). Segmentation produces results that indicate desirable marketing action
(Johnson, 1971). Bases for this segmentation include geographic, demographic,
psychographic and behavioural (Solomon et al., 2013).

Geographic
Geographic segmentation focuses on the region to be targeted (Beanne & Ennis, 1987). This
brand plan will focus on a single geographic territory, North America. This is the country of
origin of the parent brand and UA currently generates 94.1% of total revenues from this
region (MarketLine, 2014).

Demographic
Markets can be divided using demographic characteristics such as age, gender, income, or
ethnicity (Solomon et al., 2013). Several demographics will be targeted by UASG:

Males and females aged 16-50 year old

In a mid to high income bracket

Psychographic
Psychographic data refers to shared activities, life-style, interests or opinions (Beane & Ennis,
1987). In this campaign we plan to target:

People who have a fit and active lifestyle.

Athletes, sportspeople and sports enthusiasts who participate in a wide range of sports.

Athletes, sports people and sports enthusiasts who want to develop and improve
themselves in their training.

Athletes, sportspeople and sports enthusiasts who want to reduce risk or injury in their
training.

Behavioural
Segmentation based on behaviour examines loyalty, user status, purchase occasion and
benefits sought from the purchase (Beane & Ennis, 1987). The following behavioural
characteristics will be targeted:

People who like the status associated with buying the latest technical gadgets

People who are driven to and like the status associated with performing well and
achieving the best possible results

People who are worried about enduring injury during training

4.2

Loyal customers

Competitor Analysis

In order to arrive at the optimal competitive brand positioning, it is important to define the
competitive frame of reference. Identification of category membership is essential in order to
link the brand to its product category. USAG aims to compete in the smart, biometric clothing
category. This competitive environment is one of monopolistic competition. This market
structure is characterised by many sellers competing for buyers in a certain market, each
company offering a slightly different product (Solomon et al., 2013).

To be successful in a competitive market, it is essential for marketers to have a clear

understanding of their competition (Solomon et al., 2013). There are several primary
competitors currently offering smart clothing (see table 1). However this category is in its
infancy, due to the recent development of the technology. Consequently the current product
offering is quite limited, and the majority of existing competitors only service the male
demographic. Additionally none of the competitors offer a wearable LED electronic display,
which is a key feature of the UASG products. These factors could afford UASG a unique
competitive advantage.

Table 1: Primary competitors

Bergen and Peteraf (2002) highlight the importance of focusing not only on the product
market, but also scanning the environment for indirect or potential competitors. A wearable
electronic device, such as a watch or bracelet, can fulfil some of the benefits offered by smart
clothing. These secondary competitors are highlighted in table 2. It will be essential to
communicate the additional benefits received from UASGs smart clothing. This situation
should be continuously monitored for further technological developments.

Table 2: Secondary competitors

4.3

POPs and PODs

Points of parity associations (POPs) are associations that are not unique to the brand but are
shared with other brands (Keller, 2013). Certain POPs must be met in order for consumers to
perceive your brand as a competitor in the chosen frame of reference. Furthermore it is
especially important not to shortchange POPs when extending a brand in order to create links
to product category (Keller, Sternthal & Tybout, 2002). POPs are outlined in table 3.

Table 3: POPs

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Points of difference associations (PODs) on the other hand are positive attributes or benefits
that consumers associate with, and are seen as unique to that brand (Keller, 2013). Keller,
Sternthal and Tybout (2002) outline that these strong, unique and favourable associations
distinguish a brand from others in the same frame of reference and as such are therefore
fundamental to successful brand positioning. UASGs intended PODs are outlined in table 4.

Table 4: PODs

The positioning strategy for UASG will focus on the consumer. This approach links the
product with the benefits the consumer will derive from its use and through creating a
favorable brand image (Belch & Belch, 2015). The positioning will remain in line with UGs
mission statement, To Make All Athletes Better Through Passion, Design And The
Relentless Pursuit Of Innovation (Under Armour, n.d.). Several positioning strategies will
therefore be employed in order to target the identified market segments, link to product
category through showcasing POPs as well as highlighting the brands PODs;

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Positioning by product attributes or benefits

Positioning by use or application

Positioning by product user

Building Brand Equity

Customer based brand equity (CBBE) is an approach to brand equity from the consumers
perspective. CBBE occurs when the consumer has strong, favourable and unique brand
associations in memory, as well as a high level of familiarity and awareness of the brand. The
CBBE perspective acknowledges that brand knowledge is the key to creating brand equity
(Keller, 2013). Brand knowledge consists of two main elements; brand awareness and brand
image. These two elements are the sources of brand equity (Keller, 2013). These elements are
analysed below UASG.

5.1

Brand Awareness

Brand awareness is the consumers ability to retrieve the brand from memory when given the
products category (Keller, 2013). The associative memory model explains this ability (Pitta &
Katsanis, 1995). Aaker (1992) argues that brand awareness contributes to brand equity by
providing an anchor to which other associations can be attached, creating familiarity and
providing a signal of substance and commitment. Additionally brand awareness has been
shown to positively effect brand loyalty, an essential element in building brand equity (Aaker,
1992).

Brand awareness is established by exposing consumers to brand elements. These brand

elements all help to aid recall (Keller, 2013). The greater number of elements reinforced, the

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better. Repetition increases the brands ability to be recognisable (Keller, 2013). This plan
proposes a wide-ranging approach to build brand awareness. The brands positioning should
be consistently reinforced, providing positive linkages to product category. Brand awareness
will be built through the selection and use of brand elements, these elements are outlined in
section 5.2.

Brand awareness will also be created through extensive advertising. Each of the
advertisements should reaffirm the positioning and slogan, featuring the brand name and logo
(Keller, 1989) see appendix 2. The new brand will have a URL within the existing parent
brand website and a social media presence with links to the parent brands social media
accounts. Keller (2013) highlights the importance of brand recognition at point of purchase,
therefore it is recommended that UASG aid this with the use of unique and branded POS
fixtures at selling locations. Furthermore social media buzz will be created by leveraging
secondary associations from the parent brand, including the use of celebrity athlete endorsers
currently under contract with the parent company.

5.2

Selection and justification of brand elements

Brand elements are trademarkable devices that identify and differentiate the brand. Brand
elements should be memorable, meaningful, likeable, transferrable, adaptable and protectable
(Keller, 2013). Brand extensions retain one or more elements from an existing brand (Keller,
2013). This plan proposes the following brand elements:

Brand name
To improve brand awareness brand names should be simple, easy to pronounce or spell,
familiar and capture key associations (Keller, 2013). Under Armour SmartGear is a unique

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brand name, which follows these guidelines while leveraging the parent brand and reflecting
category membership.

Logo
The UASG logo will incorporate the parent brands existing logo, this will leverage the
existing brand equity of the parent brand. Additionally it will incorporate the new brand name
in the distinctive font used across the family of brands, this will make the logo appear more
familiar (see appendix 3).

URL
UASG will have a dedicated URL within the parent brands website, the URL is
www.underarmour.com/smartgear

Slogan
The slogan Dont participate, COMPETE will be used for the UASG. Slogans help to build
brand awareness by reinforcing brand positioning (Keller, 2013). This slogan highlights the
usage benefits, appealing to the target market behavioral segmentation. Its tough, competitive
style remains consistent with the brand personality of the parent brand. Reece, Van Den
Bergh and Li (1994) outline that an effective slogan summarises the brand message and
provides continuity across marketing campaigns. Its use is a key factor in establishing and
maintaining a strong brand identity.

Product labelling
A unique labeling program will be used across the UASG range. The labeling will include the
brand name /logo. To convey the technical nature of the product labels will feature key

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elements in holographic material (see appendix 4). The labeling will also include technical
information about the product, its benefits and information on its use, again reinforcing links
to product category and highlighting PODs.

Logo branding on products

Each of the products in the range will feature high density, reflective printing of the logo in
key prominent positions (see appendix 5). This will create brand awareness by generating
repeated exposure of the brand elements when the wearer uses the product.

5.3

Brand Image

Brand image is the perceptions a consumer has about a brand based on the associations they
hold in memory (Silverman, Sprott & Pascal, 1999). Creating a positive brand image requires
marketing efforts that link strong, unique and favourable associations whether they be brand
attributes or benefits (Keller, 2013). UASGs positioning identifies the benefits that the
consumer could expect to receive from using the product, highlighting the brands PODs. The
brand positioning should be supported in all marketing activities, as brand image is
strengthened by repeated exposure (Keller, 2013). By consistently exposing brand elements
and positioning over time, UASG will strengthen its brand image.

In line with the strategy of positioning UASG as a market leader, UASG will employ a
premium pricing strategy. A higher price creates perceptions of higher quality (Belch &
Belch, 2015). Furthermore the brand will be distributed through existing channels with unique
POS displays.

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5.4

Brand Associations

Brand associations can be classified into two categories; attributes and benefits (Keller,
2013). Attributes relate to product performance and are connected to the products physical
characteristics, while benefits highlight the want satisfaction the product features provide
(Pitta & Katsanis, 1995).

Core brand associations are abstract associations that characterise the most important aspects
of a brand. They serve as the basis for brand positioning (Keller, 2013). The core brand
associations for UASG are shown in table 5.

Table 5: Core brand associations

Secondary brand associations are connections between the brand and another entity. The
leveraging process works when there is awareness and knowledge of the entity, if this
knowledge is meaningful and relevant for the brand, then associations, feelings and
judgments about the entity may transfer to the brand (Keller, 2013). Leveraging these
associations the brand can increase its brand equity. By creating a brand extension that
combines the family brand name along with a new name, the brand is able to leverage the
brand equity from the parent brand (Pitta & Katsanis, 1995). Other secondary associations

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recommended in this plan are celebrity endorsement using elite athletes currently used by UA
and the sponsorship of elite sporting events.

Brand mantra
The brand mantra is a phrase that captures the essence of the brand. Brand mantra includes
three distinctive elements; the emotional modifier, the descriptive modifier and the brand
function (Keller, 2013). We can define UASGs brand mantra as: Competitive Technical
Athletic Performance (see table 6).

Table 6: Brand mantra

Communication Strategy

Strategies focus on the companys future direction and achieving the long-term objectives of
the organisation (Holm, 2006). Communication strategies outline the necessary action
required to achieve the organisations communication objectives (Kelley, Sheehan &
Jugenheimer, 2015). The aim of UASGs communication strategy is to increase brand
awareness by establishing category membership, linking to product category and highlighting
the organisations PODs.

The basic communication process model has several elements that must be considered in the
communication process; source, encoding, channel, message, decoding and receiver (Belch &
Belch, 2015). These elements are considered below.

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6.1

Message and Creative Strategy

The source is the entity responsible for communicating the marketing message (Belch &
Belch, 2015). UASG will use an indirect source in the form of an elite athlete. Consumers are
more likely to be influenced by a persuasive message delivered by an attractive, likeable
source. Yilmaz, Telci, Bodur and Iscioglu (2011) state that a likable source creates positive
feelings towards the brand, which in turn creates favourable associations.

As part of the creative strategy the major selling idea for the campaign must be developed
(Belch & Belch, 2015). UASG will use the slogan SmartGear. Dont participate,
COMPETE. The use of self-reference in a slogan leads to increased recall of the slogan,
product or brand (Reece, Van Den Bergh & Li, 1994). This will be reinforced in all elements
of the communication message.

Execution
The message uses a combination of demonstration and imagery. Demonstration advertising
can be an effective method to convince consumers of its products utility and the benefits of
owning the brand (Belch & Belch, 2015). Imagery execution will be employed based on
usage imagery, showing how the product performs in use, and user imagery, showing the type
of person that uses the brand. The message will be a visual, one-sided message highlighting
the benefits of the UASG products. UASG holds a unique competitive advantage of being the
only brand in its category to offer wearable LED display technology. This is a key POD and
will be highlighted in all communication material.

Appeals

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Advertising appeals are used to capture the attention of consumers and to influence them
towards the product (Belch & Belch, 2015). This message will use emotional appeals, which
seek to make the consumer feel good about the product by creating a likable brand image,
relying on feelings for effectiveness (Albers-Miller & Staford, 1999). The proposed message
appeals to the consumers self-esteem and status. Albers-Miller and Staford (1999) outline an
emotional response results in more positive reactions and subsequently a higher level of
recall.

6.2

Media Mix

In order to achieve the communication objectives, a wide variety of media will be utilised
with the aim of full market coverage. Marketers can increase the likelihood of achieving
objectives by combining media to increase coverage (Belch & Belch, 2015). The specifics of
the media to be utilised are outlined in table 7.

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Table 7: Media mix

Measuring Brand Equity

It is important to continuously measure and track brand equity in order to monitor the
outcomes of marketing activities on the consumer mindset (Keller, 2013). In order to
effectively capture the customer mindset, both qualitative and quantitative techniques should
be assessed.

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Qualitative
Qualitative research techniques identify possible brand associations and techniques. Free
association is a powerful way to identify brand associations that exist in consumers minds.
Answers to questions such as what do you like about the brand? enable marketers to
distinguish a range of possible associations. This also provides an indication of the strength,
favorability and uniqueness of brand associations (Keller, 2013).

Projective techniques are diagnostic tools, which use ambiguous stimuli to uncover true
feelings and opinions of consumers. These techniques are designed to break down barriers to
communication, allowing insights into consumer mindset (Hussey & Duncombe, 1999).

Another technique to understand how consumers view brands and a method that is easy to
conduct for market researchers without specialised training is Brand Concept Maps (BCM).
BCM provides a map showing the network of salient brand associations that underlie
consumer perceptions of the brand. Through this process valid depictions of consumer brand
perceptions can be obtained (John, Loken, Kim & Monga, 2006).

Additionally brand personality and values can be measured using a method such as Aakers
The Big Five. This method looks at five factors of brand personality; sincerity, excitement,
competence, sophistication and ruggedness (Aaker, 1997). This study outlined the importance
of brand personality in increasing consumer preference, usage, increasing loyalty and evoking
emotion.

Quantitative

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Brand awareness can be measured with the use of recognition tests. This requires consumers
to identify any of the brand elements under a number of different circumstances (Keller,
2013). Another way to test brand awareness is through recall testing, where the consumer
must retrieve the brand element from memory when given the related product cue. This
technique can assess aided recall or unaided recall (Keller, 2013).

An important aspect contributing to brand equity is brand image. A technique for measuring
imagery associations is by using beliefs. To gain specific insights, belief associations can be
rated according to strength, favorability and uniqueness. Another option is the use of
Multidimensional scaling or perceptual maps. These techniques convert consumer judgments
or preference into perceptual space, however this process is more complicated (Keller, 2013).

Assumptions and Recommendations

There are several assumptions and recommendations arising from this brand plan. These are
listed below in order of priority:

1. According to the principle of synergy brand extensions should enhance the equity of the
parent brand (Keller, 2013). It is essential to invest in heavily in R&D to ensure that the
product performs as expected. If the product doesnt fulfill expectations then not only will
the new brand fail, but it will damage the parent brand and subsequently the brand family.

2. The implementation of brand tracking studies is recommended in order to collect

information from consumers on a routine basis through quantitative measures of brand
performance across several key dimensions (Keller, 2013). It is recommended that several
tracking studies be implemented. Firstly, product brand tracking for the new brand UASG

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and its products. Secondly, corporate or family brand tracking for UA. This will ensure
that marketing efforts are measured and adjustments to activities can be made
accordingly.

Conclusion

This brand plan has been proposed to create a brand extension for the existing UA brand into
the smart clothing category. The plan outlines a positioning strategy based on target market
segmentation, competitive analysis and through the identification of POPs and intended
PODs. A CBBE approach has been taken to outline how to build brand equity for the brand
extension, including the development of brand elements to build brand awareness and through
the creation of strong, unique and favourable associations to build brand image. The author
proposes a communication strategy aimed at targeting the identified market/s and linking the
brand to product category. A comprehensive media mix is proposed and several
recommendations are made based on the analysis undertaken in the brand plan.

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10 References
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Albers-Miller, N. D. & Stafford, M. R. (1999). An international analysis of emotional and

rational appeals in services vs goods advertising. Journal of Consumer Marketing, 16(1), 4257.

Beane, T. P. & Ennis, D. M. (1987). Market segmentation: A review. European Journal of

Marketing, 12(5), 20-42.

Belch, G. E. & Belch, M. A. (2015). Advertising and promotion: An integrated marketing and
communications perspective (10th ed.). New York: McGraw-Hill.

Bergen, M. & Peteraf, M. A. (2002). Competitor identification and competitor analysis: A

broad-based approach. Managerial and decision economics, 23(4-5), 157-169.

Hanson, D., Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. (2014). Strategic management:
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Holm, O. (2006). Integrated marketing communications: From tactics to strategy. Corporate

Communications: An International Journal, 11(1), 23-33.

Hussey, M. & Duncombe, N. (1999). Projecting the right image: Using projective techniques
to measure brand image. Qualitative Market Research: An International Journal, 2(1), 22-30.

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Jeffrey, C. (2015). Researchers create soft, weaveable LED fibres for truly flexible wearable
displays. Retrieved from http://www.gizmag.com/led-fiber-wearable-display-kaist/38890/

Johnson, R. M. (1971). Market segmentation: A strategic management tool. Journal of

Market Research, 8(1), 13-18.

Keller, K. (1989). Red Bull: Building brand equity in non-traditional ways. Best practice
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Keller, K. (2013). Strategic brand management: Building, measuring, and managing brand
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Keller, K. L., Sternthal, B., & Tybout, A. (2002). Three Questions You Need to Ask About
Your Brand. Harvard Business Review, 80(9), 80-86.

Kelley, L., Sheehan, K. & Jugenheimer, D. W. (2015). Advertising Media Planning: A Brand
Management Approach. Retrieved from http://www.eblib.com

MarketLine. (2014). Company profile: Under Armour, Inc. SWOT analysis, 1-7.

Pitta, D. A. & Katsanis, L. P. (1995). Understanding brand equity for successful brand
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Reece, B. B., Van Den Bergh, B. G. & Li, H. (1994). What makes a slogan memorable and
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John, D. R., Loken, B., Kim, K., & Monga, A. B. (2006). Brand Concept Maps: A
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Solomon, M., Hughes, A., Chitty, B., Marshall, G. & Stuart, E. (2013). Marketing: Real
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11 Appendices
Appendix 1: Brand Hierarchy

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Appendix 2: Advertising example

Appendix 3: Proposed UASG logo

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Appendix 4: Labelling sample and holographic printing

Appendix 5: Product branding and print sample

29