Sports apparel is a highly competitive industry, gaining increased customer appreciation worldwide, mostly because the emerging interest of 21st century individuals to commit to a healthy lifestyle, wherein sports play a significant part. Engaged in a competitive-advantage open market, the sports apparel are approaching various promotional and advertising strategies for increasing their market share and their brand awareness among sports-oriented consumers. This report looks at two sports brands, respectively Under Armour and Asics, for examining the promotional and advertising strategies that they conduct for the running shoes category product. Comparing their strategies among each other and comparing each brand’s strategies with the advertising and promotional and the pricing strategy used by the leader of market category (Nike), there will be delineated recommendations for each brand to improve their market presence and to better differentiate from their competitors.
Under Armour, a brand inaugurated in 1996 by Kevin Plank, enjoys a rapid popularity among sports fans, because of its non-conventional marketing strategies used for promoting the brand. As such, Plank, a former athlete himself, used his personal athlete network for promoting its brand (initially with the Under Armour t-shirts), emphasizing the products’ qualitative technology and making soon Under Armour the brand of choice because it was celebrity endorsed (Plank, 2012). By sponsoring celebrities, famous sports teams, but also high school or college sports teams, the brand rapidly entered in the collective consciousness, gaining international popularity because of its good fabrics and because of its targeted positioning. Under Armour used an inversed advertising strategy, initially targeting the sports celebrities and next introducing its products as mainstream sports apparel.
Under Armour’s shoe category includes 22 models for different needs (Under Armour official website). For promoting the quality of its UA SpeedForm RC Running Shoes, the company focused on comparing the technology incorporated into this apparel with the rocket science. As such, the commercial specifies that spacesuits were created based on the bra making technology and so were Under Armour SpeedForm RC Running Shoes, which is the reason for which the shoes are so much comfortable than any other shoes (according to the silent claim of the commercial) (YouTube, “Under Armour Introduces”). The technology is one main asset that Under Armour promotes for its shoes (ultrasonic welded seams, next to skin support, silicone grip, anatomic toe molding, etc., all designed to fit (RoadRunner Sports, “Men’s Under Armour Speedform RC”)). The comfort, a direct benefit of wearing Under Armour sports apparel, represents another main asset that Under Armour uses for engaging its consumers. Therefore, this is an integrated communication for Under Armour products, because its t-shirts also transmitted the same values.
Continuing its market entry strategy from up to downwards, Under Armour’s advertising strategy for its running shoes category included a non-conventional, direct approach for launching the brand in China, initially targeting the Chinese athletes; a retail space that includes a 360-degrees theater experience that boosts the brand’s equity through celebrity endorsement movies, ads, testimonials, stories, followed up by a promo video wherein Kevin Plank expresses its enthusiastic goal of reaching a global brand, this is a unique experience that Under Armour proposes to its targeted group on the new market (Greenberg, 2013). The running shoes are promoted also within this experience, by casting the team running outdoors (Greenberg, 2013).
Looking at Asics advertising strategy, this brand also uses an international approach, indicating its usability on all markets, including on the African hot fields, wherein humans permanently face the wild animals’ attacks (YouTube, “Asics Running Commercial”). Rather than emphasizing technology or endorsing celebrities, Asics advertising strategy engages the consumers through a fun approach, making fun of deadly serious situations, such as being chased by a lion (YouTube, “Asics Running Commercial”). Therefore, while Under Armour used technology and consumer comfort as its main values for brand positioning, Asics used humor and the message that Asics makes man faster than another man who does not wear Asics. The message is the same, but the approach is different. Asics too is committed to designing shoes that fit, personalizing them on the needs of their customers, starting with identifying the needs of the renowned athletes who chose Asics (Asics official website). Hence, celebrity endorsement is an advertising strategy that Asics also uses, although Kavander (2012) observes that Asics was unable to use athlete sponsorship as a promotional strategy. Other advertising strategies used by Asics include in-store advertising, a dedicated Amazon page, store variety, increased street presence and increased athletic stores presence (Papandreas & Sachdev, n.d.). The company uses public relations strategies, such as sponsoring high school with footwear, mobile applications for connecting to runner’s club, exhibitions and trade shows for demonstrating the products and presenting the technology (Papandreas & Sachdev, n.d.).
In terms of promotional strategies used for engaging the consumers, Asics connects its clients and potential clients to the Running Club, by triggering their attention within in-store environment, making them curious and interested to join, by explaining the technical benefits and the social benefits of being part of a fun, familiar community; it generates the desire for consumers to join, by promoting the brand’s features as new trends and by facilitating this possibility for the Asics members through including it in the loyalty program; it determines the consumers to buy the Asics product, to adhere to the loyalty program and join the runners club (Papandreas & Sachdev, n.d.). With its footwear line, Asics targets professional athletes, or experienced runners, engaging them with the incorporated technology and care for the feet health and comfort, proposing prices starting with 100 euro, being considered the most expensive shoe running brand (Kavander, 2012).
Under Armour, on the other hand, is more generalist, providing technology incorporated footwear for all types of runners, proposing them customized shoes for their running needs, virtually, on its website, for prices that qualify in the average running shoes price scale (Boone & Kurtz, 2011). Because it is very new on the running shoes market, as it entered this market in 2009, Under Armour only owns 2,8% of the running shoes market, but its sales doubled from one year to another (Korman, 2013), as a result of its marketing strategy, of associating its footwear with comfort, moisture-wicking fabrics (Boone & Kurtz, 2011).
Enjoying the advantage of global operation and global awareness, being positioned as a premium brand, targeting, hence, a niche market (Nike, Inc. 2009), Nike, the leader of the running shoes market emerged into a mainstream brand. This occurred because people around the world wanted to benefit of the premium footwear experience that Nike delivered and of the idea of being cool that Nike conveyed specifically by associating with famous sportsmen (Whitlock & Doyle, n.d.). Its advertising and promotional strategies include celebrity endorsement, celebrity sponsorship, focus on technology, innovation, quality and a permanent concern for fashion and consumer trends (Nike, Inc. 2009). In addition, Nike’s promotional strategy also comprises sponsoring high school events or professional competitions, for different sports, for maintaining its leading position (Whitlock & Doyle, n.d.).
Looking at these assets that contributed to making Nike the number 1 brand of the running shoes market, there are several recommendations that would be useful for Asics to differentiate itself in this marketplace and to gain advantage over its competition. First of all, Asics needs to better engage the consumers, by positioning its running footwear as something trendy, a must-have, directly targeting the premium customers, while silently and indirectly extending its targeted market towards the mainstream segment. Diversifying and segmenting its targeted market by appealing also to users other than professional athletes would contribute to enhancing Asics competitive advantage in its market. Nike is the number 1 in the sports apparel market not just because it followed trends, but mostly because it set trends. While Under Armour has its own effective advertising mix strategy for placing itself as a cool, in-style brand, Asics needs to differentiate itself by finding its uniqueness and developing it into trendy, must-have, fashionable sports items. This strategy is required because studies indicate that consumers are likely to spend more on a product that is considered fashionable and cool (Whitlock & Doyle, n.d.).
For increasing its short-term and long-term sales and consumer interest in running footwear, Asics could implement consumer – oriented sales promotion, merging purchase building sales (meant to generate short-term sales increase) with brand building sales promotions (intended to build long-term brand loyalty and brand value) (Kaser, 2012).
In terms of pricing strategy, companies apply four pricing objectives for making their pricing decisions. Sahaf (2008) presents the four pricing objectives, as theorized by Schoell and Guiltinan:
(1) Profitability-oriented: achieving profit maximization, target return;
(2) Volume – oriented objectives: maximizing sales revenues, market share and customer volume;
(3) Image-oriented objective: enhancing and maintaining an image;
(4) Stabilization objective: focusing on keeping stable prices.
Capitalizing on Nike’s experience and effective pricing strategy, Asics should also use price segmentation for its running footwear, basing its pricing decision on volume profitability oriented objectives. As such, because of its global presence, the company has the potential to maximize its consumer volume, increasing its market share, hence, its profits, but it needs to engage its consumers through more effective loyalty programs. While continuing to maintain the image of a reliable, innovative and trendy global brand, Asics should be price sensitive, slightly customizing its costs on various markets, and maintaining them stable. Hence, while establishing its overseas marketing mix, Asics should apply an adaptation strategy for the pricing component of the marketing mix, in addition to an adapted promotional strategy for achieving brand awareness on different international markets.
For Under Armour, the recommended pricing strategy is first related with boosting the volume oriented objective, which is directly correlated with increasing the brand’s overseas presence, which currently represents a major handicap for this company. More Under Armour stores, located in more countries would quantify in increased market share and increased profits. The company has a solid image, as an innovative new entry player that mostly values the sportsmen’s comfort. This image gained high popularity in a short time, which also generated its market differentiation, as a new sport brand, focused on comfort in addition to innovation. This market differentiation should be translated into a price differentiation, whereas the company could use a blue ocean strategy for reducing the costs while maximizing the technological and qualitative value of its running footwear (Kim & Mauborgne, 2009), which would bring the company competitive advantage.
Because Asics has difficulties in effectively engaging its consumers for the running footwear product category, a recommendation to increase its consumer loyalty and maximize its brand awareness would be to optimize the direct human experience advertising medium. Rather than solely focusing on professional athletes, the company should start sponsoring more college events, create and sponsor marathons and it should effectively translate the qualities of its running shoes to normal consumers, by allowing them to try them on, within shopping-center environment, near its stores. Another effective advertising medium recommended for Asics refers to direct emailing and direct mailing, offering consumers customized sales offers and discounts and other loyalty benefits.
Nike uses human experience for maintaining its brand awareness and popularity among its consumers, continuously increasing its market share by gaining new consumers, while advertising in various college or other kinds of events. Under Armour also uses the direct human experience for engaging its existing and potential consumers, by providing them various in-store experiences, such as 360-degrees theater experience mentioned earlier.
Regarding the effectiveness of direct emailing and mailing campaigns as advertising medium, Hasoumeh and Alqued (2010) find a direct relation between the email direct marketing campaigns and the development of a brand-consumer relationship, manifested in monetary transactions that reflect the quality of the loyalty programs.
Asics and other brands from the running footwear market category should implement an integrated advertising and promotional mix, customizing various advertising mediums and promotional campaigns to their needs, not the other way around. Like this, companies optimize the qualities of their products by promoting their differentiating values to their targeted consumers, while aiming to create, develop and strengthen a relationship with their customers.
References
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