3. The distribution channel differences between the two brands.

After the analyzing the distribution channels between Nike and Under Armour, both have unique styles of distributions. Nike’s distribution is centered on its products through three major channels. The first channel is by selling products to wholesalers in the United States and international markets. Sales to wholesalers has the largest profit gain in the Nike distribution channel. Selling to wholesalers accounts for more than 80% of the sales in the past two fiscal years. The second channel is by direct-to-consumer sales, which includes online sales and factory retail outlets. This style of distribution has grown 16% to 20% over the past two fiscal years. It has been the fast growing style of distribution for Nike. Nike is has been focusing on its direct selling to the consumer with its DTC initiative. The third style of distribution is the sales to global brand divisions. Compared to Under Armour, Nike has a much larger international revenue. Since 2009, Nike profits have increased every year. Key component to this style of distribution, has been their profits in China and emerging markets. Under Armour is also based on three styles of distribution. The style of distribution is the expansion of in the number of whole doors, which would include the shop in shop partnerships. This would their primary channel for their company in the United States This accounts for more than 65% of their company’s total sales this past year. The second distribution channel for Under Armour is the multiple stores opening within the United States and overseas. Under Armour has been pushing strongly to pursuing expansions, which lead to a rapid growth with the company. Finally, has also experienced growth from their Connected Fitness platform. Under Armour gained positive revenues in both category and channel, company-wide. Overall both companies have continued to grow over the past decade, but Under Armour has excelled in growth. This is mainly due to their aggressive style of marketing, and their willingness to expand rapidly. On the other hand Nike has a strong foundation within the market, and will continue to dominate the retail world.  

 

2.what has led to Under Armour recently overtaking Adidas to become #2 in the US

Nike has dominated the retail world by earning a total sales of 11.6 billion this past year, but there was change in the hierarchy of the sports apparel world. This past year Under Armour surpassed Adidas in combined sales, and jumped to number two in the retail world. Adidas suffered a 30% drop in footwear and apparel sales during 2015 fiscal year. Under Armour on the other hand saw a drastic 17% growth in apparel and 34% growth in footwear. Under Armour’s success starts with their CEO Kevin Plank, who developed a marketing strategy similar to its counter foe Nike. Under Armour has targeted superstar athletes as marketing to tools to promote their products. Recently Under Armour signed Jordan Spieth, who is one the top golf performers in the world. They also were also able to sign an emerging NBA superstar Stephen Curry, by out bidding Nike. Recently it was discovered that during the course of its interviews with Stephen Curry, Nike repeatedly misspoke “Stephen Curry’s” name. Which was huge deciding factor on Curry’s decision to sign with Under Amour.  

Under Armour has been successful at obtaining a higher purpose at its core. Under Armour has labeled itself as the underdog, up against the heavy weight champion of the world (Nike). They developed the slogan “I Will” to really sell that idea. The “I Will” Slogan is essentially taking a jab at Nike’s “Just Do It” slogan. Under Armour has brought a whole new style of innovation into the apparel world. This innovation started in the mid-1990’s when their CEO Kevin Plank played football at the University of Maryland. Mr.Plank developed the “wick and dry” t-shirt concept. This material allowed performers to stay comforted while playing the game they love. Since then, Under Armour’s stock market has increased by 75 percent. Even their style of marketing has been innovative over the past decade.  The “I Will” slogan was a huge strategic move in the retail industry. This message set the tone of how Under Armour wanted to create its brand culture, and how it wanted people to view the Under Armour brand. Finally, Under Armour has been successful in expanding its company. Recently Under Armour’s women lines have shown great improvement. Under Armour was given the marketer of the year award, for its “I Will Want Campaign”. This genius campaign was directed towards women, stating that they shouldn’t worry about what others think of them. This strategy is meant to reach a whole new breed of consumers. Under Armour now needs to focus on expanding internationally. A majority of Under Armour’s profits come from within the United States. For Under Armour to become the top dog, they to take the next step and become an international powerhouse. Personally I do not have much experience with Under Armour, because I have been committed to Nike.  With this being said, I have little opinion on Under Armour apparel.

1.The Story of Nike

The documentary video about Nike from 2008 by CNBC called "Inside the Swoosh” told the story of how small idea became the Empire known as Nike. This video presented an unprecedented look inside Nike's $16 billion empire, The Visionaries of Nike, The Elite Athletes, and most importantly The Shoes. Nike marketing strategy is developed around one the most well known slogans in the world “Just Do It”. The “Just Do It” slogan has stood tall throughout the life of Nike. This slogan has become of the most well-known phrases in the world. The key concept to Nike’s marketing strategy is simple, they obtain the best athletes in the world to market their brand for them.

 Their biggest strategy move in their history was when they signed young NBA rookie to half million dollar contract. Nike also promised this rookie his very own shoe contract. The name of this rookie was Michael Jordan, and he would eventually go down as the greatest basketball player to ever play the game. From a business aspect, Nike developed Michael Jordan’s which was named “Jordan”. In 2007 the popular Jordan had a gross profit of $800 million, this was $100 million less than the entire company made 23 years earlier. Even more wide opening statistic is that Jordan products have doubled in profit since Michael Jordan’s retirement in the early 2000’s. The Jordan exploded, the shoes were then worn by R&B and Boyz II Men as the music awards in 2008. Everyone wanted to be a part of the Jordan Brand. Nike then wanted to penetrate the skate boarding market by using the same marketing strategy they did with Jordan. Nike would continue this trend of paying famous athletes to market their product for them. This list includes Lebron James, Chris Paul, Tiger Woods, Carmelo Anthony, and many more.  

Nike approached the skate boarding market, the same way they approached the basketball market. Nike went on to sign a young skater by the name Paul Rodriguez to promote their product. Unlike the success that Nike achieved in the basketball world, they struggled to find the same success in skate boarding market. Many of the experienced skate boarders were against Nike entering the skate boarding market. The skating world pushed hard to make the younger generation of Nike entering this market. They even developed their own slogan “Don’t Do It”. They believed that Nike would bankrupt the small skating boarding companies that were developed specifically for skater. Eventually the Nike empire broke through by redesigning their own shoe brand, and having their well skaters market them for Nike. In my eyes, not everything that did to become an empire was on completely ethical. From trying to bankrupt small skating boarding companies to allowing child labor in poor countries. Though these aren't completely ethical situations, Nike has has been good as accepting the the ownership of their flaws, and has been good about correcting these issues. 

 Nike has become one most using effective marketing strategies to the masses. For as long as I have been lived, Nike has dominated the other appeal brands. I have always bought Nikes brands and will continue to buy them. This is because I feel Nike has the best quality when it comes to apparel wear.  The “Just Do It” campaign has only become more popular, and now it seems that this campaign is everywhere. Nike recently has taken over the football world by having contracts with over 90% of college teams in the United States, and recently owning every NFL teams appeal. Even with all this happing in the United States, most of the Nike’s profit comes from overseas. It’s simple, Nike has become the most popular appeal company in the world, by using effective marketing.

 

Different Style of Demand

Kellogg promotes “lose a size in two weeks” to make people more attracted to their Special K Diet program.

PlayStation promotes that its gaming system is better than Xbox’s gaming system. They compare the two in hopes people will switch.

When the WII developed different features for their gaming system, so that more people would be inclined to try their product. 

Presentation Day

The first presentation I attended was about UAE and Dubai which was conducted by Sheldon Miller. Sheldon collected data from visiting these countries and experiencing their life styles first hand. He tested this information with hours of research and numerous contacts who have lived in the Middle East for the past decade. This presentation was about UAE’s life style and how was similar to the United States life style. The Information that I found useful was how modernize these cities where and how much they enjoyed Americans. With the media only covering the horrible events in the Middle East, they have left a bad image in the American mind. The Second presentation that I attended was about children and disabilities which was conducted by Paige Atterholt. This presentation was about the struggles an individual endure while attending school, and the obstacles that he has to overcome. Paige conducted her research by observing her student, and taking notes. She compared her student’s progress at his first and the school the individual is attending currently. She noted that he has increased little throughout his time at the new school. Recently the mother pulled her child from the program and placed him into the old school. This presentation Paige marketed the benefits of her schools program, and the advances they have made in helping children with disabilities.  

Super Bowl 50 AD's

My favorite commercial from Super Bowl 50 was the Audi R8 big game commercial. This powerful ad told the story of old man and his younger astronaut self. The beginning of the ad showed the shell of a once accomplished astronaut and his past achievements. As the man entered the Audi, it immediately took him back to the time he was an astronaut.  This commercial was effective, because it brought an emotional side to the story it was telling, and developed an image of what the experience should feel like when driving that car. The least effective commercial in Super Bowl was the Kickstart “Puppy Monkey Baby” commercial. This commercial from the start was confusing and was completely random. I felt they were trying way to hard to be funny and just blew up in their Mountain Dew's face. This commercial was probably the worst commercial in the Super Bowl history.              

https://youtu.be/u-7l3f43sbY

Marketing is a strategic communication method aimed towards the massive amounts of consumers. Every year the Doritos holds a competition for anyone to make commercial for the Superbowl. These commercials are always in the five most enjoyed commercial, which are voted on by the masses. After viewing the three finalist commercials, I voted for “Ultrasound” and “Swipe for Doritos”.  Both of these commercials brought humor into their plot scene, which is why is I was attracted to these commercials originally. The more I watched these commercials the more I enjoyed them. The commercial that I enjoyed the though was “Swipe for Doritos”. Though I found this commercial equally as humorous as “Ultrasound”, this commercial brought in everyday aspect that the others didn’t provide. Bringing in the concept of Tinder into their commercial was creativity in that it allowed everyone to relate to the commercial. This commercial was made great when Betty White came in as a special guest. The Betty White factor can make any commercial that much stronger, and can make a wide range targeting age.