Assignment3BUS08 Promotional And Advertising Strategy Of Nike Under Armour

Topics: Swimsuit, Swimsuits, Bikini Pages: 13 (2410 words) Published: March 19, 2015
Assignment 3: Promotional and Advertising Strategies

1) Providing information
This paper is my BUS 508 assignment which chosen topic of sports apparel, comparing between Under Armour’s and Nike’s swimwear for adult case. The raw material will be shown in table 1 and 2 in appendix. All information is provided from their own website of Under Armour and Nike. Why does it have to be website? Website is the market place that millions customers can go shopping at the same time. This way might save cost and time for both customers and company. Customers do not need to drive a car for buying one piece of swimwear. It wastes their fuel and time for nothing. In the same way for company which can handle millions customers without big store and thousands employees. It is possible for web store only. The cost and the result are too far different. So, I pick up this interesting one to show how they work. Let’s begin with overall information from the raw information in table 1 and 2. As you see that Under Armour’s swimwear for women has 14 products with $15.99 - $37.99 price range and 10 products with $24.99 - $59.99 price range for men’s. The shown information and 3D image in Nike’s web store (http://store.nike.com) is impressive but the price is more expensive than Under Armour’s about 2.75 times for the lowest product. Nike’s swimwear for women has 11 products with $44 - $84 price range and 10 products with $40 - $136 price range for men’s. To sum it up, men swimwear for both companies is similar. Almost women swimwear of Under Armour are bikini while Nike’s go for swimsuit. The price of Nike’s is far higher than Under Armour’s.

2) Comparing promotional strategies
First thing first, we are currently in summer which customer demand for swimwear will be increased automatically. But the information that mention above has raised the question “Do they have the same target customers?” Before we go for this question, let’s see how they use promotion for their products. Under Armour, Inc. is an American sports clothing and accessories company. The company is a supplier of sportswear and casual apparel. Under Armour was founded in 1996 by Kevin Plank. For promotion, of internet marketing, they give away coupons for some of their products in coupons.com and retailmenot.com. The related promotions for swimwear from coupons.com are based on shipping; (1) Free Shipping On Orders Over $45, (2) Free Shipping on Your Next Order with UA Email Sign Up, and (3) Free 2-Day Shipping on $150+. The retailmenot.com offer the similar promotions; (1) UA Outlet + Free Shipping On $35+, (2) Free shipping on $35+, (3) New Arrivals + Free Shipping On $35+, (4) Free 2-Day Shipping On Orders Of $149+, and (5) 10% Off For Service Members & First Responders. Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. Their promotion was the same way as Under Armour’s. The coupons.com offer these promotions; (1) Save Up to 50% Off Clearance Items, (2) Free Shipping on $75+, and (3) Free Returns and Exchanges. The retailmenot.com offers the same promotions as coupons.com. In short, Under Armour offers free shipping on $35+ and faster shipping on $150+ while Nike offers free shipping on $75+, free return and exchanges and sale up to 50% for clearance items. Analyzing from these promotions, Under Armour has no intention to discount their price which is already acceptable. So, they go for free and fast shipping promotion alone. The Nike’s promotion seems showing us their customers’ behavior which might return or exchange. Sale up to 50% off promotion state that there are a lot of items unsold. Though the customers might expect a good quality for Nike’s high price but some...

References: Frank Bradley. (2003). Strategic Marketing In the Customer Driven Organization. West Sussex, UK: John Wiley & Sons Ltd.
Geoff Lancaster and Lester Massingham. (2011). Essentials of Marketing Management. New York, NY: Routledge.
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The Association of Business Executives. (2008). Strategic Marketing Management. Maiden, UK: The Association of Business Executives.
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