However, this did not deter Under Armour as they entered the market with a totally different product. They were the first to manufacture performance apparel using synthetic fiber. The oligopolistic nature of their business gave them a greater competitive edge and an opportunity to penetrate the market. The company exists in strategic groups that are based on powerful brand identity, product performance, word of mouth endorsement and simple merchandising story. They have accomplished this by developing a quality brand of sports apparel that is well-known.
So as a group, the customers of Lululemon have a high level of bargaining power. This is why it is so crucial for Lululemon to create and build relationships with customers in order to make them customers for life. There is a large variety of sports apparel brands making the buying power of consumers high. With a variety of sports apparel brands the difference between their products might not be that different after all. This makes it very important for Columbia has to create brand loyalty within their customers.
Caja Rolu will rely heavily on personal selling in the beginning of our journey. Through our personal selling we will not only sell the product but sell our company as a service. We will utilize that we provide exceptional customer service and technical support. Due to the use of our personal selling Caja Rolu must adopt a push strategy. The push strategy is another key to success because it will allow our product to be sold through many different distribution channels.
Their strong brand ethos as demonstrated by their customer service, positive store ambiance and brand image have allowed them to capitalize on both the niche of athleisure clothing and the entire athletic wear industry. One thing that all companies can learn from this report is the importance of marketing to their profits. As indicated by the research on the topic, there is a direct correlation between spending on marketing and profits. This is a clear indication that companies need to spend more time marketing their product as the non-price factors of a business are just as important to their bottom line as the
2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.
The SWOT analysis reveals that the major factors that influence the sustainability of the company are related to price, supplier sustainability, economic factors, and awareness. Since the company has continued to experience growth and the brand loyalty is strong even when faced with increasing entrants, Lululemon is attractive overall. However, there are some opportunities that Lululemon should consider exploring to help ensure that sales do not begin to decline and prevent the competition from gaining market share. Also, threats can become opportunities (shift to American manufacturers) and opportunities can become threats (technology use by large athletic apparel companies could benefit others and hurt Lululemon). 1.
These tools mostly used for spreading the awarenes of the new products, enhancing the recall of the brand but mostly for increasing the number of sales as the company needs profits to survive in the long term. The report have deeply looked at the communication tools in practice when the creative strategy for the new Cadbury product was set. The paper analysed in what situation it is better to use advertising, PR or direct marketing for the Cadbury brand, therefore the advantages and disadvantages of the tools were found. For example, it has been identified that advertising is one of the useful tool for brand promotion because it is able to reach a wider audience within the shortest possible time frame (Egan, 2007. P 194).
Regarding product uniqueness, it has been aforementioned the huge investment done by the company in order to be always updated and with the capability of launching the latest technology on the market. On the other hand, the company targets a narrow market segment mainly due to the fact that many Oakley products are technical and specific for advanced athletes or users, for instance the cycling glasses, whose technology can be considered as the most advance in the market and a clear example of that is the fact that a huge percentage of the procycling athletes in the French Tour and the Italian Giro using Oakley’s eyewear. Usually, the companies using a focus differentiation strategy enjoy a high degree of customer
Under Armour is diversifying by selling new products to existing customers. It just recently started selling football cleats, which was a huge opportunity for the company and it also turned out to be very successful so far. The company also is focusing on direct-to-consumer categories: online sales and outlet and specialty stores, which are expected to represent nearly a third of Under Armour's distribution channels by 2013, and in international markets, with new store openings planned this year in China. Under Armour is also trying to expand by introducing more products for women. There have been various new advertisements featuring women with the slogan, "No matter what, sweat every day."
It’s unreasonable to think that every company that has a marketing department will gain fantastic benefits and return. There are many prerequisites for the success of a marketing strategy and it often requires intensive resource investment and development of specific competences inside the organization. Furthermore, companies needs to carefully examine a set of different external and internal factors, find a reliable way to understand its current and potential customers needs and desires and be persistent in following their long-term strategic