Under Armour’s pivot to growth (with Stephanie Linnartz) | Masters of Scale

TL;DR

Under Armour pivots to growth with new strategies and leadership.

Transcript

• The competitive landscape in sports apparel and footwear is quite complex. It's not just Nike and Adidas. There's lots of other smaller players that are growing rapidly. You know, there's the Lulus and the Hokas, et cetera. You're gonna see Under Armour leaning more into sport style and shoes. You think about what gives a brand cultural currency.... Read More

Key Insights

• Under Armour is pivoting back to growth by focusing on sports style, footwear, and women’s apparel, leveraging cultural influencers and athletes.
• Stephanie Linnartz, the first female CEO of a major sportswear company, brings her experience from Marriott to enhance Under Armour's brand strategy.
• The company is leaning into sports style and expanding its footwear line, aiming to increase cultural currency and brand heat.
• John Varvatos joins as Chief Design Officer to help Under Armour stretch into sports style while maintaining performance authenticity.
• Under Armour aims to improve customer loyalty through its newly launched UA Rewards program, inspired by Marriott Bonvoy.
• The brand is focusing on better product segmentation, ensuring premium products are sold in specific channels for brand consistency.
• Stephanie emphasizes the importance of a multi-tiered marketing approach, utilizing both high-profile athletes and social influencers.
• The leadership team at Under Armour is diverse, with half being women, reflecting a broader focus on gender inclusion and representation.

Questions & Answers

Q: What is Under Armour's new growth strategy?

Under Armour's new growth strategy involves leaning into sports style, expanding its footwear line, and focusing on women's apparel. The company is also leveraging cultural influencers and athletes to increase brand heat and cultural currency, aiming to capture untapped market opportunities.

Q: How is Stephanie Linnartz's experience at Marriott influencing her role at Under Armour?

Stephanie Linnartz's experience at Marriott is influencing her role at Under Armour by applying lessons in product segmentation, customer loyalty, and brand strategy. Her background in hospitality emphasizes the importance of customer experience and emotional connection, which she is integrating into Under Armour's retail and online presence.

Q: Why did Under Armour hire John Varvatos as Chief Design Officer?

Under Armour hired John Varvatos as Chief Design Officer to help the brand stretch into sports style while maintaining its performance authenticity. His expertise in design is expected to aid Under Armour in creating more fashionable and culturally relevant products, particularly in the footwear and apparel segments.

Q: What role do cultural influencers play in Under Armour's marketing strategy?

Cultural influencers play a significant role in Under Armour's marketing strategy by helping to tell the brand's story and drive sales. The company uses a multi-tiered approach, incorporating both high-profile athletes and social influencers to reach a broader audience and build brand loyalty.

Q: How is Under Armour addressing the women's market?

Under Armour is addressing the women's market by focusing on expanding its women's apparel line and improving product offerings. Stephanie Linnartz personally tried on every item of women's clothing to understand the fit and feel, aiming to enhance the brand's appeal to female consumers and athletes.

Q: What is the significance of the UA Rewards program?

The UA Rewards program is significant as it aims to enhance customer loyalty and engagement, similar to the Marriott Bonvoy program. It offers points for merchandise and exclusive experiences, like spending time with athletes, to create an emotional connection with consumers and encourage brand loyalty.

Q: How does Under Armour plan to differentiate itself in the competitive sportswear market?

Under Armour plans to differentiate itself in the competitive sportswear market by focusing on authentic performance products, expanding into sports style, and increasing its presence in the footwear market. The brand aims to leverage its unique athlete partnerships and cultural influencers to build brand heat and expand its market share.

Q: What challenges does Under Armour face in its pivot to growth?

Under Armour faces challenges such as navigating a complex competitive landscape with giants like Nike and Adidas, as well as emerging brands. The company must balance maintaining performance authenticity with expanding into sports style and footwear, while also managing investor expectations for short-term results.

Summary & Key Takeaways

• Under Armour, under the leadership of Stephanie Linnartz, is shifting its focus towards growth by enhancing its sports style and footwear offerings. The company aims to leverage cultural influencers and athletes to build brand heat and cultural currency.

• Stephanie Linnartz, bringing her 25 years of experience from Marriott, is implementing strategies such as better product segmentation and customer loyalty programs to pivot Under Armour back to growth. Her approach includes focusing on women’s apparel and sports style.

• Under Armour is expanding its footwear line and sports style offerings, with John Varvatos joining as Chief Design Officer. The company is also launching UA Rewards to enhance customer loyalty, drawing inspiration from successful programs like Marriott Bonvoy.