Under Armour 2007 Annual Report Download - page 14

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Please find page 14 of the 2007 Under Armour annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Our signature “Protect this House” and “Click-Clack” television campaigns feature several NFL players.
These campaigns run in a variety of lengths and formats, and our “Protect this House” campaign is used in
several NFL and collegiate stadiums during games as a crowd prompt. During 2007, we executed a major
campaign called “BoomBoom-TAP,” which targeted the “team girl” demographic in an effort to establish Under
Armour as the authentic athletic brand for female athletes who play team sports. Additionally, we have
developed co-branded commercials with retail partner Dick’s Sporting Goods to promote Under Armour around
the holiday season. Our ability to secure product placement in movies, television shows and video games has
allowed us to reinforce our authenticity as well as establish our brand with broader audiences who may not have
been previously exposed to our advertising and brand efforts.
At the end of 2007, we launched the “teaser” phase of an integrated brand campaign that represents our
entry into the non-cleated footwear business by way of Under Armour performance training footwear. This
campaign carries the tagline “The New Prototype,” which speaks to athletes who train to compete at a higher
level than the competition. We aired a 60-second “The New Prototype” commercial during the Super Bowl XLII
in February 2008 to launch the year-long brand campaign to market our footwear products and introduce our
brand and other products to additional consumers.
Retail Development and Product Presentation
The primary component of our retail brand strategy is to increase and brand the floor space dedicated to our
products. The design and funding of Under Armour concept shops within our major retail accounts is a key
initiative for securing prime floor space, educating the consumer and creating an exciting environment for the
consumer to experience our brand. Under Armour concept shops enhance our brand’s presentation within our
major retail accounts with a shop-in-shop approach, using dedicated floor space exclusively for our products,
including flooring, lighting, walls, displays and images. During 2007, we reshaped or added over 250,000 square
feet of space dedicated to our products within our major retail accounts.
Across our many retailers, we also use in-store fixtures and displays that highlight our logo and have a
performance-oriented, athletic look. We provide retailers with what we believe are exciting and unique brand-
building fixtures, such as our “Big E” mannequin, a life size mold of Eric Ogbogu, a 6’4”, 275 pound former
NFL defensive end, a current employee and a featured athlete in many of our brand campaigns. To target women
consumers, we use a complementary mannequin, the UA WOMAN, modeled after the star of our early women’s
brand campaign, Heather Mitts. These displays provide an easily identifiable place for consumers to look for our
products and are intended to reinforce the message that our brand is distinct from our competitors.
We work with our retailers to establish optimal placement for our products and to have the brand
represented in the many departments of a traditional large national or regional chain. The fixtures and displays
enable us to achieve placement of our products throughout stores by providing retailers with outposts to use in
various store sections.
Customers
Our products are offered in approximately 15,000 retail stores worldwide, of which over 11,000 retail stores
are in North America. We also sell our products directly to consumers through our own retail stores, website and
toll-free call center. We rely on our distribution facilities in Glen Burnie, Maryland for substantially all of our
product distribution for North America. In addition, we distribute our products in Europe through a third-party
logistics provider based out of Tilburg, The Netherlands.
Wholesale Distribution
In 2007, approximately 84% of our net revenues were derived from wholesale distribution. Our principal
customers include national and regional retail chains such as, in alphabetical order, Academy, Ltd., Dick’s
Sporting Goods, Hibbett Sporting Goods, Modell’s Sporting Goods, and The Sports Authority; hunting and
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