Under Armour 2015 Annual Report Download - page 11

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Sports Marketing
Our marketing and promotion strategy begins with providing and selling our products to high-performing
athletes and teams on the high school, collegiate and professional levels. We execute this strategy through
outfitting agreements, professional and collegiate sponsorships, individual athlete agreements and by providing
and selling our products directly to team equipment managers and to individual athletes. As a result, our products
are seen on the field, giving them exposure to various consumer audiences through the internet, television,
magazines and live at sporting events. This exposure to consumers helps us establish on-field authenticity as
consumers can see our products being worn by high-performing athletes.
We are the official outfitter of athletic teams in several high-profile collegiate conferences. We are an
official supplier of footwear and gloves to the National Football League (“NFL”). We are the Official
Performance Footwear Supplier of Major League Baseball and a partner with the National Basketball
Association (“NBA”) which allows us to market our NBA athletes in game uniforms in connection with our
basketball footwear. We are the official combine scouting partner to the NFL and NBA with the right to sell
combine training apparel. Internationally, we sponsor and sell our products to several European and Latin
American soccer and rugby teams, which helps drive brand awareness in various countries and regions around
the world.
We also seek to sponsor events to drive awareness and brand authenticity from a grassroots level. We host
combines, camps and clinics for athletes in many sports at regional sites across the country. These events, along
with the products we make, are designed to help young athletes improve their training methods and their overall
performance. We are also the title sponsor of a collection of high school All-America Games that create
significant on-field product and brand exposure that contributes to our on-field authenticity.
Media
We feature our products in a variety of national digital, broadcast, and print media outlets. We also utilize
social and mobile media to engage consumers and promote conversation around our brand and our products.
Retail Presentation
The primary component of our retail marketing strategy is to increase and brand floor space dedicated to our
products within our major retail accounts. The design and funding of Under Armour concept shops within our
major retail accounts has been 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.
Sales and Distribution
The majority of our sales are generated through wholesale channels, which include national and regional
sporting goods chains, independent and specialty retailers, department store chains, institutional athletic
departments and leagues and teams. In addition, we sell our products to independent distributors in various
countries where we generally do not have direct sales operations and through licensees.
We also sell our products directly to consumers through our own network of brand and factory house stores
in our North America, Europe, the Middle East and Africa (“EMEA”), Latin America and Asia-Pacific operating
segments, and through websites globally. These factory house stores serve an important role in our overall
inventory management by allowing us to sell a significant portion of excess, discontinued and out-of-season
products while maintaining the pricing integrity of our brand in our other distribution channels. Through our
brand house stores, consumers experience our brand first-hand and have broader access to our performance
products. In 2015, sales through our wholesale, direct to consumer, licensing and Connected Fitness channels
represented 67%, 30%, 2% and 1% of net revenues, respectively.
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