Under Armour's Market Entry Strategy for Mexico: A Marketing Report

This report provides a comprehensive marketing plan for Under Armour's expansion into the Mexican market. It begins with an overview of Under Armour, its strengths, weaknesses, and the application of the SOSTAC framework for strategic planning. The report analyzes the political, economic, social, and technological factors influencing the Mexican market, followed by an examination of marketing communication strategies, including Porter's Generic Model, market entry strategies, pricing strategies, and STP (Segmentation, Targeting, and Positioning). The tactics section focuses on product and pricing strategies, while the data section analyzes how the organization can penetrate into the Mexican markets. The conclusion summarizes the key findings and recommendations for Under Armour's successful market entry into Mexico. The report uses the SOSTAC framework to analyze the current situation, define objectives, develop strategies, outline tactics, and establish action plans and controls, offering a detailed roadmap for market penetration.

PRINCIPLES AND
PRACTICES OF
MARKETING

TABLE OF CONTENTS
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 INTRODUCTION
 OVERVIEW
 MARKET RESEARCH
 MARKETING COMMUNICATION
 DATA
 CONCLUSION
 REFERENCE

INTRODUCTION
Marketing principles are marketing ideas that businesses utilise to
develop a successful marketing plan. They are the guiding concepts that
companies use to develop product promotion tactics. Marketing principles
may be used to effectively promote either commodities or services. Under
Armour is taken as base company. Under Armour is a sports clothing and
footwear manufacturer based in the United States. The organisation is
planning to expand its operations into Mexico.
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UNDER ARMOUR
GROUP NAME:
ROLE:
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SLOGAN: The Only Way Is Through.

OVERVIEW
The presentation will use the SOSTAC framework to illustrate how Under Armour
can plan to enter into Mexico with the help of SOSTAC framework. It include 3 tasks which is
performed by 3 different consultants.
In all 3 tasks, SOSTAC is being elaborated which will state the situational analysis
of the country, objectives, strategy, tactics, action and control.
In 2020, the organization's revenue for the quarter ending March 31, 2021 was
$1.257B, a 35.15% increase year-over-year. The current operating profit margin for Under
Armour as of March 31, 2021 is 2.21%.
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The strength of the firm is that, it has diverse distribution channels, portfolio, and
exceptional quality clothing where as the high pricing of item is the weakness of them. The
organisation can target market easily to expand in to include a kid’s range which is an opportunity
to them whereas COVID 19 affected their operation severely, represents threats to the firm.
Under Armour revenue for the quarter ending March 31, 2021 was $1.257 billion,
a 35.15% increase year over year whereas for the twelve months ending March 31, 2021
was $4.802 billion, a 3.83% decline.
Due to pandemic, the operations of the organisation went shutdown as no person was
allowed to step out of their houses. This leads in decreasing in the operating income which went
to $-613.438 million with net income of $-549.177million.
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MARKET RESEARCH
POLITICAL FACTORS: Mexico is a regional powerhouse with a strong
worldwide reach and corruption is a major issue in Mexico.
ECONOMICAL FACTORS: Mexico is extremely open to foreign direct
investment
SOCIAL FACTORS: Because of poverty and other societal issues, many
Mexicans put their lives at risk to enter the border into the United States in hopes of a better
quality of life.
TECHNOLOGICAL FACTORS: Nation's eagerness to eliminate restrictions and
uncertainty around cryptocurrency and crowd funding technology
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OBJECTIVE:
The objective is to make a plan such that the selected organisation can
enter into the markets of Mexico using SOSTAC framework. This will assists the
organisation in making strategies and to penetrate into Mexican markets. Along with
this, it also involves the mode of entry and the actions needed to be taken.
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MARKET RESEARCH (cont..)

MARKETING COMMUNICATION
PORTER’S GENERIC MODEL: This framework depicts how businesses can gain a competitive
advantage by implementing the appropriate strategies. The framework is organised around three
primary strategies: cost leadership, differentiation and focus.
MARKET ENTRY STRATEGY: Market entry strategy relates to the development, establishment, and
administration of agreements in a foreign nation, as well as the intended distribution and delivery
method of goods or services to a new target market.
PRICING STRATEGY: They are the procedures and methodologies that organisations use to determine
the prices for their goods and services such as penetrating pricing, competitive pricing and skimming
pricing.
STP: Segmentation, targeting and positioning
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TACTICS
PRODUCT: Under Armour is a major sports clothing and equipment manufacturer with a
global client base. Under Armour focuses on items for all age groups, with product categories for Men,
Women, and Children ranging from newborns to children over the age of eight. As part of their marketing
mix, Under Armour also makes shoes for particular sports and activities such as running, training,
basketball and so on. Fitness gadgets, backpacks and bags and all other sports equipment are all available
from the firm.
PRICE: Due to its superior quality, Under Armour adopts a value-based pricing approach for
its goods. Armour's primary target market comprises of athletes and players, and they prioritise utility in
terms of textile technology and product reliability over pricing or even style.
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MARKETING COMMUNICATION (cont..)

DATA
The strategy uses by the selected organisation will be able to
penetrate into the Mexican markets as they can choose any option to enter into
the markets. This enables them to understand the needs and desires of the
prospective customers so that they can understand and provide it with the
requirements which will leads in converting prospects into loyal customers.
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From the presentation, it can be concluded that, in order to
expand the organisation internationally, the firm need to make sure that
they are able to adhere all the policies of international markets as well
as choose an option to enter into the markets. Furthermore, the
organisation is using SOSTAC framework which will help them in
planning to penetrate into markets another country.
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CONCLUSION