MERCHANDISING MIX

PRERNA JHA TANVI SINGH SHIVANSH RAI DIVYANSHU SINGH

BD/20/2184 BD/20/1588 BD/20/1610 BFT/20/795
What is Merchandising mix?
The term "merchandise mix" is the product assortment a retail store offers. It
refers to the breadth and depth of the products a given retail store carries
on a regular basis.

IMPORTANCE

Merchandising is important because: a new look attracts customers; cur-

rent customers buy more; and it increases impulse sales, the average dollar
transaction, seasonal items, the number of products stocked, market share,
and customer awareness of product lines.

Importance of merchandising mix : Business Image. Your product mix is im-

portant in determining the image of your business and brand, as it helps
you to maintain consistency in the eyes of your target market. For instance,
if you're a discount retailer, your target market likely consists of econo-
my-minded shoppers looking for low prices.
Company Profile
Under Armour was founded in 1996 by Kevin Plank, a former football player
with the University of Maryland. He developed a synthetic shirt that wicked
away sweat. This product was the need of the hour at the time for athletes
and active people alike. The company began developing many innovative
performance-wear thereafter. The company was originally named KP
Sports and changed their name in March 2005 when they went public.
Brand Profile: History
1996:
Kevin Plank develops his first microfiber T-shirt to keep athletes dry during
workouts and games.
1997:
Introduced the now-famous ColdGear" fabric which keeps athletes warm,
dry, and light in cold conditions, and then the AllSeasonGear line, which
keeps athletes comfortable between the extremes.
1998:
Under Armour outgrew grandma's basement and moved to an all-new
headquarters and warehouse in Baltimore
1999-2001:
. Plank and his team signed on to supply product for the Oliver Stone film
Any Given Sunday starring Al Pacino and Jamie Foxx
Bought the first print ad in ESPN the Magazine
Formed relationships with key retail partners and professional
Brand Profile: Mission & Vision
"TO MAKE ALL ATHLETES BETTER THROUGH PASSION,

DESIGN AND THE RELENTLESS PURSUIT OF INNOVATION." -Under Armour mission

statement (Mission, uabiz.com)

"EMPOWER ATHLETES EVERYWHERE."

-Under Armour vision statement (underarmour.jobs.com)

The UA jobs website also includes other commitments the company swears
to work by.

Hey are as follows,

4 Pillars of Greatness . MAKE A GREAT PRODUCT

. TELL A GREAT STORY .PROVIDE GREAT SERVICE

BUILD A GREAT TEAM

Value Proposition
The primary sources of Under Armour's value are its apparel and footwear
businesses, and together they contribute around 89% of Under Armour's
value. Apparel is more valuable than Footwear and Accessories businesses
for the following reasons:

MARKET LEADER IN PERFORMANCE APPAREL MARKET

Under Armour is the current market leader in the performance apparel

market with over 70%

market share. All three apparel gear lines of the company Le. HOTGEAR,
COLDGEAR and ALLSEASONGEAR are extremely popular among professional
athletes as well as consumers.

However, in the footwear and accessories businesses, Under Armour faces

tougher competition.

with established players such as Nike and Adidas.

Products: Merchandising Strategy &
Product Categories
UA's merchandising strategy is aimed at widening product offerings; target
additional consumer segments and enlisting retailed to increase distribu-
tion. From just football apparel, and football-related sportswear, Under
Armour today offers sportswear performance apparel for nearly all main-
stream and non-mainstream sports alike.
Following are the broadly available product categories on the UA website,
Basketball Baseball Training
Golf Volleyball
Running
Military Tactical
Boxing
Fishing
Field Hockey Football
Hockey
Hunting Lacrosse
Ski/Snowboard
Soccer
Softball
Sury Swim
Studio/ Yoga
Tennis
Products
Products

Since UA focuses on innovation and quality performance apparel, the prod-

uct lines are marketed in their own way - "gearlines Each gearline is appro-
priate for specific climatic conditions aimed at providing comfortable and
least-resistant training in respective physical activities. The apparel comes
in a range of styles, fits enhanced to regulate body temperature and mobil-
ity.

"In 2013, sales of apparel, footwear and accessories represented 76%, 13%
and 9% of net revenues, respectively. Licensing arrangements, primarily for
the sale of our products, represented the remaining 2% of net revenues."
(Under Armour Annual Report 2013)
Apparel
According to the UA Annual Report 2013 the "gearlines are marketed to tell a
very simple story about our highly technical products and extend across
the sporting goods, outdoor and active lifestyle markets". The apparel is
marketed as choices to the consumer to purchase HEATGEAR® when it is
hot, COLDGEAR® when it is cold and ALLSEASONGEAR® between the extremes.
Each gearline features three

primary fit types: Compression (tight fit)

Fitted (athletic fit)

Loose (relaxed)
Footwear
UA introduced footwear for men, women and youth in 2006 and have only
been increasing this segment ever since. This department includes foot-
wear that is appropriate for football, baseball, lacrosse, softball and soccer
cleats, slides and performance training footwear, running footwear, basket-
ball footwear and hunting boots. It is described as being light, breathable
and built with performance attributes for athletes. UA footwear is designed
with a range of innovative details, which provide "stabilization, directional
cushioning and moisture management engineered to maximize the ath-
lete's comfort and control."
Accessories
Accessories primarily include the sale of headwear, bags and gloves of
HEATGEAR® and COLDGEAR® technologies. They are designed with advanced
fabrications to provide the same level of performance as other UA products.

HEATGEAR® is designed to be worn in warm to hot temperatures under

equipment or as a single layer. While a sweat-soaked traditional non-per-
formance T-shirt can weigh two to three pounds, HEATGEAR® is engineered
with a microfiber blend designed to wick moisture from the body which
helps the body stay cool, dry and light. HEATGEAR® is offered in a variety of
tops and bottoms in a broad array of colors and styles for wear in the gym
or outside in warm weather.

COLDGEAR® is designed to wick moisture from the body while circulating

body heat from hot spots to help maintain core body temperature.
COLDGEAR® apparel provides both dryness and warmth in a single light
layer that can be worn beneath a jersey, uniform, protective gear or
ski-vest, and COLDGEAR® outerwear products protect the athlete.
COLDGEAR® products are sold at higher prices as compared to products of
other gearlines.
Products
Products

Since UA focuses on innovation and quality performance apparel, the prod-

uct lines are marketed in their own way - "gearlines Each gearline is appro-
priate for specific climatic conditions aimed at providing comfortable and
least-resistant training in respective physical activities. The apparel comes
in a range of styles, fits enhanced to regulate body temperature and mobil-
ity.

"In 2013, sales of apparel, footwear and accessories represented 76%, 13%
and 9% of net revenues, respectively. Licensing arrangements, primarily for
the sale of our products, represented the remaining 2% of net revenues."
(Under Armour Annual Report 2013)
Merchandise Hierarchy
•It is a disciplined way of grouping merchandise mix at different levels

DIVISION GROUP DEPARTMENT CATEGORY

UNDER MEN BASELAYER PANTS
ARMOUR WOMEN BOTTOMS SOCKS
KIDS OUTERWEAR HOODIES
SHOES TOPS SHORTS
UNDERWEAR LEGGINGS
SPORTS BRA ANKLETIGHTS
CROPTEES
BOMBER
JACKET
GRAPHICS
VESTS
ATH. SHOES
BOOTS
BAGS &
BAGPACKS