Sharpshooter Steph Curry is just getting started: A $1 billion brand promise

It’s no coincidence that on the eve of the NBA championship finals that Under Armour hitches itself to the recently announced most valuable player in the league and now NBA champion: Stephen Curry. The two-time NBA All-Star is a sharpshooter for the potential NBA champions, but the road to glory out of Davidson College wasn’t paved with gold for Curry. Fans and media alike never predicted such a steep rise to top for the 27-year-old from Ohio.

Under Armour: Charged by Belief

Coming off a successful launch of the “Dark Matter” Curry One shoe, Under Armour executives have proclaimed that its basketball brand campaign will become a $1 billion brand, centered on Curry. Through premier quality and revolutionary technology, the goal is to overtake Nike as the No. 1 retail sports brand (Schultz, 2015). The global billion-dollar brand campaign, spearheaded by Jamie Foxx, creative director, will be titled The Book of Will and will highlight the underdog’s story, reflecting both the company’s history as well as Curry’s (Beltzer, 2015).

Under Armour’s declaration to build a billion-dollar brand around Curry is a bold claim. Its current basketball brand is worth about $100 million, and for the next 10 years, Under Armour will need to grow 30% each year to achieve this milestone, according to Sterne Agee & Leach analyst Sam Poser (Williams, 2015). This isn’t the only challenge facing Under Armour as they attempt to take on Nike, owner of 95% of the market for all things basketball (Shultz, 2015).

It’s the David versus Goliath: Basketball retail version. Three decades ago, Nike signed legendary Michael Jordan, which catalyzed the company as a lifestyle brand rather than simply a functional brand (Williams, 2015). Its recent celebrity signee, LeBron James, has seemingly sealed its fate as Goliath in this tale. It’s the MVP versus the current best player in the world, on and off the court: Stephen Curry vs. LeBron James; Under Armour vs. Nike; David vs. Goliath. Is it possible for Curry and Under Armour make a dent in Nike’s world?

Curry signs a multi-year deal with Under Armour

Other than established rivals, another obstacle for Under Armour is the strategy it is employing. Even though Under Armour has recently earned the No. 2 ranking in U.S. sales (Rovell, 2015), taking Nike on head-on will prove to be a tough uphill battle for Under Armour. The brand hasn’t stumbled on to uncharted territories. It’s knowingly entering in an overcrowded industry and claiming a huge return on investment; all the while it will be competing with Nike, the official uniform provider for the NFL and now for the NBA.

To stay above the fold, Under Armour should consider positioning itself where the competitive forces in the market are weakest, which can bolster long-term earnings (Porter, XXX). Finding a blue ocean – a demand in an unsaturated market (Kim & Mauborgne, XXX) – might be more beneficial for an underdog like Under Armour. Under Armour should put distance between like brands and offer an uncontested commodity that consumers value instead of relying on fashion and innovative technology to propel revenue into the 10-figure mark. Armour

What do you think about Under Armour’s brand strategy? What other challenges face this underdog?

References:

Belzer, J. (13 February 2015). Thanks to NBA All-Star Stephen Curry, Under Armour basketball poised to dethrone Nike and Adidas. Forbes. Retrieved from http://www.forbes.com/sites/jasonbelzer/2015/02/13/thanks-to-nba-all-star-stephen-curry-under-armour-basketball-poised-to-dethrone-nike-and-adidas/.

Schultz, E.J. (8 January 2015). Under Armour has high hopes for Stephen Curry shoe launch in battle against Nike. Ad Age. Retrieved from http://adage.com/article/cmo-strategy/armour-high-hopes-stephen-curry-shoe/296517/.

Williams, T. (3 June 2015). Can Under Armour build a $1 billion basketball business on Stephen Curry? MarketWatch. Retrieved from http://www.marketwatch.com/story/can-under-armour-build-a-1-billion-basketball-business-on-stephen-curry-2015-04-21.