BRAND WARS: NIKE vs. UNDER ARMOUR - 20|20 Research
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BRAND WARS:
NIKE
vs.
UNDER ARMOUR
We love a good competition. And we believe that a key ingredient in a good
BRAND WARS competition is a clear winner, no matter how close the battle. So we pinned
two industry leaders – Nike and Under Armour – against each other in a good
old fashioned head to head, and collected consumer intel on each brand to
understand who is the fan favorite and why.
Which athletic brand will come out on top in 2015? Read on to find out.
2
THREE QUESTIONS.
TWO LEADERS.
ONE WINNER.
3
BEHIND THE We reached out to 1,000 consumers to ask three questions about each brand.
CURTAIN We used ThoughtPath, our cognitive framework (rooted in three theories of
psychology), as our guide to carefully craft questions aimed at cultivating the
most insight regarding consumers’ perceptions of, and relationship to, each
brand. Once we collected the feedback, we implemented Merge text
analytics to cull through the massive amount of data quickly and accurately.
From there, our analysts teased apart the nuance in the verbatims to gain a
deep understanding of how consumers view and discuss each brand.
Let the games begin.
4
PERCEPTION THEORY
How would you describe [Nike/Under Armour] to
someone who has never heard of it before?
Please give as much detail as possible.
THE QUESTIONS
IDENTITY THEORY
How would you describe the type of person that
wears [Nike/Under Armour]? Please give as much
detail as possible.
EXPERIENCE THEORY
How does [Nike/Under Armour] motivate you to
live an active life? Please give as much detail as
possible.
5
FIRST GLANCE? Consumers see Under Armour and Nike in a very similar light. They’re both
TOSS UP pricey, well-loved, athletically-minded sports brands. But we didn’t have to
ask consumers to know that, so we continued to dig below the surface.
With a little effort, a great deal of nuance emerges from consumers’
perceptions of two similar brands, illuminating clear differences in the way
that consumers view Nike and Under Armour.
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EXPENSIVE
POPULAR
SPORTS-FOCUSED
HIGH-QUALITY
7
[spoiler alert]
When we asked what type of person wears each brand, at a surface level, the
ATHLETIC PEOPLE perceptions of each brand’s loyalists are very similar. Consumers use the
WEAR BOTH same broad language to describe both. But, in understanding the
relationships between words and flushing out the context with which each
word is used, we learned that the same word can mean very different things
to consumers – even when discussing two seemingly similar brands. Even
when the terms used to describe each brand are identical, the context in
which the word is used is very different.
8WHAT TYPE OF PERSON WEARS [NIKE/UNDER ARMOUR]?
SPORTY SPORTY
Energetic, healthy, fashionable, stylish Dudes, sweaty, football, runner
ATHLETIC ATHLETIC
Cool, stylish, conscious, fashionable Tough, strong, attractive
ACTIVE ACTIVE
Athletic, very, runner Athlete, outdoorsy, serious
SPORTS SPORTS
Healthy, wealthy, fan, sneakers Athletically minded, inclined, player
FIT COMFORTABLE
Sporty crowd, comfortable, athlete Strong, shape, clean
9NIKE = When describing Nike as a brand, shoes are top of mind. Boomers, more so
ATHLETIC SHOES than millennials, associate the brand with athletic shoes. But Nike’s athletic
shoes aren’t your average shoe – consumers speak to the fact that the
comfort of Nike shoes is what gets them out of bed in the morning and ready
to hit the streets. It’s the way the brand motivates them most to live an active
life, more than even the famed inspirational commercials.
10Their shoes are comfortable enough for
you to want to go that extra mile.
– Female, 45-54
One of the best sneaker brands. Many
styles, colors, and types available.
– Female, 25-34
11EVERYONE NEEDS
Consumers believe that Nike is a brand for everyone – they mentally leap
SNEAKERS from the sentiment that Nike is synonymous with athletic shoes to the
thought that everyone needs athletic shoes, and therefore reason that
everyone could wear Nikes.
12Everybody – athletes, students,
professionals, moms, dads, grandparents,
etc. It’s a shoe for everyone!
– Female, 35-44
My son would say they have a lot of swag.
I say they have something for everyone.
– Female, 35-44
13NIKE WEARERS ARE
Consumers speak to Nike’s messaging and advertising as enforcers of the
LIKE ME “Nike is a brand for everyone” sentiment. Ads feature individuals who
consumers relate to and think look similar to themselves. Furthermore, the
advertisements’ compelling stories inspire and motivate, regardless of age
or athletic ability.
14Nike ads show that no matter what you
look like, you can succeed at your goals.
– Male, 18-24
JUST DO IT is the best line ever. I am over
60 and still live by it.
– Female, 65+
15TRIPLE THREAT By digging deeply into who consumers view as Nike-wearers, we found
three main points of entry, or three reasons that consumers turn to
Nike: practicality, performance, and fashion. From the recreational
park-walker, to the elite athlete, to the geek chic ad-exec, Nike covers a
multitude of bases.
16PRACTICALITY
PERFORMANCE
17
FASHIONAND NEITHER SNOW,
When we look at how consumers describe Under Armour, they are quick to
NOR RAIN… point out all of the technical aspects that make Under Armour functional in
the most challenging of conditions. Aside from minimal mentions of price
and overall quality, consumers use language such as “wicking,” “skin-tight,”
“insulating,” and “breathable” to describe the brand. To consumers, Under
Armour’s key differentiators are woven into the fabric of their apparel (which
is fitting, as the brand’s original product was a moisture-wicking shirt).
18CLOTHING IS ALL ABOUT PERFORMANCE.
base layer elastic
light wicking
thermal
breathable nylon
skin-tight
insulating
protects
An active individual who is serious about
what they do, and pushes their body to
the limits but wants and needs the best
active gear available today.
–Male, 18-24
PERFORMANCE
19NO EXCUSES Athletes find that Under Armour’s most motivating quality is the
performance of the gear – if they can’t use their faulty apparel or equipment
as a crutch in bad weather, they have no excuse but to brave the elements.
With the right equipment, there’s no such thing as bad weather, and this
makes them feel unstoppable.
20Having equipment withstand unfavorable
weather motivates you to stay active
even when Mother Nature doesn’t.
– Male, 25-34
Just having the US symbol on my shirt
motivates me. I don’t want to be seen
eating a burger and fries. I want to be
seen going through a grueling workout or
Tough Mudder event!
– Male, 35-44
21UNIVERSAL APPEAL IS
But not everyone is an elite athlete – or would even consider logging a few
LACKING miles in the snow. While Under Armour’s focus on performance pleases
athletes, it alienates a large sector of the population that either doesn’t care
about elite athletics or cannot relate to this degree of athleticism. When we
asked who wears Under Armour, we found that Under Armour wearers are
not your average athlete in both athleticism and attitude – consumers used
words like “cocky,” “trendy,” and “wealthy.” The super-human athleticism can
be off-putting, leading some consumers to be uninspired by the perceived
unattainable fitness level.
22Athletic, trendy, but unrelatable.
– Male, 18-24
Athletic, active and probably attractive.
– Female, 65+
Intense athletes that are probably into
American football.
– Male, 25-34
23NIKE HAS A BIGGER
So, by tapping into consumers perceptions of the brands overall, their
FOOTPRINT perceptions of who wears each brand, and their personal experiences
with each brand, we’re able to understand that there are three
distinct, yet broad reaching, points of entry for Nike, and only one for
Under Armour.
24WHY BUY
NIKE VS. UA?
PRACTICALITY
PERFORMANCE PERFORMANCE
FASHION
25NIKE WINS
Simply put, more people relate to, and can see themselves in, Nike.
OUT The brand’s rich sneaker heritage contributes to the broad appeal, as
does their relevant and inspiring messaging. While sneakers are more
top of mind for Boomers, its clear that everyone, regardless of
generation, is aware of Nike and can imagine themselves donning the
swoosh – and they often do.
26OUR WINNER? 27
The fact that Under Armour is a threat to Nike is impressive in itself –
just nineteen years ago, the brand was a pipe dream in CEO Kevin Plank’s
THE (FEROCIOUS) grandmother’s basement. While Under Armour comes in behind Nike,
UNDERDOG the brand has a great deal of momentum and opportunity. Millennials in
particular offer hope of closing the gap: they rave about Under Armour’s
comfort, and don’t say the same for Nike. Millennials and elite athletes
aside, there are many markets that Under Armour can tap to continue to
grow market share. The brand has already successfully kicked off this
outreach; they executed a wildly successful and award-winning “I Will
What I Want” campaign targeting women in 2014, and recently spent
more than $600 million purchasing two fitness apps, MyFitnessPal and
Endomondo, allowing them to help a diverse group achieve their
exercise goals, regardless of fitness level.
28THE
RUNNER
UP
29MERGE
A solution that combines:
OUR
METHODOLOGY Cutting-edge text analytics…
…with human analysis…
…to derive the context and story
30 behind consumer commentary.We completed this research using Merge Analytics, a solution that
leverages a cutting-edge text analytics software, backed by 20|20’s expert
analysts, to help companies easily and efficiently understand what is going
OUR on with their consumers. With this approach, we’re able to look at
METHODOLOGY consumer commentary from multiple sources, including social feeds,
product reviews, survey verbatims, and call center transcripts, and distill it
down into actionable findings.
This research was conducted by asking three open-ended questions for
each brand of N=1,000 consumers. Questions were crafted using our
cognitive framework, ThoughtPath.
This content was adapted from a presentation given at the Quirks Event in Brooklyn, NY in February 2015.
31Research, Uncomplicated.
32
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