Branding Strategies in Golf — Under Armour's Blue Ocean Strategy

Kevin Plank, founder and former CEO of Under Armour, loves to tell the story of his origin as an entrepreneur. And it always revolves around focus…

“For the first five years we only had one product; Stretchy tee shirts," Plank said. "Whether you're talking about branding strategies in golf, automobiles, software or whatever, great entrepreneurs take one product and become great at one thing."

Under Armour's focus on stretchy tees for football players enabled Plank to create a whole new pie in the sporting goods industry. It was a classic “blue ocean” strategy…

He wasn’t fighting with Nike for market share, he was competing on a playing field that no one was on.

"I would say, the number one key to Under Armour's branding strategy, and to any company’s success, is focus. Plain and simple," Plank said.

Instead of competing in the bloody waters of an existing market with well-established competitors, the original Under Armour branding strategy sailed off on its own.

And Plank kept his ship on course until the company was firmly established.

He didn’t have to explain the Under Armour value proposition to anyone… From the very beginning it was ridiculously clear what the company was all about. Potential customers grasped the idea immediately...

Stretchy Ts fit better and smelled better than the old, cotton stand-ins. There was a technological advantage built into every shirt. Under Armour led the charge against stinky Ts.

That’s good branding.

Plank was sailing into uncontested waters with one simple, focused idea. Plus he had a well-executed brand identity that was perfectly aligned with his blue ocean strategy.

The name, Under Armour, fits perfectly. It sounds strong because it was originally targeted toward strong, burly football players in tough tee shirts. Plus, it’s under shirts, not outter shirts. The name even implied safety in an inherently unsafe sport.

Only after the stretchy T business was firmly established did they begin to introduce new products and expand Under Armour's branding strategies. It wasn't until years later that they entered the footwear business, the fashion business and the golf business.

(photo credit: UnderArmour.com)

According to Business Insider Online, Under Armour's now leveraging their original brand strategies to gain a nice foothold in golf shoes and golf apparel.

Under Armour has two big advantages in the golf industry... their technology and a young customer base.

"This is important because Under Armour can be taken seriously when they sell golf as a sport instead of a pastime. Portraying golfers as athletes is something that will likely resonate better with younger consumers."

"The same kids who were wearing Under Armour as high school athletes are now young professionals looking for other ways to be athletic. They're starting a career and they know the brand, so they're very comfortable taking Under Armour and wearing it on the golf course."

Unlike Nike, with its unsuccessful foray into the golf equipment world, Under Armour is not deploying any other brand strategies in golf, beyond shoes and apparel. At least for now.

Often the lure of far-away treasure is just too tempting for ambitious entrepreneurs. The minute they get a taste of success, and have some good cash flow, they sail off into completely different oceans.

It’s a common phenomenon among early-stage start-ups where it’s spun, for PR purposes, into a "strategic pivot." But it isn't really. It's just a knee jerk reaction to a suggestion from a potential investor or new strategic partner.

“Wow, that’s a great idea. We could do that.”

“Oh, we never thought of that. Yes, definitely.”

“Well, that would be a great pivot for us. We’ll definitely look into that.”

Those are usually the startups that burn through their first round of funding and then sail off into oblivion. Because there’s no clear purpose. No definitive direction. No substance upon which a brand could be built.

W. Chan Kim and Renee Mauborgne wrote the book “Blue Ocean Strategy” back in 2005. They don’t mention Under Armour, but it fits their blueprint of success precisely…

“Reconstruct market boundaries to create uncontested market space. Use value innovation to make a giant, disruptive leap forward in your industry.”

I'm not sure that Under Armour's golf apparel or shoes would qualify as "value innovation" or a "giant disruptive leap forward," but it seems to be enough help them gain a solid foothold and a $5 Billion market cap.

Jordan Speith's consistent presence on PGA tour leaderboards helps.