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Under Armour, Inc. Q4 2007 Earnings Call Transcript

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2008-01-31 13:13:20.0

Tags: Under Armour Inc.

Question-and-Answer Session

Thank you. [Operator Instructions]. We'll go first to Omar Saad with Credit Suisse.

Omar Saad - Credit Suisse

Thanks, good morning. Couple of quick questions; first, can you kind of talk about why you decided to do a Super Bowl ad, it seems like a little bit of a departure from your previous approach to marketing the brand. Can you comment on that?

Kevin A. Plank - President, Chief Executive Officer and Chairman

Hey Omar, it's Kevin. We talked on how much we should put even in the script, but let me just take a minute and walk you through what's going on with Super Bowl. First of all, the answer is it absolutely has no change to the strategy that we had before. The fact we see Super Bowl as the perfect venue to unveil the most highly anticipated product launch in our company's history. All of our launches that we've done in the past has centered around major media, but we've done it on things like ESPN where you can pick up 1.5 million to 2 million viewers at a time. It's the opportunity to unveil, it's the coming out party for more than a 100 million people, to introduce them to the Under Armor brand and again, this is not just a shoe commercial for this company, it's a brand campaign.

And I think that's one of things that makes us so excited about what's coming up this Sunday. It's important for us to reiterate the fact that the spend we have falls within our 12% to 13% campaign for the full year. The new prototype is something again; it's much bigger than just a shoe campaign. So let me lay out for you the way and the idea we have, to really think about it in three phases.

Phase one is the teaser [ph] which has been going on for about the last frankly several months, kicking off with both online as well as 15-second teasers that we have been doing across media. Phase two is what we call, the blitz and that's introducing the mothership. The mothership is what starts with the Super Bowl ad and again, this is not a... our marketing for the year should not be defined as a Super Bowl ad as much as that simply the launching pad for a year long campaign. Again, it's the unveiling of maybe one of the largest growth engine that we'll introduce as a brand.

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