I have just been subjected over the past couple of days to yet another barrage of UA's advertising campaign for its upcoming performance shoe line. The company has bet the ranch on this product extension and it has committed oodles of shareholder $$$$ to this misguided ad campaign, so much so that profit this quarter is down y-o-y because of the huge ad spend.
I say "misguided" because for some inexplicable reason, Plank and his team have chosen through this shoe ad to cultivate a new brand image of thugs, pimps and losers. This against a backdrop of a brand identity that has revolved around the sports-performance-driven nature of its product line. Why the company has failed to leverage its inherent brand attributes is an obvious question that will fuel Harvard Business Review case studies for years to come.
Meanwhile the market has spoken today as to its view on the "new" Under Armour brand identity campaign and its value-destroying results.
Plank and marketing team: the investment community is looking for answers, now.