STHM 1113 Lecture Notes - Lecture 9: Under Armour
6 May 2018
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• Differing levels of economic Value
o Commodities
▪ Raw materials: animal, mineral, or vegetable
▪ Fungible – Similar price for same type of item
o Goods
▪ Manufactured commodities that are tangible
▪ Prices often fluctuate based on cost to manufacture
▪ Dominant for many years as backbone of economy
▪ Aoous uers; do’t ko uh aout the ustoer
▪ More valuable than a commodity
o Service Economy
▪ Intangible activities customized to the needs of the known buyer
▪ Goods are utilized to provide service for a client (i.e. getting a haircut –
tools used in the process)
▪ Services generally wrapped around goods – increases value of goods
▪ Currently in a service economy – This is being commodified
• Comparison Models in Current Economy
o Old – sell goods based on price & brands
▪ Macy’s
▪ JCPenny
▪ Sears
▪ Acme
o New – sell goods based on Experience
▪ Apple
▪ American Girl Doll
▪ Build a Bear
▪ Best Buy
▪ Wega’s
▪ Buying a Corvette
▪ Under Armour Brand House Stores: focus on the experience, not the
product
• It's "aout the eperiee for the ustoer, ad giig the a
reaso to oe to a loatio eod the trasatio,- Susie
McCabe, UA VP of Global Retail.
• The Under Armour Experience is less of a store and more of an
immersion in the sights and sounds of athletic training. A 270-
degree screen takes up 90 percent of the 2,500-square-foot
space, with a small retail section on the side.
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