The Role of Web 2.0 in Under Armour E-Business

1.0 Background information of Under Armour

1.1 Introduction

Under Armour began its work in 1996 as a foundation of Kevin Plank who is a former football player. The company’s website is Underarmour.com, an e-business platform that sells performance apparel or gears engineered towards keeping athletes dry, cool and light throughout a workout, game or practice session. The business started with a simple plan focused towards marking T-shirts that are superior. The company uses complex technology in designing apparel. For instance, the T-shirt confers advantages to an individual in that it wicks off perspiration, regulates temperature and enhances the performance of an athlete. The company’s target market includes men, women and youths. The products are diverse; they include Heat Gear® worn during hot weather conditions, All Season Gear® worn in between the extreme weather conditions and Cold Gear® worn during cold weather conditions. The mission of Under Armour is to improve athletics through innovation, passion, and design. Currently, Under Armour website provides inside information on its apparels and offers available goods together with newly designed products. Their current is www.underarmour.com

(Figure 1).

1.2 Management summary

For the past years, Under Armour underwent much growth attributed to the company’s management decision. Under the tenure of company CEO (Kevin Plank), the company has witnessed immense growth. Currently the CEO will relinquish the presidency title to Patrick Frisk who has experience in products such as foot wear and has served as CEO to unit of the firm. The move was initiated to salvage the company from the declining number of sales. In first quarter of 2017, the company’s stock stumbled to 30%. Under Armour as a company has experienced a significant growth in running, football, women apparel, soccer and fitness. The management of Under Armour over the recent month underwent through a reshuffle where some of its top executive staff lost their jobs. The changes were to be expected since the company that had registered a rapid growth on the recent past had now come to halt in June when the Under Armour company challenges increased, they hired Frisk as a new president and a Chief operation officer who reported to Kevin plank the company’s CEO. The company reported losses and first sales decline last year since 2005 when Under Armour decided to go public. Since the company experienced losses it has shifted from being structure focused to one specific item to a one organized in to eleven categories for example golf, basketball, women, training, outdoors and running. The company recent changes were associated with the on-going transition in the company while others were to realign employment and work functions with a gradual growth. Patrik Frisk role at Under Armour was to oversee on areas and departments such as the sales, marketing, supply chain and product. Frisk roles freed Plank and enabled him to focus more on the grand and brand vision of Under Armour.

1.3 Problem facing Under Armour E-business

Some of the challenges faced by Under Armour e-business that results in sales decline include

Ø Poor selling or branding

Under Armour website lacks clarity hence fails to meet the selling test. The website is not attractive to customers and lacks a natural interface.

Ø Under presentation

As compared Adidas website, Under Armour website lacks new platforms such as the pop up function that is captivating and looks attractive to users. The pop function tends to ease client navigation and attract more customers to the company’s website.

Ø Lack of online gross revenues

Most customers are driven by the number of sales for particular product. Gross revenue display at company’s website attracts the attention of clients and result in the creation of traffic at the company’s website. Lack of gross revenue information on Under Armour website is a significant drawback and leads to decline in sales.

Ø Less promotion

Companies that have invested in promotion gain profits from increase sales. Under Armour website lacks link to other internet sites. Through such links, most e-businesses have increased number of users visiting their sites which translates to increase in number of purchase made (Figure 13). Failure of promoting products results in the firm losing most of the clients to competitors.

1.4 Proposal Target and Expected Output

The Under Armour can achieve much through implementation of web 2.0 and proposed schemes. The redesigning of the Under Armour website and inclusion of proposed ideas will generate benefits such as:

Ø Build on work of others through collaboration and outsourcing

Ø Omni channel interaction

Ø Increase in number of clients visiting the company’s website

Ø Customized landing pages

Ø Availability of online gross revenue

Ø Client apprehension

Ø Home bringing

Ø Real time feedback from clients

Ø Display of merchandise price

Ø Quality in adverts or sense

Ø Ease of navigation by clients

Ø Easy pay for merchandise by the customers

Upgrade of the website based on latest engineering which enhances experience and expression

1.5 Outlined Budget Estimation

For the website upgrade to be successful, there should be a set budget that would foresee the implementation. The budget will account for substructuring and alterations of the website. Apart from acting as a cost for website upgrade start-up, the budget will assist in ensuring that there is a continuation in manning of the site.

Start-up cost

Expenses

Entire costs include

Website redesign cost : 55,000

Improved Hardware equipment: 15,000

Software substructure: 10,000

Branding plus advertisement: 15,000

Running cost

Expenses

Entire cost per month

Website management: 15,000

Gross sales helper: 100,000

Staff wages: 400,000

Tax Return on Investing (ROI)

Upon implementation of the set program, Under Armour is set to profit from the changes done on the website and general business operations. Implementation of web 2.0 engineering will grant the company a year turnover plus profits. The ROI estimations for Under Armour are as follows:

Ø ROI in Website optimization

There will be an increase in current gross by 15 %

Ø ROI in Improved client experience

There will be increase current gross increase by 18%

Ø ROI in branding and advertisement

The current gross will increase by 20 %

Ø ROI in Online gross revenues

The current gross will increase 30 %

Ø ROI in home bringing

The current gross will increase by 15 %

2 Outlines of the proposed idea

The proposed idea will be implemented through redesigning of Under Armour website so that the website operates under Web 2.0.

2.0 Advantageous services of Web 2.0 to the company

Ø Implement to allow availability of online gross revenues

Ø Implementation of Free Home bringing

Ø Better experience by clients

Ø Increased Branding and advertisement

Ø Website Optimization

Ø Implementation to enable ease of navigation by client on the website

Ø Clients have opportunity to view some of the key consequences

Ø Clients only need to use keyword to analyse the website quickly

Ø Increase traffic to the firm’s website

2.1 Advantages services of Web 2.0 to the customers or Users

Ø The users or clients would be able to identify and select their merchandises easily

Ø They will be able to select merchandise that seems to be appropriate as well as their scope

Ø There will be consistency in experience and expression

Ø The final user interface will be better

Ø Increased feedback mechanism

Ø Customer battle through weblogs, wages

2.2 The alternative market avenues that will be used by Under Armour to maximize profit once it uses Web 2.0

Ø The use Magazines

Ø The use of Internet

Ø Newspapers

Ø Televisions

2.3 Importance of implementing online gross revenue under services of Web 2.0

Ø Implementation of online gross revenues will results in better traffic on Under Armour website translating into more profits (Figure 5).

Ø The clients have the option of using their credit or debit cards in the purchase. Under Armour have an advantage since it provides after sale services such as shipment or online supply of purchased merchandise.

Ø The website redesigning ensures that new changes in pricing are noticeable by clients, through direct linkage of client’s emails. The redesigning assists in increasing traffic to the company website.

3 Review of Competitors or Similar Ideas

3.0 Adidas

Ø Adidas is also responsible for making quality sportswear and controls much of the global market. The headquarters is in Germany but trades as America depository. Adidas is at better place than Under Armour since Adidas is one of the oldest firms with a vast range of customers (Mahdi et al. 2015, p. 168).

3.1 Nike

Ø Nike is not only dominant globally but also the most prominent firm among the three. The brands of Nike are far much dominant. The company also deals in sportswear just as the Under Armour. The firm’s athletics apparels control the most significant share of the market in the North American industry. Nike developed various user platforms on their website that make their site to be more user’s friendly (Mahdi et al. 2015, p. 167).

3.2 The websites for the two competitors include

Ø www.nike.com

for Nike

Ø www.adidas.com

for Adidas (Figure 2)

3.5 The tabular array below indicates the sphere and figures of organic keywords for Adidas and Nike as the key rivals of Under Armour.

Ø Table 1: (Keyword spy, 2017)

No.

Sphere

Organic keywords

1.

underarmour.com

119

2.

adidas.com

9,120,890

3.

nike.com

5,390, 451

Through figure detection and the displayed array, Under Armour is last compared to the two firms. To be the top, Under Armour should develop a proposal with improved techniques as major concern

4 Top level Technology Plan

Ø The Top-level of technology plan includes the selection of the technology constituent which will maintain and execute a successful e-business website for Under Armour. The website is required to run on a most recent engineering program and execute an enhanced public presentation.

4.0 Engine program used by www.underarmour.com

currently

Ø Operating system: LINUX 0.3 2013, OS X 10.7, Window 7 2008

Ø Model: PHP, Python, Perl, Java, Nod.js, C++ 11

Ø Web server: MongoDB Server (mongodb.com)

4.1 Newly Proposed Engineering Program

Ø The proposed engineering program will make use of logic Architecture that uses the Service Oriented Architecture (SOA). The package gives the company a better security, unity, public presentation, scalability and dependability as compared to the old package (Figure 15). The SOA is a constructions dwelling of services that are assorted and communicate with each other.

Ø With this architecture Under Armour can accomplish so many benefits since the different maps are interlinked with each other. The benefits include, Secured application and improved flexibility, Better connections between the client and providers, a cost-effective application development, Enhances the productiveness of workers and Facilitates concern establishment devices. The Web 2.0 technology will be incorporated with SOA to facilitate the distribution of a new platform for an improved public presentation.

4.3.0 Third Party Services

4.3.1 Physical Architecture

The physical architecture of the newly proposed technology has Web technologies that will enable Under Armour website to be reshaped and utilize the engineering programs described below.

Ø Client-side engineering

Programs will be implemented by a web browser on the client’s side. The redesigning of this site will utilize the use of JavaScript and CSS for a more desirable public presentation

Ø Server-side engineering

The web waiter will execute programs on the server side and uses the ASP.net on the server-side engineering

Ø Content engineering

In the new proposal, the website will make use of XML and XHTML mark-up in the linguistic communications.

Ø Web services

The web services will incorporates a web-based application using a standardized manner. Uses SOAP (simple Object Entree Protocols) and WSDL (Web Services Description Linguistic Communication).

Ø Backend database

The backend database will make use of SQL Microsoft server 2008 as a backend database.

Ø Marsh up

Marsh up is an application on the web that merges data from one or more beginning into individual incorporated tools.

5 Website improvement Strategy to Increase Sales

Ø An online secured payment

The Under Armour clients will now have the ability to pay for gross online revenues through their credit and debit cards and the other or third party via PayPal (Figure 10). Information given will be applicable in legalizing client’s bank details information for protected payment procedures. The proposal will be useful for the Under Armour to increase gross revenue through using the following based e-business 2.0 tactics. They include the Social 2.0, Channel 2.0, Engage 2.0 and Marketing 2.0.

Ø Surpass traffic

The Under Armour website should follow the distinct methods of marketing like Blogs, podcasts, Mashups, marketing 2.0 and wikis, etc.

Ø Address the apprehension or worries of clients

Under Armour must feed all information that each user on the website may need to improve their understanding. Apprehension of client worries will help to understand the particular needs of the client and supply the product they want.

Ø Particular trades

Under Armour must distribute specific trades for the advancement of their goods and improve the gross revenue of the product like half monetary value, bargaining of one and getting one free and reduction of prices which may attract the customer to purchase more goods.

Ø Selling channels

Marketing products in a proper and right manner are essential since they better the gross revenue of the goods. The distinct types of selling channels include

Ø Internet

Cyber cafes are on the rise and are always flocked and used on a daily basis. They are one of the bestselling channels where Under Armour can source many clients and enhance promotion.

Ø Television commercial

Television is owned by almost three-quarters of the total population. They are easily accessible and most powerful selling channels through advertisement.

Ø Public dealing

Public dealing is one of the cheapest tools for a sale channel where Under Armour should maintain and ensure good interaction and relationship.

Ø Newspaper

Use of newspaper to publicize offers that are available on the market.

5.0 The Under Armour can improve promotion strategies.

Ø Organic hunt engine optimization

Ø Pay per link

Ø Affiliates

Ø Analytics

Ø Call centres

5.3 Marketing 2.0

Marketing direction and optimization

The methods used in online gross revenue optimization are also used in marketing optimization. However, market optimization may differ a little in the manner of success and how it’s measured. Market optimization also differs on how the backup engineering works and how the different techniques work together. The internet Marketing Optimization is not limited to days in a month.

Ø A and B proving

In this particular test, a default design which is A is tested with B which is a new version. The A represents Under Armour website while B represent a proposed new website where add-on to various pages occurs. Sometimes the addition of pages work, and sometimes these additions don’t. Most guests prefer a brief, short and precise procedure within few pages.

Ø Multi-variation test

Under Armour transition rate can be achieved through multi-variant testing. The test is done by slicing pages into the element boxes, then fluctuations of original pages which are developed by creating the packages by utilizing distinct merging of the elements. Multi-variant testing can be in five pages or 40 pages and is determined by the number of pages used. The fluctuation is then served to the visitors in a particular unrecorded environment. While visitors relate to trial pages, the package will help in placing pages combination that makes changes that are more technical than of the default page. To manifest the indicator if there is a considerable sum of traffic through redirecting to the pages. The process will repeatedly occur till it establishes a higher opportunity to surpass the default stage. The process may take a time span of few years to help in improving the Under Armour.

5.4 Social 2.0

To improve transition rate, the must be more use of social platforms. The Under Armour website can enhance customers’ platform by the utilization of different social tools which are

Ø Web blog

Ø Forums

Ø Reappraisal

Ø Wikis

Ø Rating

Ø Tags

Ø List

Ø Web services

5.5 Engage 2.0

Engage or prosecute 2.0 focus point is on customers demand and completes these demands using engenee4ring. That will ensure the customer remains loyal to that particular product.

Ø Loyalty

Ø Brands

Ø Wages discounts

Ø Provide products micro content

Ø Facebook

Ø Doodad

Ø The RSS provender

Ø Cross-selling

Ø Upselling

Ø Personalization

5.6 Channel 2.0

These are the several sells channels in any administration that which the Under Armour company may sell its product. The company must have detailed information on products, their monetary value and assist in updating all channels while upgrading the products and selling them through different channels.

Ø Gift verifiers

Ø Multi-channelling selling

Ø Promotion

Ø Phone or mobiles (Figure 11).

Ø Other channels

Ø Order fulfilment

Ø booth

6 Storyboard for User Experience

Storyboard for user experience is a narrative panel for buying a product online. For customers who want to buy online the interface should be good.

Ø Enter place page

Ø Search product

Ø Choose product

Ø Add to basket

Ø Check out travel if your member log in and if client is new sign in a new account

Ø Check detailed information

Ø Confirm payment

Ø Use designation pin to search position

Ø Product should be delivered on time.

7 Security Management and the Technological Decisions

Ø Antivirus package

Ø Firewall protection (diagram)

Ø Authentication

Ø Backup.

Ø Cryptanalysis.

Ø Message unity

8 Critical review of feasibility

Since the execution process of the proposed plan requires less stage, its implementation is more feasible especially when the estimation from ROI is taken into consideration. The five key points to note are Website optimization, improved client experience, branding and advertisement, implementation of online gross revenues and implementation of Free Home bringing.

Ø Website optimization

Website optimization has good ROI; this implies that its implementation will highly result in an increase of client traffic at the Under Armour website. The stage is executable since its development requires a comparatively low cost.

Ø Improved client experience

Satisfaction of client comes hand in hand with the type of service or experience they encounter from a given company. Well-designed website act as a recipe for satisfaction for clients before obtaining the merchandise from the firm. Currently, what interests most customers is a website that is easy to navigate through. For the business to realize high net incomes, all its merchandise should be of value so is the company website. Usually, customer experience is realizable when a client visits a shop or a site. Ensuring that clients receive experience through company’s act requires a comparatively low cost during the implementation process.

Ø Branding and advertisement

Branding and advertisement is somehow the most expensive stage since it may require outside sourcing. However, when well implemented, its net income is high since it publicizes the company merchandise and attracts more customers. The outsourcing may include links such as television, Magazines, Cyberspace and other non-competitor company’s website.

Ø Implementation of online gross revenues

From the Under Armour website, the company has no online gross revenue. As the company strives to shine its competitor out, it must include online gross revenue on its website. The implication of this is that the Under Armour must implement the proposed plan. The ROI of online gross revenue is high so is the year turnover rate. The phase may be costly however its returns are quite high. With a better user interface and other tools such as networking tools or weblogs and wikis, the company stands to benefit more.

Ø Implementation of Free Home bringing

Implementation of Free Home bringing is costly although its results are of importance to Under Armour.

PROPOSAL JUSTIFICATION

1.0 Introduction

The section elaborates on the need for the implementation of the proposed plan in the previous part of the proposal. The chapter takes into consideration of the discussion within the proposal and e-business trends.

Ø Redesigning of Under Armour website

Under Armour website will be redesigned to look more superior as compared to other competitor’s website such as Adidas. The upgraded website should be presentable to all countries where the business has ventured. The site will ensure that all consumers utilizing the firm’s merchandise enjoy similar treatment by the company’s management.

Ø Attractive site

The company website should be impressive and consist of a variety of merchandise that it supplies or offers. With a good website such as Adidas, the client can navigate through the site and feel to be part of the company (Figure 4). Under Armour has obligation of providing a perfect interface for its clients so that it may cop up with competition

Ø Internal hunt

Internal hunt is essential in ensuring that a firm provides an opportunity to the clients to select what they are willing to purchase from the firm’s website. Sites such as Nike website or Adidas offer this opportunity to the clients (Figure 2). Clients should always have the opportunity to select what they want; it is, therefore, prudent for Under Armour to adopt such policies.

Ø Variety of merchandises

Within the website, the clients or users should be able to access the list of all the merchandise that is on sale within the company. When merchandises are categorized on the company’s website, the client gets easy time while shopping online. Also, the number of clients visiting site increases and chances of site slowing down a due multiple access are minimal. Adidas website displays various merchandise s on sale (Figure 2). There is no need for too much navigation on the site while selecting the apparel of choice. Under Armour should also adopt a similar policy as Adidas and organize its product to increase client experience.

Ø Online gross revenues

Under Armour can increase its revenue through the inclusion of online gross revenue on their website. The integrations enhance customer loyalty and strengthen the relationship between the customer and the enterprise.

Ø Provision of cards

Compared to some known enterprises, Under Armour may offer cards to its clients so that each time they purchase apparel they earn points. Cumulative scores are usable in future in making purchases. Through such card, it is possible to acquire customer loyalty and increase revenue.

Ø Price checking

Price checking involves comparing the cost of Under Armour apparels to that of competitors such as Nike and Adidas. Most companies tend to offer low prices on their product together with quality as compared to rival groups. The firm secures significant market share and maintains high revenue collection; it has to compare the cost of its apparel regularly to that of the competitor and make an adjustment of there is a need. Supplies of low-cost goods ensure that the firm gets high gross revenue.

Ø Use of picture

Under Armour can use videos on its website since most clients tend to recall specific images which act as an attraction point for more buying. A clear example is the images used on Adidas website. Such image and videos result in traffic flow at the site (Figure 3).

Ø Home bringing

Some companies do offer an opportunity for the client to order list of what they offer through their website. Under Armour should follow similar suit to increase its gross revenue.

2.1 Web 2.0

Web 2.0 is of most considerable since it allows clients to interact with the administrator of a website or with other clients. Web 2.0 enables operation of applications such as wikis, social networks and web logos (Figure 3). Such applications offer clients with an interface where they can present feedback to the firm (Figure 12). Some of the main reasons for using Web 2.0 include

Ø Creating traffic to the website

Creating traffic to the site entails relaying information to clients who use wikis, society web or weblogs. Creating traffic allows for the growth of the firm and offers an opportunity for the business to receive feedback from the clients hence giving a chance of changing the design to suit client’s needs (Baesens et al. 2004, p. 504). Therefore maintains a long-term relationship with clients.

2.1.1 Importance or benefits of using Web 2.0 after implementation includes

Ø Provision of good user experience

Through good user experience, most clients will tend to purchase more products from the firm and remain loyal while promoting the trade name. Such moves reduce acquisition cost and increase gross revenue. The reduction in acquisition cost enables the business to produce more goods efficiently.

Ø User calculating power

Web 2.0 enhances cognition of the client and allows them to navigate easily on the website hence increasing their efficiency and revenue return to the company

Ø Useful

The Web enables clients to use other mediums such as societal web and interact with firms such as Under Armour. Both the business and the client stand to benefit from Web 2.0; the client can relay feedback to business whereas the company can communicate with the client and address most of the queries.

Ø Infrastructure and Technology

Web 2.0 highly depends on the technology and the substructure layout. For the network to work correctly, it will require a better substructure and engineering. Provision of server used in the process via sound technology that can generate servers which are elastic enough to allow for multiple operations by multiple users without redundancy and slowdown.

Ø Conceptual displacements

Conceptual displacements is one of the benefits associated with utilization of web 2.0

Ø Current events

Web 2.0 is underutilization by most firms as an existing platform for fast websites.

2.2 Understanding Customer life lifecycle

For a company to maintain the relationship between businesses and customer there is a need for knowledge of customer lifecycle (Figure 15). The customer life cycle involves various phases such as

Ø Reaching

Ø Acquisition

Ø Conversion

Ø Retention

Ø Loyalty

Ø Traffic

Ø Reaching

Reach is identified through percentage calculation of the potential market totals. The total number of clients visiting the website of the company falls under Reach. Identifying Reach is essential since it dictates the traffic flow at the site.

Ø Traffic

Traffic represents the number of clients who visit a specific website. Traffic can be expressed in the form of numbers and is mostly triggered by factors such as optimized engines, landing pages, online gross revenue and good user interface.

Ø Acquisition

In acquisition stage, the client or user responds to sensitization which occurred at the initial stage or Reach stage. The customer follows up on the brand, making calls to inquire more about the products or assist in the marketing of the brand. A well-designed website mainly facilitates the step.

Ø Conversion

Conversion is the actual purchase of the product from a selected website (Cutler and Sterne 2000, p. 4). The proposed Under Armour website should ensure the product display quickly and draws customer attention.

Ø Retention

Retention stage is more about encouraging the customer to repeat the purchase process. Most firms opt to offer additional services or products to one that already exists. Under Armour should intensify its relationship with clients to increase its lifetime value.

2.3 Better apprehension of clients

For assurance of customer loyalty, it is good for a firm to check on its clients. The company should understand how customers conduct their selection and purchase the merchandise. Most businesses that understand their customer behaviour make big sales and distribute their merchandise proportionately (Parvatiyar and Sheth 2001, p. 2; Samiee 1998, p. 5). Methods used in understanding customer behaviour include

Ø Gathering demographics

Involves gathering information on clients

Ø Age

Ø Gender

Ø Profession

Ø Interests

Ø Qualification

Ø Marital position

Ø Income

Gathering of demographic information may heighten gross revenue collection and assist firms such as Under Armour (Keaveney and Parthasarathy 2001, p. 371).

Ø Gathering of behavioural information

Information can be recorded through roll upping of operations performed by users when they visit the website. When users visit Under Armour website, the following action may be performed.

Ø Checking on how the clients searched for apparel at the website

Ø Checking on the monetary value

Ø Check on the discounts or special offers

Ø Addition or removal of merchandise from the site

Ø Checking for merchandise pictures at the site

Ø Gathering of attitudinal information

The attitudinal information is gathered through online studies, phones, electronic or mails. The information aids in cognizing the positions of the clients on the products and services that Under Armour provides.

2.4 Selling channels

Selling channels attract customers towards the company products and assist in cognition of the apparels.

Ø Television Commercials

Under Armour can advertise their products on television to increase their gross revenue.

Ø Internet

Advertising in cyberspace will grant Under Armour an opportunity to reach out people globally and increase their sales.

Ø Newspapers

The use of newspaper as an advertisement platform will target those individuals who purchase or read newspaper daily.

Ø Magazines

Currently, Under Armour witnessed a decline in a number of women customers purchasing clothes produced by the firm. The use of magazine as an advertising platform will assist in reaching out to women and other people who are not interested in sports or televisions.

2.5 Organic hunt engine optimization

Most customers prefer goods from companies whose website is on top in top listing of organic search engine. Under Armour, website upgrading should serve the same purpose. The most crucial section of traffic is the land page that comes from a hunt engine optimization. The new proposed website of Under Armour will hold specific search engines optimization to elevate traffic levels on the website (Figure 14).

2.6 Pay-per-click

Currently, most firms opt for pay per click mode of advertisement. In the mode, advertisers are paid when user click and view on an advert at the site. Through utilizing this mode of advertisement, Under Armour will increase the number of clients visiting their newly upgraded website