"Under Armour Signs Groundbreaking Deal With Tough Mudder"

From Forbes

Review by Joe Gochenour in KIN 435 (section 1)

In this article, Under Armour signed a two-year deal worth 2-3 million dollars with Tough Mudder to be the official clothing company as well as advertising throughout their events. This sponsorship gives Under Armour exclusive rights to all apparel and footwear for this hot company that is on the rise.

Tough Mudder was created in 2010 by Harvard graduate Will Dean, and has grown consistently into 2011 and is expected to have continued growth into the future. In 2010, they started the event with 3 races total and brought in a total of 3 million dollars. Following up 2010, in 2010 they brought in 16 million dollars and are expecting to continue by adding new markets into 2012 and expanding.

One of the biggest drawing points for Tough Mudder is there contribution to the Wounded Warrior Project. In 2010, they raised 482 thousand dollars towards this charity. Many people associate this event with the WWP that draws many new competitors as well as veterans who see their entry fee going to a good cause. Forbes has Tough Mudder as one of the top upcoming businesses to watch for.

This new partnership that was created is certainly a win-win situation for both companies. The Tough Mudder is an intense event that takes training and dedication to do. Under Armour saw this opportunity to expand and reach a market in training gear for those looking to rise to this challenge. If you look at Under Armour’s website, they have multiple specialized pages dedicated to Tough Mudder. They offer all types of apparel and footwear for those training, competing, as well as spectators and on-lookers.

Under Armour has created a unique marketing advantage by joining with Tough Mudder being the exclusive provider for this event. Tough Mudder has grown from three races, fifteen races and is planning on thirty-two events in 2012. As this event continues with growth, more Tough Mudder and workout enthusiasts will be looking to Under Armour as their go-to for their fitness needs.

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Review by Katie Minter in KIN 435 (section 1)

Tough Mudder is one of the hottest growing companies in the world that holds endurance races over obstacle courses. Forbes magazine has names Tough Mudder one of the top “Names you need to know” for up and coming businesses. Tough Mudder started out in 2010 with only three events, and in 2011 grew to 15 events. In 2012, Tough Mudder expects to hold 32 endurance events, mostly in the United States. Event participation may reach close to 500,000 and Tough Mudder’s revenue is expected to be around 25 million dollars in 2012. With the tremendous success of Tough Mudder, they signed a two to three million dollar agreement with Under Armour, to represent the first endurance event sponsorships. This deal gives Under Armour the exclusive rights to be the only apparel and footwear provider for the Tough Mudder events.

Under Armour and Tough Mudder have agreed to do a promotion for the endurance events, in which Under Armour will provide a variety of different gear for participants, spectators, and those training for Tough Mudder events. This promotion will provide many opportunities for both companies. Under Armour will benefit from this deal because these events will create new areas for Under Armour to sell their product, they will have an opportunity for those around the endurances events to become familiar with their product, and they will have a chance to gain new customers. Tough Mudder will benefit from this deal because they will now be sponsored by a well-established company that will nicely compliment Tough Mudder and help expand interest in the endurance events.

I think that Tough Mudder made an excellent marketing decision to sign a deal with Under Armour. This deal is a win-win situation for both companies because they complement each other well and will help define what image a customer considers when they see or hear Under Armour and Tough Mudder. This deal will help increase interest and participation with endurance events, and also help Under Armour gain a higher market share in sporting apparel and footwear. I think in the future when a customer considers Under Armour, they will think about extreme endurance and team work and Under Armour will be proud of that image.