Question

As Under Armour expands into new markets with new product offerings, it must be sure to maintain-and maximize--its brand recognition and reputation. Help Under Armour develop and implement its brand strategy. In new global markets, Under Armour wants to focus on line extension to leverage their existing brand name and market strength. In Brazil, Under Armour's apparel and shoes are already big sellers and the only categories where they currently offer products. Two new product lines are under consideration to serve the large population of martial arts practitioners there. One is a line of moisture wicking compression shirts with extra strong stitching for durability. Another is a line of punching bags and punching mitts. Which product line should Under Armour pursue? a. New line of compression shirts b. New line of punching bags and mitts

Answer 1

Option, new line of compression shirts.

Reason: The company wants to leverage the existing brand name and already has a sizeable market share for apparels and shoes. Compression shirts is a part of apparel category and hence it will be easier to sell the shirts than the punching units.