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2-1 Blog: Under Armour

 Where Do We Go From Here?

QUICK BACKGROUND:

(image found at: https://www.marketingweek.com/under-armour-ties-with-htc-to-take-on-nike/)

Under Armour was founded in 1996 and started as a company that made breathable undershirts for athletes - primarily football players and majoritally male; by 2013, they "expanded to shorts, shoes, and even hats, and was already a success within the men’s athletic-wear market, competing with powerhouses such as Nike and Adidas" (Saghian & Murray, 2016).

IN THE CASE STUDY ARTICLE, WHAT MARKET SEGMENTS WERE IDENTIFIED AND WHAT SEGMENTATION STRATEGIES WERE IMPLEMENTED?


The primary market segment that was identified were athletes and then the more specific market segment they were beginning to focus on was women. The company had dabbled in creating female lines; however, "in 2013, Under Armour had $2.3 billion in sales yet only $500 million came from its women’s apparel" (Saghian & Murray, 2016). Under Armour was ready to change this and wanted to officially launch campaigns to target women with their “I Will What I Want” campaign. The  main segmentation strategy that was implemented by Under Armour was concentrated niche segmentation. This is because the company was focusing its marketing on just one specific segment - which would be the women athletes instead of their usual all male athletes or just all athletes in general.

WHAT DO YOU BELIEVE ARE FOUR TO FIVE KEY POINTS TO REMEMBER WHEN IMPLEMENTING SEGMENTATION STRATEGIES?

(image found at: https://www.educba.com/market-segmentation-strategies/)

An article titled Market Segmentation: You’re Doing It Wrong - written for Active Marketing - has a plethora of tips when it comes to implementing segmentation strategies. The article has a specific section that talks about 4 simple rules for market segmentation and I think they translate well into key points to remember when implementing segmentatino strategies. These four rules are:
  1. "Don’t define your segments too broadly. This will give you a greater opening to a competitor who targets more narrowly.
  2. Organize your business by market segments. Many begin by establishing market-focused teams or groups which later get organized into a market-focused business model.
  3. Manage your segments globally. Sometimes regional organization can set you up to be blind-sided later by a more dynamic global economy.
  4. Complete your analysis and research (strategic market segment portfolio), then be bold about attacking those segments" (2020).
The first rule rings true to Under Armour. They were too broad in their marketing - taking all athletes. Because of this, competitors like Nike and Adidas stole the majority of female consumers because they were marketing to a more narrow segment. Under Armour saw this and flipped their marketing towards specifically women to increase those sales. Number four is also important because it tells you do not just pick your marketing segments - actually go out there and attack (market to) them!

IDENTIFY A NEW MARKET SEGMENT THAT YOU HAVE NOTICED RECENTLY (DURING YOUR OWN SHOPPING EXPERIENCE ONLINE, IN A COMMERCIAL AD, OR IN A SECONDARY RESOURCE SUCH AS A MAGAZINE) THAT YOU BELIEVE WOULD BE A GREAT MARKET TO EXPLORE. HOW MIGHT YOU CREATE A SEGMENTATION STRATEGY TO REACH THIS NEW MARKET SEGMENT?

(image found at: https://abcnews.go.com/Health/crowded-gym-january/story?id=27884425)

Covid-19 put an aburpt stop to the world we knew. It caused the closure of schools, malls, jobs, stores, gyms, and so on. Companies had to learn to flip their entire business structure as well as marketing plans. Many avid athletics and gym buffs did not/do not have to worry about gym closures because they have workout items at home as well as know other at home workouts. However, your average casual gym gower is not going to have these items at home or much knowledge for at home workouts. Thus, bringing out the market segment for people aged 19-35 looking to lose weight - or simply maintain weight - safely during a pandemic. This market segment would need to either be marketed to a safe gym or a safe gym alternative - like a at home virtual workout program. The best strategy to reach this new market segment would be concentrated niche segmentation, just like what was done for the Under Armour campaign, as they are focusing on marketing to one specific market. This way the market segment feels like they are specifically being talked to and advertised to to make the purchase.


References

Market segmentation: You're doing it wrong - examples & tips. (2020, June 12). Retrieved March 14, 2021, from https://www.activemarketing.com/blog/strategy/market-segmentation-youre-doing-it-wrong/

Saghian, M., & Murray, M. (2016). Under Armour’s Willful Digital Moves. Darden Business Publishing University of Virgina




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