Under Armour's Segmentation Strategies


    Consumers today consistently support brands that align not only with their values and beliefs but also with their personalities and lifestyles (Babin & Harris, 2021). Market segmentation is essential for organizations to attract consumers with shared values and deeply connect with them by meeting their wants and needs. Babin & Harris (2021) define market segmentation as dividing a market into groups based on the distinct demand curves associated with each group. With the implementation of market segmentation strategies, Under Armour was able to surpass some of the biggest sportswear companies in a short period (Under Armour's Willful Digital Moves, 2016). 

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Market Segmentation

    Under Armour utilized demographics, psychographic, and behavioral market segmentation to better attract its target market and quickly become one of the top sportswear companies in the world. The article Under Armour's Willful Digital Moves mentions the various market segments Under Armour targeted to become the billion-dollar company it is today; these market segments include:

  • Women
  • Athletic Men
  • Fitness Junkies

By executing influencer marketing campaigns targeting women, Under Armour increased its women's apparel sales by over 25% in 2014 (Under Armour's Willful Digital Moves, 2016). This strategy is similar to how Under Armour targeted the fitness and athletic men, which are stable and unique market segments.

Key Points When Implementing Segmentation

    Gavett (2014) mentions some important characteristics when implementing segmentation.

  1. Sustainability - The segments targeted must be sustainable instead of small.
  2. Accessibility - The company must effectively and adequately communicate with the market segment.
  3. Stability - Targeted segments must be stable and exist for long periods of time. This often means avoiding segmenting markets by behavior, which is constantly changing for consumers.
  4. Actionability - Companies must ensure that their products or services suit the targeted segment.

New Market Segment

    A new market segment that would be significant to explore is fitness enthusiast parents. These individuals have kids involved in sports and often play sports themselves. They are competitive and will go to great lengths to ensure their children's success. They are social with a high online presence and enjoy joining communities with fellow parents.

How to Target

One might create a segmentation strategy to reach this new market segment by:

  • Gathering Customer Data: You can use surveys or interviews to collect insights into customer behavior, such as spending or former purchases.
  • Research Audience Behaviors: Gather data that conveys how the target audience will learn, view the products, and interact with others.
  • Create Buyer Personas: A fictional persona for the target market can help pinpoint the relevant sub-groups within the audience and determine what type of consumers to focus on during the segmentation strategy.
  • Review Profit Potential: Ensure the new segment has the potential to generate more profit than current segments.
  • Study Competitors: Study the competition and formulate ways to make your brand stand out (Indeed Editorial Team, 2024b). 

References

Babin, B. J., & Harris, E. (2021). CB (9th ed.). Cengage Learning US. https://mbsdirect.vitalsource.com/books/9798214339405

Indeed Editorial Team (Ed.). (2024b, August 18). Market Segmentation Strategies: 11 Ways to Choose Yours. indeed.com. Retrieved November 13, 2024, from https://www.indeed.com/career-advice/career-development/segmentation-strategy

Under Armour’s Willfful Digital Moves. (2016, July 27). Darden Business Publishing University of Virginia. https://learn.snhu.edu/d2l/le/content/1754445/viewContent/36171913/View 

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