Under Armour’s Willful Digital Moves

Under Armour's shift to targeted marketing and digital campaigns illustrates the impact of precise market segmentation. Initially targeting the men's athletic wear market and later engaging women with the impactful "I Will What I Want" campaign, the brand demonstrates how tailored strategies to distinct segments can enhance growth and loyalty, highlighting the crucial role of understanding diverse consumer needs in driving success.

Read the case study here: Under Armour’s Willful Digital Moves

Identified Segments and Strategies

The case study of Under Armour and its willful digital moves identified two market segments, one of which the company was built on. The first segment that Under Armour identified was the men’s athletic wear market. Initially, Under Armour focused its marketing efforts on men wearing sweaty cotton shirts, often worn under football pads, while exercising. The strategies Under Armour used to target men in the sportswear market were tailored to appeal to men by utilizing popular athletes. Messaging and advertisements were geared to appeal to the tough football or muscle head gym goers and positioned the apparel as more modern and innovative than competitors’ cotton shirts.

However, the founder of Under Armour, Kevin Plank, noticed an opportunity to grow its market share by targeting the female athletic wear market when he believed he could do better than competitors’ previous attempts. Plank and his team decided to launch the “I Will What I Want” campaign. At $15 million, this would be Under Armour’s largest campaign targeted to women. The strategies used by Under Armour were to understand the female audience and tailor the marketing mix to appeal to them accordingly and focus on emotional appeal. For example, using unlikely female celebrity endorsements such as supermodel Gisele Bündchen and ballerina Misty Copeland depicts these women overcoming negativity and rejection in the case of Copeland. Fremar stated that the campaign’s overall goal was to celebrate women “who had the physical and mental strength to tune out the external pressures and turn inward and chart their own course” (Harvard, 2016).

Points to Remember When Implementing Segmentation Strategies

Implementing segmentation strategies effectively requires careful planning and execution and starts with understanding and anticipating your customer’s needs and wants (Kardes, 2020). Here are four to five key points to remember when implementing segmentation strategies:

Understand Your Audience: Thoroughly research and understand your target segments’ characteristics, needs, and behaviors. This involves collecting and analyzing data to create accurate customer personas.
Segmentation Criteria: Define clear and relevant segmentation criteria. This could include demographics (age, gender, income), psychographics (lifestyle, values, interests), geographic location, or behavioral factors (purchase history, online behavior).
Market Research: Conduct comprehensive market research to identify emerging market segments. To spot new opportunities and stay updated with industry trends, competitor strategies, and customer feedback.
Tailored Marketing Mix: Develop a customized marketing mix for each segment. This includes product/service customization, pricing strategies, promotion channels, and distribution methods that align with each segment’s specific needs and preferences.

Now, let’s identify a new market segment and discuss how to create a segmentation strategy to reach it:

New Market Segment: An emerging market segment I’ve noticed recently is “Sustainable Shoppers.” These are consumers who prioritize eco-friendly and sustainable products and are willing to pay a premium for them. They are environmentally conscious and make purchase decisions based on a company’s commitment to sustainability.

Segmentation Strategy:

Market Research: Start by conducting in-depth market research to understand the Sustainable Shoppers segment. Identify their demographics, such as age, income, location, and psychographics, including values, beliefs, and behaviors related to sustainability.
Product Customization: Develop or source sustainable and eco-friendly products that align with the values of Sustainable Shoppers. Ensure that your product offerings meet their expectations for quality and environmental responsibility.
Pricing Strategy: Given that this segment is willing to pay a premium for sustainable products, price your offerings competitively while still reflecting their value. Highlight the long-term cost savings and environmental benefits.
Marketing Campaigns: Create marketing campaigns that emphasize your company’s commitment to sustainability. Use eco-friendly packaging, showcase certifications (e.g., organic, Fair Trade), and tell your brand’s sustainability story through various marketing channels.
Distribution Channels: Choose distribution channels that align with the preferences of Sustainable Shoppers. Consider selling through eco-friendly stores, online marketplaces dedicated to sustainable products, or directly from your website.
Consistent Messaging: Maintain a consistent message throughout your marketing materials, website, and social media channels, emphasizing your commitment to sustainability, your product’s eco-friendliness, and how it contributes to a greener world.
Feedback and Adaptation: Continuously gather feedback from this segment and adapt your strategies accordingly. Stay updated on the latest sustainable trends to ensure your products and marketing strategies remain relevant.

By following these steps and tailoring your marketing efforts to the Sustainable Shoppers segment, you can effectively reach and engage with this new market and potentially build a loyal customer base.

What new market segments have you noticed while shopping?

Let us know in the comments below!

References

Harvard. (2016, July 16). Under Armour’s Willful Digital Moves. https://services.hbsp.harvard.edu/lti/links/content-launch

Kardes, F., Cronley, M., Cline, T. (2020, November 24). Consumer Behavior, 2nd Edition. [VitalSource Bookshelf version]. Retrieved from vbk://9781305161689

Share the Post:

Digital Media: A Day in the Life

Gone are the days of waking up to rooster crows and reading the morning paper with coffee. Today, our mornings start with a barrage of alarms from our phones, and instead of newspapers, we’re scrolling through emails, checking the weather on Google, and catching up on the news via apps—all before our first cup of coffee. Amidst the digital whirlwind, we navigate through a mix of useful notifications and the occasional social media envy.

Consumer Who? Consumer You!

Diving into the world of consumers, we find ourselves in a maze of choices, where every turn is a decision between necessity and desire. At the heart of it, we’re either organizational giants making bulk buys or individual shoppers, each with our quirks, hunting for the next best thing. Picture me as your everyday consumer detective, sifting through the clutter of the marketplace, armed with research and a keen eye for bargains. Yet, like any good story, there’s always that twist – the unexpected impulse buy that even the most rational among us can’t resist.