Under Armour was created in 1996. The company created a technology to manufacture breathable material to replace cotton materials found in sports gear. By 2013, the company began to manufacture shorts, shoes, hats, and other athletic gear with their technology. With much success, the company analyzed that out of their $2.3 billion in sales that only $500 million was from women’s apparel.
In the case study article, what market segments were identified and what segmentation strategies were implemented?
The “I Will What I Want” Campaign launched in 2013 and was “largest global women’s marketing campaign Under Armour had ever run” (University of Virginia, 2016). The main segment primarily focused on the empowerment of women through American Ballet Theatre ballerina soloist Misty Copeland and her story. The segmented strategy used here was gender demographic and decision makers. The target audience is female and UA has identify which age group are going to make purchasing decisions based their campaign strategy. This information will allow the company to better allocate their marketing budget to efficiently converting customers.
What do you believe are four to five key points to remember when implementing segmentation strategies?
When implementing segmentation strategies, there are a few things to keep in mind:
- Know your target audience. When Under Armour created their “I Will What I Want” Campaign, they most likely did research to analyze their target audience. Using the information they gained from their research, they created a campaign with a figure and story that matches their new products’ image.
- Test your product with your audience. Most likely Under Armour conducted surveys with women to see if they like their product before they created an ad campaign. You need to let your subject group test your product to learn more about your target audience. Through their use of the product, you can find what key features stand out to your group.
- Take advantage of social media and influencers. Depending on the segmentation strategy, you can easily target a demographic of people directly through influences. When consumers recognize your brand and associate it with their idol, they are more likely to purchase your product. There exists a unique connection between consumers and influences.
- Segment your audience into organized, managed groups. This is a key point because it allows a business to “predict where your products and services are most wanted, allowing for better customer experiences, loyalty, and niche marketing” (CMG Consulting, 2020).
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?
Drop shipping has recently been a new trend I’ve noticed in the market. These business owners find products on Alibaba and conduct in-depth SEO analysis through Alexa for key words online to create a segmentation strategy to reach a new market. Once they’ve found their niche product, they’ll create ads around their product for their demographic. These ads are played all over social media and through Google Ads. I’ve watched many videos on how to create a segmentation strategy for Drop Shipping on YouTube. I think this is a market segment I would like to explore in the future.
CMG Consulting. (2020). Market Segmentation Strategy | CMG Consulting. Cmgconsulting.Com. https://www.cmgconsulting.com/post/market-segmentation-strategy
University of Virginia. (July 27, 2016). Under Armour’s willful digital moves. Harvard Business Review; Darden Business Publishing. https://services.hbsp.harvard.edu/lti/links/content-launch