Under Armour additionally used psychographics, which measure different lifestyles and social values (Kardes, Cronley, and Cline, 2020), in their marketing strategy through the focus of women empowerment and inner strength. Even more so, implementing market segmentation strategies means breaking down markets into demographic, geographic, psychographic, attributes/benefits and behavioral slices to better focus on the parts you want and need to . (Earned media) Under Armour identified their target market segment using demographics and psychographics. . In Under Armours case they want to expand the demographic of their consumers by exploiting the woman segment. In 2021, 39%, or $17.2 billion, came from North America, while revenue from the EMEA region totaled $11.5. Based on my segmentation, I would target the geographic top UK areas for young professionals focussing on the places with the highest average salaries. Exhibit 94: Under Armour Inc. - Business segments. Under Armour Market Segmentation In the case study Under Armour's Willful Digital Moves, two key segments are discussed; Men's Athletic Apparel and Women's Athletic Apparel. For instance by combining demographic and behavioral . "Market Segmentation divides the mass market into subsets of consumers who share common needs, characteristics, or behaviors, and then targets one or more of those segments with a distinct marketing mix" (Kardes. To help increase sales and market share, a new campaign called "I Will What I Want" was created to target only women in the $277 billion health, fitness and weight loss industry (Under Armour's Willful Digital Moves, 2016). Strategic Issues= primarily leading to do with the fit of the segments needs to corporate philosophy and intended positioning. Segmentation. According to Fabian Ae, Under Armour's wholesale director, TRENDER has given their team insights into their brand's performance within a larger e-retailer space. (Iacobuci,2013) Under Armour's target are the athletes, "To make all athletes better through passion, design and the relentless pursuit of innovation. The combination of these segmentation bases and a creative approach to the campaign resulted in $15 million, a 28% increase in women's sales and a 42% increase in traffic to UA.com, which made it "the largest global women's marketing campaign Under Armour had ever run." (Darden, 2016). They also provide apparel created for both warm and cold climates, so no . Under Amour ventured into the female market segmentation bravely after witnessing fellow competitors fail to engage with . I would propose a social media campaign for Under Armour titled '#GetSmart' which would promote Under Armour's smart wear at smart young professionals aged 21-30. Discover all relevant statistics and facts on Under Armour now on statista.com! In Under Armours case they want to expand the demographic of their consumers by exploiting the woman segment. The four segments to consider were demographic (age, income), psychographic (lifestyles, personalities, and values), behavioral (purchasing conversion rates), and geographic (areas more apt to relate) to capitalize on women's fashionable sporting apparel. Under Armour was created in 1996 and originally targeted the football -guy image with football pads and shirts to be worn under football gear. Under Armour analysis focuses on four segmentations, Demographic, Geographic, Psychographic, and Behavioral. They inspired women to feel apart of something bigger and emotionally connecting with the brokenness in all of us. Competitive and Segmentation Analysis: . From our Project Rock collection, UA HOVR Machina, Phantom 2, and Breakthru footwear offerings to the Meridian pant, Infinity sports bra, and award-winning UA Sports Mask - we drove hard against our innovation agenda in 2020. Segmentation is the process of looking at your market and dividing them into groups. After reading the case study "Under Armour's Willful Digital Moves," the market segments that Under Armour targets is athletic clothing for both men and women. Once again referring to their first campaign advertisement, they use ballerina Misty Copeland's powerful story of . Under Armour went public in 2005. Market Uncertainties - The recent events have devastated Under Armour's revenues. Targeting women specifically would fall under niche segmentation. Demographics can have multiple classifications, such as gender, age, household type, and an individual's income level (Flexibility, 2017). What is geographic segmentation? Quantitative issues= size of segment, profitability and growth. Under Armour began marketing towards male collegiate athletes between the ages of 17 and 23; however, they have expanded their target market to include men, women, and youth. They identified their need to break into the female segment and chose to do so by using emotion to attract women to the Under Armour brand. Global Outdoor Jackets key players include Nike, Adidas, Under Armour, PUMA, Sketchers, etc. Strategies used were a combination strategy of demographic, psychographic, and behavioral. Geographic segmentation is a dividing the geographical units such as nation, region, states, counties, cities, or even neighborhoods. There are many strategies for companies to position their brand. Under Armour 's North America revenues increased for the first time in a year, showing signs that the company's efforts to turn around its . Segmentation strategies that Under Armour has implemented include differentiated segmentation and niche segmentation. Gone are the days of mass marketing. In the case study article, what market segments were identified and what segmentation strategies were implemented? SPX. Under Armour's operating income worldwide 2008-2021 Revenues of the leading companies in the sporting goods retail sector in Germany 2020 U.S. retail sales of outdoor products in 2019, by type . In 2013, Under Armour had amassed its sales revenue to $2.3 billion. 1 Global Oral Mucositis Drugs Annual Sales 2017-2028 2.1.2 World Current and Future . This campaign using these celebrity female athletes created a lot of discussion on Social Media which in turn benefitted Under Armour. Launched in 2020, the service provides consumer insights on geographic segmentation, buying behavior, and pricing preferences through interactive dashboards with filterable views. Exhibit 39: Market share by geography 2020-2025 (%) 9.2 Geographic comparison. It works on the principle that people in that location have similar needs, wants, and cultural considerations.By understanding what people in that area require, brands can target more relevant marketing messages and . In the case study article, what market segments were identified and what segmentation strategies were implemented? (Murray, 2017) It was then that owner Kevin Plank made it a goal to better capture the women . More than 10,000 employees are a part of the organization globally. 10. Once again referring to their first campaign advertisement, they use ballerina Misty Copeland's powerful story of . Adidas had segmented their product in urban and urban cities that contains a certain large size of population in order to make their target more successful. Try our corporate solution for free! The product was a hit among college and NFL athletes and the company began to grow. Among both men and women, Nike is in the lead in innovation, named by 42% of men and 39% of women as most innovative. In 2007, they opened their first branded retail store in Annapolis, Maryland. Under Armour additionally used psychographics, which measure different lifestyles and social values (Kardes, Cronley, and Cline, 2020), in their marketing strategy through the focus of women empowerment and inner strength. Market segments identified and the implementation of segmentation After careful analysis of the case study article, the market segments that are identified is the athletic wear meant for both women and men which Under Armour identifies. In 1998, they moved to a new headquarter and warehouse in Baltimore. Additionally, we passed one million . What primary segmentation approach is being executed? Geographic is another big one, a company that sells plows isn't going to target consumers who live in warmer climates like Florida or Alabama. The demographic segmentation of this market is wealth, all age groups, mostly male, athletes and sport . 2. What is Segmentation? Under Armour's demographic segmentation has changed over the years. Relatively new company with limited stores and presence in few markets. Data based segmentation on consumers Demographics = gender, age, stage in household, lifestyle etc. Under Armour is available through our website, www.underarmour.com . Exhibit 95: Under Armour Inc . We know that the demographic base was gender specific with a target on females. 2014). Under Armour's segmentation & strategy. By gathering insights about the market and segmenting effectively, Under Armour was able to build a profitable and competitive brand. The global Outdoor Jackets market was valued at USD 28610 million in 2020 and is expected to reach USD . age, gender etc), geographic, behavioral (e.g. 3) Behavioral Segmentation. Exhibit 95: Under Armour Inc . The YouTube ad went viral with 4 million views in the first week", (Murray & Saghian, 2016). B. . Now, Under Armour surpasses Adidas, it has moved from the number-three spot in the U.S. sportswear market to the number-two spot (Murray & Saghian, 2016, p.3). In the case of Under Armour, the company decided to target the market segment of women. A strikingly large amount that put them firmly in competition with industry leaders such as Nike and Adidas. Under Armour entered this segment too, but is still working to keep the viral momentum. Under Armour Weaknesses. Under Armour Inc. is a multinational firm founded in 1996 by Kevin Plank which sells sports shoes, accessories and apparel. The first ad with Misty Copeland was run on a multichannel platform, with social media at its core (Saghian and Murray, 2016). Under Armour stays in the competition by having . Under Armour's stock falls after removal from the S&P 500 . Here are the weaknesses in the Under Armour SWOT Analysis: 1. They still focus on marketing and selling their products to consumers for use in athletics, fitness . Segmentation allows a company to group a large diverse market into subgroups . Running head: SPORTSWEAR MARKET SEGMENTATION Under Armour Market Segmentation in Singapore Author Note Table of 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 . demographic segmentation geographic segmentation benefit segmentation; Question: Under Armour few years ago moved into a new opportunity/new market segment -- marketing women's apparel attempting a frontal attack against Nike, Adidas and Lululemon. Under Armour is facing an identity crisis. Skip to main content. View Test Prep - marketing final.docx from MGMT 542 at Royal Roads University. (212) 419-8294. vianny.gutierrez-cruz@statista.com. Posted: (5 days ago) The Fitness App industry is projected to grow from USD 5.1 Billion in 2021 and to reach USD USD 15.2 Billion by 2028, at a Compound Annual Growth Rate (CAGR) of 17.6% during the forecast . Under Armour is a pioneer of performance apparel. Nearly sixteen thousand of those retail stores are located in the United States. Plank was looking to provide athletes with a garment that would wick away sweat and "wouldn't get gross" (Baer, 2015). Geographic is another big one, a company that sells plows isn't going to target consumers who live in warmer climates like Florida or Alabama. Launched in 2020, the service provides consumer insights on geographic segmentation, buying behavior, and pricing preferences through interactive dashboards with filterable views. But, how did Under Armour break through the giants of sports apparel Adidas, Nike, Puma etc? The age group of 0-10 only consumes 10% of the Their clothing is designed to keep athletes cool and dry throughout a game, practice, or even a workout without adding significant weight or feeling restrictive. The segmentation strategies used were differentiated segmentation and . AEO. Under Armour entered the footwear business in June 2006 with the launch of football cleats. Under Armour's stock falls after removal from the S&P 500 . Market segmentation is beneficial for businesses . The global Outdoor Jackets market was valued at USD 28610 million in 2020 and is expected to reach USD . attitudes, benefits, motivation and personality). Seventeen years later, they turned their target to a market segment that had gotten little-to-no recognition, but would prove to be very beneficial for the company - the female population. In this blog we have been asked to determine how to identify different types of market segments and consider the best marketing strategies for reaching them through the uses of the case study. An effective segmentation strategy is foundational for building a strong brand. frequency and quantity of purchases) and psychographic (e.g. Geographic Segmentation Under Armour's geographic segmentation is not confined to the United States alone, their products are offered in over twenty thousand retail stores world-wide. I also have four key points to remember when implementing this strategy: 1) Be specific with your target market. that targets more specific people groups through their activities. Under Armour's Segmentation Strategy Under Armour was founded in 1996 by Kevin Plank. What primary segmentation approach is being executed? Demographic segmentation is a factor used by Nike to target individuals according to their age, life-cycle stage, gender, occupation, and generation. (Kardes, Cronley, Cline, p 45, 2013). Under Armour Inc. is gaining favor with an older crowd of shoppers, according to the most recent athletic survey from B. Riley. If uncertainties persist, Under Armour loses even more. In marketing, firms adopt various strategies to satisfy the needs of their consumers. The demographic segmentation of this market is wealth, all age groups, mostly male, athletes and sport . Even more so, implementing market segmentation strategies means breaking down markets into demographic, geographic, psychographic, attributes/benefits and behavioral slices to better focus on the parts you want and need to . Under Armour Inc. VF Corp. . Although with apparel and sports the market can be broad, for the most part Nike primarily targets consumers who are between the ages of 15-40. Our current price estimate for Under Armour has priced in a high annual growth rate of ~20% for this market till the end of our forecast period. Demographic, Geographic, Psychographic, Behavioral, and Combination- knowing and understanding your target market is essentially the first step in success selling. Nike Geographic Segmentation. Under that women and men diverge in opinions. Exhibit 94: Under Armour Inc. - Business segments. Exhibit 39: Market share by geography 2020-2025 (%) 9.2 Geographic comparison. which centers on Under Armour's. "I Will What I Want . 9.1 Geographic segmentation Exhibit 39: Market share by geography 2020-2025 (%) 9.2 Geographic comparison . Competitive and Segmentation Analysis: . Yet still, only $500 million of their sales were from women's apparel. In the year 2013, it experienced massive sales from the muscular men wear, and a relative amount of money In the Under Armour case study article, Under Armour identified women and women athletes as their next market segments. We began shipping our line of baseball and softball cleats in the fourth quarter of 2006 and entered non-cleated footwear in May 2008 with the launch of performance training footwear. The market segments that were identified were focused on women and the growth of women's apparel in the company. Women rank Under Amour as number . Geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. In the Under Armour's Willful Digital Moves article it dives into how the athletic company Under Armour took their brand to a whole new level through focusing its marketing efforts solely on a vaguely capitalize female market segmentation in the sporting goods industry. Nike earned $8.3 billion from Greater China, $8.3 billion, and $5.3 billion from the LATAM and APAC regions. Under Armour analysis focuses on four segmentations, Demographic, Geographic, Psychographic, and Behavioral. "We would note that Under Armour . Demographic-based segmentation is the most popular segmentation because they are easy and inexpensive to measure (Kardes, Cronley, & Cline, 2013). They lack in woman sales so want to make a strategy to help reach the woman consumers. Under Armour. Running head: Market Segmentation 1 Under Armour was established as a company in 1996 by founder and Chief Executive Officer (CEO), In 2013 Under Armour launched a market campaign called, "I Will What I Want" on a multi-channel platform, with social media as it's main source (Saghian & Murray, 2016). Geographically Under Armour aims for worldwide buyers, focusing its targeted market on athletes and active life styles. They lack in woman sales so want to make a strategy to help reach the woman consumers. Whether the brand received praise or backlash from the campaign ads it got people talking and buying Under Armour's clothing due to the success of the campaign and how it implemented segmentation strategies. Explore the five specific ways that markets can be segmented in order to create successful sales opportunities, including behavioral, psychographic, demographic, and geographic segmentation . Communications Objectives. Watch on Under Armour had accomplished the ideal marketing segmentation strategy by celebrating women "who had the physical and mental strength to tune out the external pressures and turn inward and chart their own course". 9.1 Geographic segmentation. September 18, 2017 ashleydembosz. Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour products were positioned as . Behavioral segmentation is different from the other market segmentations because the data you collect is based directly on consumer behavior. -4.01%. View Assessment 3 - TII from MBA FP 6012 at Capella University. The company has annual revenues in the range of $5 billion. The gender and age must be viewed by Under Armour as a key selling point. Copy Link. However, if the actual growth rate were to trail . Brand partners such as Under Armour, an American sports equipment company, also leverage Zalora's insights through TRENDER Professional, a data solutions service. Under Armour looked to strengthen its numbers, in women's apparel, striving to go above the $500 million out of $2.3 demographic segmentation geographic segmentation benefit segmentation; Question: Under Armour few years ago moved into a new opportunity/new market segment -- marketing women's apparel attempting a frontal attack against Nike, Adidas and Lululemon. Different aged people demand different products and Under Armour has produced certain merchandise to appeal to each category. Under Armour's $15 million I Will What I Want campaign was the largest global women's marketing campaign Under Armour had ever run. Darden Business Publishing - University of Virginia. Under Armour launched in 1996 with the simplistic idea of providing a better fabric for athletes to wear, something that would keep them cool and dry. The most common segmentation variables are: demographic (e.g. Under Armour and Market Segmentation Market segmentation is the action of further separating the mass market into smaller groups of individuals who share common interests, hobbies, characteristics, behaviors, or needs (Kardes, Cronley & Cline, 2013). So, in the article we noticed that Under Armour initially marketed to male football players, then . Global Outdoor Jackets key players include Nike, Adidas, Under Armour, PUMA, Sketchers, etc.
