One of the best ways to gain marketing insights is to view case studies about how other companies have used marketing strategies and consumer behavior knowledge to boost market share. Under Armour’s Willful Digital Moves is a prime example of a case study that marketers should read. The case study allows marketers to understand that knowing how to identify market segments, and key points when implementing segmentation, and then implementing segmentation strategies for new segments.
Identifying Segments and Segmentation Strategies
Let’s consider the Under Armour case study. During their first two decades Under Armour became an almost 4-billion-dollar business but mainly marketing to men. In 2013 Under Armour decided they wanted to grow their market share in certain segments and decided to target women with a more straightforward approach. Using a campaign specifically geared toward women who possessed the “physical and mental strength to tune out external pressure” (Darden, 2016).
Under Armour targeted this demographic of female sports enthusiasts by implementing an advertising campaign that spoke directly to them. The campaign slogan “I Will What I Want” spoke of female empowerment, as Copeland said in her own words. This strategy allowed Under Armour to use both demographics and psychographics to create a winning campaign. (Watch the commercial here.)
Like many women, I was told that I wasn’t good enough and that I couldn’t succeed, but I willed myself to where I am now. I think that’s a message that resonates with all women. Success isn’t handed to us: we earn it.
Ballerina Misty Copeland, Time Magazine (Dockterman, 2014)
4 Segmentation Key Points to Remember
- One Size Does Not Fit All
Marketers should view segmentation strategies as a Venn diagram. While it is obvious people fall into certain segments based on their demographics and psychographics, those are not the only segments that they are in. More often than not people will fall within multiple segments and those segments may overlap with other audiences. Under Armour realized this by adding a marketing campaign that targeted a new segment, rather than just sticking with campaigns targeting men (Darden, 2016).
- Majority Fallacy
This “fallacy” states that the largest segment may not be the most profitable due to competition. While it might be pertinent to have products within the largest fallacy, don’t put all your eggs in one basket as they say. But you must also be careful not to spread the marketing so thin that you cannot design and implement a worthwhile campaign. With the expansion from just active wear to “shorts, shoes, and hats” Under Armour took notice of this and diversified their offerings (Darden, 2016; Kardes, 2020-11-24, p. 44).
- Cannibalization
It is important to remember not to offer identical products within the same market or you risk cannibalization. Cannibalization happens when you have two products competing for the same consumer’s dollars. The business will be using more money to package and brand two products but only receive the profits and margin on one of them. Creating variations of already established products that directly compete with competitor products is better than cannibalizing your profits. However, when it comes to marketing you have to establish the differences, benefits, or features that are different between your products (Darden, 2016; Kardes, 2020-11-24, p. 45).
- Demographics and Psychographics
Another thing to remember when it comes to segmentation is that demographics and psychographics assist with creating segments. The data from demographics, psychographics, geography, and behavior can be used to create specific segments from differentiated segmentation down to micromarketing. Use this data to inform and device, not as a specific segmentation in its own right. As with Under Armour’s “I Will What I Want” campaign, they took into consideration the demographics and psychographics of women and women athletes and decided to pursue those strong-willed athletic women who thrive on perseverance (Darden, 2016; Kardes, 2020-11-24, p. 43).
Under Armour: Where Do They Go From Here – A New Market Segment
Sticking with Under Armour, I think one segment of the activewear industry they should target is the older and/or retired market. While their active wear may already work for older audiences it is not marketed toward them currently. Using tools like Claritas 360 or VALS could give insights into certain segments of older retired individuals who have active lifestyles participating in activities such as walking, golfing, and pickleball. They most likely live in suburbs, exurbs, or even penturbia. They could be married, widowed, single, or even dating. Their financial status is most likely fixed incomes or retirement pensions. Due to these demographics and psychographics, this older segment may live more active lifestyles due to extended free time and the goal of maintaining health (Kardes, 2020-11-24, p. 48).
This target segment might only see Under Armour as a younger brand which they may be ridiculed for wearing. Taking the “I Will What I Want” campaign formula and transitioning it to something similar but geared toward empowering the older demographic could assist Under Armour in maintaining that young brand feel but not alienating the older individuals.
Instead of featuring well-known or popular figures in their marketing campaign, Under Armour could showcase everyday older individuals engaging in their favorite activities. One concept for a video advertisement could involve a gathering of younger people playing pickleball, all wearing Under Armour active wear. As this unfolds, a narrator could convey the message that regardless of your age, whenever you’re out embracing an active and joyful time with friends or family, you will feel young at heart. As the narration ends and the game wraps up, with people either departing or exchanging handshakes, the youthful participants transition into their older counterparts. The Under Armour logo emerges alongside a motto akin to “Embrace Youthfulness. Stay Active. Choose Under Armour.”
The transition from young individuals to older ones would cause the viewer to realize that they were watching the inner spirit of the older individuals the entire time. This type of marketing would appeal to older individuals who live active lifestyles and have the spirit of teenagers or young adults.
Segmentation Is A Tool
It is paramount to remember that segmentation assists marketing, it does not due the work for you. If marketing runs the wrong campaign in the wrong area it may backfire and create a seed of doubt in consumers. As a marketing professional you have be aware of the proper marketing and segmentation strategies to use for your industry or market.
References
Darden Business Publishing. “Under Armour’s Willful Digital Moves.” UV714, University of Virginia, 2016. Case Study.
Dockterman, E. (2014, August 6). Under Armour’s ballerina Misty Copeland ad I will what I want. Time. https://time.com/3083114/misty-copeland-under-armour-i-will-what-i-want/
Kardes, F., Cronley, M., Cline, T. (2020-11-24). Consumer Behavior, 2nd Edition. [VitalSource Bookshelf 10.3.3]. Retrieved from vbk://9781305161689
Under Armour. (2014). Under Armour – Misty Copeland – I WILL WHAT I WANT :30 . YouTube. Retrieved November 5, 2023, from https://www.youtube.com/watch?v=rtX91YGaBXw&ab_channel=UnderArmour.
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