Under Armour: Where Do We Go From Here?

By Jarrett Bregler

Engaging Consumers for Personalization and Conversions with a Lifestyle Emphasis

In the case study article, Under Armour’s Willful Digital Moves, Under Armour’s segmentation strategies are explored. The predominant identified market segment includes the demographic segmentation of gender with men as the overall priority and women as an initial secondary precedence. However, as illustrated through the company’s evolution, more emphasis was eventually applied to female consumers and their segmentation propelled Under Armour to the status of a formidable competitor in the sports apparel industry. In addition, psychographic segmentation was instituted. This  included a focus on athletes and lifestyle segmentation. Essentially, their market segmentation approach “…divided an aggregate market into a more distinct group of consumers who have similar wants and needs” (Desarbo & Blank, 2020). This is an integral aspect of marketing strategy development in relation to consumer engagement and launching new products with the desired segments.

The segmentation strategies implemented by Under Armour involved several pertinent approaches. It encompassed demographic segmentation in relation to gender specifically and gender in relation to the physical abilities of the athletic segmentation that was being pursued. It entailed an approach of “…speaking directly to their needs” (Thomas, 2023).  Psychographic segmentation was instituted with the approach of interfacing with those who illuminate a sporty lifestyle. It involved “…determining their target personas and understanding what makes them tick” (Bieliaieva, 2023). Additionally, it included a focus on those with life goals of the pursuit of wellness and strength as well as those whose values and beliefs uphold these life goals. Their strategies also were comprised of social media users as they imparted celebrity brand ambassadors for brand promotion and consumer engagement. This method encompassed “…segmenting ambassadors with specific attributes” (Foreshew, 2023) that emulate the desired lifestyle for product and company engagement. Finally, behavioral segmentation was an integral part of Under Armour’s strategy. This was most clearly evident in brand interactions through its initial strategy of utilizing YouTube and the company’s subsequent shift to progress its social media strategy with other digital media platforms. This strategy involves the study of “…the cadence of interactions including those with the product and the company” (Mukherjee, 2024). The application of psychology in business endeavors go hand-in-hand and campaigns are tailored with this marriage in mind. 

Targeting the Right Approach for Engagement, Profitability, and Resource Allocation Efficiency 

Key points to remember when implementing segmentation strategies include an overriding one of considering and identifying who is in need of the products being promoted. “The entire potential customer base is united by their need or want for whatever the company is selling” (Sgrulletta, 2024). Market research data relative to potential customers is vital. Using primary and secondary research methods will unearth critical information regarding the identification of wants, needs, and trends. “Insights into consumer behaviors generate information regarding their spending habits, what they buy, and determine how they align with the market segments” (Zhukova, 2023). Another key point is that the segmentation strategy should include a priority of focusing and including segments that are underserved. “New opportunities should be researched for underserved markets to generate new business” (Sgrulletta, 2024). This results in the identification of marketing niches that can expand the brand and generate an upsurge in the overall consumer base. Moreover, behavioral segmentation will elicit critical data relative to the correlation of purchasing and lifestyle decisions and will garner an increased awareness of how to appeal to them with succinct marketing strategies. Implementing segmentation strategies should also include the creation and utilization of buyer personas for each segment. “Buyer personas summarize market research about audience demographics, behaviors, interests, and communities which also assists with the development of sub-groups” (Sgrulletta, 2024) for more specificity in segmentation exploration. Essentially, it fine-tunes the gleaning of key customer types. Finally, it is imperative to partake in competitor analysis as Under Armour did with Adidas. Lessons can be gleaned by how they appealed to comparable segments and how they conducted their promotional approach with potential consumers. This unearths strengths, weaknesses, gap discernment, and overlooked opportunities for brand evolvement and success. 

Focusing on Niche Markets for Brand Trust, Customer Loyalty, and Revenue Evolvement

A newer market segment I have noticed lately in my own shopping experiences is LGBTQI+ and it is one that should be explored further. Although marketing efforts in interfacing with this culture became more active in recent years and is not altogether new, there is a newer and more consistent emphasis emerging focusing on their segmentation. “The LGBTQI+ minority segment is currently the fastest-growing consumer market in the U.S. and is on target to grow by millions in the next few years as GenZennials and Millennials identify as LGBTQI+ in more significant numbers than previous generations” (Oakenfull, 2021). With consumer behavior trends, LGBTQI+ consumers have demonstrated a preference for buying from brands that support LGBTQI+ rights. Some companies are strategizing in response to this different demand curve which entails a focus more on brand support and less on the typical inauthentic solidarity linked with pride identity. The emphasis also appears associated with this being an underserved group in global marketing efforts and in trying to uphold a socially progressive marketing strategy correlated with inclusivity. “Market segmentation is critically important to effective marketing…and identifying segments based on characteristics such as…lifestyle” (Babin & Harris, 2021, p. 37). The approach additionally seems affiliated with the nation’s political division and recognizing the assets of this group as members of the larger national demographic for their significant contributions to the national economy. It is important to assert that the representation of one letter is not a representation of the overall group and a caution is that this culture should not be regarded solely as a singular market. “Designating the entire LGBTQI+ population as a market segment assumes that every member of the segment possesses a common set of preferences and behaviors” (Oakenfull, 2021). While much of marketing relative to consumer behavior entails grouping through segmentation, it often concurrently emphasizes the individualization within these groups. This newer approach denotes more of a priority on unity and group identity to progress their strength as a group within segmentation. Retail stores such as Target have demonstrated a consistent approach in their customer engagement with LGBTQI+, most notably in clothing, but there has been an expansion of efforts amongst other retailers such as Nordstrom. A pertinent positioning strategy has encompassed product placement with shelving illuminating lifestyle brands. In addition, there has often been the repetition of application with end caps adjacent to the clothing section to maximize product visibility and appeal. This is a great market to explore for purposes of evolvement in marketing approaches and strategies and to address the aforementioned shortcomings in engagement. 

An area in which existing segmentation efforts fall short that warrants the creation of a segmentation strategy pertains to illuminating authentic representation. Customer loyalty and return on investment are boosted if customer journeys are tailored to the individuals within the group. Further, there is often an attempt at representation, but not a demonstration of genuineness in understanding which concurrently leads to the perpetuation of stereotypes and hindering the identities of those with whom the company is aspiring to connect. This is linked with “…the lack of expertise and representation that exists within the advertising industry” (Oakenfull, 2021). As with any segmented group, there is a multi-layer quality to the overall group that must be factored into strategies and accompanying campaigns. Needs, wants, and pain points should not be generalized. In researching consumer behavior, it is imperative to uphold the spectrum of identities and experiences for genuine representation which is correlated with a sense of belonging that should be at the heart of segmentation and consumer engagement endeavors. Benefit segmentation could be advantageous given the lack of the industry’s experience with this culture. An asset of this strategy places prominence on the consumer-to-brand experience with the product and/or service. It exemplifies value propositions making the segmentation correlated with the benefit of the experience. Fundamentally, customer service on a more global level. A determination of “…where are the buyers at in their journey, what brand loyalty traits do the possess…what’s the purchasing style, and how high is their usage rate based on behavior” (Zhukova, 2023) would garner necessary experience and be an impetus for an eventual transition to consumer behavior that is more consistently inclusive. Essentially, the segmentation strategy should be augmented with a secondary approach that unifies LGBTQI+ as an integral part of a diverse and inclusive larger culture with segmentation that aligns more with factors such as those correlated with psychographics and less on the insulation of differences that perpetuate bias and risk exclusion.  

Coming Soon

Hope this overview of Under Armour’s segmentation approach enlightened you on how you are segmented as a consumer. The ability to understand a company’s strategy and your own consumer behavior can help you to maximize your experience as a shopper and to use segmentation to your advantage in your buyer journey. Please stay tuned for a new blog coming your way soon where we’ll explore brand rivalries and the interrelationship between the top dog and the underdog.