Based on the Under Armour case study the market segment that was used was demographics that targeted females. In order for the company to survive disastrous results in “2013 with only $2.3 billion in sales and only $500 million coming from women’s apparel” (Maheshwari, S. 2014), the company had to think differently from when it was founded in 1996 by Kevin Plankton where they were well known for brands like breathable material and sweat-resistant fabrics typically targeting men who played football. Kevin Plankton made a risky decision to expand into a female market segment. This took developing a marketing campaign called “ I Will What I Want” which was estimated to cost over $15 million which featured a ballerina dancer name, Misty Copeland. It turned out to be a successful ordeal for Under Armour which increased women’s sales by 28 percent and an increase in online traffic by 42 percent. (Maheshwari, S. 2014).
Businesses cannot be successful without researching what their customers want. Market segmentation is the window that reveals a customer’s experience, customer loyalty, and new product innovation. This is guided by a customer profile into five-segment, which all has a purpose. (Smith, E. 2020).
Psychographic segmentation, which focuses on inner or qualitative traits which include a customer’s lifestyle, social status, and habits. “This segmentation requires digging deep into customer’s thoughts and by defining a customer persona this way, you’ll be more equipped to tailor your marketing strategies. And, you’ll appeal to their tastes”. (Smith, E. 2020).
Demographic segmentation is the insight into a customer’s identity which includes age or gender which provides the roadmap for basic information such as income, education, and the number of members in your family. These variables can include race, religion, Marital status. (Smith, E. 2020). “This type of segmentation is comprised of behavior patterns, like customer loyalty or engagement level. This is specific to customer interactions with a brand or company”. (Smith, E. 2020).
Behavioral segmentation, This customer profile type looks into the customer’s habits as well as focusing on a customer pattern that can include customer loyalty. (Smith, E. 2020). “Behavioral segmentation can include benefits sought from products or services, readiness to buy or purchase, usage/basic segmentation”. (Smith, E. 2020).
Firmographic Segmentation identifies the attributes of businesses or firms. (Smith, E. 2020). This is also based on a “business size and level which can include dependent contractors, nonprofits, and agencies”. (Smith, E. 2020).
Graphic segmentation, looks into customers in different geographical areas like cities, states, regional climates, and countries, because they may see things differently when grouped into diverse areas, so marketers targeted products or services accordingly. (Tow, H. 2019).
Reference:
Hincks, H. (2019, December 2). Meet the Founder of Impossible Foods, Whose Meat-Free Burgers Could Transform the Way We Eat. Retrieved from https://time.com/5247858/impossible-foods-meat-plant-based-agriculture/?amp=true
Kardes, F. Consumer Behavior, 2e. [MBS Direct]. Retrieved from https://mbsdirect.vitalsource.com/#/books/9781305161689/
Maheshwari, S. (2014, July 31). Why Under Armour Made That
Mesmerizing Ad With Ballerina Misty Copeland. Retrieved May 19, 2019, from https://www.buzzfeednews.com/article/sapna/under-armours-powerful-new-misty-copeland-ad-kicks-off-recor#.ookjnO1r9Murray, M., & Saghian, M. (2016). Under Armour’s Willful Digital Moves. Harvard Business Review, 1–5.
Smith, E. (2020, January 16). 5 Types of Market Segmentation & How To Use Them. Retrieved
From
https://blog.remesh.ai/5-types-of-market-segmentation-how-to-use-them
Tow, H. (2019, March 15). The 4 Main Types of Market Segmentation (+ How to Implement It in Your Marketing Strategy. Retrieved from
https://learn.g2.com/market-segmentation?hs_amp=true
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