Market Segmentation of Under Armour

In the past decade or so, it has been even more widespread for people to adopt a healthy lifestyle because of the many proven benefits for well-being. Hence, many companies have been making sportswear, including sneakers and apparel, to accompany people in making healthy lifestyle choices as enjoyable as possible. One of those life-changing sportswear companies is Under Armour, which is headquartered in Baltimore, Maryland. Under Armour is a top innovator, marketer, and distributor of imprinted athletic routine accessories, apparel, and footwear. So, how can we interpret Under Armour’s success? We are about to uncover the company’s market segmentation in this blog, so bear with us. 

Segmentation Strategy of Under Armour.

To do that, we will first watch a short clip.

In this video, we are following a given family’s night. The guy witnesses his family watching something on the TV and gets out of the house. Then, we follow his run in pouring rain weather. 

He runs through pretty dangerous settings as well, like the tunnel. He also passes by a football field, watching many women playing soccer. The inspiration makes him enter the area. 

Only when he is fulfilled with his workout that he returns home, the point of the video is that you must hustle at the moment, leave relaxation, and settle down for later. 

What can we gather from this video now?

The first hint is goal orientation and willingness to do everything possible to maintain a happy and healthy lifestyle.

The second hint is the risk and dangerous tendency. Nothing takes away from his ambition because he will achieve it if he sets his mind to something.

And with those hints, Under Armor’s target segment are Breakouts.

Lifestyle and values:

High status is one of the essential values for Breakouts. They must earn a high income and gain recognition for sensing success. 

Breakouts are open to taking extraordinary measures to achieve their dreams. Even if their time with loved ones suffers, they are available for it. They typically prefer being a leader but will also find integration in a team.

Breakouts earn a high income but spend much money buying luxury goods showcasing their success and status. 

This segment likes being unique and standing out, continuously detecting numerous methods for relishing their life. Breakouts are open to adventures and risky settings. They overthink their future and life, in general, a lot. Their attitude is traditional, implying that the drinking goal is getting drunk, and real men do not cry. 

Breakouts do not pay enough attention to environmental problems, leaving it for individuals around them to employ ecological friendliness. 

Attitude towards shopping:

Breakouts enjoy spontaneously making purchases whenever items from their favorite brands are released. Sometimes, they purchase the products a little later, so the price falls slightly. 

Sometimes, Breaouts will purchase things just because. However, those kinds of purchases apply to less expensive items. 

This segment enjoys dressing presentably; hence, much of their money goes into shopping for clothes. Breakouts mostly buy their outfit pieces from mainstream brands. 

This segment puts quality over quantity; however, they can only purchase luxury brands sometimes they think of shopping. 

Breakouts adore trying out new stuff from different brands, making them a less loyal segment. 

Other interesting facts:

• Like spending most of their free time around family and friends 
• Be that a pub, a club, or a bar, they prefer visiting places where they can consume alcohol when they go out
• Are not fund of cultural activities and events
• Do not take part in sports​
• Since they are not that informed about technology, they do not utilize computers much often 
• They would like to be around the home when they are on holiday
• Consume media as a source of information and entertainment
• Are above-average consumers of press and radio 

Positioning plan of Under Armour

Under Armour’s positioning plan focuses on its brand mission to authorize athletes worldwide. It is not focusing solely on one area but aims to connect people from all around the world. The company’s positioning, in its terms, is a luxury performance brand that suggests high-quality and innovative items for fitness enthusiasts and athletes. 

Under Armour’s target audience is performance-driven and active people devoted to leading a busy life, sports, and fitness. Under Armour’s positioning technique highlights the advantages of its items created to aid athletes in doing their best and reaching their healthy lifestyle objectives and goals, both short-term and long-term. 

Under Armour has created critical collaborations with sports teams and professional athletes, including MLB, NFL, and NBA, to back up its positioning. The company also utilizes targeted marketing strategies and campaigns to contact its primary audience, leveraging digital and social media networks and channels to reach potential consumers and construct brand awareness. 

Moreover, Under Armour has extended its item offerings outside footwear and athletic apparel, radiating into technology and fitness with items like its MyFitnessPal application and intelligent HOVR UA shoes. 

That evolution has helped the brand strengthen its appeal and attract more consumers while staying committed to its root positioning as a luxury performance brand. 

Under Armour is focused on innovation, constantly presenting new materials and technologies to enhance its product performance. For instance, the company’s cushioning technology UA Hover delivers a supportive and responsive sense, while its fabric technology UA RUSH, improves performance by reclaiming the body’s energy. 

Under Armour has created a typical brand image highlighting performance, strength, and power. The company’s marketing and branding measures recall this image, featuring shots of athletes and “Protect This House” and “I Will” slogans. 

As mentioned, Under Armour has established connections with numerous high-profile athletes, making them brand ambassadors to support its positioning as a luxury performance brand. For instance, the company has relationships with football player Tom Brady, basketball star Stephen Curry, and Olympic swimmer Michael Phelps. 

Under Armour has premium pricing for all its items, and compared to competitors, their prices are even higher. The latter helps the company to reinforce its positioning and differentiate its items from low-cost competitors. 

Under Armour’s core business is an athletic footwear and apparel, but the brand has diversified into associated technology and fitness with different items. Those items include smart shoes, fitness tracking applications, and wearable items. This diversification has permitted Under Armour to develop its item offerings while preserving its core performance brand positioning. 

Under Armour’s marketing mix.

Before doing so, you might wonder what the marketing mix stands for. The terms cover a company’s product, price, place, and promotion strategies. With their ongoing pattern beginning with “p,” marketing specialists call it 4ps.

So, let us look at those strategies one by one.

Product:

Under Armour is a top-notch sports apparel and equipment manufacturing company that serves customers all around the world. They are your go-to for athletic gear, regardless of your age. Under Armour offers product lines for Men, Women, and Children of all ages, from newborns up to kids over eight years old.

Their apparel is also innovative, as they have lines like HeatGear, ColdGear, and AllSeasonGear, where the fabric is specifically designed for specific weather conditions. HeatGear is excellent for when it is hot out since it is made with moisture-wicking properties, ColdGear is perfect for chilly weather, and AllSeasonGear is for the in-between times. Depending on your preferences, they have categories like TurfGear, StreetGear, and Scent Control.

One of the most fantastic things about Under Armour is the amount of technology that goes into its apparel. They have fabrics like Threadborne, Athlete Recovery Sleepwear, Supervent, Sunblock, Coolswitch, and many more. All of its products are designed to help you perform your best while feeling comfortable and fashionable at the same time.

Under Armour’s clothing lines are made of microfibers that allow your body to stay warm, cool, stable, or dry, depending on your needs. They even have shoes specifically made for different sports and activities like running, training, basketball, golf, hiking, and more.

They also offer accessories like fitness devices, backpacks, sunglasses, and sports equipment. Unfortunately, like many other businesses, the pandemic has impacted their revenue, and they have had to close several stores.

Price:

Under Armour takes pride in offering top-notch quality products, so they follow a value-based pricing strategy. Despite the challenging market competition, they can charge more for their products using innovative materials and fabrics surpassing the industry standard. Under Armour’s core audience includes athletes and sports enthusiasts, prioritizing functionality and quality over price or aesthetics. That is why the company prices its products slightly higher than the rest, but it is part of its more fabulous marketing mix, and they are considered a leader in their niche market. 

Customers associate Under Armour with excellence and are willing to pay a little extra. Interestingly, despite their higher prices, they still price their products comparably to their competitors, such as Nike and Reebok, who also offer similar dry-fit technology products.

Place:

Under Armour has got you covered, no matter where you are. How? Through a hybrid distribution channel, which cleverly combines direct and indirect channels. For immediate access, check out Under Armour stores or hop online and browse their website. With shipping available to over 200 countries across North America, Europe, the Middle East, Latin America, Asia, and Africa, you will find the full range of Under Armour products right at your fingertips.

Under Armour retail stores are categorized into two types. The UA Brand house showcases only the latest and most extraordinary designs, while the UA Factory house has all its signature products. Traveling to Canada, Mexico, China, the United Kingdom, or other countries will also find Under Armour stores there.

As the company grows, they want to expand even further into emerging economies. They already have over 15,000 employees worldwide dedicated to providing their customers with the best service. 

Promotion:

Under Armour stands out among its competitors by handling all its marketing in-house instead of outsourcing to outside agencies. This means that they take care of everything related to promoting themselves. They use a wide range of tactics too! From personal selling by their salespeople to giant billboards in Baltimore and on famous city routes to TV commercials, online social media campaigns, magazine ads, and sponsorships. Under Armour even got some exposure by having its products featured in movies. You might remember their “I WILL” campaign, showcasing athletes and people from different backgrounds, races, and genders overcoming challenges and winning battles. 

One of their unique promotions was the “Basketball matters. Community matters more” social campaign. They refurbished some local basketball courts to support kids in playing the sport they love. This boosted their sales and gained positive publicity for the company and its brand. Under Armour also offers discounts, coupons, free shipping for orders above $60, and promo codes to increase online sales. As a result, Under Armour perfectly mastered its marketing mix.

And that concludes the “Market Segmentation of Under Armour” blog. We discussed the company’s segmentation strategy, positioning plan, and marketing mix to understand its general success better. Make sure to visit our main website for more blogs like this.