In the Under Armour case study there are a few different market segments mentioned. Under Armour used demographic segmentations to analyze male vs. female consumers. Under Armour used demographics in analyzing the fact that out of their $2.3 Billion in sales, only $500 Million was from their women’s apparel line (University of Virginia, 2016).
The “I Will What I Want” campaign raised the sales of the Under Armour women’s line by 28% (University of Virginia, 2016)! In this successfully launched campaign for women, Under Armour looked at psychographic segmentation. In psychographic segmentation, companies look at the personality, interests, and opinions of consumers (Hill, 2018). Under Armour realized that women were facing adversity in athletics and used that to their advantage in highlighting non-traditional women athletes that women could hopefully relate with. This campaign was a winning segmentation strategy as it brought wide attention to the brand through various sources of media and possibly changed the positioning females had of the brand as a “hardcore serious male athlete only,” brand, changing it into a more casual and female-friendly brand.
Under Armour also looked at psychographics when gearing their lines toward consumers with an interest in athletics and exercise. Under Armour also considered the casual athlete and created a line of athleisure wear that could appeal to a broader audience, again changing positioning in consumers’ minds that anyone could wear their yoga pants or “runner style” tennis shoes even if they weren’t a serious athlete, yogi, or runner.
Key points to remember when implementing segmentation strategies:
- Consider your current consumers, and who you else might want to target and why.
- Create a buyer persona that helps you envision the consumers you want to attract-what are their needs and wants, and how can you satisfy them?
- Marketers should examine and implement multiple approaches to segmentation instead of focusing on only one basis. Consumers are multifaceted!
- How is your product positioned in the consumer’s mind, and how can you change or enforce that assumption?
- Segmentation can create better brand retention and brand loyalty (cline, 2018).
Escapism and “Cottagecore”
A segment I have noticed as of late is a group looking for escapism from our current pandemic plight. I often see this in millennials looking for nostalgia that can create a few moments of joy for them and help a person forget about the negativity of our current situation. You might see this in retro packaging or even retro product comebacks, like “Dunkaroos.” There are many different subcultures created around escapism currently.
I also see this in the subculture of “Cottagecore.” “Cottagecore” is a style one might see on Pinterest or other social media sites as mood boards or memes. This “aesthetic” of cottage core is like living in a cottage in a Miyazaki movie far from the hustle and bustle of a large city and generally far from technology. Cottage core lifestyles might include baking bread and needlepoint, or gardening. Dwellings or rooms are designed to look like a little English cottage in the woods filled with handmade items, teapots, books, and fairy lights or candles. These “Cottagecore” enthusiasts might not actually be living this style of life, but imagine and curate it online, as if they might.
This psychographic segment might be beneficial for any company looking to fill a niche but growing market. To reach this market, I would consider the demographics of this group, see where they are shopping, what their income is, etc., look at their psychographics, and then create a line of décor for them based on these results. As an example, this culture appreciates handcrafted things, so craft stores might be a great place to place this product line. One could look at geographic segmentation as well, concentrating on areas that are known as artsy, or alternative cultured, like Austin, Texas, or Portland, Oregon.
Cline, T. W., Cronley, M. L., Kardes, F. R. (2015). Consumer Behavior. [MBS Direct]. Retrieved from https://mbsdirect.vitalsource.com/#/books/9781305161689/
Hill, C. (2018, October 25). 4 Segmentation Strategies to Help Target Customers: VeraCentra Blog. Retrieved September 11, 2020, from https://www.veracentra.com/blog/four-segmentation-strategies/
University of Virginia. (2016, July 27). Under Armour’s Willful Digital Moves [PDF]. Charlottsville: Darden Business Publishing.