Under Armour's Market Segmentation

company has been in existence for a little over 15 years and has made huge strides in the textile,

Under Armour is in the Textile- Apparel Clothing industry, in the consumer goods sector. The market has been driven by economic recovery, new product offerings and a

The five key growth drivers for Under Armour are: “Men’s and Women’s Apparel, Footwear, International and Direct-to-Consumer” (Under Armour 10K, 2009, pg.1). In 2009 Apparel revenues

Under Armour has severely limited its product offerings due to its primary target market, which is geared mainly towards male athletes, aged 12-24. Their lack of diversity is a notable competitive disadvantage to industry rivals Nike and Adidas. However, we have recently witnessed the growth in demand for athletic-wear apparel - 6% (Marc Bain), as well as the growth in female sports engagement across the United States (Statista). A potential strategic alternative could be to significantly expand on their athletic apparel line. This expansion would primarily target female athletes within the same male target range. In order to enhance the success in this field, they should continue to add to the eight women (Under Armour Roster) who are currently apart of the Under Armour endorsement roster.

Target Market Strategy As competition grows and the market changes it is important to change with it. Over the years the demographic segmentation for Under Armour has evolved from focusing on male collegiate athletes between the ages of 17 and 23 to include older men, women, and children. Under Armour uses high quality products and the price that comes with that is geared towards consumers who are financially stable. They cover a wide area the family life cycle, but their primary focus is younger consumers whether they are married or have children.

Under Armour should exercise a focused, differentiated approach by exclusively developing performance apparel. Its non-standardized products are good for customers who prefer performance than price. For this reason, the corporation should have more emphasis on research and development to offer products, which are superior to what is in the market. On the other hand, its focus strategy should aim at particular sports, serving each sport’s needs more precisely than the broad apparel companies like Adidas and Nike. Combining a focus differentiation strategy will enable the firm to create a fertile niche positioning meanwhile meeting the customer’s specific needs (Kenyon,

Under Armour, Nike and Adidas are the top three brands known worldwide. These three companies were able to gain a strong brand to make a name for themselves in the sports apparel market today. On the other hand, Under Armour has become one of the top leading distributing companies to offer athletic apparel, footwear amongst many other things. “In 2013, Under Armour had a 14.7 percent share of the U.S market, compared quite favorably with Nike’s 27 percent market share and Adidas’s 7.4 percent market share.” (C-50) However, the company’s path of success can come crashing down as you take a look

a. Under Armour’s approach towards innovation is very unique, they think and plan out their projects thoroughly in order to create a one of a kind product that could be appealing to their consumers. The company has been extremely progressive throughout the years in order to stay ahead of the other competitive companies in their targeted industry. By constantly updating and coming up with different product lines, such as compression shirts and cleats, Under Armour is able to compete with other top athletic wear company’s in their market. If

Under Armour, Inc. is ranked among the established sports Kit producers across the globe. It thus enjoys massive sales in several markets. Under Armour has its headquarters Baltimore, Maryland with Kevin Plank as the current Chief Executive Officer (CEO) and Robin Thurston as the Chief Finance Office. The company is committed to developing its brand continuously through advertisement. It is presently listed on the New York Stock Exchange (NYSE) market with a share price of $46.99. The company through its CEO believes that for the company to remain viable in the market, it has to ensure that that its products satisfy the taste of the consumers (Thompson, 2015). Clearly, this has bored fruits, basing the argument on the high consumer

The rapid success of Under Armour is not a mistake. The company dominates the performance apparel category. According to Founder Kevin Plank, “The mission of Under Armour is to make technically advanced products that are engineered with superior fabric construction, to provide proven innovation available to the masses-aimed at making athletes perform better” (UnderArmour.com). Under Armour uses many marketing initiatives including athlete endorsement, product placement, and popular culture which illustrates the success of Under Armour.

Today 's companies may struggle with developing and maintaining a strategy to ensure long-term success in the current global marketplace. Under Armour is no exception, they desire to challenge industry titans, Nike and Adidas, and seize market share in the demanding sports apparel arena. Explored in detail, Under Armour’s strategy through examination of the company’s history, mission, influences, and capabilities along with recommendations, based on a study by Arthur A. Thompson, to achieve their long-term objectives.

Though in competition. Under Armour and Nike have a lot in common. Not only do they both offer premium sports and athletic apparel, but they also utilize professional athlete sponsorships to aid in driving sales. With so much in common there are different marketing approaches between the two. Under Armour acts like the underdog in a sales world which is dominated by Nike. While proving others wrong is Under Armour’s forte. Nike is about proving yourself right. Both of these tactics have worked to their advantage as it appeals to the different senses we as Americans have. Even though Under Armour is growing they do not have the tradition or brand awareness that Nike has. With that being said: They are heading in the right direction by toppling Adidas and taking the second spot behind Nike in the sports apparel business. The things that Under Armour is doing to differentiate themselves from their competition is being clear and concise about their brand mission. Targeting the right audience by appealing to humanistic experiences to expand brand audience. Finally, giving the consumer an experience that goes well beyond just purchasing their products. (Chen, 2015)

Under Armour is currently one of the leading companies in the sports apparel industry whose mission is to “Make all athletes better through passion, science, and the relentless pursuit of innovation”.1 When Under Armour first broke into the sports apparel industry it was a disruptive pioneer that initially made the two giants, Nike and Adidas, a little weary. Under Armour revolutionized the sports apparel industry by creating apparel that used synthetic materials as an alternative to natural fibers, such as cotton, or other materials, such as polyester. This all-important switch to these materials resulted in a 2“shirt that provided compression and wicked perspiration off your skin rather than absorb it. A

Sports industry is breaking into the business of sports. There grow was about $145.3 billion between 2010-2015, the industry of sports is flourishing with a lot of opportunities around the world. That including sports marketing and many more higher education, which the rate of sports industry grows to 15%. When interdiction sports industry I truly know that Under Armour sports wear is a great fix to the business of sports because it give the entire step of the sports industry. When introduction Under Armour sportswear must have to understand the creator of Under Armour CEO Kevin Plank.

The company’s second strategic factor is its narrow product focus. Unfortunately, because the company began as a producer of compression shirts and it maintained this offering for long period, it eventual hampered their product offerings. At the moment, Under Armour are only focused on athletic wear apparel and as a result have a limited product offering. This also translate to the offerings geared towards women, which are significantly lower than their male clientele.