"The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself " - Peter F. Drucker
I would like to include that the product or service can fit HER as well. In recent years, many companies are experiencing a shift in marketing segmentation toward the female consumer. A great example of new positioning lies within Under Armour. Under Armour is a well known brand worn by many male athletes, from football to baseball. But, in 2013, the company realized that nearly 22% of their $2.3 billion in sales were coming from women. (Murray, 2016).
In 2013, Under Armour realized they had a new under-served market segment to leverage. Market segmentation is defined as the process of dividing the large and diverse mass market into subsets of consumers who share common needs, characteristics, and behaviors. Once you have identified a market segment, then you work to target one or more of the those segments with your own unique marketing. Under Armour chose to pursue their new market segment with a viral video campaign named "I Will What I Want". The series of videos, which featured various celebrities, created an emotional connection with consumers and positioned Under Armour's brand to appeal to women.
Segmentation strategies which were implemented by Under Armour focused on demographic, psychographic, and behavioral information. Demographic characteristics which Under Armour focused on included women with disposable income. Psychographic characteristics of the ideal consumer included active lifestyle, athletic, living up to their physical potential, and believing in themselves (I will what I want, despite what others believe). Under Armour targeted women with the behavior to become loyal consumers of their products.
If you are a business owner and are considering targeting a new customer, there are several key points to remember when implementing a new segmentation strategy.
Consumers are driven by different motivations. Make sure that you truly understand the customer you are targeting through research and surveys.
Determine the resources of your ideal consumer. Do they have expendable income? Do they research potential products prior to purchasing?
Pricing, perceived pain, perceived value. Does your ideal consumer have a high or low 'perceived pain' when purchasing? Does your ideal consumer have a high or low 'perceived value' of your product?
Lead or follow. Are you blazing a new trail into uncharted territory, or will you need to separate your product from another leader in the industry. Adjust your messaging appropriately to reach your ideal customer.
Core benefit proposition. How is your product different and beneficial to the customer. What value are you adding? Why should they chose to purchase your product?
New market segments are created every day if you watch carefully. Just like Under Armour noticed their new market segment, many businesses have learned to adjust to reaching new markets during the COVID-19 pandemic. With families being forced to stay home and schools being closed, I feel this is a ready and available new market segment. A strategy which I would use would include demographics and psychographics:
Females, ages 25-35
Middle class
Moms, with children ages 3-12
Active lifestyle
Engaged in child's education
Participating in home-schooling during the pandemic
Looking for community and resources
Green Bay Floral and Greenhouse has identified this market and created virtual programming to engage mom's and their children while they are at home during the pandemic. Various virtual gardening classes have been created to teach kids about science, ecology, and how to take care of plants. This week, we are featuring a terrarium activity. All children who register receive supplies to make their very own terrarium, complete with their choice of dinosaur figurines, fairies, or unicorns. The lead instructor conducts the class via Zoom, teaching the kids about each step of the process and ending with a finished product.
This new market segment has become very important to the vitality of the business in recent weeks. The ability for the team to pivot, be creative, and create messaging to resonate with the targeted customer has become very beneficial.
References:
Murray, M. (2016, July 16). Washington Post. Under Armour's viral campaign for the female market proved a winning strategy. https://www.washingtonpost.com/business/under-armours-viral-campaign-for-the-female-market-proved-a-winning-strategy/2016/07/15/73c50602-42fd-11e6-88d0-6adee48be8bc_story.html
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