Tuesday, December 06, 2011

Under Armour and Target Markets

I just finished reading an article about Under Armour's remarkable success. The article ended, though, by pointing out that the firm has done much better with men than women. It cites the fact that many women choose Lululemon over Under Armour athletic wear.

When I read this type of article, I wonder whether we sometimes forget the concept of target markets. If we try to sell to every demographic under the sun, we have no focus at all. We might not be the best at serving any particular segment unless we are clear about our target. Of course, Under Armour may find a way to succeed with a particular segment of women. They may have great success eventually with a female demographic. However, their focus on a young male demographic to date is not a weakness, but a sign of a smart focused strategy. Similarly, Lululemon's focus on women has been a great strategy.

The article mentions that Under Armour also is very US-centric. Perhaps expanding their geographic scope before expanding their demographic may make good sense. At some point, you must allocate resources judiciously as you expand.


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