Market Penetration Example
LEARNING OBJECTIVES
- Give some examples of corporate strategies
Under Armour
Under Armour promotes its products through sponsorship agreements with celebrity athletes, professional teams, and college athletic teams.
Market penetration: focus on current products and current markets in order to increase market share
Market penetration requires strong execution in pricing, promotion, and distribution in order to grow market share.
Under Armour is a good example of a company that has demonstrated successful market penetration. The company sells performance apparel, and in recent years it has surpassed Adidas to become the number-two athletic-wear provider in the U.S. The company has persistently focused on selling athletic footwear, clothing, and accessories, and was able to capture a leadership position in the market with that strategy.
Throughout 2014, Under Armour fueled its growth by focusing largely on promotion, distribution, and consistent product. As a result the company could claim major success—especially relative to major competitors Nike and Adidas—in the fight for its share of the fitness apparel market.
Like Nike, Under Armour’s has been very effective at developing inspiring advertisements that feature well-known male and female athletes. The following video ads are examples: