LULULEMON CASE STUDY - Sam Fox School | Sam Fox School

Running head: LULULEMON CASE STUDY
Fashion Scholarship Fund 2015 Lululemon Case Study
Rebecca Savitt
Washington University in St. Louis
Fashion Design
LULULEMON CASE STUDY 1 SWOT Analysis
Strengths
-
Strong relationships with fitness professionals, through fitness ambassador program
where feedback is received to improve product (“Our Ambassadors”).
-
Ambassador program stresses community outreach as compared to Nike offer
opportunities such as free yoga classes open to the public (“Our Ambassadors”).
-
Significant social media presence (over 1 million Facebook likes, over 650,000 Twitter
followers and nearly 700,000 Instragram followers as compared to Atheta’s 200,000
Facebook likes, 30,000 Twitter followers and 60,000 Instagram followers.
Weaknesses
-
Perceived as overpriced; quality is subpar considering cost (Elizabeth, 2014).
-
Controversy of transparent pants (Suddath, 2013); subsequent comments by former CEO
C. Wilson (Peterson, 2013).
-
Limited sizing, no maternity sizing or plus sizes, current sizes (2-12), Athleta offers wide
set of standard sizing (00-16) along with tall, petite, plus and maternity sizing.
Opportunities
-
Extend sizing to expand customer base. -
Extend categories of active wear outside of yoga and running. -
Collaborate with non-­‐athletic brands; Nike has had numerous collaborations with brands such as Liberty of London (“Nike x Liberty” 2014). -
Extend ambassador program to those indirectly involved in the fitness community. -
Manufacture products rather than rely on third parties, establishing consistent quality control. LULULEMON CASE STUDY
2
Threats
-
Competitors such as Athleta offer extensive yoga styles similar to Lululemon at a more competitive and affordable price point (Peterson, 2014). -
Stock prices have fallen in past 6 months, scaring off investors (Caplinger, 2014). -
Competitors such as Nike offer wider set of athletic apparel needs, such as swimming and skiing apparel. Marketing Plan
Early or Expert Campaign stresses Lululemon is for everyone, beginners to professionals,
specifically calling attention to Lululemon’s new extended sizing. The Smart Textiles Campaign
advertises research and new smart textiles introduced into garments including sustainable textiles,
shown to be very attractive to consumers (Harris, 2014). Research current athletic apparel market
including possible national and international expansion. Dedicate time and energy to yoga
community through Ambassador Led yoga events and sponsor Yoga Journal’s Yoga Live! Yoga
Conference in New York City. Utilize both print and online social media sources to reach target
customers. Online social media platforms, such as Twitter and Facebook will be utilized; having a
strong social media presence is important in targeting consumers (DeMers, 2014). Traditional forms
of print media both in newspapers and magazines will also be utilized to cover consumers who are
focused on specified topics such as yoga (Yoga Journal) and fitness (Women’s Health).
LULULEMON CASE STUDY 3 Marketing Plan-­‐Excel Spread Sheet Marketing Plan
Research smart
textiles
Research
International+
National
Markets
Competitor
pricing research
Sponsor Yoga
Journal Live!
New York
(April 23-27)
Specified
Marketing
Action
Aug-15
Sep-15
Oct-15
Jan-16
$150,000
$50,000
$50,000
$10,000
$10,000 $10,000
Advertise
in Lucky
Magazine
and
Women's
Health
Magazine
$10,000
$30,000
(“2014
Advertising
Rates,”
2014)
Advertise
in New
York
Times
Advertise
on Twitter
$100,000
$400,000
(“Lucky
Media Kit
Print,”
2014)
(“Women’s
Health
Media
Kit,” 2014)
Advertise
in yoga
journal
Advertise
on
Facebook
Lululemon
Ambassador
Events
Dec-15
$50,000
Advertise
in yoga
journal
Early or Expert
Campaign
Smart Textiles
Campaign
Nov-15
$10,000 $10,000
$40,000 $40,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
LULULEMON CASE STUDY 4 Retailers
SoulCycle
Lululemon will market to SoulCycle, a high-end chain of cycling studios. They attract healthy
and affluent individuals who prioritize and spend money on their athletic pursuits. (Ionnau 2013)
After or before sessions, soul cyclers shop in SoulCycle studios. SoulCycle markets to men and
women who are committed to their health but in a non-yoga format. Soul cyclers will expand the
customer base to create new yoga fans that will shop for traditionally formatted yoga apparel.
Core Power Yoga
Lululemon will be sold at Core Power Yoga, a yoga studio chain with 12 locations throughout
the US. Core Power Yoga is for beginners and advanced yogis. The yoga chain is a good fit because
yogis, Lululemon’s target customer, are condensed into one place. Core Power Yoga does not offer
other merchandise currently meaning that Lululemon would have no competition. Core Power
Yoga’s broad audience will open new customers including both yoga professionals and novices.
J. Crew
Lululemon will be sold at J. Crew, the retailer known for its cool yet accessible styles. The new
Lululemon will fit J. Crew because it shares the same laidback yet impeccable style. Women who
are building their work and leisure wardrobe will also be able to build their wardrobe for athletic
activities with ease. Selling merchandise at J. Crew will also offer the potential for collaboration
between the two brands.
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LULULEMON CASE STUDY
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References
2014 Advertising Rates. Retrieved from http://nytmediakit.com/uploads/content/140208_2014_Regional_RateC_EC6.pdf.
Benzel, Jan. (2011, December 16). Excusez-Moi, Parlez-Vous Yoga?. The New York Times.
Retrieved from http://www.nytimes.com/2011/12/17/travel/excusez-moi-parlez-vous-yoga.html.
Caplinger, Dan. (2014, October 4). Why Lululemon Ahletica Has Crashed 30% in 2014. Retrieved
from http://www.fool.com/investing/general/2014/10/01/why-lululemon-athletica-has-crashed30-in-2014.aspx.
DeMers, Jayson. (2014, August 1). The Top 10 Benefits Of Social Media Marketing. Retrieved from
http://www.forbes.com/sites/jaysondemers/2014/08/11/the-top-10-benefits-of-social-mediamarketing/.
Fabrics and Technologies. Retrieved from
http://www.lululemon.com/education/info/fabricsandtechnologies?mnid=mn;education;fabricsand-technologies.
Gap. (2014). 2013 Annual Report. Retrieved from
http://www.gapinc.com/content/attachments/gapinc/GPS_AR13.pdf.
Harris, Elizabeth. (2014, July 18). Workout Clothes With High-Tech Twist Sell Briskly. The New
York Times. Retrieved from http://www.nytimes.com/2014/07/29/business/workout-clotheswith-high-tech-twist-sell-briskly.html?_r=1.
Ioannou, Filipa. (2013, July 19). SoulCycle Is a Booming Exercise Chain for the 1%. Retrieved
from http://www.thedailybeast.com/articles/2013/07/19/soulcycle-is-a-booming-exercise-chainfor-the-1-percent.html.
LULULEMON CASE STUDY
6
Lucky Media Kit Print. Retrieved from http://www.condenast.com/brands/lucky/mediakit/print/rates.
Lululemon. (2014). 2013 Form 10-K (Annual Report). Retrieved from
http://files.shareholder.com/downloads/LULU/3558042923x0x766923/AC87B03 31A64-47B5-9DAE-978862EF7D81/2013_10K.pdf
Nike. (2014). 2013 Form 10-K. Retrieved from
http://investors.nikeinc.com/files/doc_financials/AnnualReports/2013/docs/nike- 2013form-10K.pdf.
Nike x Liberty Collection A/W 2014. Retrieved from
http://www.liberty.co.uk/fcp/content/nike-liberty/content.
Our Ambassadors. Retrieved from http://www.lululemon.com/community/ambassadors.
Partner with Yoga Journal LIVE!. Retrieved from http://www.yjevents.com/sponsors/index.php.
Peterson, Elizabeth. (2014, September 24). Lululemon’s Pants Aren’t Worth That Much More
Than The Competition. Retrieved from http://www.businessinsider.com/why-lululemonspants-are-so-expensive-2014-9.
Peterson, Elizabeth. (2013 10 December). 8 Outrageous Remarks by Lululemon Founder Chip
Wilson. Retrieved from http://www.businessinsider.com/outrageous-remarks-bylululemon-founder-chip-wilson-2013-12
Sacks, Danielle. (2013, May). How Jenna Lyons Transformed J. Crew into a Cult Brand. Fast
Company. Retrieved from http://www.fastcompany.com/3007843/creativeconversations/how-jenna-lyons-transformed-jcrew-cult-brand.
LULULEMON CASE STUDY 7 Suddath, Claire. (2013, March 28). What Lululemon’s Yoga Pants Recall Reveals.
Retrieved from http://www.businessweek.com/articles/2013-03-28/what-lululemonsyoga-pants-recall-reveals.
Women’s Health Media Kit 2014 RATES/PRODUCTION. Retrieved from
http://www.womenshealthmag.com/files/mediakit/WH-MediaKit-Rates.pdf.
Yoga Journal Live: New York. Retrieved from http://www.yjevents.com/ny15/.