1) Brand Image – Over the past few years Lululemon has been scrutinized for their product quality and their founder, Chip Wilson’s, statements regarding these issues. This company’s products are premium priced and when consumers are paying around 10-25% more for their products versus their big competitors, they expect excellent quality products. After this fiasco, Lululemon’s reputation faltered and their sales growth was tremendously affected. Instead of addressing this quality control issue professionally, Wilson placed the blame on the lifeline of the business, his customers! His insensitive comment had some of his female consumers, (where the majority of Lululemon’s revenues lie), completely offended. Some of these customers had said they would never purchase another Lululemon product again.
2) Narrow Product Line – When people think of Lululemon products, they think of female yoga clothing. This narrow perception of the company excludes potential sales from male consumers. Lululemon has some male product offerings but fails to make many sales in this area, due to the lack of offerings. The active wear industry has been booming and more people are wearing these types of clothing as their everyday apparel. Lululemon advertises how their products connect to those who partake in yoga, but how about the consumers who just enjoy sportswear attire? They should be introducing products that would intrigue a larger audience of people, not just females who do yoga and are between
Lululemon is a rapidly growing company with a different niche for its products. Its philosophy as well as their business model has allowed them to increase revenue over the past years. The dilemma they faced is how to continue expanding without losing their special niche, grassroots and a nontraditional feel of the brand that sets them apart from their competitors.
1) Can you identify examples of decisions about each part of the marketing mix (product, place, promotion, and pricing) that are being made in the cookie program? The Product is Girl Scout cookies as well as the Girl Scouts themselves. Since 1912 Cookie sales have played a major role in supporting the Girl Scouts organization at the council and troop levels. Being able to target certain people can be tricky sometimes specially if you don’t know what you’re doing or what your target is. You have to be able to sell yourself as well as the product and who better to sell Girl Scout cookies then young girls. The Girl Scouts mainly target the middle and upper class
You walk into an atmospheric friendly place, the employees are very nice and helpful. Lululemon does not advertise their product like Nike, Puma or any other athletic brand usually does with their commercials and ads. They get
As women have continued to embrace a variety of fitness and athletic activities, including yoga, we believe other athletic apparel companies are not effectively addressing their unique style, fit and performance needs. We believe we have been able to help address this void in the
Instead of conducting traditional marketing which has huge marketing budgets, Lululemon heavily relays on word of mouth. Moreover, the grassroots branding strategy make them differentiated from their competitors. Lululemon providing free class and made instructors be their models which become a very successful way to promote their products.
They approach community yoga teachers to wear their products so they can test it and recommend it to their students. Besides this, they give them free items and opportunities to deepen their relationships with them. On the whole, being able to focus on one aspect alone helps lululemon to make them standout among the pool of competitors accompanied by their community based strategy.
This report has been created with the intent to analyze the athletic apparel industry with a specific focus on Lululemon Athletica, Inc., further refered to as Lululemon. In this report you will find that the strengths and weaknesses of Lululemon’s current strategies and future goals are analyzed and compared to that of its closest competitors. In conclusion to the analysis, recommendations have been made to potentially guide Lululemon Athletica, Inc. in a positive direction in regards to its future endeavors. The following
The brand discussed in this report is Lululemon Athletica Inc. The brand is an athletic apparel retailer, whose main objective is building a community with a healthy lifestyle. Lululemon’s target market is middle/upper class 30-year-old woman. The brand is positioned as a premium high fashion brand for the athletic community. Some of Lululemon’s main competitors include Nike, Under Armour and Gap.
According to Business Insider’s Ashley Lutz, the Athletic Apparel Industry is soaring. Lutz goes on to discuss how Nike and Adidas had to modify their target markets because of emerging companies like Lululemon. The three most attractive markets for activewear are teens (who activewear comprises 28% of their total apparel purchases), young women (Lululemon’s ideas customer is a 32-year-old professional single woman named Ocean who makes $100,000 a year), and serious athletes (running, not running
This paper commences by defining the problems that were faced by Lululemon Athletica Inc in 2013. After, the author explores the causes of the issues that the company was experiencing and the effects that they had on Lululemon Athletica Inc. The next step is to look at ways in which the issues could have been addressed both for the short-term and long-term. When all is said and done, the audience will fully appreciate why “Lululemon Athletica Inc should revert to its fundamentals – that is, to concentrate on the needs of the consumer”.
Lululemon Athletica Inc. was incorporated in the month of November 2005, and is a manufacturer and vendor of practical strapping rendering attire for men, women and female adolescence. The objective of the attires is for healthful situations such as running, cycling, general fitness exercise and yoga. In the attires, it comprises aptitude britches, shorts, tops, jackets and other fitness related products like underwear, bags, bras, socks, yoga mats, yoga instruction discs and water bottles. They primarily operate in North America and Australia.
Victoria's Secret has a stronghold on the lingerie market. Its store sales this year brought in over $6.1 billion, Even so, some are saying that Victoria's Secret's explosive success might start tumbling because of the paramount demographic of millennials and their changing attitudes. Research analyst Nikki Baird of research firm RSR explained in Forbes how many retailers are trying to cater to millennials to save themselves, but millennials' preferences may not fall in line with what Victoria's Secret stands for. The lingerie industry is going through enormous changes. Thin, models have been replaced by body types that more similar to the everyday
The case study Preserve the Luxury or Extend the Brand presents a fictional dilemma, based on a real company, faced by Chateau de Vallois, a prestigious and famous wine-producing estate in the Bordeaux region of France. De Vallois is a family owned and run business; part owners are Gaspard de Sauveterre - a 75-year old majority owner, and equal partial owners: Francois de Sauveterre – Gaspard’s son and the chateau’s CEO , and Claire de Valhubert – Garspard’s granddaughter. De Vallois had fallen into a slow decline under its previous owner, but Gaspard along with Jean-Paul Oudineaux, his estate manager, had restored the chateau and since then de Vallois had been steadily profitable
For this project, we looked at three major brands/companies, Nike, Lululemon and New Balance, and how they handled these issues. Nike is one of the premier brands in the world and to stay that way, they opened up factories overseas. In the early 1990’s employee activist groups conducted some investigative reporting and exposed these conditions to the American public. The consumers were upset, disappointed and frustrated that their brand could engage in such horrific practice. They protested, boycotted to such a level that it started to damage the brand, and hurt sales and profits.