Fashion Scholarship Fund 2015 Lululemon Case Study. Rebecca Savitt. Washington University in St. Louis. Fashion Design
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1 Running head: LULULEMON CASE STUDY Fashion Scholarship Fund 2015 Lululemon Case Study Rebecca Savitt Washington University in St. Louis Fashion Design
2 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.
3 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).
4 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) Early or Expert Campaign Smart Textiles Campaign Lululemon Ambassador Events Specified Marketing Action Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Advertise in yoga journal Advertise in New York Times Advertise on Twitter Advertise in Lucky Magazine and Women's Health Magazine Advertise in yoga journal Advertise on Facebook $50,000 $150,000 $50,000 $50,000 $10,000 $10,000 $10,000 $10,000 $400,000 ( Lucky Media Kit Print, 2014) ( Women s Health Media Kit, 2014) $30,000 ( 2014 Advertising Rates, 2014) $100,000 $10,000 $10,000 $40,000 $40,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
5 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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12 LULULEMON CASE STUDY 5 References 2014 Advertising Rates. Retrieved from Benzel, Jan. (2011, December 16). Excusez-Moi, Parlez-Vous Yoga?. The New York Times. Retrieved from Caplinger, Dan. (2014, October 4). Why Lululemon Ahletica Has Crashed 30% in Retrieved from 30-in-2014.aspx. DeMers, Jayson. (2014, August 1). The Top 10 Benefits Of Social Media Marketing. Retrieved from Fabrics and Technologies. Retrieved from Gap. (2014) Annual Report. Retrieved from Harris, Elizabeth. (2014, July 18). Workout Clothes With High-Tech Twist Sell Briskly. The New York Times. Retrieved from Ioannou, Filipa. (2013, July 19). SoulCycle Is a Booming Exercise Chain for the 1%. Retrieved from
13 LULULEMON CASE STUDY 6 Lucky Media Kit Print. Retrieved from Lululemon. (2014) Form 10-K (Annual Report). Retrieved from 3-1A64-47B5-9DAE EF7D81/2013_10K.pdf Nike. (2014) Form 10-K. Retrieved from form-10k.pdf. Nike x Liberty Collection A/W Retrieved from Our Ambassadors. Retrieved from Partner with Yoga Journal LIVE!. Retrieved from Peterson, Elizabeth. (2014, September 24). Lululemon s Pants Aren t Worth That Much More Than The Competition. Retrieved from Peterson, Elizabeth. ( December). 8 Outrageous Remarks by Lululemon Founder Chip Wilson. Retrieved from Sacks, Danielle. (2013, May). How Jenna Lyons Transformed J. Crew into a Cult Brand. Fast Company. Retrieved from
14 LULULEMON CASE STUDY 7 Suddath, Claire. (2013, March 28). What Lululemon s Yoga Pants Recall Reveals. Retrieved from Women s Health Media Kit 2014 RATES/PRODUCTION. Retrieved from Yoga Journal Live: New York. Retrieved from
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