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LuluLemon Marketing Plan

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Kelly Katherine Lloyd

on 27 March 2014

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Transcript of LuluLemon Marketing Plan

Marketing Plan

Market Research
Founded in 1998, Lululemon aimed to become a hub where people could learn and discuss the physical aspects of healthy living from athletic activities and the mental aspects of living a powerful life. In 2012, annual sales reached $1 billion and in 2013 estimated sales are $1.37 billion.
Creative Plan
inhale your life.
Measures of Endorser Credibility
Contingency Plan
Ethics clause in contracts with Aniston and Wilson
If ethics clause broken, Lululemon will take legal action to prevent them from wearing our products
Regardless of Russell Wilson's team performance in NFL, we will continue to support him
Same goes with Jennifer Aniston and her film career
Marketing Goals
Marketing Objectives
Organizational Objectives
Market Share: Increase marketing share by 10% vs. YAG
Profit: Increase profit by 30% ($228.84 million) vs. YAG
Sales: Increase revenue by 30% ($411 million) vs. YAG
Increase in Brand Preference: Increase brand’s top of mind awareness among new consumers by 5pts vs. 2012 annual customer survey
Marketing Strategies
Executive Summary
Financial Overview
Marketing Budget: Total - $137 Million + X to reach target sales goal
Macro Environment
General economic growth
Population and culture changes
Consumer and disposable income
Politics and the economy
Technological changes
Micro Environment
Overview of the Firm
Challenges and opportunities
Reaching the male demographic
Increasing brand awareness
Broadening appeal of our brand
Identify the problem
Our specific "yoga" identity
Consumers' lack of knowledge about why Lululemon is superior to our competitors
Finding Success
Expanding our target market
Celebrity/athlete endorsers
Increased brand awareness
Target new consumers
Active people not specific to yoga/pilates
Partner with celebrity/athlete endorsers to increase brand awareness
Partner with other companies that value the natural health of individuals
Increase market share and awareness by expanding
Overall Generic
Unparallel to our competition in quality.
Superior products = more money
Consumers pay a premium for our unique materials for most effective athletic experience
Our products are made to last.
LuluLemon, allowing active individuals to enjoy the most effective, luxurious and comfortable athletic experience with attention to quality, *no other active wear invests as much in their community as we do.
Jennifer Aniston
She leads an active, healthy lifestyle, which is what Lululemon embodies
She will open up the brand to more than just yoga specific athletes but rather to women who admire her across the country.
She will target women of all ages and active vs. non-active.
She will be able to be utilized year round.

Russell Wilson
He is an NFL player who will appeal to men and make our brand seem more versatile.
He will help reposition the brand from being predominantly geared towards women who participate in yoga by opening it up to men and all athletes in general.
He will target athletes and also minorities because he is interracial.
He will be utilized during NFL season as well as the off-season.

Print Ads
Jennifer Aniston
Vogue, Cosmopolitan, Elle, Harper’s Bazaar, Women’s Health, Shape*,
PR Campaign
Endorsers host yoga classes at flagships stores
Total Budget
Budget derived from 10% of last year’s revenue plus 30% to match the target revenue increase goal.
Income Statement shows that Selling, General, and Administrative costs total about $386 million for the previous year. The company’s marketing budget was not broken down into more specific detail, but the company has been known to give out up to $1,000 of product to influential people in the yoga community, especially certified instructors to aid in spreading awareness.

Spending by Medium
Advertising: $28.4 million
Appearances: $15 million for production of events. Endorser costs included in contract. (see endorsement section)
Social Media
Total: $2 million
Sponsorship of Broga
$1 million

Sales & Distribution Channel
Lululemon stores
Certified Lululemon retailers
Lululemon website
Based on Jim Harvey's speech structures
Target Market
Brand Review
Lululemon ultimately delivers performance, fashion and technical features to athletic apparel at the highest level.
Vision Statement
To transcend the athletic experience through quality product and community relationships.
Mission Statement
To provide the active lifestyle community with signature athletic apparel, by uniting technologically advanced fabrics with quality control to meet specific performance needs.

Competitive Analysis
SWOT Analysis
Recommended Product
Product Portfolio
2012: Lululemon’s numbers were up
Gross profit increased by $193.5 million (34%) reaching $762.8 million
Net revenue increased by $369.5 million (37%) from 2011 to 2012
2013: Not gotten off on the same positive foot. Lululemon recently suffered a rather difficult year in terms of public relations and managerial restructuring.
Increase store base by 20% (adding 38 stores throughout the United States
5 New stores in their existing markets in Australia and New Zealand
Expand to markets in Asia and Europe
Improve website and e-commerce
Increased brand awareness and loyalty
New fabrics and technologies
Broadening appeal of products
Offers exclusive line of performance apparel and accessories for women, men and female youth
Products are designed for healthy lifestyle activities (yoga, running, general fitness)
Expert team embodies brand's design philosophy, and dedication to premium quality
Team identifies trends based on market research and consumer input
Initially targeted women in general, but recently the company has made efforts for male consumers
LuluLemon seeks single, financially successful women who are willing to spend on exercise apparel
Product image = independence & confidence
Women dressing for other women
Men's sales account for 13% of sales in 2012
9/10 men are unaware of Lululemon
8/10 women are aware of Lululemon
6/10 women own at least 1 item
Focus Strategy
Scientifically manipulated to make the best athletic wear for specific activities
We market to areas that appreciate our vision
Brand advantage = unique
Brand Personality
Russell Wilson
Men’s Health, Fitness*, Shape*, ESPN, Sports Illustrated, GQ
Internet Marketing
Russell Wilson and Jennifer Aniston will host monthly blog on the Lululemon website to discuss their workouts, favorite products, ect.
Develop a stronger social media presence by making our endorsers interact with our Twitter and Instagram followers
Research & Development
Profit & Loss
Global market is growing
Nike currently on top
Adidas, Reebok, Puma
Lululemon currently ranked 4th
In past 3 years Lululemon annual sales have grown 100%
For active individuals, the Lululemon brand, is superior in quality among all athletic apparel because of its technologically advanced fabrics with quality control to meet specific performance needs.

Balance Sheet shows no spending for R&D in the past three years.
We will continue to keep this at 0.

Primary Research
Conducted survey among target market that indicated that our best choice in sponsors would be Jennifer Aniston and Russell Wilson
Times Square Billboard

Revenue goal: $1.781 Billion
MD&E: $498.4 Million (last year's SGA was 28% of total revenue)
Net operating income: ~$1.283 Billion
Broga is yoga for men
Focus on core strength and movement
Established and appeals to men
7/10 men think yoga is for women
We want to use Broga to increase brand awareness for men
Full transcript