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Lululemon PR Crisis

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Jessica Molina

on 25 November 2014

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Transcript of Lululemon PR Crisis

Lululemon PR Crisis
Jessica Molina
Abby Perkins
Alex Kolpan
Annika Taylor

March 2013
Recalled 17% of black Luon yoga pants.
Lululemon posted "A Letter To Our Guests" on their website and blog
Quick Response
Offered full refund, pulled affected pants from the shelf, and promised to have an improved version in 90 days.
"We are passionate about sweating every day and we want the world to know it. Breathing deeply, drinking water and getting outside also top the list of things we can’t live without. Get to know our manifesto and learn a little more about what lights our fire."
The Crisis
Black Lululemon pants were recalled after customers complained of sheerness and low-quality product
Founder Chip Wilson speaks out
March 24, 2013
Lululemon tries to make light of the situation.
"The look and interior design of each store are completely up to its manager." -Christine Day, CEO
June 9
Christine Day, CEO announces her resignation
November 5
"Quite frankly some women's bodies just actually don't work for it."
3 Days Later, Chip
November 8
Lululemon releases
Second Chance Pant and admits fault.
Mid October
December 9

Chip Wilson steps down from his board position
New CEO Laurent Potdevin is announced
Former Burton CEO
Former TOMS president
All PR crisis work was handled in-house
CEO too proud/didn't want to lose money
4 months later....
Yoga Pant
*FAQ Sheet
PR Involvement
Who's Affected?
Lululemon customers
Lululemon employees
Jimmy Kimmel Joke

- Chip Wilson, CEO
Conscious of customers
issued FAQ
Have a phone line
Responded to critics
Made fun of themselves
Other Response
"Hotline" created
Educators assisted customers w/ questions

Patrons complain about sheerness and pilling

Alternative Solutions
Promptly issue a written apology
acknowledge fault
Release video apology after written
show customers you value them
Store engagement
Coupons and promotions
Go to the source
New arrangements for fabric
Blamed Taiwanese Luan manufacturer for sheerness
“All shipments to Lululemon went through a certification process which Lululemon had approved,”
the company CEO said in an interview, according to the Wall Street Journal.
Left a lot of time for social media to wreak havok
Disregarded Practices
Anticipate the crisis
Previous complaints about pants
Wilson's track record
Responded to large issue
Ignored previous complaints
72 hours before apology
Train Spokesperson
Instruct Wilson on neutrality
Use female representative
Implemented Practices
Blamed manufacturer for following contact
Established a notification system
Directly interact with customers
Acknowledge sheerness
Turned it into window display
Wilson interview on years events
Second Chance Pant
Stock dropped
Stakeholders sued because of company dishonesty
Full transcript