Transcript: The Road Ahead Task Step 1 Step 3 Step 2 Presented by: Esther Song Fandi Chen Hannah Lai Jonathan Chu Tanisha Ahmed Yuhan Zhuang
Transcript: "Creating components for people to live longer, healthier, more fun lives." “Sophisticated and educated women who understand the importance of an active, healthy lifestyle.” No sales Lululemon does not have any sales or promotion in order to remain exclusive. It does offer some discounts on products that were overproduced Promotion Industries Lululemon does not use traditional methods of advertising. Narrowcasting vs. Broadcasting Maintains status as a high end retailers Careful selection of factories to ensure commitment to quality and ethics Thank you! Alex Conlan Sarah Armstrong Elucia Khruschev Allison Karr Ridhi Arora Sporting Apparel : $9.6 billion Elucia Khruschev Low inventory of their products in their stores: Lululemon flies their products from manufacturer to store instead of transporting them by sea. Marketing Objectives Price Lululemon's online store: "Lululemon...hopes a better online-shopping experience will grow these web sales to be about 15% of the business." (Nelson, J, 2011) Our suggestions for Lululemon: Expansion - Being the high-end brand that Lululemon is, we think it would be a good idea for the company to expand outside of the current countries that Lululemon already has stores - United States, Canada, China, New Zealand and Australia. Free time Possible Sale/Discount Rack - An idea for Lululemon to consider in order to approach the market that would usually never choose to buy Lululemon products due to the high prices. Alex Conlan Core products: High-end athletic clothing and accessories Promotional Tools: Upper-Middle Class Sales Promotion Short term incentives Yoga classes; free drinks Product Target Market Competition Uses SGS to review records Conducts factory inspections, health reports, and safety reports The "Code" Outlines responsibilities and ethical behaviors Customer value-based pricing: Lululemon prices its products based on the value that consumers place on them More sales per square foot Compared to Abercrombie & Fitch, and Gap Conclusion Lululemon's package, warranty, after‐sale service, brand name, company image and other relevant factors: Lululemon offers a warranty policy Free yoga classes "Athletically Hip" yielded the "A" for the logo design. Women Men Public Relations Yoga classes 12 days of fitness Under Armour Adidas Nike Sustainability & Ethics Allison Karr Mission Superior Products Culture Lifestyle Community Yoga : $5.7 billion Direct Marketing Local yoga instructors vs. high paid celebrities Ambassador program Word-of-Mouth and Buzz marketing Place Personal Selling Employee training Product line strategy: Create products and services that promote better lives through yoga and physical fitness High pricing Remain exclusive High quality materials Greenwashing Stated that VitaSea line contained 24% seaweed fiber, when it did not Promotional Tools Stick With It - Everything that Lululemon is currently doing seems to be working well for the company so Lululemon should definitely stick with all present strategies and plans. OQOQO (pronounced OhKoKo) New line where the products are 75% sustainable Sustainability in stores Uses mugs instead of disposable cups Exclusive distribution strategy: Company managed and operated stores "Strategic sales partners” Stores located in high-end shopping areas. Fashion cycle (time between introduction of a new fashion and the replacement with a new fashion): Product life cycle is seasonal Products should be phased out at the ends of seasons Planned obsolescence Introduction, peak, and decline
Transcript: Business proposal for Lululemon May/31st/2020 Agenda 1. Company Background 2. Strengths 3. Agenda Improvements 4. Risks and Challenges Recommendations 5. Executive summary Executive summary Projected Result Solution Problem / Opportunity The problem that Lululemon has is not having a diverse market. Expanding to the middle east and create a new clothing line. An increase of sales while becoming global. Company Background Company Background Originated in Vancouver, Canada in 1998 by Dennis J. Wilson Yoga and athletics wear company Targets physically active people Focuses on quality over quantity Company Sales Sales As we can see in this graph, the sales of Lululemon have been on the rise in the past couple of years. Source: Yahoo.finance Company Market Market Place & Target Market This graph shows how the demand of leggings is increasing and growing. Stronger presence for leggings in the market place Lululemon targets those who are physically active Young adults 18 years old and adults until the age of 45 years old Source: Rakutenintelligence Lululemon Strengths Strengths 1. Strong brand image 2. High in Quality 3. Unique 4. Innovative Strengths in Detail In Depth Lululemon has a unique and a strong brand image amongst the fitness wear industry due to its high quality in products and high quality in its product’s materials. Another strength that Lululemon has is that it's always innovating and evolving depending on the trends that are happening in society, this makes its style appealing to the younger generation. Improvements Improvements Creating a Modest Clothing Line Diversify the Market Create a new target market Offering more options for women Testing the market Physical Expansion Expansion Opening a branch of Lululemon in the Middle East Open up new opportunities for Lululemon Create new customers from a different region of the world Widespread the company Discounts Affordable Discounts on Special Occasions Risks & Challenges Risks & Challenges Some of the Chellenges and Risks that Lululemon might face: Not being competitive enough Not enough research done Unusual changes Slow business Uncertainty Recommendations Recommendations Check company readiness before expansion Know where customer base is from Innovating depending on the market Accepting of change Timeline Budget Thank you for your time! The End Bhasin, Hitesh. “SWOT Analysis of Lululemon Athletica - Lululemon SWOT.” Marketing91, 26 Feb. 2019, www.marketing91.com/swot-of-lululemon/. Brooks, Chad. “How to Go Global: Challenges, Considerations and Tips.” Business News Daily, 2017, www.businessnewsdaily.com/8211-expand-business-internationally.html. Work Cited j, h. “How Much It Cost to Start a Clothing Line Business.” ProfitableVenture, 2018, www.profitableventure.com/cost-starting-a-clothing-line/. Joseph, Chris. “Advantages and Disadvantages of Opening a Production Facility in a Foreign Country.” Small Business - Chron.com, Chron.com, 21 Nov. 2017, smallbusiness.chron.com/advantages-disadvantages-opening-production-facility-foreign-country-42750.html. Quiroz, Michael Angelo. “A Growth Strategy for Lululemon 2018.” Medium, Medium, 31 Dec. 2018, medium.com/@michaelangelo_q/a-growth-strategy-for-lululemon-68819680e511. Stanglin, Doug. “Nike Begins Selling Sports Hijab for Muslim Female Athletes.” USA Today, Gannett Satellite Information Network, 20 Dec. 2017, www.usatoday.com/story/news/world/2017/12/20/nike-begins-selling-sports-hijab-muslim-female-athletes/970226001/. Work Cited. Tips for Developing an International Expansion Strategyby Globalization PartnersFebruary 2019, ., et al. “4 Tips for Developing an International Expansion Strategy.” Globalization Partners, 3 Feb. 2020, www.globalization-partners.com/blog/tips-for-developing-an-international-expansion-strategy/. http://www.rakutenintelligence.com/blog/2016/jeans-leggings-online-sales Laurenthomas, Jake. “Unlike Most Retailers, Lululemon Is Opening Stores. But It's Not One Size Fits All.” CNBC, CNBC, 24 Apr. 2019, www.cnbc.com/2019/04/24/lululemon-has-a-new-plan-for-its-real-estate.html.
Transcript: COULD IT WORK? in Hong Kong? Lululemon Athletica What is it? A clothing brand that produces yoga-inspired athletic apparel Lululemon Athletica promotes exercise staying fit good health Lululemon is all about a healthy and active lifestyle And by understanding the core theme of Lululemon Athletica we can see the BIG PICTURE to the path to success for Lululemon Industry Analysis Health and Lifestyle apparel Industry Resource Costs Employees Shipping Fitting sizes for the smaller frame of Asians Competition Piracy There is already so much COMPETITION and many obstacles in this market Lululemon is very unknown in the Hong Kong market Demand is very elastic and is not coveted to add on Lululemon into society would be highly difficult Lululemon isn't an "add-on" to society Lululemon is a change in society the reason why Lululemon has not been highly marketed in Hong Kong, sporting only one showroom in Causeway Bay very tiny open only 3 and a half days per week opened for a year and a half already "If we wanted to make money right away we'd be open seven days a week, 12 hours a day," - Victor Chan, East Asia representative "this is what drives revenue in the long run" "We aim to create an environment of healthy living" - Milla Wu Lululemon is trying to gradually change the lifestyle of Hong Kong that's impossible... but it turns out Lululemon implemented the same tactic in Canada and the US it played a significant role in the transformation of culture and lifestyle Lululemon is a huge success in North America Sarah W. from Santa Clara, California: "I don't need anything, but I absolutely WANT everything from Lululemon!" and that's what makes Lululemon so special Market Analysis What is the target market for Lululemon? Lululemon offers two things: Clothing that promotes a healthy lifestyle A fashion statement Vancouver is one of the top ten cities to live in the world due to its great and healthy lifestyle Fashion Statement? Lululemon has targeted the teenagers in Vancouver and it has become a phenomenon "every girl has to have a pair" - Amy N. "It's simple. I can go outside and do an errand and put on a pair of Lulu pants and a hoody and not worry if I look bad or not. I can go out to the mall in the same outfit and look fine. Lululemon is something I can wear and feel comfortable." - Christine C. Teenagers in Vancouver find identity through confidence in fitting in dramatically different "the hat they wear really high up" - Eric L. "fashion changes frequently" - Michelle T. "everyone wears something different" - Rebekah S. "clothes are your personal statement" - Adrienne A. "I dress to stand out from the crowd" - Michelle T. there was no one specific brand that people follow consistently Hong Kong teenagers find their identity in indvidualism - by being "unique and different" the demand for Lululemon is very elastic in the market of teenagers when my focus group was told a pair of Lululemon pants cost $90, none of them said they would even think about purchasing it their income is very low and this good is too elastic There is a demand for Lululemon in Hong Kong just in an entirely different age group market reason? the work and stress has been catching up with the workers, and "de-stressing" is a lot more necessary in Hong Kong YOGA "Yoga gives them a chance to de-stress. It gives them more energy to do the job. That makes it a good investment" - Eric Levine (CEO of Yoga Bikram) Pure Yoga now has 20,000 registered students Hang Sheung Yu, 28, Insurance salesman- "Yoga helps me keep in shape, but more importantly, it's good for relaxing" Mandarin Oriental include yoga mats in rooms and even hired a yoga master in Norweigan Alexander Medin working at the hotel "Business is booming, bigger than anyone, even we expected. Business is explosive, and I don't even think we have scratched the surface yet" - 28 year old manager of Pure Yoga Lululemon is already sold in Pure Yoga Lululemon is becoming a trend and lifestyle alongside Hong Kong's "yoga boom" Lululemon has to reach out to the Hong Kong market in a different way the target market is the working class, not the teenagers income effect enables this group of people to afford the luxury of Lululemon, as they have more money to spend on something more expensive Product Evaluation Lululemon Athletica is so simple but it offers something far more complex and profound it took the road less travelled it enters the industry in Hong Kong not as an "add on" to society but an implementation of change change in lifestyle this tactic has succeeded in markets in Vancouver and several places in the US the Hong Kong market is different from the Vancouver market confidence in fitting in individualism Lululemon has to take a different route and target at the working class needing to de-stress from their busy lives from living in Hong Kong Yes. Lululemon will one day become a trend in Hong Kong, starting with the older group in the working class, and will gradually trickle down the
Transcript: Lululemon Sarvin Sobhani Objectives of the plan Objectives of the plan 20% 20% 20% Special Events Special Events Advertisements Advertisements Social Media Ads Social Media ads Schedule of events Schedule of events Benefits to retail establisment Benefits to Retail Establisment
Transcript: Process Budget = athletica advanced Fashion Show Active Mannequins World of Water Campaign athletica advanced 1) Increase avg store visitors per week by 10% Lululemon Manifesto World of Water 2) Increase q4/q2 revenue by 30% "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." Schedule of Events + Advertising Through Social Media Objectives & Solutions 3) Complement exclusive image with social outreach and engagement World of Water Kick-Off Gala What is lululemon athletica? Business Active Mannequins
Transcript: Operations Strategy Scarcity/range of products Pricing Strategy Quality customer service Corey Werner Eva Warburg Jimbo Porrell Christa Sirignano Alejandro Chiossone Elie Mamiye Vision: To redefine the fitness apparel world Mission: Creating components to live longer, healthier, fun lives Competitive Priorities: Quality (Socially Responsible), Flexibility, Service Competitive Strategy: Treacy and Wiersema Operational Excellence Customer Intimacy Product leadership Product Place Promotion Price Key Impacts Build-to-stock supply chain Michael Treacey and Fred Wiersema's framework (focus on customer values, not a low-cost strategy) Operational excellence, customer intimacy, product leadership Service Quality Use of ships reduces carbon footprint 100x Long lasting products (5 year at least) reduces carbon foot print 2/3 of employees at Lululemon headquarters use Bicycles or take public transport New Idea Lululemon Athletica (LLLA) is a high-end, publicly traded active-wear brand Founded in 1998 by Dennis “Chip” Wilson Primary Market: yoga pants, athletic apparel, and fitness/yoga accessories Marketing Strategy Profits Integration Results Lululemon Corporate Strategy THANKS For Listening Planet Company Background Customer loyalty program geared towards sustainability People
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