Lululemon Marketing Strategy
Three Layers of LULU Products
Market Segmentation
Core Benefit:
- Clothe yourself for physical activity
Demographic
Geographic
Product Development
- Countries with high levels of income
Actual Benefit:
- Comfort
- Quality of fabric
- Freedom of movement
- Women aged from 25-34
- High income
- Busy with career and family, but still concerned about maintaining a healthy lifestyle.
- New: Men and young girls
Augmented Benefit:
- Complimentary reusable bag
- Using feedback from customers on product design
- Designers based in Vancouver
- Features such as fabric preventing odor-causing bacteria that differentiates LULU from competitors
- Plan of developing UV protective and reflective clothing
Distribution
Psychographic/Behavorial
- People who want quality sports clothes to meet their quality athletic needs
- People who want comfort and style.
- Health consious individuals and enthusiasts
Product
- 35 manufacturers placed in Asia
- 4 distribution centers: Vancouver B.C, Sumner Washington, Columbus Ohio and Melbourne Austrailia. (for e-commerce)
- Retail stores placed at strategic locations: malls, busy streets, etc.
- Show stores as part of the community
Socio-Cultural Aspect
- The change in consumer preferences from basics to prints and colors is a problem for LULU.
- They have to get the product assortment right in incorporating new prints, colors, textures, and sequins in their products.
- Shopping product: requires consumer to compare with competitors
- Specializes in apparel for women, men, and female youth
- Major products include fitness pants, shorts, tanks, sports bras, jackets, accessories: bags, socks, headbands, and yoga mats
Channels of Distribution
Retail Stores
- 289 stores across Canada, US, Austrailia, New Zealand an the U.K.
- About 77% of revenue
Direct to Customer
- Online store
- About 16% of revenue
Sales to Wholesalers
- Health clubs, yoga studios, etc.
- About 6% of revenue
Promotion
Unique marketing strategies
Brand Ambassadors
Price
Digital Promotion
Ivivva
- Apps: Lululemon and SeaWheeze
- Online store (web- site)
- Social media: Twitter, Instagram, Facebook and Snapchat
- Online newsletter
- 1500 individuals that represent LULU's lifestyle and values
- Elite ambassadors: 25 Olympians representing Lululemon
- Establish brand loyalty and promote brand products.
- Get athletes to try products for quality, fit, function fabric, design (market research)
- Dance inspired brand for young girls
- Derived from Lululemon
- Not yet significant revenue, but will widen consumer base
- Price-to-value is a key goal for the company when advertising new products
References
Sara Renner, Canadian cross-country skier who placed 2nd at the Turin 2006 Olympics.
from $50 - $170
- customer and profit oriented
- good quality clothing for price
Introduction
http://www.forbes.com/sites/greatspeculations/2015/07/13/two-surprising-factors-are-driving-growth-for-lululemon/
Advertising
Public Relations
http://marketrealist.com/2014/12/lululemons-target-market-product-assortment/
Prices form Nike resemble those of LULU but LULU can charge more due to innovative technologies
- Based in Vancouver
- Founded by Denis "Chip" Wilson in 1998
- Fill need for athletic apparel for woman
- First store opened in Vancouver in 2000
- T.V. ads
- Online promotions
- Posters
- Organized local events causing an increase in customer engament
- Community- based approach
- Keeps the brand at its peak and encourages repeat store visits
https://storify.com/acarron/lululemon-athletica-s-history