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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

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