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LULULEMON’S ATHLETICA
Talya Levenson, Alex Wenger, Larissa Portaluppi, Daniela Vergoosen
MKTG 445: Global Makreting
BACKGROUND
Founded in Vancouver in 1998 by Dennis Wilson
Specialize in technical athletic apparel for yoga, running,
walking, dancing, cross-fitness, and Pilates
Every Lululemon location has strong ties to local community
Goal= “Train our people so well that they could in fact positively
influence their families, communities and the people walking into
our stores”
Lululemon encourages healthy lifestyle choices
Having set goals = what the Lululemon culture is all about
PRODUCT ITSELFHigh quality seaming and stitchingHigh quality fabric and technologies
• Luon®, Swift and Luxtreme™• 6 Natural Blends• Mesh and COOLMAX®
PRODUCT
The clothes will be used more for running than
yoga
People in London wear more muted colors in the
fall and winter
In the spring and summer people start wearing
colors
Need to adapt the tags to include U.S., UK and
Canadian sizes
HOFSTEDE’S CULTURAL D IMENSIONS
0102030405060708090
100
IndividualismPower DistanceUncertainty AvoidanceMasculinty
5 REASONS FOR SUCCESS
1. Has developed a social media presence through various
platforms
2. Connects through establishing relationships with
customers.
3. Use of real people to promote products
4. Welcomes and responds to public feedback
5. Blog has significant space dedicated to educating
customers about the yoga lifestyle
DEMOGRAPHICS
Temperature= Moderate and more than one-half of the
days are overcast
Very diverse: 59.8% White, 20.9% Asian, 15.6% Black,
6.6% Indian
London’s population is expected to exceed 9 million by
2031
Population= younger than rest of the UK by 2/3 and 64%
are aged under 44
STATISTICS
Walking activity in London
Travel patterns= 31% of trips in London are made
on foot
In outer London the walk share of trips is 64%
higher for people without a car or household with
just 1 car in the family
TARGET MARKET
Londoners that like to buy and spend in high end
luxury boutiques
Women ages= 25-50
High disposable income
Fashion forward/Trendy
DISPOSABLE INCOME
London’s economy is outperforming the rest of UK
by 12.4%
London contributed 21.9% of UK’s output
Has the highest household income per head (nearly
30 per cent higher than UK average)
Inner London’s average highest disposable income
is at £33,323
PRICING STRATEGY
Currently use Value Added Pricing, they do not cut
costs to make lower quality products
Add extra features ex: Adjustable straps to
differentiate themselves from that of competitors
Prestigious and exclusive product in their category/
not found in every city which adds to exclusivity
PRICING STRATEGY CONT’D
London currency is stronger than U.S.
Average dollar value compared to pound in 2012 $1.52 =
£1
Add 35-45% to prices to account for higher maintenance,
operation, and facility costs in London
Decision: keep prices stable regardless of daily exchange
rate fluctuations
http://www.x-rates.com/graph/?from=GBP&to=USD
STORE LOCATION
London has the highest disposable income per
household
Narrowed it down to 2 locations:
1) Chelsea’s Kings Road
2) Regent Street
PROMOTION STRATEGY
Juice Parties
Free Yoga classes, and information sessions
KEY= social media:
http://www.youtube.com/watch?v=QUF36chCPuA
Get “Made in Chelsea” celebrities to promote
products
Touch Screen TVs
THANK YOU
May the yoga breath be with you!
Namaste
WORKS CITEDhttps://www.cia.gov/library/publications/the-world-factbook/geos/uk.html
http://www.londoncouncils.gov.uk/londonfacts/default.htm?category=2
http://www.tfl.gov.uk/assets/downloads/Walking-in-London-report-May-2008.pdf
http://www.visitlondon.com/things-to-do/activities/shopping/top-shopping-destinations
http://www.kxlife.co.uk/club
http://www.ons.gov.uk/ons/rel/regional-trends/regional-economic-indicators/march-2013/sty---infographic-s
ummary.html
http://www.lululemon.com/about/
http://smbp.uwaterloo.ca/2012/10/five-elements-of-lululemons-social-media-success/
http://www.reuters.com/article/2013/10/08/us-lululemon-outlook-analysis-idUSBRE99712S20131008
http://www.Lululemon.com http
://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&ved=0CCsQFjAA&url=http%
3A%2F%2Fwww.bhf.org.uk%2Fplugins%2FPublicationsSearchResults%2Fidoc.ashx%3Fdocid%3De9994c21
-ec6c-4fad-b741-ad96bacd69ed%26version%3D-1&ei=DGifUvTkH-vLsQTGtYGABg&usg=AFQjCNFUGYgyg
RlBgu4NRJXrOLE3IzjC1w&bvm=bv.57155469,d.cWc
http://www.accenture.com/us-en/Pages/insight-enabled-uk-shoppers-online-buying-report.aspx
http://www.dailymail.co.uk/femail/article-2513436/Are-yoga-pants-new-jeans-How-trend-led-workout-cloth
es-making-fashion-statements-outside-gym.html
http://www.businessinsider.com/meet-sweaty-betty-londons-pricier-lululemon-2013-12