lululemon athletica
antonios bougiouris
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COMPANY BACKGROUND “Designer and detailer of technical athletic apparel… that creates transformational experiences for people to live happy, healthy and fun lives.”
« Premised on “elevating the world from mediocrity to greatness.” « Lululemon utilizes a “community-based approach to building brand awareness and customer loyalty.”
LOCAL AMBASSADORS
SOCIAL MEDIA
IN-STORE COMMUNITY BOARDS
GRASSROOTS MARKETING
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THE TARGET CONSUMER: OCEAN Ocean is “A professional single woman who exercises to achieve physical fitness and inner peace”. « In her early 30s, makes $100,000 a year « Highly detailed description: She is “engaged, has her own condo, is travelling, fashionable, has an hour and a half to work out a day” « Younger women who “can’t wait to be that woman” are also targeted. “Increasingly tasked with dual responsibilities of career and family and is constantly challenged to balance her work, life and health” Psychographic segmentation: extensive (VALS: all high resource segments)
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AN “AFTERTHOUGHT”: DUKE « Caters to men who appreciate the technical rigor and premium quality of products. Duke is an “athletic opportunist” who enjoys surfing and snowboarding. « Makes more than Ocean and is willing to pay up for quality. « Major growth avenue though brand values sit far from the usual macho appeal of men’s sportswear.
Seems like an afterthought to core female range.
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PROBLEM STATEMENT Lululemon has attempted to reposition itself over the past two years. Despite continuing success in the original women’s market space, brand and product extensions into other sports segments, as well as the men’s market, have produced mixed outcomes and has recently faced stagnant same-store sales, which have impaired growth. Attributed to: « Changing consumer demands and perceptions « Encroaching competition « PR Scandals « Sear pants scandal
How can lululemon break away from its exclusive association to women’s yoga?
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IN-DEPTH INTERVIEW FINDINGS ü lululemon’s best customer is not lululemon’s typical customer ü Employees believe popularity relies on innovation, customer experience and community involvement ü Employees deem brand awareness to be an area lululemon needs to improve ü As consumers move online, lululemon should improve its online buying experience to provide a similar experience online as in store. . ü Potential threats: Diminishing popularity of yoga + the black legging Brands that offer similar products to lululemon + others ü Reactions to sheer-pants scandal are due to quality concerns, not Chip Wilson Grass-roots marketing is in the hands of store employees. With an increased need to change brand associations and improve buying experience online, is grass-roots marketing viable long-term?
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QUALITATIVE RESEARCH LADDERING INTERVIEWS OBJECTIVE
Uncover underlying emotions, consequences & personal values that drive consumers to purchase lululemon over other brands.
A positive ladder was built based on the initial question:
“Why do you choose lululemon over other brands?”
Attribute
Benefit
Value
Fit
“It looks good on me”
Increased Confidence
Materials
“It feels good”
Fun & Enjoyment
Quality
“It’s worth the money”
Purchase Satisfaction
In marketing communications, lululemon should focus on the value end states of increased confidence and enjoyment that their products lead to. Similar responses by male and females, suggesting that consumer preferences converge as brand loyalty increases, regardless of gender.
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167 physically active
respondants
111 FEMALES
56
MALES
FROM
QUANTITATIVE RESEARCH SURVEY THE GREATER MONTREAL AREA
20% OF FEMALES AND 52% OF MALES NEVER SHOP AT LULULEMON
OBJECTIVES ü ü ü ü ü ü ü ü
To determine purchasing habits of lululemon’s products To determine brand associations with lululemon’s products To determine customer perceptions of the lululemon brand To determine the why customers purchase lululemon products To determine the efficacy and desirability of in-store events To determine reasons for in-store vs. online purchasing behaviour To determine whether lululemon is still suffering from the “sheer-pants” scandal To determine differences between male and female perceptions of lululemon
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SURVEY FINDINGS What would lead to more frequent store visits? responded that products more relevant to their needs.
34%
9%
claimed that more relevant in-store events.
Many commented that lower prices would lead to more frequent visits. In fact, 70% of women and 46% of men say that they are aware that lululemon offers free yoga sessions; only 8% and 6% have tried one. Awareness of the variety of sports lululemon caters to is lacking. Importance of in-store events is not as high as management believes.
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SURVEY FINDINGS What fitness activities do you associate with lululemon?
While almost all consumers associate lululemon to yoga, less than half tend to associate it with other sports or activity.
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SURVEY FINDINGS Where do you wear lululemon?
While 96% of males and 87% of females associate lululemon with yoga, consumers wear the brand mainly for other activities. This shows product versatility. Since the product is not being used for their intended use, there is a realistic opportunity to reposition.
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SURVEY FINDINGS Customer perceptions When asked to describe lululemon as a person…
“Health Conscious”
64% 69%
“Innovative”
23% 27%
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SURVEY FINDINGS Why do you purchase lululemon?
90% 49% “I like the product, it fits well and looks good on me.”
“The clothing addresses functional needs for my sport.”
5% “It provides me with a sense of belonging to a greater community.”
This confirms findings from laddering interviews. Consumers do not purchase lululemon because it provides them a sense of belonging to a greater community.
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RECOMMENDATIONS OVERVIEW Taking into consideration research findings, current financial resources and brand personality.
Consistent brand strategy that focuses on empowerment.
Broaden in-store events to offer activities/services other than yoga
Supplement grassroots with an extensive digital campaign to accelerate awareness of repositioning.
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RECOMMENDATION ONE BRAND MESSAGE Alter brand attributes to encompass the word empowerment. Provides a competitive attack on competing brands, such as Athleta à “Power of the she.” The word empowerment:
« Includes the words men, women and power. « Aligns with current values of self improvement and betterment « An extension to what they already do but an elevated end state.
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RECOMMENDATION TWO IN-STORE EXPERIENCE Current in-store events § Only yoga classes on Sundays at 10 Build on culture of training & personal growth § Provides employees with a supportive, goal-oriented environment and encourages them to reach their full professional, health, and personal potential. § Personal development workshops can extend to consumers creating a system of benefits/community difficult to imitate. Appeal to achievers/innovators § Achievement/goal oriented § Like diversity and trying new things § Have disposable income Other potential events § Nutritionists/Wellness providers § Motivational Speakers § Other fitness activities like Run Club or Personal Trainers
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RECOMMENDATION THREE DIGITAL CAMPAIGN Current grassroots marketing strategy: Social media, local ambassadors, and community events
!
Efforts are lengthy and must be tailored to each new market based on their emerging understanding of the market.
Competitors achieve and maintain brand awareness and market share more quickly and effectively through their use of traditional advertising and celebrity endorsers. This could be the reason for discrepancies between customer and brand perceptions of lululemon.
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RECOMMENDATION THREE DIGITAL CAMPAIGN “OWN YOUR POWER” CAMPAIGN – Part 1 « Highlights Empowerment § Individual process & valued end state § Speaks to the current trend of highlighting individuality and uniqueness « Symbolic association based on aspirational based brand imagery. § Leverage local & elite athletes/ambassadors § Uses a variety of narratives § “What Empowers You?” « Gender neutral colors and images « Campaign Message à “Own your Power” § lululemon helps achieve the confidence, satisfaction, and enjoyment you seek.
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RECOMMENDATION THREE DIGITAL CAMPAIGN “OWN YOUR POWER” CAMPAIGN – Part 2
« Utilizes customer engagement à Participants share their stories « Allows for user generated content and unpaid media « Solidifies and widens brand community
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RECOMMENDATION THREE DIGITAL CAMPAIGN