Lululemon Athletica Brand Extension | amphibian
2015 YMA Fashion Scholarship Fund Case Study Shaina Levin Savannah College of Art and Design Fashion Marketing and Management Lululemon is deeply committed to the well-being and fitness of their community of loyal followers. However, Lululemon is currently landlocked in the scope of their approach to personal fitness. Fall 2015 presents the perfect opportunity for Lululemon to recognize the many activities that encompass the lifestyles of modern women by introducing amphibian, a collection of exclusive swimwear created around a concern for sustainability and the values of the Lululemon brand.
Lululemon Athletica Brand Extension | amphibian
Introducing amphibian: Since 1998, Lululemon has shared thew spirit and the practice of yoga with community members around the world (Lululemon, n.d.). Chip Wilson’s discovery of the first commercial yoga class in Vancouver, Canada inspired the brand to embrace yoga, cycling, and running as ways to practice healthy lives and to empower mental aspects. Today, fitness experts report that cross training, going from yoga on land to workouts in the water, is “ideal for working muscles that have been unintentionally neglected” (Roberts, 2014). Recognizing this, Fall 2015 is the perfect season for Lululemon to introduce amphibian to customers and to guide them from the land to the water. The marketing campaign entitled “we are not just yoga” and a product line incorporating recycled REPREVE textiles will set Lululemon a part from emerging competitors.
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Lululemon Athletica Brand Extension | amphibian Athleta and Nike compete with Lululemon for share of customers in the fitness marketplace. Athleta’s strengths focus around a compelling brand image, competitive price points, and broad product selections (Lutz, 2013). Athleta also accommodates an extensive cross section of women of all body types through the availability of large and plus sizes.
Nike is the global industry leader in the fitness marketplace, whose logo is immediately recognized by customers around the world. Nike’s strengths center around their product expertise, working through Nike lab to develop innovative fabrics and materials for crafting cutting edge styles with the power to revolutionize the industry.
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amphibian targets women, ages 18-33, who are currently fueling the increased participation of women in sports and the demand for sportswear apparel (Sports Participation, 2014). These consumers value sports and fitness as part of their personal identity. Millennial consumers are connected to social media and stay informed of current fashion trends and global events through time spent on the Internet. These consumers are interested in a variety of sports and many call themselves “triathletes.” They are confident, fashionforward, and lead active lifestyles. They are physically, socially and environmentally conscious.
Lululemon’s marketing campaign called “we are not just yoga” creates openness for female consumers, adding value to their product, and enticing customers to the amphibian collection.
• August will feature the launch of the “we are not just yoga” campaign on social media, the Lululemon website, and the amphibian app for smartphones, as well as the introduction of the amphibian collection of swimwear in stores and online. • Special events will be key to supporting the launch of amphibian. These events will include community workouts held by brand ambassadors and the sponsoring of high profile athletic events by amphibian, including the Iron Girl Triathlon and the Rugged Maniac Obstacle Race.
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Lululemon Athletica Brand Extension | amphibian
• Marketing is dominant during the holiday season to take advantage of the high level of customer traffic experienced by Lululemon stores and to provide a competitive stance in the marketplace. January is a key month for consumers to embrace New Year’s resolutions focusing on yoga and fitness.
Featuring amphibian in Stores REI: REI is a retailer dedicated to sustainability and the outdoors, selling gear and apparel for a variety of activities and adventures. An in-store shop for amphibian at REI stores will allow the brand to heighten its exposure to a large base of new consumers, whose lifestyles and values should complement the collection. The amphibian swimwear line will provide these women with a sense of adventure and style, while also presenting a focus on the environment and sustainability. Product knowledge presented in the shop will tell the story of the REPREVE materials that are the basis of the collection and its deep commitment to sustainability. Barneys New York: Barneys is known as “an emporium of style and gorgeous products” that provide a sophisticated audience of urban, affluent consumers to support the launch of the amphibian collection (About Barneys, 2014). Barneys store locations are ideal for targeting amphibian customers because they are located in major cities where yoga and fitness are popular, including New York, Chicago, San Francisco, and Los Angeles (Orr, 2014). Barneys New York is known for launching new designers and collections in their stores, which should create a high quality of exposure for amphibian’s Fall 2015 launch. NET-A-SPORTER: E-commerce website, NET-A-SPORTER will expand Lululemon’s brand recognition to Millennials who frequently shop online and turn to online resources, such as NET-ASPORTER to stay in tune with the latest luxury brand introductions (“NET-A-SPORTER,” n.d.). amphibian will add to the already impressive assortment of high quality activewear that is featured on this website.
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Lululemon Athletica Brand Extension | amphibian
amphibian Merchandise Assortment Plan Fall 2015 The amphibian collection of swimwear will be crafted with REPREVE, a recycled fiber made from post-industrial waste, such as plastic bottles (“REPREVE #TURNITGREEN,” n.d.). The REPREVE process of manufacturing uses recycled fibers that are “first quality” to provide customers with fabrics that are both comfortable and functional. A focus on sustainability will run through the entire production process, including the sourcing of all materials and the manufacturing of finished products. Crafting the amphibian collection through the REPREVE process will allow for creating a sustainable and environmentally friendly swimwear collection, fashioned of recycled nylon and polyester textiles (“Product lifecycle,” n.d.). The amphibian collection will provide modern women swimwear pieces that are on trend, fun to wear, and a positive step forward for the environment.
The amphibian product assortment includes feminine and neutral color combinations that are unique to swimwear and are suitable for all seasons of the year. Each style can be worn during any type of workout. amphibian customers appreciate the versatility of the pieces so they can go right from yoga class to the pool. Bikini tops and bottoms provide strong support for swimming workouts while tops, jackets, shorts, and leggings offer breathable and warm coverage.
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Lululemon Athletica Brand Extension | amphibian
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Lululemon Athletica Brand Extension | amphibian Competitive Price Analysis:
• This pricing strategy for amphibian swimwear reflects the quality standards of the collection, as well as the use of sustainable recycled REPREVE textiles in its production. • The Lululemon brand features products at the higher end of the pricing spectrum, displaying its commitment to high quality standards and sustainable production. Comparing Lululemon products offered today, the pricing of amphibian reflects the same values and brand strategy. • We can expect to see for Fall 2015 many new competitors entering the activewear marketplace at very competitive prices. It will be crucial for the success of the launch of amphibian that the message of quality and sustainability is presented by the marketing campaign in a compelling way.
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Lululemon Athletica Brand Extension | amphibian
amphibian Fall 2015 Open-to-buy
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Lululemon Athletica Brand Extension | amphibian
• The sales plan of $1.7 million for Fall 2015 reflects the launch of amphibian as a new collection of swimwear for Lululemon. • Sales for November and December are planned to recognize the importance of the holiday season and the high level of customer traffic experienced by Lululemon stores at this time. The month of December will also include the introduction of new resort styles for amphibian. • The flow of receipts for Fall 2015 has been planned to provide for delivery to the distribution center in a given month the inventory required to support the following month’s planned sales.
Additional Markets for amphibian Pop-up Stores San Francisco, California: San Francisco has a “culturally rich and diverse” base of consumers whose lifestyles embrace yoga and fitness (“Yoga in San Francisco,” n.d.). San Francisco is an Eco-District where efforts toward reducing environmental impact, building sustainability, and nurturing community values are a part of everyday life (“Sustainable Development,” 2014). A pop-up store for amphibian in this marketplace will tap into these community ideals, while also taking advantage of a major capital for fashion and style. Chicago, Illinois: Lululemon’s Facebook page for this city is “Run Lululemon: Chicago” (“Run Lululemon: Chicago,” 2014). The brand caters to the needs of the Chicago community, which is why the launch of amphibian will be successful. Chicago is not only known for runners, but the city also has a significant triathlete community (“Welcome to the Chicago Tri Club,” n.d.). A pop-up store for amphibian in Chicago provides exposure to the brand to a large audience of urban consumers already pursuing a variety of fitness activities. New York, New York: New York provides a global platform for the launch of the amphibian collection. The city offers numerous outlets for yoga and fitness and also stands as an international Mecca for fashion and style. The sophisticated population of residents and visitors who make up New York will represent an audience with great potential for embracing the launch of the amphibian collection.
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Lululemon Athletica Brand Extension | amphibian References
About Barneys. (2014, January 1). Retrieved November 6, 2014 from http://www.barneys.com/on/demandware.store/Sites-BNY-Site/default/Home-Show. About NIKE, Inc. (n.d.). Retrieved October 6, 2014, from http://www.nike.com/us/en_us/. Athleta. (n.d.). Retrieved October 6, 2014, from http://athleta.gap.com. Pacific Place. (n.d.). Retrieved October 26, 2014,from http://www.pacificplaceseattle.com/shops. Helliker, K. (2010, September 13). Lululemon Grows Fast on a Slim Budget. Retrieved October 6, 2014, from http://online.wsj.com/articles/SB1000142405274870 3960004575481890366935552. Kowitt, B., & Leahey, C. (2013, August 29). Lululemon: In an uncomfortable position. Retrieved October 6, 2014, from http://fortune.com/2013/08/29/lululemon-in-an-uncomfortable-position/ Incorporate Intervals into Your Swim Workout. (n.d.). Retrieved October 6, 2014, from http://blog.codyapp.com/incorporate-intervals-into-your-swim-workout/. Lululemon ambassadors: Yoga marketing warriors. (2010, September 10). Retrieved October 6, 2014, from http://www.itsallyogababy.com/lululemon-ambassadors-yoga-m arketing-warriors/. Lululemon Athletica inc. (2014, October 1). Retrieved October 26, 2014, from http ://files.shareholder.com/downloads/LULU/3475353373x0x766923/AC87B033-1A64-47B59DAE-978862EF7D81/2013_10K.pdf. lululemon athletica South Miami. (2014, January 1). Retrieved October 26, 2014, from https://www.facebook.com/lululemonSouthMiami. Lululemon. (n.d.). Retrieved October 6, 2014, from http://shop.lululemon.com/home.jsp. Lutz, A. (2013, March 25). Why Gap’s Athleta Will Overtake Lululemon. Retrieved October 6, 2014, from http://www.businessinsider.com/reasons-athleta-will-beat-lululemon2013-3?op=1 Mattioli, D. (2012, March 22). Lululemon Athletica Inc. Retrieved October 6, 2014, from http://online.wsj.com/articles/SB10001424052702303812904577295882632723066 NET-A-SPORTER. (n.d.). Retrieved October 6, 2014, from http://www.net-aporter.com/us/en/d/Shop/Sport?cm_sp=topnav-sport-landing. Nike Inc. (2014, October 1). Retrieved October 26, 2014, from http://news.nike.com. Orr, B. (2014, May 30). Barneys New York Continues Digital Advancements with Launch of Personalized Internal Search Capabilities on Barneys.com. Retrieved November 6, 2014, from http://www.marketwatch.com/story/barneys-new-york-continues-digital-advancementswith-launch-of-personalized-internal-search-capabilities-on-barneyscom-2014-05-30. Pinterest (2014, January 1). Retrieved November 9, 2014, from http://www.pinterest.com. Product lifecycle | corporate social responsibility | lululemon athletica. (n.d.). Retrieved November 10, 2014. REPREVE #TURNITGREEN. (n.d.). Retrieved October 19, 2014. http://www.repreve.com Run lululemon: Chicago. (2014, January 1). Retrieved October 26, 2014, from https://www.facebook.com/runlululemonchicago. Roberts, A. (2014, August 5). 4 reasons your next workout should be a swim. Retrieved from http://www.womenshealthmag.com/fitness/swim-workout Sports Participation - Executive Briefing. (2014). Passport, 2-12. Retrieved from Warc. Sustainable Development. (2014, August 15). Retrieved October 26, 2014, from http://www.sfplanning.org/index.aspx?page=3051. SUSTAINABLE OPERATIONS. (2014, January 1). Retrieved November 6, 2014, from http://www.rei.com/stewardship/sustainable-operations.html. Welcome to the Chicago Tri Club. (n.d.). Retrieved October 26, 2014,from http:// www.chicagotriclub.com. WGSN. (2014, January 1). Retrieved October 26, 2014, from http://www.wgsn.com/home/WGSN. Yoga in San Francisco (n.d.). Retrieved October 19, 2014, from http://www.yogitimes.com/city/ san-Francisco
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Appendix A
amphibian Smartphone App
amphibian app provides an educational experience, taking customers through the story of the brand extension from sourcing REPREVE fiber textiles to designing the swimwear line for Lululemon community followers.
The app presents amphibian through product campaign photos to give customers the most inspirational, motivating, and innovative online shopping experience.
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Lululemon Athletica Brand Extension | amphibian
Appendix B
Introducing amphibian to the blog
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Lululemon Athletica Brand Extension | amphibian Appendix C
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Lululemon Athletica Brand Extension | amphibian
2015 YMA Fashion Scholarship Fund Case Study Shaina Levin Savannah College of Art and Design Fashion Marketing and Management