Lululemon Fitness Bar

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TABLE OF I. Introduction Page 4

II. Company Page 5

III. Industry Megatrends Page 14

IV. Fitness and Wellness Page 17

V. Food Industry Page 24

VI. Market Page 30

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CONTENTS VII. Consumers Page 36

VIII. Primary Research Page 53

IX. Key Findings and Analysis Page 63

X. Strategy and Execution Page 72

XI. Sales, Finances Page 94

XII. Conclusion Page 99

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I. Introduction Project Justification

Fitness and wellness have grown significantly in recent years, nowadays consumers are concerned about their diets, have a growing interest in nutrition, and they like to track their fitness goals. Consequently, the expectations of fitness and wellness brands is raising as people demand rapid responses, personalized experiences and motivating communication.

While many brands compete in the yoga and fitness apparel space, Lululemon has positioned itself as an industry leader by building a community around its brand. Even though started focused on the yoga community, now it is recognized as a Fitness and Wellness brand that has cultivated loyal customers through experiences and collaborating with local yoga teacher, runners and fitness professionals to represent their brand. Lululemon cares about the people, they want to do more than apparel, they want to invest in people, they want to connect with them making them feel comfortable, so they create products that allow them to live their life.

Since Lululemon’s commitment is to build community around yoga, running, fitness, and wellness, this M.A project will deliver a business and marketing plan for a Fitness Bar brand extension where people can eat healthier with carefully selected food, special condiments, snacks, distinct flours, nut butters, and selected protein powders that individuals can choose from based on their health and fitness goals, including aliments for celiac consumers. Aside from a variety of healthy meals, they would even have the option to take their pre and post workout meal while shopping for Lululemon products.

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II. Company Research Lululemon athletica designs and sells activewear for physically active people, or those who desire to be. Lululemon also launched a teenage girls line name ivivva which is yoga-inspired clothing and accessories. The company focuses on creating women’s and girls’ clothing, however, since a while ago it started to also design clothes for men. Lululemon functions some 400 company-owned stores in about a dozen countries, most of them are in North America and sells online and via mobile apps. Its clothing is manufactured by third-parties located mostly in South and Southeast Asia. Fast-growing Lululemon was founded in 1998 by Dennis “Chip” Wilson According to D&B Hoover’s platform.

Lululemon headquarters are in Vancouver Canada, however the US is by far the largest market for its stores, accounting for nearly 70% of its sales; Canada and Australia are the next largest markets, with other store locations in the AsiaPacific region such as China, South Korea, New Zealand, Singapore, and Japan.

Plus Europe in Germany, Ireland, Switzerland, and the UK. According to D&B Hoover’s platform.

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Lululemon operates through two primary segments: company-operated stores and direct-to-consumer. The company has a chain of some 400 retail stores of which operate under the Lululemon name and about half a dozen use the ivivva name and target girls. These stores are located in malls and in popular streets in about a dozen countries, generate about 70% of total company revenue. Lululemon’s direct-to-consumer segment, which accounts for more than 20% of revenue, includes sales made via its website and mobile apps. The residue of revenue, less than 10%, comes from warehouse sales, wholesale operations, showrooms, and licensing and supply agreements. According to D&B Hoover’s platform.

Lululemon’s sales have ascended along with the growing popularity of yoga and its improved brand awareness rising from about $275 million in fiscal 2008 to more than $2.6 billion in fiscal 2017 despite an economic downturn that conspired against the company. The Net income has followed a similar curve, jumping tenfold over the past decade. According to D&B Hoover’s platform.

In fiscal 2017 ended January 2018, the company stated revenue of $2.6 billion, up 13% from the previous year. The results were motorized by new store sales which accounted for nearly half the growth and a 27% jump in direct-toconsumer sales which accounted for about 40% of the growth. According to D&B Hoover’s platform.

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Although the long-term trend for net income has been positive, in fiscal 2017 it fell 14% to about $284 million as SGA expenses jumped 16% associated to personnel and digital marketing investments, among other issues. Lululemon also reported nearly $40 million in asset loss and rearranging costs as it reorganized its ivivva operations. According to D&B Hoover’s platform.

Cash at the end of 2017 was about $991 million, a rise of some $255 million from the prior year. Cash from operations contributed $490 million to the coffers, while investing activities used $173 million, mostly for property and equipment used in the buildout of new stores. Lululemon’s financing activities used another nearly $100 million, principally on stock buybacks.

Long a favorite of women, Lululemon has made men a key element of its growth strategy. In 2017 the company launched its first global marketing campaigns, targeting men “Strength To Be”. It is increasing the number of stores that carry men’s clothing and has plans to generate some $1 billion in revenue a quarter of its total anticipated sales from menswear by 2020. According to D&B Hoover’s platform.

The company is also focused on international expansion, particularly in the AsiaPacific region. In 2017 it opened about 15 stores in China, Japan, Australia, and New Zealand. As with the men’s business, Lululemon hopes its Asian operations will bring in $1 billion by 2020.

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Finally, Lululemon continues to invest in its digital operations, which helped drive 27% growth in the direct-to-consumer segment in fiscal 2017. It relaunched its website that year with upgraded visuals, more video, and improved navigation, among other enhancements. As part of its digital efforts, Lululemon restructured ivivva its brand primarily for teenage girls, as an e-commerce focused brand.

According to D&B Hoover’s platform.

Lululemon keep its vision which is to create more than a place where people could get gear to sweat in, they wanted to create a community where people could learn and discuss the physical aspects of healthy living, mindfulness and living a life of possibility. It is also important to create real relationships with their customers and understand what they are passionate about, how they like to sweat and help them celebrate their goals. Today, they do that in their stores around the globe. According to Lululemon Athletic Even though at the beginning they focused in a specific limited market, yoga apparel made just for women, they have listened their customers and have evolved to a bigger market, they now design apparel and accessories for yoga, running, cycling, training and other sweaty activity for women and men.

Their core values also keep constant “is our desire to empower people to reach their full potential through providing the right tools and resources, and

encouraging

a

culture

of

leadership, goal setting and personal responsibility. Our core values of quality, product, integrity, balance, entrepreneurship, greatness and fun are lived by our people every day and are at the heart of our unique company culture. We live a life we love. We set our goals to align with our vision, and it’s why, so often, our one-year goals become today’s 10

reality”. According to Lululemon Athletic Company.

Accordingly, their mission is to keep building community and connect with customer through experiences, they are very committed to create their product with a purpose, so these products become part of the consumer’s lifestyle essentials.

The Fitness Bar is intended to provide innovative healthy options such as pre and post workout meals/drinks, and 100% natural and fresh food to help consumers to keep their healthy lifestyle. Nowadays, people are looking for a more balanced life, they want to be active, eat healthier, therefore, we want our customers to enjoy eating out without jeopardizing their lifestyle. I want to create more than a coffee shop or a juice bar, I want to create a place where people can get the right nutrition depending on their goals while enjoying their food. This is how the fitness bar connects to Lululemon’s core values and vision. I want to keep building community and build a stronger connection with our customers where their health is our primary concern.

In 2017 Lululemon launched its first global marketing campaign and it has relied on a community-based approach, which includes local brand ambassadors, social media, and grassroots initiatives to increase brand awareness and built community. The company’s target customer was women, and now it is also targeting men as one of its key strategic pillars.

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Lululemon Customers Demographics It has expanded its age range since created a line and website focuses on teenage girls. However, the majority of the company’s demographics are made up from adults, women and men since they introduced the men line, between their 20s – 45s, they wear Lululemon athleisure brand because its designs and fabrics are functional, they help people to better perform their sports activities.

Alternatively, another part of its target consumer wears this athleisure apparel as a lifestyle, they wear it because is comfortable, stylish, high quality and represents a lifestyle. Lululemon’s target consumer right now can be defined as well educated, middle to high income level, health-conscious and fitness enthusiast or inspired by.

People that earn an average or

above

the

average

income in their state. This varies because the average income changes depending on the states and this is a high premium apparel brand.

Consumers can be found shopping online and within the retail stores.

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Psychographics Lululemon’s consumers are people that want to have a healthy lifestyle and are inspired by fitness trends such as yoga, running, cycling, cross-fit, boot camp, among others. People looking for products that can help them to improve in their sports activities. Customers that are busy in their work life and personal life, but they still have a balance and make time for fitness and healthy lifestyle.

These

people

are concerned about their workout clothing and how they look in them before, during and after a training session.

Alternatively,

people that are inspired by community and it brings to them a lifestyle that Lululemon has created.

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Lululemon Products

They have a wide range offered to consumers in the athletic apparel industry. Their products

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depending on the season and what will be in demand from customers (Quiroz).

variety are from yoga mats, shoes, accessories

In the summer, they have a swimwear

to tops and bottoms for activewear every day.

collection named “vacation -ready gear line�,

Lululemon has everything that any consumer

this line includes rash guards, hats, shorts, tops,

would need for a day at the gym, studio class

and bottoms made for warmer weather along

or day spent in any sports activity focused. The

with swim suits. The winter season brings more

company is most known in the yoga world for its

jackets, hoodies, scarves, hats, gloves along with

pants, but other products are also top sellers for

other products. Lululemon products are designed

customers. They have cropped pants, shorts, and

for use during yoga, running, cycling, cross fit

skirts and regarding to tops includes sport bras,

among other sports activities. They design

tank tops, short sleeves, long sleeves, hoodies

clothes and products to use them for fitness and

and jackets. The accessories that the company

also in everyday life.

provides involves socks, shoes, bags, yoga mats,

Lululemon product prices varies depending on

scarves, headwear, gloves and water bottles.

each category, people will find pants at a price no

Lululemon generates different lines products

lower than $98, shorts at $58, range anywhere

$50 and beyond. Accessories are not much more inexpensive than the tops or bottoms when shopping at Lululemon. Its products are priced on a higher end because of their use of highquality materials and technology. (Quiroz).

According to Yahoo Finance, Lululemon Athletic future performance will have a15.9 % expected annual growth in earnings. Their earnings are expected to exceed the United States of America market average and their revenues growth is expected to exceed the United States of America market average. This projected growth will be beneficial to Lululemon’s Fitness bar brand extension because it will provide enough revenue to enter a new market.

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III. Industry Megatrends One of the segments such as group training,

Wearables are becoming more indispensable

high intensity interval training, corporate fitness

inside clothing, a good example of this is the

and interconnectivity the one that stands out

transition from a chest strap to a wrist sensor.

from the fitness industry is digital resources and

According to an article from (Ispo.com).

projected to keep growing like apps, wearables

Another megatrend in the Fitness industry,

trends that focus functional training and group

according to an article from (Ispo.com) are the

training. For the industry it is important to focus

Boutique Studios as an alternative economic

on the health market, particularly promoting

option. As a matter of fact, there is a growing

health based on exercise.

number of modern business concepts, which can

Wearables record data during training and

provide personal trainers with on a solid financial

also give feedbacks on the activities because

basis. For example, there are support concepts

these also have an effect on people’s physical

that work by providing a gym with basic support

health. This means that this trend will move

and, on top of that, they provide to certain target

from gathering training data to overall health

groups with a personal trainer upon request. This

information. The idea is to have everything linked,

concept is more oriented to spaces for specific

and have this wearable connected to all other

classes with a small area for strength training.

devices used by the customer, so smartphones

The boutique concepts are very interesting

play an important role in this trend, consequently,

for personal trainers, as they work in smaller

apps and even training equipment will be becoming

studios, but they offer valuable training programs

interconnected and networked. According to an

for a particular target group. Subscriptions for

article from (Ispo.com).

this interesting concept boutique studios are

Since wearables have been a powerful trend

cheaper and becoming more popular since they

and will become even more significant with

have “everything� and are increasing benefits for

sensors inside clothing to facilitate their usage,

consumers.

for example in the soles of sports shoes, inside of sleeves jackets etc. And possibly we will see sensors that one ingests orally or has implanted under the skin being marketed in the near future.

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However, gyms have responded quickly and

often extend to the gym on one day, swimming on

effectively. In fact, they have made improvements

the next, hiking on the next, or whichever leisure

too and they are promoting health in the form

activities are included in the agreement.

of business fitness, the idea is being viewed

Another growing trend is the tendency

in the fitness industry as one of their biggest

of companies to install gym equipment onsite,

opportunities to grow and expand their client

allowing employees to exercise shortly during

base. There are making different approaches to

lunch, before or immediately after work. This way,

this. According to an article from Prinzivalli:

they have the convenience to train without having

•

One big approach is to offer a company

access to an entire chain of gyms. Allowing employees to exercise wherever they are, near the workplace, home, or on a business trip.

•

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•

to expend too much time and just doing a fast 30-minute training.

•

As global health encourages their patients

to be active and have physical activity as part of

As part of a recent trend, nowadays

their daily routines, Fitness Programs for older

people are not restricted just to fitness training.

adults have been increasing to satisfy the Baby

This means that people are more into activities

Boomers and older generation needs.

and they include fitness training as part of their

Overall, it seems that Fitness trends that need

training. Consequently, gyms are adding more

to be considered by the industry this 2019 would

features to their installations allowing customers

be: circuit weight training, core training, and sport

to have more activities options. Therefore, people

specific training are one of the tops.

IV. Fitness and Wellness Percentage of employers in the U.S. that offered select wellness programs and events as of 2018

The figure 1 shows how the wellness being sector has become so important that employers in the U.S. are offering wellness programs even more than onsite seasonal flu vaccinations.

People have access to a variety of studies and books full of diets or a healthy eating, whether it is cutting sugars, carbs or fasted cardio, people are more educated, and they are willing to try different methods to “shock� their system. People want to know what will work best for them and are getting better at listening to their bodies. People are more comfortable making their own routine such as pairing time-restrictive fasting with high-intensity interval training (HIIT).

Nutrition will always be 80 percent of the battle to achieve fitness goals, but meal planning and supplement planning are very individualized, and it needs a proper organization. Consumers want results and enjoy seeing that they are changing and improving everything from how their body looks to endurance.

According to a market report from MarketLine Industry Profile, people are taking care more of their health and personal looks, having more than one fitness membership because they want the flexibility to be able to catch a spin class with their friends, train for a team warrior competition and still enjoy a workout independently in a traditional gym setting. To avoid boredom and muscle memory, today, members want and need more than one experience to stimulate and challenge their mind and body. While they want their fitness level to improve, once the body catches up, 19

they will need a new workout experience to tackle. Big-box gyms and weights are no longer enough they need more, and the industry need to adapt to the demands of the consumers. Accordingly, I am seeing more gyms offering additional niche fitness concepts under their roof to match the shifting direction of the industry. The ones that do not pivot will be left behind, they need to create a key differentiator. Every generation is looking to get in shape and gyms especially need to make sure they have something for everyone from seniors to Gen Z.

According to a market report from MarketLine Industry Profile, the fitness industry in

order to please a large range of ages, fitness levels and different interests, has arisen a variety of boutique fitness offerings and classes such as yoga, spin and Zumba, along with the option for small group strength training, team training and one-on-on coaching.

Along of the new variety of fitness offerings also huge eating behaviors trends have appeared such as intermittent fasting, detox juices, whole grain food among others. Nowadays, consumers have more information available to self-learn and decide which technique or food is more convenient for them. It is expected to be seen a mix of new experiences and traditional standards for health and fitness that is why wearable technology is advancing and becoming more indispensable for consumers. People want the data, see results, track their activities and calories burned they want to have easily access to the information they are getting from the wearable, likewise adapt their level of fitness, recovery time and improve overall activity. This segment keeps growing since more people want to crossreference how well they have slept to how well they have performed that

day

(MarketLine

Industry

Profile).

It is stated that consumers

are looking for more ways to prioritize their health they are now meditating, demanding cleaner food options, so, companies are offering more fitness initiatives in workspaces and healthcare programs that are rewarding people for going to the gym. The industry will continue to grow because people value what they can control, they are seeking fitness experts and leaders in the space to help them achieve balance by getting a healthier physical state (Forbes).

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Gym Industry High – Value, low - price gyms are attracting members thanks to inexpensive memberships typically around $10 - $20 per month range, and a good inversion has been the equipment, classes and amenities. Economical gyms have been around for years, but this new type of HVLP gyms typically beat out the more established budget players in the variety of fitness equipment and classes offered, and the all-in-one pricing structure.

The low prices gyms are called boutique studios, which have also been growing very quickly all over U.S, they are usually small and focuses on classes such as spinning, high-intensity interval training classes, circuit training, barre, pilates, among others (Forbes).

This graph above shows the revenue of fitness and recreational sports centers in the U.S. from 2010 to 2016, with a forecast to 2022. It is projected that the revenue of fitness and recreational sports centers in the U.S. will amount to approximately 35.4 billion U.S. dollars by 2022.

Corporate fitness, workout/ classes in groups, or with a personal trainer are concepts growing in the gym industry, in which digitalization and smartphones will play an even more important role (Nagel).

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The growth in gyms and fitness clubs has been a result of consumers demanding a healthy

living. Going to the gym has become an important routine for people, and by gym enthusiasts posting their updates on social media, fitness clubs receive free advertising.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.7% for the five-year period 2017 - 2022, which is expected to drive the market to a value of $24,357.6m by the end of 2022 according to a market report from (MarketLine Industry Profile).

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Outdoor Sports/ workouts

Outdoor sports, once attributed to the hard-core enthusiast such as running, triathlons,

kayaking, rock climbing, mountain biking are becoming more popular among recreational and beginner outdoor adventurers over the years. There is a significant increase in customers who are embarking on new outdoor activities, more gear options and information than ever before to get started.

Outdoor workouts have been identified to help

with anxiety, depression as well as stress, with all these benefits doing only 30 minutes of exercise can help to improve an individual’s, health, bone strength, mental clarity, weight loss cause, and body composition in general. Therefore, it is more than just fitness training session, it also ensures the total wellbeing of the individual, and with U.S. taking great steps toward getting healthy, many people are turning to natural resources and outdoor activities to get fit, being this a huge focus for 2019 (Prinzivalli).

For people that just go to the gym can get boring, and

that is one of the reasons they stop going, because they do not have an exciting goal like winning a competition or race. The experience is what matters the most even more than the workout itself. Lately, many personal trainers have tried to include outdoor activities as part of their clients’ fitness program and mix it up. Additional, as a aside benefit, moderate exposure to sunlight can boost people’s mood, get them high on vitamin D and have them sweating even more than they would in the gym. It is been said that those who exercise outside have higher energy levels and are less stressed and tensed than those who exercise indoors.

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Sport and Nutrition Fastest growth seen in sports nutrition across region

Graph 3 shows how U.S. is the leading market in consumer health out of 20.

food in favor of healthier food, more natural and/

Sports nutrition has been historically focused

or organic options. This switch is causing people

on the US, which has represented over 60% of

across the country to be more conscious of the

global value sales since 2015. Looking forward,

food they eat, which has had the runoff effect

the US will continue to be the world sports nutrition

of making more people interested in fitness and

leader, with demand expanding not only among

sport activities (Consumer health global industry

core users, but also among a broader consumer

overview).

base increasingly following larger health and

Personalized nutrition is moving up a gear as

wellness and fitness trends to support active

food and drink brands tap into artificial intelligence

lifestyles, prevent diseases, as well as on-the-go

(AI), big data and social media trends to create

demands, according to (Consumer health global

healthier, ultra-tailored choices for consumers,

industry overview).

from test to table.

Over the past years’ consumer demand has 24

been moving away from industrial processed

For example, NestlĂŠ Japan is using AI, media,

and home-testing DNA kits to create personalized

plan (Greene). Consumers have been taking care

diets for consumers, according to Bloomberg.

of their health and looks, they are more aware of

Clients of the NestlĂŠ Wellness Ambassador

their dietary decisions and ways they can improve

program send pictures of their food via the

their health. Searching cool activities to get more

Line app and get lifestyle change suggestions.

physically active or seeking to join a health club

The program reportedly costs of $600 annually

or fitness studio. As, they get more involved

for teas, smoothies and other products such

with their own nutrition they follow more fitness

as vitamin and snacks. They get a home kit to

enthusiasts and start testing new ways to improve

provide samples for blood and DNA analysis to

their health, such as intermittent fasting, morning

helps identify vulnerability to high cholesterol or

cardio and other techniques which information

diabetes, with tests handled externally. Oakland

they have available online. Consumers are trusting

startup Habit is inviting diners to collect bio

and follow more in influencers and people that

samples at home with over 60 nutrition-related

try these techniques and share about her/his

blood, metabolic and genetic biomarkers which

own experience.

it then uses to create a personalized nutrition

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V. Food Industry

The global functional foods and beverages market is anticipated to grow at a steady rate and will post a CAGR of close to 8% during the forecast period. The health benefits associated with functional foods and beverages will drive the growth prospects for the global functional foods and beverages market until the end of 2021. The presence of ingredients such as minerals, vitamins, herbs, amino acids, antioxidants, and bacteria in

food beverages have beneficial effects on the body. Some of these benefits are improved mental strength, enhanced immune system, improved heart rate, hydration and electrolyte replenishing benefits post exercise, improved digestive health, and better intestinal flora and gut function. One of the major factors responsible for the market’s growth in the region is the growing focus on outdoor fitness and sports activities. (According to the Global Functional Foods and Beverages Market report).

As consumers changing eating patterns from eating processed food to eating natural and organic food, have disrupted the food industry, whether it is consumer package good, supermarkets or restaurants. 2019 will be the beginning of having omnichannel as essential to survive in the industry. The bricks-and-mortar retail grocery and related channel will continue to rule for Consumer Packaged Goods (CPC) companies. According to an article from (Martino).

Online marketplaces channels such as: Amazon, Jet, Alibaba, Thrive Market among other are now a very convenient platforms for food sellers, as is direct-to-consumer strategy.

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Therefore, omnichannel is playing an important role in the food industry this year, food companies of all sizes need to implement this strategy.

Millennial-minded consumer a growing cohort, members of Gen Z or baby boomers have shifted their affiliations and lifestyle choices, because it is not their age what matters the most, it is how they are thinking now along with their values. “Hence, the food industry will increasingly develop this approach to understand consumers in 2019” (Martino).

Health concerns over additives and processed food, have built the organic food industry in the United States into a $45-billion business. Organically grown food can cost consumers anywhere between 10 percent to 80 percent more than conventional foods, keeping customers on a tight budget, however customers are willing to pay extra money for high quality food. (Lewis).

As the year develops, we will see trendy products, great deals, and innovations in de industry, one of the bigger trends that we already started to see and will keep growing are functional foods such as yogurt with probiotics, green teas, Kombucha among other products, where packaging and production will be more earth-friendly and companies will be closing to sustainability guarantees.

The idea is to meet consumer’s health and wellness needs and has plant-based meats will keep making a dent in the market (Poinski).

As consumers are now more concerned and self-educated of what they eat and what they do not want to eat, this has risen the trend of functional foods in the American diet. According to a report from Technavio “the global functional foods and beverage market is anticipated to grow close to 8% annually through 2021”.

People are interested in their health and they are willing to pay for the option that has vegetables, fruits, added omega-3, or added probiotics, consumers are reading 27

through the nutritional labels and looking for the packages that seem healthier and trust they would get the benefits from those foods.

Currently, probiotics are very attractive to

large food companies and being into a variety of foods, drinks, healthy bars, water and cereal (Poinski). Consumers are seeking products that can help them naturally with the aging process and according to (Mintel). “Functional food products are in the works as scientists extract beta glucan from mushrooms to help bolster the immune system, produce fiber-rich inulin flour from chicory root and explore numerous beneficial nutrients from algae”.

One of the major trends according to

Mintel in the food industry, it is to have an elevated convenience that match the consumes requirements in the on-demand age, convenience food and drink will get upgrade. Consequently, “food and drink will build on today’s dialogue about wellness and transition into more solutions for healthy ageing”.

There is a great potential for functional food, which some ingredients might impact on a person’s health but consumers need to understand first the impact that it could have on their bodies and health.

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Healthy Food Importance Healthy, natural and better-for-you are terms and expressions that have dominated the food industry in recent years and forced Consumer Packaged Goods CPG companies to evolve. Consumers’ healthier eating habits are insistent in the food companies to switch up their products and consider switching to new healthier food options. That will accelerate in 2019 as consumers pressure brands to keep up with changing tastes (Byington).

Big companies like Hershey and General Mills have

announced plans to continue expanding their portfolios in 2019 to attract the younger consumers who want healthier snacks. Other brands will likely look to innovate already established brands such as Conagra did with Healthy Choice and launch a new better-for-you products (Byington).

According to (Nielsen), an expert in food and beverage trends, says this trend is not new, the better-for-you snacks is a category that people have been talking about for 12 years and products in that space will continue to increase. She said, “there continues to be a lot of innovation in the healthy snack space and increased interest in clean label�.

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Restaurant Industry Number of restaurants in the United States from 2011 to 2018

Restaurants have been catching up with the consumers expectations, you can see in the

(Freeman).

graph how they have been growing since 2016,

The biggest trend in 2019 for restaurants, will

and it is expected the industry to keep growing.

be to embrace the world that we want to live in.

They are focusing more on health, sustainability,

This means will see more restaurants representing

embrace global cultures and go in a deeper sense

immigrants

of caring for the consumers and what they want.

restaurants are helping to create a better

It seems the hospitality industry is leading the

environment for us through creative marketing

charge in creating the world people want to live in.

strategies.

Restaurants are now gathering places for people to connect, take a break from work, and even to be able to work in that place with a laptop. They

or

embracing

sustainability,

Mega trends shaping the restaurants industry according to an article from (Appleman) •

“Meat the Future: Cell-based Meat &

have created the perfect surroundings for people

Vegan “Meat” Plant-based “meat,” is showing up

to come together, get personal, and embrace

on menus throughout the country, this trend is not

forward-thinking ideas. “The industry is speaking

slowing down, and it is being said that we will see

up about equal rights, food waste, health and

vegan seafood on menus in the near future.

wellness, and much more”. There’s a lot to be 30

expecting about restaurants coming up in 2019

“Globally- inspired breakfast” people will

touchscreen interface 24 hours a day, seven days

have restaurants where their menus will have

a week. Popular robotic restaurants including

globally- inspired breakfast and brunch, “including

Creator and Spyce are further proof that robots

the modern Indian brunch at ROOH Israeli

are here to stay”.

•

breakfast at Oren’s Hummus, and Japanese breakfast at Cassava”.

•

“Time for tea, Tea is a huge trend in 2019”

These are some of the most important trends that will bring big innovation, diversity and creativity in the restaurant industry.

however, this trend it won’t be with traditional

As I keep going with research, I can analyze

tea they are “anticipating a rise in moringa tea

that today more than ever, restaurants are turning

(a popular superfood), cheese tea (yes, cheese),

their focus towards healthy, clean and nutritious

and mushroom tea. Guests are expecting more

dining options that will make customers to happily

from tea programs, prompting the rise of tea

come back to try different meals. Miami as one

sommeliers and elaborate tea programs”

of the healthiest cities is always eager to keep up

“Robotic Restaurant Revolution”. It is

with the latest culinary trends and mixing them up

predicted that we will see food-making robots.

with plenty of nutritious and tasty food to provide

“Silicon Valley-based food robotics company

those health-focused people options to meet their

Chowbotics is rolling out Sally the Robot at

needs, because they are increasingly demanding

airports, convenience stores, offices and more

more healthy options.

•

serving up vibrant, forward-thinking meals via

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VI. Market Research The Health market has been growing with USD9.6 billion reflecting a projected CAGR of 3%. Compared with other industries such as beauty and personal care, this is the fastest growing markets in the US that will expand demand across consumer health product categories (Consumer health global industry).

The

health

market

has

been

growing in the U.S. and this trend will consequently trigger other categories, like vitamins and supplements, to grow exponentially and become dominating categories in the U.S. and China.

Which will together account for 66% of the absolute in global sales over 2017 – 2022 (Consumer health global industry).

32

The Health market has been growing

with

USD9.6

billion

reflecting a projected CAGR of 3%.

Compared with other industries such as beauty and personal care, this is the fastest growing markets in the US that will expand demand across consumer health product categories

(Consumer

health

global industry).

The health market has been growing in the U.S. and this trend will consequently trigger other categories,

like

vitamins

and

supplements, to grow exponentially and become dominating categories in the U.S. and China.

Which will together account for 66% of the absolute in global sales over 2017 – 2022 (Consumer health global industry).

Percentage of U.S. adults with select views on the health and wellness programs offered by their employer as of 2018*

33

Companies are investing in providing health

that they stand to benefit from healthy employees.

and wellness programs to their employees

Some firms are already collaborating with gyms

because make them feel more productive and

to provide good plans. The range reaches from

it shows that companies value their employees.

lower membership fees to special offers and

This is an important reason for employees staying

applications subsidized by the company. Some

at their job.

larger firms are even going so far as to install

Nowadays, personal health is not just a

exercise equipment or employ personal trainers

matter for the individual anymore. In Miami and

onsite. In this way, it is possible for everyone to

Florida in general companies are encouraging

enjoy a basic level of training before work, during

their employees to be healthy through corporate

your lunch break, or in the evening (Corporate

fitness offerings. Many companies are partnering

Wellness Trends).

with gyms or personal trainers because they know

34

This graph illustrates the share of Americans who visited health, wellness, fitness expos in the last 12 months as of 2018, by age. 9.80 percent of respondents aged 18 to 29 years old and the second large group at 8.94 percent aged 30 - 49 years old. So, people between 18- 49 years old are the ones concerned about having a healthy lifestyle and being fitness.

The universal healthy living megatrend has become a way of life for many consumers,

enjoy meals/snacks without jeopardizing their

being a more general concept of health that

healthy habits or goals.

includes mental, physical, spiritual, emotional

The extensive adoption of healthy living as an

and environmental influences. This trend has

active lifestyle choice, and the multi-tentacled

strengthened strong growth across consumer

nature of consumer demand in this space, has led

health prevention categories, as an ever-growing

to a complex and varied number of new products

cohort of consumers are actively engaged in

and restaurants. According to a study from

their own nutrition and disease prevention. The

Consumer health global industry, these products

healthy living megatrend has prompt consumers

take many forms, but most try to meet consumer

to faster identify health issues, look up products

needs around at least one support of healthy living,

and research online about nutrition. This new

principally around personalization, self-education,

self-teaching

convenience, or snacking.

has

influenced

consumers

in

their purchasing behavior (Consumer health global industry).

For

today’s

wellbeing-minded

consumers’

demand, a wave of new restaurants is changing

This tendency has influenced consumers to

menus and adding comfort food with vegan

demand for healthier meal options in restaurants.

recipes and cleaner meal aiming to attract

They are also buying more vitamins, supplements

the

and sports nutrition products that match their

about

increasingly active lifestyles. People are choosing

welfare (Greene).

millennial-minded health,

climate

generation change,

concerned and

animal

brands that can meet all these attributes and

Customers demanding healthier options show

needs (Consumer health global industry). The

no signs of slowing down any time soon (Greene).

idea of the Fitness bar is to create a meaningful

Everything from celery juice to avocado toast are

relationship with customers and to encourage

becoming mandatory healthy options that every

them that they can eat out of their houses and

restaurant should have for breakfast.

35

Market Research in Miami

In the study of the world’s healthiest cities

36

Miami ranked highly among all elements.

by TravelSupermarket.com, Miami ranked sixth

•

HEALTH FOOD SHOPS - 1st

overall in the world. This means that the “Magic

•

SUNLIGHT HOURS - 9th

City” beat out notable cities such as San Francisco,

•

PARKS - 11th

Milan, Madrid, New York City and Amsterdam.

•

SPAS - 12th

Find in the USA

•

VEGAN-OPTION RESTAURANTS - 12th

The study used a number of factors in

•

GYMS - 16th

determining the final rankings, including parks,

•

YOGA & PILATE CENTERS - 26th

sunlight hours, gym & fitness centers, health food

•

COST OF 1 NIGHT STAY - 49th

shops, and vegan-option restaurants.

Miami has always been a city known for

is pretty flat, it has many races for Marathons,

having fit, healthy and pretty people. People

Triathlons, Spartans, CrossFit and many other

run along the beach, they also cycle along

activities. Even though it is trendy and cool right

beaches, and it is the land of the tanned

now, Miami has always provided endless options

toned bodies. The “Magic City� has a wide

to stay fit and healthy (Diaz). Miami is recognized

variety of specialty gyms, free community

as a healthy and fitness-oriented city for years,

wellness activities and some of the most

which makes the perfect year for the Fitness bar

beautiful running routes in the world (Diaz).

to be opened.

Since Miami has nice weather and it 37

VII. Consumers The Fitness Bar located in Brickell Miami has the following potential target consumer: Demographics: Females and males from 25 to 50 years, living and working in the area and some of them not working in the area but living there.

Corporate and/ or freelance work, entrepreneur and self-built business professionals Income: $55,000 + Education: At least a Bachelor’s degree The Fitness Bar is targeting all people interested in having a

healthier

professionals

lifestyle, that

do

those not

always have the time to prep their meals during the week, but they also want to enjoy a meal without jeopardizing their good eating habits. It is also targeting people into the fitness world that are much more aware of what they can or cannot eat depending on their fitness goals. Simply, it is a space to enjoy a balanced meal.

It does not matter whether the customer is into a certain sport or just a person that wants to have a healthier lifestyle and still enjoy the food offered.

38

Psychographics These consumers have a big interest in health and nutrition. They have an intense emphasis in yoga, meditation, walking by the beach and enjoying nature. They also are into fitness, running, boxing, exploring new sports and finding new experiences. They have a work-life balance and they are willing to pay more for products and services that come from companies committed to positive and social environments. These consumers enjoy traveling and are well educated; they like to keep self- teaching, so they enjoy reading books, learning about technology and putting it into practice, Instagraming what they’ve learned, and sharing their experiences.

Behavioral Information According

to

an

article

from Maria Vardy, currently, consumers

in

general

are

shifting towards more organic and healthier food options since

the

market

is

also

adopting these new trends, offering vegan and healthier meal

selection,

becoming

more nutritionally – focused in their offerings. This consumer behavior it is projected to increase this 2019 meeting unprecedented growth in the wellness economy (Vardy).

During 2018 the well-being trend gained power across all generations (Vardy). Consumers are seeking services and products that will help them to boost sleep, reduce anxiety and among others things, they are pursuing active and meaningful experiences that inspire relaxation, rejuvenation and help reduce anxiety (Vardy).

39

Megatrends shaping global consumer Health and Wellness sector

1. Consumer interest in health and wellness is driving whole new categories and products Due

to

concerns

about

food

intake

and

aging,

consumers

are

growing

interested in nutrition and sustainability. These interests are driving innovations in the Fast Moving Consumer Goods sector (FMCG). This has given rise to new categories such as paleo, high-protein, gluten-free and other ‘free-from’ foods, and products (Mathew).

Customers are constantly demanding avocado toast in restaurants as one of the favorite healthy choices to order especially during breakfast or brunch. This has led to the increase of restaurants having this option among others such as avocado oil, kale crisps, and protein snacks. 50% of US consumers said they were planning to eat less sugar in 2018, while 67%

of

Americans

said they would be prioritizing healthy or socially-conscious food

purchases

in

2019, which makes perfect sense to have healthier restaurants open this year. Indeed, many are

categories seeing

growth

in ‘no added sugar’ products

(What

We

about

Know

Health and Wellness Marketing).

40

2. Digital technology stimulates consumers’ behavior Consumers are adopting a proactive approach to health since they have quick access to everything they want to know about nutrition online. The rapid growth of digital technology has allowed consumers to make healthier decisions when they are purchasing a product or eating outside (Vardy).

Since customers have wearable fitness trackers that monitor their physical condition, diet and specific health issues or fitness goals, they make more conscious choices when they are buying a product or ordering a meal. People now have access to health and wellness portals, secure websites giving individuals 24-hour access to personal health information, so the increase of well-informed consumers has enabled them to make better healthcare decisions and manage their choices, while healthcare providers can use data to identify trends which can influence behavior (Vardy).

41

Customers really want to know everything about their nutrition and wellness and what is best

engaging and simple enough to be universally accessible (Vardy).

for them to eat. Thus, they are buying Amazon Echo and Google Home, which offer sensors with the potential to monitor food in the fridge and tell consumers when they are out of healthy options.

The market is also shifting, making consumers more aware of what is healthier for them to eat.

Everything is changing towards having more vegan, organic, and natural options and, in general, having a healthier population and environment (Vardy).

Consumers are motivated to make healthier food-oriented

decisions

through

technology.

They receive more personalized guidance and supportive feedback through apps, which are easy to use with engaging and relevant information for consumers (Vardy).

3. Data empowers and motivates consumers Currently, everyone is monitoring activities with wearable devices such as smart watches and fitbits, no matter if they are in high-intensity activity or they are just counting theirs steps.

This is called the “Quantified Self” concept, and it is triggering people to set personal goals and improve health outcomes since they are more aware of what they are doing (Vardy).

Portable health trackers are one of the biggest motivators for people to have self – discipline and not jeopardize their nutrition. This is an important way that they are keeping customers focused on their wellness, nutrition goals and buying behavior. Health information needs to be 42

4. Emotional advertising can encourage longterm personal health changes Health and Wellness brands often implement advertising campaigns which provide rational and supportive reasons why consumers should change their behavior to more healthy behavior.

Emotional marketing can be particularly potent in healthcare. It encourages people to re-evaluate their lives and achieve long-term change (Vardy).

For example, Lululemon’s first global campaign, “This is Yoga,” emphasized how meditation, breath and self-discipline learned from yoga translate into other pursuits and into the consumers’ daily lifestyles. The idea was to inspire people to be part of this community, making them feel related to the brand.

43

Consumers in Miami People in Miami have shifted towards more organic and healthier options since it is a fitness and health-oriented city. Many people are eating primarily plant-based foods, such as fruits and vegetables, whole grains, legumes and nuts; replacing butter with healthy fats such as olive oil or some other nut butter; using herbs and spices instead of salt to flavor foods; limiting red meat to no more than a few times a month or not at all; eating fish and poultry at least twice a week; enjoying meals with family and friends; drinking red wine in moderation (optional); and getting plenty of exercise (Sheldon).

Consumers are taking greater control of their health outcomes and framing their longterm health in a more holistic manner. They are looking for experiences beyond traditional products through personalized solutions, health programmed, diagnostic exams, and monitoring and tracking apps. They are also seeking new ways of exercise; they are more engaged with outdoor sports or classes; and they like to exercise in groups (Sheldon).

These engaged consumers increasingly expect to have access to their health information wherever they are, and actively use this information to make consumer health purchasing decisions (Sheldon).

The

44

pervasive

healthy-living

megatrend

in Miami has become a way of life for many consumers in a more holistic sense of health that includes mental, physical, spiritual, emotional and environmental factors. This trend has had strong growth across consumer health (Sheldon).

Active Consumers The Health and Wellness sector has

of the smartphones we carry around all day are

grown considerably in recent years, and the

putting personalized health statistics at millions

use and exchange of data through wearables

of people’s fingertips (McCoy).

and smartphones is projected to become

When people see how many steps they are

even more significant in 2019. Devices such

taking in a day, how many calories they burn, what

as the Fitbit, Apple Watch, Garmin, and many

their heart rate is, or what their blood pressure is, they become much more aware of how their bodies work and how they can improve their health (ISPO).

All

these

apps

are

useful when it comes to staying motivated, as well as exchanging tips and tricks. These apps are some motivators for consumers,

including

non-fitness

people,

when

making

decisions.

healthier

They

are

tracking their sleep and steps, which helps them make

better

when

they

decisions are

eating

outside or purchasing a product (ISPO).

45

Once consumers start paying attention to this digital feedback, they start making healthier decisions. It makes people think things like, “How can I eat better, how can I become more active and enjoy it more�? The trend towards incorporating personalized health data into their daily lives is not going away anytime soon, either (McCoy).

Another trend in Miami consumers is group training. The desire for a team atmosphere and supportive environment will also remain a priority for consumers, especially women. Team training establishes accountability from day one, so people like to have personal trainers and coaches to join them in their fitness journey by highlighting their progress. Small-group programs between 2-4 members being coached on how to improve muscular strength and change body composition are very trendy right now (Drughi). People are looking for group programs that allow them to train at their own pace and set realistic goals with the support of each other (Drughi).

It’s well known that people are seeking out group sports, but this is something that has been there for years, which is why Aerobics has existed for decades as well as Zumba, CrossFit, and Boxing. Plus, large groups such as running communities and outdoor training groups are emerging in many cities in addition to Miami.

Some of these training groups were inspired by

46

the classic military training and millions of people worldwide are joining these challenges to test their endurance, strength and speed. Obstacle courses involve climbing, crawling, running, jumping, lifting, throwing, pulling, all in short bursts of energy (Drughi).

Another group training is yoga which is getting more and more popular in Miami. It is an age-old practice, with amazing benefits. Consumers are demanding and participating in more outdoor Yoga classes, and much more on the water because paddleboard yoga is a huge trend right now in Miami (Drughi).

Eating Habits Over the past year, which of the following healthy food behaviors, if any, have you made an effort to do?*

The graph above shows that since 2017, consumers started to be more aware and conscious about their healthy food behaviors and they started to shift towards healthier decisions. This is something that has been present for years, however it has enormously grown in recent years.

Can you name a food or nutrient that you would seek out to help with a given health benefit?

47

According with the graph above, one of the biggest concerns of consumers is the majority would like to find a nutrient or food to help them with weight management, however they would also like to increase cardiovascular health, boost energy and improve digestive health.

The concept of wellness is no longer limited to the health and nutrition sectors, as brands increasingly look to embrace this idea, consumers are doing more research and demanding more transparency in the products they buy. They are looking beyond the label content and they want detailed insights into brand values, how products are sourced and produced (Vardy). If consumers do not find this information, they will seek it out elsewhere.

Descriptive nutritional labelling is a must for these well-informed consumers, this includes initiatives like providing calorie or nutritional information on food packaging and on menus, to encourage consumers to select lower-calorie options. It’s becoming increasingly popular and can be seen in many of the well-known international food chains (Vardy). A study from Maria Vardy found out that there was a decrease in calorie consumption after the posting of calorie information on food packaging and on menus.

Evaluative nutritional labelling makes it easier for consumers to understand and interpret the information.

This kind of intervention has changed consumers’ behavior without necessarily influencing what they know or how they feel. What are known as ‘convenience enhancements’ do this by making it easier to select healthier options, such as fruit and vegetables in graband-go coffee shops lines, convenient pre-sliced, preportioned food options currently available at most major supermarket stores.

48

Nevertheless, convenience enhancements are more about making food and drink choices easier for consumers to grab and go, making things more visible to their eye (Vardy).

Consumers tend to stick to the default portion option suggested in restaurants. They are seeking out pre-plated portions of food and drink, often found in cafeterias, cafes and Whole Foods. This increases the amount of healthy food offered or reduces the amount of unhealthy food in a portion, such as smaller ice creams or portions of chips. The effect portion size is on how much people consume, if they have a bigger plate with no portion sized, they will eat bigger portions (Vardy). Consumers are not afraid of carbs anymore, instead of that, they are demanding more carbs, such as whole grains, quinoa, brown rice, couscous in restaurants or coffee shops, however, they are demanding more gluten-free carbs and smaller portions. (Vardy).

Added to that, consumers’ trust has changed as social media has created empowered consumers who drive shared online discussions that can shape perceptions of a brand. They are trusting and relating to people in similar situations with similar goals and lifestyle choices such influencers and friends (Vardy).

Modern consumers are engaged with wellness and it continues to expand beyond the old diet culture concept. The $4.2 trillion global wellness industry has evolved into an increasingly complex and transitory market (Hill).

According to an article form Laura Hill, the following consumer trends in their eating behaviors will impact the wellness industry in 2019 and beyond.

By highlighting high-growth opportunities, these consumer eating trends should help brands to make innovation, boost growth and connect with consumers on an even more meaningful level.

49

1. Healthy convenience Consumers shopping habits have been gradually changing. Going once a week to the supermarket and stocking up on the essentials is not enough. New conscious consumers are looking for ways to have less food waste and have more fresh and healthier options, so they continuously keep going during the week to the supermarket to have fresh and natural food such as vegetables and fruits (Hill).

Taking the lead, some specialist grocers like Whole Foods, which stock a much wider variety of niche, organic and health-focused options; convenience stores are shifting their strategy to appeal to a more health-conscious generation stocking up on gluten-free, dairy-free and organic products (Hill).

Today’s customers are more likely to embrace convenience

stores

if

it means they’ll have access to the products when they want, and if that includes the latest kombucha or kiwi drink they are willing to pay a higher price. In fact, according to a report released by Maru, 68% of US millennials were asked and they said they were willing to pay more for organic foods, with 66% stating they were willing to pay more for sustainable foods.

50

2. Optimism There is a growing pressure for individuals to

These

empowered

and

identity-driven

become the best versions of themselves, to be a

consumers are changing the narrative of the

better person each day, making better decisions,

healthy industry and forcing brands to rethink

changing their eating patterns, the continuous

their messaging and overall marketing strategies

desire for solutions that will boost brain health and

in order to unlock spending potential (Hill).

increase productivity is intensifying and brands

According to Laura Hill, millennials are the

are responding. The millennial ‘entrepreneurial

most anxious generation in history. And so, new

mindset’ that seeks a ‘laptop lifestyle’ is part of

ways to achieve less anxiety and more happiness,

a hyper- connected generation which is always

are emerging as one of the mental wellness

looking to combine herbal extracts to boost

segments’ most notable trends. The challenge

mental performance such a tea or another natural

for brands is to create solutions that are easy to

infusion such as Kombucha. These consumers

adopt and consistently incorporate into everyday

are seeking a quick and easy solution to help

life on a regular basis.

them to improve their performance beyond the four walls of the gym (Hill).

3. New Era This is an era where almost everyone is seeking to amplify their wellness, consumers have already begun their own society by forming their micro-communities on social media, educating inclusive fitness communities. They represent the wellness of their cultural or ethnic identities.

Consumers are recommending places that make healthy meals, and everything by Word- of-Mouth strategy (Hill).

51

4. Rise of lab-grown, “motherless” meat Plant-based “diets” are still going stronger in 2019 in a different way. Rather than eating traditional meat style, there will be more labgrown meats and related proteins that will change how people see food. A generalized way to describe the concept: Experts pluck a cell or two from an animal instead of killing it, then breed it on an enormous scale. While the jury is still out on its taste, green supporters will love all the potential benefits elimination of ranches and slaughterhouses, reduction of greenhouse gases and energy consumption. Therefore, there will be pushback given dairy sales are hurt by the success of faux milk, ranchers are launching campaigns to prevent these engineered proteins from being called “meat” at all (Huen).

The rise and evolution of consumers focused on wellness has arisen diets such as paleo, keto and variations, therefore, customers are forcing food producers to provide their products towards consumers looking for healthier food according to Food Business News.

Whole Foods, Food Business News and Kroger,

Co. have all listed healthy foods as one of their top trends for 2019, citing the various lifestyle diets that consumers are adopting in pursuit of improved health and wellness. The number of consumers purchasing better-for-you products and subscribing to different eating styles, from vegetarian to flexitarian to keto and paleo among other variations will continue growing (Knoebel).

Consumers are decreasing the demand of buying traditional breakfast foods like sugary cereals or processed juices. Health conscious consumers looking for something that fits their lifestyle better than a bowl of cereal or plate of scrambled eggs. Many producers are shifting in order to meet consumers’ needs, while others are emerging functional foods to cater specialty diets (Knoebel).

These conscious consumers love Whole Foods and it is because they are focused on wellness and the company has successfully predicted the new consumer’s needs such a labeling all its meals, having all the meals description ingredients, having a scale to weight food and they also provide plates portion sized to customers (Knoebel).

52

Top factors influencing American Millennials’ decision to adopt a meat-free diet 2018

Consumer willingness to pay premium for food that offers benefits beyond basic nutrition in the United States in 2018, by generation

According to the graphs above, the younger generations are more conscious about the wellness and nutrition sector, they are willing to pay more for food that would offer benefits beyond basic nutrition.

53

Are you trying to limit or avoid sugars in your diet?

Based on the graph above consumers do not

life, in general people are eating more fresh and

want to eliminate sugar completely, they want to

less processed food and therefore associated

limit it, which means they want to have a balanced

with a healthier lifestyle. They are avoiding, bad

meal according to their health and fitness goals.

fats, sodium and bad carbs. They are interested

Consumers want to eat in a better way without

in receiving specific health benefits from foods

missing the delicious flavors. They like to explore

or nutrients, according to the 13th Annual Food

multi-sensory food experiences focused on

and Health Survey from the International Food

satisfying their needs. The consumers constant

Information Council Foundation, Washington.

search for alternative proteins has resulted in a

Caffeine, which most people love because is

rising use of black beans, nuts, rice, seeds, peas

also calorie free and therefore not metabolized.

according to Innova Market Insights

It functions by attaching to receptors on brain

Americans’ eating patterns have shifted to the rise in consumption of organic food, non GMO

mental

and natural labels. One of the evidences is that

because they perceive this as being a boost in

consumers have shifted into healthier lifestyles

energy (Berry).

alertness.

Consumers

like

coffee

by limiting the intake of sugar. They are opening

Another consumer demand is food that has

up to food that make them feel good with their

probiotics, millennials show the most interest

health and body (Portalatin).

in probiotic foods and beverages, compared to

Consumers are relating quality food with quality 54

cells, stimulating the brain and thus increasing

Gen X and baby boomers (Berry).

Kombucha another drink that consumers

in some healthy restaurants. To be able to find

are demanding it is a fermented tea made with

this information I will be doing the Ethnographic

microorganisms that produce an effervescent

Observation in Miami spots such as restaurants,

beverage

coffee shops, yoga centers and Gyms.

with

probiotic

function

(Berry).

Consumers are eating food that fuel their brains,

Additional to this the Focus Group will help

boost energy, help them with digestive health

me to get more detailed insight from people with

and make them more naturally beautiful, such as

healthy habits and active life. The focus group

shinier hair, softer skin and strong nails. They are

will be conducted in a park in Miami where we

willing to switch brands that use more transparent

can all have a nice conversation about the topic.

labels and use more natural food (Berry).

VIII.Primary Research

To be able to move forward with the Lulemon

Fitness bar, business and marketing plan, I needed to understand consumers behavior and needs, therefore as my primary research I am doing Ethnography Observation and a Focus Group to learn about habits and behavior of people who prefer a healthy lifestyle. During the ethnographic observation I will be studying their lifestyle, where they like to spend their time and their preference

Ethnographic Observation I will start to observe people’s behavior in five Gyms for two hours, I will see if they have shakes or food with them and when they drink or eat them. Then I will go to popular healthy places in Miami in order to see people that might not workout at all their meals preferences. I will be participating in a 5k Lululemon race and other runner races so I could see the logistics of these kind of sport events and be able to analyze what people would like to eat and what are the better options for their pre and post workout/recovery meal.

55

Focus Group In order to get more detailed information about

The Cage Boxing Club and a residential gym at

people that train and people interested in eating

least for two hours. You will hear upbeat music,

healthy that might not train, I will organize a focus

people dropping weights, stepping on treadmills,

group so I could gather people opinions, ideas,

talking or even people yelling sometimes, a lot

and suggestions. Therefore, I will ask them, their

of energy you will feel. You see some people

age, if their workout routines, and other activities

pouring sweat, others on their phones, drinking

they do. I will also ask them about their preferred

shakes or eating a snack. At first, I assumed

locations for workout and how frequently do they

people come to the gym to get in better

go. What are their meal preferences, their income

physical shape or get healthier, but if you see

and how much they will be willing to pay for this

deeper you will see that every person goes for a

balanced and healthy meals. Additionally, I will

different reason.

stablish a conversation with them to hear any comments that they would have regarding to the idea of opening a Fitness Bar. To be able to identify the demographics, the people participating in the focus group would be people that I have seen that train but I do not really know them, I have just seen them in races or healthy places that I go, and some other people would be participants that I do not know at all and they are coming as a favor from other friends.

Results Ethnographic Observation I started the systematic study of people behavior to observe society from the point of view of the subject of the study. I wanted to understand the social life of people and their conduct.

I started to visit multiple 5 gyms in Miami such as LA Fitness, Equinox Brickell, Barry’s GYM,

56

The majority of this community seems to

focused on their nutrition therefore, customers

be people that come some days during a week,

have the need to eat or drink before and after

members that look to stay in shape, good health

each workout. It helps them to have a better

and enjoy coming to the classes. They come with

performance, they feel like drinking or eating

some friends, they talk a lot, take pictures and

this popular pre and post workout will help them

sometimes on their way out grab a fruit or quick

to achieve their goals faster.

snack from the Gym sport bar.

For the study of people behavior in restaurants

Other kind of behavior that I could see were

located in Miami, I went to seven different

from people into heavy workout sessions,

restaurants, Doggis, Small Tea, Green Plate

dropping weights, not looking around, just doing

Asian Bistro, Sabor Venezolano, Mamma Leone

their business. These people keep distance

Bakery, Poke Fish Market and Quinoa Products

from others, they like to train alone, and very

and spent around 2 to 3 hours observing each

concentrated. Many people working for the sake

restaurant. I also talked to managers and

of their bodies are the ones that carry a protein

waitress in order to understand the relationship

shake with them. I asked four people around

between

their early and late 20s, why they have it, and

service receiver.

the

service

providers

and

the

they told me they need drink it within 20 min after their training session so muscle could properly recover, and they did not have a place to go near the gym. I quickly asked around seven people in their late 30s people why they did not eat in some of the restaurants around, they told me that those restaurants did not have healthy or post workout options.

Ultimately, I could notice that the majority of these people that I talked go to the gym as a lifestyle, to be part of a community, to share on social media they are training. Members that are training for a specific goal are more

57

Observations founded in Doggis, a Latin Restaurant that is usually very busy during lunch

so they preferred to not order anything else.

and dinner, it has specials offers and the majority

Observations founded in Sabor Venezolano,

of the customers are Hispanic, however they’ve

another Latin restaurant in Miami. Busiest hours

been having more and more presence of American

during lunch, they keep having multiples options

people especially during lunch. Normally, these

for lunch, however they have changed some

customers that frequently go during lunch are

ingredients and condiments, such as quinoa,

professionals that work nearby and enjoy the

sweet potato, and they have added more salad

different weekly specials that they provide.

options and fish.

I talked to one of the restaurant’s owners and she told me they were actually considering adding to the menu a section that would have meal options under 500 calories. This idea has risen since the last year they are having a lot of demand of people requesting healthier options, since it is a Latin restaurant, they are always asking for the healthiest option, what ingredients has and if they know how many calories these meals have.

For now, they are just providing salads with any protein as an option. Salads are always requested to have the sauce on the side or to have just olive oil and vinaigrette. Additional to this, the arepa is the most famous meal that they have in the restaurant and they changed it to be gluten-free.

For drinks I observed five customers who ordered juice they asked if they were fresh and natural and if they had sugar added. 10 people out 13 did not want to order coffee because they did not provide almond milk or order option of milk, they just had regular milk and people did not like

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that. They asked if they had tea and they did not,

I talked to Francisco Cabrera, owner of Quio

use quinoa for everything such as arepas,

Products to asked him what products they

empanadas, rice substitute, pasta among

distribute the most. He told me that in the first

others and chia as a seed that can be added on

place they majority of their sells are quinoa that

top of any meal or juice to help with digestion

it is see it as a commodity since the last years,

and to feel satisfy.

then in second place chia. Ten years ago he sold

Observations founded in Green plate Asian

these products to healthy restaurants, but since

Bistro, an Asian restaurant that offers a diverse

six years ago they sell these products to any kind

menu, including sushi and a variety of fried

of restaurants, healthy or unhealthy. Restaurants

meals. I noticed that even though it was not a healthy restaurant known, consumers still asked for brown rice instead of regular rice. I talked to one of the waiters and she told me that they always asked for at least one rice less rolls option, many of them ordered even just sashimi in order to avoid carbs.

Actually, customers are not ordering regular rice they are asking to switch rice and have brown rice or vegetables instead. The most wanted appetizers were avocado salad, edamame, and crispy tuna avocado, but without the crispy part.

For drinks, they always order lemonade with no sugar added, coffee with almond milk and a lot of green tea with no sugar added.

Observations founded in Small Tea, a beautiful cute place that mostly have healthy and organic options. I sat in this place for a couple of hours and I observed a lot of people entering to have a healthy bite or fast bite.

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They have different option of meals and depending on the consumers need they switch some food for example, some customers asked for a sandwich, but they wanted to have it in whole wheat or multi grain bread. This appealing restaurant have almost all their meals able to be changed depending on consumers requirements.

You could see professionals of all ages and a lot of people wearing athletic wear.

I had the opportunity to talked to the owner and he told me that they had to add a variety of organic teas, because consumers were demanding this a lot. Additionally, to this he told me people were getting more strict the last couple of years, they are asking for all the ingredients that a meal has to be organic and if a meal did not have every ingredient organic they did not order. He told me it was a difficult crowd to pleased.

Observations founded at the Poke Fish Market in Biscayne Blvd, this restaurant opened last year and focuses in provide poke bowls, that are bowls with seafood protein in general with carbs like brown rice, quinoa and veggies. This restaurant also has an additional market were people can buy fish. The hours that I sat there I noticed any kind of people going inside and ordering poke bowls, sandwich and other variety of food.

Even though the principal focus on this restaurant are the poke bowls, the plate that the majority people ordered were the lobster

sandwich, which was made with regular bread and depending on the customers it had mayo on it.

I walked in Biscayne Blvd. Miami between 22nd street and 29th street and I could see that many Peruvian restaurants have opened in the last year, since consumers in Miami are looking for restaurants that offer more fish and natural meals that do not require too much ingredients.

Based on my secondary and

primary

research,

consumers in Miami have switched to order more organic

and

healthier

options, they are seeking to have at least a couple of

healthier

included

in

the

options menus

like it is something they automatically look or ask for ingredients, calories, even for desserts they are asking if the dessert has been made with almond flour or at least Splenda.

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Focus Group I conducted a focus group of 10 people for 2-3 hours in a coffee shop in Miami, so I could have an intimate discussion with a random group of people to determine how the idea of the Lululemon Fitness bar is perceived by consumers in Miami. Out of all the participants I found out that they are on both on opposite income range. The majority of the people makes between 45k – 50k range and the second largest group makes 70k and up.

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For the age group the majority of the people are between 30 and 35 years old, which falls inside of the potential targeted consumer age range.

For the meal price the majority were willing to pay between 10$ - 15$ for a balanced meal.

Follow by a 30% of participants who are willing to pay between 15$ - 20$. When it comes to the snacks, everyone in the focus group agreed that they will pay between 5$ - 10$.

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Aside

from

numerical the

the

questions

focus

group

answered

also

open-ended

questions and gave their opinions about the overall idea

of

the

proposed

fitness bar. Overall, they all agreed that the fitness bar is a great idea and they would go because it is a Lululemon brand extension. They majority mentioned that they would be more drawn to dining in ordering a balanced meal.

However, they all agreed that the space would be very convenient, especially with the place offering togo snacks and small bites.

They also talked about the importance of offering preand post-workout shakes or small bites since the space is linked to a fitness lifestyle. One of the items that were not included in the focus group questions were fruits and gels, which they mentioned the bar should offer.

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All of the participants suggested that the menu should include the calories for every single meal or snack offered. This helped me understand more about the typical fitness consumer and how careful they are when it comes to caloric intake. In terms of location, they expected the bar to be conveniently situated near their work and a fitness center. Our suggested location tackles that concern because our potential location would be in the heart of the city of Brickell. Out of all of the participants, there were two that do not live an active life whatsoever. The remaining eight participants all work out before going to their jobs. Aside from food and meal offerings, the focus group was asked about what Lululemon, already existing, products they would be willing to purchase inside the bar. The most common answers were shorts, tanks, hair accessories, water bottles, hats, and hoodies or light jackets.

The focus group helped me to understand the needs of the average fitness consumer that lives in

located near their home, their workplace and a

Miami. The most common concern among them

fitness center. The Lululemon fitness bar is a

is to find a place that offers balanced meals with

proposal that not only will be offering balanced

the nutritional facts. Another major concern was

meals with the caloric intake description.

the location; they want a place to be conveniently

Additionally, the bar will be favorably located in the heart of a city filled with working men and women and also near numerous fitness centers.

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IX. Key Findings

After completing secondary and primary

whether they are on a diet or not, they are very

research I collected quantitative and qualitative

curious of what the meal or snack they are

information. In order to know more about the

eating is made of.

customer ’s experiences and preferences. Both

•

Consumers like to track everything on

types of research helped me to find important

their watch and apps, how many calories they

findings for the strategically Fitness bar that I am

burn, how much time they spend working out,

developing.

they also have apps that counts everything

•

People that live in Brickell Miami are

they eat. Even though many of them do not

definitely looking for more organic meal options,

exercise but they like to track how many steps

since being healthy is a strong trend. Therefore,

they are taking in a daily basis and share it with

customers think just because they order an

their friends through social media. It is said

organic meal, they are immediately becoming

it’s all about the “gram” meaning Instagram,

healthier.

these healthy and active oriented consumers in

•

Customers in Brickell really want to

Brickell Miami like to show off about everything,

know every ingredient that a meal has among its

especially of having a healthy life that is a strong

calories. It is not about losing weight anymore,

topic right now.

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•

Brickell Miami, an area known for having

beautiful people which they have always been very aware of their looks, the majority of them has a decent active life, such a three-day gym class and trying to eat clean at least during the week.

•

Nowadays, consumers in Brickell Miami

have more motivators to be healthy-minded conscious, they are using all this wearable technology to track their sport activities and what their food intake, they have healthier supermarkets options closer to home or work, they have new fitness classes that they are curious to try out, they have more and different kind of competitions to everyone, from individuals that have no experience in the fitness world to people that are very active since years, and they are also having healthier meal options in many restaurants in Miami. Based on my primary research all of the six restaurants that I visited had at least from three to five healthy options on the menu.

•

Since Miami customers are very driven

to have a healthy lifestyle, they are looking for more fresh and natural meals in all restaurants.

They are asking what’s the healthiest meal, if the juice was recently pressed and if they have added sugar, they are asking for different types of milk, they are constantly looking for healthier meals that they can enjoy regularly in their days.

•

People in Brickell Miami are seeking for places that provide healthy and balanced food. For

example, if they heard that a new vegan u organic restaurant has opened in a Yoga studio, they 66

are curious to see how vegan u organic the place is, and if the meals are really enjoyable.

Consumers are very interested in places that provide healthy, balanced and delicious food. • Consumers exercise as a lifestyle in Miami, it is a mega trend to be in shape right now, to be in any fitness class and to show people the classes they are taking or any sport they are doing. The idea is to prove that they have chosen this lifestyle intended to give, not just a ripped body, but also the whole idea is to have a healthy and peaceful mind. • Customers do not want to eliminate sugar, but they are looking for natural substitutes, for example they rather to sweeten drinks with honey, they stop liking artificial sweeteners such as Splenda, Truvia since they are not natural, and it is said that the excess of it could cause cancer. •

Consumers in Brickell are looking for group exercising, they do not want to train alone anymore,

they enjoy having a gym class or training session with their friends or new people that are interested in the same lifestyle. They like to be surrounded with people with similar healthy or fitness goals.

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Secondary and primary research helped me to find out consumer’s needs, what they are looking for, and existing gaps in Brickell Miami restaurants that the Fitness bar will cover.

Secondary research helped me to understand the industry in general, what are the megatrends in the industry, such as wearable technology, boutique studios, companies providing health and wellness program. Additionally, megatrends in consumer eating habits such as fasting, detox juices, whole grain carbs, pre and post workout meals or drinks, more natural and fresh food, functional food, tea, among others strong trends in Brickell Miami.

Moreover, both types of research helped me to analyze customers in Brickell Miami. To understand their behaviors, their motivators, their needs and preferences and have a potential idea of whom the Fitness bar is targeting to. Primary research helped to dig deeper with the consumers preferences, I could get a better insight from people that in general would like to eat healthier without jeopardizing their diet goals. I could find out majors concerns that these people are having, what they really want and are looking within the market. After analyzing all the information, I found out all these vital key findings that I will take in consideration with the Lululemon fitness bar strategy.

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Social Impact The healthy-minded trend has expanded in

completely healthy life, consequently nowadays,

Brickell Miami, it is been a significant boost

new buildings in Brickell need to consider to

cross all generations, especially the millennial

be environmentally sustainable constructed,

generation that is always looking to make a

because it will contribute to the improve of

difference in this world. For them being healthy

human health and quality of life. Everything

means having a healthy mind and body, which

from natural light to open office layouts can

will make a healthier and happier world. One of

be considered part of the movement to make

the changes that he healthy- minded movement

buildings healthier for these healthy minded

has evoke is the food, eating more natural and

people (Eldredge).

fresh food, they do not want processed food, they

In the wake of the healthy-minded movement

are looking for meals that do not have too much

in Brickell a new kind of coaching trend has

ingredients or condiments. They rather to have

appeared too. Apparently, having a personal

natural juices with no added sugar than a process drink that says cero calories.

This healthy-minded movement is a lifestyle in Miami which the majority want to be part of it, it is making more people to get involved into sports such a running, cycling, yoga, CrossFit, boot camp and the arise of new sports such as, paddle yoga, aero yoga, aerial yoga spartan race, kayak races, boxing classes, water biking among others.

People are shifting their behavior, they want to be part of this healthy and active community, they want to share through social media that they are living the best of their life being active and eating organic, vegan or natural food.

People in Brickell Miami are seeking out new buildings to live or work, which creates a rising demand on new construction, they want to live a

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trainer and the willpower of eating healthy is not enough for people in Brickell.

There is now a health coach which is a person

lifestyle concept.

that does not give any strict diet, or workout,

Since consumers in Brickell are constantly

of course if it is a health coach that also is a

looking for this new lifestyle and the need

personal trainer, she/he will give you a training

to share it, a lot of fitness or healthy lifestyle

plan. However, a health coach will just help people

influencers have appeared in the last years,

to have a healthier life and make better decisions

they share their workouts, what they eat, what

in their days, they guide them step by step how

they cannot eat, what they normally do in a day

start thinking differently, regarding life, food and

to maintain this lifestyle. Even people that are

thinking of having an active life in case the person

not a registered coach/trainer or nutritionist

does not practice anything but is looking for a

have these accounts to share their tips about

change in his/her life. The health coach intention

nutrition and exercise. People instead of going

is to teach consumers how to live a healthy

to a nutritionist or a coach are believing more

life that does not require any major sacrifices,

in these accounts, they follow their suggestions,

it is a new way of living the popular healthy

they trust more in influencers suggestions, because they look good, and they have done competitions but what they are not taking in consideration is that what it worked for a particular person and its goals might not work for everyone.

Customer’s behavior has made the industry shift its view on the fitness and health movement. They have realized that people want to improve their looks and health, restaurants have had to add healthy options more often in their menus, gyms have had to evolve and add new classes or provide a new service to reach a new and different market; new fitness activities have grown and appeared. It is a new lifestyle that will continue to grow, and the trends will continue to be modified.

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X. Strategy and Execution Strategy The Fitness bar is expected to generate revenue

industry and her income is 54K yearly. She also

for Lululemon and further expand Lululemon

is an influencer and companies contact her to

community. It will attract a broader customer

advertise their fashion and sport merchandise.

base; customers that like having a healthy lifestyle

She is interested in living a healthy and fitness

and are on the lookout of enjoying healthy meals

lifestyle, she likes to share their workout

that go with their fitness or health goals.

routines, what she eats, and she follows new

The Fitness bar aligns with Lululemon’s mission, which is to keep building a community

eating behaviors trends such as intermittent fasting.

and connect with customers through experiences.

In this case, the experience will be having healthy

Psychographics

and delicious natural food according to the

Daniella is into different exercising

consumer’s health goals. The idea is to provide

activities such as, yoga, running and strength

a service with a purpose and commit to the

training, she likes the variety of them so she can

community, so it becomes part of their lifestyle.

mix them up and not get bored, she also enjoys

The Lululemon Fitness bar also support the brand

taking new gym classes with her friends. She

values, which is to empower people to reach their

likes to go to local events with her friends and

goals, the fitness bar will provide them carefully

share everything where she goes on Instagram.

selected food to keep encouraging them with

She is a food lover and she is always looking

their health or fitness goals.

to explore new restaurants, share what she eats and talk about her experience in the restaurant.

Target Consumer in Brickell, Miami Persona 1

She loves brunch on Saturdays and on Sundays

Demographics

running in the morning with her friends.

Daniella has been living in Miami for 10 years, she lives and work in Brickell. She is well educated; she has a bachelor’s degree and is thinking about furthering her studies and pursue a master’s degree. She works in the hospitality and travel

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she likes taking a high – intensity class or

Behavioral Information Daniella

shares

almost

everything

on

Instagram, what she eats, where she goes, how she dresses and her workout routine. She uses apps to buy clothes, beauty products and track her food intake. She wears smart watches to track her activities, see how many calories she burns, her heart rate pulsations, and share her progress on Instagram. For Daniella is important to go to new trendy establishments to let people know that she is aware of new developments in the city.

Daniella likes to shop online and also go to Brickell City Centre to walk around, shop a couple some high end brands accessories, therefore, she still buys fast fashion brands such as Zara.

Persona 1 Name: Daniella Duque Age: 29 Cohort: Millennial Nationality: Colombian with Mexico Place of Residence: Brickell, Miami Leisure: Travel, Fashion, Fitness, Food, Nature lover, Influencer Work: Travel and Hospitality in Brickell Income: 54k yearly Segmentation Highlights Financially independent, busy bee, fitness lover, influencer, she loves sharing about her nutrition, her travels and her work out routines.

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Brands that she is interested

Persona 2 Demographics Sarah Lewis is from New York. She moved to Brickell, Miami 7 years ago. She is well educated

beach, go to brunch and also events around the area and new establishments.

with a master’s degree and she works as a surgical dentist in Coral Gables. She earns 110k yearly and she is married with no kids. She is into a healthy and balanced lifestyle and she is a nature lover.

Behavioral Sarah likes to share on Instagram about her work and leisure time, but she does not post daily. She a wears smart watch when she

Psychographics

is taking these long walks, or she is biking. She

Sarah is not into any specific activity, but

does not use any nutritional app that counts her

she enjoys long walks, going to parks, forest

calories, she is into balanced lifestyle. Sarah

and riding bike with her husband and friends.

shops online and in Brickell City Centre high

She also likes going to different restaurants with

end luxury brands. She does not go to any other

her friends and husband. She does not on any

mall in Miami, since this one opened its doors,

specific diet, but she likes to eat fresh and natural

for her having the mall just a walking distance is

food, she does not like to eat processed and fast

convenient to avoid Miami heavy traffic.

food. She shares on Instagram about her work, trips, activities and lunch/dinner with friends. On Weekends she likes to go to relaxed, bike, go to

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Persona 2 Name: Sarah Lewis Age: 38 Cohort: Millennial Nationality: New York Place of Residence: Brickell, Miami Leisure: Travel, Nature lover, Book Reader, Healthy Lifestyle Work: Dentist in Coral Gables Income: 110k yearly Segmentation Highlights Money machine, nature lover, she shares on Instagram about her work, trips and restaurants that she goes with friends. .

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Brands that she is interested

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Persona 3 Demographics Fernando is from Argentina, he moved to

Name: Fernando Roman

Miami with his family when he was a kid. He is

Age: 46

been living in Miami since his mid-twenties. He

Cohort: Generation X

works in the real estate industry so he can work

Nationality: Argentina

from home or from any coffee place. He earns

Place of Residence: Brickell, Miami

95k yearly. He is a runner and he is into healthy

Leisure: Running, Fitness, Food, Travel, Reader

eating and fitness.

Work: Own a business / Real State. He works from home or from any coffee place

Psychographics Fernando is a runner aspiring to be a

Segmentation Highlights

triathlon athlete, he is always participating in half

Money machine, financially free, balanced

marathons and full marathons over the world

time, luxury explorer. He likes to share about his

and he is training for a triathlon for the first time

races, training cycles and body improvements.

in Miami. He shares on Instagram his workouts routines, and his diet. He enjoys training and eating with his friends. Fernando is strict with his portions, but he still enjoys cooking and eating his meals.

Behavioral Fernando likes to share on Instagram about her training cycle, diet and body improvements.

He uses an app to count his calories and wears a smart watch to see his training process and share them. Fernando rather to shop online but he enjoys the consumer experience in-store. He likes going to Brickell City Centre mall to shop and go to the movies.

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Income: 95k yearly

Brands that he is interested

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b. Unique selling proposition Restaurants in Brickell Miami do not provide

or rice cakes with almond/peanut butter or

100% natural and fresh food, the majority of

ricotta cheese and depending on customer

the restaurants in Brickell are not healthy,

requirements with or without fruit.

they provide some “healthy” options, but they exceed in calories because of the ingredients, sauces or condiments. This new venture will be the only type of Fitness bar in Brickell, Miami that offers carefully selected 100% natural and fresh food with creative meals which are not served by other restaurants in the area. It will also be the only place that provide pre and post workout meals drinks for workout enthusiast and inspired to be.

Product Offering Based on the primary research, which is the focus group of 10 participants that I did and supported by secondary research, people in Brickell Miami are looking for restaurants that provide healthy meals. They are seeking out places that can offer a variety of balanced meals which they can enjoy. The Fitness bar menu will provide calories and ingredients of each meal, drink or snack. The Menu will be divided into six categories such as breakfast, lunch, dinner, snacks, pre and post workout meals/drinks and brunch.

Some breakfast options will be: •

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Multi-grain bagels, whole grain bagels

•

Avocado toast: It is made of Ezekiel

bread, fresh avocado, black pepper, pink salt, and tomatoes.

Some lunch and dinner options will be:

•

Citrus Salmon: It will be made of fresh

salmon, one orange, one lime, honey, salt and •

Vegetable Paella: It will be made of brown

black pepper with asparagus on the side.

rice, vegetables soup, green and red pepper, chopped tomatoes, carrots, zucchini, broccoli, green beans, artichokes and onion.

•

Zucchini Pasta: It will be made of fresh

zucchini noodles, with black pepper, olive oil and pink salt. Customer will have the

Some snacks options will be: •

Yogurt cup: Non-fat Greek yogurt with chia

and strawberries.

option to add any protein she/ he would like.

Protein Options: Garlic shrimp, Rosemary oregano pepper chicken, Bolognese turkey and garlic tuna.

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•

Rice cake with fresh guacamole made in

the kitchen •

Mugcake: It is made of isolated

protein powder, white egg, oatmeal, carrots, cinnamon and free sugar syrup

Some pre and post workout meals/drinks options will be: Pre and post workout meals/shakes are for workout enthusiast that are very focus on their fitness goals and do not have always the time to prep their meals for the whole day.

•

A variety of isolated protein shakes and

depending on customer’s needs would have the option to add fruits

•

Sweet Potato tortilla: It is made

of eggs, sweet potato, pink salt and black pepper

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area. Five out five restaurants are pricing for a complete meal a minimum of $13 and for Some brunch options will be: •

Sweet potato brunch skillet: It is made of

starters $7 and up.

•

According to the focus group of ten

sweet potato, ricotta cheese, poached eggs,

participants, six of them are willing to pay

avocado, herbs, pink salt and black pepper

between $10 - $15 meal, three are willing to pay between $15 -$20 and one $35 and up for a balanced meal. Additionally, ten out ten participants are willing to pay no more than $10 for a snack.

•

Following primary research results, I

found out with the focus group that the top two groups of participants are on opposite income range. The majority of the people makes between 45k – 50k range and the second largest •

Protein pancakes: It is made of Isolated

protein powder, oatmeal, eggs with a variety of fruits, and consumers can add Greek yogurt or peanut/almond butter

group makes 70k and up. Therefore, I expanded the research in Brickell, Miami and according to the niche.com website, the median household income is $76,347.

After considering all these factors the Fitness bar will charge between $13 and $18 depending on the complexity of the plate. All snacks will fall between $5 and $10.

Placement The Lululemon Fitness bar will be located in the heart of Brickell, Miami 90 SW 8th st Miami

Pricing When setting the prices for the Lululemon fitness bar menu, several factors were considered: •

Research in demographics, according

to ethnographic observation around the Brickell

Fl, 33130. It is a dense, urban neighborhood with a daily surge of office workers, residents and visitors. Brickell ranks as the fifth most walkable in the nation (Miami Downtown Development Authority).

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Miami is the 8th largest market in the United States and the strongest market for retail with 7 of the top 50 most productive malls in the country. (Miami Downtown Development Authority). Lululemon Fitness bar will be located in front of the Brickell City Centre Mall which has a high foot traffic.

Brickell has the highest population, has the highest density, has the highest incomes, has the most occupied office spaces and has the most prestigious hotels (Miami Downtown Development Authority).

The ambience projected for the Fitness

bar is to serve fresh and delicious meals to people in a relaxed, comfortable setting. A place where customers can spend time with their friends, feel good about eating alone or with friends and family. The focus will be on fresh and natural food for locals who share a passion for the healthy eating and fitness. I will create a relaxed environment by decorating the place with stone and earthy colors with light shades and combined with a little warm lighting; a selected playlist playing in the background so customer can feel relaxed and want to stay longer (Curran).

Design of the Fitness bar The layout of the restaurant enable customer to move in and out of the restaurant freely.

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The price per square foot for the retail space is $4. In total the rent expense will be $4,000 per month.

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Promotion Lululemon Fitness bar strategy is to build brand awareness in order to get traffic inside of the fitness bar and build brand loyalty by creating a community of fitness enthusiasts.

In order to target

these customers, I am going to focus the promotion of the Fitness bar on Digital Media such as Influencers campaign, Instagram advertising, the design of a new website, email marketing and digital magazine advertising. I am also going to advertise the Fitness bar through print media by buying ads in Brickell Magazine, Ocean Drive Magazine, in-store flyers and direct marketing mail for residents in Brickell.

Based on primary research results, consumers will go to Lululemon Fitness bar because they are loyal to the brand and they know the good quality of its products. So, the idea is to start promoting the Fitness bar through Lululemon’s account a month before the opening to create curiosity.

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Lululemon stores will have written

in

their

popular

chalkboard events, the opening day. Also, they will hand out flyers promoting the Fitness bar. Alternatively, they will send an exclusive invitation to a numerous sport celebrity, Lululemon ambassadors and heathy lifestyle bloggers that are located in Miami and have a strong following, so it creates a buzz.

Social media marketing is one of the most powerful tools for the business

You are invited to our exclusive

to reach a thousand of potential

opening of our

people find new places for Word-of-

Lululemon Fitness bar

Mouth WOM or find restaurants from

on Saturday May 4th

various social channels, especially

brunch to celebrate the official

Doors will open at 10am Location: 90 SW 8th st Miami Fl, 33130

customers and get noticed. Nowadays,

Instagram

where

they

can

type

any hashtag related to food and they will find multiple options and comments about the restaurant, this behavior works for the Fitness bar because its target audience is very Instagram savvy.

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Since we are in the era of food photography, we will share a sequence

of

well-produced

imagery on Lululemon main account and on their Lululemon Fitness bar account that will be created. The idea is to start posting a month before the opening day to create hype.

In addition, to the creation of Lululemon Fitness bar account, the design department will create a tastefully website to reflect the brand core values, and also to convey superior experience that the Fitness bar will provide while exuding a vibe of refinement. The idea is not having just a beautiful website, it is to make easy for customers to find the menu online and additional information looking

for.

that For

they

are

example,

consumers that are in a hurry will be able to pay through apple pay or can order online since we are partnering with Delivery UberEATS. They will also be able to see upcoming Lululemon events that are happening in Miami. Likewise, see different training classes such as: yoga, cycling, running club among other classes which Lululemon ambassadors are providing in the area.

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Having a user – friendly website is important to be able and track user behavior, the pages that they visit, the amount of time they spend, the terms they use to find the Fitness bar, where they are coming from, their demography among other useful characteristics.

Tracking these important stats will help us to improve the website in the future.

In order to create successful social media content, we need to analyze and plan a post schedule that guarantees maximum post visibility, we need to understand our audience and know when they are most likely to be online so we can schedule post timings accordingly. The purpose is not to be too promotional and annoy our customers or bored them, the goal is to take advantage of this online space to engage in the best possible way with our customers. For example, we could seek for their opinions, take suggestions, liking their posts, replying, reposting their post if they share a picture of the Fitness bar.

We will also use print and digital advertisement in the Brickell Magazine and Ocean Drive Magazine to announce our big opening and create curiosity in local people. This Magazine showcases and influences the passions, pastimes and purchases of the people who live, work and play in the lifestyle of Brickell, Miami.

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Email marketing, another vital strategy that we are doing. We will send a promo email to costumers, that are already registered in our database, announcing that something new is coming up and they need to keep checking Lululemon’s Instagram account for the big news three weeks before the opening.

Alternatively, three weeks before we will send invitations to customers registered for the opening day, so they can RSVP to the event.

Gantt Chart

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Stop Motion Videos Lululemon Fitness bar target consumers are Instagram savvy, so I created four stop motion videos as part of its digital efforts to promote some meals offered in the restaurant.

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XI. Sales, Finances Sales Forecast

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Budget Promotional

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Budget Operations

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Budget Human Resources

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Net Income

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XII. Conclusion In conclusion the Lululemon Fitness bar will be a great business venture. The financials support this idea; the projective sales show a net income of $2,551,799. Secondly, the Fitness bar will cover a gap in Brickell; there are no other restaurants in the area that offer pre- and post-workout meals, and that offer 100% natural and healthy meals. The Fitness Bar will differentiate from other businesses in the area by partnering with local culinary school students that will prepare one of a kind brunch special meal. Lastly, Miami is among the top cities in the United States with the most fitness-oriented communities, which backs ups he idea of placing the business in that city.

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Luxury and Fashion Management Savannah College of Art & Design Winter 2019

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