As women have continued to embrace a variety of fitness and athletic activities, including yoga, we believe other athletic apparel companies are not effectively addressing their unique style, fit and performance needs. We believe we have been able to help address this void in the marketplace by incorporating style along with comfort and functionality into our products. Although we were founded to address the unique needs of women, we are also successfully designing products for men who also appreciate the technical rigor and premium quality of our products.
We also believe longer-term growth in athletic participation will be reinforced as the aging Baby Boomer generation focuses more on longevity. In addition, we believe consumer purchase decisions are driven by both an actual need for functional products and a desire to create a particular lifestyle perception. As such, we believe the credibility and authenticity of our brand expands our potential market beyond just athletes to those who desire to lead an active, healthy, and balanced life. Psychographics The brand aims to appeal to the consumer that values a high quality of life, peace and self improvement. Most consumers that identify with their brand are yoga and sports lovers who value innovative sportswear without compromising great style or comfort. Their products support this lifestyle, therefore the typical psychographic profile of their guests are as follows: Lyfestyle: Diet – Healthy diet containing lots of fresh fruit and vegetables and all required servings in the food groups.
At least 8 glasses of water a day are important for a balanced diet. Hobbies: Engaged in both indoors and outdoors activities and adventures. Enjoys the peace and tranquility that yoga brings and enjoys the serenity of nature. Leisure: Focus on health, family, and friends, working out and meeting new people. •Geographics As announced on the company’s website, there are currently over 100 Lululemon stores, distributed in 4 countries: Canada, the United States, Hong Kong and Australia.
The first store was opened in Vancouver (Canada), in November 2000 – two years after the company’s establishment. Moreover Lululemon accounts for many dealers that distribute their products in countries such as Canada, United States, Cayman Islands, Hong Kong, Mexico, Philippines, Singapore, Taiwan and United Kingdom. • Product Benefits •Product Usage & Brand Loyalty Lulemon guests want to use the brand again and page 38 6. Positioning 7. Marketing Mix A. Product •Physical and functional Characteristics
The Lululemon design team developed the famous Groove Pant by building fabrics that they believe helped advanced the product line and differentiate them from the competition. The components chosen to manufacture this item, define the Groove Pant as a must have article with characteristics such as stretch ability, capability to wick moisture and durability -Luon: included in more than half of Lululemon’s products, wicks away moisture, moves with the body and is designed to eliminate irritation -Silverescent: incorporates silver directly into the fabric to reduce odors as a result of the ntibacterial properties of the silver in the fabric -VitaSea : derived from a seaweed compound. •Packaging and Labelling •Brand Name and Image Lululemon has an extraordinary brand with a loyal and growing following around the globe who have embraced our yoga inspired apparel and unique store experience. The brand represents people to live longer, healthier and more fun lives. By producing products that help keep people active and stress free, Lululemon’s brand stands for the belief that the world will be a better place.
Setting the bar in technical fabrics and functional designs, the brand symbolizes innovation as a result of continuous research . •Warranty and Service • • Before Distribution ?To ensure that they continue to provide our customers with advanced fabrics, our design team working closely with their suppliers to incorporate innovative fabrics that meet particular specifications into their product.. In addition, to ensure the product quality of our fabric and its authenticity, we test our products using a leading testing facility.
We also partner with a leading independent inspection, verification, testing and certification company, which conducts a battery of tests before each season on all of our fabrics across all product lines, testing for a variety of attributes including content, pilling, shrinkage, and color fastness. We collaborate with leading fabric suppliers to develop fabrics that we ultimately trademark for brand recognition whenever possible. •After Distribution •Strengths and Weaknesses Future Recommendations B. Price •Pricing Strategy Lululemon’s Pricing Strategy aims to communicate to its guest that they are a brand that supports innovative, high quality apparel. Their items, specifically the Groove pant, is targeted at educated women with higher than average incomes, Therefore Lululemon Atletica aims to maintain its standard and the message of luxurious yoga outwear that it transmits through its prices. Even during recession times, price cuts where not part of their strategy.
The company has strategically chosen to leave their pricing at similar points while increasing quality. They have upgraded the quality of its merchandise by using heavier, more durable yarns and better zippers. Their aim is to sell the product exclusively to guests who enjoy innovative and high quality apparel. •Chart CompanyRegular PricingSale Pricing Lululemon Atletica$100 Nike TNA NA •Strengths and Weaknesses •Future Recommendations C. Place
Stores at the main channel of distribution of the Lululemon product. Their approach to identifying locations for their stores typically favors street locations and lifestyle centers where they be a part of the community. As a result, their stores are typically located near retailers or fitness facilities that they believe are consistent with our customers’ lifestyle choices. Lululemon athletica sells its products through premium yoga studios, health clubs and fitness centers.
Premium wholesale locations offer an alternative distribution channel that is convenient for the brand’s core consumer and enhances the image of Lululemon. The corporation does not intend wholesale to be a meaningful contributor to overall sales; instead they use the channel to build brand awareness, especially in new markets. Their vertical retail distribution strategy differentiates us from our competitors and allows them to more effectively control brand image.