LULULEMON’S ATHLETICA

Talya Levenson, Alex Wenger, Larissa Portaluppi, Daniela Vergoosen

MKTG 445: Global Makreting

BACKGROUND

Founded in Vancouver in 1998 by Dennis Wilson

Specialize in technical athletic apparel for yoga, running,

walking, dancing, cross-fitness, and Pilates

Every Lululemon location has strong ties to local community

Goal= “Train our people so well that they could in fact positively

influence their families, communities and the people walking into

our stores”

Lululemon encourages healthy lifestyle choices

Having set goals = what the Lululemon culture is all about

PRODUCT ITSELFHigh quality seaming and stitchingHigh quality fabric and technologies

• Luon®, Swift and Luxtreme™• 6 Natural Blends• Mesh and COOLMAX®

PRODUCT

The clothes will be used more for running than

yoga

People in London wear more muted colors in the

fall and winter

In the spring and summer people start wearing

colors

Need to adapt the tags to include U.S., UK and

Canadian sizes

HOFSTEDE’S CULTURAL D IMENSIONS

0102030405060708090

100

IndividualismPower DistanceUncertainty AvoidanceMasculinty

5 REASONS FOR SUCCESS

1. Has developed a social media presence through various

platforms

2. Connects through establishing relationships with

customers.

3. Use of real people to promote products

4. Welcomes and responds to public feedback

5. Blog has significant space dedicated to educating

customers about the yoga lifestyle

DEMOGRAPHICS

Temperature= Moderate and more than one-half of the

days are overcast

Very diverse: 59.8% White, 20.9% Asian, 15.6% Black,

6.6% Indian

London’s population is expected to exceed 9 million by

2031

Population= younger than rest of the UK by 2/3 and 64%

are aged under 44

STATISTICS

Walking activity in London

Travel patterns= 31% of trips in London are made

on foot

In outer London the walk share of trips is 64%

higher for people without a car or household with

just 1 car in the family

TARGET MARKET

Londoners that like to buy and spend in high end

luxury boutiques

Women ages= 25-50

High disposable income

Fashion forward/Trendy

DISPOSABLE INCOME

London’s economy is outperforming the rest of UK

by 12.4%

London contributed 21.9% of UK’s output

Has the highest household income per head (nearly

30 per cent higher than UK average)

Inner London’s average highest disposable income

is at £33,323

PRICING STRATEGY

Currently use Value Added Pricing, they do not cut

costs to make lower quality products

Add extra features ex: Adjustable straps to

differentiate themselves from that of competitors

Prestigious and exclusive product in their category/

not found in every city which adds to exclusivity

PRICING STRATEGY

PRICING STRATEGY CONT’D

London currency is stronger than U.S.

Average dollar value compared to pound in 2012 $1.52 =

£1

Add 35-45% to prices to account for higher maintenance,

operation, and facility costs in London

Decision: keep prices stable regardless of daily exchange

rate fluctuations

http://www.x-rates.com/graph/?from=GBP&to=USD

DISTRIBUTION CHANNELS

STORE LOCATION

London has the highest disposable income per

household

Narrowed it down to 2 locations:

1) Chelsea’s Kings Road

2) Regent Street

PROMOTION STRATEGY

Juice Parties

Free Yoga classes, and information sessions

KEY= social media:

http://www.youtube.com/watch?v=QUF36chCPuA

Get “Made in Chelsea” celebrities to promote

products

Touch Screen TVs

THANK YOU

May the yoga breath be with you!

Namaste

WORKS CITEDhttps://www.cia.gov/library/publications/the-world-factbook/geos/uk.html

http://www.londoncouncils.gov.uk/londonfacts/default.htm?category=2

http://www.tfl.gov.uk/assets/downloads/Walking-in-London-report-May-2008.pdf

http://www.visitlondon.com/things-to-do/activities/shopping/top-shopping-destinations

http://www.kxlife.co.uk/club

http://www.ons.gov.uk/ons/rel/regional-trends/regional-economic-indicators/march-2013/sty---infographic-s

ummary.html

http://www.lululemon.com/about/

http://smbp.uwaterloo.ca/2012/10/five-elements-of-lululemons-social-media-success/

 http://www.reuters.com/article/2013/10/08/us-lululemon-outlook-analysis-idUSBRE99712S20131008

http://www.Lululemon.com http

://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&ved=0CCsQFjAA&url=http%

3A%2F%2Fwww.bhf.org.uk%2Fplugins%2FPublicationsSearchResults%2Fidoc.ashx%3Fdocid%3De9994c21

-ec6c-4fad-b741-ad96bacd69ed%26version%3D-1&ei=DGifUvTkH-vLsQTGtYGABg&usg=AFQjCNFUGYgyg

RlBgu4NRJXrOLE3IzjC1w&bvm=bv.57155469,d.cWc

http://www.accenture.com/us-en/Pages/insight-enabled-uk-shoppers-online-buying-report.aspx 

http://www.dailymail.co.uk/femail/article-2513436/Are-yoga-pants-new-jeans-How-trend-led-workout-cloth

es-making-fashion-statements-outside-gym.html

http://www.businessinsider.com/meet-sweaty-betty-londons-pricier-lululemon-2013-12