Lululemon-PowerPoint- FINAL (1)
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Transcript of Lululemon-PowerPoint- FINAL (1)
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About Lululemon
• Founder: Chip Wilson• First Store in 1998
(Vancouver, Canada)
• Recent Growth• Company Products
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Growth Strategy
• Flagship Yoga Shoeline• ≈ 9.36% Proposed Market Share
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SWOT Analysis of Lululemon
• Strengths– Brand Loyalty– High Quality Products
• Weaknesses– Small Niche Market– Primarily Focused on Women’s Apparel
• Opportunities– Expansion in Childrens’ and/or Men’s Apparel– Void of Footwear
• Threats– Competitors with High Market Share– Fashion Behavior Makes for Short Life Cycle in Products
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Supply Chain
Raw Materials
Manufacturing Facility of Wenling
Woensi Shoes
Lululemon Warehouse
Ship to Store or Customer
Packaging Process
Shipping to Customer
Shipping to Store
Packaging Process
Decision Points
Tasks or Operations
Storage Areas or Queues
Flow of Materials/Products
Store »
Customer »
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Supply Chain
• Outsourced to Wenling Woensi ShoesHong Kong, China
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Marketing
• Target Market– Demographics• Professional Women • Ages 24-34• Disposable Income
– Psychographics• Established Career / Families
– Buying Behavior
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Marketing
• Promotion– Social Media
• Increase Social Media Retention & Engagement
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Pro Forma Sales
Footwear Revenue $9,097,745,009,00
Shoe Lines 584
Revenue per Shoe Line $15,578,330.49
Yoga Market 20%
Yoga Shoe Revenue $3,115,666.10
Lululemon’s Market Share 9.36%
Lululemon’s Shoeline Sales $291,626.35
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Pro Forma SalesBase Case Year 1 Year 2
Sales $291,626.35 $349,951.62
Cost of Goods Sold $131,231.86 $157,478.23
Gross Profit $160,394.49 $192,473.39
Selling & Administrative Expenses $45,231.25 $54,277.50
Operating Income $115,163.24 $138,195.89
Pretax $86,833.09 $104,199.70
Taxes $25,702.59 $30,843.11
Net Income $61,130.49 $73,356.59
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Conclusion
• Rejected the Growth Strategy– Competition is too strong–Market share can be taken over too
easily
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