1. PESTEL Analysis
Political
• Tax concessions
• Patents and trade markets are used in designing fabrics and apparel. Economics
• Sensitive to price
• Costly
• Economic slowdown
Socio-Cultural
• Canadian Brand
• Yoga and runner
• Health conscious
• Ethical product production
• Safe Environmental standards Technological
• Instagram
• Web designed website
• Income based on shipping.
Environment
• Outsourcing all products through third-party suppliers
• Third party suppliers are located in Southeast Asia where pollution laws are becoming stringent Legal
• Filed suit against Calvin Klein for violating its yoga pants patents
• Gets into disputes with its employees at times but does not it does not affect working of the company.
2. Porter’s
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They are in business for a longer period, have more wealth, financial resources, brand image, huge retail experience.
➢ Internal Analysis
1. Value Chain
2. Marketing Mix
1. Value Chain-
• Supply Chain Management- received real time input from customers and less time to check samples
• Operations: streamlined design and development processes. Only one activity is outsourced i.e. production. It is outsourced to countries where resources are cheaper.
• Distribution: Facilities in Vancouver-BC, Summer, Washington and Melbourne, Australia; online retail store
• Sales and Marketing: community based, yoga instructors ambassadors, community coordinators
• Service: ‘Educators’, guests, Lululemon manifesto.
• Profit Margin: Net Profit Margin is 17.1%, which is 15% above industry average.
2. Marketing Mix Analysis-
Product-
• Yoga and athletic apparel
• Various Accessories
• Special fabrics for different functionalities Place-
• Exclusively in Lululemon retail
Stores and on company website
• Use of Information Systems
• Various channel partners
Price-
• High pricing – between $50-170
• Customer and profit-oriented Promotion-
• Loyal customers, advocates and word of mouth
• Personal