It is important to note that Lululemon Athletica, Inc. has continued to grow significantly since its establishment thanks to effective leadership. Nonetheless, in spite of its substantial growth, Lululemon Athletica is experiencing some pertinent issues, which the management have to address so as to prevent it from incurring losses. For this reason, the present paper analyzes these issues and recommends the courses of action that the company’s management ought to implement. Issues Facing the Company The major issues that the company’s management needs to address include the rising competition and the problem
It is very important for the marketers of Lululemon to consider all of these aspects in order to maintain sales of their products to their target market. The first element of the marketing mix is the product, which involves the total product concept. The total product concept has three layers, beginning with the core product layer, which describes the main benefits that the product has for the consumer (Kerin et al., 2015). Lululemon has a wide variety of
Lululemon needs to maintain their high quality in order to gauge more customers from their existing brand
After plenty of research it has become obvious that JCP did not only make choices that provided relief in the only the moment of need but also choices that would help in the future. By not eliminating any investments and cutting down on costs helped them to not go further into debt that to take several years to break out of. Instead, JCP were showing an increase in sales again by 2010 and continues to still show increases. This differs from Nordstrom and Kohl’s; each of these stores also seen an increase in sales in 2010 with Kohl’s seeing and increase as early as 2009. However, these two stores have begun to experience a decrease in sales in 2012 and continue to see a decline in sales.
Overall, I don’t know how I feel about Lululemon’s product for a high price. I know fitness gurus that praise the company’s products mentioning the high quality of their product. I also know that there are many other comparable quality products out there that is half the price or less. I’m also glad that founder, Chip Wilson, is no longer affiliated with Lululemon. He did not seem like a great CEO at that time, and I’m glad the current CEO took over.
Lululemon can be considered a Shopping Product. Lululemon provides high-quality products so their products life circle is long. Another reason is their products are expensive for some people, so consumers are rarely to buy their products. Store image is very important to the Lululemon because they want to create the brand loyalty. Lululemon is not distributed so widely.
E-Commerce: Online sales play a large role in Lululemon’s, and it is continuing towards an upward trend (Keyes, 2017) 3). Fast growing male sector: Despite only accounting for a small percentage of its total sales, its male apparel has seen strong growth and potential. Its management hopes that men’s sales will reach one billion or 25% of total revenues by 2020 (Bhattacharjee, 2017). 4). Community Events: Events such as the renowned Seawheeze marathon, helps the brand spread its “lifestyle” image and retain consumer loyalty.
Also, feeding into the organic mouth marketing. They use fit models to test and give them a feedback. Lululemon had a manifesto which was created by Mr. Chip Wilson and his father.
Government policies supporting active and healthy lifestyle can have effect on Lululemon. With growing market, there will be opportunity to grow. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. It is opportunity for Lululemon.
More recently the acceleration that we have seen at Lulu Lemon in the most recent quarter puts them in an excellent position to achieve there $4 billion revenue goal by 2020. American financial news site TheStreet, stated that Lulu Lemons high ecommerce penetration, pricing power and broad international opportunity position Lulu Lemon well to reach the high targets that they have set for themselves. Contrary to this, Lulu Lemon has seen a trend that can be tracked back to almost 2004. A sharp fall in shares during October November, and a drastic increase in the following months. Most likely due to the decrease in individuals working out during the cold months, and the influx of workout clothing bought as gifts during Christmas or for new year’s
This is why it is so crucial for Lululemon to create and build relationships with customers in order to make them customers for life. There is a large variety of sports apparel brands making the buying power of consumers high. With a variety of sports apparel brands the difference between their products might not be that different after all. This makes it very important for Columbia has to create brand loyalty within their customers. Sportswear is usually used in extreme or rugged conditions so buyers become very concerned with the quality of the product in which they are purchasing.
STRATEGIC MARKETING OBJECTIVE We want people to know about the line’s launch and to visit Lululemon stores across the country to see the new merchandise. The campaign will include a social media aspect where people are encouraged to use a hashtag to start a conversation about what a healthy lifestyle means to them. The goal is to establish the brand as a more inclusive, health-conscious brand.
Every time the company posts about a new product or style, 2.4 million people see it. The followers see the new styles and their opinions are then swayed based on the amount of cultural capital they believe Lulu Lemon to have in terms of taste. Not only do the followers want the clothes, they also want to keep up with the lifestyle associated with the brand. The Lulu Lemon taste impacts the clothing just as much as it impacts the
Page 1 of 7 Alexis NanthanongMrs. PerezBusiness 101March 6, 2018Lululemon AthleticaLululemon Athletica is a Canadian athletic apparel retailer. Founded in 1998 in beautifulVancouver, Canada, lululemon is a technical athletic apparel company for yoga, running,training and most other sweaty pursuits. As a dynamic and growing global brand, the companyinvests in sustainable business and mindful practices to ensure highest ethical and businessstandards, and create value and positive impact for a healthy future and resilient brand. Thecompany makes a variety of types of athletic wear, including performance shirts, shorts, andpants, as well as lifestyle apparel and yoga accessories.
II. A. Company Info Since the beginning in 1993, Kate Spade has been known for their use of colors and patterns, but it all started with a purse. Kate Brosnahan Spade designed a line of 6 purses completely different from the trends she saw on the runway. This was just the beginning for Kate Spade as they now sell everything from jewelry, to clothing, to home decor. In 2007 Spade sold the company to Liz Clairborne with Deborah Lloyd as the President.
