After twenty years in the skate, surf and snowboard business, Chip Wilson took the first commercial Yoga lesson offered in Vancouver and found the outcome exhilarating. Lululemon Athletica Inc was founded in 1998 by Chip Wilson. The company is located in Vancouver Canada and specializes in athletics clothes and Yoga. Wilson started the company with the idea that the products provided by the company would help in improving the degree of health within the community. The company has over one-hundred locations globally. They have operated in Australia and primarily in North America; their original target was an educated lady who opts to live a healthy and active lifestyle. To Chip, the post-yoga sensation was so close to snowboarding and …show more content…
By 2013, the organization had about one hundred and thirty-five stores in the United States, two in Hong Kong, twenty-four in Australia, Fifty-one in Canada and one in the United Kingdom. The latest annual report of the Lululemon company shows that the company employed approximately seven thousand people, with the majority working in the corporate 's retail positions. The company registered a double-digit development in its net income and revenue. Precisely, its net income grew by forty-seven percent and its revenue grew by thirty-seven percent. The notion of geographical extension offers a complete range of potential advantages for Lululemon. The product currently operates retailing events in approximately one hundred and fifty stores situated mainly in the United States and Canada, Hawaii, China, New Zeeland, Australia and England. With the society–oriented marketing method, Lululemon has developed strong industry upon a model of opening company stores in different regions. The company operates strategic sales programs partnering with fitness and yoga facilities to feature Lululemon yoga equipment and attire in the studio. The approach of partnering offers valuable marketing opportunities that the firm exploits to maximize its profits. The firm is big enough and has the requisite market power that helps it …show more content…
The Lululemon 's top five competitors are Under Amour, ADDIDAS, Nike, Bebe Sport and Lucy Active Wear. Competition in this arena is mainly through the quality, brand image, price, and innovation. Lululemon 's rivals have substantial competitive positioning because of being more established with a broader client base and products. Another bargaining power of these rivals is having a strong power in financial and marketing strategy. Nevertheless, Lululemon distinguishes itself in the manner it markets its products and trusts it has a strong loyal client base because of its vertical retail strategy and grass root marketing. It is very paramount for every organization to develop a SWOT analysis since it is a crucial part of the strategic planning process. In this study, we will examine three questions in each component to conduct a brief SWOT
The most recognized brands amongst US males in the sports and fitness clothing market are Nike, Adidas, Reebok, and Puma (Statista, 2014). However, there is a large amount of opportunity to gain market share as only Nike hold a high percentage favoritism from male shoppers (Statista, 2012). Multiple brands have a stronger focus on women’s clothing such as: Fabletics, Athleta, and Lululemon. Lululemon has a similar business model however the brand has a stronger connection with women and yoga.
Lululemon geographics have expanded into Asia, Africa, Europe, and have densified in North America with new openings of stores. The companies’ demographics have also expanded. Previously only focused on yogi’s, Lululemon is now focused on any one who sweats and is interested in athletic wear and the lifestyle it promotes. Lululemon also offers the same quality leggings to men and young females; one of Lululemon’s biggest market segmentation moments was when they opened their sister store Ivivva to market the same product to a younger female audience. However, they are still fixed on offering their products at a higher cost, meaning only customers who have money for discretionary products can purchase them; the high exclusiveness and quality has created a loyal fan base. The organization also continues to segment themselves as a leader in the health conscious market, promoting the better lifestyle with yoga ambassadors. With the rise of people being aware of their bodies, Lululemon fits perfectly into the new
J. Crew, also known as J. Crew Group Inc., is a private label company known for its preppy fashions that are fashionable yet costly. Essentially, the company was owned by the Cinader family for most of its history. Mitchell Cinader and Saul Charles founded the company in 1947. It was originally known as Popular Merchandise Inc. doing business as the Popular Club Plan, in which Mitchell’s son Arthur was the overseer. The company sold women’s clothing through in-home demonstrations. In the early 1980’s, Cinader and Charles observed catalog retailers such as Land’s End, Talbots and L.L. Bean reporting rising sales in revenue. With intentions to increase sales and duplicate success of these well known companies, Popular Club Plan began its own catalog (http://www.fundinguniverse.com/company-histories/j-crew-group-inc-history/).
Lululemon, a premium yoga-focused retail chain, serves two market segments. One segment consists of consumers who are characterized as “trendy urban” and the other segment consists of “wealthy” consumers. The “trendy urban” segment, in summary, is fashion oriented or active women who live in metropolitan areas. The “wealthy” market segment is affluent women who live in either urban or suburban areas. As discussed below, these two market segments are defined by differences in demographics, geography as well as behavioral and psychographic characteristics.
A SWOT analysis is used to assess a company’s strengths and weaknesses found within the company, as well as opportunities and threats that emerge from the external environment. In this analysis, the main strengths, weaknesses, opportunities, and threats facing the Ford Motor Company will be discussed to provide a powerful analysis tool that supports the planning process for marketers.
Since 1998, Lululemon has transformed the way people dress to workout. Through innovative products and technical athletic fabrics, a brand was created to provide clothing for workouts such as yoga, running and cycling. Lululemon opened its first store in Vancouver in 2000 with the plan to have the store be a community hub for people to learn and discuss their physical fitness and overall health goals. As Lululemon was more than a store to provide products for consumers, their goal was to influence every person who walked into the store. A basic criterion for investment is Lululemon’s mission to create components for people to live longer, healthier, fun lives. All Lululemon locations maintain strong relationships with local communities and host in-store events such as complimentary yoga classes and goal-setting workshops.
Wilson has started many retail companies, foundations and programs. His most known company is Lululemon Athletica, often referred to as Lululemon. Started in 1998, in 16 years the company has become the leading brand in yoga apparel. The business started because female participation in sports increased in those years. The first store was in Kitsilano. It is a small town in Vancouver where Wilson was born and brought up. Originally, Lululemon sold all women sports wear. After the some success, the company launched a subsidiary in 2001 called Fashion Active Lab. This company specialized in yoga clothing. The success of yoga clothing, created a new opportunity for Lululemon. In 2009, they started a new subsidiary called Ivivva Athletica. This company’s target market was girls ages 6 to 12. On July 27, 2007, Lululemon hit the NASDAQ market for public trading under the symbol LULU. On December 10, 2013 Wilson sa...
The competitive analysis sought to establish Kendra Scott’s competitive rivalry, buyer power, supplier power, threat of new entrants, and threat of substitutes. Kendra Scott has various major competitors, but it has preserved its leadership in the jewelry industry by maintaining a brand that is associated with superior and consistent customer experience, authenticity, superior core values, and flexibility in responding to changing tastes. The consumers have weak bargaining power largely due to the emotional attachment they have for particular jewelry brands. Besides, they do not rely on market forces and pricing levels to make purchasing decisions. The jewelry company and its main competitors depend on a few suppliers for their raw materials
Qualitative research provides insight into developing phenomena or offers a new perspective on current trends. Prior to the creation of a dynamic strategic plan, the SWOT analysis offers a critical assessment of an organization’s competitive position, though the four areas of assessment are not weighted, nor does the utilization of the tool provide specific direction for the organization and requires subjective interpretation of the data. Input from stakeholders brings validity to the information gathered while conducting a SWOT
Founded in Vancouver BC in 1998, the first Lululemon shared its retail space with a yoga studio. Lululemon Athletica inc. is a Canadian designer and vertical retailer of athletic apparel, which operates predominately in North America (“Lululemon Athletica Inc (LULU.O),” 2014). The Company’s garments are marketed under the brand name “Lululemon Athletica” (“Lululemon Athletica Inc (LULU.O),” 2014). Lululemon decided to go public in 2007, 7 years after opening their first store in 2000, raising $327.6 million (Urstadt, 2009).
By the end of 1998 though, there was evidence of a crisis occurring. Customers and media pulled together to assist senior management partake in an internal audit to identify the problems and see if they could come to a solution. The purpose of this assignment is to construct a SWOT analysis, highlighting each of the strengths, weaknesses, opportunities and threats that were highlighted in the internal audit. The SWOT analysis is contained within the marketing plan and is the third step in the marketing planning process, coming after the Marketing audit and before any assumptions. (Joisce, Ted (2002), Marketing Planning Lecture Notes – 14/10/02, Mission, Objectives, Strategy, Tactics)
1. How did L’Oreal become the world’s largest beauty company? What was the role of acquisitions in this growth?
It has also established a distinguishable name among its competitors with a reputation for leading customer service. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand into new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. These alternatives are meant to act as strategic guidance to the company in order to enhance growth.
Donkey Coffee and Espresso is a well-known coffee shop brand in Athens, Ohio, which sells fair-trade coffee and food products from local farm on West Washington Street. It has been around for more than 10 years. Donkey’s product mix includes high-quality espresso beverages, chocolate beverages, blended coffee and cream, brewed tea, food items and others. The SWOT analysis will focus on Donkey’s products to understand how their products contribute to success. Internally analyzing Donkey’s strengths and weaknesses helps the company determine their market position, and locating opportunities and threats externally assist to stay ahead of their competitors.
The largest sports and fitness clothing market will be that of the US, it is said to be the largest in the world. The EU and other countries are really far behind the US in terms of regional market share. There was also an increase in demand from various countries which includes China, Australia and India. Asia pacific is expected to record an annual growth of more than 4%through 2015.