Lululemon Athletica, Inc. (Lululemon) is renowned for its technical, high-quality yoga-inspired apparel for women. However, the company is growing beyond this niche market and is therefore altering its competitive strategy. Lululemon utilizes a broad differentiation strategy because its target market is broad and its product line is varied, it stresses product innovation, and its community-based marketing and retail experience sustain its differentiation from competitors. Lululemon’s competitive strategy is broad differentiation due to the company expanding its target market and product line. Although Lululemon was initially established to satisfy the apparel needs of adult women who practice yoga, the company has widened its definition to …show more content…
C-79). The company is also offering products and apparel intended for other healthy and athletic lifestyle pastimes rather than solely for yoga. These include swimwear, which were introduce for women in fiscal 2013 and men in the spring of 2014, dance apparel through its ivivva brand, as well as expected golf and tennis products (Thompson, 2014, p. C-80). Additionally, Lululemon offers such products as gear bags, water bottles, caps, gloves, headbands, and socks. This supports the company’s core component to “broaden the lululemon product line beyond yoga, running, and general fitness (specifically swimming, golf, and tennis) and include offerings for both males and females of many ages” (Thompson, 2014, p. C-79) for its fiscal 2014 business strategy. This indicates that the senior administrators of Lululemon have been transitioning the company’s competitive strategy from having a narrow market focus just on yoga …show more content…
To expand brand awareness, brand loyalty, and the appeal of its products the company implements a grassroots community-based marketing strategy. The company selects ambassadors that are local fitness professionals to proliferate word-of-mouth marketing among their students (Thompson, 2014, p.C86). Lululemon additionally engages social media, sponsors local athletic, fitness, and philanthropic events, and positions a community events bulletin board and chalkboards in its stores. The bulletin board displays announcements of future activities, presents fitness education and brochures, and promotes neighboring ambassadors’ yoga studios and fitness centers, while the dressing room chalkboards provide an outlet for customers to rely their comments (Thompson, 2014, p.C86). Lululemon’s yoga ambassadors lead a class every four to six weeks; whereas local professional yoga instructors conduct weekly classes at their local Lululemon location as the retail stores allocate the rearrangement of merchandising displays to provide ample floor space. These retail stores reflect the appearance of a simple, neighborhood boutique as they are situated in street locations, shopping centers, lifestyle centers, and malls as a means of integrating into the community (Thompson, 2014, p.C82). This is enhanced
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.
Problem: Lululemon Athletica wants to convert consumers of rival workout clothing companies to become loyal customers of Lululemon.
Rivalry is especially strong in the outdoor apparel industry. Patagonia competes with many comparable outdoor clothing brands who feature cheaper, more affordable alternatives of high quality. With innovation and sustainability being a core value of their target market, Patagonia must consistently introduce new technology, increased durability, and added comfort in order to remain relevant and competitive. The threats that Patagonia faces has to do with the bargaining power of buyers and the threat of industry competition. As a company focused on quality, Patagonia faces the threat of buyers forcing down their prices by not purchasing their goods. Buyers might feel that their products, although high-quality, are too pricy to purchase. There is also the threat of
Conclusion Since Lululemon started in 1998 they have expanded the company into North America and Australia and offered high end yoga products. Lululemon was able to corner the market in a market driven business, which has strengths and weaknesses to consider. This company could benefit from more aggressive advertising because they have such great brand recognition and consumer loyalty. With the retail market changing and more competitors entering the market, Lululemon needs to stay competitive and offer a broader spectrum of products and expand their markets into areas they already have great brand recognition. Lululemon takes pride in offering a high quality product and this company has changed the way the world sees yoga appeal today.
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.
Women are also drawn to Curves because Curves has strong brand equity. Their quality of service, revolutionary design to the “express workout” is number one in the women’s fitness industry. In today’s day and age, there are more women in the workforce, along with more working mothers, all which lead to a fast paced life style trying to juggle career, family, and home, which represent a very similar lifestyle for women in National City.
As the CEO of Abercrombie and Fitch, Mike Jeffries has turned the company into a multi-billion dollar brand by selling youth, sex and causal superiority, which gives way to the concept and emergence of an “imagined community.” The definit...
L.A. Gear is an athletic shoe manufacturer that is struggling in the athletic footwear industry. The company is ranked number three following Nike and Reebok. L.A. Gear is well known to its female customers due to their fashionable shoe line. To be able to gain some ground on the other shoe manufacturers L.A. Gear is going to have to develop a men's shoe line and capture some of the male buyers. This is not going to be an easy task since Nike and Reebok spend an extensive amount of money on their advertising campaigns including celebrity spokesmen. L.A. gear not only needs to capture the male buyers but they also need to maintain their female customers so a delicate balance is needed. An extensive research and marketing campaign will be necessary to penetrate this market and still maintain its loyal customers and brand recognition. Once the research is gathered a full scale marketing campaign will follow once the new direction of the company is determined.
Lululemon Athletica operates in one of the largest industries in the global market today. Lululemon is considered to be a part of the textile-apparel industry. Lululemon is credited with starting the yoga apparel trend and dominated in that area for years. Since the apparel industry is highly competitive, many of its competitors began to produce similar products when the yoga craze was at its peak. Nike started its very own yoga line which showed promise and remains one of Lululemon’s greatest competitors. Other companies, like Under Armor, have started marketing campaigns that targeted Lululemon’s audience. Also new companies like, Lucy Activewear, have entered the apparel industry increasing Lululemon’s competition. The trillion dollar textile
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...
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).
considered normal for a well-established business. Lululemon's price earnings ratio tells us that there is increased growth and performance anticipated in the future.
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
Nike’s focus for fashion forward women is the following: lead the athleisure trend, increase advertising, and the introduce the #BetterForIt social media campaign. We need to focus on the athleisure trend by increasing our portfolio for the women target market. Athleisure is already 20% of the firm’s revenue and we need to recognize that women are leading this fashion movement. Under Armor and Lululemon are already making headways in this fashion focused market. We need to emphasize our athletic technologies, promoting lighter fabrics and better performance, while still maintaining a level of comfort and fashionability. Increasing the portfolio means nothing if women don’t know we’ve done just that. Nike will need to increase advertising specifically with this target market in mind. The #BetterForIt campaign is one important aspect of these advertising efforts. Similar campaigns should promote and help “normalize” athletic wear in everyday