Lululemon Case Study

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Six Months Merchandise Plan Case Study Assignment.


Part 1

Describe the store – History and summary

Lululemon Athletica Inc. was founded in Vancouver, Canada. The company aligns itself in the yoga-inspired athletic apparel. Since 1998, it has grown into 201 countries, with the majority in North America, with stores also operating in Australia, Canada and China.

Chip Wilson founded Lululemon in 1998. The first store opened in Kitsilano, a Vancouver neighborhood. Wilson believed that yoga would be the up and coming athletic trend in the revolution of sports. In the initial stage, the store included a design studio, a retail store that also transformed into a yoga studio in the evening. In 2007, Lululemon became a public company and since then it has expanded aggressively into different markets.

Laurent Potdevin current CEO of Lululemon said in a statement, “2014 is an investment year with an emphasis on strengthening our foundation, reigniting our product engine, and accelerating sustainable and controlled global expansion” .

Positioning strategy

Retail Strategy

Store’s retail mission and/or vision statement

At its very core, Lululemon’s intent is to “elevate the world from mediocrity to greatness” . On the company’s website, their mission statement is “creating components for people to live longer, healthier, fun lives” . Goal setting is a big part of the culture at Lululemon. Every employee is encouraged to create their vision, as the company believes vision defines an ideal life and identifies the goals one need to achieve this vision. Their vision and goal setting training program is based on six core concepts; possibility, vision, balance, audacity, format and integrity. In addition, Lululemo...

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...t build quality and extra features into their products, such as moisture-wicking fabrics. Moreover, Under Armour is redesigning and expanding its store base. It is also focusing on creating a larger product mix to its Studio yoga line .

Gap’s Athleta runs close to Lululemon’s brand positioning, product lines and promotional activities. Athleta has been rapidly expanding its store base. Similar to Lululemon, Athleta places emphasis on creating a strong community base and in-store events when promoting the brand. In terms of price, Althleta is able to offer similar high quality clothing at lower prices. For example, a pair of yoga pants from Athleta costs $59.99 , compared to a similar style yoga pants from Lululemon that costs $98 . Because Athleta is owned by Gap, it has the resources and networks to expand quickly and gain prominent market share.

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