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Lululemon case study paper
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Athleisure style take years to craft and master due to the various focus groups, sample testing, and trial and error mechanisms required to establish a look and comfort level that customers deem valuable and purchasable. Under Armour has been focused on technical athletic gear, which takes a lot less checkpoints; thus, Under Armour is losing competitive advantage by entering the athleisure business too late. Many of Under Armour’s competitors are already thriving in the athleisure business. For example, Lululemon is popular among all types of consumers--runners, yogis, dancers, suburban moms, teenage girls, college guys, men and women from all walks of life. Lululemon also has aspirational personas--Ocean and Duke--to help them with their marketing. …show more content…
Athleisure has become such a big trend that there are many smaller brands and companies coming out with products. For example, celebrities like Kate Hudson has her brand Fabletics, Beyonce has her brand Ivy Park, Rihanna’s working with Puma, Jessica Simpson and “The Warm Up” partnered with Macy's, Cheryl Burke with QVC. There are many more stylish stars who have decided to start their own lifestyle and athleisure clothing lines. With the emergence of social media, influencer marketing, and completely digital shopping platforms, more and more athleisure products are being introduced. Athleisure is the newest trend and popular among various demographics. Under Armour is facing competition from the major athletic brands, as well as start-ups and celebrity started clothing lines. Under Armour is especially in trouble because the majority of customers, particularly females, desire trendy and fashionable athleisure wear. Under Armour is known for its “copious logos and basic styles of sportswear.” In order to truly break into the athleisure world, Under Armour is going to have to modify and recreate their image to show that they are more than a utility-based athleticwear
Under Armour uses pathos as well to sell their product. The way Under Armour’s ad sells is almost the same as Adidas. Under Armour’s ad creates a message that all of the greatest athletes had to work hard to get where they are now. The ad is also trying to convince the audiences that their product is what will help to be a better athlete. They also use the famous athlete to convince the audience that their products will make them become great, as well as, get their money.
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
Overall, Under Armor did an outstanding job targeting young, aspiring athletes to do what they want to do with their life. They used logic to show how hard the athletes work along with emotion to show how serious they take their training. Finally, Under Armor used the credibility of the athletes to sell their new training shoe. This commercial will make anyone want to purchase a pair of shoes and workout themselves. Since the commercial is on such a serious level, viewers emotionally connect with it which makes Under Armor seem like the best brand
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.
Under Armour’s target market is consumers that are involved in physical activities. The demographic age groups that they cater to varies from youth to adults. Their products can with stand any weather condition from cold weather to warm weather, which means their product can be used in any geographic location. These consumers can be either light user like walkers or heavy users like football players.
Under Armour is a leading athletic clothing line directed towards the overall athlete who is looking for the most comfort during extracurricular activities. The mission of the company is, "to provide the world with technically advanced products engineered with exclusive fabric construction, supreme moisture management, and proven innovation. In short, every Under Armour product is doing something for you; it's making you better."
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.
The retail industry is continuously growing. There are many successful companies and entrepreneurs in this industry. One successful entrepreneur is Dennis Wilson, also known as Chip Wilson.
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).
Under Armour has a mission statement that clearly states what they wish to accomplish and how they will do it. “To make all athletes better through passion, design, and the relentless pursuit of innovation”, this is a powerful statement that makes consumers and the competition aware that this organization will strive to help athletes everywhere reach their potential (Mission, 08).
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.
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
The second recommendation for Under Armour is that they should develop a shoe line and marketing campaign for women, based on the idea of everyday athlete. Focusing on the fact that women want to compete and have the same performance benefits that everyone wants, but also have a shoe that is stylish enough that she can wear straight