A MARKETING REPORT
ON LULULEMON
Adeen Momin 300213840
Jasmine Kaur 300218104
Armaan Dhillon
Himmat Sangha
Sukhman Gill
110
Contents
Introduction ........................................................................................................................... 2
SWOT Analysis ..................................................................................................................... 4
Strengths ........................................................................................................................... 4
Weaknesses ...................................................................................................................... 4
Implications on Internal analysis .................................................................................... 4
Opportunities ..................................................................................................................... 5
Threats .............................................................................................................................. 5
Implications of External Factors ..................................................................................... 5
Articles .................................................................................................................................. 6
Article 1 ............................................................................................................................. 6
Article 2 ............................................................................................................................. 7
Article 3 ............................................................................................................................. 8
TARGET MARKET ................................................................................................................ 9
PSYCHOGRAPHICS......................................................................................................... 9
DEMOGRAPHICS ............................................................................................................. 9
GEOGRAPHY ................................................................................................................... 9
BEHAVIOR ........................................................................................................................ 9
PRODUCT TYPE ................................................................................................................ 10
PRODUCT AND PLACE IN THE PRODUCT LIFE CYCLE .............................................. 10
Channels of Distribution ...................................................................................................... 11
Communication With Target Market .................................................................................... 13
Socially Responsible Behaviour .......................................................................................... 16
Marketing Recommendations.............................................................................................. 18
Section A ......................................................................................................................... 18
Section B ......................................................................................................................... 20
Section C......................................................................................................................... 21
REFERENCES ................................................................................................................... 23
Appendix ............................................................................................................................. 25
Page 1 of 25
Introduction
Lululemon Athletica is a Canadian athletic apparel retailer known for its yoga/athletic-focused
clothing and gear. Founded in 1998 by Chip Wilson in Vancouver, British Columbia, the
company has grown into a global brand with a focus on technical athletic apparel for yoga,
running, training, and other activities. Lululemon's marketing emphasizes the relaxed lifestyle
of the West Coast, focusing on being healthy, mindful, and building a community. This brand
has become famous worldwide, changing how we think about sportswear.
Over the years, Lululemon has expanded its offerings to include men’s and women’s clothing
for various athletic activities. They offer leggings, tops, shorts, jackets, and accessories such as
yoga mats, water bottles, and bags. Lululemon is also committed to sustainability,
incorporating recycled materials into its products, and setting ambitious goals to reduce its
environmental impact, such as striving for 100% renewable energy in its operations. It started
with a goal to make great yoga/active clothes that look good and work well, and they succeeded.
Lululemon has become the top choice for high-quality workout clothing.
From opening their first-ever small store in Vancouver in 2000 to becoming a global company,
Lululemon's success has come from being innovative and growing smartly. They've stayed true
to their roots, keeping a strong focus on quality, new ideas, and community involvement.
Lululemon focuses on being innovative, such as introducing new fabrics and versatile, multiuse products, which helps it maintain its competitive edge and attract a broad customer base.
Going public in 2007 was a significant step forward for them.
Lululemon's growth over the years is impressive. They have over 710 stores worldwide, with
19 of them in British Columbia. Financially, they're doing great as well, making billions in
sales every year because people love their clothes and they're good at advertising. Lululemon’s
strong community engagement through in-store events, free yoga classes, and partnerships with
other fitness companies fosters a loyal customer base. Their sales have consistently shown
strong growth, with revenue reaching $9.6 billion in 2024, demonstrating the brand's popularity
and market success.
For me, Lululemon isn't just a brand; it's a lifestyle. As someone who enjoys working out and
staying active, their clothes are essential. They care about making quality products that help
you perform better during workouts, which aligns with my values and motivates me to do my
best. They also have a great return policy, which makes shopping with them even better and
easier.
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In conclusion, Lululemon Athletica's journey from a small start to worldwide fame shows what
happens when you mix innovation, community focus, and staying true to yourself. They've
changed the game for sportswear, and as they continue to grow, they're inspiring fitness
enthusiasts everywhere.
Page 3 of 25
SWOT Analysis
Strengths
1) Omni Channel model: The company’s omni channel model enables it to serve their
customers efficiently and effectively. Lululemon continues to integrate its online
channels to create more interactions with its customers and provide and enhanced omni
channel experience.
2) Strong brand value: Lululemon is widely known for the high-quality, innovative and
stylish athletic apparel. It is a premium brand in the athletic apparel market.
3) Diverse product range: Lululemon is regarded as one of the leading designer and
distributor of athletic apparel. It has various designs for men and women ranging from
jackets to yoga pants with different designs which gives customer a lot of choices.
4) Strong product development: Lululemon is known for its product development and
innovation. Their focus on and development has led to the unique fabrics such as Luon
and Nulu.
Weaknesses
1) High product pricing: Lululemon's products are usually priced higher than its
competitors, it caters to high end market segments. The high prices attract the middleand high-income customers and not the low-income customers.
2) Over dependence on North American market: Majority of lululemon's revenue generate
from the North American market. depending on a single market makes it vulnerable to
any economic changes and fluctuation in the market.
3) Reliance on Vendors: Lulelemon currently works with 45 vendors to who produces its
products and over 60 suppliers to who provides the fabric for its products. Any delays
or cost in supply of fabric or manufacture can have a notable effect on meeting the
customer’s demand.
4) Supply chain risks: Lululemon’s reliance on overseas manufacturing exposes its risks
such as geopolitical tensions, trade disputes and disruptions in the supply chain.
Implications on Internal analysis
Lululemon’s internal analysis highlights strengths such as omni channel model, a strong brand
value, a diverse product range and a great amount of focus on product development. However,
it faces challenges including high product pricing, dependence on north American market,
reliance on vendors and supply chain risks. To eradicate these weaknesses and leverage their
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strengths, they should focus on diversifying their market presence globally, optimize
relationships with vendors for reliability, to increase their supply chain resilience and to neglect
trade related risks.
Opportunities
Lululemon has several promising opportunities to enhance its market presence and drive
growth. One significant opportunity is the expansion into new international markets,
particularly in Europe and Asia, where there is a growing middle class and increasing
disposable incomes (McKinsey & Company, 2020). Additionally, the men's activewear
segment remains underdeveloped but exhibits strong growth potential, providing a profitable
area for Lululemon to explore. The global trend towards health and wellness further creates a
favourable environment for Lululemon’s product offerings, as more consumers seek active and
healthy lifestyles. Furthermore, by leveraging e-commerce and digital sales channels,
Lululemon can broaden its customer reach and engagement, benefiting from the ongoing shift
towards online shopping (Statista, 2023).
Threats
Despite the opportunities, lululemon faces substantial threats that could impact its performance.
The activewear market is highly competitive, with major brands like Nike and Adidas posing
significant challenges that could weaken Lululemon's market share. Supply chain disruptions
and rising raw material costs are also critical threats, potentially affecting the company's
operational efficiency and profit margins (IBISWorld, 2022). Economic downturns represent
another risk, as they can lead to reduced consumer spending, particularly on premium-priced
products like those offered by Lululemon. Additionally, the company could face backlash over
its high prices and ethical concerns related to its manufacturing practices, which could harm its
reputation and customer loyalty (Deloitte, 2021).
Implications of External Factors
Given these external factors, Lululemon should prioritize expanding into new geographical
markets and strengthening its digital sales channels to capitalize on the growing health and
wellness trend. However, the company must also enhance its supply chain resilience and
address pricing strategies to alleviate competitive and economic threats.
Page 5 of 25
Articles
Article 1
June 5,2024
Tara Deschamps
The Canadian Press
In this article, Lululemon Athletica Inc.'s CEO, Calvin McDonald, reflects on the company's
first-quarter performance, highlighting a slower start despite increased profits and revenues.
The company faced challenges such as consumer hesitancy due to inflation and interest rate
hikes, as well as inventory issues in its women's and bag categories, particularly with limited
colour palettes and stockouts in smaller sizes. Despite these hurdles, McDonald remains
optimistic about addressing these issues in the second half of the year through innovation and
addressing consumer demands, notably for smaller sizes and a wider colour selection.
However, Lululemon faces intensified competition from brands like Alo and Vuori, prompting
analysts to recommend a focus on expanding into newer sporting categories like golf to
counteract potential market saturation and maintain growth. While international revenue
surged, the modest growth in the Americas suggests possible market maturity and increased
competition, urging Lululemon to strategize further to sustain its momentum.
Page 6 of 25
Article 2
October 16,2023
Chibuike Oguh
Reuters
This article reports on Lululemon Athletica's significant stock surge, rising over 10% to nearly
a two-year high following its inclusion in the S&P 500 index, effective mid-October. The
announcement prompted a surge in demand from institutional investors and mutual fund
managers who track the index, driving the stock price to reach $416.01, its highest since
December 2021. This surge reflects investor confidence in Lululemon's growth prospects and
market value, particularly buoyed by recent strategic agreements, such as its deal with Peloton
Interactive to become its primary athletic-apparel maker. Despite a historically lower price-toearnings ratio compared to its five-year average, analysts remain bullish on Lululemon's stock,
with a median price target of $450 and a "buy" recommendation. This development underscores
Lululemon's growing stature in the market and its continued momentum in the athletic apparel
industry.
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Article 3
November 9,2022
Cara Salpini
Retail Dive
This article explores Lululemon's pivotal role in popularizing athleisure, a category of clothing
that seamlessly blends athletic wear with casual, everyday apparel. It highlights how
Lululemon's influence has transcended the athletics space, revolutionizing the broader apparel
industry. With references to SEC filings indicating the widespread adoption and recognition of
the term "athleisure" among retailers, the article suggests that Lululemon played a significant
role in shaping this trend. It also discusses the evolution of athleisure from a niche segment to
a mainstream fashion phenomenon, citing examples from industry experts such as Matt Powell
and Shawn Grain Carter. Overall, the article underscores Lululemon's transformative impact
on the apparel landscape, positioning it as a trailblazer in defining and popularizing athleisure
as a cultural and fashion staple.
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TARGET MARKET
Lululemon’s target market can be measured based on various customer demographics
such as psychographics, demographics, geography, and behaviour.
PSYCHOGRAPHICS
Based on their psychographics, Lululemon’s customers are mainly yoga and fitness
loving individuals. The target is primarily sport loving individuals who strive to maintain a
healthy life amid a busy work life. They are passionate about traveling, leisure, fitness, and
work life balance at large (Zacks Equity Research, 2024). The goal is to supply them with state
of the art yoga sports and fitness attire.
DEMOGRAPHICS
Lululemon’s customers are primarily young people in their teens to thirties. The
business targets the young because they are active in sports and its products are sport oriented.
For gender, Lululemon seeks to be a “dual gender brand” serving both men and women. Even
then, women still make a great part of the company sales amounting to $4.2 billion (67.74%)
sales compared to men’s $1.5 billion (24.19%) sales. The rest $0.55 billion (8%) came from
“other gender” (Zacks Equity Research, 2024). Despite women being such a huge market, the
company continues to focus on men to bring a gender balance with the segment making 30%
Compound Annual Growth (CAGR) in 2021 compared to women’s only 15% CAGR.
Demographics can also be measured based on income where Lululemon targets a high-end
market with customers being comfortable and willing to pay high prices for the company’s
products (Zacks Equity Research, 2024).
GEOGRAPHY
For geography, North America (the United States and Canada) by far remains the largest
market but Lululemon still has a focus on the market in other parts of the World. In regard,
Lululemon has the largest market in the United States making 70% of sales in 2021, Canada
15%, and 15% from the rest of the world combined (Manuel, 2022).
BEHAVIOR
Lululemon customers are technologically proficient individuals preferring both online ordering
as well as the physical shopping experience. The company estimates a 50-50 split between
physical store shopping and online shopping. These customers take physical fitness and mental
wellbeing as their identity (Zacks Equity Research, 2024).
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PRODUCT TYPE
Lululemon seeks to offer a tangible product to its customers. The company specializes
in yoga and sports attire. Its major product lines include fitness pants, shorts, tops, and jackets
all meant for yoga. Lululemon also sells a range of fitness related products that include bags,
socks, and yoga mats. The products are categorized as consumer flexible. This means that,
more of the products will be demanded in high quantities when the target consumer income is
high and the economy is growing. To ensure competitiveness and meet customer specific
needs, Lululemon closely engages its customers to gain insights and relay feedback. The
product offering is seasonal ensuring that the product suits the season of the year and consumer
needs. It is also intended to correct fluctuations in demand based on the weather and seasonal
conditions while still ensuring constant yoga and sports based theme. With the product being
predominantly attire, the company pays close attention to trends and emerging issues in the
fashion industry (Soni, 2014). The company can as such be said to be innovative and dynamic
in as far as its products are concerned. It attributes its success to new, beautiful, and greatly
technical products courtesy of engagement with the market.
PRODUCT AND PLACE IN THE PRODUCT LIFE CYCLE
A product that Lululemon offers is the Align pant which falls in the legging’s product
category amongst many others the company sells. This product is among the highest demanded
products for Lululeom as of 2023. The pants were launched in 2015 in line with Lululemon’s
innovative strategy (Lululemon, 2024). We seek to understand Lululemon’s Align pants based
on the product life cycle (PLC).
PLC contains five stages namely: Development, introduction, growth, maturity, and
decline. At development, a new product is designed and stakeholders are shown the designs
and unique features. Marketing proceeds to create awareness by creating content and inbound
logistics. The product begins to pick in the market. The product then enters market growth
where customers embrace the product and demand increases. At the time, a seller can increase
product prices or discriminate without hurting demand significantly and make huge profits.
Eventually, the product enters the maturity stage, and sales level off. A marketer may need to
lower prices and differentiate their product to stay competitive at this stage. The final stage is
the decline stage where a product is fast becoming outdated or has fallen out of favor with
customers. A manufacturer will need to call off a product at the stage and deploy a wholly new
one that suits the market (Udokporo, 2021).
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Channels of Distribution
To make sure that their high-quality products reach the customers, Lululemon Athletica, which
is a well-known brand in sportswear, has come up with an elaborate supply chain. From
production to sales, this supply chain supports all processes involved in getting the final product
into the hands of the consumers. The next part of this report will look at how Lululemon uses
distribution channels such as sourcing, manufacturing, warehousing and logistics. Most of its
raw materials are sourced from different suppliers worldwide mainly involving highperformance fabrics that can meet their right quality standards. Key materials include:
Silver scent: A fabric infused with silver fibres to stop bacterial growth and reduce Odor.
Nulu, and Everlux: Other proprietary fabrics designed for specific performance.
Luon: A fabric made from a blend of nylon and Lycra, providing stretch and moisture
properties.
The raw materials come from specialized textile manufacturers in countries such as Taiwan,
South Korea, and China where the technology to manufacture these sophisticated textiles
exists.
Manufacturing: Once sourced, the raw materials are transported to various manufacturing
plants. Its production is outsourced by Lululemon to contract manufacturers mainly situated in
Asia namely Vietnam, Cambodia and Bangladesh. These facilities are chosen based on their
ability to adhere with Lululemon’s quality standards and ethical practices of production.
Ownership and Timing: Lululemon does maintain strict control over its supply chain process
that guarantees quality and timely delivery of products to customers. This involves intensive
monitoring of manufacturing timetables, frequent quality assurance tests as well as compliance
with labour standards. The timing here is crucial as Lululemon operates on a seasonal product
release cycle implying that market demand requires precise coordination.
Warehousing and Transportation: After manufacturing takes place, the products are shipped to
Lululemon’s distribution centers. The company has various distribution centres across the
globe like in North America Vancouver, Toronto, Columbus (key) and Europe Netherlands. In
this respect, these locations ensure efficiency in the transportation process while minimizing
time taken for delivery.
Warehousing: The distribution centres work as the central hubs of inventory control. This is
done with the help of advanced storage techniques such as automated sorting systems and realPage 11 of 25
time inventory tracking to enhance precision and speed. They store goods until they are
prepared for transportation to retail outlets or directly to clients.
Transportation: Lululemon uses a combination of transportation modes to get products from
manufacturing facilities to distribution centres and ultimately, retail stores or customers. These
include Ocean Freight for bulk transportation from Asia to North America and Europe, Air
Freight is used in case of urgent shipments especially for restocking inventory or meeting high
demands during peak seasons, and Truck and Rail which are used in land transportation from
ports to distribution centres and between regional distribution hubs.
Lululemon reaches its customers through several sales channels with:
Retail Stores: Physical stores located in major urban centres as well as busy shopping areas.
These outlets provide an opportunity for consumers who want to see the items firsthand besides
getting personal assistance.
Wholesale Partnerships: This entails limited affiliations with few chosen partners like luxury
departmental stores to make them more accessible.
E-Commerce: The company’s online store has a complete range of products available at the
convenience of being shipped directly home. The e-commerce platform is linked with the
distribution centres so that it can speed up order fulfilment.
Showrooms & Pop-Up Shops: Temporary spaces where brands can increase their visibility or
check out new locations with less commitment over time.
Lululemon’s distribution strategy is its way of showing that it values quality, efficiency, and
customer satisfaction. Lululemon ensures that it meets high standards for its products and
delivers them to customers on time by taking care of each stage beginning with the procurement
of raw material to the last mile. Therefore, a well-established supply chain supported by
advanced logistics as well as strategic alliances is important for upholding the brand’s place in
the market as well as achieving growth within this sports apparel industry which has become
competitive over time.
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Communication With Target Market
Demographics
Lululemon has a smart way of connecting with its target audience in British Columbia's Lower
Mainland, a region known for its active and health-conscious residents. Lululemon's target
market has broadened significantly over recent years. Originally focused on women aged 2545, the brand now draws a nearly equal mix of men (48%) and women (52%) as of 2023 (Retail
Dive). The age range has also expanded to include younger individuals aged 18-35, driven by
the rising popularity of athleisure and a growing emphasis on fitness among millennials and
Gen Z.
Website and Style Changes
Lululemon has also revamped and improved its website and product styles to attract younger
customers. The website is sleek, easy to navigate, and emphasizes digital interaction. Models
on the site come from diverse backgrounds, showcasing a variety of styles and body types,
including those with tattoos and piercings, reflecting the inclusive values important to both
younger and older customers.
Prices and Economic Status
As a premium brand in the activewear market, Lululemon targets middle to upper-middle-class
individuals willing to pay more for high-quality, durable clothing. With leggings priced around
$98 and sports bras/T-shirts about $58 (Lululemon, 2023), the brand appeals to customers who
prioritize health, wellness, and performance.
Geographic Focus
Lululemon targets urban areas in North America, Europe, and Asia, such as New York, Los
Angeles, London, and Shanghai. These cities are home to many fitness-minded customers with
substantial disposable income, aligning with the brand’s focus on active lifestyles and fashionforward customers. Lululemon customers typically lead active, health-focused lives, seeking
clothing that is both functional and fashionable. They view their purchases as investments in a
lifestyle that promotes physical well-being and community. Lululemon supports this with local
events, yoga classes, and running clubs, fostering a sense of community and belonging. The
brand uses social media influencers and ambassadors who embody the active, aspirational
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lifestyle their audience desires, a strategy particularly effective with younger customers on
platforms like Instagram and TikTok (Business Insider, 2023).
Inclusivity and Diversity
Lululemon emphasizes inclusivity and diversity in its branding. It offers a wide range of sizes
and ensures marketing materials feature diverse body types, ethnicities, and gender identities.
This approach resonates with socially conscious customers who prefer brands reflecting their
values.
Loyalty and Community Engagement
Lululemon promotes customer loyalty and community engagement through initiatives like the
Lululemon Collective and Lululemon Like New. These programs offer exclusive events, early
product access, and discounts, encouraging repeat purchases and fostering a personal
connection to the brand.
Engagement Strategies in the Lower Mainland
In British Columbia's Lower Mainland, Lululemon focuses heavily on community involvement
through local events and partnerships, often hosting yoga classes, running clubs, and wellness
workshops in collaboration with local fitness studios and instructors. These events not only
promote a healthy lifestyle but also create a direct bond with their customers, boosting brand
loyalty and making Lululemon a key part of the community's fitness culture. Lululemon also
maintains a strong digital and social media presence on platforms like Facebook, Instagram,
and YouTube, sharing content that aligns with their customers' interests and values. From
workout tips and mindfulness practices to product launches and customer stories, their social
media strategy is designed to engage and inspire. They use Facebook to inform customers about
new products, events, sales, and community stories. They engage with people in the comments
and messages to make them feel included and foster conversation. On Instagram, they share
their newest releases, upcoming special deals, workout tips, and ideas for a healthy lifestyle.
They team up with famous athletes such as DK Metcalf, Hunter Woodhall, and Connor Bedard
to make their posts more relatable and to attract more attention to their brand. Twitter is where
they share quick news and interact directly with customers, helping them with questions and
feedback promptly. They make videos on YouTube showing workouts, new clothes, and
behind-the-scenes content. They send emails to customers with special offers and news based
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on their interests. Their website functions as an extensive online store where customers can
shop, find out about events, and learn more about the brand.
Product Attraction
Lululemon attracts customers with their clothing by using high-quality materials, designs, and
stylish aesthetics tailored to different seasons. For summer, they offer lightweight, sweat-proof
apparel in bright colors and trendy patterns, while their winter collections feature insulated,
thermal wear with water-resistant and windproof fabrics. Their versatile designs are great for
both athletic and casual wearers, enhancing their products' attractiveness.
Conclusion
In conclusion, Lululemon’s promotional strategies in the Lower Mainland are rooted in
community engagement, influencer marketing, and a strong digital presence. By hosting local
events, collaborating with fitness influencers, and leveraging social media platforms,
Lululemon effectively communicates with their target market. These strategies not only
promote their products but also strengthen their brand identity as a leader in the athletic apparel
industry, successfully connecting with and inspiring their audience while fostering a loyal and
active community.
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Socially Responsible Behaviour
The firm has witnessed a significant transformation in its business model with respect to
integration of social responsibility as Lululemon Athletica, a key factor in the sportswear
industry. The company’s approach exhibits a commitment to sustainability, ethical
manufacturing, community engagement, and employee well-being. Thus, this review sheds
light on the socially responsible behaviour of Lululemon.
Sustainability Initiatives: Lululemon focuses on reducing its ecological footprint through
various sustainability efforts:
Sustainable Sourcing: Lululemon has adopted the use of materials which are sustainable, for
example recycled polyester and organic cotton. The company is also looking into the possibility
of developing new fabrics such as plant-based fibres and agreed by 2025 to source one hundred
percent of its cotton from sustainable sources.
Reducing Carbon Footprint: Lululemon intends to minimize carbon emissions throughout its
operations. The company has committed itself to a science-based target seeking to reduce
carbon emissions by sixty percent by 2030. This means optimizing energy usage in stores and
distribution centres, increasing renewable energy application, and reducing transportation.
Circular Economy: To address textile waste, Lululemon came up with initiatives such as “Like
New” resale program where customers could trade in their gently used Lululemon products for
store credits. This program supports product reuse while also reducing amounts of clothes that
go into dumping sites.
Ethical Manufacturing: Due to Lululemon's ethical manufacturing procedures, fair working
conditions and high labour standards are maintained:
Vendor Code of Ethics: To maintain its high labor standards, Lululemon has put in place a
vendor code of ethics to show requirements concerning workers’ rights, wages fairness and
safe working conditions. Thus, through several audits conducted regularly on its suppliers, it
makes sure that these expectations are met.
Fair Labor Association: Lululemon is one of the members of Fair Labor Association (FLA)
which helps it in monitoring and improving labour practices within its supply chain.
Membership to such an organization thus indicates Lululemon’s compliance with international
labor standards.
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Supplier Training Programs: The company offers training programs for its suppliers to improve
their practices related to health and safety, worker rights, and environmental management. The
aim of these programmes is to entrench sustainable long-term relationships with suppliers.
Community Engagement: Lululemon is involved in the community in a variety of initiatives:
Here to Be Program: This global initiative operates on a community level to support non-profits
focused on using yoga and mindfulness to promote positive social change. Through offering
grants, donations, and volunteers to local organizations this program supports mental and
physical well-being within communities.
Ambassador Program: Lululemon works with its Ambassador Program for local athletes,
trainers and community leaders. These ambassadors are reflective of health and wellness which
is a major focus by the company as they endorse healthy living while encouraging involvement
with communities.
Employee Well-being: Lululemon is investing in its employee’s well-being through some
important policies:
Employee Development: Among them are development programs which are extensive and
include leadership training programs as well as career growth opportunities. This emphasis on
personal and professional development contributes to a positive and driven staff.
Workplace Wellness: Lululemon offers its workforce various wellness perks including fitness
reimbursements, mental health resources, and flex hours. These benefits promote employee’s
wellbeing thus encouraging a good work-life balance.
The commitment of Lululemon Athletica to social responsibility is evident through its efforts
to promote sustainability, ethical manufacturing, community outreach and employee
wellbeing. The company’s use of sustainable materials, carbon reduction targets and circular
economy programs underscore its commitment to environmental stewardship. Commendable
labor practices that are directed towards suppliers and training programs in the community like
“Here to Be” as well as Ambassador Program enhance social well-being. In addition, through
investment in employee development and wellness schemes, Lululemon demonstrates a
approach to corporate responsibility. These initiatives have positioned Lululemon as a leader
among sportswear industry enterprises practicing responsible business concerning society.
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Marketing Recommendations
Section A
This marketing plan outlines specific initiatives that lululemon should focus on the next 2 years
including expansion of market presence, leveraging digital channels and addressing operational
weaknesses.
Increase Market Share in International Markets
Lululemon should expand market share in Europe and Asia by 5% within the next 2 years. With
a growing middle-class engagement and increasing disposable incomes in these regions,
Lululemon has the potential to attract new customers. The following strategies could be applied
to gain popularity among the masses.
• Market Entry and Expansion: Lululemon should aim to open 50 new stores across major
European and Asian cities.
• Localized Marketing Campaigns: It can invest $100 million in localized marketing campaigns
tailored to regional preferences and cultural nuances.
Boost E-commerce Sales
Lululemon should aim to increase e-commerce sales by 30% annually over the next 2 years.
Leveraging the ongoing shift towards online shopping can help Lululemon reach a broader
audience other than following the below strategies.
• Website Optimization: Enhancing the user experience on Lululemon’s website and mobile
app by integrating more personalized shopping experiences and AI-driven recommendations
can boost e-commerce sales.
• Digital Marketing: Allocating $150 million towards digital advertising, including social
media, SEO, and PPC campaigns to drive online traffic could be quite beneficial.
Expand Men’s Activewear Segment
Lululemon should plan to increase men’s activewear segment revenue by 50% over the next 2
years. Although the men’s activewear market is underdeveloped, it shows a strong potential of
growth if the following strategies are applied.
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• Product Line Expansion: Lululemon can introduce new products specifically designed for
men, such as sports-specific apparel and accessories.
• Targeted Marketing: It can also invest $80 million in marketing campaigns targeting male
consumers, highlighting the functionality and style of Lululemon’s men’s line.
By focusing on these specific objectives and implementing targeted strategies, Lululemon can
strengthen its market position, drive growth, and mitigate potential risks. This comprehensive
marketing plan leverages Lululemon’s strengths, addresses its weaknesses, and capitalizes on
available opportunities while countering external threats.
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Section B
MARKET PENETRATION: Enhance Lululemon's digital presence by implementing AI driven
personalized shopping experiences and AR virtual try Ons to improve customer interaction and
satisfaction. Increase social media engagement by collaborating with fitness influencers and
encouraging user generated content to enhance reach and authenticity. Strengthen local
community ties by hosting fitness events, workshops, and wellness programs. Create loyalty
programs that offer exclusive discounts with pre orders on new products, creating closer
relationships with the customer base and repeat traffic (Goeyardi et al., 2022). This way, market
penetration will be solid and assure Lululemon's position in the market as a leading brand in
activewear.
MARKET DEVELOPMENT: Expand operation across Europe and Asia by doing complete
research on the market to understand consumer behaviours and preferences in each local area.
The main agendas will have to make the marketing strategies as per the regional variation while
building up the company's localized approach. New stores or pop up shops can open to test the
market's response and to get a starting point. This localized strategy will guide Lululemon to
properly penetrate new markets, attract diverse customer bases, and help reduce dependency
on the North American market.
PRODUCT DEVELOPMENT: The product line should be more diversified with more
inclusive sizing and further integrate the men's activewear segment. Regarding the advertising
message, sustainability is needed through new eco friendly products (Kruachottikul et al.,
2023). Partner with designers or celebrities for limited collections to give new customers
reasons to shop and create a buzz that can attract in more customers.
DIVERSIFICATION: Introduce new categories of products in line with the current health and
wellness trend, such as wellness or fitness products and accessories. Research potential
partnerships with tech firms to design future proof fitness products (Horvat et al., 2019).
JUSTIFICATION: Lululemon's substantial brand value provides a solid foundation for these
strategies. Going global and broadening the product line will reduce risks originating from the
North American market and overpricing their products. A strengthened digital engagement and
community involvement will drive customer loyalty and greater market penetration while
focusing on sustainability and inclusivity.
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Section C
For developing an effective strategy for lululemon in pricing, promotion, product and
distribution in regarding the SWOT analysis done by our group it is also essential to consider
the current situation.
Pricing Strategy
1. Tiered Pricing Models: Lululemon should create a tiered pricing system to cater
different market segments. While maintaining the premium segment and consider a
slightly lower-priced line to attract middle-income customers.
2. Value Based Promotions: Offering limited and timely promotions to loyal customers
during special occasions. This will help remaining the high-end customers while
attracting new ones.
3. Subscription models: Implementing subscription model for essential items like leggings
and sports bras. This can create a good revenue stream and provide better value for
regular customers.
Promotion Strategy
1. Localized Marketing Campaigns: Developing targeted marketing campaigns for new
international markets, highlighting lululemon’s commitment to quality through local
culture relevance.
2. Digital Engagement: Enhance digital marketing campaigns with personalized
advertising, social media engagement and influencer partnerships to expand the and
reach the new customers.
3. Sustainability Campaigns: Promoting lululemon’s sustainability initiatives through
social media and emphasizing eco-friendly practices which can strengthen brand
reputation and appeal to environmentally conscious customers.
Product Strategy
1. Men’s Activewear Expansion: Through targeted marketing strategies, maximize the
basic men's division by launching various products designed primarily for men.
2. Innovative Product Lines: Expand on the features of Lululemon’s products, for example
comfort, sustainability, and performance. Also, expand on the unique designs and types
of fabrics
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3. Customization Options: Introduce product customization, providing customers to
create their unique activewear, which can increase engagement and brand loyalty in the
long run
Distribution Strategy
1. International Expansion: Expand the business into international markets, mainly
Europe and Asia. Create marketing strategies and product offerings according to the
world-wide market.
2. Enhanced E-Commerce Platform: Expand the business through an e-commerce
platform to offer features like virtual try-ons, detailed product videos, and AI-powered
recommendations.
3. Strategic Partnerships: Develop strong partnerships with high-end department stores
and online retailers to increase brand visibility and accessibility.
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Appendix
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