Lululemon Final Consumer Analysis Paper
FYS Changing Consumer Culture
By Haley Preschutti and Sasha Tory
We pledge that we have neither given nor received unauthorized assistance during
the completion of this work.
Preschutti and Tory 2
Table of Contents
1. Introduction and Purpose of the Study
2.
Literature Review
3.
Data Collection Method Description
-
Qualitative Data
-
Quantitative Data
4. Data Analysis
5. Finding and conclusions
6. Appendices
-
Interview Questions
-
Interview Recordings
-
In-store Observations
-
Data Collection Template
-
Approved Narrative
-
Link to the Digital Story (DST)
7. Works Cited
Preschutti and Tory 3
1. Introduction and purpose of the study
The objective of this research is to examine how the placement of a product in a certain
location in a Lululemon retail store, along with Lululemon’s store environment, influences a
consumer’s purchasing behavior. Researchers went to Lululemon, a chain merchandiser that sells
high-end athletic and yoga wear. Lululemon is a world-renowned athletic apparel store; however,
it appeals to more than the typical athlete. Researchers acknowledge that Lululemon not only
sells leisurewear and athletic wear to its customers, but also sells an entire “lifestyle” to its
consumers. The Lululemon “lifestyle” places significant importance on being active, healthy,
and positive. Research was conducted inside and outside of the Lululemon store itself. With the
findings of this study, researchers hope to provide Lululemon with information that can assist the
company in improving its retail environment and to adjust to consumer behavior to maximize
profits.
2. Literature Review
Lululemon has grown exponentially over the past decade; the company has left all of its
competitors in the athletic apparel market in its dust. Over the past decade Lululemon has created
an extremely devout following. Customers have gone beyond just buying Lululemon’s apparel;
they have also adopted the healthy lifestyle promoted by the company. Lululemon continually
adds to this following by appealing to unique, expanding, and untapped demographics.
Lululemon consciously tailors the environment of its retail locations in order to manipulate the
consumption rate of their consumers towards benefitting the company and boosting sales.
Lululemon Company Overview:
Preschutti and Tory 4
Lululemon has shifted from being a small local retail business into a multi-national
corporate powerhouse (Moran, 2006). Company Capsule published a fully developed company
profile of Lululemon; revealing that Lululemon had a revenue growth rate of 40.63% in 2012
(2013). Company Capsule’s findings revealed that Lululemon’s revenue peaked at $1001 million
dollars in 2012 (2013). Company Capsule came to the conclusion that Lululemon is
operationally efficient; this conclusion is a reflection of the Lululemon’s outstanding increase in
revenue (2013). This increase can be attributed to Lululemon’s widespread popularity and
consumer loyalty. In order for Lululemon to continue to expand in the future, the company
should regard the positive economic trends as a solid foundation to build off of in the future, yet
should not become too comfortable with their current high standing in the athletic apparel
industry. Lululemon should continue to meet consumers’ basic needs, but it must also focus on
adapting to its consumers’ behavior, and aspire toward expanding into new untapped
demographics. Lululemon’s current target customer is a health conscious, environmentally
friendly, and fashionable person (Lululemon Athletica Inc 2014; Stokes 2008). Lululemon
appeals to these consumers for a plethora of reasons; unlike most other athletic apparel
companies, Lululemon does not use sweatshops to manufacture its products. Similarly, most of
its manufacturing is still done in Canada, the place of its birth. Lululemon’s approach to ethical
business practices appeal a unique but loyal type of consumer. Although Lululemon products are
typically more expensive than those of other brands, Lululemon consumers are willing to pay the
premium because they know that they are getting quality products, from a trustworthy and
upstanding company (Gray, 2008).
Athletic Apparel Industry Competition:
Preschutti and Tory 5
Although Lululemon did not have the first mover advantage in the athletic apparel industry,
Lululemon did not struggle to surpass well-established competitors in its industry. Lululemon
capitalized on a sudden influx in health-focused and lifestyle-driven consumers that flooded the
market about a decade ago (Kunde, 2014). Company Capsule lists Lululemon’s main
competitors, among them: Nike, Under Armour, Pac-Sun, and Adidas (2013). Lululemon is very
different from its main competitors in the athletic apparel industry. Instead of being a
conventional athletic wear company, Lululemon appeals to the trends of the fashion industry by
incorporating bold color palettes and cuts into its designs. Lululemon’s retail model hit the
market during a time in which there was a significant trend transition in consumer behavior.
Before the existence of Lululemon, consumers did not seek out or value expensive sportswear,
but this culture changed dramatically upon Lululemon’s creation (Kunde, 2014). Lululemon is
able to charge high prices for its products because the products are high quality, fashionable, and
functional; these three qualities are unlikely to be found in sportswear brands elsewhere (Kunde,
2014).
Product Placement:
The success of a company is partly reliant on the store environment in its retail locations.
Turley and Millman (2000) acknowledge that the environment a consumer shops in influences
purchasing behavior. The authors categorize atmospheric variables of a store into five different
sectors: external variables, general interior variables, layout and design variables, point-ofpurchase and decoration variables, and human variables. Lululemon utilizes each of these
variables in order to maximize its sales. Doyle and Gidengil noted that shelf space and location
of sale items directly influence the amount of revenue a store earns (1977). Findings suggest that
the effects of prominent displays can significantly benefit sales (Curhan, 1974; Chevalier, 1975;
Preschutti and Tory 6
Wilkinson, Mason, and Paksoy, 1982; Gagnon and Osterhaus, 1985). Solomon revealed that the
success of a company is dependent upon the quality of a store’s employees. The employees are
important vehicles of communication; they convey the firm’s mission to the consumer (1985).
Baker, Levy, and Grewal researched the effects of employee friendliness towards the buyer and
found that more amicable interactions between the employee and customer lead to higher sales
(1992). Gulas and Schewe (1994) and Areni and Kim (1993) concluded that music can play a
pivotal role in shaping the shoppers’ interest. If consumers felt that the music in the store was not
age appropriate (according to personal preference) they were more likely to leave the store.
Subsequently, music is not the only environmental factor that determines the amount of time a
person spends in a store; other factors such as color and lighting play a role in the buyer’s
shopping experience (Bellizzi and Hite, 1992). Yin Lam (2001) asserts that the environment of a
store can influence different stages of a shopper’s cognitive process when purchasing a product.
A store environment can govern a customer's attention, perception, categorization, and
information processing while he or she is in a store. With the correct environment, consumers
will have a more productive shopping experience and will be more likely to visit the store again
(Donovan, Rossiter, Marcoolyn, and Nesdale, 1994). A productive consumer could ultimately be
a major asset to the company’s success (Crowley, 1993). Yoo, Park, and MacInnis’s research
exposed the importance of providing strong post-sale services to consumers. This ensures
customer loyalty, relieves any anxiety customers might have about their purchases, and conveys
a sense of confidence a company has in its products (1998). In highly competitive markets,
customer loyalty is a deal breaker in the success or failure of a company. This customer-for-life
loyalty is crucial in that it establishes Lululemon as an enduring brand.
Lululemon Store Environment:
Preschutti and Tory 7
Lululemon is highly cognizant of the importance of facilitating an appealing store
environment to promote consumption. Lululemon employees are trained to watch and listen
attentively to consumers during their shopping experiences (Susman, 2013). Lululemon retail
stores are an average size of approximately 2,900 square feet. This spatial constraint facilitates
frequent, but natural, employee-consumer interactions (Susman, 2013). Lululemon tweaks
products and store environments in accordance to the complaints or appraisals of customers that
are gathered through employees’ systematic observations (Mattioli, 2012). Lululemon hosts three
different types of retail locations-- regular full retail store, showroom and boutique combo, and
outlet stores-- so researchers decided to conduct in-store observations in a full retail store.
Lululemon’s clothes-folding tables are not merely placed outside the dressing rooms for
convenience; they are strategically placed in a location wherein the employees and the buyers
remain in close quarters. The employees can therefore listen to customers’ comments of
products, give feedback to encourage purchasing, and continually promote the company’s
mission to evolve with the consumer preferences (Mattioli, 2012). In addition to maintaining
constant contact with the customer, employees consciously manipulate the observable stock
displayed throughout a store. This technique boosts purchasing, as visibly limited stock acts as
an illusion to fuel consumers’ needs to have a desired product before it is sold out (Lutz, 2013).
Prior to this study, scholars have investigated Lululemon’s history, the present-day
success of the company, the consumer behavior of Lululemon customers, and Lululemon’s
competitors in the athletic apparel industry. Furthermore, conclusions have been drawn on
various aspects of a store’s environment as a determinant of consumer behavior. These past
findings establish a base for future research; by synthesizing and building upon these
conclusions, current research will investigate the correlation between layout and environment of
Preschutti and Tory 8
Lululemon stores and consumer behavior. The study will provide the Lululemon company with
findings that can be utilized to create and implement the best possible strategy to maximize
profits and prolong the success of this innovative, multinational company.
3. Data collection method description
For qualitative data, researchers chose to interview a focus group of eight University of
Richmond XC athletes, some who were familiar with Lululemon and others who were not. The
interview questions (Appendix A) were open-ended questions, and participants were asked to
elaborate on their responses in a conversational setting. Interviewers recorded all information
that the participants gave and the documentation of the interviews was included (Appendix B).
To collect quantitative data, researchers went to a Lululemon full retail store, located in
the Short Pump Mall in Richmond, VA on the afternoon of November 14, 2014. The researchers
set boundaries that divided the store into three sections: front, middle, and back. Items in each
section of the store were recorded.
Preschutti and Tory 9
The store environment and the product placement tactics were also noted (Appendix C). Every
third person that walked in the store was observed, in an attempt to achieve a random probability
sample, and information about the consumer and the consumer’s behavior were recorded on a
template (Appendix D). In this study, 30 people were observed. Observations included the
number of items picked up from each section of the store, ethnicity, estimated age of the
consumer, the types of items purchased, and the areas of the store in which that the consumer
browsed.
4. Data Analysis
Preschutti and Tory 10
The researchers’ data revealed numerous trends in Lululemon’s consumer culture. More
specifically, the data revealed that Lululemon’s consumers are primarily women that are
Caucasian, young, and athletic. The researcher’s data affirmed their initial hypothesis, that
Lululemon is deficient in terms of their male consumer following. Lululemon males proved a
starkly underrepresented demographic in the Lululemon store at the Short Pump Mall in
Richmond, VA on the afternoon of November 14, 2014. Out of the 30 sample consumers
observed in the Lululemon store only 4 were men.
This data alone may lead some marketing analysts to conclude that Lululemon should
discontinue their efforts to break into the male athletic apparel market, but the rest of the data
collected by the researchers suggests otherwise. Even though male consumers were less
prevalent than female consumers in the Lululemon store at the Short Pump Mall, the male
consumers were more consistent buyers than the female consumers. More specifically, the
researchers’ data showed that Lululemon’s female consumers purchase a wider variety of
Lululemon’s products than male consumers. The researchers made note that the observed female
Preschutti and Tory 11
consumers purchased shirts, pants, undergarments, accessories and more, whereas the observed
male consumers only purchased T-shirts or long-sleeved
T-shirts, regardless of the other products offered. The
male consumers typically purchased items from the
front of the store, whereas women shopped throughout
the entire store. There was a wider spread in the ages of
the female consumers in Lululemon than the men. The
researchers data revealed that the age distribution of male consumers always fell between midtwenties to mid-forties; however, the age distribution in the female consumer demographic
spanned from thirteen all the way up to sixty years and older.
Preschutti and Tory 12
The researchers noticed a clear trend in the physique of Lululemon consumers; most
consumers appear to be “athletic” or at least appeared health conscious and “fit”. This trend was
evident in Lululemon consumers, regardless of their age, gender, ethnicity or attire. This trend
proved to be a very significant finding in the researchers’ data; it supported the researchers’
hypothesis, which laid claim that Lululemon does not only sell athletic apparel, but the company
also sells an entire lifestyle to its consumers. It was evident, from the great proportion of
physically fit consumers in Lululemon at The Short Pump Mall, that the healthy and active
lifestyle--which is promoted by Lululemon’s mission statement--has been internalized by most
of the company’s consumers.
Preschutti and Tory 13
Another interesting trend that surfaced in the researchers’ data collection revealed more
information about the in-store environment manipulation that Lululemon carries out
continuously to boost sales and to get closer to their consumers. The researchers noticed that
Lululemon’s employees consciously and actively targeted every single customer in the store.
Researchers noticed that employees interacted with customers, even if their assistance was not
sought out. The researchers observed that 100% of the potential consumers that walked into the
Lululemon store in the Short Pump Mall had some sort of interaction with an employee. This
trend transcended the variations in consumer demographics, time spent in store, number of items
picked up, number of items that were tried on, and the area in which the consumer browsed for
products.
Lululemon has a unique in-store environment that appeals to the unique consumer that
the company targets. This distinctive in-store environment naturally promotes frequent
employee-consumer interactions, as the average store size is around 2,500 square feet and
employees are strategically located throughout the store in order to facilitate “natural”
interactions. The researchers’ data revealed that Lululemon manipulates its in-store environment
ferociously, yet effectively.
5. Findings and conclusions
Preschutti and Tory 14
There were significant responses revealed in the interviews conducted. During the
conversation, one person described Lululemon as “fashionable athletic” wear and went on to
compare Lululemon to UnderArmour and asserted that the company had a masculine vibe which
was very intimidating and resulted in loyalty to Lululemon. Statements such as these prove
Lululemon is able to effectively distinguish its products from top competitors. With regard to the
company’s store environment, displays, and product placement, interviewees who were familiar
with the company seemed to be influenced by the company’s store environment, displays, and
product placement. One person remarked, “I always go to whatever is on display first. I like how
the pants are displayed hanging up, so you can see them fully.” Another interview subject stated
that she was initially drawn to tank tops because in the store that she frequently goes to, the tank
tops are right up front. These statements are indicative that both of these subjects were
influenced by Lululemon’s product placement and store environment.
The two most popular items that were purchased under observation were sports bras and
tank tops. These items were placed in the middle of the store and not coincidentally; this is where
observed consumers spent the majority of their shopping time. The third most popular item on
the day of observation was Lululemon’s most well known product: pants. Additionally, during
discussion in the focus group, it was found that pants are the most sought-after item at
Lululemon. It can be concluded that Lululemon consumers dedicate most of their in-store
shopping time to areas where the most popular items are placed. Based off of these findings,
researchers would suggest that Lululemon keep the pants in the back of the store, but also place
some of the most popular tank tops and sports bras in the back of the store. With this strategy,
the assumption is that consumers will need to walk through the entire store to reach the items
they desire. During this trip to the back of the store, consumers are forced to walk through the
Preschutti and Tory 15
rest of the store where other merchandise is placed. There is a greater likelihood that they see
items they want to purchase on their way to the back of the store and thus, the likelihood of
additional sales increases.
During the researchers’ store observations, it was noted that employees were dispersed all
throughout the store, and there was continual interactions between the employees and the
customers. The employees were actively involved in the customers’ shopping experience and
asked the customers their opinions on the products. The company, to ensure that they are
tailoring their products to fit the needs of the consumers, directly through the employees, uses
this tactic. Furthermore, as was noted in the Literature Review, Lululemon retail stores
manipulate the observable stock selections. Researchers noticed that there were about one to two
items in each size on the floor. This pushes consumers to make impulse purchases for fear that
they would otherwise miss out on the chance to buy a desired item. Thus, it is clearly evident that
Lululemon effectively utilizes various components of the store’s environment to influence a
shopper’s experience and increase sales.
The conclusions, drawn from the researchers’ data, reveal that Lululemon’s consumers
are primarily women who are Caucasian, young and athletic. Researchers cannot rely solely on
the data collected through their study--due to the fairly limited time restraints, and geographic
restraints that constricted the nature of their observations--to come to their conclusions.
Nonetheless, the researchers paid close attention to the obvious trends that they found. For
example, the researchers saw particularly consistent trends in male consumer behavior, but less
consistency in female consumer behavior. Men typically purchased any item or items that they
picked up, whereas women did not. Also, women purchased items throughout the entire store,
but men shopped only in the front of the store. From these findings the researchers hypothesize
Preschutti and Tory 16
that these, gender specific, consumer trends hold true throughout the entire Lululemon
Corporation.
To conclude, Lululemon utilizes product placement efficiently. The store environment is
extremely conducive for sales. Judging by the type of people that were observed as customers in
this study, it can be concluded that Lululemon does indeed sell a lifestyle in addition to its
physical products. Furthermore, researchers initially hypothesized that the typical Lululemon
consumer was an upper-class, middle-aged, athletic, white woman and this study has proven that
the typical Lululemon consumer is an upper-class, athletic, white, young adult women; however,
based off of the consistent male purchases, males should remain the new focus of Lululemon’s
segmentation. Keeping the conclusions of this study in mind, Lululemon is likely to continue to
experience growth and success.
Preschutti and Tory 17
Appendices
Appendix A (Interview Questions):
1. Do you come to the store with a purpose to buy a particular item or are you typically just
browsing?
2. Are you initially drawn to a certain area of the store? If so, why?
3. What are your favorite items to purchase?
4. What are your favorite things about a store?
5. Why do you choose to buy this brand?
6. Are you typically purchasing for yourself or for others?
7. Are there any other comments you have about this brand?
Appendix B (Interview Recordings):
Focus group interview:
Kylie: high quality upon the entrance… drawn to legging display.. but too expensive
Amanda: headbands good
Kylie: headbands fall off of my head
Shelby: pretty colors headbands
Kylie: COULD do more advertising
Kylie: saw mes sections, didn't consider buying it for anyone
Kylie: i usually see moms, athletic moms
Amanda: agreed
K: yoga people, ask my mom has ten times more lulu than me
Steph: yoga people
Shelby: open displays, and attractive employees
Amanda: i like how they write the name on the doors when your in the dressing room
Shelby and Courtney: quality and soft
Kylie: fashionable athletic, i can buy leggings for ten dollars somewhere else
Kylie: i wouldn't go in and buy a lot of stuff, just one thing
Steph: likes how they don't bunch up
Courtney: I usually buy lululemon for myself, fit everyone differently
Kylie: first purchase head band thing
Shelby: my mom has lulu but i dont
Preschutti and Tory 18
Courtney: i like running in the lululemon leggings, will not run in the sports bras or tank tops..
because the tops are too form fitting. the sports bras don't provide support.
Courtney: i always go to whatever is on display first. i like how the pants are displayed up, so
you can see them fully displayed.
Kylie: price and press are bad factors for the company…. it is off putting.
Alex: i have no idea what lululemon is … i have never heard it.
court: likes the environment, it is not intimidation… i am intimated in other store.. because there
is too much products at once
Kylie: the store is airy, clean and inviting. if you want into under armour, there a definite
masculine vibe. which can be off-putting.
Amanda: they have food and drinks for people to have …sometimes… i don't know if that was a
once off.
Alex: i want comfortable athletic wear, rather than cheap. any place that has dry fit.. compression
shorts or shorts with lining.
Shelby: i prefer nike pros.. i will never go to lulu
Taylor: browse typically
Liz: go for a certain thing bc they only have a small number of long pants and needs small pants
so asks store to set aside or go in to get
Taylor: normal to tank tops bc store you go to tank tops are right up front
Liz: pants bc good quality and they are favorite and long cater to long legs
Taylor: tank tops bc they feel nice, leggings esp the crop ones bc they fit better, headbands esp
winter ones, socks bc they don’t hold as much moisture and airy and light
Liz: pants and sports bras. Pants bc they fit well, sports bras are cute, doesn’t like pants displayed
up top bc can't feel the material
Taylor: workers are really helpful and relatable, workers are fit. Always a runner to help her out
who suggests things for her.
Liz: durable and cute. Nike is cute but put in wash and done, worth price bc lasts a long time,
nike has sweatshops problems
Taylor: clothes fit well, like the look and the designs, exchange policy can send back stuff
Amanda: like the look of the clothes and makes butt look good
Amanda: typically purchase for self
Amanda: go in the store a lot. When I go in I buy something
Liz: goes every new season and buys something every time likes something
Taylor: 4-5 times a year and buy every time go. Sometimes just at short pump and want to stop
in and look around
Taylor: use bags for gifts, like bags, layout open
Amanda: like the doors and how the doors are big. Looks like a barn, love the bags that they put
stuff in… use them again
Liz: wide open doors, bags to put receipt in, use actual bags for lunch bags
Preschutti and Tory 19
Liz: likes athleta better bc longer sizes and sizes for people who are curvier. At lululemon the
sizes are very small,
Appendix C (In-store Observations):
-
Yoga pants in the back corner, high up, different sizes and cubbies
middle area with pants and jackets/ outwear, right before the back sections… middle to
the back
**Color coordinated theme running throughout the store… clothing is grouped together with
non-clashing colors
**That section is towards the middle with tank tops and the sports bras.
** There is a sink that signifies start at the back section of the store… this sink is odd, slightly
out of place, but makes the store feel more homey.
**Front section is all men's. it is large and you can easily see it from outside the store. first thing
you see when you walk in
The middle section is purely tops and then there is a living section with big mirror and sofas, this
is homey and creates a comfortable environment
***Manikins are eye level or above
Sale rack back is in the middle, very distinguished section
Limited sizes are still section but quite substantial
The sales people are wearing white casual clothing brand a lot of them are wearing the brand
themselves Folding table is right outside the change him so that they can analyze customers
reviews
Men's products are visible from the big windows outside
Easter is right at the front in yoga mats and fairly close to the register to this my permit last
minute
Can even see the plants from the front because they're raised
Hip hop/ rap music playing
Preschutti and Tory 20
Appendix D (The Data Collection Template):
Date:_____________
Day of week:_____________
Time of day:______________
Gender: M______F _____
Age:
9-12_____
13-17_____
18-24_____
25-35_____
36-47____
48-60_____
60 and above_____
Ethnicity:
Caucasian______________ Hispanic___________ African American_________
American Indian___________ Asian___________ Other __________________
Socioeconomic status estimate:
Lower class_____________ Middle class____________
Upper-middle class_____________ Upper class_____________
Attire:
Athletic__________ Casual daywear_________ Business attire____________
Other___________ (Explain)________________________________________
Preschutti and Tory 21
Appear athletic: Y______ N_____
Asked employee for help Y____________ N___________
Picked up item from the:
Front of the store_________ Middle of the store_______ Back of the store______________
Number of items purchase from the Front of the store ____________________
Number of items purchased from Middle of the store______________________
Number of items purchased from Back of the store________________________
Types of items purchased:
Top: (Tank Top)______ (T-shirt)_______ (Long Sleeve)______(Jackets & Hoodies)_____
Outerwear: __________
Bottom: (Half Tights) ________ (Shorts) ____________
(Full Pant) ________________
Undergarments: (Sports Bra) ________ (Underwear)__________
Dress_____________
Accessories: (Bags) ____________(Headwear & Scarves) ___________(Socks) ________
(Yoga mat & props) ___________(Water bottle) _________(Run accessories) ___________
Number of items picked up but not purchase from the Front of the store _____________
Number of items picked up but not purchase from the Middle of the store _____________
Number of items picked up but not purchase from the Back of the store _____________
Preschutti and Tory 22
Total time of examination __________
Total Number of items purchased__________
Appendix E (The approved DST narrative):
Sasha: Lululemon. Is it a noun, an adjective, what is it?
Haley: Lululemon can describe a healthy, active lifestyle, or it can be an active wear clothing
brand.
Sasha: But Lululemon is more than just a company that sells athletic clothing. This company
manifested in Vancouver, British Columbia, attached to a yoga studio. The founder, Chip
Wilson, an avid surfer and skateboarder, tried out a yoga class and was immediately drawn in.
Through his experience, he realized that the typical cotton athletic wear was not conducive for
the ideal yoga experience. And thus, Lululemon was created.
Haley: Starting out as both a yoga studio and design space, the company based its clothing
creations from athletic fabrics, working off of the feedback from the yoga instructors who wore
the new brand. The first store was the epicenter of all things active and healthy. People came to
the store to learn and discuss the components of a healthy lifestyle. Sitting in the store, someone
could hear conversations ranging from healthy diet strategies to workout plans, including yoga,
to positive mental attitudes.
Sasha: This store was a success. Popularity increased so much that the store could no longer be
both a place for local community to gather and be a business. The staff became trained experts in
educating and selling, planning on only having one successful store.
Haley: But growing became inevitable and to contribute to the company’s belief in pursuing
challenges, the company knew that expansion was the only possible next step. As stated on the
Preschutti and Tory 23
Lululemon website, “ It was really a matter of grow or die because active minds needed a
challenge” (lululemon.com, 2014).
Sasha: Now, Lululemon is a global brand, a blog, a lifestyle. The company has grown
extensively. In addition to offering clothing for all types of athletic endeavors, Lulu has a blog,
it is dedicated to community engagement, and it offers customers a new, positive way to think
about life. This is obvious in Lululemon’s manifesto.
Haley: The company has established another way to connect with the community, through its
blog. On the Lululemon blog, devout Lululemon followers can post about a variety of topics,
ranging from travel, healthy eating, lifestyle, yoga, and sweat among other topics. It gives people
another way to become a part of the Lululemon network and proves that Lululemon expands
beyond just an athletic apparel brand; it becomes a lifestyle.
Sasha: Another way that the company maintains close relations with its customers is through its
Strategic Sales plans. Lululemon works with enthusiastic athletes and entrepreneurs to form
deeper ties to the community, raising awareness about the company and healthy living. Under the
wholesale program, Lululemon teams up with fitness centers and yoga studios. The team sales
program collaborates with teams to wear Lululemon’s fitness gear. The third program, the yoga
hard studios program, offers yoga studios the essentials such as straps and yoga mats to further
promote the company and raise its awareness in the community. These partnerships establish
good connections between Lulu and the community, spreading the love of yoga, fitness, and a
healthy lifestyle, along with clothes that support this mantra.
Haley: Lululemon inspires people to be fit, healthy, and to take on challenges. Ask any female
athlete on the Track and Cross Country teams at the University of Richmond, “why Lulu?”
You’ll hear a range of responses.
Preschutti and Tory 24
Sasha: I choose Lululemon because it is durable and cute.
Haley: I choose Lululemon because the clothes fit me. They look good and they feel good.
Sasha: I choose Lululemon because I am not intimidated by it.
Haley: I choose Lululemon because of the light, airy, and clean vibe.
Sasha: I choose Lululemon because of the quality I know I will get.
Haley: I personally choose Lululemon because I use it for what I love most, running.
Sasha: I choose Lululemon because I respect the fact that they don’t use sweatshops and I want
to support Canadian businesses.
Haley: The future is looking bright for Lululemon, the best yet to come.
Appendix F (Link to the DST): http://www.youtube.com/watch?v=jH2w_-yjjjA
Preschutti and Tory 25
Works Cited
Baker, Julie, Michael Levy, and Dhruv Grewal (1992), "An Experimental Approach to Making
Retail Store Environment- Griffitt, William (1970), "Environmental Effects on Interpertal
Decisions," Journal of Retailing, 68 (4), 445-60.
Bellizzi, Joseph, A. and Robert E. Hite (1992), "Environment Color, Consumer Feelings, and
Purchase Likelihood," Psychology and Marketing, 9 (September/October), 347-363.
Chevalier, Michel: Increase in Sales Due to In-Store Display. Journal of Marketing Research
12 (November 1975): 426–431.
Curhan, Ronald C.: The Effects of Merchandising and Temporary Promotional Activities on the
Sales of Fresh Fruits and Vegetables in Supermarkets. Journal of Marketing Research 11
(August 1974): 286-294.
Donovan, Robert J.Rossiter, John R. 1994. "Store Atmosphere and Purchasing Behavior."
Journal Of Retailing 70, no. 3: 283-294.Psychology and Behavioral Sciences Collection,
EBSCOhost(accessed November 4, 2014).
Donovan, Robert J., John R. Rossiter, Gilian Marcoolyn, and Andrew Nesdale (1994), "Store
Atmosphere and Purchasing Behavior." Journal of Retailing, 70 (3), 283-94.
Preschutti and Tory 26
Doyle, Peter B., and Gidengil, B. Zeki: A Review of In-Store Experiments. Journal of Retailing
53 (Summer 1977): 47–62
Gagnon, Jean Paul, and Osterhaus, Jane T.: Research Note: Effectiveness of Floor Displays on
the Sales of Retail Products. Journal of Retailing 61 (Spring 1985): 104–116.
Gray, Sally. "Competitive Apparel." CANADIAN CHEMICAL NEWS 60, no. 6 (2008): 20.
Gulas, Charles S., and Schewe, Charles D.: Atmospheric Segmentation: Managing Store Image
With Background Music, in Enhancing Knowledge Development in Marketing, Ravi Acrol and
Andrew Mitchell, eds., American Marketing Association, Chicago, IL.1994, pp. 325–330.
Kunde, Ashma. "What Next for Women’s Activewear: Dispatches from the Denim Market."
Euromonitor International, 2014, 1-2. Accessed November 10, 2014. Passport GMID.
Lam, Shun Yin. "The effects of store environment on shopping behaviors: A critical review."
Advances in Consumer Research 28 (2001): 190-197.
Lululemon Athletica, Inc. - Company Capsule. Basingstoke: Progressive Digital Media, 2013.
http://we4mf3mv5e.search.serialssolutions.com/docview/1552298048?accountid=14731.
Lululemon Athletica. "Education." Lululemon Athletica. Last modified 2014. Accessed
November 6, 2014. http://www.lululemon.com/education/?mnid=mn;education.
Preschutti and Tory 27
Lutz, Ashley. "You Really Do Have to 'Drink the Kool-Aid' to Succeed at Lululemon." Business
Insider. Last modified February 19, 2013. Accessed November 5, 2014.
http://www.businessinsider.com/what-its-like-to-work-at-lululemon-2013-2?op=1.
Mattioli, Dana. Editorial. The Wall Street Journal. Last modified March 22, 2012. Accessed
November 4, 2014.
http://online.wsj.com/articles/SB10001424052702303812904577295882632723066.
Moran, Susan. "Meditate on this: Yoga is big business." The New York Times C3 (2006).
"Research and Markets Offers Report: Lululemon Athletica (LULU) - Competitive & Market
Analysis." Wireless News (Oct 30, 2013).
http://we4mf3mv5e.search.serialssolutions.com/docview/1446786469?accountid=14731.
Spangenberg, Eric R., Ayn E. Crowley, and Pamela W. Henderson (1996), "Improving the Store
Environment: Do Olfactory Cues Affect Evaluations and Behaviors," Journal of Marketing, 60
(April), 67-80.
Stokes, Carlie Charlene. "Healthist ideologies: the case of Lululemon Athletica." (2008).
Susman, Aron. "INFOGRAPHIC - Lululemon Retail Sales Per Square Foot - Third Highest in
United States." TheSquareFoot. September 26, 2013. Accessed November 6, 2014.
Preschutti and Tory 28
Turley, Lou W., and Ronald E. Milliman. "Atmospheric effects on shopping behavior: a review
of the experimental evidence." Journal of Business Research49, no. 2 (2000): 193-211.
Wilkinson, J. B., Mason, J. Barry, and Paksoy, Christine H.: Assessing the Impact of Short Term
Supermarket Strategy Variables. Journal of Marketing Research 14 (February 1982): 72-86.
Yoo, Changjo, Jonghee Park, and Deborah J. MacInnis. "Effects of store characteristics and instore emotional experiences on store attitude." Journal of Business Research 42, no. 3 (1998):
253-263.