Running head: LULULEMON CASE STUDY  

Fashion Scholarship Fund 2015 Lululemon Case Study

Rebecca Savitt

Washington University in St. Louis

Fashion Design

LULULEMON CASE STUDY     1  

SWOT Analysis

Strengths

- Strong relationships with fitness professionals, through fitness ambassador program

where feedback is received to improve product (“Our Ambassadors”).

- Ambassador program stresses community outreach as compared to Nike offer

opportunities such as free yoga classes open to the public (“Our Ambassadors”).

- Significant social media presence (over 1 million Facebook likes, over 650,000 Twitter

followers and nearly 700,000 Instragram followers as compared to Atheta’s 200,000

Facebook likes, 30,000 Twitter followers and 60,000 Instagram followers.

Weaknesses

- Perceived as overpriced; quality is subpar considering cost (Elizabeth, 2014).

- Controversy of transparent pants (Suddath, 2013); subsequent comments by former CEO

C. Wilson (Peterson, 2013).

- Limited sizing, no maternity sizing or plus sizes, current sizes (2-12), Athleta offers wide

set of standard sizing (00-16) along with tall, petite, plus and maternity sizing.

Opportunities

- Extend  sizing  to  expand  customer  base.  

- Extend  categories  of  active  wear  outside  of  yoga  and  running.  

- Collaborate  with  non-­‐athletic  brands;  Nike  has  had  numerous  collaborations  with  

brands  such  as  Liberty  of  London  (“Nike  x  Liberty”  2014).  

- Extend  ambassador  program  to  those  indirectly  involved  in  the  fitness  community.  

- Manufacture  products  rather  than  rely  on  third  parties,  establishing  consistent  

quality  control.  

LULULEMON CASE STUDY 2

Threats

- Competitors  such  as  Athleta  offer  extensive  yoga  styles  similar  to  Lululemon  at  a  

more  competitive  and  affordable  price  point  (Peterson,  2014).  

- Stock  prices  have  fallen  in  past  6  months,  scaring  off  investors  (Caplinger,  2014).  

- Competitors  such  as  Nike  offer  wider  set  of  athletic  apparel  needs,  such  as  

swimming  and  skiing  apparel.  

 

Marketing Plan

Early or Expert Campaign stresses Lululemon is for everyone, beginners to professionals,

specifically calling attention to Lululemon’s new extended sizing. The Smart Textiles Campaign

advertises research and new smart textiles introduced into garments including sustainable textiles,

shown to be very attractive to consumers (Harris, 2014). Research current athletic apparel market

including possible national and international expansion. Dedicate time and energy to yoga

community through Ambassador Led yoga events and sponsor Yoga Journal’s Yoga Live! Yoga

Conference in New York City. Utilize both print and online social media sources to reach target

customers. Online social media platforms, such as Twitter and Facebook will be utilized; having a

strong social media presence is important in targeting consumers (DeMers, 2014). Traditional forms

of print media both in newspapers and magazines will also be utilized to cover consumers who are

focused on specified topics such as yoga (Yoga Journal) and fitness (Women’s Health).

 

LULULEMON CASE STUDY     3  

Marketing  Plan-­‐Excel  Spread  Sheet  

Marketing Plan

Specified Marketing Action Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

Research smart textiles

$50,000

Research International+ National Markets

$150,000

Competitor pricing research

$50,000

Sponsor Yoga Journal Live! New York (April 23-27)

$50,000

Advertise in yoga journal

$10,000 $10,000 $10,000 $10,000

Advertise in New York Times

$30,000 (“2014

Advertising Rates,” 2014)

Advertise on Twitter

$100,000

Early or Expert Campaign

Advertise in Lucky Magazine and Women's Health Magazine

$400,000 (“Lucky

Media Kit Print,” 2014)

(“Women’s Health Media

Kit,” 2014)

Smart Textiles Campaign

Advertise in yoga journal

$10,000 $10,000

Advertise on Facebook

$40,000 $40,000

Lululemon Ambassador Events

$5,000 $5,000 $5,000 $5,000 $5,000 $5,000

LULULEMON CASE STUDY     4  

Retailers

SoulCycle

Lululemon will market to SoulCycle, a high-end chain of cycling studios. They attract healthy

and affluent individuals who prioritize and spend money on their athletic pursuits. (Ionnau 2013)

After or before sessions, soul cyclers shop in SoulCycle studios. SoulCycle markets to men and

women who are committed to their health but in a non-yoga format. Soul cyclers will expand the

customer base to create new yoga fans that will shop for traditionally formatted yoga apparel.

Core Power Yoga

Lululemon will be sold at Core Power Yoga, a yoga studio chain with 12 locations throughout

the US. Core Power Yoga is for beginners and advanced yogis. The yoga chain is a good fit because

yogis, Lululemon’s target customer, are condensed into one place. Core Power Yoga does not offer

other merchandise currently meaning that Lululemon would have no competition. Core Power

Yoga’s broad audience will open new customers including both yoga professionals and novices.

J. Crew

Lululemon will be sold at J. Crew, the retailer known for its cool yet accessible styles. The new

Lululemon will fit J. Crew because it shares the same laidback yet impeccable style. Women who

are building their work and leisure wardrobe will also be able to build their wardrobe for athletic

activities with ease. Selling merchandise at J. Crew will also offer the potential for collaboration

between the two brands.

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BackViewof Hood

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Detachable Hood

LULULEMON CASE STUDY 5

References

2014 Advertising Rates. Retrieved from http://nytmediakit.com/uploads/content/14-

0208_2014_Regional_RateC_EC6.pdf.

Benzel, Jan. (2011, December 16). Excusez-Moi, Parlez-Vous Yoga?. The New York Times.

Retrieved from http://www.nytimes.com/2011/12/17/travel/excusez-moi-parlez-vous-yoga.html.

Caplinger, Dan. (2014, October 4). Why Lululemon Ahletica Has Crashed 30% in 2014. Retrieved

from http://www.fool.com/investing/general/2014/10/01/why-lululemon-athletica-has-crashed-

30-in-2014.aspx.

DeMers, Jayson. (2014, August 1). The Top 10 Benefits Of Social Media Marketing. Retrieved from

http://www.forbes.com/sites/jaysondemers/2014/08/11/the-top-10-benefits-of-social-media-

marketing/.

Fabrics and Technologies. Retrieved from

http://www.lululemon.com/education/info/fabricsandtechnologies?mnid=mn;education;fabrics-

and-technologies.

Gap. (2014). 2013 Annual Report. Retrieved from

http://www.gapinc.com/content/attachments/gapinc/GPS_AR13.pdf.

Harris, Elizabeth. (2014, July 18). Workout Clothes With High-Tech Twist Sell Briskly. The New

York Times. Retrieved from http://www.nytimes.com/2014/07/29/business/workout-clothes-

with-high-tech-twist-sell-briskly.html?_r=1.

Ioannou, Filipa. (2013, July 19). SoulCycle Is a Booming Exercise Chain for the 1%. Retrieved

from http://www.thedailybeast.com/articles/2013/07/19/soulcycle-is-a-booming-exercise-chain-

for-the-1-percent.html.

LULULEMON CASE STUDY 6

Lucky Media Kit Print. Retrieved from http://www.condenast.com/brands/lucky/media-

kit/print/rates.

Lululemon. (2014). 2013 Form 10-K (Annual Report). Retrieved from

http://files.shareholder.com/downloads/LULU/3558042923x0x766923/AC87B03 3-

1A64-47B5-9DAE-978862EF7D81/2013_10K.pdf

Nike. (2014). 2013 Form 10-K. Retrieved from

http://investors.nikeinc.com/files/doc_financials/AnnualReports/2013/docs/nike- 2013-

form-10K.pdf.

Nike x Liberty Collection A/W 2014. Retrieved from

http://www.liberty.co.uk/fcp/content/nike-liberty/content.

Our Ambassadors. Retrieved from http://www.lululemon.com/community/ambassadors.

Partner with Yoga Journal LIVE!. Retrieved from http://www.yjevents.com/sponsors/index.php.

Peterson, Elizabeth. (2014, September 24). Lululemon’s Pants Aren’t Worth That Much More

Than The Competition. Retrieved from http://www.businessinsider.com/why-lululemons-

pants-are-so-expensive-2014-9.

Peterson, Elizabeth. (2013 10 December). 8 Outrageous Remarks by Lululemon Founder Chip

Wilson. Retrieved from http://www.businessinsider.com/outrageous-remarks-by-

lululemon-founder-chip-wilson-2013-12

Sacks, Danielle. (2013, May). How Jenna Lyons Transformed J. Crew into a Cult Brand. Fast

Company. Retrieved from http://www.fastcompany.com/3007843/creative-

conversations/how-jenna-lyons-transformed-jcrew-cult-brand.

LULULEMON CASE STUDY     7  

Suddath, Claire. (2013, March 28). What Lululemon’s Yoga Pants Recall Reveals.

Retrieved from http://www.businessweek.com/articles/2013-03-28/what-lululemons-

yoga-pants-recall-reveals.

Women’s Health Media Kit 2014 RATES/PRODUCTION. Retrieved from

http://www.womenshealthmag.com/files/mediakit/WH-MediaKit-Rates.pdf.

Yoga Journal Live: New York. Retrieved from http://www.yjevents.com/ny15/.