lululemon MBA Marketing Plan


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This is a final project I worked on for my last MBA marketing class. I designed the paper as well as created parts of the plan.

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lululemon MBA Marketing Plan

  1. 1. lululemon athletica“Do you lulu?” Marketing Campaign 2011-2012
  2. 2. Table of Contentspg. 3 Introductionpg. 6 Executive Summarypg. 7 Researchpg. 9 Objectivespg. 10 Situation Analysispg. 11 Consumer Analysispg. 15 Industry Analysispg. 17 Broad Overall Analysispg. 22 Strategies and Planspg. 43 Timeline and Budgetspg. 46 Summarypg. 47 References and Appendices
  3. 3. IntroductionBulldog Marketing is a marketing communications firm based out of Houston,Texas, that has extensive education and experience with building brand awarenessand online sales. Our team members have an eclectic background in business,marketing, digital marketing, media relations, new and social media, and publicrelations. Our proven results as a team speak for themselves, as we have createdsuccessful campaigns and strategies for a number of high-caliber clients.We chose to focus on lululemon athletica because we feel the brand has very strongpotential in the U.S. market. lululemon has strong sales and is growing at a fast rateevery year. Since lululemon is a Canadian-based brand, the brand awareness in theUnited States as yet to reach its full potential. We at Bulldog Marketing feel that ourcombined experience coupled with lululemon’s strong branding that already existsin other markets will prove to be successful.We look forward to working with you in the months ahead and building thelululemon brand. 3
  4. 4. Meet the Team Nicole Grandy has a Master of Business Administration from The University of Houston and a Bachelor of Business Administration in marketing from The University of Texas at Austin. With experience in marketing research as well as internet marketing, Nicole is constantly keeping up with the newest trends in the industry. In her spare time she enjoys traveling, cooking, and Longhorn football. Jeffrei Clifton completed her MBA at the University of Houston and her B.A. in Mass Communication with a concentration in Public Relations with minors in Business Administration, History, and Leadership Development at Louisiana State University. Her background is in healthcare marketing. Outside of work, she enjoys doing it big, NOLA, Texan country music, bike riding, reading historical Joyce Jia Hu is a recent MBA graduate from the University of Houston Bauer College of Business. She has been an ambassador for heath and fitness through her dancing since the age of 14. She has a strong community presence, with a focus on the Asian community in Houston. In her free time she dabbles in high-fashion photography, collects Hello Kitty merchandise and is avidly addicted to 4
  5. 5. Meet the Team Krista Smith earned her MBA from the University of Houston and completed her B.A. in Communication with minors in Business and Journalism at Texas A&M University. Her professional background is varied, with experience in marketing, social media, journalism, and counseling. Krista is a freelance writer, a self-proclaimed bookworm, a road trip enthusiast, and a lover of baseball. Rachel Walton has her MBA from the University of Houston with concentrations in marketing and management. She is an exceptional problem-solver and decision maker with diverse experience in entrepreneurship and all aspects of office operations, as well as expertise in customer service and direct sales. Rachel is an avid spinner and foodie which works well because one balances the other. Carolina Thomas has a Master of Business Administration from The University of Houston and a Bachelor of Science in Advertising as well as a Bachelor of Journalism from The University of Texas at Austin. Carolina enjoys all aspects of marketing and advertising and has varied experiences from social media, to event planning to public relations and more. In her free time, she loves watching movies, tweeting and designing. 5
  6. 6. Executive Summarylululemon athletica is an athletic apparel store that sells high-quality performancewear geared primarily towards women who lead healthy lifestyles and want to doso in a comfortable—yet fashionable—way.Founded in 1998 by Dennis “Chip” Wilson in Vancouver, British Columbia, lululemoncurrently has 45 stores in Canada and 70 in the U.S. which sell “innovative, technicalapparel products” that are “designed to offer performance, fit and comfort whileincorporating both function and style,” according to their 2010 annual report.Although lululemon boasts annual revenue of $452.9 million and a gross profitof $223 million, its strong brand recognition and sales are mainly concentratedin the Canadian market; these indicators have yet to reach that same level in theU.S. market, even though there are almost double the number of stores in the there are in Canada. Keeping in line with the company’s current “community-based” marketing strategy, Bulldog Marketing seeks to increase lululemon’s brandawareness in the U.S. market.The target market for this campaign was identified as 18-34 females who arefit, health conscious, and fashion-forward with high disposable incomes. Theseindividuals are lululemon’s most significant customers, and they will be targetedthrough a variety of marketing media.The primary goal of the “Do You lulu?” campaign is to elevate the lululemon brandin the U.S. while still being true to lululemon’s historical marketing efforts. Thecompany has made a point to not advertise in traditional media like print; instead,their growth has relied on word-of-mouth and grassroots efforts to spread theirbrand message. This campaign is unique in the fact that it is designed to be carriedout at both the national and local levels—in other words, we have developedstrategies specifically for all lululemon stores both collectively and individually. Thecampaign will rely heavily on social media, special events, and guerrilla marketingtactics, all of which will pose the question: Do You lulu? 6
  7. 7. ResearchIn conducting exploratory research for the “Do You lulu?” campaign, we focused onboth primary and secondary sources.A survey was distributed to 100 participants to gauge the buying patterns of currentPrimaryand prospective customers and measure awareness of the lululemon brand. In thesurvey, respondents were asked about their workout habits, their athletic apparelpurchasing habits, and their opinions of lululemon. In the results we found that 43percent of our respondents had heard of the brand lululemon. Of that 43 percent,only 24 percent have actually purchased a lululemon product. When asked whya respondent would not purchase lululemon, expense was rated as the highestfactor. Fifty-three percent of respondents disagreed that lululemon was affordable,however 71 percent either agreed or strongly agreed that lululemon if high-quality.(Appendix 1)We also conducted an interview with Maura Sweeney, Houston Regional Managerof lululemon and UH Bauer alum. In the interview, Sweeney described the currenttarget of lululemon, their competition, and the company’s overall marketing strategy.Through Sweeney, we were able to gain a firsthand perspective into lululemon’scurrent marketing strategy and growth plans.As a team, we also visited the lululemon location on Westheimer Road in Houston,Texas. In the store, we were able to browse the merchandise and gain a betterknowledge of lululemon’s products. We were also able to view the store layout andin-store promotional materials that the company already uses. 7
  8. 8. ResearchOur secondary research consisted of online journal publications like PlunkettSecondaryand Hoovers, as well as various online yoga blogs. In comparing lululemon to itscompetitors in the industry, we analyzed the financial documents and annual 10kreports of each company. We also studied lululemon’s online distribution strategyby looking at the company’s website, Marketing has also created a preliminary influencer map that identifiespeople and communities with the most potential to affect purchasing decisions ofthe target market. This information will be discussed later in the plan. 8
  9. 9. ObjectivesOur objectives for this campaign are all designed to increase overall brand awarenesswithin the U.S. market. To do this, we specifically aim to do the following:• Increase U.S. sales by 10 percent• Increase website traffic and online sales by 10 percent• Increase the number of individuals who would consider purchasing lululemon apparel by 20 percent• Increasing individual store sales of women’s apparel by 5-10 percent• Increase Facebook “Likes” by 50,000 for corporate page and 300 for store pages• Increase Twitter followers to 100,000 for corporate pageThe majority of our objectives will be easily measurable either by analyzing financialstatements or through noticeable increases in social network participation. However,we will conduct extensive pre- and post-campaign surveys in order to measurebrand awareness. We will also hold focus groups to gain a more in-depth analysis ofthe lululemon brand. 9
  10. 10. Situation Analysis Strengths: Weaknesses: • High-quality products • Weak brand recognition in the • Innovative features and styles U.S.--may not be in consumer’s • Vertical retail strategy—produce consideration set everything down to fabrics • Slow growth strategy due to lack and sell in own stores—lots of mass marketing of control • Decentralized marketing--each • Selective outside retailers— store has control over own positioned as premium message brand with premium pricing • Few retail outlets--may not be • Well- trained staff—known as able to reach all potential “educators,” 30 hours of consumers training within first 3 months • Premium store locations • Community-centered marketing approach—builds brand awareness, relationships and philanthropic activities 
 Opportunities: Threats: • Economic conditions mayandInternational expansion • relationships, philanthropic activities
 decrease consumer spending • E-commerce development • Competition • New market segments--men and • Small market size- lack of health youth focus in U.S. market • Growth in U.S. market • Lack of consumer knowledge • Build U.S. brand recognition • Heavily focused word-of-mouth marketing strategy/ lack of control of message 10
  11. 11. Consumer AnalysisEssentially, lululemon aims to market a lifestyle to young, affluent women. Whilelululemon’s clothing is a quality product and can last through many workouts,anyone—even those who don’t work out or practice yoga regularly—can buy it andproject the image that they do engage in those behaviors. The market for lululemonapparel is likely to continue growing. According to a Plunkett Research report, in2008 the Sporting Goods Manufacturers Association found that 34 percent ofAmericans exercise on a frequent basis, which is defined as 100 days or more peryear, while 10 percent exercise on a regular basis, which is 50 to 99 days per year.In addition to this, yoga is the fastest growing sport in America, with more than 10million people practicing it (Yoga Journal, 2008).America is exercising more, and lululemon should plan to capitalize on it. To furtherdefine the company’s target market, we have produced an in-depth consumeranalysis in order to better understand the lululemon customer.lululemon services a very precise consumer—the young, hip, and fit 18-34 year oldTarget Marketwoman who embraces fitness and athletic activities like yoga. Within lululemon’s2010 annual report, the company defines their target customer as a “sophisticatedand educated woman who understands the importance of an active, healthy lifestyle”and who:“is increasingly tasked with the dual responsibilities of career and family andis constantly challenged to balance her work, life and health, pursues exercise toachieve physical fitness and inner peace, and purchases based on an actual needfor functional products and a desire to create a particular lifestyle perception.”(lululemon 10K, 2010)Based on this information, we have identified two primary groups within thecampaign’s target market: the “Zen Y”er and the Mother Zen. 11
  12. 12. Consumer AnalysisThe “Zen Y”er is a young, college-aged woman without children. As a member ofGen Y, she is forward-thinking and prides herself on knowing the latest trends inseveral aspects, including fashion, technology, and pop culture. She may or may notbe interested in fitness, but she wants to keep up with the current trends. Since yogais a growing sport popular with her peers, she is likely to have some knowledge ofthe practice. Doing yoga for the “Zen Y”er is not for health purposes—rather, it isfor the statement it makes and how good she looks while doing it. The “Zen Y”er iswearing lululemon to be fashionable and trendy.The second group is the Mother Zens. The Mother Zen is a young mother who enjoysstaying current on popular trends. She is college-educated and may or may not beconscious about the health of herself and her family. Yoga—if she practices it—is anescape. lululemon apparel for a Mother Zen makes a fashion statement, but it alsohas many uses. The Mother Zen is just as likely to wear her lululemon yoga pants toan exercise class as she is to make a quick trip through the grocery store. 12
  13. 13. “Zen Y”er Sample ProfileElaina is a 20-year-old student studying film and television at New York University.She is enjoying the city nightlife as a single woman, but still remains concentratedon her studies, as she one day hopes to make her name as a film director. Elaina’sparents—her father is an affluent Wall Street executive while her mother is ahousewife—are supporting her while she attends college. They pay all of herliving expenses and also give her monthly spending money. Elaina loves all thingsentertainment, but she is also a fashionista who spends lots of time canvassing theshops on Fifth Avenue for the latest fashion trends. She wants to project an imageas a trendsetter and often has all of the up-and-coming gadgets before her friends.Her iPhone 4 is never far from her side, as she loves to tweet throughout the day onTwitter. She also makes a point to check in to every business or event she attendsvia FourSquare, as her peers are sure to see how active she is in the fast-pace life ofNew York City.After a close friend asked Elaina to accompany her to an outdoor yoga class earlierthis year, Elaina has been attending a twice-weekly yoga class in Central Park. Shehas come to enjoy this time as a peaceful break from her hectic lifestyle. There is alululemon store located a few blocks from Elaina’s apartment. She has traditionallybought workout apparel from athletic shops but has yet to determine a brandpreference in her yoga gear. 13
  14. 14. Mother Zen Sample ProfileBethany is a 30-year-old married mother of two children: a four-year-old little girland a seven-month-old baby boy. She earned a degree in business from TulaneUniversity and worked in pharmaceutical sales for four years before she and herhusband decided to have children. Bethany is now a full-time stay-at-home motherbut plans to return to work once her children are in school. Even though she is ayoung mother, Bethany has refused to become a typical soccer mom; she stays up-to-date on the latest technology, fashion, and pop culture trends and gossip. Sinceshe and her family have recently relocated to Chicago, Bethany stays in contact withher family and friends in her native Lafayette, La., via Skype and Facebook. She alsomaintains a blog that is well-recognized in the online community, where she oftenwrites about her family, new recipes, crafts or special projects she is undertaking,and other subjects she finds of interest.Bethany is constantly on the go. Whether it is taking her children to the park ordoing a quick run through the grocery store, she leads a very active life. She pridesherself on being able to juggle the responsibilities of motherhood while still beinghip. 14
  15. 15. Industry AnalysisThe United States sporting apparel market, which lululemon is classified under, isthe world’s largest sportswear market, accounting for 41 percent of total sales. Itis followed by the European Union, which accounts for about 38 percent (Researchand Markets, 2007).In 2009, U.S. consumers spent about $9.2 billion on sporting apparel; this wasexpected to grow to $9.6 billion in 2010 (, 2009). While other women’sapparel categories suffered during the recent economic downturn, women’ssporting apparel only suffered a 5 percent decline from 2008-2009. According toa Plunkett Research report, manufacturers such as Stella McCartney, Juicy Couture,and Norma Kamali, as well as big names such as Nike and Adidas, are pushing theirsporting apparel lines with “an ever-increasing variety of styles that can go fromgym to nightclub” (Plunkett, 2010).Yoga is a continually expanding industry, with Americans spending more than$5.7 billion in classes and equipment yearly. The sporting apparel industry is alsoprojected to continually increase over the next few years. According to Plunkett,“while Americans (as well as residents of many other countries from Mexico toChina) have been putting on weight, they have also developed a keen interest insports apparel and workout gear to wear at the gym and in other leisure activities.This is one of the fastest-growing product categories in the apparel and shoe sector.Over 40 million Americans have some sort of gym membership, and they needappropriate clothing to wear while they workout.”Within the sporting apparel industry, lululemon’s top three competitors are Nike,Adidas, and Under Armour, with secondary competitors consisting of Bebe stores,Jockey International, Liz Claiborne, Lucy Activewear, and Gap (Hoovers, 2011).Nike was incorporated in 1968 in Oregon, and the company states that its “principalCompetitor Analysisbusiness activity is the design, development, and worldwide marketing of highquality footwear, apparel, equipment, and accessory products (Nike 10K, 2010). 15
  16. 16. Industry AnalysisUnlike lululemon, Nike has an extremely diversified distribution strategy, sellingits products though large retail accounts, Nike-owned retailers, and independentsmaller distributors in more than 170 countries around the world. In addition to itsNike products, the company owns Cole Haan, Converse Inc, Hurley International LLC,and Umbro Ltd. Nike ended the year 2010 with more than $19 billion in revenue.Adidas is a German sports apparel manufacturer with subsidiaries includingReebok, Rockport, and TaylorMade. Under the Adidas name, the company sellsathletic apparel, footwear, sporting equipment, and accessories. Like many of itslarge competitors, Adidas sponsors professional athletes and sports teams. Thecompany has high brand recognition and is the largest sportswear manufacturer inEurope (Adidas 10K, 2010).Under Armour was founded in 1996 andgained notoriety in the athletic apparelbusiness for its moisture-wicking fabric.The company’s main focus has always beenapparel, but in 2006 Under Armour introduceda line of footwear. At the end of 2010, UnderArmour had revenues totaling more than $1billion, with $800 million coming from NorthAmerica (Under Armour 10K, 2010).Nike, Adidas, and Under Armour are the threelargest athletic apparel companies in the industry. While these companies werenamed as top competitors in lululemon’s annual report, we believe that companieslike Gap and Lucy Activewear more closely resemble lululemon’s business model.Although the top three competitors each have annual sales well into the billions whilelululemon has yet to reach the billion dollar mark, lululemon’s net profit margin iswell above the others at 17.12 percent and well above the industry standard of 2.33percent (Hoovers, 2011). This indicates lululemon’s healthy business strategy andefficient management within the sporting apparel industry. 16
  17. 17. Broad Overall Analysislululemon’s product line includes jackets, hoodies, pants, and shorts for both menProductsand women as well as bras, underwear, and tank tops for women. The store’ssignature product—its pants—are offered in both regular and tall lengths. Themajority of lululemon garments are pre-shrunk to ensure a quality first-time fit,meaning that arm and leg lengths are sized properly for the garment’s pattern andthat zippers do not buckle after their first wash. lululemon pants are often laudedfor their ability to flatter a woman’s derrière, which appeals to female fashionistas,soccer moms, professionals, and the men who buy gifts for them.lululemon prides itself on using cutting-edge, quality fabrics that deliver maximumfunction and athletic fit. lululemon collaborates with leading fabric suppliersto develop trademarked fabrics. Its high impact fabric, known as “all-moisturewicking,” pulls moisture away from the body and spreads it evenly throughout thefabric so it evaporates faster and helps the fabric to dry quickly. The low-impactfabrics are made from natural fibers that lululemon suggests wearing “during warm-up and to-and-from the studio” (, 2011). The outerwear fabrics aredesigned to protect against wind and rain. By using fabric with a matte finish andmaking it thicker than spandex, lululemon products avoid unsightly shine. Otherinnovative features in lululemon’s apparel products are flat seams, tear-out labelsand thumbholes on the sleeves and pockets for credit cards, audio players, and heartrate monitors.The products are designed to offer performance, fit, and comfort while incorporatingboth function and style. As mentioned before, lululemon is not just for athletes, butalso for customers who desire everyday casual wear.The company recently expanded their product range to appeal to the men and youthsegment. lululemon also sells fitness-related accessories including bags, socks,underwear, yoga mats, instructional yoga DVDs, and water bottles. 17
  18. 18. Broad Overall Analysislululemon’s products are priced much higher than similar workout apparel.Pricelululemon’s prices—around $50-60 for a t-shirt and $100 for pants—cater to theupper-class consumer willing to pay premium prices for workout gear. lululemon’score customers typically have the income that allows them to continue purchasingtrendy and pricey exercise apparel despite downward trends in the economy.lululemon’s highly priced products result in high margins for the company. Withsignificantly smaller stores and highly priced items, lululemon is able to achieve salesper square foot of $1,700 in its corporate-owned stores—more than three times asmany sales per square foot than Abercrombie & Fitch and Gap, companies whichhave sales of $489 and $398 per square foot, respectively. All of this translates intolower costs and higher revenue for lululemon, which largely drive the company’s53.3 percent gross margin and 18.2 percent operating margin.lululemon has a vertical retail strategy, meaning that it manufactures what it sells.DistributionThis strategy allows them to gather more feedback from customers and providesgreater control over its brand.In the U.S., lululemon has developed a showroom design strategy for its stores. ThisStore Designmeans that an intimate retail space with limited inventory is opened part-time incities where the company thinks it can open a full-time store. Stores are laid out in acircular pattern, which brings customers around the store and allows them to touch,feel, and experience the products.The store also features mannequins for each of its products to show customers howproducts— like pants—actually fit on a body. There are also interactive elements inthe store including a message board for customers to write and comment on products,displays of healthy eating tips, local fitness studio information, biographies on itslocal brand ambassadors, and other community events. The showroom strategy hassucceeded in driving brand awareness in new markets. 18
  19. 19. Broad Overall AnalysisHowever, finding and securing prime realestate that fits the company’s image and needshas proved to be a challenge. For example,lululemon’s Santa Monica store is big andbright, but it doesn’t get the foot traffic itwould if it was located a few blocks over on theThird Street pedestrian mall (lululemon 10k,2010). lululemon’s stores in North America aremostly located in major cities like Los Angeles,Seattle, New York, Toronto, and Vancouver. At the end of Q1 FY08, the company onlyoperated 37 stores in the U.S., with 15 of them located in California. Now in 2011,there are 42 showrooms and 76 stores in the U.S., a significant increase over 2008.As of January 30, 2011, lululemon has only four franchise stores in the U.S. ThisFranchise Storeschannel represented 1 percent of net revenue in fiscal 2010 and 3 percent of netrevenue in fiscal 2009. Opening new franchise stores is not part of the company’snear-term store growth strategy. Unless otherwise approved by lululemon, thefranchisees are required to sell only lululemon branded products, which arepurchased from the company at a discount to the suggested retail price.lululemon’s current website is under renovation in order to expand their e-commerceOnlinepresence. At the time of this plan preparation, only a limited number of products areoffered for purchase online. lululemon’s e-commerce sales continue to grow eachyear as more people go online and use their smart phones to make purchases.lululemon’s online and smart phone sales comprised 4 percent of net revenue in2009 and 8 percent in 2010. A greater online presence means that lululemon willhave a larger direct-to-consumer channel and can reach those customers not near aretail location or third-party reseller. As a result, lululemon hopes to increase brandawareness, especially internationally. 19
  20. 20. Broad Overall AnalysisCurrently, lululemon’s merchandise is also sold at strategic third-party resellersWholesale Channelthat lululemon feels parallels their brand image. Examples of such resellers includepremium yoga studios, health clubs, and fitness centers. This sector of sales madeup 2 percent of net revenue in 2009 and 2010. The wholesale channel of business isnot intended to be a large contributor to lululemon’s overall revenue, but exists justto build brand awareness, specifically in new markets.lululemon’s current marketing plan is the same in Canada as it is in U.S. The companyCurrent Promotions and Marketing Strategytakes a grassroots approach, relying heavily on word-of-mouth advertising. Freeyoga classes are taught once a week in some locations, and lululemon staff willsometimes teach at local yoga studios.Each lululemon location is responsible formarketing and building a reputation in theirlocal community, making it a very decentralizedapproach. lululemon’s corporate headquartersdoes not even have a marketing division; instead,it only has a community relations department.Nationally, the only two places lululemonadvertises are in Yoga Journal and Runner’sWorld magazines. Because of lululemon’sunique approach to marketing through the localcommunity, the company has seen an increase of14 percent in sales in 2009, despite the economicdownturn. 20
  21. 21. Broad Overall AnalysisIn lululemon’s annual report for 2010, the company describes their strategy as a“distinctive community-based strategy that we believe enhances our brand andreinforces our customer loyalty. The key elements of our strategy are to:• design and develop innovative athletic apparel that combines performance with style and incorporates real-time customer feedback;• locate our stores in street locations, lifestyle centers and malls that position each lululemon athletica store as an integral part of its community;• create an inviting and educational store environment that encourages product trial and repeat visits; and• market on a grassroots level in each community, including through social media and influential fitness practitioners who embrace and create excitement around our brand.”lululemon’s grassroots strategy and marketing help them build brand awarenessCommunity-Based Marketingand loyal customers in the community. Through local “ambassadors,” social media,and in-store community boards, lululemon creates brand loyalty and grows itsbrand awareness locally.Local ambassadors, who are individuals that are active in the athletic community,help raise community brand awareness. The in-store community boards help bringpeople into the stores and educate them about the different planned in-store andcommunity activities. Each lululemon location has a community coordinator whoorganizes athletic events and philanthropic activities to raise brand awarenesslocally. 21
  22. 22. StrategiesKeeping in line with the campaign’s objectives, the marketing strategy will seekto create customer awareness regarding the lululemon brand, develop the targetcustomer base, and establish lasting connections with target markets.Our three main strategies are as follows:• Increase brand awareness and image among the target demographic.• Engage current and potential customers nationally and locally.• Further develop customer loyalty.We intend to maintain the current lululemon community-based marketing strategyand rely heavily on new and social media tactics, as well as community outreachand media relations activities. Our tactics will be implemented at a national scale;however, lululemon stores will also be divided into regions. Localized tactics withineach region will be critical to the campaign’s overall success throughout the year.Bulldog Marketing has developed the following marketing tactics for the “Do YouPlanslulu?” year-long campaign. Other tactics such as a press kit, press conferences, acrisis communication plan, websiteredesign, and branding were alsoconsidered for this campaign; however,our firm found that lululemon’s currentstrategies in each of these areas werealready closely aligned or surpassedthe overall objectives of “Do You lulu?”Plans for marketing tactics at both thenational and local levels are presentedbelow. 22
  23. 23. Community RelationsLocalSince lululemon focuses on building brand awareness through underground andguerrilla marketing techniques, it is critical for the company to have a communityrelations plan in place. Building brand awareness through activities in the localcommunity can positively affect people’s images of the brand and grow the potentialconsumer base. The “Do You lulu?” campaign includes comprehensive communityrelations tactics that can be implemented locally at minimal cost.Because lululemon sells fitness clothing, the campaign will focus on fitness andathletic community relations strategies. In recent years, many public schools havebeen forced to cut physical education programs due to budgetary constraints. Allthe while, childhood obesity has become a growing problem in the US. Employees oflocal lululemon stores will teach a yoga class to different schools in the area. Oncea week, one or two employees will visit an elementary or middle school and givean instructional yoga and fitness class during the school’s normal P.E. class time.Schools will participate on a rotational basis, which will allow lululemon to reachas many schools and students in the area as possible. This tactic will create positivepress by associating lululemon’s name with healthy lifestyle education. It willalso increase brand awareness to mothers of the students, widening the potentialcustomer base of the company.lululemon will also become a sponsor of the Susan G. Komen Race for the Cure. Whilethe Susan G. Komen Breast Cancer Foundation has national exposure, differentcities throughout the country hold various walks and races during different monthsof the year. lululemon stores will partner with the local affiliate in their area andbecome an official sponsor of the event. Sliver level sponsorship packages for thelocal events begin at $15,000 while bronze level packages begin at $10,000. 23
  24. 24. New and Social MediaIn order to align with lululemon’s mission to create strong customer loyalty bybuilding a community, Bulldog Marketing’s plan includes a significant emphasison social media tools. Presently, lululemon has a national presence on social mediaoutlets such as Facebook, Twitter, Vimeo, Youtube, Flickr, Foursquare, and theircompany blog. While this is a great start, Bulldog Marketing would like to increasethe level of consumer participation in Facebook and Twitter as well as explore newmedia outlets and streamline the social media usage at all lululemon stores.National and LocalCurrently each lululemon store is in charge of building this online community throughSocial Media Handbookgrassroots efforts. However, not all of the lululemon stores use social media or, ifthey do, they do not use all the social media tools available. To combat this problem,a social media handbook will be created and distributed to each of lululemon’s 70U.S. stores. This handbook will have a section for each of the main social media toolslike Facebook, Twitter, YouTube, blogs, Flickr, as well as new social media tools suchas Foursquare, Tumblr, Instagram, SCVNGR, and QR Code implementation.The handbook will include a quick synopsis of each social media tool as well as waysto use each in order to create community involvement and fit with the overall “DoYou lulu?” campaign. (Appendix 2)In order to ensure that the social media tools are implemented properly, a regionalsocial media manager will oversee a section of stores and provide training andsupport to the store’s educators and brand ambassadors.The following are short overviews of how each of these social media tools would beused in the national “Do You lulu?” campaign. Some of these tactics will be explainedin greater detail later in the plan, and each will be expanded upon in greater detailand adapted for local implementation in the social media handbook. 24
  25. 25. New and Social MediaCurrently lululemon has a corporate Facebook page with more than 300,000 “Likes.”FacebookBulldog Marketing aims to increase this number by 50,000 “Likes” at a national levelduring our year-long campaign. Increasing the number of “Likes” is important forthree reasons: brand loyalty, customer insight, and revenue growth. According toAdweek, by actively participating in Facebook, “marketers can confidently expect toimprove the level of brand loyalty among their Facebook fans as well as create anengaged audience from which to glean important customer insight” (Adweek, 2011).Also, according to the blog TechCrunch (2011), the value of a Facebook “Like” is$8, meaning that by adding 50,000 to the corporate page, our campaign would add$400,000 in value.In order to increase these “Likes,” Facebook would be used in conjunction with thespecial events such as National Yoga Month, the “Do You lulu?” bus, and the guerrillamarketing tactics outlined later in the plan. Each event will include a social mediacomponent, whether it be online contests or exclusive events, only available forthose individuals who “Like” lululemon on Facebook; this will also be outlined laterin the plan.Facebook will also be used to contact key media influencers outlined on theinfluencer map. Facebook is a great way to identify and cultivate relationships withthese influencers in order to create a stronger community presence.lululemon’s Twitter page has a total of 72,000 followers, which Bulldog MarketingTwitterwould increase by 100,000. This equals a total of $200,000 in added value(TechCrunch, 2011).Twitter’s main purpose is to disseminate information quickly and precisely is shortmessages, or “tweets.” Twitter would be used much in the same way as Facebook,as the company will market special events and encourage participation in onlinecontests using the hashtag #DYL2011. By creating a hashtag, participation in 25
  26. 26. New and Social Medialululemon events will be easily identified and tied into the contests, creating a moreunified campaign. The goal is to create a hashtag that becomes a trending topic onTwitter, which increases both the campaign and overall brand awareness. Thesecontests will also be outlined later in the plan.Like Facebook, Twitter is a great way to directly contact the key influencers outlinedin the key influencer map. Twitter will be used to inform these key influencers of thespecial events related to the “Do You lulu?” campaign and cultivate a dialogue withthem, leading to an increase in the number of quality followers.Twitter will also be used by the national spokesperson to tweet about the lululemonproducts she is using or events she is attending during the year-long campaign.Right now, lululemon’s YouTube page includes interviews with founder Chip Wilson,YouTubeand some of the company’s brand ambassadors. Because YouTube is the No. 2 searchengine in the U.S. behind Google (TechCrunch, 2008), Bulldog Marketing would liketo expand lululemon’s presence on this tool by posting content related to the “DoYou lulu?” campaign.Behind-the-scenes preparation for the “Do You lulu?” bus tour will be posted onYouTube, as well as an ongoing video diary. This video diary will document life onthe bus and showcase the events at each of the cities on the tour.Video will also be taken at each store to showcase activities during National YogaMonth. Because the month culminates in the Guinness World Record day, preparationfor this day will be documented in addition to the actual event.lululemon’s national spokesperson will also be required to record YouTube videosshowcasing how she practices the lululemon philosophy; she will also encouragepeople to post video replies showcasing how they answer the question, “Do Yoululu?” 26
  27. 27. New and Social MediaBlogs are a great way to increase natural search results and position lululemon as aBlogsthought-leader in its industry.lululemon has a blog that is accessible through its main website under the“Community” tab. The blog content is mostly related to showcasing brandambassadors and loyal lululemon consumers.When the campaign begins, the national blog should be used much in the same wayat YouTube to document the major unique events such as the bus tour and NationalYoga Month, as well as to provide more tips on practicing a healthy, zen lifestyle.At a local level, brand ambassadors will be in charge of creating blog content thatreflects the lululemon lifestyle. These blog posts will range from documentingevents at the local stores that relate to the “Do You lulu?” campaign to giving healthyliving tips to providing original commentary on recent news articles that relate tothe overall healthy, zen lifestyle.Flickr is a great way to showcase beautiful photography or artwork and connectFlickrwith consumers who are interested in this form of media.lululemon’s current Flickr photostream consists mainly of photos of group yogaclasses. For the “Do You lulu?” campaign integration, Flickr will be used to postpictures of all the special events held throughout the year, including the onesmentioned earlier. The whole yoga bus experience will be documented from start tofinish in addition to the events held throughout National Yoga Month. These photoswill be featured in a new photostream titled “DYL2011.” These photos will also beincluded in the blog posts with links to the album year-round.Participants will be encouraged to include their own photos of the events or otherartistic yoga-related photographs in this photostream or under the DYL2011 tag. 27
  28. 28. New and Social MediaThese photos can be entered into the “Do You lulu?” contest, which will be mentionedlater in this plan.Foursquare is a geolocation tool where participants “check-in” to locations in orderFoursquareto earn points and badges that normally lead to rewards. If an individual checks-inenough times, he or she becomes the mayor of that location. Oftentimes the mayorreceives perks, such as discounts or free merchandise, from the business.lululemon has a national Foursquare account where participants can check-in tofind events at local lululemon stores. This will be also used during the campaign.When a person checks-in to a “Do You lulu?” event—either the bus tour, flash mob,or yoga month event—tags it with the hashtag #DYL2011 and tweets it, she will beeligible to win specialty items or other prizes, available at the check-in site.Tumblr is a new way to blog—it is not so much about writing posts as it is postingTumblrshort quotes or pictures. Tumblr is like the Twitter of the blogging world.A Tumblr account used specifically for the “Do You lulu?” campaign will be createdand used as a way to aggregate all the information tagged with the #DYL2011hashtag—from tweets/quotes to pictures to videos. This will be a very visual wayfor our target to follow the campaign and see everything at a glance.Instagram is the newest smartphone photo-taking application. This app is greatInstagramfor amateur photo takers who want to take photographs and add beautiful filtersto make their photos appear more artistic. The application also allows the user toshare photographs in real-time and like other users’ work. The Instagram platformis great for people who tend to take pictures more often with their smartphonesthan a digital camera and who love the integration with other social media networks. 28
  29. 29. New and Social MediaBrands such as Kate Spade, Brisk Iced Tea, and Red Bull have adopted Instagramas a way to brand their products through photos (Mashable, 2011). The lululemoncampaign will also use Instagram as a branding technique and integrate it into the“Do You lulu?” campaign.Users of the application will be able to hashtag their photos throughout the year with#DYL2011, which will then be showcased on Tumblr and earn them eligibility to beentered into the photo contest during September. By hashtagging the photos, thoseusers who decide to tweet the photos will also be contributing the overall visibilityof the campaign on Twitter. Instagram will also be used during other events by thebrand ambassadors or store educators who want to snap pictures to showcase theirstore.During National Yoga Month, each store will complete a week-long scavenger huntSCVNGRusing the new smartphone app called SCVNGR.SCVNGR allows individuals or stores to create a hunt in as many locations as theyplease with specific tasks at each location. These tasks can be anything from takinga simple photograph of the location to performing some sort of small feat, like doingthe “downward-facing dog” position in the middle of a park and taking a picture asproof.In order to participate, one must download the SCVNGR app to her smartphone andfollow the clues to the different locations. Once completed, users will be enteredinto a drawing for a lululemon giftcard and will also receive specialty items forparticipating. The locations will be chosen by each store with heavy emphasis onstrategic partnerships and approval by the regional social media manager.The scavenger hunt will be publicized both on both the national and individualstore’s social media outlets. Photos can also be taken during the scavenger hunt andintegrated on the previously mentioned social platforms for campaign integration. 29
  30. 30. New and Social MediaThis hunt can also be repeated during the year as a store’s required monthly eventand can also be adapted for use on Foursquare.QR Codes, a new media technique, are small, barcode-like images that once scannedQR Codeswith a smartphone, bring the customer to an online site. This site can be a pagewithin a website, a YouTube video or a blog post—anything that has a unique URL.The main way QR codes will be used during the campaign is to integrate the nationalspokesperson into the campaign and convey the benefits of owning lululemon gear.To accomplish this, QR codes will be displayed on the featured items table at thefront of each store, both on the table, in the window, and on the individual clothingtags. These items will be the newest products in the lululemon line, which willrotate about two to three times during our campaign according to the seasons. Oncescanned, the user will be directed to a short YouTube video featuring the nationalspokesperson talking about the product’s benefits, why she likes it, and how shepractices the lululemon philosophy. At the end of the video, the user will be informedof the “Do You lulu?” campaign and the presence of the lululemon brand on socialmedia sites.During our primary research survey, the biggest reason people did not purchaselululemon gear was its high-price point. By integrating QR codes with the YouTubeaccount, lululemon will be able to show consumers the benefits of paying a premiumfor a premium product and will also integrate the company’s products into the entirecampaign.QR codes can also be included in lululemon’s e-newsletters and direct mailingpieces to link back to already created and relevant content, such as the previouslymentioned YouTube videos, to tie the campaign together as well. 30
  31. 31. Media RelationsNational and LocalForming quality relationships with the media will be an ongoing effort both thenational and local levels. These relationships will be formed through both traditionalpublic relations efforts such as press releases and new social media efforts throughFacebook and Twitter.In order to determine who lululemon should make contact with, Bulldog Marketingwill create a national-level key influencer map. This map will also be createdat the local/regional level by the regional social media manager and the storeeducators with the help of Bulldog Marketing so that each store will have a betterunderstanding of whom to form relationships with in order to influence the mostpeople in its community. 31
  32. 32. National Key Influencer Map 32
  33. 33. Digital MarketingNationalDue to our objective of increasing website traffic and online sales, a national digitalmarketing campaign is crucial. Bulldog Marketing wants to integrate both GoogleAdwords (paid search) and natural search, or search engine optimization, campaignsinto the overall marketing strategy. This can be outsourced to an Internet-specificadvertising agency, making it more economical for lululemon.An Adwords campaign will be created to capitalize on keywords people search forwhen looking to buy workout apparel in order to give lululemon a greater onlinepresence and increase conversions on its website.The natural search campaign will be created to drive lululemon’s website higher onsearch engines rankings for keywords also pertaining to yoga, workout gear, andhealthy lifestyles in general. This will also strengthen the brand’s online presenceand drive traffic to its website.Groupon will also be used in the campaign as a way to drive traffic lululemon’se-commerce site and build national brand awareness. Bulldog Marketing plans to lista Groupon at a national level, redeemable either on the lululemon website or at thecustomer’s nearest store location. Our approach will beto offer Groupon customers a 50 percent discount onlululemon apparel—pay $25 and receive $50 worth ofmerchandise. Since most of lululemon’s merchandiseis greater than $50, the average customer will spendmore at the store. We plan to run the Groupon inJanuary, since that is when most people have maderesolutions to lead a healthier lifestyle in the comingyear. Our hope is that while lululemon is offering itsproducts at a discount, the difference in revenue willbe made up in additional sales on top of the discountand increased brand awareness. 33
  34. 34. Special EventsNationalBecause this campaign will not focus on traditional media like print and billboards,staging special events will be critical in fulfilling our objectives. The largest eventplanned at the national level will be a celebration of National Yoga Month, which isduring the month of September. Promotion for all of these events will come throughsocial media, e-newsletters, and direct mailing campaigns.To kick off the festivities, lululemon will launch a month-long social media contest.Customers will be encouraged to answer the question “Do You lulu?” by snappinga picture of themselves doing yoga in an unusual place or in their lululemon gear.Participants will then upload the picture to Facebook, Flickr, Twitter, or Instagramusing the hashtag #DYL2011. The lululemon national spokesperson and select brandambassadors will choose the best pictures, determined by the presence of lululemonapparel, creativity, and uniqueness. The top 50 photos will be recognized and sharedby the company in special online photo albums, where lululemon customers canthen vote on their favorite photos. The top three finishers will receive special prizepackages that include a lululemon gift card and select merchandise.Special in-store events will also occur each week during National Yoga Month. Anexample of one of these week-long in-store events is a social media scavenger hunt.lululemon customers can participate in the scavenger hunt throughout the designatedweek by signing up at their local store. To complete the contest, participants mustsolve riddles that will lead them to certain locations within their cities (specificallyto businesses that are strategic partners with lululemon). Once at the location,the participant will check-in via SCVNGR, take a photo of herself or complete anactivity at the location, and move on to the next place before returning to lululemon.Every participant will receive specialty items and the names of participants whocomplete the scavenger hunt during the week will be entered into a drawing to wina lululemon gift card.The month of activities will culminate in an attempt to break the Guinness World 34
  35. 35. Special EventsRecord for the most people doing yoga at one time. To undertake this, lululemonwill work closely with Guinness to plan and monitor the official record attempt. OnSaturday, Sept. 24, lululemon stores across the country will begin the attempt at 4p.m. eastern time. Yoga instructors in each store will lead customers in a 20-minuteyoga routine, with hopes of breaking the current world record of 29,973 people.LocalSpecial events play a large role in the campaign’s local focus. Events at the local levelwill be both regional and store-specific.Regional events will include a regional yoga conference. Every U.S. region willorganize a conference between March-May 2012; the location will be at an areaspa or resort center. Each retreat will last for three days and will feature speakers,yoga gurus, yoga exercises, general mediation, and other relaxation activities. Arealululemon stores will partner with yoga studios and health food retailers to organizethe conference. Customers can sign up to attend the weekend getaway for a minimalfee, while local brand ambassadors can attend for free.Stores will also be required to participant in at least one special in-store event permonth; however, managers may plan more than one event per month if they sochoose and if their store budget allows. No event should be repeated at a particularstore location more than twice during the year. Managers can create their own in-store events, but they must be approved by the appropriate marketing executivesbefore they are organized. Examples of these in-store events include the following:• Partnering with a local health food store to offer a healthy, fresh in-store breakfast to customers before a morning run or free yoga class• Organizing a picnic in the park event featuring an outdoor yoga class and light refreshments• In-store fashion shows, where employees can model and display the latest lululemon apparel 35
  36. 36. Trade ShowsNationalStaying current with the developing technologies, changing market preferences,and capturing new leads are musts to survive in this industry. This portion of thecampaign focuses on forming strategic partnerships with gyms, fitness centers, andworkout studios that stay in line with lululemon’s mission and goals. Because thisis more of an industry-wide experience, lululemon will be participating in a tradeshow--the National Fitness Trade Show.The annual National Fitness Trade Show is held every year in Reno, Nevada in mid-August. Here, lululemon can expose itself to top fitness products and equipmentfrom leading manufacturers ans gain insight into what competitors and consumersare focusing on.lululemon will purchase the attendee list for the show. After selecting the top 50attendees that directly align with lululemon’s overall target and goals, lululemonwill then develop a pre tradeshow promotion plan. This pre-show promo, promotingthe question, “Do You lulu?,” will be tailored to each of the attendees and provide anextra incentive for them to visit lululemon’s booth at the show. This pre-promotionwill be delivered to the selected 50 attendees two to four weeks prior to the event.During the event, lululemon will develop a space that will not only grab the visitor’sattention, but will also clearly communicate the essence of lululemon in an effectiveand efficient way.Attendees will also be encouraged to leave their contact information after meetingbriefly with on-site lululemon educators. At the show, key lululemon employees willbe tasked with exploring and researching the show as a whole. Their main purposeswill be to take note of competitors’ developments and visitors’ behaviors andpreferences, as well as gain ideas from any interesting or innovative products thatare showcased. Post event, lululemon will also develop a post-show strategy. Thiswould include connecting with any of the selected 50 who did not visit lululemon atthe show, and driving home the connections lululemon was able to gather. 36
  37. 37. Direct MailingLocalThis marketing tactic will be used to directly increase the participation andawareness of lululemon’s National Yoga Day and Guinness World Record Day eventsat a local level.The mailing list is the most important element in any direct mail package. lululemonwill gather its contacts from addresses obtained in-store--e-mail marketing forin-store exercise classes, social media connections etc. This list of lululemon’scustomers or clients is one of lululemon’s greatest assets and will be treated assuch. By targeting only contacts who have previously connected with lululemonbefore, the direct mail piece will increase the success of the direct mail programwhile minimizing the risk of failure. These contacts already have a relationship withlululemon, and the goal will be to strengthen this relationship by making them anoffer and stimulate their interest with a call to action.The “offer” of the direct mail piece is the next most important aspect of this package.lululemon’s strategy is to deliver a copy that is quick, to the point, and easy tounderstand. The bold typeface combined with lululemon’s iconic red will help tograb the receiver’s attention and make them hesitate before making a decision aboutthe mail piece. lululemon’s strategy is to hone in on the element that their targetmarket values most--image. The offer will include the question, “Do You lulu?,” inwhich the participant will receive local, national and even global recognition forher participation. This directly feeds the target consumer’s need to be viewed as anathletically hip and trendy individual.The sample direct mail piece is in promotion of lululemon’s Guinness World RecordSample Direct Mail Piece (Appendix 3)Day. The front of the piece will include the recipient’s address, what lululemon wantsthe recipient to do, and a QR code that will direct the reader to a specially made,mobile-friendly landing site that will give more detailed information about theevent, direct the recipient to their nearest lululemon store, and keep track of which 37
  38. 38. Direct Mailingrecipients utilized the QR code for lululemon’s references. The lululemon addressand contact information on the front side will also be tailored to the recipient’snearest lululemon store location.The back of the direct mail piece is an interactive message. The background for thisimage consists of the lululemon mantra that is familiar to all of its customers. Thestylized starburst in the middle of the piece will be clear and simple in contrast tothe busy background. It will feature an attention-grabbing phrase with the questions“Do You lulu?” The starburst opens to unveil a detailed message of what lululemonis trying to promote, how it will be achieved, and what the participant will receivefor her participation. In order to appealto our target market’s direct need ofprojecting a hip, trendy, and fit image,lululemon will feed the target’s desiresto show their peers their involvementwith world-changing and trend-settingactivities. lululemon will also providean exclusive gift that will be availableonly to event participants. This gift willbe easily portable, such as a customizedkeychain, to further help lululemon’starget market project and cast an idealimage. 38
  39. 39. Specialty ItemsNational and LocalSince lululemon will be involved in community events, yoga conferences, andthe National Fitness trade show, specialty items will be a tactic of our campaign.Because lululemon stores sell smaller products like water bottles, the specialtyitems the campaign uses should reflect lululemon’s culture and relate that cultureto consumers. Items would all bebranded and could include elasticheadbands, tote bags, notebooksfor daily affirmations, stopwatches,and heart monitors. We wouldalso make key chains that sportthe lululemon brand and phrasesfrom the company’s manifesto like“Friends are more important thatmoney,” “Sweat once a day,” and“Breathe deeply.”These specialty items will only be given to those individuals that participate in thelululemon “Do You lulu?” campaign special events—whether it be doing yoga withthe yoga bus, participating in the city-wide scavenger hunt, or visiting the tradeshow booth. We want to ensure that each person who receives the item will be apotential customer and an asset to the overall lululemon brand image. 39
  40. 40. Public RelationsNationalLululemon would benefit from a public relations makeover. This large endeavor willneed to be done on a national level with the aid of a professional public relationsfirm to develop a detailed year-long campaign. The goal of the public relations tactic is to align closely with lululemon’s key influencers in order to increase lululemon’s brand awareness, customer base, and long- lasting connections nationally. Following the key influencer map that Bulldog Marketing has developed, lululemon will research and hire a public relations firm to develop strategies that stay true to lululemon’s goals and values. Some ideas may include sending clothes to key influencers like Michelle Obama as well as social media key influencers like bloggers in order to get featured in publications, in physical and digital form, about lululemon’s other marketing tactics, events, products, and stores. The public relations firmwill also be tasked with sending out traditional press releases to the identified keyinfluencers about the various events lululemon will have throughout the year--likethe Guinness World Record day (Appendix 4). 40
  41. 41. Guerrilla MarketingNationallululemon will hit the road with guerrilla marketing. A custom, specially outfittedlululemon bus will be sent across the country on a nationwide tour. The bus willspend the entire year traveling the country, making stops at a majority of U.S. citieswith lululemon stores. Aside from the bus driver, a yoga instructors and two brandambassadors will be aboard the “Do You lulu?” bus. When the bus arrives at itsdestination—and at various pit stops during the road trip—the instructors willlead impromptu yoga classes, either at a location close to where the bus is parkedor on the roof of the vehicle, as it will also be equipped to support a class. Forexample, the bus could park outside of a grocerystore, local park, or shopping mall and lead ayoga class on its roof. The yoga bus may or maynot actually visit a lululemon store when it visitsa city, but when interested individuals visit thebus and participate in a yoga class, they will begiven branded specialty items like water bottlesor headbands.LocalLocal stores will engage in guerrilla marketing tactics, specifically in organizingyoga flash mobs within their cities. For example, Houston area lululemon stores willcollaborate to come up a date, time, and location of a flash mob; perhaps organizersdecide that at 4 p.m. on May 5, 2012 at Hermann Park, as many people as possible willgather and hold the downward-facing dog pose for five minutes before dispersing.Details about the event will be spread in true flash mob fashion, via social mediaand word-of-mouth. lululemon employees and brand ambassadors will participatein these flash mobs wearing their lululemon apparel, but other than this subtle nodto the company, no other branding of the event will occur. Flash mobs should beorganized no more than four times per year. 41
  42. 42. National SpokespersonNationallululemon will employ Alison Sweeney as its national spokeswoman. Sweeney is the34-year-old star of the soap opera Days of Our Lives and the host of the televisionshow The Biggest Loser. She is also a young mother and relateable to the Mother Zentarget. Sweeney fits the profile of a current lululemon customer and will increase thebrand’s awareness on a national level. Currently, Sweeney has a healthy eating booktitled The Mommy Diet, as well as a website where she blogs about topics related toliving a healthy lifestyle, both of which are geared toward our target market.Sweeney is already a knownfan of the lululemon brand—she tweets about the productsand even wears them on TheBiggest Loser. Because of this,we feel that she should becontracted to represent thebrand. As lululemon’s nationalspokesperson, Sweeney willbe required to attend nationallululemon events and contributeto the social media efforts. Thiswill include appearing at certaintour stops of the lululemon busand high-profile National YogaMonth events (like the Guinness World Record Day) as well as contributing to socialmedia through taping YouTube videos, blogging, and tweeting. She will also wearlululemon apparel during her hosting duties on The Biggest Loser. 42
  43. 43. July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June 11 11 11 11 11 11 12 12 12 12 12 12 Community Relations PE Class Instruction Komen Sponsorship Social Media Media Relations Digital Marketing Adwords Natural Search Groupon Special Events Yoga Conferences National Yoga Month In-Store Events Trade Shows Timeline National Fitness Show Direct Mail Specialty Items Public Relations Guerilla Marketing Yoga Bus Flash Mobs National Spokesperson43
  44. 44. National BudgetNational Budget BreakdownSocial Media $520,000Social Media Managers Salaries (5 Regions) $250,000Handbook Creation and Training $250,000QR Code/ Content Creation and Distribution $20,000Media Relations $15,000Influencer Map Creation and Training (National and Regional) $15,000Digital Marketing $50,000Adwords/Natural Search $50,000Groupon $0Special Events $2,000,000National Yoga Month $2,000,000Trade Shows $30,000National Fitness Show $30,000Specialty Items $600,000Public Relations $175,000Sent Apparel Costs $25,000Year-Long Campaign $150,000Guerilla MarketingYoga Bus $500,000Outfit the Bus $200,000Diesel Costs $6,000Driver Salary $28,000Yoga Instructor Salary $32,000Brand Ambassadors Salary (2 people) $50,000Food and Lodging Expenses $50,000Other (specialty items, insurance, etc.) $134,000National Spokesperson $5,000,000Individual Store Allocation $7,000,00070 Stores, $100,000 Each for EventsContingency $1,110,000 TOTAL: $17,000,000 44
  45. 45. Local BudgetLocal Budget BreakdownCommunity Relations $15,000PE Class Instruction $0Komen Sponsorship $15,000In-Store Events $48,000Twelve Events/Year x $4000/Event $48,000Special Events $10,000Regional Yoga Conferences (Each Stores Contribution) $10,000Direct Mail $9,500Direct Mail Pieces $3,000Monthly Newsletters $6,500Contingency $17,500 TOTAL: $100,000 45
  46. 46. SummaryBulldog Marketing’s goal is to increase lululemon’s brand awareness in the while staying true to lululemon’s unique community-based marketingstrategy, company culture, and individual store identities.lululemon’s strength lies in the fact that it produces high-quality products withinnovative features and styles, has a well-trained staff for each carefully selectedpremium store location, and has a large amount of local control for retail andmarketing strategies. However, this individual approach to marketing has resultedin weak brand recognition in the U.S. and a slower growth strategy. Having selectiveretail locations may give lululemon the position as a premium brand with premiumpricing, but it also reduces the number and accessibility of the few retail outlets.Also, because lululemon’s marketing strategy is heavily focused on work-of-mouthand grassroots marketing styles, it must be very conscious of what its consumerswant and need, as well as what those consumers are saying about them.lululemon has a narrow focused customer type. The company’s target marketconsists of health and image conscious 18-34 year-old women. Bulldog Marketinghas identified two primary groups within this market: the “Zen Y”er and the MotherZen. Both groups of women are trend conscious and pride themselves on projectingan image of being young, trendy, and healthy.Bulldog Marketing plans to take all that is unique to lululemon and expose it by askingthe simple question, “Do You lulu?” Through our national and local marketing plan,Bulldog Marketing strives to elevate the lululemon brand in the U.S. while stayingtrue to lululemon’s historical marketing effort. This campaign honors lululemon’sstrategy of giving more power and control to the stores on a local level whilemaintaining a consistent brand image nationally. This detailed strategy includesmarketing elements that are developed specifically for all lululemon stores bothcollectively and individually. The campaign will rely heavily on social media, specialevents, and guerrilla marketing tactics, all of which pose the question: Do You lulu? 46
  47. 47. ReferencesBogomolny, Laura. “Toned and Ready: Lululemon Transitions | Managing |Strategy | Canadian Business Online.” Canadian Business Online: Daily FinancialMarkets Breaking News Articles and Technology Trends in Canada. Web.<>.“Lululemon.” Wikinvest. Web. <>.“Lululemon 10K.” Web. <>.“Consumer Purchases of Sporting Goods by Category (PDF File) - National SportingGoods Association.” Welcome to NSGA - Serving Retailers and Team Dealers in theSporting Goods Industry since 1929 - National Sporting Goods Association. Web.<>.“The United States Athletic Apparel Market Is the World’s Largest SportswearMarket, Accounting for 41% of Total Sales | Business Wire | Find Articles at BNET.”Find Articles at BNET | News Articles, Magazine Back Issues & Reference Articles onAll Topics. Web. <;col1>.“Exercise Apparel Sales Fall Slightly.” Plunkett Reasearch (2010). Web.<>.“Lululemon Athletic Inc. Profile.” Hoovers. Web. <>.“Nike, Inc.(NKE) Annual Report (10K) Quarterly Report (10Q).” MorningstarStock, Mutual Fund, Hedge Fund, ETF Investment Research. Web. <>.
  48. 48. References“Under Armour, Inc.(UA) Annual Report (10K) Quarterly Report (10Q).” MorningstarStock, Mutual Fund, Hedge Fund, ETF Investment Research. Web. <>.“Adidas, Inc.(ADDY) Annual Report (10K) Quarterly Report (10Q).” MorningstarStock, Mutual Fund, Hedge Fund, ETF Investment Research. Web. <>.“The Growth of Yoga.” Yoga Journal. Web. <>.Chapman, Mike. “The True Value of a Facebook ‘Like’ Do Fans on Brand PagesGenerate Significant Returns?” Adweek. Web. <>.“Facebook Shares Are Worth Almost Three Times More Than Tweets ForE-Commerce.” TechCrunch. Web. <>.“ComScore: YouTube Now 25 Percent Of All Google Searches.” TechCrunch. Web.<>.“How Brands Are Using Instagram to Reach New Audiences.” Social MediaNews and Web Tips Mashable The Social Media Guide. Web. <>.