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Lulu Lemon Expansion to London
 

Lulu Lemon Expansion to London

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    Lulu Lemon Expansion to London Lulu Lemon Expansion to London Presentation Transcript

    • LULULEMON’S ATHLETICA Talya Levenson, Alex Wenger, Larissa Portaluppi, Daniela Vergoosen MKTG 445: Global Makreting
    • BACKGROUND  Founded in Vancouver in 1998 by Dennis Wilson  Specialize in technical athletic apparel for yoga, running, walking, dancing, cross- fitness, and Pilates  Every Lululemon location has strong ties to local community  Goal= “Train our people so well that they could in fact positively influence their families, communities and the people walking into our stores”  Lululemon encourages healthy lifestyle choices  Having set goals = what the Lululemon culture is all about
    • PRODUCT ITSELF  High quality seaming and stitching  High quality fabric and technologies • Luon®, Swift and Luxtreme™ • 6 Natural Blends • Mesh and COOLMAX®
    • PRODUCT  The clothes will be used more for running than yoga  People in London wear more muted colors in the fall and winter  In the spring and summer people start wearing colors  Need to adapt the tags to include U.S., UK and Canadian sizes
    • HOFSTEDE’S CULTURAL DIMENSIONS 0 10 20 30 40 50 60 70 80 90 100 U.S. Great Britain Canada Individualism Power Distance Uncertainty Avoidance Masculinty
    • 5 REASONS FOR SUCCESS 1. Has developed a social media presence through various platforms 2. Connects through establishing relationships with customers. 3. Use of real people to promote products 4. Welcomes and responds to public feedback 5. Blog has significant space dedicated to educating customers about the yoga lifestyle
    • DEMOGRAPHICS  Temperature= Moderate and more than one-half of the days are overcast  Very diverse: 59.8% White, 20.9% Asian, 15.6% Black, 6.6% Indian  London’s population is expected to exceed 9 million by 2031  Population= younger than rest of the UK by 2/3 and 64% are aged under 44
    • STATISTICS  Walking activity in London  Travel patterns= 31% of trips in London are made on foot  In outer London the walk share of trips is 64% higher for people without a car or household with just 1 car in the family
    • TARGET MARKET  Londoners that like to buy and spend in high end luxury boutiques  Women ages= 25-50  High disposable income  Fashion forward/Trendy
    • DISPOSABLE INCOME  London’s economy is outperforming the rest of UK by 12.4%  London contributed 21.9% of UK’s output  Has the highest household income per head (nearly 30 per cent higher than UK average)  Inner London’s average highest disposable income is at £33,323
    • PRICING STRATEGY  Currently use Value Added Pricing, they do not cut costs to make lower quality products  Add extra features ex: Adjustable straps to differentiate themselves from that of competitors  Prestigious and exclusive product in their category/ not found in every city which adds to exclusivity
    • PRICING STRATEGY
    • PRICING STRATEGY CONT’D  London currency is stronger than U.S.  Average dollar value compared to pound in 2012  $1.52 = £1  Add 35-45% to prices to account for higher maintenance, operation, and facility costs in London  Decision: keep prices stable regardless of daily exchange rate fluctuations  http://www.x-rates.com/graph/?from=GBP&to=USD
    • DISTRIBUTION CHANNELS
    • STORE LOCATION  London has the highest disposable income per household  Narrowed it down to 2 locations: 1) Chelsea’s Kings Road 2) Regent Street
    • PROMOTION STRATEGY  Juice Parties  Free Yoga classes, and information sessions  KEY= social media: http://www.youtube.com/watch?v=QUF36chCPuA  Get “Made in Chelsea” celebrities to promote products  Touch Screen TVs
    • THANK YOU May the yoga breath be with you! Namaste
    • WORKS CITED  https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html  http://www.londoncouncils.gov.uk/londonfacts/default.htm?category=2  http://www.tfl.gov.uk/assets/downloads/Walking-in-London-report-May-2008.pdf  http://www.visitlondon.com/things-to-do/activities/shopping/top-shopping-destinations  http://www.kxlife.co.uk/club  http://www.ons.gov.uk/ons/rel/regional-trends/regional-economic-indicators/march-2013/sty---infographic-summary.html  http://www.lululemon.com/about/  http://smbp.uwaterloo.ca/2012/10/five-elements-of-lululemons-social-media-success/  http://www.reuters.com/article/2013/10/08/us-lululemon-outlook-analysis-idUSBRE99712S20131008  http://www.Lululemon.com http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&ved=0CCsQFjAA&url=http%3A%2F%2Fwww.bhf.or g.uk%2Fplugins%2FPublicationsSearchResults%2Fidoc.ashx%3Fdocid%3De9994c21-ec6c-4fad-b741-ad96bacd69ed%26version%3D- 1&ei=DGifUvTkH-vLsQTGtYGABg&usg=AFQjCNFUGYgygRlBgu4NRJXrOLE3IzjC1w&bvm=bv.57155469,d.cWc  http://www.accenture.com/us-en/Pages/insight-enabled-uk-shoppers-online-buying-report.aspx  http://www.dailymail.co.uk/femail/article-2513436/Are-yoga-pants-new-jeans-How-trend-led-workout-clothes-making-fashion- statements-outside-gym.html  http://www.businessinsider.com/meet-sweaty-betty-londons-pricier-lululemon-2013-12