A market research presentation

1. LululemonBy: Connor Finnegan, Luke Doverspike,
Alex Hiltz, Lily Pabo, Bridget Stockwell

2. Agenda
• Industry Overview/Background
• Problem Definition
• Research Objectives
• Secondary Research
• Research Design
• Objectives
• Research type/why
• Data Analysis
• Findings
• Tables/Graphs
• Conclusion/Recommendations

3. Introduction
 Founded by Chip Wilson in Vancouver, Canada: 1998
 REAL TIME NET WORTH. $3.6B. as of 2/25/19
 Yoga-inspired athletic-apparel company for women and
men
 Community space where customers can learn and
discuss healthy living, mindfulness, and living a life of
possibility
 Products: pants, tops, shorts, jackets, accessories: bags,
socks, yoga mats, etc.
 Premium, high quality clothing with a high pricing
strategy
 Rely heavily on Word of Mouth and their high reputation
to market to consumers
 Sizing up to a 14 for women

4. ProblemDefinition
 Lululemon is neglecting to capture a
larger audience by not appealing to a
broader demographic of men and the
plus size industry.

5. ResearchObjectives
 Establish an effective marketing
campaign towards broadening its
demographic target market
 To identify, through exploratory
research,why men do or do not buy
this product
 Determine if Lululemon should modify
its prices and sizes for future customers

6. SecondaryResearch-MenSide
 2015-opened the first men’s store in
downtown Manhattan
 Lululemon quietly rolled out its men's line at
the beginning, but lately they've been in
growing the options.
 In the past five years, the segment appears
to be a game changer for the business.
 Potential Billion Dollar industry, according to
Forbes Magazine, CEO Laurent Potdevin
 Nike, Under Armour, Adidas dominate the
men’s segment of the market-->
 https://www.businessinsider.com/lululemon
-opening-mens-stores-2013-6 - 6 reasons
why men won’t shop in Lululemon

7. SecondaryResearch-PlusSize
 Average woman waist circumference - 38.6 inches as of 15’-16’
 Lululemon’s largest size is a 14/XXL and is 35 inches
 Plus size market value is expected to grow, on average, 1 million dollars
a year.
 Statista survey
 97% of women who identified as a size 14 or larger would think
positively if clothing would offer bigger sizes.
 72% think that companies do not have the average American
woman in mind when creating clothing.
 80% would purchase their favorite brand if offered larger sizes

8. SecondaryResearch: Revenue Potential
and IndustryTrends
• In 2016 very few people knew about Lululemon
• 6th highest generating apparel brand
• Lululemon Evaluation
• Brand Value= 3.91 Billion Annual revenue= 2.65 Billion
• Activewear represents 24% of total apparel industry sales and
is forecasted to grow through 2019
• Lululemon is expected to gain 4.08 billion in revenue in 2019
• Gain 5.17 billion by 2022
• Millennials are spending less on apparel overall, but are
willing to drop more cash on “athleisure” brands like
Lululemon, Athleta or Lorna Jane.

9. SurveyFindings:
160Responses
 Sampling Used: Convenience, Non Probability method
 What brands consumers typically purchase for athletic wear
(Frequencies): 89 Nike, 68 Under Armour, 52 Lululemon, 49
Adidas, 15 Puma, 9 Gymshark
 Where consumers purchase athletic wear (Frequencies): 32
Online, 123 In-Store, 11 Do Not Purchase, 1 Other
 Aware Lululemon sells mens clothing: 42.1% Yes, 57.9% No
 51.8% disagree with the statement: I believe Lululemon is
accommodating to all body sizes
 Use Athletic clothing: Exercise= 76.3%, I don't typically wear
athletic clothing= 3.1% ,Comfort Leisure=76.3%, Other= 2.5%
 51.9% of consumers believe the clothing is of high quality, but
65.7% do not think it is reasonably priced

10. Univariate
Analysis-
Demographics  Gender:
 Almost all respondents were female!
 144/160=90%
 Some respondents were male
 16/160=10%
 How come mostly women responded?

11. UnivariateAnalysis-Demographics
 Age Chart:
 34% ages 51-60
 19% ages 18-22
 16% ages 23-29

12. UnivariateAnalysis-
Demographics
 Household Income:
 More than 50% possess
income of +$100,000
 Second most respondents
consist of income between
$60,000 and $79,999

13. UnivariateAnalysis-
Demographics
 Highest Level of Education:
 Majority have bachelors
degree(43.04%)
 Second most have some
degree(31.65%) and Masters
degree(16.46%)

14. Cross-Tab Correlation
Is there an association between a consumer’s income and if they believe the clothing is reasonably priced?

15. Cross-Tab Correlation
Is there an association between how often consumer’s exercise and how often they shop for athletic wear? Yes.

16. Compare Means: IndependentT-Test

17. Compare Means: IndependentT-Test

18. Managerial Recommendations
● Pursue new ways to cater to men
○ Use prominent male influencer to promote Lululemon to Men
○ Engage with male customers for more feedback
● Integrate a larger variety of size options for women over a size 14
○ Provide sizing charts to customers
○ Social Media Blast using plus size models to increase awareness
● Integrate a multitude of pricing options within their current product line
○ Looking to cater to variables such as income/age
○ Expand reach to age segments that didn’t have many respondents

19. Conclusion
 Secondary Research Concludes:
 Lululemons largest size is a size 14 which is 35 inches
 Men’s target segment for Lululemon is a potential billion dollar industry
 Primary Research Concludes:
 Women would develop a positive frame of mind towards Lululemons if
they developed greater size variation in products
 Men are unaware of Lululemon’s presence in the Men’s clothing industry
 High prices are contributing to negative reactions to potential customers
and infrequency of purchase

20. Questions? Thank You

21. References
 https://www.forbes.com/sites/davidhochman/2017/05/30/l
ululemon-thinks-its-mens-line-can-become-a-billion-dollar-
business-will-guys-buy-100-yoga-pants/#782b8ad65d83
 https://www.statista.com/topics/2975/lulule
 https://www.businessinsider.com/lululemon-opening-
mens-stores-2013-6
 https://www.hitwise.com/en/articles/millennials-love-
activewear/