- Lululemon is a Vancouver-based athletic apparel company founded in 1998 that sells yoga, running, and fitness clothing. It currently has 289 stores across 5 countries and is focusing on international expansion. - Lululemon's target market is primarily women ages 18-34 who are college-educated, professional, and have a moderate to high income. Men have become a secondary target market. - Since going public in 2007, Lululemon's stock has significantly outperformed the S&P 500 and its competitors. It has experienced rapid revenue and store growth but faces challenges from quality issues, competition, and limited brand recognition in some markets.

2. COMPANY INFORMATION
• Based in Vancouver, Canada
• Founded in 1998. Public Company (LULU: NASDAQ)
• Sells Yoga, Spin and Run Apparel
• First Store Opened in 2000 (in Vancouver)
• Currently 289 stores in 5 different countries (Canada, US, UK, Australia, NZ)
• Recently Opened showrooms in Germany, Singapore, Netherlands and China.
• Mission: “To help people live longer, healthier, fun-filed and stress free lives.”
• Current Marketing Strategy: Community-Based, Grass Roots Branding Strategy
Revolving Around Retail Outlets.
SOURCE: COMPANY WEBSITE

3. TARGET MARKET
• PRIMARY”CORE” MARKET
• Female Age 18-34
• College Educated
• Professional
• Moderate to High Disposable Income (Not Cheap)
• SECONDARY MARKET
• Women (Other)
• Girls
• TERTIARY MARKET
• MEN (18-65)
SOURCE: SEE NEXT 2 SLIDES

4. FROM ALEXA.COM
DEMOGRAPHIC RESEARCH

5. COMPANY PERFORMANCE
• Since August 2007, the stock is up over 240% VS the S&P 500 up only 36.6%
• Over The Same Time Period. Competitors Like NIKE (NKE), GAP (GPS) and
UNDER ARMOUR (UA) are up 238%, 132.9% and 321.5%, respectively.
• Revenue US$1.37 Billion (FY 2013)
• Fastest Growing Sales Contribution is Online (Currently 16.5% of All Sales)
SOURCE: NASDAQ.COM (LULU: ANNUAL REPORT 10-K)

6. STORE GROWTH VS. SAME STORE SALES GROWTH
SOURCE: MARKET REALIST

7. SWOT ANALYSIS
STRENGTHS Innovator. Has innovation in it’s DNA
Community Involvement
High Quality Products (despite recall)
WEAKNESSES Image Hurt by Scandals
High Prices
Seen as a Yoga Brand despite efforts to Expand
OPPORTUNITIES Sports Apparel Industry Poised to Keep Growing
Trend Toward Healthier, More Active Lifestyles
- Older Demographics and Women Becoming More Active
International Expansion
THREATS Companies with Better E-commerce
Sports Clothing Industry is Highly Fragmented
Constantly Changing Landscape (fashion trends, tough
competition and more price-conscious shoppers)

8. Active-wear/Yoga
Sports
ExpensiveInexpensive
Athleta

9. CHALLENGES
Some Quality Control Issues Impacting Brand Image
Limited Brand Recognition
Stiff Competition
Limited geographic market penetration
Limited visibility online

10. RECOMMENDATIONS
Focus on investing in E-commerce not just Social Media.
§ The company always talks about how many stores it is opening.
§ All together shift focus to “Etailing” in order to expand more rapidly.
A larger “International” advertising strategy should be developed
§ Define the brand as a multi sport lifestyle brand.
§ Focus the ads towards the E-commerce platform as opposed to the stores
§ More visibility online (banner ads, more aggressive Adwords, Affiliate program)
Social media should attract more than one segment

11. E-COMMERCE LULULEMON VS GAP
• LULU Online Sales 226MM Vs. GAP Online sales $2.1B
• LULU Response time 2.20 seconds Vs. 1.72 seconds for GAP
• LULU Conversion Rate 3% Vs. Gap conversion rate of 3.3%
• LULU Monthly Emails 7 Vs. 27Monthly Emails for Gap
• LULU Monthly Visitors 1.2MM Vs. 34MM Visitors for the Gap
• LULU Affiliate Marketing CJ Vs. Not Available ????
Source: Internet Retailer