Lululemon Hand out

1. Jacob Gordon, Derek Borghi, Mago Gadzhiev, and Jade Taraboulsi
Problemroblem
Problem- Luon Pant Recall
- Customer complaints about pants being too sheer / see through
- Doesn’t meet the high standards set by Lululemon
- Defective pants resulted in multiple class action lawsuits by the investors because lululemon did not disclose
information about the defective products.
- Negative attention towards the Lululemon brand
Solutions
- Credit customers affected and offer them a gift to regain their business.
- Redesign Luon Pants and implement extensive testing before product release.
- Stop negative feedback and regain the high standards related to the brand name.
Solution 1 – Credit customers and offer a complimentary gift
- Hold press conference stating the issue and how it came to be.
- Offer store credit to customers who purchased the defective pants as well as give them the choice of a
complementary product (headband)
Solution 2 – Redesign Luon Pants and implement extensive testing before future product releases
- Hold press conference and make a sincere apology to the public
- Redesign Luon pants and market them accordingly.
- Test redesigned pants on different models (both height and weight to ensure a quality final product)
Solution 3 – Stop negative feedback and regain the high standards related to the Lululemon brand name.
- Remove all negative feedback online
- Start new marketing strategies, implement sales and promotions to regain customers.
Final Solution
We believe the best way to regain the customer were lost due to this issue is to make a sincere apology and
offer them a credit for their defective Luon Pants as well as a free headband with their next purchase. This
will give the consumer incentive to come back to the store even if they were unhappy.
How to implement
- Hold Press conference with CEO and new head designer
- Explain how the new pants aresuperior to the defective ones.
- Offer the sales and incentives to the customers that purchased the defective pants.
Start sales and implement sales and promotional incentives.