Lululemon Brand Management Assignment

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University of Geneva Certificate in Branding and Digital Marketing assignment for Prof. Langner.
Lululemon's brand identity analysis using Esch's Brand Steering Model
Seza AYDIN ONUR

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Lululemon Brand Management Assignment

  1. 1. + Lululemon Athletica Brand Steering Wheel Seza AYDIN-ONUR UNIGE CAS Branding & Digital Marketing
  2. 2. + 2 The Company  Founded in 1998 by Dennis “Chip” Wilson in Vancouver Canada  It designs technical athletic apparel and runs its own retail operations  The company owns 211 retail stores in US, Canada, Australia, China, Singapore, New Zealand, Germany, Netherlands and the UK  14% of revenues come from its online store www.lululemon.com  6383 employees in 2012  Net revenue has increased from $40.7 million in fiscal 2004 to $1,370.4 million in fiscal 2012  This success has its root on its strong brand http://files.shareholder.com/downloads/LULU/2929469585x0x677637/64A2CB6B-0B78-41FD-A536B99C8245F022/2012_Annual_Report.pdf
  3. 3. + The Story  The founder “Chip” discovers yoga and finds out that the cotton clothing most yogi’s use, is a misfit  Opens a store in Vancouver, designing its own technical yoga outfits  The store becomes a yoga studio at night  The deep yoga connection grows with the brand  To this date lululemon maintains a close relationship with yoga instructors and studios
  4. 4. + The product offering  The company is most famous for its women’s yoga pants
  5. 5. +  Roots in yoga Premium and feminine  Distinctive in-store experience  Community  lululemon athletica stands for leading a healthy, balanced and fun life. Innovative technical materials  The Brand:  Focus on personal growth  Education
  6. 6. + Brand Facts  Superior technical product  Stores offering an athletic experience  Staff offering educations  Community roots through professional trainers  Premium positioning
  7. 7. + The Manifesto All values of the brand constantly communicated An evolving manifesto visible at all brand contact points Successful brand story telling
  8. 8. + The media mix  The brand heavily relies on two non-traditional channels to communicate its brand message:   Social media tools Community: Yoga studios and ambassadors  To this date, there is no use of TV or radio  The print ads run only in niche sports and health magazines Print Online Mobile Social Community In-store Events
  9. 9. + Print Advertising Used in few, niche athletic magazines, primarily in the US and Canada
  10. 10. Online + www.lululemon.com as e-commerce, company and brand site
  11. 11. Clear and multiple path presentation of products Organized by newness, gender, run/yoga, fabric and product type Commerce Communication Equal emphasis on communicating brand values and community tools “Education” about the brand identity and also product characteristics “Education” about yoga Links to community, ambassadors, yoga studios Link to the blog, where the community comes together
  12. 12. + Mobile - OM Finder app Directs the user to a yoga studio nearby Supports the yoga community by presenting studios, teachers
  13. 13. + Social - The Blog yoga. run. life. blog. Covering the whole lifestyle, communicating brand values Tips on cooking Sponsored events Practical guides on yoga and running Content by ambassadors, community
  14. 14. + Social - Facebook page of the brand Always in tune with www.lululemon.com Links to other social tools: the app, the blog, online OM finder, Instagram Almost 1.000.000 likes Able to generate “talks”
  15. 15. + Social - Facebook pages of stores Each store has its own Facebook page Allowing a community to gather around the store Increasing relevancy to consumer Considerable number of likes for each store
  16. 16. + Social - Twitter homepage Inline with the blog and the facebook page Also directs to twitter accounts for each country Almost 600.000 followers Regular communication of brand values through hash-tags like ♯thesweatlife
  17. 17. + Social - Instagram homepage Utilizes brand’s visual heritage Directs to the blog Almost 500.000 followers
  18. 18. Community + Close relationship with yoga, pilates, personal training, cross-fit, running instructors Free products, receive feedback for design Constant co-promotion: OM finder, in-store classes, ads, blog Ambassador as a presenter for the brand/products
  19. 19. + In-store Each store serves as a meeting point for the community Every week the store turns into a yoga studio for a free class Every week there is a weekly run initiated from the store Each employee serves as a mentor for the clients with goal setting sessions and practicing what the brand preaches.
  20. 20. + In-Store - The Shopping Bag Successful use of the reusable shopping bag to continue communicating brand values Became an urban phenomenon With lululemon even when not wearing lululemon
  21. 21. + In-store – The Store Front Very “verbal” store front Banners form the manifesto, current campaign
  22. 22. + Events Open air yoga sessions (this one in Central Park, NY) initiated by lululemon A half marathon, initiated by lululemon Experimenting with professional athlete sponsorships: Lululemon bike team, US men’s beach volley sponsorship
  23. 23. + Formal Integration Very poor formal integration Logo is used in a different color in different places Sometimes “lululemon”, sometimes “lululemon athletica”, sometimes just the logo Each store looks different
  24. 24. Content Integration Always a women ambassador + Usually a famous yoga instructor Doing a yoga pose The name of the pose Logo at the bottom, without name “yoga.love.run.peace.” tagline
  25. 25. + Not so unique visuals This is an extract from one of the brand ambassador’s personal page The same yoga instructor has posed similarly for Nike, with better product display
  26. 26. + Line Extentions Extending into Running Extending into Men  Successful extention  Unsuccessful extention  Similar problems on the product side with similar solutions:  Due to high association of femininity with the brand  Choosing running, a highly competitive market, instead of yoga, lululemon’s more established area    Competitors focusing on first men, then women Benefit of technical fabrics for female runners Shares the same brand values
  27. 27. + Based on online research and online presentations
  28. 28. + Positioning Statement lululemon Creating components for people to live long, healthy and fun lives.
  29. 29. + 2013: The year of major damages to the brand  Tremendous, continues growth up to this point  Hindered by a product quality issue:     The iconic yoga pants are sold See-through problems Acting too late to recall the products The problem arises a second time  Change in management, hurting investor trust  Major damage to the brand by founder:  Accuses customers of being too fat, therefore stretching the pants to much
  30. 30. + Effects of the crisis The ever increasing stock price comes down, has not recovered since.
  31. 31. + Effects on the brand  The quality issues damage the “superior technical product” perception  The insult on customers alienates customers, damages the community, belonging feelings AS A RESULT:  The “premium” price now perceived as “expensive” by customers  The consumers’ brand steering wheel shifts for the first time  Competitors fill in quickly
  32. 32. + Lululemon’s Brand Steering Wheel According to Lululemon, Customers
  33. 33. +
  34. 34. + Brand Attributes Offer’s Attributes  Technical athletic wear  Company’s Attributes Superior fit and style Community support  Lifestyle guidance Designer of better fit technical wear    A member of the community
  35. 35. + Brand Benefit Functional Benefit Psycho-social Benefit  Better look, better fit  Self-esteem  Enhanced athletic performance  Accomplishment  A healthier life  Belonging  Increased fitness  Sophisticated image  Durable products
  36. 36. + Brand Tonalities Personality Experiences Relationship  High self esteem  An educator  Yoga  Committed  Part of the lifestyle  Pushing the limits  Self-actualizer  Perseverance  Feminine  Relaxation  Demanding  Fitness  Affluent  Goal-setting
  37. 37. + Brand Iconography Visual Acoustic Heptic  Slim fit women  “Luon” fabric on skin  Yoga instructors  Sweat Yoga poses  The manifesto  Sophisticated style Mystic yoga tunes (instore, yoga studio)    High tempo gym music (at the gym)
  38. 38. + Brand Competence  lululemon athletica stands for leading a healthy, balanced and fun life.
  39. 39. + Brand Steering Wheel According to Lululemon What do I offer? •Better look, better fit •Self-esteem •Accomplishment •Belonging •Sophisticated image What are my attributes? •Technical athletic wear •Superior fit and style •Community support •Lifestyle guidance WHO ARE WE? Creator of components for people to live long, healthy and fun lives. How am I? •Self-esteemed •Self-actualizer •Demanding •Affluent •An educator How do I appear? •Slim •Fit •Sophisticated
  40. 40. + Brand Steering Wheel According to Customers at the end of 2013 What do I offer? •Expensive yoga wear •Better look, better fit •Self-esteem •Accomplishment •Belonging (for the fit) •Sophisticated image What are their attributes? •Yoga wear •Superior fit and style •Community support •Lifestyle guidance WHO ARE WE? Expensive yoga clothing for skinny women How am I? •Too much self-esteemed •Self-actualizer •Demanding •Affluent •An educator How do I appear? •Skinny •Fitness-addict •Sophisticated
  41. 41. + Suggestions The target brand steering wheel Future steps
  42. 42. + Investing in brand awareness “Old” Media    IMC Invest in TV, radio, mainstream print media  Emphasize the brand icons and values  Display the name consistently  Change store design to achieve unity Ignore sport disciplines, ambassadors Decide on the name!  Drop “athletica”
  43. 43. + Extention into new sports  Keeping the feminine focus  Solving design problems  Benefiting from fabric technology  Building independent communities around each sport  Offering experiences for each sport
  44. 44. + Rebuilding trust through innovation Product  Introducing a convincing, continuous array of new products  Innovative design  Employ “fat” store staff  Display non-fit figures in the store  Focus on “healthy” Improved fabric  Community
  45. 45. + Suggested Brand Steering Wheel What do I offer? •Premium athletic wear •Better look, better fit •Self-esteem •Bravery for life •Belonging •Sophisticated image WHO ARE WE? The premium technical athletic company for a healthy life What are their attributes? •Design innovator •Superior fit and style •Community support •Lifestyle guidance How am I? •Confident •Self-actualizer •Feminine •Fun •Affluent •An educator How do I appear? •Healthy •Active •Sophisticated
  46. 46. + Control
  47. 47. + Print Ads  A test to improve the print ads is essential  Different versions of logo/name combinations  Better placement of logo through eye-tracking tests
  48. 48. + Brand Awareness  Lululemon is increasingly using the logo alone  Brand awareness test to discover if the target groups can recognize the logo alone, with lululemon, with lululemon athletica
  49. 49. + Brand Resonance  Quantitative tests to discover brand resonance, especially after the crisis  No qualitative tests are required for the clients due to well functioning community channels
  50. 50. Thank you! + It was difficult and fun at the same time! Seza AYDIN-ONUR sezaaydin@gmail.com

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