SlideShare a Scribd company logo
Goes to London, UK
Marketing Plan
Putri Oen
December 8, 2014
International Marketing
Professor William Hernandez

Table of Contents
• Memorandum…………………………………………………………………………… 2-17
• Executive Summary…………………………………………………………………… 2-4
• Introduction……………………………………………………………………………… 5-6
• Cultural Analysis……………………………………………………………………….. 6-8
• Activewear Market Trend………………………………………………………………. 9
• Products & Services…………………………………………………………………… 10-12
• Competition Analysis…………………………………………………………………… 12-15
• Marketing Plan & Target Market………………………………………………………. 15-16
• Conclusion………………………………………………………………………………… 17
• Works Cited……………………………………………………………………………… 18-19
• Figures ………………………………………………………………………………… 20-21

Memo
I. Executive Summary
Athleta Inc. is a premier fitness apparel brand that thrives off giving comfortable, but
fashion-forward activewear. With over 90 locations spread across the United States and a
powerful parent company, Gap Inc., to oversee them, Athleta must start on stepping into the
international market—starting in London, United Kingdom.
Athleta is a division of Gap Inc. Unlike its ready-to-wear sister divisions, Gap, Banana
Republic, and Old Navy, Athleta is primarily targeted towards women and focuses on athletic
wear. Clothing made by women for women, Athleta’s provides a variety of products for all
athletic occasions and seasons; such as, yoga and indoor apparel, running and high performance
outfits, ski & snowboard apparel, winter outerwear and sweaters, yoga accessories, and footwear.
The company’s innovative style targets women who are always in motion, whether it be running
Athleta Inc.
To: Nancy Green, President and General Manager of Athleta Inc.
From: Putri Oen, Sales Associate at Fashion Island’s Athleta
cc: Professor William Hernandez Requejo, California State University, Fulleton
Date: December 8, 2014
Re: Athleta LLC. goes to London, United Kingdom
2
a marathon or taking a pilates class at the gym. Athleta’s transformative designs allows women
of all shapes and sizes to feel active and beautiful at the same time.
Globally, fashion and fitness are merging. According to the NPD Group, it reported
strong sales in activewear and athletic footwear for the year of 2013. The reason for this rise in
the athletic market is because more consumers feel the need to look active to be active. More
women are not only investing in any activewear, but activewear that can be worn not only just
for the gym.
Women’s activewear store openings are increasing around the world; such as Canada’s
Lululemon Athletica and Australia’s Lorna Jane. Both companies have opened multiple stores
outside of their home country with a target market of women who indulge in premier brand
activewear. Many companies have rushed to become an international brand, but Gap Inc.,
purposefully took their time to groom Athleta to be strong in her home country, The United
States. According to the Rebecca Duval, the Vice President, equity analyst and BlueFin Research
Partners, she states that “Athleta could become the next global brand for Gap […]”. She also
makes a point about how Athleta has been improving their designs and rebranding themselves, in
terms of fashion trends, to step up to par with other leading activewear brands . Athleta can1
compete with brands like these because it provides premier brand quality at an affordable price
and with a parent company like Gap Inc., Athleta would clearly be a success outside of the
United States. This marketing plan has been created to provide information on what Athleta
could provide to the UK and European market, how it differentiates from other similar brands,
and how it could successfully profit in the activewear industry.
Moin, D., Women’s Wear Daily, 20141
!4
II. Introduction
Athleta Inc. is a brand division under the Gap Inc. umbrella. Athleta first originated in
Petaluma, California as a successful online and mail-order retailer brand via catalogues. In 2008,
Gap Inc. acquired Athleta for $150 million and over the course of 3 years, Athleta has
transformed from a small online-based retailer to a successful brick-and-mortar retailer. Since
2008, Athleta has opened 65 stores in 25 states and the District of Columbia. In 2014, Gap Inc.
plans to open up to 30 more Athleta retail stores in the United States, totaling the U.S. store
count to 100. Currently, Athleta’s online store only ships within the United States. It can be seen2
that Athleta is a growing company that is on its way to dominate the women’s activewear market
in its home country. Though the demand for fashionable fitness apparel has increased and the
competitive market is growing, Athleta is proven to be a top competitor amongst other brands
because it provides affordable fitness-to-lifestyle apparel with premier brand quality
Gap Inc. has been a well-known company throughout the world with over 3,539 stores in
48 countries. They has proven to be a successful retail corporation with their three iconic brands:
Gap, Banana Republic, and Old Navy. These three brands accounted for $15.5 billion of $16.5
billion of the company’s net sales in the 52 weeks that ended on Feb 1. Athleta, along with its
smaller sister brands: Intermix and Piperlime, an online-based retailer, have a combined net sales
of $672 million in the last fiscal year. Due to Athleta’s fairly new launch, Gap Inc. does not3
publicize Athleta’s profit numbers or number of employees in the Petaluma headquarters. With
Gap Inc.’s existing global reputation and the growing fashion and fitness trend, Athleta could be
the next brand to join the iconic Gap Inc. brands on an international level.
Quackenbush, J. North Bay Business Journal, 20142
Quackenbush, J. North Bay Business Journal, 2014.3
!5
The United States is not the only country that has a leading trend of activewear.
According to Verdict View’s lead analyst, Honor Westnedge, the £5.8 billion ($8.7 billion) UK
sportswear market is predicted to increase by 3.2% in the year 2014. Since 2009, the sportswear
industry in the United Kingdom increased by 17.9% . It can be seen that United Kingdom is4
catching on to the fashion fitness trend. Like the United States, it does have its share of fitness
apparel that will compete with Athleta.
By launching an Athleta retail store in London, United Kingdom, it opens the brand up to
more consumers who desire to have fashionable fitness apparel at an affordable price range.
Since Athleta originated as an online-only and catalogue based company, like its United States
stores, Athleta would be able to promote its ability to order items in-store to be mailed to a
household. That would allow consumers from all over the United Kingdom and Europe to be
able to order from Athleta’s online website. Gap Inc., has also started to introduce a tech-friendly
environment for all its retail stores by providing free-wifi, in-store ordering, and a “reserve in
store” option. The Reserve in Store operations allows online shoppers to reserve up to five items
and then pick up the items in the store. Athleta provides many incentives to their customers by
having frequent promotion sales, in-store fitness classes, one-on-one styling services by Fit &
Studio Stylists, and discounts to licensed fitness professionals.
III. Cultural Analysis
Location: London, United Kingdom
Population size of United Kingdom: est. 64 million5
Westnedge, W. Verdict Retail, 20144
World Bank, 20135
!6
Population size of London, United Kingdom: est. 8.4 million6
Distribution of Population in United Kingdom by sex: male: 31.7 million; female: 32.1 million
Language: English7
A. About Location
Opening an Athleta retail store in London, United Kingdom would be a beneficial way
for Gap Inc. to introduce their women’s activewear brand into an international market. As with,
Athleta’s sister brands, Banana Republic, Gap, and Old Navy, Athleta could be the next
international brand of Gap Inc. to take opportunity on the the rising market and demand for
fashionable, fitness-to-lifestyle activewear.
With a store based in London, United Kingdom, Athleta will be exposed to a large
audience. The United Kingdom has a total estimated population of 64 million (World Bank,8
2013) and the country’s capital, London, has an estimated population of 8.4 million (Office of
National Statistics, 2013). Taken from the Nomis Official Labour Market Statistics’, in 2013,
London’s estimated the population of 16-64 year old women in London, which is about 2.9
million. The United Kingdom’s economy is prosperous, with a rise in Gross Domestic Product
(GDP) of 0.7% between Quarter 2 and 3. In 2013, the United Kingdom recorded a GDP of
$2522.26 billion which is about 4.07% of the world economy.9
Not only will Athleta be exposed to the local London population, but the company will
also be introduced to an outstanding amount of tourists. In 2013, London received a record-
Office for National Statistics, 20136
recognized regional languages include Scots, Scottish Gaelic, Welsh, Irish, and Cornish.7
United Kingdom consists of England, Wales, Northern Ireland, and Scotland.8
Trading Economics, 20149
!7
breaking number of tourists. The Office for National Statistics recorded an estimated 16.8
million visitors into London in 2013, which was a 1.3 million increase since 2012. The top three
visitors to London in 2013 were United States of America with 1.88 million, France with 1.87
million, and Germany with 1.34 million. Tourist expenditures have almost doubled (91.9%) since
2003. Visitors to the United Kingdom, ideally, visit London for most of their shopping. Oversea
visitors spend up to £11,256 million ($17.5 billion) in London with American tourists spending
an estimating total of £1,526 million ($2.4 billion) and Middle Eastern tourists spending an
estimated total of £888 million ($1.4 billion).10
London is considered a shopping and one of the fashion capitals of Europe. In London
alone, the retail industry contributes to about 40% of all money spent. The retail industry
provides up to 400,000 jobs or 9% of employment. Also, according to The London Plan, in the11
retail industry, the leading type of retail shop are clothing stores which provide about 78,000
jobs. London has many different shopping areas; such as, Central London, Bond Street, New
Bond Street, and Oxford Circus, which hold many big flagship, upmarket stores. Camden High
street Market provides eclectic, funky clothes and accessories and holds many vintage apparel.
Portebello Road Market showcases local artists, designers, and small boutiques. Ideally, Athleta
would particularly fit in the Carnaby Street, which is situated in between Oxford Street and
Regent Street. London provides shopping for everyone’s preference which makes it an ideal city
for Athleta to start their international brand.
British Broadcasting Corporation, 201410
The London Plan, n.d.11
!8
III. Activewear Market Trend
Skinny is not the new black—it’s to get fit. Fit girls are becoming the new role models to
young girls everywhere. No more of the skinny, toothpick arms, but what graces the magazines
are girls with toned arms, flat abdominals, and an hourglass figure. Athleta’s President, Nancy
Green, tells Women’s Wear Daily, “We are in a time when fitness and fashion are converging.”
That is exactly what Athleta offers to women who are always in motion. In the United States,
according to the NDP Group Inc., “activewear sales increased more than that general apparel
market, growing 7 percent vs 1 percent YTD August 2013”. The NPD Group Inc., also
mentioned that more consumers are focused to get fit instead of “model skinny”. In just the
women’s category $7 billion in sales was contributed to the activewear market. The sales were
allocated as such:
• Active pants (+10%)
• Athletic Tees/Tops (+12%)
• Sweatshirts (+11%)
Marshal Cohen, Chief Industry Analyst at The NDP Group Inc., has pointed out that “dressing
casually has become more acceptable”. Women feel like that have made a good investment in
activewear, such as yoga pants. Casual activewear is seen as fashionable and efficient because
women could wear it anywhere and everywhere. According to Honor Westnedge, Lead Analyst
on Verdict Retail, the United Kingdom’s activewear market generates about 5.8 billion and it is
expected to grow 3.2% by the end of 2014. Due to the Olympics that took place in London in12
2012, consumers are buying more sportswear, but the competition is intensifying. Many retailers
Paton, E. Fashion Trend, 201412
!9
that are nonspecialized in activewear are trying to collaborate with designers and athletes to
create premier-looking, sport apparel without increasing the cost in order to stay with their target
market. For example, Sports Direct, a British discount sport store, is considering a collaboration
with Debenhams and the Primark just launched a low-cost sportswear line.13
IV. Services and Products Athleta will offer to London and possibly Europe
Athleta is a premier brand of athletic-leisure or “athleisure” wear. Athleta specializes in
activewear clothing that can easily transfer from sportswear to a comfortable, yet fashionable
leisure outfit. As a customer walks into an Athleta store, she is not only shopping for clothes to
wear to her next yoga or gym class, but also her next marathon or her next family trip up to the
mountains. What makes Athleta unique is that they thrive from providing many choices for any
woman who walks into the store.
A product that Athleta is specially known for is their sport bottoms. According to their
online website, their bottoms are not only categorized by style (tight, capri, shorts, pants) and
series cole (Metro, Chatarunga, The Drifter, Relay, etc.), but that are categorized by activity. As
of 2014, Athleta holds nine series, each series comes in about 3 styles, plus “special sizes” for
petite, tall, and a just added maternity size. Every pant is made of Athleta’s patented fabric called
Pilayo® or Power Pilayo®, which is composed of Supplex® Nylon and Lycra® Spandex. The
difference between Power Pilayo® and Pilayo® is how compressive they are. Athleta bottoms
with Pilayo® would generally us the pants for casual, low-impact, studio/lifestyle workouts
while Power Pilayo® wearers would use the pants for high-activity workouts. All Athleta
bottoms are breathable and wicks, made by black lycra which reduces a shine effect when
Paton, E. Fashion Trend, 201413
!10
stretched, and have a UPF of 50+. Pants that are meant for running have reflective material on
“flicker” points of the body (side of body, back and side of legs) and practical pocket placements
for phones and keys. The broad range of pants selection could make a first-time customer
confused on what to purchase, but all employees of Athleta are trained on extensive product
knowledge which will benefit the customer and increase customer loyalty to the Athleta brand.
Along with yoga bottoms, Athleta sells a wide arrange of workout tops, swim suits in the
summer, and sweaters for the winter. Similar bottoms, most of Athleta’s sport tops are made to
allow wicking and some of them have a special “Unstinkable” quality. Some of the sport tops,
mostly their “Chi Tops” and sport bras, have a natural silver salt embedded into the fabric which
reduces the microbial that gives the scent of body odor. This silver salt does last after many
washes so users can still benefit a reduced laundry load. Athleta has studied and researched what
consumers do and do not like in their products and incorporated it into their products to provide
practicality while staying fashionable.
Considering that Athleta originated as an online and catalogue retailer, Athleta always
and will continue to merge their online store to all their retail stores. For example, all Athleta
stores are equipped with a computer kiosk that is directly connected to Athleta’s online store. A
customer would be able to go the kiosk and be able to select the perfect outfit pieces by what she
would be using them for. The categories change through each season, but during the winter
season, the categories on Athleta’s store range from Winter Training, Ski & Snowboard, Yoga,
Indoor Workouts, and Street Style. Each clothing items has information that includes fabric and
care instructions for optimal use, fit + feature which details how a clothing piece fits to the body
and, what activity it can be worn for.
!11
With Athleta’s constant push to integrate their online store and retail store, Athleta stores
will be promoting a program called SnapScan. This application is downloaded onto a handheld
device attached to a portable scanner. Every Athleta store is equipped with about 4 of these
devices. When a customer wishes to purchase an item that is no longer in stock at a store, but
available online, sales associates would be able to use SnapScan to purchase the item for the
customer with their credit card and have it sent to their address, without even going behind a
cash register. This provides a simple, quick, and efficient way to sell items to a customer.
Athleta’s online store has also adopted a Gap Inc. feature that has been successfully used
in their other brands’ stores called Reserve in Store . This online feature allows customers who14
are online shopping, who do not wish to purchase instantly, to reserve up to five items in a
nearby retail store for 48 hours. Reserve in Store is a strong marketing tool that draws their
online customers into the store and promotes/increases items per transaction. Though Athleta has
an open return policy, the Reserve in Store feature could lower the chances of returns because it
allows their online customers to try on the item before purchase.
V. Competition
With a store in Athleta, the company faces 3 main competitors in the area:
• Sweaty Betty
Sweaty Betty, founded by Simon and Tamara Hill-Norton, is a British retailer which also
features fashionable “Athleisure” apparel. Like Athleta, Sweaty Betty stocks apparel from yoga
wear to ski wear and sets up retail stores as female-friendly with knowledgeable staff. Sweaty
Betty has also adopted into promoting fitness events to their customer by partnering with local
See Figure 114
!12
yoga studios. Currently Sweaty Betty has 17 boutiques in London, 23 all over the rest of United
Kingdom and two stores in the United States, New York and Connecticut. Sweaty Betty would
be the closest British brand competitor to Athleta with their versatile style and active approach to
women. The only difference between Sweaty Betty and Athleta is the price point. Athleta’s
Chatarunga Yoga pants start at $68 and Sweaty Betty’s Ashtanga Yoga Leggings start at $85.15 16
With their high-performance leggings, Athleta’s Relay Tights start at $78 and Sweaty Betty’s
Zero Gravity Tights are at $145.17
• Nike
Nike is a worldwide known activewear retailer and it has just become recent that Nike
introduced women’s activewear that was geared towards yoga and indoor training. As the trend
of “athleisure wear” started to pick up, Nike made sure that they were a top choice for women.
Since Nike was known for their shoes, it would be practical for women to pick up their apparel
to pair with their shoes. Compared to Athleta, Nike’s target audience is high-performing fitness
people whereas Athleta is tailored towards a gym-to-lunch-date audience. Just recently, in
November 2014, Nike has added to their Newport Beach store to include an integrated fitness
studio and retail store. The 6,000 sq. ft. studio will include many training class, footwear trials,
pant hemming, and bra fittings. Nike has also planned to start a casual womenswear line to18
compete with big competition companies like Lululemon and Athleta because it has seen a
tremendous growth in their women’s division. According to Bloomberg, Nike predicts that their
www.athleta.com15
www.sweatybetty.co.uk16
see figure 2 for comparison of yoga pants from all competitors17
Paton, E. Fashion Trend, 201418
!13
women’s division to grow from $5 billion to $7 billion by 2017. Similar Nike, Under Armor is19
focusing on women’s fitness apparel and released their women’s marketing campaign that
includes model, Gisele Bundchen and ballerina Misty Copeland. Many fitness companies that
were initially focused on men’s fitness wear are now focusing on women’s fitness apparel due to
the growth and profitability of the market.
• Lululemon Athletica
Lululemon Athletica is a main competitor of Athleta in the United States. Lululemon
Athletica was founded by a man named Dennis “Chip” Wilson in Vancouver, B.C. in the year
2000. He was a firm believer in yoga and promoted women to be into fitness. The brand then
became wildly popular and stores opened around the United States, Australia, and Great Britain.
Lululemon, like Athleta, partners with studios, but they also sell their clothing in high-end fitness
studios like, SoulCycle, Pure Barre, Equinox, and CorePower Yoga. Lululemon, with it’s link
with higher-end studios, suddenly became a cult amongst women. The signature “horse shoe”
logo would be noticed by famous yoga-gurus and seen on every yogi woman in class. Though
Lululemon did dominate women’s fitness wear, their sales have dropped due to many poor public
relation handling. In 2007, New York Times reported that they have ran a laboratory test on20
Lululemon’s Vitasea fabric, which claimed to have seaweed fibers embedded into the fabric
while feeling like cotton and promoting moisture. The lab results showed that there was no
significant difference between a regular cotton T-shirt and the Vitasea fabric. Lululemon then21
removed all health claims of its “seaweed-based” products in Canada. In 2010, the company had
Peterson, H. Business Insider, 201419
Novellino, T. Upstart Business Journal, 201420
Story, L. The New York Times, 200721
!14
to recall all their reusable bags, which were found to contain small traces of lead. In 2012, a
swimwear line had to be discontinued for being see-through when wet. In 2013, Lululemon22
announced a recall on 17% of their black yoga pants for being unintentionally transparent, which
was a clear sign that the cult-like company, after many product blunders, had an image issue. The
recall caused a shortage and a financial blow to the company, which lead to the step down of the
company’s Chief Executive Officer, Christina Day. This resulted in a damage to Lululemon’s
brand and reputation. Though Lululemon still has a strong follower base, Athleta has been
known to follow Lululemon in hopes it will attract their clients.23
VI. Marketing Plan
London, United Kingdom is a perfect location for Athleta to enter into the international
market. In 1987, the parent company opened their first international Gap store in the United
Kingdom. Athleta could use it as a marketing platform and learn the success and failures of the24
process. Due to the Athleta’s products and services offered, the retail space would have to be at
least 2,000 sq. ft. in order to have enough room for its products and in-store fitness classes
Athleta would offer. Based on Colliers International’s website, a retail space on Carnaby St. is25
available to rent for £530,000 per annum (£44,167 per month) or $852,820 ($68,819 per month),
additionally a service charge that is estimated to be £26,301 per annum . The 2,615 sq. ft. retail
space is separated into two floors; the ground floor being 1,313 sq. ft. and the basement being
1,314 sq. ft.. This retail space would receive a high number of foot traffic since its nearest Tube
Suddath, C. Bloomberg, 201422
Maheshwari, S. Bloomberg, 201423
Gap Inc., 201424
see figure 325
!15
stations are Oxford Circus and Piccadilly Circus; both are a 10 minute walk to Carnaby Street are
in the heart of the Soho District. Carnaby Street is known for its trendy streetwear, urbanwear,
activewear, and footwear. This retail space neighbors other high-end retailers like Diesel, The
North Face, American Apparel, and Puma Store and it is walking distance from a spinning
studio, H2 Bike Run, and a fitness club called The Third Space. Athleta, in London, should
continue to provide 30% discounts to certified fitness trainers and instructors and partner with
local fitness studios and instructors to provide free in-store classes for their customers. Cleverly,
this retail space is about 0.7 miles away or a 14 minute walk from the nearest Lululemon store.
Gap observed how Lululemon rapidly grew in the United States and opened Athleta stores
nearby. Gap wittily uses the traffic from Lululemon to attract their customers in with their26
lower prices, but offering better, if not equal, products. Due to Lululemon’s yoga pants recall in
2013, many retailers like Athleta are taking advantage of the situation and engaging with
Lululemon’s ex-customers. By partnering with local fitness studios and instructors and engaging
with the local community, Athleta would be able to adapt to the London culture and bring brand
awareness.
A. Target Market
Athleta is a premier activewear clothing company that is geared towards a woman who is
always in motion. Athleta’s target customer is a woman between 30-50 years old, striving to
juggle a successful career and her family. Athleta’s current campaign has a slogan of “Power to
the She”. This embraces woman empowerment and encourages all woman to get active and take
her life into control. An Athleta customer is the one who sneaks a pilates class in-between
Maheshwari, S., Bloomberg, 201426
!16
meetings, goes jogging when the kids are in school, or has no time to go home and change to
meet up with her girlfriends for happy hour after the gym. From outfits for leisure to an outfit for
kickboxing class, Athleta provides the perfect athleisure products for every type of busy woman.
VII. Conclusion
During 2014, the fashion industry merged with the sports and active industry. Together,
they formed an ongoing trend of fashionable, fitness apparel with increased the sales in many
retailers. Brands that specialized in activewear saw a higher demand in their products, which
allowed them to get creative and form new technologies into their clothing pieces. The
activewear industry will continue to grow with the the increasing need to “look fit, but
fashionable”. Athleta provides products that promote a healthy and practical lifestyle while
looking as fabulous as ever.
In conclusion, Athleta is ready to broaden its audience to the international market;
starting in London, United Kingdom. Foreign activewear brands have already entered into the
U.K. market and have proven to be successful by providing exclusive products and services to
the consumers. The provided marketing plan above shows a careful analysis of London’s
demographic, tourism effect on the economy, competitors, and an area that Athleta would be
suitable to open into. With Athleta’s parent company, Gap Inc. who has three successful
international brands, Athleta does have the potential to be the fourth international brand of the
world famous corporation.
!17
Works Cited
Athleta. Retrieved December 2, 2014, from http://www.athleta.com
Gap Inc. (2014, January 1). Key Facts. Retrieved December 7, 2014, from
http://www.gapinc.com/content/gapinc/html/aboutus/keyfacts.html
Lululemon. Retrieved December 2, 2014, from http://www.lululemon.com
Maheshwari, S. (2014, July 17). Gap's Athleta Stalks Lululemon One Yoga Store at a Time.
Bloomberg. Retrieved December 6, 2014, from http://www.bloomberg.com/news/
2012-07-17/gap-s-athleta-stalks-lululemon-one-yoga-store-at-a-time.html
Moin, D. (2014). Gap Inc.'s Athleta Steps Up Expansion. Women's Wear Daily. Retrieved
December 2, 2014, from http://www.wwd.com/retail-news/trends-analysis/athleta-ups-
profile-with-fashion-show-7870619
Novellino, T. (2014, June 25). As Lululemon's profits slip, 6 rivals to watch from Athleta to
Sweaty Betty to Cory Vines. Upstart Business Journal. Retrieved December 2,
2014, from http://upstart.bizjournals.com/multimedia/slideshows/2014/06/as-lululemon-
s-profits-slip-6-rivals-to-watch.html
Office For National Statistics. (2014, May 8). 16.8m overseas visits to London in 2013, up
43.5% in 10 years. Retrieved December 6, 2014, from http://www.ons.gov.uk/ons/rel/ott/
travel-trends/2013/sty.html
Paton, E. (2014, November 7). Nike and rivals such as Lululemon battle for ‘athleisure’ crown.
Fashion Trend. Retrieved December 2, 2014, from http://www.ft.com/intl/cms/s
0/0ea28d2a-654c-11e4-91b1-00144feabdc0.html#slide0
Peterson, H. (2014, November 21). Nike Just Launched A Direct Threat To Lululemon. Business
Insider. Retrieved December 2, 2014, from http://www.businessinsider.com/nike-just-
launched-a-threat-to-lululemon-2014-11
RETAIL UNIT TO LET. (2014, May 12). Retrieved December 5, 2014, from http://
www.colliersproperty.co.uk/high-street-to-let/london/R60038
!18
Quackenbush, J. (2014, February 28). Gap calls 2013 ‘breakout year for Athleta’. North Bay
Business Journal. Retrieved December 2, 2014, from http://
www.northbaybusinessjournal.com/88434/gap-calls-2013-breakout-year-for-athleta/
Record number of visits to London. (2014, May 8). British Broadcasting Corporation. Retrieved
December 6, 2014, from http://www.bbc.com/news/uk-england-london-27323755
Sherman, L. (2014, June 5). Is Activewear the New Denim?. The Business of Fashion.
Retrieved December 2, 2014, from http://www.businessoffashion.com/2014/06/is-
activewear-the-new-denim-lucas-hugh-lululemon-athleta.html
Story, L. (2007, November 13). 'Seaweed' Clothing Has None, Tests Show. The New York Times.
Retrieved December 3, 2014, from http://www.nytimes.com/2007/11/14/business/
14seaweed.html?pagewanted=all&_r=0
Suddath, C. (2013, March 28). What Lululemon's Yoga Pants Recall Reveals. Business Week.
Retrieved December 3, 2014, from http://www.businessweek.com/articles/2013-03-28/
what-lululemons-yoga-pants-recall-reveals
Sweaty Betty. Retrieved December 2, 2014, from http://www.sweatybetty.co.uk
The London Plan. (n.d.). London's Retail Shopping Industry. Retrieved December 6, 2014, from
http://www.uncsbrp.org/retail.htm
The NPD Group. (2014, September 3). Activewear Growth Sets Pace For Overall Apparel Market.
Retrieved December 6, 2014, from https://www.npd.com/wps/portal/npd/us/news/press-
releases/activewear-growth-sets-pace-for-overall-apparel-market/
Trading Economics. (2014, December 6). United Kingdom GDP 1960-2014. Retrieved December 6,
2014, from http://www.tradingeconomics.com/united-kingdom/gdp
!19
Figures
Figure 1: Reserve in Store
!20
Figure 2: Basic Yoga pants comparison
Left to Right: Lululemon Skinny Groove $98-108, Sweaty Betty Ashtanga Yoga Legging $85, Nike Dri-FIT Knit $100, Athleta
Chaturunga Tight $74. Photo Courtesy of lululemon.com, sweatbetty.co.uk, nike.com, athleta.com
Figure 3: Carnaby Street Retail Space
11-12, Carnaby Street
London, W1F 9PQ
Left: Photo Courtesy of colliersproperty.co.uk
Right: Photo Courtesy of visit londontown.co.uk
Photo Courtesy of athleta.com
Figure 4: Carnaby Street
location relative to nearby
Tube Stations.
Photo courtesy of londontown.com
!21

More Related Content

What's hot

Lululemon marketing plan revised
Lululemon marketing plan   revisedLululemon marketing plan   revised
Lululemon marketing plan revised
kcbanks91
 
Lululemon Brand Audit
Lululemon Brand AuditLululemon Brand Audit
Lululemon Brand Audit
Christina Johanson
 
Final lululemon project
Final lululemon projectFinal lululemon project
Final lululemon project
Huzefa Chini
 
Lululemon Valuation
Lululemon ValuationLululemon Valuation
Lululemon Valuation
Stephanie Xueying Wang
 
Lululemon Digital Marketing Strategy
Lululemon Digital Marketing StrategyLululemon Digital Marketing Strategy
Lululemon Digital Marketing Strategy
nrw721
 
Burberry in 2014
Burberry in 2014Burberry in 2014
Burberry in 2014
Vivek Lulla
 
Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...
Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...
Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...
Mark Susor
 
Lululemon Marketing Mix
Lululemon Marketing MixLululemon Marketing Mix
Lululemon Marketing Mix
Mariam Ekizyan
 
Brand Audit on Loreal
Brand Audit on LorealBrand Audit on Loreal
Brand Audit on Loreal
Bibekananda Swain
 
Lululemon Persona Development
Lululemon Persona DevelopmentLululemon Persona Development
Lululemon Persona Development
Brianna Edwards
 
Burberry business&branding model
Burberry   business&branding modelBurberry   business&branding model
Burberry business&branding model
Farzad Moghaddam
 
Strategic Review of Lululemon Athletica
Strategic Review of Lululemon AthleticaStrategic Review of Lululemon Athletica
Strategic Review of Lululemon Athletica
Dean Malka
 
BMW Brand Audit
BMW Brand AuditBMW Brand Audit
BMW Brand Audit
Lindsey Sun
 
Lululemon - Creative Brief
Lululemon - Creative BriefLululemon - Creative Brief
Lululemon - Creative Brief
Victor Schmidlin
 
ENG Decathlon presentation
ENG Decathlon presentationENG Decathlon presentation
ENG Decathlon presentation
Ajit Menon
 
Decathlon Made in Italy Project
Decathlon Made in Italy ProjectDecathlon Made in Italy Project
Decathlon Made in Italy Project
Chiara Zanatta
 
Uniqlo from Marketing concept
Uniqlo from Marketing conceptUniqlo from Marketing concept
Uniqlo from Marketing concept
Monkhzul Bold
 
Valuation of lululemon
Valuation of lululemonValuation of lululemon
Valuation of lululemon
Christine Yee
 
Lululemon Branding Strategy
Lululemon Branding StrategyLululemon Branding Strategy
Lululemon Branding Strategy
hannimjang
 
Loreal
LorealLoreal
Loreal
saad ali
 

What's hot (20)

Lululemon marketing plan revised
Lululemon marketing plan   revisedLululemon marketing plan   revised
Lululemon marketing plan revised
 
Lululemon Brand Audit
Lululemon Brand AuditLululemon Brand Audit
Lululemon Brand Audit
 
Final lululemon project
Final lululemon projectFinal lululemon project
Final lululemon project
 
Lululemon Valuation
Lululemon ValuationLululemon Valuation
Lululemon Valuation
 
Lululemon Digital Marketing Strategy
Lululemon Digital Marketing StrategyLululemon Digital Marketing Strategy
Lululemon Digital Marketing Strategy
 
Burberry in 2014
Burberry in 2014Burberry in 2014
Burberry in 2014
 
Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...
Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...
Patagonia LOHAS Community Marketing Plan Proposal by Heath Ross, Mark Susor, ...
 
Lululemon Marketing Mix
Lululemon Marketing MixLululemon Marketing Mix
Lululemon Marketing Mix
 
Brand Audit on Loreal
Brand Audit on LorealBrand Audit on Loreal
Brand Audit on Loreal
 
Lululemon Persona Development
Lululemon Persona DevelopmentLululemon Persona Development
Lululemon Persona Development
 
Burberry business&branding model
Burberry   business&branding modelBurberry   business&branding model
Burberry business&branding model
 
Strategic Review of Lululemon Athletica
Strategic Review of Lululemon AthleticaStrategic Review of Lululemon Athletica
Strategic Review of Lululemon Athletica
 
BMW Brand Audit
BMW Brand AuditBMW Brand Audit
BMW Brand Audit
 
Lululemon - Creative Brief
Lululemon - Creative BriefLululemon - Creative Brief
Lululemon - Creative Brief
 
ENG Decathlon presentation
ENG Decathlon presentationENG Decathlon presentation
ENG Decathlon presentation
 
Decathlon Made in Italy Project
Decathlon Made in Italy ProjectDecathlon Made in Italy Project
Decathlon Made in Italy Project
 
Uniqlo from Marketing concept
Uniqlo from Marketing conceptUniqlo from Marketing concept
Uniqlo from Marketing concept
 
Valuation of lululemon
Valuation of lululemonValuation of lululemon
Valuation of lululemon
 
Lululemon Branding Strategy
Lululemon Branding StrategyLululemon Branding Strategy
Lululemon Branding Strategy
 
Loreal
LorealLoreal
Loreal
 

Viewers also liked

Lululemon v. Athleta Social Strategy Comparison
Lululemon v. Athleta Social Strategy ComparisonLululemon v. Athleta Social Strategy Comparison
Lululemon v. Athleta Social Strategy Comparison
Laura Hailey
 
Personal Training Business Plan
Personal Training Business PlanPersonal Training Business Plan
Personal Training Business Plan
Hezha Muhammad
 
Marketing plan final 1 stroopts fitness club
Marketing plan final 1 stroopts fitness club Marketing plan final 1 stroopts fitness club
Marketing plan final 1 stroopts fitness club
Huong Hip
 
Lululemon Social Media Strategy
Lululemon Social Media StrategyLululemon Social Media Strategy
Lululemon Social Media Strategy
Alexandra Fedele
 
Strategic Planning In Healthcare.
Strategic Planning In Healthcare.Strategic Planning In Healthcare.
Strategic Planning In Healthcare.
kathleenparis
 
Industry Report
Industry ReportIndustry Report
Industry Report
Joshua Rivera
 
Personal Trainer & Marketing
Personal Trainer & MarketingPersonal Trainer & Marketing
Personal Trainer & Marketing
FitBiz Marketeers
 
Lululemon App redesign
Lululemon App redesignLululemon App redesign
Lululemon App redesign
Mélanie Wider
 
MEN’S MONTH -lululemon london+KR
MEN’S MONTH -lululemon london+KRMEN’S MONTH -lululemon london+KR
MEN’S MONTH -lululemon london+KR
Loni Lincoln
 
Presence for Lululemon Athletica
Presence for Lululemon Athletica Presence for Lululemon Athletica
Presence for Lululemon Athletica
Simran Dadlani
 
Lululemon Marketing Plan
Lululemon Marketing Plan Lululemon Marketing Plan
Lululemon Marketing Plan
marla928
 
Lululemon: Digital Marketing Strategy
Lululemon: Digital Marketing Strategy Lululemon: Digital Marketing Strategy
Lululemon: Digital Marketing Strategy
Madison Segasser
 
YouWeCan - Yuvraj Singh Foundation
YouWeCan - Yuvraj Singh FoundationYouWeCan - Yuvraj Singh Foundation
YouWeCan - Yuvraj Singh Foundation
Kunal Anand
 
Givenchy Omni Retail Analysis
Givenchy Omni Retail AnalysisGivenchy Omni Retail Analysis
Givenchy Omni Retail Analysis
Sharna Aquilina
 
Lululemon Deck
Lululemon DeckLululemon Deck
Lululemon Deck
Jason Moser
 
segmentation, positioning and targeting
segmentation, positioning and targetingsegmentation, positioning and targeting
segmentation, positioning and targeting
Monika Maciuliene
 

Viewers also liked (16)

Lululemon v. Athleta Social Strategy Comparison
Lululemon v. Athleta Social Strategy ComparisonLululemon v. Athleta Social Strategy Comparison
Lululemon v. Athleta Social Strategy Comparison
 
Personal Training Business Plan
Personal Training Business PlanPersonal Training Business Plan
Personal Training Business Plan
 
Marketing plan final 1 stroopts fitness club
Marketing plan final 1 stroopts fitness club Marketing plan final 1 stroopts fitness club
Marketing plan final 1 stroopts fitness club
 
Lululemon Social Media Strategy
Lululemon Social Media StrategyLululemon Social Media Strategy
Lululemon Social Media Strategy
 
Strategic Planning In Healthcare.
Strategic Planning In Healthcare.Strategic Planning In Healthcare.
Strategic Planning In Healthcare.
 
Industry Report
Industry ReportIndustry Report
Industry Report
 
Personal Trainer & Marketing
Personal Trainer & MarketingPersonal Trainer & Marketing
Personal Trainer & Marketing
 
Lululemon App redesign
Lululemon App redesignLululemon App redesign
Lululemon App redesign
 
MEN’S MONTH -lululemon london+KR
MEN’S MONTH -lululemon london+KRMEN’S MONTH -lululemon london+KR
MEN’S MONTH -lululemon london+KR
 
Presence for Lululemon Athletica
Presence for Lululemon Athletica Presence for Lululemon Athletica
Presence for Lululemon Athletica
 
Lululemon Marketing Plan
Lululemon Marketing Plan Lululemon Marketing Plan
Lululemon Marketing Plan
 
Lululemon: Digital Marketing Strategy
Lululemon: Digital Marketing Strategy Lululemon: Digital Marketing Strategy
Lululemon: Digital Marketing Strategy
 
YouWeCan - Yuvraj Singh Foundation
YouWeCan - Yuvraj Singh FoundationYouWeCan - Yuvraj Singh Foundation
YouWeCan - Yuvraj Singh Foundation
 
Givenchy Omni Retail Analysis
Givenchy Omni Retail AnalysisGivenchy Omni Retail Analysis
Givenchy Omni Retail Analysis
 
Lululemon Deck
Lululemon DeckLululemon Deck
Lululemon Deck
 
segmentation, positioning and targeting
segmentation, positioning and targetingsegmentation, positioning and targeting
segmentation, positioning and targeting
 

Similar to Athleta Marketing Plan PDF

Storebites Q3 2010
Storebites Q3 2010Storebites Q3 2010
Storebites Q3 2010
Leo Burnett MENA
 
Lofty Ambitions: ANN's Response to Zara's Fast Fashion
Lofty Ambitions: ANN's Response to Zara's Fast Fashion Lofty Ambitions: ANN's Response to Zara's Fast Fashion
Lofty Ambitions: ANN's Response to Zara's Fast Fashion
Reggie Aspelund
 
BRIMAN Event Presentation
BRIMAN Event PresentationBRIMAN Event Presentation
BRIMAN Event Presentation
The BPMA
 
Report book
Report bookReport book
Report book
Aseel Ismail
 
Edited jay marketing plan yollies.edited
Edited jay marketing plan yollies.editedEdited jay marketing plan yollies.edited
Edited jay marketing plan yollies.edited
Avik Naskar
 
Outdoor Products Industry Insights 2016
Outdoor Products Industry Insights 2016Outdoor Products Industry Insights 2016
Outdoor Products Industry Insights 2016
Duff & Phelps
 
Burberry
Burberry Burberry
Burberry
camilaoliver21
 
REPORT
REPORTREPORT
The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report
Mimi Gunn
 
Business analysis for Sports DirectIntroductionSports Dire.docx
Business analysis for Sports DirectIntroductionSports Dire.docxBusiness analysis for Sports DirectIntroductionSports Dire.docx
Business analysis for Sports DirectIntroductionSports Dire.docx
RAHUL126667
 
12205 drapers luxury_report-single
12205 drapers luxury_report-single12205 drapers luxury_report-single
12205 drapers luxury_report-single
Simon Cunliffe
 
Strategy in Practice_Marks & Spencer
Strategy in Practice_Marks & SpencerStrategy in Practice_Marks & Spencer
Strategy in Practice_Marks & Spencer
Yeh Tzu-Wei
 
Grace Rossi Strategic Management Full Report
Grace Rossi Strategic Management Full ReportGrace Rossi Strategic Management Full Report
Grace Rossi Strategic Management Full Report
Grace Rossi
 
Jo-Ann Final Report
Jo-Ann Final ReportJo-Ann Final Report
Jo-Ann Final Report
Christian Joseph
 
Team crab home sweet home pitch
Team crab   home sweet home pitchTeam crab   home sweet home pitch
Team crab home sweet home pitch
Dom Devlin
 
Team crab home sweet home pitch
Team crab   home sweet home pitchTeam crab   home sweet home pitch
Team crab home sweet home pitch
elfasow
 
Business environment Sample Document
Business environment Sample DocumentBusiness environment Sample Document
Business environment Sample Document
Amelia Jones
 
Presentation on gap inc.
Presentation on gap inc.Presentation on gap inc.
Presentation on gap inc.
Salman Zaki
 
Team Crab Home Sweet Home pitch
Team Crab   Home Sweet Home pitch Team Crab   Home Sweet Home pitch
Team Crab Home Sweet Home pitch
Dom Devlin
 
Dress watchpd1
Dress watchpd1Dress watchpd1
Dress watchpd1
brianhayward
 

Similar to Athleta Marketing Plan PDF (20)

Storebites Q3 2010
Storebites Q3 2010Storebites Q3 2010
Storebites Q3 2010
 
Lofty Ambitions: ANN's Response to Zara's Fast Fashion
Lofty Ambitions: ANN's Response to Zara's Fast Fashion Lofty Ambitions: ANN's Response to Zara's Fast Fashion
Lofty Ambitions: ANN's Response to Zara's Fast Fashion
 
BRIMAN Event Presentation
BRIMAN Event PresentationBRIMAN Event Presentation
BRIMAN Event Presentation
 
Report book
Report bookReport book
Report book
 
Edited jay marketing plan yollies.edited
Edited jay marketing plan yollies.editedEdited jay marketing plan yollies.edited
Edited jay marketing plan yollies.edited
 
Outdoor Products Industry Insights 2016
Outdoor Products Industry Insights 2016Outdoor Products Industry Insights 2016
Outdoor Products Industry Insights 2016
 
Burberry
Burberry Burberry
Burberry
 
REPORT
REPORTREPORT
REPORT
 
The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report
 
Business analysis for Sports DirectIntroductionSports Dire.docx
Business analysis for Sports DirectIntroductionSports Dire.docxBusiness analysis for Sports DirectIntroductionSports Dire.docx
Business analysis for Sports DirectIntroductionSports Dire.docx
 
12205 drapers luxury_report-single
12205 drapers luxury_report-single12205 drapers luxury_report-single
12205 drapers luxury_report-single
 
Strategy in Practice_Marks & Spencer
Strategy in Practice_Marks & SpencerStrategy in Practice_Marks & Spencer
Strategy in Practice_Marks & Spencer
 
Grace Rossi Strategic Management Full Report
Grace Rossi Strategic Management Full ReportGrace Rossi Strategic Management Full Report
Grace Rossi Strategic Management Full Report
 
Jo-Ann Final Report
Jo-Ann Final ReportJo-Ann Final Report
Jo-Ann Final Report
 
Team crab home sweet home pitch
Team crab   home sweet home pitchTeam crab   home sweet home pitch
Team crab home sweet home pitch
 
Team crab home sweet home pitch
Team crab   home sweet home pitchTeam crab   home sweet home pitch
Team crab home sweet home pitch
 
Business environment Sample Document
Business environment Sample DocumentBusiness environment Sample Document
Business environment Sample Document
 
Presentation on gap inc.
Presentation on gap inc.Presentation on gap inc.
Presentation on gap inc.
 
Team Crab Home Sweet Home pitch
Team Crab   Home Sweet Home pitch Team Crab   Home Sweet Home pitch
Team Crab Home Sweet Home pitch
 
Dress watchpd1
Dress watchpd1Dress watchpd1
Dress watchpd1
 

Athleta Marketing Plan PDF

  • 1. Goes to London, UK Marketing Plan Putri Oen December 8, 2014 International Marketing Professor William Hernandez

  • 2. Table of Contents • Memorandum…………………………………………………………………………… 2-17 • Executive Summary…………………………………………………………………… 2-4 • Introduction……………………………………………………………………………… 5-6 • Cultural Analysis……………………………………………………………………….. 6-8 • Activewear Market Trend………………………………………………………………. 9 • Products & Services…………………………………………………………………… 10-12 • Competition Analysis…………………………………………………………………… 12-15 • Marketing Plan & Target Market………………………………………………………. 15-16 • Conclusion………………………………………………………………………………… 17 • Works Cited……………………………………………………………………………… 18-19 • Figures ………………………………………………………………………………… 20-21

  • 3. Memo I. Executive Summary Athleta Inc. is a premier fitness apparel brand that thrives off giving comfortable, but fashion-forward activewear. With over 90 locations spread across the United States and a powerful parent company, Gap Inc., to oversee them, Athleta must start on stepping into the international market—starting in London, United Kingdom. Athleta is a division of Gap Inc. Unlike its ready-to-wear sister divisions, Gap, Banana Republic, and Old Navy, Athleta is primarily targeted towards women and focuses on athletic wear. Clothing made by women for women, Athleta’s provides a variety of products for all athletic occasions and seasons; such as, yoga and indoor apparel, running and high performance outfits, ski & snowboard apparel, winter outerwear and sweaters, yoga accessories, and footwear. The company’s innovative style targets women who are always in motion, whether it be running Athleta Inc. To: Nancy Green, President and General Manager of Athleta Inc. From: Putri Oen, Sales Associate at Fashion Island’s Athleta cc: Professor William Hernandez Requejo, California State University, Fulleton Date: December 8, 2014 Re: Athleta LLC. goes to London, United Kingdom 2
  • 4. a marathon or taking a pilates class at the gym. Athleta’s transformative designs allows women of all shapes and sizes to feel active and beautiful at the same time. Globally, fashion and fitness are merging. According to the NPD Group, it reported strong sales in activewear and athletic footwear for the year of 2013. The reason for this rise in the athletic market is because more consumers feel the need to look active to be active. More women are not only investing in any activewear, but activewear that can be worn not only just for the gym. Women’s activewear store openings are increasing around the world; such as Canada’s Lululemon Athletica and Australia’s Lorna Jane. Both companies have opened multiple stores outside of their home country with a target market of women who indulge in premier brand activewear. Many companies have rushed to become an international brand, but Gap Inc., purposefully took their time to groom Athleta to be strong in her home country, The United States. According to the Rebecca Duval, the Vice President, equity analyst and BlueFin Research Partners, she states that “Athleta could become the next global brand for Gap […]”. She also makes a point about how Athleta has been improving their designs and rebranding themselves, in terms of fashion trends, to step up to par with other leading activewear brands . Athleta can1 compete with brands like these because it provides premier brand quality at an affordable price and with a parent company like Gap Inc., Athleta would clearly be a success outside of the United States. This marketing plan has been created to provide information on what Athleta could provide to the UK and European market, how it differentiates from other similar brands, and how it could successfully profit in the activewear industry. Moin, D., Women’s Wear Daily, 20141 !4
  • 5. II. Introduction Athleta Inc. is a brand division under the Gap Inc. umbrella. Athleta first originated in Petaluma, California as a successful online and mail-order retailer brand via catalogues. In 2008, Gap Inc. acquired Athleta for $150 million and over the course of 3 years, Athleta has transformed from a small online-based retailer to a successful brick-and-mortar retailer. Since 2008, Athleta has opened 65 stores in 25 states and the District of Columbia. In 2014, Gap Inc. plans to open up to 30 more Athleta retail stores in the United States, totaling the U.S. store count to 100. Currently, Athleta’s online store only ships within the United States. It can be seen2 that Athleta is a growing company that is on its way to dominate the women’s activewear market in its home country. Though the demand for fashionable fitness apparel has increased and the competitive market is growing, Athleta is proven to be a top competitor amongst other brands because it provides affordable fitness-to-lifestyle apparel with premier brand quality Gap Inc. has been a well-known company throughout the world with over 3,539 stores in 48 countries. They has proven to be a successful retail corporation with their three iconic brands: Gap, Banana Republic, and Old Navy. These three brands accounted for $15.5 billion of $16.5 billion of the company’s net sales in the 52 weeks that ended on Feb 1. Athleta, along with its smaller sister brands: Intermix and Piperlime, an online-based retailer, have a combined net sales of $672 million in the last fiscal year. Due to Athleta’s fairly new launch, Gap Inc. does not3 publicize Athleta’s profit numbers or number of employees in the Petaluma headquarters. With Gap Inc.’s existing global reputation and the growing fashion and fitness trend, Athleta could be the next brand to join the iconic Gap Inc. brands on an international level. Quackenbush, J. North Bay Business Journal, 20142 Quackenbush, J. North Bay Business Journal, 2014.3 !5
  • 6. The United States is not the only country that has a leading trend of activewear. According to Verdict View’s lead analyst, Honor Westnedge, the £5.8 billion ($8.7 billion) UK sportswear market is predicted to increase by 3.2% in the year 2014. Since 2009, the sportswear industry in the United Kingdom increased by 17.9% . It can be seen that United Kingdom is4 catching on to the fashion fitness trend. Like the United States, it does have its share of fitness apparel that will compete with Athleta. By launching an Athleta retail store in London, United Kingdom, it opens the brand up to more consumers who desire to have fashionable fitness apparel at an affordable price range. Since Athleta originated as an online-only and catalogue based company, like its United States stores, Athleta would be able to promote its ability to order items in-store to be mailed to a household. That would allow consumers from all over the United Kingdom and Europe to be able to order from Athleta’s online website. Gap Inc., has also started to introduce a tech-friendly environment for all its retail stores by providing free-wifi, in-store ordering, and a “reserve in store” option. The Reserve in Store operations allows online shoppers to reserve up to five items and then pick up the items in the store. Athleta provides many incentives to their customers by having frequent promotion sales, in-store fitness classes, one-on-one styling services by Fit & Studio Stylists, and discounts to licensed fitness professionals. III. Cultural Analysis Location: London, United Kingdom Population size of United Kingdom: est. 64 million5 Westnedge, W. Verdict Retail, 20144 World Bank, 20135 !6
  • 7. Population size of London, United Kingdom: est. 8.4 million6 Distribution of Population in United Kingdom by sex: male: 31.7 million; female: 32.1 million Language: English7 A. About Location Opening an Athleta retail store in London, United Kingdom would be a beneficial way for Gap Inc. to introduce their women’s activewear brand into an international market. As with, Athleta’s sister brands, Banana Republic, Gap, and Old Navy, Athleta could be the next international brand of Gap Inc. to take opportunity on the the rising market and demand for fashionable, fitness-to-lifestyle activewear. With a store based in London, United Kingdom, Athleta will be exposed to a large audience. The United Kingdom has a total estimated population of 64 million (World Bank,8 2013) and the country’s capital, London, has an estimated population of 8.4 million (Office of National Statistics, 2013). Taken from the Nomis Official Labour Market Statistics’, in 2013, London’s estimated the population of 16-64 year old women in London, which is about 2.9 million. The United Kingdom’s economy is prosperous, with a rise in Gross Domestic Product (GDP) of 0.7% between Quarter 2 and 3. In 2013, the United Kingdom recorded a GDP of $2522.26 billion which is about 4.07% of the world economy.9 Not only will Athleta be exposed to the local London population, but the company will also be introduced to an outstanding amount of tourists. In 2013, London received a record- Office for National Statistics, 20136 recognized regional languages include Scots, Scottish Gaelic, Welsh, Irish, and Cornish.7 United Kingdom consists of England, Wales, Northern Ireland, and Scotland.8 Trading Economics, 20149 !7
  • 8. breaking number of tourists. The Office for National Statistics recorded an estimated 16.8 million visitors into London in 2013, which was a 1.3 million increase since 2012. The top three visitors to London in 2013 were United States of America with 1.88 million, France with 1.87 million, and Germany with 1.34 million. Tourist expenditures have almost doubled (91.9%) since 2003. Visitors to the United Kingdom, ideally, visit London for most of their shopping. Oversea visitors spend up to £11,256 million ($17.5 billion) in London with American tourists spending an estimating total of £1,526 million ($2.4 billion) and Middle Eastern tourists spending an estimated total of £888 million ($1.4 billion).10 London is considered a shopping and one of the fashion capitals of Europe. In London alone, the retail industry contributes to about 40% of all money spent. The retail industry provides up to 400,000 jobs or 9% of employment. Also, according to The London Plan, in the11 retail industry, the leading type of retail shop are clothing stores which provide about 78,000 jobs. London has many different shopping areas; such as, Central London, Bond Street, New Bond Street, and Oxford Circus, which hold many big flagship, upmarket stores. Camden High street Market provides eclectic, funky clothes and accessories and holds many vintage apparel. Portebello Road Market showcases local artists, designers, and small boutiques. Ideally, Athleta would particularly fit in the Carnaby Street, which is situated in between Oxford Street and Regent Street. London provides shopping for everyone’s preference which makes it an ideal city for Athleta to start their international brand. British Broadcasting Corporation, 201410 The London Plan, n.d.11 !8
  • 9. III. Activewear Market Trend Skinny is not the new black—it’s to get fit. Fit girls are becoming the new role models to young girls everywhere. No more of the skinny, toothpick arms, but what graces the magazines are girls with toned arms, flat abdominals, and an hourglass figure. Athleta’s President, Nancy Green, tells Women’s Wear Daily, “We are in a time when fitness and fashion are converging.” That is exactly what Athleta offers to women who are always in motion. In the United States, according to the NDP Group Inc., “activewear sales increased more than that general apparel market, growing 7 percent vs 1 percent YTD August 2013”. The NPD Group Inc., also mentioned that more consumers are focused to get fit instead of “model skinny”. In just the women’s category $7 billion in sales was contributed to the activewear market. The sales were allocated as such: • Active pants (+10%) • Athletic Tees/Tops (+12%) • Sweatshirts (+11%) Marshal Cohen, Chief Industry Analyst at The NDP Group Inc., has pointed out that “dressing casually has become more acceptable”. Women feel like that have made a good investment in activewear, such as yoga pants. Casual activewear is seen as fashionable and efficient because women could wear it anywhere and everywhere. According to Honor Westnedge, Lead Analyst on Verdict Retail, the United Kingdom’s activewear market generates about 5.8 billion and it is expected to grow 3.2% by the end of 2014. Due to the Olympics that took place in London in12 2012, consumers are buying more sportswear, but the competition is intensifying. Many retailers Paton, E. Fashion Trend, 201412 !9
  • 10. that are nonspecialized in activewear are trying to collaborate with designers and athletes to create premier-looking, sport apparel without increasing the cost in order to stay with their target market. For example, Sports Direct, a British discount sport store, is considering a collaboration with Debenhams and the Primark just launched a low-cost sportswear line.13 IV. Services and Products Athleta will offer to London and possibly Europe Athleta is a premier brand of athletic-leisure or “athleisure” wear. Athleta specializes in activewear clothing that can easily transfer from sportswear to a comfortable, yet fashionable leisure outfit. As a customer walks into an Athleta store, she is not only shopping for clothes to wear to her next yoga or gym class, but also her next marathon or her next family trip up to the mountains. What makes Athleta unique is that they thrive from providing many choices for any woman who walks into the store. A product that Athleta is specially known for is their sport bottoms. According to their online website, their bottoms are not only categorized by style (tight, capri, shorts, pants) and series cole (Metro, Chatarunga, The Drifter, Relay, etc.), but that are categorized by activity. As of 2014, Athleta holds nine series, each series comes in about 3 styles, plus “special sizes” for petite, tall, and a just added maternity size. Every pant is made of Athleta’s patented fabric called Pilayo® or Power Pilayo®, which is composed of Supplex® Nylon and Lycra® Spandex. The difference between Power Pilayo® and Pilayo® is how compressive they are. Athleta bottoms with Pilayo® would generally us the pants for casual, low-impact, studio/lifestyle workouts while Power Pilayo® wearers would use the pants for high-activity workouts. All Athleta bottoms are breathable and wicks, made by black lycra which reduces a shine effect when Paton, E. Fashion Trend, 201413 !10
  • 11. stretched, and have a UPF of 50+. Pants that are meant for running have reflective material on “flicker” points of the body (side of body, back and side of legs) and practical pocket placements for phones and keys. The broad range of pants selection could make a first-time customer confused on what to purchase, but all employees of Athleta are trained on extensive product knowledge which will benefit the customer and increase customer loyalty to the Athleta brand. Along with yoga bottoms, Athleta sells a wide arrange of workout tops, swim suits in the summer, and sweaters for the winter. Similar bottoms, most of Athleta’s sport tops are made to allow wicking and some of them have a special “Unstinkable” quality. Some of the sport tops, mostly their “Chi Tops” and sport bras, have a natural silver salt embedded into the fabric which reduces the microbial that gives the scent of body odor. This silver salt does last after many washes so users can still benefit a reduced laundry load. Athleta has studied and researched what consumers do and do not like in their products and incorporated it into their products to provide practicality while staying fashionable. Considering that Athleta originated as an online and catalogue retailer, Athleta always and will continue to merge their online store to all their retail stores. For example, all Athleta stores are equipped with a computer kiosk that is directly connected to Athleta’s online store. A customer would be able to go the kiosk and be able to select the perfect outfit pieces by what she would be using them for. The categories change through each season, but during the winter season, the categories on Athleta’s store range from Winter Training, Ski & Snowboard, Yoga, Indoor Workouts, and Street Style. Each clothing items has information that includes fabric and care instructions for optimal use, fit + feature which details how a clothing piece fits to the body and, what activity it can be worn for. !11
  • 12. With Athleta’s constant push to integrate their online store and retail store, Athleta stores will be promoting a program called SnapScan. This application is downloaded onto a handheld device attached to a portable scanner. Every Athleta store is equipped with about 4 of these devices. When a customer wishes to purchase an item that is no longer in stock at a store, but available online, sales associates would be able to use SnapScan to purchase the item for the customer with their credit card and have it sent to their address, without even going behind a cash register. This provides a simple, quick, and efficient way to sell items to a customer. Athleta’s online store has also adopted a Gap Inc. feature that has been successfully used in their other brands’ stores called Reserve in Store . This online feature allows customers who14 are online shopping, who do not wish to purchase instantly, to reserve up to five items in a nearby retail store for 48 hours. Reserve in Store is a strong marketing tool that draws their online customers into the store and promotes/increases items per transaction. Though Athleta has an open return policy, the Reserve in Store feature could lower the chances of returns because it allows their online customers to try on the item before purchase. V. Competition With a store in Athleta, the company faces 3 main competitors in the area: • Sweaty Betty Sweaty Betty, founded by Simon and Tamara Hill-Norton, is a British retailer which also features fashionable “Athleisure” apparel. Like Athleta, Sweaty Betty stocks apparel from yoga wear to ski wear and sets up retail stores as female-friendly with knowledgeable staff. Sweaty Betty has also adopted into promoting fitness events to their customer by partnering with local See Figure 114 !12
  • 13. yoga studios. Currently Sweaty Betty has 17 boutiques in London, 23 all over the rest of United Kingdom and two stores in the United States, New York and Connecticut. Sweaty Betty would be the closest British brand competitor to Athleta with their versatile style and active approach to women. The only difference between Sweaty Betty and Athleta is the price point. Athleta’s Chatarunga Yoga pants start at $68 and Sweaty Betty’s Ashtanga Yoga Leggings start at $85.15 16 With their high-performance leggings, Athleta’s Relay Tights start at $78 and Sweaty Betty’s Zero Gravity Tights are at $145.17 • Nike Nike is a worldwide known activewear retailer and it has just become recent that Nike introduced women’s activewear that was geared towards yoga and indoor training. As the trend of “athleisure wear” started to pick up, Nike made sure that they were a top choice for women. Since Nike was known for their shoes, it would be practical for women to pick up their apparel to pair with their shoes. Compared to Athleta, Nike’s target audience is high-performing fitness people whereas Athleta is tailored towards a gym-to-lunch-date audience. Just recently, in November 2014, Nike has added to their Newport Beach store to include an integrated fitness studio and retail store. The 6,000 sq. ft. studio will include many training class, footwear trials, pant hemming, and bra fittings. Nike has also planned to start a casual womenswear line to18 compete with big competition companies like Lululemon and Athleta because it has seen a tremendous growth in their women’s division. According to Bloomberg, Nike predicts that their www.athleta.com15 www.sweatybetty.co.uk16 see figure 2 for comparison of yoga pants from all competitors17 Paton, E. Fashion Trend, 201418 !13
  • 14. women’s division to grow from $5 billion to $7 billion by 2017. Similar Nike, Under Armor is19 focusing on women’s fitness apparel and released their women’s marketing campaign that includes model, Gisele Bundchen and ballerina Misty Copeland. Many fitness companies that were initially focused on men’s fitness wear are now focusing on women’s fitness apparel due to the growth and profitability of the market. • Lululemon Athletica Lululemon Athletica is a main competitor of Athleta in the United States. Lululemon Athletica was founded by a man named Dennis “Chip” Wilson in Vancouver, B.C. in the year 2000. He was a firm believer in yoga and promoted women to be into fitness. The brand then became wildly popular and stores opened around the United States, Australia, and Great Britain. Lululemon, like Athleta, partners with studios, but they also sell their clothing in high-end fitness studios like, SoulCycle, Pure Barre, Equinox, and CorePower Yoga. Lululemon, with it’s link with higher-end studios, suddenly became a cult amongst women. The signature “horse shoe” logo would be noticed by famous yoga-gurus and seen on every yogi woman in class. Though Lululemon did dominate women’s fitness wear, their sales have dropped due to many poor public relation handling. In 2007, New York Times reported that they have ran a laboratory test on20 Lululemon’s Vitasea fabric, which claimed to have seaweed fibers embedded into the fabric while feeling like cotton and promoting moisture. The lab results showed that there was no significant difference between a regular cotton T-shirt and the Vitasea fabric. Lululemon then21 removed all health claims of its “seaweed-based” products in Canada. In 2010, the company had Peterson, H. Business Insider, 201419 Novellino, T. Upstart Business Journal, 201420 Story, L. The New York Times, 200721 !14
  • 15. to recall all their reusable bags, which were found to contain small traces of lead. In 2012, a swimwear line had to be discontinued for being see-through when wet. In 2013, Lululemon22 announced a recall on 17% of their black yoga pants for being unintentionally transparent, which was a clear sign that the cult-like company, after many product blunders, had an image issue. The recall caused a shortage and a financial blow to the company, which lead to the step down of the company’s Chief Executive Officer, Christina Day. This resulted in a damage to Lululemon’s brand and reputation. Though Lululemon still has a strong follower base, Athleta has been known to follow Lululemon in hopes it will attract their clients.23 VI. Marketing Plan London, United Kingdom is a perfect location for Athleta to enter into the international market. In 1987, the parent company opened their first international Gap store in the United Kingdom. Athleta could use it as a marketing platform and learn the success and failures of the24 process. Due to the Athleta’s products and services offered, the retail space would have to be at least 2,000 sq. ft. in order to have enough room for its products and in-store fitness classes Athleta would offer. Based on Colliers International’s website, a retail space on Carnaby St. is25 available to rent for £530,000 per annum (£44,167 per month) or $852,820 ($68,819 per month), additionally a service charge that is estimated to be £26,301 per annum . The 2,615 sq. ft. retail space is separated into two floors; the ground floor being 1,313 sq. ft. and the basement being 1,314 sq. ft.. This retail space would receive a high number of foot traffic since its nearest Tube Suddath, C. Bloomberg, 201422 Maheshwari, S. Bloomberg, 201423 Gap Inc., 201424 see figure 325 !15
  • 16. stations are Oxford Circus and Piccadilly Circus; both are a 10 minute walk to Carnaby Street are in the heart of the Soho District. Carnaby Street is known for its trendy streetwear, urbanwear, activewear, and footwear. This retail space neighbors other high-end retailers like Diesel, The North Face, American Apparel, and Puma Store and it is walking distance from a spinning studio, H2 Bike Run, and a fitness club called The Third Space. Athleta, in London, should continue to provide 30% discounts to certified fitness trainers and instructors and partner with local fitness studios and instructors to provide free in-store classes for their customers. Cleverly, this retail space is about 0.7 miles away or a 14 minute walk from the nearest Lululemon store. Gap observed how Lululemon rapidly grew in the United States and opened Athleta stores nearby. Gap wittily uses the traffic from Lululemon to attract their customers in with their26 lower prices, but offering better, if not equal, products. Due to Lululemon’s yoga pants recall in 2013, many retailers like Athleta are taking advantage of the situation and engaging with Lululemon’s ex-customers. By partnering with local fitness studios and instructors and engaging with the local community, Athleta would be able to adapt to the London culture and bring brand awareness. A. Target Market Athleta is a premier activewear clothing company that is geared towards a woman who is always in motion. Athleta’s target customer is a woman between 30-50 years old, striving to juggle a successful career and her family. Athleta’s current campaign has a slogan of “Power to the She”. This embraces woman empowerment and encourages all woman to get active and take her life into control. An Athleta customer is the one who sneaks a pilates class in-between Maheshwari, S., Bloomberg, 201426 !16
  • 17. meetings, goes jogging when the kids are in school, or has no time to go home and change to meet up with her girlfriends for happy hour after the gym. From outfits for leisure to an outfit for kickboxing class, Athleta provides the perfect athleisure products for every type of busy woman. VII. Conclusion During 2014, the fashion industry merged with the sports and active industry. Together, they formed an ongoing trend of fashionable, fitness apparel with increased the sales in many retailers. Brands that specialized in activewear saw a higher demand in their products, which allowed them to get creative and form new technologies into their clothing pieces. The activewear industry will continue to grow with the the increasing need to “look fit, but fashionable”. Athleta provides products that promote a healthy and practical lifestyle while looking as fabulous as ever. In conclusion, Athleta is ready to broaden its audience to the international market; starting in London, United Kingdom. Foreign activewear brands have already entered into the U.K. market and have proven to be successful by providing exclusive products and services to the consumers. The provided marketing plan above shows a careful analysis of London’s demographic, tourism effect on the economy, competitors, and an area that Athleta would be suitable to open into. With Athleta’s parent company, Gap Inc. who has three successful international brands, Athleta does have the potential to be the fourth international brand of the world famous corporation. !17
  • 18. Works Cited Athleta. Retrieved December 2, 2014, from http://www.athleta.com Gap Inc. (2014, January 1). Key Facts. Retrieved December 7, 2014, from http://www.gapinc.com/content/gapinc/html/aboutus/keyfacts.html Lululemon. Retrieved December 2, 2014, from http://www.lululemon.com Maheshwari, S. (2014, July 17). Gap's Athleta Stalks Lululemon One Yoga Store at a Time. Bloomberg. Retrieved December 6, 2014, from http://www.bloomberg.com/news/ 2012-07-17/gap-s-athleta-stalks-lululemon-one-yoga-store-at-a-time.html Moin, D. (2014). Gap Inc.'s Athleta Steps Up Expansion. Women's Wear Daily. Retrieved December 2, 2014, from http://www.wwd.com/retail-news/trends-analysis/athleta-ups- profile-with-fashion-show-7870619 Novellino, T. (2014, June 25). As Lululemon's profits slip, 6 rivals to watch from Athleta to Sweaty Betty to Cory Vines. Upstart Business Journal. Retrieved December 2, 2014, from http://upstart.bizjournals.com/multimedia/slideshows/2014/06/as-lululemon- s-profits-slip-6-rivals-to-watch.html Office For National Statistics. (2014, May 8). 16.8m overseas visits to London in 2013, up 43.5% in 10 years. Retrieved December 6, 2014, from http://www.ons.gov.uk/ons/rel/ott/ travel-trends/2013/sty.html Paton, E. (2014, November 7). Nike and rivals such as Lululemon battle for ‘athleisure’ crown. Fashion Trend. Retrieved December 2, 2014, from http://www.ft.com/intl/cms/s 0/0ea28d2a-654c-11e4-91b1-00144feabdc0.html#slide0 Peterson, H. (2014, November 21). Nike Just Launched A Direct Threat To Lululemon. Business Insider. Retrieved December 2, 2014, from http://www.businessinsider.com/nike-just- launched-a-threat-to-lululemon-2014-11 RETAIL UNIT TO LET. (2014, May 12). Retrieved December 5, 2014, from http:// www.colliersproperty.co.uk/high-street-to-let/london/R60038 !18
  • 19. Quackenbush, J. (2014, February 28). Gap calls 2013 ‘breakout year for Athleta’. North Bay Business Journal. Retrieved December 2, 2014, from http:// www.northbaybusinessjournal.com/88434/gap-calls-2013-breakout-year-for-athleta/ Record number of visits to London. (2014, May 8). British Broadcasting Corporation. Retrieved December 6, 2014, from http://www.bbc.com/news/uk-england-london-27323755 Sherman, L. (2014, June 5). Is Activewear the New Denim?. The Business of Fashion. Retrieved December 2, 2014, from http://www.businessoffashion.com/2014/06/is- activewear-the-new-denim-lucas-hugh-lululemon-athleta.html Story, L. (2007, November 13). 'Seaweed' Clothing Has None, Tests Show. The New York Times. Retrieved December 3, 2014, from http://www.nytimes.com/2007/11/14/business/ 14seaweed.html?pagewanted=all&_r=0 Suddath, C. (2013, March 28). What Lululemon's Yoga Pants Recall Reveals. Business Week. Retrieved December 3, 2014, from http://www.businessweek.com/articles/2013-03-28/ what-lululemons-yoga-pants-recall-reveals Sweaty Betty. Retrieved December 2, 2014, from http://www.sweatybetty.co.uk The London Plan. (n.d.). London's Retail Shopping Industry. Retrieved December 6, 2014, from http://www.uncsbrp.org/retail.htm The NPD Group. (2014, September 3). Activewear Growth Sets Pace For Overall Apparel Market. Retrieved December 6, 2014, from https://www.npd.com/wps/portal/npd/us/news/press- releases/activewear-growth-sets-pace-for-overall-apparel-market/ Trading Economics. (2014, December 6). United Kingdom GDP 1960-2014. Retrieved December 6, 2014, from http://www.tradingeconomics.com/united-kingdom/gdp !19
  • 20. Figures Figure 1: Reserve in Store !20 Figure 2: Basic Yoga pants comparison Left to Right: Lululemon Skinny Groove $98-108, Sweaty Betty Ashtanga Yoga Legging $85, Nike Dri-FIT Knit $100, Athleta Chaturunga Tight $74. Photo Courtesy of lululemon.com, sweatbetty.co.uk, nike.com, athleta.com Figure 3: Carnaby Street Retail Space 11-12, Carnaby Street London, W1F 9PQ Left: Photo Courtesy of colliersproperty.co.uk Right: Photo Courtesy of visit londontown.co.uk Photo Courtesy of athleta.com
  • 21. Figure 4: Carnaby Street location relative to nearby Tube Stations. Photo courtesy of londontown.com !21