Lululemon, founded in 1998 by Chip Wilson, specializes in fashionable athleisure apparel aimed primarily at women, with growing focus on men and children. The company, which operates 350 stores globally and reported nearly $1 billion in profit in 2015, faces competition from major brands like Nike and Adidas while benefiting from trends in health consciousness and the casualization of fitness wear. Recommendations for growth include diversifying product lines, introducing a loyalty rewards program, and leveraging celebrity endorsements.

1. The Key to Continuing
Success
By: Alexis Kelly
Final Project
Creating Customer Value Through Marketing

2. Introduction
• Founded in 1998 by Chip Wilson in
Vancouver, Canada
• Started as a ”One Stop Shop”
• Focused on Female Yoga Enthusiasts
• Wilson believed the yoga products
available weren’t fashionable or
efficient

3. Lululemon sells ”athleisure” apparel
and accessories for women, men,
and girls

4. Company Description
• 350 stores Internationally
• 12,500 Employees Worldwide
• 2015: Profit = $997.2 million
• 10 % growth in sales
• 9% increase in profit
• Created Ivviva brand in 2011 to reach
children
• Focus Switch: Males and Children

5. Marketing Mix
• PRODUCT
• Activewear & Accessories
• PRICE
• Premium
• PROMOTION
• Social Media
• Brand Ambassadors
• Advertisements (Print, Online, TV)
• PLACEMENT
• In-store
• Online

6. Target Market
• Demographics:
• Primary: Women
• Secondary: Males and Young Girls
• Age: 25-45
• Income: High
• Psychographics:
• Lifestyle: Active, Outgoing, and Healthy
• Personality: Social, Extroverted and
Trendy

7. “At lululemon, we’ve made it our
vision to elevate the world from
mediocrity to greatness.”

9. Market Trends & Macro
Analysis
• Health Consciousness
• Physical activity, organic foods, etc.
• Casualization of Fitness Apparel
• ”Athleisure” Market
• Increased disposable income
• Increased apparel spending
• Advancing Technology
• Apps, online shopping, fitness technology
• Low Price Alternatives
• Fitness product line extension

10. • In 2012, 94% of Americans said they
have given thought to the amount
of physical activity they get a day
• In 2012, more than half of
Americans said they were trying to
lose weight by being active
(International Food Information Council Foundation)

11. Market Analysis
• 2015: Global Activewear Market = $270 Billion
• 42% increase in the last 7 years
• 2015 U.S. Sales = $98 billion
• In 2015, the male apparel market grew 1.5% more then
the female market
• Children's Wear Market valued at $160 billion

12. Market Position
Brand Name Percentage %
Nike 20.70
Under Armour 3.90
Adidas 3.50
Skechers 3.10
North Face (The) 2.20
Timberland 2.10
Champion 2.00
Lululemon Athletica Inc. 1.40
New Balance 1.40
Puma North America Inc. 1.00
Other 56.80
"Top Athleisure Apparel Makers, 2015." Market Share
Reporter. Ed. Robert S. Lazich and Virgil L. Burton, III.

13. 30%
24%
14%
32%
Top Women's Athletic Apparel Brands (Online), 2015
Athleta
Lululemon Athletica Inc.
Nike
Other

14. Strategic & Tactical Issues
• Competition
• Low price alternatives
• Nike, Under Armor, Adidas
• Negative Publicity
• Negative WOM
• Product recalls
• Brand Perception
• Yoga gear for females
• Limited Products
• No footwear
• Sizes 0-12

15. Brand value of Lululemon from 2012 to 2015 (in million U.S.
dollars)

17. Strengths
• Unique Designs
• Brand Affinity
• Brand Loyalists (“Lululemon Cult”)
Weaknesses
• Viewed as the Yoga Brand
• High Price
• Negative Publicity
• Size limitation
Opportunities
• Focus on the Male Market
• Loyalty Rewards Program
• Expand Product Line
Threats
• Competition
• Industry Trends

18. Conclusion & Recommendations
Lululemon needs to revisit their value proposition
• Expand Product Line
• Plus Size Line
• Sneakers and Footwear
• International Expansion
• Product Placement
• Movies and TV Shows (Ex. Dancing with the Stars and
Sporting Events)
• Create a Loyalty Rewards Program
• Added value for loyal customers
• Celebrity Endorsement (Face of the Company)
• Ex. Khloe Kardashian, Juliane Hough, Kayla Itness,
Trending Male Sports Player