Lululemon

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CMA case study on Lululemon

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Lululemon

  1. 1. Team: KUMARIE PERERA MONIQUE TANG KEVIN SMITH LAUREN TURCHET SURESH PARMACHAND
  2. 2. Our Brand FUN Founded on the belief that great athletic apparel can help people to live longer, healthier and more fun lives. Foundational lululemon belief: a company can only be truly great when it has close relationship to the communities it serves. Holistic Ethical Stylish Active
  3. 3. Strengths Weaknesses Opportunities Threats Leverage our strengths <ul><li>Quality </li></ul><ul><li>Innovation (Technical aptitude) </li></ul><ul><li>Brand name and logo </li></ul><ul><li>Relationship with the community we serve </li></ul><ul><li>Sustainability </li></ul><ul><li>Distribution (store front) </li></ul><ul><li>Consumer focused (design for guest impact) </li></ul><ul><li>Niche Market Leader </li></ul><ul><li>Quality </li></ul><ul><li>Innovation (Technical aptitude) </li></ul><ul><li>Brand (Equity, Logo, Stores) </li></ul><ul><li>Corporate Social Responsibility </li></ul><ul><li>Sustainability </li></ul><ul><li>distribution (store front) </li></ul><ul><li>Consumer focused (design for guest impact) </li></ul><ul><li>Niche Market Leader </li></ul><ul><li>Product Technology (Luon, Silverescent) </li></ul><ul><li>Local centricity (poor best-practice sharing) </li></ul><ul><li>Perceived female focus </li></ul><ul><li>Price Point </li></ul><ul><li>Inventory </li></ul><ul><li>Perceived as yoga only </li></ul><ul><li>Access to stores </li></ul><ul><li>Product diversification </li></ul><ul><li>Line extensions, accessories … </li></ul><ul><li>Leveraging perceived expertise </li></ul><ul><li>Category Leader, expert </li></ul><ul><li>Buyout </li></ul><ul><li>Fad potential </li></ul><ul><li>Low barriers to entry </li></ul><ul><li>Expansion </li></ul><ul><li>Global economic state </li></ul><ul><li>Unfavourable exchange </li></ul>
  4. 4. Product Differentiation Market Price Low High High SWOT <ul><li>Product Differentiators: </li></ul><ul><li>Luon </li></ul><ul><li>Silverescent </li></ul><ul><li>Product assortment </li></ul><ul><li>Brand Perception (in the mind of the consumer): </li></ul><ul><li>High price sensitivity </li></ul><ul><li>Strong affinity to quality </li></ul><ul><li>Eco-concious brand </li></ul><ul><li>Community based thinking </li></ul><ul><li>Female dominant brand </li></ul>
  5. 5. Service Differentiation Market Price Low High High Perceptual Map <ul><li>Service differentiators: </li></ul><ul><li>Custom tailoring (no charge) </li></ul><ul><li>Community advocates </li></ul><ul><li>Educators are practitioners of yoga </li></ul><ul><li>Educator knowledge of product and guidance on purchase </li></ul><ul><li>Embrace voice of the customer in innovation </li></ul><ul><li>Brand perception(in the mind of the consumer): </li></ul><ul><li>Strong customer service </li></ul><ul><li>Grass roots involvement </li></ul><ul><li>Yoga experts </li></ul><ul><li>Meditation in motion </li></ul>
  6. 6. Our Journey Yoga shows the way
  7. 7. Our Responsibility A manifesto born from a group of Yogis.
  8. 8. Strategic Imperatives Niche Market Expansion Related Diversification Guest Lifecycle Management Product Expansion GAP Adventure Partnership lulu-Sivananda Experience my lulu my colour Pinetree Acquisition petite lulu lulu mom Outerwear expansion Water campaign Brand Mission: To elevate the involvement of the Lululemon in the lives of our guests through effective use of lifecycle management and customer touch point management . lulu strategic imperatives
  9. 9. Survival of the smartest and most holistic Evolution 6-11 months 1 – 7 years 8-10 years Current State Transition State Change Management Model Future State <ul><li>Product </li></ul><ul><li>Expansion: </li></ul><ul><li>Petite Lulu </li></ul><ul><li>Lulu Mom </li></ul><ul><li>Outerwear </li></ul><ul><li>Guest Life </li></ul><ul><li>Cycle Mgmt: </li></ul><ul><li>My Lulu </li></ul><ul><li>Lulu Loyalty </li></ul><ul><li>My Colour </li></ul><ul><li>Sustainable: </li></ul><ul><li>Prana </li></ul><ul><li>Water </li></ul><ul><li>Niche Market </li></ul><ul><li>Expansion: </li></ul><ul><li>GAP Adventures </li></ul><ul><li>Lulu-Sivananda Experience </li></ul><ul><li>Related Diversification: </li></ul><ul><li>Pinetree Acquisition </li></ul>
  10. 10. 30% AGR Growth Bridge Continued growth over 10 year period to begin at 2010
  11. 11. Marketing expenses pegged at 3% of Revenue Commitment
  12. 12. Customer centric communications Creating Dialogue Mass media advertising Direct Marketing Sales promotion, public relations Personal selling Above-the-line and below-the-line communications
  13. 13. Uninitiated Practitioner Ambassador Mystified Wanderers Life Cycle Management Growing with our Customers.
  14. 14. my lulu my lulu Virtual educator Powered by: my lulu Member since:2009 Janet Doe 123 898 245
  15. 15. <ul><li>Consumer Traffic Patterns: </li></ul><ul><li>Consumers shop in a race track pattern </li></ul><ul><li>84% of shoppers miss over half of the store </li></ul><ul><li>Over 50% never visit an interior aisle </li></ul><ul><li>Almost 50% are in the store less than 10 minutes </li></ul>Consumer Flow Source: Valassis B Shelving Table Shelving Table Shelving Table Counter Merchandise Walls Merchandise Walls Merchandise Walls Merchandise Walls C D E A A B C D E Transition Zone Outerwear Women’s wear Men’s wear Checkout A B C D F Transition Zone Outerwear Zone Yoga Zone Martial Zone Checkout & Customer Experience Merchandise Wall Merchandise Wall Counter Counter A F Merchandise Wall B C E D E New Products and my lulu stations G Change rooms and Inventory G G G G
  16. 16. Design for Water When water comes everything changes.
  17. 17. Joint Venture A passion for making sure you get behind the scenes to experience the real world in an authentic and sustainable manner.
  18. 18. Jnana Yoga (Yoga of Wisdom) Raja Yoga (Yoga of Self Control) Bhakti Yoga (Yoga of Devotion) Karma Yoga (Yoga of Action) lulu – Sivananda Experience Peace of mind is happiness
  19. 19. lulu mom The Practice of Yoga can help you prepare your mind and body for labor and birth as this helps you focus, to concentrate and keep you healthy.
  20. 20. petite lulu Yoga will increase their well-being, reduce stress, and purify their little, physical bodies.
  21. 21. lulu outerwear Negative…ions
  22. 22. Merger & Acquisition Meditation in Motion
  23. 23. “ At the end of the day when you are 80 or 90 you want to know that you have made a difference in life.” -Chip Wilson

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