Lauren Byrd MKTG 7546Digital Strategy Critique
Lululemon Athletica was founded in 1998 by Chip Wilson.
Lululemon opened its first store in November 2000 in Kitsilano, a beach area of Vancouver, BC.
For the first quarter of fiscal 2014, Lululemon expected net revenue to be in the range of $377 million to $382 million and the company ended the 2014 fourth quarter on February 2, 2014 with 254 stores in North America and Australia.
About/History
SWOT
Direct Competitors Nike Adidas Fabletics Athleta Under Armour
Indirect Competitors J. Crew Urban Outfitters GAP American Apparel
Competitor Information
Strengths Strong global brand Lots of celebrity/athlete
endorsements Swoosh known
worldwide
Weaknesses Labor/ factory conditions Can be expensive at full
price Online prices can be high
compared to sales in storesOpportunities
Fashion forward clothes, new yoga line
Strong social media presence for influence
Threats Very competitive brands
in athletic gear, tennis shoes, etc.
Fake imitations and replicas sold worldwide
Nike
Lululemon embraced see through yoga pant scandal & posted ad to website and social media after Jimmy Kimmel commercial
Jimmy Kimmel
Anything new?
https://www.youtube.com/watch?v=hZkSFhfL-hM
Brand loyalty through community Experience = drive consumer base Grassroots marketing approach
Rely on community for promotion through word-of-mouth Website for selling clothing Each store has its own personal FB page to promote community events
Social media – promote healthy lifestyles Facebook Twitter Instagram Pinterest YouTube
Shit Yogis Say Previews of Clothing
Current digital marketing practices
Lululemon Social Media
Social Media
Facebook page (if only Lululemon is searched, the official Facebook page is not shown, it will only come up if the words ‘Athletica’ are also included in the search)
Facebook Confusion?
A larger advertising strategy should be formed More visibility online
Promotion Strategies Discounts, Loyalty program
Social media should attract more than one segment Different videos & pictures that aren’t just women
and yoga Respond to customers with complaints & show
that it has been resolved on website
Executive Summary
Be more searchable with an encompassing online presence
Become more segmented to other age and gender groups in social media and marketing efforts
Break stereotypes that Lululemon is just yoga apparel online and in stores, and improve customer relations and feedback on the website
Increase sales and loyal customers
Goals and Strategies
Online advertising Google ads, Facebook ads, Banner ads
Fix search name on Facebook page Personal store FB pages get confusing and only
some personal stores manage Twitter accounts Good to connect with other stores but need
to stem off of main page
Tactics
Break gender/age/activity stereotypes Show videos/pictures of people using/wearing
Lululemon in different activities on social media other than just yoga and use models that are various ages and gender
Promote young kids and men more on social media and web pages
New youth line – Ivivva (PROMOTE IT)
More Tactics
Create an app Om finder is a yoga finder tool created by
Lululemon but the store does not have its own app
Link app with loyalty program Respond to quality issues with answers and refunds
Wunder Under pants are receiving bad reviews on the website In order to get rid of these reviews, people must
be refunded if the pants are not of good quality
More Tactics
Om Finder App
Product Reviews
Loyalty Program Loyalty program
Marketed in stores, websites, and social media. Information will be given by staff to customers during the purchase
10 credit points will be earned for every $100 spent, when reaching 100 credit points a gift is given. The gift could be merchandise or perhaps a free fitness class at a participating gym, workout, or yoga studio.
Quarterly discounts Weekly updates on new products
Keep expanding product line More promotion offers across the wide range of stores Allow engagement and ideas from community and not just
ambassadors
More Tactics
Sales growth, operational growth, and product innovation are all KPI’s that would best demonstrate a good digital marketing performance
Hootsuite Google Analytics
Monitor social media accounts Monitor website for product reviews
Measurement/Metrics
Compare Rate of Investment (ROI) before and after the marketing strategy implementation.
Compare the customer engagement by viewing the number of tweets, Facebook views, etc. logged compared to the past. Increased traffic to the website should also increase.
View Google analytics to see if traffic to the site has increased since the marketing strategies have launched.
Measurement/Metrics
More online advertising Men & children used more in ads to break
stereotypes Product reviews on website resolved Loyalty program, app, better customer
purchasing online and in store
Summary
About Us. (n.d.). our history. Retrieved May 1, 2014, from http://www.lululemon.com/about/history
lululemon athletica inc. announces fourth quarter and full year fiscal 2013 results. (2014, March 27). lululemon athletica inc. Announces Fourth Quarter and Full Year Fiscal 2013 Results (NASDAQ:LULU). Retrieved May 1, 2014, from http://investor.lululemon.com/releasedetail.cfm?ReleaseID=835961
Lutz, A. (2013, March 20). 15 Hot Brands Vying To Be The Next Lululemon. Business Insider. Retrieved May 1, 2014, from http://www.businessinsider.com/hot-brands-vying-to-be-the-next-lululemon-2013-3?op=1#ixzz30nDbJUIi
University of Oregon. Lululemon Investment Thesis. (2012, April 17). . Retrieved May 1, 2014, from http://uoinvestmentgroup.org/wp-content/uploads/2012/04/LULU1.pdf
Walker, R. (2009, July 25). Marketing Pose. The New York Times. Retrieved May 1, 2014, from http://www.nytimes.com/2009/07/26/magazine/26FOB-consumed-t.html?_r=0
William Blair's Emerging Growth Stock Conference. (n.d.). webcasts, events & presentations. Retrieved May 1, 2014, from http://investor.lululemon.com/events.cfm
http://finance.yahoo.com/q/co?s=LULU+Competitors
References