Professional Documents
Culture Documents
STEVEN BAYLEY
EMILY BEALE
YANA DUBINSKY
ELIZABETH PEEDIN
MGMT 6722
Dr. Karriker
About lululemon….
they’re the
lululemon
ladies!”
Read more:
http://www.blisstree.com/2013/08/14/fitness/optical-illusion-look-like-a-
lululemon-lady-even-though-youre-poor/#ixzz2gOfyUCB7
What does the lululemon customer look like?
Woman
Fit
Healthy
Active
Athletic
Yoga
What does the lululemon customer look like?
Woman
Fit
Healthy
Active
Athletic
Yoga
Wealthy
What does the lululemon customer look like?
Woman
Fit
Healthy
Active
Athletic
Yoga
Wealthy
Educated
Sophisticated
Lucky LuLu
Lindsey Cooper
• 32
• Marketing Executive
• University of Richmond alum
• Married, No Kids (froze eggs at
29, just in case)
• Orders groceries from Whole
Foods online and has them
delivered
• 2400 Sq. Ft. Condo in Chevy
Chase, MD with her husband
Reed, a senior analyst for The
Brookings Institution
• Just bought a 2014 Toyota
Seqouia
• HHI: 230K
Lululemon Manifesto
It is a lifestyle!!!
The pursuit of happiness
is the source of
unhappiness
Dance, sing, floss, and
travel
Practice yoga so you can
remain active in physical
sports as you age.
The Insight
Lulu-
lemon
Price/Perceived Quality and Image
Prana Under
Athleta Armour
Nike
New
Balance
Reebok
Adidas
Old
Low
Navy
Niche Broad
Broad v. Niche Market
Competitive Forces
Competition from rival sellers – vigorous competition from multiple large
companies such as Nike, Under Armour , Adidas, Reebok, in addition to multiple
smaller ones such as Lorna Jane, Lole, and Gap Athleta
Competitive Forces
Competition from rival sellers – vigorous competition from multiple large
companies such as Nike, Under Armour , Adidas, Reebok, in addition to multiple
smaller ones such as Lorna Jane, Lole, and Gap Athleta
Competition from potential new entrants to industry – Vary: low from new
players due to time and funds, high from current apparel designers and retailers like
Gap
Competitive Forces
Competition from rival sellers – vigorous competition from multiple large
companies such as Nike, Under Armour , Adidas, Reebok, in addition to multiple
smaller ones such as Lorna Jane, Lole, and Gap Athleta
Competition from potential new entrants to industry – Vary: low from new
players due to time and funds, high from current apparel designers and retailers like
Gap
Competition from rival sellers – vigorous competition from multiple large
companies such as Nike, Under Armour , Adidas, Reebok, in addition to multiple
smaller ones such as Lorna Jane, Lole, and Gap Athleta
Competition from potential new entrants to industry – Vary: low from new
players due to time and funds, high from current apparel designers and retailers like
Gap
Supplier bargaining power – in introductory phase, high bargaining power due
to increased investment and desire to work with leading fabric suppliers; 90% of
apparel production in Asia but will use US/Canada production facilities as needed
Competitive Forces
Competition from rival sellers – vigorous competition from multiple large
companies such as Nike, Under Armour , Adidas, Reebok, in addition to multiple
smaller ones such as Lorna Jane, Lole, and Gap Athleta
Competition from potential new entrants to industry – Vary: low from new
players due to time and funds, high from current apparel designers and retailers like
Gap
Supplier bargaining power – in introductory phase, high bargaining power due
to increased investment and desire to work with leading fabric suppliers; 90% of
apparel production in Asia but will use US/Canada production facilities as needed
Customer bargaining power – high due to: low cost of switching, buyers ability
to delay purchases, multiple other brands from which to choose
SWOT Analysis
Strength
Trademarked fabrics
Community involvement – offered free yoga class on monthly
basis
Employee training
Innovation
Style/comfort
Multiple green initiatives
Quality – products designed to sustain 5 years of intended use
while maintaining functional
Brand identity
SWOT Analysis
Weakness
Strength
Narrow product line,
Trademarked fabrics
High retail price
Community involvement – offered free yoga class on monthly
basis Quality control/supply chain
Employee training Marketing targeted to mostly yoga instructors/studios
Innovation Loss of customer service with increased scale
Style/comfort Weak brand recognition
Multiple green initiatives
Quality – products designed to sustain 5 years of intended use
while maintaining functional
Brand identity
SWOT Analysis
Weakness
Strength
Narrow product line,
Trademarked fabrics
High retail price
Community involvement – offered free yoga class on monthly
basis Quality control/supply chain
Employee training Marketing targeted to mostly yoga instructors/studios
Innovation Loss of customer service with increased scale
Style/comfort Weak brand recognition
Multiple green initiatives
Quality – products designed to sustain 5 years of intended use
while maintaining functional
Brand identity
Opportunity
Expand product line
Serve additional market segments
Expand into additional geographic markets
Increased demand in athletic apparel
Fitness craze
SWOT Analysis
Weakness
Strength
Narrow product line,
Trademarked fabrics
High retail price
Community involvement – offered free yoga class on monthly
basis Quality control/supply chain
Employee training Marketing targeted to mostly yoga instructors/studios
Innovation Loss of customer service with increased scale
Style/comfort Weak brand recognition
Multiple green initiatives
Quality – products designed to sustain 5 years of intended use
while maintaining functional
Brand identity
Opportunity Threats
Expand product line Increased competition from current large players in the
market,
Serve additional market segments
Copy cats
Expand into additional geographic markets
Economy
Increased demand in athletic apparel
New entrants
Fitness craze
Risk of banking on niche markets
SWOT Analysis
Weakness
Strength
Narrow product line,
Trademarked fabrics
High retail price
Community involvement – offered free yoga class on monthly
basis Quality control/supply chain
Employee training Marketing targeted to mostly yoga instructors/studios
Innovation Loss of customer service with increased scale
Style/comfort Weak brand recognition
Multiple green initiatives
Quality – products designed to sustain 5 years of intended use
while maintaining functional
Brand identity
Opportunity Threats
Expand product line Increased competition from current large players in the
market,
Serve additional market segments
Copy cats
Expand into additional geographic markets
Economy
Increased demand in athletic apparel
New entrants
Fitness craze
Risk of banking on niche markets
Value Chain
Operations:
Distribution: Profit
Supply Chain streamlined Sales and Margin:
design and facilities in
Management: Vancouver-BC, marketing:
development Service:
received real Sumner, community
processes. “educators”, Net PM
time input from Washington, based, yoga
Production is “guests”, 17.1%
customers, short and instructors
the only lululemon about 15%
time to receive Melbourne, ambassadors,
and approve activity that is manifesto above
Australia; community
samples outsourced to industry
online retail coordinators
low cost average
store
countries
Value Chain
Operations:
streamlined Distribution: Profit
Supply Chain facilities in Sales and Margin:
design and
Management: Vancouver-BC, marketing:
development Service:
received real Sumner, community
processes. “educators”, Net PM
time input from Washington, based, yoga
Production is “guests”, 17.1%
customers, short and instructors
time to receive the only lululemon about 15%
Melbourne, ambassadors,
and approve activity that is manifesto above
Australia; community
samples outsourced to industry
online retail coordinators
low cost average
store
countries
Operations:
streamlined Distribution: Profit
Supply Chain facilities in Sales and Margin:
design and
Management: Vancouver-BC, marketing:
development Service:
received real Sumner, community
processes. “educators”, Net PM
time input from Washington, based, yoga
Production is “guests”, 17.1%
customers, short and instructors
time to receive the only lululemon about 15%
Melbourne, ambassadors,
and approve activity that is manifesto above
Australia; community
samples outsourced to industry
online retail coordinators
low cost average
store
countries
Operations:
streamlined Distribution: Profit
Supply Chain facilities in Sales and Margin:
design and
Management: Vancouver-BC, marketing:
development Service:
received real Sumner, community
processes. “educators”, Net PM
time input from Washington, based, yoga
Production is “guests”, 17.1%
customers, short and instructors
time to receive the only lululemon about 15%
Melbourne, ambassadors,
and approve activity that is manifesto above
Australia; community
samples outsourced to industry
online retail coordinators
low cost average
store
countries
General Administration
• Founder – Wilson was CEO 2000-2005
• Remained actively involved as head of innovation department untill2012
Key Success Factors
GROWTH
Growth
GROWTH
Net profit increase of 24x over past five years
Growth
GROWTH
Net profit increase of 24x over past five years
GROWTH
Net profit increase of 24x over past five years
http://www.lululemon.com/education/
http://finance.yahoo.com/q/ks?s=LULU+Key+Statistics