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

Facebook

Lululemon Social Media

Instagram

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