A Market Research Study by: Suzan Genc, Jasmine Smith,Megan Schick, Steve Scheffler, Tyler Forberg

IntroductionFounded in 1998

- “A”-thletically hip

November 2000- Kitsilano, Vancouver, BC

Design/Yoga studio - community hub

“Lululemon is a company where dreams come to fruition”

Background●March 2013

- Quality-control recall●2009-2013 - CEO Remarks

- Lululemon pronunciation- The pill to blame for divorce- Women’s bodies to blame for recall

BackgroundControversial CEO -

Chip Wilson- “Frankly, some women’s bodies

just don’t actually work for the yoga pants”

Source: Business Insider

- Doesn’t even make sizes >12

- Alpha Dog

“Sad for the repercussions of his action”-

http://www.msnbc.com/melissa-harris-perry/lululemon-founder-steps-down

Market Fluctuation

Competitor Market Fluctuation

Under Armour Nike

PurposeTo explore the attitudes of current and

prospective Lululemon consumers in the Chicago market in response to the recent negative publicity

Additional information will be obtained on:How consumers view Lululemon in relation to

competitorsImportance of relevant attributes to consumers

Focus Group MethodPrimary Data Collection MethodFocus group lasted around 2 hoursCreated discussion guide around marketing

problemAsked by 2 moderators and probed for

additional questions if necessary

Focus Group Sample3 focus group participantsAll participants wear athletic wear and have

heard of LululemonOne was a current Lululemon customerThe focus group was conducted at the DePaul

library in April 2015

Quantitative Survey MethodMost surveys were conducted in person or on

the phone We received both qualitative and quantitative

data from our findings

Quantitative Survey SampleSurveyed 113 people

102 current Lulu customers (have shopped there at least once in the past year)

11 non-customersHalf interviewer-administered

surveysHalf self-administered surveys

Focus Group Findings

All of focus group participants agree that Lululemon is a brand for trendy moms

• “She’s cool so she’s probably driving a jeep, you know those cool sleek ones”

• “She’s a cardio active mom”• “She likes to drink tea, lots of tea”

Focus Group FindingsMajority of focus group participants shop sales and price is a deciding factor in purchases

“If I stumble upon a good deal I will buy them”

Quantitative FindingsWord Association and Lululemon

Quantitative Findings Word Association and Lulu’s Competition

Quantitative Findings Word Association and Lulu’s Competition

Quantitative Findings People who do shop at Lululemon don’t do so very frequently

Quantitative Findings

Most Lululemon customers don’t spend any more than $150 per visit

Since visits are infrequent, this doesn’t make for high revenue

Quantitative Findings

According to Lulu customers, the best things about Lulu are:1. Style2. Quality3. Comfort

Quantitative Findings

Most important attributes among everyone:1. Comfortable2. Good fit3. Well-made

Quantitative Findings

Lululemon is comparable to top competitors

Poor score on brand attributes does not account for drop in sales

Quantitative Findings

Lululemon is most preferred and the 2nd most common favorite brand among our sample

Bad publicity did not have a very strong negative impact on current Lulu customers

Quantitative Findings81% of customers

usually buy leggings or yoga pants at Lululemon

Do these customers know about the bad publicity?

Quantitative Findings Most respondents hadn’t heard anything about Lulu in the media

Of those who did:● 54% of respondents

heard about Lulu’s see-through legging problem

● 25% of respondents heard about the CEO body shaming women

● Only 4% have heard that Lulu is growing in popularity

Quantitative FindingsReasonable price is

the 5th most important attribute of the 10 attributes

People view Lulu as being overpriced

Summary of FindingsLululemon customers perceive Lulu as having

desirable productscomfortable, good fit, and well-made relative to top

competitorsAfter the bad publicity, Lulu customers still

prefer Lulu as one of their top athletic wear brands

Summary of FindingsLululemon customers do not spend very much

in relation to how frequently they make purchases → Lulu counts on sales from new customers

Potential customers perceive Lulu to be overpriced, preppy, and prissy

Over 80% of people who heard about Lulu in the media heard something negative

Summary of FindingsIf Lululemon wants new customers, it should

look into:Lowering the priceOffering salesChanging perceptions of who wears Lululemon

ImplicationsWe recommend further research on:

Number of new Lulu customers before, during, and after the bad publicity

Why non-customers have never tried LuluPercentage of non-customers who were exposed to

Lulu’s bad publicity and how they view the brandThe effects of a lower price and offering sales on

current customers and potential customers

Questions?

Bibliographyhttp://www.businessinsider.com/outrageous-remarks-by-lululemon-founder-chip-wilson-2013-12http://thecolbertreport.cc.com/videos/12pe6a/alpha-dog-of-the-week---chip-wilsonhttp://finance.yahoo.com/q/hp?s=LULU&a=00&b=27&c=2012&d=05&e=10&f=2015&g=mhttp://www.businessinsider.com/factors-that-led-to-lululemon-decline-2014-1