Grace Andrews, Maddie Brown, Jenna Chamblee, Kristin FreemanGroup Brand Audit Project

FTM 382-001 Intermediate Textile Brand Management and Marketing

Brand Background ● Chip Wilson: founder of lululemon● Lululemon was founded in 1998 and the first real store opened

in 2000 in the beach area of Vancouver BC called Kitsilano. ● The original idea of the store was to be a community hub where

consumers could educate themselves on physical aspects of a healthy lifestyle and mental aspects of living a powerful lifestyle full of opportunity.

○ The focus of the lifestyle training shifted to one staff member and lululemon continued to expand in order to provide more opportunities, so more stores were opened.

● Lululemon also recently added a menswear section to their clothing line.

● There was a major setback in the company’s progress as their most popular product, women’s leggings, was found to be of inadequate quality and see-through material.

"Frankly some women's bodies just don't actually work for it," Wilson had said. "They don't work for some women's bodies...it's really about the rubbing through the thighs, how much pressure is there over a period of time, how much they use it," said Wilson.

Brand BackgroundMantra, Points of Parity, and Points of Difference

● The “lululemon manifesto” that describes what they are passionate about and believe in, emphasizing their love for sweating, drinking water, and being outside.

● Points of parity:○ The apparel product offerings are

similar between brands○ All are capable of performing the same○ Similar brands share the same target

market as well as marketing techniques. ● Points of difference:

○ Offers athletic wear that makes women feel sexy while wearing it, not just fulfill the performance need.

○ The type of comfortable fabric used in all lululemon products.

○ Has created a “yoga class like” environment feel when you walk in to a store that is a unique experience compared to other athletic wear stores.

Strengths● Customer loyalty● Stylish twist on

athletic apparel● Strong brand

equity● Recognizable brand● Brand innovation● Instilling

confidence in women

Weaknesses● Poor public

relations ● Slim marketing● Low market share

Opportunities● Online shopping● Upcoming

innovation

Threats● Competition● Luxury, not a

necessity

Brand Inventory● Name: lululemon● Logo: stylized "A" that was made

● Colors: Red, white, black● Packaging: signature red, white and

black bag with Lululemon’s manifesto of a healthy lifestyle and what they are passionate about

Secondary Brand Associations● “Yoga” immediately comes to mind● Characteristics including, expensive,

active, fashionable, workout, gym, apparel, women, running, etc.

● The public associates price and active wear with the brand

● An unfortunate association with lululemon is founder, Chip Wilson, and the see-through leggings, in addition to his insulting words, are left on the shoulders of the company.

Brand Exploration● Lululemon’s biggest

competitors are Nike and Under Armour

● Points of difference○ Female-targeted○ Lack of quality

● Points of parity ○ Technologies behind

the products○ Sweat wickability○ breathability

Brand Exploration 1. Place

a. lululemon sells online and in their own stores b. Competitors sells online, in their own stores, as well as

retailers such as Dick’s Sporting Goods and other various department stores

2. Producta. They all offer similar products b. lululemon products are more catered toward women

3. Pricea. All three brands have similar prices b. Nike and Under Armour carry some discounted items which is why

quality is crucial with lululemon 4. Promotion

a. Nike and Under Armour have altered marketing focus to target more women

b. Lululemon advertises athletic healthy lifestyles while Nike and Under Armour focus more on sports

Brand Exploration

● Corporate Image and Credibility○ Controversy over the brand’s credibility

with the quality in the see-through leggings

○ Founder Chip Wilson’s comment about why he chose to call his company lululemon because he thought it was funny that Japanese people couldn’t pronounce the letter “L”

Future Projections

Business Insider published an article titled “10 Brands That Will Die Out In 2015”

1. Lululemon2. DirecTV3. Hillshire Brands4. Zynga5. Alaska Airlines6. Russell Stover7. Shutterfly8. Time Warner Cable9. BlackBerry

10. Aeropostale

What Now?

● Lululemon needs to revitalize their brand in response to their projected failure

● Best ways they can do this:1. Maintain strong presence in Active Leisure apparel market2. Downplay negative associations of the brand with Chip

Wilson, former CEO3. Establish a brand extension of lightweight shoes for women4. Redefine their target market and own it instead of not

addressing it5. Provide additional events and services to strengthen their

personal relationship and loyalty with customers

Strategic Recommendation 1Rise in Trend of Active Leisure Remains Opportunity for Lululemon

● Lululemon was a leader in harnessing the opportunities of involvement in the Active Leisure trend, especially for women

● Large corporate competitors are beginning to saturate this market as well, without having previous quality issues (Nike, Under Armour, etc.)

● Lululemon needs to revamp their quality control testing so that see through leggings will never be a repeat issue for the company and their image

● If they don’t, market share will be lost to companies like Nike and Under Armour who offer products often seen as substitutes for some lululemon products

Strategic Recommendation 2Downplay Chip Wilsons Association with Company

● Chip Wilson offended many women and never sincerely apologized, making not only himself, but the lululemon brand as a whole look rude and arrogant

● Christine Day, the new CEO of the company, needs to take on the responsibility to be a very public face and representation of lululemon and what the brand stands for

● replacing Chip with a different public brand figure is the only way to hopefully erase the negative associations he brought to the company

“I'm sad for the people at Lululemon. . . that have really had to face the brunt of my actions. I take responsibility for all that has occurred and the impact it has had on you. I'm sorry to have put you all through this.” -Chip Wilson

Strategic Recommendation 3

Brand Extension

● Become a full lifestyle brand by offering all the product needs to fulfill the lululemon lifestyle

● The lululemon brand is missing shoes (already have yoga mats, water bottles, socks, and apparel)

● Offer a lightweight shoe that women can wear to-and-from yoga classes and even keep on during activity

● Offer a different, yet lightweight shoe that provides enough support for running

● Consumers could now be completely outfitted in the Lululemon brand

?

Strategic Recommendation 4Redefine Target Market

● Does the company even know who they’re really targeting?● women from early teens to late 50s and of different body

shapes and lifestyles all use and wear lululemon products● On-the-go mom, a single, working professional, or a teenage

girl trying to keep up with the active leisure trend● The targeted male profile is not communicated well ● If Chip Wilson was not out of line saying that “s ome women's

bodies just don't actually work” for lululemon clothing, then the company needs to own up to that claim and be honest about who they want wearing their clothes and what they want them doing while wearing them

● Their consumer range does not have enough direction or focus to be successful in the long run.

● By redefining their target market, lululemon can change their marketing to fit a certain consumer and increase those consumers’ buying habits instead of trying to reach a multitude of consumers without being able to relate to them.

Strategic Recommendation 5Services to Build Customer Relationships● Expand additional offerings and services

to incorporate all of the activities that they target in order to strengthen their foundation as a fully functioning lifestyle brand. ○ Yoga is highlighted as a major

activity category, but running is as well, and lululemon is not currently offering regular services catered to running activities like they are for yoga.

○ These additional offerings would further separate lululemon from their rising competitors, Nike and Under Armour, because those companies do not offer events similar in nature.

Works CitedAbout. (n.d.). Retrieved November 30, 2014, from https://www.heylululemon.com/about Bhatia, M. (2011, October 1). Lululemon Marketing Study. Retrieved October 16, 2014. Helliker, K. (2010, June 13). Lululemon Grows Fast on a Slim Budget. Retrieved October 16, 2014, from http://online.wsj.com/news/articles/SB10001424052748703960004575481890366935552?mod=wsj_share_twitter&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052748703960004575481890366935552.html?mod=wsj_share_twitter

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Roberts, Meg. (11 August 2011) -Not Just Another Chain: Lululemon’s Community-Centric Model. Retrieved October 15, 2014, from http://megroberts.wordpress.com/2011/08/11/not-just-another-chain-lululemons-community-centric-model-aids-revenue-growth/ Slide Share- Lululemon Brand Audit. (12 December 2012). Retrieved October 14, 2014 from http://www.slideshare.net/JoannaKomvopoulos/lululemon-athletica-brand-audit Steigrad, A. (2013). Weighing lululemon's recall woes. WWD, 205(58), 6. Retrieved from http://proxying.lib.ncsu.edu/index.php?url=/docview/1351978451?accountid=12725 SWOT ANALYSIS OF UNDER ARMOUR. (n.d.). Retrieved from http://www.managementparadise.com/article/849/swot-analysis-of-under-armour The Lululemon Manifesto. (n.d.). Retrieved September 15, 2014, from http://www.lululemon.com/about/manifesto Urstadt, B. (2009, July 26). Lust for Lulu. Retrieved November 28, 2014, from http://nymag.com/shopping/features/58082/ Wexler, E. (2012, September 28). Brands of the Year: Lululemon takes local to the next level. Retrieved October 15, 2014, from http://strategyonline.ca/2012/09/28/brands-of-the-ye Who Is Lululemon Athletica? (n.d.). Retrieved September 15, 2014, from http://www.lululemon.com/about/