4. Brand Inventory
Company History
Lululemon Athletica [Lululemon] was
founded by Denis “Chip” Wilson in
1998, after he took a yoga class and was Figure 1. Brand Word Mark & Logo
swept away by the fitness high, but
disappointed by the ill-fitting cotton clothing people wore. Wilson recognized an
opportunity to change the status quo by using innovative design and athletic fabrics to
create a new offering for customers. Wilson started an underground yoga apparel
movement by offering clothing to instructors and relying on their feedback to grow his
business.1
Lululemon opened its first store location in
Vancouver, Canada in 2000, developing an
environment within the store where
consumers could learn, exchange ideas, and
contribute to a healthy living community
through their love of yoga. The company
soon took this idea of wellness education a
step further, training staff as educators not
only about product performance, but also
health and fitness in general.2 The
Figure 2. Lululemon Store Exterior, Walnut company has now expanded to over 201
Creek, CA locations, with stores in the United States,
Australia, and New Zealand and
showrooms in Hong Kong and Great Britain. The company’s huge success led it to go
public in July 20073.4
In the fall of 2009, the company expanded and launched
Ivivva Athletica, a subsidiary that targets a younger
female demographic - girls ages 6-12 years old. Ivivva
Athletica currently has 7 locations, which are located in
Canada and the United States.5
Brand Offering
Since 1998, the company has expanded its product portfolio beyond its original niche
offering to include men’s apparel and products designed specifically for activities such as
1
our history | lululemon athletica. (n.d.). yoga clothes & running gear for sweaty workouts | lululemon athletica. Retrieved
October 25, 2012, from http://www.lululemon.com/about/history
2
ibid
3
Hutchinson, T. H. (2011, January 31). The World's Hottest Retail Stock Has Room to Run - NASDAQ.com. Home - NASDAQ
Community. Retrieved November 18, 2012, from http://community.nasdaq.com/News/2011-02/the-worlds-hottest-retail-
stock.aspx?storyid=55806#.UK0ZzkJ-jPo
4
"Dennis "Chip" Wilson, founder of Lululemon Athletica, presides over the opening bell". Nasdaq. Retrieved 2012-07-29.
5
Form 10-Q
4
5. spin and running. However, there continues
to be a strong focus on high-end yoga
apparel for female consumers.
Lululemon does not simply sell fitness
apparel; it sells an experience and a lifestyle
that combines high fashion with health and
wellness in a way that has enabled the
Lululemon brand to become synonymous
Figure 3. Lululemon Store Interior with stylish fitness apparel that evokes a
modern athletic life. By selling an attitude
and mindset, Lululemon has successfully taken advantage of a societal shift toward a
more holistic lifestyle, enabling it to create a large base of loyal customers.6
Point of Differentiation
Lululemon was founded on the premise that
women should not be an afterthought in the
sportswear and fitness market. The company
recognized a consumer need for stylish, high-
performance yoga apparel that was not being
met by sportswear giants such as Nike or
Adidas. As such, Lululemon differentiates
Figure 5. In-store Yoga Class
itself by providing women high-quality,
stylish, and functional fitness apparel,
treating them as the target consumer, not
an afterthought to a men’s line.
Figure 4. Lululemon Special Community Events The company also differentiates itself
from other industry giants by cultivating
and providing a community of health and wellness in each of its stores where consumers
can participate in outdoor fitness events, free yoga classes, and other group activities that
align with the company’s mission of health and fitness.
6
Hutchinson, T. H
5
6. Brand Architecture
Traditionally, Lululemon has had a very monolithic brand portfolio, until launching the
Ivivva brand for girls. The current brand architecture segments products by both
category and function, leaving room for confusion. While Yoga Apparel seems to have
received more attention within the Women’s Lululemon line, the other categories of this
brand are not segmented by function or given trademark names. As a result, running and
spinning, the brand’s other product focuses, are not clearly communicated through the
brand hierarchy. This indicates a growth opportunity for the Lululemon brand.
Lululemon’s focus on yoga apparel is logical given its brand heritage. However, given
the brand’s expansion into new athletic functions with new product lines, it must realign
its architecture to better fit the product offering of the company as a whole.
Figure 6: Lululemon Brand Architecture. For complete brand portfolio and architecture see Appendix 1 & 2.
Product
All Lululemon products use the company brand name. While some products, particularly
in the Yoga Apparel category, seem to have individual names (e.g. “Groove Pant”,
“Astro Pant”, etc.) all products fall under the Lululemon brand name and are tagged with
the Lululemon logo, a stylized “A”.
6
7. Product Attributes
Lululemon products are strategically positioned and differentiated from competitors by
using high-quality and technically advanced fabrics to create products that are specially
designed for optimal, activity-specific fit and function. For example, the company uses
different fiber
fabrics to
produce Yoga
apparel pants
than it does for
its running or
spin products.
The use of
technically
advanced
material is not
very different
from what
competitors
such as Nike,
Reebok, or
Under Armour
are employing.
However, the
key
differentiator
for the
Lululemon
brand is that
Figure 7: Lululemon Total Product. See Appendix 3 for larger view.
the company
combines
technology and function with style, thus appealing to women’s inner need to look and
feel beautiful and sexy while working out. Until recently, this has not been the focus of
most of Lululemon’s competitors, allowing Lululemon the opportunity to gain significant
recognition in this category. Furthermore, Lululemon places a premium on offering a
total product experience, emphasizing the importance of exceptional customer service,
custom tailoring and community events.
Fabrics. For a list of trademarked fabrics please see Appendix 4.
7
8. Positioning
Lululemon positions
itself by taking
advantage of its
points of
differentiation
(PODs). Thus,
Lululemon places
women front and
center and focuses
on its reasons to
believe (RTBs) of
innovative
technology, high
quality fabrics, and
functional apparel to
provide fashionable
luxury fitness
apparel in an Figure 8: Perceptual Map Based on Survey Results, Demonstrating Lululemon's
Unique Market Offering
industry with few
premium products.
Through unique positioning and strategic laddering up the brand pyramid, Lululemon has
managed to create a niche market within the fitness apparel industry, differentiating itself
from its competitors by providing a unique product offering in the form of stylish, high-
performance apparel. Figure 8 illustrates this unique position, using data from our
consumer surveys.
Figure 9: Brand Pyramid
8
9. While Lululemon has positioned itself on each rung of its brand pyramid, its focus is on
the top two tiers, beliefs and values and emotional benefits. This allows the brand to
cultivate value based on how the products make consumers feel. This is further
supported by the brand’s elements, mainly the manifesto, which feed into the top two
rungs along with the in-store classes and community events, which help to sell a lifestyle
of empowerment. (see Appendix 5 for Brand Blue Print)
Brand Elements and Promotion
The brand is clearly communicated through its brand
elements. The most distinguishing element is the brand’s
logo, a stylized “A”, which was part of the word mark for
“athletically hip” – a name that the brand ultimately did not
use.7 This logo appears on all of the company’s product
offerings, marketing materials, and communication
elements. The company has built such equity in its logo,
that it is immediately associated with the company name,
allowing consumers to recall the brand in a variety of Figure 10: Lululemon Logo
settings without the need for a category cue.
The Lululemon reusable shopping bags have also
become a tremendous brand element for the company.
The red and white bags rarely include the Lululemon
Athletica name. Instead, they are filled with manifestos
and mantras that represent the company and its mission.
These bags have taken an active role in the societal
trend that is Lululemon, as men and women alike, use
the bag in their daily lives for non-shopping reasons.
The bag thus has become a type of status symbol
through which consumers can express their belonging
Figure 11: Lululemon Manifesto, as
on Reusable Bags to the Lululemon lifestyle. Furthermore, the ability for
consumers to recognize these reusable bags and recall
that they are Lululemon, without the bag explicitly indicating the brand name, further
supports the strength of Lululemon’s brand awareness and overall equity.
Marketing Channels
Unlike active wear industry giant Nike, Lululemon Athletica does very little
marketing communication through traditional media channels like TV and print. Instead,
it has focused its efforts on IMC elements that emphasize the personal, emotional
connection customers have with the brand, mostly through interactive and word of mouth
communications. IMC elements in the Lululemon marketing mix include:
7
our history | lululemon athletica. (n.d.). yoga clothes & running gear for sweaty workouts | lululemon athletica.
9
10. Media Advertising
The brand limits resources allocated to traditional media advertising. Select, cheeky print
ads (i.e. 2010 “Say no to camel toe” campaign) run in niche yoga and running
magazines.8
Public Relations
Lululemon’s Public Relations and Sustainability
Communications departments work to make sure
that key efforts and brand messaging are consistent
across communication platforms, including in-store
educators, support and social media. Internal PR
specialists work as evangelists to develop
relationships with bloggers, investors and media
influencers, ensuring positive publicity for the
brand.9
Consumer Promotions
Consumer promotions are limited. The brand does Figure 12: 2010 Lululemon Ad
Campaign
not promote in-store sales, and has articulated online
discounts as “We Made Too Much” to minimize
damage to the perceived brand value.
Direct & Online Marketing
Lululemon.com.
The website has two goals: to
create an online community and
facilitate the online shopping
experience. Landing page visuals
highlight product and people, not
brand elements. Value-add
content includes product
information, videos, a blog and
(e.g. product demos, yoga classes
and ambassador “chats”) profiles
of all brand ambassadors,
described below.
Figure 13: Lululemon.com Black Friday Homepage, 11/23/2012
Digital Relationship Marketing
Program.
Customers have the option to sign up for email list, but it is not aggressively marketed on
the consumer landing page, staying true to the visual language of the brand and
improving the consumer landing experience.
8
Helliker, Kevin. “Lululemon Grows Fast on a Slim Budget”. WSJ, September 13, 2010.
http://online.wsj.com/article/SB10001424052748703960004575481890366935552.html
9
careers | lululemon athletica. (n.d.). yoga clothes & running gear for sweaty workouts | lululemon athletica. Retrieved October 25,
2012, from http://www.lululemon.com/about/careers
10
11. Mobile.
In 2011 Lululemon launched a mobile
optimized shopping site for iPhone,
Android and Blackberry devices but does
not engage in mobile advertising.
Social Media & Viral Marketing.
Lululemon uses various social media and
viral marketing platforms to develop a
deeper emotional connection with
consumers and foster the feeling of local
and global community. This channel,
along with event marketing, is arguably
the heart of their promotional mix and
communications strategy. Verbiage,
imagery and tags (e.g. #thesweatlife) are
consistent and shared across all corporate
communication platforms. Many local
stores use independent social media Figure 14: Images from Various Lululemon Social
Media Channels
accounts to connect more directly with
community and facilitate geographical
consumer targeting. See Appendix 7 for more details on specific social media channels
and engagement statistics versus competitors.
Event Marketing & Sponsorship
Athlete Sponsorship.
In an effort to appeal to male consumers, a relatively new
market for the brand, Lululemon sponsored the US Men’s
Beach Volleyball team at the 2012 Summer Olympics.
Lululemon logo (w/o name) appeared subtly on uniforms.
Both Jake Gibb and Sean Rosenthal are Lululemon Elite
Ambassadors.
Sponsored Community Events.
The brand often sponsors yoga festivals (i.e. Wanderlust)
and produces the SeaWheeze Lululemon Half Marathon in
Vancouver. Events are promoted through social media
Figure 15: Jake Gibb at the channels.
2012 Olympics. Source:
www.lululemonstory.com Additionally, individual stores promote the community
values of the Lululemon brand through free in-store yoga
classes and co-sponsored private shopping events with companies such as
Bloomspot.com.
11
12. Word of Mouth
Ambassador Program
The company recruits fitness instructors who lead yoga, spinning, pilates and running
classes who embody the lifestyle and live the culture, giving them a clothing $1000
allowance for apparel. Ambassadors act as guerilla marketers in communities. Similarly,
the brand fosters relationships with select gyms, exercise studios and yoga/pilates
facilities that align with the brand’s positioning to offer instructors a corporate discount
on merchandise.
Other
Shopping Bags.
Reusable shopping bags emblazoned with the Lululemon Manifesto and/or images from
advertising campaign are used as another form of practical and recognizable
advertisements for the company especially since the target customer would be proud to
reuse the shopping bag.
Lululemon Running Clubs.
Many retail locations hold weekly/bi-weekly group runs. This serves as a way to engage
consumers in the Lululemon community and encourage store traffic as runs generally
begin at a store location.
Current Market Strategy & Objectives
Distribution Channels
Lululemon Athletica Retail Stores.
Lululemon retail stores are owned by the parent company
and fully branded as Lululemon Athletica locations. They
are stocked using centralized distribution facilities
strategically located
in their operating
footprint.10
Lululemon Athletica
Showrooms
Figure 16: Lululemon Retail
These small retail
Store - Union St., San locations are meant to
Francisco be “cozier versions of
our retail stores,” according to spokesperson Tracy
Keough. Such locations allow the brand to become
an integrated part of the community, providing a
retail experience that is unique to the area yet still
embodies the Lululemon brand promise. These
Figure 17: Lululemon Showroom -
10 Form 10-K
MARRS Building, Sacramento
12
13. stores are only open part of the week so that employees can actively engage with the local
community.11
Lululemon.com – See Direct & Online Marketing on Page 9
Lululemon Outlets.
Overstocked items are available at discounted prices at outlet locations. While the
Lululemon logo is used, the full brand name is not visible on store signage.
Certified Partners/Strategic Sales.
Lululemon has a selective strategic sales program through which the brand works with
certified partners to offer its products at yoga studios, gyms and wellness centers
internationally. Partners are generally a strategic fit, serving “high-end” clientele and
aligning with the Lululemon brand image. Examples include Equinox Gyms, The Dailey
Method and Physique 57.
Added Value of Distribution Channels
The primary drawback of this distribution strategy is that it limits both reach and
accessibility. While the brand has grown substantially, opening retail stores in areas that
meet certain demographic and psychographic
segmentation criteria, most stores are
concentrated around metropolitan areas
including San Francisco, Los Angeles, New
York and Chicago. As a relatively young
brand, it is likely that this is part of an early
market growth strategy designed to launch
the company into the mainstream market.
The primary benefit of Lululemon’s
distribution strategy is that it gives the brand
a large degree of control over merchandising
and marketing – ensuring that the brand
message is strong and consistent at all
consumer touch points. While certified
distribution locations are not branded, they
too add value to the brand by associating the
Lululemon with “luxury fitness” in the minds
of consumers, thus reinforcing the brand’s
market position. Scarcity of the product may
also support the premium position of the
Figure 18: The Dailey Method - Vancouver.
brand. Source: www.thedaileymethod.com
11Kelly Johnson (March 30, 2012). “Yoga gear chain Lululemon coming back to Sacramento.”
Sacramento Bee.
Retrieved November 26, 2012 http://www.bizjournals.com/sacramento/blog/kelly-johnson/2012/03/yoga-
gear-chain-lululemon-sacramento.html?page=all
13
14. Pricing Strategy
Lululemon has positioned itself as a premium athletic brand – a position supported by the
brand’s overall pricing strategy. Product life-cycles are short and stores intentionally keep
stock low. The planned obsolescence and promise of exclusivity create a sense of
urgency for shoppers in search of specific product/color offerings. This tactic helps to
substantiate the premium price point and keep consumers coming back to their stores.
The brand rarely discounts merchandise and attention is not drawn to in store sales. Both
of these tactics help to maintain the brand’s perceived value and encourage customers to
buy at full-price.
Figure 19: Lululemon Product Lifecycle and Planned Obsolescence
Price Compared to Competitors
The brand’s price point is on par with other luxury active wear brands such as Lucy and
Gap, Inc.’s Atheta brand. The premium price point is slightly higher than “performance
brand” competitors such as Nike and Under Armour. Despite higher prices, our research
revealed that the brand has created significant perceived value for consumers, which has
helped to differentiate it from its competitors. (See Appendix 8. for Comparison Pricing
and Appendix 11 for Survey Results).
Brand Performance
Lululemon is financially sound and is exhibiting overall strong performance. The
company has a healthy balance sheet, income and cash flow to sustain future growth and
profitability. The following is a brief financial summary of the company.
Growth
Since the company’s inception, Lululemon has grown rapidly in the United States,
Canada, Australia, and New Zealand. The company ended their third quarter of fiscal
2012 with a total of 201 stores worldwide which includes 194 Lululemon branded stores.
Majority of the stores, 127, are located in the United States, which accounts for majority
of the company’s revenues.12 The United States market is expected to lead the
12
Form 10-Q
14
15. company’s future expansion with new store openings (8 expected in Q4) but the brand is
looking to continue expansion into
Asia and Europe over the next two
years.13
Lululemon ended fiscal 2011 with
just over a billion dollars in
revenues, an increase of 40.62%
over fiscal 2010.14 The company is
on track to surpass fiscal 2011
revenues and is estimated by
analysts to earn around $1.37B in
revenues for fiscal 2012.15 For the
third quarter of fiscal 2012, the
company earned revenues of
Figure 20: Lululemon net revenue growth. Source: $884.9M for the 39 weeks. This is
shareholder.com an increase year over year of 41%.
The company is poised for
continued growth and expansion heading into the fourth quarter, generally their strongest
quarter due to the holiday season.
Athletic Apparel Market
Lululemon competes directly with a handful of competitors who are more established and
have greater financial resources. Two of its closest competitors, Lucy and Athleta, are
both owned by larger corporations
with broader brand portfolios and have $50.00
greater resources to expand, grow and $40.00
compete (see Appendix 6 for
in Billions
Competitive Review). The company $30.00
has a much longer list of indirect $20.00
competitors such as Walmart and
sporting goods stores that also sell $10.00
athletic apparel (See Appendix 9). $0.00
Profitability and Income
Lululemon’s apparel is priced at a
premium. These high prices help the Figure 21: Market Capitalization of Top Athletic Apparel
company enjoy a healthy profit Brands, 12/10/12.
margin. The company ranked second
among the top ten apparel retailers worldwide in terms of profit margins. The profit
margin improved from fiscal 2010 at 17.11% to 18.40% in fiscal 2011. (see Appendix 10
for graph of leading profit margins by retailers). Lululemon increased net income
51.15% from fiscal 2010 to fiscal 2011, earning $184.1M in net income. This is one of
the highest among the top U.S. publicly traded apparel companies. The company ended
the third quarter with net income of $162.1M for the 39 weeks in fiscal 2012.16
13
(Maurer, 2012)
14
Form 10-K
15
http://finance.yahoo.com/q/ae?s=LULU+Analyst+Estimates
16
http://www.sec.gov/Archives/edgar/data/1397187/000119312512492935/d423946d10q.htm
15
16. Brand Exploratory
Brand Value
One of the major disadvantages of grassroots marketing efforts is that the company’s
brand may not be as widely known or recognized. Figure 22 demonstrates the company’s
enterprise and brand value for 2012. We expect that as Lululemon continues to expand its
footprint and grow, brand value should also increase with comprehensive marketing
efforts.
Figure 22: Source: http://0-www.statista.com.ignacio.usfca.edu/statistics/238666/enterprise-and-brand-value-
of-lululemon/
Quantitative and Qualitative Surveys
To further explore what consumers thought about Lululemon, two surveys were
conducted. The surveys were conducted using surveygizmo.com and included both
quantitative and qualitative questions. They were designed to understand consumer’s
knowledge, understanding, perceptions and associations of Lululemon and its
competitors. Survey 1 was more exploratory and included more assisted recall questions.
Forty-three total surveys were completed. Survey 2 was more in depth with 67 surveys
completed. Both men and women completed the survey though women made up three
quarters of participants. Participants also were from a wide geographic, age and income
range. The following are the key findings and takeaways from these surveys. (See
Appendix 11 for survey questions and results)
Brand Elements
Brand Name
The brand name consists of black, red and white, which most respondents were able to
recall. However, survey results suggest that consumers are only familiar with
“Lululemon” and not the full brand name, “Lululemon Athletica.” Furthermore,
responses revealed that many participants were confused as to the spelling of the name,
indicating many variations including “Lulu Lemon” and “Lulumelon.” Survey results
also suggest that the company should consider dropping the “Athletica” name to avoid
confusion with Athleta and strengthen the equity of the Lululemon name.
16
17. Brand recall was much lower for men than for women. When asked to name the top five
brands that came to mind in the athletic apparel category, only 44% of men named
Lululemon. At the same time, three quarters of women surveyed recalled the brand and
for 43% of these respondents
Lululemon was the first brand
named. It is clear the brand
does not resonate with men, a
market which the company has
been trying to attract and grow.
Logo
Survey findings show that the
Lululemon logo is recognized
more than Athleta, Under
Armour and Reebok logos but Figure 23: Word Map Based on Survey Results on Logo
was not as widely recognized Associations
as the Nike logo. Figure 23 highlights the most common associations that participants had
with the logo and emphasizes the strong female and yoga-centric messaging that
resonates with consumers.
Brand Colors
The core brand colors are black, red and
5% Black white, which were accurately identified by a
5% majority of survey respondents, suggesting
6% Red
strong consumer recall.
25% White
6% Lululemon Manifesto
Pink Another brand element is the reusable
7%
Purple shopping bag imprinted with the Lululemon
11% 19% Manifesto. A majority of participants
Green
16% claimed not to see the bag on a daily basis.
Yellow
However, follow-up questioning revealed
Orange that this may be due to selective attention on
the part of many consumers.
Figure 24: Colors Most Associated With Lululemon
Brand Elements. Based on Survey Results, n = 33. Brand Image & Associations
Image Identification and Association
Survey participants were shown three types of brand images that featured products,
advertisements and other images featuring male and female athletes. When participants
were asked to match advertising images to athletic retailers results revealed that 49% of
participants associated the Athleta campaign, which featured a female doing yoga, with
the Lululemon brand while approximately 30% of participants associated the Lululemon
image of a female running on the beach with the Nike brand. This suggests that while the
Lululemon campaigns may convey a message that supports the brand’s essence and
positioning of empowerment, it is a message that consumers do not predominantly
associate with the brand.
17
18. Gender associations hindered notable
results. When participants were asked to
identify which of the four images featuring
male athletes they associated with the
brand 54% overall all participants and 56%
of males did not associate any of the
images featuring men with Lululemon. One
image, of the official US volleyball men’s
team of the 2012 Olympics wearing
Lululemon branded uniforms, was only
recognized by one participant (out of 67).
The brand is clearly not resonating or
associated with men. However, the running
and spin images were recognized as fitness
activities Lululemon caters to, suggesting a Figure 25: Campaign Images Included in Survey 2
slight degree of consumer brand
knowledge.
Consumer & Brand Perceptions
Lululemon brand perceptions are closely related to how participants described Lululemon
consumers. The top unprompted brand associations were “yoga”, “women”,
“expensive”, and “fashionable.” The brand ranked highest among competitors for
“luxury fashion appeal.” Lululemon
consumers were described as an
active female who practices yoga.
She is wealthy and conscious about
being trendy, fashionable and fit,
which aligns with the psychographic
and demographic market segments
the brand targets. Men were not
associated with the brand, despite
the company’s attempt to develop a
men’s line of products.
Figure 26: Primary Brand Associations Based on Survey In addition, while community is a
Results cornerstone and point of
differentiation for the brand, this
message does not seem to resonate with most survey participants. Being a part of a
community ranked the lowest when consumers were asked which lifestyle statement they
identified with most. Over 50% of participants identified with the statement that
suggested superior athletic performance, supporting the brand’s decision to provide
consumers technically advanced products.
Survey participants also purchased Lululemon products more for themselves rather than
as gifts citing reasoning such as “comfort”, “fit”, “quality” and love for the brand.
Quality also ranked first in what consumers looked for in athletic apparel. Lululemon
should continue to innovate and develop products with these qualities and highlight them
in their integrated marketing communications. Lululemon products are perceived as
18
19. expensive, but the value of the products in relation to the cost was perceived as medium
to high. This plays squarely into the brand’s current positioning.
Customer Loyalty
Current market trends suggest
that brand loyalty is not as
important to consumers today 0%
Nothing
as in years past. Overall, our 5% 10%
research was consistent with Yoga Pants
this theory; however, 7%
Tops
39%
approximately 10% of 0% Equipment
respondents claim to purchase 10% Crops
everything from Lululemon,
which suggests loyalty to the Outerwear
brand does exist. The most Accessories
29%
popular item purchased from Everything
Lululemon is yoga pants
followed by tops. Most
respondents wear Lululemon Figure 27: Top Lululemon Products Purchased by Consumers.
products to the gym or yoga Based on Survey Results, n = 43
studio but a notable percentage
of consumers revealed that they wear the products “everywhere.” This fits with the
assertion that the brand caters to a lifestyle, selling products that are not only functional
for athletic activities but also fashionable for everyday life.
Brand Strategy
Success of Marketing Efforts
Overall, Lululemon as a brand has been
relatively successful in its marketing efforts
to date. For its initial go-to-market strategy,
Lululemon chose a well-defined target
consumer in the niche yoga market, filling a
need for technically advanced yoga-wear.
From the start, they offered a whole product
centered on the idea of creating a community
for its customers and as a result has seen
tremendous growth since it first launched in
1998. Its success appealing to the yoga
community made for a smooth transition
from the early market to the mainstream
market – a challenge that many new brands
struggle to overcome. However, the brand is
in a transitional stage due to its rapid growth
and must reevaluate its positioning and Figure 28: "Love Notes" Campaign, Dec.
2012. Source: www.lululemon.com
19
20. communication strategy if it hopes to achieve sustainable growth in the athletic wear
category.
All of Lululemon’s marketing communications are driving towards the goal of creating a
sense of community. Each of the IMC elements used works well together for cross
promotion and delivers a consistent, authentic voice and message across channels. The
brand has been very successful in communicating values of empowerment, quality,
luxury, fitness and style to its loyal customers. By emphasizing interactive and
experiential marketing initiatives the company has positioned itself to create positive
sensory-emotional connections with consumers, that can improve brand resonance and
ultimately consumer based brand equity.
However, as we have discussed, Lululemon has attempted to extend beyond its original
target market – a move not recognized by many consumers due to selective distortion.
While Lululemon has tried to communicate that they
offer a diverse portfolio of products for both men and
women, most consumers retain a narrow view of what
the brand stands for. Furthermore, the ideas of
community and holistic lifestyle – values at the core
of the Lululemon brand – are lost on many consumers
who instead view the brand as a symbol of wealth,
egoism and superficiality.
A primary cause of the disconnect between
Lululemon’s positioning and consumers’ perceived
brand image is likely the brand’s accelerated growth
and differentiation, which has confusion among
consumers in the mainstream market. This Figure 29: "Love Notes" Campaign,
communication breakdown provides an opportunity Dec. 2012. Source:
for the brand to redefine the way consumers view it. www.lululemon.com
We believe that Lululemon can achieve this goal by
reassessing the foundation of its positioning, fundamental customer needs, and product
portfolio to identify its core competencies and successes and increasing the amplification
of the brand’s core beliefs and elements to increase brand knowledge and esteem.
While Lululemon has managed to create strong brand awareness and loyalty within its
original target market, the lack of a more traditional media platform has limited coverage
on a mass scale, which may hinder future growth if the brand hopes to gain significant
market share from competitors such as Nike or Under Armour. By dialing-up its IMC
through broad-reaching platforms and supporting campaigns, emphasizing the heart of its
positioning, Lululemon can successfully amplify its core message and strengthen brand
equity.
20
21. Brand Equity Improvements
Lululemon can enhance their brand equity by
improving the recognition and recall of some
of their brand elements. The brand name is
not fully utilized and is more wide known as
“Lululemon” rather than “Lululemon
Athletica”. Since the “Athletica” name is
sometimes confused with Athleta, the
company should consider dropping
“Athletica” altogether. Furthermore, the
company should reinforce the brand name so
consumers know how to spell it. Color
associations are strong with the brand but the
company should consider standardizing the
usage of color for the brand name and logos
on storefront and other non-product specific
branding to reinforce brand awareness and
Figure 30. Part of Brand Manifesto
knowledge.
We do not recommend repositioning the brand but rather reinforcing and featuring brand
values and messages so they are more strongly associated with the brand. Two of the key
points of differentiation highlighted in the brand’s Manifesto, community values and the
balance of self, were missing altogether in the survey aided and unaided brand recall
exercises. These values and beliefs are at the core of the company and should resonate
with consumers.
Leveraging & Extension Strategies
Through our analysis of the Lululemon brand, we have come to realize that there is
tremendous room for growth within the brand. Using the BCG matrix model, the men’s
line stands out as a category with low growth potential and low market share for the
brand (see Appendix 12). The company should consider exiting this market until it has
strengthened its position its current market per Ansoff’s model (see Appendix 13), using
resources generated by its yoga product lines to further develop new product lines for
women.
The Lululemon brand is synonymous with “women” and “yoga” and this is in line with
the brand’s core competencies and strengths. We suggest that the brand realign focus on
its female consumer by expanding its product offerings for women and branding other
product lines in the running and spinning functions similarly to the current strategy in the
yoga apparel function (see Appendix 2 for Current Brand Architecture). This will
facilitate better organization of its brand architecture and will clarify its offerings to
consumers, while also providing the company with the opportunity to establish new
nomenclatures to brand their fitness category lines (See Appendix 14 and 15 for Brand
Architecture Recommendation & Implementation).
21
22. Secondary Associations
As our qualitative research indicated, Lululemon is not currently extracting the true value
of its Elite Ambassadors, such as the US
Men’s Olympic Beach Volleyball team.
This was a failed secondary association due
to lack of promotion and projection though
the brand’s IMC strategy. We believe that
such campaigns would be more successful if
the brand chose different sports that are more
in line with the heart of the brand’s
positioning rather than a superficial attempt
to extend their brand into men’s wear.
In addition we believe that Lululemon can
gain tremendous equity by leveraging its Figure 31. Suggested Secondary Associations
existing certified partners such as the Daily
Method, Equinox, and Physique 57 to increase brand knowledge and strengthen its
associations with health and fitness rather than trendy fashion. Finally, Lululemon
should seek out partnerships and secondary associations with companies such as Whole
Foods Market and Luna Bar, which target the same consumer segments but focus on a
holistic lifestyle.
Conclusions
Through qualitative and quantitative research we have identified key strengths and
weaknesses for the Lululemon brand, provided recommendations to strengthen
brand equity, and analyzed the market conditions for the brand to expand in the
future. For now, we suggest that the brand maintain focus on its primary customer
and expand its function categories while dialing up its IMC in order to better align
consumer
brand
associations
with
the
brand’s
core
essence
and
values.
22
23. Work Cited
1. http://www.lululemon.com/about/history?mnid=ftr;company_history
2. "Dennis "Chip" Wilson, founder of Lululemon Athletica, presides over the
opening bell". Nasdaq. Retrieved 2012-07-29.
3. Helliker,
Kevin.
“Lululemon Grows Fast on a Slim Budget”.
WSJ, September
13, 2010.
http://online.wsj.com/article/SB100014240527487039600045754818903
66935552.html
4. http://www.lululemon.com/about/careers/job-details/?jobId=005482
5. Hutchinson, T. H. (2011, January 31). The World's Hottest Retail Stock Has
Room to Run - NASDAQ.com. Home - NASDAQ Community. Retrieved
November 18, 2012, from http://community.nasdaq.com/News/2011-
02/the-worlds-hottest-retail-stock.aspx?storyid=55806#.UK0ZzkJ-jPo
6. Tracy Keough, Lululemon spokesperson.
http://www.bizjournals.com/sacramento/blog/kelly-
johnson/2012/03/yoga-gear-chain-lululemon-sacramento.html?page=all
7. Maurer, B. (2012, 12 10). Lululemon perhaps the best buy in retail. Retrieved
from http://seekingalpha.com/article/1054581-lululemon-perhaps-the-
best-buy-in-retail
8. Lululemon Athletica Inc. (2012, December 6). Form 10-Q. Retrieved from
http://sec.gov/Archives/edgar/data/1397187/000119312512492935/d42
3946d10q.htm
9. Lululemon Athletica Inc. (2012, March 22). Form 10-K. Retrieved from
http://sec.gov/Archives/edgar/data/1397187/000119312512126444/d27
7556d10k.htm
23
26. Appendix 2. Current Brand Architecture
Appendix 2. Current Brand Architecture
26
27. Appendix 3. Product Circle
Appendix 4. Fabric List
Lululemon has invested in developing fabrics and technology as a point of differentiation.
One of its main signature fabrics is the luon that is used in their yoga apparel. This fabric
not only feels cottony, it is preshrunk, offers 4-way stretch and is wicking.
The
company’s
signature fabrics include all of the following:
luon family (including country cousins)
swift family
silverescent family
meshes and liners family
natural blend family
outerwear & insulation family
For an expanded list and detailed description, visit
http://www.lululemon.com/education/info/fabricsandtechnologies
30. Appendix 7. Descriptions of Social Media Marketing Channels
YouTube (http://www.youtube.com/user/lululemon) – this a mix of content, brand
controlled.
Viral
videos
like
“Sh*t
Yogis
Say”
as
well
as
footage
from
events.
Facebook (www.facebook.com/lululemon) – Mix of product and lifestyle posts. Friendly,
familiar tone
Twitter (www.twitter.com.lululemon) – Unlike many brands, this platform is not used as a
customer
service
“call
center”.
Instead,
the
brand
showcases
a
mix
of
product
and
lifestyle
content, both branded and not
Pinterest (www.pinterest.com/lululemon) – Boards are dominated by motivational fitness
imagery, goal setting inspiration, healthy recipes and photos from Lululemon stores and
events.
Instagram (www.instagram.com/lululemon) – Pictures
taken
by
Lululemon’s
social
media
team that capture the spirit of the brand. Include behind-the-scenes shots and light-hearted
images from the Lululemon offices.
yoga. run. life. blog. (www.lululemon.com/community/blog) – Blog posts cover
everything from lifestyle topics to spotlights on new product launches. The blog is an
integrated part of the ecommerce site and facilitates the shopping experience when
applicable (product related posts). Post credit specific authors/members of the community
and
consumers
engage
via
comments,
helping
to
generate
content
in
features
like
“Ask
A
Runner”,
which
encourages
engagement
and
community.
Twitter Statistics
Brand Tweets Followers Following
Nike 10,181 783,229 145
Lululemon 36,164 358,450 101,772
Under Armour 5,487 142,128 1,084
Adidas 481 42,251 124
Athleta 2,763 14,292 473
Lucy 972 8,681 810
Source: www.twitter.com, 12/09/12
31. Facebook Statistics
Brand Likes Mentions Check-Ins
Nike 11,474,941 105,011 6,613
Lululemon 757,551 30,526 36,935
Athleta 85,584 4,527
Lucy 34,193 211 219
Adidas 10,153 114,345
Under Armour 2,142 42,661 186
Source: www.facebook.com, 12/09/12
Examples of Social Media Pages
The Lululemon Athletica Facebook Timeline (11/23/12), www.facebook.com/lululemon
31
32. The Lululemon Athletica Facebook Timeline (11/23/12), www.facebook.com/lululemon
The Lululemon Athletica Twitter Profile (11/23/12), www.twitter.com/lululemon
32
33. The Lululemon Athletica Pinterest Boards (11/23/12), www.pinterest.com/lululemon
The Lululemon Athletica Instagram Profile (11/23/12), www.instagram.com/lululemon or @lululemon on the Instagram
App
33
35. Appendix 10: Profit Margins of Top 10 Apparel Retailers
Source: http://0-www.statista.com.ignacio.usfca.edu/statistics/242104/leading-10-apparel-retailers-worldwide-based-on-their-
profit-margin/
35
36. Appendix 11. Survey Questions and Results:
Survey 1:
Note: This first survey was designed to be exploratory and geared towards obtaining a first
impression of the Lululemon brand and product. It was conducted using an online survey
tool, surveygizmo.com and was sent to our personal network of friends. 43 participants
completed the survey.
Question 1: How familiar are you with the Lululemon brand?
o I
don’t
know
much
about
the
brand
o I know the brand name
o I know the brand name and logo
o I know everything about the brand (logo, name, products, etc.)
Question 1 Results:
How familiar are you with the Lululemon
brand? n=43
50% 42%
40% 35%
30%
20% 14%
9%
10%
0% responses
I don't know I know the I know the I know
much about brand name brand name everything
the brand and logo about the
brand
Majority of respondents from survey 1 had knowledge about the Lululemon brand, logo
and products. Only 9% of respondents did not know much about the brand.
Question 2: What colors do you associate with the Lululemon brand? (Select all that
apply)
o Green
o Black
o Orange
o Yellow
o Red
o Purple
o White
o Brown
o Pink
o Blue
36
37. Question 2 Results:
What color respondents at least
familiar with Lulu brand/logo
associate w/ Lululemon brand? n=33
15.2% 15.2%
75.8% Black
18.2%
Red
18.2% White
21.2% Pink
48.8% Purple
33.3% 48.5% Green
Yellow
While
the
dominant
color
in
Lululemon’s
brand
is
red,
about
three
quarter
of
respondents
who were at the least familiar with the brand name and logo identified the brand with
black. Of respondents who were familiar with at least the brand name and logo, red was
the second highest associated color followed by white but less than half of respondents
identified the brand with these colors. Red, white and black are respectively the top three
colors of Lululemon but interestingly pink, purple, green and yellow were also identified
with
Lululemon’s
brand.
Clearly,
the
brand
name
and
logo
colors
are
not
overwhelmingly
associated with the brand. The brand does offer colorful products and perhaps the
additional colors are associated with the brand because of their product offering.
Question 3: How often do you purchase Lululemon products?
o Less than once a month
o Every 1-3 months
o Every 3-6 months
o Every 6-12 months
o More than once a month
Question 3 Results:
37
38. How often respondents familiar
with Lulu purchase products n=33
33.3% 33.3%
35.0%
30.0%
25.0% 21.2%
20.0%
15.0%
10.0% 6.1% 6.1% Response
5.0%
0.0%
Less than Every 1-3 Every 3-6 Every 6- More
once a months months 12 than one
month months a month
One third of respondents who are at least familiar with the Lululemon brand and logo
purchase products from the company less than once a month while another third of these
respondents purchase products every six to twelve months. Of the remaining third, 21%
purchase products every one to three months while about six percent purchase products
more than once per month.
Question 4: How would you rank Lululemon against its competitors? (highest on top)
o Nike
o Under Armour
o Lululemon
o Lucy
o Athleta
Question 4 Results:
n=43 % of responses by rank (1 is highest)
Competitors 1 2 3 4 5
Nike 39.5% 20.9% 16.3% 20.9% 0.0%
Under
Armour 16.3% 30.2% 11.6% 14.0% 27.9%
Lululemon 37.2% 23.3% 16.3% 9.3% 9.3%
Lucy 0.0% 18.6% 20.9% 16.3% 34.9%
Athleta 4.7% 4.7% 30.2% 30.2% 18.6%
Nike ranked as the highest among athletic apparel companies but Lululemon was close
behind.
Question 5: What do you think a Lululemon consumer is like? Describe.
Question 5 Results:
38
39. The word map above highlights the main key words that respondents used to describe a
Lululemon consumer. According to respondents, a Lululemon consumer is an active and fit
female who is into yoga. She is wealthy, and conscious about being trendy, fashionable and
fitness conscious.
Question 6: How active are you?
o 1 Not active at all
o 2
o 3
o 4 Somewhat
o 5
o 6
o 7 Very active
Question 6 Results:
How active are respondents n=43
40.0%
35.0%
30.0%
25.0%
20.0%
Response
15.0%
10.0%
5.0%
0.0%
Not active at all Somewhat active Very active
39
40. Majority of respondents ranged from somewhat to very active.
Question 7: How would you rank the cost of Lululemon products?
o 1 Not expensive
o 2
o 3
o 4 Somewhat expensive
o 5
o 6
o 7 Expensive
Question 7 Results:
n=39 ranking from 1 (not expensive) to 7 (expensive)
Responses 1 2 3 4 5 6 7
at least know
brand 2.6% 0.0% 0.0% 10.3% 12.8% 30.8% 48.7%
Majority of respondents, who had at least heard of the brand, thought the products were
expensive.
Question 8: How would you consider the value of Lululemon products in relation to
cost?
o 1 No value
o 2
o 3
o 4 Moderate value
o 5
o 6
o 7 High value
Question 8 Results:
n=39 ranking from 1 (no value) to 7 (high value)
Responses 1 2 3 4 5 6 7
at least know
brand 0.0% 0.0% 10.3% 33.3% 33.3% 12.8% 10.3%
Majority of respondents, who had at least heard of the brand, thought the value of
Lululemon products were medium to high in relation to cost.
Question 9: Which of the following do you associate with the Lululemon brand?
Check all that apply
o Sports
o Fitness
o Yoga
o Running
40
41. o Spinning
o Men
o Women
o Active
o Gym
o Workout
o Innovative
o Quality
o Trend
o Athletic
o Expensive
o Apparel
o Performance
o Power
o Fashionable
Question 9 Results:
Most associated with Lulu
brand n=39
Innovative
Sports Performance 1% Men
2% Gym 2% 1% Power
0%
Spinning 3%
Yoga Women
3% 11% 11%
Apparel
5% Athletic
5%
Workout
5% Running Expensive
10%
5%
Quality
6% Fashionable
Active
6% Fitness Trend 10%
7% 8%
Among respondents that at least know the brand, the top associations with the Lululemon
brand
are
“yoga”
and
“women”
and
“expensive”
and
“fashionable”.
The
words
least
associated
with
the
Lululemon
brand
are
“power”,
“men”,
“innovative”,
“performance”
and
“sports”.
Even
“spinning”,
a
fitness
activity
that
Lululemon
focuses
on,
ranked
among
the
lowest 5% of brand associations. The below word map shows these results in a different
way
41
42. .
Question 10: Which is your preferred brand?
o Lululemon
o Nike
o Under Armour
o Lucy
o Athleta
Question 10 Results:
Brands preferred by
respondents n=39
Lucy
Athleta 5%
7%
Under
Armour Lululemon
12% 44%
Nike
32%
Survey respondents who at least know the Lululemon brand overwhelmingly prefer
Lululemon followed by Nike and Under Armour.
Question 11: How loyal are you to your preferred brand?
o 1 Not at all loyal (I buy whatever I like)
o 2
o 3
o 4 Somewhat loyal (I sometimes buy other brands)
o 5
o 6
o 7
Very
loyal
(I
only
buy
this
brand’s
products)
42
43. Question 11 Results:
n=43 ranking from 1 (not at all loyal) to 7 (very loyal)
1 2 3 4 5 6 7
Responses 27.9% 4.7% 18.6% 23.3% 11.6% 7.0% 7.0%
More than half of survey respondents are not loyal to moderately loyal to preferred brands.
Even respondents who know everything about Lululemon were not more loyal to the
brand.
Question 12: What do you purchase most from Lululemon?
o Nothing
o Yoga pants
o Crops
o Outerwear
o Tops
o Accessories (eg. Water bottles, towels, etc.)
o Equipment (eg. Yoga mat, etc.)
o Everything
Question 12 Results:
What respondents purchase from
Lulu n=43
Accessories Everything
0% 10%
Outerwear
5%
Crops
7% Nothing
Equipment
0% 39%
Tops
10%
Yoga Pants
29%
Yoga pants are the most popular item purchased by respondents who purchase from
Lululemon followed by tops. About 10% of respondents also seem to shop exclusively from
Lulu and purchase everything. They are also more loyal to the brand. No respondents
purchase accessories or equipment from Lululemon.
Question 13: Where do you wear your Lululemon products? Check all that apply
o Nowhere,
I
don’t
own
any
Lululemon
products
o Only when taking a yoga/pilates class
o At the gym
43
44. o Around the house
o On a casual day
o Everywhere
Question 13 Results:
Where do respondents wear Lulu
products n=43
Everywhere
15%
I don't
On a casual own
day Lulu
15% 28%
Gym
Around the 19% Yoga/Pilates
house class
8% 15%
Most respondents wear Lulu products at the gym but respondents also wear Lulu products
for yoga/pilates class, on a casual day or everywhere.
Question 14: How many times in a day do you see a Lululemon reusable bag being
used for something other than shopping at Lululemon?
o I
don’t
know
what
the
bag
looks
like
o Less than 1 time per day
o 1-3 times per day
o 3-6 times per day
o 6-9 times per day
o 9-12 times per day
o More than 12 times per day
Question 14 Results:
44
45. How often respondents see Lulu
shopping 9 to 12 each day
bags
>12
0% 0% don't know
6 to 9
7% 3 to 6 what the bag
looks like
7% 23%
1 to 3
26%
<1
37%
Majority
of
respondents
don’t
see
the
Lululemon
shopping
bag
featuring
the
Lulu
Manifesto
on it.
Survey 2:
Note: This survey was designed to obtain more in-depth associations and impression of the
Lululemon brand and product. It was conducted using an online survey tool,
surveygizmo.com and was sent to our personal network of friends. 67 participants
completed this survey.
Question 1: What is your age group?
o 10-18
o 19-25
o 26-35
o 36-45
o 46-55
o 55+
Question 1 Results:
Age of survey respondents
n=66
80.0%
60.0%
40.0%
20.0%
0.0%
19 - 25 26 - 35 36 - 45 46 - 55 55+
Majority of survey respondents were between the age of 26 to 35. The survey included a
wide age range but it is skewed towards the 26 to 35 year old.
45
46. Question 2: What is your gender?
o Male
o Female
Question 2 Results:
Gender of survey
respondents n=67
Male
24%
Female
76%
Just over three quarter of survey respondents were female.
Question 3: Are you currently employed full-time?
o Yes
o No
Question 3 Results:
Are respondents
employed full time n=67
No
34%
Yes
66%
Majority of survey respondents are employed full-time.
Question 4: What is your current or most recent (if unemployed) household income?
o Less than $35,000
o $35,000 - $55,000
o $55,000 - $75,000
o $75,000 - $100,000
o $100,00+
46
47. Question 4 Results:
Household income level n=67
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
<$35,000 $35,000 - $55,000 - $75,000 - $100,000 +
$55,000 $75,000 $100,000
Question 5: What is your favorite way to stay fit?
Question 5 Results:
Running, yoga and the gym were equally the top response followed by walking and hiking.
Lululemon definitely addresses the running and yoga market segments.
Question 6: Where are you most likely to wear athletic apparel?
o At the gym/studio
o Running errands
o Around the house
o To work/school
o All of the above
Question 6 Results:
47
48. Where respondents wear
athletic apparel n=67
Around Running
the house errands All of the
9% 3% above
22%
At the
gym/studio
66%
Majority of respondents wear athletic apparel at the gym or studio but almost a quarter of
respondents wear athletic apparel everywhere.
Question 7: List 5 brands that come to mind when you think of athletic apparel?
Question 7 Results:
160.0%
140.0%
Recall of Top 5 Athletic Apparel
120.0% Companies n=67
100.0%
5
80.0%
4
60.0%
3
40.0%
2
20.0%
1
0.0%
The top response was Nike with 39% of respondents recalling the brand first and about
88% recalling it in their top five. Lululemon was second with 31%. No other competitor
came
close.
What’s
interesting however is how respondents recalled the brand. Some
separated
“Lulu”
and
“Lemon”,
capitalized
both
“L”
and
yet
others
recalled
it
as
“Lulemon”.
No
responses
included
the
brand’s
full
name,
Lululemon
Athletica.
It
also
appears
that
there may be
some
confusion
between
“Athletica”
and
Gap’s
“Athleta”.
For men, Lululemon was not top of mind and was only mentioned as the third or fourth
brand that came to mind. Less than half, only 44%, of men identified Lululemon while 75%
of women recalled Lululemon overall. 43% of women identified Lululemon as the first
brand that came to mind.
48
49. Question 8: Please identify the logos
Question 8 Results:
1. Nike – 99% identification
2. Athleta – only 30% identification. About 5% confused the name as Athletica and
others were unsure as evident by question marks.
3. Adidas – 73% identification though misspelling was common.
4. Under Armor – 55% identification though misspelling was common as was brand
name combined into one word.
5. Lululemon – 72% identification though misspelling was common. Men had 75%
identification while women had 80% identification of the brand.
6. Adidas – 79% (slightly more) identification than the first logo. Commonly
misspelled.
7. Reebok – 63% identification and misspelled.
Question 9: Are you able to identify which brands make the products depicted
below? Match the numbers to the appropriate brands.
o Adidas
o Nike
o Lululemon
o Under Armour
o Athleta
o Reebok
Question: Answer Key (for reference, not included in
survey):
49
50. Question 9 Results:
Product to brand identification
n=67
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
Adidas Under Reebok Lululemon Nike Athleta
Armour
Lululemon products were widely recognized by 70% of respondents. It was most often
confused with Athleta. Surprisingly Nike and Reebok had lower recognition that
Lululemon and Athleta which tied.
Question 10: What brands do you associate with the images below? Match the
appropriate number of the brands
o Nike
o Lucy
o Athleta
o Lululemon
o Under Armour
Question: Answer Key (for reference only):
Question 10 Results:
50
51. Image to brand
identification
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Athleta Under Nike Lucy Lululemon
Armour
Under Armour had the highest image to brand recognition while Lululemon and Athleta
tied with the lowest recognition. The Athleta image was mistaken to be one for Lululemon
by 49% of respondents. But it was actually the Nike image that majority of respondents,
30%, associated with Lululemon.
Most survey respondents
associated this actual
Lululemon image with Athleta.
Most survey respondents
associated this actual Athleta
image with Lucy. About 27%
associated this image with
Lululemon.
Most survey respondents
associated this actual Nike
image with Lululemon.
51
52. Question 11: What are the first five things that come to mind when you see the image
below?
Question 11 Results:
24% of respondents identified the logo as one of the first things that came to mind. Other
brand
image
associations
were
“yoga”,
“expensive”,
“pants”,
“hair”,
“quality”,
“trendy”,
“red”
and
“women”
or
“female”.
Question 12: Which image do you associate with the Lululemon brand?
Question: Answer Key (for reference, not included in
survey):
Question 12 Results:
54% of survey respondents did not associate images of men with Lululemon even though
two out of four pictures were from Lululemon. 56% of men did not associate images of
men with Lululemon and only 31% of men correctly associated one of the images with
Lululemon. Interestingly, 84% of those who responded got one of the images correct, of a
52
53. man
running
but
the
second
picture,
of
the
Olympic
men’s
volleyball
team
that
Lululemon
sponsored over the summer had only one respondent associate the brand. It seems that
there may be some awareness of the sports Lululemon caters too since the running and
spin images had the highest associations by respondents.
Question 13: Please rank the brands below for luxury fashion appeal and athletic
performance.
o Nike
o Adidas
o Lucy
o Lululemon
o Athleta
o Under Armour
Question 13 Results:
Nike had the highest average rating for athletic performance followed by Under Amour and
Adidas. The ratings between these competitors were fairly close, with all rating between
5.75 and 5.08. Lululemon had the highest average luxury fashion appeal rating followed by
Athleta and Nike. The gap between these competitors was bigger than for athletic
performance.
Lululemon’s
products
are
positioned
as
luxurious
and
fashionable.
Question 14: Which of the following is most important for you as a consumer when
purchasing athletic apparel?
o Recommendation by a friend/peer
53
54. o Advertisement, promotion or sale
o Celebrity endorsement
o Quality of materials and design
Question 14 Result:
Most important thing about
purchasing athletic apparel
100.0%
80.0%
60.0% 4
40.0%
20.0% 3
0.0%
2
1
Quality of materials and design ranked as the most important aspect of purchasing athletic
apparel followed by a recommendation from a friend or peer. Advertisements and
promotional sales was ranked third and finally celebrity endorsement was last.
Question 15: Which statement do you identify with most?
o I want to run faster, spin harder, stretch deeper
o When I do work out, I want to look good doing it
o Work out? I wear my yoga pants to brunch
o I want to feel like I am part of a community
Question 15 Result:
What respondents identified
with most n=67
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
brunch look good community run, spin,
stretch
Over
half
of
survey
respondents
identified
with
“I
want
to
run
faster,
spin
harder,
stretch
deeper”
while
“I
want
to
feel
like
I
am
part
of
a
community”
had
the
least
response.
54
55. Community is one of the cornerstones of the Lulu brand, it appears to not resonate with
survey respondents.
Question 16: Please rank these shopping experiences in order of preference.
o Online
o Off-price/discount retailer
o Department stores
o Brand retail store
o Local specialty retailers
Question 16 Results:
Shopping preferences n=67
120.0%
100.0%
80.0%
60.0% 5
40.0%
4
20.0%
0.0% 3
2
1
About 28% preferred to shop at brand retail stores followed by online. Department stores
ranked last for shopping preferences of survey respondents.
Question 17: Are you most likely to purchase Lululemon products for yourself or for
others? Why do you buy it?
Question 17 Results:
Who do you purchase
Lululemon for?
100.0%
50.0%
0.0%
myself others both
About 70% of respondents said they purchase Lululemon. Of that, about 60% purchase for
themselves and 30% purchase it for others as gifts. Another 11% purchase for both
55
56. themselves and as gifts. Some of the main reasons people purchase Lululemon clothes is
because
it
is
“comfortable”,
“high
quality”,
has
a
“good
fit”
and
were
also
given
as
“gifts”.
Appendix 12. BCG Growth Share Matrix
56
