Lululemon has experienced many business challenges in the last few years. Their product has not delivered against the customer expectation and their marketing strategies have failed to convince her to come back. The sales and earnings for the second-quarter of 2014 have fallen short of Wall Street’s expectations and the company has lowered their outlook for the year. The current CEO, Laurent Potdevin called 2104 as a “transitional year” for Lululemon, but the investors are not reacting positively.
Objective:
Lululemon needs to regain the confidence of the consumer to buy their products again. This case study will help develop how Lululemon can create a new product and marketing strategy to attract back their core customer or potentially a new one. This strategy will identify the key elements to ensure that it can be successful for 2015 and beyond.
(Please rephrase my paragraph below to sound more professional because english is my second language, try to expand it a little more i need a whole page for the one i wrote below)
“My vision of lululemon is to expand their target customer not to change their target customer. As they have their own customer base already, with their price range and many competitors in their field the expansion of style and colors would be recommendable to improve their brand. In order to do so having more range of style and color will attract more customers and more age range. My plan for lulu is basically to add more range of style and colors to what they already have now, basically expanding it. Collaborations with other brands in their fields such as Manduka that specializes in yoga gears would also bring more customers in, customer base from both brands. Another idea that would be successful is to distribute the merchandises in high end sports gym such as Equinox, Sports Club LA and Soul cycle”
(Questions 1, 2 and 3 should be in paragraph form but for number 1 swot analysis should be in bullet points. Please separate all question by number)
1) Develop a competitive analysis of Lululemon and two other companies who manufacturer similar products. Please use a SWOT analysis to complete this question.
Strength:
Product loyalty
Textile Technology copy rights
Technical Improvement in product lines
Weaknesses:
Lack of style and color
Price range high
Partial International Penetration
Customer alleged quality concern
Opportunities:
Continuous subject to growth
Extension of product line to embrace yoga gears
Threats:
Price
Low contreaints to entry
Rapid change in fashion trends
2) What three retailers would you choose to re-introduce Lululemon back to the consumer? Why would these three retailers be the best?
1. Well known sports club (equinox, Soul Cycle, Equinox)
2. Department store such as Bloomingdales, Nordstrom
3. Cross merchandising stores such as Urban Outfitters, Anthropology, etc
3) If you were to create a Pop-Up Store to re-introduce Lululemon to the consumer, what city would you place this in and why? If the Pop-Up Store was successful in what three other cities would you place them in and why?
Please consider fashion capitals in the US (New York, LA, etc0
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