Thanks to creating its own material, Lululemon can achieve a high brand position and does not have many serious competitors on the market. Their stores also host free yoga classes and weekday run clubs. LULULEMON ATHLETICA CASE SUMMARY LULULEMON’S BRAND POSITIONING Lululemon is the product of choice for young, fashionable and successful fitness enthusiasts who appreciate fashionable and high-quality athletic wear because Lululemon offers an eye-pleasing, comfortable and high-quality line of products that can be worn casually as well. The world sports apparel industry is expected increase manifold, 2. © Copyright 2021 by AVADA Commerce. “We believe we are operating from a position of strength as we invest in creating dynamic experiential moments for our communities to connect and come together.” Sales representatives offer personalized recommendations and encourage customers to visit the stores and try out products. For the company, word of mouth is actually one of the most important advertising tools. Product placement also has its own strategy to gain the utmost attention. Lululemon Athletica is one of the leading brands in the lifestyle and retail sector. MBA Skool is a Knowledge Resource for Management Students & Professionals. The current state of the world solidified Lululemon’s position at the top of the athleisure totem, a trend the company all but created, and which fuelled its growth over the last two decades. What do you think about Lululemon’s marketing strategy? For example, Lululemon’s Twitter account replies are all encouraging messages to devoted customers. The faithful were drawn to Lululemon like moths to a flame. As mentioned, the community - also known as the ‘Luluheads’ are encouraged to come together and help each other in real-life events. Discover the keys to its success and what you can learn from the brand to grow your business or even tackle fields that seem to be dominated by big players. Lululemon shares were about 1% higher by Wednesday afternoon. The BrandGuide section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2800 brands from over 20 industry sectors. SWOT Analysis is a proven management framework which enables a brand like Lululemon Athletica to benchmark its business & performance as compared to the competitors and industry. It has also created a special pricing policy that offers discounts, incentives, and free shipping to maintain a loyal customer base. The storefronts can be in malls, on the streets, or be lifestyle centers that offer the maximum brand experience. By promoting a healthy lifestyle, it could create a community of active enthusiasts who love the premium quality. The two sides of the Lululemon’s marketing strategy that involves personal success and group belonging reinforces the promoted lifestyle in customers’ minds. The company has its presence at over 140 locations, 5. The company builds brand loyalty through local initiatives like its ambassador program. With sustainable growth over the year, the brand keeps proving to be a strong apparel company that even giants can’t touch. Below are the top 4 Lululemon Athletica competitors: This article has been researched & authored by the Content & Research Team. How would you apply what you learned into your own business? And Lululemon doesn’t just talk about it, it runs a wide variety of health and fitness events for the brand’s members. Although Lululemon sells a more niche product than basketball sneakers, the yoga brand's strategy to release limited edition collections could have a similar impact on its growth. The signature material is Luon - a durable and lightweight material that gives absolute comfort during activities. High value equals high prices, so Lululemon adopts a premium pricing strategy for its qualitative products. And the apparel design was not efficient either. And, that may be the most powerful marketing strategy of all, as the brand can be more than just a seller, a good friend. Lululemon Athletica Inc., best known for yoga gear for women, is positioned to disrupt the menswear category, analysts say. It invented a brand new category of apparel that combines the functionality of workout wears and a premium look and feel of streetwear. Thanks for reading! With success, it also needs to re-emphasize the brand’s values of wellness and healthy living. Lululemon Athletica (/ ˌ l uː l uː ˈ l ɛ m ɪ n /), styled as lululemon athletica, is an athletic apparel retailer domiciled in Delaware and headquartered in Vancouver.Founded in 1998 as a retailer of yoga pants and other yoga wear, Lululemon has since expanded to sell its products internationally in 491 stores as well as online. SWOT analysis of Lululemon Athletica analyses the brand/company with its strengths, weaknesses, opportunities & threats. Nurturing entrepreneurial spirit. 2. These often have a secured income source and can easily afford sports apparels as part of their monthly routine. Lululemon is the Patagonia of the new century. The brand expanded its product selection, creating leggings for running or high-impact … Lululemon invented its own ambassador program by partnering with local fitness and yoga coaches to promote its products while helping them grow their reputation at the same time. Quizzes test your expertise in business and Skill tests evaluate your management traits. There are five steps Lululemon Athletica Inc can follow to understand the strategic positioning of its key competitors: Firstly, clearly define the target market. But Lululemon couldn’t attract that many people with just cool events, it really needs to pursue a lifestyle that is worth-doing for customers. Through the experience and leisure provided by the stores, Lululemon can provide exceptional customer service which lets customers spread the word about the brand. The practice and philosophy of yoga informs our overall purpose to elevate the world through the power of practice. Lululemon has to push the message through every channel, promotional materials, web presence, social media, and brick-and-mortar stores. The company focuses on employment growth by encouraging to give their best, pushing themselves for a better result and elevate in the process of learning through which the brand gets empowered gradually. This ideal brand experience begins with the unmatched quality of lululemon products, which arises from a combination of performance and style. B2C Marketing vs. B2B Marketing, What To Sell On eBay? Challenges faced by sports apparel companies include constantly changing fashion trends, tough competition and more price-conscious shoppers. The founders invented their own technology with an engineered fabric called Luon, Nulu, Luxtreme, and Nulox, depending on their compression levels and the garment’s intentions (yoga, train, or run). The potential value of this is significant since groups of people are introduced to each other and become better, thanks to Lululemon. All Rights Reserved. Founded in Vancouver, Canada in 1998, lululemon athletica is a technical athletic apparel company for yoga, running, training and most other sweaty pursuits. It has underscored the company’s achievement of a rare and elusive prize: enduring brand … Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. There is a clear necessity to put a charismatic celebrity as the brand ambassador, but the niche Lululemon targeted was narrow. If you can create a whole new genre of product, you won’t encounter much competition. People buy not just because of the quality, but also because of the positive messages that Lululemon embodies and expresses. To attract a broader audience, Lululemon has started to build a new product positioning about fitness and leisure. Lululemon realized that it needs more than just good content. • List of LULU Competitors With net margin of 12.85 % company achieved higher profitability than its … The company sells athletic apparel, including yoga pants, shorts, tops, sweaters, jackets, and undergarments, as well as yoga mats, bags, hair accessories, and water bottles. and encourages physical need to live an active fitness for all consumers. Our Story While Vancouver, Canada is where you can trace our beginnings, our global community is where you’ll find our soul. In return, Lululemon had them put in a number of hours inside the stores and run free yoga classes to represent the brand. The company promises to deliver an athletic fit that maximizes functionality and ensures moisture retention. For example, you can see real ambassadors practicing yoga at the store’s window in New York. It had to acknowledge and engage customers on social media. It worked. Being a pioneer in the athleisure industry, Lululemon pushes itself to be one of the most iconic fitness brands in the world. Top Selling Items On eBay In 2021. It is joining up with fashion designers to produce new clothing styles and widen their product lines, 3. Get special offers on the latest news from AVADA. I have mentioned that in the 2000s, most athletic wears on the market belong to Nike, Adidas, and Under Armour. In fact, 88% of online buyers don’t want to buy from a business that doesn’t answer their social media complaints. The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top Lululemon Athletica competitors and includes Lululemon Athletica target market, segmentation, positioning & Unique Selling Proposition (USP). Good advertising and marketing of the brand. Many trainers and coaches are trying hard to become Lululemon ambassadors nowadays. Having one million followers, the brand still replies to as many customers’ tweets as possible, creating a real and emotional human connection with the community. Lululemon Athletica has positioned itself as a prestigious brand and has used exclusive marketing for promoting its brand awareness. The threats in the SWOT Analysis of Lululemon Athletica are as mentioned: 1. Comparing the results to its competitors, Lululemon Athletica Inc reported Total Revenue increase in the 3 quarter 2020 by 21.97 % year on year, while most of its competitors have experienced contraction in revenues by -7.57 %, recorded in the same quarter. And that is not all, Lululemon is also promoting the brand on many other channels. Designed to share our culture with the community, our manifesto is a collection of bold thoughts that are aimed to encourage some real conversations to take place. This suits high-end customers who value the brand’s quality more than money. The pricing strategy has been consistent over the years to remain a premium product status, so Lululemon’s products keep receiving attention from buyers. Off-screen marketing activities were also involved with some creative campaigns. The brand names and other brand information used in the BrandGuide section are properties of their respective companies. The headquarters is based in Vancouver, Canada. By treating audiences as a community of people that are brought together by the common purpose of pursuing a healthier lifestyle, Lululemon can create deeper connections with customers. By dedication, the company could attract many types of customers from active millennials to professional athletes to wear their products to class. In each element, I will give a noteworthy campaign that Lululemon did to further promote brand awareness. This is a change that we still feel today. It has an official website to sell products and also make sales via fitness center, yoga studios, and health clubs. Following are the Opportunities in Lululemon Athletica SWOT Analysis: 1. We will get into details about this in the below section. It has also collaborated with many leading suppliers to create advanced material with innovative features. Then, buyers would recognize that they didn’t only buy sportswear, they bought a way of life. This is obviously better than considering buyers just anonymous people and interchangeable individuals. Retail stores transform into fitness and conversation hubs on weekends for free lessons, to … Below are the Strengths in the SWOT Analysis of Lululemon Athletica: 1. On the homepage of Lululemon, you can find its vision to be a community hub where people could learn and discuss all the physical aspects of mindfulness, healthy living, and living a life of possibility. Since Lululemon kept getting bigger, the ambassadors received a large surge of new followers as well. Founder Chip Wilson is an Ayn Rand fan, and the Vancouver-based … Because of this and other aspects of their brand positioning, Lulu is more often associated with hippies and yogis than other types of athletes. For the company, its stores are its most important advertising tool. lululemon is progressing well with its strategy for 2020, which aims at doubling revenues to about $4 billion and more than doubling its earnings. In 2019, it was reported to have 460 stores worldwide, with more than 15,000 employees. In this article, let’s take a look at Lululemon’s marketing strategy that helped it get to its current position. All of this transformed Lululemon into a household name. Lululemon also participates in many public relations activities. Lululemon has always been the second name of innovation. Lululemon gives its customers stores that provide everything a fit lifestyle needs. On a high note, Lululemon holds an annual event called “SweatLife Festival”, which brings over 6,000 attendees for a weekend full of learning, sweating, and inspiring. The company’s business strategy is based around promoting its “Lululemon Athletica” and “Ivivva Athletica”-branded products as steppingstones to an active and enjoyable lifestyle. As a quick recap, here are what you can learn from Lululemon’s marketing strategy: Lululemon has always been a brand that can connect the products with the values that inspire customers. Analyse the competitors’ product offerings, their … “Lululemon Athletica creates components for people to live longer, healthier, and more fun lives. Jealousy works the opposite way you want it to, Yoga apparel for people to live long, healthy and fun lives, Exclusive quality in sports and yoga apparel. Having a great brand story is only valuable when you have people to tell that story for you, andhe customers who believe in your brand and actively promote it are invaluable and are known as brand advocates.. For a brand like Lululemon that has become a leader in the fitness … Athletes and influencers are selected as the brand’s ambassadors to create positive brand awareness as well as expanding the community of fitness enthusiasts. With a strong distribution infrastructure, Lululemon can distribute its products well in both domestic and international markets. The Pinterest account of the brand has over two million followers, and the Instagram account has more than three million followers. According to a yoga teacher from Australia, the ambassadors got a lot of support from the brand to pursue any initiatives and events that they desire. The company proves that they want to deliver top-notch exercise as well as top-notch apparel. These social interactions are just one way that Lululemon inspires customers to live a life of health, wellness, and possibilities. Dig deep into the values that your target customers live by, and create a new lifestyle out of that. The local yoga and fitness coaches got more customers, had access to high-quality products, and grew their businesses. In this section, I’m going to show you the core elements of Lululemon’s marketing strategy. A notable campaign is the “Sweat With Us” classes - with hundreds of small events running in Lululemon stores. Here are the weaknesses in the Lululemon Athletica SWOT Analysis: 1.Limited global penetration despite high quality apparels, 2. A behind-the-curtain look at the challenges Lululemon faces in 2019 coming off of a record-breaking 2018, specifically weak comparable store sales, international expansion and its pivot to menswear. In a saturated industry dominated by big players, Chip Wilson found a way to thrive his business, not by taking on the giants head to head. Creating a strong brand like Lululemon requires an even stronger brand community. In 2019, Lululemon grew its portfolio by acquiring more male customers and plans to promote brand awareness among men. Lululemon uses this program much as other sportswear and equipment companies use star-athlete endorsements. In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Lululemon like moths to a flame would love to pursue, not just because of the leading brands in US., and the Instagram account has more than money lifestyles, with many with! To show you the core elements of Lululemon products, Lululemon is $ 3.98,. Fitness coaches got more customers, had access to high-quality products, which is very.! 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