Lululemon Marketing Plan
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[pic 1]2017 Marketing Plan Written by:Table of Content1. Executive Summary…………………………………………………………………32. Company Description…………………………………………………………………43. Strategic Focus and Plan……………………………………………………………5 Mission Goals Positioning Statement4. Situation Analysis……………………………………………………………………..5 SWOT Analysis Strengths Weakness Opportunities Threats Competitors Company Analysis Customer Analysis5. Product-Market Focus……………………………………………………………….11 Marketing and Product Target Market Customer Value Proposition Points of Difference6. Marketing Programs………………………………………………………………13 Product Strategy Product Line Unique Product Quality Packaging Price Strategy Promotion Strategy Distribution Strategy7. Financial Data and Projections……………………………………………………17 Past Sales Revenues Five-Year Projections8. Implementation Plan…………………………………………………………………189. Evaluations and Control…………………………………………………………….1810. Appendices………………………………………………………………………….2011. Work Cited………………………………………………………………………….211. Executive Summary Lululemon Athletica is an athletic apparel store that sells top-quality performance wear, catered primarily to women who embody healthy lifestyles and want to be comfortable yet fashionable. Founded in 1998, Dennis “Chip” Wilson built his first store in Vancouver, British Columbia. The company since opened 406 stores at the end of quarter four in 2016. Lululemon net revenue increased 14 percent to $2.3 billion at the end of the fiscal year in January 2017. The gross profit at the end of the fiscal year increased as well; bring the gross profit up to $1.2 billion, which is up by 20 percent. The CEO, Laurent Potdevin, said that 2016 would be a milestone for success by returning the company to positive operating income growth fin the last three years. This comes on the basis of a strong brand and solid foundation. (“Lululemon Athletica Inc”, 2017)
Currently, the Ivivia by Lululemon product line sizing charts begin at a youth size 6 and end at 14 and only for girls. With this new implementation of a product line extension, the proposed recommendation is to add newborn to toddler size 5 apparel and gear that matches the Lululemon’s adults patterns and style. The “mommy and me” type fitness or workout classes are on the rise in recent years. Children at a young age are being incorporated into the workouts, either replacing weights with a baby or doing a side-by-side activity with parent and child. Mirror the luxury brand concepts, having matching styles of apparel and gear for parents and children to wear would increase sales, bring company awareness and promote the healthier lifestyle throughout the entire family.2. Company Description Chip Wilson in Vancouver, Canada founded Lululemon Athletica in 1998. Originally Lululemon began as a design studio during the night and by night, it became a yoga studio. Soon after, in November of 2000, Lululemon became a standalone store on West 4th Avenue in Vancouver. Lululemon’s first designs were made strictly for women to wear during yoga. After receiving feedback from ambassadors, guests and elite athletes, Lululemon currently designs for training, yoga, cycling, running and many other sweaty pursuits for women and men. Lululemon believes of quality, integrity, product, entrepreneurship, balance, greatness and fun are lived by people every day and are at the heart of the unique company culture.3. Strategic Focus and PlanMissionThe mission for Lululemon’s store is to create a place surpassed where people could get the gear they can sweat in, but wanted they wanted to create an entire community hub where individuals can be mindfulness, learn and chat about the physical aspects of healthy living, and living a life full of possibilities. GoalsLululemons desire is to empower people to reach their full potential through providing the right tools and resources, encouraging a culture of leadership, goal setting and personal responsibility. The core values of balance, entrepreneurship, integrity, quality, product, greatness and fun, are lived by the customers every day and they are at the center of the unique company culture. As the company continues to thrive, one would see Lululemon as a house known brand. The “family fitness” concept will be tailored to the luxurious clientele with core values as the foundation for the new direction.Positioning StatementFor active families that want to stay fashionably fit, Lululemon is luxury workout apparel and accessories brand that builds communities around not only the physical aspects of a healthy lifestyle but mentally and spiritually as well.