lululemon brand management assignment

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Brand Steering Wheel Seza AYDIN-ONURUNIGE CAS Branding & Digital Marketing

Lululemon

Athletica

2+The Company

Founded in 1998 by Dennis “Chip” Wilson in Vancouver Canada

It designs technical athletic apparel and runs its own retail operations

The company owns 211 retail stores in US, Canada, Australia, China, Singapore, New Zealand, Germany, Netherlands and the UK

14% of revenues come from its online store www.lululemon.com

6383 employees in 2012

Net revenue has increased from $40.7 million in fiscal 2004 to $1,370.4 million in fiscal 2012

This success has its root on its strong brand

http://files.shareholder.com/downloads/LULU/2929469585x0x677637/64A2CB6B-0B78-41FD-A536-B99C8245F022/2012_Annual_Report.pdf

+The Story

The founder “Chip” discovers yoga and finds out that the cotton clothing most yogi’s use, is a misfit

Opens a store in Vancouver, designing its own technical yoga outfits

The store becomes a yoga studio at night

The deep yoga connection grows with the brand

To this date lululemon maintains a close relationship with yoga instructors and studios

+The product offering

The company is most famous for its women’s yoga pants

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The Brand:

Innovative technical materials

Roots in yoga

Premium and feminine

Distinctive in-store experience

Community

Focus on personal growth

Education

lululemon athletica stands for leading a healthy, balanced and fun life.

+Brand Facts Superior

technical product

Stores offering an athletic experience

Staff offering educations

Community roots through professional trainers

Premium positioning

+ The Manifesto

All values of the brand constantly communicated

An evolving manifesto visible at all brand contact points

Successful brand story telling

+The media mix

The brand heavily relies on two non-traditional channels to communicate its brand message: Social media tools Community: Yoga studios and ambassadors

To this date, there is no use of TV or radio

The print ads run only in niche sports and health magazines

+ Print Advertising

Used in few, niche athletic magazines, primarily in the US and Canada

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Onlinewww.lululemon.com as e-commerce, company and brand site

Commerce

Communication

Clear and multiple path presentation of productsOrganized by newness, gender, run/yoga, fabric and product type

Equal emphasis on communicating brand values and community tools“Education” about the brand identity and also product characteristics“Education” about yogaLinks to community, ambassadors, yoga studiosLink to the blog, where the community comes together

+ Mobile - OM Finder app

Directs the user to a yoga studio nearbySupports the yoga community by presenting studios, teachers

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Social - The Blog yoga. run. life. blog.Covering the whole lifestyle, communicating brand valuesTips on cookingSponsored eventsPractical guides on yoga and running Content by ambassadors, community

+ Social - Facebook page of the brand

Always in tune with www.lululemon.comLinks to other social tools: the app, the blog, online OM finder, InstagramAlmost 1.000.000 likesAble to generate “talks”

+ Social - Facebook pages of stores

Each store has its own Facebook pageAllowing a community to gather around the storeIncreasing relevancy to consumerConsiderable number of likes for each store

+ Social - Twitter homepage

Inline with the blog and the facebook pageAlso directs to twitter accounts for each countryAlmost 600.000 followersRegular communication of brand values through hash-tags like ♯thesweatlife

+ Social - Instagram homepage

Utilizes brand’s visual heritageDirects to the blogAlmost 500.000 followers

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CommunityClose relationship with yoga, pilates, personal training, cross-fit, running instructorsFree products, receive feedback for design Constant co-promotion: OM finder, in-store classes, ads, blogAmbassador as a presenter for the brand/products

+ In-store

Each store serves as a meeting point for the communityEvery week the store turns into a yoga studio for a free class Every week there is a weekly run initiated from the storeEach employee serves as a mentor for the clients with goal setting sessions and practicing what the brand preaches.

+ In-Store - The Shopping Bag

Successful use of the reusable shopping bag to continue communicating brand valuesBecame an urban phenomenonWith lululemon even when not wearing lululemon

+ In-store – The Store Front

Very “verbal” store frontBanners form the manifesto, current campaign

+ Events

Open air yoga sessions (this one in Central Park, NY) initiated by lululemonA half marathon, initiated by lululemonExperimenting with professional athlete sponsorships: Lululemon bike team, US men’s beach volley sponsorship

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Formal IntegrationVery poor formal integration

Logo is used in a different color in different places

Sometimes “lululemon”, sometimes “lululemon athletica”, sometimes just the logo

Each store looks different

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Content IntegrationAlways a women ambassador

Usually a famous yoga instructor

Doing a yoga pose

The name of the pose

Logo at the bottom, without name

“yoga.love.run.peace.” tagline

+ Not so unique visuals

This is an extract from one of the brand ambassador’s personal page

The same yoga instructor has posed similarly for Nike, with better product display

+Line Extentions

Successful extention

Similar problems on the product side with similar solutions: Competitors focusing on

first men, then women Benefit of technical

fabrics for female runners

Shares the same brand values

Unsuccessful extention

Due to high association of femininity with the brand

Choosing running, a highly competitive market, instead of yoga, lululemon’s more established area

Extending into Running Extending into Men

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Based on online research and online presentations

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Positioning Statement

lululemon Creating components for people to live long, healthy and fun lives.

+2013: The year of major damages to the brand

Tremendous, continues growth up to this point

Hindered by a product quality issue: The iconic yoga pants are sold See-through problems Acting too late to recall the products The problem arises a second time

Change in management, hurting investor trust

Major damage to the brand by founder: Accuses customers of being too fat, therefore

stretching the pants to much

+Effects of the crisisThe ever increasing stock price comes down, has not recovered since.

+Effects on the brand

The quality issues damage the “superior technical product” perception

The insult on customers alienates customers, damages the community, belonging feelings

AS A RESULT:

The “premium” price now perceived as “expensive” by customers

The consumers’ brand steering wheel shifts for the first time

Competitors fill in quickly

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According to Lululemon, Customers

Lululemon’s Brand

Steering Wheel

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+Brand Attributes

Technical athletic wear

Superior fit and style

Community support

Lifestyle guidance

Designer of better fit technical wear

A member of the community

Offer’s Attributes Company’s Attributes

+Brand Benefit

Better look, better fit

Enhanced athletic performance

A healthier life

Increased fitness

Durable products

Self-esteem

Accomplishment

Belonging

Sophisticated image

Functional Benefit Psycho-social Benefit

+Brand Tonalities

High self esteem

Committed

Self-actualizer

Feminine

Demanding

Affluent

An educator

Part of the lifestyle

Personality Relationship Experiences

Yoga

Pushing the limits

Perseverance

Relaxation

Fitness

Goal-setting

+Brand Iconography

Slim fit women

Yoga instructors

Yoga poses

The manifesto

Sophisticated style

“Luon” fabric on skin

Sweat

Visual Heptic Acoustic

Mystic yoga tunes (in-store, yoga studio)

High tempo gym music (at the gym)

+Brand Competence

lululemon athletica stands for leading a healthy, balanced and fun life.

+Brand Steering Wheel According to Lululemon

WHO ARE WE?

Creator of components for people to

live long, healthy and

fun lives.

What do I offer?•Better look, better fit•Self-esteem•Accomplishment•Belonging•Sophisticated image

What are my attributes?•Technical athletic wear•Superior fit and style•Community support•Lifestyle guidance

How am I?•Self-esteemed•Self-actualizer•Demanding•Affluent•An educator

How do I appear?•Slim•Fit•Sophisticated

+Brand Steering Wheel According to Customers at the end of 2013

WHO ARE WE?

Expensive yoga

clothing for skinny women

What do I offer?•Expensive yoga wear•Better look, better fit•Self-esteem•Accomplishment•Belonging (for the fit)•Sophisticated image

What are their attributes?•Yoga wear•Superior fit and style•Community support •Lifestyle guidance

How am I?•Too much self-esteemed•Self-actualizer•Demanding•Affluent•An educator

How do I appear?•Skinny•Fitness-addict•Sophisticated

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SuggestionsThe target brand steering wheelFuture steps

+Investing in brand awareness

Invest in TV, radio, mainstream print media

Emphasize the brand icons and values

Ignore sport disciplines, ambassadors

Decide on the name! Drop “athletica”

Display the name consistently

Change store design to achieve unity

“Old” Media IMC

+Extention into new sports

Keeping the feminine focus

Solving design problems

Benefiting from fabric technology

Building independent communities around each sport

Offering experiences for each sport

Ice-skating, Roller-bladingCross-country skiingCyclingClimbingSwimming

+Rebuilding trust through innovation

Introducing a convincing, continuous array of new products Improved fabric Innovative design

Employ “fat” store staff

Display non-fit figures in the store

Focus on “healthy”

Product Community

+Suggested Brand Steering Wheel

WHO ARE WE?

The premium technical athletic

company for a healthy life

What do I offer?•Premium athletic wear•Better look, better fit•Self-esteem•Bravery for life•Belonging•Sophisticated image

What are their attributes?•Design innovator•Superior fit and style•Community support •Lifestyle guidance

How am I?•Confident•Self-actualizer•Feminine•Fun•Affluent•An educator

How do I appear?•Healthy•Active•Sophisticated

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Control

+Print Ads

A test to improve the print ads is essential

Different versions of logo/name combinations

Better placement of logo through eye-tracking tests

+Brand Awareness

Lululemon is increasingly using the logo alone

Brand awareness test to discover if the target groups can recognize the logo alone, with lululemon, with lululemon athletica

+Brand Resonance

Quantitative tests to discover brand resonance, especially after the crisis

No qualitative tests are required for the clients due to well functioning community channels

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Thank you!It was difficult and fun at the same time!

Seza AYDIN-ONUR

sezaaydin@gmail.com