Introduction
Founded by Chip Wilson in 1998, Lululemon opened a new business, which mainly provide athletic wear for women yogis. The company focused on community interaction, where yoga lovers can share their physical and mental living styles to fulfill a healthy life. The original vision of Lululemon is “ to elevate the world from mediocrity to greatness by embracing social, environmental and economic health in every part of our organization and global communities.” Lululemon was attractive to a large number of yoga lovers. However, in March 2013, the company suffered from quality control that was 17% of its popular black Luon pants (sold for roughly $100 each) had problems with sheerness. After several months, two window displays disappointed
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the customers again. The responses of Lululemon sparked strong dissatisfaction among the public. Lululemon are facing some issues need to be tackled with to rebuild its reputation. Issues Lululemon are facing some important issues. The company’s statements make its situation even worsen when it tries to apologize and explain the emergence of quality control problems and window display problems. It is obvious that Lululemon are facing public relation crisis. More seriously, the company does not present a responsible business according to its reactions. In addition, the value proposition to the customers needs to be concerned about. Analysis One main issue is that Lululemon displays an irresponsible business to some extent. One reason is that the company’s approaches are not beneficial to the stakeholders. For example, after over complaints about the black Luon pants because of the sheerness, the immediate explanation of Lululemon was that they were uncertain about why the black Luon fabric was so transparent. In addition, the company also tried to explain only their relationship with manufacturer Eclat Textile, saying that the Eclat Textile was responsible for finding out the cause of the sheerness. Instead of gaining profit, manufacturer Eclat Textile, which is one of the suppliers of Lululemon take more responsibility to tackle the problem. This indicates that there are some problems in technology and manufactures segment. The company also exposed to the public that their decision-making to public relation strategy was terrible and their market reaction was slow. The company mostly responds to some major criticism over the quality problems through the media, such as televisions, Facebook, and Twitter. The comments the company made through these media caused social outrage. In fact, what remarkably push Lululemon to crisis levels is social media. And the company just voices their thoughts without being worried about whether they are going to hurt the customers. For instance, the former CEO, Chip Wilson who did a TV interview explained, “Quite frankly, some women’s bodies just actually don’t work for it. Even our small sizes would fit an extra-large. It’s really about the rubbing through the thighs, how much pressure is there.” This statement provoked public anger and made Lululemon lose its reputation. In addition, the exiling of large-sized clothing was a central piece of the company’s strategy to market its brand. A representative replied in a Facebook post, saying “our product and design is built around creating products for our target guest in our size range of 2-12. While we know that doesn’t work for everyone and recognize fitness and health come in all shapes and sizes, we’ve built our business, brand, and relationship with our guests on this formula.” This statement is absolutely improper and displays disrespect to the customers. According to these facts, it is immoral that the company blames its drawbacks on the customers’ figure. These comments may make the customers feel that the company does not do good business for benefiting the society. Instead of making comments on women’s figure repetitively, the company should concentrate more on its quality control of the products. Furthermore, the company should be concerned about its value proposition especially for the customers. The company should consider from the perspective of their customers, understand the customers’ needs, and help the customers solve problems. However, Lululemon’s reactions reflect that they care less about the customers. For example, asking the customers to bend over in order to determine the cause of the sheerness is rude. A comment mad by Christine Day, Lululemon’s CEO, stated that the bending over was the only way to tell whether the pants were defective. Instead of making improvements on their products, the company pointed out that some women just don’t fit the size of the Luon pants. And Wilson who mention about rubbing thighs become quite controversial. Also, the two window displays worsen the current situation of Lululemon. One is “We do partners yoga, not partners card.” Another is “Cups of Chai, Apple Pies, Rubbing Thighs?” It definitely confuses the public about why these words are being used in the window display. This will not attract new customers. Inversely, the company will lose its loyal customers. The company should improve the products to cater for the needs of their customers rather than focusing on other aspects. At the beginning, Lululemon considers itself as a unique market by offering high-quality yoga apparel for women. The company concentrates on high-end group of yogis, so it charges on the customers a bit expensive. Besides, Lululemon holds various social activities such as free yoga courses to bring yoga lovers together and strengthen the community base.
This should be highlighted because this is different from other sports brand, such as Under Armour and Nike. However, the company is overconfident. With the development of the company, it becomes difficult to attract new customers. It is true that yoga pants are popular, but it cannot be that when people are talking about Lululemon, what come to their mind are just yoga pants. After the crisis happened in Lululemon, the customers may doubt whether it is worthwhile to spend nearly one hundred dollars to buy yoga wears, which may encounter some quality problems. The exiling of large-sized clothing is not a wise decision. Lululemon can’t distinguish its customers from who totally fit their designed size. The company fails to deliver its value to the customers and tells the public that some yoga lovers are not suitable for putting on Lululemon’s yoga clothing. Therefore, the company not only needs to put effort into its market plan to rebuild its reputation but also needs to make some improvements on enriching its targeted …show more content…
customers. Recommendation In order to make the company move forward in 2014, it should take some actions. Most importantly, the company needs to raise the public awareness that it is a responsible business. The company needs to give an official announcement about their Luon pants issues and sincerely apologize to the influenced customers to recover the image of the company. Meanwhile, the company must concentrate on technological innovation and manufacturing process and investigate quality control of their products. The company also needs to hire some professional staff to test the fabric they use and how to improve the fabric to work see-through problems, or they can develop a better fabric. In addition, it is necessary to build a strong relationship with their supply chains and enhance regulations throughout the process of producing products. The company also should do much work to promote its marketing and sales plan. For example, the price of a same product can be discriminated through different periods of time. That is a product can be sold at a bit high price when it is a new arrival, whereas it can give the customers a discount when it is gradually out of fashion. Another way is to charge different prices based on geographical area. Also, instead of setting a price at a whole number, such as $98.00, the company can change this price into $89.99, which makes people to feel that the product is cheaper. Furthermore, the company needs to reconsider its value proposition.
Not only provide yoga clothing for women, but also offer some yoga wears for males although they are a small group of people. Not only do yoga apparels, but also do some other sports clothing, such as tennis lovers and fitness lovers. Children are doing sports as well, so the company needs to enrich their customer segments and introduce more products to attract and retain the customers. It is crucial for Lululemon to care more about its customers. The marketing staffs needs to understand their customers’ requirements by doing market research before launching a new product. The sales people need to ask advice from the customers and know how the customers feel about the products. If the company does so, the size will not become an issue. The company should also provide after-sale service in case that there might have some quality problems of the
products. If Lululemon behaves as a responsible business and clearly identify its value proposition, it can overcome the current crisis and develop forward.
Since 1998, Lululemon has transformed the way people dress to workout. Through innovative products and technical athletic fabrics, a brand was created to provide clothing for workouts such as yoga, running and cycling. Lululemon opened its first store in Vancouver in 2000 with the plan to have the store be a community hub for people to learn and discuss their physical fitness and overall health goals. As Lululemon was more than a store to provide products for consumers, their goal was to influence every person who walked into the store. A basic criterion for investment is Lululemon’s mission to create components for people to live longer, healthier, fun lives. All Lululemon locations maintain strong relationships with local communities and host in-store events such as complimentary yoga classes and goal-setting workshops.
The first Lululemon store was initially created as a place for people to gather to learn and share ideas about a healthy lifestyle. As the company expanded, Lulu could no longer target every individual walking into the store with knowledge of healthy living. At this point, the company shifted its focus to educating their employees who could positively influence everyone who walked into the stores. The thought and reasoning that went into the first Lulu store has continued as the company has grown. It has continued to target active people while pushing everyone towards a healthy lifestyle. Its main target market is young woman, between 15 and 34 years old, in the middle to upper classes. One of Lulu’s top products is its yoga pants, which along with a majority of the products Lulu creates, are made to wear during exercise. The style and fit of this clothing helps men and women alike to look good while working out, this leads to a boost in self-confidence and self-esteem. On the other hand, the close fitting material incentivizes people to stay active and eat healthy in order to fit into the clothing that is offered by Lululemon. In the past few years Lulu has expanded its target market to include active males as well. The same material is used in the male products, so the male consumers benefit in similar ways as the woman consumers.
C-79). The company is also offering products and apparel intended for other healthy and athletic lifestyle pastimes rather than solely for yoga. These include swimwear, which were introduce for women in fiscal 2013 and men in the spring of 2014, dance apparel through its ivivva brand, as well as expected golf and tennis products (Thompson, 2014, p. C-80). Additionally, Lululemon offers such products as gear bags, water bottles, caps, gloves, headbands, and socks. This supports the company’s core component to “broaden the lululemon product line beyond yoga, running, and general fitness (specifically swimming, golf, and tennis) and include offerings for both males and females of many ages” (Thompson, 2014, p. C-79) for its fiscal 2014 business strategy. This indicates that the senior administrators of Lululemon have been transitioning the company’s competitive strategy from having a narrow market focus just on yoga
As this consumer group is very interconnected through their passion for fitness and yoga, they also have a shared passion for promoting a healthy, happy, active lifestyle. These consumers also heavily identify with the main point of Lululemon’s manifesto. Lululemon’s public declaration of its policy and aims consists of phrases such as: “The pursuit of happiness is the source of unhappiness”, “friends are more important than money”, and “sweat once a day to regenerate your skin.” (Lululemon Manifesto) Many of these “trendy urban” consumers would identify as a “yogi”, otherwise known as a, “person who is proficient in yoga.” (Google Definition) Their interests and values are consistent with Lululemon’s vision: “a place where people could get a sweat in, we wanted to create a community hub where people could learn and discuss the physical aspects of healthy living, mindfulness, and living a life of possibility.” (Lululemon
The Limited, Inc. was founded by Leslie H. Wexner on August 10, 1963, beginning with one store located in Columbus, Ohio. During its first year in operation, this store achieved sales of $157,000. His strategy was to provide a "limited" assortment of quality, fashionable sportswear at medium prices. The "limited" concept worked well and by the late 1970s, Wexner began a twofold strategy of market development and product development. New stores were opened and acquired an appeal to women of different ages, sizes, and budget limits.
Lululemon was able to corner the market in a market driven business, which has strengthens and weaknesses to consider. This company could benefit from more aggressive advertising because they have such great brand recognition and consumer loyalty. With the retail market changing and more competitors entering the market, Lululemon needs to stay competitive and offer a broader spectrum of products and expand their markets into areas they already have great brand recognition. Lululemon takes pride is offering a high quality product and this company changed the way the world sees yoga appeal today. In very recent years yoga has become a popular sport and the consumers today want to look stylish while doing so and this company offers the rights products to do
considered normal for a well-established business. Lululemon's price earnings ratio tells us that there is increased growth and performance anticipated in the future.
Geoffrey B Small, even if he is not consciously concerned much about marketing, as he says he hates it, generally emphasizes on intelligent and honest marketing in terms of implementation. Geoffrey B. Small actively implements the marketing which is a simple and intuitively appealing philosophy which articulates a market orientation. (Lamb, 2014). He is someone who can claim that he understands his customers’ needs and wants and focuses on meeting them with his product. Small, implements the marketing concept by creating clothing that satisfies his customers desire to have long-living clothing from a company that is driven to protect the environment and civil rights. As Small mentions, the idea is to give the customer something that they need and something that they need so badly that they are willing enough to pay for it. He focuses on all the various aspects of his business
has been on the cutting edge of the apparel market since 1998 when Chip Wilson realized that what was available for practicing yoga was not up to par. He began offering yoga apparel made of performance fabrics to local instructors and asked for their feedback to improve the product. This is just the beginning of what will become a multibillion dollar business model of creating a product and asking professional yoga instructors for their opinions. However, while the business was still in its infancy he had to have his store double as a studio to be able to pay the rent. This model almost forced him into many habits that major retailers are beginning to embrace with just in time delivery and carrying a more narrow selection. Also, this practice of stores doubling as studios would become a calling of Lululemon athletica, Inc. Wilson incorporated this model into his stores as he began to expand Lululemon into an international brand overcoming many challenges along the
Athletica Inc. test boutique is providing assistance to form the foundations for what the finest yoga wear maker considers as an auspicious avenue for customer attraction and growth in sales. The Canadian retailer is currently focusing on global markets even as it struggles with the need of having a fresh chief executive, fixing a tainted image after a distressing recollection of excessively sheer pants and looking forwards to expand in the United States. The step to expand in the United States can prove to be tricky even during the best times or season. Though the rewards are appealing, such international markets can be inconsistent, complex and uncertain. Currently the investors observing the successful track record of Lululemon, opinion
Lululemon Athletica dominants the yoga apparel sector, however, when it comes to general athletic apparel brands such as Nike, Under Armor, Adidas, Puma, ETC. all take a spot alongside Lululemon as top competitors. It’s for this reason that I don’t believe Lululemon could be considered a monopoly in the world of athletic apparel.
Levi's needs to recall with their preparation arranging methodology. These days monetary elements demonstrating that they have to movement their items from premium estimated brands to lower evaluated quick mould items. The explanation for this is present business style patterns are going to quickly change.
Based on the study, UNIQLO is very important all over the world because its fashion is one of the best designs that were produced by UNIQLO. Fashions are the sources that help the people to wear any kind of cloth to look simple and fashionable. The purpose of this study is to presents the extensive review and analysis of UNIQLO is very good to fulfill consumer needs, wants, and demands in fashion’s world.
“We have a very focused strategy,” notes Enric Casi, Mango’s chief executive. “We target women who want the latest in fashion trends. If we were aiming at the entire public, we would not be loyal to our true customers.” Casi asserts that his target is “30% of the people who pass by our shops; we could not try to attract all 100% because we would lose our identity.” Casi adds, “Our women don’t go shopping; they go to Mango." In addition to various promotional campaigns, the values of the brand are strengthened “by stylishness and design because we bring out four collections each year thanks to the teamwork of our more than 900 designers.” He adds, “The shops aren’t only for selling [garments] but also for getting information [about them].” According to Casi, when a customer chooses a garment to try on, it is because she likes the design, the material, and the colors.
The innerwear industry in India has high growth potential and immense business opportunities and it is evident from the fact of entry of various international brands coming to this sector. A shift from price sensitivity to brand sensitivity and preference for bold colors and innovative designs are two key factors The market size of innerwear is currently valued at Rs. 14000 crore and is expected to grow by Rs.44000 crore. Innerwear with higher functionality and greater comfort is in great demand today. .Innerwear has moved out of the ‘basic necessity’ bracet to a feel good factor. The higher income, fashion consciousness ,more awareness about the product, innerwear it is no longer treated as an undergarment but as a fashion article. The areas that need to target for serious growth are product quality , communication ,high cost of brand, awareness .Growing number of working womens with brand conscious, changing fashion trends , increased awareness about better fits, quality ,brands, colours , comfort ,styling ,increased income level ,the people are looking for branded innerwear. Therefore introducing a brand in this sector will flourish the