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Lululemon Essay

8684 words - 35 pages

Lululemon Athletica, Inc.

Ralph Forgeon
Caroline Carlson
Robert Livingston
Hanz Masood
Courtney Fields

Bus 475: Seminar in Strategy and Policy
Dr. Ybarra
May 1, 2014


Lululemon Athletica Inc. designs and retails athletic clothing. The Company produces fitness pants,
shorts, tops and jackets for yoga, dance, running, and general fitness. Lululemon serves customers
globally through its online and 254 retail stores.

Mission and Goals
Mission Statement: Creating components for people to live longer, healthier, fun lives.
Lululemon has developed a distinctive community-based strategy that we believe enhances the
brand and reinforces guest loyalty. The key elements of the ...view middle of the document...

● Expand Beyond North America. As of February 2, 2014, Lululemon operated 25
corporate-owned stores in Australia, four corporate-owned stores New Zealand, and 17
showrooms outside of North America. The company plans to open two new Lululemon
stores in fiscal 2014 in Australia and two other new stores internationally in fiscal 2014.
Over the next two years the company intend to open additional showrooms as preseeding activities in the Asian and European markets.

● Develop Direct to Consumer Sales Channel. The company launched their retail website
in the first quarter of fiscal 2009. The addition of e-commerce to their direct to consumer
sales channel expanded their customer base and supplemented their growing store base
over the past four years. The company operates country and region specific websites in
Australia, Europe and Asia, and brand specific websites in North America. Lululemon


plans to continue developing e-commerce website to provide a distinctive online
shopping experience and extend their reach.

● Increase our Brand Awareness. The company plans to continue focusing on increasing
brand awareness and customer loyalty through amplification of their brand stories and
their grassroots marketing efforts, social media activities and planned store expansion.
The company believes that increased brand awareness will result in increased comparable
store sales and store productivity over time.

● Introduce New Product Technologies. The company remains focused on developing and
offering products that incorporate technically advanced fabrics and innovative functional
features that differentiate Lululemon in the market. Collaborating with leading fabric
manufacturers, the company has jointly developed and trademarked names for innovative
fabrics such as Luon and Silverescent. Among their ongoing efforts, the company is
developing fabrics to provide advanced performance features such as UV protection and
inherent reflectivity. In addition, the company plans to continue to develop differentiated
manufacturing techniques that provide greater support, protection, and comfort.

● Broaden the Appeal of Products. The company will selectively seek opportunities to
expand the appeal of the brand to improve store productivity and expand their market. To
enhance product appeal, the company intends to:


● Expand Product Categories. The company continues to expand product offerings in
complementary existing and new categories such as swim, tennis and golf;

● Increase the Range of Athletic Activities Products Target. The company believes their
guests purchase products mainly for activities such as yoga, running and general fitness.
The company will continue to expand product categories and educate guests on the
versatility of products;

● Grow the Men's Business. The company believes the premium quality and technical rigor
of our products will continue to appeal to men and that there is an opportunity to expand
the men's business as a proportion of...

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