lululemon brand management assignment
DESCRIPTION
University of Geneva Certificate in Branding and Digital Marketing assignment for Prof. Langner. Lululemon's brand identity analysis using Esch's Brand Steering Model Seza AYDIN ONURTRANSCRIPT
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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
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