lululemon mba marketing plan

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“Do you lulu?” Marketing Campaign 2011-2012 lululemon athletica

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This is a final project I worked on for my last MBA marketing class. I designed the paper as well as created parts of the plan.

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Page 1: lululemon MBA Marketing Plan

“Do you lulu?” Marketing Campaign 2011-2012

lululemon athletica

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Table of Contents

pg. 3 Introductionpg. 6 Executive Summarypg. 7 Researchpg. 9 Objectivespg. 10 Situation Analysispg. 11 Consumer Analysispg. 15 Industry Analysispg. 17 Broad Overall Analysispg. 22 Strategies and Planspg. 43 Timeline and Budgetspg. 46 Summarypg. 47 References and Appendices

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IntroductionBulldog Marketing is a marketing communications firm based out of Houston, Texas, that has extensive education and experience with building brand awareness and online sales. Our team members have an eclectic background in business, marketing, digital marketing, media relations, new and social media, and public relations. Our proven results as a team speak for themselves, as we have created successful campaigns and strategies for a number of high-caliber clients.

We chose to focus on lululemon athletica because we feel the brand has very strong potential in the U.S. market. lululemon has strong sales and is growing at a fast rate every year. Since lululemon is a Canadian-based brand, the brand awareness in the United States as yet to reach its full potential. We at Bulldog Marketing feel that our combined experience coupled with lululemon’s strong branding that already exists in other markets will prove to be successful.

We look forward to working with you in the months ahead and building the lululemon brand.

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Meet the TeamNicole Grandy has a Master of Business Administration from The University of Houston and a Bachelor of Business Administration in marketing from The University of Texas at Austin. With experience in marketing research as well as internet marketing, Nicole is constantly keeping up with the newest trends in the industry. In her spare time she enjoys traveling, cooking, and Longhorn football.

Jeffrei Clifton completed her MBA at the University of Houston and her B.A. in Mass Communication with a concentration in Public Relations with minors in Business Administration, History, and Leadership Development at Louisiana State University. Her background is in healthcare marketing. Outside of work, she enjoys doing it big, NOLA, Texan country music, bike riding, reading historical

Joyce Jia Hu is a recent MBA graduate from the University of Houston Bauer College of Business. She has been an ambassador for heath and fitness through her dancing since the age of 14. She has a strong community presence, with a focus on the Asian community in Houston. In her free time she dabbles in high-fashion photography, collects Hello Kitty merchandise and is avidly addicted to www.tumblr.com.

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Meet the TeamKrista Smith earned her MBA from the University of Houston and completed her B.A. in Communication with minors in Business and Journalism at Texas A&M University. Her professional background is varied, with experience in marketing, social media, journalism, and counseling. Krista is a freelance writer, a self-proclaimed bookworm, a road trip enthusiast, and a lover of baseball.

Rachel Walton has her MBA from the University of Houston with concentrations in marketing and management. She is an exceptional problem-solver and decision maker with diverse experience in entrepreneurship and all aspects of office operations, as well as expertise in customer service and direct sales. Rachel is an avid spinner and foodie which works well because one balances the other.

Carolina Thomas has a Master of Business Administration from The University of Houston and a Bachelor of Science in Advertising as well as a Bachelor of Journalism from The University of Texas at Austin. Carolina enjoys all aspects of marketing and advertising and has varied experiences from social media, to event planning to public relations and more. In her free time, she loves watching movies, tweeting and designing.

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lululemon athletica is an athletic apparel store that sells high-quality performance wear geared primarily towards women who lead healthy lifestyles and want to do so in a comfortable—yet fashionable—way.

Founded in 1998 by Dennis “Chip” Wilson in Vancouver, British Columbia, lululemon currently has 45 stores in Canada and 70 in the U.S. which sell “innovative, technical apparel products” that are “designed to offer performance, fit and comfort while incorporating both function and style,” according to their 2010 annual report.

Although lululemon boasts annual revenue of $452.9 million and a gross profit of $223 million, its strong brand recognition and sales are mainly concentrated in the Canadian market; these indicators have yet to reach that same level in the U.S. market, even though there are almost double the number of stores in the U.S. as there are in Canada. Keeping in line with the company’s current “community-based” marketing strategy, Bulldog Marketing seeks to increase lululemon’s brand awareness in the U.S. market.

The target market for this campaign was identified as 18-34 females who are fit, health conscious, and fashion-forward with high disposable incomes. These individuals are lululemon’s most significant customers, and they will be targeted through a variety of marketing media.

The primary goal of the “Do You lulu?” campaign is to elevate the lululemon brand in the U.S. while still being true to lululemon’s historical marketing efforts. The company has made a point to not advertise in traditional media like print; instead, their growth has relied on word-of-mouth and grassroots efforts to spread their brand message. This campaign is unique in the fact that it is designed to be carried out at both the national and local levels—in other words, we have developed strategies specifically for all lululemon stores both collectively and individually. The campaign will rely heavily on social media, special events, and guerrilla marketing tactics, all of which will pose the question: Do You lulu?

Executive Summary

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ResearchIn conducting exploratory research for the “Do You lulu?” campaign, we focused on both primary and secondary sources.

PrimaryA survey was distributed to 100 participants to gauge the buying patterns of current and prospective customers and measure awareness of the lululemon brand. In the survey, respondents were asked about their workout habits, their athletic apparel purchasing habits, and their opinions of lululemon. In the results we found that 43 percent of our respondents had heard of the brand lululemon. Of that 43 percent, only 24 percent have actually purchased a lululemon product. When asked why a respondent would not purchase lululemon, expense was rated as the highest factor. Fifty-three percent of respondents disagreed that lululemon was affordable, however 71 percent either agreed or strongly agreed that lululemon if high-quality. (Appendix 1)

We also conducted an interview with Maura Sweeney, Houston Regional Manager of lululemon and UH Bauer alum. In the interview, Sweeney described the current target of lululemon, their competition, and the company’s overall marketing strategy. Through Sweeney, we were able to gain a firsthand perspective into lululemon’s current marketing strategy and growth plans.

As a team, we also visited the lululemon location on Westheimer Road in Houston, Texas. In the store, we were able to browse the merchandise and gain a better knowledge of lululemon’s products. We were also able to view the store layout and in-store promotional materials that the company already uses.

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ResearchSecondaryOur secondary research consisted of online journal publications like Plunkett and Hoovers, as well as various online yoga blogs. In comparing lululemon to its competitors in the industry, we analyzed the financial documents and annual 10k reports of each company. We also studied lululemon’s online distribution strategy by looking at the company’s website, www.lululemon.com.

Bulldog Marketing has also created a preliminary influencer map that identifies people and communities with the most potential to affect purchasing decisions of the target market. This information will be discussed later in the plan.

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ObjectivesOur objectives for this campaign are all designed to increase overall brand awareness within the U.S. market. To do this, we specifically aim to do the following:

• Increase U.S. sales by 10 percent• Increase website traffic and online sales by 10 percent• Increase the number of individuals who would consider purchasing lululemon

apparel by 20 percent• Increasing individual store sales of women’s apparel by 5-10 percent• Increase Facebook “Likes” by 50,000 for corporate page and 300 for store pages• Increase Twitter followers to 100,000 for corporate page

The majority of our objectives will be easily measurable either by analyzing financial statements or through noticeable increases in social network participation. However, we will conduct extensive pre- and post-campaign surveys in order to measure brand awareness. We will also hold focus groups to gain a more in-depth analysis of the lululemon brand.

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Situation Analysis

and relationships, philanthropic activities

SWOT

Strengths:

• High-quality products • Innovative features and styles • Vertical retail strategy—produce

everything down to fabrics and sell in own stores—lots of control

• Selective outside retailers—positioned as premium brand with premium pricing

• Well- trained staff—known as “educators,” 30 hours of training within first 3 months

• Premium store locations • Community-centered marketing

approach—builds brand awareness, relationships

and philanthropic activities

Weaknesses:

• Weak brand recognition in the U.S.--may not be in consumer’s consideration set

• Slow growth strategy due to lack of mass marketing

• Decentralized marketing--each store has control over own message

• Few retail outlets--may not be able to reach all potential consumers

Opportunities: • International expansion • E-commerce development • New market segments--men and

youth • Growth in U.S. market • Build U.S. brand recognition

Threats:

• Economic conditions may decrease consumer spending

• Competition • Small market size- lack of health

focus in U.S. market • Lack of consumer knowledge • Heavily focused word-of-mouth

marketing strategy/ lack of control of message

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Consumer AnalysisEssentially, lululemon aims to market a lifestyle to young, affluent women. While lululemon’s clothing is a quality product and can last through many workouts, anyone—even those who don’t work out or practice yoga regularly—can buy it and project the image that they do engage in those behaviors. The market for lululemon apparel is likely to continue growing. According to a Plunkett Research report, in 2008 the Sporting Goods Manufacturers Association found that 34 percent of Americans exercise on a frequent basis, which is defined as 100 days or more per year, while 10 percent exercise on a regular basis, which is 50 to 99 days per year. In addition to this, yoga is the fastest growing sport in America, with more than 10 million people practicing it (Yoga Journal, 2008).

America is exercising more, and lululemon should plan to capitalize on it. To further define the company’s target market, we have produced an in-depth consumer analysis in order to better understand the lululemon customer.

Target Marketlululemon services a very precise consumer—the young, hip, and fit 18-34 year old woman who embraces fitness and athletic activities like yoga. Within lululemon’s 2010 annual report, the company defines their target customer as a “sophisticated and educated woman who understands the importance of an active, healthy lifestyle” and who:

“is increasingly tasked with the dual responsibilities of career and family and is constantly challenged to balance her work, life and health, pursues exercise to achieve physical fitness and inner peace, and purchases based on an actual need for functional products and a desire to create a particular lifestyle perception.” (lululemon 10K, 2010)

Based on this information, we have identified two primary groups within the campaign’s target market: the “Zen Y”er and the Mother Zen.

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Consumer AnalysisThe “Zen Y”er is a young, college-aged woman without children. As a member of Gen Y, she is forward-thinking and prides herself on knowing the latest trends in several aspects, including fashion, technology, and pop culture. She may or may not be interested in fitness, but she wants to keep up with the current trends. Since yoga is a growing sport popular with her peers, she is likely to have some knowledge of the practice. Doing yoga for the “Zen Y”er is not for health purposes—rather, it is for the statement it makes and how good she looks while doing it. The “Zen Y”er is wearing lululemon to be fashionable and trendy.

The second group is the Mother Zens. The Mother Zen is a young mother who enjoys staying current on popular trends. She is college-educated and may or may not be conscious about the health of herself and her family. Yoga—if she practices it—is an escape. lululemon apparel for a Mother Zen makes a fashion statement, but it also has many uses. The Mother Zen is just as likely to wear her lululemon yoga pants to an exercise class as she is to make a quick trip through the grocery store.

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“Zen Y”er Sample Profile

Elaina is a 20-year-old student studying film and television at New York University. She is enjoying the city nightlife as a single woman, but still remains concentrated on her studies, as she one day hopes to make her name as a film director. Elaina’s parents—her father is an affluent Wall Street executive while her mother is a housewife—are supporting her while she attends college. They pay all of her living expenses and also give her monthly spending money. Elaina loves all things entertainment, but she is also a fashionista who spends lots of time canvassing the shops on Fifth Avenue for the latest fashion trends. She wants to project an image as a trendsetter and often has all of the up-and-coming gadgets before her friends. Her iPhone 4 is never far from her side, as she loves to tweet throughout the day on Twitter. She also makes a point to check in to every business or event she attends via FourSquare, as her peers are sure to see how active she is in the fast-pace life of New York City.

After a close friend asked Elaina to accompany her to an outdoor yoga class earlier this year, Elaina has been attending a twice-weekly yoga class in Central Park. She has come to enjoy this time as a peaceful break from her hectic lifestyle. There is a lululemon store located a few blocks from Elaina’s apartment. She has traditionally bought workout apparel from athletic shops but has yet to determine a brand preference in her yoga gear.

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Mother Zen Sample Profile

Bethany is a 30-year-old married mother of two children: a four-year-old little girl and a seven-month-old baby boy. She earned a degree in business from Tulane University and worked in pharmaceutical sales for four years before she and her husband decided to have children. Bethany is now a full-time stay-at-home mother but plans to return to work once her children are in school. Even though she is a young mother, Bethany has refused to become a typical soccer mom; she stays up-to-date on the latest technology, fashion, and pop culture trends and gossip. Since she and her family have recently relocated to Chicago, Bethany stays in contact with her family and friends in her native Lafayette, La., via Skype and Facebook. She also maintains a blog that is well-recognized in the online community, where she often writes about her family, new recipes, crafts or special projects she is undertaking, and other subjects she finds of interest.

Bethany is constantly on the go. Whether it is taking her children to the park or doing a quick run through the grocery store, she leads a very active life. She prides herself on being able to juggle the responsibilities of motherhood while still being hip.

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Industry AnalysisThe United States sporting apparel market, which lululemon is classified under, is the world’s largest sportswear market, accounting for 41 percent of total sales. It is followed by the European Union, which accounts for about 38 percent (Research and Markets, 2007).

In 2009, U.S. consumers spent about $9.2 billion on sporting apparel; this was expected to grow to $9.6 billion in 2010 (NSGA.org, 2009). While other women’s apparel categories suffered during the recent economic downturn, women’s sporting apparel only suffered a 5 percent decline from 2008-2009. According to a Plunkett Research report, manufacturers such as Stella McCartney, Juicy Couture, and Norma Kamali, as well as big names such as Nike and Adidas, are pushing their sporting apparel lines with “an ever-increasing variety of styles that can go from gym to nightclub” (Plunkett, 2010).

Yoga is a continually expanding industry, with Americans spending more than $5.7 billion in classes and equipment yearly. The sporting apparel industry is also projected to continually increase over the next few years. According to Plunkett,“while Americans (as well as residents of many other countries from Mexico to China) have been putting on weight, they have also developed a keen interest in sports apparel and workout gear to wear at the gym and in other leisure activities. This is one of the fastest-growing product categories in the apparel and shoe sector. Over 40 million Americans have some sort of gym membership, and they need appropriate clothing to wear while they workout.”

Within the sporting apparel industry, lululemon’s top three competitors are Nike, Adidas, and Under Armour, with secondary competitors consisting of Bebe stores, Jockey International, Liz Claiborne, Lucy Activewear, and Gap (Hoovers, 2011).

Competitor AnalysisNike was incorporated in 1968 in Oregon, and the company states that its “principal business activity is the design, development, and worldwide marketing of high quality footwear, apparel, equipment, and accessory products (Nike 10K, 2010).

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Industry AnalysisUnlike lululemon, Nike has an extremely diversified distribution strategy, selling its products though large retail accounts, Nike-owned retailers, and independent smaller distributors in more than 170 countries around the world. In addition to its Nike products, the company owns Cole Haan, Converse Inc, Hurley International LLC, and Umbro Ltd. Nike ended the year 2010 with more than $19 billion in revenue.

Adidas is a German sports apparel manufacturer with subsidiaries including Reebok, Rockport, and TaylorMade. Under the Adidas name, the company sells athletic apparel, footwear, sporting equipment, and accessories. Like many of its large competitors, Adidas sponsors professional athletes and sports teams. The company has high brand recognition and is the largest sportswear manufacturer in Europe (Adidas 10K, 2010).

Under Armour was founded in 1996 and gained notoriety in the athletic apparel business for its moisture-wicking fabric. The company’s main focus has always been apparel, but in 2006 Under Armour introduced a line of footwear. At the end of 2010, Under Armour had revenues totaling more than $1 billion, with $800 million coming from North America (Under Armour 10K, 2010).

Nike, Adidas, and Under Armour are the three largest athletic apparel companies in the industry. While these companies were named as top competitors in lululemon’s annual report, we believe that companies like Gap and Lucy Activewear more closely resemble lululemon’s business model. Although the top three competitors each have annual sales well into the billions while lululemon has yet to reach the billion dollar mark, lululemon’s net profit margin is well above the others at 17.12 percent and well above the industry standard of 2.33 percent (Hoovers, 2011). This indicates lululemon’s healthy business strategy and efficient management within the sporting apparel industry.

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Broad Overall AnalysisProductslululemon’s product line includes jackets, hoodies, pants, and shorts for both men and women as well as bras, underwear, and tank tops for women. The store’s signature product—its pants—are offered in both regular and tall lengths. The majority of lululemon garments are pre-shrunk to ensure a quality first-time fit, meaning that arm and leg lengths are sized properly for the garment’s pattern and that zippers do not buckle after their first wash. lululemon pants are often lauded for their ability to flatter a woman’s derrière, which appeals to female fashionistas, soccer moms, professionals, and the men who buy gifts for them.

lululemon prides itself on using cutting-edge, quality fabrics that deliver maximum function and athletic fit. lululemon collaborates with leading fabric suppliers to develop trademarked fabrics. Its high impact fabric, known as “all-moisture wicking,” pulls moisture away from the body and spreads it evenly throughout the fabric so it evaporates faster and helps the fabric to dry quickly. The low-impact fabrics are made from natural fibers that lululemon suggests wearing “during warm-up and to-and-from the studio” (lululemon.com, 2011). The outerwear fabrics are designed to protect against wind and rain. By using fabric with a matte finish and making it thicker than spandex, lululemon products avoid unsightly shine. Other innovative features in lululemon’s apparel products are flat seams, tear-out labels and thumbholes on the sleeves and pockets for credit cards, audio players, and heart rate monitors.

The products are designed to offer performance, fit, and comfort while incorporating both function and style. As mentioned before, lululemon is not just for athletes, but also for customers who desire everyday casual wear.

The company recently expanded their product range to appeal to the men and youth segment. lululemon also sells fitness-related accessories including bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles.

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Broad Overall AnalysisPricelululemon’s products are priced much higher than similar workout apparel. lululemon’s prices—around $50-60 for a t-shirt and $100 for pants—cater to the upper-class consumer willing to pay premium prices for workout gear. lululemon’s core customers typically have the income that allows them to continue purchasing trendy and pricey exercise apparel despite downward trends in the economy. lululemon’s highly priced products result in high margins for the company. With significantly smaller stores and highly priced items, lululemon is able to achieve sales per square foot of $1,700 in its corporate-owned stores—more than three times as many sales per square foot than Abercrombie & Fitch and Gap, companies which have sales of $489 and $398 per square foot, respectively. All of this translates into lower costs and higher revenue for lululemon, which largely drive the company’s 53.3 percent gross margin and 18.2 percent operating margin.

Distributionlululemon has a vertical retail strategy, meaning that it manufactures what it sells. This strategy allows them to gather more feedback from customers and provides greater control over its brand.

Store DesignIn the U.S., lululemon has developed a showroom design strategy for its stores. This means that an intimate retail space with limited inventory is opened part-time in cities where the company thinks it can open a full-time store. Stores are laid out in a circular pattern, which brings customers around the store and allows them to touch, feel, and experience the products.

The store also features mannequins for each of its products to show customers how products— like pants—actually fit on a body. There are also interactive elements in the store including a message board for customers to write and comment on products, displays of healthy eating tips, local fitness studio information, biographies on its local brand ambassadors, and other community events. The showroom strategy has succeeded in driving brand awareness in new markets.

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Broad Overall AnalysisHowever, finding and securing prime real estate that fits the company’s image and needs has proved to be a challenge. For example, lululemon’s Santa Monica store is big and bright, but it doesn’t get the foot traffic it would if it was located a few blocks over on the Third Street pedestrian mall (lululemon 10k, 2010). lululemon’s stores in North America are mostly located in major cities like Los Angeles, Seattle, New York, Toronto, and Vancouver. At the end of Q1 FY08, the company only operated 37 stores in the U.S., with 15 of them located in California. Now in 2011, there are 42 showrooms and 76 stores in the U.S., a significant increase over 2008.

Franchise StoresAs of January 30, 2011, lululemon has only four franchise stores in the U.S. This channel represented 1 percent of net revenue in fiscal 2010 and 3 percent of net revenue in fiscal 2009. Opening new franchise stores is not part of the company’s near-term store growth strategy. Unless otherwise approved by lululemon, the franchisees are required to sell only lululemon branded products, which are purchased from the company at a discount to the suggested retail price.

Onlinelululemon’s current website is under renovation in order to expand their e-commerce presence. At the time of this plan preparation, only a limited number of products are offered for purchase online. lululemon’s e-commerce sales continue to grow each year as more people go online and use their smart phones to make purchases.

lululemon’s online and smart phone sales comprised 4 percent of net revenue in 2009 and 8 percent in 2010. A greater online presence means that lululemon will have a larger direct-to-consumer channel and can reach those customers not near a retail location or third-party reseller. As a result, lululemon hopes to increase brand awareness, especially internationally.

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Broad Overall AnalysisWholesale ChannelCurrently, lululemon’s merchandise is also sold at strategic third-party resellers that lululemon feels parallels their brand image. Examples of such resellers include premium yoga studios, health clubs, and fitness centers. This sector of sales made up 2 percent of net revenue in 2009 and 2010. The wholesale channel of business is not intended to be a large contributor to lululemon’s overall revenue, but exists just to build brand awareness, specifically in new markets.

Current Promotions and Marketing Strategylululemon’s current marketing plan is the same in Canada as it is in U.S. The company takes a grassroots approach, relying heavily on word-of-mouth advertising. Free yoga classes are taught once a week in some locations, and lululemon staff will sometimes teach at local yoga studios.

Each lululemon location is responsible for marketing and building a reputation in their local community, making it a very decentralized approach. lululemon’s corporate headquarters does not even have a marketing division; instead, it only has a community relations department. Nationally, the only two places lululemon advertises are in Yoga Journal and Runner’s World magazines. Because of lululemon’s unique approach to marketing through the local community, the company has seen an increase of 14 percent in sales in 2009, despite the economic downturn.

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Broad Overall AnalysisIn lululemon’s annual report for 2010, the company describes their strategy as a “distinctive community-based strategy that we believe enhances our brand and reinforces our customer loyalty. The key elements of our strategy are to:

• design and develop innovative athletic apparel that combines performance with style and incorporates real-time customer feedback;

• locate our stores in street locations, lifestyle centers and malls that position each lululemon athletica store as an integral part of its community;

• create an inviting and educational store environment that encourages product trial and repeat visits; and

• market on a grassroots level in each community, including through social media and influential fitness practitioners who embrace and create excitement around our brand.”

Community-Based Marketinglululemon’s grassroots strategy and marketing help them build brand awareness and loyal customers in the community. Through local “ambassadors,” social media, and in-store community boards, lululemon creates brand loyalty and grows its brand awareness locally.

Local ambassadors, who are individuals that are active in the athletic community, help raise community brand awareness. The in-store community boards help bring people into the stores and educate them about the different planned in-store and community activities. Each lululemon location has a community coordinator who organizes athletic events and philanthropic activities to raise brand awareness locally.

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StrategiesKeeping in line with the campaign’s objectives, the marketing strategy will seek to create customer awareness regarding the lululemon brand, develop the target customer base, and establish lasting connections with target markets.Our three main strategies are as follows:

• Increase brand awareness and image among the target demographic.• Engage current and potential customers nationally and locally.• Further develop customer loyalty.

We intend to maintain the current lululemon community-based marketing strategy and rely heavily on new and social media tactics, as well as community outreach and media relations activities. Our tactics will be implemented at a national scale; however, lululemon stores will also be divided into regions. Localized tactics within each region will be critical to the campaign’s overall success throughout the year.

PlansBulldog Marketing has developed the following marketing tactics for the “Do You lulu?” year-long campaign. Other tactics such as a press kit, press conferences, a crisis communication plan, website redesign, and branding were also considered for this campaign; however, our firm found that lululemon’s current strategies in each of these areas were already closely aligned or surpassed the overall objectives of “Do You lulu?” Plans for marketing tactics at both the national and local levels are presented below.

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Community RelationsLocal

Since lululemon focuses on building brand awareness through underground and guerrilla marketing techniques, it is critical for the company to have a community relations plan in place. Building brand awareness through activities in the local community can positively affect people’s images of the brand and grow the potential consumer base. The “Do You lulu?” campaign includes comprehensive community relations tactics that can be implemented locally at minimal cost.

Because lululemon sells fitness clothing, the campaign will focus on fitness and athletic community relations strategies. In recent years, many public schools have been forced to cut physical education programs due to budgetary constraints. All the while, childhood obesity has become a growing problem in the US. Employees of local lululemon stores will teach a yoga class to different schools in the area. Once a week, one or two employees will visit an elementary or middle school and give an instructional yoga and fitness class during the school’s normal P.E. class time. Schools will participate on a rotational basis, which will allow lululemon to reach as many schools and students in the area as possible. This tactic will create positive press by associating lululemon’s name with healthy lifestyle education. It will also increase brand awareness to mothers of the students, widening the potential customer base of the company.

lululemon will also become a sponsor of the Susan G. Komen Race for the Cure. While the Susan G. Komen Breast Cancer Foundation has national exposure, different cities throughout the country hold various walks and races during different months of the year. lululemon stores will partner with the local affiliate in their area and become an official sponsor of the event. Sliver level sponsorship packages for the local events begin at $15,000 while bronze level packages begin at $10,000.

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New and Social MediaIn order to align with lululemon’s mission to create strong customer loyalty by building a community, Bulldog Marketing’s plan includes a significant emphasis on social media tools. Presently, lululemon has a national presence on social media outlets such as Facebook, Twitter, Vimeo, Youtube, Flickr, Foursquare, and their company blog. While this is a great start, Bulldog Marketing would like to increase the level of consumer participation in Facebook and Twitter as well as explore new media outlets and streamline the social media usage at all lululemon stores.

National and Local

Social Media HandbookCurrently each lululemon store is in charge of building this online community through grassroots efforts. However, not all of the lululemon stores use social media or, if they do, they do not use all the social media tools available. To combat this problem, a social media handbook will be created and distributed to each of lululemon’s 70 U.S. stores. This handbook will have a section for each of the main social media tools like Facebook, Twitter, YouTube, blogs, Flickr, as well as new social media tools such as Foursquare, Tumblr, Instagram, SCVNGR, and QR Code implementation.

The handbook will include a quick synopsis of each social media tool as well as ways to use each in order to create community involvement and fit with the overall “Do You lulu?” campaign. (Appendix 2)

In order to ensure that the social media tools are implemented properly, a regional social media manager will oversee a section of stores and provide training and support to the store’s educators and brand ambassadors.

The following are short overviews of how each of these social media tools would be used in the national “Do You lulu?” campaign. Some of these tactics will be explained in greater detail later in the plan, and each will be expanded upon in greater detail and adapted for local implementation in the social media handbook.

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New and Social MediaFacebookCurrently lululemon has a corporate Facebook page with more than 300,000 “Likes.” Bulldog Marketing aims to increase this number by 50,000 “Likes” at a national level during our year-long campaign. Increasing the number of “Likes” is important for three reasons: brand loyalty, customer insight, and revenue growth. According to Adweek, by actively participating in Facebook, “marketers can confidently expect to improve the level of brand loyalty among their Facebook fans as well as create an engaged audience from which to glean important customer insight” (Adweek, 2011). Also, according to the blog TechCrunch (2011), the value of a Facebook “Like” is $8, meaning that by adding 50,000 to the corporate page, our campaign would add $400,000 in value.

In order to increase these “Likes,” Facebook would be used in conjunction with the special events such as National Yoga Month, the “Do You lulu?” bus, and the guerrilla marketing tactics outlined later in the plan. Each event will include a social media component, whether it be online contests or exclusive events, only available for those individuals who “Like” lululemon on Facebook; this will also be outlined later in the plan.

Facebook will also be used to contact key media influencers outlined on the influencer map. Facebook is a great way to identify and cultivate relationships with these influencers in order to create a stronger community presence.

Twitterlululemon’s Twitter page has a total of 72,000 followers, which Bulldog Marketing would increase by 100,000. This equals a total of $200,000 in added value (TechCrunch, 2011).

Twitter’s main purpose is to disseminate information quickly and precisely is short messages, or “tweets.” Twitter would be used much in the same way as Facebook, as the company will market special events and encourage participation in online contests using the hashtag #DYL2011. By creating a hashtag, participation in

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New and Social Medialululemon events will be easily identified and tied into the contests, creating a more unified campaign. The goal is to create a hashtag that becomes a trending topic on Twitter, which increases both the campaign and overall brand awareness. These contests will also be outlined later in the plan.

Like Facebook, Twitter is a great way to directly contact the key influencers outlined in the key influencer map. Twitter will be used to inform these key influencers of the special events related to the “Do You lulu?” campaign and cultivate a dialogue with them, leading to an increase in the number of quality followers.

Twitter will also be used by the national spokesperson to tweet about the lululemon products she is using or events she is attending during the year-long campaign. YouTubeRight now, lululemon’s YouTube page includes interviews with founder Chip Wilson, and some of the company’s brand ambassadors. Because YouTube is the No. 2 search engine in the U.S. behind Google (TechCrunch, 2008), Bulldog Marketing would like to expand lululemon’s presence on this tool by posting content related to the “Do You lulu?” campaign.

Behind-the-scenes preparation for the “Do You lulu?” bus tour will be posted on YouTube, as well as an ongoing video diary. This video diary will document life on the bus and showcase the events at each of the cities on the tour.

Video will also be taken at each store to showcase activities during National Yoga Month. Because the month culminates in the Guinness World Record day, preparation for this day will be documented in addition to the actual event.

lululemon’s national spokesperson will also be required to record YouTube videos showcasing how she practices the lululemon philosophy; she will also encourage people to post video replies showcasing how they answer the question, “Do You lulu?”

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New and Social MediaBlogsBlogs are a great way to increase natural search results and position lululemon as a thought-leader in its industry.

lululemon has a blog that is accessible through its main website under the “Community” tab. The blog content is mostly related to showcasing brand ambassadors and loyal lululemon consumers.

When the campaign begins, the national blog should be used much in the same way at YouTube to document the major unique events such as the bus tour and National Yoga Month, as well as to provide more tips on practicing a healthy, zen lifestyle.

At a local level, brand ambassadors will be in charge of creating blog content that reflects the lululemon lifestyle. These blog posts will range from documenting events at the local stores that relate to the “Do You lulu?” campaign to giving healthy living tips to providing original commentary on recent news articles that relate to the overall healthy, zen lifestyle.

FlickrFlickr is a great way to showcase beautiful photography or artwork and connect with consumers who are interested in this form of media.

lululemon’s current Flickr photostream consists mainly of photos of group yoga classes. For the “Do You lulu?” campaign integration, Flickr will be used to post pictures of all the special events held throughout the year, including the ones mentioned earlier. The whole yoga bus experience will be documented from start to finish in addition to the events held throughout National Yoga Month. These photos will be featured in a new photostream titled “DYL2011.” These photos will also be included in the blog posts with links to the album year-round.

Participants will be encouraged to include their own photos of the events or other artistic yoga-related photographs in this photostream or under the DYL2011 tag.

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New and Social MediaThese photos can be entered into the “Do You lulu?” contest, which will be mentioned later in this plan. FoursquareFoursquare is a geolocation tool where participants “check-in” to locations in order to earn points and badges that normally lead to rewards. If an individual checks-in enough times, he or she becomes the mayor of that location. Oftentimes the mayor receives perks, such as discounts or free merchandise, from the business.

lululemon has a national Foursquare account where participants can check-in to find events at local lululemon stores. This will be also used during the campaign. When a person checks-in to a “Do You lulu?” event—either the bus tour, flash mob, or yoga month event—tags it with the hashtag #DYL2011 and tweets it, she will be eligible to win specialty items or other prizes, available at the check-in site. TumblrTumblr is a new way to blog—it is not so much about writing posts as it is posting short quotes or pictures. Tumblr is like the Twitter of the blogging world.

A Tumblr account used specifically for the “Do You lulu?” campaign will be created and used as a way to aggregate all the information tagged with the #DYL2011 hashtag—from tweets/quotes to pictures to videos. This will be a very visual way for our target to follow the campaign and see everything at a glance.

InstagramInstagram is the newest smartphone photo-taking application. This app is great for amateur photo takers who want to take photographs and add beautiful filters to make their photos appear more artistic. The application also allows the user to share photographs in real-time and like other users’ work. The Instagram platform is great for people who tend to take pictures more often with their smartphones than a digital camera and who love the integration with other social media networks.

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New and Social MediaBrands such as Kate Spade, Brisk Iced Tea, and Red Bull have adopted Instagram as a way to brand their products through photos (Mashable, 2011). The lululemon campaign will also use Instagram as a branding technique and integrate it into the “Do You lulu?” campaign.

Users of the application will be able to hashtag their photos throughout the year with #DYL2011, which will then be showcased on Tumblr and earn them eligibility to be entered into the photo contest during September. By hashtagging the photos, those users who decide to tweet the photos will also be contributing the overall visibility of the campaign on Twitter. Instagram will also be used during other events by the brand ambassadors or store educators who want to snap pictures to showcase their store. SCVNGRDuring National Yoga Month, each store will complete a week-long scavenger hunt using the new smartphone app called SCVNGR.

SCVNGR allows individuals or stores to create a hunt in as many locations as they please with specific tasks at each location. These tasks can be anything from taking a simple photograph of the location to performing some sort of small feat, like doing the “downward-facing dog” position in the middle of a park and taking a picture as proof.

In order to participate, one must download the SCVNGR app to her smartphone and follow the clues to the different locations. Once completed, users will be entered into a drawing for a lululemon giftcard and will also receive specialty items for participating. The locations will be chosen by each store with heavy emphasis on strategic partnerships and approval by the regional social media manager.

The scavenger hunt will be publicized both on both the national and individual store’s social media outlets. Photos can also be taken during the scavenger hunt and integrated on the previously mentioned social platforms for campaign integration.

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New and Social MediaThis hunt can also be repeated during the year as a store’s required monthly event and can also be adapted for use on Foursquare.

QR CodesQR Codes, a new media technique, are small, barcode-like images that once scanned with a smartphone, bring the customer to an online site. This site can be a page within a website, a YouTube video or a blog post—anything that has a unique URL.

The main way QR codes will be used during the campaign is to integrate the national spokesperson into the campaign and convey the benefits of owning lululemon gear.

To accomplish this, QR codes will be displayed on the featured items table at the front of each store, both on the table, in the window, and on the individual clothing tags. These items will be the newest products in the lululemon line, which will rotate about two to three times during our campaign according to the seasons. Once scanned, the user will be directed to a short YouTube video featuring the national spokesperson talking about the product’s benefits, why she likes it, and how she practices the lululemon philosophy. At the end of the video, the user will be informed of the “Do You lulu?” campaign and the presence of the lululemon brand on social media sites.

During our primary research survey, the biggest reason people did not purchase lululemon gear was its high-price point. By integrating QR codes with the YouTube account, lululemon will be able to show consumers the benefits of paying a premium for a premium product and will also integrate the company’s products into the entire campaign.

QR codes can also be included in lululemon’s e-newsletters and direct mailing pieces to link back to already created and relevant content, such as the previously mentioned YouTube videos, to tie the campaign together as well.

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Media RelationsNational and Local

Forming quality relationships with the media will be an ongoing effort both the national and local levels. These relationships will be formed through both traditional public relations efforts such as press releases and new social media efforts through Facebook and Twitter.

In order to determine who lululemon should make contact with, Bulldog Marketing will create a national-level key influencer map. This map will also be created at the local/regional level by the regional social media manager and the store educators with the help of Bulldog Marketing so that each store will have a better understanding of whom to form relationships with in order to influence the most people in its community.

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National Key Influencer Map

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Digital MarketingNational

Due to our objective of increasing website traffic and online sales, a national digital marketing campaign is crucial. Bulldog Marketing wants to integrate both Google Adwords (paid search) and natural search, or search engine optimization, campaigns into the overall marketing strategy. This can be outsourced to an Internet-specific advertising agency, making it more economical for lululemon.

An Adwords campaign will be created to capitalize on keywords people search for when looking to buy workout apparel in order to give lululemon a greater online presence and increase conversions on its website.

The natural search campaign will be created to drive lululemon’s website higher on search engines rankings for keywords also pertaining to yoga, workout gear, and healthy lifestyles in general. This will also strengthen the brand’s online presence and drive traffic to its website.

Groupon will also be used in the campaign as a way to drive traffic lululemon’s e-commerce site and build national brand awareness. Bulldog Marketing plans to list a Groupon at a national level, redeemable either on the lululemon website or at the customer’s nearest store location. Our approach will be to offer Groupon customers a 50 percent discount on lululemon apparel—pay $25 and receive $50 worth of merchandise. Since most of lululemon’s merchandise is greater than $50, the average customer will spend more at the store. We plan to run the Groupon in January, since that is when most people have made resolutions to lead a healthier lifestyle in the coming year. Our hope is that while lululemon is offering its products at a discount, the difference in revenue will be made up in additional sales on top of the discount and increased brand awareness.

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Special EventsNational

Because this campaign will not focus on traditional media like print and billboards, staging special events will be critical in fulfilling our objectives. The largest event planned at the national level will be a celebration of National Yoga Month, which is during the month of September. Promotion for all of these events will come through social media, e-newsletters, and direct mailing campaigns.

To kick off the festivities, lululemon will launch a month-long social media contest. Customers will be encouraged to answer the question “Do You lulu?” by snapping a picture of themselves doing yoga in an unusual place or in their lululemon gear. Participants will then upload the picture to Facebook, Flickr, Twitter, or Instagram using the hashtag #DYL2011. The lululemon national spokesperson and select brand ambassadors will choose the best pictures, determined by the presence of lululemon apparel, creativity, and uniqueness. The top 50 photos will be recognized and shared by the company in special online photo albums, where lululemon customers can then vote on their favorite photos. The top three finishers will receive special prize packages that include a lululemon gift card and select merchandise.

Special in-store events will also occur each week during National Yoga Month. An example of one of these week-long in-store events is a social media scavenger hunt. lululemon customers can participate in the scavenger hunt throughout the designated week by signing up at their local store. To complete the contest, participants must solve riddles that will lead them to certain locations within their cities (specifically to businesses that are strategic partners with lululemon). Once at the location, the participant will check-in via SCVNGR, take a photo of herself or complete an activity at the location, and move on to the next place before returning to lululemon. Every participant will receive specialty items and the names of participants who complete the scavenger hunt during the week will be entered into a drawing to win a lululemon gift card.

The month of activities will culminate in an attempt to break the Guinness World

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Special EventsRecord for the most people doing yoga at one time. To undertake this, lululemon will work closely with Guinness to plan and monitor the official record attempt. On Saturday, Sept. 24, lululemon stores across the country will begin the attempt at 4 p.m. eastern time. Yoga instructors in each store will lead customers in a 20-minute yoga routine, with hopes of breaking the current world record of 29,973 people.

Local

Special events play a large role in the campaign’s local focus. Events at the local level will be both regional and store-specific.

Regional events will include a regional yoga conference. Every U.S. region will organize a conference between March-May 2012; the location will be at an area spa or resort center. Each retreat will last for three days and will feature speakers, yoga gurus, yoga exercises, general mediation, and other relaxation activities. Area lululemon stores will partner with yoga studios and health food retailers to organize the conference. Customers can sign up to attend the weekend getaway for a minimal fee, while local brand ambassadors can attend for free.

Stores will also be required to participant in at least one special in-store event per month; however, managers may plan more than one event per month if they so choose and if their store budget allows. No event should be repeated at a particular store location more than twice during the year. Managers can create their own in-store events, but they must be approved by the appropriate marketing executives before they are organized. Examples of these in-store events include the following:

• Partnering with a local health food store to offer a healthy, fresh in-store breakfast to customers before a morning run or free yoga class

• Organizing a picnic in the park event featuring an outdoor yoga class and light refreshments

• In-store fashion shows, where employees can model and display the latest lululemon apparel

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Trade ShowsNational

Staying current with the developing technologies, changing market preferences, and capturing new leads are musts to survive in this industry. This portion of the campaign focuses on forming strategic partnerships with gyms, fitness centers, and workout studios that stay in line with lululemon’s mission and goals. Because this is more of an industry-wide experience, lululemon will be participating in a trade show--the National Fitness Trade Show.

The annual National Fitness Trade Show is held every year in Reno, Nevada in mid-August. Here, lululemon can expose itself to top fitness products and equipment from leading manufacturers ans gain insight into what competitors and consumers are focusing on.

lululemon will purchase the attendee list for the show. After selecting the top 50 attendees that directly align with lululemon’s overall target and goals, lululemon will then develop a pre tradeshow promotion plan. This pre-show promo, promoting the question, “Do You lulu?,” will be tailored to each of the attendees and provide an extra incentive for them to visit lululemon’s booth at the show. This pre-promotion will be delivered to the selected 50 attendees two to four weeks prior to the event. During the event, lululemon will develop a space that will not only grab the visitor’s attention, but will also clearly communicate the essence of lululemon in an effective and efficient way.

Attendees will also be encouraged to leave their contact information after meeting briefly with on-site lululemon educators. At the show, key lululemon employees will be tasked with exploring and researching the show as a whole. Their main purposes will be to take note of competitors’ developments and visitors’ behaviors and preferences, as well as gain ideas from any interesting or innovative products that are showcased. Post event, lululemon will also develop a post-show strategy. This would include connecting with any of the selected 50 who did not visit lululemon at the show, and driving home the connections lululemon was able to gather.

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Direct MailingLocal

This marketing tactic will be used to directly increase the participation and awareness of lululemon’s National Yoga Day and Guinness World Record Day events at a local level.

The mailing list is the most important element in any direct mail package. lululemon will gather its contacts from addresses obtained in-store--e-mail marketing for in-store exercise classes, social media connections etc. This list of lululemon’s customers or clients is one of lululemon’s greatest assets and will be treated as such. By targeting only contacts who have previously connected with lululemon before, the direct mail piece will increase the success of the direct mail program while minimizing the risk of failure. These contacts already have a relationship with lululemon, and the goal will be to strengthen this relationship by making them an offer and stimulate their interest with a call to action.

The “offer” of the direct mail piece is the next most important aspect of this package. lululemon’s strategy is to deliver a copy that is quick, to the point, and easy to understand. The bold typeface combined with lululemon’s iconic red will help to grab the receiver’s attention and make them hesitate before making a decision about the mail piece. lululemon’s strategy is to hone in on the element that their target market values most--image. The offer will include the question, “Do You lulu?,” in which the participant will receive local, national and even global recognition for her participation. This directly feeds the target consumer’s need to be viewed as an athletically hip and trendy individual.

Sample Direct Mail Piece (Appendix 3)The sample direct mail piece is in promotion of lululemon’s Guinness World Record Day. The front of the piece will include the recipient’s address, what lululemon wants the recipient to do, and a QR code that will direct the reader to a specially made, mobile-friendly landing site that will give more detailed information about the event, direct the recipient to their nearest lululemon store, and keep track of which

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Direct Mailingrecipients utilized the QR code for lululemon’s references. The lululemon address and contact information on the front side will also be tailored to the recipient’s nearest lululemon store location.

The back of the direct mail piece is an interactive message. The background for this image consists of the lululemon mantra that is familiar to all of its customers. The stylized starburst in the middle of the piece will be clear and simple in contrast to the busy background. It will feature an attention-grabbing phrase with the questions “Do You lulu?” The starburst opens to unveil a detailed message of what lululemon is trying to promote, how it will be achieved, and what the participant will receive for her participation. In order to appeal to our target market’s direct need of projecting a hip, trendy, and fit image, lululemon will feed the target’s desires to show their peers their involvement with world-changing and trend-setting activities. lululemon will also provide an exclusive gift that will be available only to event participants. This gift will be easily portable, such as a customized keychain, to further help lululemon’s target market project and cast an ideal image.

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Specialty ItemsNational and Local

Since lululemon will be involved in community events, yoga conferences, and the National Fitness trade show, specialty items will be a tactic of our campaign. Because lululemon stores sell smaller products like water bottles, the specialty items the campaign uses should reflect lululemon’s culture and relate that culture to consumers. Items would all be branded and could include elastic headbands, tote bags, notebooks for daily affirmations, stopwatches, and heart monitors. We would also make key chains that sport the lululemon brand and phrases from the company’s manifesto like “Friends are more important that money,” “Sweat once a day,” and “Breathe deeply.”

These specialty items will only be given to those individuals that participate in the lululemon “Do You lulu?” campaign special events—whether it be doing yoga with the yoga bus, participating in the city-wide scavenger hunt, or visiting the trade show booth. We want to ensure that each person who receives the item will be a potential customer and an asset to the overall lululemon brand image.

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Public RelationsNational

Lululemon would benefit from a public relations makeover. This large endeavor will need to be done on a national level with the aid of a professional public relations firm to develop a detailed year-long campaign. The goal of the public relations

tactic is to align closely with lululemon’s key influencers in order to increase lululemon’s brand awareness, customer base, and long-lasting connections nationally.

Following the key influencer map that Bulldog Marketing has developed, lululemon will research and hire a public relations firm to develop strategies that stay true to lululemon’s goals and values. Some ideas may include sending clothes to key influencers like Michelle Obama as well as social media key influencers like bloggers in order to get featured in publications, in physical and digital form, about lululemon’s other marketing tactics, events, products, and stores. The public relations firm

will also be tasked with sending out traditional press releases to the identified key influencers about the various events lululemon will have throughout the year--like the Guinness World Record day (Appendix 4).

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Guerrilla MarketingNational

lululemon will hit the road with guerrilla marketing. A custom, specially outfitted lululemon bus will be sent across the country on a nationwide tour. The bus will spend the entire year traveling the country, making stops at a majority of U.S. cities with lululemon stores. Aside from the bus driver, a yoga instructors and two brand ambassadors will be aboard the “Do You lulu?” bus. When the bus arrives at its destination—and at various pit stops during the road trip—the instructors will lead impromptu yoga classes, either at a location close to where the bus is parked or on the roof of the vehicle, as it will also be equipped to support a class. For example, the bus could park outside of a grocery store, local park, or shopping mall and lead a yoga class on its roof. The yoga bus may or may not actually visit a lululemon store when it visits a city, but when interested individuals visit the bus and participate in a yoga class, they will be given branded specialty items like water bottles or headbands.

Local

Local stores will engage in guerrilla marketing tactics, specifically in organizing yoga flash mobs within their cities. For example, Houston area lululemon stores will collaborate to come up a date, time, and location of a flash mob; perhaps organizers decide that at 4 p.m. on May 5, 2012 at Hermann Park, as many people as possible will gather and hold the downward-facing dog pose for five minutes before dispersing. Details about the event will be spread in true flash mob fashion, via social media and word-of-mouth. lululemon employees and brand ambassadors will participate in these flash mobs wearing their lululemon apparel, but other than this subtle nod to the company, no other branding of the event will occur. Flash mobs should be organized no more than four times per year.

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National SpokespersonNational

lululemon will employ Alison Sweeney as its national spokeswoman. Sweeney is the 34-year-old star of the soap opera Days of Our Lives and the host of the television show The Biggest Loser. She is also a young mother and relateable to the Mother Zen target. Sweeney fits the profile of a current lululemon customer and will increase the brand’s awareness on a national level. Currently, Sweeney has a healthy eating book titled The Mommy Diet, as well as a website where she blogs about topics related to living a healthy lifestyle, both of which are geared toward our target market.

Sweeney is already a known fan of the lululemon brand—she tweets about the products and even wears them on The Biggest Loser. Because of this, we feel that she should be contracted to represent the brand. As lululemon’s national spokesperson, Sweeney will be required to attend national lululemon events and contribute to the social media efforts. This will include appearing at certain tour stops of the lululemon bus and high-profile National Yoga Month events (like the Guinness World Record Day) as well as contributing to social media through taping YouTube videos, blogging, and tweeting. She will also wear lululemon apparel during her hosting duties on The Biggest Loser.

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National Budget

National Budget Breakdown

Social Media $520,000

Social Media Managers Salaries (5 Regions) $250,000

Handbook Creation and Training $250,000

QR Code/ Content Creation and Distribution $20,000

Media Relations $15,000

Influencer Map Creation and Training (National and Regional) $15,000

Digital Marketing $50,000

Adwords/Natural Search $50,000

Groupon $0

Special Events $2,000,000

National Yoga Month $2,000,000

Trade Shows $30,000

National Fitness Show $30,000

Specialty Items $600,000

Public Relations $175,000

Sent Apparel Costs $25,000

Year-Long Campaign $150,000

Guerilla Marketing

Yoga Bus $500,000

Outfit the Bus $200,000

Diesel Costs $6,000

Driver Salary $28,000

Yoga Instructor Salary $32,000

Brand Ambassadors Salary (2 people) $50,000

Food and Lodging Expenses $50,000

Other (specialty items, insurance, etc.) $134,000

National Spokesperson $5,000,000

Individual Store Allocation $7,000,000

70 Stores, $100,000 Each for Events

Contingency $1,110,000

TOTAL: $17,000,000

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Local Budget

Local Budget Breakdown

Community Relations $15,000

PE Class Instruction $0

Komen Sponsorship $15,000

In-Store Events $48,000

Twelve Events/Year x $4000/Event $48,000

Special Events $10,000

Regional Yoga Conferences (Each Store's Contribution) $10,000

Direct Mail $9,500

Direct Mail Pieces $3,000

Monthly Newsletters $6,500

Contingency $17,500

TOTAL: $100,000

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SummaryBulldog Marketing’s goal is to increase lululemon’s brand awareness in the U.S. market while staying true to lululemon’s unique community-based marketing strategy, company culture, and individual store identities.

lululemon’s strength lies in the fact that it produces high-quality products with innovative features and styles, has a well-trained staff for each carefully selected premium store location, and has a large amount of local control for retail and marketing strategies. However, this individual approach to marketing has resulted in weak brand recognition in the U.S. and a slower growth strategy. Having selective retail locations may give lululemon the position as a premium brand with premium pricing, but it also reduces the number and accessibility of the few retail outlets. Also, because lululemon’s marketing strategy is heavily focused on work-of-mouth and grassroots marketing styles, it must be very conscious of what its consumers want and need, as well as what those consumers are saying about them.

lululemon has a narrow focused customer type. The company’s target market consists of health and image conscious 18-34 year-old women. Bulldog Marketing has identified two primary groups within this market: the “Zen Y”er and the Mother Zen. Both groups of women are trend conscious and pride themselves on projecting an image of being young, trendy, and healthy.

Bulldog Marketing plans to take all that is unique to lululemon and expose it by asking the simple question, “Do You lulu?” Through our national and local marketing plan, Bulldog Marketing strives to elevate the lululemon brand in the U.S. while staying true to lululemon’s historical marketing effort. This campaign honors lululemon’s strategy of giving more power and control to the stores on a local level while maintaining a consistent brand image nationally. This detailed strategy includes marketing elements that are developed specifically for all lululemon stores both collectively and individually. The campaign will rely heavily on social media, special events, and guerrilla marketing tactics, all of which pose the question: Do You lulu?

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“Lululemon.” Wikinvest. Web. <http://www.wikinvest.com/stock/Lululemon_(LULU)>.

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