lululemon athletica

Prepared for: Zeline Bates

Prepared by: Megan Koval

May 5, 2010

Intro to Media 54-2900 Section 04 megan.koval@loop.colum.edu http://megankoval.com

Media Campaign

Media Plan

Background to Hypothetical Planlululemon athletica was the birth of the underground yoga clothing movement in 1998. Chip

Wilson, founder and CEO of lululemon athletica set the companies ideology of comfortable,

breathable clothing for athletic excellence. It is a specialty brand with high prices for their apparel

and merchandise because of the high quality and durability within their materials. In November

2000, the first store opened in Vancouver BC. This ideology carries through upon the companies

interaction with community and lifestyles. The employees are educators in various athletic crafts

ranging from yoga to running. These educators/employees personalize ones experience at the

store ultimately creating a strong brand recognition and loyalty which is rooted in brand awareness.

However, when asking teenage and college females about lululemon, few knew what “lululemon”

meant or was. Therefore, this proposal will address various types of media campaigns which will successfully increase brand awareness and increase sales into a whole separate target market.

Situation Analysis• Marketing Objectives

1. Increase brand awareness among the target audience by 30% in one year

• Acquaint target market about lululemon's beneficial brand features and advantages among competitor products leading to a 20 percent increase in sales in one year.

• Introduce lululemon brand extension Rootimentary which will increase sales 10 percent in the next year. 15 percent proceeds go towards Nature Conservancy.

• Competitive Overview

1. Top line Industry Information supplied by http://mriplus.com

• Projected count in 2008 who purchase athletic/workout wear in the last 12 months $150+ is 223672

lululemon Media Proposal 1

Media Campaign

• The highest index among women who purchase athletic wear are ages 25-54 at 141 vs ages 18-34 at 86. Women ages 25-54 are 41% more likely than the general population to purchase athletic apparel $150+

• Among the highest index of women ages 25-54, 1.7% of this population buy athletic apparel $150+ relative to everyone in the USA and 40% of the 1.7% buy athletic apparel.

•

2. lululemon’s key competitors

• Information supplied by www.dailyfinance.com

Company

Name

Last Change % Change Volume

lululemon 38.55 -3 -7.22 2.36 M

Adidas 27.87 -1.7892 -6.03 12.947 M

Nike 77.35 -0.42 -0.54 3.63 M

Under Armour 33.87 -0.67 -1.94 908.217 M

3. Overview of product’s industry

• Size: 200 stores worldwide

lululemon Media Proposal 2

Media Campaign

• 40 in Canada, 36 in USA, 4 in Japan, 2 in Australia

• Advertising Spending

• “2007 the company spent just $6,034 on measured media (TV, radio, magazines, newspapers and outdoor) according to The Nielsen Company. Throughout all of 2006 it spent only $46,128.” (www.marketingmag.ca) Published in Marketing Magazine April 2008

• Target Audience

1. Demographics

• The goal of Rootimentary brand extension is to reach the most appropriate subset of the population who already show an interest in preserving environmental movements. Younger generations of middle/upper class women who are encouraging to participate in this popular “live green” lifestyle are willing to pay a disposable amount on athletic apparel for a good cause. As the target market for lululemon is currently business women and middle aged women with a disposable income, a brand extension with a trendy and current cause will increase popularity among teenage and young female adults ages 16-25 with a disposable income.

2. Psychographics

• Usage Styles

• Running, Pilates, Yoga, Tennis

• Purchase Motives

• Trendy, stylish, comfortable, iconic logo, innovative

• Lifestyle

• Disposable income, young mother’s, suburbian's, people who are dedicated to looking good while working out.

"You've got a ton of soccer moms out there wearing cool Lululemon [clothing] to hop in their cars to drive the kids around," says Kaileen Millard-Ruff, director, fashion with the NPD Group in Toronto. "That gives them a whole other secondary market, and the U.S. is infamous for having consumer disposable dollars for trendy luxury labels. So I would think that Lululemon would fit right in." (marketingmag.ca) Published in Marketing Magazine April 2008

lululemon Media Proposal 3

Media Campaign

Media Objectiveslululemon is a premium brand which offers a unique consumer experience. By avoiding traditional

marketing, lululemon makes their brand a lifestyle to the target market resulting in a loyal customer

base. Lululemon employees are educators which overall personalize ones experience at a store. It

is important to keep this unique consumer experience in mind during a brand extension in order for

it to succeed as a continual specialty item.

1. Increase brand awareness extension.

2. Concentrate advertising in the months of March-April. Non-traditional advertising all throughout campaign.

3. Increase national awareness.

Media StrategiesFrom collecting the media strategies, the most important and effective use of medium for

advertising efficiency are ones that keep consumer loyalty. After analyzing various media

techniques, it is important to create a large frequency of exposure and keep competitive efforts in mind of other companies. Below are the detailed media mediums for the campaign

Primary Objective: Reaching target audience women 16-25

1. Select affordable vehicles that will generate more reach than other media forms

2. Middle/upper class women 16-25 must be reached, media selection should be based on reaching this group effectively and efficiently.

• Commuters (trains, buses)

• Outdoor advertising. Completely take over the buses with vines and roots and beautiful nature with head lines “be in it” and “grounded”

• Reality TV product placement

• Famous reality tv stars such as the playboy bunnies, the Kardashian sisters, and sports stars are viewed wearing the lululemon “Rootimentary” apparel as they relax with friends, workout, or do their daily activities. The product placement will not only show them wearing the apparel, but the celebrities will have various conversations talking about the new line.

1. They will come across as new and excited conscientious environmentalists.

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Media Campaign

2. They will discuss the expansion of “flight” fabric and how This fabric feels like butter on the skin which is best for outside exercise due to its water and wind resistant qualities. Part of Rootimentary’s proceeds go towards Nature Conservancy foundation and lululemon’s strong belief in helping the community and comfort not only in our clothes but in nature as well.

• Ellen DeGeneres promotional giveaways

• Ellen DeGeneres is notorious for not only her product placement, but her giveaways as well. She will give everyone in the audience something new in the Rootimentary line and discuss the following:

1. Part of Rootimentary’s proceeds go towards Nature Conservancy foundation

2. Lululemon’s strong belief in helping community and spreading comfort.

• TV stars seen outside with Rootimentary

• Primetime, Daytime TV 30 second commercial featuring young women enjoying the brand (commercial presented during proposal)

• Elle and Cosmopolitan magazine because these reach our demographic overall

• Facebook and Twitter which are two large social networking sites which are used commonly among the target market.

3. Realistic and actionable objective

• Reach at least 80% of the potential market within the first month of advertising, ensuring that the average consumer will be exposed to a minimum of four advertising messages.

SeasonalityThe Rootimentary advertising campaign would begin at the beginning of spring in March when

consumers are more prone to buy warm clothing. They are more apt to buying during this time

because warm weather and sun shine stimulates buying habits as customers are influenced to

start running or working out outside with the newest, most hip apparel. Advertising to the target

market while they are vulnerable and susceptible to buying is the most effective way to introduce a

new line for lululemon. Also, many customers travel and see spring as a fresh start as it is referred

to as “spring cleaning”. With this new line, the target market will be encouraged to do their spring

cleaning by starting with a clean slate and promoting a good cause while looking good.

lululemon Media Proposal 5

Media Campaign

Geography• This is a national campaign which will result in heavy advertising in the top 10 cities of USA as

well as the top healthiest cities nation wide. The campaign will take place in the healthiest cities

because they are at a higher workout rate and are more likely to purchase environmentally

conscious, athletic apparel.

1. Top 10 Healthiest: San Jose, Washington, San Francisco, Seattle, Salt Lake City, Oakland,

Sacramento, Orange County, Denver, Austin

2. Top 3 cities population rate: Chicago, New York, Los Angeles

Media Mix• Media Vehicles

• Primetime, Daytime TV 30 second commercial featuring young women enjoying the brand (commercial presented during proposal) MTV, VH1, Bravo,

• Elle and Cosmopolitan magazine because these reach our demographic overall

• Internet: Facebook and Twitter which are two large social networking sites which are used commonly among the target market. This campaign results in synergism due to Facebook and twitter working with print ads and the commercial alongside the website.

• Non-traditional advertising: Product placement, promotional advertising, public transit, celebrity endorsement

• There will be a different amount of spending depending upon the region. The regions with a

higher demographic of middle/upper class young women will be targeted more. By choosing

towns that are the healthiest or largest works best with “rootimentary’s” concept and overall campaign.

Financial Statement• National $10 million

lululemon Media Proposal 6

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TV MOST IMPORTANT PART OF MY CAMPAIGN $7 million 25% during the day = $1.75 million 250x700 = 138 TRPs 50% prime time = $3.5 million it costs 25,300 a point/3,500,000 = 138 TRPs 25% late night = $1.75 million 20,000 = 88 TRPsTOTAL: 476/100 points per week = 4.76 weeks of televisionMagazines $1.1 million Monthly: Elle magazine $100,000 $100,000 x 5ti = $500,000 Monthly: Cosmopolitan $222,000 purchase 3 times. $222,000 x 3ti = rate of $666,000

Internet $1 million Cost per thousand = $10 a thousand Twitter $500,000/10 = 50,000 impressions Facebook $500,000/10 = 50,000 impressions

OUT OF HOME OOH: $1 millionWrapped Train Chicago: $30,589 (1 pair) Red line for lulu colorWrapped Train Chicago: $30,589 Brown line natureWrapped Train Chicago: $30,589 Green line for nature conservancy focus “go green”Wrapped train NYC: $30,589 x .3 for new logo “rootimentary” = $39,765.7Wrapped train San Francisco: $30,589 x .3 = $39,765King Size Bus Posters: $264,706 (500 units)King Size Bus Posters NYC: $264,706 x .3 = $344,117.8King Size Bus Posters Portland: $364,706 x .3 = $344,117.8Branded Train: $42,353 (120 units)Bus shelters: $35,000Taxi Tops: NYC $120,000 x .3 = $156,000

Flow Chart(attached)

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Power Point

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