Louisa Sonosky | N00461792Rachel Schmidt | N00469892

Olivia Fish | N01123701Julianna Sitrit Leibovich | N01139188

Prepared by: Creative Vinyl

IMC Final Report

April 6, 2016AMM 5013: Integrated Marketing Communications

Prepared for: Sheila Moore

Table of Contents BrandReview.........................................................................................................................2

Background/Overview..........................................................................................................3

IMCObjectives.......................................................................................................................5CreativeObjectives...........................................................................................................................5MediaObjectives..............................................................................................................................5

CreativeStrategy,AppealandTacticsRecommendations.......................................................9TheBigIdea......................................................................................................................................9CreativeTheme...............................................................................................................................10Tone&Style...................................................................................................................................10AppealTechniques..........................................................................................................................11KeyMessage...................................................................................................................................11CopyPlatform,CreativeTacticsandRationale................................................................................12CreativeApproach..........................................................................................................................13

MediaRecommendations......................................................................................................15MediaHabitsofTarget....................................................................................................................15MediaStrategy...............................................................................................................................16MediaMix......................................................................................................................................17

MediaSelectionRationale.....................................................................................................20

CampaignScheduling&BlockingChart..................................................................................22

Budget..................................................................................................................................22BudgetBreakdown.........................................................................................................................23

GraphicTreatment................................................................................................................25

Conclusion.............................................................................................................................27WhyisthisbestforLululemon?......................................................................................................27RecommendationsfortheFuture...................................................................................................27

AppendixA............................................................................................................................27

AppendixB.......................................................................................................................31-32

AppendixC............................................................................................................................33

Resources..............................................................................................................................34

Creative Vinyl is taking on a new client, Lululemon Athletica. The overall goal of Creative Vinyl is to create a six-month integrated marketing communications plan with communication objectives, strategies and details on budgeting within the Canadian market. Lululemon Athletica was founded in 1998 in Vancouver, Canada by Chip Wilson. The company is known for its yoga-inspired athletic wear1. Eighteen years later, Lululemon has over 350 stores around the globe.

Brand Review Product Description / Key Features & Benefits Building a well recognized and reputable brand is essential in developing a successful marketing strategy. Lululemon has grasped this concept as they continue to create innovative sports apparel using top quality fabrics that are sweat resistant, durable, functional and fashion forward. Product quality is the foundation of Lululemon, emphasizing on three main areas; fabric, performance and craftsmanship2. With a variety of styles, Lululemon has created unique athletic apparel for yoga, running, dancing, and most other “sweaty pursuits”3. The company sells pants, tops, shorts, and jackets, as well as accessories such as bags, socks, water bottles, and yoga mats. Lululemon is not limited solely to athletic wear, but has combined workout apparel with everyday fashion, creating a powerful trend towards modern day athletic style4. Brand Image

Lululemon positions themselves as a community based company, focused on building and maintaining brand loyalty. The company has built an incredibly strong customer loyalty base through offering events such as free yoga classes and running clubs5. Focusing on community and allowing customers to participate and engage in such activities aligns with the brand's mission of promoting health and fitness6. This provides the customer with an experience, allowing them to connect with the brand on a more personal and intimate level. With brand ambassadors at each location, Lululemon represents its company through driven athletes passionate about their lifestyle and local communities7. They are committed to bringing knowledge and experience to the brand, inspiring both locally and globally. Overall, Lululemon is a lifestyle brand, as individuals see themselves leading a healthy lifestyle when shopping and wearing Lululemon’s clothing.

1 Lululemon Athletica. (2015). Who is lulu athletica. Lululemon Athletica. Retrieved on 13 March 2016. 2Ibid3Supra4Tom Hutchinson. (31 January 2015). The World’s Hottest Retail Stock Has Room to Run. Nasdaq. Retrieved on 13 March 2016. 5Schlossberg, Mallory. (30 July 2015). “Lululemon’s secrets for beating all the competition”. Business Insider. Retrieved on 14 March 20166Komvopoulos, Joanna. (22 February 2013). Lululemon Brand Athletic Brand Audit. LinkedIn Slideshare. Retrieved on 16 March 20167Lululemon Athletica. (2015). Who is lulu athletica. Lululemon Athletica. Retrieved on 13 March 2016

Place in the Industry / Unique Selling Point Lululemon sets themselves as a top competitor within the athletic apparel industry. Since its inception, Lululemon has continued to produce high quality garments that not only satisfy the customer based on the physicality of the product, but engage the customer in a way that allows them to build a relationship with the brand. However, in recent years’ new competitors have entered the market offering high quality products as well, but for a more reasonable cost. This has posed some issues for Lululemon as they no longer have their foundation of high quality products to use as a competitive advantage. Although this may affect their position in the marketplace, they still identify and differentiate themselves not only on quality, but on luxury and premium apparel that provides individuals with a sense of style and purpose8. This differentiation is essentially what they consider to be their Unique Selling Point (USP). They emphasize their brand not merely as an athletic wear company, but as a means to live a healthy, active and stylish lifestyle. Background / Overview In recent years, Lululemon Athletica's brand image has been tarnished. In 2013, the former CEO of the company, Chip Wilson, made controversial remarks suggesting that some women were too large to wear the brand’s pants.9 As well, in the same year, the company announced that they were recalling some of their signature black yoga pants because they were too sheer. The overall coincidence between the two situations has left a bad taste in many consumer’s mouths. Lululemon is no longer perceived in a positive light as previous years. Issue Faced by Lululemon Lululemon is facing increased competition by many brands that are trying to get into the athleisure market. The company prides themselves on making high quality clothing at high-end pricing. Companies such as Nike, Under Armour, Gap Inc., and Victoria's Secret are all making it difficult for Lululemon to stay above the competition. In 2012/2013 Lululemon was worth more than its competitors like Under Armour but now the roles have reversed and Under Armour, for example, is worth much more than Lululemon.10 These companies all offer similar products at lower price and/or competitive prices.

The main objectives for Lululemon Athletica is to clean up their brand image and bring back their core target market. The company distanced themselves from the former CEO in 2014, however, they need to do more within the community to reestablish their brand image. The company also needs to promote themselves of a more luxury brand among the competition, and focus on their key target market which is the yoga community.

8Komvopoulos, Joanna. (22 February 2013). Lululemon Brand Athletic Brand Audit. LinkedIn Slideshare. Retrieved on 16 March 20169Shaw, Hollie. (10 December 2013). “Lululemon founder Chip Wilson’s 5 most controversial quotes”. Retrieved on 14 March 201610Marina Strauss. (6 October 2015). “Lululemon founder takes responsibility for controversial remarks”. The Globe and Mail. Retrieved 14 March 2016.

Competitor Analysis There are many companies that have entered the sports apparel market, which could cause Lululemon to lose its edge. Lululemon USP has become eroded from their CEO scandal to the issues with the quality of their athletic tights. Nike has also recently upped their women’s workout line and is the global leader in sports apparel sales.11 Gap’s athletic apparel is sold at a more affordable price than Lululemon but is still high quality. While Under Armour has only recently come into the women’s sports apparel market, they have a strong brand power and are growing quickly.12 Current Advertisements and Promotions Lululemon’s advertising and marketing is different than its competitors. The company focuses on a community-based marketing approach in order to increase brand awareness and customer loyalty. They use marketing strategy that includes social media, local ambassadors and hosting community events in order to reinforce their premium brand image.13 Currently Lululemon does not have digital, television, or print ads, but uses mainly word of mouth and in store advertising in order to market towards their audience. Audience Fragmentation While Lululemon sells different types of athletic wear for women and men, their main focus is primarily yoga. They have apparel like fitness tops and pants, but also have many accessories like yoga bags and mats. Their original goal when opening the first store in 1998, was to provide a community based hub where they could organize local event, and increase customer engagement. 14 They had yoga instructors come teach various classes, and really wanted to target people who are health conscious. While Lululemon today has become more mainstream and is worn by the average person, the company still tries to target the active person seeking a healthy lifestyle.15 Consumer Behavior Analysis Lululemon’s primary target customer is a sophisticated and educated woman. She understands the importance of an active, healthy lifestyle. The target market is tasked often with dual responsibilities of both a career and family and is often challenged to balance her work, life, and

11 Soni, Phalguni. (8 June 2015). Nike Activewear Peers Eye an Expanded Set of Opportunities. Market Realist. Retrieved 14 March 201612 Adrian Campos. (8 October 2013). How Selling Yoga Pants Became a Great Business. The Motley Fool. Retrieved on 15 March 2016. 13Lululemon Athletica. (27 March 2014). Annual Report 2014. Edgar online. Retrieved on 12 March 2016.14Phalguni Soni. (15 December 2014). Lululemon Attempts to Reinvigorate Its Interrupted Growth Model. Market Realist. Retrieved on 15 March 2016. 15Phalguni Soni. (14 December 2014). Why Lululemon’s Distribution Channels are a Competitive Advantage. Market Realist. Retrieved 15 March 2016.

health. This type of woman uses exercise to achieve physical fitness but also more importantly inner peace.16 The overall consumer behavior as stated by Lululemon will assist in influencing the purchase decision. It is known that women who shop at Lululemon are mothers, young women, who lead active lifestyles. In order to influence purchasing behaviors and increase overall brand perception, the target market needs to be persuaded by the One for One campaign. Marketing Objectives

1. For the upcoming year, the objectives are: a. Clean up brand image b. Acquire new customers c. Increase brand awareness

2. To accomplish these objectives: a. Lululemon will do more within the community to clean up brand image. b. Lululemon will have more community-based activities to increase customer

loyalty. c. Will promote the benefits of their product over competitors.

IMC Objectives Creative Objectives

1. Communicate Lululemon’s products - t shirts, pants, shorts - and how they help fuel a healthy lifestyle.

2. Demonstrate the community involvement of Lululemon in the local community schools and support young female adults living a healthy and active lifestyle.

Media Objectives Who: The Target Audience Primary target audience is Females between the ages of 35-49 years old residing in key Urban areas in Canada. The secondary target is Females between the ages of 18-24 years old residing in key Urban areas within Canada.

Age Vertical Percentage (%) Index 18-24 16.6 150 35-49 29.5 124

16Lululemon Athletica. (27 March 2014). Annual Report 2014. Edgar online. Retrieved on 12 March 2016.

Sex Vertical Percentage (%) Index Female 79.4 157

Education Level Vertical Percentage (%) Index University/Other Non-University Certified

20.9 98

Bachelor’s Degree 20.3 132

Vocation Vertical Percentage (%) Index Technical/Sales/Teaching/Other White Collar Jobs

19.0 180

Household Income Vertical Percentage (%) Index

$100,000+ 58.6 177 What: The Overall Message The message to be communicated will dial in on how customer’s purchase in store helps young adults in the local community and that Lululemon products can help change one’s life in a positive manner. The message communicated to consumers will focus on how Lululemon will give a pair of pants or shirt (consumer picks) to high school children in an undeveloped area when they purchase a pair of pants or specific shirt - the notion of One to One. How their purchase extends far beyond the store and the customers personal satisfaction. Where: Key Markets The campaign will occur throughout Lululemon stores in Canada, with specific emphasis on the Ontario, British Columbia, and Prairie regions. Within these regions, Lululemon stores within key Urban and Metropolitan areas will be focused on to execute the campaign. The following Urban/Metropolitan areas will be used as they represent the areas with the greatest majority of Lululemon shoppers within Canada. 17.9% of women’s clothing that was personally bought within the past 12 months at Lululemon was in Toronto and 10.2% was bought in Vancouver. While Calgary and Edmonton have a smaller percentage of Women who personally bought clothing at Lululemon within the past 12 months, they do have higher indices. Meaning consumers in Calgary are 113% more highly to purchase Women’s clothing at Lululemon then other stores and consumers in Edmonton are 59% more likely to personally buy Women’s clothing at Lululemon within the past 12 months.

Table 1: Women’s Clothing Where Personally Bought/Past 12 Months, By Region

Region Vertical Percentage (%) Index Ontario 38.9 101 Prairies 27.4 152 British Columbia 19.9 150 Source: Kantar Media. (2015). Women’s Clothing Where Personally Bought/Past 12 Months Lululemon. Retrieved from PMB. Table 2: Women’s Clothing Where Personally Bought/Past 12 Months, By City

City Vertical Percentage (%) Index Toronto 17.9 105 Vancouver 10.2 144 Calgary 8.3 213 Edmonton 5.9 150 Source: Kantar Media. (2015). Women’s Clothing Where Personally Bought/Past 12 Months Lululemon. Retrieved from PMB. When: Timing The timing of the campaign will be in in August/ September, aligning with the third quarter, as it will coincide with back to school shopping and the start of a new school year that occurs in September. Build-Up and Buzz will be created through media leading up to the launch months to create awareness among the target audience. How: Schedule & IMC Elements The IMC elements to be used in the campaign will be:

1. Advertising a. Product Advertising - This form of advertising will be used to communicate

information about the new initiative between Lululemon and the involved schools and the product itself. The goal of this advertising it to help build the initiatives image and brand image in the minds of consumers.

i. In store advertisements 2. Digital (Interactive) Communications

a. Interactive communications will be used to communicate with consumers across social media platforms and channels to spread the word online; which will help support offline efforts with traditional media.

3. Public Relations a. The goal of PR in the campaign will be to bring awareness to the initiative and

help gain understanding from the public surrounding the initiative and the new product.

b. This will be done through PR releases to social influences, Lululemon’s company website and additional social media outlets.

c. Company social media, in combination with the social media of school’s involved will be essential in the execution of this.

4. Sales Promotion a. This element of the IMC mix will consist mainly of the Lululemon sales force

both with in store representatives but also brand ambassadors, 5. Experiential Marketing

a. This will be used to connect with consumers and loyal Lululemon customers in a more personal manner.

b. This will include a preview night for loyal customers and social influences to learn about the product and overall initiative, as well as to meet girls who will be directly benefitting from the program.

i. Encourage these individuals to participate through health programs that they are interested in. Talk with them and find out their interests and aspirations and connect them with individuals who can continue to help them in the future.

6. Personal Selling a. The face to face communication with consumers will be essential to the initiative. b. This type of communication will allow Lululemon sales representatives in the

stores to speak with customers about the initiative and how their purchase is much more than the item they are buying.

c. The personal selling will occur within the Lululemon stores in the key areas mentioned above, as well as in a subtler manner through a YouTube web series documenting the initiative from beginning to end, discussion with school representatives, and students themselves.

The campaign will focus on reach and frequency strategy with various weight levels to promote the campaign. Reach will be used as the goal will be to reach as many consumers with the advertising message as possible during the campaign period while frequency will be utilized to reach those consumers as many times as possible with the advertising message during the campaign period. The marketing communications program will work with the marketing effort to effectively and meaningfully communicate the overall initiative between Lululemon and affiliated schools, how the brand is giving back to the local community, and helping promote active lifestyles of future generations. Through these efforts and the initiative, Lululemon hopes to change and/or alter the brand image in the minds of consumers to be more positive and see that Lululemon is actively involved in the local communities in a giving back nature and a focus on the youth - more than provided psychological affirmation for purchases and hosting classes.

The desired audience response will be two fold: 1. The purchase of one of the items that falls under the initiative 2. Change in brand perception among consumers by 20% by the end of Q4.

Creative Strategy, Appeal and Tactics Recommendations The Big Idea One for One...and More. The tools for living a healthy and balanced lifestyle. With every purchase of Lululemon High Times Pants (below, left) and/or Swiftly Tech Short Sleeve Tee (below, right), Lululemon will donate the same item to a girl at a local high Canadian high school. The aim of this initiative is to assist young adults in underdeveloped areas with living an active and healthy lifestyle. To teach and inspire those through action and showing is the best way to teach. Lululemon is putting their product where their mouth is and giving back to the local community that has accepted them and supported them over the years. Equipping local community members with the tools to work out and learn to live a healthy active lifestyle is of high importance to Lululemon.

Picture Credit: Lululemon Athletica Picture Credit: Lululemon Athletica In addition to the One for One initiative, Lululemon ambassadors from the across the country will go into the local high schools and teach classes once a week to help connect and inspire these young adults. This initiative will not only assist the individuals in the local community but also promote healthy living as a key principle in life.

Rationale Lululemon wants to be known as a company that not only produces high quality products, who is active within the communities their stores are within but also as a company that gives back to their customers and young adults cannot afford proper athletic wear. Therefore, One for One is a way for Lululemon to give back to the communities as well as fostering a strong sense of the need for physical health in young women and men. There has been a growing epidemic in health related issues. Without proper physical education, young women and men do not grow up maintaining a strong sense of the necessity for physical health. Proper diet mixed with physical exercise is imperative as it ensures that young women and men learn how to maintain proper health without which can lead to obesity and body image related issues. Thus the overall goal in One for One is ensuring that young women and men who cannot afford athletic apparel have the opportunity to learn healthy habits without struggling to find the necessary apparel for working out. Creative Theme The creative theme of the campaign is to generate and strengthen a positive brand image of Lululemon by altering consumers’ current perception of the brand. By launching a completely new advertising campaign with a new message Lululemon has yet to attempt, the style and personality of the message will be different enough from other campaigns to create a new image in the consumer’s mind. The central theme will be transferrable from the traditional media forms chosen (magazines and television) to the digital platform. The overall theme of the One for One campaign is giving as it can be used not only for this campaign but continue to be used to increase positive brand image for Lululemon in the future. A sub-creative theme of lifestyle aspirations will also be conveyed. Although a central theme of giving is conveyed throughout the campaign, the sub-theme of lifestyle aspirations conveys key benefits of the brand as well as the benefits of the overall campaign. In order to convey the central theme of giving and a sub-central theme of lifestyle aspiration, Lululemon will develop unity with female consumers within the communities Lululemon stores are in. By purchasing any High Times Pants and/or Swiftly Tech Short Sleeve Tee, one will be donated to a local high school. Tone & Style The overall tone and style of the campaign will be delivered both in an informative and friendly manner. Lululemon wants to give information and raise awareness about the issues of poverty and young adult’s inability to afford basic necessities such as clothing. By doing such, Lululemon is fostering a unity within communities and establishing a strong connection with their consumers

as well as their community. It is also connecting communities together by creating a platform for awareness and advocacy about poverty within communities. Alongside issues of poverty are issues pertaining to health and self-esteem. The campaign can foster the idea of good health while promoting Lululemon’s clothing and the campaign as individuals who working out tend to have a better self esteem and mental and physical health. Therefore, it is also important for Lululemon to address these issues as a commonality alongside poverty. The campaign should also be set in a friendly manner. Because this issue is often less talked about or ignored, Lululemon wants females to receive the feeling of happiness for giving back to the community. Although the customer doesn’t need to do anything except purchase clothing and Lululemon does the rest by giving back and going to the school to give classes to female students, the customer still feels engagement within their community, knowing that the money they use to purchase clothing from Lululemon will also go to helping those who cannot afford simple necessities. Appeal Techniques Based on brand appeal and insight into the consumer demographic, it is beneficial for Lululemon to use a One for One campaign. Lululemon’s brand appeal assists in the idea of physical health and maintaining a healthy lifestyle. The appeal techniques that will be used within the One for One campaign are positive, factual and lifestyle. The overall tone that Lululemon wants to convey to young adult’s is positive. Creative Vinyl want to individuals to feel happy, cheerful and foster the overall emotion found when an individual gives back. The overall One for One project wants to focus on giving and the emotion that is evoked when individuals give back - that sense of doing something right and good. Another appeal technique that the One for One campaign can use is factual. It is important for Lululemon to convey the reasoning for the campaign, giving statistics as to why it is important to buy certain pieces of apparel over another in order to give back may assist in generating sales of a pair of High Times Pants or Swiftly Tech Short Sleeve Tee. The lifestyle appeal technique will also be used as it is the most recognizable to the overall brand of Lululemon and assist in conveying to the target market the reasoning behind the goal of the campaign. The lifestyle technique is the most important technique as it shows what the Lululemon brand stands for - which is a healthy lifestyle. The overall lifestyle technique can show images of healthy living and associate Lululemon’s brand with the desired lifestyle of the target audience. Key Message The key message of the campaign is giving to those less fortunate.

Women may gravitate towards the idea of giving back to younger females and knowing that they are helping young women and men within their community. As Lululemon’s target demographic is females between the ages of 35-49, these women are typically within the nurturing, motherly stage of their life cycle. Therefore, these women may gravitate towards the idea of One for One and more willing to participate within the program knowing they can help young females. Based on the media objectives, the campaign will want to reinforce the message of giving back to local communities in Canada. The message overall will assist in achieving the overall objectives because more individuals will be able to come together and connect, creating a sense of unity within their communities. The overall message of giving will facilitate achieving objectives because individuals will gain a sense of doing something right and being proud of giving back to their communities. When individuals feel pride, they often will return as they have a sense of gratification. If Lululemon can assist individuals in feeling gratified for doing something good, individuals will increase their perceptions of Lululemon, ultimately achieving their objectives. Copy Platform, Creative Tactics and Rationale Based on the USP of Lululemon and the products used within the campaign, the copy platform will outline topics to be addressed in the Television, Magazines, Digital Media, Experiential, Public Relations, and Out of Home mediums. Based on the overall objectives of the campaign, Creative Vinyl will use the copy platform as a way to enable Lululemon to target their desired audience and generate sales for the One for One campaign. Copy Platform Television - 0:30 second commercials that will be played on networks that align with the target market's interests. Print (Magazines) - magazines should be executed using a full page or double page spread in order to catch the eye of readers. Interactive Media - interactive events take place inside of Lululemon stores, as well as event held at local high schools with brand ambassadors. Internet - using #oneforLulu on social media will connect individuals not only to the brand but also each other, fostering a strong unity with individuals in communities as well as across Canada. Public Relations - press releases and public events will be used to interact with consumers as well as maintain strong relationships with shareholders, important to the success of the campaign and future success of Lululemon’s brand. Out of Home - billboard and subway and bus shelters expose individuals who are both commuters and individuals who will and can benefit from the One for One program. Therefore, creating a unity with both consumers as well as those who benefit from the program as well as the brand.

Creative Tactics The creative tactics which will be shown in the graphic treatment are used in order to foster the overall theme of the campaign of giving. The creative tactics will be to use media such as Television, Print (Magazines), Interactive Media, Internet, Public Relations, and Out of Home. The overall tactics will be to ensure that individual are able to connect with each other to promote the overall goal of the campaign and to thus create a more positive perception of the Lululemon brand. Creative Approach In order to fully understand Lululemon’s new campaign of One for One, the Big Idea can be extended into each of the recommended IMC disciplines. As the overall goal of IMC is to challenge companies to combine various forms of communication into an effective marketing strategy. The six IMC elements stated above assist in establishing a positive brand image for Lululemon. Television Lululemon will play campaign advertisements on television channels reflective of the target market. These channels are more likely to attract individuals who work out or are physically active. The overall goal of the campaign is to bring awareness to poverty while increasing Lululemon’s brand image. The use of sports channels will increase awareness of physically active individuals with lifestyle techniques and foster the feeling of wanting to give back to local communities that sports teams are within. Other channels to advertise on are CTV and ABC, where shows with mainly women demographics are aired. Shows like Grey’s Anatomy and How to Get Away With Murder are targeted towards the same target audience as Lululemon and therefore can increase the chances of having a connection with women who would likely be customers of Lululemon. It should also be stated that although Lululemon has never had any television commercials, running TV commercials may assist in changing individual’s current perception of the brand. Executing advertisements on these channels will occur at prime time (6-9 PM) where there is the greatest chance of reaching the target market. Based on the campaign period of August-September, many shows have yet to start their seasons and individuals are out being active with their families. Therefore, there will not be as high of an emphasis on television as other forms of media. Print Women’s Magazines such as Women’s Health, Flare, LOULOU, and Health magazine such as Self often depict women wearing Lululemon apparel. It is beneficial for Lululemon to target women who read these magazines for health and lifestyle tips. Since these magazines already target Lululemon’s audience and occasionally feature clothing from Lululemon, it is beneficial to advertise in these magazines.

The overall execution of these magazines will be based on the given budget. Since magazines are expensive to advertise in, it is a good idea to advertise with women wearing Lululemon or have a promotional advertisement showing young women who are benefiting from the overall campaign. Interactive / Experiential Marketing As the One for One campaign will take place in stores, it is imperative to use interactive and experiential marketing. The goal is to connecting with consumers with the Lululemon brand in a personal manner. One way of doing this is to have a night for loyal customers where they have discounts and promotions that are sent out via email or direct mailing for these customers a few weeks in advance. They would then be able to RSVP to the event and be able to receive promotional merchandise and discounts on their favourite or most purchased items. This is also a good opportunity to educate loyal customers about the campaign as well as meeting young women from their communities who will benefit from the One for One campaign. The execution for the loyalty customer night will be entitled “A Night of Giving” following with the overall theme campaign and will run on one night halfway through the campaign, at the beginning of September to also align with the back to school period. Internet Digital media will play the largest factor in the overall campaign. The ability to interact with consumers through social media assists in spreading the One for One message as well as the creative theme of giving and lifestyle aspirations. The use of social media can be used through the campaign. For example, Lululemon can tweet out certain communities who have purchased a certain amount of High Times Pants or Swiftly Tech Short Sleeve Tee’s. The ability for Lululemon to interact with their consumers on a personal level in real time will help to change brand perceptions as individuals have the ability to ask questions about the campaign and brand and have a quick response from Lululemon. Using the hashtag #oneforLulu engages with the consumers and allows them to interact with friends by showing off when they’ve purchased an item that is part of the One for One program. Another digital platform that will be implemented for this campaign is YouTube. The use of this digital media platform will be used to create a web series, documenting the One for One campaign from beginning to end. The web series will run from the first to last day of the campaign and will involve speeches from inspirational athletes who overcame different challenges in their lives and how they evolved and learned lessons from these challenges. The web series will also show inspirational and emotional moments between young female students and Lululemon’s brand ambassadors.

Public Relations Public relations in the form of public events will be executed three times within the campaign. At the beginning of the campaign a public event will be held to bring awareness to the campaign and help communities gain understanding of the initiatives of the campaign as well as the products used within the One for One campaign. The second public event will occur half way through the campaign, at the beginning of September. This will be used as a time to interact with the young women and men within the program and have a chance for them to speak out about the benefits of the campaign. This will also be a time to talk about goals of the campaign and how well the campaign is currently doing. The last public event will be held at the end of September and with it will come a press release. The event will wrap up the campaign and the press release will give any further information about goals and achievements of the campaign. The press release will be published on Lululemon’s website as well as additional social media websites such as LinkedIn and Facebook. Out of Home Out of Home media can be used within the One for One campaign. Since the campaign will run in urban areas, billboards and bus shelter, and subway station ads are able to target commuters as well as individuals within cities who take public transportation. Not only will out of home attract the target audience but it will also attract the young women and men who are at the epicenter of the campaign. Inappropriate Vehicle Lululemon would not want to use the print media platform of newspapers. As is general knowledge, print media is a dying form of media. Because of the nature of the campaign, newspaper does not align to the overall objectives of both Lululemon’s brand and the campaign. Media Recommendations Media Habits of Target The media habits of women who have personally bought clothing at Lululemon in the past 12 months, they are a dual audience in that they consume both magazines and television (both English and French), with a skew towards magazines. Focusing on the English demographic, again, they are a dual audience and consumer both magazine and television with a heavier skew towards magazines. Therefore, it is recommended to advertise primarily in magazines but secondary support through social media, in store events, out of home, and television.

English + French

Imperative Vertical % Index Magazines 38.6 164 Television 9.3 41 Dual 36.6 101 Source: Kantar Media. (2015). Women’s Clothing Where Personally Bought/Past 12 Months Lululemon. Retrieved from PMB. English

Imperative Vertical % Index Magazines 37.4 197 Television 8.1 45 Dual 25.8 124 Source: Kantar Media. (2015). Women’s Clothing Where Personally Bought/Past 12 Months Lululemon. Retrieved from PMB. The primary target is females, 35-49 years old, are heavy consumers of magazines and television, both for English and French. The secondary target is females, 18-24 years old. Media Strategy Target Market Strategy A shotgun strategy will be used during the initial phase of the campaign to reach the target market; which will align with the blitz style advertising recommended for the flight schedule. A rifle strategy is recommended to reach the target audience of the campaign as it develops from the initial phase. The rifle strategy will involve using specific media to reach the target market that is defined by a common characteristic. This strategy is recommended because the target consumer of the campaign has a common characteristic that ties them to Lululemon and the brand – “women who understand the importance of an active, healthy lifestyle.”17 To achieve both of these strategies, a variety of media will be employed to achieve the objectives of reach and frequency of the campaign. Market Coverage Since the campaign will occur through Lululemon stores in Canada, thus a national campaign, media utilized will be ones that reach national markets. That said, higher weight levels will put towards media that focus on urban markets in the specific regions of focus: Ontario, British Columbia, and the Prairies. In order to maximize reach and frequency within these key urban markets, greater portions of the budget will be allocated within these markets as the greatest majority of Lululemon shoppers are within the mention metropolitan areas.

17Lululemon Athletica. (27 March 2014). Annual Report 2014. Edgar Online. Retrieved on 22 March 2016.

Timing Since the campaign will launch during the third quarter and follow a blitz style strategy, spending will be heavier in the initial phase of the campaign. Spending will taper off when Q3 comes to an end but will increase in following months during the third quarter when the campaign picks up to check in and see how the initiative helped/impacted the students. Moderate spending will occur during the in between stage to follow a reminder style advertising strategy. Reach/Frequency/Continuity The initial phase of the campaign will focus on reach and frequency as the objective during this phase is to create awareness and attract the target audience to Lululemon. In order to maximize the budget and all media vehicles, different weight levels (flights) will be used to effectively and efficiently communicate the campaign objectives and ensure maximum impact among the target audience. Media Mix Television Recommendation: CTV, ABC, and HGTV networks are recommended to reach both the primary and secondary target markets because they share similar target audiences and can provide a mass reach to the population. The CTV and ABC networks provide national coverage while the HGTV network provides a targeting in a niche market that encompasses the primary target market of 35-49 years olds.

Network Show Weekly GRP Total GRP Timing Flight CTV Grey’s

Anatomy 130 1170 Q3

Prime Time (6-9pm)

9 Wks

ABC How To Get Away With Murder

130 1170 Q3 Prime Time (6-9pm)

9 Wks

HGTV House of Bryan

130 1170 Q3 Prime Time (6-9pm)

9 Wks

While exact rates for the mentioned networks above are unavailable, it is recommended that $3-4 million of the overall $5 million budget be put towards television. This is because higher rating points are recommended to be purchased due to the short nature of the campaign. Additionally, spots during prime time are recommended which will be more expensive since it is during primetime.

Print Recommendation: It is recommended to advertise in LOULOU, Women’s Health, Flare, and Self as all magazines reach both the primary and secondary target markets for the campaign. Magazine Ad

Type # of

Insertions Cost/

Insertion Total Cost

Digital Version

Digital Cost

Digital Insertions

LOULOU Full Page. Colour.

2 $19,173

$57,519 Yes $2,838 3

Flare Full Page Colour

2 $24,529 $49,058 Yes

$1,762 3

Women’s Health

Full Page. Colour.

2 $31,880

$63,760 Yes N/A (est. $2000)

3

Self Full Page. Colour.

2 $216,890 $433,780 No

Sub-Total $604,117 Est Sub-Total

$19800

Total $623,917 Interactive/Experiential Marketing It is recommended to have an in store event with loyal customers with the objective to raise awareness about the campaign, how it works, who it helps, what items are included, and engage with loyal customers.

Source Item/Activity Estimated Cost In House Staffing $190,000 In House Setup & Teardown $110,000 In house + Marketing Company

Promo Material $150,000 - $200,000

N/A Misc. Cost $15,000 - $17,000 Outsourced Photographer $15,500 Outsourced Food & Beverages $450,000 Total $956,500 Internet Recommendation: It is recommended to use digital media in the form of social media platforms such as Facebook, Twitter, Instagram and Pinterest as they reach the primary and secondary target markets for the campaign. Additionally, these platforms allow for the campaign to reach the target markets on mobile devices. It is also recommended to purchase ads on the social media

platforms mentioned to further target the campaign towards the target markets, specifically the secondary target markets.

Site Creative Impressions/ Month

CPM CPC # of Weeks

Budget

Lululemon Blog + Specific Page + Leaderboard

Free N/A

9

N/A

LOULOU Leaderboard 46,000 3 $8514 Flare Banner 108,564 3 $5286 Women’s Health

Big Box 8.8 MM 3

Facebook 2,000,000 $12.5 $0.63 8 $25,000 Twitter - Website Clicks Campaign

2,000,000 $0.66

$2.00 7

$5,000

Instagram 2,500,000 $0.18 $0.44 6 $30,000 Pinterest 2,000,000 $0.75 $1.49 5 $5,000 Estimated Total

$78,800

Public Relations Recommendation: It is recommended to execute three public events with the objective of engaging consumers and raising awareness for the campaign. These events will enable the brand to engage with consumers on a personal and real time basis and create awareness about the initiative.

Event Month Location Costs Incurred Estimated Cost 1 August Lululemon Store Staffing $30,500 2 September Lululemon Store Staffing $30,500 3 End of

September / October

Lululemon Store Staffing $30,500

Total $91,500

Breakdown of expenditures, estimated, below:

Source Item/Activity Estimated Cost In House Staffing $9,000 Outsourced Set Up & Teardown $2,000 In house + Marketing Company

Promo Material $7,000

N/A Misc. Cost $3,000 Outsourced Photographer $2,500 Outsourced Food & Beverages $2,000 Location $5,000 Total $30,500 Out of Home Recommendation: It is recommended to use billboards and bus shelter ads will be used in the key urban areas to target commuters and individuals who take public transit;

Market GRPs Weeks 4 Week Cost Net

Total Net Cost

Toronto CMA 50 8 $296,700 $593,400 Vancouver 50 8 $106,218 $212,436 Calgary 50 8 $74,550 $149,100 Edmonton 50 8 $50,750 $101,500 Total Net Cost $1,056,436 Total Gross Cost $1,242,866

** Pricing is based upon horizontal poster rates from Pattison Outdoor. Media Selection Rationale The multimedia approach to this campaign will help establish a positive brand image for Lululemon while achieving the campaign objective and reaching the target consumers. Since it is a national campaign, the media plan will contain national television networks, niche magazines, targeted geographic out-of-home advertising, public relations, and online media. Television Television has the advantage of being a visual medium that enables you to visually present the product, its feature, and benefits. In this One to One campaign, television will allow Lululemon to showcase the product – pants and shirts – while communicating the features and benefit when consumers purchase the products. Additionally, television will allow Lululemon to reach national audiences on niche channels that reflect the characteristics of the target market. The advertisements executed on these channels during prime time will ensure the greatest chance of

reaching the target market and assist in changing individual’s perception of the brand. Furthermore, television is a medium that is still watched primarily by adults 35+. Print Print will focus on specific lifestyle magazines, reflecting the rifle strategy recommended above. These magazines provide the advantage of pass along readership, geographic selectivity (to be used for the key urban areas of focus), engagement, quality of reproduction, credibility, lifespan, and target market selectivity. Women’s magazines such as Women’s Health, Self, Cosmopolitan, will be used as the audience of these magazines aligns with the target audience of the campaign therefore making it beneficial for Lululemon to advertise in them. Digital versions of the magazine will also be used to provide continuity between offline and online portions of the advertising. Interactive/Experiential Marketing In the regions of focus, interactive nights in the form of loyalty nights will be utilized to connect with consumers in real time and provide the loyal customers with the ability to privately shop, take a class with a current Lululemon ambassador, receive promotional discounts, and information about the initiative. The loyalty night will be titled “A Night of Giving” to coincide with the giving theme of the initiative. Out of Home Billboards and bus shelter ads will be used in the key urban areas to target commuters and individuals who take public transit; allowing the advertising to attract the key target market of the campaign – females 35-49 years old and 18-24 years old. Internet The largest part of the media will focus on digital media as consumers these days spend a large amount of time online. A new website, which is fully optimized for consumption method of choice among the target audience, will be created that details the campaign, the initiative, and overall goal of the campaign. The use of social media will help encourage consumers to visit the site, as well as share posts regarding the initiative and campaign through the use of the campaign hashtag #oneforLulu. This enables ambassadors, consumers, and influencers the opportunity to engage with the initiative, the brand, and other consumers to display that they’ve purchase an item that is part of the One for One program. Furthermore, social media enables the brand to interact with consumers in real time on a more personal level about their part in the initiative, answer any questions they may have about the brand or the initiative and how it works. Thus creating a two-way conversation with consumers that is engaging and supportive rather than disruptive and intrusive. Social influencers from the key urban and metropolitan areas of focus will be utilized on, through their social media and online influence, to increase awareness and promote a more positive brand image. In addition to social influencers, current Lululemon ambassadors will be

used to help increase awareness and allow for consumers to interact and engage directly with the brand and campaign. Social influencers will be used to target the secondary target audience of the campaign – females 18-24 years old. Public Relations In the key regions and urban markets, public events will be executed three times. These events will enable the brand to engage with consumers on a personal and real time basis and create awareness about the initiative. The first public event will aim to bring awareness to the campaign and help communities understand the initiatives of it while speaking about the products that qualify in the One for One campaign. The second event will occur in the middle of the campaign, closer to the beginning of September, with the purpose of interacting with the young women and men directly benefitting from the initiative. Additionally, it will enable the goals of the campaign to be communicated. The third event will be held towards the end of the campaign with a press release detailing the results of the campaign thus far and further information surrounding the initiative and future goals. It will be distributed online and to appropriate national and key region media outlets. Campaign Scheduling & Blocking Chart The campaign schedule as stated above will run from August to September 2016. Based on the 7 mediums chosen for Lululemon, the blocking chart shows each medium’s vehicles used to distribute the campaign. As the campaign will only run from August to September, Creative Vinyl will not be advertising during any other months except for August and September. *Blocking Chart - See Appendix A Budget The campaign budget of $5 million will be split up upon the 7 mediums Creative Vinyl has chosen for the campaign.

Budget Breakdown

Medium Estimated Expenditure

% of Total

Est. Expenditure Based on Media

Mix

% of Total

Other Potential Expenditures

Television $3,500,00 70 $1,687,140 36.2 Magazine - Print $600,000 12 $604,117 12.9 Magazine - Digital $80,000 1.6 $19,800 0.42 Interactive/ Experiential

$250,000 5 $956,500 20.5

Internet $30,000 0.6 $65,000 1.4 $250,000 Public Relations $200,000 4 $91,500 2 Out of Home $340,000 6.8 $1,242,866 26.6 Total $5,000,000 100 $4,666,923 100 Difference $333,077 Other Expenditures $250,000

Reflected above are the overall budget for the campaign period of August to September. The total budget allocation is $4,661,253, just under the $5 million budget. However, as a buffer, the difference of $338,747 can be used to increase the amount of digital media used within the campaign, outlined below. As this budget is based on the media mix above, where each media has been priced out through Card Online and other resources made available. Television The overall costing for television for the campaign period is $1,681,470. The cost is based on 120 GRP’s for 8 weeks across 2 national networks (CTV and ABC) and 1 specialty channel (HGTV). These channels align with the target market’s television programming preference. We’ve allocated the majority of the budget to television as it is the easiest way to reach our target. Based on the media mix, the overall budget for Lululemon’s campaign did not necessitate the full estimated $3-4 million budget. Therefore, although Creative Vinyl have given high weights and extended weeks to television programming, Creative Vinyl have decided to also focus our budget on out of home, since many individuals of our target market live in urban areas with populations of 500,000+. Television still remains the most important form of media as our target market is highly prone to consuming television, Creative Vinyl will maintain high weights throughout the campaign in order to achieve a strong recall of the campaign and achieve necessary objectives of having individuals come into the stores to shop. * See Appendix B for Television Budget Magazine - Print & Digital The total cost for magazine expenditure (both print and digital) is $623,917, similar to our estimated budget. As stated above Creative Vinyl decided to use print as a way to focus and

engage with the target market using lifestyle magazines. However, because of low reach, frequency and high costs, magazines are not our primary medium. Also, because of the length of the campaign and individual’s tendencies not to open magazines as soon as they receive them, Creative Vinyl decided to keep to the estimated budget with magazines and ensure that the type of magazines Creative Vinyl will be using to promote Lululemon’s campaign are highly tailored to the target audience. As stated above, the difference between the total budget and the allotted budget can be used to increase spending for digital magazines if necessary. The reason behind this is, until Creative Vinyl see how the campaign starts, Creative Vinyl will not be able to gage the amount of digital advertising necessary. Once the campaign starts, Lululemon can purchase more digital advertising for magazines, however, based on the fact that many individuals use social media to talk about brands rather than looking at digital magazine, Creative Vinyl will emphasize the need to allocate residual funds to social media. Interactive/Experiential Interactive media will be used as part of the campaign to connect individuals with each other and the overall message of the campaign. Therefore, Creative Vinyl has chosen to allocate 20.5% of our total budget to Interactive media. The campaign centers around the interaction of individuals with each other as well as Lululemon’s brand. Therefore, it is extremely important to be able to engage with customers through physical interaction in store and in schools. Therefore, a large portion of the budget will be allotted to interactive media as individuals can thus engage with each other creating strong word of mouth about the campaign - a free form of advertising for Lululemon. Internet As our campaign One for One will be used also on social media with #oneforLulu, it is important to add emphasis to digital media. Although the current allocation of funds to the Internet is low, Creative Vinyl will use the remainder of the $250,000 budget to social media. When the campaign starts, Creative Vinyl will increase the amount of social media funding based on how well individuals take to the hashtag. Until the campaign begins Creative Vinyl will be unable to say for certain if these funds are necessary, however, Creative Vinyl will call the extra funds a “buffer”, in case they are necessary for increasing engagement with the target market. Since Lululemon is already a popular and followed brand on social media, the hashtag could be easily picked up depending on the likability of the campaign in the first few days of the campaign. However, as social media changes from second to second, hour to hour, Creative Vinyl are unable to doubtlessly say that these funds will be necessary. Public Relations Although Public Relations is important to our campaign for Lululemon, it is not necessary to spend an exuberant amount of the budget on PR. Therefore, although our original budget states that $200,000 would be allotted to PR, Creative Vinyl has decided that it is only necessary to

spend $91,500 on public events and press releases. As Creative Vinyl is spending ⅕ of our budget on interactive media, public events in stores will be more formal and will occur around interactive media. Therefore, it is not as important to spend a high amount of the budget on these events but instead focus on the Interactive medium for consumers and use the press releases and public events to maintain strong relationships with Lululemon’s investors. Out of Home Our final form of media will also be very important to our media plan. Creative Vinyl has allotted 26.6% of the budget to outdoor media. Creative Vinyl has decided outdoor media is important to the campaign as it will reach both our target audience as well as the individuals who will benefit from Lululemon’s campaign. It is important to the campaign that individuals who are less fortunate feel comfortable receiving donations from other individuals within their communities. Therefore, in order to ensure the fostering of unity in order to benefit both Lululemon as well as individuals in need, it is important to place advertisements where individuals who can both afford Lululemon and those who cannot are both exposed to the ads. *See Horizontal Poster rates from Pattison Outdoor for Out of Home costings Graphic Treatment Out of Home The outdoor advertisement will stand out amongst the cities that Creative Vinyl places them. The background is meant to blend into the surroundings but the individuals are going to stand out. The text is bold and will stand out from the picture itself. Like most Lululemon ads, the logo is placed at the bottom. Carrying in the theme of the campaign Creative Vinyl have also added the #oneforLulu.

ONE FOR ONE

ONE FOR ALL. #oneforLulu

Print The print campaign that Creative Vinyl will be using is unlike most campaigns by Lululemon. The print ad keeps the basic health theme, however, using the same characters as the Out of Home. Creative Vinyl wants to keep in line with Lululemon’s brand, however, Creative Vinyl also wants to do something differently that will attract both the target market but also the individuals the campaign is attempting to assist. Keeping in line with the hashtag as well will promote the idea of going to social media to tweet or keep the conversation going with friends.

one for one

one for all.

With every purchase of High Times Pants

or Swiftly Tech Short Sleeve Tee, Lululemon will donate the same item to a girl at a local high Canadian high school

#oneforLulu

Television The television commercial will be used to foster the feeling that there is a change that is necessary. Using the emotional appeal will be used within the commercial. It is important to foster the idea of needing to do something and a subliminal call to action for people to go into stores and shop for the products that will be used within the One for One program. * See Appendix C for Television Story Board Conclusion The overall campaign by Creative vinyl prepared for Lululemon will attempt to create a cohesive bond with both individuals in society, but also Lululemon as a brand. Why is this best for Lululemon? The overall needs to Lululemon are to increase perception in the minds of their consumers in order to generate revenue once again. Thinking of the campaign as a big PR stunt is shallow thinking as the campaign goes beyond the scope of just PR alone. It is evident from the issues Lululemon has previously faced that there is a necessary need for change. The overall campaign will ensure that individuals are exposed to a positive message that Lululemon will be putting forward, no longer will people think of Lululemon as just an athletic company with a shady CEO and issues with material quality. The campaign will give Lululemon back their competitive advantage, becoming a company known for their community involvement and realigning their overall company objectives to becoming a positive face in communities around Canada. Recommendations for the Future In order to ensure that Lululemon continues to bring a positive message in the future, they must continue using PR in order to ensure that negative messages are not released. It will be imperative for Lululemon to also think about doing more campaigns involving younger, less fortunate individuals in the future and to consider the benefits of participating in the communities who purchase from them. Appendix A

Appendix B Television Quarterly Budget for Q3

Markets CPRP (unmod.)

Weekly Ratings

Weekly Cost

# Weeks

Total Cost

Halifax $27.00 130 $3,510.00 9 $31,590.00 Saint John/Moncton $22.00 130 $2,860.00 9 $25,740.00 St. John's $14.00 130 $1,820.00 9 $16,380.00

Total Atlantic $63.00 130 $8,190.00 9 $73,710.00 Montreal French $156.00 130 $20,280.00 9 $182,520.00

Montreal English $104.00 130 $13,520.00 9 $121,680.00 Quebec City $40.00 130 $5,200.00 9 $46,800.00 Sherbrooke $24.00 130 $3,120.00 9 $28,080.00 Trois Rivieres $14.00 130 $1,820.00 9 $16,380.00 Chicoutimi/ Jonquiere

$10.00 130 $1,300.00 9 $11,700.00

Total Quebec $348.00 130 $45,240.00 9 $407,160.00 Toronto/Hamilton $320.00 130 $41,600.00 9 $374,400.00

Ottawa English $95.00 130 $12,350.00 9 $111,150.00 Ottawa French $12.00 130 $1,560.00 9 $14,040.00 Kitchener/London $120.00 130 $15,600.00 9 $140,400.00 Sudbury/Timmins/ North Bay

$24.00 130 $3,120.00 9 $28,080.00

Peterborough/ Kingston

$24.00 130 $3,120.00 9 $28,080.00

Barrie $9.00 130 $1,170.00 9 $10,530.00 Total Ontario $604.00 130 $78,520.00 9 $706,680.00

Winnipeg $48.00 130 $6,240.00 9 $56,160.00 Regina $19.00 130 $2,470.00 9 $22,230.00 Saskatoon $25.00 130 $3,250.00 9 $29,250.00

Total Man/Sask $92.00 130 $11,960.00 9 $107,640.00

Calgary $80.00 130 $10,400.00 9 $93,600.00 Edmonton $80.00 130 $10,400.00 9 $93,600.00

Total Alberta $160.00 130 $20,800.00 9 $187,200.00 Vancouver/Victoria $175.00 130 $22,750.00 9 $204,750.00

Total British Columbia

$175.00 130 $22,750.00 9 $204,750.00

Total $1,442.00 $374,920.00 $1,687,140.00

Appendix C

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