LULULEMON ATHLETICA

CLIENT PROBLEM

Lululemon is faced with the problem of

a drop in recent sales along with a

lower rate of customer satisfaction

regarding product quality and overall

brand loyalty.

RESEARCH OBJECTIVES

RESEARCH OBJECTIVES

● To find out whether or not we should improve and increase

current brand awareness

● To identify and describe brand perceptions and positioning in

the minds of consumers

● To find out whether or not Lululemon should seriously

consider the development of a bamboo clothing line

RESEARCH METHODOLOGY

RESEARCH METHODOLOGYSURVEYS & FOCUS GROUPS

SURVEY● 25 questions based on

objectives● Survey shared on social media● Over 100 responses

FOCUS GROUPS● 4 women & 1 man - based on

target demographic (mid/upper class women & men aged 25-35)

● Conducted/moderated by Grace

RESEARCH FINDINGS: QUALITATIVE

When asked which yoga or athletic wear company comes to mind first:people shared Nike, Lululemon, and Adidas. People were likely to shop at Forever21, Lululemon, Joe Fresh, and Sport Check for yoga, athletic/ comfort wear.

BRAND AWARENESS

People knew of Lululemon’s leggings as a top product. Everyone was able to recall the closest Lululemon to him or her (the local mall).

When shown an image of a woman exercising and asked what brand first comes to mind, many said Lululemon and Nike.

When asked what they thought of when they heard the word “Lululemon”: expensive, good quality, trendy, athletic wear, casual clothing, comfy.

When asked how they felt walking into a Lululemon store: welcomed, positive, overwhelmed, shocked at prices, comfortable, motivated.

BRAND PERCEPTIONS

Two pictures: one of a woman running errands and wearing Lululemon and another picture of a woman running errands and wearing Joe fresh. Respondents were asked what do you think of each woman and her lifestyle.

Picture one: Sociable, high class, higher disposable income, comfortPicture two: Busy, practical, comfort, task oriented

Then shown a picture of a family and each member wearing Lululemon clothing. The respondents were asked:What do you think this family’s annual household income is?

Responses: Over 100K, 150K, 200K+

BRAND PERCEPTIONS

What do your think this family does in their free time?

Responses: Athletic endeavours, skiing, go to the cottage, play tennis, hang out at the members only club, spend time as a family doing activities outdoors

When asked what materials they enjoy wearing the most, many said: comfortable, a little stretch, soft, cotton, spandex blends, stretchy denim, high waisted, casual

BAMBOO LINE?

What do you think this family does in their free time?

Responses: Athletic endeavours, skiing, go to the cottage, play tennis, hang out at the members only club, spend time as a family doing activities outdoors

BAMBOO LINE?

When asked what materials they enjoy wearing the most, many said: comfortable, a little stretch, soft, cotton, spandex blends, stretchy denim, high waisted, casual

When asked how many purchase organic products people said: yes they purchase organic food, no can’t bring myself to spend the extra dollars, yes organic cleaning products, yes some organic some not.

When asked why they feel it is important to purchase organic products they said: Help our bodies, better for us, less chemicals, better for environment, only important for certain foods.

They were then asked how important it is to them to wear organic materials:I wear what I feel comfortable in have never really tried out any organic clothing, have heard of it but never tried it so not to important, would be willing to try if better for the environment and myself but do not know where to purchase.

Then they were asked do you know of any clothing material that are considered to be organic: Is cotton organic?, like hemp clothing? Is that not itchy though? I’m not sure, what classifies it as organic?

When asked does any one shop and Lululemon for athletic wear: many said yes, I have before. One person has not owned anything from there.

BAMBOO LINE?

Then they were asked if they only shopped at Lululemon or if they shopped elsewhere for athletic wear: Everyone shopped at other places as well. Like Joe Fresh, Forever 21, Nike, Adidas, Sport Chek

Finally they were asked would you pay the same price for clothing from Lululemon if it were made out of bamboo? Many said yes it is already expensive so it would be nice to know the materials where better quality and better for the environment. It would kind of make it worth the extra dollars.

RESEARCH FINDINGS: QUANTITATIVE

GAUGING BRAND AWARENESS

● For brand awareness Lululemon came in top rank then followed by Under Armour, Adidas, and Nike in last.

● The Majority (45.5%) of our respondents exercised 0-2x a week. Fallowed up by 3-4x a week at 35.8%.

GAUGING BRAND AWARENESS

● A large majority bought activewear annually at 33.6% and fallowing behind that 35.2% bought activewear quarterly.

● With almost half (45.5%) of our respondents are single. Second to that are married with children at 32.5%.

GAUGING BRAND AWARENESS

● 33.3% of our respondents have never seen a Lululemon Advertisements. Although followed directly behind that 22% have seen one within the past couple of days.

● 81.3% of your respondents are more likely purchase a product that has been recommended to them.

GAUGING BRAND AWARENESS

● The majority (64.2%) enjoy shopping at a mall over online and/or an independent store.

● 64.2% of respondents learned about Lululemon through word of mouth. Only 0.8% knew about Lululemon through print or out of home advertisements.

IDENTIFYING BRAND PERCEPTIONS

● The majority (68.4%) of our respondents are likely to shop at Lululemon. 17.1% are unlikely to and 8.1% would never shop there.

● Majority says that 35.8% would be willing to spend $60 on a pair of yoga pants and 30.8% are willing to spend $90. Only 9.2% willing to spend $120 on a pair of yoga pants.

IDENTIFYING BRAND PERCEPTIONS

● The majority (68.4%) of our respondents are likely to shop at Lululemon. 17.1% are unlikely to and 8.1% would never shop there.

● Majority says that 35.8% would be willing to spend $60 on a pair of yoga pants and 30.8% are willing to spend $90. Only 9.2% willing to spend $120 on a pair of yoga pants.

IDENTIFYING BRAND PERCEPTIONS

● 25.2% strongly agree that Lululemon is a leading competitor of exceptional quality athletic wears. And 46.3% agree with that statement. With 3.3% of people strongly disagreeing.

● The majority (39.8%) of people are satisfied when shopping at Lululemon.

IDENTIFYING BRAND PERCEPTIONS

● 51.2% believe Lululemon to create a positive environment when in their store. 39% believe it to be inspiring and motivational

● Majority (51.2%) of people have no preference as to what in-store events they would like to see more of.

IDENTIFYING BRAND PERCEPTIONS

● 39.8% of people have a Lululemon conveniently located to them. 22% of people would likely shop at Lululemon if they had one conveniently located to them.

● 52% feel Lululemon is not well recognized for being a Canadian company. Whereas 48% feel that it is.

IDENTIFYING BRAND PERCEPTIONS

DETERMINING BENEFITS OF A BAMBOO LINE

● Majority (69.7%) say that they have heard of clothing being made out of bamboo material.

● Majority of people are between very environmentally conscious and don’t care. With 68% of people saying they are somewhat environmentally conscious.

DETERMINING BENEFITS OF A BAMBOO LINE

● 48.7% say they are willing to pay more for better quality/more sustainable clothing. 47.1% willing to pay the same.

● 46.7% of people say that it is somewhat important for them to stay up-to-date on current trends. With 40% saying that it does no matter to them.

DETERMINING BENEFITS OF A BAMBOO LINE

● Quality (42.1%) and Price (37.2) come in top priority for what affects the respondents decisions the most when what brands to shop.

● Majority (58.2%) say that it is important for clothing companies to offer environmentally conscious items.

DETERMINING BENEFITS OF A BAMBOO LINE

● Majority (57.4%) of people are not brand loyal.

● Majority (62.3%) say no a bamboo line would not compromise the quality of Lululemon’s product. As well 15.6% say that it would increase the quality.

CALL TO ACTION RECOMMENDATIONS

RECOMMENDATIONS

● Consider reducing the price of regular activewear slightly - but maintain same quality

● Reasonable interest in launching a bamboo clothing line - consumers willing to pay current Lululemon prices for said line ($60-$90)

● Allocate more resources to advertising

● TV ads, Social media

RESEARCH SOURCES

RESEARCH SOURCES● PRIMARY SOURCES (re: Survey Results & Focus Groups)- Women & men aged 25-34- Middle-upper class salary- Live an active and healthy lifestyle - maintain this

mindset● Surveys - conducted on Survey Gizmo, 120

participants● Focus Groups - 4 women, 1 man within target

demographic

RESEARCH SOURCES● SECONDARY SOURCES- PEST & SWOT analyses - Online resources from a variety of sites

(competitor sites, news articles, case studies)

RESEARCH METHODS

RESEARCH METHODS● What went well?- Enough time to complete assignment- Allowed for an opportunity to understand and

complete each part thoroughly ● Issues?- Finding people in target demographic for focus

groups- Arranging a time that worked for everyone

(therefore only one focus group was conducted)● Recommendations/advice?- IDIs more efficient

THANK YOU! ANY QUESTIONS?