Lululemon Athletica Plan

via Lululemon Athletica

J453: Strategic Planning and Cases

Dr. Dave Remund

Marissa Fewel Stephanie Imah

Nicole Lygo Karen Ramming

19 November 2014

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Table of Contents

Overview Situation Analysis SWOT Analysis Problem or Opportunity Statement Stakeholder Analysis + Target Publics

Key Public 1: Lululemon Employees Key Public 2: Current Customers Key Public 3: Prospective Customers Key Public 4: Community Ambassadors Key Public 5: Investors

Key Messages Goal Statement

Objective #1 Objective #2 Objective #3

Measurement + Evaluation Measurement #1 Measurement #2 Measurement #3 Measurement #4

Budget Timeline Appendix

Instrument Design Attitudinal Survey (For Staff) Attitudinal Survey (For Customers) Focus Group

Presentation Feedback Works Cited

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Overview

Lululemon Athletica was founded by Chip Wilson after he attended the first commercial yoga

class offered in Vancouver, B.C., Canada. Wilson found the experience exhilarating but also

thought that the cotton clothing students and teachers wore was inappropriate for the “sweaty,

stretchy power yoga” and decided to use his background in the surf, snow and skate business,

and his passion for technical athletic fabrics to create Lululemon. Wilson opened a design studio,

which doubled as a yoga studio at night to pay rent, where the clothing was first sold.

Lululemon’s success depended on the studio’s yoga teachers who wore the clothing and

provided Wilson with insights to improve his products.

Though founded in 1998, the first Lululemon store didn’t open until November 2000 in

Kitsilano, a beach area of Vancouver. The store was originally intended to be a “community

hub” where people could come to discuss and share advice about all aspects of healthy living,

both the physical and the mental. Unfortunately for the concept, but fortunately for the company,

the products were too popular for employees to make the concept of a “community hub” work

while still selling clothes. Therefore, their focus shifted to training the employees so that they

could “positively influence their families, communities and [the] people walking into [the]

stores.” While the initial goal was to only have one store, Wilson and his associates soon realized

that to provide “a fulfilling life of growth, family, salary and mortgage” to their staff, they would

have to grow the company in order to provide more opportunities.

As of February 2, 2014, Lululemon had 254 stores in the U.S., Canada, Australia and New

Zealand (Businessweek). Lululemon strives to maintain close ties within the local communities

by implementing grassroots marketing efforts at each local store. This includes hosting in­store

events, such as self defense workshops, goal setting workshops and complimentary yoga classes

led by community ambassadors. These ambassadors are individuals in the store community who

“embody the Lululemon lifestyle and live [their] culture.” Lululemon also sells their products

through premium yoga studios, health clubs and fitness centers.

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Lululemon is very successful in their use of social media, maintaining a consistent voice and

successfully utilizing content strategy. By using Twitter to communicate with followers,

Lululemon is able to facilitate a conversation about what they are doing to get “their adrenaline

and zen fix” (Creative Concepts). The tone is energetic, encouraging and overall, conversational.

Compared to their competitors (Nike, Athleta, Adidas, Reebok, and Fabletics), Lululemon falls

third in the lineup for Twitter followers, only behind powerhouses Nike and Adidas. Facebook is

also a platform to generate awareness about blog posts, products, events and promotions. Tumblr

and Flickr are used to share product and lifestyle photos, inspirational quotes, instructional

videos and “street level snaps related to the worlds of running and yoga.” (Creative Concepts)

Lululemon also successfully utilizes YouTube to show product educational videos, instructional

videos and videos about the company and community.

Situation Analysis

Lululemon’s problems began on March 17, 2013 when customer complaints caused them to pull

their line of black luon yoga pants, one of the brand’s most popular options, from store shelves.

The complaints all revolved around the sheer or “see­through­ness” customers were experiencing

while wearing the pants. Lululemon, in a show of goodwill, invited unsatisfied customers to

either return or exchange their black luon yoga pants. The day after the recall, Lululemon posted

an apology to their employees on the company blog/website.

Along with these complaints, the company also faced multiple class­action lawsuits from

investors who alleged that the company artificially inflated its stock price by failing to disclose

information about defective products.

Later in the year, the company faced another incident when founder Chip Wilson appeared in an

interview with Bloomberg TV’s Trisha Regan on November 5. While the interview was

originally supposed to be about Wilson’s new meditation method, the questions soon turned to

the March recall and new allegations of products pilling. Wilson made a number of inappropriate

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statements in regards to the questions such as stating that “some women’s bodies just actually

don’t work” for Lululemon pants. In response to the pilling allegations, Wilson responded

saying: “It’s really about the rubbing through the thighs, how much pressure there is over a

period of time, how much they use it.” (Marketing Mag) Wilson and Lululemon quickly came

under fire on Twitter and traditional news media for “fat­shaming.” Days later, Wilson posted a

video to the company’s Facebook page apologizing not to customers and those he had offended,

but to Lululemon employees. A teary­eyed Wilson said he was “sad for the repercussions of my

actions . . . sad for the people of Lululemon who I care so much about.” (Marketing Mag) Wilson

and the company received much the same response to the apology video as they had the to

Wilson’s interview.

Along with both of these issues, Lululemon also faced the departure of multiple executives.

Chief Product Officer (CPO) Sheree Watson stepped down in April 2013 amid speculation that

she was pressured to leave. A few months later, Chief Executive Officer (CEO) Christine Day

also announced she would leave as soon as a replacement was found. Wilson also resigned from

position as chairman in December 2013. By the end of 2013, Laurent Potdevin, the former

president of TOMS Shoes and president and CEO of Burton Snowboards, replaced Day as CEO

of Lululemon.

With the issues that Lululemon has encountered, a number of companies are attempting to step in

and capitalize on the growing gap in Lululemon consumers. The biggest competitors are larger

companies expanding further into the yoga market like Nike, Adidas, Reebok, PUMA or Under

Armour. Other competitors include clothing companies trying to push their way further into the

sportswear market like Victoria’s Secret and Gap Inc.’s Athleta. The last group of competitors

are those looking to expand their business in general. This group includes smaller companies like

Pearl Izumi which specializes in cycling gear, and the online monthly subscription service

Fabletics sponsored by actress Kate Hudson.

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In terms of market share, Lululemon is not far behind its competitors. Nike led the athletic

apparel market in 2013, boasting $7.4 billion in revenue in that fiscal year. Adidas was next in

line with a $4.8 billion in revenue. Under Armour came in third with $2.33 billion in revenue.

Lululemon’s fiscal year resulted in a $1.6 billion revenue, and Reebok wrapped up the big five

with a $487 million in revenue in 2013. Of these five companies, Lululemon takes about 10

percent of the market share demonstrating that the company has a significant place within the

market.

We conducted a recent survey involving Lululemon’s current customers to assess their current

standings toward the company. We gathered 62 responses of women aged 18­22 in which we

asked general questions about current customer satisfaction as well as other comments or

concerns. Of the responses, 77 percent say they have been shopping at Lululemon for more than

a year while 13 percent were new customers in the last three months. When asked about their

current attitude toward Lululemon as a whole, over 75 percent of responses were positive and

only 3 percent felt negative. However, when asked how informed they were of Lululemon’s

giveaways and sales events, over 70 percent said they were not aware. Overall, the data revealed

that though a majority of current customers are pleased with Lululemon but most may not be

informed about what their local branch has to offer (example: in­store sales events).

SWOT Analysis

Strengths

Established international brand

Founded in 1998

Operates 254 stores in the

U.S., Canada, Australia, and

New Zealand

Grassroots marketing approach keeps

brand connected to community

Weaknesses

Reputation of being “cult­like”

Poor employee satisfaction

According to Glassdoor.com,

Lululemon employees gave it

3.3 out of 5­­one of the lowest

among competitors

Recall of product

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Sponsors local yoga classes

and running clubs

Expanded target markets

Launched childrens line,

Ivivva, in 2009

Plans for mens­only store set

for 2016

Launched running apparel line

Prominent social media presence

67.4 K followers on Twitter

Over 1 million likes on

Facebook

Over 712K followers on

Instagram

Recalled the luon pant on

March 17, 2013 due to its

sheerness, which affected 17

percent of their pants solds

Reputation left by founder

Founder Chip Wilson gave an

interview with Bloomberg TV,

during which he blamed the

sheer luon pants on women’s

bodies

Accused of “fat shaming”

Recent departure of executive

members

CPO Sheree Watson resigned

in April, 2013

Founder Chip Wilson resigned

as chairman in December,

2013

CEO Christine Day announced

she would step down once a

replacement was found

Opportunities

Expansion under new CEO

CEO Laurent Potdevin worked

as president of TOMS shoes

and expanded the company

into 10 countries in 12 months

Connect with a larger base of

Threats

Competing brands

Nike, Adidas, Reebok, and

Under Armour all fight for the

same target market

Inability to recover from Wilson’s

negative comments

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consumers

Move Lululemon away from

the perception as only being

for one type of image

Open communication across all levels

of management

Connect company with

brand/CEO

Build cohesion among

employees, including

ambassadors

Fortify stronger relationship amongst

investors

Transparency in regards to

investor concerns

This analysis of Lululemon allows us to identify the current status of the company in order to

take further steps to remedy the problems Lululemon faces. Identifying the strengths and

opportunities the company has tells us where we can expand and build Lululemon's reputation.

Identifying the weaknesses and threats tells us where we can improve on.

Problem or Opportunity Statement

To reassure communities served by Lululemon Athletica of their commitment to a positive and

goal oriented environment as a yoga­inspired athletic brand.

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Stakeholder Analysis + Target Publics

Key Public 1: Lululemon Employees

Lululemon considers its employees and corporate culture a viable strength. They initially only

hired yoga practitioners, but later switched to hiring runners who enjoyed yoga. Additionally,

Lululemon offers their staff free yoga trainings, workshops and coaching lessons. The company

stated that they obtain a “supportive, goal­oriented environment” that inspires employees to

“reach their full professional, health and personal potential”.

However, workers have described the internal culture as “cult­like” and high­pressured.

According to GlassDoor.com, a website where people rank and share feedback about their

employers, Lululemon was ranked a 3.3 out of 5, which ranked them the lowest compared to

competitors.

Current relationship:

The relationship between Lululemon and their employees is fragile. Due to several leadership

changes recently, there has been a lack of strong leadership and communication among the

management team and employees. The employees are active publics because they are aware of

the internal problems and are beginning to communicate and respond to the management

changes. Building a solid relationship between employers and employees can be the key to

ultimate success for Lululemon.

Self­interests:

When looking for a job, employees want to work for a company that has a positive work

environment with strong core values and beliefs.

Influentials:

Current employees may influence each others decision to leave or stay working for the

company

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Management team could offer incentives to change Lululemon’s employees opinions to

be positive

Friends and family members of employees could voice their opinions of Lululemon that

could influence how employees feel about working for Lululemon

Retail customers might impact the experience of employees (while working) in a positive

or negative direction

Key Public 2: Current Customers

Lululemon started out with a particular segment of customers. They were targeting adult female

yoga enthusiasts by offering them both functioning and enriching clothes. Through community

education their publics have expanded. They have diversified their clothes to function for other

activities including running and cycling.

Lululemon currently targets adult women, men and youth. Lululemon describes its target

customer as a “sophisticated and educated woman who understands the importance of an active,

healthy lifestyle […] to achieve physical fitness and inner peace.” In 2009, Lululemon

introduced Ivivva Athletica, aimed at the female youth market, which included dance­inspired

products.

However, Lululemon lost many customers due to the recall of their popular black luon yoga

pants. Many customers complained their pants were see­through. Lululemon offered customers

an exchange or full refund for the affected pants but this later led to the investigation of hiding

product defects in their products.

Current Relationship:

The relationship between Lululemon and their current customers is susceptible. They are aware

publics because they recognize the problems Lululemon is facing in the media but still are

buying their clothing. It is important Lululemon keeps a positive connection with their consumer

base as well as continue to provide a unique and differentiating services for their loyal

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customers. If Lululemon damages their relationship with current customers this will impact their

sales completely. Current customers are loyal to the apparel. If Lululemon can continue to serve

their clients effectively, customers will continue buying from them and their relationship will

remain strong.

Self­interests:

Current customers want great customer service, trust and loyalty in a company and its products.

Influentials:

Employees impact whether they have a positive or negative experience in the store

Friends and Family have the potential to persuade the customer to shop elsewhere

Media/internet may influence opinions and reviews of the company and its products

Competing athletic stores may offer cheaper and better quality products

Key Public 3: Prospective Customers

Prospective customers want a brand they can trust in its cost and product quality. Lululemon

currently attracts prospective customers by using social media to spark a conversation that

encourages, teaches and answers questions prospective customers might have about Lululemon

products as well as their values and beliefs. Through in­store events, Lululemon creates customer

communities by offering goal­setting workshops and complimentary yoga classes.

But with a variety of public relations crises, prospective customers may be tentative to support

Lululemon and its products due to the product quality and sourcing issues associated to the

popular yoga pants. It is important Lululemon creates quality products to draw in prospective

customers. Attracting new customers is crucial to maintain a successful business.

Current relationship:

The relationship between Lululemon and prospective customers is hesitant. Prospective

customers may be reluctant to purchase clothing from Lululemon that doesn’t provide them with

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proper coverage. Prospective customers are aware publics because they are involved and

recognize the negative comments towards Lululemon but have not communicated their concerns

yet. It is important Lululemon produces superior clothing to avoid poor sales.

Self­interests:

When purchasing clothing, prospective customers want to get the best value. Customers want a

product that is reliable and of the highest quality.

Influentials:

Current customers can influence and share positive or negative feedback to prospective

customers

Employees can impact their experience in shopping at the store and convince them to buy

the clothing

Friends and Family may voice their opinions of Lululemon that could change their

perception

Media/internet may influence and share opinions and reviews of the products

Competing athletic stores may offer cheaper and better quality products

Key Public 4: Community Ambassadors

Ambassadors are local fitness instructors who are recruited by store employees. These

individuals are rewarded free Lululemon merchandise to wear while teaching, in return for

feedback and local promotion. The ambassadors are in areas where stores are located and are key

to Lululemon’s grassroot marketing.

Two former local ambassadors, Diana and John Vitarelli, ended their relationship with

Lululemon after expressing their negative opinions towards Lululemon in a blog post. They

revealed internal issues questioning Lululemon’s legitimacy as a cherished organization.

Current Relationship:

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The relationship between Lululemon and their ambassadors is unstable. They are active publics

because they recognize the internal company problems but only some are sharing their opinions.

It is crucial Lululemon builds a positive relationship with their ambassadors as they are the

“face” of the products among Lululemon's target customers (example: yoga enthusiasts).

Self­interests:

Community ambassadors of Lululemon want to promote a company that they believe in. They

want to be confident in the products and the company they are supporting and sponsoring.

Influentials:

Customers positive/negative feedback towards Lululemon products may impact the

relationship local ambassadors have with the company

Employees may be positive/negative towards Lululemon. Their attitudes and opinions

can affect how ambassadors feel towards the company

Friends and Family opinions could voice their opinions and influence their willingness to

continue working for Lululemon

Key Public 5: Investors

With the departure of several key executive employees and following the recall of the black luon

pant, investors may be concerned with their shares in Lululemon. The release of Lululemon’s

fourth quarter results ending in January 2014 showed a significant fall in share price after

revenue growth was below expectations. The results revealed store sales have decreased two

percent and gross profit decreased by three percent from the previous quarter. Some analysts

have predicted a recovery while others believe this might lead to a continuous decline. It is

important Lululemon serves the best interest to their stakeholders to remain a successful

company. Investors will continue to purchase shares of Lululemon if they can believe that

Lululemon has a strong future outlook.

Current Relationship:

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The relationship between Lululemon and their investors is fragile. Investors are unsure whether

to continue funding Lululemon or back out due to the company’s recent negative attention.

Investors are active publics because they are involved and reacting to issues that have the

potential to impact their investment in Lululemon. Their purchase of funds is crucial to the

success of Lululemon. Investors need to believe in Lululemon. By capitalizing on new sources of

growth Lululemon can boost its future investments and sales.

Self­Interests:

Investors are interested in a company that shows strong value in its shares and future success

through financial strength.

Influentials:

Analysts predictions of Lululemon’s financial reports could influence investor's decision

to keep investing or drop their shares

Media/Internet may expose negative perceptions people have towards Lululemon

Friends and Family could voice their opinions of Lululemon that could change how

current investors view the company

Competing athletic companies may show value and promise in their products that could

influence investors to drop out of Lululemon and purchase other shares

Customer reviews and feedback could influence investors in predicting the future success

of Lululemon

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Key Messages

Lululemon Employees Primary Message: Lululemon Athletica understands there is a disconnect between employees and corporate, and works to ensure that their is transparent communication between a levels of management. Secondary Message: Lululemon works to create open and safe ways for employees to communicate with management. Secondary Message: Happy employees make a happy store.

Current Customers Primary Message: Lululemon Athletica is dedicated to its consumer base by ensuring that all questions or concerns are openly addresses as well as through our commitment to providing top of the line yoga apparel. Secondary Message: Lululemon provides an open and safe source for communication with its consumer base. Secondary Message: We care more about you than how good you make our pants look.

Prospective Customers Primary Message: Lululemon Athletica provides quality yoga apparel while striving to improve company standards. Secondary Message: Lululemon is committed to rebuilding trust and communication with its consumer base. Secondary Message: We care more about you than how good you make our pants look.

Community Ambassadors Primary Message: Lululemon Athletica continually strives to better our products and services by actively listening and responding to the needs of our ambassadors. Secondary Message: Lululemon is dedicated to maintaining an open form of communication among corporate and ambassadors. Secondary Message: You invest in us, we’ll invest in you.

Investors Primary Message: Lululemon Athletica remains devoted rebuilding its positive relationships with investors and management.

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Secondary Message: Lululemon strives to maintain open and transparent communication with its investors. Secondary Message: You invest in us, we’ll invest in you

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Goal Statement

For Lululemon Athletica to maintain positive feedback among employees while remaining the

leading brand in athletic clothing for its consumer base.

Objective #1

Rebuild Lululemon Athletica’s positive relationship among current and prospective customers

and ambassadors, measured by customer survey responses, ambassador focus groups and retail

comparisons against the previous year and competitors over the next year.

Strategies + Tactics

Strategy #1: Expand Lululemon’s consumer base and showcase their commitment to provide

athletic apparel of all sizes.

Tactics:

Include models of varying sizes in catalogs and in featured advertising on

website, blog, social media outlets and/or YouTube channels.

Move plus size clothing to a more prominent location in store.

Feature plus size mannequins in every store.

Strategy #2: Create incentives for prospective customers to interact with Lululemon in a positive

way via social media.

Tactics:

Social media sweepstakes to win a personalized shopping experience at your local

branch with $750 to spend and dinner for two at a local 5­star restaurant.

Use social media hashtag #lovemylulu

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“You saw our employees do it; now it’s your turn! Share why you

#lovemylulu with us and you’ll be entered to win a shopping spree at

Lulu!”

Encourage sweepstakes winners to use hashtag #lovemylulu to document

their shopping experience.

Strategy #3: Brand Laurent Potdevin (LP) as the new CEO of Lululemon Athletica among

customers. 1

Tactics:

Create Twitter account for LP to use to communicate with consumer base

(@LuluLaurent)

Blog posts written by LP that focus on interpersonal subjects (such as his views

on hiking, meditation and self­expression) posted on blog with links tweeted out

for followers to repost

General pitch to relevant media outlets of a Q&A with LP to answer questions

about Lululemon (or reiterate some key messaging) that target their publics

Bio/profile on Potdevin on the Lululemon homepage that provides background on

the new CEO of the company

Q&A/profile video on Potdevin posted on Lululemon’s YouTube channel

Promoted through social media channels

Strategy #4: Provide an open and safe communication method for local ambassadors to voice

concerns, complaints, or suggestions with local Lululemon branch

Tactics:

Local Skype meeting between ambassadors and local lululemon branch hosted via

video feed

1 “CEO Branding is the process of aligning that face with the corporate brand. The process includes public relations activities, media interviews, philanthropy, articles, books, speaking engagements, and employee treatment – and it requires integrating the CEO’s brand DNA into how the company is viewed publicly.”­­Raoul Davis, CEO, Ascendant Strategy, quoted in “What’s Your CEO Brand?" Tanita Sandhu, July 2013, Forbes

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Ambassadors are also invited to send in questions or concerns via a private

chatroom

Strategy #5: Establish a more accessible means for customers to express comments and concerns

with Lululemon.

Tactics:

Create a customer service focused Twitter account @LuluListens

Advertised through the the company website on the “contact us” page

Objective #2

Rebuild Lululemon Athletica’s positive relationship among current employees, measured by

retention rate among employees over the next year.

Strategies + Tactics

Strategy #1: Provide an open and safe communication method for current employees to voice

concerns, complaints, or suggestions with management

Tactics:

Create an anonymous suggestion box on Lululemon Athletica website that is

always open to employees

At the end of each month an employee­only message board will be updated with a

summary of the months comments, complaints or concerns

Updates will be non­region specific and will list changes made

from suggestions or reasonings behind management’s choice to not

change a certain protocol

Strategy #2: Brand Laurent Potdevin (LP) as the new CEO of Lululemon Athletica among

employees with a new route he plans to take the company.

Tactics:

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LP to hold a “Get to Know You” Skype session with each regional Lululemon

Branch to go over basic questions/concerns with both new management and the

new face of Lululemon Athletica

Skype Sessions will take place during the months of February­May

Employees are also invited to send in questions or concerns via a private

chat room that will be held during the skype conference

Strategy #3: Host a monthly, optional Local Lululemon staff/employees retreat that focuses on

bettering relationship among team members.

Tactics:

Local Lululemon staff will work with Lululemon company to plan and execute

retreats on a local level

*Note: No funding will be provided by Lululemon company for this event,

but suggestions for constructing events and inciting participation for

events will be expressed to Local Lululemon Branch

Monthly retreat will be optional and location, timing and fees will based on the

decisions made by local branch

Program suggestions will include retreats that focus on team building and

healthy, self improvement exercises through the use of hiking, meditation,

and/or yoga practices

Strategy #4: Social media campaign aimed at exploring and promoting reasons why employees

love the outdoors, meditation, adventure, etc. with #lovemylulu

Tactics:

Send out a company wide message to each store encouraging employees to tweet

and/or instagram cool hikes, waterfalls, and “adventurous” things they might be

doing while wearing Lululemon.

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Objective #3

Rebuild Lululemon Athletica’s positive relationship among current investors, measured by

retention rate among investors over the next year.

Strategies + Tactics

Strategy #1: Brand Laurent Potdevin (LP) as the new CEO of Lululemon Athletica among

investors with a new route he plans to take the company.

Tactics:

LP to hold a “Get to Know You” Skype session with investors who hold the top 5

largest shares of the company to go over basic questions/concerns with the new

face of Lululemon Athletica

Skype Sessions will take place during the months of February­May

Investors are also invited to send in questions or concerns via a private

chat room that will be held during the skype conference

Strategy #2: Brand Laurent Potdevin (LP) as the new CEO of Lululemon Athletica among

investors with a new route he plans to take the company.

Tactics:

Email a quarterly newsletter to investors regarding Lululemon’s current and

planned campaigns and events to keep them in the loop

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Measurement + Evaluation

Measurement #1

Evaluation: Evaluate the general opinion of Lululemon staff to towards their relationship with

Lululemon management on Lulunet.

Criteria: At least 90 percent of Lululemon staff respond completely to survey. Survey is given

out in the beginning of the campaign as well as 6 months in.

Tools: Email survey to current employees asking questions about general opinions towards

communication methods between staff and management. Ask logistical questions concerning

topics such as business/working hours and company climate (or environment). Questions should

be aimed at general concerns that staff would have to working environment in place by

management. Additionally, a box will be provided for anonymous comments, complaints, or

concerns.

Measurement #2

Evaluate: Evaluate opinion of Lululemon Ambassadors towards Local Lululemon branch and

Lululemon company.

Criteria: At least 65 percent of Lululemon Ambassadors invited to attend the focus group not

only attend but stay for the entire amount of time. Must verbally hear from at least 80 percent of

participants. Of those in attendance, at least 90 percent must have a verbal or written response to

focus group led discussion. Focus group must be conducted in a group discussion format with a

Lululemon moderator. Must be completed within one hour.

Tools: Conduct a bi­monthly focus group with Lululemon Ambassadors to address comments,

complaints or concerns that they might have with ambassador role or local branch facility. Focus

group questions will focus on the relationship between ambassadors and local Lululemon branch

and can include areas that the ambassadors would like to explore.

Measurement #3

Evaluate: Evaluate opinion held by customers towards local Lululemon store.

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Criteria: All customers will be told of online survey link that can be found on social media pages

as well as a link attached to customer's receipt. To target online customers we will send out an

email with link to survey within a week after they receive their online orders. This email will be

similar to Nordstrom’s process, a leading brand in customer service. This will allow us to gather

customer feedback about Lululemon’s online customer service as well as in the store.. At least

90 percent of customers aware of survey option. Our goal is to achieve 20 percent conclusion

rate of the survey.

Tools: Survey link will be printed on receipts handed to customers as well as a link on social

media pages starting in September and will last through till December. Survey will ask general

questions about customer satisfaction as well as a section for comments, complaints or concerns.

Measure traffic that comes through social media pages in regards to the survey option by using

tools such as Sprout Social and Google Analytics.

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Budget

*Campaign started at a zero budget

Event Item Quantity/Details Price Total

Shopping Sweepstakes Lululemon Gift

Card and Dinner for

two

$750 (Gift Card)

$75/head (dinner

approx.)

$900

Digital

Media

Campaign

Management

Employee

Wages

Campaigns

(#lovemylulu),

curating the

anonymous

suggestion box on

Lulunet, and

curating newsletters

are added to duties

of the current

Lululemon social

media team.

Salaried bonus $75,000

CEO Media

Assistant

Employee

Wages

Wage for employee

to assist and edit LP

in writing quarterly

newsletter to

investors and posts

to the company

blog, as well as

attend Q&A’s with

Salary $48,000

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media outlets with

LP.

Love All

Sizes

Plus size

mannequins

Featuring one plus

size mannequin in

all 254 Lululemon

locations.

$200/ea $50,800

Total $174,700

Timeline

Event\Month January February March April

CEO Skype Session

CEO Blog

Sweepstakes Prize

Open Forum for

Employees

Product Promotions

Ambassador Focus Group

Employee Survey

Skype Meeting with Local

Ambassadors

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Social Media Campaign

(@LuluListens,

#lovemylulu,

@LuluLaurent)

Event\ Month May June July August

CEO Skype Session

CEO Blog

Sweepstakes Prize

Open Forum for

employees

Product Promotions

Ambassador Focus Group

Employee Survey

Skype Meeting with Local

Ambassadors

Social Media Campaign

(@LuluListens,

#lovemylulu,

@LuluLaurent)

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Event\ Month September October November December

CEO Skype Meeting

CEO Blog

Sweepstakes Prize

Open Forum for employees

Product Promotions

Ambassador Focus Group

Employee Survey

Consumer Survey

Skype Meeting with Local

Ambassadors

Social Media Campaign

(@LuluListens,

#lovemylulu,

@LuluLaurent)

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Appendix

Instrument Design

Attitudinal Survey (For Staff)

Summary:

The following survey will be distributed at the start of the campaign. This will help gauge

current perceptions among Lululemon employees towards Lululemon staff as well as

improvement in areas of communication, working environment and company logistics (such as

hours and timing).

Introduction:

Thank you for choosing to take this survey on Lululemon. This survey was created in order to

get an understanding and views of current staff/employees towards management. Please answer

of the questions to the best of your ability and remember to complete the entire survey. The

survey should take about 5­10 minutes to complete. Answers will be kept confidential.

Instructions:

This survey consists of seven questions. There are three multiple choice and one optional short

answer. Please read each question carefully and choose the answer that best responds to the

question.

1. How long have you worked with Lululemon?

a. 0­6 months

b. 6 months­2 years

c. 2­4 years

d. 4 years +

e. Other:_______________________

2. What are your overall feelings towards your local Lululemon staff?

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a. Extremely satisfied

b. Somewhat satisfied

c. Neither Satisfied nor Unsatisfied

d. Somewhat unsatisfied

e. Extremely unsatisfied

f. Other:____________________________

3. What areas of your experience here at Lululemon are you most satisfied/unsatisfied with?

Please rank on a list of 1 (least satisfied) to 5 (most satisfied).

a. Company business hours:____

b. Communication between staff and management:____

i. Feelings/opinions are effectively communicated:____

ii. Suggestions and/or concerns are communicated and/or addressed:_____

iii. Complaints are addressed and/or resolved:___

c. Communication between you and other Lululemon staff/employee:____

i. Feelings/opinions are effectively communicated:____

ii. Suggestions and/or concerns are communicated and/or addressed:_____

iii. Complaints are addressed and/or resolved:___

d. Company climate/environment:____

i. Feel good about your work/role at the Lululemon store:____

ii. Feel a welcoming environment at work:____

4. Are there any other comments, complaints or concerns?

_____________________________________________________________________________

Thank you for taking time to complete our survey!

Instrument Design

Attitudinal Survey (For Customers)

Summary:

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The following survey will be distributed 9 months into the campaign. This will help gauge

current standings of Lululemon customers towards their Lululemon company. Survey link will

be printed on receipts handed to customers as well as a link on social media pages starting in

September and will last till December. Survey will ask general questions about customer

satisfaction as well as a section for comments, complaints or concerns.

Introduction:

Thank you for choosing to take this survey on Lululemon. This survey was created in order to

get an understanding and views of the general public towards their Local Lululemon Branch.

Please answer of the questions to the best of your ability and remember to complete the entire

survey. The survey should take about 5­10 minutes to complete. Your answers will be kept

confidential.

Instructions:

This survey consists of five questions. There are four multiple choice and one optional short

answer. Please read each question carefully and choose the answer that best responds to the

question.

1. How long have you shopped at Lululemon?

a. 0­3 months

b. 3­6 months

c. 6 months­ 1 year

d. 1 year +

2. How has your experience been shopping at your local Lululemon Athletica Store, with 5

being completely positive and 1 being completely negative?

1 2 3 4 5

3. What is your current feeling towards your last experience at Lululemon, with 5 being

completely positive and 1 being completely negative?

1 2 3 4 5

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4. How informed are you of Lululemon’s giveaways, sweepstakes and/or sales events?

1 2 3 4 5

5. Are there any other comments you would like to share with the staff here at Lululemon?

_______________________________________________________________________

Thank you for taking time to complete our survey!

Results of Online Survey:

We distributed the attitudinal survey on social media at the start of our campaign to gather

research on the current attitudes customers face in regards to Lululemon. We gathered 62

responses of women aged 18­22. The results are shown below.

Question 1 results revealed 77.42 percent have been shopping with Lululemon for more than a

year while 12.9 percent were new customers. These results show that many of Lululemon’s

customers are loyal as they have been continually shopping at Lululemon for more than a year.

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When asking about their current attitude toward Lululemon as a whole majority of current

customers have a positive experience with Lululemon. With 24.19 percent rating their experience

as completely positive and another 44.39 rating positive. Only two respondents had a negative

attitude toward Lululemon. This data reveals that majority of current customers have a positive

opinion toward Lululemon despite recent public relations issues.

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Question 3 asked current customers about their feelings in regards to their last experience at a

Lululemon store. Over 80% of respondents revealed to have had a positive experience at their

last visit. Only 2 respondents shared to have a negative experience. This data reveals majority of

current customers are pleased with Lululemon’s customer service in the store.

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The next question asked current customers how informed they were in regards to Lululemon’s in

store events. The results revealed over 70 percent of respondents were not aware of the

giveaways and in store sales. This data shows that many current customers are not aware of the

benefits local Lululemon branches offer. From this information Lululemon can work on

promoting their in store events to attract current customers to the stores.

Instrument Design

Focus Group

Summary

Focus group will be held between Lululemon Ambassadors and Lululemon management.

Purpose of focus group is to gauge general feelings of ambassadors towards Local Lululemon

branch and Lululemon company. This will open communication between corporate and

ambassadors. Ambassador’s commentary will help to improve other aspects of the company

including faults in the product and faults they see as consumers and employees of Lululemon.

Focus group will be conducted in a group discussion format with a Lululemon moderator(s).

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Introduction:

Hello and thank you for coming to our focus group study this evening. We are here to “air out”

and questions or concerns that you [Lululemon Ambassadors] may have as well as to work on

areas in our relationship that we may need to strengthen or improve. Additionally, at this time we

would really like to get a better feeling of the ways in which we here at Lululemon can make

your ambassadorship a mutually benefitting experience. This should only take us about an hour

to complete. I [local branch manager] as well as “X” [local branch supervisor] will be here to

moderate the discussion but feel free to jump in at anytime.

Questions:

1. How were the past two weeks for you?

a. How many customers did you interact with?

b. What were some notable takeaways?

2. What is the hardest part of your week?

a. What is the easiest part?

3. How can we help to make your experience with us better?

4. Do you have any other comments or concerns?

Presentation Feedback

In regards to Dr. Honda’s concerns surrounding our social media campaigns, we understand that

social media is a high risk­high reward scenario. We plan to combat the possible hijacking of

@LuluListens and #lovemylulu by maintaining a positive and open communication structure

between the company and its public. We will respond in a considerate manner while reiterating

key Lululemon messages in response to negative comments we may receive through these

campaigns. Each scenario will need to be considered independently and moved off of social

media channels in the case that the issue continues to remain unresolved.

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Works Cited

"Lululemon Athletica: Our Company History." Lululemon Athletica. Web. 18 Nov. 2014.

http://www.lululemon.com/about/history

“Lululemon Athletica Inc (LULU) Snapshot.” Businessweek.com. Web. 18 Nov.

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=LULU

"Creative Concepts Shares How Lululemon Gets Multi­Platform Content Strategy

Right."Creative Concepts.com. Web. 18 Nov. 2014.

http://creative­conceptsllc.com/lululemon­multiplatform­content­strategy/

Harris, Rebecca. "Lululemon Founder Chip Wilson Plunges Company into PR Crisis.”

Marketing Magazine. Web. 18 Nov. 2014.

http://www.marketingmag.ca/advertising/lululemon­founder­chip­wilson­plunges­compa

ny­into­pr­crisis­93637

Lutz, Ashley. "You Really Do Have To 'Drink The Kool­Aid' To Succeed At Lululemon."

Business Insider. Web. 18 Nov. 2014.

http://www.businessinsider.com/what­its­like­to­work­at­lululemon­2013­2?op=1

McIntyre, Douglas A. "Nike Crushes Adidas in Global Sales." 247wallst.com. Web. 18 Nov.

2014.

http://247wallst.com/consumer­products/2014/06/27/nike­crushes­adidas­in­global­sal

es/

"Lululemon Athletica Inc. Announces Fourth Quarter and Full Year Fiscal 2013 Results.

Lululemon Athletica: Release Date. 27 Mar. 2014. Web. 18 Nov. 2014.

http://investor.lululemon.com/releasedetail.cfm?ReleaseID=835961

"Under Armour Reports Fourth Quarter Net Revenues Growth of 35% and Full Year Net

Revenues Growth of 27%; Raises Full Year 2014 Outlook." Under Armour Biz. 30 Jan.

2014. Web. 18 Nov. 2014.

http://www.uabiz.com/releasedetail.cfm?ReleaseID=821996

Cutt, Julia and Weil, Mary. “Lululemon Athletica Inc.­­Moving Forward With Humility.” Richard

Ivey School of Business Foundation. Web. 18 Nov. 2014

Grant, Alexis. “What to Charge for Social Media Work (as a Freelancer or Consultant).” Alexis

Grant. 27 Sept. 2012. Web. 18 Nov. 2014

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http://alexisgrant.com/2012/09/27/what­to­charge­for­social­media­work­as­a­freelance

r­or­consultant/

Instrument Design: Attitudinal Survey (For Customers) Link:

https://www.surveymonkey.com/s/RXNRPQF

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