Digital Strategy critique for MKTG 7546

1. Lauren Byrd
MKTG 7546
Digital Strategy
Critique

2. Lululemon Athletica was founded in 1998 by Chip
Wilson.
Lululemon opened its first store in November 2000 in
Kitsilano, a beach area of Vancouver, BC.
For the first quarter of fiscal 2014, Lululemon
expected net revenue to be in the range of $377
million to $382 million and the company ended the
2014 fourth quarter on February 2, 2014 with 254
stores in North America and Australia.
About/History

3. SWOT

4. Direct Competitors
Nike
Adidas
Fabletics
Athleta
Under Armour
Indirect Competitors
J. Crew
Urban Outfitters
GAP
American Apparel
Competitor Information
Strengths
Strong global brand
Lots of celebrity/athlete
endorsements
Swoosh known worldwide
Weaknesses
Labor/ factory conditions
Can be expensive at full price
Online prices can be high
compared to sales in stores
Opportunities
Fashion forward clothes,
new yoga line
Strong social media presence
for influence
Threats
Very competitive brands in
athletic gear, tennis shoes, etc.
Fake imitations and replicas
sold worldwide
Nike

5. Lululemon embraced
see through yoga pant
scandal & posted ad to
website and social
media after Jimmy
Kimmel commercial
Jimmy Kimmel
Anything new?
https://www.youtube.com/
watch?v=hZkSFhfL-hM

6. Brand loyalty through community
Experience = drive consumer base
Grassroots marketing approach
Rely on community for promotion through word-of-mouth
Website for selling clothing
Each store has its own personal FB page to promote community events
Social media – promote healthy lifestyles
Facebook
Twitter
Instagram
Pinterest
YouTube
Shit Yogis Say
Previews of Clothing
Current digital marketing
practices

7. Facebook
Lululemon Social Media

8. Instagram
Social Media

9. Facebook page (if only Lululemon is searched, the
official Facebook page is not shown, it will only come
up if the words ‘Athletica’ are also included in the
search)
Facebook Confusion?

10. A larger advertising strategy should be formed
More visibility online
Promotion Strategies
Discounts, Loyalty program
Social media should attract more than one segment
Different videos & pictures that aren’t just women and
yoga
Respond to customers with complaints & show that it
has been resolved on website
Executive Summary

11. Be more searchable with an encompassing online
presence
Become more segmented to other age and gender
groups in social media and marketing efforts
Break stereotypes that Lululemon is just yoga apparel
online and in stores, and improve customer relations
and feedback on the website
Increase sales and loyal customers
Goals and Strategies

12. Online advertising
Google ads, Facebook ads, Banner ads
Fix search name on Facebook page
Personal store FB pages get confusing and only some
personal stores manage Twitter accounts
Good to connect with other stores but need to stem
off of main page
Tactics

13. Break gender/age/activity stereotypes
Show videos/pictures of people using/wearing
Lululemon in different activities on social media other
than just yoga and use models that are various ages and
gender
Promote young kids and men more on social media
and web pages
New youth line – Ivivva (PROMOTE IT)
More Tactics

14. Create an app
Om finder is a yoga finder tool created by Lululemon but
the store does not have its own app
Link app with loyalty program
Respond to quality issues with answers and refunds
Wunder Under pants are receiving bad reviews on the
website
In order to get rid of these reviews, people must be
refunded if the pants are not of good quality
More Tactics

15. Om Finder App

16. Product Reviews

17. Loyalty Program
Loyalty program
Marketed in stores, websites, and social media. Information will
be given by staff to customers during the purchase
10 credit points will be earned for every $100 spent, when
reaching 100 credit points a gift is given. The gift could be
merchandise or perhaps a free fitness class at a participating gym,
workout, or yoga studio.
Quarterly discounts
Weekly updates on new products
Keep expanding product line
More promotion offers across the wide range of stores
Allow engagement and ideas from community and not just
ambassadors
More Tactics

18. Sales growth, operational growth, and product innovation
are all KPI’s that would best demonstrate a good digital
marketing performance
Hootsuite
Google Analytics
Monitor social media accounts
Monitor website for product reviews
Measurement/Metrics

19. Compare Rate of Investment (ROI) before and after
the marketing strategy implementation.
Compare the customer engagement by viewing the
number of tweets, Facebook views, etc. logged
compared to the past. Increased traffic to the website
should also increase.
View Google analytics to see if traffic to the site has
increased since the marketing strategies have
launched.
Measurement/Metrics

20. More online advertising
Men & children used more in ads to break
stereotypes
Product reviews on website resolved
Loyalty program, app, better customer purchasing
online and in store
Summary

21. About Us. (n.d.). our history. Retrieved May 1, 2014, from http://www.lululemon.com/about/history
lululemon athletica inc. announces fourth quarter and full year fiscal 2013 results. (2014, March 27).
lululemon athletica inc. Announces Fourth Quarter and Full Year Fiscal 2013 Results
(NASDAQ:LULU). Retrieved May 1, 2014, from
http://investor.lululemon.com/releasedetail.cfm?ReleaseID=835961
Lutz, A. (2013, March 20). 15 Hot Brands Vying To Be The Next Lululemon. Business Insider.
Retrieved May 1, 2014, from http://www.businessinsider.com/hot-brands-vying-to-be-the-next-
lululemon-2013-3?op=1#ixzz30nDbJUIi
University of Oregon. Lululemon Investment Thesis. (2012, April 17). . Retrieved May 1, 2014, from
http://uoinvestmentgroup.org/wp-content/uploads/2012/04/LULU1.pdf
Walker, R. (2009, July 25). Marketing Pose. The New York Times. Retrieved May 1, 2014, from
http://www.nytimes.com/2009/07/26/magazine/26FOB-consumed-t.html?_r=0
William Blair's Emerging Growth Stock Conference. (n.d.). webcasts, events & presentations.
Retrieved May 1, 2014, from http://investor.lululemon.com/events.cfm
http://finance.yahoo.com/q/co?s=LULU+Competitors
References