2. BACKGROUND
Founded in Vancouver in 1998 by Dennis Wilson
Specialize in technical athletic apparel for yoga, running, walking, dancing, cross-
fitness, and Pilates
Every Lululemon location has strong ties to local community
Goal= “Train our people so well that they could in fact positively influence their
families, communities and the people walking into our stores”
Lululemon encourages healthy lifestyle choices
Having set goals = what the Lululemon culture is all about
3. PRODUCT ITSELF
High quality seaming and stitching
High quality fabric and technologies
• Luon®, Swift and Luxtreme™
• 6 Natural Blends
• Mesh and COOLMAX®
4. PRODUCT
The clothes will be used more for running than yoga
People in London wear more muted colors in the fall and winter
In the spring and summer people start wearing colors
Need to adapt the tags to include U.S., UK and Canadian sizes
6. 5 REASONS FOR SUCCESS
1. Has developed a social media presence through various
platforms
2. Connects through establishing relationships with customers.
3. Use of real people to promote products
4. Welcomes and responds to public feedback
5. Blog has significant space dedicated to educating customers about
the yoga lifestyle
7. DEMOGRAPHICS
Temperature= Moderate and more than one-half of the days are
overcast
Very diverse: 59.8% White, 20.9% Asian, 15.6% Black, 6.6%
Indian
London’s population is expected to exceed 9 million by 2031
Population= younger than rest of the UK by 2/3 and 64% are
aged under 44
8. STATISTICS
Walking activity in London
Travel patterns= 31% of trips in London are made on foot
In outer London the walk share of trips is 64% higher for people
without a car or household with just 1 car in the family
9. TARGET MARKET
Londoners that like to buy and spend in high end luxury boutiques
Women ages= 25-50
High disposable income
Fashion forward/Trendy
10. DISPOSABLE INCOME
London’s economy is outperforming the rest of UK by 12.4%
London contributed 21.9% of UK’s output
Has the highest household income per head (nearly 30 per cent
higher than UK average)
Inner London’s average highest disposable income is at £33,323
11. PRICING STRATEGY
Currently use Value Added Pricing, they do not cut costs to make
lower quality products
Add extra features ex: Adjustable straps to differentiate themselves
from that of competitors
Prestigious and exclusive product in their category/ not found in
every city which adds to exclusivity
13. PRICING STRATEGY CONT’D
London currency is stronger than U.S.
Average dollar value compared to pound in 2012 $1.52 = £1
Add 35-45% to prices to account for higher maintenance,
operation, and facility costs in London
Decision: keep prices stable regardless of daily exchange rate
fluctuations
http://www.x-rates.com/graph/?from=GBP&to=USD
15. STORE LOCATION
London has the highest disposable income per household
Narrowed it down to 2 locations:
1) Chelsea’s Kings Road
2) Regent Street
16. PROMOTION STRATEGY
Juice Parties
Free Yoga classes, and information sessions
KEY= social media:
http://www.youtube.com/watch?v=QUF36chCPuA
Get “Made in Chelsea” celebrities to promote products
Touch Screen TVs
