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BRAND ANALYSIS REPORT
Lululemon Athletica Inc. 1 I.EXECUTIVE SUMMARYThe brand Lululemon is a well-known lifestyle athleisure brand that has a nichefollowing of its own and has primarily targeted women as its consumer base. Its brandstrategy has essentially been along the lines of it standing as a premium brand offeringinnovative products while its marketing has essentially been very grassroots, with a heavyemphasis on word of mouth. Even though its manufacturing and supply chain has fallacies,the brand has managed to sustain its position as a leader in its niche segment of thebroader athletic apparel market. The sheer impact of the see-through yoga pants scandal in2013 greatly disrupted the positive sentiments of the brand and dissuaded many of itsloyal customers. While public relation campaigns have done the rounds to tackle thebacklash, the brand is slowly losing its popularity in the North American market, but ismaking up for it by showing great growth exponentially. This has shown the heavy relianceon the company’s brand image for its success. While strong revenue growth in recent yearshas shown that brand image is not at rock bottom by any means, the fragility of this brandloyalty is something the brand should be wary of in its future moves.Its recent campaign inherently has yoga as the epicenter of all the activities one doesand connects the need for mental and physical health so as to perform other activities. Thebrand is also challenging the perceived notion of masculinity through its rolled-outcampaign that targets male audience. With the growing emergence men taking to consciousdecisions regarding lifestyle and health, Lululemon has rightfully tapped into this marketand is cultivating a name for itself.The brand would greatly benefit by building a sub-brand that tailors products in a mencentric fashion, thus backing it with the brand name yet bringing it forward as a solution tomen’s athleisure needs. Lululemon will be able to further its tapping into the male athleticwear market, while segmenting itself in a way that does not hinder Lululemon’s brand fromfocusing on what the main brand does well. In essence, this will help create a net increasein brand value and market share and is the recommended strategy for Lululemon to pursuefurther growth and address the need to strengthen its brand image.II.INTRODUCTION & PROBLEM STATEMENTIn today’s competitive world where products and services are different in only theslightest of ways, marketing has now become a strategy. As argued by Professor NirajDawar of Harvard University “if you prefer not to be compared to other brands, then you’rebetter off marketing, distributing…your products in ways that avoid familiar cues tocustomers"1. No company can reach their full potential without proper brand perception.