Upload
megan-schick
View
331
Download
2
Embed Size (px)
Citation preview
A Market Research Study by: Suzan Genc, Jasmine Smith,Megan Schick, Steve Scheffler, Tyler Forberg
IntroductionFounded in 1998
- “A”-thletically hip
November 2000- Kitsilano, Vancouver, BC
Design/Yoga studio - community hub
“Lululemon is a company where dreams come to fruition”
Background●March 2013
- Quality-control recall●2009-2013 - CEO Remarks
- Lululemon pronunciation- The pill to blame for divorce- Women’s bodies to blame for recall
BackgroundControversial CEO -
Chip Wilson- “Frankly, some women’s bodies
just don’t actually work for the yoga pants”
Source: Business Insider
- Doesn’t even make sizes >12
- Alpha Dog
“Sad for the repercussions of his action”-
http://www.msnbc.com/melissa-harris-perry/lululemon-founder-steps-down
Market Fluctuation
Competitor Market Fluctuation
Under Armour Nike
PurposeTo explore the attitudes of current and
prospective Lululemon consumers in the Chicago market in response to the recent negative publicity
Additional information will be obtained on:How consumers view Lululemon in relation to
competitorsImportance of relevant attributes to consumers
Focus Group MethodPrimary Data Collection MethodFocus group lasted around 2 hoursCreated discussion guide around marketing
problemAsked by 2 moderators and probed for
additional questions if necessary
Focus Group Sample3 focus group participantsAll participants wear athletic wear and have
heard of LululemonOne was a current Lululemon customerThe focus group was conducted at the DePaul
library in April 2015
Quantitative Survey MethodMost surveys were conducted in person or on
the phone We received both qualitative and quantitative
data from our findings
Quantitative Survey SampleSurveyed 113 people
102 current Lulu customers (have shopped there at least once in the past year)
11 non-customersHalf interviewer-administered
surveysHalf self-administered surveys
Focus Group Findings
All of focus group participants agree that Lululemon is a brand for trendy moms
• “She’s cool so she’s probably driving a jeep, you know those cool sleek ones”
• “She’s a cardio active mom”• “She likes to drink tea, lots of tea”
Focus Group FindingsMajority of focus group participants shop sales and price is a deciding factor in purchases
“If I stumble upon a good deal I will buy them”
Quantitative FindingsWord Association and Lululemon
Quantitative Findings Word Association and Lulu’s Competition
Quantitative Findings Word Association and Lulu’s Competition
Quantitative Findings People who do shop at Lululemon don’t do so very frequently
Quantitative Findings
Most Lululemon customers don’t spend any more than $150 per visit
Since visits are infrequent, this doesn’t make for high revenue
Quantitative Findings
According to Lulu customers, the best things about Lulu are:1. Style2. Quality3. Comfort
Quantitative Findings
Most important attributes among everyone:1. Comfortable2. Good fit3. Well-made
Quantitative Findings
Lululemon is comparable to top competitors
Poor score on brand attributes does not account for drop in sales
Quantitative Findings
Lululemon is most preferred and the 2nd most common favorite brand among our sample
Bad publicity did not have a very strong negative impact on current Lulu customers
Quantitative Findings81% of customers
usually buy leggings or yoga pants at Lululemon
Do these customers know about the bad publicity?
Quantitative Findings Most respondents hadn’t heard anything about Lulu in the media
Of those who did:● 54% of respondents
heard about Lulu’s see-through legging problem
● 25% of respondents heard about the CEO body shaming women
● Only 4% have heard that Lulu is growing in popularity
Quantitative FindingsReasonable price is
the 5th most important attribute of the 10 attributes
People view Lulu as being overpriced
Summary of FindingsLululemon customers perceive Lulu as having
desirable productscomfortable, good fit, and well-made relative to top
competitorsAfter the bad publicity, Lulu customers still
prefer Lulu as one of their top athletic wear brands
Summary of FindingsLululemon customers do not spend very much
in relation to how frequently they make purchases → Lulu counts on sales from new customers
Potential customers perceive Lulu to be overpriced, preppy, and prissy
Over 80% of people who heard about Lulu in the media heard something negative
Summary of FindingsIf Lululemon wants new customers, it should
look into:Lowering the priceOffering salesChanging perceptions of who wears Lululemon
ImplicationsWe recommend further research on:
Number of new Lulu customers before, during, and after the bad publicity
Why non-customers have never tried LuluPercentage of non-customers who were exposed to
Lulu’s bad publicity and how they view the brandThe effects of a lower price and offering sales on
current customers and potential customers
Questions?
Bibliographyhttp://www.businessinsider.com/outrageous-remarks-by-lululemon-founder-chip-wilson-2013-12http://thecolbertreport.cc.com/videos/12pe6a/alpha-dog-of-the-week---chip-wilsonhttp://finance.yahoo.com/q/hp?s=LULU&a=00&b=27&c=2012&d=05&e=10&f=2015&g=mhttp://www.businessinsider.com/factors-that-led-to-lululemon-decline-2014-1