Lululemon Athletica Plan - 463189598336618136.weebly.com fileSWOT Analysis Problem or ... Compared...
Transcript of Lululemon Athletica Plan - 463189598336618136.weebly.com fileSWOT Analysis Problem or ... Compared...
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
Page 1
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
Over 712K followers on
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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