1.lululemon: A Brand Audit Presented By:Avenger Market Research Inc.

2. Overview Brand Strategy and Positioning Product, Price, Placement, Promotion Brand Survey Findings Recommendations 3. Brand Strategy 4. Competitive Strength 5. Competitive Strength 6. Product 7. Product Competitive Strength Assessment (Rating scale: 1 = very weak; 10 = very strong)lululemonGap Athleta Lucy Activewear Weighted Weighted WeightedScore ScoreScoreWeightScoreScoreScoreProductQuality0.2510 2.57 1.75 61.05Differentiation0.13 0.34 0.44 0.4Image0.15 8 1.27 1.05 50.75 8. Placement 9. Placement Competitive Strength Assessment (Rating scale: 1 = very weak; 10 = very strong)lululemonGap Athleta Lucy Activewear Weighted Weighted WeightedScore ScoreScoreWeightScoreScoreScoreProductQuality0.2510 2.57 1.75 61.05Differentiation0.13 0.34 0.44 0.4Image0.15 8 1.27 1.05 50.75PlaceDistribution 0.15 50.757 0.35 50.75 10. Price 11. PriceCompetitive Strength Assessment(Rating scale: 1 = very weak; 10 = very strong) LululemonGap Athleta Lucy ActivewearWeighted Weighted Weighted Score ScoreScore WeightScoreScoreScoreProductQuality 0.2510 2.57 1.75 61.05Differentiation 0.13 0.34 0.44 0.4Image 0.15 8 1.27 1.05 50.75PlaceDistribution0.15 50.757 0.35 50.75Price0.15 71.056 0.96 0.9Relative Cost Position 12. Promotion 13. Promotion 14. Promotion 15. PromotionCompetitive Strength Assessment(Rating scale: 1 = very weak; 10 = very strong) lululemonGap Athleta Lucy ActivewearWeighted Weighted Weighted Score ScoreScore WeightScoreScoreScoreProductQuality 0.2510 2.57 1.75 61.05Differentiation 0.13 0.34 0.44 0.4Image 0.15 8 1.27 1.05 50.75PlaceDistribution0.15 50.757 0.35 50.75Price0.15 71.056 0.96 0.9Relative Cost PositionPromotionAdvertising 0.05 30.157 0.35 50.25Sales Force 0.05 8 0.46 0.34 0.2Sales Promotions0.12 0.27 0.77 0.7 16. Analysis ResultsCompetitive Strength Assessment(Rating scale: 1 = very weak; 10 = very strong) lululemonGap Athleta Lucy ActivewearWeighted Weighted Weighted Score ScoreScore WeightScoreScoreScoreProductQuality 0.2510 2.57 1.75 61.05Differentiation 0.13 0.34 0.44 0.4Image 0.15 8 1.27 1.05 50.75PlaceDistribution0.15 50.757 0.35 50.75Price0.15 71.056 0.96 0.9Relative Cost PositionPromotionAdvertising 0.05 30.157 0.35 50.25Sales Force 0.05 8 0.46 0.34 0.2Sales Promotions0.12 0.27 0.77 0.7Totals 1075.8 4.85 17. Brand Survey 18. Survey ResultsWhere did you first hear about lululemon? WindowShopping, 11%Gym, 5%Online, 2%Yoga Class, 2%Word of Mouth, 81% 19. Survey ResultsHow often do you shop at lululemon?Every 6months, 25%Never, 27%Once a month, 7%Once a year, 37%Every 3 months, 5% 20. Survey ResultsWhy do you shop at lululemon? Do Not Shop, 23%Fashion, 16%Quality, 61% 21. Survey Results What does lululemon stand for?Healthyliving, 20% Fashion/Fit, 24%Yoga, 14%Quality , 35%Expensive clothing, 4%Corporategreed, 2% 22. Survey ResultsWhat is lululemons greatest strength?Branding, 14%Fit/Fabrics, 29%Product line, 12% Quality, 34% Educationservice, 7% Innovation, 3% 23. Survey ResultsWhat is lululemons greatest weakness? No mensAnnoying sales clothes, 11%staff, 11% Style saturation, 9%Poor quality/Fit, 7%Price, 53% Not enough stores, 4% Inventory changes , 5% 24. Survey ResultsHow satisfied are you with lululemon? Satisfied, 28%Indifferent, 25% Very Satisfied, 47% 25. Findings Strong alignment of 4 Ps Integrated marketing Quality and innovation 26. Recommendation 1 Differentiate and rebrand Lack of connection with men Too feminine Ivviva for kids Relate to mens needs Running and biking 27. Recommendation 2 Restrain expansion Plans for more than 250 stores Expansion threatens culture Cult and grassroots appeal Impact to quality 28. RecognitionsAvenger Market Research Inc. Kris HeadJohn HouseSarah Iacoe Corey Halford Pamela Kamphuis- FinniganRoyal Roads UniversityMBA Program2012 Cohort B Team 1