Marketing Plan

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Tulane University *

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Marketing

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Feb 20, 2024

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Lululemon Men’s Performance Campaign Allison Medina, Loreli Cabrera, Jose Daniel Hernandez

Table of Contents Who We Are A.Company Intro……………………………………………… 3 Where We Are Going A.Competitive Landscape…………………………………….. 4 B.SWOT Analysis……………………………………………. 5 C.Objectives/KPIs…………………………………………….. 9 How We Will Get There A.Marketing Mix 1……..…………………………………… 11 B.Marketing Mix 2………………………………………….. 12 C.Execution Timeline……………………………………….. 14 D.Budget…………………………………………………….. 15 E. Metrics……………………………………………………. 17

Who We Are Lululemon Athletica ( https://info.lululemon.com/about ), commonly known as Lululemon, is a leading athletic apparel company that specializes in yoga and workout clothing, as well as accessories. Founded in 1998 by Chip Wilson, Lululemon has grown to emphasize on promoting an active and healthy lifestyle. Lululemon’s mission statement is “to elevate the world from mediocrity to greatness” and their vision statement is “to be the experiment brand that ignites a community of people living the sweat life through sweat, grow and connect”. The Lululemon brand focuses on health, wellness, and movement rather than just sports fashion. The company operates through a combination of physical stores and e-commerce platforms, b2c. Lululemon currently has an extensive product line-up but this was not always the case. Originally, their product line-up was solely focused on yoga wear. This included yoga pants, yoga leggings, yoga tops, yoga mats, and yoga accessories. Today Lululemon offers activewear and accessories for a variety of different sports aside from Yoga such as dance, golf, running, strength training, tennis, and hiking. Lululemon also began releasing products meant for casual daily wear such as cardigans, shirts, and dress pants. While Lululemon has been able to expand their product line-up, there is still a significant difference between the options available for men and women. The women’s lines have wider product selections with a larger variety of color and pattern options. People describe Lululemon as an innovative lifestyle premium brand. Despite Lululemon’s high prices compared to their competitors, they have established a large loyal customer base that makes up the majority of the athletic wear market. Every Thursday Lululemon either restocks their current products or releases new products in order to meet

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constant demand for these items. Due to their constant product innovation they have been able to acquire their loyal customer base despite their high prices. One reason Lululemon is popular is because they have a variety of product options that can fit anyone’s lifestyle. This brand and product angle allows them to own different types of consumers within the athletic wear market. Where Are We Going Competitive Landscape The athletic wear industry is heavily saturated. Although there is a wide variety of market players, the industry is known for its ability to innovate in response to rapid changes in trends. One example is the athleisure trend. The athleisure trend involves wearing athletic-style clothing as day wear. In response to this trend, athletic apparel market players were releasing casual athleisure lines that focus on functional comfort that is seen in traditional sports wear. Many athletic apparel brands are currently focusing on sustainability by using eco-friendly materials, reducing waste, and adopting more ethical manufacturing practices in response to consumers trying to make eco-conscious decisions. Athleisure technology, which LuluLemon is known for producing, is beginning to play a significant role in the athletic apparel industry. LuluLemon is known for the development of their Luon and Nulu fabrics, of which each have their own properties that contribute to the functionality and comfort of LuluLemon products. Aside from consistently introducing new technology, recently athletic wear brands began to cater to a wider range of body types. One brand known for this is Fabletics, they used their inclusive brand angle to enter the saturated athletic wear market and stand apart from their biggest competitor, Lululemon. Brands now offer

more inclusive size ranges and there is also a focus on including different types of models and athletes in their campaigns. In order to stand out in a saturated market LuluLemon needs to do more than innovate because ideas and products are constantly copied. Innovation helps them stay ahead but branding is what helps a company stand out. LuluLemon branding revolves around empowering individuals to lead active and balanced lifestyles. Their brand consistently communicates its core values of quality, innovation, and functionality through their high-performance activewear, accessories, and community engagement programs. Swot Analysis

Key Strengths Strong brand recognition: Lululemon has heavily invested in marketing and brand awareness through partnerships and ambassador programs that have given the products and brand a high level of visibility. Customer Loyalty: Lululemon has fostered loyalty through several strategies including investing in engaging community experiences and sustainable and ethical practices which are valued by the customers. Retail Store Customer Experience : The in-store retail experience at Lululemon is known for its unique and inviting atmosphere where staff, called LuluLemon Educators, are helpful and knowledgeable. Weaknesses: Limited product range: While renowned for the yoga and athletic wear, the product range is narrow when compared to other competitors who offer greater variety with accessories, outerwear and much more. Limited Product Accessibility: While the price point has been widely accepted due to premium quality products, this does limit the product accessibility to more financially conservative demographics. Supply chain risks: Lululemon sorts their materials primarily from Asian suppliers which exposes them to unforeseen complications such as delivery delays and geopolitical tensions.

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Opportunities: Male market growth: While Lululemon has focused primarily on the women's segment, more focus could be placed on product development and market strategies for men. International Expansion: Lululemon is most well known and demanded in the US, however international markets in Europe and Asia offer opportunity to capitalize on growing demands. E-commerce Customer Experiences: While known for the in-store retail experience, more efforts could go towards providing the same unique experience online for site shoppers. Website optimization and engagement initiatives could make the online shopping experience just as attractive. Barriers: Intense Competition/ Saturated Market: The yoga and athletic wear market is a very saturated red ocean where there is high demand and supply options are just as prevalent. Counterfeit products: The visibility of Lululemon products allows for cheaper counterfeit options that very closely resemble the pieces for a fraction of the original price. Shifting customer preferences: The sudden shifts of fashion leave the brand vulnerable to unsold inventory and passing trends.

Recognizing that the athletic wear industry is made up of a dynamic and saturated market, the plan is for LuluLemon to tap into the male segment of the athletic wear market. While athletic wear brands, including LuluLemon, already have existing male product lines they are not as expansive as the lines created and produced for female consumers. Not only are there limited color and pattern options, there are significantly less products available that are tailored towards male consumers. The main goal in launching a new campaign is to increase loyalty within the existing LuluLemon male consumers and reach an entirely new male audience of potential customers. In order to capture the attention and interests of the male audience LuluLemon will have to introduce more product options and variations, as well as introduce new sports categories and athleisure options. In order for the campaign to have the intended impact Lululemon must understand the male consumer, highlight male athletes or influencers, tailor messaging to male consumers, and create engaging content. To move forward with creating a campaign, Lululemon must conduct thorough market research to gain insights into male consumers' preferences, needs, and shopping behaviors related to athletic apparel. Collaborating with male athletes or influencers who embody Lululemon's brand values and promote the brand's men's collection through social media and other platforms is crucial for the campaign. Lululemon will need to create campaign messaging that highlights the unique benefits of Lululemon's products for men, such as performance and fit. Creating engaging and relatable content featuring male athletes or customers sharing their experiences with Lululemon's products will increase campaign visibility.

Objectives/KPIs In order to provide a clearer understanding of how to set specific and measurable goals for their marketing campaigns and sales efforts, Lululemon needs to establish their objectives/KPI’s. Two objectives that LuluLemon will need to accomplish are creating the men’s activewear campaign and effectively reaching the target audience. In order to measure the success of these objectives, certain key performance indicators will be tracked throughout the duration of this campaign. The marketing and sales teams involved in this campaign will have their own set of KPI’s. This allows for a wider gauge in all aspects in regards to the performance of this campaign and its effectiveness. The KPI’s listed for the marketing team will be to follow the Conversion rate, Customer acquisition, Website traffic, Customer retention, Social media engagement and Email Open rate. As for the Sales team, they will be involved in watching the Sales growth rate, Number of transactions, and Customer traffic. Within all of these KPI’s there must be minimum expectations and goals set that will be enforced amongst the teams in order to ensure the success of this campaign. Listed below is a chart of the expectations of these indicators as the campaign progresses throughout the months.

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3 Months 1. Acquire at least 2,000 new sales in the first three months through various email and social media marketing campaigns. 2. Conversion rate of 5% to 7% for website visitors to purchase products from the new male activewear line. 3. Strive for a retention rate of at least 80%. 6 Months 1. Gain an additional 2,500 to 3,000 new customers, using a combination of influencer partnerships and social media marketing. 2. Improve the conversion rate to 8% to 10%. 3. Achieve a retention rate of 85% to foster loyalty among male customers. 12 Months 1. Achieve a total male consumer population of 10,000, implementing content marketing to attract website traffic. 2. Reach a conversion rate of 12% to 15%. 3. Maintain a retention rate of 90%. Without a doubt, there has to be efforts being made in order to manage KPI’s and keep them on track to meet deadlines. One of the most effective ways is going to be setting targets and benchmarks which was depicted earlier in the marketing plan. These targets and benchmarks have to be tracked through data collection and with the development of AI driven technology, data capture has never been easier. The integrity of data is crucial in understanding the success of this campaign. There is no guarantee of benchmarks or targets being met and because of that it is

always important to understand any lagging indicators and the reason for falling short of these predetermined expectations. If these ideas are met, the odds of having a successful campaign will move extremely high and the possibility of continuing campaigns like this will soon follow. How Will We Get There Marketing Mix 1 LuluLemon’s strategy is not to focus solely on one product but on a campaign that highlights an entire line of men’s products. In this way, LuluLemon can target a larger male audience that holds individual, differing interests. This line will include products made for golfers, tennis players, and all athletes alike. Most importantly, it will include leisure and work where that can help target a male audience who prefers daily wear rather than athletic wear. In order to properly price the products in the campaign, the LuluLemon team will need to get a better understanding of their costs, the market, and what value this line brings to current and potential consumers. With regards to costs, the team will need to calculate how much it costs to produce, deliver, and keep an inventory of their new products. Doing market research is crucial to understanding if there are any competitors with similar products on the market. If this is the case, LuluLemon will have to enter the market at a lower price compared to their other products. Considering these factors, the way LuluLemon brands their campaign and attaches value to it can potentially allow them to come in at a higher price. Even with similar products on the market, LuluLemon can position their campaign to focus on how these products not only

enhance performance but also lifestyle. LuluLemon’s lifestyle angle and branding has previously allowed them to successfully enter the market at a higher price than their competitors. Taking all this into consideration, LuluLemon will need to calculate their desired ROI for this project. Having a desired ROI before the campaign launch will be important to guide any decisions that pose potential risks and benefits. The monthly budget for the proposed campaign is $10,000 a month with an allotted amount of 4 months. The ROI should be about 200% of the entire budget, $40,000, if the campaign is to have its intended impact and reach. Meaning the desired ROI is $80,000. Another metric that will be important to calculate before creating and launching the campaign is the breakeven point. The breakeven point is a value that represents when revenue equals total costs, meaning there is no measurable profit or loss. In this case, the breakeven point is $40,000. This simple measurement can help a company decide how to price their products and conduct their overall business strategy. Marketing Mix 2 Having these desired values will allow for the company to discuss the potential distribution channels involved and how the company will be able to promote this campaign on a wider scale range. In this scenario we know that the supply chain for these products are going to come through various physical channels in order to execute this campaign at the highest level. Manufacturing facilities, distribution centers, and retail stores are going to be the best forms of physical channels. As we move into a more digitized world full of social media and influencers, what better way of reaching your audience by investing in online ads, social media platforms like instagram and twitter, and the most important influencer collaborations. Through these channels

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links and messages can be attached to direct links to the campaign and the products within it. Service channels like the mobile app and the website will be the most effective way of delivering our products for this campaign to our customers. As we dive into the promotion tactics surrounding this campaign, it is important to understand that Lululemon has developed such a reputable brand that the investment into marketing these products may not have to be so expensive. As we stated earlier, our estimated ROI should be in the 200% range while our breakeven point should be at $40,000. With this campaign we plan to involve a lot more influencers in order to grab an even larger scale of audiences as these influencers will be able to show off these products through their social media platforms. Apart from the influencers, LuluLemon plans on allocating a certain portion of their funds into website content and email marketing. Lastly, our most important digital channel in our attempt to promote this campaign is our engagement across all social media platforms. A large amount of the investment into this campaign will be dedicated to expanding our outreach into the largest social media apps today. Considering all the channels provided, Lululemon is extremely confident in achieving the ROI they have proposed. Execution Timeline

Lululemon’s timeline focuses on the five different phases that will increase the presence of men’s products while consistently increasing customer retention and awareness of the brand. The five phases are market research, product development, marketing strategy, partners & collaborations and expansion & customer retention. Over the period of 12 months Lululemon will gather data, develop products, properly market them to the desired target audience and measure the volume increase of sales and the success of the campaigns. Phase 1 will be mostly a market research initiative where there’s an increased effort in gathering insights on trends, preferences of the customers and any key competitors that may currently be invading the same markets. Phase 2 will focus primarily on the development of quality products that are representative of all data gathered during phase one. The products must align with the brand values of providing comfort, style and superior mobility. Phase 3 serves as a check in point where all newly developed products will be tested, and marketed to the desired audience. The use of extensive email campaigns and targeted ads will be the focus of phase 3 as Lululemon

strives to increase their customer base and overall sales. Phase 4 works closely with phase 3 as it simply elevates the amount of advertising and marketing that is drafted for the desired audience. Research will go into identifying top value partnership opportunities with influencers and ambassadors that will add value to the new products. Finally, phase 5 will be a final push and final recap of the last 12 months of effort to increase Lululemon’s male customer base, the international brand awareness and the ongoing market trends and needs identified throughout the process. Budget Influencer Marketing $3000/month Website Content Marketing $500/month Social Media Ad/Content $6000/month Email Marketing $500/month

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Total Budget = $10,000 per month Because of Lululemon’s consistent billion dollar revenue performance, 521 operation retail locations, and e-commerce sales, $10,000 a month is an appropriate budget to launch a short-term campaign. The goal of this short-term campaign is for Lululemon to increase their male consumer population. In order to launch a short-term campaign, Lululemon will use 4 different marketing mediums: influencer marketing, website content marketing, social media ad/content, and email marketing. The majority of the budget will go towards social media ad/content and influencer marketing because these two mediums will encourage a higher level of call-to-action from consumers compared to email and website content marketing. Influencer marketing can significantly support the launch of the campaign by leveraging the influence and credibility of popular male content creators. With male influencers promoting the campaign, they can reach a broader male audience. This can lead to increased brand awareness, engagement, and potentially higher conversion rates. Influencers can showcase the campaign's offerings in an authentic and relatable manner, making it more appealing to their male followers and encouraging them to participate or make a purchase. Website content marketing plays a role in providing valuable information about the campaign and its objectives. Utilizing their website, Lululemon can educate their existing and potential male audience about the campaign's unique selling points. Social media content can also drive traffic to the website, enhancing the campaign's visibility and reaching potential male customers who might not have encountered the campaign through other channels. Social media content is crucial for building excitement around the campaign. Lululemon must create easily shareable and aesthetically pleasing images, videos, and infographics, to announce the campaign and showcase their products. Social media platforms allow for direct

interactions with an audience. The viral nature of social media can also lead to sharing and word- of-mouth marketing, increasing the campaign's reach and impact in the male consumer space. Email marketing is a way to communicate with both existing customers and potential leads. Lululemon will use email marketing to announce the campaign's launch and provide regular updates throughout the lifetime of the campaign. Segmentation in email marketing will allow Lululemon to tailor their messages to male customer segments, increasing the relevance and effectiveness of their communication. Email marketing can drive traffic to their website, encourage repeat or new purchases, and build long-term customer loyalty beyond the campaign's duration. More than half of the budget will be allotted towards social media content and influence marketing due to the fact that these channels will allow the campaign to have the widest reach and impact on the intended audience. As previously stated, the expected ROI for the 4-month long campaign is $80,000, 8 times the monthly budget and two times the campaign cost. Metrics Because LuluLemon will be launching a campaign using a variety of different marketing channels, different metrics will be used to measure the reach and success of the campaign. The main metric that will need to be monitored is social media likes and shares due to the fact that the majority of effort and budget is being used towards social media and influencer marketing. Google analytics will be used to analyze social media analytics. Google analytics will give insights into where website traffic is coming from, whether it be organically or via social media links. This will be a helpful tool in deciding whether the channel utilized is the most effective one. Constantly using these analytic tools throughout the campaign will help guide business decisions from creation, launch, to the end of the campaign.

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