Planning for KPIs

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Tulane University *

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Marketing

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Feb 20, 2024

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Planning For KPIs Group 8 - Allison Medina, Loreli Cabrera, Jose Daniel Hernandez Part 1-The Type: Lululemon Athletica, commonly known as Lululemon, is a leading athletic apparel company that specializes in yoga and workout clothing, as well as accessories. Founded in 1998, Lululemon has become a well-known global brand with a strong emphasis on promoting an active and healthy lifestyle. The company operates through a combination of physical stores and e-commerce platforms, b2c. Despite its success, Lululemon faces several concerns within the industry that may impact its growth and profitability. One major concern is increased competition from both established athletic apparel brands and emerging niche players, which could potentially erode Lululemon's market share. Additionally, supply chain disruptions, fluctuating raw material costs, and geopolitical uncertainties can affect the company's production and distribution capabilities. Furthermore, changes in consumer preferences and spending habits, as well as shifts in fashion trends, pose challenges for Lululemon to stay relevant and maintain a loyal customer base. The company's ability to address these industry concerns and adapt to the evolving market dynamics will play a crucial role in determining its future success. Part 2-Outcomes and Urgency: Our outcome is centered around creating a short-term specific campaign in order for Lululemon to target male consumers. To attract more of a male audience while staying ahead of their competitors, Lululemon must act in a rushed manner that creates a sense of urgency in male consumers. To successfully launch a short-term campaign targeting male consumers, Lululemon must understand the male consumer, highlight male athletes or influencers, tailor messaging to male consumers, and create engaging content. Lululemon must conduct thorough market research to gain insights into male consumers' preferences, needs, and shopping behaviors related to athletic apparel. This understanding will help tailor the campaign to resonate with the target audience effectively. 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. This association can enhance the brand's credibility among male consumers. Lululemon will need to create campaign messaging that speaks directly to male consumers, highlighting 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 awareness and visibility. Short-term campaigns provide a sense of urgency and immediacy that can lead to action from male consumers, encouraging them to engage with the brand. By implementing these strategies, Lululemon can effectively engage male consumers and encourage them to explore and purchase the brand's men's collection. The short-term campaign can complement the brand's overall marketing efforts and contribute to building lasting relationships with male customers.

Part 3-The Budget: Influencer Marketing $3000/month Website Content Marketing $500/month Social Media Ad/Content $6000/month Email Marketing $500/month 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.. Through dedicated campaign sections on the website, Lululemon can educate their existing and potential male audience about the campaign's unique selling points. Engaging 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 and engagement around the campaign. Lululemon must create visually appealing and shareable content, such as 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. By integrating these marketing approaches, Lululemon can create a cohesive and comprehensive short-term campaign launch. Influencer marketing brings authenticity and wider reach, website content marketing educates and informs, social media content drives engagement, and email marketing allows for direct communication and customer retention. Combining these marketing mediums maximizes the chances of a successful campaign launch, ensuring that the message reaches the targeted male audience and generates the desired impact. Part 4- Connecting the KPI Dots: Designing KPIs Marketing - Conversion rate - Customer acquisition - Website traffic - Customer retention - Social media engagement - Email Open rate Sales - Sales growth rate - Number of transactions - Average transaction value - Customer foot traffic Timeline 3 Months 1. Aim to acquire at least 2,000 new sales in the first three months through targeted email and social media campaigns. 2. Target a 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% to ensure customers continue their buying behavior.

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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% through website content and targeted email campaigns. 3. Achieve a retention rate of 85% to foster loyalty among male customers. 12 Months 1. Sustain customer acquisition efforts to 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%. Part 5-TheTest: Consider a situation where the marketing and sales team of Lululemon sets KPI targets for a short-term campaign to increase male customer acquisition during a specific period. The campaign's primary objective is to promote their latest men's activewear collection and attract male customers to purchase products from this line. To achieve the KPI targets quickly, the marketing and sales team decides to heavily discount not only the new men's collection but also other existing products for both men and women. This decision leads to significant sales volume, as customers are encouraged by the discounts offered. As a result, the sales KPIs, such as sales growth rate and conversion rate, appear to be on track to meet the set targets. However, in the process of focusing on sales growth volume and conversion rate, the campaign fails to achieve Lululemon's primary objective of promoting the campaign for the new men's activewear collection. The discounts might have led to customers primarily purchasing the discounted products from the existing women's collection or general accessories, rather than specifically engaging with and buying from the new men's collection. The marketing and sales team may have hit their KPI targets in terms of sales, but the campaign fails to generate sufficient engagement and awareness for the new

men's activewear collection. This outcome could be a missed opportunity for Lululemon to establish brand loyalty among male customers for their latest products. To ensure that the short-term campaign aligns with the overall objectives and goals, the marketing and sales team would need to focus on the previously mentioned marketing mediums, highlighting the new men's collection's unique features and benefits to attract the desired male audience and drive sales specifically for that product line. Reflections: 1. How did this exercise influence how I think about marketing strategy planning? Overall, the KPI exercise influenced our approach to marketing strategy planning by emphasizing the importance of data-driven decision-making, customer focus, and goal alignment. Designing KPIs and generating KPI targets can lead to a more strategic and impactful approach to marketing, driving better results and ultimately contributing to the success of business objectives. 2. How can you personally reach a balance between measuring every performance detail and allowing your management teams to have flexibility in reaching objectives and goals? In order to reach a balance between measuring every performance detail and allowing management teams to have flexibility in reaching objectives and goals critical KPIs need to be identified, clear targets must be set, periodic KPI reviews need to be conducted, and collaboration should be encouraged. Finding the right balance between measuring key performance details and allowing flexibility, organizations can empower their management teams to make informed decisions, drive innovation, and achieve their objectives while staying aligned with the broader organizational strategy. 3. What value and/or insights will I take away from this KPI process? Our group gained several valuable insights and takeaways. The KPI process can provide goal clarity, performance evaluation tools, and a target marketing plan. KPIs provide a clearer understanding of how to set specific and measurable goals for your marketing campaigns and sales efforts. This clarity will enable you to align your team's efforts with the overall business objectives more effectively. The KPI process will also help you establish a structured framework for evaluating the success of your campaigns and sales initiatives. This will enable you to identify areas of strength and weakness, allowing for continuous improvement. Lastly, the KPI process highlights the value of targeted marketing efforts. By tailoring your campaigns to specific customer segments and aligning KPIs with these segments, you can ensure that your marketing resources are efficiently allocated to reach the right audience.

Planning for KPIs

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