Case Summary- Lululemon Athletica Inc.

Case Summary- Lululemon Athletica Inc.

Key Issues:

Supply chain-recent recalls (quality control) due to product stretching too thin

-Company Image- employee blamed customers ‘thick thighs’

Lack of mass marketing strategies and awareness of the brand

Only selling to a few markets, missing out on major opportunities in Europe and Asia.

Niche target market (narrow) focus

Recommendations:

Supply chain- product quality inspectors employed by lululemon working in the fabric factories in Asia to ensure the fabrics are to company standard. Look for new fabric production facilities with better production standards/quality.

Company Image- Ensure all employees are aware of media appropriate behaviour and provide training. Ask employee who made comment not to be interviewed/go on record.

Marketing- Use of community based initiatives in expansion into new global markets. Brand image is interconnected with North American culture and values, these need to be considered/adjusted when expanding to ensure the values of the company are communicated in a way that consumers in that market will understand.

Expansion into more markets globally- Brand is well known/established in North American market but unavailable to European and Asian consumers. Majority of global population unable to access brand due to premium positioning. Enter new markets globally including specific European and Asian markets. Brand must cater marketing concepts to each specific market.

Broader target market- current niche target market and narrow product line limit sales capabilities/base. Expanding into other markets of athletic

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