Term Paper on "Lu Lemon the Contemporaneous Society"

Term Paper 8 pages (2177 words) Sources: 7

[EXCERPT] . . . .

Lu Lu Lemon

The contemporaneous society is now faced with tremendous challenges, such as the aging of the population, the decaying state of the natural environment, the economic crisis, the decreasing state of human health and so on. At the level of human health, problems are raised by the modern day sedentary life style and inadequate nutrition, which favor diseases. In such a context, the population seeks to return to its original and simpler life style of simple and healthy foods, and exercise.

This increasing focus on a healthier life style represents a notable business opportunity for companies selling adjacent products and services, such as sports programs, equipments, apparel and so on. Such is the case of LuLuLemon Athletica, a Canadian-based firm which produces apparel for sports activities, such as yoga, dancing, running and "most other sweaty pursuits" (Website of LuLuLemon Athletica, 2012).

The company produces technical athletic fabrics and its inspiration resided in yoga; the production studio was open in 1998, and, at night, it became a yoga studio, to pay the rent. The apparel was created with valuable input from yoga instructors and the clothing eventually grew very popular among the yoga practicing community. The first real store was opened in 2000 and the company further expanded by focusing on product quality, store expansion and the people. LuLuLemon Athletica trained its employees "so well that they could in fact positively influence their families, communities and the people walking into our stores" (Website of LuLuLemon Athletica, 2012).

Throughout this project, the company is assessed through the lenses of marketing in an effort to identify the company's position within the market, its competition, its brand promise and brand personality. Based on the analysis conducted, several recommendations would be forwarded in the scope of further enhancing the strength of the LuLuLemon Athletica brand.

2. LuLuLemon positioning

LuLuLemon Athletica's primary activity is that of creating and retailing apparel. Still, within the market place, the organization positions itself as much more; it promotes itself as the symbol of a healthier life choice, through exercise. And more than health even, the organization places itself as the promoter of a balanced life, the promoter of harmony. This positioning strategy is represented by the company's assimilation with yoga, which has been present since the company's inception in a studio shared with a yoga studio, and it continues through today.

The LuLuLemon position within the market then is one forwarding the company's apparel, yet in a different means than traditional apparel advertising. The company aligns its market position with harmony and life teachings. Its products then go beyond the practice of sports, but incorporate the benefits of sports and a healthy life, in balance with the self and the universe.

Some notable examples of how LuLuLemon Athletica places itself within the market are offered by the quotes on the company's manifesto, as follows:

"Stress is related to 99% of all illness"

"What you do to the earth you do to yourself"

"Love"

"Listen, listen, listen"

"Your outlook on life is a direct reflection of how much you like yourself"

"Friends are more important than money" and so on (Website of LuLuLemon Athletica).

This positioning strategy is highly adequate as it has helped the company create a niche sector and retrieve benefits in the respective sector. Still, the same positioning principle is also applied by other firms in the field. In other words, the segment of stylish and quality clothes for sports activities is an increasingly popular and attractive field and LuLuLemon Athletica only represents a small player in this industry.

The competition is as such intense and the rival companies position themselves in similar manners, pursuing a healthier life style for the population. Some, for instance, emphasize on the balance between the individual and the universe; others promote the internal equilibrium, whereas others emphasize on personal health and style.

3. Competition

LuLuLemon Athletica faces intense competition within its field of operations and the competitors can generically be divided into two categories. On the one hand, there are the smaller size companies, such as LuLuLemon itself, which compete against each other in niche sectors. Some examples in this sense include Lucy, Zappos, Under Armour, Victoria's Secret Yoga and so on.

Virtually, when conducting a Google search for search criteria such as stylish yoga apparel, the name of the LuLuLemon brand does not feature easily. The more popular results in fact include Glamour Nepal, Zen Sei, Guide Me Green, Gaiam and so on. These companies have positioned themselves within the market in ways similar to those of LuLuLemon Athletica, by emphasizing on environmental and personal well-being.

On the other hand, aside from the smaller size companies, there are the larger size organizations producing sports apparel. The more notable examples in this sense include Nike, Adidas or Reebok. These companies have existed within the market for decades and they have consolidated strong competitive positions. They have created scale economies and the adherent advantages and they virtually make it impossible for niche brands to compete against them.

Aside from the niche companies and the established multinational manufacturers, LuLuLemon Athletica faces competition from copycat firms. These institutions virtually create the same items as LuLuLemon and sell them for their own profits. Furthermore, the idea of fashionable yoga apparel has even been adopted by established firms and implemented at greater levels, to further decrease the competitive strength of LuLuLemon Athletica (Strauss, 2011).

4. Verbal and visual ID

The LuLuLemon brand is promoted with the aid of a series of visual aids, most of them integrating pictures and texts, which promote the values of the firm and the source of company and customer inspiration. Two examples in this sense are revealed below. The first picture is taken from the company's website and it reveals people enjoying yoga in nature, taking as such full advantage of the communion between the mind and nature.

Source: Website of LuLuLemon Athetica, 2012

The second image represents a collection of texts (some of which have already been presented before) and which represents the manifesto of LuLuLemon.

Source: Website of LuLuLemon Athetica, 2012

A highly similar approach is implemented by Glamour Nepal in their presentation of the stylish yoga apparel. The company as such uses visual aids of people enjoying yoga in nature, inspiring tranquility and equilibrium.

Source: Glamour Nepal Website, 2012

For Gaiam however, the company's words argue that the company sells high quality and stylish yoga clothes, yet this statement is not supported adequately through visual aids. The organization as such simply offers images of the items, presented in a practical manner, yet which is not inspiring to the audience.

Source: Website of Gaiam, 2012

Nike's approach is also similar in the meaning that its use of visual aids to promote the yoga clothes is practical, rather than inspirational. The Nike website contains countless images, of virtually all of the company's products, presented in an objective and handy manner.

Source: Nike Website, 2012

The approach implemented by LuLuLemon Athletica in their presentation of the brand is supported by the visual aids. In other words, the core focus at the company is that of promoting the stylish sports apparel in a different manner; in a manner that inspires people and stimulates personal and environmental well-being. The usage of the selected visual aids supports this very effort and ensures strategic consistency.

Comparatively, in the case of Gaiam and Nike, these firms seem more focused on the larger company strategy and they address and manage the yoga apparel segments of their business as integrant parts of their overall operations. In other words, they do not integrate visual aids to further enhance the brand positioning, and this helps LuLuLemon differentiate itself and gain more competitive advantages, despite its small size.

5. Brand promise

As it has already been established, the underlying activity at LuLuLemon Athetica is represented by the creation and retail of stylish sports apparel. Still, the company takes an intense interest in the operations complementary to this activity, namely the promotion of its brand.

The LuLuLemon Athletica brand represents the organizational promise for stylish and high quality apparel, which will help the individual to restore inner balance, better connect with the environment and improve their overall quality of life. Aside from this, the LuLuLemon brand also promises to promote the well-being of the environment and the people, with the people including all customers, community members and employees.

The promise of the company falls on three distinctive elements, namely the focus of the LuLuLemon Athletica, its factories and the environment. These commitments are revealed throughout the following lines:

"1. Our Focus

We are taking actions to reduce our six largest waste streams: (1) fabric (2) paper (3) packaging (4) garbage (5) product (6) store construction.

2. Our Factories

We are creating long-lasting manufacturing relationships that share our core values. This program includes (1) long-term factory compliance auditing, (2) personal development sessions for factory workers, and (3) brand collaboration with other leading retailers.

3. Our Environment

We are working to broaden our… READ MORE

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