Lululemon Athletica Marketing

PLEASE SELECT ONE OF THE THREE QUESTIONS BELOW AND RESPOND TO IT IN NO MORE THAN 1,000 WORDS.

Only choose one

write between 800 to 900 words


Question 1

Lululemon Athletica, whose upmarket leggings and sweatpants have taken affluent North Americans by storm, is making plans to invest heavily in its Mirror home fitness platform to further grow its revenues. The Mirror looks like a regular full-length mirror, but provides access to a certified fitness trainer via streaming. The exercise classes are often live, but some are pre-recorded. The two-way mirror/camera allows for checking out performance and lets the instructor see the trainee also. It also allows the Mirror’s owners to follow customized workouts tailored specifically for each user. The Mirror competes with companies such as Peloton, which allow users to attend spin classes from home.

“Our customers were seeking more convenient at-home options before COVID-19, and they will continue to seek these options post the pandemic,” said Calvin McDonald, Lululemon chief executive, in a recent earnings call. “We plan to continue to invest further into this advantage by adding even more live classes across more workout options to the Mirror, while also investing in the overall guest experience in building this powerful community.”

When it comes to its apparel business, Lululemon is planning to more than triple the proportion of its revenues from overseas in an intensified global branding push in countries from the U.K. to Japan. In sharp contrast to other clothing companies hit hard by the coronavirus crisis, Lululemon’s market capitalization has swelled to US$50 billion this year thanks to higher demand from housebound consumers for athleisure wear — items worn casually as well as for exercise.

In 2018 and 2019, Lululemon’s stock price was steadily declining due to slowing sales growth and concerns that the athleisure trend might be coming to an end. Today, by contrast, Lululemon’s stock price has risen to new highs while the company reports record online sales.

Despite its recent success, analysts are divided regarding Lululemon’s future prospects. Some fear that Lululemon’s success is unsustainable. Once the pandemic ends, they argue, demand for expensive leggings and sweatpants will inevitably decline. They also feel that the Mirror is more of a gimmick than a real fitness tool. They also argue that other Athleisure brands, such as Vuori and Athleta, are growing in popularity. Other analysts, by contrast, are extremely optimistic regarding Lululemon’s future. They argue that working from home is likely to become more common and that people will be slow to return to gyms.

  1. Analyze Lululemon’s current competitive position and its current IMC and advertising strategies.
  2. Please create a SWOT analysis, outlining the strengths, weaknesses, opportunities and threats that Lululemon faces.
  3. Based on your research/analysis, decide the objectives for your advertising campaign for Lululemon (e.g. creating awareness, new product launch (real or imaginary), brand re-positioning, targeting a new consumer segment etc.). Please be sure to mention which target segments Lululemon should focus on.

Question 2

Stellantis N.V. is a newly formed automobile company that resulted from the 2021 merger between the Italian-American company Fiat Chrysler Automobiles and the French company Groupe PSA. It is headquartered in Amsterdam and is currently the fourth largest car manufacturer in the world behind Volkswagen, Renault-Nissan-Mitsubishi, and Toyota. Stellantis owns a wide portfolio of automotive brands: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Mopar, Opel, Peugeot, Ram Trucks and Vauxhall Motors.

In the United States, Stellantis’ most visible brands are Chrysler, Jeep, Fiat and Dodge Ram Trucks. Apart from Jeep and Dodge Ram Trucks, most of its brands are struggling in the U.S. Stellantis recently confirmed that it would, therefore, cancel plans to bring the French car brand Peugeot back to the United States after a thirty-year absence. It announced that it was appointing Detroit-based car executive, Larry Dominique, to the role of senior vice president of Alfa Romeo brand for North America. Dominique was heading up Stellantis’s efforts to revive the Peugeot brand in the United States, and this new assignment signals Stellantis’ intent to focus on growing Alfa Romeo’s presence here.

Stellantis would like to use Alfa Romeo to compete with Audi, Mercedes and BMW in the mass market luxury segment of the automobile market. This segment is highly attractive as it offers higher profit margins than most other segments. To bolster these plans, it started importing the Alfa Romeo Giulia sedan, which was well-received by critics, on a large scale in 2017. Unfortunately, the Giulia was not successful in the United States. To compensate for this failure, Alfa Romeo subsequently launched the Stelvio, a mid-size SUV, in the U.S. with the hope of competing with similar Audi, BMW and Mercedes mid-size SUVs. Unfortunately, the Stelvio has not sold as well as anticipated.

  • Analyze Alfa Romeo’s current competitive position and its current IMC and advertising strategies.
  • Please create a SWOT analysis, outlining the strengths, weaknesses, opportunities and threats that Stellantis will face growing Alfa Romeo’s sales in the United States.
  • Based on your research/analysis, decide the objectives for your advertising campaign (e.g. creating awareness, new product launch (real or imaginary), brand or product re-positioning, targeting a new consumer segment etc.).

Question 3

Five Ten is a manufacturer of mountain biking, climbing, and trail hiking shoes that was founded in Redlands, California, in 1985 by the late Charles Cole. Cole invented a special rubber called stealth rubber for his shoes that made them excellent for climbing. As of the early 2000s, Five Ten had become the leading climbing and hiking shoe brands in Belgium, the Netherlands and Germany. In November 2011, Adidas purchased the company for $25 million in cash. One of Adidas’ goals was to gain control of Five Ten’s brand and its technology in areas such as stealth rubber. Five Ten’s headquarters were moved from Redlands, CA, to Herzogenaurach, Germany, as it is now officially a sub-brand of Adidas Outdoor as of April 2020.

Adidas is now planning to scale up the sales of Five Ten products in the US market as a sub-brand of Adidas Outdoor. Adidas is confident that it will be able to increase the sales of Five Ten products in the US, despite the fact that they only had a small niche market in the US from 1985 until the present.

You have been hired as a consultant by Adidas Outdoor to create a marketing plan for Five Ten products.

  • Please create a SWOT analysis, outlining the strengths, weaknesses, opportunities and threats that Adidas Outdoor Five Ten shoes will face.
  • Please recommend how Adidas Outdoor Five Ten shoes should be positioned in terms of the 4 P’s. (Please make clear and detailed recommendations for each P).
  • Please recommend a target market for Adidas Outdoor Five Ten shoes and explain how it will be reached in terms of both promotional messaging and product distribution.

Based on your research/analysis, decide the objectives for your advertising campaign (e.g. creating awareness, new product launch (real or imaginary), brand or product re-positioning, targeting a new consumer segment etc.).


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