Picture this: you are a business owner, lying awake at night, racking your brain for the best ways to get people talking about your brand. You want them to choose you over the competition, but how do you make that happen?
Remember when yoga pants were just…yoga pants? Then lululemon strutted in, slapped on a logo, and BAM! Suddenly, we’re all rocking $100 leggings and feeling like we could conquer a mountain…or at least a killer Pilates class.
Yes, that’s the brand we are talking about; lululemon Athletica Inc., the athleisure brand that’s been killing it since 1998. This brand is not just selling clothes, they are selling a lifestyle! They have built a community around fitness, wellness, and feeling good in your skin.
They have done this so well that the brand keeps recording a steady growth in revenue with up to 19% increase in 2023 at $9.6 billion with a gross profit increase of 25% at $5.6 billion. More recently, for the first quarter of 2024, the company reported a revenue of $2.2 billion with a gross profit of $1.3 billion.
They’ve got marketing strategies and a marketing mix that’ll make your head spin in a good way because it combines the right ingredients to attract and keep customers hooked.
Lululemon’s marketing mix
Lululemon’s marketing mix has contributed positively to its position as a trailblazer in the athleisure industry. The 4Ps have guided the brand’s product offerings, pricing strategies, store locations, and promotional efforts. They are:
Lululemon products
Your product is your golden goose. For lululemon, it’s all about blending fashion with function. They understand that a healthy lifestyle is more than just hitting the gym. It’s about looking and feeling good during every part of your day, whether you’re crushing a workout, grabbing coffee, or chilling on the couch.
Their product line spans yoga pants to running gear and personal care products. Seasonal collections and limited editions keep things fresh and exclusive, catering to those who crave variety and novelty.
Price
Lululemon is not exactly cheap; its prices are higher than most other brands in the athleisure market. But, they’ve mastered the art of premium pricing by creating a perception of superior value in the eyes of their customers.
Lululemon does not just sell clothes, they sell a promise of high-quality fabrics, ethical manufacturing, and a brand that aligns with your values.
Place
Lululemon’s stores are strategically placed in high-visibility, high-traffic, easy-to-reach areas like malls, fitness clubs, and downtown hotspots. Sustainability? Check! Energy-efficient lighting and recycled materials reduce their carbon footprint.
Plus, lululemon stores are not just stores; they are community hubs where individuals get access to fitness classes, workshops, and events. Thus making you feel like you are part of something bigger, not just buying clothes. Their website also offers a seamless online shopping experience so customers can buy from anywhere.
Promotion
This is where things get spicy!
- Amazing product? Check.
- Right price? Check.
- Perfect location? Check.
Now you need people to know about it! How? Promotion! Aside from informing people about your product, proper promotion ensures that brands adopt the right marketing strategies which can attract and retain customers.
lululemon’s marketing is multi-faceted but mainly focused on building a tribe of loyal customers who love the brand and its vibe. Hosting events and fitness classes in stores builds a sense of community and increases foot traffic.
They use micro-influencers (we’ll get to that), targeted social media campaigns, and grassroots awareness to spread the word, ensuring the brand stays top-of-mind.
Lululemon Marketing Strategies
- Unique campaigns
- Use of micro-influencers
- Community-centric marketing
- Social media advertising
- Retargeting ads
- Athleisure
- Limited product quantities
- Effective customer service
- Exclusive fabrics
- Affiliate marketing
Unique campaigns
lululemon’s campaigns truly showcase their innovative approach to engaging their audience and expanding their market reach. The Power of Three ×2 initiative, aiming to double men’s and digital revenues while quadrupling international revenues by 2026, is ambitious and strategic.
The launch of their first-ever men’s shoe collection in February 2024 underscores their commitment to diversifying their product offerings and capturing new market segments.
The Run Further campaign, with its focus on women’s ultramarathon and collaboration with the Canadian Sport Institute Pacific, not only pushes the boundaries of human performance but also addresses crucial gaps in sports science regarding female endurance.
This initiative not only highlights Lululemon’s dedication to innovation but also its support for female athletes and their specific needs.
Moreover, the Get Into It campaign, sparked by a viral TikTok post and culminating in the Dupe Swap, demonstrates Lululemon’s agility in responding to cultural trends. By turning a potential challenge into an opportunity to engage with their community, Lululemon not only reinforced their brand’s authenticity and quality but also attracted a younger demographic (Gen Z).
These campaigns collectively illustrate lululemon’s unique approach to growth through effective marketing, setting a strong foundation for achieving their revenue targets and maintaining their position as a leader in athleisure.
Use of micro-influencers
lululemon gets it: People trust people, not billboards. They know that word-of-mouth marketing is powerful. So they’ve got two programs to spread the word:
- Ambassador program
Lululemon’s ambassador program is a stroke of genius. It is open to yogis, runners, studio owners, teachers, artists, and all individuals who are leaders of or have access to a community of people and can inspire and influence them to try lululemon products.
These ambassadors are like walking billboards, sharing their passion for the brand in a way that resonates with their niche communities. It also creates a deep connection with potential customers. Some lululemon ambassadors include yoga instructor Naomie Yeo; the Olympic swimmer, Summer McIntosh; runner and DJ, Charlie Dark; and Triathlete, Lionel Sanders.
The lululemon ambassador’s program works because it benefits both the ambassadors and the brand:
- The ambassadors get to test products before they are available to other customers and gain access to new opportunities.
- The company gets feedback that helps it improve and grow its products to meet consumer needs while expanding patronage.
- Sweat collective
This group includes coaches, trainers, team managers, and studio owners due to their prime position to get their students and clients rocking Lululemon. Members of the Sweat collective get perks like 25% off lululemon products and access to exclusive events.
Community-centric marketing
Lululemon’s community-centric marketing is not just a fancy buzzword. From the get-go, lululemon’s stores have been more than just retail spaces; they are community hubs where people can learn, share, and grow.
Here’s the deal: While traditional marketing screams at you, lululemon is all like, “Hey, come join our awesome party! We’ve got yoga, meditation, and pants that make your butt look amazing.” See the difference? It’s not about selling, it’s about belonging.
The community supports individuals of diverse races, ethnicities, and body shapes. Hence, supporting a wide range of people, informing them that every look is beautiful, has the right to be loved, enjoy the freedom to dress, choose comfortable clothes, and keep fit.
lululemon has mastered the art of creating experiences, not just products because memories last longer than that new shirt smell.
- Free yoga classes? Check.
- Meditation workshops? Check.
- Goal-setting sessions with life coaches? Check and mate.
lululemon knows experiences forge bonds. The brand’s 2023 World Mental Health Day activities in China Mainland brought in over 9,000 participants across six cities.
At these community events, consumers get to interact with the company’s staff who can offer valuable insights on how to use the brand’s products and the right apparel for various physical activities.
Social media advertising
Lululemon knows how to play the social media game. They create engaging content about fitness, wellness, and sustainable living. They are like, “Hey, this is us!”
What’s YOUR story? Tell it! Make it real, make it relatable, make it about more than just making a buck. That’s what lululemon has done.
Want to compete with them? – consider factors for building a winning SMM strategy.
lululemon uses influencers, encourages customers to share their #thesweatlife stories, and runs campaigns that make you feel good about yourself and the brand.
For example, in light of the 2020 Christmas holiday season, lululemon launched a marketing campaign, tagged Let the Feeling Flow across the United Kingdom and Europe. The campaign encouraged customers to celebrate the connection and growth in their journey by sharing their stories during the holiday season; especially noting the changes that have come with the global pandemic.
The use of social media marketing as part of lululemon’s marketing strategy is effective because most individuals spend a significant amount of time on social media. It is equally effective due to people’s consciousness about leading a healthy lifestyle through regular physical activities, part of which requires purchasing the right clothing for such activities.
Retargeting ads
lululemon does not let potential customers slip through the cracks. Retargeting ads on social media and email campaigns remind visitors of products they have viewed but not purchased, nudging them to complete their transactions.
Athleisure
As people get more aware and engaged in pursuing an active and healthy lifestyle, the athleisure industry has witnessed exponential growth. Being an athleisure brand, this plays right into lululemon’s marketing strategies. By offering versatile apparel that fits both workout and casual settings, they meet the growing demand for multifunctional fashion.
They also save customers time and money as they don’t have to buy separate outfits for different activities. In essence, lululemon captures consumers who want to easily blend their everyday activities with fitness and staying healthy.
Limited product quantities
By limiting product quantities, lululemon creates a sense of urgency and exclusivity. Seasonal collections and pop-up stores generate buzz and drive immediate sales, while strategic discounts and promotions keep the excitement alive.
One example is the collaboration between lululemon and Taryn Toomey on a limited-edition collection that was only available in select lululemon stores in the US, Canada, and the UK, and online in North America.
This strategy of offering limited product quantities is lululemon’s way of getting you to buy now or cry later.
Effective customer service
lululemon calls their employees educators. They’re not just there to ring you up. They’re there to help you find the perfect gear and make sure you’re comfortable with it.
Passionate about fitness, these educators offer personalized advice, ensuring customers feel valued and heard thereby creating that positive experience that keeps you coming back for more.
The feedback they gather from consumers is passed along to the company. The company utilizes the feedback in subsequent productions for further research, development, and improvement.
Exclusive fabrics
lululemon’s marketing strategy through exclusive fabrics has been effective because of its unique quality and the fact that products made from the fabrics can only be accessed in the brand’s stores. This serves as a differentiator for the brand’s products when compared to other brands.
The exclusive fabrics are specially developed through thorough research which is carried out by the brand’s research and development team in its Canade lab called Whitespace.
The researchers and designers of lululemon’s products are individuals who are actively involved in fitness activities themselves. They also depend on feedback from the brand’s ambassadors, affiliates, creators, and teeming customers when developing new fabrics or improving existing ones.
The Ultraviolet Protection Factor (UPF) for most lululemon clothing ranges from 40 and above, this indicates that the brand’s clothes offer very good to excellent sun protection.
lululemon exclusive fabrics are made from a blend of different fabrics to ensure they meet high-quality standards. These fabrics are made for movement, comfort, and performance. They’re not just fabrics, they’re tools for your best life hence justifying their premium prices.
For instance, the brand uses Luon or Nulu for its yoga wear. These fabrics are made of a high nylon microfiber composition which makes it excellent for yoga due to its lightweight and stretchiness that allows unrestricted movement without getting uncomfortable.
Everlux is designed for sweaty workouts; it has the feature of quick drying which keeps moisture away from the skin and lets people exercise comfortably.
Affiliate marketing
Lululemon has a strong affiliate program called the lululemon Collective. They reward bloggers, website owners, and social media influencers with a cut of the profits (7%) when they refer customers.
By offering a commission on sales generated through affiliates, they incentivize passionate fitness enthusiasts to promote their products, expanding their reach organically. It’s a win-win – they get more sales, and the affiliates get some sweet cash.
The brand’s use of affiliates in conjunction with the other marketing strategies aids in having more sales which improves overall revenue.
Takeaways
lululemon’s marketing strategies and marketing mix are a testament to the power of a well-researched, customer-centric approach, and smart marketing. The company has created a brand that resonates with a specific audience boasting a cult-like following, reckless brand loyalty, and a market cap that would make your head spin (we’re talking over $36 billion folks).
Don’t be afraid to learn from the best! Remember:
- Know your audience: Who are they? What are their needs and desires?
- Build a community: It’s about connecting with people who share your values.
- Be authentic and genuine: People can smell fake marketing from a mile away.
- Use all the tools in your toolbox: Combine your marketing strategies to create a powerful mix.
- Experiment and iterate: Keep testing and tweaking your approach to find what works best.
So, the next time you are lying awake at night, wondering how to get your brand noticed, take a page from lululemon’s playbook. Who knows? You just might become the next big thing in your industry.
