Lululemon Case Write-Up

Lululemon Case Write-Up

Management’s value proposition at Lululemon is to ‘create components for people to live longer, healthier, more fun lives’. The components that they create are athletic wear marketed towards mainly women in the 18-65 year range. Their ideal customer is a 32-year old, sophisticated, educated, active, working wife and mother. The firm aims to provide stylish and high quality yoga-inspired apparel to be worn in daily activities and athletic activities.

The words and actions of the CEO in the media indicate that the company’s actual target market is largely women who are of a very specific, thin body style. It is quite clear that the CEO only views the slimmest and most fit women as his ideal customers when he said “Quite frankly some women’s bodies actually just don’t work for it...It’s really about the rubbing through the thighs, how much pressure is in there”. This points out that the CEO clearly only sees the thinnest young women as his target customers, and anyone whose thighs touch when they walk are not in his intended market.

The US trends of rising obesity rates and population aging are going to negatively impact Lululemon’s target market. Potential customers may be growing fatter and additionally, the population is growing older and may be less interested in Yoga apparel. A trend in the US that is positive for Lululemon however is the trend toward being health-conscious and living an active lifestyle. Millenials are looking for ways to get exercise and be healthy. This could increase the target market.