1. PESTEL Analysis
Political
• Tax concessions
• Patents and trade markets are used in designing fabrics and apparel. Economics
• Sensitive to price
• Costly
• Economic slowdown
Socio-Cultural
• Canadian Brand
• Yoga and runner
• Health conscious
• Ethical product production
• Safe Environmental standards Technological
• Instagram
• Web designed website
• Income based on shipping.
Environment
• Outsourcing all products through third-party suppliers
• Third party suppliers are located in Southeast Asia where pollution laws are becoming stringent Legal
• Filed suit against Calvin Klein for violating its yoga pants patents
• Gets into disputes with its employees at times but does not it does not affect working of the company.
2. Porter’s
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They are in business for a longer period, have more wealth, financial resources, brand image, huge retail experience.
➢ Internal Analysis
1. Value Chain
2. Marketing Mix
1. Value Chain-
• Supply Chain Management- received real time input from customers and less time to check samples
• Operations: streamlined design and development processes. Only one activity is outsourced i.e. production. It is outsourced to countries where resources are cheaper.
• Distribution: Facilities in Vancouver-BC, Summer, Washington and Melbourne, Australia; online retail store
• Sales and Marketing: community based, yoga instructors ambassadors, community coordinators
• Service: ‘Educators’, guests, Lululemon manifesto.
• Profit Margin: Net Profit Margin is 17.1%, which is 15% above industry average.
2. Marketing Mix Analysis-
Product-
• Yoga and athletic apparel
• Various Accessories
• Special fabrics for different functionalities Place-
• Exclusively in Lululemon retail
Stores and on company website
• Use of Information Systems
• Various channel partners
Price-
• High pricing – between $50-170
• Customer and profit-oriented Promotion-
• Loyal customers, advocates and word of mouth
• Personal
Within the next 5 years horizon, Chic which includes me as the director and the team to create Chic into one of top emerging fashion retailers in Australia , which provides clothing that are environmentally friendly made by using more organic cotton to produce our clothing, organic cotton is also a renewable material. Chic also is hoping to be able to provide wide ranging of style which will suits almost all kinds of individuals with affordable price. The benefits from achieving those goals would be to show stakeholders that it is possible to provide amazing style of clothing without the need of doing large amount of harm to the environment. Another benefit is also to make it become more affordable for individual to express their sense of style and reduce the mindset that to stylish means expensive. And last is return on capital and profits for the company, in order to for the company to continue to achieve its
Overall, I don’t know how I feel about Lululemon’s product for a high price. I know fitness gurus that praise the company’s products mentioning the high quality of their product. I also know that there are many other comparable quality products out there that is half the price or less. I’m also glad that founder, Chip Wilson, is no longer affiliated with Lululemon. He did not seem like a great CEO at that time, and I’m glad the current CEO took over.
The evolution of fashion industry should be in trend with the technology developments. Technology is the driver of transformation supported by government incentives. The options could be as below • Fabrics used should be new high-tech. Some examples could be nano-tech fabrics and programmable clothing, use of biodegradable non toxic spray-on clothing • Clothes for each could be designed using 3D body scanners which will allow people to “try on” clothes in virtual mirrors and interactive screens • Switching to a “low-carbon” economy based on renewable
Government policies supporting active and healthy lifestyle can have effect on Lululemon. With growing market, there will be opportunity to grow. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. It is opportunity for Lululemon.
Second Assignment – Annotated Bibliography and Thesis Statement by Cheryl Chi Yue Leung (214185045) York University NATS 1840 15th January 2016 Thesis: How material elements of the modern fast fashion practice reinforce the meanings of unethical production, and thus explain low prices come with low product quality and negative environmental and social impacts Annotated Bibliography 1) Anguelov, N. CRC Press. (September 2015) The dirty side of the garment Industry: fast fashion and its negative impact on environment and society.
The product “The products that The Coca-Cola Company sells are called nonalcoholic beverages which include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages. These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form.” (Coca-Cola Company 10-K 2015) (4) The competition market The Coca-Cola Company Competes in the non-alcoholic beverages part of the commercial beverages industry.
D) Marketing Plan (4Ps) Marketing Mix (4Ps) • Product – Divide product into three categories for different market o High-end function, design, and price – to target high-end group. The function will feature the highest potential such as child protection lock, built-in coffee and toaster maker, rotisserie, new technology
• Developing dedicated suppliers whose business depends upon the firm. One of the lessons Twitter, Inc. can learn from Wal-Mart and Nike is how these companies developed third-party manufacturers whose business solely depends on them thus creating a scenario where these third-party manufacturers have significantly less bargaining power compared to Wal-Mart and Nike. Bargaining Power of Buyers Buyers are often a demanding lot. They want to buy the best offerings available by paying the minimum price as possible. This put pressure on Twitter, Inc. profitability in the long run.
Porter’s five force model. Threat of New entrants (low): Although Walgreens and CVS are the giants in the retail pharmacy industry, there is a plenty of chances to small competitors. Entry into the brick-and-mortar prescription drug business is feasible even on a small scale.
3. Chapter 2 – Methodology 3.1 Introduction This chapter challenges all levels of knowledge, according to the ‘Bloom’s taxonomy’ method. Within this chapter the aim is to focus on a specific US clothing line called American Apparel, founded in 1989 by a Canadian named Dov Charney. Today, this company is based in all corners of the world, however its main quarters are in Los Angeles, California.
In order to explicitly analysis the clothing industry, emphasis must be laid on Textile
Marketing Management Project PROJECT OUTLINE: Choose one company which has a turnaround in the past and one company which failed in the past. Discuss each company’s marketing strategy and reasons for their success or failure. Marketing Strategy Failure: Gap Inc. How Gap turned into Crap! What went wrong?
Marketing Mix – 4P’s E. Jerome McCarthy classified these tools into four broad groups, which are Product, Price, Place and Promotion. 4.1 Product – The main product of Caribbean Airline is its air transportation. The airline offers direct flights to various locations, such as Canada, USA and the Caribbean countries. The airline offers tickets to passengers that are affordable and create special packages, especially for Christmas and special holidays. Caribbean Airline offers as a part of its main service, snacks, hot and cold beverages and entertainment, customers can listen to music or watch a movie that help passes the time of the long flight.
6.1 Marketing Mix Marketing mix is a set of controllable marketing tactics used by business to promote their product and achieve its marketing objectives. (L. Lake, 15 June 2017) Marketing mix is also called the 4Ps which consist of Promotion, Place, Product and Price. (M. J. Baker, 2001, p.54) 6.1.1 Product
Walmart, Amazon, and EBay 1. Analyse each of these companies using the value chain and competitive forces models. The value chain model of Amazon in itself is internally and operationally the best that adds value and maintains competitive advantage. The primary activities include Inbound logistics for example quality control, receiving, raw materials, control and supply schedules; Operations for example packaging , maintenance, quality control; Outbound Logistics for example