Introduction
Lululemon is a renowned international manufacturer and retailer of sportswear with a focus on high quality and fashion. The company produces goods for training, accessories, and health products. The company was founded in 1998 in Vancouver and, through its continuous development, has expanded worldwide with more than 500 stores (Spanke, 2020). The company’s target market is people who lead a sporty lifestyle, while the company does not focus on a specific country. The competitive advantages of the brand’s products are high quality and recognizable appearance. The sportswear industry is Lululemon’s core business, and the firm does not manufacture any third-party clothing other than workout clothing.
Consumer Behavior Research
Problem Recognition
The first step in the buying decision process is recognizing the problem. At this stage, consumers recognize the need for the product and specify their needs (Qazzafi, 2019). The main consumers of Lululemon products are sportspeople interested in fashionable and practical clothes. Therefore, they can find a need for new pants or sports equipment by browsing the latest products. This happens when they realize that their current equipment is in poor condition and can no longer cope with all the goals and objectives.
Information Search
Finding information is the second step in the consumer’s decision to purchase a new product. At this stage, a person is looking for information about a product or service of interest to him, finding out the necessary data in connection with what they have come to expect from the product (Prasad et al., 2019). Potential consumers can explore all possible options, including pricing, features, and clothing features. In addition, customers can visit the company’s retail stores to see what the products look like and try them on.
Evaluation of Alternatives
The third stage of the purchasing decision is evaluating changes, in which consumers compare products. People can start comparing multiple options after finding the correct information about the right product (Ali et al., 2021). In the case of Lululemon, customers can review and analyze the advantages of the company’s products over Nike or Adidas products. In this way, potential customers can decide which things they like best regarding price and quality.
Purchase Decision
The fourth buying decision stage can be described as the conclusion about what a person needs. At this phase, the consumer makes the final decision on whether they will make a purchase or not (Pop et al., 2022). If approved, the company’s customers can purchase on the Lululemon website or one of their retail stores. At this stage, consumers may consider factors such as speed of delivery or service at the point of sale.
Post-Purchase Behavior
The fifth final phase is the customer’s behavior after purchasing the product. After a user uses a product for a while, they evaluate their decision regarding that item (Ridwan, 2022). Lululemon consumers can leave feedback through reviews on YouTube or some other social network. Their opinions can further influence what other potential customers think.
Critical Issues
Competitive Pressure
One of the crucial critical issues for the company today is the increased pressure from competitors such as Adidas or Nike. This is accompanied by the fact that these companies have a wider range of products and, as a result, they can satisfy a more significant number of potential customers. Thus, Lululemon must put more effort into developing innovative garments to beat the competition.
Impact of Crises on Sales
Another critical issue is the impact of crises like the coronavirus pandemic on sales (Forstenhausler, 2022). Such catastrophes in world markets harm the desire and ability of people to buy goods for sports. Thus, the company needs to learn how to resist such experiences and prevent possible changes in customer behavior. The third critical issue is the narrow focus of the firm’s products. Due to this factor, the company cannot attract the same number of consumers as its competitors.
Marketing Objectives
Revenue to Sales Ratio
To improve the overall situation in the company, it is necessary to analyze some of the main components of the company’s business. The first important aspect to consider is the ratio of revenue to sales. To optimize this parameter, the right decision would be to set the goal of increasing revenue over the next two years by 10%. This can be achieved by developing and launching new products with a minimum of analogs (Deepak & Jeyakumar, 2019). Such a strategy will significantly expand the line and assortment of goods, reducing the distance from competitors. Thus, buyers are more likely to purchase the company’s products.
Market Share Growth
The second important category for improvement is the increase in market share. In this category, the goal could be to increase coverage by 5% for markets the company has recently entered. For these two objectives, the time frame for completion should be two reporting years. A clear time frame can help formulate a better strategy for achieving and measuring results (Kalaignanam et al., 2021). Localized marketing campaigns might be the right solution for Lululemon in this situation. This will help the organization focus more on its benefits and show potential customers why they should choose its products.
Customer Satisfaction
Another important goal to pursue is customer satisfaction with the purchased product. In this area, it is essential to demonstrate the best possible marketing by setting a goal of reducing customer complaints by 10% over the next two years. Thus, the company must analyze the main reasons for customer dissatisfaction with its products and draw certain conclusions for each category of negative reviews. Lululemon can better understand how satisfied or disappointed people are with particular innovations (Kalaignanam et al., 2021). Moving in this direction of research, the company’s following products will need to be designed in such a way as to eliminate the most apparent flaws that consumers are not ready to put up with.
Conclusion
Lululemon is a well-established company in the sportswear market, and it has a permanent customer base. However, many negative moments, such as a pandemic or competitive pressure, can shake the position of an organization. In this regard, adhering to specific marketing strategies and plans that will help eliminate risks and apply new effective work systems is necessary. These are targets for setting new benchmarks in financial earnings, negative customer reviews, and new product launches. All this can help the company significantly strengthen its position and eliminate many weaknesses.
References
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