MKT 1040 – Final Report

Student Name: Prem Pathak

Conestoga ID: #8943648
Professor: Amy Hazelwood
Product Name: Lululemon Level Smart Yoga Mat
6th December 2023
Introduction

This study suggests the extension of Lululemon’s product line. The new product
series will elevate the success of Lululemon in the Canadian Clothing Market
especially in the Sportswear section amalgamated with the concept of
sustainable development and follow the buzz ‘SPORTSWEAR FOR ALL’ across the
age groups.
The product suggestion is to take a move forward in the direction of Sustainable
Development and Health wellness.
Introducing Lululemon's groundbreaking Smart Yoga Mat, a fusion of traditional
practice and cutting-edge technology that redefines your yoga experience. This
innovative mat is more than just a yoga accessory – it's a companion designed to elevate every aspect of your
journey on the mat.
Imagine a yoga mat that not only provides a stable foundation for your poses but also acts as your personal yoga
guide, offering real-time feedback and insights. The Lululemon Smart Yoga Mat seamlessly integrates technology into
your practice, bringing intelligence and connectivity to the forefront.
Crafted from high quality, ecofriendly materials, the Smart Yoga Mat maintains Lululemon's commitment to
sustainability without compromising on comfort. Its nonslip surface ensures stability, allowing you to focus on your
practice without distraction.
Connect the Smart Yoga Mat to your smartphone through the dedicated Lululemon app for an immersive experience.
Access a library of guided classes, track your progress, and set personalized goals. This mat becomes an integral part
of your digital life, making it easier to stay committed to your practice.
With customizable settings and programs, the Smart Yoga Mat caters to your unique needs, whether you seek an
energizing morning flow or a calming evening session. Lululemon's commitment to blending fashion, functionality,
and innovation shines through in this mat, offering versatility and a tailored experience for individuals at any stage of
their yoga journey.
Step into the future of yoga with Lululemon's Smart Yoga Mat, where tradition harmonizes with technology to create
a connected and empowering practice. Elevate your yoga journey with a mat that transcends the ordinary, making
each pose a mindful and enjoyable experience.
Brand/Manufacturer Information and History (Our History, n.d.)
 Lululemon was founded in 1998 by Chip Wilson in Vancouver, with its first standalone store opening in
November 2000.
 The company originated as a seller of yoga pants and related apparel, later diversifying to include athletic
wear, lifestyle clothing, accessories, and personal care items. With a presence in 574 global stores, the
company also conducts online sales.
 1998 – Opened first retail space in a local yoga studio in Kitsilano, Vancouver, Canada.
 2000 – Opened first official store in Vancouver.
 2003 – Opened first store in United States in California.
 2004 – Opened first store in Asia Pacific in Melbourne, Australia.
 2007 – Went public and listed shares on the NASDAQ.
 2009 – Launched Global ECommerce site.
 2010 – Host first Ambassador Summit
 2011 – Hosted first SeaWheeze Half marathon and Sunset Festival
 2014 Opened first store in Hong Kong at ifc mall.
- Opened research and development facility at lululemon Store Support
Centre (SSC) in Vancouver, Canada
 2016 – Launched global social impact program, here to be, to support wellbeing though movement,
mindfulness, and advocacy.
- Opened first stores in Shanghai and Beijing.
 - Created uniforms for the Canadian men’s and women’s beach volleyball
teams for the 2016 Summer Olympic games in Rio de Janerio, Brazil.
 2019 – Partnered with the United Nations Foundation to launch Peace on Purpose, a program
designed to address the mental and physical health of UN humanitarian aid workers.
- Unveiled Power of three five-year strategic plan to accelerate growth.
- Opened first largescale, experiential store in Chicago, Illinois.
 2020 – Introduced global pay protection to support employees through the COVID 19 crisis.
- Released Impact agenda, our social and environmental goals, and strategies
to create a healthier future.
 2021 – Raised minimum base pay and expanded benefits for global employees.
- Announced partnership with the Canadian Olympic Committee and
Canadian Paralympic Committee as the official Outfitter of Team Canada
through 2028.
 2022 – Entered the footwear category with the launch of four activity specific styles made for women
first.
- Opened first stores in Spain in Barcelona and Madrid.
- Launched lululemon Studio and new membership program.

Industry Information and Statistics (Annual Report 2022)

Lululemon is a clothing brand which mainly manufactures sportswear and can be categorized within industry into
Clothing, Fashion and Sportswear.
Their Net Revenue (By Channels) in percentage for the year ended 2022,
Channel (in %) Net Revenue (in Million US$)

Company Operated Stores 45.12% 3648.13

Direct to Consumer 45.82% 3699.79

Others 09.44% 726.6

100.00% 8074.52

Product Lifestyle Strategy

 Lululemon is currently in the Growth stage of the product life cycle.
 By introducing innovative and stylish products time to time, the product life cycle can be extended.
Product Changes
Innovative and different from Typical Yoga Mats
Well integrated with technology
Sustainable raw materials
Marketplace Trend Analysis
Lululemon's Smart Yoga Mat integrates advanced technology, offering real time feedback and personalized guidance.
Market trends highlight positive consumer reviews, strong competition, and strategic branding. With a focus on user
demographics, global appeal, and potential partnerships, Lululemon aims to maintain and expand its share in the
evolving smart fitness mat industry.
Target Market Segment
 Health-Conscious group of people.
  The trend for Yoga and mental wellness is notable among Gen Y.
Target Market Profile
Geographic
 Canada
 United States
 United Kingdom
Demographic
 Millennials, Gen X, Gen Y and Gen Z
 1255 Years
 64% of Canada’s population (Population estimates on July 1st, by age and sex, n.d.)
 Gender: Male and Female
 Marital Status: Single and Married
 Average Disposable Income of 33 Years olds in 2022: $53,500 (Income of individuals by age group, sex and
income source, Canada, provinces and selected census metropolitan areas, n.d.)
 Teenagers and Adolescents live with their Parents or guardians.
 Younger Millennials rent home.
 Older Millennials own home.
Behaviouristic
 Health-conscious individuals prioritize products enhancing overall wellbeing, making the Smart Yoga Mat
appealing.
 Those valuing personalized yoga routines and real-time performance feedback are drawn to the Smart Yoga
Mat.
 Regular yoga practitioners see value in the Smart Yoga Mat's features for enhanced and tracked sessions.
Psychographic
 Health Conscious: Physically and mentally
 Self-learner
 Spiritual
 Meditative
 Stressed
 Environmentally Aware
 Mentally Sound
 Highly skilled tech user
 Social media influencers
 Connect globally via technology.
 Socially responsible
Perceptual Map

Product Differentiation (Lululemon Official Stores in Canada)

 The Level Smart Yoga mat will change the way people do Yoga and bodily activities by enhancing the
experience through its smart tracking of body gestures by sensors and the Level mobile app.
 Accurate statistics like Heart rate tracking, SPO2, Correct posture of Yog asana, Calories burnt.
 Some competitors have launched their respective Smart yoga mats, but their tech is not fascinating and are
also not value for money.
 Features:
o High quality environment friendly sustainable fabric used.
o Sensor based activities monitoring.
o App connectivity
o Easily washable
o Fast Charging (0% to 80% in 1 hour)
o Can charge through solar panels too.

Promotional Strategy
 Lululemon is a leading customer-oriented sportswear and gear brand in Canada.
 The brand has already a positive approach on the customers.
 Brand is already well-established but to create Product awareness, the utilization of Inbound and Outbound
promotion is highly required among masses.
 This will ensure people’s interest in the product.
Outbound Communication Tools
1. Advertising – Television, Billboards
a. 2030 second ads aired during Baseball and Football matches.
b. Align with the target audience.
2. Sales Promotion > Membership discounts
3. Newspapers, Magazines (Print Media)
Inbound Communication Tools
1. Social Media > lululemon Instagram
a. 4 million+ followers
b. Mostly Millennials and Gen Z
2. Public Relations > Brand Ambassador
 a. Jordon Clarkson, NBA star player
b. Leylah Fernandez, Tennis Player
c. Connor Bedard

Connor Bedard Jordon Clarkson

Leylah Fernandez

4 Month Promotional Plan

Month Activity Start End Date Description Benefits/Result of
Date Activity
January Social Media Jan 1, Jan 31, Instagram campaigns, Twitter ads, Spread awareness and
2024 2024 Facebook, and Meta challenges. create an excitement
Instagram challenges like #levelup. among the potential
audience.

February Advertising Feb 1, End of Promotive ads through Television, Create awareness
2024 Season Radio, and Print media.

March Sales Promotion Mar 1, April 15, Coupons and Membership discounts Instigate sales at point
2024 2024 of purchase.

Timed with new year

resolutions to stay
healthy!
April Public Relations Apr 1, June 30, NBA Player Jordon Clarkson, Tennis Product Endorsement
2024 2024 player Leylah Fernandez and NHL
star Connor Bedard are the faces of
the brand and will share their health

Pricing Strategy
Objectives
 Target Return Profit:
Lululemon is likely to establish a premium price for the Smart Yoga Mat, aligning with its upscale brand,
ensuring profitability, and reinforcing the product's image of superior quality.

 Sales Volume:
 Striking a balance, Lululemon aims for a substantial customer base by combining premium pricing with an
emphasis on broad market appeal, allowing for both profitability and extensive market penetration.

 Market Share:
Lululemon seeks to secure a competitive market share by strategically pricing the Smart Yoga Mat, providing
a compelling value proposition to attract a diverse range of customers.

 Pricing Constraints:
Considering production costs, market demand, and consumer sensitivity, Lululemon will set a price that
covers expenses while remaining appealing and competitive in the market.

 Competitor Pricing:
By analysing competitor pricing, Lululemon can effectively position the Smart Yoga Mat, adjusting its price to
maintain a competitive advantage while justifying the premium through distinctive features and superior
quality.

Approach:
Lululemon wants to sell the Smart Yoga Mat at a higher price because they believe it's a really good product. This is
called a "premium pricing strategy." They think people will see the higher price and think the mat is super special and
worth it because it's high quality and has cool features.

By making the Smart Yoga Mat more expensive, Lululemon wants people to see it as a top-notch product, especially
those who already know and trust the Lululemon brand. They hope that customers will think it's a great value
because it's from Lululemon and comes with extra benefits. This way, they not only make money but also show that
they're a leader in the market for smart fitness mats.

Price Comparison with other brands

Product Length (in mm) Amazon Walmart Respective Average Price

Websites
Lululemon The Mat 5.5 mm $105 Not $108 $106.5
available
Manuka ProLite 4.7 mm $120 $187 $108 $138

Scoria Cork Yoga Mat 4.5 mm $132 Not $124 $128

Available

Proposed Price based on the existing product.

As the existing product has many competitors in the current market, Lululemon with its smart yoga mat has changed
the whole pricing strategy. As they are the ones who introduced such product, they have the power to choose the
price they want to. Though, based on the Target market and audience and keeping in mind the market conditions
they should introduce it between affordable to premium price segment, so that the one who is willing to purchase
know its optimum utilization.
Suggested pricing for the Lululemon Level Smart Yoga mat should be higher than that of the existing (‘The Mat’)
one’s, but not that much higher that it gets into ultra-premium segment.

Pricing Rationale
 The mat has cool features like sensors and real-time feedback, making it kind of like a smart yoga buddy. This
makes it a bit more expensive.
 Lululemon is known for its top-quality and super cool athletic stuff. So, because the Smart Yoga Mat is from
Lululemon, it costs a bit more.
  The mat is made from eco-friendly stuff that lasts longer and feels comfy. Because of this, the price is a bit
higher.
 They looked at what people want and how much they'd be willing to pay for a smart yoga mat. The price is
based on what people expect and are okay with.
 They also checked out other smart fitness products to make sure the Smart Yoga Mat is priced right
compared to them.
 The mat does things like giving personalized yoga tips, which makes it special. So, the price reflects all these
cool things it can do.
 Developing and testing the technology in the mat costs money. They considered this when deciding how
much it should cost.
 They thought about how to get the mat to you and told people about it. The costs of doing this are part of
why it costs what it does.
 They made sure the price is something people who love Lululemon can afford.
 They're thinking about what might come next for the Smart Yoga Mat. This could affect the price because it's
part of a bigger plan.

Breakeven point
Assumptions:
 Fixed costs = $1,000,000
 Unit price = $210
 Unit variable cost = $10
BEP = 1,000,000/ (210-10) = 5000 units
To break even on the investment required to equip Lululemon production facilities requires sales of 5,000 units.
As its seen that the ratio between Online and offline medium is neck to neck, we assume that the official Lululemon
stores will sell 2500 mats.
Lululemon Official Retail stores (Canada)
= 2500 mats/79 stores = 32 mats/store

Place/Distribution strategy
As the brand is particularly focused to sale its products only through its official website or retail store, with a
differently approached strategy, its highly possible that it will certainly do less sales when compared to the existing
and established products.
Lululemon Official Retail stores (Canada)
 The only offline distribution medium for Lululemon products
 Customer can experience the product.
 Has 79 stores, 8 presents in Toronto, which is the biggest city of Canada in terms of population.

New Distribution channels

 It is notable that the brand sales its products only through official store or website, so to expand and reach
more and more target audience, they should lay emphasis on the bigger players like Walmart and Loblaws.
 Also, the brand should focus more on selling through different online stores such as Amazon, Walmart, eBay,
Bestbuy, Flipkart.
References
(2022). Annual Report 2022. Lululemon. Retrieved from
https://corporate.lululemon.com/~/media/Files/L/Lululemon/investors/annual-reports/lululemon-2022-
annual-report.pdf

Income of individuals by age group, sex and income source, Canada, provinces and selected census metropolitan
areas. (n.d.). Retrieved from Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?
pid=1110023901

Lululemon Official Stores in Canada. (n.d.). Retrieved from https://rentechdigital.com/smartscraper/location-

reports/lululemon-locations-in-canada#:~:text=How%20many%20lululemon%20locations%20are,all
%20lululemon%20locations%20in%20CANADA.

Lululemon The Mat. (n.d.). Retrieved from

https://shop.lululemon.com/en-ca/p/yoga-mats/The-Mat-5mm/_/prod10990056?color=0001&sz=ONESIZE

manduka yoga mat pricing. (n.d.). Retrieved from https://www.manduka.com/products/prolite-yoga-mat?

_pos=2&_sid=776bfb46b&_ss=r

Our History. (n.d.). Retrieved from Lululemon: https://corporate.lululemon.com/about-us/our-history

Population estimates on July 1st, by age and sex. (n.d.). Retrieved from Statistics Canada:
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000501

Scoria Yoga mat. (n.d.). Retrieved from https://www.scoriaworld.com/collections/all-adult-cork-yoga-mats/products/

tree-of-life-cork-yoga-mat-4-5mm

Image References:
Connor Bedard’s Image: https://s3951.pcdn.co/wp-content/uploads/2023/01/Connor-Bedard-Team-Canada-2-
scaled.jpg
Jordon Clarkson’s Image: https://images2.minutemediacdn.com/image/fetch/w_2000,h_2000,c_fit/https://
lasportshub.com/files/2016/06/jordan-clarkson-nba-los-angeles-lakers-utah-jazz.jpg
Leylah Fernandez’s Image: https://remezcla.com/wp-content/uploads/2022/01/Leylah_Fernandez_Tennis_Sports.jpg
Lululemon Logo: https://i2.wp.com/logos-download.com/wp-content/uploads/2016/08/Lululemon_logo.png