Teacher Lululemon pricing strategy Lululemon yoga pants is one of the iconic products in the sports apparel industry due to its price and brand recognition. It is also the Lululemon’s flagship product. Its founder Chip Wilson states this product is not for everyone stating that its price ranges from $82 to $118 which is could be hefty for the common consumer and therefore targets the high end consumer (Wakeman, 2013). As a company, Lululemon is an athletic company which specializes in yoga. The segment of the market which it caters is the upper segment of yoga practitioner in the athletic industry.
It packages its products as only belonging to “cultural creatives” or those individual who are in pursuit of greater meaning in life rather than acquiring material things which in essence is consistent with the principles of yoga (www. corporate. gaiam. com cited in slideshare. com). As a company also Lululemon conveys the image that its wearers “elevate the world from mediocrity to greatness” (www. lululemon. com, nd). The product and its manufacturing process also uses organic materials processed and eco-friendly factories consistent with the environmental sensibilities of the high end market.
Lululemon incorporates fashion with ecology. In short, Lululemon as a yoga sports apparel caters to the high end of the market who are conscious about status and price its apparel accordingly. Lululemon commands premium prices based on the following factors - targeting the high end market segment of the yoga segment in the sport industry, packaging its products as a status symbol and distinct from its competitors. There are competitors in the sports industry however that do not capitalize on “image” and “status symbol” to justify price just like Lululemon.
Lululemon’s closest competitor Nike also employs marketing strategy by packaging its products based on active lifestyle and sportsman attitude embodied in its slogan “Just do it” (Nike. com, nd). Nike therefore price its products accordingly. It employs a going rate pricing strategy which is also considered a premium price but also considers the pricing competitors in the industry such as Adidas and New Balance (except Lululemon of course). Its price is therefore comparable to its competitors.
Compared to Lululemon, it employs the pricing strategy of value pricing where it sets its premium prices based on the status symbol of which their products personifies. Obviously, it does not consider the price of its competitors and does not mind the disparity or the competitiveness of its price. Its premium price even justifies the image of the brand. On the end of consumers, they are willing to pay premium price for their high end perception of the brand. Lululemon’s pricing strategy shows that pricing at a premium or value pricing does not necessarily make a product uncompetitive.
It is critical however that such pricing strategy must be justified by its product, marketing strategy and consumer perception. In the case of Lululemon, the quality and fashion sense coupled with eco-friendly sensibility is used as a basis of a “transcendental” marketing approach that appeals to its target market. The consumers on the other hand find the marketing proposition of Lululemon appealing that they are willing to pay premium price for the status symbol it conveys. References Wakeman, Jessica.
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