GROUP 2

ĐINH THỊ THUÝ HIỀN

NGUYỄN THỊ THANH BÌNH
NGUYỄN THỊ NGỌC LINH
NGUYỄN TRỌNG NGHĨA
NGUYỄN THỊ TÚ ANH

Chap 11: Pricing strategy LULULEMON

TABLE OF CONTENT

Thanh Binh
Ngoc Linh
11-21
11-19
Thuy Hien 11-18 11-20 Continue to
Willingness to pay Price affects Could Lululemon succeed by
Lululemon customer employing the
premium price for archive the same
Introduction Lululemon’s perceptions of level of success same premium-
products Lululemon had it executed an pricing stratergy
alternative pricing or not?
stratergy?
Trong Nghia
Tu Anh

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 What is
Lululemon?
https://shop.lululemon.com/

Lululemon is an athletic apparel retailer  domiciled

in Delaware and headquartered in Vancouver, Performance Lifestyle Yoga
shirts, pants apparels accessories
Canada. Founded in 1998 as a retailer of yoga
and shorts
pants and other yoga wear, Lululemon has since
expanded to sell its products internationally in 491
stores as well as online.

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 11-18
Relative to customer value, explain customers’ willingness to
pay premium prices for Lululemon’s products.

It quickly risen to 400 stores around Lululemon The company In other word, Complimented by a
the top of a the word, its inspires an exudes the this brand is “no discounts”
bustling market recognized logo image and philosophy active, healthy, credo
=> A major role An iridescent lifestyle. Captured by Back-to-nature Loyal customer-
in defining. lower-case. it manifesto. lifestyles. base willing to buy
Everything.

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11 -
19
Based on principles from the chapter,
explain how price affects customer
perceptions of the Lululemon brand.
Lululemon
Brand has a premium price tag. This
affects customer perception, stimulates
customer curiosity.
Lululemon Lululemon
Sells products at high Conveys a message
prices so few people that makes the brand
can buy the products meaningful that
of this brand, the makes an impression
product will not on customers.
become mass- Do not offer
produced. This makes discounts, leading
their products become customers to believe
a premium icon. Rich that the price is right
people will be willing for the value of the
to spend money to product, not that the
buy products to affirm company
their status. intentionally raised
Lululemon the price too high.
Has really proven their product to be
worth the premium price when compared
to other brands. Product materials, unique
designs, decoration of stores, service of
staff, ... all of products bring customers a
high-class experience. Lululemon has
5
successfully made customers happy. Place Your Footer Here
11-20
Could Lululemon have achieved the same level of success
had it executed an alternative pricing strategy?
• Lululemon’s pricing strategy is a valued- based
• It may be possible. Although pricing
pricing strategy. But It is different from other brands
strategy makes a significant contribution with secret formula.
to brand’s success, other factors affect
this success. • Lululemon has found success in marketing strategy.

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11-21 Can Lululemon continue
to succeed by employing the Lululemon’s price integrity is
same premium-pricing
another reason for its
strategy? Explain
outperformance. Promotional
periods notwithstanding,
products are not discounted,
and customers know they
must pay the full price if they
Why the want the product.
brand has
been
successed?
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Heavy discounting is one
of the biggest issue
plaguing the retail
industry at present. Stores
are increasingly leaning
on promotions as a way
to bring customers in the
door, and while this
certainly may work in the
short term, it ultimately
makes it harder to
convince customers to
pay full price in the long
term.

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To scale back on
discounting, some
brands have cut
inventory levels to
prevent them from
having items left over,
which are vulnerable to
markdowns. These
markdowns can also
destroy a brand's image
and make its products
seem less desirable.

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On the contrary, Lululemon is able to
prevent this from happening as its
products are available exclusively in its
own stores and online platform.

This means there is no risk of Lululemon

items creeping their way into the
clearance racks of department stores or
ending up in the off-price channel. The
brand stays desirable and exclusive, and
ultimately, customers are prepared to
pay full price.

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11-21

Owing to developing the demand of

products, if Lululemon is to sustain its
premium pricing strategy, it must maintain
all the benefits that its customers value.
Additionally, it will likely have to enhance the
benefits of the products.

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Thank
You
GROUP 2 Lululemon