Segmentation & Target Market Selection
Lululemon is segmented based on variables of region, age, income, personality, loyalty status, and user status. Each designated segment will be served by the customizable elements of the user interface, as well as by differentiated promotional strategies.
Region - As Lululemon is being launched to a global market, special consideration must be given to offering content in various different cultures. These offerings will be limited to language groups with the most influence within the social media and online shopping markets. The reason for segmenting by region, or perhaps more accurately, by language, is quite simple. According to Sara Gardiner, a head manager at Lululemon, As Lululemon expanded the number of stores they had, they decided to not standardize the layout of each store. Rather they positioned their stores in 3 areas of priority: Hip urban, affluent, and suburban. Their store layouts differ per region, and could be safe to say that no two stores are exactly the same, and vary from region to region. (investor.lululemon.com, 2010) Further simply offering content in different languages, Lululemon will engage in promotional activities reflective of the region’s culture and social norms. Personality - This variable will very much direct how Lululemon is positioned for the diverse segments. Whereas some segments value prestige and name brand appeal, others value frugality and practicality. Lululemon will give consumers a platform to showcase the attribute that they hold in the highest regard. But the company will have to effectively promote these site advantages to the separate segments. User Status - Once again, the customizable interface will prove invaluable in attracting consumers of broad levels of familiarity. Non-users and prospects can begin their Lululemon experience with a simple purchase, and gradually evolve their experience as their proficiency with the interface...
Please join StudyMode to read the full document