Lululemon's Pricing Strategy Analytical Essay by Top Papers

Lululemon's Pricing Strategy
An examination of athletic clothing brand Lululemon's pricing strategy.
# 144194 | 1,000 words | 0 sources | 2009 | US
Published on Dec 01, 2009 in Business (Companies)


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Description:

The paper reveals that even in the midst of a global economic downturn, athletic clothing brand Lululemon continues to achieve success with its premium pricing model. The paper relates that Lululemon's Yoga-inspired clothing is expensive, with hoodies going for $120, but its customers have demonstrated price insensitivity, driving the company's revenues from $269,942,000 in FY 2008 to $353,488,000 in FY 2009. The paper also relates that year-over-year, selling expenses as a percent of net revenues are down from 34.6% to 33.4%, indicating that customers are coming to Lululemon without being lulled by advertising; the company's use of viral Web 2.0 advertising, including grassroots Facebook campaigns, is paying big dividends.

From the Paper:

"Even in the midst of a global economic downturn, athletic clothing brand Lululemon continues to achieve success with its premium pricing model. Lululemon's Yoga-inspired clothing is expensive, with hoodies going for $120, but its customers have demonstrated price insensitivity, driving the company's revenues from $269,942,000 in FY 2008 to $353,488,000 in FY 2009. Year-over-year, selling expenses as a percent of net revenues are down from 34.6% to 33.4%, indicating that customers are coming to Lululemon without being lulled by advertising; the company's use of viral Web 2.0 advertising, including grassroots Facebook campaigns, is paying..."

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APA Format

Lululemon's Pricing Strategy (2009, December 01) Retrieved December 08, 2019, from https://www.academon.com/analytical-essay/lululemon-pricing-strategy-144194/

MLA Format

"Lululemon's Pricing Strategy" 01 December 2009. Web. 08 December. 2019. <https://www.academon.com/analytical-essay/lululemon-pricing-strategy-144194/>

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