Nike's Protection of Personally Identifiable Information

What is Personally Identifiable Information?

Personally identifiable information (PII) is "any piece of data that can identify a person, alone or in combination with other data items; also sometimes called personally identifying information" (Roberts & Zahay). As the threat of identity theft increases, so too does the desire to protect this sensitive information. Online consumers feel an increasing pressure to feel safe as they frequently release PII into the Internet in order to make purchases, online accounts, and social media pages.

Currently, "87% of users refuse to give information to a website because it was too personal" (Roberts & Zahay). That is a huge amount of consumers that, understandably, feel hesitant to release information that could help marketers. It is important for companies to ensure privacy policies for their customers' data, and to actively reassure their customers that they take actions to protect their information. 

How Nike Protects Their Customers

When purchasing from a company's website, it is important to be aware of the privacy policy held by the company - easily found by typing in "privacy policy for Company X" in Google. Nike's privacy policy is also easily found on their website. Their policy is broken down into several categories that are easily read and found thanks to a spacious layout and bolded headers. Nike adheres to the COPPA act passed by Congress in 1998 to protect children information. Nike specifically states they do not intentionally solicit information from anyone 13 years of age and younger.    

Information collected by Nike includes:

• Telephone numbers
• IP addresses
• Browser type and language
• Cookie information

Information that we give Nike when we agree to terms and conditions includes:

• Name, photos, birthday, gender
• Email
• Physical address
• Telephone number
• Contact lists
• Social media info and profile
• Location (GPS) info
• Activity and performance
• Credit card information - when necessary for purchases 

Knowing that this information is handed over to Nike, how much trust should you have? Nike has done a good job ensuring their customers' information is safe. Nike also offers options to modify and/or delete your information, but warns that it may still be publicly viewable. Even though there is the option to "delete" information, the policy goes on to say that Nike may keep information in backup files and archives.

Releasing personal information on the Internet can always be risky. Identity theft is rising across the globe, and Internet hacking has become a top concern for consumers. There are certain steps that we can take to protect ourselves from identity theft (Roberts & Zahay).

• Refuse to give unnecessary and too personal of information to websites
• Ask to have your name and address removed from marketing lists
• Ask to not share your name and address with other companies
• Be wary of how company's may use your information. If you have a bad feeling, play it safe
• Set your browser to reject cookies
• Supply false information  

From learning about this aspect of online marketing and interaction, I believe that my personal information is pretty accessible. To think otherwise would be naive. I do tend to trust the companies that I purchase from, and trust that they will use my information ethically. I also believe that some of my personal information can help marketers and companies cater to my needs and push products that I actually find useful rather than promoting random items.

Back to Google Analytics

As my semester comes to a close, I am asked to analyze the Google Analytics that is attached to my blog. In my last post I went into my Google Analytics a bit. Since that was so recent, I did not expect the change to be very large.

In the last month my blog has has 49 views. Not too low considering November was a slow month for my posts. Just yesterday I had an additional 17 views, due to 3 posts in the last week.

My most popular blog remains my first post with 73 views, 5 up from yesterday! I think this is a result of linking the title in my last post to my first post, encouraging people to check it out.

The majority of my viewers use Google Chrome as their main browser (64%) and tend to prefer using Macs (50%) as opposed to PCs (32%) with the remaining 17% accessing my blog on the iPhone.

Roberts, M., & Zahay, D. (2013). Business Models and Strategies. In Internet marketing: Integrating online and offline strategies (3rd ed., pp. 60-            79). Mason, Ohio: South-Western Cengage Learning.  

Website Design and Mobile Presence of lululemon

This week's post focuses on website design and mobile access to a company's products or service.  I decided to look at lululemon's web design and mobile app to decide if lululemon practices good website design and easy to use mobile app practices. At the very end, we'll check in to see how my blog has been doing this semester!  

lululemon's home website

lululemon's website is easy to navigate and is appealing to look at. lululemon follows several of the tips that are presented in my coursework's textbook. Some seem to be common sense, such as: use large, readable fonts, use simple language, use white space effectively. However, a lot goes into designing a website. Marketers must look at several things when creating a web page in order to fully capture consumers. Two of the most important parts of website design are usability and customer experience. 

The usability of a website can take time to perfect. Prototyping, beta testing, customer feedback, and ongoing research are just a few of the final steps that go into making a functioning and effective website (Roberts & Zahay).  

Customer experience is probably the most important part of website design. If a customer has a poor experience, they are not likely to return to your website. According to our text, having a presence and an interactive, or cognitive, website can increase customer experience. Emotions or attitudes as well as a sense of connectedness can also be appealed to through web design's visuals.

The Forrester methodology has created a rating system for usability based on four areas: Value, Navigation, Presentation, and Trust (Roberts & Zahay). Below are images of lululemon's website. Let's see how user friendly it is, how the customer experience is enhanced, and how each would affect a rating from a customer.  

lululemon homepage

When you come to lululemon's homepage, it looks very clean and appealing. It has a yogi wearing lulu's clothes with promotions on special edition gear. These images alone give a calming emotion to me. At the top, you can easily see and navigate the categories of products that lululemon provides. At the bottom, there is an option to subscribe to lululemon emails to "be the first to know". To me, the presentation and navigation ratings would be high based on the homepage alone. 

lululemon effectively using CSS

To navigate further into the website, you simply scroll along the categories at the top. Once over the desired category, a drop down pane shows columns of subcategories. In this example we want to look at women's items, so we are then given the options of tops, bottoms, accessories, activities and features as well as the option to search through new items, all gear, made too much items (sales items!), and gift cards. This type of design is known as cascading style sheets (CSS), which is the most organized and easiest to browse for customers (Roberts & Zahay). Navigation is again shown as a strength for lululemon when considering usability rating. 

lululemon's filter function

If you're overwhelmed by the amount of products that lululemon has in some categories, they've provide an easy way to narrow it down! You can filter through any category by size, and you can sort the results by highest price, lowest price, and best sellers. By offering filters to their customers, lululemon increases their value aspect of usability. An essential function is available when there are too many options, a filter! This would increase my rating of usability.  

effectively using "breadcrumbs" to help navigate

Once you've found an item that catches your eye, lulu tries to make it easy to customize your order and place it into a shopping bag. With multiple colors offered in products and interactive images that change and zoom accordingly, you can create and see just what they want. At this point, we have delved pretty deep into this website, it could be easy to get lost! However, lulu utilizes the function of "breadcrumbs", a navigational aid at the top of pages that allow us to easily get back to 'home', 'women' items, 'tanks', 'medium support tanks' (Roberts & Zahay). Breadcrumbs allow for us to keep track of where are are on the site at all times. This adds to customer experience and usability in the forms of navigation, presentation and trust. 

lululemon's app

Mobile apps have become an increasingly popular way of shopping. lululemon's app is available to iPhones and Androids and is easily found. When first setting up the app, lululemon asks three questions: Where are you?, Male or Female?, and Favorite Ways to Sweat. With these questions alone, lululemon is already working to personalize the app for you right from the start.

main page in the lululemon app

The main page on the app shows us the first ad banner at the bottom of the screen. It's an ad reminding us that they do free shipping. In the upper left hand corner, boxed in blue, is the navigation tool that is easily accessed from whatever screen in the app. 

home page in the lululemon app

The home page shows us again that lulu enjoys using CSS organization. Here you can find you account information and browse product categories quickly. Categories are clearly labeled on the parent page, with the child and grand child pages following suit. Again, by tapping anywhere in the blue box, you are redirected back to the main page.

Overall, I would give lululemon's website and app usability a high rating. Their navigation is superb along with their presentation. Their graphics, language, and over "feel" of the site is welcoming and trustworthy. Both are easy to use and can help add value to customer experience. The app is especially beneficial because the entire shopping experience can fit in the palm of your hand. 

Blog Update

Since the start of my blog, I have created 6 posts. All of these posts have gotten traffic from only the United States. I have gotten 232 page views, which is relatively low to me. My posts were not spaced as well as they could have been due to extenuating travel, so quite a few of my blogs were recently added which could affect the page view metrics. My most popular blog was my first one, "Reasons Why Nike Marketing Has Been Killing the Game"  with 68 visits. This makes sense since it is the post that has been up longest, giving it more time for exposure. Traffic sources are from fellow classmates. 

 

Work Cited:

Roberts, Mary Lou., and Debra L. Zahay. Internet Marketing: Integrating Online and Offline Strategies. Mason, OH: South-Western Cengage Learning, 2013. Print.

 

Importance of IAB Display Ads and Other Ad Formats

Ad formats across the Marketing Spectrum

This week's post will focus on the different forms of online advertising and these ads' compliance with IAB Guidelines. When I looked at my three companies, I noticed that Nike and lululemon did not have advertisements on their webpages. My thinking is that since they are well established retail stores with large market shares, they do not want to promote other products and do not feel the need to use acquisition strategies. Under Armour does have a pop-up that will be discussed later. To make this post a bit more informative, I decided to also look at Reebok's online advertising efforts. In addition to analyzing online advertisements, I will be looking at how these companies' mobile sites differ from their online advertising on computer screens. At the end, I will make a suggestion for one company regarding an online advertising strategy that reinforces their brand.

IAB Guidelines and Importance 

http://blog.mgid.com/wp-content/uploads/2014/02/IAB-Logo.jpg

When online advertising first began, many consumers found them bothersome and distracting. Not much has changed regarding their annoyance, but ads have improved. To help curb the annoyance of pop-ups and ads on websites, the IAB was formed in 1996. IAB stands for the Interactive Advertising Bureau, and they are responsible for 86% of online advertising in the United States. They promote the value of the interactive advertising industry while also setting the standards and guidelines others can strive to follow. 

As the Internet matures, so must the strategies and advertisements that marketers use. We are seeing a switch from Flash advertisements due to the dwindling Flash audience and fewer mobile devices playing Flash content. An important medium to look at is the emergence of HTML5. This is the new platform for creative advertising that marketers need to take advantage of.  HTLM5 can do everything that you would want to do for an online ad without needing plugins or additional software. It's "actually three kinds of code: HTML to provide structure, Cascading Style Sheets (CSS) to take care of presentation, and JavaScript to make things happen (Marshall)! The latest IAB Guidelines promote the use of HTML5 ads. 

The following image shows the 5 main ad formats that IAB is pushing currently: 

http://www.iab.com/wp-content/uploads/2015/06/Mobile-Rising-Stars-Final-2-24-12IAB22512F_mobile.pdf

Ad Formats in Action

As stated before, Nike and lululemon lacked advertisements on their home pages. However, Under Armour had a pop-up ad that encouraged users to sign up for email notifications and promotions. It seems as though Under Armour is using their homepage as a quick spot to push their email promotions. A quick click of the "x" in the upper right corner closes the ad, and you can resume browsing. This type of ad falls under the "pushdown" category of the "Rising Star" ads, meaning that it is compliant with IAB guidelines that characterize this type of ad as pushing down site content so the ad remains center.

Since my other companies did not have advertisements, I decided to look at Reebok. They are in the same industry as Nike and Under Armour, so I thought it would be a reasonable company to use in this post. Similar to Under Armour, Reebok also promotes signing up to receive email notifications when visiting their home page. Again this form of advertising is compliant with IAB guidelines. 

I thought it was interesting that both of these companies utilized these types of ads on their homepage. I think it may have to do with the established brand awareness/recognition that Nike and lululemon have created. Two top-dog companies do not need to bother their customers with pop-ups asking to sign up to their email list. While Under Armour is a world-wide known brand, they are still working to catch up to Nike's status. Reebok is also fighting to increase their market share, so it makes sense that both of these companies are striving to acquire customers.  

Mobile vs. Computer Display

Nike's mobile display was incredibly similar to their online display. As on their landing page on computer display, Nike emphasizes their customizing option and gives quick access to NikeID.

lululemon had an for their mobile app at the top of their mobile website, boxed in blue. This form of advertising follows IAB Guidelines for Mobile Rising Stars and is classified as the adhesion banner, with a simple "x" closing the banner and allowing the consumer to continue browsing. lululemon also makes it easy to start shopping by highlighting their free shipping option, highlighted by the red box.

Under Armour, like Nike did not have any advertisements. However, they do have a quick link to their shopping cart and search bar tool to increase easy browsing and purchasing.

Reebok had an interesting notification flashed across the bottom of the screen. It was a scrolling message informing me that by clicking on this site, I would automatically be allowing cookies to start tracking my browsing. It was very quick, and at the end said I would only see this notice once. When I refreshed to try and get a screenshot of the banner, it did not come up again, but the blue box at the bottom is where the notification ran. I've never seen this happen, at least never noticed, on another site. The fact that Reebok is using cookies shows that they are working to expand their knowledge of their target audience. 

Online Advertising Strategy for lululemon

lululemon is an incredibly well established brand considering it was founded in 1998. In just under 20 years they have become a world-wide, highly desirable brand. I think that an online advertising strategy could be extremely beneficial for them. By incorporating videos, rich media content, interactive/immersive ads, and social media, lululemon could create a more personable brand. 

Personally, I love it when a company's social media accounts have personality and interact with the customers. I think that could be an area where lulu could focus on improving. I also believe that creating videos that embody their brand, which focuses on healthy, happy living while wearing comfortable, practical clothing. Improving customer experience online is another important aspect of an online advertising strategy. By creating an easy to use site with features such as cascading style sheets, large fonts, and easily accessible search and home buttons, customers will enjoy shopping online more. 

Work Cited:

*Note: all images without URLs were screenshots from my computer and iPhone.

"2015 ADVERTISING CREATIVE GUIDELINES FOR DISPLAY & MOBILE – UPDATED FOR HTML5." IAB Display Advertising Guidelines. Interactive Advertising Bureau, n.d. Web.

Marshall, Gary. "HTML5: What Is It?" TechRadar. N.p., 3 Dec. 2013. Web.

Search Engine Marketing of Under Armour

The Usefulness of Search Engine Marketing

Search engine marketing, or (SEM), is a form of internet marketing that "seeks to promote websites by increasing their visibility in search engine result pages" (Roberts & Zahay). Companies can maximize their search engine marketing in two ways: Search engine optimization (SEO) and pay-per-click (PPC). The maximization of this marketing form can help increase the brand name of a company and ensure their company jumps to the top of search engine lists. 

The main difference between these two is paid and unpaid advertising. SEO focuses on creating sites based on content that pushes it to the top of a search engine list such as Google and Yahoo. They are also known as natural, or organic searches. 

PPC is also called paid advertising, and it uses targeted keywords to gain search results on search engines. It's main purpose is to obtain a high ranking in specific search categories based on certain keywords.

Natural Vs. Paid Search Results

As seen in the image below, the natural results are boxed in green, and the paid ads are boxed in red. The paid ads are the first thing that a searcher will see. However, these paid ads may not always be the most reliable since larger companies can afford to pay more money to have their ads come up above others. That is why the natural search results can be more advantageous at times.

Of course there are advantages and disadvantages for both types of searches. Below are some of the advantages of disadvantages of each and how they relate to Under Armour (Roberts & Zahay). 

This post will look at Under Armour's search engine marketing, both natural and paid, on Google to see how effective Under Armour is at optimizing their search engine efforts. It will also show Under Armour's social media presence. 

Under Armour on Google 

When looking at the natural search results of Under Armour, I decided to use "running shoes" as the keyword since Nike and Under Armour are competitive in these areas. The results are shown below:

When searching for "running shoes" in the Google search bar, Under Armour does not come up in the natural searches even after searching through several pages. Here, we see the disadvantages of natural search for Under Armour. Through the natural search, we see that Under Armour would not be an immediate result for those searching for running shoes. As a consumer, I'm willing to search through the third page of results at most before moving to another search. Nike came up as a result at the bottom of the first page, while Under Armour was not even in the first three pages. 

When looking at the paid search results, we see that Under Armour is much more successful: 

Here we see the advantages of paid searches. Under Armour holds the first ranking position for the keyword "running shoes". Although a consumer may not always click on the paid searches, they will always look at them. This gets Under Armour's brand out there and in the eyes of consumers. It is immediate, and it shows consumers that Under Armour is a top brand name as they can afford top rankings.

When using the search "running shorts", Under Armour came up on the first page for natural searches as well as a top ranking in the paid search. This goes to show the importance of keywords and how beneficial paid searches and organic searches can be when used together. 

Social Media

Social media has become a huge part of a brand's success. It provides a way for a company to relate to their customers, to interact with them, to humanize, and give character to a company. It also helps companies to choose keywords by interacting with their customers through hashtags (#), comments, and trending items. 

Under Armour's social media efforts seem to be behind most other competing companies in the industry. Under Armour's Instagram for instance has mostly images of their sponsors and are not interactive or personable, use few hashtags to gain interest, and look more like blow up pictures seen as billboards instead of a social media post: 

Nike has more personable posts with details about pictures that help their customers relate to Nike as a brand rather than a company. They also tend to highlight their products rather than their sponsors in their posts. Nike's NRC grabs those that are part of Nike+ Run Club (#NRC) and tells the story of one of their dedicated customers that embodies what it means to wear Nike:

Finally, lululemon also has personable posts that engage their customers. On Thanksgiving, they shared a photo that read "I'm Thankful" in artsy print, encouraging their customers to share what they're thankful for. lululemon was also the leading poster, having a post as recent as 2 days ago, with Under Armour following 5 days ago, and Nike coming in with their most recent post at 6 weeks ago. 

What Can Be Made Better?

I think that Under Armour utilizes paid search very well, coming in at the top of most keyword searches for products in their industry. However, their natural search results vary based on the item being searched. This may have to do with the fact that Under Armour is more focused on their apparel rather than running shoes. To increase their natural search results, Under Armour should focus on their target market and using keywords favored by this market in their pages. 

Under Armour's social media efforts have room for improvement as well. With pictures that highlight their clothes and products, with normal people wearing them, I think they would be able to increase their social media presence. By using more creative hashtags and tapping into to current events, such as Thanksgiving as lululemon, Under Armour could gain more traction in trending items. A well-tuned, well-kept social media site can really help a company interact on a more personal level. 

Works Cited:

lululmeon. "The secret to having it all." Instagram, 26 November 2015. Photograph. 30 November 2015. 

Nike. "04:40:08." Instagram, 7wks. Photograph. 12 October 2015. 30 November 2015.

Roberts, Mary Lou., and Debra L. Zahay. Internet Marketing: Integrating Online and Offline Strategies. Mason, OH: South-Western Cengage Learning, 2013. Print.

Under Armour. "You can't spell UNDEFEATED without UA" Instagram, 25 November 2015. 30 November 2015.

Does Email Marketing Really Work?

Direct Marketing and Email Design 

Email marketing is expected to be the main form of promotional activity according to Dr. Debra Zahay and Dr. Mary Roberts, marketing professors at Universities across the country. With 58% of consumers starting their day with their emails, marketers have upped their email marketing budget to target the large percentage of consumers (Roberts & Zahay). 

This blog will look into the email design that goes into a promotional email from companies, specifically Nike. All three companies that I have been following (Nike, UnderArmor, and lululemon) follow good direct marketing and email design. I feel that Nike goes further in the area of personalization and customization, the two highest levels in the hierarchy of customer-focused marketing strategies as shown in the graphic below. This blog will also see if these emails are compliant with the CAN-SPAM act, and see if Nike is using email marketing to their full advantage.

Customization is the highest level of customer focused marketing. At this level, marketers have learned and gathered information from their customers to create and/or push products they believe will resonate most with a particular customer. Our book points out that Nike has excelled in this area by creating NikeID, a site where customers can customize products made by Nike. As a NikeID member, I have customized items through their site and had them delivered to my door. Their site is easy to use and encourages me to buy products that are similar to those I have customized. In addition to on-site promotions, Nike has acquired my email address in order to send me promotional emails as well. Below are images from a particular email I received from Nike and show how Nike follows good email marketing design and principles (Roberts & Zahay).

The first thing to look at when analyzing Nike's email practices is how it appears in the viewer's email inbox. When I first see the email from Nike, I can see that the subject line clearly states what they are promoting: the Women's Holiday Gift Guide. The "From" line reads: Nike and the "Reply To" line reads: Nike Customer Services. These aspects all appeal to transparency and align with the CAN-SPAM act discussed later in this post.

The first image is the initial picture that I see when I open the email. The image shows a man and woman wearing Nike gear, with the title "The Nike Holiday Gift Guide 2015". This title is linked to the Nike gift guide webpage, and when clicked a customer is sent to a "Gifts for Athletes" page. From here, I can easily access the women's attire and shop those products by clicking the bottom right "shop women's" hyperlink. You can also easily access the items that you can customize along the top bar. 

The next image shows children wearing Nike products and has two links to the boys' shop and the girls' shop. You can also access the guide from this page by clicking the "explore the guides" button which brings you directly to the shopping site for the guide! 

Next, the email shows a NikeID section titled "Customize with Nike ID" with a hyperlink to the NikeID site. Easy access to customized sites encourage consumers to make purchases because they can edit products to their exact liking.

Finally, at the very bottom of the email is a graphic that highlights the services they offer for their products, or in this case gifts. Again Nike promotes NikeID as a way for buyers to customize their gift. They also emphasize their free shipping and free returns. By clicking on any of the linked images, the viewer is directed to more information on each of these services. This image also has the "unsubscribe" option and Nike address that must be visible on all promotional emails to follow the CAN-SPAM act.

*All images were screenshots from a promotional email I received from Nike.

What is CAN-SPAM and its Requirements?

CAN-SPAM is an Act established in 2003 by the U.S. Congress to combat phishing, unsolicited, and offensive emails and is monitored by the Federal Trade Commission. The act promotes transparency from marketers by setting rules they must abide by. This act has the following provisions:

• It bans false or misleading header information - this means that a marketer must be truthful in their "To" and "From" lines in order to identify who the marketer is. The Nike email I received adheres to this provision.
• It prohibits deceptive subject lines - this also prevents marketers from luring consumers into traps. By having clear subject lines, consumers should be able to know exactly what the promoted product is. Nike's subject line clearly stated that they were promoting the Women's Holiday Gift Guide.
• It requires that an email offers an opt-out method - although at the bottom of the email, Nike did have the unsubscribe option in smaller print than the rest of the email.
• It requires that commercial email be identified as an advertisement and include the sender's valid physical postal address - Again, at the very bottom of Nike's email in small type, Nike's address can be found (Roberts & Zahay). 

Nike's promotional emails are in accordance to the CAN-SPAM act and because of that, are more appealing to customers. I do not have to worry about being spammed by Nike or clicking on an email that may promote something other than its subject line. As a consumer, it makes me trust Nike more and encourages me to be a repeat buyer. 

So Does Nike Successfully use Email Marketing?

I think that Nike's email marketing is successful. I usually browse through the emails they send me. One area I think Nike could use A/B testing is on their layout. Currently, the email's pictures are organized vertically and the customer must scroll quite a bit to see all the pictures. I think they could test their current design against another in which the picture are aligned horizontally, in panels that fit on the screen without having to scroll. They could measure the test site by conversions. 

I also think that Nike successfully uses the four internet "I"s to their full advantage.

• Interactive - Nike sends specific offers to customers based on their prior purchases and tastes
• Information driven - Nike sends emails that inform customers of current deals and popular items. It also allows Nike to gather more information on customers based on their conversions and open rates.
• Immediate - Nike offers a link at the bottom of their emails for questions and concerns. When clicked, a customer can enter their problem into an email and will get a reply within 24 hours.
• Involving - This is an area where Nike's website and promotional emails could be improved. Nike's emails are mainly composed of pictures, not interactive videos. Their website has videos and commercials that come up on the screen occasionally and has changing images that promote current trends (Roberts & Zahay). 

Overall, I think that Nike's email marketing strategy is successful. Their emails highlight specific products that are often catered to a customer's taste. Ultimately, a company's goal is to retain customers and increase value. As a repeat customer of Nike and NikeID, I think that Nike has accomplished this. With their transparent emails and level of customization, Nike has set themselves apart from other sport-apparel companies. 

R   Roberts, M., & Zahay, D. (2013). Business Models and Strategies. In Internet marketing: Integrating online and offline strategies (3rd ed., pp. 60-            79). Mason, Ohio: South-Western Cengage Learning.  

Lululemon's "Manifesto" Explained - Business Models of an Innovative Marketing Company

                          

Who is lululemon?

Founded in 1998 with ideas from surfer/snowboarder, Dennis "Chip" Wilson, lululemon has established themselves as the top yoga athletic apparel with an average growth rate of 31.6% in the last 5 years (Phalguni).  Their focus on building a successful business model has contributed greatly to their success. lululemon has established a merchant model to base their company on. More specifically, lululemon seems to have implemented the 'brick-and-mortar' model, a subset of the merchant model, by providing goods and superior services to their customers through corporate-owned retail stores and online shopping. According to Bloomberg, as of February 2015 lululemon operates 302 corporate owned stores in the US, Canada, Australia, New Zealand, the UK, and Singapore. To better understand how lululemon started with one location in Vancouver, Canada successfully launched 300+ stores, this post will dive into the values and business model that launched lululemon into the sphere of Nike and Under Armour.

What are the elements of a business model?

According to our book, "Internet Marketing Integrating Online and Offline Strategies" by Roberts and Zahay, there are six main functions of a business model:

• To establish a value proposition
• Identify a market segment
• Define the structure of the value chain
• Estimate the cost structure and profit potential
• Describe the position of the firm within its industry
• Formulate the competitive strategy that will allow the company to hold competitive advantages against rivals

How lululemon's model aligns with these elements: 

lululemon's value proposition has take on a new form with this company's revolutionary marketing. Instead of having a set statement, lululemon has a list of 31 phrases, or "ideas", that the company holds their educators to. lulu has translated this into a new 'manifesto' that they carry throughout their brand. Examples of this can be seen in their bags and clothing. This manifesto is implemented in order "to guide the company in creating a unique niche and future retailing success" (Beaumont). 

                                 

lululemon's ideal market segment are active, stylish, and middle to upperclass women whom value an active and healthy lifestyle. As consumers, we buy products that reflect who we are and help to create an image of ourselves that we are happy with. lululemon appeals to those hoping to identify with trendy sportswear, healthy living, active lifestyles and being fashionable all along! 

                       

lululemon's value chain depends on customer satisfaction and ensuring high quality products. Their products' technology is patent protected and offer the best quality sportswear available. Fabrics like Luon, Silverscent, and UV protection fabrics help set apart their products, adding value in the customers' eyes.

                     

With such high quality products, lululemon is able to charge a high premium for their clothing. With shirts priced at $48 and leggings ranging from $50-$120, lululemon has been able to create a huge profit margin that allows them to expand rapidly, pay for premium locations, and invest in their company and international markets (Beaumont). 

Within the athletic wear industry, lululemon has gone from a small-town, local run business to a dominant, global player in the last decade. Their program is designed the "support you in c

Reasons Why Nike Marketing Has Been Killing the Game

 

Why I chose Nike, Under Armour, and lululemon:

Throughout this semester I will be following Nike, Under Armour, and lululemon's marketing strategies and business models. As a marketing major, I hope to learn how these companies maximize their online and offline marketing efforts and also learn how they continue to keep customer satisfaction at such high levels. I also chose to pick these companies because I am a student-athlete and spend a lot of my own time in athletic apparel! These are three brand names that I love to wear and think are very comfortable. It will be interesting to see what all goes into these companies' methods and how they continue to keep customers happy while growing their profit. 

Reasons Why Nike Marketing Has Been Killing the Game

Phil Knight, a University of Oregon track athlete, founded Blue Ribbon Sports, in 1964. In 1971 Blue Ribbon Sports became the powerhouse name we now know as Nike. According to Forbes, Nike is ranked #1 in the World's Most Valuable Sports Brand valued at $19 billion! Obviously since 1971 Nike's marketing branch has been working hard to promote the brand, value, and customer satisfaction. This blog will look at examples of how Nike has implemented a marketing paradigm that other companies are striving to copy, and how we, as customers, continue purchasing from them.  

What does the Marketing Paradigm consist of?

The Marketing Paradigm consists of 4 goals: customer acquisition, customer conversion, customer retention, and growth in customer value. Nike has worked to achieve these goals with various product lines, online shopping, high quality products, and great customer service. The four goals of the Marketing Paradigm are explained more with examples of Nike's efforts. 

• Customer acquisition - Businesses have to attract a stream of customers.  An area Nike excels in is sports teams and their fans. Nike has partnered and launched with several athletic teams, nationally and internationally, as their main sponsors. This move helps to attract a vast network of fans that will, season after season, be buyers of Nike products. Nike also makes great offline marketing efforts by gaining sponsorships from top name athletes including Lebron James, Kevin Durant, Sydney Leroux, Kobe, and Cristiano Ronaldo  and Michael Jordan. Big names like this help create interest in Nike products.  
• Customer conversion - This is the process of converting shoppers and visitors to actual customers. Nike's online store plays a large role in accomplishing this goal. For example, if you're shopping on Nike.com, a live chat option pops up to help you get a more personalized shopping experience without having to go to the store. This also increases the probability of actually buying a product. 
• Customer retention - Acquiring new customers is always a plus, but keeping us as returning customers is always better! Research shows that it is easier and cheaper for companies to retain customers than to market to new ones. When Nike offers sales, of course new customers may be tempted. But returning customers know the value we are getting since we have already purchased something from Nike. These sale prices entice us to buy more products because we realize the value of the products, but get to buy them at a cheaper price! 
• Customer Value - Finally, customer value is one of the most important aspects of the marketing paradigm. If a customer is continually satisfied with products, they will continue to buy from them. Nike has established another branch of online shopping called NikeID. This allows you to customize a variety of products to ensure you get exactly what you want. Along with customization, once a you order a product, you receive updates throughout the production process of your item. This ensures that you know exactly where your product is, and a more accurate estimate of when your product will arrive! 

How Successful is Nike? 

Nike reaches a pretty broad demographic group ranging from young to old across the world. Many of their customers are middle-upper class, which is reflected in Nike's pricing. Nike has various apps that help grow their brand name including: Nike Run - an app that tracks users' runs, miles, trail, calories etc., Nike SNKRS - an app that allows shoppers to view thousands of shoes, Nike+ - an app made to easily access the Nike FuelBand information for users. 

By having such a variety of apps and sites, Nike allows customers several options. Nike has taken advantage of new technologies available to reach and target certain markets. Younger people now have access to Nike products on their phones, tablets, and computers - making shopping easier than ever before. 

As the #1 athletic apparel brand name in the world, Nike has succeeded in utilizing new marketing technologies. Their focus on customer value and customer satisfaction is seen with their ever changing product lines. I don't foresee Nike slowing down anytime soon as they continue to acquire sponsorships from nationally ranked sports teams, while also improving their products day in and day out.