Tag Archives: Marketing strategy

Wear Lululemon Gear While Working Out on Mirror

Acquisitions can be tricky. Companies need to assess what markets to enter, and which products and services are needed for those markets. While it is common for food and beverage companies to use acquisitions to gain market share (consider Pepsi’s recent purchase of Rock Star beverages), it can be a tad trickier when combining other companies. A key consideration is that companies find synergies that can be capitalized on when combining organizations. Recently, Lululemon may have found a good acquisition as it expands beyond athletic apparel to acquire fitness equipment manufacturer Mirror.

Mirror is a high-tech, interactive mirror that streams workout classes, offers live classes and on-demand classes, plus more intensive one-on-one personal training session. Mirror launched in 2018 (and received an investment from Lululemon in 2019). The Mirror equipment is a low-profile mirror – yes, a mirror – priced at $1,495 purchase plus a $42 monthly membership fee. Personalized training is $40 per session. Lululemon has a strong brand and loyal customer following. In addition to its trendy athletic gear, it offers fitness classes in stores and online.

The acquisition is happening at a time when Americans have been impacted by Covid-19 and are working out at home instead of going to the gym. Even with new safety measures, many people are opting out of gym memberships in favor of home workouts.

Shall we work out inside today?

Group Activities and Discussion Questions:

  1. Discuss the four key marketing strategies: product development, market development, market penetration, and diversification.
  2. Discuss acquisitions as a marketing strategy. When is this effective? When is it not effective?
  3. Show Lulemon’s web site: https://shop.lululemon.com/
  4. Show Mirror’s web site: https://www.mirror.co/
  5. How do these two companies complement each other?
  6. Divide students into teams. Have each team develop a promotional plan that the companies can use to promote their union.

Source: Associated Press; CNN News; New York Times; other sources

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Using Social Media in Job Search

Here’s the truth – absolutely no one likes looking for a new job. Nope. Not one single person on earth gets up and says “gee, can’t wait to look for a new job today!” So, you are in good company if you are (reluctantly) facing a job search. But, on the plus side, there are now more tools than ever to help you search out and find a great position and company. And, you can even do this using social media tools with which you are already familiar. Today, social media is part of how people get in touch not only with each other, but also with companies

Estimates are that more than 80% of Americans have social media accounts. Social media is a great way to connect with others, bring attention to your work, and develop new ideas. The top social media platforms to explore in a job search:

  1. LinkedIn – A professional social network with 500 million members. Focus on people you already know, and people you would like to know. LinkedIn has search features that let members know about job postings and companies.
  2. Twitter – Provides instant connections for sharing ideas with 328 million users. It is conversational, giving real-time information about areas of interest and connects users beyond people they already know. For job hunting, build lists of influencers to follow.
  3. Facebook – A powerful social network with more than two billion users worldwide. Facebook can help you connect with influencers, shape what others think of you, and share things that help show your interests and breadth. Use Facebook to follow companies and get ideas about job opportunities.
  4. Instagram – This platform revolves around illustrations and has grown to roughly 800 million users. These users love great photos and videos. Use this platform to interact graphically with companies and people who interest you.
  5. Snapchat – While this platform is changing, it has 250 million users and can provide insights into trends, people, and companies.

Group Activities and Discussion Questions:

  1. Ask students to define how they currently use social media platforms.
  2. What limits their use of the platforms? Do they use these for job search?
  3. Review the New York Times ariicle: https://www.nytimes.com/guides/business/social-media-for-career-and-business?em_pos=small&emc=edit_ct_20171116&nl=technology&nl_art=0&nlid=65703977&ref=headline&te=1&redirect=true
  4. Students can explore various links within this article to learn more about the different platforms.
  5. Divide students into five teams. Have each team explore a different social media platform and provide guidelines about the platform for job search.
  6. Build a shared document with the information.

Source: Sreenivasan, S. (2017, November). How to use social media in your career. New York Times.

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SiriusXM Buys Pandora

SiriusXM satellite radio provider is buying music streaming service Pandora for a $3.5 billion stock deal. The deal will create the world’s largest audio entertainment company. Why should SiriusXM buy Pandora? Because SiriusXM wants to gain people who listen to music but don’t want to pay for the premium SiriusXM service.

SiriusXM offers streaming without advertisements for $10.99 to $20.99 per month per car with up to 140+ channels, or streaming on any device for the same amount of $10.99 to $20.99 per month, or combine both options for all-access streaming. SiriusXM has 36 million subscribers in North America.

On the other hand, Pandora, which has 70 million active listeners (5.6 million who are paying members) can be used at no-cost as long as listeners don’t mind listening to advertisements. Or, listeners can buy monthly subscriptions at $4.99 or $9.99 per month for services that eliminate advertisements and offer personalized stations and create playlists, plus other options.

SiriusXM isn’t new to Pandora; it provided $480 million of funding to Pandora last year. Pandora faces stiff competition from other music services such as Apple Music, Amazon, Tidal, and Spotify.

The war to gain new listeners is heating up!

Group Activities and Discussion Questions:

  1. Poll students:How much music do they listen to each day? Where is their music coming from? How much do they pay each month?
  2. View SiriusXM: https://www.siriusxm.com/
  3. View Pandora: https://www.pandora.com/
  4. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  5. Which strategy is SiriusXM using? Why?
  6. Divide students into teams. Have each team research the different prices and packages offered by each music streaming company.
  7. Compare price structures. Which offers listeners the better deal?

Source:  Wall Street Journal, New York Times, other sources

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