Question
If you thought athleisure was just another fad, you were wrong. Consumers can't get enough of the apparel that let you go from brunch, to
If you thought athleisure was just another fad, you were wrong. Consumers can't get enough of the apparel that let you go from brunch, to the gym, to an afternoon Zoom call with ease. Athleta, owned by Gap Inc. is one of many retailers from Nike to Lululemon trying to attain more market share in this growing category. Despite the competition, Athleta has been able to carve out its own place in this sector, growing from a brand generating $37 million in sales in 2008 to a billion dollar brand today.
Athleta isn't trying to be all things to all people. Instend Athleta is squarely focused on women. "It's the only women-supporting-other-women active lifestyle brand," Sonya Syngal, CEO of Cap Inc. said of Athleta. 97% of Athleta's employees are women and the company is also run by a woman, Mary Beth Laugton. Athleta's focus on women also extends to several key sponsorships. The brand sponsors gymnast Simon Biles and Olympic gold medalist sprinter Allyson Felix. To attract athletes of this caliber who were both previously sponsored by Nike, Athleta focuses on athletes as whole individuals instead of focusing only on their professional accolades. The company also has an upcoming holiday collection in partnership with 15-time Grammy-award winning musical artist, Alicia Keys.
Furthermore Athleta is trying to differentiate by positioning itself as more than an apparel maker but as a wellness brand. Earlier this year Athleta launched Ahtleta Well, an online platform that provides members of Athleta's loyalty program access to wellness cxperts, free workouts, workshops and classes. Athleta Well also sends personalized push notifications to customers. Through this app, the brand hopes to leverage advances in innovation and build direct relationships with shoppers, creating a two-way dialogue which invites customers to actually give input and be participants in creating the brand itself.
And Athleta has ambitious plans for future growth. Athleta hopes to grow into a $2 billion brand by 2023, after Athleta's sales passed SI billion for the first time last year. One of the ways Athleta is trying to grow its customer base is by pricing its merchandise approximately 20% cheaper than the merchandise sold by athleisure stalwart Lululemon. This is an especially mindful strategy as inflation is hitting the pockets of consumers, and as a potential recession looms. Among its many planned growth initiatives, Athleta is leaning into store expansion as well as selling its products in partnership with other retailers. One of those retailers is REI Co-op which sells a curated selection of Athleta merchandise on RET's website and inside of its stores. International expansion is a key part of Athleta's growth strategy, particularly in Europe where Athletica sells its merchandise on Zalando, a leading online retailer.
Athleta is also truly dedicated to the growing success of its partnership with Allyson Felix. Their most recent collaboration, "The Cold Train" elebrates performance wear that is designed for movement despite cold weather. This line for the fitness lover features jackets, pants, socks and other gear made of sustainable fabrics, light fleece and sweat-wicking capabilities. "The goal was to create wearable, stylish pieces that enable women to stay active even when the temperatures drop. You don't have to sacrifice performance to stay active," Felix said.
QUESTIONS
Imagine that you are a consultant hired by Athleta to analyze and provide recommendations for their new strategies with "The Cold Train" shoe. a)Based on the information given, how would you describe Athleta's current target market for "The Cold Train" collection?
b)Based on the information given, what forces of the marketing environment are influencing Athleta's ability to succeed and overall strategy? Explain. Note: Mention at least three forces for full
credit.
c) As a part of your analysis, you have been tasked with proposing and executing a marketing research plan to understand consumer response/reaction to "The Cold Train" collection. Describe the research plan you would suggest: consider the types of data, type of research approach/methods, and potential research participants. Also include any sample questions you may ask or other details include as a part of a particular method.
d)Also as part of this analysis, you have been tasked with proposing and executing a promotional strategy to market "The Cold Train" collection. Using your knowledge of promotion, identify and
explain how Athleta could use at least three elements of the promotional mix, to help grow its customer base and encourage sales of this new shoe.
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