Lululemon is venturing into footwear, marking a new product category for the popular maker of yoga wear and deepening its rivalry with giants like Nike and Adidas. The company's first-ever running shoe for women, called Blissfeel, will be available to purchase starting May 22nd in select markets across North America, Mainland China and the United Kingdom. The running shoes will retail for $148.

The launch marks Lululemon's official foray into the sneaker category, having only previously sold a small collection of shoes from Athletic Propulsion Labs. The footwear business, for women and men, could prove to be another important lever of growth for the athletic clothing retailer as it seeks to catch its larger competitors.

Sneaker sales have boomed during the pandemic as more consumers pick up running or opt for more comfortable shoes while working from home. It's an incredibly heated category with competitors ranging from giants like Nike and On Running to more niche brands like Allbirds, which also makes a running shoe.

Lululemon said it will also debut two types of women's cross-training sneakers this summer, priced at $138 and $148, followed by a slide-on shoe meant for post-workout wear, at $58, and another training sneaker with a more supportive midsole, at $128. And the company said it's aiming to expand its selection for women with special-edition shoes and seasonal sneakers even more starting next year.

These price points are modest, as many footwear manufacturers are becoming very mindful of their pricing as inflation is hitting the pockets of consumers. Government stimulus has dried up as families are no longer getting monthly child tax credit checks. The result is many consumers are going to be shopping for shoes at even lower price points than they did last year, perhaps even purchasing less shoes, over the next few months.

But despite these economic concerns, there is still promise. Athletic footwear sales in the United States grew 17% for men and 24% for women in 2021 compared with 2020 levels, according to data from market research firm NPD Group. Early last year, another round of stimulus checks from the government propelled consumer spending. And many shoppers opted for a new pair of shoes. The top sneaker brands for women were notably Nike, Skechers, Adidas, Brooks and New Balance. And sales of women's and men's sports footwear will continue to grow this year, coming off of last year's gains, with the first half of 2022 facing bigger challenges for the industry than the latter half.

Lululemon CEO Calvin McDonald said in a statement Tuesday that branching into the footwear market was the next natural step for the company.

"It represents an exciting moment for our brand," he said. "We are entering the footwear category the same way we built our apparel business with products designed to solve unmet needs, made for women first."

Imagine that you are a consultant hired by Lululemon to analyze and provide recommendations for their new strategies with the Blissfeel shoe. To provide your analysis you are asked to address the following questions:

a)Based on the information given, how would you describe Lululemon's current target market for the Blisfeel shoe? (2 points)

b)Based on the information given, what forces of the marketing environment will affect Lululemon's ability to succeed with the Blissfeel shoe? Explain. Note: Mention at least three forces for full credit. (6 points)

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 Blissfeel shoe. 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 to include as a part of a particular method. (8 points)

d)Also as part of this analysis, you have been tasked with proposing and executing a promotional strategy to market the Blisfeel shoe. Using your knowledge of promotion, identify and explain how Lululemon could use at least three elements of the promotional mix, to help grow its customer base and encourage sales of this new shoe. (9 points)