assign 2
Individual Assignment #2
Lululemon to Buy Mirror, a Fitness Start- Up, for $500 Million
The athleisure company’s first acquisition is a bet on the future of fitness and a way to further tie into the lives of its customers. By Sapna Maheshwari June 29, 2020
Lululemon, the purveyor of expensive athleisure and activewear, is betting on the future of personalized remote exercise as a way to reach customers by acquiring Mirror, a home fitness start-up that sells a $1,495 wall-mounted machine for streaming workout classes.
The $500 million purchase, which Lululemon announced on Monday, is the company’s first acquisition and follows its $1 million investment in Mirror last year. It’s a coup for Mirror and its chief executive, Brynn Putnam, a former New York City Ballet dancer who introduced the product in 2018 and has raised $72 million from investors. Mirror charges customers $39 a month to stream its live or on-demand classes.
The purchase fits with Lululemon’s ambitions to become an experiential brand that helps customers live a “healthy and mindful lifestyle across multiple experiences,” as it said last year.
“This isn’t just about getting guests to buy apparel,” Calvin McDonald, chief executive of Lululemon, said in an interview. “This is about strengthening our community and our loyalty and our relationship with our guests and memberships, and it’s going to be its own revenue stream model, which we’re excited about.”
************************************************************************* Maheshwari, S. (2020, June 29). Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million. The
New York Times. https://www.nytimes.com/2020/06/29/business/lululemon-buys-mirror.html.
Assignment
1. Lululemon has asked you to write a print ad promoting Mirror nationwide in the USA to
appear in magazines this fall. Write this ad so that it clearly directs readers to utilize at
least three senses in describing why the Mirror might be an attractive purchase. (Chapter
3).
a. This print ad should be between 50 and 100 words due to ad space restrictions.
2. Lululemon doesn’t want consumers to confuse the Mirror with the Peloton or NordicTrack
products, so after the print ad you create, explain how Lululemon should use positioning
strategy to ensure this does not happen and how the print ad you created helps with this.
(Chapter 3).
3. Motivation (Chapter 5).
a. Will consumers be motivated to buy the Mirror more because of drive theory or
expectancy theory? Why?
b. Identify at least two goals a consumer may have to purchase the Mirror. Then,
explain how these goals may be in conflict (motivational conflict) and identify
which type of motivational conflict this is. Be sure to explain why this type of
conflict best fits these goals.
c. Identify which level of Maslow’s Hierarchy of Needs the Mirror most likely fits
within for consumers. Why?
d. Which type of affective response do you recommend Lululemon should try to
evoke from consumers when marketing the Mirror (evaluations, moods, or
emotions)? Why?
i. Identify the affect (positive or negative) that you recommend Lululemon
should try to appeal to in doing this.
4. Briefly identify and apply three distinct concepts from Chapter 6 (The Self) to the Mirror
that you believe will most apply to consumers’ behavior when exposed to Lululemon’s
marketing messages about this product.