Ivivva Athletica

Fall Quarter 2014

Professor Hartley
Section 1

Danielle Guyette

Amy Haberman

Mackenzie Sedlak

I. Introduction
Ivivva is an athletic wear company that caters to young girls between the ages of 6-12.
They carry a broad range of products, including pants, tops, jackets, leotards, skirts, and
accessories. They offer products at a higher price point than competitors, but they emphasize
quality above all. Their clear quality standard displays their commitment to putting quality at the
heart of everything they do, down to the final details. Their mission statement is as follows:
Creating components for people to live longer, healthier, fun lives.
Ivivva places a large emphasis on community engagement. They offer complimentary
yoga, fitness, and dance classes in-store for customers. They have clubs, such as the Ivivva
Running Club, that encourage young girls to get outside and stay active. Ivivva highly values a
healthy lifestyle, and they create clothing that motivates young girls to participate in sports and
activities. They also emphasize feedback from consumers when they manufacture new items.
They welcome ideas and suggestions for what their shoppers want to see next, and take these
into consideration when designing their clothes.
They create products for a variety of activities, although they are primarily focused on
yoga wear. Ivivva manufactures clothing for running, dancing, skating, gymnastics, and tennis,
as well. Ivivva owns an assortment of trademarks and patents on fabrics that they use to produce
their garments. They make their items out of high-tech fabrics that make the consumers
experience comfortable and functional, but fashionable at the same time.
Ivivva currently operates and has full control of all their stores. Customers who are
looking to purchase Ivivva must either buy directly from the stores or can choose to buy the
products online. The products offered, as mentioned, cater to young girls who are involved in a
variety of athletics, but also have options for every day athleisure wear. Overall, Ivivva focuses
too narrowly on its existing products and markets, limiting its potential for revenue growth. We
have developed two marketing plans to tackle this issue and ultimately help Ivivva expand and
maximize revenue potential. In order for this to happen we believe that Ivivva can expand their
audience to young boys, as well as sell their products in fitness facilities. We have come up with
two marketing strategies; the first is a market penetration strategy to capture young boys to
expand our customer base and the second strategy is to further develop our product line by
selling bathing suits to fitness centers to then be sold to the end consumer.

The re-design of Ivivvas current Perfect Your Practice jacket to be sold to young boys
will hopefully allow Ivivva to capture a whole new segment. With a sales price of $78, the goals
of our marketing plan are to increase sales by 30% and a ROI of 75% after a six-month period as

well as expanding distribution of these boys jackets to 15 different stores by December 2015 and
by December 2016 the jackets will be sold at every Ivivva location.
The development of a new swimsuit product line will increase the diversity of Ivivvas
product line. Ivivva is going to use a product development strategy that will bring the new items
into an existing market. We plan to have this line carried in 30 locations with at least 5 in each
region of the United States, by January of 2016. By the end of 2017, we plan to take this line
international and enter about 30 Canadian locations.
With Ivivvas unique styles, functional pieces, and strong support from their parent
company Lululemon, they have proven that they have what it takes to dominate the girls athletic
wear market. We are confident that Ivivva has the ability to move into a new market, focusing on
young boys, and to create a new swimwear line, that will see just as much success as their
current products.
II. Situational Analysis
Sandals to sneakers, headbands to hair ties and jeans to yoga pants - the world of
womens fashion has swiftly transformed into an athleisure-focused market. The term
athleisure was non-existent just two years ago. Now, women are choosing their elastic-waist
yoga pants over their button-up jeans for everyday activities. From going to the mall to meeting
up with friends for lunch, comfort is the new style.
Clothing companies such as Lululemon, Athleta and Under Armour are becoming the
face of womens fashion. Lululemon was the original pioneer of the yoga pants fad that has
consumed women and teens. With such tremendous success in their womens clothing line,
Lululemon has expanded their target market to men and children, specifically young girls. In
2009, Lululemon launched Ivivva, a subsidiary company focused on dance-inspired athletic wear
for girls ages 6-12. Since its founding, Ivivva has opened 57 stores and showrooms between
Canada and the US. Ivivva has been a direct response to the growing demand for womens
athletic clothing, which has trickled down to their young daughters as well.
A. Demand Analysis
The US womens athletic apparel market has taken the clothing industry by storm. In
2014, reported sales for this market grew to over $12.5 billion, up 9% from sales in 2013
(Business Of Fashion). From the expansion of apparel companies to the growth in variety of
fitness classes, this trend shows no signs of stopping. Recognizing this trend, athletic apparel and
traditional apparel companies alike are expanding their business and market reach to include as
many consumers as possible. For example, companies such as Under Armour and Nike continue
to develop their womens and childrens active wear lines (NY Times). Even companies who
operate in niche athletic wear markets are expanding their target markets. Lululemon, the pioneer
of the yoga pants trend, is broadening its focus to include men and childrens clothing (Reuters).
Its subsidiary, Ivivva, specifically targets young girls.

However, these expansion projects go far beyond just athletic apparel companies.
According to an article written in Bloomberg Magazine, athletic apparel is growing twice as fast
compared to traditional womens apparel (Bloomberg). Long-standing traditional apparel
companies, such as Gap, are diving into the athletic apparel market to keep up with these trends.
For instance, in 2008 Gap acquired active wear company Athleta, which offers workout, surfing
and snowboarding clothes for women (Business Insider). From an entirely different side of the
market, Victorias Secret, which primarily sells hosiery for women, has added athletic apparel to
its repertoire as well.
Clothing stores are not the only factors influencing the growth of the athleisure market.
The increased popularity of a variety of fitness classes is also fueling the growth of this market.
CrossFit, Soul Cycle and Pure Barre are just three of the many different types of fitness options
that women now have access to. Women are no longer confined to a single type of exercise and
more women are finding their niche in fitness. Not only are these active women wearing athletic
clothing while they workout, but they are choosing athletic apparel over traditional apparel. As
previously mentioned, active wear is worn for a variety of activities far beyond the gym.
Athletic apparel is not just a reflection of consumers fitness activities. More than 93% of
consumers also wear their athletic apparel for activities other than exercising (Cotton Inc).
Roughly 64% of women reported wearing athletic clothing while running errands and upwards
of 85% of women reported wearing athletic clothing around the house (Cotton Inc). This greatly
expands the demand and markets for Ivivvas offerings.
There are several factors that influence the demand for childrens athletic wear. One of
the largest factors is the disposable income of Ivivvas customers, more specifically the
disposable income of families since it is the parents paying for their clothing. The price point for
their products appeals to spenders in the upper-income bracket whose spending power is virtually
unaffected by economic downturns (Wikinvest). The amount of money that parents are willing to
spend on their children goes hand in hand with this, as it is not the direct customers (kids) who
have the buying power, but it is their parents. Studies show that 90% of women are spending
more on outfits for their children than clothes for themselves (Huffington Post). As with any
consumer good, price is another factor that influence the demand for Ivvivas products. While
their price point is higher than other childrens athletic wear companies, it is still lower than the
price point of jeans. Active wear spending has more than doubled the $16 billion that people
spent on jeans in 2013 (Koin), proving that the demand for yoga clothing is there. This
willingness to choose athletic wear over jeans proves the growing trend of the athleisure
apparel industry, which is another influencing factor of the success of Ivivva. The growth of the
athleisure apparel industry has resulted from the increasing number of women who are
pursuing athletic lifestyles. They are willing to upgrade to better quality athletic material to wear
daily for a variety of uses, not just when working out. Women are willing to dress their children
in the same style, influencing the success of the childrens active wear industry.

We ran a regression investigating the relationship between the disposable income of

families and Lululemon sales. We used Lululemon sales because Ivivvas financial information is
not reported as a separate entity. The r-squared value that resulted was .97, indicating a strong

correlation between the disposable income and sales. Therefore, we were able to conclude that
disposable income is a valid predictor of Ivivvas sales. By running the regression we were able
to come up with a linear equation, which we used to forecast the sales of Lululemon for the next
five years (See graph below). While these numbers may not be completely accurate, and do not
account for unexpected occurrences that could cause sales to decrease, they are a good
representation of what sales would be if the company continued to grow at a steady rate.

Demand for Ivivvas offerings is generally consistent throughout the year, apart from the
boost in sales that exists during the fourth quarter of each year. As mentioned above, Ivivvas
customers are largely unaffected by economic ups and downs, as their disposable income is high
enough to continue consistent spending habits regardless of economic downturns. However, like
any other retail clothing business, holiday shopping leads to a great surge in sales. As one of the
company executives stated in the Lululemon 10-Q document, Our business is affected by the
general seasonal trends common to the retail apparel industry. Our annual net sales are weighted
more heavily toward our fourth fiscal quarter, reflecting our historical strength in sales during the
holiday season, while our operating expenses are more equally distributed throughout the year.
As a result, a substantial portion of our operating profit is generated in the fourth quarter of our

fiscal year. Demand is higher during holiday time, as a large portion of consumers are shopping
during this time, but throughout the year consistency is exhibited.
Gone are the days of jeans for day-to-day activities, as it is apparent that yoga pants and
athleisure trends are here to stay. They are consistently gaining popularity, moving into
markets that continue to propel its success. As disposable income continually increases, so will
Ivivvas sales, proving it to be a viable, high-demand business.
B. Buyer Behavior
The line between stylish clothing and active wear is continuing to blur. No longer are
athletic clothes, particularly yoga clothing, just worn for physical activity. From the house to the
store, yoga clothing has become a staple of womens fashion. Like any trend, the yoga-fad has
made its way down to young girls. The study of consumer behavior allows us to pinpoint
precisely the choices that individual, household and organizational buyers make. The buying
process is consistent of problem recognition, information search, alternative evaluation, purchase
decision and post-purchase behavior, all of which we will discuss in the following memo. To
further explain the behavior behind yoga clothing consumers, we will also discuss the various
factors that influence buyers into making a decision.
The Buying Process
Understanding consumer behavior makes it easier to understand what decisions the
individual, household and organizational consumers make during the buying process. As earlier
mentioned, there are 5 phases that a consumer will go through when making the decision of
which athletic apparel to buy: problem recognition, information search, alternative evaluation,
purchase decision and post-purchase behavior. (For greater detail and specifics on phases, see
charts below)
When evaluating the problem recognition at the individual, household and organizational
levels, many similarities between these different buyers were found. There are endless
possibilities of problems that may cause someone to buy athletic apparel. However, brand
loyalty/recognition, social/status needs, changing trends towards athletic clothes, style, and
comfort are all key reasons why people feel the need to start the buying process.
The next step in the buying process, information search, is almost identical for both the
individual and the household buyers. Both look for information in magazines, advertisements,
social media, at the store, online (various websites), reviews and opinion leaders. The main
difference being that the opinion leaders for the individuals (kids) and the household buyers will
be respective to their age group and peers. Information search for the organizations will mostly
take place at trade shows, in catalogues, and online websites. Depending on what the problem
was that started the buying process, the amount of search will vary.
After information is gathered on Ivivvas products and potential alternatives, the buyer
will compare and evaluate many attributes of the alternatives before making a final decision. The
main criteria for evaluation of athletic apparel are: price, color, function, size/fit, quality, brand

reputation, design, and status associated with product. Evaluation of alternative will be discussed
in greater detail later on in this memo.
Once the individual and household buyers have made a decision they have the option to
purchase in the Ivivva stores, on their online store, or to borrow the product from someone. The
organizational buyers have the added options of being sponsored by the product or distributing
the product to their stores and customers.
The last and final step to the buying process is where Ivivva consumers determine if they
were satisfied or dissatisfied. Most buyers who are satisfied find that they received positive
feedback from others, found the product to be long lasting and durable, experienced an increase
in their self-esteem, and felt that their money was well spent. From an organizational
standpoint, their expectations of the product were met, customers were happy with the product
and high sales all leave the buyers feeling confident in their purchases. Dissatisfaction often will
occur if buyers find the product does not fit right, buyers realized there were better alternatives,
the product price does not match the product quality, and if peers end up buying a different
brand.
Information Search & Processing
Ivivvas target market is girls from ages 6 to 12 years old; an age range where brands,
trends, opinion leaders and other social factors are very influential to ones self-esteem and social
status. The purchase decisions made by Ivivvas customers are based on the individuals socialpsychological needs. Girls at ages 6-12 are desperately trying to find their identities yet often
rely on their social environments to help them form these identities. Teens are (whether they
know it or not) focused on achieving four emotional goals acceptance, belonging, confidence
and individuality and many feel like they accomplish these goals by buying certain brands and
styles of clothing (Bridge Strategy Group). Ivivvas target market will most likely turn to
reference groups and influencers in their social environments when making purchasing decisions.
Whether it is the girls parents, popular peer groups, or people in the media, many girls are
looking to these reference groups as a way to compare and evaluate their behaviors and
purchasing decisions. The social-psychological factors that are influencing these girls
purchasing decisions are extremely present when buying a product like yoga pants. Yoga pants
are a huge style trend right now and have even led to the creation of the term athleisure, they
reflect fitness, good body images, and healthy lifestyles, and the power of the brand is very
strong in the athletic apparel industry. From a marketing standpoint, Ivivva needs to understand
the attitudes of their consumers, and to take into account the main emotional goals of teenagers
and their buying motives in order to enhance their brand positioning (Bridge Strategy Group).
With the sales of jeans decreasing by 6% in the last year, and the sales of active wear
increasing by 7%, there is now an abundance of product options in the athleisure industry
(CBS News). Now, more than ever, the importance that the consumer places on the information
search step in the buying process is higher than ever. Ivivvas individual and household buyers
are most likely to gather information online and in the stores in addition to print advertisements,
and opinion leaders/word of mouth. With the depth of information now available at the tips of
your fingers thanks to the internet, consumers are spending more time online doing research

prior to making a decision. Many buyers are turning to the internet for the following reasons to
help them with their purchasing decisions: price transparency, saving time, better matching of
needs, people matching and long-tail offerings (Mckinsey & Company). As of right now, Ivivva
has a very few stores open for people to shop at, so having their potential buyers mainly using
the internet to search for information will hopefully mean that their purchase choice will also be
online and with Ivivva.
Attribute Selection
In a world of abundance, consumers are given more power over retailers to select a
product of their choice. With multiple brands, colors, styles and price points for each product on
the market, consumers must identify particular attributes that will help distinguish between
products. In the womens active wear market, there are four attributes that are most commonly
used to evaluate different brands - style/design, size/fit, brand reputation and quality. These four
characteristics are commonly used by the individual buyer (young child), the household buyer
(parent and child) and the organization buyer. For each attribute discussed, the brands and
product examples will focus primarily on yoga-themed clothing, as it relates to the project
research at hand.
The first, style/design, is one of the most important. From length to shape to fabric, each
and every brand has designed their active wear in a unique way. Yoga pants are the perfect
example. Brands like Nike and Under Armour use an entirely different fabric than companies
like Lululemon and Soybu (Business Insider). Under Armour is primarily known for its
moisture-wicking fabric, while Lululemon take a comfort and stretch approach. Additionally,
each pair of yoga pants looks different. When talking about the style and design of the product,
we are going beyond just the colors and patterns and actually examining the way the pants look.
Each brand designs their yoga gear in a different way and some even have multiple styles within
the brand. Straight-fit, flare-bottoms, tie-ups - the list of styles goes on and on. Depending on the
consumer, a particular style will be more appealing than others. A second factor is the size and fit
of the pants. Before buying a tank top or a pair of yoga pants, most consumers will try the
product on. Why? A size 6 in one brand/style might fit like the size 4 of another brand/style. For
example, Nike is known for having a looser-fit to their clothes, including their yoga and running
pants. Other brands, like Lululemon, typically have form-to-body fits for their clothing
(Business Insider). Certain consumers prefer one fit over another and can find a brand or style
that fits their body best. Based on that attribute, certain choices may be eliminated if the clothing
does not fit properly. The third characteristic used to distinguish active wear is the brand
reputation. Like people, brands have both positive and negative reputations within their
industries. Take Nike for example. Several years ago, Nike was fighting a very difficult brand
reputation battle. After being singled-out in the industry for mal-production practices, Nike had
to do damage control (Returnonreputation). Other brands are known for using sustainable
materials or being involved in the community. Soybu is one of those brands. Its clothes are
made from soy, organic cotton, bamboo and other recycled materials (Business Insider). Brand
reputation goes beyond how the market perceives an individual brand. Consumers also consider
how other individuals evaluate their clothing selection, as a reflection of the brands reputation.
Much like owning Porsche is perceived differently than owning a Toyota; consumers develop
impressions of fellow consumers based on the brands they are wearing. If a brands reputation is

associated with social status, certain consumers will use that as a driving factor in their purchase
decision. The final attribute that many active wear consumers consider is quality. Because active
wear and yoga clothing are becoming multi-functional, the clothing is also judged based on its
quality and longevity. When quality is perceived as poor, there are negative implications for the
company. Lululemon experienced an incident like this in 2013. The Canadian athletic apparel
company was compelled to recall almost 17% of its signature black yoga pants due to complaints
that the material was too thin (Business Week). Until the company was able to fix the production
problem, consumers were hesitant to buy the product.
The naive consumer would claim that all yoga pants are the same, but the informed
consumer knows better. With enough research and consideration, a consumer can differentiate
between competing products on a variety of different attributes and ultimately make the purchase
decision that fits best.
A great deal of information is collected and processed during the purchase of active wear.
Because athletic clothing is perceived as a desire more than a necessity, consumers typically have
a positive attitude during the buying process. The attitude that accompanies the purchase of
active wear will remain during the post-purchase behavior. For example, if a consumer enters the
buying process with an attitude of confidence and optimism that they will find a product to meet
their needs, ultimately the product they choose should fulfill the confidence and optimism even
after the purchase is made. In regards to the intention behind purchasing active wear; women
most often are motivated by status, body image and style. They want a product that will flatter
their body, impress their peers and fit their personal styles.
INDIVIDUAL: Child (Female age 6-12)
Stage of Buying Decision:
Problem Recognition

Information Search

Description for:
All other kids are wearing it
Jeans are uncomfortable
Want pants with different colors
Want yoga clothing
Need to replace old/worn clothing
Needs new sizes
Want to be stylish
Part of an athletic activity
Friend just bought some
See mom wearing yoga clothing
Just got allowance money and can buy
something
Peer pressure from peers
Need gift for a friend
Online (various websites)
Social media
Teen magazines

Alternative Evaluation

Purchase Decision

Post-purchase Behavior

Ask other kids

Talk to parents
Advertisements
Go to store to browse
Style/design
Color
Function
Size/fit
Brand reputation
Status associated w/ product
Online
In-store
Borrow
Satisfaction:
Dissonance:
Fits well
Spent too
much money
Lasts long
Stretched out
Positive
quickly
feedback from
Different color
peers
than expected
Social status

Friend bought
gained
different brand

HOUSEHOLDS: (Parent + Child)

Stage of Buying Decision:
Problem Recognition

Information Search

Description for:
Gift for child
Child asks for it
Child signs up for an athletic/club event
Child is growing fast
Other parents are buying it
Child needs new clothes
Child is active
Other clothing is uncomfortable
Want child to look good
Brand loyalty to Lululemon
Online (various websites)
Catalogues
Talk to other parents
Opinion leaders
Go to store to browse
Talk to employees

Alternative Evaluation

Purchase Decision

Post-purchase Behavior

Reviews
Advertisements
Social media
Price
Style/design
Color
Function
Size/fit
Quality
Brand reputation
Status associated w/ product
Childs opinion
Online
In-store
Borrow
Satisfaction:
Dissonance:
Fits child well
Product
overpriced
Good quality
Stretched out
child proof
quickly
Positive
Different color
feedback from
other parents
than expected
Overall family
Different
social status
brand has
gained
better reviews
Child is
Quality is poor
pleased w/
ruined
product
quickly
Money well
spent

ORGANIZATIONS: CorePower Yoga, Pure Barre, Soul Cycle

Stage of Buying Decision:
Problem Recognition

Information Search

Description for:
Need additional forms of revenue
Customers are asking for it
Want to bring more customers into
store
Trying to build studio store
Connection to brand with good
reputation
Similar organizations

Alternative Evaluation

Purchase Decision

Post-purchase Behavior

Catalogues
Online (various websites)
Customer feedback
Price/package deals
Style/design
Color
Function
Size/fit
Quality/longevity of product
Brand reputation
Status associated w/ product
Online
In-store
Borrow
Sponsor
Distributors
Satisfaction:
Dissonance:
Fit a variety of
Out of
customers
company
budget
Good quality
Displeased
longevity
with product
Positive
order
feedback from
Different
customers
colors than
Help to
expected
achieve initial
Poor customer
goal
feedback

Influences on Consumer Choice:

Several factors influence the way consumers move toward a choice when purchasing
yoga clothing. Income plays a large role in the purchase decision process because yoga pants can
be found at nearly any price point. As mentioned previously, Lululemon customers have high
disposable incomes allowing them to afford the high price point offered at Ivivva. However, each
brand has its own price point that appeals to nearly any familys income. These range from as
low as $15.00 for a pair of Champion brand yoga pants at Target to $92.00 for a pair of
Lululemons styles. The yoga clothing trend is skyrocketing, so nearly all athletic brands and
stores have a line of active wear clothing, allowing consumers large purchasing power in this
market. There are offerings and nearly every price point, and Ivivva caters to those who are
unaffected by economic ups and downs.
As with most clothing, social influences play a large role in the purchase decision. Yoga
culture promotes a healthy lifestyle made up by exercising often and eating healthy. This type of

lifestyle goes hand in hand with a large disposable income, as yoga classes average about $150
for a series. Lululemons clothing reflects this with their small sizes and body hugging styles.
The brand recognition that Lululemon has built and their eye-catching logo on their clothing
screams I have enough money to spend on a $100 pair of yoga pants. The status associated
with Ivivvas clothing allow parents to outfit their kids in high-end clothing and show others that
it is something that they can afford, rather than turning to Old Navy or Target for similar styles.
With a high price comes high quality, and Lululemon has been praised for its high quality
materials and the durability of their clothing. Parents will be more willing to pay a high price
knowing that they are not purchasing clothing for their children that will be ripped or lose their
fit after a few wears. Parents do want to keep their kids looking well dressed, and Ivivvas status
symbol and quality materials cater to this.
Although it is a touchy subject for most, weight and body type play a large role in the
yoga clothing purchase decision. Lululemon has been highly criticized for their lack of
accommodation for plus-size women. Their sizes stop at a size 12, but when the average clothing
size for women in America is a size 14, the majority of consumers cannot choose Lululemon and
Ivivva for their yoga needs (USA Tourist). Even when browsing around on Lululemons website,
when filtering by size and choosing a size 12, the styles that came up were extremely limited.
Very few of their styles even go up to their maximum size, and most stop at around a size 8
(Lululemon). For women and children who have a plus-size body shape, Lululemon and Ivivva
cannot accommodate them. Some of Ivivvas styles stop at size 12, despite the fact that the sizes
of girls ages 6-12 (Ivivva's target market) typically go up to a size 18. However, two of Gaps
brands, Athleta and Old Navy, do cater to this market, offering extended sizes for all body types.
Nordstroms brand Zella makes yoga pants for women up to a size 24 and children up to size 16,
steering women and children in need of a size larger than 12 to choose other yoga brands than
Lululemon and its subsidiaries (Huffington Post).
Media has had a negative effect on Lululemons brand reputation, as their co-founder
Chip Wilson has released hurtful statements regarding the reasoning behind Lululemons lack of
clothing for plus size women. He stated, Quite frankly, some womens bodies just dont work
for the pants. Its really about the rubbing through the thighs, how much pressure is there over a
period of time. Lululemon got a lot of heat from consumers nationwide regarding Wilsons fat
shaming words. This has resulted in consumers choosing alternative companies, specifically
Athleta and Zella for their yoga clothing needs (Time). Many women have chosen not to support
Lululemon as a result, which has greatly affected the purchase decisions of consumers when it
comes to yoga clothing.
No matter what the product, consumers will go through a similar buying process before
ultimately making their purchase decision. Taking the time to identify the steps consumers take
and the factors that influence choices will give a business the key to understanding the behavior
of their specific consumers. This understanding will improve sales, marketing outreach and
ultimately brand reputation.
C. Segmentation

When developing a marketing plan, the first two pieces that must be examined are
demand for the product and consumer behavior of the buyers of that product. The third piece is
segmentation. Segmentation is used as a way to differentiate between potential consumers in
terms of their buying behaviors. Often, marketers make the mistake of treating all consumers
equally, when in reality, each segment has a different marketing need. By engaging in
segmentation, consumers are aggregated into segments with buyers who have similar
characteristics and each segment is treated differently. If enough time and consideration are
given to the segmentation process, companies can achieve improved allocation of marketing
resources, better identification of marketing opportunities, proper positioning of products relative
to competition, and even new product development.
Ivivva has been examined on the first two preliminary levels demand and consumer
behavior. In order to continue the process and develop a complete marketing plan, the market
must be segmented. Various segments will be determined on the individual, household and
organization level. Due to the complexity of some of the segments, the Ivivva group has decided
to identify multiply basis variables by breaking the primary segments into subsets known as
nesting.
Individual Segments:
The first segments to be identified were on the individual level. As stated in the consumer
behavior memo, due to the style and sizes of Ivivvas clothing, the individual consumer is young
girls ages 6-12. However, specific variables of the most prominent individual consumers must be
identified. The variable used to categorize the individual consumers was state of mind, more
specifically, lifestyle. Active vs. non-active were the first categories. Embedded within those
categories were four additional subsets relating to specific sports or activities. Three subsets were
created to further categorize the active individual and one subset was created for the non-active
individual. Active young girls were further divided by participation in a particular type of sport
performance sports, outdoor sports and indoor sports. Performance sports included dance and
gymnastics, outdoor sports included soccer, softball and lacrosse, and indoor sports included
basketball, volleyball and swimming. There were quite notable differences among the four
segments in terms of problem recognition. For example, girls involved in performance sports are
triggered by the need to find form-fitting clothing that is stylish, while outdoor and indoor sports
players are motivated by the need to replace old or worn-out clothing. Non-active girls recognize
a problem around the desire to be stylish and fit-in among the trendy population. The next step in
the buying process, information search, was not as varied among the segments. Each of the
active segments searches for information from the same three outlets teammates, social media
and physically going to the store. Non-active girls also use social media and the opinion of
others, but they do not travel to the store. Instead, they tend to complete the search online. While
information search may have been relatively similar for each group, the attributes that are
evaluated between alternative choices were very different based on the segment. For example,
girls who play outdoor sports evaluate the alternatives primarily on functionality, quality and
then lastly the fit of the clothing. Girls who play indoor sports also evaluate the functionality and
fit of the clothing, but they look at the style and design of each option. Just like volleyball
players and swimmers, dancers and gymnasts look at the style and design of their options as
well. However, they distinguish between alternatives primarily on the size and fit. Unlike the

active individuals, non-active girls are not focused on functionality, style or design, but rather
with the brand reputation and the status associated with purchasing a particular product. The next
step in the buying process that was examined was the purchase decision. Because there are only
three mediums through which clothing is typically purchased, each segment used a combination
of those variables. Dancers and gymnasts tend to make their purchase decision in-store after
trying on the product, while girls playing indoor and outdoor sports tend to make their final
decision online. Non-active girls use in-store purchases as a last resort and typically borrow
clothing first before then buying online. The last step in the buying process is post-purchase
behavior. The feels associated post-purchase are generally related to the attributes evaluated
between alternatives and the medium through which the purchase decision was made. For
example, non-active girls are satisfied with a purchase if they feel a certain level of social status
has been obtained and positive feedback is received from their peers. Dissatisfaction however,
would result from the rise of a new and different trend, as well as negative feedback from
friends. Girls involved in performance and indoor sports experience satisfaction post-purchase if
the product fits well, and are dissatisfied if the product stretches out quickly. Girls who play
outdoor sports, such as soccer players and lacrosse players are generally satisfied if the product
lasts long and are dissatisfied if the product is not as durable as was expected.
After identifying the buying process utilized by each segment, it is then important to
examine the primary differences that define the four segments. The most evident differences in
buying behavior can be seen between the general classification of active or non-active. Nonactive girls are focused on social status, brand reputation and peer feedback on a clothing
purchase. These girls also tend to follow the most popular trends. Due to the increase in the
multi-functional athleisure market, non-athletic girls are a viable segment for Ivivva to
consider. While the consumer behavior of active individuals contrasts primarily with non-active
individuals, there are subtle differences in the buying process among active individuals as well.
Outdoor-sport players, for example, have a need to replace old clothing and look for clothes that
fulfill a certain function and have a high quality. On the other hand, girls who participate in
indoor sports, such as basketball, volleyball or swimming, approach the buying process with a
need to replace old and worn clothing, and evaluate the alternatives and the purchase based on
whether or not the clothing fits and if it has a suitable design. This approach is similar to that of
the dancer and gymnast. These girls seek form-fitting clothing and evaluate the products based
on the size, fit and style. After analyzing the motivation and goal behind each individual
segment, companies can initiate specific marketing tactics and treat each segment individually. In
doing so, marketers are able to market a product more effectively and more efficiently.
Given Ivivvas product range, we recognize that the primary focus will be on active
children, particularly those involved in performance sports. That being said, it is always crucial
to identify other potential segments. This same process will now be completed for the household
consumer.
INDIVIDUALS:
Basis Variable: Lifestyle Active & Non-Active w/ nested sub-lifestyles
Active

Non-Activ

Segment 1
Performance sports
(Dance/gymnastics)
Problem
1. Need form-fitting
Recognition
clothing
2. Desire to be
stylish
3. Peer pressure from
teammates
Information 1. Ask teammates
Search
2. Social media
3. Visit store to browse
& try on
Alternative 1. Size/fit
Evaluation 2. Style/design
3. Function
Purchase
Decision
PostPurchase
Behavior

Descriptor
Variables

Segment 2 Outdoor
sports (Soccer, Softball)
1. Need to replace
old/worn clothing
2. Need warmer workout
clothing
3. Need new sizes

1. Social media
2. Ask teammates
3. Visit store to browse
& try on
1. Function (warmth,
cover)
2. Quality
3. Size/fit
1. In-store
1. Online
2. Borrow
2. In-store
3. Online
3. Borrow
Satisfied: Dissatisfied Satisfied: Dissatisfied:
- Fits
:
- Long- Not
well
- Stretches
lasting
durable
- Looks
out quickly - High
(rips/tears)
good
- Different
quality
- Poor
- Positive color/design quality
teammate than
Functiona - Too much
feedback expected
l
money
- Majority
spent
of team has
different
brand
Gender: Female
Gender: Female
Age: 6-12
Age: 6-12
Ethnicity: various
Ethnicity: various
Lifestyle: Active;
Lifestyle: Active;
performance sports;
outdoor sports; soccer,
dance or gymnastics; on softball or lacrosse
a team, take weekly
Other traits: desire
classes, compete
functional clothing
Other traits: concerned
(warmth); will examine
with body shape;
what teammates are
consult teammates for
wearing as a guide but
style/purchase advice
make individual
purchase choice

Segment 3 Indoor
sports (Basketball,
Volleyball, Swimming)
1. Need to replace
old/worn clothing
2. Desire comfortable
clothing
3. Need new sizes

Segment 4 No
athletic

1. Want to be sty
2. Friend just bo
new clothing
3. All other kids
wearing this tren

1. Social media
2. Ask teammates
3. Visit store to browse
& try on
1. Function
2. Size/fit
3. Style/design

1. Talk to friend
2. Social media
3. Online (webs
catalogues)
1. Brand reputat
2. Status associa
with product ow
3. Size/fit
1. Online
1. Borrow
2. In-store
2. Online
3. Borrow
3. In-store
Satisfied: Dissatisfied: Satisfied Diss
- Fits
- Stretches
:
- Ris
well
out quickly - Social
new
- Long- Not
status
- Ne
lasting
durable
obtained peer
- Positive (rips/tears)
feed
teammat - Different
Positive - Too
e
color than
peer
mon
feedback expected
feedback spen
- Fits
well
Gender: Female
Age: 6-12
Ethnicity: various
Lifestyle: Active;
indoor sports;
basketball, volleyball or
swimming
Other traits: need
workout gear; want
clothing that fits well;
desire functionality of
clothing (movement);
buy similar
styles/designs as

Gender: Female
Age: 6-12
Ethnicity: variou
Lifestyle: Non-a
student; other no
athletic activitie
Other traits: foc
social status ass
with brands; fol
trends of peers;
about attributes
seem important

teammates
Household Segments:
On the household level, four distinct segments have been identified to further focus our
segmentation process. They were constructed from the basis variable of the income of the
household, with a subset variable of being a household with or without children. As a result,
these four segments include (1) high-income households with children, (2) high-income
households without children, (3) middle-income households with children, and (4) middleincome households without children. The buying process varied between each of these segments,
as importance of wants and needs differ when income and the number of children in a household
are taken into account.
The problem recognition stage is analyzed first, and the needs of each segment are quite
different. A high-income household with children has most likely built up a strong relationship
with Ivivvas parent company Lululemon, as they cater to a wealthy adult market willing to
spend high prices for yoga gear. As a result, parents who shop at Lululemon will most likely
choose Ivivva for their childrens athletic wear needs because they are aware of the great quality
of the clothing, enjoy the styles, and are willing to spend the extra money because of their brand
loyalty. Their willingness to choose Ivivva will ultimately stem from their child asking to shop
there, most likely after seeing friends wearing the clothing line or joining a sports team. The
problem recognition for a middle-income household with children differs from that of a highincome household, as they are more concerned about the value they will derive from choosing
Ivivva. They are going to be most concerned with buying clothing for their child that will last a
long time and will stretch to fit their child as they grow so that they do not have to buy multiple
new athletic wear items in the near future. They will most likely recognize these needs as a result
of their child joining a sports team, further driving them into Ivivva to meet their durability and
value needs. Households without children, however, have a very different problem recognition
process. These households will most likely be buying Ivivva as a gift for a relative or a friends
child, rather than buying it for themselves. However, oftentimes adults who are very petite
venture into childrens clothing lines to save money and find that these styles fit better. Although
this would not be seen in a high-income household, a middle-income household may buy Ivivva
to resell online to make a small profit as another way to bring in some extra income.
The next stage of the buying process, information search, does not vary as much among
segments, as this type of purchase generally does not consume much of the buyers time.
Clothing is not a high-involvement purchase, and a result all segments will either go to the store
to analyze the clothing items themselves, or will read online reviews of the products. However,
high-income parents will most likely talk to other parents to see what kids are wanting and what
other parents are buying, while high-income households without children will turn to
advertisements. This is because without children telling them what they do and do not want,
advertisements are one of the few ways for childless households to hear about childrens
clothing. Middle-income families will focus more on reviews to ensure they are getting a quality
product, and will talk to employees to ensure that they are making a smart buying decision.
Middle-income households will generally spend more time on this buying process since they are
more likely spend more time thinking about an expensive clothing item for a child.

Alternative evaluation is pretty similar among segments with just a few variations. Highincome households with children will be less likely to place high value on price, unlike the other
three segments that are either on a budget constraint or are buying a gift. High-income
households with children will be most concerned with the looks and status the product brings,
while high-income and middle-income households without children will place emphasis on price
and the style/design aspects, since it will most likely be a gift. Price will place the greatest
weight on middle-income household decisions, followed by function and quality in order for the
family to feel they are making a smart buying decision. To buy the product, buyers will either go
to the physical brick and mortar Ivivva location to pick out their clothing items, or use the online
store for convenience. The purchase decision is pretty standard across all segments, as when
buying clothing from a retail location, these are the main ways to physically make a purchase.
Borrowing will come into play for each segment, but will be the least important for high-income
households that do not have a problem purchasing clothes at this price point. Their children may,
however, on occasion borrow Ivivva products from a friend. Middle-income households with
children will most likely be more prone to borrowing, while middle-income households without
children will be less focused on borrowing since it is probably a gift item for a relative or friend.
Satisfaction and dissatisfaction post-purchase behavior for all segments will be focused
on whether or not the child is happy and it fits the child well. Whether it be a purchase for a child
or a gift, each segment will want the actual person wearing the clothing (most likely the child) to
be satisfied. All segments besides high-income families with children will place great satisfaction
emphasis on whether or not they feel it was money well spent, while high-income families with
children will most likely be concerned with how it adds to the overall image of the family.
Middle-income families will find satisfaction from feeling that they bought a high-quality
clothing item that was worth the money, and that will maintain this high quality for years to
come. As with most clothing purchases, dissatisfaction will result from the clothing being seen as
low quality, or has poor design/style elements. Post-purchase behavior is relatively similar across
segments.
After identifying the buying process utilized by each segment, it is then important to
examine the primary differences that define the four segments. The main difference among the
segments is the priority they place on quality versus style/design when making a childrens
clothing purchase. High-income households are less likely to be concerned with the quality
aspect and more concerned with how the item looks, focusing on the style and design properties
of the item. Middle-income households, however, tailor their buying process around the price
and quality of the product. They are more likely to emphasize the durability of the clothing item,
as they will not be making routine purchases of athletic wear for their children. They are most
concerned with finding clothing that will stretch to fit children for years to come. The other
primary difference between segments can be seen in the problem recognition stage. Families
with children have very different needs than families without children. Households with children
have a direct need for the product resulting from a child asking for the product or needing the
product as a result of a recent sports endeavor. Households without children are focusing on the
gift aspect of the purchase or toy with the idea of buying the clothing item for themselves (the
adult) rather than a child. Given Ivivvas product range, we recognize that the primary focus will

be on high-income households with children because the product offerings are catered to families
who are willing to pay high prices for their childrens athletic wear.

HOUSEHOLDS:
Basis Variable: Level of Income of Household; subset: w & w/o children
High Income Households
Middle Income Households
Segment 1 With
Segment 2
Segment 3 With
Segment 4 Wi
Children
Without Children
Children
Children
Problem
1. Gift for a family
1. Child is growing fast,
1. Gift for a fam
Recognition
member/a friends
yoga pants will stretch and member/a friend
1. Brand loyalty to
child
fit longer
2. Adult is very
Lululemon
2. Taking a family
2. Need a durable athletic size and wants t
2. Child asks for it
outfit for child
money by buyin
3. Child signs up for member/a friends
child shopping
3. Child signs up for an
Ivivva rather tha
an athletic
3. Adult is very
athletic team/event
Lululemon
team/event
small size and wants
3. Wants to buy
to save money by
online
buying Ivivva rather
than Lululemon
Information
1. Go to store
1. Go to store
1. Go to store
1. Go to store
Search
2. Online
2. Online
2. Online
2. Online
3. Talk to other parents
3. Advertisements
3. Reviews
3. Talk to emplo
Alternative
1. Style/design
1. Price
1. Price
1. Price
Evaluation
2. Brand reputation
2. Style/design
2. Function
2. Style/design
3. Status associated w/
3. Color
3. Quality
3. Color
product
Purchase
1. In store
1. Online
1. Borrow
1. Online
Decision
2. Online
2. In-store
2. Online
2. In-store
3. Borrow
3. Borrow
3. In-store
3. Borrow
Post-Purchase Satisfaction Dissatisfact Satisfacti Dissatisfa Satisfaction Dissatisfacti Satisfacti Diss
Behavior
:
ion:
on:
ction:
:
on:
on:
ion:
- Fits child - Stretched - Child is - Fits child - Product
- Child is - Pr
well
out quickly pleased Different well
overpriced
pleased
over
- Positive
- Different with
color
- Felt it
- Quality is
- Fits
- Di
feedback
color than
product than
was money poor
child well colo
from other expected
- Fits
expected well spent ruined
- Feel
expe
parents
- Different child
- Quality - Good
quickly
that
- Qu
- Overall
brand has
well
is poor quality
- Different
money is poo
family
better
- Feel
ruined
longevity
brand has
well spent ruin
social status review
that it is quickly
better review
quic
gained
money
well
Stretched
spent
out
quickly

Descriptor
Variables

Wealthy family with one

or multiple children living
in a high-income
suburban neighborhood.
Most likely to be
unaffected by economic
ups and downs with
parents who are frequent
shoppers at Lululemon.

Wealthy household
without children
living in an urban
neighborhood. Have
relatives or close
friends with
children. Most likely
to be unaffected by
economic ups and
downs. Frequent
shoppers at
Lululemon.

Financially stable
household that is still
limited by some financial
constraints. Have children
in the house and live in a
suburban area. Less likely
to make frequent splurge
purchases and look to buy
quality clothing for their
children that will last for
many years to come.

Financially stab
household witho
children that is s
limited by some
financial constra
Living in an urb
setting and have
relatives or close
friends with chil
Focused on mak
financially soun
purchases that e
feeling of mone
spent. Look for
durability and qu
clothing purchas

Organization Segments:
The last segments to be identified were on the organizational level. The variable used to
categorize the organizational consumers was the type of organization, specifically athletic
studios that sell athletic clothing. The three segments that we creating using this variable were
yoga studio (Core Power), other type of fitness studio (Pure Barre Ballet inspired fitness), and
lastly, cycling studios (SoulCycle). Between these three segments there were notable differences
between all steps of the buying process meaning that each of these segments is great for potential
targeting.
Among these three segments (yoga, Barre, & cycling) the problem recognition factors
were quite different. For example, the number one problem recognition was different for each of
the segments; Yoga studios like Core Power are more likely to focus on building their studio
store with new brand (currently have large shops at the studio selling 5 or so brands of clothing),
Barre studios are most likely looking for athletic apparel inspired by dance because it is a ballet
inspired exercise, and because the style of yoga clothes dont match 100% to that of cycling
clothes, cycling stores are most likely going to think about buying a yoga based brand if
customers are asking about it. The next step in the buying process, information search, was also
varied among segments. Yoga studios main source of information search would be other studios;
their competitors. Its important that these well-known yoga studios carry the same brands of
their competitors and if their competitors arent carrying certain brands, it may be a way to
differentiate. Barre studios are probably going to look and get information based on company
catalogues that are sent to their store. Cycling studios are most likely going to look online for
information because they are such a niche market where yoga clothes may not necessarily be
preferred but, will work and are a good alternative to bike specific clothes. The attributes that are
evaluated by each organization were also different. Yoga studios hold price, brand reputation,

and quality very highly. Price is important because yoga is not the most expensive type of fitness
class (compared to Barre, and soul cycling) therefore there is a wider range of consumers that
would shop at their stores based on economic status. They dont want a product that is too pricy
for their consumers. The Barre studio segment places high importance on the style, function and
quality of the athletic apparel. Style is the most important because dance inspired fitness often
means being expressive, as does fashion and style. The cycling studios rank function, size/fit,
and quality to be their top attributes in athletic apparel. Function and size/fit are very important
because like mention earlier, yoga pants are not made specifically for a biker so, as long as the
clothes fit well and function similarly to cycling clothes, the products would be worthy. Next
comes purchase decision, where the segments decide on hat product to buy and where. Yoga
studios like Core Power are most likely to make purchase through a sales representative. Core
power has a pretty large studio store with and extensive product/brand range. Because they are
established stores most likely reps are sent to the studios where the product lines are shown and
then later the buyer will contact the rep with the decision. Barre studios dont have established
stores so they have to work a little harder to get the products in their hands. Most likely these
fitness studios will hope to be sponsored by the brand (say Lululemon/Ivivva) but if not, this
segment will use catalogues to purchase (where they looked for information). Lastly, the cycling
studios are most likely going to purchase online because they have little connection with yoga
fitness/marketing so they resort to purchasing online. The last and final step in the buying
process is where these organizational segments evaluate their decisions; were they satisfied or
dissatisfied? Mainly the satisfaction level of each segment will be related if the problem
recognized was solved, and to whether or not the desired attributes were met. For yoga,
satisfaction can be found if the purchased product increased sales and helped the overall business
because the main problem was building a studio as a means of more income. Dissatisfaction
would occur if sales didnt increase, or if customers were not satisfied with the purchased
products. For the Barre studio, satisfaction would be met if colors, design, and style matched
expectations because the main problem was obtaining more dance inspired clothing.
Dissatisfaction would mostly result from unmet expectations of color/design and if the
organization didnt think they order the right type of product. Cycling studios main source of
satisfaction would be if the customer gave good feedback, if the product fit well and was of high
quality. The biggest reason for dissatisfaction for cycling studios would be a large cognitive
dissonance; if customers arent satisfied this leaves a heavy feeling of regret and feeling that they
made the wrong choice.
After identifying the buying process utilized by each segment at the organizational level,
it is then important to examine the primary differences that define the three segments. The most
evident differences in buying behavior and quite possibly the most important stage for defining
the segments can be seen in the problem recognition. This stage shows that the three segments all
have very different reasons why they are entering themselves into the buying process. These
problems that have been recognized then set the tone and affect the aspects of each of the
following stages making for very different segments with specialized needs. After analyzing the
motivation and goal behind each individual segment, companies can initiate specific marketing
tactics and treat each segment individually. In doing so, marketers are able to market a product
more effectively and more efficiently. Given Ivivvas product range, we recognize that the
primary focus will be on yoga studios and Barre studios because the products are more fitting for
these types of fitness classes than others.

In conclusion, the segmentation process provides tremendous insight into the minds of a
products consumers. Eleven separate segments were identified in the Ivivva segmentation
process. While that may seem like a high number of segments, it is important to identify all the
potential segments before narrowing down to one or more target markets. Having multiple
segments to choose between allows marketers to select consumers with very similar buying
characteristics and treat their target markets individually.
ORGANIZATIONS:
Basis Variable: Type of Store

Problem
Recognition

Information
Search
Alternative
Evaluation
Purchase
Decision
PostPurchase
Behavior

Descriptor
Variables

Segment 1 Yoga
Studio (CorePower)
1. Trying to build a
studio store
2. Need more forms of
income
3. Need product with
good brand reputation

Segment 2 Other
Fitness (PureBarre)
1. Want/need to sell a
dance-inspired clothing
line
2. Want connection to
brand with similar values
3. Customers are asking
for it
1. Similar organizations 1. Catalogues
2. Catalogues
2. Online
3. Online
3. Similar organizations
1. Price
1. Style
2. Quality
2. Function
3. Brand reputation
3. Quality
1. From a sales rep
1. Sponsor
2. Catalogue
2. Catalogue
3. Online
3. Online
Satisfied: Dissatisfied Satisfied:
Dissatisfied:
- Help
:
- Loved
- Different
overall
- Out of
the
colors/desig
business company
style/desig n than
growth
budget
n
expected
- Positive - Poor sales - Good
- Displeased
feedback of product
quality
with order
from
did not
longevity
- Low sales
customer increase
- Good
of product
s
sales
customer
- Good
feedback
quality Displeased
longevity with
product
order

Yoga studios (Core

Power for example)
providing various types
of yoga fitness classes
for men women and
children. Costs of
classes are on the low
to mid end of cost
spectrum for various
fitness classes. Studios
sell yoga related
products and clothes.

Other fitness studios like

Barre or Pilates studios
provided various fitness
classes to help with
strengthening, toning and
flexibility for women.
Classes are on the mid to
high cost spectrum for
various types of fitness
classes. Sale of related
product and clothing is
available online and
limited stores.

Segment 3 Cycling
Studio (SoulCycle)
1. Customers are
asking for it
2. Trying to build
studio store
3. Need product with
good brand reputation
1. Online
2. Similar organizations
3. Catalogues
1. Function
2. Size/fit
3. Quality
1. Online
2. Catalogue
3. Sales rep
Satisfied: Dissatisfied
- Fit a
:
variety
of
Displeased
customer with
s
product
- Good
order
quality - Quality
longevity was not up
- Positive to desired
feedback standards
from
- Would
customer have gone
with
another
company if
further
researched
Spinning studios like
Soulcyle provide
various levels of
spinning classes.
Extreme cardio work
that helps strengthen
and tone muscles for
men and women.

D. Competitive Analysis
Competition is a crucial aspect to analyze within an industry. Knowing and understanding
the behavior of your competitors and the responses of your competitors to your behavior gives
your company an edge in the market place. That is why after analyzing the consumer behavior,
segmentation and demand aspects of our company and market, it is only fitting to examine the
competition. Competition in the womens athletic wear industry consists of existing competitors,
potential competitors and further predicting the behavior of these competitors.
Current Competitors
The primary step of competition analysis is identifying the current competitors. Ivivva
has an extensive list of competitors, varying from yoga clothing to non-athletic wear and even
non-traditional clothing options. In order to discern the strongest competitors for Ivivva, a
pyramid was created based on product offering and substitute products.

The strongest of Ivivvas current competitors in terms of this comparison are companies
like Soybu and Lucy. Much like Ivivva and its parent company Lululemon, Soybu and Lucy
offer primarily yoga clothing. This segment would primarily be concerned with the size/fit of the
products, followed then by style and design. In terms of childrens yoga clothing, Soybu and
Lucy have yet to extend their product offering to children. This leaves Ivivva as the sole current
yoga-retail competitor with a childrens line. While it would seem that Soybu and Lucy are the
strongest competitors for Ivivva, the non-yoga athletic wear presents a stronger set of
competitors. This segment falls one level below the top of the pyramid. Such companies in this
segment of competitors are Under Armour, Nike and Adidas. These companies offer a variety of
workout clothing from outdoor running gear to indoor training. Traditional athletic clothing has
been the norm for many generations and is only now being replaced by tighter, yoga-style
clothing. It is because of this slow, yet steady, trend that causes traditional athletic clothing
companies to be a great competitor to Ivivva and other yoga-clothing retailers. Ivivva is fighting

with these stores for a larger share of the market. Consumers of Nike, Under Armour and Adidas
likely belong to segments two and three from the Individual Lifestyle segment table. These
two segments consist of individuals who play outdoor or indoor sports such as basketball, soccer
and lacrosse. These retailers cater to the desires of consumers by providing primarily functional
clothing but have also managed to do it with style. Ivivva, as their competitor, needs to continue
to attract consumers based on the style, design and fit of their clothing, while further developing
the functionality of their products.
The bottom two portions of the pyramid represent more extreme alternatives to yoga and
athletic clothing. In the past, non-athletic apparel occupied an entirely different segment of the
clothing market. However, as athletic clothing has transitioned to athleisure clothing, these
retailers are now competing with athletic wear brands. For the older generation or for those who
desire a classier and perhaps stylish look, companies like Justice, Old Navy, Childrens Place and
Gap offer a viable alternative to comfortable yoga pants of athletic shorts. Regular buyers of
these items primarily fall into segment number four on the Individual Lifestyle segment table.
This segment is non-athletic and evaluates brand reputation and status over function and fit. A
pair of jeans from H&M or patterned shorts from Old Navy is a common purchase for these
individuals. Ivivva lacks this traditional product offering, which makes such retailers a strong
competitive threat for the yoga company. While Ivivva does not provide jeans or fancy blouses, it
offers the appeal of brand reputation. Its parent company Lululemon has laid a reputable
foundation for Ivivva to act as a status-worthy product. The final tier of the pyramid represents
non-traditional apparel. These alternatives could be classified as out there or bizarre options,
but still take up a certain share of the market. For example, spray-on yoga pants, if developed,
are a competitor to Ivivva, along with hosiery companies that sell tights and fishnet stockings.
Much like yoga clothing can be used for leisure, tights can serve the same purpose. Most of these
consumers probably fall into segment four of the Individual Lifestyle segment table. These
consumers represent a special niche of the market and could be one of the most challenging
consumers for Ivivva to convert.
From other yoga apparel companies to non-traditional alternatives, Ivivva has a strong
and steady list of current competitors. Because Ivivva focuses primarily on one individual
lifestyle segment, there are potential opportunities for Ivivva to penetrate the market. To do so,
the designers at Ivivva must evaluate the other segments and cater some products to the different
desires of consumers.
Potential Competitors
Market Leaders
Market
Challengers
Market
Followers

Ivivva/Lululemon
Under Armour
Nike
Adidas
Zella
Old Navy
Lucy
Athleta
Zella

Market Nichers

Soybu (clothes are made from soy, organic cotton,

bamboo, and recycled material)

Ivivva has set the bar high for competitors, following its market leader parent company
Lululemon. Lululemons current competitors will be Ivivvas future competitors, as these
companies are trying to move into the childrens market in order to directly compete with Ivivva.
Ivivva has several potential competitors, including Athleta, Soybu, and Old Navy. Athleta is
coming up quick on the heels of Ivivva. They do not yet have a childrens line of clothing, but
they are one of the main competitors of Lululemon. Athleta has a broader offering of goods,
including yoga/studio, run/hike, dance/barre, surf/paddle, cycle/spin, tennis/golf, and
ski/snowboard. They appeal to more consumer athletic activities, and have 40% larger stores
than Ivivva. They are predicting 40 to 50 new store openings in the next year, and it would be no
surprise if they break into the childrens athletic wear market to compete head to head with
Ivivva and Lululemon simultaneously (Levisohn). Market and product expansion are strategies
that Athleta will be using in the near future to take on Ivivva as a top competitor, just as they
have Lululemon. Athleta will greatly appeal to all individual segments from Memo 3, as they
cover each sport category with their designs. They have designs for performance, outdoor, and
indoor sports, as well as focus on functionality, which is the most important alternative
evaluation for the individual segments.
Soybu is another potential competitor for Ivivva, as they have a differentiation strategy
that is unlike any other. Soybu makes all of its clothing out of soy, organic cotton, bamboo, and
recycled materials (Lutz). Consumers are responding well to this trend, and Soybu is using their
environmental values and lower prices to snag Ivivvas potential customers. Soybu also has yet
to move into the childrens market for yoga clothing, posing a threat when it does decide to make
this move. Parents will be drawn to the lower prices and the possibility of helping support the
cause of environmental issues. This brand is a great fit for the organizational segments,
especially Segment 1 (Yoga Studios), as it offers a unique selling opportunity to bring in some
additional income that will differentiate their studio from the rest. It will help this segment to
build their studio store, while meeting one of their most important issues of selling a product
with good brand reputation, and Soybu has just that.
A third potential competitor, Old Navy, has recently made its move into the childrens
yoga-wear industry. Their sales have been terrific with their childrens athletic wear, specifically
their yoga line (Lutz). They completely differentiate their products in that they have a
substantially lower price point than the rest. They appeal to middle/lower-income household
segments (Segment 3 in households from memo 2) with children since their price point is a mere
$12.00 for a pair of yoga pants, which are currently on sale at Old Navy for only $4.00. This
segments most important alternative evaluation is price, and Old Navy caters to this segments
need.
Given that Ivivva is the only company that focuses solely on the childrens market, many
potential competitors are on the horizon for Ivivva. Athleta, Sobyu, and Old Navy are just a few
potential competitors for this one-of-a-kind company.

Predicting Competitor Behavior

Yoga pants are the new go-to pant for many girls and women that are hopping on the
bandwagon for the new and growing trend of soft dressing. It has been stated that sales of
active wear like yoga pants climbed 7 percent, more than doubling the $16 billion people spent
on jeans (WTAE). With growth trends like this, the yoga pant and active wear markets are only
going to continue to increase in popularity which also means that more and more competitors are
going to enter this athleisure market. With the great risk of increased competition, it is very
important that Ivivva has solid predictions on what these competitors next moves might be.
Predicting competitor behavior is essential for a market leader to maintain their position and to
reduce market share risk.
Currently Ivivva is not being overly threatened by big athletic wear brand names because
many dont have childrens yoga wear lines. As mentioned earlier, Ivivva faces potential
competition from companies such as Athleta, Old Navy, Soybu, who do not yet have kids athletic
wear lines, and even bigger names like Nike and Under Armor and Zella who have girl athletic
wear lines currently. Even though not all of these companies currently have athletic wear lines
for children, this will likely change as the demand for yoga clothing seems to keep rising,
validating the prediction that these companies will most likely create new market segments to
directly compete with Ivivva. Knowing that these companies pose as major threats to Ivivvas
future growth and success, it is very important to predict the behavior of these potential
competitors. We will look at and predict the behaviors of two companies, one that is doing an
amazing job in the yoga specific market but doesnt have a kids segment, and one that is a
universal brand with a great reputation that does have a kids segment: Athleta and Nike.
Lululemon is known as the pioneer of yoga pants and has done an amazing job at
creating athletic wear for women that is trendy, different, and attracts a huge loyal following.
While Lululemon is one of the market leaders, many competitors have emerged and are
competing with force. In response to the new national trend of athleisure, companies like Gap
has created their own line of yoga clothing for women, Athleta. Athletas products are roughly
the same price as Lululemon and target the same people that Lululemon targets. Athleta is
responding very well and is a major threat to Lululemon. They are planning on opening thirty
new stores in the US in 2014 and are partnering with fitness brands to host free classes for
communities, which are beginning to win over past Lululemon customers. When Lululemon had
major problems with quality of their products, Athleta was the number one retailer to profit from
Lululemons mess-up (CNBC). So, how is Athleta a threat to Ivivva? While Athleta does not yet
have a childrens line, it would be smart to predict that they will in the future. And if they do, it
will be a very serious competitor to Ivivva. Athleta has the finances, the following, they have
larger product lines, more lenient return policies, offers a larger range of sizes, and has better
inventory management that Lululemon all of which are threatening factors to Ivivvas success
(Business Insider). If Athleta does start a childrens segment, it is important that Lululemon is
ready to respond.
Companies like Nike and Under Armor, which already have established childrens lines,
pose as strong competitors in the athletic wear market for girls. While the girls athletic wear line
for Nike and Under Armor are more geared towards running rather than the yoga and dance

themed clothing sold by Ivivva, these companies have the resources to expand. Nikes sales this
year jumped 15% to $8 billion in the three months that ended Aug. 31, sending its profit up 23%
to $962 million and the growth in their athleisure line is largely responsible for this major
increase in sales (The Wall Street Journal). Currently Nike is focusing more on the womens
athleisure segment in hopes to compete with the top brands like Lululemon and Athleta but they
certainly have the resources to also increase the sales and production of girls athletic wear.
Nikes childrens segment is one of their top 5 most profitable segments along with running,
basketball, cross-training and womens shoe (CSImarket). Nike, a company that is always trying
to be the leader at the next athletic trend, has a huge pot of resources (both financial and
managerial) available, clearly has had success in the childrens segment, and it should be
expected that they will commit to expanding their girls athletic line in hopes to more directly
compete with companies like Ivivva.
Predicting competitors behavior can be very difficult. In general its important for Ivivva
to assess the current state of competitors and predict how they would respond to the success or
strategic movement of these companies. With the major success that athleisure lines are
bringing to companies it is safe to say that many of Ivivvas direct and indirect competitors will
react and respond to this trend creating an even more competitive landscape. With this, Ivivva
will have to figure out a response. Its hard to say exactly what approach competitors will take in
the market but, Ivivva will need to play to its strengths: producing and selling high quality
products, having a very strong and reputable parent brand, and their specialty in yoga/dance
specific clothing. Ivivva will have to watch and predict these competitors moves and respond
accordingly to remain a market leader.
Competitive Analysis
Buying Criteria
Price
Quality
Style/Design
Status Associated with Product
Brand Reputation

Ivivva
10
8
10
10
9

Under Armour
6
7
7
6
8

Nike
4
5
3
4
4

Zella
7
9
9
10
10

Based off of the pricing from each companys website, we ranked each competitor based
on this variable. Ivivva came in at the highest price point at $64.00 for a pair of pants, followed
by Nordstroms Zella at $48.00, Under Armour at $38.00, and finally Nike at the lowest price of
around $25.00.
In terms of quality, Ivivvas consumers did not have much to say when it came to
complaints about their products, except that they experienced pilling with certain designs. Under
Armours customers were less than thrilled with the material and felt that they were low quality
fabrics. Nikes reviews were the lowest as customers felt that the product was nearly ruined after
several washes, as the material did not uphold the wear and tear of washing machines. Zella had
the highest reviews, and based off of Nordstroms website, customers were rarely disappointed
with the product and almost always gave a 5-star review.

For style and design of the products, Ivivva leads this category. They have very unique
designs that have been spun off from Lululemons adult designs. They incorporate colors that the
competitors havent, and have unique patterns and waistband designs that set them apart. They
have more variety in their colors and patterns than the other three companies. Under Armour has
a more generic style when it comes to their designs and few color choices for each item. The
highest amount of color choices a consumer at Under Armour is given is between 3 options,
while Ivivva offers up to 10 pattern and color choices for a single item. Under Armours designs
are not as fashion forward and young given the childrens age group they are appealing to. The
style and design of Nikes childrens athletic clothing items is very similar to Under Armours.
However, there is even less color and design choice for clothing items. Zella is comparable to
Ivivva in that they offer a wide variety of unique designs and colors, but just less of a variety
than what is seen at Ivivva. They are the most similar to Ivivva in their style and design aspects.
That status that consumers receive as a result of buying a product is very important. In
this case, both Ivivva and Zella have scored a 10 on this variable. As mentioned in past memos,
Ivivva has a customer base comprised of people who are not affected by economic downturns.
They have a high income, so those that shop at Ivivva are instantly associated as being wealthy
and of higher status. The same goes for Nordstrom, as they are a luxury store that appeals to
upper-class shoppers. Zella being a Nordstrom brand has resulted in a very high status being
associated with the product. Those who can spend large amounts on workout gear are associated
this way. Under Armour follows these two brands relatively closely. They are not the lowest
price point, and people who buy Under Armour are usually upper/middle-class consumers, who
have that status that allows them to buy one of the more expensive alternatives. Nike comes in
with the lowest status associated with the product, as it is not seen as an incredibly high-end
brand, and it can be one of the cheaper alternatives for parents who do not have the money to
spend on childrens athletic wear.
Brand reputation was found from a combination of our own word-of-mouth perceptions
of the brand, as well as quality reviews. Ivivva has a positive brand reputation, as they are a
subsidiary of the very successful and well-liked Lululemon. Yogis (people who practice yoga)
have made Lululemon their go-to for their apparel, and parents who shop at Lululemon
automatically trust Ivivva for their childrens clothing. Under Armours reputation is similar to
Ivivvas, and consumers see Under Armour as a reputable brand that provides quality clothing
for the price. Nike has the lowest brand reputation, as they are notorious for running sweatshops
and treating employees poorly. This is often the association that consumers make with Nike as a
brand, causing shoppers to choose alternatives. Zella has the best brand reputation of all, as they
have the advantage of being a Nordstrom brand. Nordstroms customer loyalty is like none other
and they have a brand reputation of selling quality items with the best customer service around.
In conclusion, by evaluating and assessing Ivivvas competitive landscape, the company
will be able to better formulate an effective marketing program. It is very crucial to not only look
at the existing competitors but the potential competitors as well. Predicting competitors behavior
is what can make or break a company. If neglected, a company can face a very high risk of
market share loss. If mastered, a company can incorporate expected reactions by competitors into
strategic decisions, possibly leading to better marketing planning, more sales revenue, and an
increased market share.

E. Strengths, Weaknesses, Opportunities, Threats (SWOT)

The analysis of Ivivva up to this point has been extremely comprehensive. From the
company perspective and its position within the market, many critical aspects to its success have
been examined. That being said, there is another type of analysis that must be completed, which
is conducting a SWOT analysis. SWOT, which is an acronym for Strengths, Weaknesses,
Opportunities and Threats, examines a companys current situation, both internally and
externally, and determines what strategic areas to harness and which ones to avoid. Using the
information that has been gathered from the secondary research for each prior memo, an
inclusive SWOT analysis will be completed for Ivivva.

Strengths:

1. Sole childrens-only yoga clothing retailer

2. Strong support from parent company
Brand loyalty from the sole buyer
(the parent) is high
3. Positive parent-brand reputation
4. Broad product offering
5. Unique patented fabrics
Luon, luxtreme, silverescent,
COOLMAX
6. Community-centered marketing approach
7. Premium store locations
8. Positive press
Girl empowerment
9. Strong financial backing from Lululemon
10. High margins on products
11. Vertical retail strategy

Opportunities:
1. Opportunity to create a new segment for
boys
2. Further growth in the US
3. Expand Internationally
4. Growth of athleisure market
5. Growth of the fitness/health craze
6. Surpassing jean sales
7. Growth of e-commerce
Website shopping more popular
than in-store purchases
8. Growth of target market (ages 6-11)
9. Signs of economic improvement
10. Partner with yoga/dance/gymnastics
studios

Weaknesses:

1. Low US awareness
Marketing for Ivivva is not strong
2. Pricing strategy
Modeled off parent company
Eliminating a broad market
3. Relatively new company
4. Poor brand recognition (Ivivva vs. Lulu)
5. Slow growth strategy due to lack of mass
marketing
6. Struggling to expand past a yoga brand
7. Few retail outlets, not reaching all
potential customers
8. Limited sizing options
No plus-sizes offered
9. Majority of products manufactured
outside US
10. Strict product care requirements
11. Strict return policy

Threats:
1. Loyalty to traditional athletic-wear
2. Low market share
3. Other companies developing childrens
athletic lines
4. Competitors offer lower price point
5. Ever-changing fashion trends
6. High buyer power
7. Current and potential competitors have
high brand recognition
Ex: Nike, Under Armour
8. Competitors appeal to the boys (ages 611) active wear market
9. Low barriers to entry
10. Athleisure trend is not yet global

Upon completion, a SWOT analysis provides insight into the key internal and external
factors that are currently impacting a companys success. It is also an important step in
determining the position of the company in the industry. Company-specific strengths,
weaknesses, opportunities and threats are critical aspects that should be used to develop
marketing plans and materials.
III. Business Fundamentals
As previously mentioned, one of Ivivvas greatest assets is the support and experience
provided by its parent company, Lululemon. While there are many benefits to having the support
from Lululemon as an established organization, there are several constraints associated with
having a corporation governing Ivivvas actions. All of Ivivvas financial and regulatory
information is reported with Lululemons. As a result, it is difficult to identify revenue, expenses,
personnel and other investor information solely for Ivivva. However, we have utilized the
information provided in Lululemons 10K to outline the existing business fundamentals in place
for Lululemon and consequently for Ivivva.
Personnel:
o 2,861 employees (Lululemon)
Size/Location Ivivva
o Size: 62 stores/showrooms across Canada & US
o Locations:
o Canada:

British Columbia (3 locations)

Alberta (2 locations)

Manitoba (1 location)

Nova Scotia (1 location)

Ontario (4 locations)

o United States

Alabama (1 location)

Arizona (1 location)

California (9 locations)

Colorado (1 location)

DC (1 location)

Florida (2 locations)

Georgia (1 location)

Hawaii (1 location)

Illinois (2 locations)

Indiana (1 location)

Kansas (1 location)

Maryland (1 location)

Massachusetts (2 locations)

Michigan (1 location)

Minnesota (1 location)

Missouri (1 location)

Nevada (1 location)

New Jersey (3 locations)

New York (3 locations)

North Carolina (1 location)

Ohio (2 locations)

Oregon (1 location)

Pennsylvania (2 locations)

Tennessee (1 location)

Texas (4 locations)

Utah (1 location)

Virginia (1 location)

Washington (1 location)

Investment:

o Stock

Opened on July 27, 2007 @$12.50/share

Lululemon Athletica, Inc NASDAQ:LULU ($43.76/share)

Legal conditions/incorporation:

o May 1, 2007 Lululemon Corp. files registration statement for IPO

o September 1, 2009 Lululemon Athletica Inc. introduces Ivivva Athletica in
Canada
o November 8, 2011 Lululemon Athletica Inc. announces launch of Ivivva
Athletica in US market

Trademarks:

o Fabrics:

Luon

Seriously Light Luon

Light Luon

Full-On Luon

Luxtreme

Silverscent

IV. Marketing Programs

While Ivivva has been very successful thus far selling its existing line of products within
the young-girls market, there are ample opportunities for expansion via new markets and/or new

products. In order to visually compare and consider the various alternatives available for product
and/or market expansion, a product-market grid was created. In total, 56 different options were
considered through the product-market grid evaluation. Among those 56 options were the four
different strategies that companies use to develop. These strategies include Product
Development, Market Development, Market Penetration and Diversification. In addition
to strategy, factors such as size and growth of the market and break-even analysis for each
product were considered throughout the decision process. After some deliberation, 56
combinations were whittled down to 14, from which two were selected as the final programs to
pursue. Marketing programs were developed for each of the final two product-market selections.

Consumer
Behavior:

Segments:

Pants

Size/fit

Performance
Sports

Market Pen
8
competitors

Function
(warmth,
cover)

Outdoor
Sports

Market Pen
8
competitors

Indoor Sports

Market Pen
8
competitors

Non-Athletic

Market Pen
8
competitors

Function

Individual
Segments

Brand
Rep.

Function

Brand
Rep.
Style/
Design

Young Boys

Household
Segments

Market Dev
8
competitors

High Income
W/ Children

Market Pen
8
competitors

High Income
W/O
Children

Market Pen
8
competitors

Jackets

Swimwear

Studios

Product
Market Pen
Product
Dev
8
Dev
4
competitor
0
competitors
s
competitors
BE: .01%
Market Pen
Product
Product
8
Dev
Dev
competitor
4
0
s
competitors competitors
Product
Market Pen
Product
Dev
8
Dev
4
competitor
0
competitors
s
competitors
BE: .01%
Market Pen
Product
Product
8
Dev
Dev
competitor
4
0
s
competitors competitors
Market
Diversificat Diversificat
Dev
ion
ion
8
4
0
competitor
competitors competitors
s
Product
Market Pen
Product
Dev
8
Dev
0
competitor
4
competitors
s
competitors
BE: .002%
Market Pen
Product
Product
8
Dev
Dev
competitor
4
0

Market S
$880
Million

3%
G

$1.4
Billion

4.
G

$880
Million

3%
G

$352
Million

1.
G

$880
Million

7%
G

$23.8
Billion

1.
G

$10.2
Billion

.7
G

Price

Middle
Income W/
Children

Market Pen
8
competitors

Price

Middle
Income W/O
Children

Market Pen
8
competitors

Retired

Market Dev
8
competitors

Price

Yoga Studios
(Core Power)

Market Pen
8
competitors

Style

Other Fitness
(Pure Barre,
Water
Aerobics)

Market Pen
8
competitors

Cycling
Studios (Soul
Cycle)

Market Pen
8
competitors

Comfort/
function
warmth

Organizati
onal
Segment
Function

Comfort

Trampoline
Gyms (Jump
Street)

Market Dev
8
competitors

BE
Analysis

Pants
Jackets
Swimwear (onepiece)

Fixed cost
X
X
$32,000
(Production, selling &
admin)

Market Pen
8
competitor
s
Market Pen
8
competitor
s
Market
Dev
8
competitor
s
Market Pen
8
competitor
s

competitors competitors
Product
Product
$17
Dev
Dev
Billion
4
0
competitors competitors
Product
Product
$6.8
Dev
Dev
Billion
4
0
competitors competitors
$10.2
Diversificat Diversificat
Billion
ion
ion
4
0
competitors competitors

1.
G

Product
Product
$27
Dev
Dev
Billion
4
0
competitors competitors
Product
$25
Market Pen
Dev
Product
Billion
8
4
Dev
competitor competitors
0
s
BE: .
competitors
0003%
Market Pen
Product
Product
$1.2
8
Dev
Dev
Billion
competitor
4
0
s
competitors competitors
Market
$50
Diversificat Diversificat
Dev
Million
ion
ion
8
4
0
competitor
competitors competitors
s
19,710
1,186 suits
0
classes
$88,950
$394,200

4.
G

Selling price
$64 /pants
$80 /jacket
$75 /swimsuit

Variable cost
X
X
$48/swimsuit (direct
labor, overhead)

.5
G

.7
G

1%
G

.2
G

10
G

Studios (first year)

$13,140/month
(Rent, selling, admin
costs, etc)
$157,680/year

$20 /class
$3,840/month (192
classes/ month)

$2,160/month
(Electricityetc)
$12/class

Marketing Program #1
The first product-market combination that the team at Ivivva has chosen to pursue is
introducing a modified version of our existing jacket to a brand new market of young boys. As a
brand, Ivivva has been solely focused on designing and targeting young girls, which has been
very successful. Given the fitness trend that has swept the nation, young boys are a fundamental
group that was previously left out of Ivivvas focus. In this sense, Ivivva is choosing to take on a
market development strategy by selling an existing product in a new market. The objective with
this strategy is to utilize the experience and reputation of an existing product line and emulating
it within an appealing new market to increase Ivivvas revenue and expand its market.
Product:
Aside from the iconic yoga pants, two of Ivivvas most successful products are its zip-up
jacket and sweatshirt. Keeping in mind the new target market, Ivivva has chosen to re-design and
produce the Perfect Your Practice jacket for the new boys line. This sweat-wicking jacket acts
as the perfect pre-practice or pre-game layer that allows for free movement during warm up. This
jacket is made with Lululemons trademark Luon fabric, keeping quality and comfort up to
company standards. The features on the existing girls jacket will remain on the boys version.
Some of these features include front zipper pockets for storage, thumbholes, and cuffins for
keeping hands warm. The only true differences in product design will be characteristics such as
colors, patterns and sizing.
Price:
Due to the fact that this product is currently already produced and sold by Ivivva and its
parent company, Lululemon, pricing options are quite limited within the new market. Although a
pricing strategy such as price penetration could be extremely useful in attracting parents of
young boys, the repercussions of a drastic price discrepancy between genders could be negative.
The current retail prices of Ivivvas zip-up jackets and hooded sweatshirts are approximately $78
pre-tax. To stay aligned with company standards and customer expectations, the young boys
hoodies and jackets will also be priced at $78. Uniformity of prices between genders also assures
customers of the same quality and satisfaction guarantee that they receive from the current girls
line.
Place:
In terms of distribution of the Perfect Your Practice jacket for the young-boys line, much
of the same channels, coverage, transportation and locations will remain the same as the current
distribution plan of the young-girls line. The boys jackets will be produced at the same factories
and will be stored in the same warehouses. Transportation from warehouse to storefront will also
remain the same. By utilizing the same production and distribution methods as already
developed, Ivivva can save a significant amount of money. While the cost of gas to transport

each shipment may be slightly higher with a larger load of merchandise, an entirely new
distribution plan does not have to be developed. Currently, Ivivva is classified as having
exclusive coverage. With 62 stores across Canada and the US, customers still have somewhat
limited access to the brick-and-mortar shopping experience within an Ivivva store. That being
said, Ivivva has a comprehensive and easy-to-use website that allows for online shopping. Once
introduced, the boys Perfect Your Practice jackets will be available for purchase online as
well.
Promotion:
One of the greatest challenges Ivivva will have with introducing the boys line to the market
will be creating awareness of the product line and enticing the boys market to the products. A
tactical plan of promotion will help to boost awareness, spread the word and attract male
customers to the store. A particular form of advertising that has proven effective for Ivivvas
existing markets is online video advertising. Ivivva has created its own YouTube channel, which
it posts video updates about products featuring real-life users. The first plan of action will be to
develop a video montage of young males wearing the jacket in a variety of different settings.
From the basketball court to the soccer field to the indoor climbing gym, other boys will be able
to see the style and functionality of the jackets on their peers. In addition to its YouTube channel,
Ivivva utilizes social media as a way to target a young audience. One of its primary social media
channels is Facebook. Due to the gender sensitivity at young ages, Ivivva will create a Facebook
page solely for boys. This page will feature product updates and personal testimonies just as the
current company page does. (See appendices for current Facebook page) By posting and
connecting with other users, Ivivva will create a network of young boys, through which word-ofmouth should be impactful. Similar to the Facebook page, Ivivva utilizes another social media
channel, Twitter, to reach its target audience. A subsequent Twitter page will be created for the
boys line as well. After the word has spread a bit via social mediums and word-of-mouth, Ivivva
will then utilize direct marketing and sales promotions tactics to create hype for the release of the
boys line. Approximately one month after the initial product launch, the Ivivva team will travel
to several hub cities, such as New York, Denver, San Francisco and Chicago to sponsor sporting
events and set up a booth with giveaways. This three-week trip will be an opportunity for young
boys or their parents to purchase the product as well at a discounted price.
Evaluation Plan:
With every marketing plan it is essential to develop a plan for evaluating the success of the
plan and its implementation. The purpose of the evaluation plan is to find new opportunities,
avoid threats, resolve problems that have developed and keep marketing aligned with goals. To
do this for the introduction of the boys Perfect Your Practice jacket, a goals-based evaluation
plan will be created. The primary measures of this plan will be sales dollars, marketing spend
and ROI. The first evaluation will take immediately following the three-week hub city trip. The
primary measure for this evaluation will be sales dollars. The intent is that there is a spike in
sales of all Ivivva products, but primarily the Perfect Your Practice jackets. The company will
then complete an ROI analysis in which the sales dollars will be compared to the amount spent
on marketing. Given the results of this first evaluation, Ivivva can make subsequent alterations
and new plans for the following two months. For example, if ROI is extremely low, meaning the
marketing dollars are not being spent in effective ways, the marketing team will need to then
evaluate the effectiveness of each marketing tactic (social media, YouTube, direct marketing

etc). The second evaluation will take place six months after the first one. The goals for this
period include a 30% increase in sales and an ROI of at least 75%. In terms of distribution, we
plan to carry the boys jackets in 15 of our existing Ivivva locations by December 2015. The
following year, by December 2016, we plan on selling the jackets from all of our existing Ivivva
locations. Once again, if these goals have not been met, the evaluation includes a strict look at
the effectiveness of the marketing and product distribution. Ivivva will create a flexible
marketing plan to allow for these necessary changes.
Marketing Program #2:
Strategy:
The second strategy that Ivivva has chosen to pursue is bringing a new product, bathing
suits, to an existing market, Other Fitness Studios. This is a product development strategy, as a
new product will be created for one of Ivivvas current markets. Ivivva currently has a broad
product line thats contains many successful items, so in order to stay on the edge of innovation, it
is important for Ivivva to come out with new designs and styles that will give provide a
competitive edge. With fitness studio classes being a billion dollar market, it is a great channel
for Ivivva to place their new swimwear line that will create buzz and excitement around the
product. One of the keys of a product development strategy is taking advantage of new
technology, and by using Lululemons patented fabrics and materials, Ivivva can do just that.
Using technologies that are not used by competitors will help set Ivivva apart. In addition,
Ivivvas competitors, including Nike and Under Armour, do not currently offer childrens bathing
suits, further setting Ivivva ahead of the curve.
Product:
This product will be a completely new addition to Ivivvas product line, as they do not
currently manufacture swimsuits. Their parent company, Lululemon, does create swimsuits, so
we will use the same materials and technology to create Ivivvas iteration of the product. These
bathing suits are made to stay on, stay put, and support young girls when they are participating in
activities without worry of ties coming undone or the bathing suit being too loose. The style is
similar to a sports bra, making the cut and style appropriate for Ivivvas age category, and the
bottom of the suit will be similar to wearing volleyball spandex. One-piece suits will also be
offered in order to ensure that all young girls find a style they feel comfortable wearing. The fit
of this suit will be tight to the skin, provide a lot of coverage, and come in a variety of fun
patterns and designs in order to appeal to the younger audience. The suits will also be reversible,
just as Lululemons suits are, providing a different pattern in the same color scheme. Several
prints and styles will be manufactured allowing the consumer much choice in their purchasing
decision.
Place:
These products will be produced in the same factories that Lululemon produces their
bathing suit line and other clothing items. The same materials that are used to produce
Lululemons current suits will be used to produce these swimsuits as well, but a variety of
different patterns and colors will differentiate the adult bathing suits from the childrens bathing
suits. Sustainable practices will be a large focus for Ivivva throughout the manufacturing process.
The material used will be focused around reducing the carbon footprint that Ivivva leaves

behind, following the practices of Lululemon. Ivivva will work closely with their factory through
every step of the process to ensure efficiency and transparency. Most products will be delivered
to the fitness studio store locations via truck, as this is the most sustainable practice for
transportation. They will practice Lululemons Shipped with Love concept to ensure that they
are shipping their products in the most socially responsible way.
Ivivvas new swimsuit line will ultimately be carried in fitness studios known as Other
Fitness Venues. These locations include water fitness centers where activities such as water
aerobics and aqua zumba are offered. This will include not only gym and fitness centers, but also
country club pools and recreation centers. We plan to start with these types of locations, analyze
the success, and then continue our plan from there. It is important to test the market first before
Ivivva allocates too much money to implement this venture.
Promotion:
We plan to launch this product line in Fall of 2015 in order to provide enough time for
design and manufacturing to take place. The main source of promotion for this product will be at
trade shows where fitness centers buy items for their in-house stores. These generally take place
in September, so that buyers can receive their orders by January. During the trade show, Ivivva
representatives will be present at a booth in order to sell these fitness studios on the products. As
seen in Appendix D, there will be a colorful and informational board set up on the tables in order
to attract studio product managers, as well as give them information on the product and the
potential benefits of selling it at their locations.
Ivivvas social media sites will also be a great way to spread the word about the new
product. They are very active on several sites, including Facebook, Instagram, YouTube, and
Twitter. They provide a great platform for Ivivva to get the word out to their followers, which are
most likely fitness studios and people who work at fitness studios. This is an inexpensive and
effective way to communicate with buyers that will allow Ivivva to explain the product,
announce the launch, and show creative pictures of the swimsuits in use. Upbeat videos of young
girls using the suits will also be an innovative way for potential buyers to see the product. As
with our sweatshirt promotion, Ivivva will travel to large swimming sporting events, such as
national championships, and set up a booth with a similar tri-fold presentation board to introduce
swimmers to Ivivvas brand new product. Oftentimes, large swimsuits brands set up shop at these
events to help increase sales, and Ivivva will be alongside these companies in promoting their
brand. Having samples, discount offers, and buying forms at the event will help Ivivva receive
bulk orders from aqua-fitness locations. Ivivva will eventually carry swimsuits in their store for
all shoppers, so it will be important to introduce swimmers to a high-quality swimsuit before it
hits stores to build excitement.
To motivate these fitness studios to buy Ivivvas swim line and carry it in their in-studio
stores, Ivivva is going to agree to advertise each business in their own stores. Flyers that
encourage Ivivva shoppers to visit the studios where the swimsuits are carried will give the
studios more exposure. This creates an advantage for both Ivivva and the fitness studios, as it
will bring more patrons into the aqua-fitness locations, but also increased business to the
swimwear line.

Price:
Lululemon currently produces swimsuits for women that run around $45.00 per piece.
This pricing strategy is a solid indicator for the prices that Ivivva will implement for their new
line. Since supplier and manufacturing costs will be relatively similar, the only difference in
price will be that the swimsuits for young girls will require less fabric. As a result, these
swimsuits will be sold for $75.00 for the full suit. If consumers want to purchase the items
separately, the tops will run for around $40.00, and the bottoms for around $35.00.
Evaluation Plan:
For any marketing program to be successful, it is important to monitor and evaluate the
success of the efforts. Most of the evaluation will be on the basis of financial measures, as these
are accurate ways that provide credible, concrete evidence. We are going to use a goals-based
evaluation plan, and the measures of this plan will be sales dollars, marketing spend, and ROI.
Sales will be the largest indicator of the success. As these suits will only be carried out in a
number of test stores to begin with, it will be easy to gauge and measure total sales from these
stores. It is important to see if consumers are responding well to the new line. We plan to have
this line carried in 30 locations with at least 5 in each region of the United States, by January of
2016. We hope to sell a minimum of 2,000 full swimsuits, surpassing our breakeven units by 814
swimsuits. In terms of sales, this will equal $150,000. Our goal is to reach this sales point within
the first quarter of 2016. By the end of 2017, we plan to take this line international and enter
about 30 Canadian locations. After the initial implementation we will evaluate the success of
Ivivvas new line, based on the measurements listed above, and will move forward based on
these findings. If negative results are found, we will evaluate and reconsider the implementation
plan.
V. Conclusion:
With the athleisure trend on the rise, it is clear that the demand for Ivivvas product
offerings is there. Through careful examination of the buying behavior of Ivivvas customers at
the individual, household, and organization levels, we found areas of strength, as well as areas
for opportunity. We have developed two marketing programs in order to help Ivivva expand their
products and markets. With the careful and proper implementation of these two plans, Ivivva,
will hopefully capture a whole new market segment and create a successful new product line that
will increase their product sales. With Ivivvas current business model and production of
products with unique styles, superior functionality, and strong brand reputation thanks to their
parent company, Lululemon, they have proven that they have what it takes to dominate the girls
athletic wear market. We are confident that Ivivva has the ability to successfully implement these
two marketing plans, and potentially a third if all goes well. Both the market and product
development strategies that have been chosen will provide Ivivva with more opportunities to
grow in size, become more profitable, and hopefully become a brand name that is as universally
known as Lululemon. Ivivva is a young company and has a lot of potential for doing great things
in the athletic apparel market.

VI. Appendices:
Appendix A) Demand Regression Analysis

Sales=HGADI*186633.976992241768

Appendix B) Current Ivivva Facebook Page

Appendix C) New Ivivva Boys Facebook Page

Ivivva

Clothing

Inspired by active boys; gear made to move

Sweat-wicking Luon fabric make this Perfect Your Practice J acket a

perfect choice for warm ups. With front zipper pockets and cuffins,
this jacket is versatile for your sport and you can where it anytime,
anywhere.
Pick your color!

Appendix D) Tri-fold Presentation Board for Trade Shows

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