Lauren Telford recently commented on the “compromising position” Lululemon is in after having to pull a large mass of its black Luon yoga pants from their shelves, as they were too see-through.  With a 7% share decline and their high-quality brand at stake they have clearly ran into a PR disaster!

Lauren presents two options that which Lululemon could consider: throwing 17% of all their women’s pants out, and offloading the product to a discount retailer like Winners.  I support her opinion that the first option may not be the best choice for the company, as they have branded themselves as being sustainable and environmentally friendly.  Throwing millions of dollars into a landfill would without a doubt tarnish their image.  Secondly, selling to discount retailers like Winners would undermine their high-quality lifestyle brand.

So how does the company restore their image? Lululemon has taken the first step by taking full responsibility for the mistake.  They have owned up and committed to making things right allowing customers to return/exchange the product if purchased after January 1^st. In addition, they need to implement a plan of action. In the minds of consumers, Lululemon is associated with a promise of high quality and value especially with their higher prices compared to less expensive competitors.  If consumers or “yogis” are not assured that the right plans are being put in place to ensure this slip-up doesn’t happen again, Lululemon may see its profits going downward (dog) in the future.

Article Sources:

Lululemon Bends of Backwards After Yoga Pants Recall

Say what? Snapchat?

When I heard of the simple app that allows you to take photos and short videos and send them immediately to a friend for a limited time view, I thought it sounded absolutely ridiculous too.  However, I can attest to the simple app being highly amusing, distracting and strangely addictive.

Recently, 16 Handles – a New York frozen yogurt chain – observed many of its young customers using their Snapchat handles on social media channels, and turned this into a marketing opportunity.  They told their customers that if they snapped a picture of themselves or their friends at one of the 16 Handles locations trying one of the fro-yo flavours and sent it to Love16Handles on Snapchat, in return they would receive a coupon for anywhere from 16% to 100% off their purchase.  The catch is that you have only 10 seconds to let the cashier scan the coupon.  This provided 16 Handles with customer commitment to purchase and provided customers with an element of fun and surprise at the point-of-sale.

But, is this something that will change the face of marketing in the near future?  Every app or service that hits critical mass is definitely something marketers should consider taking advantage of.  It is soon to tell whether or not Snapchat will remain popular, however if done correctly with the proper rules set in place, business can benefit from leveraging this platform.

Here are a few of the many suggestions Andrew Solmssen shares on how marketers can creatively use this app:

1. Concerts: Fans can receive a Snapchat featuring their favourite artist backstage at a concert.
2. Discounts: By modeling a strategy similar to 16 Handles, businesses can benefit from a guaranteed purchase before sending a discount code.
3. Building buzz:  Fans can receive exclusive sneak previews for premiering films, books and TV shows.
4. Insider marketing: An apparel line could “leak” images of their new line to a select group of influencers.

Article Sources:

Marketing With Snapchat: It’s Not Just For the Kids

Is Snapchat the Next Frontier for Marketers?