Research paper about lululemon Example | Topics and Well Written Essays - 500 words - 6

About lululemon - Research Paper Example According to this journal, Lulu Lemon has been in a position to sell approximately 95% of its products at a full price. This has been based on the strategy that involves offering fewer products in its outlets to ensure that consumer are instilled with a perception of scarcity (online.wsj.com). The core items are usually not placed on sale in most cases, in this case, when a client finds such products on the shelf, he or she feels that the product is scarce and will take it at the prices offered without considering any form of discount (online.wsj.com). In addition, the company has a strict return policy stating that no goods are supposed to be returned after fourteen days of sale; the policy also states the goods cannot be returned after they are washed worn: Such a policy has ensured its clients of the high quality of the products, thus determining the prices. The company does not rely on large quantities of data to determine their clients’ needs, thus the determination of pricing, but rather focuses on taking direct feedbacks from clients, thus making necessary improvements on their products, which also influences prices. According to Christine Day the new Company’s Chief Executive Officer, the application of large quantities of data retrieved from websites, focus groups as well as client-management relationship software to determine quality and track purchases, may provide invalid information, thus a false sense of security (www.businessinsider.com). The use of direct clientele feedback is crucial in redefining products as well as the determination of associated prices. Taking feedbacks from clients has been achieved through training its employees on eavesdropping as well as taking direct complaints from clients (www.businessinsider.com). The application of a product lifecycle is another strategy that has been applied by the company. The company ensures that when a new product, with a new color is introduced, it is