Download Lululemon Case Study and more Study notes Yoga in PDF only on Docsity! T h e P owe r o f C o m m u n i ty a n d C o l l a b o r a t i o n CASE STUDY | DECEMBER 2019 MOHINI JAGGAN & MELODY MANCINI CMPW 717 - REPORT WRIT ING LULULEMON ATHLETICA Table of Contents A message from Calvin McDonald, CEO...... 3 3 4 The Problem..... Community and Core Values..... 5 Our Response.... 6 7 8 9 Our Strategy.... The Results.... Moving Forward.... 5 C o m m u n i ty a n d C o r e V a l u e s Having spent years developing a community with our guests, we understood that we needed to acknowledge that something was wrong. Lululemon was founded on the core values of creating quality product for our guests, and that has been a value that has never wavered. For the company to move forward from this incident and grow, we knew that we would have to work hard to give our community the quality items they expected and deserved. We welcomed guests concerns and engaged with our community to ensure that we were doing everything could to make things right. Reminding our consumers that providing them with the highest quality and fit is our main priority was essential to overcoming this setback. To announce the recall, we issued a press release on our website, informing our guests to expect a shortage of the Luon bottoms. To maintain our relationship and sustain our integrity with our guests, we offered prompt responses on our social media channels and released an additional FAQ on our website. The FAQ provided details about the recall, the cause of the sheerness, restock, and steps for prevention. To prevent production errors in the future, we released our plan to strengthen the quality of our product, by improving our testing process, monitoring of factory operations and an organizational restructure. 6 O u r R e s p o n s e 7 O u r S t r a t e gy $ 150 ,000 .00GRAND TOTAL Despite our loss in shares, we wanted to put our guests first by honouring our promise to deliver quality products. Once we became aware of the situation in the beginning of March, we immediately conducted an investigation that resulted in the recall on March 18. Our guests were offered full refunds or exchanges for the affected bottoms. After discovering the source of the issue, we improved our testing process to include stricter specifications around the production of Luon. We carried out 15 tests targeting different ingredients from pillage to modulus. The refined leggings received two iterations of adjustments to enhance the design and quality were right for our guests. The final product received a tighter tolerance range and a revised pattern. To prevent further defects, we added two additional sources to produce and supply Luon.
