Introduction
Entering the Finnish market is an opportunity for Lululemon to gain new international customers, expand its sales area, improve brand awareness, and expand its business operations in Nordic countries. The Lululemon mission is to expand globally by offering high-quality sports products; the current goal is to enter the Finnish market. Thus, marketing objectives are:
- Open physical stores in Helsinki, Espoo, and Tampere.
Helsinki Espoo and Tampere are the biggest cities in Finland by a number of inhabitants (Statista). Thus, they offer a significant potential customer base for Lululemon’s targeting and expansion.
- Adapt and tailor existing advertising materials to the Finnish culture.
The information needs to be translated into the Finnish language that the customers can understand. The slogans should be redesigned to consider the Finnish culture and preferences of potential customers.
- Integrate digital and physical channels to enhance sales.
It is essential to develop a Finnish website, more specifically, translate an existing one into Finnish. A site is a successful tool for attracting new customers, and since Finland is a high-tech country, the company should not only focus on financial stores but also on online commerce. The company page in Finnish will help the target audience to get to know the products and offers better.
- Increase Lululemon’s sales through overcoming brand awareness obstacles in Finland.
- Start promoting the brand through advertisement on social media and cooperate with Finnish bloggers and fashion ambassadors to increase target groups.
SWOT Analysis
Strengths
Finland is a country known for its world-class healthcare and well-being industry. One of core Lululemon’s strengths is the passion for well-being and sports. According to Business Finland, Finland provides “a unique combination of high-quality health data and an open society of trust.” Besides, the Finnish nation is sports-oriented because Finnish people care about sports, well-being, and health (Salmenkangas). Lululemon’s impact on Inclusion, Diversity, Equity, and Action (IDEA) is a competitive advantage that will distinguish the company in the market (Lululemon). According to Korpelainen, yoga is a popular trend that is growing worldwide (46). Nowadays, yoga is one of the fastest-growing exercise trends in Finland (Teetor). Thus, the company’s focus on yoga, among other sports, will help to conquer the market.
Weaknesses
Lululemon’s high prices and brand awareness obstacles are the main weaknesses. As international expansion is a priority, the company should educate international customers about the brand and its values. Lululemon’s COO Stuart Haselden identifies that the company has a “brand awareness obstacle to overcome in our international markets” (Danziger). Therefore, it is crucial to conduct a competitor’s analysis to find the balance between price, quality, and unique offerings. In addition, Lululemon should invest in marketing to promote brand awareness in Finland.
Opportunities
Significantly, the Finnish market offers plenty of opportunities. Finland is among the most innovative and dynamic economies in the world (Business Finland). Finland’s competitive advantages are the generally recognized safety and stability of society, which attracts international companies. The role and impact of foreign businesses and investments in the Finnish economy is significant and growing due to social stability, functionality, and predictability of laws (Thurman 4-6). Thus, Finland provides a favorable business environment. Moreover, entering Finland offers the opportunity to expand further in Nordic countries. In addition, Finland is a technologically advanced country; thus, digitalization, namely the integration of digital and physical channels, will provide opportunities for business growth.
Threats
Significantly, threats include the high-level competition and Finn’s tendency to choose local brands over foreign ones. According to Kesko, the majority of Finns tend to purchase local brands. Especially during the coronavirus epidemic, customers choose Finnish products to enable work for Finnish people (Kesko). Consequently, Lululemon should develop a strong value proposition to demonstrate the brand value to potential Finnish customers.
Works Cited
Business Finland. “Health and Wellbeing.” Business Finland. Web.
Daziger, Pamela N. “Three Challenges Lululemon Needs to Address to Keep Delivering Record Results.” Forbes. 2019. Web.
Kesko. “Survey: Finns’ More Interested in Preferring Finnish Products – K Group’s Sales Data Shows a Change in Attitudes.” Kesko.fi. Web.
Korpelainen, Noora-Helena P. “Sparks of Yoga: Reconsidering the Aesthetic in Modern Postural Yoga.” Journal of Somaesthetics, vol. 5, no. 1, 2019, pp. 46–60.
Lululemon. “We Stand for Humanity, Diversity and Empathy—Without Exception.” Lululemon.com. Web.
Salmenkangas, Roni. “Finland Wears Love for Sports on its Collective Sleeve.” The Daily Mining Gazette. 2021, Web.
Statista. “Largest Cities in Finland in 2020, by Number of Inhabitants.” Statista. 2021. Web.
Teetor, Violetta. “Yoga and Meditation.” Helsinki This Week. 2021, Web.
Thurman, Rosa. 2019. “Finland as a Business Location – a Barometer Report.” Amcham.fi. Web.