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Old Jan 3, 2015, 11:11 am
  #1424  
superangrypenguin
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Join Date: Jun 2009
Location: YYZ
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Posts: 19,284
Originally Posted by SurveyHand
Ensco... why do you say that AC, "need to make choices"? I don't understand why any business would want to pick and choose one demographic over another.
Marketing 101. One must have a basic understanding of each segment of the market and then go after that particular customer by way of marketing spend, loyalty program etc. You have to be able to paint who your target customer is. A lot of newbie younguns in business school have that same belief - let's go after everyone! The reality is that it's not realistic.

Aka. Lululemon pants are after trendy younger fit women in the yoga market and/or athlei-leisure space and have minor disposable income who are brand loyal and either love premium brands (will pay for it) or are aspiring to buy premium brands.

Result? Size 0 to 12. Mostly smaller women, you see young people wearing them (not a lot of mom's wear them), or men for that matter...notice how logos on these pants are so obvious? (see brand part)

PS I overgeneralized a lot there on Lululemon. I could write (and did write) a business strategy paper on them (marketing masters believe it or not). But hey, this isn't B school, it's FT
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