Alo Yoga Brand Sample Essay.
The current market condition of Alo Yoga brand.
- Market analysis – What is its market size, market share, and segments as it relates to your product? What is the current customer mix?
- Key competitors – Who are your biggest competitors? Any identifiable competitive advantages?
- Create a competitor perceptual map – Where does your brand/product lie amongst competitors? Describe the current situation and future target of applying a luxe line to step on the luxury industry.
Requirements: about 2/3 – 1 page with single space
Current Market Research of Alo Yoga Brand.
Alo Yoga is an athletic performance brand founded in 2007 in California to sell apparel for yoga enthusiasts. Throughout the years, Alo Yoga has quickly established itself into selling high-end accessories and athleisure, winning over customers with its reputation for well-made clothing. Their popularity has further grown due to their interest in their client’s fitness and exercise-related growth even beyond their purchases (Similarweb, 2021). This essay will highlight a simple marketing analysis for Alo Yoga, evaluate their key competitors, and create a perceptual map that any competitor should have when getting into the business.
Alo Yoga is majorly a lifestyle brand that attracts people who are not only interested in Yoga but also other activities like cardio, barre, or pilates activities. The company has established their brand around people being healthy and getting involved with physical activities; thus, their target market are those who are into fitness lifestyles or want to be affiliated with fitness as a whole. According to Bloomberg Business Report (2019), the Alo Yoga clothing market size was established to be worth $10 million in 2019 and was estimated to grow to $47.5 billion by 2025. This would make up close to 6.2% of the sportswear leadership market ladder. The company’s greatest success is brought about by their current customer mix: their connection with the Instagram promotion and their brand linked with celebrity fitness. These two have built up a significant percentage of their market sales since majority of their consumers have been influenced by Alo Yoga’s celebrity status branding, quality, and connection.
Despite their significant online presence and market share in the gym accessory and apparel line, Alo Yoga has massive competitors that threaten or compete with their brand dominance in the gym and fashion line. Among their most significant competitors is Gymshark. Gymshark is also a gym apparel and accessory brand that started in 2012 at Solihull, England. The company has created a range of fitness wear over their years of operation and was reported to be valued at $1 billion in 2020. The company has recorded fast growth in output and popularity since 2013, after they began to mainly involve themselves in arena sales, sports campaigns, and promoting their clothes during big games or sports occasions. Like Alo Yoga, Gymshark is also an online-based store, and their most significant selling point is celebrities. They have sponsored many social media influencers on different platforms like Youtube, Instagram, and TikTok to promote their brand, making them quite popular.
Despite the stiff competition from other brands, Alo Yoga has established its stamp in the market through distinctive branding and building relationships with other businesses and social influencers. Alo Yoga had distinguished itself from today’s crowded online marketing by building its brand around “studio-to-street” (Bloomberg Business Report, 2019). They recognize the importance of creating multi-purpose apparel that their customers can wear in the gym, as lounging clothes and when running errands. Moreover, Alo Yoga uses social media as its marketing platform and has established itself as a networking powerhouse where they connect and partner with many influencers, brands, and yogis from all over the world.
Competitive Advantage and Perceptual Map
Alo Yoga is ranked as the 39, 406 business globally performing well in terms of revenue and market popularity and has the potential of rising in rank (Similarweb, 2021). Moreover, it was ranked among the top 100 firms globally in the lifestyle, fashion, and apparel category. Being among the industrial leaders makes Alo Yoga benefit from getting competitive advantage through segregated marketing and economies of scale. During the pandemic, the company was still able to conduct its business through balancing through the cities where their stores were and the covid-rules provided. For instance, the lock-down only allowed people and businesses to operate within the cities, and since Alo Yoga has several branches all over the world, they were still able to deliver their goods to customers in different places. Moreover, they were also able to reduce the prices for their products despite the hard economic times due to the advantage of economies of scale.
Bloomberg Business Report. (2019). Yoga Clothing Market Size Worth $47.8 Billion by 2025 | CAGR: 6.2%: Grand View Research, Inc. bloomberg.com/press-releases/2019-10-10/yoga-clothing-market-size-worth-47-8-billion-by-2025-cagr-6-2-grand-view-research-inc
Similarweb. (2021). Alo Yoga Webite. https://www.similarweb.com/website/aloyoga.com/