Marketing in a Digital World MCO104-BCN18022

Marketing Plan Task Brief – Alo Yoga

Valerie van der Linden & Shayantani Twisha

Professor Elisa Paz

December 10, 2023

Table of Contents
Introduction.........................................................................................................................3
Macro Environment Assessment.....................................................................................4
Environmental..............................................................................................................................4
Social.............................................................................................................................................4
Technological...............................................................................................................................4
Legal...............................................................................................................................................5
Economical...................................................................................................................................5
Competitors Analysis.........................................................................................................6
Lulu Lemon...................................................................................................................................6
Gymshark......................................................................................................................................6
Athleta............................................................................................................................................6
Positioning...........................................................................................................................8
Positioning Map............................................................................................................................9
Segmentation.....................................................................................................................10
Digital Behavior..........................................................................................................................10
Buyer Persona...................................................................................................................11
SMART Goals.....................................................................................................................12
Goal #1.........................................................................................................................................12
Goal #2.........................................................................................................................................12
Marketing Strategy............................................................................................................12
Price.............................................................................................................................................12
Product........................................................................................................................................12
Place.............................................................................................................................................12
Promotion....................................................................................................................................12
Conclusion.........................................................................................................................14
Appendix............................................................................................................................15
Customer reviews......................................................................................................................15
Reference list.....................................................................................................................16
Introduction
Alo Yoga is an established brand within the yoga and athleisure industry. They produce
clothing and accessories for both men and women that is suitable for the yoga studio,
gym, and everyday life. Their name, “Alo” stands for “Air, Land, and Ocean” (Alo Yoga,
n.d.). The company prides itself on being 100% sweatshop free, eco-aware, and
certified ethical. Alo Yoga, often referred to as “Alo”, was founded in 2007 in Los
Angeles, CA by Danny Harris and Marco DeGeorge. Since the beginning, the mission of
the company has been about “spreading mindful movement, inspiring wellness and
creating community” (Alo Yoga, 2023). At first, their main target market was the yoga
community and consumers that wanted to join this community. Since the athleisure
market started gaining popularity in the 2010s, the company has catapulted themselves
beyond the yoga community and into this extremely profitable market of athleisure
clothing. The company heavily uses celebrities and influencers to promote the brand
and clothing on social media platforms. In recent years, they also opened a fitness
studio in Los Angeles where these public figures often post fitness content on their
social media profiles. Although the company is doing well against its competitors, there
are a few areas of improvement that stand out in their marketing mix that could help
grow their revenue and increase their website traffic.
Macro Environment Assessment
To assess the macro environment for the athletic apparel industry we will use the
PESTLE framework, analyzing the United States.
Political
The first element of PESTLE addresses the political environment. This aims to
understand the effect that fiscal policies, taxation, conflicts, and trade tariffs have on
their business operations (Gerts, 2021). In terms of conflicts, the US is notorious for
their politics and the social impact that takes place as a result of political turbulence.
Recently, political shifts have caused rioting in major US cities. These riots occasionally
take place at shopping malls causing consumers to feel apprehensive about going into
physical stores out of fear. The industry also feels the effect of corporate income tax in
the US, which as of 2022 is at 21% (Watson, 2022).
Environmental
In the U.S. there are a multitude of environmental offsets related to weather and
climate. These offsets could include cyclones and floods on the East coast, tornados in
the Mid-west, and fires or earthquakes on the West coast. These may have an impact
on the industry, as there are many physical stores that need to be closed for a certain
period if natural disasters or environmental offsets occur. Another piece to consider
when looking at environmental impacts are the, “increasing pressures of global
warming, negative environmental impact, and sustainability concerns” (Perera, 2017,
p.4).
Social
The major social factors to be considered are religion and ethics, consumer buying
patterns, demographics, health, opinions and attitudes, media, brand preferences,
education (Gerts, 2021). We have already seen the effect of Covid-19 in businesses
from 2019 to 2022. In the case of religion, ethics, buying patterns, opinions and media,
it is of paramount importance to watch out for the spread of negative word of mouth and
avoid any controversy for the business to sustain. Additionally, there has been an
increasing level of interest from consumers towards athleisure over the last 10 years.
The industry is now considered a “dominant fashion trend of the 21st century” (Lipson,
Stewart and Griffiths, 2020). This element has an impact on consumer buying patterns.
Technological
Technological factors include automation, patents, licensing, communication,
information technology may affect the market, consumer choices and buying powers
(Gerts, 2021). With the US being an extremely developed country, connectivity is not a
concern that the industry strongly considers. Additionally, technology has “become a
vital part of the function of marketing” (Perera, 2017, p.4). Print marketing strategies
have become digital, and the increasing use of influencers and social media platforms
have shifted the traditional marketing approach, especially within the athletic apparel
industry.
Legal
The fifth element in the analysis looks at the legal environment. This includes
employment laws, consumer protection, industry specific regulations, regulatory bodies,
and environmental regulations (Gerts, 2021). In the US, businesses must pay close
attention to labor laws. The U.S. Department of Labor (DOL), “administers and enforces
more than 180 federal laws” (U.S. Department of Labor, 2023). Organizations must also
be mindful of data protection laws, which are becoming increasingly important to
consumers. Additionally, with products being similar between companies in this
industry, it’s crucial to pay attention to patent laws.
Economical
The economy plays a big role in business operations and consumer behavior. Some
factors that a considered in the economic analysis are inflation rates, disposable
income, unemployment rates, interest rates, and economic growth patterns (Gerts,
2021). Although the US generally has a stable economy, the past few years have been
a roller coaster with inflation rates and the recession. Being that a majority of companies
in this sector sell their products at a premium price point, they may experience a
decrease in sales when inflation is high due to consumers being more careful with their
spending.
Competitors Analysis
Alo Yoga Lulu Lemon Gymshark Athleta
Revenue >$1 billion $7.46 billion >$600 million $1.48 billion
(2022)
# of Employees 1,376 34,000 >850 2,500
Price level $$$ $$$ $$ $$$
Traffic 3.7 M (last 22.2 M (last 8.6 M (last 5 M (last
(Website & month) month) month) month)
App)
Instagram 3.3 million 4.7 million 6.5 million 860k
Follower
Website 13,386 (out of 1,851 4977 --
ranking 200 million
websites)
Average visit 2 minutes 27 4 minutes 11 4 minutes 7 3 minutes 3
duration seconds seconds seconds seconds
Bounce rate 47.66% 40.72% 40.47% 52.22

Alo Yoga’s main three competitors are Lulu Lemon, Gymshark and Athleta (Ashok
Atram, 2023) as they sell similar products and operate in the same micro and macro
environments. Analyzing the above chart, in terms of revenue (Ashok Atram, 2023),
Lulu Lemon is the market leader. Lulu Lemon also has the largest manpower, around
30,000 employees (Forbes, 2023), most amount of traffic on website and app, highest
website ranking among the competitors, and maximum average visit duration, 4.11
minutes (Similarweb, 2023). Gymshark has the most number of followers on Instagram,
6.5 million and they also have the minimum percentage of bounce rate, 40.47
(Similarweb, 2023).
Lulu Lemon: Founded in Vancouver, Canada in 1998, Lululemon is a technical athletic
apparel company for yoga, running, training and most other sweaty pursuits (Lululemon,
2022). Their strengths are- revenue leader, large workforce, good web traffic and
ranking.
Gymshark: Gymshark began their operation in 2012, from a garage in Birmingham, UK.
Today they create the tools that help everyone become their personal best in terms of
clothing (Gymshark, 2022). Their strengths are social media presence; especially
Instagram, low bounce rate on their website. They also have the least number of
employees compared to the other competitors.
Athleta: Founded in 1998, Athleta was the first of its kind- a performance brand offering
apparel that looked as good as it performed (Gap Inc., n.d.). Among the competitors,
Athleta has more revenue, more manpower and more website traffic compared to Alo
Yoga.
From this analysis, Alo Yoga should work on improving their online presence (Website
traffic, avg. visit duration, bounce rate, instagram follower) including the website and
social media to increase brand visibility and revenue.
Positioning
Alo historically has focused on delivering products that cater to the yoga community.
However, with the boom of the athleisure market, their products and other brands in the
athletic wear industry now cater to the masses. In the US consumers wear this type of
apparel to go to the grocery store, pick up their kids from school, go to the gym, on a
run or walk, and even to work depending on the dress code. Keeping this in mind, it is
interesting to look at a positioning map with the following variables: fashion-forward
versus minimalist and affordable versus luxury.

Defining the variables

Fashion-forward
- Defined to describe a brand that caters to consumers that are mindful of fashion
trends and their overall style
Minimalist
- Defined as a brand that has simple styles that cater more to the masses with
fewer prints and more solid basic colors
Luxury
- Defined as a brand that charges a premium for their products.
Affordable
- Defined as a brand that is more accessible in terms of price. They do not charge
a premium for their products as compared to other brands in the same industry

The positioning map below is based on customer reviews and understood perception of
the brands. We see on the map that most of the brands are close to the middle of the y
axis since the general athleisure style is considered trendy and fashion-forward. Alo
yoga is considered the most fashion-forward for their, “trendy designs and bold prints”,
while Lululemon is known for their more, “traditional, minimalistic styles” (Clarke, 2023).
Athleta, Vuori, Fabletics, and Gymshark come in close behind the two industry leaders,
however they don’t have the fashion recognition that is comparable.

Both Alo yoga and Lulu Lemon are considered to be luxury brands within the athletic
apparel market with legging prices ranging anywhere from $90-$130 (Clarke, 2023).
Gymshark is considered more affordable with their leggings priced anywhere from $38-
$70 (Gymshark.com, 2023). Athleta is more on the luxury side with their leggings priced
anywhere from $49-$129 (athleta.gap.com, n.d.). Fabletics is more affordable with a
price range of $44.89-$94.95 (www.fabletics.com, n.d.). Vuori has a price range of $89-
$108 (Vuori Clothing, n.d.).
Positioning Map
Segmentation

Digital Behavior

Platforms: News portals, e-commerce sites (food delivery, ride sharing, marketplace),
social media platforms (Instagram, Facebook, X, Pinterest, TikTok, YouTube),
entertainment (Spotify, Netflix, Amazon Prime)
Why: They are tech-savvy, comfort-seekers, pressed for time, woke, conscious about
the technological advancements.
When: They use the digital platforms in the morning (8:00 AM-10:00 AM) before going
to work, before going to sleep (9:00 PM- 12:00 AM), and quickly during lunch break
(1:30 PM- 3:00 PM)
Time Spent on Social Media: It varies from person to person but usually between one
to three hours every day.
Buyer Persona
SMART Goals

Goal #1

Increase website traffic by 10% by optimizing the website through creating dynamic and
personalized content until June 2024.

Goal #2

Increase sales by 5% by introducing customer discounts until the end of 2024.

Marketing Strategy

Price: Aloe Yoga is a premium brand and their prices reflect this. It is part of their
strategy, and it is associated with a focus on premium design and brand image.
Product: Alo Yoga is known for their products with unique style, comfort, fashion-
forwardness, design, and fitting. However, in recent times, some customers have shown
dissatisfaction about the decline in their product quality (Appendix- A:1, A:2, A:3). Our
recommendation for Alo Yoga is to be mindful of the quality because it is a premium
brand and they are charging customers a premium price.
Place: Alo Yoga has both physical and online stores. Within the United States, they
have 43 physical stores across 20 states. They also sell their products through their
website and app. However, from the competitor analysis we can see there is a scope for
improvement with their online presence. Creating dynamic and personalized web
content may have a significant impact on their website traffic.
Promotion: Alo Yoga’s promotional strength is in influencer marketing. They are heavily
reliant on top tier influencers and celebrities to promote the products on their platforms.
Alo also produces image and video content to promote their products and causes
through google ads and social media ads. They frequently partner up with different
organizations including mental health and wellbeing organizations for joint promotional
activities. Alo’s presence can be seen on billboards and different fashion events. Our
recommendation for Alo Yoga in this case, based on SMART Goal #1 is to optimize
their website to increase online sales through personalized and dynamic web content,
improve SEO (search engine optimization), invest on SEM (search engine marketing),
introduce referrals and loyalty programs on their website for customers, put more focus
on CRM (customer relationship management) by sending regular and frequent
newsletters (NL), push notifications (PN), web push notifications (WPN) and SMS. Also,
for SMART Goal #2, our recommendation is to introduce different types of customer
discounts- new customer discount code, returning customer discount code, and
exclusive half-yearly web-sales. These types of different customer discounts will help
increase their sales by 5% by end of 2024 and acquire new customers.
Conclusion
To conclude, Alo has done a tremendous job with growing their brand awareness using
public figures. Aside from a few bad reviews, customers seem to have a positive
perception of the brand and their products. They are positioned well against their
competitors in the market, but it will be important for them to remain with the trends to
continue attracting the upcoming generations and gain new customers. Even though the
athleisure market is becoming somewhat saturated, there’s still opportunity for growth in
terms of market share. Given the SMART goals listed, they will be able to increase their
revenue YoY, which will allow them to invest more in quality materials and stay ahead of
their competitors.
Appendix
Customer reviews
1.

2.

3.
Reference list
Alo Yoga. (n.d.). Name Game: Alo Stands For Air, Land, Ocean. [online] Available at:
https://www.aloyoga.com/blogs/alo-blog/fun-fact-alo-stands-for-air-land-ocean.

Ashok Atram, A. (2023). From Athletic Wear to Athleisure Wear: How Companies Have
Used a Narrow Function Advantage to Become a Major Brand, A Master’s Thesis Case
Study on Three Companies: Nike, Lululemon, and Under Armour. Master Thesis. p.163.

Athleta. (n.d.). Workout Leggings & Tights | Athleta. [online] Available at:
https://athleta.gap.com/browse/category.do?cid=1059481&nav=meganav%3ABottoms
%3ACATEGORIES%3ATights
%20%26%20Leggings#sortByField=price&sortByDir=desc&facetOrder=sortByField:pric
e [Accessed 3 Dec. 2023].

Clarke, G. (2023). Alo vs lululemon: The Ultimate Showdown in Activewear - The Yoga
Nomads. [online] The Yoga Nomads. Available at:
https://www.theyoganomads.com/alo-vs-lululemon/.

Fabletics. (n.d.). Leggings For Women | Fabletics. [online] Available at:

https://www.fabletics.com/womens/bottoms/leggings.

Forbes. (2023). Lululemon Athletica | LULU Stock Price, Company Overview & News.
[online] Available at: https://www.forbes.com/companies/lululemon-athletica/?
sh=586f1f1b238c [Accessed 28 Nov. 2023].

Gap Inc. (n.d.). Athleta. [online] Available at:

https://www.gapinc.com/en-us/about/athleta.

Gerts, E. (2021). Marketing: PESTLE analysis. [online] The University of Sydney.

Available at: https://libguides.library.usyd.edu.au/c.php?g=508107&p=5994242.

Gymshark (2022). About us. [online] Gymshark EUR. Available at:

https://eu.gymshark.com/pages/about-us.

Gymshark. (2023). Women’s Gym Leggings & Workout Leggings - Gymshark. [online]
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[Accessed 3 Dec. 2023].
Lipson, S.M., Stewart, S. and Griffiths, S. (2020). Athleisure: A qualitative investigation
of a multi-billion-dollar clothing trend. Body Image, [online] 32(32), pp.5–13.
doi:https://doi.org/10.1016/j.bodyim.2019.10.009.

Lululemon (2022). About Us | lululemon athletica. [online] Lululemon.com. Available at:

https://info.lululemon.com/about.

Perera, R. (2017). The PESTLE Analysis. 2nd ed. Sri Lanka: Nerdynaut, p.4.

Similarweb. (2023). Ranking Comparison . [online] Available at:

https://www.similarweb.com/website/lululemon.com/vs/aloyoga.com/#overview
[Accessed 28 Nov. 2023].

Tax Policy Center. (2020). How does the corporate income tax work? [online] Available
at: https://www.taxpolicycenter.org/briefing-book/how-does-corporate-income-tax-
work#:~:text=Recent%20Changes%20to%20the%20Corporate [Accessed 14 Nov.
2023].

U.S. Department of Labor (2023). Summary of the Major Laws of the Department of
Labor. [online] Dol.gov. Available at: https://www.dol.gov/general/aboutdol/majorlaws.

Vuori Clothing. (n.d.). Women’s Leggings | Soft Performance Leggings | Vuori. [online]
Available at: https://vuoriclothing.com/collections/womens-leggings? [Accessed 3 Dec.
2023].

Watson, G. (2022). Combined State and Federal Corporate Income Tax Rates in 2022.
[online] Tax Foundation. Available at: https://taxfoundation.org/data/all/state/combined-
federal-state-corporate-tax-rates-2022/#:~:text=Corporations%20in%20the%20United
%20States.