A Small Company Emerges into the Market

Yogagurl, a small business owned by Alex Leikermoser, is a competitor Lululemon Athletica Inc. should be worried about. The company has a small studio in the Ritz-Carlton Hotel in Toronto, which sells yoga fashions and accessories and provides classes. Their most popular product is a $55 women’s T-shirt imprinted with the company’s slogan.

Leikermoser focuses on changing her company’s weaknesses into strengths to gain a larger share in the market. She does this by differentiating her product through the use of slogans, and by approaching a new marketing strategy.

Her new marketing strategy includes selling a limited edition T-shirt through an invitation-only basis. The first ten customers will get to buy the product, and share this invitation with five other friends and so on. This will create a unique brand identity that pushes consumers to notice the product. Their company will also benefit through this strategy in two ways. Firstly, manufacturing costs will decrease because there will be no surplus of T-shirts. Secondly, she may be able to increase the price of the T-shirts as there is great demand and short supply for the product.

Leikermosers business model is similar to Dell’s strategy of Virtual Integration. The company won’t have surplus as they produce exactly the amount demanded, manufacturer costs are cut down as the company doesn’t require offshore manufacturing, and they will have a close relationship with customers through yoga classes. With a completely fresh strategy to business, Yogagurl may be able to steal the spotlight for yoga fashions.

Brijbassi, Adrian. “Her Dream: take Lululemon to the mat”. “The Globe and Mail” Phillip Crawley.  25 Sept 2013. Web. 25 Sept 2013.

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