Market Analysis on the Yoga Industry

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Page 18 of 50 Financial <strong>Analysis</strong> Using the provided current membership total of approximately 1,000 members: Potential: 1,000 * 5 referrals = 5,000 potential clients Conservative estimate that only 10% respond = 500 potential clients Estimated conversion rate of 25% * 500 potential clients = 125 new members Revenue (assuming $70 per month membership fee) * 125 new members = $8750 per month *Note these are conservative estimates <strong>Market</strong>ing Strategies The Story - Facts Tell, Stories Sell Susan Nichols, an avid yoga practitioner finds herself sliding off of her yoga mat during practice, and decides to solve this problem. Several years and numerous patents later, she reaches the apex of her struggle and develops Yogi Toes. The company does not have a business plan, and relies on word of mouth. Yet somehow she has been hailed in publications such as In Style, People, Nylon, Oprah etc. What's her secret? Yogi Toes has an identifiable story. This story is part of the marketing of the Skidless towel; it is an identifiable theme that not only begins brand recognition, but gives reason as to why you might purchase that product over another. The following is an excellent take on how to make a great story and we will use Yogi Toes to illustrate each point: A great story is true. Not necessarily because it’s factual, but because it’s consistent and authentic. Consumers are too good at sniffing out inconsistencies for a marketer to get away with a story that’s just slapped on. Susan Nichols story is authentic, this can be attested to through her persistence in making her product. You can feel the passion in her Skidless towel and her desire to share that with people who have come to love yoga just like her. Great stories make a promise. They promise fun, safety or a shortcut. The promise needs to be bold and audacious. It’s either exceptional or it’s not worth listening to. Yogi Toes Skidless towel promises to enhance your yoga experience by preventing unwanted slips during practice. Great stories are trusted. Trust is the scarcest resource we’ve got left. No one trusts anyone. People don’t trust the beautiful women ordering vodka at the corner bar (they’re getting paid by the liquor company). People don’t trust the spokespeople on commercials (who exactly is Rula Lenska?). And they certainly don’t trust the companies that make pharmaceuticals (Vioxx, apparently, can kill you). As a result, no marketer succeeds in telling a story unless he has earned the credibility to tell that story. Susan has succeeded in telling her story because she is an authority on yoga, and mats in particular. To get very specific, she must know more about "antislipping" yoga mat technology than anyone else - "I've had that problem so I am going to buy from the person who knows the most."
Page 19 of 50 Great stories are subtle. Surprisingly, the fewer details a marketer spells out, the more powerful the story becomes. Talented marketers understand that allowing people to draw their own conclusions is far more effective than announcing the punch line. Susan is not throwing her authority down the consumer's throat, nor is she claiming her mat to be the greatest and best mat on the market. She doesn't need to. People who are looking for a yoga mat find her because she's an authority, because her story is authentic, and because she's trusted in the marketplace. Great stories don’t always need eight-page color brochures or a face-to-face meeting. Either the consumer is ready to listen or they aren’t. Yogi Toes relies solely on word of mouth. The people who buy her mat are already willing to listen to their best friend who owns the mat, In Style magazine telling them this is a must have, or Oprah telling them this is a great yoga mat. You cannot interrupt people who aren't willing to listen with expensive advertising - this model is broken. Great stories don’t appeal to logic, but they often appeal to our senses. Pheromones aren’t a myth. People decide if they like someone after just a sniff. Yogi Toes feels like a reliable product after only a minute on their site - this isn't a coincidence. Great stories are rarely aimed at everyone. Average people are good at ignoring you. Average people have too many different points of view about life and average people are by and large satisfied. If you need to water down your story to appeal to everyone, it will appeal to no one. The most effective stories match the world view of a tiny audience—and then that tiny audience spreads the story. Yogi Toes does not try and appeal to the masses. Instead they focus on selling to the people who are willing to listen, because they are the people who tell their friends who tell their friends. Great stories don’t contradict themselves. If your restaurant is in the right location but had the wrong menu, you lose. If your art gallery carries the right artists but your staff is made up of rejects from a used car lot, you lose. Consumers are clever and they’ll see through your deceit at once. Again, Yogi Toes has authenticity built into their brand - it is consistent across all forms of communication and consumers are quick to recognize that. If anyone other than Susan Nichols tried to slap her story together to make a buck it would not succeed. How can Breathe Active Wear create a story that sells? *The non-italicized points are cited from http://sethgodin.typepad.com/seths_blog/2006/04/ode_how_to_tell.html A remarkable product (a product worth remarking on) with an identifiable story, fueled by a leader who has an authentic passion is the foundation for a profitable business. Couple that with the product solving a problem common to the target audience and you can almost bank on a success. According to a May article in U.S. News & World Report, about 18 million Americans now practice yoga. The average practitioner's yearly expenditure on all things yoga-instruction, mats, props, clothing, weekend workshops, books, CDs, videos-could be conservatively estimated at a ballpark $1,500. That amount times 18 million equals $27 billion. To put this into perspective, if the yoga business were
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Page 45 and 46: Page 45 of 50 Appendix 2: Descripti
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Page 49 and 50: Core Competency(s) Competitive Adva

Market Analysis on the Yoga Industry

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