ALO case study

: entering a new market : getting back on track after getting lost

Abstract

The purpose of this thesis is to study the influence of ALO’s positioning and targeting on its business, and how it can compromise the entire activity. ALO is an American brand, launched in 2008 in the USA, with the goal of selling natural beverages produced directly through the well-known Aloe Vera plant, providing the consumer with several health and dietary benefits, together with a great taste. In 2013 ALO was already the number 1 bestselling brand within the Aloe Vera beverage segment, and the number 2 bestselling brand within the functional beverage segment, among the markets of USA and Canada. It was also during this same year of 2013 that António Lopes decided to introduce ALO in Portugal and give the opportunity to the Portuguese population to include this amazing drink in their lives and daily activities. While people’s minds are changing towards a healthier and balanced life associated with healthier products’ consumption, the success and acceptance of ALO can’t be considered “black in white”. To make this thesis possible, a complex and thorough study and research was performed and tools used include a Literature Review where the concepts and theory were studied to better address the following parts of the thesis; a Case Study written including a proposal of analysis to be used during class discussions; and a Market Research involving interviews with the company, Survey and Focus Groups. Being ALO a 100% natural beverage with healthy and dietary benefits, António’s first approach was to focus on the part of the population that practise sports on a regular basis and on places dedicated to natural products, ending up with an unsustainable business. With the objective of giving people the opportunity of gathering the pleasure and taste together with the health and dietary benefits, ALO reached the conclusion that the consumer is the average Portuguese citizen, above 15, looking for a balanced life style, trying to keep a healthy life. ALO drink needs to be seen first as a great drink, with the bonus of being healthy and having great benefits – the consumer is more worried with the image, and benefits are the differentiation.

Date of Award	3 Jul 2014
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Celeste (Supervisor)