Assignment Title: The Marketing Plan-Gymshark

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Table of Contents
Executive Summary...................................................................................................................................3
1. Introduction...........................................................................................................................................4
2. Environmental and Competitors Analysis...........................................................................................5
2.1. PESTLE Analysis...........................................................................................................................5
2.2. Porter’s Five Forces Analysis........................................................................................................7
2.3. Porter’s Value Chain Model..........................................................................................................8
3. SWOT Analysis......................................................................................................................................9
4. Major Objectives of Gymshark..........................................................................................................10
5. STP Analysis for Gymshark...............................................................................................................11
5.1. Segmentation of Market...............................................................................................................11
5.2. Targeting Customers....................................................................................................................11
5.3. Positioning.....................................................................................................................................11
6. Developing a Comprehensive Marketing Mix...................................................................................13
7. Conclusion............................................................................................................................................14
References................................................................................................................................................15

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Executive Summary
This report is all about constructing an effective marketing plan for Gymshark showing how it
will survive and sustain in the coming future. The plan is based upon the context of the UK. In
this report, it will be thoroughly discussed how to create a marketing plan related to the given
case. The report will be done by analysing five major sections. It will start discussing
environmental, competitive and internal factors analysis for Gymshark and pointing out the
current and upcoming situations. Then it will go through SWOT analysis and developing major
objectives regarding that. After that STP analysis will be conducted for further planning for
Gymshark. The last section of this report will discuss developing a marketing mix for Gymshark.
Such planning will boost Gymshark’s current situation through proper implementation and
planning.

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1. Introduction
Marketing planning for an organisation means to determine what strategies a firm should follow
in order to achieve its marketing goals and objectives (Cohen, 2015). It consists of a company’s
core values, its competitive advantages against other firms and future plans regarding its position
and market share in upcoming days. In this report, it will be discussed how to develop a
comprehensive marketing plan for Gymshark. It is an online sports apparel and accessories
company in the UK and renowned for its world-class elements throughout the globe (Gymshark
EUR, 2019). Young entrepreneur Ben Francis has come out with the idea of Gymshark in 2012
and it operates in around 177 countries. So to keep the business going further, they need to come
with marketing planning that’ll explain its overall activities to survive.

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2. Environmental and Competitors Analysis
Environmental analysis and competitor analysis are two comprehensive marketing research to
construct a marketing planning (Fleisher and Bensoussan, 2013). In this part we will go through
a PESTLE analysis, five forces analysis for environmental and competitor analysis and then
analyse Gymshark’s internal affairs through the value chain model.

2.1. PESTLE Analysis

Political

Economic Environmental

PESTLE
Analysis

Legal Social

Technological

Figure 1: PESTLE ANALYSIS (SOURCE: AUTHOR)

PESTLE analysis is an environmental analysis that discusses macro external elements that affect
an organisation’s decision-making process (Kolios and Read, 2013). Gymshark must consider
the following factors while analysing environment:

 Political Factors: Currently, all the political parties in the UK are in a stable position
(Pattinson, 2019). There has been no conflict arising between them regarding the
political system except Brexit. The UK has voted for Brexit and tend to be staying with
their decision. That will create both opportunities and issues for Gymshark as they will
face barriers in terms of operating businesses in European Colonies. But the political
system under Theresa May has been attracting a different investor to invest in different
organisation by launching different political camps and reducing trade barriers. So
Gymshark might actually attract new investor through its flexible political systems.

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 Economic Factors: In the UK, the annual growth rate and income per capita have been
reduced to 1.4 and USD 2,263 (Sradid, 2019). This certainly has reduced the buying
patterns of consumers in the UK. But the government has reduced corporate rate taxes
that tend to increase the investment in the country and expand the business. So Gymshark
has both favourable and unfavourable conditions regarding economic factors.
 Social Factors: Most of the people in the UK are health conscious. Their increasing
awareness in the health system has created opportunities for Gymshark. Because it is
mainly engaged in delivering certain types of products that are related to health fitness.
Old aged people have now started preferring these types of products. Besides, according
to the given case, ‘Athleisure’ trend has a positive impact on the sports apparel industry.
So it tends to be a favourable factor for Gymshark.
 Technological Factors: In the UK, there have been around 45 million people who are
engaged in social media sectors. This represents almost 67 per cent of the entire
population and it is still increasing (Battisby, 2019). As it has been mentioned earlier that
Gymshark is an online based company, it certainly acquires this factor as a favourable
one.
 Legal Factors: In the UK, legal factors are very much convenient and are flexible in
ways of doing business. Every organisation in the UK that has a huge community of
consumers and other stakeholders are very much concern about maintaining legal issues
(e.g. doing CSR activities, maintaining ethical standards such as fair wages and safe work
environment etc.). Gymshark is doing well by abiding the rules of conduct and
workplace-related issues.
 Environmental Factors: Recently, the UK has been facing different environmental
challenges and issues that are very much alarming (e.g. increasing pollution, global
warming etc.). So growing manufacturers are maintaining their activities that are friendly
towards the environment for gaining long term (Klassen and Whybark, 2016). For this
Gymshark has been using equipment that is both environments friendly and has no
adverse effect on the environment.

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2.2. Porter’s Five Forces Analysis

Threats of
new
entrants

Threats of
Competitive Supplier
burgaining
substitutes
Rivalry power

Customer
bargaining
power

Figure 2 : Porter's five forces model (Source: Author)

Porters five forces model is used to analyse a company’s competitive environment and illustrates
the company’s current position against its competitors (Asad, 2012). Gymshark’s five forces
include:

 Threats of new entries: Gymshark’s potential competitors can increase in the near
future. Because under Theresa May, entry towards UK markets has become easy as trade
barriers have been reduced. Besides increasing usage of social media sites also tends to
increase competition because competitors both inside and outside of the UK can interact
with its customers and analyse their needs.
 Threats of substitutes: Gymshark’s products can be substituted by various other
company’s product that provides health-related facilitation (Stamina Products, W8 gym,
Gofit, OYO fitness etc.). But Gymshark has huge advantages over them in terms of
customer acceptance and brand value.
 Competitive rivalry: Gymshark has been facing increasing competitors in recent years.
These competitors include AIM athleisure, Bosom Buddies sportswear, State of Mind,
Contrada, ASOS, Primark, Superdry, Gossypium etc. These firms have the potentiality
to take over Gymshark in terms of price, availability and growing opportunity. So
Gymshark has a high intensity of competitive rivalry.
 Customer bargaining power: Customers bargaining power increases when they have
lots of alternatives to switch their usage and relevance in terms of price and product
differentiation. At present, there are some competitors of Gymshark and customer might

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 switch from it to others if the switching cost is lower and competitors offer more than
Gymshark.
 Suppliers bargaining power: Gymshark supplier market is largely dependent in China.
Their main supplier is Dongguan Uga Fashion Co. which is situated in China and
Gymshark is largely dependent on it which means they are a concentrated supplier. If
they increase their buying power will tend to result in an increase in high supply power.

2.3. Porter’s Value Chain Model

Value chain analysis is an internal analysis within a firm’s primary and supportive activities that
involves producing final products and delivering it to the consumer (Porter, 2011). Gymshark’s
inbound logistics include different departments that play a strategic role in achieving the main
goals (e.g. HR department, Marketing Department, Finance Department etc.). Gymshark’s main
task is to deliver quality products that keep health fit and delivers convenience (e.g. gift card, zip
hoodie, ace polo, bottoms, t-shirts etc.) throughout 177 countries. According to the case, it has no
wholesalers. It sells directly to the customers. Besides its marketing sales and services are
provided through online and cash payment. Its supportive activities include proper
implementation of its strategic planning, ensuring wages and flexibility to its employees and
maintaining a safe workplace and last of all, emphasizing much more on IT sectors as it is an
online sales company.

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3. SWOT Analysis
A company’s SWOT analysis is the integration of two factors (internal and external) that can
give brief about its strength, weakness, opportunities and threats that can give explanation of
what to do or not, where the firm has new doors to flourish and which can be firm’s obstacles
(Hill and Westbook, 2015). Gymshark’s SWOT analysis is:

 Strength: This includes competitive advantages that Gymshark enjoys over its rivals.
Gymshark strengths include its high demand in the young generation, increasing usage of
social media and internet among old people, having large supplier market in China
causing cost reduction, strong brand value, direct interaction with customers etc.
 Weakness: It includes factors that Gymshark wants to avoid. Gymshark has weakness in
not having a portfolio, a physical storehouse, having no offline promotional activities,
largely dependent on internet sectors, high price range, common business model etc.
 Opportunities: It includes where to gain advantages that might lead to survival and
growth for Gymshark. Some opportunities for Gymshark are developing new products
through R & D, reduction of corporate tax that will increase investment, going for offline
strategies, stable political and economic situation, governments support towards health
awareness, following current trends like ‘Athleisure’, entering new markets etc.
 Threats: It includes factors that Gymshark’s should be aware of. The factors are
reducing buying behaviour, Brexit issue, uncertain inflation, increasing alternatives,
competitors low pricing strategy, increasing supplier power, increasing foreign
competitors, failure to adapt with changing customer needs etc.


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4. Major Objectives of Gymshark
SMART goals consisting of objectives that are specific, measurable, attainable, relevant and time
bounding help to attain a firm's long term growth and capturing market share (Zahorsky, 2018).
Gymshark’s objectives should be based upon SWOT analysis following SMART criteria. The
first objective of Gymshark is to increase its social media followers to 40 million from 30 million
in next six months because as it is an online based organisation, it should engage as much as
people it can and specific customer range and the time limit will work as a benchmark to reach
the goal. Increasing followers will share their experiences with Gymshark to others which will
improve the market share of Gymshark. The second objective should be expanding its market
border to Asia Pacific (specifically India and Japan) regions because it’s growing reputation and
healthy opportunities to enter foreign trade. Besides people in India and Japan have growing
concerns for health and India especially has much access to online and social media platforms.
The final objective of Gymshark is to set physical stores at different critical points in the UK.
There is no argument that online stores are much convenient for saving time and energy (Strauss
and Frost, 2018). But offline stores can also be convenient because customers can come to the
shop and experience the products instantly. The integration of both online and offline strategy
will work both effectively and efficiently for Gymshark and thus improving market share.

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5. STP Analysis for Gymshark
STP analysis adds more value in marketing performance by enhancing efficiency and
effectiveness (Dover, 2016). It consists of three important elements regarding market
segmentation, target marketing and market positioning and Gymshark should follow these
factors to improve its marketing plan.

5.1. Segmentation of Market

Gymshark can divide the entire market in the UK into different segmentations regarding its
customers related to their behaviour, characteristics and needs and demands. They can segment
the entire market into a demographic, geographic, psychographic and behavioural pattern. First
of all, they can select their geographic location for operating business; currently, there doing
business in the UK territory and internationally across 177 countries. Then they segment the
market in terms of demographic characteristics (e.g. age, income, occupation etc.). Then they can
segment the market in terms of Psychographic criteria (e.g. social structure, mode of living etc.)
Last, they segment the market in terms of behavioural characteristics (e.g. status of usage and
loyalty, personality etc.)

5.2. Targeting Customers

After segmenting the market, Gymshark now can target people which will be attractive in terms
of their profitability and recognition. It can either go for single segmentation or multiple
segmentation that generates maximum customer value. According to the given case, Gymshark
has targeted people whose age ranges from 16-25. Besides they can select people who are
conscious regarding their health (probably 35-45 age groups). They provide products for both
men and women. They have assessed the market attractiveness in the market of Brazil, Russia

and Japan where they can start doing business (Sutherland, 2019). It can target people who are
students and engaged in other types of profession. Also, they can target people whose income is
above average (annual income is probably €10,000 to €15,000). Last they can target people who
like to wear a sports outfit and is a regular customer to buy this sort of products.

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5.3. Positioning
After Gymshark has decided what segments they will target to construct marketing planning,
they will now analysis what to do that will create a separate positioning preference in its
customers' mind against other competitors (Cravens and Piercy, 2011). Here, Gymshark has to
be more careful regarding the differentiation process because if they fail to deliver unique
products and services, customers will have no reason to prefer them against other sportswear
apparel brands. So they need to engage with the customer to know what they like and what they
prefer to wear. Then through research and development (R&D), they will bring new products
that will be used not only in exercising purpose but also in other purposes and the products
should consist fashionable outlook adjusting current trends. They might also engage in other
supportive activities that will cause customer value generation and gain long-time sustainability.
For example, in the given case, Gymshark has created a fan base consisting of 30 millions of
users and travelled worldwide not for their selling purpose, but to promote their brand image to
reach its customers. Besides they can differentiate themselves by delivering the best possible
outfits and after sale services even though charging higher prices for it.

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6. Developing a Comprehensive Marketing Mix
After determining overall consideration for market segmentation, targeting and position,
Gymshark might develop a comprehensive marketing mix that consists the combination of
product, price, place and promotion to deliver best services that its market demands from it
(Borden, 2014). For developing a marketing mix, Gymshark should consider the following
variables:

 Product: Gymshark must produce the products that they committed to deliver. So
Gymshark delivers products that are mainly worn during exercise. The products should
consist of comfort, fashionable outlook, ease of cleaning, suitable sizes and sustainability.
Furthermore, they can add value by giving after sale services and return policies if the
customer faces any problems.
 Price: Price is the amount that Gymshark charges to its customer. According to the given
case, the average retail price for the products of Gymshark ranges from €20 to €80 which is
quite affordable. While constructing a pricing strategy, it should consider the income of its
targeted customers. It can provide special prices for students by discount and credit
allowances.
 Place: Place includes the availability of products where Gymshark can deliver its products
to customers. It has been mentioned earlier that they have no wholesalers or physical stores
to distribute the products to its customers. Rather they sell directly by contacting with
different courier services like DHL, UPS, TNT and DPD.
 Promotion: Promotional activities of Gymshark refers to how does it influence the
customers to engage themselves in their community. Gymshark tries to conduct a two
communication process where they can get both suggestions and feedbacks from its
customer base. Majority of their promotion depends largely on social media platforms such
as Facebook, Instagram, Youtube etc. They also engage different sports icons and social
media tycoons to promote their brand.


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7. Conclusion
After a mass discussion, it has come to a conclusion for Gymshark. So far, it has been discussed
developing perfect marketing planning for Gymshark. To do so, it has been analysed what are
the external factors that are affecting and will be affecting the activities of Gymshark, which
factors should it consider as opportunities to grow as well as improve and which factors should it
consider as areas to improve as well as be aware of. Then it has been analysed what is its value
chain model and how it performs its activities. Then based upon Gymshark’s SWOT analysis it
has been explained how to construct three major objectives such as increasing social media
followers, expanding international trade and doing offline activities to reach all the customers.
After that comes developing Gymshark’s overall analysis regarding its market segmentation,
target marketing and positioning that helps to elucidate what it should do to attain a customer-
driven marketing strategy. Finally, it has been shown how to develop and how to construct an
impressive marketing mix to reach the final customer and deliver them more than their
expectation to gain supreme customer value.

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