Marketing - Analysis of Gymshark

MARKETING

Marketing 1
Contents
External Analysis........................................................................................................ 2
PESTEL................................................................................................................ 2
Porter's five forces.................................................................................................... 3
Competitor Analysis.................................................................................................... 4
Competitor’s map.................................................................................................... 4
Competitor Analysis................................................................................................. 5
Segmentation, targeting, and positioning........................................................................6
Positioning map....................................................................................................... 6
Analysis of the different sorts of customers........................................................................7
Need identification................................................................................................... 8
Information search................................................................................................... 8
Evaluation of alternatives........................................................................................... 9
Purchase decision..................................................................................................... 9
Post-purchase evaluation............................................................................................ 9
Internal analysis........................................................................................................ 10
Application of 7Ps framework...................................................................................10
Application of McKinsey 7-S framework.....................................................................10
Main resources and capabilities................................................................................. 11
Summary of the current situation...................................................................................12
SWOT analysis..................................................................................................... 12
References.............................................................................................................. 15

Marketing 2
Gymshark was established in 2012 by Ben Francis. Currently, Gymshark is led by business
partners. Gymshark is a well-recognized online gym clothing brand in the fitness industry.
The brand offers different gym attires for males and females comprising tank tops, stringers,
pants, t-shirts, hoodies, shorts, and leggings. Gymshark is growing and identified as the rapid
mounting and greatest brand in the gym attire in the UK. The company has been successful in
increasing its quality customer base. The company has reached one of the unbelievable
milestones and sent out one million of orders. Gymshark is promoting its brans by sponsoring
to eighteen top worldwide YouTubers, bloggers and Instagrammers with the mutual social
median following of twenty million. The company concentrates on retaining ambassadors
having large social media followers. The company not only sponsors the athletes but also
common people who can influence others in a positive manner.
External Analysis
PESTEL
Political factors: Gymshark runs in the fitness industry and obey with political strategies to
make sure that the corporate is functioning in a permissible manner. The company operates in
the UK industry and has good relations with US. The UK government is conscious of fair and
stable nation with plenty of opportunities for the brands operating. For instance, in 2015, the
local government designed a campaign identified as ‘change for life’ to upsurge the number
of persons having a lively and vigorous lifestyle completely (Hammer and Plugor, 2016). The
UK government is proactive and dynamically indorsing a healthy living lifestyle which is a
decent prospect for Gymshark to conduct operations in the fitness industry.
Economic factors: The Fixed investment made in the UK economy has been a major driver
of growth. The local government has even robust economic position as compared to other
nations. As per the production side, companies like Gymshark contribute positively to the
GDP growth of the UK. The nation claims of high per capita GDP with a favorable
investment climate.
Social factors: The healthcare system in the UK is identified as one of the most effective
social endeavors. There have been several free public services in UK such as national health
services. It has been made possible through the existence of advanced healthcare
infrastructure and with the contribution of the private sector. The populations in UK relish a
high standard of living which creates opportunities for Gymshark to cover every age of
people (Gereffi and Lee, 2016).

Marketing 3
Technological factors: The people in UK have access to the technology and sufficient
internal competition to inspire growth. UK is having 38 million social media operators which
accounts for almost 60% of the nation’s population. Midst all the social media networks,
Facebook is the maximum cast-off channel. Gymshark can make use of the Facebook
platform in order to grasp target customers in a more efficient manner.
Legal factors: The legal system is more planned, translucent and competent. The legislation
passed in the nation keeps the major concern of the stakeholders in mind. The national
minimum wage has combat discrimination in the nation. The cloth manufacturing industries
in the UK are necessitated to contribute to the manufacturing procedure by undertaking some
considerations like wages to be comparable with the local standards with environmentally
friendly practices (Oka, 2016).
Environmental factors: The UK government has great role in the advancement of European
environmental standards. The environmental factors have attained significance in the last few
years. The consumers in the UK seem to be spending more on ecologically friendly products.
In such a manner, Gymshark is necessitated to evade heavy metals and environmentally
friendly raw material.
Porter's five forces
Porter’s five forces are a significant means for assessing Gymshark’s industry structure in
strategic procedures.
The threat of new entrants: The threat of new entrants is modest to high for the gym specific
apparel retailers. The growth in social media to promote products in the last years has caused
the arrival of gym clothing retailers.
Competitive rivalry: The competition is quite high in the case of Gymshark. The market
leaders like Adidas, Nike and Under Armour are having the popular of market share and it
has become required for the minor companies to pursue niches in the market for exploitation.
Gymshark has established itself as a dense foundation in the market but is required to be
conscious of the rivalry from the rivalries who deliver the same products with scomparable
branding (Larsen, 2017).
The threat of substitution: The threat of substitution is high in the case of Gymshark due to
the creation of new and innovative products from the rivalries. Such products grab the
attention of the customers. In the saturated market, there are several options accessible where