International Marketing and Sales

This document provides an overview of international marketing and sales strategies, focusing on the expansion of PureGym to the international market of Los Angeles, USA. It includes information on value proposition, key findings, marketing objectives, strategic planning, traditional and digital marketing tactics, and more.

International Marketing
and Sales

EXECUTIVE SUMMARY
International marketing is an opportunity for businesses to expand their operations across
national boundaries to grab new opportunities and serve large amount of general public. In this
project PureGym is expanding its operations in international market of Los Angelus, USA. In
this relation a marketing plan will be developed through which value proposition of stakeholders
will be made. Key findings for internal strengths and weakness will be identified so that
generated issues can be resolved positively. A justified marketing objective will be established so
that with strategic marketing plan to achieve all goals more appropriately. Digital marketing
practices will be used so that action plan can be taken. Ethics and sustainability important will be
introduced by controlling and monitoring business operations so that risk and challenges can be
identified and for minimising their effect in future appropriate actions are taken.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The Value Proposition...........................................................................................................1
1.2 Key findings facing the organisation....................................................................................3
1.3 Set and justify Marketing Objectives....................................................................................5
1.4 Strategic Marketing Planning................................................................................................6
1.5 Traditional and Digital Marketing Tactics............................................................................7
1.6 Action Plan, Budgets and Financials....................................................................................9
1.7 Ethics, Sustainability and CSR...........................................................................................12
1.8 Controls, Measurement, Review, Risks and Contingencies...............................................13
TASK 2..........................................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
International marketing is defined as application of all marketing principles and activities
in such manner so that large number of consumers can be satisfied at international level. Through
international marketing sale of goods and services can be operated in more then one nation.
Through this huge market opportunity is created for businesses to serve large number of
consumers and then earn more and more amount of profits by being competitive. In this project
report international expansion of PureGym will be described. PureGym Limited is a chain of no
frills health clubs in United Kingdom (Bennett and Rabiei, 2019). It was founded in the year
2009 by Peter Roberts. PureGym is located at more then 200 locations and possess 1 million
members in their gym. In this project report a marketing plan for PureGym will be elaborated to
expanded its business to internation market of Los Angeles, USA. Together with this a upscale
marketing model for the organisation is designed in this project report.
TASK 1
1.1 The Value Proposition
Value proposition is termed as a specific value that will be delivered to an individual who
is involved in business activities. While operating a business there are number of stakeholders
related to business and value proposition determines the value which business will contribute
towards each stakeholder. Stakeholder for PureGym organisation are consumers, government,
athletes, sponsorships, healthcare organisations and companies that create technical items. As
PureGym is planning for international expansion to Los Angelus in USA and to find value of this
expansion for different stakeholders Mendelow’s matrix will be used (Mendelow’s matrix,
2017).
Mendelow’s matrix is a tool used by an organisation to identify and consider attitude of
their stakeholders when a new project is initiated or a strategic objective is established for
business. This matrix was introduced in the year 1991 and suggest that stakeholders group is
analysed based on power and interest they possess in relation to business organisation. Power
and interest of each stakeholder differs. For example- in relation to PureGym founder possess
more power and high interest, whereas government possess high power but less interest. In this
relation mapping of stakeholders are important through which high power and high interest
1

stakeholders will be considered important and managed closely. Action plan for PureGym
organisation is as follows-
 High power, highly interested people - Manage Closely
 High power, less interested people - Keep Satisfied
 Low power, highly interested people - Keep Informed
 Low power, less interested people - Monitor
Source: Mendelow’s matrix, 2017
PureGym in order to gain comparative advantage needs to use Porter’s Value Chain so
that methods to improve competitive advantage can be identified. Micheal Porter in 1985
explains value chain analysis as a collection of activities that are performed by a company to
create value for its consumers (Porter’s Value Chain, 2019). As per this model in order to
enhance competitive advantage a organisation needs to provided more ad more value to its
consumers. As per this concept there are nine steps involved in process to generate final product
form a raw material and at each step some value needs to be created to enhance value to
2
Illustration 1: Mendelow’s matrix, 2017

consumers. As fitness industry require organisations that provide value to services and PureGym
will satisfy this criteria will help to generate competitive advantage in market of Los Angelus
while expanding globally.
Source: Porter’s Value Chain. 2019
1.2 Key findings facing the organisation
In the process of expanding to international markets PureGym needs to identify its
internal strengths and weaknesses so that while expansion they can be used as a tool to become
more competitive. In this relation SWOT analysis will be performed as follows-
Strengths:
 Services provided by PureGym is cost effective as they charge an average of £20 per
month which is quite minimum in the industry and this serves as strength in national
market and will help while expanding internationally (Bianchi and Mathews, 2016) .
 Online registration and other additional services like group classes attracts more amount
of consumers.
 Concentration on creating value for their consumers serves as a strength while expanding
business to international markets.
Weaknesses:
3
Illustration 2: Porter’s Value Chain, 2019

 Availability of some luxury services are not their in the gym due to its affordable pricing
structure and this may leads to non competitiveness to some area in US market.
 Under-staffing and poor training staff can detract consumers experience and may leads
organisation to become non competitive in international markets.
Opportunities:
 Increasing health conscious population over USA market will help in grabbing good
market share (Classen and Friedli, 2019).
 Satisfying demands of the consumer group in USA which is still unsatisfied will serve as
an opportunity to generate considerable market share at international level.
Threats:
 Increased amount of competition in the market is a threat for PureGym to get success
while expanding to global level.
 Lack of facilities, staff turnover and unsatisfied consumers will become threat for
PureGym to establish in Los Angelus market.
Expanding internationally services provided by PureGym will leads to generation of
some amount of issues that needs to be considered and resolved so that no hindrance is created.
Some of the issues are as follows-
Government regulations: As PureGym deals in fitness industry and while operating its
business in international market will imply compliance with health and safety regulations and
licensing requirement in that countries. In USA laws in relation to health and safety is quite
complicated and it becomes hard for businesses to get government permission to have access to
fitness market. This is one of the major issue while expanding in Los Angelus (Efrat, Gilboa and
Yonatany, 2017).
Non personalised services: As business model of PureGym organisation involves
minimum number of employee staff. This can become an issue while expanding in US market as
people in fitness industry prefer personalised experience. Lack of personal services will generate
unsatisfied consumers to PureGym.
Lack of funding: Funds are very important part for a business expansion and as
PureGym is performing well in UK market does not mean that sponsors and investors will
provide funds for this expansion. As high amount of competition is their in a fitness industry and
availability of proper-finance can not be managed for such expansion.
4

Unsatisfied demand: As to make fitness services affordable PureGym offers only basic
facilities to its consumers. This situation can create a issue of unsatisfied consumers as they
demands more and more from these fitness centres.
1.3 Set and justify Marketing Objectives
Marketing objectives are goals set by business when promoting its products or services to
potential consumers that needs to be achieved in the specific time period (Gillespie, 2015).
Objectives are the strategies set in order to achieve the overall organisational objectives. Aim of
marketing is to offering goods and services to consumers that will meet the needs of the
consumers and leads to generation of more and more amount of sales revenue. PureGym while
expanding to US will form a SMART marketing objective. SMART marketing objective will be
specific, measurable, achievable, realistic and timely.
Specific: All the details in relation to international marketing by PureGym needs to be
present in detailed form. All the opportunities and threats, activities to perform and goals to be
achieved are clearly defined to make it understanding.
Measurable: Objectives that are set by PureGym needs to be measurable in qualitative
and quantitative terms. This means a specific number of sales target by the organisation to be
achieved while makes comparison easy to achieve.
Achievable: Goals and objectives of marketing by PureGym needs to be formed in such
manner so that they can become achievable. For example- PureGym targets to generate 50000
members in USA at the end of its 1 year.
Realistic: Marketing objectives designed by PureGym organisation must be based on
current business situation and as per business climate prevailing in the fitness industry. As goals
generating market share of 15% in three years is a realistic target of PureGym organisation.
Timely: A objective become more specific and achievable when deadline is provided to
the marketing objectives (Hohenberg and Homburg, 2016). PureGym organisation has stipulated
strategic timescale is three years while the tactical time frame is 12 months and all the activities
will be reviewed after that.
Aim and objectives of PureGym is to provide affordable and flexible membership to high
quality gym services to all who wants to increase their level of fitness. Together with this a group
strategy is created to continue to roll out new gyms with high returns on capital as well as drive
the operational and financial performance of its existing gym estate. SMART objective in
5

relation to marketing while expanding globally is linked to organisations corporate objectives.
This will help to generate more and more revenue for organisation by operating new branches all
over the nation.
PureGym work on the strategy to grab market through serving low cost services which
will make this business cost effective. A competitive advantage will be received through serving
low cost and consumer value services that will eventually leads to grab more and more amount
of market share (Järvinen and Taiminen, 2016).
1.4 Strategic Marketing Planning
Segmentation is a marketing strategy of dividing a market of potential customers into
groups or segments which are based on different characteristics. Segmentation of a market base
for defining targeted consumers are performed in terms of geographic, demographic, psycho-
graphic and behavioural characteristics. The two major segmentation strategies followed by
marketing organisations are concentration strategy and multi-segment strategy. PureGym follows
multi-segment strategy of segmentation through which focus of marketing effectors are made on
different market segments. As while expanding to Los Angelus targeted segment for fitness
services is selected on the basis of aspiration and on income level of targeted consumers that are
available in a particular geographical area.
Targeted audience is a group of individuals who are selected to be offered services in Los
Angelus by PureGym limited. In UAS targeted consumers were all the individuals in the middle
age. Together with this consumers who are focusing on garbing cost effective fitness services
will also be termed as a target market consumers. These are selected as targeted consumers
because mostly fitness services are acquired by consumers who belongs to middle age group. As
in the fitness industry there are huge amount of consumers who are interested in acquiring cost
effective services (Katsikea, Theodosiou and Makri, 2019).
Positioning is a marketing concept that outlines what a business should do to market its
product or services to its consumers. In the process of positioning marketing department creates
an image for the product offered. A positioning strategy is used by businesses in which one or
two important areas are selected to concentrate and achievements are made in those areas.
PureGym deals with positioning strategy as 24 hours service with managing membership online.
Free classes with extensive range of exercise equipments.
6

PureGym enjoy competitive advantage over huge amount of competition in the fitness
industry due to its cost effective business model. As value charged form consumers for amount
of services provided to them when worth the money paid then it leads to attract more and more
amount of consumers. Cost effective services to large number of consumer group leads to
generation of more and more amount of profits and will generate an advantage against
competitors (Rosson and Ford, 2016).
1.5 Traditional and Digital Marketing Tactics
In the process of marketing PureGym as per its traditional marketing tactics uses
marketing mix. Through this set of actions that a business organisation uses to promote its brand
in the market. Traditionally their was 4 marketing P's but in the present time there are 8
marketing P's that are described as follows-
Price: The prices offered by PureGym to its consumers depends on membership plan. As
organisation is focused on providing cost effective fitness services so pocket friendly prices
offered to targeted consumer group to beat competition effectively.
Promotion: In the process of promotion managers of marketing department specifically
targets health and fitness magazines, TV shows and newspaper columns. This helps to attarct
potential consumers in the fitness industry.
Produce: Product offered by PureGym is fitness services. In order to attarct more and
more amount of consumers essential services are available in the gym such as cardio machines,
weights etc.
Place: PureGym is located in the UK and follows all the government policies prevailing
their in the industry. As it is targeted to be expanded in US market then it must be situated where
consumers cab easily access its services and must follow al the regulations prevailing their
(Rouziès and Onyemah, 2018).
Physical Evidence: Proofs in relation to success of a marketing plan needs to be
acquired. As PureGym provides excellent services to its clients and did not suffered any issue.
Financial crises due to appropriate fund management must be considered for effective marketing.
People: These are the targeted consumers to whom all the services are offered and who
will put to consume services provided by PureGym. Targeted costumers are people form each
geographical area to take cost effective fitness services.
7

Process: The process refers to how services offered by PureGym is delivered to its
consumers. As number of staff in the gym is minimum so more concentration is made on self
services.
Partnership: It is a marketing through which PureGym can expand its operation to other
non covered areas. Also through partnership internation expansion will become much easier and
cost effective on the same time.
Introduction of digital tactical plan made the marketing mix different which was used in
businesses as traditional marketing plan. Digital tactical plan of PureGym is as follows-
Price: As business is expanded in international market and it requires to increase number
of services offered. This will leads to regulate prices. Effective pricing will be promoted through
effective advertisement on website to attract more consumers (Rundh, 2016).
Promotion: In the process of promotion digital technology must be used through making
promotions on social media and over various digital platform to attract huge amount of
consumers.
Produce: When expanding its business to international market then a new product of
online services can be offered. In which a app is designed to guide individuals at home to
perform fitness activities anywhere.
Place: Generating an application through digital technology will enhance marketing
place of PureGym as they can provide services to consumer without geographical boundaries in
USA and other market.
Physical Evidence: Introduction of digital technology will leads to generation of more
evidence to PureGym as consumers will have more accessibility to provide their opinion
regarding level of satisfaction form services.
People: Targeted Consumers when business is expanded to international markets will
increase and through digital technology their will be not boundary to access services.
Process: Digital technology made it simple the process of service providing as
registration and information regarding number of services can be provided through website and
advertisement on social media.
Partnership: Partnering with a organisation that possess more and more amount of
access to digital technology will help PureGym organisation to operate more efficiently.
8

1.6 Action Plan, Budgets and Financials
A action plan is a strategy that will be designed by PureGym organisation while
expanding to international market to defines activities to perform and time consumption of each
activity. This will be reflected through Gantt chart which represents timeline that is used in a
project management tool to illustrate how project will be run. This is important and useful in
terms of planning and scheduling project of expansion in international markets (Saarinen, 2019).
9

10

Payback Period: It is the time a investment required to generate amount equal to initial
investment made for the same. Length of time required to generate initial investment of a project
is minimum then it will be appropriate investment. Payback period for PureGym is as follows-
Payback
Period
Time
Cash flow
Cumulative Cash
Flow
£'m £'m
0 (500) (500)
1 6
0
(440)
2 112 (328)
3 148 (180)
4 180 0
5 224 224
Assuming that the cash flows occur evenly, payback period will be 4 years.
Return on Investment: It is a relationship between investment and net profit generated
over a period of time. It is a key performance indicator for PureGym business as profitability
form expansion to US market will be analysed. Set targets of revenue generations will be
evaluated and any variation will be minimised with appropriate steps (Vaid, Ahearne and
Krause, 2019).
Return on investment= Average annual net profit from investment / Average investment
*100
Targeted Return on investment is 10%.
Year Cash flow
1 60
2 112
3 148
11

4 180
5 224
724
Average annual profits = 724- 500 / 5 years = £44.8m
Average asset value= 500/2= 250
Return on investment= 44.8/250*100 = 18%
Break-even point: It is a point where total cost and total sales revenue of business is
equal. It is a point where business organisation do not earn any profits or do not incur any loss.
At the initial stage of expansion in US market achieving break-even is essential for survival.
Particulars Amount
Sales £6,00,000.00
(-) variable cost -£4,20,000.00
Contribution £1,80,000.00
(-) Fixed cost -£1,80,000.00
BEP £0.00
Break even point in units =
(180000+236000)/
26
Ans. 16000
Break even point in Pounds = 40x16000
Ans. 640000
12

P/V Ratio = (Contribution Margin per unit/ Sales Price per
unit)*100 65
BEP from P/V Ratio 640000
1.7 Ethics, Sustainability and CSR
Ethical problems can occurs at fitness clubs when personal boundaries between staff and
clients are not respected. One of the ethical issue for PureGym is to make business practices in
ethical manner. As fundamental responsibility for being truthful to clients needs to be made and
criminal and illegal activities should be avoided. Supplements for fitness industry is a million
dollar industry in United States. A trainer before guiding an individual for these supplements
must consider to a dietitian to act in ethical manner (Vellas, 2016). Trainer and clients in gym
must have professional boundaries so that a ethical environment can be maintained. Client
confidentiality needs to be maintained as per law and ethical code practices in fitness industry. In
order to sustain in the competitive market fitness industry must fulfil their Corporate social
responsibility. For this a contribution needs to be made for social welfare.
Recommendation for ethical practices are as-
 Following strict ethical compliances in the organisation.
 Any breach must be taken seriously to avoid it in future.
 Professional code of ethics must be introduced so that each person must act in their
ethical boundaries and good environment can be maintained in premises.
1.8 Controls, Measurement, Review, Risks and Contingencies
Critical Success Factor: It is a management term which is important to achieve
organisational mission. Accomplishing this factor is important for achieving success. For
example- effective consumer relationship is a key success factor for PureGym
Key Performance Indicators: These are quantifiable measurement tool that are used to
evaluate organisational success for meeting objectives for performance (Yang and Gabrielsson,
2017). Number of consumer retention and market share are important performance indicator for
PureGym.
13

Agreeing Marketing Metrics: These are the measurable values that are used by
marketing teams to demonstrate the effectiveness of a campaigns across all marketing channels.
Consumer acquisition cost will be a marketing matrices for PureGym.
Risks and Contingencies:
 Risk of change in government policies in fitness industry in US market.
 Contingencies to generate more amount of competition then it was expected in plan.
 Risk of unfavourable conditions that leads to more cost for business establishment in US
market.
TASK 2
Uppsala model is considered as one of effective theory that illustrates internationalisation
procedures of business enterprises. In other words, the model describes the ways companies
learn addition to impacts of learnings faced by organisations. It explains how institutions
intensify their activities together with investments in international market. Uppsala model is
considered as an independent model with the application to which an organisation follows
sequential steps towards direction of enhancing foreign dedication. The model comprises four
steps to enter within international market that are not viewed independently of pertaining
busienss's situation, market as well as market knowledge. The steps through which the client
company that is PureGym can enter into international market are the followings:
14

Illustration 3: Stages of Uppsala Model. 2019
(Source: Stages of Uppsala Model. 2019)
No regular export activities: Herein, companies generally do not export its activities of
regular basis in the international market. In context to PureGym, the managers could go
international through exporting their key products on irregular basis in US market.
Exporting through independent representatives: In this step, companies exports their
products or services with the help of independent representatives that have full control on
resources and knowledge about market. In regards to PureGym, in this step, the company by
making effective relationships with various independent representatives that are successfully
established in the market of US can export its key activities in international market (Stages of
Uppsala Model, 2019).
15

Establishment of foreign subsidiary: In this, companies establishes their own
subsidiaries in the foreign market so to attract more customer base and gain market shares. In
order to go international, PureGym managers could establish a subsidiary in the market of US
and could make brand image against competitors.
Foreign manufacturing: Through this, companies begins their manufacturing or
production practices in the foreign market so to satisfy needs of the international population and
with this they successfully makes position within the area they performs workings.
From the all, PureGym can proceed its activities to expand in international market that is
in Los Angeles, US by opting establishing their own subsidiary. Prior to this, it is essential for
them to gain complete knowledge about market and commitments. The model benefits entities in
gaining experiences by working in domestic market prior to entering as well as developing
initiatives to expand in foreign market. With the help of this model, PureGym can emphases
towards sequential development for activities to promote the entity in international market and
makes effective commitments. In addition, the model enhances market knowledge of the
company that further leads in enhancement of market commitment for the international market.
In contrary, it only has one limitation which is that it is generally a risk averse method which
encourages business nurturing only in familiar environment. By considering overall concept of
the Uppsala Model, it can be said that it is one of reliable method that PureGym can use for
planning as well as establishing stable entity for gaining maximum success within internal
business environment of US.
CONCLUSION
From the above project report it has been concluded that international markets brings
more amount of opportunities for business. In order to become successful stakeholders of
business needs to be satisfied with their needs and wants. Value of consumers needs to be
enhanced in order to make them more satisfied. Strengths and weakness of a business needs to be
identified so make it more effective while expanding to international markets. Marketing
objectives must be SMART so that they can be achieved effectively. Market segmentation,
positioning are important to generate competitive advantage. A effective marketing mix will be
established so that expansion in international market is benefited through digital technology. A
well defined action plan with ethical practices in PureGym will generate certainty of success.
16

Control, measurement and review is useful to review risk and take actions to perform as per
plans.
17

REFERENCES
Books and Journals
Bennett, D. and Rabiei, A., 2019. What can we learn from ancient sales ledgers?. Australian &
New Zealand Marketing Academy (ANZMAC 2019).
Bianchi, C. and Mathews, S., 2016. Internet marketing and export market growth in
Chile. Journal of Business Research. 69(2). pp.426-434.
Classen, M. and Friedli, T., 2019. Value-Based Marketing and Sales of Industrial Services: A
systematic literature review in the age of digital technologies. Procedia CIRP. 83. pp.1-
7.
Efrat, K., Gilboa, S. and Yonatany, M., 2017. When marketing and innovation interact: The case
of born-global firms. International Business Review. 26(2). pp.380-390.
Gillespie, K., 2015. Global marketing. Routledge.
Hohenberg, S. and Homburg, C., 2016. Motivating sales reps for innovation selling in different
cultures. Journal of Marketing. 80(2). pp.101-120.
Järvinen, J. and Taiminen, H., 2016. Harnessing marketing automation for B2B content
marketing. Industrial Marketing Management. 54. pp.164-175.
Katsikea, E., Theodosiou, M. and Makri, K., 2019. The interplay between market intelligence
activities and sales strategy as drivers of performance in foreign markets. European
Journal of Marketing.
Rosson, P. J. and Ford, I. D., 2016. Stake, conflict and performance in export marketing
channels. In Proceedings of the 1979 Academy of Marketing Science (AMS) Annual
Conference (pp. 66-69). Springer, Cham.
Rouziès, D. and Onyemah, V., 2018. Sales Force Compensation: Trends and Research
Opportunities. Foundations and Trends® in Marketing. 11(3). pp.143-214.
Rundh, B., 2016. The role of packaging within marketing and value creation. British Food
Journal. 118(10). pp.2491-2511.
Saarinen, V., 2019. Increasing sales with inbound marketing.
Vaid, S. S., Ahearne, M. and Krause, R., 2019. Joint marketing and sales appointment:
Uncertainty from intertwining of marketing and sales in one position. Industrial
Marketing Management.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Yang, M. and Gabrielsson, P., 2017. Entrepreneurial marketing of international high-tech
business-to-business new ventures: A decision-making process perspective. Industrial
Marketing Management. 64. pp.147-160.
Online
Mendelow’s matrix. 2017. [Online]. Available through:
<https://blog.oxfordcollegeofmarketing.com/2018/04/23/what-is-mendelows-matrix-
and-how-is-it-useful/>
Porter’s Value Chain. 2019. [Online]. Available through:
<https://www.toolshero.com/management/value-chain-analysis-porter/>
Stages of Uppsala Model. 2019. [Online]. Available through:
<http://www.digitpro.co.uk/2012/06/21/the-uppsala-internationalization-model-and-its-
limitation-in-the-new-era/>
18