International Marketing and Sales: PureGym Expansion in US

INTERNATIONAL
MARKETING AND SALES
(IMS)

EXECUTIVE SUMMARY
International Marketing aims at planning, pricing, promoting and directing the flow of
services of the company to consumers in more than one nation instead of performing its
operations in a single country. PureGym is a well-known gym in UK with more than 200 gyms
having 1 million clients. It wants to expand itself in the cities of US in order to enhance the client
base and the overall profitability. The report describes the value proposition by using
Mendelow’s Model and Porter’s Value Chain Model along with mentioning some challenges and
opportunities through SWOT analysis. The research will be followed by mentioning the
objectives of marketing the gym in US. The segmentation, targeting and positioning techniques
are also highlighted. major marketing tactics based of 4C model are cost, convenience,
communication and consumer needs. Various traditional and digital marketing tactics can be
used like social media marketing, direct mail, database marketing and broadcasting. The action
plan for the marketing campaign is evaluated using a Gantt chart. Ethical and CSR challenges
have been defined along with ways to overcome them. Crucial factors for success of PureGym,
key performance indicators, metric and contingencies have been determined. A critical
elaboration of the Uppsala model is done in context of PureGym.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1: Marketing Plan.................................................................................................................4
1.1: Value Proposition.................................................................................................................4
1.2: SWOT Analysis....................................................................................................................8
1.3: Marketing Objectives.........................................................................................................10
1.4: Strategic Marketing Plan....................................................................................................10
1.5: Marketing Tactics...............................................................................................................11
1.6: Action Plan, Budgets and Financials..................................................................................15
1.7: Ethics, Sustainability and CSR...........................................................................................18
1.8: Controls, Measurement & Contingencies...........................................................................18
TASK 2..........................................................................................................................................20
The UPPSALA Model...............................................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
International Marketing deals in activities which aims at planning, pricing, promoting and
directing the flow of services of the company to consumers in more than one nation instead of
performing its operations in a single nation (Cateora and et.al., 2020). The PureGym is a well-
known gym in UK with more than 200 gyms having 1 million clients. It wants to expand itself in
the cities of US in order to enhance the client base and the overall profitability.
The report will begin with describing the value proposition by using Mendelow’s Model and
Porter’s Value Chain Model along with mentioning some challenges and opportunities through
SWOT analysis. The research will be followed by mentioning the objectives of marketing the
gym in US. The segmentation, targeting and positioning techniques are also highlighted. The
report will also suggest some traditional and digital marketing tactics. It will be followed by an
action plan, budgets and finance. The ethics, sustainability and CSR are also elaborated. It will
be concluded by suggesting some control measures, reviews, risks and contingencies.
TASK 1: Marketing Plan
1.1: Value Proposition
Marketing Plan generally develops marketing strategies for the company and also
evaluates the contribution of those strategies to achieve the company’s goals. It also examines
the current position of the business in the market and also studies the competitiveness of its
competitors. Before making a marketing plan of PureGym in UK for its international expansion,
the emphasis must be laid on what international marketing deals in.
PureGym is the leading gym chain in UK which provides high quality fitness experience at low
cost. It performs its operations in 260 gyms having 1.1 million members giving it the first
position of largest operator of gyms. It has a powerful and highly disruptive centric proposition
of customers which differentiates it from the other traditional gym operators resulting it in a
large customer base. It follows all the key elements of the proposition such as the affordable fees
during membership, no contracts of fixed term and provides 24*7*365 access to its high quality
gyms. It plans to perform its operations in different parts of US to expand its services in order to
increase a large customer base, the increase in sales and the overall profitability while providing
fitness services.
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International Marketing is mainly about the stakeholders who can be the persons or the
organizations who have an interest in any strategy of the company. They can be the customers,
shareholders, local community and the staff. The PureGym also have some stakeholders. As, the
PureGym has built strong relations and loyalty among its clients in UK, the investors will not
think before partnering with the company (Christofi and et.al., 2018). So, it can have
shareholders and staff as its stakeholders. The people working in its gyms have full trust on the
company so they will be ready to become its stakeholders. As the company wants to expand its
services in many parts of US, it must also build relations with the investors and shareholders in
US. The marketing plan will help the company to know its stakeholders and also evaluates the
value provided by this plan of expansion to the shareholders. PureGym can have many
stakeholders such as the clients who had good experience with the gym or the future clients
attracted by the marketing activities, can be the employees or the suppliers who supply various
equipment of gym.
Mendelow’s Matrix Model
Stakeholders play the most important role when a company or an organization wants to
expand its services internationally because these are the one who supports the progress of the
company. PureGym must keep a track on the stakeholders in US and must create strategies to
deal with them in order to get opportunities for success (Skarmeas, Zeriti and Baltas, 2016).
Mendelow’s Matrix Model is the best tool to analyse the relation of the organizations with the
stakeholders. PureGym applies this model for expanding its business internationally in the
following way:
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Figure 1: Four Quadrants of Mendelow's Model
Source: Mendelow's Matrix: Stakeholder matrix management, 2019
The first step in this model is mapping the stakeholders into the interest matrix. The company
must focus on and involve those with high power and influence and must not waste much energy
on those with low power and interest.
The next step in the model is placing the stakeholders in one of the 4 quadrants of the matrix.
The matrix is classified on the basis of the power and influence of the stakeholders (Chaulagain,
Wiitala and Fu, 2019). The upper right quadrant has stakeholders with both high power and
interest. Likewise, all the stakeholders are assigned different quadrants which makes easy for the
company to engage them in achieving its goals.
Category A: The stakeholders under this category have low power and interest. So, PureGym
must not waste much time and efforts on these but must be in touch.
Category B: This contains those who have high interest but low power. The company must
inform these because they can create distractions but not give much attention.
Category C: This category comprises of those who have high power but low interest. These can
be quickly bored with the business so they must be satisfied but not be much hassled.
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