Marketing Plan for PureGym's Expansion into United States

This marketing plan outlines the value proposition, key findings, challenges, and opportunities for PureGym's expansion into the United States. It also includes the marketing objectives, strategic marketing approach, and marketing tactics for both traditional and digital channels.

International
Marketing and Sales

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction to expansion country..............................................................................................3
MARKETING PLAN......................................................................................................................4
1.1 The Value Proposition...........................................................................................................4
1.2 Key findings, challenges and opportunities..........................................................................5
1.3 Marketing Objectives............................................................................................................7
1.4 Strategic Marketing...............................................................................................................7
1.5 Marketing Tactics, both Traditional and Digital...................................................................8
1.6 Action plan, budgets and financial......................................................................................10
1.7 Ethics, Sustainability and CSR...........................................................................................11
1.8 Controls, Measurement, Review, Risks and Contingencies...............................................12
TASK 2..........................................................................................................................................13
Uppsala Marketing Model.........................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing and Sales are two most important operation of a business involving several
actions and thorough plans according to which all the functions are performed in particular
departments (Cateora and et. al., 2020). Marketing and sales plans are interrelated as for
developing synergy in the company and effective communication with end consumers. The
offers which are advertised and promoted by marketing team through different promotional tools
and activities have to be developed by keeping in close touch with sales departments for making
effective plans in order to attract people and also for benefiting the organisation as well. The
report is developed over PureGym, United Kingdom's leading fitness brand which was
established in 2008.
PureGym is dealing in fitness industry offering low cost fitness facilities to customers
and serving in more than 200 sites in UK. The company is not operating internationally and for
which this report is constructed. The assignment is divided into two parts one is a detailed
marketing plan in which thorough evaluation is conducted. The first segment covers value
proposition canvas, analysis of marketing environment in which PureGym is operating, SMART
marketing objectives, utilising STP and 7P's models for tactical view and preparation of budgets
and other related financials. Along with it in the next part, Uppsala marketing model is evaluated
with the help of its strengths and weaknesses and with examples showing its application over the
company's marketing actions (Vellas, 2016).
TASK 1
Introduction to expansion country
PureGym is a leading fitness brand and facilitator of United Kingdom, the country's
health and fitness report highlights the growth and development in the respective industry in past
years. Total membership in UK have increase to 10 million with a market value of around £5
billion. It is identified through the study that amongst the whole population of UK one person in
a group of seven is a member of a gym. Therefore, in UK fitness industry is boosting and that
has contributed towards making the organisation PureGym the leader.
PureGym is a leading brand which is expecting to expand internationally in to new
markets by adopting market development strategy. The fitness service provider wish to move
into new global market with similar offerings. The company is recommended to move its

operations to United States. First reason is the strength US economy has that helps businesses
local and international both to flourish operations and attain pre-determined objectives. From
research it is identified that more than 63 million population of US is member of a health club
enjoying both traditional and boutique facilitates. The average retention rate of just 73% and
member turnover is huge but the industry is strong and flourishing and which is why PureGym is
moving their operations to United States (Hult and et. al., 2018).
MARKETING PLAN
1.1 The Value Proposition
The value proposition is a concept which enables the entity in making the product or
service and their brand more attractive to customers and potential buyers. The Value Proposition
Canvas model is a framework which enables the organisation to position their brand and
offerings in such manner that is surrounded around the needs and value of consumers. This
model is used while refining the exiting goods and services or while developing any new
commodity from scratch. This proposition has two segments Customer's Profile and Value
Proposition each of them has three elements that are elaborated below in relation with PureGym
and its expansion in United States (Eteokleous, Leonidou and Katsikeas, 2016).
Illustration 1: What is the Value Proposition Canvas, 2020

(Source: What is the Value Proposition Canvas, 2020)
CUSTOMER'S PROFILE:
 Gains- The consumers or health conscious people in Unites States is searching for a
fitness service facilitator who is best in the field. PureGym can delight customers with
their best quality services and best equipments being provided to them in lowest price in
comparison with the market.
 Pains- The members turnover ratio is huge in United States as consumers do not stick to
one health and fitness club or gym due to great amount of fee or membership charges but
unsatisfactory services be provided by the clubs and gyms (Mathews and et. al., 2016).
 Customer Jobs- The customers just wants to be fit and engage in their daily exercises for
being in their best shape and keeping themselves healthy.
VALUE PROPOSITION:
 Gain Creator- The offerings and services that is offered by PureGym to the people in
US is beneficial to them as they will receive access to all the required fitness equipments
anytime in a day for 24*7 and in the lowest price. People or clients will just pay for those
equipments which they are using also, membership can be raised and renewed online
reducing all type of hustle.
 Pain Relievers- The problems which is faced by clients in US form their fitness service
and equipments facilitators is huge membership fee is paid for even those activities and
equipments which is not being utilised by them and this problem is resolved by
 Products and Services- The product offering is a gym which is fully equipped with all
necessary and upgraded fitness instruments. The gym is open for clients to use and do
their exercises 24*7 and 365 days and the facilities will be provided in the low cost
(Tolstoy, Jonsson and Sharma, 2016).
1.2 Key findings, challenges and opportunities
SWOT analysis:
this is a frameworks which is made of four elements all focuses over internal and external
environmental factors which can negatively and positively impose their impacts and for which
company has to take proper measures. PureGym is moving to new market an for which
marketers have to gain information about their strengths and opportunities those can be used for
reducing weaknesses and threats.

Strengths Weaknesses
 PureGym is UK's leading fitness
service and facilities providers which is
huge goodwill for the brand and will
allow it to enter in new markets with
utmost potentials and power.
 Low-cost fitness service facilitator as
well as services being availed by
member on any of the branch and
anytime in 24 hours of a day.
 The weakness of PureGym is the lack
of knowledge the company have of the
market that is United States.
 Another weakness is PureGym is not
aware about the nature, opinions,
perspectives, attributes and attitudes of
potential buyers which will hinder the
marketing planning and promotional
schemes (Kraus and et. Al, 2016).
Opportunities Threats
 The term opportunities refers to the
chance and power an individual firm
have to strengthen its operations. And
in case of PureGym the opportunity is
to develop and expand into new
markets.
 PureGym can adopt merger and
acquisition option or joint venture for
expanding which will result in reducing
its weakness of lack of market
knowledge (Yang and Gabrielsson,
2017).
 The most influencing threat which
PureGym is going to face in new
market while operating marketing its
offerings is of exiting competition and
along with it new arriving competitors
are imposing a threat too over
PureGym.
 In United Kingdom the economic and
political environment is in favour of
businesses and provide best suitable
environment of the organisations to
flourish but in other international
market the same environment is not
available and for which PureGym have
to be flexible and adaptable for making
arrangements according to the new
surroundings.

The above analysis conducted clearly shows the need for effective marketing plans and
promotional tools to be used by marketers of PureGym in order to position itself in new
operative market.
1.3 Marketing Objectives
Objectives are the major factors for which an individual or a business organisation works
in order to attain them as efficiently as possible and in the given time frame. In respect to
organisations the management serves the company with pre-determined objectives and aims and
those aims are divided according to hierarchy rendering each level of hierarchy their respective
goals. Different departments of company work for completing their aim in time and contribute to
the whole objective. In similar manner PureGym has the aim of expansion and for which the
marketing objectives for the period of one year that is 12 months are as follows:
 To increase sales by 8% in the next one year.
 To improve profitability of PureGym by 5% in next 12 months (Hilmersson and et. al.,
2017).
 To induce customer base by 10% in next 6 months and respectively move further with
higher pace.
1.4 Strategic Marketing
Segmentation, Targetting and Positioning (STP)
According to the marketing background, the term segmenting, targeting and positioning
is a wider concept of framework that provides the process of particular company segmentation.
As the company PureGym is planning to establish their venture in United States of America. So,
all the factors related with STP would be considered to be measure on the basis of United States
market condition.
 Segmentation: In this process it separate the market into smaller or micro groups with
similar product characteristics, for the purpose of opting particular optimum target market
. Similarly, for PureGym company need to identify the market first along with they have
measure overall market factors which determined to the market (Olsen, Wagner and
Thack, 2016). As PureGym venture has opted their new market in United States where
they are planing to study the market as they can captured the opportunity and making
their fitness business service established successfully, they have to rectify their product as
per the US fitness market perspective to creating awareness in the market. The product

specification should resembles some different concept as PureGym are from United
kingdom they need to acquire advance level of workout machines to attract the customer
as their services speciality is 24 hours service they provided.
 Targeting: This term is defines to the context of organisation's product quality or
specification for their suitable market segment as well as it support to guide the target
audience as per their product background. As per the PureGym company need to derive
their product and service type, on that basis company can target their customers. As the
product is defines healthy environment of gyming workout and their target customer
could be measure on the factor of demographic such as age, gender etc. As per their
service point of view they focuses on youngsters, athlete or sports enthusiastic and
middle class people as their pricing are very in economic range and easily affordable the
services of fitness packages by customers (Cummins, Peltier and Dixon, 2016).
 Positioning: According to this process it defines on the basis of target market perception
of the particular product's key specification and features as they are relatively offers
better as compare with other competitive products. As per the perspective of PureGym
company 's product and services are offers in low range as they providing 24 hours
fitness services . The scope of US digital marketing is very effective where PureGym
venture is offers online premium workout sessions to making engage the customer
constantly. To compare with other competitive fitness venture PureGym's product could
b position if they perform well and offer the product and services better from other
competitive company.
1.5 Marketing Tactics, both Traditional and Digital
MARKETING MIX
7P's Description
Product The PureGym is a dealing in fitness industry rendering all the fitness
related services to members. The gym is open for 24*7 in the year and
offering the best low cost equipped gym to the user who are coming in for
exercises (Watson IV and et. al., 2018).
Price The pricing policy followed by PureGym is of cost leadership. One of the
strength of PureGym is its cost effective. The gym charges lowest fee form

members amongst all other competitor. The company earn a competitive
edge in market by keeping prices low and services of best quality it will
enable it to increase its member retention ratio while operating in US as
the value added to customer's is high.
Place In United Kingdom PureGym has 200 or more sites that is gyms in
different locations of the country covering all major cities and attracting
large customer base. Its distribution channels are highly effective due to its
large presence in the marketplace and became the first club with more than
200 sites. In the same manner while moving to United States as well
company is planning to spread operations in major location and cities
(Rosson and Ford, 2016).
Promotion The promotional tools which are most effective in today's techno friendly
world is social media and digital means to do so. The aggressive marketing
and promotional campaigns will be surfing on social media platforms of
PureGym through which company reach to maximum customer base and
in all corners of USA and even in other countries.
People The employees base of PureGym is very low as first there is no reception
or front office as the firm take booking and memberships through online
official websites. The personal trainers who are training in the gym are
also self employees and working voluntarily. PureGym is just providing
fitness facilities and equipments to member who wish to workout with
their own schedules and routines.
Process The processes involved in the operations of PureGym is physical and
online. Both the processes are very efficiently managed and executed by
the responsible members and business owners (Aghara and et. al., 2018) .
Physical Evidence All the gym's present in separate locations of United Kingdom and now
being introduced in United States are the proof of presence of PureGym.
Moreover, the company has online presence as well for making payments
and renewing membership.

1.6 Action plan, budgets and financial
Pay back: It could be defined as the time period in which the organisation will be able to
meet the break even point. If they will not be able to meet it then it may result in failure of all the
plans that are formulated previously. There are various estimations are made for the purpose of
calculating payback and break even for the organisation. All of them are as follows:
Particulars Amount
Cost of the investment 100000
Cash inflow on yearly basis 15000
Life of the project 5 years
Selling units 1000
Selling price 25 per unit
Variable cost 10 per unit
Fixed cost 10000
Payback period= Initial investment / cash inflow
= 100000 / 15000
= 6.66
The funds which will be invested in the project could be recovered in 6.66 years. It shows
that the period is very high and it may increase the possibility losses for business(Baker and
Hart, 2016).
Return on marketing investment: When an entity makes investment in a project then it
is very important for it to analyse the returns that could be gathered on the investment. For the
marketing investment the calculation of the return is as follows:
Formula: Net profit / investment * 100
= 5000 / 100000 * 100
= 5%
Calculation of net profit=
Particulars Per unit cost Amount
Sales 25 25000
Less: variable cost 10 10000
Contribution - 15000
Less fixed cost - 10000

Profit 5000
Total return which could be generated by the entity by making investment of 100000 in
the marketing project will be 5%. The rate seems to be slightly low and before making the
investment it will be very important for the management team to make sure that they invest the
funds properly and ignore the possibility of losses.
Break-even: When the entity reaches to the situation of no loss and no profit then it is
known as break even point. At this stage the company recovers all its costs. The units that are
required to be sold to meet this level are calculated below:
Break-even point in units:
Formula: Fixed cost / contribution per unit
= 10000 / 15
= 666.67
Break-even in amount:
Formula: Fixed cost / PV ratio
= 10000 / 60%
= 16666.67
Calculation of PV ratio:
= Contribution / sales * 100
= 15 / 25 * 100
= 60%
On the basis of above calculations, it has been analysed that it is very important for the
organisation to sale 666.67 units to meet the break even point. The amount of sales which is
required for the same is around 16666.67. If it will be met by the entity then only it will be
possible for the organisation to recover all its costs.
1.7 Ethics, Sustainability and CSR
Corporate Social Responsibility (CSR) is as business management concept which makes
the organisation responsible for social and environmental concerns and works for rendering back
what they have taken from the society and environment while running their operations (Bowie
and et. al., 2016). There are several Corporate Social Responsibilities (CSR) which are essential
for PureGym to fulfil while moving their operations in Unites States. The company will be

facing many ethical challenges while moving and expanding into new marketplace, for which the
marketers and management have to take measures to reduce their impacts and risks associated.
The first and foremost challenge in relation to Corporate Social Responsibilities (CSR)
which will be faced by PureGym is of legal regulations and legalisations. Every country has their
respective work environment and economy for which they make efforts and laws to run them
smoothly and efficiently. In the same manner United States of America do have their separate
laws for social and environmental concerns. PureGym has the responsibility to align their
operations and functions accordingly for effectively entering the market.
The challenge arises when the company reaches to implementation stage and have to
make sure that they are complying with the laws provided for the same. These Corporate Social
Responsibilities (CSR) polices and procedures are of complex nature which develops
complexities and can bring unknown legal charges and penalties in the name of the company.
In order to mitigate the impacts of such complex laws and effectively follow them
without facing any unethical charges and fee PureGym policy makers that is managerial and
directorial members have to take advice form the experts who have knowledge and expertise in
the field and can guide them to comply with the legalisations with out engaging into any trouble
and undue charges (Murphy, Laczniak and Harris, 2016).
1.8 Controls, Measurement, Review, Risks and Contingencies
Monitoring and Controlling actions are the last phase of a detailed plan for any specific
area. For a effective marketing plan to be developed for the present and future company has to
monitor the past performances and accordingly take controlling measures to mitigate their
impacts in future. The monitoring and controlling segment has elements which needs to be
focused by the marketers while planning for PureGym expansion in Unites States. These are as
follows:
 Identifying Critical Success Factors: A critical success factor is an element or group of
factors which develops the path of company to be successful in attaining their goals and
these are necessary for the firm to hold in order achieve all aims in the respective time
frame. In relation with PureGym the critical success factor is its cost leadership strategy
because competition is huge in United States but being a cost leader render the company
a competitive edge and power in the market.

 Setting Key Performance Indicators- These are few quantifiable measurements which
are utilised for standardising the company's long term performances and productivity.
The key performance indicators renders basis or standards for management to make
comparisons in their actual and prescribed performances. The financials accounts and
budgets made by PureGym are the best performance indicators.
 Identifying Risks and proposing contingencies to address those risks- The last factor
is of risk identification and make arrangements for mitigating those risks in order to reach
to expected outcomes and earn maximum benefits. These risk identification and
mitigation practices will allow PureGym to be one step ahead of others in the markets as
they are already prepared for the negative actions which can affect the brand and its
operations. For instance, dynamic political and social environment of United States is a
risk as people tend to end their membership and government is regularly bringing
changes in laws specially for Corporate Social Responsibilities (CSR). Therefore, in such
situations marketing and other functional departments will be prepared for taking
mitigating actions and making arrangements accordingly.
TASK 2
Uppsala Marketing Model
Uppsala model was developed in year 1977 by the Professor Sune Carlson. It is mainly
used for the purpose of describing the procedure of internationalisation which is followed by the
firms. According to this model, it is vert important for the businesses to choose the nearby
market to enter and then formulate strategies to launch products and services into international
market by making efforts for marketing (Klotz, 2018). At first the market commitment of the
organisation should be low as it will ignore the possibility of bad market image. There are four
different stages of this model which are described below:
 Stage 1: Sporadic export: This stage is related to execution of business with no regular
export activities. When sporadic export is focused by the organisation then it is very
important for it to make sure that it is able to manage all the export activities. When the
export activities will not be performed on irregular basis then the businesses will be able
to determine that they will be able to perform all the operations successfully at

international level or not. With the help of it, strategies for future could be formulated
which will help to carry out all the operations systematic manner at global level.
 Stage 2: Export mode: It is second stage where the organisations perform export
activities with the help of independent representatives. When there will be various
representatives of the organisation in different countries then it will help to initiate the
business at international level. Apart from this, this stage can benefit the company to
spread awareness about the products and services that are sold by it. When the level of
awareness among the targeted audience will be high then it may result in higher sales for
business in upcoming years which will also help to enhance profitability.
 Stage 3: Establishment of the foreign subsidiary: When the selling activities will be
performed by the representative in an international market and the managers analyse that
the business is able to sale all its products successfully then a foreign subsidiary could be
established. With the help of it, the organisation will be able to sale all its products
directly to the customers. Apart from this, when the subsidiary will be established then it
will also result in decreased cost of representative. It is one of the main stages of the
Uppsala Method which can help the organisations to establish their business successfully
in a foreign country (Grath, 2016). In order to establish the subsidiary a specific city
should be selected where the subsidiary will be established and all the activities of
business will be carried out.
 Stage 4: Starting production activities in foreign: When the subsidiary will be
established in the foreign country then it will be very easy for the entities to carry out all
the operations in the foreign country successfully. With the help of it, the goal of
establishment of the business in a new nation could be met. Apart from this, when the
production activities will be started in foreign country then it will help the enterprise to
increase the market share and profits.
CONCLUSION
From above report of International Marketing and Sales, it comes as conclude the topic
which discussed by determining the organisation by forming the proper marketing plan with all
external and internal factor consideration, by using the Uppsala marketing tools to explains the
different types of models which exists in marketing environment. Elaborates the different
marketing tactics to accomplish the strategic objectives along with 3Ps to describe about the

partnerships in marketing perspective. The discussion about having scope of digital media and
technology in terms of opportunities that influence to the marketer. At last, by forming the
marketing plan on the basis of financial, market environment and STP process for analysing the
process of commencing the business along with action plans as per the situation arises to
accomplish the objectives.

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Online:
Fitness Market Size, Demographics & Revenue, 2020. [Online] Available Through:
<https://www.wellnesscreatives.com/fitness-market/#usa/>
What is the Value Proposition Canvas?, 2020. [Online] Available Through:
<https://www.b2binternational.com/research/methods/faq/what-is-the-value-
proposition-canvas/>