International Marketing Plan for Pure Gym in Australia

This report assesses the marketing efforts of PureGym, a chain of health clubs, for their expansion to Australian markets. It includes a value proposition analysis, key findings, challenges and opportunities, marketing objectives, strategic marketing, and marketing tactics.

INTERNATIONAL
MARKETING PLAN FOR
PURE GYM IN SPECIFIC
COUNTRY OF YOUR
CHOOSE

TABLE OF CONTENT
INTRODUCTION.........................................................................................................................3
TASK 1...........................................................................................................................................3
1.1 Value Proposition..................................................................................................................3
1.2 Key findings, challenges and opportunities...........................................................................5
1.3 Marketing objectives.............................................................................................................6
1.4 Strategic marketing................................................................................................................7
1.5 Marketing tactics...................................................................................................................9
1.6 Action plan, budget and financials......................................................................................11
1.7 Ethical, sustainability and corporate social responsibility (CSR).......................................13
1.8 Controls, measurement, review, risks and contingencies....................................................14
TASK 2.........................................................................................................................................15
2.1 Uppsala Model.....................................................................................................................15
2.2 Application of Uppsala Model to PureGym........................................................................16
CONCLUSION............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Marketing is the strategic business process through which business organisations around
the world advertise and promote their goods, services and products to the general public in an
effort to increase their interest in the goods and services and make them conduct the financial
transaction. This report assesses the marketing efforts of PureGym, a chain of health clubs, based
in Leeds, England which was founded in 2009. Currently the business operates around 294
distinct establishments in various locations across UK. This report evaluates the marketing
efforts of PureGym for their expansion to Australian markets.
TASK 1
1.1 Value Proposition
Stakeholder’s Analysis: There are various stakeholders for PureGym all of which have varying
degree of power and influence on its daily operations.
 Employees: The employees of PureGym are amongst its stakeholders and contribute
immensely and have huge interest towards its daily operations, but have little power and
decision making capacity. They need to be kept satisfied.
 Owners: The owners of PureGym are also its stakeholders and have immense power over
its operations, but have no interest in PureGym’s daily operations. They need to be kept
informed.
 Customers: The customers are amongst PureGym’s stakeholders and they hold immense
power over its operations but do not have any influence or interest over its daily
operations (Raum, 2018). Need to be kept satisfied.
 Marketers: The marketers are PureGym’s stakeholders and they possess moderate power
over operations of PureGym while also having moderate interest on its daily operations.

Figure 1: Mendelow's Matrix
Porter’s Value Chain:
Primary Activities:
 Inbound Logistics: The inbound logistics of PureGym include all operational equipment
stored procured from suppliers and stored in warehouses.
 Operations: PureGym operates around 294 distinct establishments in the UK.
 Outbound Logistics: Outbound logistics of PureGym include the maintenance and repair
of its operational equipment, facilities and establishments.
 Marketing and Sales: These include all marketing efforts by PureGym to promote and
advertise their services to the public.
 Services: PureGym provides services to consumers in the form of operational fitness
equipment to work out, professional trainers to consult etc,
Secondary Activities:
 Infrastructure: PureGym has invested quite a bit into their infrastructure providing
additional value.
 Technology: The technology of fitness equipment at PureGym is advanced with new
fitness machines constantly being installed (Pal and Altay, 2019).

 Human Resources: PureGym also employs fitness professionals to train and guide their
customers in their fitness efforts.
Customer’s Value Proposition: Customers can get immense value from PureGym’s services as
all the establishments of PureGym are open to them for 24 hours every day, so that customers of
PureGym can come whenever their professional and personal needs and demand have been met.
This convenience is not the only value that customer attain through PureGym’s services. All
operational equipment of PureGym are new and state of the art, with there being over 200
different working equipment in every establishment of PureGym which are maintained for
optimum performance. The PureGym also employs dedicated fitness trainers likes of which are
hard to find amongst competitors.
1.2 Key findings, challenges and opportunities
Basis Pure Gym
Strengths  The gym has made a strong portfolio for them in the country which is
a great factor. There is a strong cash flow in the gym which can be
used for expansion and improving the technology in the organization
which is a very essential factor for the gym (Stavros and Smith, 2019).
Weaknesses  Making the gym function in the new country they need new
technology which will need more investment which is required if they
want to get more customers. The profitability will reduce in the
organization which is why getting promotions done is a very important
factor.
Opportunities  The population of Australia are into being fit and working out which is
a great advantage for Pure Gym and the organization will be able to
have a better functioning for them. The taxation is going to be handled
well and the organization will be able to get a better and stronger cash
flow in the gym.
Threats  The competition is huge in the country because of the fitness in the
country there are a lot of gyms (Garner, 2020). The wages which has
to be paid to the employees in the country is also fixed and there have

to be proper trainers which will be required by the gym so that they
can provide good services to the people.
Competition
There are a lot of threats which can come in front of the gym regarding their expansion in
Australia is that there are going to be a lot of competitors since the people in the country do not
like working out on the machines and this is going to be a great challenge for the gym to get
members in the organization.
Taxations and pricing
The company will not be able to have a better profit margins because they will not be
able to get members if the pricing of the membership is not lowered.
Technological
Technology has to be advance so that they can attract the right members in the gym so
that they can get more profit margins (Momsen, 2019).
Globalization
Understanding the strengths and weaknesses only then the Pure Gym should expand
themselves in the other countries so that they can understand the expectations and the standards
of the customers globally which is going to be very good for the future.
1.3 Marketing objectives
 The language issue will be solved by the organization by training the local people and
hiring them as employees by 15% by the end of 2022.
 Improvement in the technological aspect by 20% of the company by the end of 2023.
 Getting professional helpers for the members of the gym by 25% so that the organization
can provide the best of services to the clients by the end of 2025.

The objective of Pure Gym is to get more members in the organization by improving the
improving the technological use in the organization so that they can match the expectations and
standards of the population of the Australians. There are objectives which are going to be set by
the organization so that they can get the right members in the targeted time duration so that they
can achieve their objectives and aims on time (Hisrich and Ramadani, 2017). There are going to
be proper technologies which are going to help the people remain fit and healthy which proper
communication so that they become the members of the organization. There are going to be a
multiple type workout technology for the members of the gym so that the customers can get the
best of services from the gym which is a very essential factor for the organization. There is
proper guidance from safety boards to proper trainers which are going to keep the people safe in
the gym so that they do not over do what their body is expecting which is a very important factor
for Pure Gym.
The language is going to be a problem and in Gym training and guidance is very
important which is why the organization will have to send trainers from United Kingdom so that
they can help the expansion in Australia be successful as well. There are a lot of measures which
can be taken by the organization like training the locals in Australia so that the language is not a
problem. English is the common language between the two which is not going to be such a
problem for the gym but the accent might create a little problem and to give the members a
friendly environment it is very important to have the same accent. This will make the members
in the gym more regular and accepted. Proper information about all the exercises which the
members are doing is going to be provided to them so that they can have a better functioning of
the body which is a very essential factor (Cantillon, 2018). The trainers are also going to provide
the member with a proper diet plan so that whatever they exercise and ware working on can be
faster and healthier for the body as well. The approach of Pure Gym to achieve their objectives is
clear and healthy which is why they have a strong reputation in the market because they provide
the best of services to the members of the gym.
1.4 Strategic marketing
 Segmentation

Australia is a great segmentation which the Pure Gym has decided so that they can have a
better functioning and have a better globalization. This is going to help Pure Gym to expand in
the future as well which is going to be very helpful. The organization will not just be able to
understand the customers and the laws and regulations of expanding themselves in other
countries but they will be able to have a better functioning for themselves which is a very
essential factor. The needs and demands of the customers have to be understood only then the
organization will be able to expand them in the market of the country (Murtagh and Boland,
2019). There have to be cost effective measures and strategies which have to be planned by Pure
Gym so that they can have a better functioning which is a very essential factor for the
organization. The location of the gyms will have to be in the cities so that the customers can
come in easily which is very essential. There are more than 70% of the age group 25 to 45 which
are online in the country which can be used as a great advantage for the gym. There are online
services as well which Pure Gym is providing to the customers like registering themselves online
or finding out more about the services and laws of Pure Gym online so that the customers can
find it easier. The designing of the gym will be such that at least 75% of the customers are going
to be satisfied and fulfilled with their demands.
 Targeting
Targeting the country and the population which is between the ages 25 to 40 years is a
good sign for Pure Gym because they will be able to function effectively. The gym is going to be
designed according to the expectations of the social appearance and that is going to get a lot of
customers. The age group between 25 to 35 are going to be inexperienced which is why to make
them have a better experience there are going to be trainers in the organization so that they can
help the youth to improve their stamina and get healthier (Di Maria, 2019). The pricing will
affect on the youth for the membership and that has to be controlled by the organization which is
why the organization is going to keep the prices low so that they can get more members in the
organization which is a very essential factor. The needs and demands of the members will be
fulfilled from time to time by Pure Gym so that they can have loyal members who are given the
best of experience and that is going to reflect on the portfolio of the organization.
 Positioning

Positioning of the organization is that they will have to promote themselves in the market
of Australia because they have a lot of competition and the investment which the gym is making
is huge which is why promoting themselves in the country is very essential. The company has
not expanded themselves anywhere else in the world which is why this is a great advantage for
the organization. There is a lot of competition which is why the organization will have to think of
unique ideas and Australia is a good place to expand in because of the population. Pure gym
would be spending around $1.5bn for the infrastructure they have designed for the people of the
country which is a very important factor for the customers to get attracted. This is going to be a
great experience for the organization and the organization will be able to expand them better
(Hassan, 2018). The prices of the Gym will be set low and more technologies and services will
be provided to the members who are loyal to the organization because they need special
treatment in the organization. Offerings in Pure Gym in that they are cost friendly to the
members of the group in United Kingdom as well which is a great factor for the organization for
a long run which is why the Gym has captured the attention of so many member in such a less
span of time and that give a competitive advantage in this industry to Pure gym.
Pure Gym is going to have a huge competitive advantage globally if they can successfully
expand themselves in Australia. The population of the country is already aware of the
importance of staying healthy and making them get attracted to the gym is going to make the
organization get a stronger portfolio for themselves. The price of membership in the gym is
going to be low which is what Pure Gym is famous for and the services are proper even at the
low price which is a great factor for the organization.
1.5 Marketing tactics
There are a lot of tactics which Pure Gym has examined and tried in the organization so that
they can have a better customer base for themselves in the market. The organization has
understood the needs and demands according to the change in trend so that they can get more
members in the organization which is a very important factor for Pure Gym is they need more
profit margins (Smith, 2017).
Marketing Mix

Price
The pricing of the gym membership is going to be low which is going to get more clients
in the gym.
Product
There are a lot of technologies which are going to be added in the gym so that they can
provide the best of services to the customers. The technologies are going to be of good quality so
that they can improve.
Promotions
The gym will have to promote them in the country so that they can make the customers
aware of the changes they are getting in the organization which is a very important factor. Use of
television, advertisement, online, etc is going to be used by Pure Gym.
People
There are going to be trainers and skilled employees in the gym so that the clients can get
the best from the services and products for them from Pure Gym.
Process
There are going to be high quality products which are going to be provided to the
customer’s in the organization so that there is a better functioning of Pure Gym in the market.
Physical Evidence
The gym is going to have an upgraded version of infrastructure so that they can get more
customers in the organization which is going to make the gym a success.
Place
The location of the gym has to be centralized so that the customers can find it easier for
communication and transportation. This is also going to get a lot of customers in the gym.
 Traditional Tactical Plan

Traditionally the organization had to advertise them in television or by sending out direct
mails to the members or the people who were associated with the gym. This is not a cost friendly
method and advertisement took a lot of money which has to be controlled by Pure Gym and
other methods have to be found by the gym to make them popular in the market so that they can
get more customers in the organization which is a very essential factor (Giovannoni, 2020).
Emails are sent out to a limited members and not everyone could be sent about the updates of the
gym which was a drawback for the company which is why they had to advertise themselves so
that they can make the population get updated of the changes so that they can have a better
functioning.
 Digital Tactical Plan
The digital tactics gets in more members and is a much more cost friendly method which the
gym can use. The prices of membership are low of the gym which is why using this method is
going to be very important for the organization so that they can have a better functioning. Pure
Gym has a website of their own, data base marketing, online advertisement, etc as what is
expected from the customers which is very important for Pure Gym to follow so that they can get
in more customers in the organization so that they can have a better functioning. The customers
are getting digitally smarter which is why Pure Gym can start an online advertisement by giving
out free classes so that the people know the intensity and services of Pure Gym so that they can
get more members (Ratten, 2017).
Though, when the organization expands in Australia both the methods are going to be
recommended for Pure Gym so that they can get a strong base for themselves in the market
which is a very essential factor for the company. More the promotions that means for the
membership the organization can find in the market and that will result in higher revenue
generation. People of Australia do not trust so easily which is why the organization will have to
find to promote them in a way so that they can get more customers in the organization (Quaid,
2020). The company will have to value position themselves in the market of Australia so that
they can get more members and the company will be able to have a better cash flow in the
market for expansion globally.

1.6 Action plan, budget and financials
Action plan
Top-level management of Puregym has highly required to make an effective action plan,
because an action plan always provides a framework to a business which can properly guide to it
for expanding its operations in the new market segment (Islaini and Nayan, 2020). In this
situation, an effective action for the Puregym has been mentioned below;
Action Plan
Vision: Increase market share by 10% in the UK’s fitness sector.
Objectives
 To expand business operations in new market segment called Australia
 To employ develop strategies for dealing with challenges and opportunities
 To identify key stakeholders for successfully expanding existing business operations
Key steps
 Set SMART marketing objectives for boosting existing promotional activities.
 Implement STP (Segmentation, Targeting, Positioning) model marketing strategy.
 Develop an effective marketing campaign with the support of traditional and digital
marketing tactics.
Tasks to delegate or outsource
 Prepare a specific market plan by properly completing whole market research.
 Acquiring new assets
 Prepare a pre-plan for properly dealing with upcoming risk factors
Tasks to ignore
 Avoid to use those business strategies which are completely time-consuming and
ineffective.
 Ignore such all activities which can negatively influence people in the new market
segment.
Resources
Currently various productive resource available here which can support to company for
expanding its business operation in the Australia (Srinivasan and Lohith, 2017). For example;
human resources (employees & labour), technological resources (digital marketing tools,

modern gym equipment), and specific meals, etc.
Gym layout and customer service
Top-level management for Puregym has decided to give an attractive to look to its
various gyms within new market segment. On the other hand, I will try to provide the best
customer service to different customers.
Grant chart
Planed
Activities
July,
2020
August,
2020
September,
2020
October,
2020
November,
2020
December,
2020
Market
Research
Pre-launch
promotion
Gym layout
Service
strategy
Launching
of new gyms
Post-launch
promotion
Budget and financials
The management of company is responsible to develop a budget plan also for properly
fulfilling all financial needs. This is very common step for a business or venture when it has
decided to expand its business operations in the new market segment. During developing budget
plan, existing management should involve various financial terms, like; ROMI, Payback and
breakeven etc. these financial terms has been discussed below;
ROMI (Return on marketing investment): ROMI is basically uses by company for measuring
the value investment which expending on marketing aspect. In this situation, when Puregym will

expend fund in marketing, then it should measure the actual value of existing investment as well.
Reason is, this company will able to gain high return on marketing investment in the Australia by
measuring value of investment.
Payback period: Payback refers number of different periods needed for paying back an initial
investment with effective or positive net income. That’s why existing management of company
should highly consider this aspect of capital budgeting while developing its budget plan. Time
period of one year is enough as a payback period for the company in the new market segment.
Breakeven: Breakeven analysis is very necessary aspect for the Puregym, because this give
opportunity to a business for developing an effective budget plan. This fitness business can
easily achieve its financial needs by implementing breakeven factor in budget making processes.
The company need to use this analysis till one of year of establishment in new market Australia.
Estimate budget and financials
Area of Spending/Investment Year 1 Year 2 Year 3
Market research £300 £150 £170
Salary and wages £1200 £1400 £1600
Legal formalities £500 £300 £350
Promotion £1500 £1300 £1600
Transportation £750 £550 £400
Total £4250 £4450 £4870
1.7 Ethical, sustainability and corporate social responsibility (CSR)
The management of Puregym has highly required to follow different ethical
considerations in its upcoming marketing operations which it will run while expanding its
business operations in the new market segment (Kalińska-Kula, 2017). When company will

follow all ethical considerations in its business environment, then it can easily deal with different
ethical issues. Basically, marketing ethics gives opportunity to a business for creating an ethical
work culture in its business environment. In this situation, marketing team of Puregym should
consider different factors in its marketing operations for developing an ethical zone in expansion
processes. These major factors have been discussed below;
 The marketing team of company is responsible to take such actions in their marketing
operations which can positively influence company’s all stakeholders.
 Existing management of company should inform each stakeholder about their existing
marketing steps which will be taken while expanding business in the new market
segment.
 The company should maintain sustainability in its business operations while entering
Australian fitness market, because proper sustainability always provides a specific flow
to company for running its all marketing functions on progressive path.
By considering these all factors in its business environment, the Puregym will be able to
maintain an ethical zone in its various marketing activities
On the other side, there is CSR (Corporate Social Responsibility) also plays great role to
a business when it expands its business operations in the new market segment (Aslam, 2018).
For example; most people always like to buy products and services from those businesses or
companies which always fulfils their CSR on time. In this situation, if Puregym will also fulfil
CSR on time in the Australia, then company can easily attract lots of new customers towards
own brand in initial stage of this market segment.
1.8 Controls, measurement, review, risks and contingencies
Controls, measurement, review, risks and contingencies etc. are some major stages for a
business which it needs to properly covered while expanding its business operations in the new
market segment. These all stages highly contribute in a business for successfully executing its
marketing plan in the selected market segment, in which these stages have been discussed below;

Monitoring and controls: The management of company has highly required to properly monitor
and control its existing marketing functions while entering new market segment. Reason is, when
company will properly monitor and control its marketing functions, then it can easily execute its
developed marketing plan in the new market segment. The management can monitor different
things within marketing plan execution process, like; employees’ performance, daily operations,
etc.
Measurement: There is measurement is another important stage within implementation of
marketing plan, because Puregym will be able to do necessary improvement by measuring
existing performance of the marketing plan. Currently various tools are available in the market
which support to this company for measuring its existing performance. For example; KIP (Key
success indicator). By using KIP tool, company will be successfully executed its marketing plan
in Australia. KIP will support to company for measuring existing brand image, people interest,
future opportunities etc.
Review: The management of company has required to systematically review its existing
marketing plan, because management will be able to find major strengths and weaknesses of its
marketing plan by reviewing.
Risks and contingencies: In this stage, existing management should prepare itself for dealing
with different factors which has based on risk and contingencies (Chitty, D'Alessandro and Gray,
2019). There is uncertainty, low interest of people, strict policies of local government are some
major risk factors for the company. With the support of this stage company will able to gain
effective return from its marketing strategies.
Analysis of risk factors
Risk factor Profitability Magnitude of
risk
Control
measures
Review &
Contingency
plans
Strategy failure 2 4 Risk limitation and
risk factor
Hire some skilled
strategy
developers within
business

operations
Strict government
policies
1 2 Risk factor Negotiate with
local government
with the support of
effective offers
Physical loss 1 3 Risk factor Take full care and
precautions
Top talent
retention
2 5 Risk limitations Hire some talented
employees and
offer effective
salary
Natural disnature 1 6 Accept Take advantages
from insurance
policies
Risks Scoring
Scale High Medium Less
Risks 1 3 1
TASK 2
2.1 Uppsala Model
The Uppsala model of internationalisation, is a strategic model that aims to evaluate the
characteristics of the internationalisation process which every business organisation has to
undergo through. Since its creation in 1970, the Uppsala model has seen changes and updates in
regards to its operations with even the current model still highly debated upon. The four main
features of Uppsala model are as follows:
 Businesses must first archive the knowledge of their domestic markets before expanding
to international markets.

 Businesses must expand their operations to nearby international markets first, which
share same culture, religion or geography to the domestic market (Vahlne and Johanson,
2017).
 Businesses must launch their international expansion through slow traditional exports but
must switch to intensive exports and operational modes like foreign sales subsidiaries.
 Establish production facilities of business organisation in the international markets it
exports to when enough market knowledge of the new international markets has been
obtained by the business organisation.
2.2 Application of Uppsala Model to PureGym
For PureGym to expand to international markets in an effort to increase its productivity and
profitability while diversifying its operations, it can implement the Uppsala mode of
internationalisation to its operations with the intention to successfully expand to international
Australian markets. To effectively internationalise its operations on the basis of the Uppsala
mode, PureGym needs to first archive all the knowledge of the UK markets which are domestic
to its operations before trying to expand to Australia (Coviello, Kano and Liesch, 2017). Though
Australia and UK are not geographically nearby, they do share the same culture and religion
which also satisfies Uppsala model of internationalisation’s features. At first, in order to expand
to international markets of Australia, PureGym needs to engage in slow rate of exports of its
fitness equipment, while making exports through the use of external secondary agents who do
possess some knowledge about the Australian markets. Then with time PureGym needs to
increase the intensity of its exports while taking over the export operations of the middle man,
either buying him, or exporting themselves after gaining enough knowledge about the Australian
markets and how they can establish their own operations in Australia successfully (Dow, Liesch
and Welch, 2018). Finally, PureGym needs to start operations in the Australian markets after
having gained enough knowledge about Australian markets and evaluating the ways to gain
competitive advantages in the Australian markets for successful operations and expansion.

CONCLUSION
Based on the findings of the report, it can be concluded that effective marketing through
both traditional and digital channels of marketing is essential for PureGym to expand its
operations to Australian markets successfully. This report performs stakeholders, Porter’s value
chain, SWOT analyses for PureGym. Then the report evaluates its marketing objectives using
SMART model and evaluates how PureGym can effectively segment, target and position their
marketing efforts. Further the report creates marketing and action plan in addition to analysing
the ethics, CSR and sustainability issues for PureGym. The report also evaluates measures
PureGym can use to control and monitor their marketing efforts and also applies the Uppsala
model to PureGym’s marketing plan.

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