Gymshark's Business Strategy and Marketing Principles

The assignment analyzes Gymshark's business strategy, focusing on their marketing principles and expansion plans in the health and fitness industry. It highlights the importance of maintaining relationships with customers while adapting to changing market demands. The document also discusses how Gymshark uses social media to engage with customers and promote its products.

PRINCIPLE OF
MARKETING

Table of Contents
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................1
Environmental analysis of Gymshark:........................................................................................2
Objective that help Gymshark to grow and improve market share.............................................4
Marketing strategy for Gymshark...............................................................................................4
Marketing mix to improve Gymshark market share..................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Executive summary
In this assignment several topic are studied to understand the business. This include the
major purpose of the marketing plan for a business. Macro environmental factors such as
political, social, legal etc. which impact on a business. The main aim of this assignment is to
learn challenges that are faced by a business. With these Porter five model is also studied that
help a company to overcome from different challenge that create a barrier between companies.
For the study of environmental factors Gymshark is chosen because company is operating their
business into different countries. Gymshark is the major exporter of fitness apparel and
accessories. Company earned more than 30 million by exporting their products in overseas
country. This sale help the company to earn overnight growth in the year 2017. In a competitive
business world of branded sports wear and fitness apparel Gymshark hold a niche market to
stable themselves. Niche market is a place where a company deal with specialized product or
service. Some recommendation are also included for the case of Gymshark. Company can focus
on the right clothing material which provide comfortability to consumer. They should not
manufacture those goods by which consumer feel that they are looking different from other.
Specific consumer want to wear right products as the performance of a sport person is improved
if they wear correct and fit apparel. As some outfit are banned by sports association because
they reduce the performance of the athlete. Right work out accessories are always preferred by
the companies and sport person. Because improper fitted clothes cause injury and disturb the
daily routine of an athlete.
INTRODUCTION
Marketing plan is a written document that explain advertising, marketing and planning of
an organisation. The marketing plan include target market, positioning and marketing mix of a
company. The main purpose for preparing a marketing plan is to achieve the goal and target of
the companies in an upcoming year. In this assignment the discussion is about marketing plan of
Gymshark which operate its business in manufacturing fitness clothes and accessories.
Marketing plan is important for Gymshark as through these company is able to find that which
market is growing and then they convert that potential market into opportunities. As for this
assignment Swot, Pestle and porter five model is studied in context of Gymshark (Abbott, 2015).
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Environmental analysis of Gymshark:
In order to analysis the external factor of the company by which a business is affected.
Pestle is applied to evaluate the macro environment of Gymshark. Some factor which included in
pestle are as follow: Political- Present position of Gymshark business is expanded in all over the globe. Most
of the profit earned by Gymshark is because of their export sale. So company assist in
maintaining healthy relation with government. As it help company to promote their
product easily in other market with support of government. Economical- Gymshark is selling their products in countries such us China, Brazil and
Indonesia. So the strategy use to break economic barrier by company. As company target
to produce products in a cost effective way that match with consumer taste also. Social- Gymshark use social media to influence more and more customer in the society.
As company promote their products by those person who inspire society towards fitness
goal (Hutson,2013). Technology- As it is difficult for today consumer for visiting shops. So gymshark
establish their business on E-commerce platform. It also help company to reach in global
market also. Legal- Gymshark is operating their business in fashion industry. As most of companies in
fashion industry stitch their clothes from Asian market. Because it help them to save cost
so gymshark produce quality goods. So consumer did not boycott their products.
 Environment- Fashion able product are made from cotton but to make them trendy.
Companies mix them with chemical so they can be fancy and stylish. Gymshark is
providing flexible products with technical fabrics. This technique reduce hazard factor
that harm environment.
Porter five model is used as a tool by the companies. This tool help the companies to
understand different forces that making an impact on the business. Five forces that is included in
Porter model are as follow. Competitive rivalry- Many companies are trying to enter in fashion industry. As there are
large number of potential customer. Gymshark is facing major competition from big
companies like Nike, Adidas, Puma etc. Along these some local firms also cover market.
In this case Gymshark is rival companies is hurting companies bottom line.
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 Bargaining power of suppliers- This force impact about power of supplier. The less
number of supplier more number of control on price they have. For this case gymshark is
buying their product from different supplier. Bargaining power of customer- This force tell the power of buyer as they easliy switch
from one seller to another. Gymshark is providing unique products to their customer like
consumer is able to use those product into gym. As well same products are also
fashionable to wear (Kim, 2013). Threat of new entrants- Large number of potential customer in fashion industry is a major
attraction for many business house. Gymshark is deal it product for gym and fitness. So
they develop a strategy by which new companies face major problem to enter in fitness
and fashion sector.
 Threat of substitute product- Demand for gym apparel, sport wear and accessories is
increasing continue in the market. So gymshark has many opportunities to fulfil demand
of customer. As this force is not a threat for Gymshark because of growing market.
Swot analysis- SWOT is a simple framework that help an organisation in several ways.
Swot help a company to increase strength and to decrease their weakness. By Swot company is
also able to explore different opportunities and threat in environment that impact on business.
Strength
 Gymshark is using a simple website
which is user friendly for customer. So
it work as a strength for them.
 By online platform company reach in
different market and countries. By
these they cover more potential
customer.
Weakness
 Gymshark does not have large number
of followers. So people are not aware
about this product.
 Company rating in commerical
products is not high. As compare to
their competitors.
Opportunities
 More number of potential customer that
are ready to buy the product is exist in
fitness sector.
Threats
 Gymshark is facing competition from
big brands like Nike and Adidas with
more experience.
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 Company has chance to increase it sell
by increase in different product range.
Like it is easy for company to
manufacture formal or casual dress.
 Local firms are already aware about
taste of consumer. So they cover more
market and it is also a barrier for
Gymshark to enter in their market.
Objective that help Gymshark to grow and improve market share.
In order to achieve the vision of the company. Top management divide the vision into
small objective. All together these objective help a company to complete their project. In case of
Gymshark some of the objective are as follow: Specific- Gymshark is focused towards their target market that is of age group between
16-25 age of people. Company also target those who are addicted towards fitness.
Gymshark is covering 40% of market share in USA. Now company is focusing to
increase 10% more in USA. Measurable- Company earned 30.8 million dollar in its last year by export. With increase
in export sale specifically in USA. Gymshark is focus to cover half share of USA market.
As more number of unit sold in the market increase the profit of the company (Kitajima
and et. al., 2014). Achievable- The growth of company is increased only. When company motivate their
employee's to achieve the goals that are decided by them. These goals are sub parts of
company objective. Gymshark is focused to increase their 10% share in USA which is
ideal. As setting a difficult task can put stress on employee's. Realistic- Company look for those goal and task that are real and idealistic. If company
decide that they want to create monopoly in sport-wear market it is not possible. While to
cover major area of market in sport and accessories market is possible and real.
 Timely- Most of the staff did not like to work in time bound situation. But it is essential
for company to complete their task. Because in competitive world it is necessary for
company to complete project in effective and efficient way.
Marketing strategy for Gymshark.
It is essential for company to develop marketing strategy for their products. The
marketing strategy is a plan that is used to turn an individual into a customer to buy company
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product or service. Gymshark is selling their products into market with the use of online
platform. As many firms consider marketing strategy and plan as a similar product. But it is not
beneficial for company to understand them a single part. The term marketing strategy cover large
picture of the market. In these strategy it cover value, brand and plan for company product. In
order to cover market company use the marketing strategy which is target, positioning and
segmenting the market (Lawlor, 2012).
Segmentation- Market segmentation refer to divide the group of customer. These group
of customer share common characteristic and need toward a product. In these company want
that with a single product they satisfy more number of customer. Gymshark segment market
towards individual which are fitness and health freak. Company is already using demographic
segmentation to sell their product. Now with these Gymshark apply psycho-graphic in which
they focus on people who live healthy life style. These help to increase their sale of products.
Targeting- Company cannot sell their products to all people. After understand the
segmentation company take further steps which is in these they look for those customer which
are ready to buy their product. In target market company decide those group by which they earn
more profits. Gymshark is dealing its products into sport and gym apparel and accessories.
Target market refer to the size of market. With in these company also find the difference
between different markets. For Gymshark they need to export more and more products because
company is earning more profit from the overseas country.
Positioning- It is the last feature of the segmentation, targeting and positioning. While
doing the positioning company offer their products for the best valuable segment of customer. In
the positioning of market. Gymshark try to discover and create a unique value for their product.
So the customer get more value from their product. Gymshark manufacture these product for a
particular segment. So they cover all need and want of these product into their product. By these
they put more and more value in their product to satisfy the customer. Example- Gymshark sale
their product by doing market campaign with the help of people who live their life as a fitness
and health freak (Lintao and et, al., 2012).
Marketing mix to improve Gymshark market share.
The term marketing mix cover multiple areas that combine them to cover a marketing
plan. In easy words marketing mix is known as four P of marketing. The P included in marketing
plan are independent from each other but while apply them in a real situation. Each element of
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marketing mix inter-relate with each other. Gymshark implement this marketing mix to increase
their market share. Marketing mix help Gymshark to understand the demand of their customer.
With understanding of customer needs and demand. It is easy for company to satisfy the need of
the customer. For this case marketing mix is understand with implement them into clothing for a
gym industry. The four P's of marketing are described as below:
Product- The product is a tangible item which is sale by the company to their customer.
In these company decide what combination of clothes will help Gymshark to increase profit and
sale of their product. The product developed by the company are in trends, style etc. A product is
value for a company only when they satisfy demand of the customer. Like Gymshark is
providing their products to customer by online method. So they work directly on customer
feedback and make essential changes in their products (Reihanian and et. al., 2012).
Price- The term price is what the company offer for their product. Price for product is
decide by top management whether they want to sell it on premium or discount price. Some
companies also decide their price with the volume of product that are manufacturing by them. As
price decision is a critical factor because the profitability of company depend on the their price.
Gymshark is selling their product in various range because they have different potential customer
which belong to a different age. So company focus on students budget also.
Place- It the place where company distribute their products. Company put their inventory
together in a place. So the customer visit their product. In present scenario company have
different platform for sell of their products like E-commerce, social media etc. Place include
distribution decision, inventory management and store location decision. As Gymshark is selling
their products in all over the world by using online platform. So place decision for them is by
which method company transport their products to their customer. They store their inventory in
warehouse or at any other place because Gymshark is not using whole-seller as a mediator to
reach their customer (Srdjevic, Bajcetic and Srdjevic, 2012).
Promotion- The word promote refer that how company will advertise their product. It is a
strategy by which company make their brand perception in mind of consumer. Each company
promote their product by different ways. Some method to promote a product is social media,
newspaper, radio etc. Company which want to promote its products use the alternative by which
they will able to reach maximum number of customer with minimum amount of cost. Gymshark
is using promoting its products with different social media. Like they focus on those people who
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have large number of fans on their social account (Rudd and et. al., 2015). The term social media
include You-tube, Instagram and blog etc.
CONCLUSION
From the above report it is concluded that for a successful business. Company has to
follow the principle of marketing. This business principle help a company to make their
marketing plan and strategy. The learning come from this report is that business are expanding
themselves at global level. Companies has to face so many challenges in practical world. It is
difficult to maintain relationship between customer and company. As both parties aim to earn
more profits for each other. In present scenario business changes rapidly as customer demand
innovation in products frequently. Gymshark is expanding their business because the health and
fashion industry is growing with speed. As company hold major share in fitness apparel market
also. For this study it is also concluded that many person buy products not for doing exercise but
they purchase them for reason that these sport-wear are also used as a fashion style.
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REFERENCES
Books and Journal
Abbott, R.J., 2015. Pestle Analysis for Students.
Hutson, D.J., 2013. “Your body is your business card”: Bodily capital and health authority in the
fitness industry. Social science & medicine 90 pp.63-71.
Kim, B., 2013. Competitive priorities and supply chain strategy in the fashion industry.
Qualitative Market Research: An International Journal. 16(2), pp.214-242.
Kitajima and et. al., 2014. Tablet and pestle therefor. U.S. Patent 8,911,779.
Lawlor, K.B., 2012. Smart goals: How the application of smart goals can contribute to
achievement of student learning outcomes. In Developments in Business Simulation and
Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 39).
Lintao and et, al., 2012, July. Positioning precision and impact force control of segment erector
for shield tunneling machine. In 2012 Third International Conference on Digital
Manufacturing & Automation (pp. 612-617). IEEE.
Reihanian and et. al., 2012. Sustainable tourism development strategy by SWOT analysis:
Boujagh National Park, Iran. tourism management Perspectives. 4, pp.223-228.
Rudd, N.A. and et. al., 2015. Obesity bias and body image: How do fashion and retail students
compare to other personal service majors International Journal of Fashion Design,
Technology and Education. 8(1), pp.30-38.
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for multicriteria
decision making based on SWOT/PESTLE analysis: a case study of reconstructing a
water intake structure. Water resources management. 26(12), pp.3379-3393.
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