The Marketing Plan Assignment : Gymshark

The Marketing Plan : Gymshark

Table of Contents
INTRODUCTION...........................................................................................................................1
Purpose and importance of the marketing plan for an organisation............................................1
Environmental and competitors analysis using PESTLE, Porters five forces and Internal
issues...........................................................................................................................................1
SWOT analysis of Gymshark ....................................................................................................4
SMART objectives for improving market share ........................................................................5
Marketing strategy based on segmentation and positioning.......................................................6
CONCLUSION................................................................................................................................7
REFERNECES ...............................................................................................................................8

INTRODUCTION
A marketing plan is defined as a comprehensive document which describes marketing
and advertising efforts for the coming years. It consists of all business activities that are involved
in completing a particular marketing aim or objective within a given time frame. In the following
assignment, marketing plan and it's purpose is described (Blakeman, 2018). The company
considered in accomplishing this assignment is Gymshark. It is a online fitness clothing brand
tarted in the year 2012 by Ben Francis. This brand is sold over 177 countries including USA
where it makes a profit share of 40%. This assignment explains the PESTLE, Porters five forces
model and internal issues of this brand. A SWOT analysis of Gymshark is done for knowing the
opportunities that can help in increasing the market share. Several SMART objectives are are
made for the improvement of market share of this brand. A marketing strategy is prepared based
on the targeting and positioning and at last marketing mix of brand is explained.
Purpose and importance of the marketing plan for an organisation
A marketing plan is defined as a document that is created by managers and leaders or
marketing professionals. This helps in guiding the marketing department of the organisation to
implement some necessary steps that can be aligned with objectives and strategies of marketing.
The main objective of marketing plan is setting the company on a particular course in
marketing. The goal of marketing are aligned with broader objectives of the company. A
company requires marketing plan for it's growth and development of strategies used for
increasing market share. The other objectives of marketing plan are increasing customer base,
increasing customer awareness and building favourable attitude. A marketing plan will help
Gymshark in making SMART objectives and strategies to be implemented in it's organisation for
making profits and expanding market share (Getkate, 2015). The objective element of marketing
plan will help Gymshark for ensuring all marketing investments have a specific target.
Environmental and competitors analysis using PESTLE, Porters five forces and Internal issues
PESTLE Analysis
A PESTLE analysis is defined as a tool or framework used for analysing and monitoring
the macro environmental actors which have impact on performance of organisation. This
analysis is helpful in starting a new business or when companies are expanding on foreign
market. The PESTLE analysis of Gymshark is given below-
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Political- This factor describes at what degree a government intervenes in the industry or
economy (Haemers, 2016). Government policies influences business activities of the
organisation. Gymshark will be affected by various government policies, corruption, political
stability, tax policy, foreign trade policy, labour laws, environmental laws, trade restrictions, etc.
These factors have to be taken care by Gymshark while assessing attractiveness of a potential
market.
Economical- Th economic factors are determinants of performance of economy. The
economic factors can impact directly or indirectly on a company. These economic factors that
can impact Gymshark in expanding market share are exchange rates, economic growth, interest
rates, inflation rates, unemployment rates and disposable incomes of customers. These affect the
purchasing power of customers and pricing way of the company.
Social- The social factors include environmental elements that affect a customer's buying
behaviour. Organisations are affected by demographic characteristics, customs, norms and values
of population in which an organisation is operating. Gymshark will be affected by population
trends like age distribution, population growth rate, career attitudes, health consciousness,
cultural barriers, lifestyle attitudes, income distribution and safety emphasis. Economic factors
are essential for marketers of Gymshark when they are targeting a particular group of customers.
This also provides information about local workforce and ability of them to work in certain
situation.
Technological- These factors involve pertains to innovations in technology which affects
market favourably or unfavourably and operations of the company. These factors can be defined
as level of innovation, research and development activity, technological change, amount of
technological awareness of a market and automation. These factors will help Gymshark in
making various decisions like entering in a certain industry or not, to launch a product or not and
outsourcing of production activities. When the marketers of Gymshark have knowledge about
technology, it will prevent this company from investing huge amount of money on development
of diminishing technology.
Environmental- The environmental factors like weather, climate change and
environmental offset affects various industries (Hegner and Getkate, 2015). The growing
awareness of effect of climate change on industries affects the operation and products of a
company. These elements are important because of various reasons like pollution targets,
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increasing scarcity of raw materials and carbon footprints targets set by government. Gymshark
must involve in Corporate social responsibility and sustainability activities for enhancing brand
image and value.
Legal- There are different laws that affect decisions of an organisation. It is important for
companies which are expanding globally to know about laws of different companies in order to
trade ethically and successfully (Herrera, 2018). Gymshark must consider different laws like
antitrust laws, discrimination laws, consumer protection laws, employment laws, consumer
protection laws, health and safety laws and copyright and patent laws. Every country has its own
set of regulations for operating a successful business. Gymshark must be aware of any potential
change in legislation in order to prevent ant legal conflict. It is advisable for Gymshark to have a
legal advisor for helping if any legal conflict takes place.
Porters Five Forces model analysis
This is a model given by Michael E. Porter in the year 1990. This model identifies and
analyse the competitive position of an organisation in marketplace. This model helps companies
for determining extent of profitability and attractiveness of the industry. There are following five
forces that affects any company-
Threat of new entry- It is difficult to become successful in competitive market and there
is always a threat of a new business entering in the sector. Companies require to invest a huge
amount of capital in research and development for continuously enhancing their product with
new features and attracting customers. Gymshark must develop and keeps on innovating it's
products to grab attention of customers.
Threat of substitution- Substitution is defined as product or service that offers same kind
of benefit. This may be a great loss to company because if any new product with more reliability
and features enters a market, then customers will chose that product over the old ones. Therefore
it is advisable for Gymshark to innovate it;s products on daily basis for sustaining in market.
Buyer's power- The buyer power is defined as potential buyers that can manipulate the
price of the product or service according to their convenience (Juhlin and Soini, 2018). It is
advisable for Gymshark to have a strong command over quality and reliability of it's products for
maintaining a competitive advantage at marketplace. The buyer's power increases when there are
more number of suppliers. Gymshark deals with gym costumes, vests, hoodies, T-shirts and
leggings and pricing of these products should be précised in order to increase it's customer base.
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Supplier's power- Supplier power means there are less number of suppliers of the
product and more number of customers. In the given case study it is given that Gymshark
outsources it;s products from China because it benefits the company on cost basis. This shows
that it has a high command over suppliers. Gymshark influences suppliers to provide them
material at a reasonable price.
Competitive rivalry- This is defined as competition of the company with other
organisations of same sector (Kingsnorth, 2019). In the case of Gymshark, It has a high potential
in meeting demands of customers. The products offered by this brand are of high quality and this
increases the potential in competitive marketplace.
Internal issues faced by Gymshark
Gymshark is a leading brand that offers gym wear for people of different age groups.
This brand faced many problems while operating in foreign countries. The major issue that this
company faced is they do not have any retail store rather they are operating online. This
organisation has benefits of selling online in UK but not in other countries. That is why the
marketing plan is essential for increasing customers base by developing retail shops.
SWOT analysis of Gymshark
A SWOT analysis is defined as a framework used by organisations for developing
competitive position in market. In order to analyse the growth of company and increasing market
share, it is essential to evaluate the SWOT analysis. This will help Gymshark to know
opportunities and hurdles that have to be overcome for sustaining longer in marketplace.
Strength- It includes those factors which reflects a strong brand image and reputation.
These are internal and positive factors present in the company (Kotler, and Et. Al. , 2017). These
are those variables which are in control of the management of company.
Weakness- This includes negative factors that affects strength of the company. This
factors must be improved by the company in order to maximise competitiveness in market
(Lourenço, 2018). This requires tangible assets should be there in an organisation such as
equipment or money.
Opportunities- These are external factors of the business environment which contributes
in success of the organisation. This includes information about elements that help in market
groeth and development of the organisation.
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Threats- Threats are external factors which cannot be controlled by the management of
the company. The managers and leaders have to implement contingency plans for dealing with
problems that occur due to these factors.
SWOT of Gymshark
Strength Weakness
 They are outsourcing from china
which indicates that they have high
bargain power to find suppliers.
 They have a stable offering of their
product at reasonable price (Oreski and
Dilaveri, 2017).
 They have to face high additional cost
due to import cost, high investment in
R&D in order to invent new product.
 They have high competition in sports
wear.
Opportunity Threat
 Gymshark has a great opportunity to
develop product for high age group
people. These age group people want to
be healthy and hence they will prefer
sport shoes more.
 Government is also supporting increase
of healthy lifestyle.
 They have high number of competitors
who are operating at same business
line.
 Competitors are providing exactly
same product at same price in niche
marketplace.
SMART objectives for improving market share
Objectives of a company are made in order to measure performance of the company. It
helps in analysing growth of the company and making several strategies that have to be be
implemented within an organisation. SMART objectives are made for Gymshark so that these
objectives can be achieved by the company.
Objectives
 To start offline stores in UK within the time period of three Months to maximise the
market share by 25%.
 To bring focus on new promotional models within the time period of two months for
increasing awareness about their products and improve its brand image by 20%.
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 To focus on the development of new products within three months of time period to cater
the need of old age people and improvement in market share by 20%.
Marketing strategy based on segmentation and positioning
Segmentation, targeting and positioning
The segmentation, targeting and positioning ( STP) in marketing is a framework that
evaluates the process of market segmentation (Sowter, 2018). This is a tool that finds out
buyers in market and these are divided into range of variables that determines characteristics of
market. Gymshark organisation is targeting people of age between 18 and 25 and these focus on
fashion, fitness and music. The clothing of Gymshark is based on characteristics of young
people. The clothing products are cool and comfortable workout apparel. This helps in attracting
more customers.
Marketing is an essential operation of any industry (Paley, 2017). It is necessary for
companies to develop and formulate effective marketing strategies for increasing market growth
of the company. Every marketing strategy developed in the organisation should communicate
features and benefits of product to a target market. This strategy communicates overall value to
the customers. In case of Gymshark they were not having retail stores in countries but hey are
making good money by online marketing of their products. The strategy which can be applied in
this company is a good distribution channel in countries and establishing retail outlets in
different countries. This will definitely help in maximising profits of the organisation. The
distribution in marketing is a classic element of market strategy. This helps in expanding
reaching and growing revenue. Gymshark should have a proper distribution and products from
china must be delivered to retail stores at regular intervals. A word of mouth marketing is also
a good strategy that can be used by Gymshrak for enhancing it's market share. Word of mouth
marketing is defined as the transfer of information from one individual to another by oral
communication (Raleigh and Et. Al. , 2017). Customers should be excited about sharing about
products of Gymshark brand. This is an ancient but effective way of maximising awareness of
products and promoting them.
Identifying marketing mix that help to improve an organisation grow and market share
The marketing mix is defined as set of actions, tactics that are used by an organisation for
promoting brands in the market. The 4P's of market make a marketing mix for any company-
Price, Place, Product and Place. The 4P's of marketing are discussed below-
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Price- This refers to the value of the product. This depends on segmented target, cost of
production, supply and demand and ability of market to pay and other direct and indirect factors.
There are several types of pricing strategies used by companies. The products of Gymshark are
sold at reasonable price to customers.
Place- This refers to a point of sale. It is very important to attract customers for
increasing sales of the company (Selig, 2018). The main objective of a good distribution is
known as a place strategy. Gymshark requires to develop good places where they can establish
new retail store outlet of their brand.
Product – This refers to the physical item that is sold to customers. These products
deliver a minimum level of performance. The products of Gymshark are made very attractive
and comfortable in order to increase customer base of the brand.
Promotion- Promotion is defined as the activities which are involved in advertising and
promoting products in market place (Zikmund and Et. Al., 2017). There are different ways of
promoting products to customers like word of mouth, press reports, commissions, incentives,
awards, emails, pamphlets, websites, etc. Gymshark can include direct marketing, consumer
schemes and word of mouth in promotng it's products.
Marketing mix of Gymshark
Product Gym apparel for gym enthusiastic people. The
products are of unique material and delivery
and return of products and designing of
products is of high quality.
Price Gymshark uses market penetration.
Place Selective distribution
Promotion Pop up stores in UK and Paris, Black Friday
watch list for men and women.
CONCLUSION
A marketing plan is essential for any organisation in order to measure the performance of
the company. This is a comprehensive document that advertises and markets effort of upcoming
years. A SWOT analysis is essential for knowing the opportunities that can help organisation in
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increasing the market share. Several SMART objectives are are made for the improvement of
market share of brands. A marketing strategy is the formulation of effective ideas and objectives
that can help in maximising market share of the brand and marketing mix of brand consists of
4P's product, piece, place and promotion. They should be analysed before entering of company
in a new marketplace.
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REFERNECES
Books and journals
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Getkate, D., 2015. Falling in love with your favourite brand: relationship between brand
consciousness, public self-consciousness, and brand love intensity (Master's thesis,
University of Twente).
Haemers, I., 2016. Success story of a young fitness brand: Social media influence as an indicator
of success in the fitness industry.
Hegner, S. M. and Getkate, D., 2015. Falling in Love with your Favourite Brand: Relationship
between Brand Consciousness, Public Self-Consciousness, and Brand Love.
Herrera, R. D., 2018. Positive Deviance as a Framework for Understanding Motivations and
Barriers to Exercise for University Students at Campus Recreation.
Juhlin, L. and Soini, M., 2018. How do influencer marketers affect brand associations?: a
semiotic Instagram study in the sports fashion industry.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Kotler, P. and Et. Al. , 2017. Marketing for hospitality and tourism.
Lourenço, B. M. C., 2018. Formatos Publicitários mais adequados aos Dispositivos Móveis:
Análise do Vídeo Vertical.
Oreski, M. and Dilaveri, A., 2017. Good vibes? The effect Brand Experience has on Attitudinal
Brand Loyalty through Social Media.: A Quantitative Study.
Paley, N., 2017. How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.
Raleigh, G. G. and Et. Al. , 2017. Service plan design, user interfaces, application programming
interfaces, and device management. U.S. Patent 9,557,889.
Selig, G. J., 2018, August. It Governance—An Integrated Framework and Roadmap: How to
Plan, Deploy and Sustain for Competitive Advantage. In 2018 Portland International
Conference on Management of Engineering and Technology (PICMET) (pp. 1-15).
IEEE.
Sowter, C. V., 2018. Marketing high technology services. Routledge.
Zikmund, W. G. and Et. Al., 2017. Marketing Research: Asia-Pacific Edition. Cengage AU.
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