GYMSHARK Expansion: International Marketing Strategy Analysis

This report provides an analysis of GYMSHARK's international marketing strategy. It identifies key trends in the global environment using PESTLE analysis, focusing on political, social, and technological factors impacting the company's operations. The report proposes market entry into Vatican City using a franchising strategy, highlighting the benefits of branding, local knowledge, and efficient growth. It also applies Hofstede's cultural dimensions to understand the chosen market. Furthermore, the report examines the marketing strategies adopted in foreign markets, including STP analysis (segmentation, targeting, positioning) and the marketing mix (product, price, place, promotion). The report concludes that PESTLE analysis is crucial for companies, technology significantly impacts organizations, and marketing mix helps in defining product and pricing strategies for new markets, with franchising being an efficient entry method.

GYMSHARK
international marketing
report

Table of Contents
INTRODUCTION ............................................................................................................................3
Generic trend of global environment that affect the GYMSHARK and impact of trend on
international market.......................................................................................................................3
Business expansion of GYMSHARK with appropriate entry strategy.........................................4
Marketing strategies adopted in the foreign market......................................................................6
CONCLUSION .................................................................................................................................8
REFERENCES...................................................................................................................................9

INTRODUCTION
Generic trend of global environment that affect the GYMSHARK and impact of trend on
international market
There are may environmental trend which impact the GYMSHARK. The external factros
such as political, social, technology, economic and many more had great impact on the respective
company (Baaij, 2018). Some of these factors are discussed below:
 Political factors- The global political affairs effect distribution and operation of the retail
companies. For making it important having good awareness and understanding of different
changes in the government decisions which are being made (Buheji, 2018). In context of
GYMSHARK, government of UK is becoming more concerned for people’s health and
their well being over the times. In July, 2016, government specified that . increasing
physical activity has potential for improving mental and physical health of individual,
communities, families and entire nation. With this theory, the respective company that is
GYMSHARK, get an advantage from the health push as it increase the sale of heir
activewear.
 Social factor- It is increasing significant for the business organisation to understand
demographic of market and the environment, in which a business operate for adopting and
improving the product and marketing accordingly. It is analysed that around 15% adults
uses a private fitness and health club. With this continuously growth there is an increase in
the demand of fitness and gym apparel, therefore growing the customer base for the brands
like GYMSHARK. The society is becoming more casual that the sports clothing is
practical as everyday wear. Public follow this trend and wear the garments like gym
leggings to run errands and go to work. Therefore, GYMSHARK observe a rise in
customers who are not the gym goers, who instead opt for the GYMSHARK purely for
practicality reason instated of the performance (Das and et. al., 2022).
 Technology factor- To retain customer and attract a new customer base, is it very
important for the business organisation to keep up with ever developing technology. Social
media is becoming an easiest way for shopping. Instagram and face books are mostly used

by the users. GYMSHARK already known for its significant Instagram appearances, and
the snap chat can become next big platform to utilize. Omni channel retailing is essential
for the clothing retailer in present time as customers frequently search the information in
store and their mobile device in order to get more information about all the details
(DASHPER and SIGURÐARDÓTTIR, 2021).
Trend which is most important in this industry.
It became very clear that in term of the technological improvement and advancement this
industry is fast changing. Therefore, it is very essential for the companies working in this industry
to follow and keep an eye on these advancement to stay competitive. GYMSHARK presently only
offer the online shopping option to its customer as the buyers have a low confidence during
purchasing because they cannot see the product physical before purchasing them
BCG matrix is a strategic management toll which help to analyse position of the strategic
business and potential it offer. In context of the GYMSHARK its BCG matrix help it to decide on
strategic which can be enforced for their strategic business units. GYMSHARK athletes evince
strong devotion of fitness lifestyle (Li and et. al., 2019).There is clear manifestation of its brand.
The respective company at moment only offer the athletic apparel, its athletic footwear are very
lucrative niche. Its some product are come sin the categories of DOG as the company has to
reduce their price because of their competitors. There are possibility of entering such type of
company's product to which the respective company faces loss.
Business expansion of GYMSHARK with appropriate entry strategy
The respective company that is GYMSHARK should enter in Vatican City as it does not
operating in this city. By entering in this market it can expand its business. To enter in this market
GYMSHARK should adopt the franchising method. This method is very beneficial for the
company because of many reasons which are discussed below:
 Branding- The franchisor is responsible for their best effort in promoting and advertising
company's brand name. Hence, a franchise business is better branded and advertised when
compared to the traditional business. In relation to GYMSHARK, branding and

advertising cost is shared by all franchisees, overall cost of the branding is lower in the
franchise model.
 Local business knowledge- Different country has different culture, market and language,
for the organisation it is very difficult to understand these difference. In this case
franchising is very effective mode of entry. In context of GYMSHARK, if it will open its
franchising in other country then the franchisor has knowledge of the local country and
ability to work with franchisees in order to become aware of knowledge in local market
which help the organisation (Nishida and Yang, 2020).
 Efficient growth- The opening of first unit is any business is very time consuming and
costly. Opening of second unit is not so much expensive. In context of GYMSHARK, if it
will open its franchisee in another country then it will be not so costly as the burden will be
shared with the other business owner, due to which this process will become more
efficient.
Hofstede national dimension to choose the foreign market
It represent the difference among countries culture. In context of Gymshark, Vatican City
is itself of a great cultural significance. There are some dimension which are mentioned below:
 Power distance- It is degree of the society acceptance or rejection of organisational
unequal distribution of power. In high power distance culture, there is great respect for the
age, title and status. Gymshark is a UK based country, and society of this nation believe
that the inequalities among people should be reduced. Whereas, Vatican city tend to
prefers the equality and decentralisation of the power and the decision making.
 Uncertainty avoidance- It measure the degree of society's tolerance and uncomfortably
with changes, risk and situational uncertainty. UK ha low score on the Uncertainty
Avoidance that means if a nation are happy to wake up and do not know what day bring
and people are happy to make it as they go along ( Tariverdi, Poursoltani and Kordlu,
2018).
 Individualism collectivism- In this, it is the degree to which the society emphasises
individual's achievement and self interest, versus interest and accomplishment of group.
UK is highest of all the individualist scores and beaten only by few of commonwealth
countries. In this dimension, Vatican city is highly individualist culture. It translate into

the loosely Knit society where the expectation are that individual look after themselves and
their families.
 Masculinity femininity- Is the level a society value assertiveness and the materialism
versus felling , quality of life and relationship. Vatican city is highly success oriented and
driven. The children get taught from early age that the competition is beneficial and it is
essential to be winner. In UK, behaviour in the school, play and work are based on shared
values which people should strive in order to be best they can be and winner take all.
 Time orientation- It is the level to which a society emphasises long term and short term
objectives. Dimension of Vatican city show that their culture is pragmatic. People believe
that the truth depend on situation, time and context. They show their ability to adopt the
traditions easily into the changed condition.
Marketing strategies adopted in the foreign market
STP analysis
It is a set of the framework summarizes and analyse process of the market segmentation.
This tool find out that which are the customers in a market segmented and profiled as per the
range of variables, that determine the characteristic of market. In context of Gymshark its STP
analysis is given below:
 Segmentation- it is process of dividing customers into a smaller group on the basis of
certain characteristics. Gymshark marketing strategy is based on the demographic
segmentation. It divide the market on the basis of age and age (Tu and et. al., 2020).
 Targeting- In this, the organisation picked for identifying the best opportunity for their
business. it has targeted the its customers the age between 18 to 25 and male or female
whose lives rotate around the fashion, fitness and music. It target the teenagers and young
adults.
 Positioning- It is consider as an opportunity which help the company respond to unmet
desire and need in the market that company's product can fulfil. on the basis of position
map, Gymshark clothings are designed for comfortable and cool workout and allow the
customers for ultimate performance. The respectvie company would be able to attract
some more customers with a wide range of women nd men accessories

Marketing mix
It is a set of the action an organisation undertake to build and promote their product and
services to its target customers. This tool help he company in ensuring that there are able to
provide their customer the right service and product at correct time and right poace for appropriate
price.
 Product- It is a services or good which is offers as a solution in order to satisfy the
customers needs and demand. In context of GYMSHARK, it offer the fitness accessories
and garments for women and men. It offer t shirt, hoodies, leggings and vests. It has done
well in the department of Vegan clothing. They have highest possible score to being
animal friendly. It offer wholly Vegan product line (Wang and et. al., 2020).
 Price- It is amount which the customer is willing to pay for the product of company. It
help to determine profit company will be able to generate. There are different type of
pricing policies. In relation to Gymshark, It adopting the affordable pricing strategy as it
prices are cheaper than average. Pricing exhibits its approach towards young target
audience. It fix low price for laggings, tank tops, t shirts, hoodies and many more. It is
adopted the penetration pricing policy which is affordable by the customers.
 Place- It is about distribution centre of company's product and methods used to distribute
product to customers. It should be easy and accessible to customers. In context of
Gymshark , Its offices are situated in Hong Kong, UK and US. It has launched
GYMSHARK Lifting Club, innovation hub and a gym on same site s their headquarters in
the Birmingham. Its former warehouse turned into around 55000 sq. ft. studio by the
design firm Oktra.
 Promotion- It refers to method an organisation uses to get customer's attention to their
product. It include the customer services, advertising, sales promotion and public relation
etc. For the promotional strategies GYMSHARK uses social media platforms such as
Instagram, twitter , Facebook and many more. It using the influencers to promote its
product. It teamed up with the social media influencers like Nikki Blacketter and Lex
Griffin (Ghantous, Das and Chameroy, 2018).

CONCLUSION
From the above report its is concluded that the PESTEL analysis is very essential for the
company as it impact the whole organisational adversely. Technology impact the organisation
very vast as it changes very fast. To enter in a new market it is very essential to undertake
marketing mix as it help the company to for their price and define their product. The franchising
entry mode is very efficient methods for the organisation.

REFERENCES
Books and Journals
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Turbulent Markets. Emerald Group Publishing.
Buheji, M., 2018. Handbook of Youth Economy. AuthorHouse.
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Wang, J.J. and et. al., 2020. Conflict aftermath: Dispute resolution and financial performance in
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