GymShark Marketing Strategy Case Study: Principles of Marketing

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Assignment 2
Principles of Marketing
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Executive summary
The case study has introduced about the marketing sales of Gym shark and marketing objectives
of the organisation. The current situation of the organisation is introduced through different
models and theories. This has helped to determine the internal environment which has
highlighted in respect to the potential future of the organisation.
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Contents
Introduction......................................................................................................................................4
Pestle analysis Gym shark...............................................................................................................4
Porter's five forces Gym shark.........................................................................................................7
Internal issues Gym shark:...............................................................................................................9
SWOT analysis of Gym shark.......................................................................................................12
Smart objectives:...........................................................................................................................13
STP analysis...................................................................................................................................14
Marketing mix (4p)........................................................................................................................16
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Introduction
Gym shark Ltd. is one of the finest apparel online retailer In UK which has is
grown a lot of popularity in in affordable gym wear for men and women. The
organisation has always grown in the market through product innovation and
social presence that is influenced to promote the business.
Pestle analysis Gym shark
It is a type of tool which is used by the marketers to monitor as well as analyse the Macro
environmental factors which can impact the organisation. This is a framework that is provided as
external analysis to examine the forces of non controllable companies. This can affect their
operations. Future risk can be minimised by this examination which allows them to do react by
implications.
Political
 Brexit has impacted on product
exports.
 Country’s aid and funding can be
judged based on its political interest.
This can be done by complying with
taxation policies.
 Compliance with tariff as well as
international trade restrictions. This
can be done by maintaining custom
duties as well as currency conversion
Economic
 Economy of countries impact sales of
leisure items.
 There can be two ways of sales which
can affect the gym positively such as
increasing the gym membership and
improving the people’s health.
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rates
Social
 Social media influenced Gym shark
for advertising.
 Lifestyle as well as demographics of
potential consumers of UK are
considered.
 Average income received in UK
serves as the key demographic element
before making pricing decisions.
Technology
 Customer experience can be improved
by the technology.
 Advanced technology of UK can be
used for inventory and warehouse
management.
Legal
 Safety standards or hygiene or fair
labour of suppliers.
 Intellectual property.
 Awareness of design patients of
competitors.
Environmental
 Environmentally packaging
 Waste disposal within company.
 Using more Eco manufacturers as well
as organic products for waiving and
colouring the fabrics.
Political: Gym shark have encountered a huge effect on the political issues which is created by
Brexit. The market can be affected by many ways. Supplying of import goods from abroad and
exporting different type of goods to the customers all over the world as well as the currency’s
power can affect its organisational productivity. Leisure items like gym apparel can be
influenced by the strength of the economy.
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Economic factors: Most of the products of Gym shark is manufactured in 177 countries
especially in UK as they are technology intensive and their cost is very low for creation
(Gymshark ROW, 2019). Proper products must be distributed and this can be done if Gym shark
research properly.
Social: The two different factors we have a huge impact on sale revenue are social media as well
as a marketing brand through social media. Gym shark promote their goods by many ways such
as sponsoring you tubers as well as fitness bloggers (Kauppinen, and Pavlova, 2017). As it is an
online retailer of clothing, awareness and patents are two important things to Gym shark. Gym
shark sometimes change their products by designing it differently but their main focus are health
conscious buyers for the sports lover. Factors like customer attention and loyalty are important to
catch new audience as well as marketing opportunities around the world (Haemers, 2016).
Technological factors: Products must be tested by the Gym shark under various conditions.
They use various technologies such as social media and website as “online sales” to sell their
products.
Environmental: These factors have an effect on Gym shark as it can differentiate it from other
companies. It should need to be considered. Brand image can be e considered by using Eco
manufacturers as well as recycle packing (Bauer, 2016). In order to retail the items it must look
for environmental safety and preservation. For example, it can use the eco-friendly items for
customer protection as well. Complete ban of plastics shall we put as an initiative of environment
safety and protection.
Legal: Gym shark is a world range brand company for supplying sports goods. Some laws and
regulations which are needed to be followed include:
a) Labour laws
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b) Product safety laws
c) Consumer safety product regulations
d) International trade agreements
Gym shark shall occupy ownership of IP systems and intellectual properties (Bauer, 2016). They
should also have infringement, design patents as well as defending their rights against copiers.
The patient can end the business as they have the legal protection.
Porter's five forces Gym shark
The porter's five forces model is a tool for analysing the competition in the business and
developing the Economics of scale for determining the profitability of the organisation. The
model is used by the organisation to understand the competitive forces and the current
profitability by anticipating and influencing the competition overtime. The organisation has
already focused on the niche crowded sportswear market which has created a good relationship
between the customers at every age and increased the customer base and revenue in social media.
Competitive rivalry: In relation to the gym and sports clothes, the organisation has a very high
competition in the market and with the market leaders like Adidas, Nike etc. The competition has
increased the majority of the market share and efficiency in the organisation. The organisation is
still now focusing on gym wear and has become popular with the entrance of the new players
(Barly Lindbo et al. 2018). In relation to the fastest growing company the organisation has
already built a huge market share in competition to rival companies which has provided the
similar products with similar branding.
Threat of the new entrants: The organisation has created high threat for the new entrance with
high quality products and services in the market. The increased popularity of the brand in social
media has promoted the business with an influx of new online gym clothing retailers.
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This has increased the financial and human capital of the organisation (Haug,
2017). The media influencers and vloggers has created a new innovative
revenue for the entrance of the organisation. It has dominated the big
brands like Adidas, Nike in UK which has helped the organisation to enter
into the niche market. This has created a huge gain in the particular segment
of the market.
Figure 1: Porter’s five forces model
(Source: Haug, 2017)
Threat of substitution: The market is constantly changing and the threat of substitution has
always created high risk for the organisation in terms of innovative products and competitors.
Recently the market of UK is quite saturated which has created a lot of options and different
strategies in terms of pricing, style and fashion (Gram, 2017). This has created problem for the
organisation as organisation have to always monitor the market and producer goods, maintain the
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quality and price equally. The organisation has aimed to produce apparel for reflecting the
demand and personality of people who actually use the gym.
Power of customers: The customers always demand innovative products
in this changing world. The customers have high power in the industry which
has help the organisation to create a wide variety of choice and ability for
comparable product in online (Mathooko, and Ogutu, 2015). This has also created
the rational between the social media and achieved a huge value based on
the association.
Power of the suppliers: In the clothing industry, the power of the supplier
has low and insignificant forces. This is because of the largest population of
suppliers which has reduced the impact of individual supply and demand.
The cloth has manufactured the demand of the supplier which has increased
the prices and replaced the loss of quality.
Internal issues Gym shark:
The McKinsey 7s’ model had been used in the study to understand the Organisational marketing
capabilities from different viewpoints. The model has helped the organisation to identify the
internal issues and the need for improving in the transition period.
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Figure 2: McKinsey 7S model
(Source: Ravanfar, 2015)
7s Internal issues identified
Strategy As the organisation focus on systematic and
comprehensive plan of action so it has in short
for the success of the organisation in the
supportive and sustainable way (Ravanfar,
2015). The organisation should focus on
pricing strategy so that it can attract new
customers from middle class as well as upper
class family.
System The physical store system is not as
comfortable as the organisation mainly focus
on the online ordering system with customer
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support. The organisation should understand
about the importance of physical Store for the
customers who do not play for online
transactions.
Staff There are few responsible person for
maintaining the internal operation of the
organisation and thus the organisation should
train each and every individual for
maintaining the internal as well as external
operations and deliveries (Juhlin, and Soini,
2018).
Structure The project decisions are controlled by the top
management. It is important for the top
management to discuss with every employee
about the pros and cons and about the issues
the departments are facing and take decision
according to it.
Skill The employees a maximum skilled with
online selling and social media
communication. Direct relationship with the
customer should be trained among the
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employees (Hjelmeland et al. 2016).
Share values The organisation is very enthusiastic and
focus on the vision for future planning. The
organisation should focus on other variables
and values along with family, progression and
vision.
Style The organisation have very young and
energetic employees which has created a good
environments to work (Shiri et al. 2015). It
should focus on more training and
development to promote organisational leader
and motivate to achieve the goal.
SWOT analysis of Gym shark
The swot analysis was used for identifying the strength and weakness internally in the
organisation and the opportunities and threats were conducted for determining the issues.
Strength Weakness
 It has outstanding outsourcers in China
and therefore the organisation has
increased the bargaining power of the
 The country only manufacturers in
China and no other region.
 It requires investing in certain amount
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