Gymshark Marketing Plan: Analysis of PESTLE, SWOT, and STP Model

This report provides a comprehensive marketing plan for Gymshark, an online fitness clothing brand. It begins with an executive summary and an introduction highlighting the importance of a marketing plan for Gymshark's success. The report then delves into environmental and competitive analyses, employing PESTLE analysis, Porter's five forces model, and SWOT analysis to assess the external and internal factors influencing the brand. Key findings from these analyses inform the formulation of specific, measurable, achievable, relevant, and time-bound (SMART) marketing objectives. The report further outlines a marketing strategy based on STP analysis (segmentation, targeting, and positioning) and examines the 4Ps of the marketing mix. Recommendations are provided to address increasing competition and internal issues, such as the lack of physical stores. The report concludes by emphasizing the importance of a well-defined marketing plan for Gymshark's continued growth and market share expansion.

Individual Plan

EXECUTIVE SUMMARY
The present report discusses Gymshark which is a brand of gym wear founded by Ben
Francis in year 2012. The organisation is dealing with some of the issues such as no plans for
opening own store and increased competition in the market. In order to deal with all of them it is
very important for Gymshark to formulate a marketing plan to market all the products and attract
large number of customers. For this purpose, manager’s different aspects such as environmental,
competitive and internal analysis are determined in this report. These are conducted with the help
of different tools such as PESTLE, SWOT and Porter's five forces model. All of them helped
managers of Gymshark for successful formulation of a marketing plan. STP model is also used
for the purpose of formulating marketing strategy which covers three different elements
segmentation, targeted customers and promotional activities. Different elements of marketing
mix are also analysed in this report in order to fulfil needs of customers and measure strength of
the company. As competition in the sector is increasing massively so, it has been recommended
to Gymshark to create an attractive marketing plan which can help to deal with competition in
the market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
ENVIRONMENTAL AND COMPETITIVE ANALYSIS.............................................................1
PESTLE analysis.........................................................................................................................1
Porter's five force analysis...........................................................................................................3
SWOT ANALYSIS.........................................................................................................................5
SWOT analysis............................................................................................................................5
MARKETING OBJECTIVES.........................................................................................................7
Objective 1...................................................................................................................................7
Objective 2...................................................................................................................................7
Objective 3...................................................................................................................................7
MARKETING STRATEGY............................................................................................................8
STP analysis.................................................................................................................................8
MARKETING MIX.........................................................................................................................9
4 P's of marketing........................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing plan is a document which consists detailed information of organisation's
proposed marketing activities. It is as important as business plan because without it, business
entities cannot aware customers regarding all products that are sold by them. In order to be on
top of industry all companies are required to formulate it in a proper and structured manner so
that all predetermined objectives could be achieved. Marketers create it by analysing various
factors such as market conditions, latest trends, customer's taste, preferences, requirements and
needs. All of them helps to form an effective marketing plan which could be implemented to
attract large number of patronages (Aremu and Saka, 2014). Main purpose of it, is to spread
awareness of products and services which are sold by company. Organisation which is selected
for this project is Gymshark which is an online fitness clothing brand. It was founded by Ben
Francis in year 2012 at the age of 20. Marketing plan is very important for Gymshark as it can
help to reach maximum number of clients and aware them regarding all products that are sold by
it.
This report covers various information such as application of different techniques
including PESTLE, Porter's five forces, SWOT analysis for the purpose of environmental,
internal and competitive analysis. Formulation of SMART objectives, development of marketing
strategy which is based upon STP and elements of marketing mix are also discussed under this
assignment.
ENVIRONMENTAL AND COMPETITIVE ANALYSIS
PESTLE analysis
Environmental analysis: It is vital for all business entities to analyse environment where
it is executing business activities. For this purpose, PESTLE analysis can be conducted. All
elements which of it that are analysed for Gymshark are as follows:
 Political: There are various types of political situations which are affecting Gymshark
such as Brexit which has left impact upon importing of products which are sold by it.
Some of the political parties take interest in improvement of health of country which
enhanced customer's interest in sports brands such as Gymshark (PESTLE analysis.
2019).
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 Economic: Factors such as inflation, deflation and taxation affect economy of UK which
impacts sales of Gymshark as it is mainly established in UK. Fluctuation in these
elements leave effect upon purchasing power of customers and at that time if organisation
is not able to meet it then it can result in decreased sales.
Illustration 1: PESTLE analysis, 2019
§
(Source: PESTLE analysis, 2019)
 Social: Buying behaviour, preferences, needs, requirements and cultures of customers are
part of such factors which are required to be focused by Gymshark in order to operate
business successfully. It is selling its products to international clients and to satisfy them
organisation is required to modify its strategies according to region where it is selling
products. It can help to attract large number of customers (Baker, 2014).
 Technological: Innovation and latest technology are such factors which are focused by
customers. Nowadays people are becoming more friendly to technology as it improves
their experience. In order to satisfy clients and meet their requirements Gymshark can
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comply with new trends in technology that are related to clothing and can also use digital
media to aware customers regarding them.
 Legal: Different types of laws, rules, regulations such as fair labour, intellectual property
rights, safety standards etc. are legal factors. All of them should be focused by Gymshark
in order to operate business without any governmental interference.
 Environmental: Environment protection laws are considered as part of such factors. In
UK such type of law are very strict and for all companies it is vital to follow them.
Gymshark is using environment friendly packaging, use eco manufacturers and have
waste disposal within company helps it to execute operational activities properly in UK
(Belmonte, 2014).
Porter's five force analysis
Competitive analysis: It is a process which is used to determine competition in industry.
For this purpose, business entities can use Porter's five forces model which helps to identify
existing rivalry, substitutes, new entrants, bargaining power of supplier and buyer etc. All
elements of this analysis for Gymshark are as follows:
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Illustration 2: Porter's five forces model, 2019
(Source: Porter's five forces model, 2019)
 Existing rivalry: It refers to competitors that are available in industry and affecting
business activities. Clothing market of gym wear is dominated by Nike, Adidas etc.
which are considered as major players of industry. Threat of existing rivalry for
Gymshark is very high as there are end number of companies that are dealing in same
products (Porter's five forces model, 2019).
 Threat of new entrant: Entering in a clothing sector requires huge money and human
capital. There are various new brands such as Gymfuse are launching in same market and
also promote themselves online. Threat of new entrant is moderate for Gymshark because
of new brands in same sector where it is operating its business operations.
 Threat of substitutes: As there are end number of brands that are operating business
under clothing for gym wear sector so they launch new and innovative clothes that may
grab attention of customers. Hence, threat of substitutes for Gymshark is high because a
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competitor may capture its market share by introducing such products which could be
used by replacing Gymshark's items (Chernev, 2015).
 Bargaining power of suppliers: In clothing sector there are end number of suppliers
which results in low power of them to bargain. In this situation Gymshark can switch to
other suppliers if one is providing material on high prices.
 Bargaining power of customers: As there are end number of brands that are dealing in
gym wears so bargaining power of customers is very high. In order to retain its
customers, it is vital for Gymshark to meet their requirements and set appropriate price
for products.
Internal issues: It is essential for Gymshark to be aware of internal issues of company so
that effective strategies can be formulated for the purpose of dealing with them. All internal
issues of organisation are no plans for wholesale and opening its own brick and mortar store. In
order to enhance profitability and visibility it is very important to operate own store.
SWOT ANALYSIS
SWOT analysis
SWOT analysis is a tool which is used by business entities for the purpose of analysing
different elements such as strengths, weaknesses, opportunities and threats. All of them for
Gymshark are as follows:
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Illustration 3: SWOT analysis, 2019
(Source: SWOT analysis, 2019)
Strengths Weaknesses
 Price of products that are sold by
Gymshark is affordable by clients.
 Trend focused products are sold by
company in technical fabrics at retail
price (SWOT analysis, 2019).
 There are no whole sale stockists so it
directly sale products to customers.
 There is no current plan of organisation
to opening its own brick and mortar
store.
Opportunities Threats
 Gymshark has nurtured a style
conscious fan base by sponsoring
popular Instagrammers, bloggers and
Youtubers.
 Gymshark can open its own stores in
 There are end number of competitors in
clothing sector. These are Nike, Adidas,
Ted Baker, H & M, Primark etc. which
can affect its sales.
 As Gymshark do not have its own
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order to enhance visibility of its
products.
shops so it can affect organisation
negatively by reducing number of
clients.
MARKETING OBJECTIVES
Objective 1
To explore wholesale stokists in future in order to increase number of customers by 5%
in next three months.
 Specific: Gymstark is planning to explore wholesale stockists in future.
 Measurable: The goal is formulated to increase number of customers for organisation by
5%.
 Achievable: In order to achieve the goals strategic decisions will be taken by top
managers (Killian and McManus, 2015).
 Relevant: In order to reach to this objective organisation required funding.
 Time bound: This goal could be achieved in next six months.
Objective 2
To open new stores in UK so that profitability can be enhanced by 10% in next 12
months.
 Specific: Gymshark is willing to open new stores in UK.
 Measurable: With the help of this organisation will be able to enhance profitability by
10%.
 Achievable: For the purpose of achieving the goal managers of the firm will form new
strategies.
 Realistic: The objective can be achieved by conducting market research and gathering
appropriate information of market.
 Time bound: The goal can be attained in 12 months (Lidstone and MacLennan, 2017).
Objective 3
To launch new clothes in market which are made from plastic in order to attract new
clients so that market share can be enhanced by 15% in next two years.
 Specific: Gymshark is willing to launch new clothes that are made from plastic bottles in
order to attract new clients.
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 Measurable: This objective is formed to increase market share by 15%.
 Achievable: In order to attain the goal top executives are required to form new discount
policies.
 Realistic: It can be achieved by offering such products to clients that are not sold by
other companies in the sector.
 Time bound: This objective can be attained in next two years.
MARKETING STRATEGY
STP analysis
STP analysis: It is a combination of three different technologies that are segmentation,
targeting and positioning. With the help of it business entities identify best suitable segment and
target customers to launch the new products. It also helps them to analyse such positioning
strategies which can help to establish a good image of company in the mind of customers. In
order to market all the products and deal with the competition Gymshark is required to conduct
this analysis which can help to find appropriate way to formulate marketing strategy (STP
analysis, 2019). All the elements of this model for Gymshark are as follows:
Illustration 4: STP analysis, 2019
(Source: STP analysis, 2019)
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Segmentation: It is the activity in which organisations divide the market in to different
segments. These are consisting of existing and potential customers. While planning to market
products it is vital for organisations to select a specific segment where it will be sold. Afterwards
marketing operations are conducted in order to aware clients regarding all items that are sold by
company (McDonald and Wilson, 2016). There are three different types of segments that could
be chosen by Gymshark in order to sale its products. All of them are described below:
 Behavioural: This type of segment is based upon taste, preference and needs of clients in
which they look for benefits that they are willing to acquire. This segment could be
selected by Gymshark when it is launching products for some specific type of clients.
 Geographic: It is divided on the basis of city, state, region or country. It is mainly used
by organisations when they are willing to expand business in a new area. Gymshark can
select this segment when it is planning to launch its products in a new location (Strauss,
Frost and Sinha, 2014).
 Demographic: It is divided on the basis of age, marital status, gender, ethnicity
education, income level, occupation etc. This segment could be selected by Gymshark
while launching products for a specific gender or age group of customers.
From all the above described segments demographic is selected by Gymshark as it
provides gym wear for a specific age group of clients.
Targeting: Under this stage of STP analysis organisations select targeted customers from
the segment which is being selected previously. Targeted customers of Gymshark are the people
between the age group of 16 to 25 who are fitness freak. All the products that are sold by the
company are focused with them.
Positioning: It is vital for business entities to use new and innovative techniques to
position their products in the mind of customers. Gymshark use social media and online
marketing to spread awareness of items that are sold by it to the clients. With the help of it large
number of clients get attracted towards the company which results in increased sales (Lovelock
and Patterson, 2015).
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MARKETING MIX
4 P's of marketing
Marketing mix: It can be defined as the combination of four different elements that are
required to be taken into consideration by business entities while formulating strategic decisions
for organisation. These are product, price, place and promotion. With the help of all of them
business entities may capture larger market share by satisfying clients by offering them good
quality products at reasonable price. All these components for Gymshark are as follows:
Product: It is very important for organisations to sale good quality products to customers
according to their requirements. With the help of it clients could be satisfied by company and
their retention level can also be enhanced. Gymshark is selling gym wear online and all the
clothes that are sold by it are made from good fabric which satisfy needs of customers. All the
clothes that are trend focused come in technical fabrics.
(Source: Marketing mix, 2019)
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Illustr
ation 5: Marketing mix, 2019

Price: It is very important for businesses to set such prices for products that are
affordable for customers. In order to meet their requirements organisations should focus on the
segment which is being selected by them. In Gymshark economic pricing strategy is used by top
executives as it targets niche market and set affordable price for all the clothes that are sold by it.
With the help of it good relations are built with the customers which results in increased sales of
the company (Marketing mix, 2019).
Place: In order to be easily accessible for client’s organisations are required to find such
place where they can reach effortlessly. For this purpose, a proper location is needed where
clients can get all the items that they are willing to buy. Gymshark is selling all its products
online which an easy to reach place for customers and helps to retain them for a long period as
they get all the items delivered to their door step by company.
Promotion: All the companies promote themselves in order to enhance profitability and
visibility of products. For this purpose, different techniques are used by them so that large
number of clients get attracted toward the company. Gymshark is using various techniques for
the purpose of promotions such as seasonable discounts for customers, gift vouchers on a
particular level of sales, online advertising etc. All these modes help it to retain existing clients
and attract prospects (West, Ford and Ibrahim, 2015).
CONCLUSION
From the above project report it has been concluded that marketing plan is a document
which consists detailed information regarding organisation's activities that are going to be
conducted to market products or services. It is very important for all the companies as it results
in increased sales and profits. In order to formulate a well-structured marketing plan it is vital for
firms to conduct environmental, competitive and internal analysis. All of them could be
conducted with the help of PESTLE, Porter's five force model and SWOT analysis. With the
help of them managers can formulate strategic decisions for future which could result positively.
All of them help to form objectives for upcoming period where enterprise is planning to attain
growth and willing to be developed. For this purpose, SMART goals are created that are specific,
measurable, achievable, relevant and time bound. It helps to enhance performance of company
by increasing profits, sales etc. and establishing a positive market image. While creating a
marketing strategy business entities are required to focus on STP analysis which is a combination
of three different elements that are segmentation, targeting and positioning. All of them are used
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to make a strategy to market product. In order to improve growth and increase market share
organisations should also focus on marketing mix which is a combo of four factors such as
product, price, place and promotion.
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