International Marketing Plan: PureGym's Expansion into Bangladesh

This report presents an international marketing plan for PureGym's expansion into Bangladesh. It begins with an executive summary, followed by an overview of the country's suitability for expansion, including its active adult population and developing economy. The report then analyzes PureGym's value propositions using Mendelow's Matrix and Porter's Value Chain. A detailed SWOT analysis identifies key findings, challenges, and opportunities, considering the conservative culture and growing competition. The marketing objectives are defined for both the organization and its customers, followed by a strategic marketing plan that includes target audience identification, targeting strategies, positioning, and competitive advantages. The report also outlines marketing tactics, including traditional and digital approaches, along with an action plan, financial projections, and break-even analysis. Finally, it addresses sustainability, ethics, CSR, and key performance indicators, along with risk assessment and contingency planning. The report is a comprehensive guide for PureGym's successful market entry into Bangladesh.

Table of Contents
Task
1: International Marketing Plan.......................................................................................................1
The country of choice for expansion...........................................................................................1
1.1 The Value Propositions..........................................................................................................1
1.1.1 Mendelow’s Matrix for stakeholder analysis.................................................................1
1.1.2: Porter’s Value Chain.....................................................................................................2
1.2 Key Findings, Challenges and opportunities.............................................................................3
1.2.1 SWOT Analysis..................................................................................................................3
1.2.2 Key Challenges and Implications.......................................................................................4
Challenges and Opportunities of Opening in Bangladesh.......................................................4
1.3 Marketing objective...............................................................................................................5
For the organization.................................................................................................................5
For Customers..........................................................................................................................6
1.4 Strategic Marketing...............................................................................................................6
1.4.1 Target Audience..............................................................................................................6
1.4.2 Targeting strategy...........................................................................................................7
1.4.3 Positioning......................................................................................................................8
1.4.4 Competitive Advantage..................................................................................................8
1.5 Marketing Tactics..................................................................................................................9
1.5.1 Traditional Marketing Plan.............................................................................................9
1.5.2 Digital Tactics...............................................................................................................10
1.6. Action plan, Financials and Budgets..................................................................................11
1.6.1 Action plan....................................................................................................................11
1.6.2 Budgets and Financials.................................................................................................12
1.6.3 Break-even analysis......................................................................................................13
1.7 Sustainability, Ethics and CSR............................................................................................14
1.8. Measurement, Controls, Risks, Review and Contingencies...............................................14
1.8.1 critical success factors..................................................................................................14
1.8.2: Key Performance Indicators........................................................................................14
1.8.3: Agreeing Marketing Metrics.......................................................................................15
1.8.4: Risks and Contingencies to Risks................................................................................15
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Task 2.............................................................................................................................................15
UPPSALA Model Analysis.......................................................................................................15
2.1.1 Psychic distance: International expansion....................................................................15
2.1.2 Establishment Chain: International Penetration...........................................................16
References......................................................................................................................................17
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Task 1: International Marketing Plan
The country of choice for expansion
PureGym has some of the most innovative gym technologies to promote fitness and has
expanded to over 200 locations in the UK; with such domestic success international expansion
could help the business grow further. After some research and careful thought, I have decided, as
the international marketing consultant for PureGym, to suggest Bangladesh as a possible location
for expansion of their gym internationally because it is one of the most active adult population in
the world (HuffPost, 2012). The country is also a developing one with international businesses
growing rapidly and a young population ready to embrace change (Haroon & Wardad, 2018).
1.1 The Value Propositions
1.1.1 Mendelow’s Matrix for stakeholder analysis
Figure 1: Mendelow Matrix for stakeholder analysis; Source: (Eriksen-Coats, 2018).
The Mendelow Matrix in figure 1 shows the key players are necessary for smooth operations to
take place and high-power levels of PureGym lies in the hands of customers as the Business is
customer-centric. Broadcasters have the least interest and power in the business decisions and the
stakeholders and investors must be informed of how the company is going in Bangladesh.
1
high
highlow
low
Power
Level
Interest Level
A: Minimal Effort B: Keep Informed
C: Keep Satisfied D: Key Players
CEO
Directors
Trainers
Government
Customers
Employees
Banks
Shareholders
Investors
Broadcasters
Competitors

1.1.2: Porter’s Value Chain
Figure 2: Porter’s Value Chain; Source: (Kaplan Financial Limited, 2020).
Primary Value Activities
Inbound logistics: gym materials such as exercise machines and fitness equipment.
Operations: transforming the exercise equipment and facilities into effective work out sessions
at the gym.
Outbound logistics: storing the machinery, cleaning and handling, ordering new equipment,
processing and receiving new orders. Creating new memberships and delivering merchandise.
Marketing and sales: Engaging in effective marketing criteria to target groups.
Services: training, fitness app, exercise videos, personal session, etc.
Secondary Value Proposition
Firm infrastructure: cost savings to PureGym due to provision of essential services only.
Technology development: use of latest innovative gym equipment and fitness technology.
Human resource development: employing personal trainers, offering training, boosting
employee morale.
Procurement: purchasing new designs of equipment as used in the UK.
By meeting the primary and secondary value proposition activities PureGym can achieve its
mission, vision and goals in a timely and measurable manner in Bangladesh.
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1.2 Key Findings, Challenges and opportunities
In order to understand the marketing environment a SWOT analysis has been done for PureGym.
1.2.1 SWOT Analysis
Strengths
Leader in UK market with hundreds of
branches
Flexible membership plans
24 hours operation time
No contract commitment
Full range of latest gym equipment
Access to up to 50 group classes per week
Fast online sign up
Weaknesses
Catered only to low end of the market
Provides only essential services; no fringes
No receptionists or info desks
Low permanent staff
Self-employed trainers
Easy to copy
Change in Culture can cause shock
Opportunities
Expansion in countries with growing
markets
Target other ends of the market
Employ more permanent staff
Engage in more extensive marketing to
attract more customers
Use goodwill to attract affiliation and
investors
Threats
Bangladesh is a conservative risk averse
country
Religious Preaching stunting growth
Not complacent to competition
Coronavirus effects: social distancing,
government laws, demand
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Figure 3: SWOT Analysis of PureGym

1.2.2 Key Challenges and Implications
From the above SWOT analysis, it is clear that the focus of PureGym is on customer satisfaction
and which service and creating a great environment where customers can work out.
Challenges and Opportunities of Opening in Bangladesh
Risk Averse Conservative Country
In Bangladesh people are still not open to exercising together in an enclosed space. Many people
are unfamiliar with exercise equipment and feel uncomfortable going to gyms. It was considered
by middle class families as a luxury. (Burri & Rahman, 2013). It will be difficult to penetrate a
market which is almost a taboo even now. But during 2018-2019, there were over 500 gyms and
fitness centers in Bangladesh (Haroon & Wardad, 2018) after obesity and other health issues
started rising in the country (Burri & Rahman, 2013). This means that now, PureGym can focus
on making people aware of the health benefits of gym and utilize its no contract policy as a
leverage.
Women and Religion in Bangladesh
The country is mostly conservative because 90% of its population is Muslim and women are not
preferred to exercise outside; there has also been wide controversy about a film which portrayed
a female surfer in the country because it has believed to ‘hurt religious sentiments’ due to the
masculine structure of the female portrayed in the movie (Reuters, 2019). PureGym will likely
face problems when attracting female customers and therefore needs to focus on grabbing the
attention of potential female consumers. However, there is a lot of obese women in Bangladesh
and they should target their marketing tactics specially for this market. For example, showing
that many female bodybuilders are emerging in the country and portraying Bangladesh’s first
female body building competition and showing women how they can get in shape too. (Reuters,
2019).
Growing Competition
Although it is true that the gym culture is still one which is not popular among all walks of
people in Bangladesh; there is already a number of gyms which operate in the center of Dhaka.
As of 2020, 34 well known gyms provide services to their customers (Hosan, 2020). There have
been recent bodybuilding hypes among both men and women in Bangladesh recently as 35% of
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Bangladeshis now live in urban areas and much of this population are young. The biggest fitness
centers offer world-class services in their gyms at Jamuna Future Park and Bashundhara City
Shopping Mall and there are several international chains such as VLCC from India as well
(Haroon & Wardad, 2018). These fitness centers have head-started the ‘wellness Business’ in
Bangladesh already and may pose a challenge for PureGym when they come. Despite the
competition, it is quite clear that not many gyms are like PureGym in Bangladesh. While there
are some gyms which claim to provide 24-hour services, many of them don’t have flexible
membership plans. The online platform for most gyms is also very slow and not up to date.
Others have low number of classes or coaches or have out of date or overused equipment.
Finding the Right people and Technology
Many of the technologies used in UK is still unfamiliar to the Bangladeshi market and therefore
it will be a challenge for PureGym to immediately make customers suppose in their mid-30s
understand how to lose weight using the machines. There may be additional costs of transporting
the exercise equipment to Bangladesh if they are unavailable. Additionally, the company may
face problems in finding local trainers who have the appropriate skills which they require.
Management may also be lack expertise knowledge in running gyms.
1.3 Marketing objective
In the UK the brand positions itself as ‘the customers' gym of choice at the low end of the
market.’ And a focus on fast service and low cost (Hill, 2015). The marketing objectives of
PureGym will need to be catered to the needs of the Bangladeshi population.
Based on the corporate objective of PureGym, SMART marketing objectives have to be made.
For the organization
Specific: increase fitness market penetration every quarter by adhering to company visions and
goals to provide top notch differential service.
Measurable: increase sales by 15% by the end of the year leveraging on PureGym’s customer-
centric view.
Attainable: obtain a positive image and at least 500 customers by year end through quality
service.
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Realistic: look towards opening more branches in Bangladesh by attracting local clients and
investors.
Timely: achievable with limited staff.
For Customers
Specific: make sure customers’ expectations are met
Measurable: create platform for customer opinions expression
Attainable: ensure customer’s get available time slots when desired.
Realistic: remain true to ethics and honestly in advertising.
Timely: check up on customer satisfaction levels weekly.
1.4 Strategic Marketing
Strategic marketing can be carried out effectively when the contents of PureGym’s marketing
strategy are clearly identified and understood. The strategic marketing plan must include precise
objectives, targets and growth plans which lead to profit growth, expansion and ultimately
sustainability in the market (Kirk, 2019).
1.4.1 Target Audience
Determining the target market in Bangladesh requires us to look at certain geographical,
psychographic and demographics of the country.
GEOGRAPHICAL
Area
Locations around the city where affluent and middle-class people live is a good choice because it
is convenient for them to travel a short distance and go to gyms and afford the service. There are
many commercial spaces available close to residential housing available in this area as well.
DEMOGRAPHIC
Age
Primary target group: 24-36+
Secondary target group: all others
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Gender
Everyone is welcome; 49% female; 51% male.
Income Range
People who have income above TK.15,000 will be the target consumers.
Occupation
Bodybuilders, athletes, working men and women
PSYCHOGRAPHIC
Psychology: Health conscious people;
Hobbies: experiencers, appearance concerned women.
1.4.2 Targeting strategy
Differentiated marketing
Since the company is targeting the hustling youth in Bangladesh, they must apply some form of
differentiated marketing to grab their attention. Such as radio advertisements which potential
customers may listen to while being stuck in traffic while returning from work or billboards near
roads where there is heavy traffic.
Mass marketing
Talk shows and daily soaps are very popular in Bangladesh; PureGym can use Tv advertisements
during late night talk shows to attract potential customers or during evening soaps to attract all
soap-watching customers and if they have large marketing budget, they can air throughout the
day on multiple TV channels and handout leaflets around the city.
Niche marketing:
They can air their adverts on Television and radio during sports programs and/or on sports
channels to attract athletes and bodybuilders.
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1.4.3 Positioning
The position of PureGym in Bangladesh will depend on its target segment and the perception of
customers about similar services provided by competitors. This can be illustrated by a
positioning map.
Figure 4: Positioning map; Source: (Dibb & Simkin, 2003)
This visualization shows the market position of PureGym compared to other gyms in
Bangladesh. It is clear to see that PureGym has some competition in the high quality-low price
segment. The company can use this information to find out the strategies they need to implement
in order to increase their customers and market share and consequently increase profits and
ensure sustainability in the fitness industry.
1.4.4 Competitive Advantage
Despite competition in the market, PureGym has some Distinct competitive advantages:
1. Large number of potential customers: the company has over 200 gyms in the UK and
can now target the 50 million target people who might want to avail their services.
2. 24-hour service: there are very few 24-hour gyms in Bangladesh
8
high
highlow
low
Price
Quality
Hard Knock’s Gym
Fitness Plus
BD
Lion’s Fitness &
Gym
Max Burn
Gym
PureGym
Automan Fitness Gym
Power Point Gym
VLCC
Gym Plus
Gold’s Gym

3. Latest technological innovation: Bangladeshi youth like to follow western culture and
therefore technology from UK might be an attractive selling point.
4. Experience in the fitness market: PureGym can use its past experience to tackle
unforeseen events to come such as managing customer expectation and effecting
marketing techniques.
1.5 Marketing Tactics
Marketing research is essential before any sort of expansion plan is implemented by companies
because it helps to identify who the customers are and what they want which in turn can help in
determining how the brand should be positioned in the market (Clow & James, 2014).
The marketing tactics can be divided into two parts: the traditional marketing plan and the digital
tactical plan.
1.5.1 Traditional Marketing Plan
The 4 C’s of marketing are then developed from this to become consumer-centric from a
product-centric approach. The 4C’s of marketing can be used to device the traditional marketing
plan of PureGym. It is an extension or modification of the 4P’s of marketing (Delcros, 2019).
The 4 C’s of marketing
CUSTOMER: the products of a company must satisfy the need, wants and demands of a
customer.
PureGym provides customers with a range of services which customers desire from a gym such
as entrance pods, vending machines, extra lockers, functional training areas, fixed resistance
weights, cardio equipment, fitness app, etc. customers are normally joyed by the array of value
addition the company provides.
Tactic: the company can look towards providing its products in the UK in less saturated areas as
well as expanding globally in locations such as Bangladesh.
COST: costs of obtaining products must be less than the opportunity costs of forgoing the next
best alternative.
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PureGym positions itself as a brand providing ‘high quality-low cost’. Its members pay as little
as £20 pounds per month on average and have no contracts. The flexibility pools in lower end
customers.
Tactics: pool in more customers by offering couple packages, discounts for group memberships,
family plans.
CONVENIENCE: the right products must be readily available at the right place, at the right
time and value for consumption.
PureGym is accessible 24x7x365 and the gym equipment can be availed by anyone who has
appropriate access to them.
Tactics: the gym can start online live sessions which can be availed upon subscription for those
who choose to work out from home at the same time they can offer diet plans and advice from
personal coaches upon appointment and trial sessions for those who are confused if PureGym is
the right choice.
COMMUNICATION: there must be an option for two-way interaction between buyer and
seller so that their needs and wants can be known.
The PureGym website has no system of real time assistance with any executives rather it has a
range of preset questions and frequently asked questions page which potential customers can
avail.
Tactics: set up a mechanism through which customer’s out of the ordinary questions can be
answered rapidly from the website and assistance is available from anywhere anytime. They can
also have regular meeting sessions with customers where they can interact with all members of
the PureGym team and know the organization better.
1.5.2 Digital Tactics
In the age of internet and social media, online presence is very important for any organization to
thrive. There are a number of ways PureGym can do this
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