Pure Gym: International Marketing and Sales Strategy Report

This report provides a comprehensive international marketing plan for Pure Gym, focusing on expansion into the Netherlands. It begins with an executive summary and table of contents, followed by an introduction to international marketing principles and their application to Pure Gym. Task One details the marketing plan, including value propositions, key findings (strengths, weaknesses, opportunities, and threats), marketing objectives, strategic marketing plans (segmentation, targeting, and positioning), marketing tactics (traditional and digital), an action plan, and considerations for ethics, sustainability, CSR, controls, and risk management. The report analyzes stakeholders using Mendelow's Matrix and applies Porter's value chain model to identify competitive advantages. Key findings address challenges such as an aging population and economic instability, while also capitalizing on opportunities like the obesity crisis. The marketing plan includes segmentation, targeting, and positioning strategies, along with a financial plan and ethical considerations. Task Two is not fully present in the provided content, but the report concludes with references.

International marketing and
sales

EXECUTIVE SUMMARY
This report presents about the international marketing and sales with respect to the
company name Pure Gym in UK. The company comes up the expansion plan in other country
with the objective to increase its global presence and profitability. This report consists of the
strategic marketing plan including key issues that the company might have to face while
expanding business in Netherland. It also consists key consideration on risk and the control
factors that the company should take into account while entering into the international
market. On findings, it is recommended that Pure Gym should implement its plan in
Netherland sit has immense opportunity.

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................4
Task One: The Marketing Plan..................................................................................................4
1.1 Value Proposition.............................................................................................................4
1.2 Key findings facing the organisation...............................................................................6
1.3: Set and justify Marketing Objectives..............................................................................7
1.4: Strategic Marketing Plan.................................................................................................8
1.5 Marketing Tactics, both Traditional and Digital..............................................................9
1.6: ACTION PLAN............................................................................................................11
1.7: Ethics, Sustainability and CSR.....................................................................................13
1.8: Controls, Measurement, Review, Risks and Contingencies.........................................13
CONCLUSION........................................................................................................................14
TASK 2....................................................................................................................................14
REFERENCES.........................................................................................................................17

INTRODUCTION
International marketing refers to the application of marketing principles on an
international level which means that decisions are required to be taken not just according to
single country but for multiple countries where business is. The businesses go for
international expansion for increasing its sales turnover and also for achieving economies of
scale. In this report, Pure Gym is taken as an organization which is the leading gym operator
in UK. It was launched in 2009 and provides low cost fitness facilities and is mainly focused
on customers. The country is currently deciding to expand its business globally in the country
like Netherland. This report carries out a marketing plan for the organization. It highlights
about the value proposition, the key issues and problems faced by the company and the
prevailing market environment. Analysing the target customer group and what are marketing
tactics that can be used in order to achieve the stated. This report also covers the financial
plan which will be helpful in completing the project effectively, it also includes the ethical
principles that can be implemented by the Pure Gym.
Task One: The Marketing Plan
The marketing plan is the report that outlines the marketing strategies such as
advertising and other marketing efforts for the coming year. It basically includes the business
marketing and advertisement goals, analysing the current marketing position of the business,
timeline within which task is required to be completed. It also describes about the target
market and customers preferences.
1.1 Value Proposition
Stakeholders are very important to business and effective management of them
increases the chances of success. For effectively managing the stakeholder groups of Pure
Gym Mendelow’s Matrix is used (Gym Topco Limited. 2017). This matrix analyses the
stakeholders based on the power and interest. Power refers to the ability to influence the
business strategy and interest means how much stakeholders are interested in the organization
or a particular project.
According to the matrix, the stakeholders in grid A with lower interest level and low
power to influence and thus requires minimal effort by the organization. In Pure Gym, it
includes suppliers and consumers. Grid B includes those stakeholders who have high level of
interest in the business but possess less power, still can influence the views of others. This
slab represents the employees which in case have the trade union would have definitely

assisted them in influencing the business strategy (Elsaid, Salem and Abdul-Kader, 2017).
The local communities who fall into this category as its target customers are the local people
in the country. Under grid C, stakeholders have high power to influence the business strategy
but low in interest level. Government and other regulatory authorities are those stakeholders
having high power but low on interest level because government may not be interest in
business but can implement significant control over Pure Gym in making amendment in the
strategy. Thus, must be treated with caution and requires to be kept satisfied (Mints and
Kamyshnykova, 2019). Grid D represents the high in power and interest level stakeholders
and are the major players and the organizations strategy is required to be accepted by them.
In case of Pure Gym, the stakeholders in this slab are the five international institutions which
are Barclays Bank PLC, Jefferies Finance LLC, Royal Bank of Canada, Credit Suisse AG
and ING Bank N.V. who has provided secured loans to the company.
Porter’s value chain model
This model is a set of activities that is required to be carried out by the organization in
order to create value for customers. This model can be used to examine the activities and
know their inter connection.
Primary activities
The primary value chain activities of Pure Gym is involved in the producing and
selling gym products and services to its target customers. A complete analysis is given below.
Inbound logistics: In this, the strong relationship with suppliers is established for
getting required products. Without analysing this, the Pure Gym may face various challenges
in its development phase (Koc and Bozdag, 2017). The company needs to focus more on
establishing a strong relationship with the various suppliers of gym related products.
Operations: Pure Gym operates in more than 200 sites and has passed 1 million
member mark in 2018. This describes how effectively it is managing its business operation in
all the 200+ clubs.
Outbound logistics: With respect to Pure Gym, there is very little or no presence of
intermediary in the selling products. The most of the gym related products are sold in the
gym itself.
Marketing and sales: Pure Gym has invested more in providing quality services to its
customer and has also positioned it as the gym of customers. It has always focussed on great
place to work out.
Service: The services offered by the Pure Gym is limited to the essential requirements
of the customers and the things that the customers are likely to use and has to pay only for

those services. It focusses on meeting essential needs and does not provide services like
swimming pools, saunas or beauty therapy options.
Support activities
These activities are used in supporting the primary activities. For example,
procurement supports operation activity.
Infrastructure: The infrastructure of Pure Gym is includes wide range of activities
such as quality management, legal matters, accounting, finance, planning and strategic
management. It has well designed clubs with good quality of customer services and dedicated
team of employees.
Human resource management: The Pure Gym has dedicated team of workforce who
works really hard for meeting the needs of the customers. But on the other hand, the
permanent staff members are relatively low (Zamora, 2016).
Technological development: Pure Gym has realized the importance of technology
advancement and has used technology in the providing customer support services. It has
started online registration and booking services which helps in providing members access to
the gym24-hours.
Procurement: It refers to the process of purchasing required equipment’s and
resources which are necessary for conducting the business (Haider and et.al, 2017). Pure
Gym should carefully consider this activity for optimizing its inbound, operational and
outbound value chain.
Based on the value chain model, the competitive advantage the Pure Gym can take is
providing wide range of services to its customers apart from the essential facilities as it will
help in attracting the customers. Also, it needs to work on its staff by providing them better
pay and working environment which will help in meeting up with the temporary staff
problems. It should also initiate some marketing advertisement for increasing its brand
awareness.
1.2 Key findings facing the organisation
STRENGTHS
 Popular company within the fitness
industry Britain’s largest gym chain
by membership.
 24/7 Opening hours - the group
currently has 200+, 24-hour gyms
WEAKNESSES
 Low price leads to crowded gyms,
meaning use of equipment can be
limited.
 Few and limited facilities offered at
the organisation’s outlets.

across the UK.
 Low membership costs.
 Lower number in permanent staff.
OPPORTUNITIES
 Obesity crisis - More people in the
country are either overweight or
obese than at any time in the past
three decades (The 2019 State of the
UK Fitness Industry Report. 2019).
 A boost in the health and fitness
industry.
 Advancement of technology and
equipment such as wearable fitness
devices.
 Positive implication of Brexit for
businesses.
THREATS
 Ageing population - More than 10
million people in the country are
aged 65 and that number is predicted
to double in the next 30 years.
 Economic instability - A record
number of Britons are in work but
the average worker is poorer than
before 2008.
 Heavy dependence on dirty energy
in the country can pose the big
problem in future.
 Two biggest competitors in the
market, which are, Gold's Gym and
Jetts Fitness.
Aging population: This is the key issue that Pure Gym needs to figure out away to
face it. The increasing age will affect the gym membership which will lead to reduction in the
number of customers (Pure Gym. 2020). Pure Gym needs to reach out to this elderly group
and evolve their facilities in such a way so that senior members can make adjustments as per
the requirement and it will result into giving upper hand to the competitors.
Economic instability: As many of the population is having low disposable income
which restrain them from affording the gym services. But Pure Gym by its low cost strategy
can motivate the public to join. Pure Gym has also come up with the plan like pay for 3
months and get 3 months free.
Obesity crisis: Obesity is on the rise and government has also implemented the plans
to stop it by putting pressure on gyms to lower its price. Pure Gym is already offering low
price membership which is its key strength. Pure Gym needs promote more to the public in
order to encourage more members to join.
1.3: Set and justify Marketing Objectives
Objectives

S – Expanding the business in the global market (France)by carrying out the complete
market research with the aim of tapping new market and increasing sales.
M – Increase in the membership from the target customer segment in the form of
revenue.
A – With the help of highly talented and capable staff it can achieve its goals like
effective communication and customer support services.
R – The required resources are available which can useful in implementing the
marketing plan and achieving success.
T – The stipulated strategic timescale plan is 3 years but the tactical timeframe is 12
months. The expansion plan will be completed within the set time frame and will result into
achieving the desired objective of achieve higher sales and profits and increasing the global
presence.
1.4: Strategic Marketing Plan
In the pursuance of defining to whom and where the company caters to, segmentation,
targeting and positioning strategies is required to be carried out (Camilleri, 2018).
Segmentation
Segmentation bases Customer profiles
Young adults Working
population
Old-aged
citizens
Geographic Country Netherlands Netherlands Netherlands
Population 17.1 million
Climate Moderate Moderate Moderate
Demographic Age 18-25 25-60 60 and above
Gender Male and
female
Male and
female
Male and
female
Occupation Student Earner Pensioner
Psychographic Social class Middle class Middle-upper
class
Middle-upper
class
Personality Extrovert/
carefree
Ambitious Ambitious
Interests Taste Quality
conscious
Health
conscious
Behavioural User status Rae users Daily users Frequent users

Benefits sought Nourishing Nourishing and
quality
Nourishing and
convenience
Price
sensitivity
Less Medium Medium
Targeting
The process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter the market (Schlegelmilch, 2016). The fitness segment in Netherlands
is increasing amounts to US$93 million in 2020 which is expected to grow at annual rate of
2.8% which will result into US$104 million by 2024. Also, the largest market is of wearables
with the volume of US$68 million in 2020. Thus, based on the market growth rate and the
existing competitors in the market, the Pure Gym should serve all the age group people as
described in the segmentation table.
Positioning
It refers to positioning the product in the mind of the customers (Hollensen, 2019).
For this company is required to use differential positioning strategy for introducing its
products and services to the target group in Netherlands as the Pure Gym is currently
focussing on less competitive market for creating an impressive brand image.
The major competitive advantage the Pure Gym will gain from the targeted customer
segment is that it can take the advantage of the increasing obesity risk which is making
people aware and encouraging them to join the fitness centres and offering services and wide
range of facilities at the lower price. It will help in gaining and tapping the needs of the
customers for achieving their goals by providing them fully equipped, spacious and secure
environment which will result into increase in customer satisfaction level.
1.5 Marketing Tactics, both Traditional and Digital
It is the set of strategies that can be used by the company for promoting its products
and services. A compete analysis of marketing mix of Pure Gym is stated below.
Product
Pure Gym is a well-known fitness centre in UK having a wide range of exercise
equipment to help its clients. The company can offer personal and certified trainers as per the
needs of the customers (Saidani and Sudiarditha, 2019). It can provide various types of
exercise programs to the customers like aerobic, Pilates, yoga etc. it should also come up with
the other facilities that was not provided in UK like swimming pool, saunas and beauty

therapy. It can also has a shop for selling nutritional products, drinks and cloths to its
members.
Place
The fitness club of Pure Gym should be fully equipped the all required tools and
machinery that will be necessary for meeting the needs of the customers. Also, it needs have
an effective distribution channel for making things available at the right time.
Price
The Pure Gym has always kept its prices low along with high quality of services. In
the same way, the company should follow the same low pricing strategy for attracting its
customer. The objective of the company is to grab the less competitive market for
establishing the business at the initial stage. It should have different types of pricing plan with
different options for every age group.
Promotion
Pure Gym needs to actively participate in the promotional practices for attracting its
target customer and increasing the brand value. The company should come up with different
marketing practices like advertisements through TV, radio, billboards, magazine and
pamphlets. Also, it can use digital media as a source of promotion by sending mails to the
customers, having a social media presence which can help in grabbing larger users. It should
provide various discounts to its customers and also referral points for bringing new customers
which is the most widely used promotion practice (Abdul-Hamid, 2017). The company
should provide a platform to the customers to share their view and get support with respect to
the services provided and resolve the queries of the customers.
People
The staff of the Pure Gym are highly professional and interactive in nature which
makes the customers feel comfortable. Apart from the trainers, the company is having back
hand employees working on the part of running business effectively like accounts, human
resource. But the most relevant are the sales team member or other personnel’s who interacts
with the people for bringing business.
Process
A systematic process to be followed for providing services to the customers which
results into increase in customers satisfaction level and revenue.
Physical evidence

The company has a physical presence in UK and also it has its own logo which
differentiates it from the others. Apart from this, the services provided has a physical
relevance.
1.6: ACTION PLAN
Activities/
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 Total
Evaluation and
communication
of strategic
plan
2
Development
of execution
structure
3
Development
of the policies
and the
programs
3
Allocation and
budgeting of
the resources
4
Discharging
activities and
the functions
2
Cash budget
Particulars
Year
1 Year 2 Year 3
Receipts:
opening cash balance
1500
0 18985 28795
Cash received from the
debtors
3000
0 35000 25000
Total cash available 4500 53985 53795

0
Payments
Payment to creditor
1500
0 20000 15000
Wages 3200 2500 3000
Manufacturing expenses 1225 990 1050
Selling expense 550 600 620
Administrative expense 1040 1100 1150
Purchase of machinery 5000
Installments of building 2000 2000
Total payments
2601
5 27190 22820
Net cash inflows
1898
5 26795 30975
Particula
rs
cash
inflow
s
Cumulative
cash inflows
Year 1 18985 18985
Year 2 26795 45780
March 30975 76755
Initial outlay 50000
2
0.4
Payback period
2 years and 4
months
Interpretation- It has been stated that longer the period of payback, longer time is
taken by the project in covering its initial outlay. However, shorter payback period reflects
that the initial investment cost would be covered in short period of time. As per the analysis it
has been represented that the payback period resulted as 2 years and 4 months is counted as
better which in turn means that the proposal will recover an initial cost in short period.

Particulars Formula
Amoun
t
Total revenue 70000
Total investment 50000
Return on marketing
investment
Total revenue-total investment/ Total
investment*100 40%
Interpretation- from the above table it has been presented that the return on
marketing investment resulted as 40%. This means that the project will be generating 40% of
the return and this result to higher profitability for the company. Return on marketing
investment is computed by reducing initial outlay from the total revenue and dividing it by
Total revenue. It is stated as the percentage return that the company will earn by investing in
the project.
Particulars Formula
Amoun
t
Fixed cost 65000
Contribution per unit 5
Break-even
point
Fixed cost/ Contribution
per unit 13000
Interpretation- Break even analysis is counted as the point at which the company is in
no profits and no loss situation which in turn depicts the stage at which the company will earn
profits. In other words it is counted as the financial calculation in determining number of the
services and the products that company must sell for covering its respective cost. Moreover, it
is been determined by dividing the fixed cost with that of contribution per unit. As from the
assessment, Break-even point is resulted as 13000 which mean that at 13000 units an entity
would start earnings profits as at this stage its cost are covered.
1.7: Ethics, Sustainability and CSR
It is very important for every business to follow the set principles and ethics in their
business practices. The major challenge that will be faced by the Pure Gym is the changing
climate and weather conditions which will have a direct impact on the business. Netherlands
is prone to floods even after various dams and other prevention initiatives taken by
government. Even though there is nothing much that can be done by the company but it can

still make initiative to help the government by investing the projects for the welfare of the
country. During the times of crisis, the company can provide online exercise to its clients
which can be possible to be done at home avoiding customers to lose their money.
1.8: Controls, Measurement, Review, Risks and Contingencies
There are four elements in monitoring and controlling the marketing plan which are
stated below.
Identifying Critical Success Factors
The CSF for Pure Gym will be increase in the market share, providing quality of
services, effective customer satisfaction level, brand value etc. For instance, there is an
increase in the customer satisfaction level, it will lead to increase in the customers base
because of word of mouth promotion.
Setting Key Performance Indicators
By setting KPIs will help in effectively monitoring the performance of the business
(Capon and Go, 2016). For example, setting the target for sales to be achieved in specific
time frame and then the same and identifying the reason for variations.
Agreeing Marketing Metrics
The different types marketing metrics can be used like digital marketing metrics, first
and returning marketing metrics etc. This helps in knowing the effectiveness of the
company’s app or website and in tracking the progress in real-time. For example, the
company use these metrics for identifying the number of new joiners, sources through which
customers get to know about the company and its services, which is the more effective mode
of promotion.
Identifying Risks and proposing contingencies to address these risks
With the help of various tools risk can be identified which will help the company in
taking effective measures in addressing those risks (Athayde, 2018). For example, there can
be change in technology which will have an impact over the business for which the company
might be required to take initiate to meet the changing trends to remain competitive.
CONCLUSION
It can be summarized from the above that for being successful in the business it is
very important for effectively planning and managing the marketing plan. The complete
market analysis is carried out with respect to key challenges that the company might face
along with the opportunities available. Marketing strategies are planned in align with the

objectives to be achieved. The various elements of marketing mix that can be used are also
implemented with respect to both traditional and digital and also a complete action plan is
prepared including budgeting and other financials for expanding the business in Netherlands.
TASK 2
Uppsala model of internationalization was developed 40 years ago and the conditions
or the framework of an internationalization changed to a large extent. In context of
economics, Internationalization refers to the process of increasing an involvement of the
companies in the international market, although there is not any agreed type of the definition
is provided of internationalization. Uppsala model is stated as the classical
internationalization model that provides for a universal description of the way in which
internationalization works in terms of the sequential stages at the time of its early
development (Coviello, Kano and Liesch, 2017). The Swedish researchers had created their
own internationalization model called as Uppsala Model. This model is based on the
assessment of the 4 kinds of the manufacturing companies that are Atlas Copco, Volvo, Facit
and Sandvik. At this time, these corporations sold more than 2/3rd of their turnover around the
world and were having the production facilities in several countries. It explains process of
internationalization & the problems that company had to face in doing it. The model
distinguishes or differs between establishment chain concerning to the pattern of the
internationalization and the psychic chain of distance along with incorporating knowledge in
relation to culture and the market. It assumes that an entity tarts to grow & develop in
domestic market prior they begin to expand in other types of places.
Internationalization is reflected as condition of series regarding an incremental
decision. The major idea of such model is sequential development an enterprise passes
through at the time of up-scaling. The Uppsala model categorize process relating to entering
into an international market into the four steps within which successive stages indicates
greater degree of the international involvement and the commitment of the market. These
steps need to be viewed from the perspective of the firm combined with market knowledge
and the market. A step 1 state that there should be no regular activities of export and step 2
indicates export by way of independent representatives (Vahlne and Johanson, 2020).
Moreover, Step 3 represent establishment of the foreign sales subsidiary and last step that is
4th depicts foreign production or manufacturing units. These steps shows activities of the
business depending on market experience by firm during expansion and development
process.

Uppsala model is based on mainly four concepts that include market commitment,
current activities, and market knowledge and commitment decisions. As per this model, lack
of the knowledge plays an important obstacle to the internationalization of company and
increases an uncertainty regarding foreign market. However, it has been argued that
organization could acquire knowledge by making use of other company’s data without having
its own particular market knowledge. Companies could also increase their knowledge relating
to market by way of acquiring the local firms or by hiring the experts. Such alternatives
would speed up the process of internationalization and allows for exploring more and more
avenues rather than making use of Uppsala Model (Wu and Vahlne, 2020). Furthermore, this
model is seen as more deterministic and general as it does not considers significant issue in
relation to the way in which the resources of the firm and the features of market can identify
choices and the changes in the export structure. It neglects management incentives & the
manager’s role in making the decisions with regards to internationalization.

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Online
Gym Topco Limited. 2017. [Online]. Available Through:<
https://corporate.puregym.com/sites/default/files/2018-06/gym-topco-limited-full-
year-results-2017.pdf>.
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SEGMENTATION BASES
Customer Profiles
Young adults
Working
population

Old-aged
citizens
GEOGRAPHIC City Milan
Milan Milan
Population 3.1 million 3.1
million 3.1 million
Density Rural/Suburban
Urban/Suburban Rural/Urban/
Suburban
Climate Moderate Moderate
Moderate

DEMOGRAPHIC Age 18-25
25-60 60 and above
Gender Male/Female
Male/Female Male/Female
Income Low level-High
level
Low level-High
level
Low level
Occupation Student Earner
Pensioner

PSYCHOGRAPHI
C
Social class Middle class
Middle- Upper
middle
Middle class
Personality Extrovert/
Carefree
Ambitious Ambitious
Lifestyle Experiencers
Explorers Believers

Interests Taste Quality
conscious Health
conscious
BEHAVIOURAL User status
Rare users Daily users
Frequent users
Loyalty
status
Below average High
Moderately
high

Purchase
occasion
Occasionally Regularly
Frequently
Benefit
sought
Nourishing Nourishing/
Quality
Nourishing/
Convenience
Price

Sensitivity
Less Medium Medium
Table