A Comprehensive Marketing Plan for PureGym's Global Expansion Strategy

This report presents a comprehensive marketing plan for PureGym's international expansion, specifically focusing on the Los Angeles, USA market. It begins with an executive summary and introduction to international marketing principles, highlighting the opportunity for PureGym to expand its operations. The report delves into the value proposition for various stakeholders using Mendelow's matrix and Porter's Value Chain. A detailed SWOT analysis identifies internal strengths and weaknesses, alongside opportunities and threats within the competitive landscape. The report sets and justifies SMART marketing objectives, followed by a strategic marketing plan, including segmentation, targeting, and positioning strategies. It explores both traditional and digital marketing tactics, culminating in an action plan with budgets and financial projections. Ethical considerations, sustainability, and CSR are addressed, followed by controls, measurement, risk assessment, and contingency planning. The report concludes with a summary of key findings and recommendations for PureGym's successful international venture.

International Marketing
and Sales

EXECUTIVE SUMMARY
International marketing is an opportunity for businesses to expand their operations across
national boundaries to grab new opportunities and serve large amount of general public. In this
project PureGym is expanding its operations in international market of Los Angelus, USA. In
this relation a marketing plan will be developed through which value proposition of stakeholders
will be made. Key findings for internal strengths and weakness will be identified so that
generated issues can be resolved positively. A justified marketing objective will be established so
that with strategic marketing plan to achieve all goals more appropriately. Digital marketing
practices will be used so that action plan can be taken. Ethics and sustainability important will be
introduced by controlling and monitoring business operations so that risk and challenges can be
identified and for minimising their effect in future appropriate actions are taken.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The Value Proposition...........................................................................................................1
1.2 Key findings facing the organisation....................................................................................3
1.3 Set and justify Marketing Objectives....................................................................................5
1.4 Strategic Marketing Planning................................................................................................6
1.5 Traditional and Digital Marketing Tactics............................................................................7
1.6 Action Plan, Budgets and Financials....................................................................................9
1.7 Ethics, Sustainability and CSR...........................................................................................12
1.8 Controls, Measurement, Review, Risks and Contingencies...............................................13
TASK 2..........................................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
International marketing is defined as application of all marketing principles and activities
in such manner so that large number of consumers can be satisfied at international level. Through
international marketing sale of goods and services can be operated in more then one nation.
Through this huge market opportunity is created for businesses to serve large number of
consumers and then earn more and more amount of profits by being competitive. In this project
report international expansion of PureGym will be described. PureGym Limited is a chain of no
frills health clubs in United Kingdom (Bennett and Rabiei, 2019). It was founded in the year
2009 by Peter Roberts. PureGym is located at more then 200 locations and possess 1 million
members in their gym. In this project report a marketing plan for PureGym will be elaborated to
expanded its business to internation market of Los Angeles, USA. Together with this a upscale
marketing model for the organisation is designed in this project report.
TASK 1
1.1 The Value Proposition
Value proposition is termed as a specific value that will be delivered to an individual who
is involved in business activities. While operating a business there are number of stakeholders
related to business and value proposition determines the value which business will contribute
towards each stakeholder. Stakeholder for PureGym organisation are consumers, government,
athletes, sponsorships, healthcare organisations and companies that create technical items. As
PureGym is planning for international expansion to Los Angelus in USA and to find value of this
expansion for different stakeholders Mendelow’s matrix will be used (Mendelow’s matrix,
2017).
Mendelow’s matrix is a tool used by an organisation to identify and consider attitude of
their stakeholders when a new project is initiated or a strategic objective is established for
business. This matrix was introduced in the year 1991 and suggest that stakeholders group is
analysed based on power and interest they possess in relation to business organisation. Power
and interest of each stakeholder differs. For example- in relation to PureGym founder possess
more power and high interest, whereas government possess high power but less interest. In this
relation mapping of stakeholders are important through which high power and high interest
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stakeholders will be considered important and managed closely. Action plan for PureGym
organisation is as follows-
 High power, highly interested people - Manage Closely
 High power, less interested people - Keep Satisfied
 Low power, highly interested people - Keep Informed
 Low power, less interested people - Monitor
Source: Mendelow’s matrix, 2017
PureGym in order to gain comparative advantage needs to use Porter’s Value Chain so
that methods to improve competitive advantage can be identified. Micheal Porter in 1985
explains value chain analysis as a collection of activities that are performed by a company to
create value for its consumers (Porter’s Value Chain, 2019). As per this model in order to
enhance competitive advantage a organisation needs to provided more ad more value to its
consumers. As per this concept there are nine steps involved in process to generate final product
form a raw material and at each step some value needs to be created to enhance value to
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Illustration 1: Mendelow’s matrix, 2017

consumers. As fitness industry require organisations that provide value to services and PureGym
will satisfy this criteria will help to generate competitive advantage in market of Los Angelus
while expanding globally.
Source: Porter’s Value Chain. 2019
1.2 Key findings facing the organisation
In the process of expanding to international markets PureGym needs to identify its
internal strengths and weaknesses so that while expansion they can be used as a tool to become
more competitive. In this relation SWOT analysis will be performed as follows-
Strengths:
 Services provided by PureGym is cost effective as they charge an average of £20 per
month which is quite minimum in the industry and this serves as strength in national
market and will help while expanding internationally (Bianchi and Mathews, 2016) .
 Online registration and other additional services like group classes attracts more amount
of consumers.
 Concentration on creating value for their consumers serves as a strength while expanding
business to international markets.
Weaknesses:
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Illustration 2: Porter’s Value Chain, 2019

 Availability of some luxury services are not their in the gym due to its affordable pricing
structure and this may leads to non competitiveness to some area in US market.
 Under-staffing and poor training staff can detract consumers experience and may leads
organisation to become non competitive in international markets.
Opportunities:
 Increasing health conscious population over USA market will help in grabbing good
market share (Classen and Friedli, 2019).
 Satisfying demands of the consumer group in USA which is still unsatisfied will serve as
an opportunity to generate considerable market share at international level.
Threats:
 Increased amount of competition in the market is a threat for PureGym to get success
while expanding to global level.
 Lack of facilities, staff turnover and unsatisfied consumers will become threat for
PureGym to establish in Los Angelus market.
Expanding internationally services provided by PureGym will leads to generation of
some amount of issues that needs to be considered and resolved so that no hindrance is created.
Some of the issues are as follows-
Government regulations: As PureGym deals in fitness industry and while operating its
business in international market will imply compliance with health and safety regulations and
licensing requirement in that countries. In USA laws in relation to health and safety is quite
complicated and it becomes hard for businesses to get government permission to have access to
fitness market. This is one of the major issue while expanding in Los Angelus (Efrat, Gilboa and
Yonatany, 2017).
Non personalised services: As business model of PureGym organisation involves
minimum number of employee staff. This can become an issue while expanding in US market as
people in fitness industry prefer personalised experience. Lack of personal services will generate
unsatisfied consumers to PureGym.
Lack of funding: Funds are very important part for a business expansion and as
PureGym is performing well in UK market does not mean that sponsors and investors will
provide funds for this expansion. As high amount of competition is their in a fitness industry and
availability of proper-finance can not be managed for such expansion.
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Unsatisfied demand: As to make fitness services affordable PureGym offers only basic
facilities to its consumers. This situation can create a issue of unsatisfied consumers as they
demands more and more from these fitness centres.
1.3 Set and justify Marketing Objectives
Marketing objectives are goals set by business when promoting its products or services to
potential consumers that needs to be achieved in the specific time period (Gillespie, 2015).
Objectives are the strategies set in order to achieve the overall organisational objectives. Aim of
marketing is to offering goods and services to consumers that will meet the needs of the
consumers and leads to generation of more and more amount of sales revenue. PureGym while
expanding to US will form a SMART marketing objective. SMART marketing objective will be
specific, measurable, achievable, realistic and timely.
Specific: All the details in relation to international marketing by PureGym needs to be
present in detailed form. All the opportunities and threats, activities to perform and goals to be
achieved are clearly defined to make it understanding.
Measurable: Objectives that are set by PureGym needs to be measurable in qualitative
and quantitative terms. This means a specific number of sales target by the organisation to be
achieved while makes comparison easy to achieve.
Achievable: Goals and objectives of marketing by PureGym needs to be formed in such
manner so that they can become achievable. For example- PureGym targets to generate 50000
members in USA at the end of its 1 year.
Realistic: Marketing objectives designed by PureGym organisation must be based on
current business situation and as per business climate prevailing in the fitness industry. As goals
generating market share of 15% in three years is a realistic target of PureGym organisation.
Timely: A objective become more specific and achievable when deadline is provided to
the marketing objectives (Hohenberg and Homburg, 2016). PureGym organisation has stipulated
strategic timescale is three years while the tactical time frame is 12 months and all the activities
will be reviewed after that.
Aim and objectives of PureGym is to provide affordable and flexible membership to high
quality gym services to all who wants to increase their level of fitness. Together with this a group
strategy is created to continue to roll out new gyms with high returns on capital as well as drive
the operational and financial performance of its existing gym estate. SMART objective in
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relation to marketing while expanding globally is linked to organisations corporate objectives.
This will help to generate more and more revenue for organisation by operating new branches all
over the nation.
PureGym work on the strategy to grab market through serving low cost services which
will make this business cost effective. A competitive advantage will be received through serving
low cost and consumer value services that will eventually leads to grab more and more amount
of market share (Järvinen and Taiminen, 2016).
1.4 Strategic Marketing Planning
Segmentation is a marketing strategy of dividing a market of potential customers into
groups or segments which are based on different characteristics. Segmentation of a market base
for defining targeted consumers are performed in terms of geographic, demographic, psycho-
graphic and behavioural characteristics. The two major segmentation strategies followed by
marketing organisations are concentration strategy and multi-segment strategy. PureGym follows
multi-segment strategy of segmentation through which focus of marketing effectors are made on
different market segments. As while expanding to Los Angelus targeted segment for fitness
services is selected on the basis of aspiration and on income level of targeted consumers that are
available in a particular geographical area.
Targeted audience is a group of individuals who are selected to be offered services in Los
Angelus by PureGym limited. In UAS targeted consumers were all the individuals in the middle
age. Together with this consumers who are focusing on garbing cost effective fitness services
will also be termed as a target market consumers. These are selected as targeted consumers
because mostly fitness services are acquired by consumers who belongs to middle age group. As
in the fitness industry there are huge amount of consumers who are interested in acquiring cost
effective services (Katsikea, Theodosiou and Makri, 2019).
Positioning is a marketing concept that outlines what a business should do to market its
product or services to its consumers. In the process of positioning marketing department creates
an image for the product offered. A positioning strategy is used by businesses in which one or
two important areas are selected to concentrate and achievements are made in those areas.
PureGym deals with positioning strategy as 24 hours service with managing membership online.
Free classes with extensive range of exercise equipments.
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PureGym enjoy competitive advantage over huge amount of competition in the fitness
industry due to its cost effective business model. As value charged form consumers for amount
of services provided to them when worth the money paid then it leads to attract more and more
amount of consumers. Cost effective services to large number of consumer group leads to
generation of more and more amount of profits and will generate an advantage against
competitors (Rosson and Ford, 2016).
1.5 Traditional and Digital Marketing Tactics
In the process of marketing PureGym as per its traditional marketing tactics uses
marketing mix. Through this set of actions that a business organisation uses to promote its brand
in the market. Traditionally their was 4 marketing P's but in the present time there are 8
marketing P's that are described as follows-
Price: The prices offered by PureGym to its consumers depends on membership plan. As
organisation is focused on providing cost effective fitness services so pocket friendly prices
offered to targeted consumer group to beat competition effectively.
Promotion: In the process of promotion managers of marketing department specifically
targets health and fitness magazines, TV shows and newspaper columns. This helps to attarct
potential consumers in the fitness industry.
Produce: Product offered by PureGym is fitness services. In order to attarct more and
more amount of consumers essential services are available in the gym such as cardio machines,
weights etc.
Place: PureGym is located in the UK and follows all the government policies prevailing
their in the industry. As it is targeted to be expanded in US market then it must be situated where
consumers cab easily access its services and must follow al the regulations prevailing their
(Rouziès and Onyemah, 2018).
Physical Evidence: Proofs in relation to success of a marketing plan needs to be
acquired. As PureGym provides excellent services to its clients and did not suffered any issue.
Financial crises due to appropriate fund management must be considered for effective marketing.
People: These are the targeted consumers to whom all the services are offered and who
will put to consume services provided by PureGym. Targeted costumers are people form each
geographical area to take cost effective fitness services.
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Process: The process refers to how services offered by PureGym is delivered to its
consumers. As number of staff in the gym is minimum so more concentration is made on self
services.
Partnership: It is a marketing through which PureGym can expand its operation to other
non covered areas. Also through partnership internation expansion will become much easier and
cost effective on the same time.
Introduction of digital tactical plan made the marketing mix different which was used in
businesses as traditional marketing plan. Digital tactical plan of PureGym is as follows-
Price: As business is expanded in international market and it requires to increase number
of services offered. This will leads to regulate prices. Effective pricing will be promoted through
effective advertisement on website to attract more consumers (Rundh, 2016).
Promotion: In the process of promotion digital technology must be used through making
promotions on social media and over various digital platform to attract huge amount of
consumers.
Produce: When expanding its business to international market then a new product of
online services can be offered. In which a app is designed to guide individuals at home to
perform fitness activities anywhere.
Place: Generating an application through digital technology will enhance marketing
place of PureGym as they can provide services to consumer without geographical boundaries in
USA and other market.
Physical Evidence: Introduction of digital technology will leads to generation of more
evidence to PureGym as consumers will have more accessibility to provide their opinion
regarding level of satisfaction form services.
People: Targeted Consumers when business is expanded to international markets will
increase and through digital technology their will be not boundary to access services.
Process: Digital technology made it simple the process of service providing as
registration and information regarding number of services can be provided through website and
advertisement on social media.
Partnership: Partnering with a organisation that possess more and more amount of
access to digital technology will help PureGym organisation to operate more efficiently.
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