MARKETING AND COMMUNICATION STRATEGY CHARLOTTE DUDLEY-SMITH N0730041
1
BE A
VISIONARY.
5 Methodology
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PART 1: 6 The Brand 7 Identity 8 Target Consumers 10 USP 11 Core Competencies 12 STEEPLE 14 Markets 15 Competitors
17 18 19
Macro Trends Key Issues and Challenges Opportunities and Growth
CONTENTS.
PART 2: 21 The Future 22 Objectives 23 Year 1: Campaign 24 Year 2: Physical Space 29 Year 3: Customisation 30 Athletes 31 Targeting
Part 3: 33 Communication Plan 38 Timeline 40 Budget 41 Measure and Review 42 Conclusion 44 Reference 46 Appendices 53 Bibliography 56 Images
METHODOLOGY. Primary Research:
Primary research has allowed the collection of both qualitative and quantitative data. This has then been applied to different aspects of the report and allowed understanding of consumer perceptions and their awareness of what Gymshark do. The HQ visit gave a direct insight into the brand’s ethos, how they operate and other information in a question and answer session with employees; including the founder and owner of the brand, Ben Francis.
100 respondents from an online survey (see appendix A)
1 focus group interview (see appendix B)
Visit to Gymshark HQ
Secondary Research:
Secondary research has offered thorough and comprehensive information about Gymshark as a brand and also what is happening in the market today. Ideas have materialised from this research to formulate a logical and viable marketing and communication plan designed to fit the given brief.
Online platforms: Competitors websites Social media Trend One Forbes Euromonitor
Marketing publications: Courier 2 Marketing Books
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Gymshark is a fitness apparel and accessories brand, manufacturer and online retailer based in the United Kingdom (Gymshark, n.d.). The Gymshark family is a collaboration of devoted athletes, artists, visionaries and innovators who all have a vision to fabricate the most spectacular products in the world. This extraordinary brand aspires to assist individuals in improving themselves, changing their world and allowing them to experience wonderful things.
WHERE ARE WE NOW?
After being created in 2012 by 19 year old Ben Francis and a group of university friends, 6 years on the business is booming. Turnover for the 12 months to 31 July 2017 trebled by 217% year on year to £40.5m, compared with £12.7m for 2015/16 (Sutherland, 2018). Gymshark was awarded the 46th spot on research company Fast Track’s list of the 100 private companies with the fastest growing profits in 2017 (Fast Track, 2017) and was ranked at number one in 2016’s Fast Track list with a 193.27% annual sales growth in the last 3 years (Fast Track, 2016).
THE BRAND. 6
Physique Be a visionary Creative and innovative designs Modern Sleek
Personality Innovative A lifestyle Trend setter Fashionable Culture Sports and fitness Dedicated to helping people achieve their full potential
Reflection Youthful Energetic Driven
Self-image I feel good about myself I am brand conscious I want self enhancement
Attributes Innovative Best fit and quality
VISIONARY Personality Confident Active Desirable Inspirational
Promise Forefront of gym wear innovation Supportive Style
Source of Authority Since the launch of Gymshark, the brand has been a trend setter within the sportwear industry, creating original designs to flatter and shape the consumer’s physique.
IDENTITY.
Relationship High quality Supportive More than just a brand
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VE
FASHION CONCIOUS
GA N
STUDIES AT THE UNIVERSITY OF BRISTOL
OWNS A FIAT BILINGUAL
MILLIE ADDINGTON
PERSONALITY TRAITS LAZY
INSPIRED PART TIME JOB BY ONLINE IN LOCAL CAFE INFLUENCERS SOCIALLY CONNECTED
NARROW MINDED PROUD
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OPEN MINDED HUMBLE
DISORGANISED
ORGANISED
INTROVERT
EXTROVERT
FOLLOWER
LEADER
INACTIVE
20 YEARS OLD
HARDWORKING
SELFISH
TARGET CONSUMER
ACTIVE GENEROUS
S IA
T RA V
ENT H U L S E
T
GRADUATED FROM NOTTINGHAM TRENT UNIVERSITY LAZY
HARDWORKING
NARROW MINDED
IMAGE CONCIOUS
HUMBLE
DISORGANISED
ORGANISED
INTROVERT
EXTROVERT
FOLLOWER
LEADER
INACTIVE SELFISH
ACTIVE GENEROUS
MODELS PART TIME
PROUD
£25K
FOCUSED ON WEIGHT LIFTING
OPEN MINDED
LIVES WITH HIS GIRLFRIEND IN THEIR OWN HOME
JAMES RICHARDSON
PERSONALITY TRAITS
CHARTERED BUILDING SURVEYOR WORKING FOR THE FAMILY BUSINESS
SELF MOTIVATED 23 YEARS OLD
PEN PORTRAITS.
PREFERRED SOCIAL SITES 9
Gymshark have differentiated themselves in the saturated sportswear market by forming a niche. The brand offers both fashionable and innovative products, showing understanding of what their core demographic of 18-25 year olds want (Sutherland, 2018). Therefore, the brand is surpassing its competitors in the sportswear industry by providing consumers with the practical, fitted, stylish clothing their target consumer desires (Market Line, 2018).
USP.
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Gymshark’s innovative, body sculpting designs make the brand ever more desirable. This differentiates the brand, separating itself from competitors, by providing fashionable, high quality products. The original idea of using brand ambassadors was created by Gymshark. Connecting athletes to the brand by showing them wearing Gymshark gear becomes inspirational to consumers who aspire to be and look like the athletes they adore. Due to having a small board of directors, Gymshark is extremely flexible and proactive when it comes to making decisions. This gives them a competitive advantage as it allows quick response to trends and consumer needs.
CORE COMPETENCIES.
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STEEPLE Issue
Effect on Gymshark
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Social • Social Media
Technological • Artificial Intelligence
• Lifestyle and Consumer Trends • Today, social media has a major influence on consumer buying decisions. 31% of consumers say they are using social media channels to browse for new items to purchase (Chahal, 2016) while 78% of consumers say companies’ social media posts impact their purchases (Olenski, 2012). Due to Gymshark’s marketing strategy being solely through social media, this has a direct influence on the brand as consumers are extremely likely to purchase because of the brand posts. It is therefore important that every post the brand makes is with purpose and consideration as this can determine whether a customer buys from their brand or a competitor. • To stay relevant in the industry, it is important for some brands to meet the latest lifestyle and consumer trends. With the macro trend of health and wellness trend being apparent, the mirco trend athleisure is still very popular. For Gymshark this is extremely important as much of their products are likely to be sold to people following the trend, getting involved in working out or just wanting to wear their products for comfort. If this trend goes out of fashion then it could have a negative effect on the brand, so they will have to form innovative ideas to maintain their current customer base whilst aiming to gain more.
Economic • Employment • Disposable income
• Advances in AI offers enhancements to lifestyles and creates more efficient businesses. With it believed that robots will destroy jobs, they actually encourage gradual evolution to the job market (Forbes, 2018). This has a positive effect and allows people to work better. Gymshark will excel with the help of Artificial Intelligence as it can focus on different areas to work on. For example, it can increase revenue by identifying and maximising sales opportunities or avoid mistakes made by human error. This will increase the brands reputation and positivity from consumers.
• Statistics from Clegg (2018) reveal that the unemployment rate in the UK has decreased. The proportion of people aged 16 to 64 years who were in work rose to 75.7% from 74.9% the previous year. In relation to Gymshark, this can only have a positive effect on the brand as consumers have an income which they are able to spend on taxes, essentials and non-essential items such as sportswear, therefore providing the brand with sales. • Disposable income in the UK has increased by 1.2% from 2017 (Mallett and Lee, 2018) meaning consumers have more to spend or save after their income tax has been deducted. Similar to increased employment rate, this is encouraging for Gymshark because consumers are able to spend more on non-essential items, therefore potentially resulting in an increase for Gymshark’s sales.
Environmental • Environmentally Friendly Products
Political • Brexit
• Sustainability • With the environment being a global concern, Gymshark could consider introducing environmentally friendly products or packaging to their brand. This will be recognised by consumers and could be popular with those who particularly care for the environment. • Sustainability has become an increasingly important issue in today’s society. This effect on Gymshark will mean that they will have to consider how the manufacturing and transportation process can be made more sustainable to please consumers and help save the planet.
Legal • Health and Safety Laws
Ethical • Transparency
• Labour Laws • Having a distribution centre in Belgium (Francis, 2018) and having customers in over 131 countries, Brexit could cause disruption for the Gymshark brand. As a deal is yet to be finalised, there is still uncertainty for the outcome of the political agreement, leaving businesses unsure on the direction they will end up taking (Anon, 2017).
• It is an employer’s duty to protect the welfare, health and safety of their workers and those involved with brand’s premises due to The Health and Safety at Work Act 1974. To abide by this law Gymshark should provide its workers with a safe and secure setting to work in, whilst caring for their welfare. • Labour laws in the UK include the National Minimum Wage Act 1998 and also the Working Time Regulations 1996. These are two laws that give the right to workers to be paid a particular wage relating to their age or apprentice title and also gives workers the right to rest breaks, holiday, maximum work of 48 hours per week, etc. Gymshark should abide by these laws paying anyone 18-20 years old £5.90, 21-24 years old £7.38 and 25+ £7.83 if they are not paying them a salary. They should also be offering a minimum of 20 minutes rest to any shift over 6 hours long, along with the other requirements previously mentioned.
• Many ethical factors arise when it comes to companies starting to produce and deliver on a global scale. A few examples include issues involving slavery, the treatment of animals and sourcing of materials, etc. Gymshark need to be transparent with their consumers. This is something the brand is currently doing through the use of Ben Francis’ YouTube channel, showing different areas of the business including the distribution and inside the offices. Without transparency little trust is given from their customers so it is important honest and visual insights to the brand are offered.
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Primary
M
Se c
:B ket r a
odybu ild
t ke ar
arket: Gym we M ar ary M
M
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ort sw ea r
t ke ar
With Gymshark targeting consumers between the ages of 18-25, this information is extremely positive for the brand. Evidence from the secondary research shows the youth market are clearly keen to spend on sportswear, so if the brand continues to market successfully then sales are only likely to increase. With the highest spenders being in London, this information should be considered in part 2 of this report.
d on
: Performance sp
arket
Research carried about by Rakuten Marketing (2018) shows that 44% of Brits say that their spending has increased on activewear in the last year. In a quarter of cases, consumers admitted spending had shot up over the last year – as much as 70-100%. It has also been revealed that the largest growth is in the youth market 16-29 (57%) and the high-spending Londoner (54%).
et a rk
gM in
The global sports apparel market is continuing to grow as it benefits from a growing proportion of the population aspiring to live healthier lifestyles, therefore increasing their participation in sports and fitness activities (Euromonitor, 2018). Statista (2018) shows that the sports and apparel industry is highly fragmented with standard discounted brands to high-end fashion names. In 2018 the total revenue from the market stands at $173.68 billion, a $6.68 billion increase from the previous year.
M al r he
Pe ri p
MARKETS.
COMPETITORS. Trend Setter
Small range of products
Wide range of products
Trend Follower
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Two main competitors analysis: Gymshark Values Persona
Family, progression, vision (Gymshark, n.d.) Innovative, desirable, supportive
Differentiation Fashionable and innovative designs,
very connected with consumers via athletes showing they are more than just a brand.
My Protein Authenticity, sustainability
Physiq Apparel Togetherness, enthusiasm, individuality
Trustworthy, high quality, considerate
Performance, lifestyle, creative
A leading sports nutrition brand, delivering a range protein powder, vitamins and minerals, high-protein foods, snack alternatives, and performance clothing. (My Protein, n.d.)
Built initially to solve the problem of finding high quality and reasonably priced fitness clothing. (Physiq Apparel, n.d.)
Primary Consumer
18-25 year old males and females who are motivated to succeed and excel their goals
16-24 year old males and females with interest in physical activity and nutrition
Young driven males and females who aspire to look good whilst keeping fit
Company Presence
Global online presence
Global online presence
Global online presence
Products/ services
Gym wear, loungewear, underwear, swimwear, gym accessories
Protein, gym wear, underwear, gym accessories
Gym wear, hats
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MACRO TRENDS. Customisation: Trend One
Consumers desire for distinction increasingly expresses itself in the personalisation of products, services and experiences (Trend One, 2018). Personalisation can come in many forms- from customised products, to curated recommendations, to communication and storytelling that connects to individuals (BOF Team and McKinsey & Company, 2018). TThere are no limits; consumers want to individualise and shape things for themselves or have it done for them by giving companies access to their preferences, in return for recommendations. To connect with these empowered consumers, fashion
Omnichannel Strategies: Trend One
companies As today’s consumers often should think want to find out more about about how to products and services offer products and before they purchase, experiences that are they use a variety of perceived as unique, channels to do so. If to engage and provide a customer views a for the current demand. product in a shop Whilst brands can also and likes the look provide a customised of it, they may use product, they are offering an their smartphone experience too. Customers are simultaneously able to interact with the brand or later on to enhance their experience, to get more allowing the consumer to get the information best product for them, resulting in about improved retention (Mulqueen, 2017).
the product or seek deals elsewhere (Trend One, 2018). With the advancement in technology, brands are having to deal with this and the change in consumer behaviour as people require greater access to information about brands and products. It is important that their adaptations to new consumer attitudes are met through fusing the physical and digital in order to be successful in creating a smooth and seamless omnichannel approach.
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KEY ISSUES
AND CHALLENGES.
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Strengths
Weaknesses
• Globally recognised brand • Strong brand image • Strong online presence through all social channels they use. This includes Instagram, Facebook, Twitter, YouTube and their own blog. • Group of athletes enhance brand awareness and trustability • Able to make quick decisions within the company due to their small board of directors, therefore able to adapt to changing trends • Successful in there launch of pop up stores
• Relies heavy on one channel to sell their products meaning those who aren’t interested in social media are not being targeted also making it difficult to attract new customers to the brand. • Gymshark athletes that are not known outside of the niche of weight lifting and the gym may be limiting for the brand.
Opportunities
Threats
• Create new advertising strategies to target new customers • A physical space for the brand • Possibility of introducing a footwear range to the brand • Creation of a shopping/fitness app
• The rise of other ecommerce retailers • Competition within the market is increasing as more young entrepreneurs enter the market with ideas • Increasing demand for interactive experience from consumers (Bremner, 2017) • Influencer marketing has become popular with other brands, potentially making the original marketing style for Gymshark less effective (Patel, 2018)
New Markets
Existing Markets
Existing Products
New Products
Gymshark could encourage an increase their market share by improving existing product ranges. With relaunches, new colours and lengths could be introduced, appealing to both current customers and new customers. The brand could specifically focus on the men’s range to begin with as this is a weaker area than the women’s.
Create the ability to customise Gymshark products to follow the current Customisation macro trend (Trend One, 2018). This enables customers to have a personal experience with the brand, resulting in a unique, personal product being formed that they can gift or use for themselves.
Opening a permanent physical space is an opportunity that would introduce a new market to the Gymshark brand. Currently being an online only retailer, this would allow customers who do not use social media or the internet, to be introduced to the brand.
Gymshark could diversify and enter a completely different market, introducing sports nutrition and supplements to their product range. Food and nutrition is a market they are not in, however it would suit the brand well due to the idea relating to the health and fitness making it more likely for customers to trust their new venture.
AND GROWTH.
OPPORTUNITIES
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PART 2.
WHERE DO WE WANT TO BE?
Year one will focus on increasing the brands social engagement across all their current social media sites by 25% of their current engagement rate. This will be through social media campaigns and a UK university bus tour. A permanent physical space will be created in year 2, collaborating with the brand’s current online platform. This will form a smooth omnichannel experience for customers, intertwining the online with the physical brand characteristics and products. After generating energy around the brand over the past two years, year 3 will launch a personalisation and customisation element into the flagship store to allow consumers to change the colour, length or fabric of their selected product within the established Gymshark framework. The option to add initials will also be available to make products personalised for consumers. Not only is this likely to drive social engagement further as products are shared across social sites, but it will contribute to making Gymshark the preferred sportswear brand for their target consumer as this is an element very few of Gymshark’s competitors do.
THE FUTURE.
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To increase social engagement across all networks by 25% of the current engagement by 2020. To create a seamless omnichannel experience for consumers by 2021 through combining the physical space, website and social networks to form a smooth, personal experience for customers. To make Gymshark the preferred sportswear brand of 18-25 year old males and females in the UK by 2022.
OBJECTIVES. 22
YEAR 1: CAMPAIGN. To increase social engagement across all networks by 25% of the current engagement by 2020. Year one’s objective will be achieved through social media campaigns, alongside a UK university bus tour. Not only will this encourage more interaction and connection with prospective target consumers, but it will also raise awareness of the future store opening. (See part 3 for in depth explanation of proposal).
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YEAR 2:
To create a seamless omnichannel experience for consumers by 2021 through combining the physical space, website and social networks to form a smooth, personal experience for customers.
Gymshark’s physical space will give a clear visual representation of the brand and its values through the sleek design and interesting offering. 46% of respondents from the primary research questionnaire (see appendix A) stated they prefer to shop online for activewear, whilst 27% stated they did not have a preference to online or offline shopping. The store should be a space that offers not only products, but also an experience to make activewear users want to visit and buy in store.
Store Front
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PHYSICAL SPACE. Location The physical space will be located within Covent Garden in London, a location in a capital city which can see up to 19 million tourists annually (Loesche, 2018), as well as having high footfall from shoppers and business people. The main landlord in this area is Shaftesbury; its strategy includes having a unique selection of stores that aren’t easy to find elsewhere, driving more people to buy from its portfolio properties (Anon, 2018). Gymshark has previously hosted a pop up shop in this location which proved to be successful, so it is clear that current customers of the brand will be willing to travel if they want to see the physical space. A high percentage of new customers will be introduced to the brand as it is a main shopping location in the city as well as having over 12 gyms and yoga studios in the area, which is extremely appropriate for a sportswear retailer.
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Fitting room
Fitting room
Fitting room
Armchair
Armchair
Swing seat
Fitting room
Fitting room
Fitting room
Store Floorplan Fitting room
Fitting room
Fitting room
Fitting room
Pre-season stock wall
Fitting room
Fitting room
Selfie wall
Camera
iPad
iPad
Online stock stand
iPad
iPad
iPad
Exclusive stock stand
Tills
Online stock wall
Exclusive stock wall
DJ
Live model treadmill
Live model treadmill
Online stock stand
Exclusive stock stand
C&C locker
C&C locker
A free flow store layout has been designed to allow customers to explore the store by creating their own path. Orvis (2017) states a free flow layout that is most likely to create an experiential retail space; this is an element that has tried to be injected into the brand’s space. He also states the free flow layout can encourage browsing and impulse purchases which is important for any retailer to generate sales. Elements such as the till, iPads, fitting rooms, a selfie wall, a swing seat and clothing stands are slightly further into the store to avoid the decompression zone as customers need this time and space to acclimate themselves to their new surroundings (Fleener, 2008). Click and collect lockers are located on the end of two clothing stands nearer the front of the shop as it provides convenient access to the customers who have purchased online and would like to quickly and easily collect their purchase.
The physical space will be made up of several different components. 40% of the stock will be limited edition as suggested by a respondent from a primary research questionnaire (see appendix A). A range exclusively designed and made for the store, meaning consumers are not able to buy it without entering the space. Another 40% will be current stock that is available on the CK O Gymshark website, whilst the final 20% of stock will be preseason which allows consumers to see, ST feel and try on the items and if they chose to, they are able to pre-order it before its release date. This should drive a greater flow of customers into the store as they know 60% of items that they come into contact with won’t have been seen by other Gymshark customers who shop online. Click and collect lockers will be available in store to offer a free delivery service so customers no longer have to worry about missing a delivery or paying any delivery costs (Anon, 2016). This option will differentiate Gymshark from its competitors such as My Protein who do not offer click and collect. The main users of this particular feature are likely to be local business people or those who live in London as it is a convenient collection point. To collect their parcel, they will need to scan the QR code they received in their confirmation email when ordering online and also enter their postcode as a form of security which will then quickly and easily open their parcels locker without the help from staff.
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To add to the experience element in Gymsharks physical space, the camera and selfie wall will have a touchscreen feature to allow users to select different filters, all involving the Gymshark logo or elements surrounding the Gymshark brand. They then have the option to upload or email the photo they’ve taken directly to their social networking accounts, allowing their following to see the photograph and where they’ve been, subtly acting as a form of promotion for the Gymshark store.
iPad
MAKE EACH DAY A MASTERPIECE 28
Camera/selfie wall
IPads can be used by customers at the tills to browse products on the Gymshark website and search on their social networking accounts. Purchases can be made via the iPads, allowing a quick checkout and free delivery to the buyer’s home, with no minimum order value.
QR codes
QR codes are located on every price tag in store. These can be scanned via a smart phone and will take the customer directly to the Gymshark website where they can find out more information about the product and other colours that are available. More specifically for the pre-season range, customers are able to pre-order the stock via the QR code taking them to a secret area of the Gymshark website where they can add the product into their basket and receive it on the day of launch.
CUSTOMISATION. YEAR 3:
To make Gymshark the preferred sportswear brand of 18-25 year old males and females in the UK by 2022. To follow the customisation trend and differentiate the brand further in the sportswear market, Gymshark will add a customisation and personalisation element into their store for customers to interact with. Allowing individuals to change elements of products within the Gymshark framework to make an item unique and reflective of their personality, contributes to the brands purpose of existing to create the tools that help people unlock their full, incredible potential and put their ideas into action (Gymshark, n.d). Consumers may feel more confident and prouder using or wearing a product they have designed and love. Potentially altering the length, fabric or colour, they can feel more comfortable and determined to reach their goals, achieving their full incredible potential as Gymshark hopes. Consumers are literally assisted in putting their ideas into action as Gymshark inspires them to be creative and individual.
Very few of Gymsharks competitors offer this element to consumers which allows the brand to be differentiated from its direct competitors. The new service offers customisation on ranges within Gymshark for a slightly higher price, separating the brand from the 18-25 year old sportswear preference Nike, as shown through the online primary research questionnaire (see appendix A) who have a limited customisation range.
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ATHLETES.
It’s important to have a variety of athletes from around the world to support and help promote the opening of the store as they will drive greater brand heat and encourage their followers to visit the space if they travel to London. Athletes will be present at the store a few days before the official opening date to celebrate with the brand on the launch of their first permanent store. They will be required to share the PR event with their large following to generate awareness of the store launch. Throughout the year ambassadors will also be expected to be available for individual meet and greets at the store as they are representatives of the brand. They are all faces associated with Gymshark and have played a powerful role in consumer awareness and perception.
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rs
ary Cons u
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d gy m g o e
Second
s
TARGETING.
Gymshark should continue to target the 18-25 year old consumer. The brand is knowledgeable on the target groups desires, interests and wants through their previous, successful marketing campaigns and general business ideas.
s lower fol
th er: A lete
et re
an
m
: Athleisur
nd
o
er um s n
The primary target consumer will be athletes and potential/current gym goers who aspire to do well and reach their full potential.
The secondary target consumer will be people following the long running athleisure trend and willing to buy into the Gymshark brand.
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PART 3. 32
COMMUNICATION PLAN. An idea to engage and attract current and new consumers is through having a Gymshark university tour bus that will travel around various UK universities and interact on campus with the Gymshark target consumer. Sensible assumptions conclude that Gymsharks busiest time of year is from November to January. This is because of their Blackout sale, Christmas and also consumers buying gym wear to support their healthier lifestyle choices as they enter the new year. The bus tour will begin after this busy period to give the brand one main focus; the promoting of their campaign. Students will be in university during the majority of these three months, allowing Gymshark to take advantage of all opportunities, therefore maximising their potential social media growth as the objective states.
#
GOES PHYSICAL UNIVERSITY BUS TOUR
The bus will be bought second hand (see appendix C) and renovated to fit the Gymshark ethos and purpose of the promotional campaign, #GymsharkGoesPhysical. Within the bus Gymshark products will be on show, allowing new consumers to feel the garments and view various items from the most popular ranges. On the top deck of the bus a photobooth will be installed, following a similar concept to the photobooth that will be placed in the permanent physical space. This will promote the #GymsharkGoesPhysical campaign for the future store opening, connecting consumers and the brand via social media which results in an increase in online engagement. Adjacent to the bus, a ‘High Striker’ competition will allow participants to win various prizes depending on their strength. These can range from discount codes, to water bottles, t-shirts, etc. to get them involved with the brand, become aware of the store launch and also generate traffic and sales on the website. Gymshark representatives will encourage students to come into the bus to look at the ranges, have a go in the photobooth and try the competition to win prizes.
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SOCIAL MEDIA.
Below the line marketing, more specifically social media marketing, will be used to promote the #GymsharkGoesPhysical campaign. This approach gives direct contact with consumers which consequences in building stronger relationships and brand trust. As Gymshark’s target consumer is an avid user of social media, it is important to engage them through platforms they come into contact with and use on a regular basis. Social media marketing is an extremely successful technique that Gymshark have used since the company started, it helps to defy them as a brand and has helped them to get to their current market position. It is a very valuable approach that can attract thousands of new customers throughout the year plan.
Gymshark will launch the campaign before the start of their bus tour, across their social accounts by posting images as they normally would. This will make students aware of the campaign before it arrives at their university. Images and videos taken at the university events will be shown across their accounts to maintain excitement from consumers and make people connect with the Gymshark accounts to stay informed about the news.
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Two YouTube videos will be posted during the year plan that specifically revolve around #GymsharkGoesPhysical. YouTube videos can easily be shared across multiple social sites resulting in more video views therefore more people become aware of the campaign. The first video will be a short dramatic preview of the renovated tour bus, showing a sequence of clips that clearly show to viewers what the bus is for, leaving them in suspense as to whether or not Gymshark will be visiting their university.
The second video will be published later on in the year showing footage from the very start of Gymshark, up until that current point in time, including previous pop-up shops and the university bus tour. This will reveal the stages of design and progression for the physical space and also give a teaser of the outside of the shop. Enough information will be given to leave watchers informed and excited, however not every detail will be revealed so they are encouraged to connect and follow the brand to receive information as soon as it is posted.
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EMAIL.
Dear [recipients name],
Save the date!
We are opening our first permanent physical space on [opening date]! In honour of this, we’re giving away 20 SHOPPING SPREES! Every time you tweet #GymsharkGoesPhysical you will be entered to win £100 gift card to spend in-store. For every friend you successfully recruit to create a Gymshark account, you’ll be entered to win a £200 gift card!
Example Email
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#GYMSHARKGOESPHYSICAL
We want to celebrate and share the love, we wouldn’t be in this position without you.
GYMSHARK INVITE FRIENDS
During the middle of the year, a business to consumer marketing incentive programme will be released via email. The purpose is to encourage engagement with the campaign’s hashtag via Twitter and also to recruit new customers for the brand’s mailing list. The message encourages loyal consumers to tweet about the brand without any financial risk to Gymshark. Successful participants are incentivised with gift cards to spend in the new space after the message is shared, increasing Gymsharks engagement and overall following, benefitting both the brand and the consumer.
Current packaging
New packaging
Temporary packaging will be reinforced leading up to the physical space launch to work alongside the campaign. In today’s society consumers have the fear of missing out, creating products or even packaging that is exclusive can help drive sales (Anon, 2018). Consumers feel prestige, giving an emotional connection with the brand; with a minor design change on the Gymshark mail bags, this connection can happen. Redesigning the packaging in time for Gymshark’s busiest period of the year should be extremely beneficial for the promotional campaign as Blackout,
GOES PHYSICAL
Christmas and New Year shoppers will receive the ‘limited edition’ packaging with their new purchases, potentially encouraging others to get involved in buying as they do not want to miss out. Alternatively, consumers who have bought from Gymshark within the particular time frame and for some reason are not aware of the campaign, will be informed after buying from the Gymshark website when their order is delivered to their door. This should urge them to look on Gymsharks social media accounts and see what the campaign is all about.
PACKAGING.
#
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TIMELINE.
2020
#GymsharkGoesPhysical social media campaign begins
J
F
M
Video posted online to annonuce the bus tour, encouraging engagement from new and current followers
A
University bus tour running from the beginning of February to the end of April
#
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GOES PHYSICAL
#
GOES PHYSICAL UNIVERSITY BUS TOUR
M
J
Physical space video teaser showing plans from the start of the project to the outside of the space to prove its happening and to generate excitement
J
A
B2C marketing incentive emailed to current consumers throughout June and July to encourage engagement on Twitter and the recruitment of new Gymshark mailing list members
S
O
New temporary UK packaging released before Blackout to allow all UK buyers to know about the launch
N
#
D
GOES PHYSICAL 39
See appendix E for full communication plan finances
BUDGET.
Cost
40
Bus purchase
£9500
Bus renovation
£10000
Social media
£5000
Samples
£50000
Staff
£4320
Video
£10000
Packaging
£50000
TOTAL
£138820
The bus’ budget is based on a UK home bus renovation (see appendix D). Although it will not include the same fittings, from research it was the closest comparison to the plan created for Gymshark so it will give the most logical estimation. The bus purchase will be £9500 as it was advertised on Ebay (see appendix C), keeping costs down in comparison to buying a brand new one. This will all be paid in January before the tour. A maximum of £5000 will be spent on advertising on social networking sites such as Facebook, Twitter, YouTube and Instagram. Full use of this budget should be considered to give the brand as much reach to its target audience as possible, in order to create success.
Based on a wage of £10 per hour, assuming days are a maximum of 6 hour long, staff will be paid £60 per shift. 4 staff members working at each event equals £240. If there is a maximum of 6 events per month, the current out goings total £1440, multiplied by 3 due to working from February to April gives a grand estimate of £4320. One of the employees will be required to drive the bus to and from the selected university.
MEASURE
Measuring the success of increased social engagement will be done by reviewing social analytics on Gymsharks social media accounts across networks such as Facebook, Instagram and Twitter. These will then be compared to the previous year’s statistics to see if there has been a 25% growth. If the objective has been reached, then it is confirmation that the campaign has been successful.
&
Questionnaires and focus groups will measure the success of year 2 and 3’s objectives. As it is down to the preferences and opinions of consumers, primary research will need to be carried out to hear their direct responses. Gymshark should be the preferred sportwear retailer of 18-25 year olds and they should have successfully achieved a seamless omnichannel experience.
REVIEW.
41
CONCLUSION. In conclusion, this report has formulated many possibilities for Gymshark’s venture into a physical space. Adopting an omnichannel approach will tie in effortlessly with the brands personality and visionary direction. From the calculations made in appendix F, Gymshark would financially be able to advance and execute the communication plan that has been created, using under half of their £300,000 communication plan budget. The project is extremely viable for the brand, allowing them to excel further in the sportwear market.
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CHARLOTTE DUDLEY-SMITH N0730041 WORD COUNT: 3908
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Website Anon., 2016. Ecommerce click and collect benefits [online]. Loyalty Lion. Available at: https://loyaltylion.com/blog/ecommerce-click-and-collect-benefits [Accessed 07 January 2019]. Fast Track., 2017. Profit Track 100 league table [online]. Fast Track. Available at: http:// www.fasttrack.co.uk/league-tables/profit-track-100/league-table/ [Accessed 20 November 2018]. Gymshark., n.d. About Us [online]. Gymshark. Available at: https://uk.gymshark.com/ pages/about-us [Accessed 09 November 2018]. Market Line., 2018. Gymshark is a prime example of millennial marketing done right [online]. Retail Insight Network. Available at: https://www.retail-insight-network.com/ comment/gymshark-prime-example-millennial-marketing-done-right/ [Accessed 04 Janurary 2019]. My Protein., n.d. About Us [online]. My Protein. Available at: https://www.myprotein.com/ about-us.list [Accessed 16 December 2018]. Physiq Apparel., n.d. About Us [online]. Physiq Apparel. Available at: https://www. physiqapparel.com/about-us/ [Accessed 16 December 2018]. Rakuten Marketing., 2018. Gym beats budgeting; Londoners spend nearly £200 per piece of activewear [online]. Rakuten Marketing. Available at: https://rakutenmarketing.com/ en-uk/press-articles/gym-beats-budgeting-londoners-spend-nearly-200-per-pieceactivewear [Accessed 18 December 2018]. Trend One., 2018. Omnichannel Strategies, Macro-Trend [online]. Trend One. Available at: https://www.trendone.com/en/trend-universe/macro-trends/macro-trend-detail/ omnichannel-strategies.html [Accessed 29 November 2018]. Trend One., 2018. Customisation, Macro-Trend [online]. Trend One. Available at: https:// www.trendone.com/en/trend-universe/macro-trends/macro-trend-detail/customisation. html [Accessed 29 November 2018].
Blog
Anon., 2018. Why consumers love limited-edition packaging. Coloredge [online blog], 16 October. Available at: https://coloredge.com/blog/why-customers-love-limited-editionpackaging/ [Accessed 12 January 2019].
Anon., 2018. Three Direct to consumer hubs that have already emerged. Courier, (26), p.34
Bremner, C. and Boumphrey, S., 2017. How Should Business Respond to the Rising Demand for Experiential Consumption? Market Research Blog. [Online blog] Available at: https://blog.euromonitor.com/experiences-overtaking-consumers-buying/ [Accessed 20 January 2019].
Clegg, R., 2018. UK Labour Market: July 2018 [online]. Office for National Statistics: Gov. Available at: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/ employmentandemployeetypes/bulletins/uklabourmarket/july2018 [Accessed 29 November 2018].
Fleener, D., 2008. Get in the zone. Retail Contrarian [online blog], 07 May. Available at: https://www.retailcontrarian.com/2008/05/get-in-the-zone.html [Accessed 4 January 2019].
Euromonitor., 2018. World market for sportswear. Euromonitor International. Available at: https://www.portal.euromonitor.com/ [Accessed 18 December 2018].
Koozai., 2015. Above-the-line vs below-the-line marketing. Koozai [online blog], 01 July. Available at: https://www.koozai.com/blog/content-marketing-seo/above-the-line-vsbelow-the-line/ [Accessed 13 January 2019]. Patel, N., 2018. Is Influencer Marketing Dead? A Hard Look at The Newest Data (and What You Can Do Instead). Neil Patel. [Online blog] Available at: https://neilpatel.com/blog/isinfluencer-marketing-dead/ [Accessed 20 January 2019]. Orvis, G., 2017. The Ultimate Guide to Retail Store Layouts. Shopify Blogs [online blog], 18 January. Available at: https://www.shopify.com/retail/the-ultimate-guide-to-retail-storelayouts [Accessed 4 January 2019]. Resnick, N., 2018. How to Create a Ecommerce Brand like Gymshark. Sourcify [online blog], 22 February. Available at: https://www.sourcify.com/create-ecommerce-brandgym-shark/ [Accessed 22 November 2018]. Reynard, C., 2018. Death of the High Street. Forbes [online blog], 26 April. Available at: https://www.forbes.com/sites/cherryreynard/2018/04/26/death-of-the-highstreet/#73c8cd3045cf [Accessed 23 November 2018]. Tjepkema, L., n.d. 5 Examples of Successful B2C Marketing That Will Make Your Head Spin. Emarsys [online blog]. Available at: https://www.emarsys.com/en-uk/resources/ blog/5-examples-successful-b2c-marketing-head-spin/ [Accessed 12 January 2019].
Report
Fast Track., 2016. Britain’s private companies with the fastest growing sale. Fast Track. Available at: http://www.fasttrack.co.uk/wp-content/uploads/2016-Fast-Track-100research-report.pdf [Accessed 15 November 2018]. Gymshark Ltd., 2017. Financial Report 2017. Gov. Available at: https://beta.companieshouse. gov.uk/company/08130873 [Accessed 15 January 2019]. Loesche, D., 2018. Who’s visiting London? [online]. Statista. Available at: https://www.statista. com/chart/13788/visitors-to-london-by-country-of-origin/ [Accessed 15 December 2018]. Mallett, L. and Webber, D., 2018. Effect of taxes and benefits on UK household income- flash estimate: financial year ending 2018 [online]. Office for National Statistics: Gov. Available at: https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/ incomeandwealth/bulletins/nowcastinghouseholdincomeintheuk/ financialyearending2018#trends-in-household-income [Accessed 29 November 2018]. Statista., 2018. Total revenue of the global sports apparel market from 2012 to 2024 (in billion U.S. dollars)* [online]. Statista. https://www.statista.com/statistics/254489/totalrevenue-of-the-global-sports-apparel-market/ [Accessed 29 November 2018]. Other How We Can Ship Up To 50,000 Orders Per Day - New Gymshark Warehouse Tour, 2018. [YouTube] Ben Francis, 2 October. Available at: https://www.youtube.com/watch?v=Mv_ 45 HpZe6cH4&t=3s [Accessed 29 November 2018].
APPENDICES. Appendix A: Online questionnaire results
46 46
47
APPENDICES. Appendix B: Focus Group Transcript J= Jessica Sa= Saskia Sy= Sydney Are you do wear activewear/gym wear? J: Yes. Sy: No. Sa: Yeah. When would you, or do you wear activewear? Sa: To the gym. J: Yeah, not really for anything else. I’ll wear it to the shops and stuff. Sa: I’ll wear the leggings to chill in, like around the house but mostly to go and do actual exercise. J: I only really wear it to do exercise but if I’m going to the shops afterwards then obviously, I’ll keep it on. What is the most important element when buying activewear? Sa: If it makes my bum look good [laughs]. If I look good in it. Sy: If I was to buy any, I’d consider comfort. J: Comfort and quality, so I don’t like anything thin because I don’t want my underwear to show. Sa: Me too, especially if I’m doing squats or something. On leggings I like them to be really high waisted. Sy: I’d need something to really hold my boobs in, I’d need supportive clothing. Where are most of your gym clothes from? Sa: [laughs] Primark. J: Most of mine are Nike. Sy: I’ve seen New Look do some really nice sportswear. J: I do have some leggings from New Look. Sa: I do have some stuff from Matalan too to be fair. Sy: When I used to gym, George at Asda did good stuff. So, are a lot of your gym clothes from brands that aren’t specific on sportswear? Sa: I go for them because they tend to be cheaper. My intentions for going to the gym is to lose weight and therefore I don’t want to spend a lot of money on expensive brands. Hopefully they will be too big for me in a month or two J: Yeah, I’d want to treat myself when I reach my target weight. Sa: Yeah, that is what my plan is. When I feel a comfortable weight then I’ll probably invest in more expensive and nicer gym wear which are higher quality.
48
Have you heard of the brand Gymshark? All: Yes. Where have you heard or seen the brand? J: Social media and also in the gym, almost everyone is wearing it. Sa: I follow the ambassadors on Instagram, I enjoy watching Whitney Simmons and following her circuits. J: I follow Grace from when she was a Gymshark Athlete. What do you think when hearing the brand? Sa: Now, mainstream. Everyone is wearing it. Maybe a couple of months ago not so much, but now I feel like there is no other gym wear to wear. Why do you think that is? Sa: I think because brands like Nike do absolutely everything and Gymshark are so specific on just gym wear they have more of a focus. J: Yeah, I think because young people are very attracted to it. Someone older is less likely to be aware of it. What do you think their target age is? J: I’d say like 16-26 years old? Maybe 30? Sa: 18 to maybe 30? Do you own any items from the brand? Sa: No. J: No. Would you be more interested in the brand if they had a physical store? J: Yes! Sa: Yeah, because of sizing and things. All of Gymsharks clothing is modelled by – J: Amazingly fit people. Sa: Ridiculously fit people, therefore I can’t really imagine myself in it J: Also, a lot of their ranges include lighter colours and I can find that less flattering, therefore I’d prefer to see it on before spending my money. Sy: I think stores play a massive role on whether I buy something or not, I like to feel the clothes before I buy and also colours can be deceiving online.
Appendix B: Focus Group Consent Forms
49
APPENDICES. Appendix C: Bus purchase budget
50
Appendix D: Bus renovation budget
Appendix E: Communication plan finances
51
APPENDICES. Appendix F: Cost benefit analysis
Gymsharks monthly turnover have been made by assuming November, December and January are their months for highest sales due to Blackout, Christmas and consumers choosing to live a healthier lifestyle in January, there for purchasing gym gear. As the brands birthday is in July, it is likely sales will rise due to marking the occasion with a benefit for consumers, therefore causing more sales. Their ÂŁ40.5 million turnover has logically been divided throughout the 12 months. Gymsharks average selling price is around ÂŁ25 and the assumption that the average garment cost is ÂŁ6. As it has been difficult to find any figures that can give guidance for this particular campaign when referring to how much increase the brand could get, the sensible assumption of a 10% increase has been put into place.
52
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I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project. Signed: ……………………………………………………………………… Date:......................................
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