Gymshark Live project 3 year strategy and coms

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strategy and communication report

Chloe Butler

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GYMSHARK 3 YEAR STRATEGY Chloe butler n0751513 3951 words

note to reader.

PLEASE BE ADVISED THAT SINCE THIS REPORT gYMSHARK HAVE STARTED TO ADOPT THEMES AND SUGGESTIONS MADE. 3 Year Strategy Report-

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I confirm that this work has gained ethical approval and that I have faithfully observed the terms of approval in the conduct of this project.

Signed …………………………………………………………

. /………

Date…..……… /………

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Contents Where do they want to go?

Objectives ....................................................................... pg. 42 Marketing strategy year 1 ....................................................................... pg. 43 ....................................................................... pg.1 Website launch ....................................................................... pg. 44 ....................................................................... pg. 2 New athletes ....................................................................... pg. 47 ....................................................................... pg. 5 social media campaign ....................................................................... pg. 52 Gymshark shoes ....................................................................... pg. 54 ....................................................................... pg. 7 Physical space ....................................................................... pg. 56 ....................................................................... pg. 9 Strategy year 2 ....................................................................... pg. 64 ....................................................................... pg. 13 App development ....................................................................... pg. 65 ....................................................................... pg. 15 Strategy year 3 ....................................................................... pg. 67 ....................................................................... pg. 16 Nano technology ....................................................................... pg. 68 ....................................................................... pg. 25 How will they get there? ....................................................................... pg. 29 ....................................................................... pg. 30 Communication plan ....................................................................... pg. 70 ....................................................................... pg. 32 Month by month plan ....................................................................... pg. 72 ....................................................................... pg. 34 Budgeting ....................................................................... pg. 74 ....................................................................... pg. 36 Profits ....................................................................... pg. 76 ....................................................................... pg. 38 Measure and review ....................................................................... pg. 78 Conclusion ....................................................................... pg. 79 Appendix ....................................................................... pg. 80 Image list ....................................................................... pg. 89 Reference list ....................................................................... pg. 98

Where are they now?

Introduction Methodology Who are Gymshark?

Market health & core competencies Issues and challenges swot analysis tows analysis trends Competitor analysis Lululemon store research consumer segmentation Porters 5 forces The customer journey #Gymshark66 Research insights

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INTRODUCTION Established in 2012, by CBO Ben Francis, Gymshark was in prime position to capitalise on a growing interest in health and fitness among a millennial demographic. The brand have successfully exploited a gap left by traditional sportswear manufacturers such as Nike and Under Armour to provide fitted and practical clothing with a focus of looking good in the gym.

This report will introduce and analyse Gymshark’s current situation, regarding its challenges and successes. The report will cover an overview of the brand, and situational analysis, to identify where the brand is now. A three-year marketing strategy will be proposed with a focus of business expansion into a physical space to show where the brand wants to go. A one year communication plan will then be proposed to run alongside the first year of the marketing strategy, to demonstrate how the brand is going to get there. There will be a focus to ensure a pure omnichannel approach is taken to create a seamless experience between online and physical presence for their customers.

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methodology To support and inform this report primary and secondary research has been carried out.

Research objectives included finding customers and non-customers perceptions of the brand and to establish if there is a difference between how the brand thinks they come across to their consumers and how they are actually perceived.

Primary

Online

A questionnaire was created and circulated across Facebook and on a health and fitness group which has 73.3 thousand members. The survey was answered by 378 respondents and also had an extensive global reach, reaching the United States of America, Canada, Spain, Ireland, Australia, New Zealand and Germany giving the results a wide range of Gymshark’s target audience not just in the UK. 94% of respondents where female which although is not balanced it is viable due to Gymshark sales being predominately in womenswear.

Please see appendix 1 for the survey questions and responses.

Offline Offline primary research consisted of visiting GSHQ and Lululemon’s flagship store in London. The GSHQ visit helped to gain an insight into how the staff work in the space, their perception of the target consumer, information about their sales figures and what they wanted to see from the brief given. This gave the basis of understanding as to how the brand sees itself and how they expect to be perceived by consumers.

Visiting the Lululemon flagship store showed what competitors are doing with physical space. It gave design inspiration and a baseline for Gymshark to exceed above.

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Secondary Online Secondary research online consisted of reading reports published by Gymshark from Companies house and looking at Mintel, Euromonitor and Forbes, aided to outline Gymsharks current situation and place in the UK and global market.

Looking and WGSN and LS:N Global meant latest trend could be identified and discussed with the intent for Gymshark to apply to their brand in order to stay on top in terms of their competitors.

Offline Secondary research offline was carried out by Looking at relevant sections from books highlighted on the reading list as well as other Marketing strategy books; this helped to have a strong understanding of what a marketing strategy was and how to create one. It also helped to ensure recommendations made were realistic and well thought through. A live briefing from the brand helped to gain insight into the brand’s core competencies.

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“Be all that you imagined you could be - Be a visionary�

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Who are gymshark?

Gymshark are a fitness, apparel & accessories brand, manufacturer and online retailer based in the UK. They are supported by a combined 4.9 million followers across their three instagram pages, and have consumers in 131 countries.

Gymshark was founded in 2012 by Ben Francis and a group of his school friends. Since then, Gymshark has snowballed from a screen printing garage operation to one of the UK’s fastest growing companies in fitness. Currently the brand offers apparel and accessories for both men and women. (Gymshark UK, 2019)

The Gymshark brand operates under three core values: ”Family Our community of athletes, artists and visionaries stretch all the way across the globe. We are a family of like-minded individuals working to bring our respective visions to life.

Progression Our products exist at the intersect of engineering and art. To remain at the forefront of both, we need to be fearlessly progressive and consistently future-conscious. We are not futureproof. We are the future.

Vision In everything we do, be true to our own vision and respectful of others. We are here to bring ideas to life. There is no idea too big, or too small.” (Gymshark UK, 2019)

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Where are they now?

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MARKET HEALTH Gymshark competes in the fitness apparel and accessories market, which is highly saturated with big names such as Nike, and Underarmour, as well as small business all offering similar products.

The market has seen rapid growth and is predicted to accumulate $184.6 billion in profit by 2020, registering a CAGR (compound annual growth rate) of 4.3% during the forecast period 2015 2020. (Allied Market Research. 2019)

Such growth has been triggered by; - Increasing disposable income - More fitness-conscious consumers - More fashionable sports apparel available - Increased women participation in fitness and sports However, the market is highly threatened by counterfeit goods very similar designs and styles.

CORE COMPETENCIES key abilities or strengths that a brand has developed that give it a competitive advantage over its peers and contribute to its long-term success.

- Mastered and lead the way for influencer marketing - Utilised Instagram and its users to benefit the company - First to fill the gap in the market for fitted gym clothes that are functional and on trend - Have a loyal fan base - Have a family approach to staff and consumers alike 3 Year Strategy Report-

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issues and challenges Gymshark use pop-up stores to have a physical presence. Currently, the company are spending around £250k (Francis, B. 2018) on each pop-up as a direct investment. As these pop-up stores are primarily experiential they are “not necessarily to drive sales”. (Francis, B. 2018) Although they do see a spike in sales following a pop-up spending that amount of money without reaping profit is not a future proof plan and is only viable at the moment because their annual gross profit is so high, the longevity in this can be questioned.

One of Gymshark’s most significant issues they have experienced is growth beyond their website’s capabilities. Ben Francis (CBO) decided to switch his website provider from Shopify to Magento in 2013. It took eight to twelve months just to build and create the website, and by the time the site was finished, the company had doubled in size and had already outgrown the new unpublished site.

Blackout 2015 saw a significant website crash for Gymshark as the website was not built to deal with the amount of traffic the company was receiving after explosive growth. The failure cost Gymshark an estimated £143,000 in lost sales, but worse than the figures, it cost the company the trust it had spent years earning from customers expecting a great experience.

2,500 handwritten apologies later Gymshark returned to Shopify, and now use Shopify plus for their website, however they still experienced major blackout crashes in 2017 and minor crashes in 2018. 2018’s blackout bought further challenges where there was an issue when customers had a full basket they where put in a checkout queue, only to arrive at the checkout to discover the items had become out of stock. For a company who runs solely online, having an inadequate website rapidly looses customers and profit. (Winkler, N 2018),

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issues and challenges When speaking to the TheBusinessdesk, Francis said he wants to be “the UK’s answer to Nike and Adidas”. (Rider, S. 2018) However Nike and Adidas’s main sellers are their shoes, Gymshark cannot compete with these companies on a direct level without having a shoe line; also Gymsharks lack of physical stores is another contribution as to why they currently are not the UK’s answer to Nike and Adidas.

(Nike 2018)

Gymshark does not seem to be aware of the impact on people the content they post on social media is having. There appears to be a difference between what the brand think they think they are and what they are doing opposed to what consumers see them as and what they are actually doing. I.e; Gymshark communicate (Francis, B. 2018) that they provide better clothing for people who are self-conscious at the gym to make them more confident in clothing that fits, whereas research has shown (see pg. 38 & 39) people are made to feel self conscious, and some are put off the brand entirely by the type of models and content Gymshark uploads.

Gymshark seems to have an issue with online style stealer and fakes. Brands such as Varley, EHCT and Do You Even (See pg. 26 & 27) almost directly copy Gymshark’s designs, styles and colours, some even down to the colour names such as marl. Gymshark needs to be aware of these threats from other brands as well as sites selling fake apparel. Gymshark have already addressed some of the problem sites and brands via an Instagram video and need to continue doing so, as well as thinking about incorporating something into their designs that is hard to copy.

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Swot analysis - Lead the way with influencer marketing, had first mover advantage with great success.

- No physical permanent space, i.e. a store.

- Small range of consumers (not diverse).

- Strong and loyal fan base.

- The brand seems elite and unapproachable.

- Turnover is increasing year by year with 2017 making ÂŁ41m (Companies House 2017).

- Owner works closely with the brand and there is a strong sense of belonging and family between staff (Francis, B. 2018).

- No other platform for purchases other than the

website.

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Strengths - The brand is making enough profit to diversify and open a physical space.

- To expand platforms and create an app.

Opportunities

- Become more diverse in their advertising and social media content.

- Take on ‘new image’ athletes.

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- Does not utilise Instagram shopping function.

Weaknesses

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Threats

- New entrants to the market.

- Other brands stealing ideas and designs, i.e. Do You Even and the flex design.

- Consumers are becoming very judgemental of brands in terms of inclusivity and diversity.

- Relies heavily on Instagram, i.e. another platform, Gymshark would be at risk if Instagram was to fail.

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tOWS analysis Strengths - Influencer marketing - Strong and loyal fan base - High profits and Turnover - Owner works closely with the brand Opportunities - To expand platforms and open a physical store - Become more diverse in advertising and social media content

Threats - New market entrants - Online style stealers - Consumers are more judgemental of brand - Relies heavily on instagram

- High profits and turnover will allow the brand to expand platforms and open a physical store - The strong and loyal fan base will take on and push any new campaigns and social media content added

- Having a strong and loyal fan base will mean consumers are less likely to use new market entrant or ‘style stealers’ companies

Weaknesses - No physical permanent space - Small range of consumers - Not utilising onminchanel

- No physical permanent space is combated by opening a new store - The range of consumers will increase and become more diverse as new social media content is created.

- Using omnichanel marketing

will be will imperative to the brand whilst expanding platforms

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T&S t&w

-High profits and turnover allow the brand to expand platforms so the reliance is not so heavy on instagram

Threats

- Online style stealers and new market entrants will no longer be such a threat once gymshark have a physical store

- Not utilising omnichanel and a heavy reliance on instagram suggests Gymshark should expand platforms and take an omnichanel approach

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MACRO AND MICRO TRENDS

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health & wellbeing Health and well-being has become a huge macro trend. People now more than ever are taking more interest in healthy eating and a healthy active lifestyle. (TrendWatching. 2017) Consumers are more likely to be reaching self actualisation and achieving full potential and taking care of their life and health.

(Malsow, A.H. 1998) See appendix 2.

Athleisure and lifestyle “Fuelled by the rise of wellness and a move to healthier, active lifestyles, athleisure has seen the sportswear market grow 42% in the last eight years. Now valued globally at $270bn dollars, athleisure has steadily stolen market share from non-athletic apparel as more people choose active-wear, whether working out or not.� (Varga, C. 2018)

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Technology The development of technology supports the health and wellbeing trend. Wearable technology such as Fit Bits and apple watches become part of their owner’s everyday lives. The gadgets are highly accessible, so it becomes easy to track distance, time, speed, heart rate and calories burned. Apple watches and Fit Bits, in particular, have been successful because they aid the user and easily becomes integrated into everyday life. The use of modern technology enhances and betters the consumer’s lifestyle encouraging them to be more active and health conscious.

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Sustainability & plastic

The past couple of years has seen a complete attitude change towards plastics, especially one-use products such as carrier bags, water bottles and packaging. Brands such as BullDog and Bybi are leading the way by using natural sugarcane to produce polyethene, which is then made into a green plastic alternative. The sugarcane plastic has the same benefits of regular plastic regarding purpose but is 100% recyclable and biodegradable. Gymshark should look at incorporating this into their products. Accessories sold such as phone cases, gift cards, and water bottles can all use this new plastic as an alternative. Although for Gymshark the most significant opportunity for plastic waste reduction would be to use the sugarcane plastic for their delivery bags and labels.

A company called sport pursuit has already taken this step with their delivery bags and is proving successful, because the bags are 100% recyclable it also means Gymshark could look into recycling the bags that are delivered back to the company from returns to make new bags, so nothing is wasted.

Stores could also have bag deposit stations so consumers can return their delivery bags to be recycled.

This would set Gymshark apart from all its competitors, attracting customers interested in saving the planet and reducing plastic waste. It will separate Gymshark especially away from the smaller ‘copycat’ brands as they will not have the infrastructure or finances to take this on board.

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Minimalism “Minimilism has taken over design and lifestyle culture. It’s in clothes, coffee shops and bar interiors, and modern website designs. The minimalism aesthetic (characterised by streamlined design, usually in black and white, with clean lines, industrial materials, and, at times, a bit of a ‘clinical’ appearance) is permeating modern design. But the rise to prominence of this aesthetic represents more than just a shift in the artistic expression du jour. It represents a fundamental shift in our core philosophy and orientation to the material world; a shedding of the materialist dogma that permeated the 20th century.”

(Masselos, J. 2018)

GSHQ aligns perfectly with the minimalism trend to produce a pleasing aesthetic. This kind of environment aids staff to create their best work. This kind of design should be carried out throughout any physical space Gymshark opens.

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Omnichannel Multichannel is a retail industry term used to describe brands that sell their products across different platforms such as a website, marketplaces like Amazon and eBay, brick-and-mortar stores, and on social media such as Facebook and Instagram.

Omnichannel is the name given when brands have a seamless and cohesive user experience across all touchpoints of the brand. This differs from traditional marketing, where individual channels were optimised without necessarily taking the whole experience into mind. When omnichannel is perfected it means customers should get the same level of involvement with the brand, have the same good experience and be able to recognise the brand on each separate platform.

(Lynch, S. 2018) Although functionality is imperative omnichannel approach is supported by design, i.e. making sure the same font, logo, colours and brand message is conveyed throughout, with the aims of blurring the line between digital and physical channels. Although functionality is imperative omnichannel approach is supported by design, i.e. making sure the same font, logo, colours and brand message is conveyed throughout, with the aims of blurring the line between digital and physical channels.

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COMPETITOR ANALYSIS The CBO of Gymshark stated that “Gymshark have no direct competitors� (Francis, B. 2018) this shows the brand are either not aware what other companies are doing, or they do not think they are a threat. The positioning map creating opposite shows that Gymshark have several direct competitors, some have a more limited range of products or are more style orientated, but these are still brands that could easily take business from Gymshark.

Being aware of competitors actions sets the benchmark for Gymshark to then excel above. Due to the position of the brands currently under armour customers may not consider Gymshark products because it is deemed to style rather than function orientated.

Gymshark need to promote the range of products they sell and their functional benefits not just the appearance on Instagram.

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COMPETITOR ANALYSIS

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Gymshark trade in a very saturated market, so competition is bound to be plentiful. However, Do You Even almost directly copies Gymshark’s flex range, even down to the contouring on the leggings and top using a lighter shade of fabric. The only real differences between the leggings are close up features. Do You Even’s leggings appear to be more of a knitted fabric than Gymshark’s flex and the leggings are high waisted whereas Gymshark’s are low rise. At first glance or in a gym where they would not be studied in depth the presumption would be made that they are Gymshark products.

Gymshark need to be aware of companies like this so they can stay ahead with new innovative designs and concepts

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COMPETITOR ANALYSIS

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lULULEMON RESEARCH The Lululemon flagship store on Regents street London was visited to gain insight into what other brands and Gymsharks competitors are doing with their physical space.

Highlights and positives from store; - Very attractive and inviting - Well stocked - Garments where laid out in blocks of colour which made the whole store look physically appealing - Sections had interactive screens with the influencers pictures above the stock to show whos range it was - Big interactive screens showed dates times and locations of up coming events - There was a small gym inside the store where classes are held - Regular hydrate stations, where customers and gym users could re fill their water bottles

Downsides and negatives from store; - Shop seemed too perfect, as if a consumer would not be able touch products - The small gym, seemed to small to have more than two people using it at once, it also was not private and store staff claimed its rarely used - The hydrate stations looked more like an aesthetic of the store rather than for use - The staff seemed rude and judgemental which made consumers not stay in the store for long - The store only had two other people in it at peak lunch hour in Regents Street, felt very empty and cold - Generally underwhelming for their flagship store

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CONSUMER segmentation Segment 1; age 14-18

Segment 3; age 25+

-Pocket money -Christmas and birthday money -Minimum wage part time

-part time/full time job -loan/overdraft -pays for other expenses, has to budget for food/rent ext

-Full time job -Less disposable income -Bills, mortgage ext -Paying off student debt

Value proposition

-Athlete inspiration -not hugely into fitness, (more for comfort)

-Wanting to look good -tight for money -fitness conscious -finding individuality -fast paced lifestyle

-Budgeting -Securing personality -May choose other brands Less likely to succumb to marketing ploys

Type of engagement

-Social media -snapchat, iNSTAGRAM -yOUTUBE INFLUENCERS -does NOT HAVE ACTIVE EMAIL/DOES NOT CHECK REGULARLY

-sOCIAL mEIDA- sNAPCHAT, iNSTAGRAM, youtube Linkedin -Website -University peers/Word of mouth

-Social media- instagram, Linkedin -Website -peers, close friends -work colleagues

-leggings Tracksuits -Hoodies -acsessories (phone cases)

-would use the whole selcetion of products -fitness and comfort lead

-SPORTS BRA -LEGGINGS -JOGGING BOTTOMS AND LOUNGEWEAR -WOULD WEAR IF INTO FITNESS

Financial

Product selection

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Segment 2; age 19-24

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TARGET CONSUMER

mIA AGED 15 TRIED TO ACT AND LOOK OLDER HAS OLDER SIBLINGS who she looks up to, and borrows makeup and clothes

Shaun aged 23 at his peak of physical fitness has a big group of gym enthusiastic friends

Rachel aged 28 at the peak of a sucsessful career tries to look younger than she is, has always been fit and active, loves yoga

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Porters 5 forces Threat of new entrants Arguably one of Gymshark’s biggest threats is new entrants; there are numerous companies just on Instagram alone with a remarkably similar product offering.

Gymshark itself is a relatively new company so could be threatened by another company especially if they have more innovative designs and incorporate technology. Gymshark need to stay on top of their game and not get complacent in the market, by continually moving forward with technology and designs.

Threat of substitute products The health and lifestyle and specifically active wear markets are extremely popular and there are lots of competitors. There are already products on the market that almost identically copy Gymshark’s products. Gymshark have very limited power in this section due to the large risk of substitution. Gymshark need to stay on top of the game with innovations to create and maintain customer loyalty.

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Competitive power/rivalry Gymshark faces intense competition regarding price and product amongst consumers. Consumers are likely to buy the cheapest product online.

Gymshark face direct competition in terms of Instagram companies with the same product such as Do You Even, Squat Wolf, Varley, Echt and Alo as well as with larger companies who are competing for consumers, such as Nike, Adidas, and Lululemon.

Bargaining power of supplier Gymshark being a large company, has large quantities of orders, meaning they can get materials from the supplier at a lower cost, also due to the saturated sportswear and gym apparel market there will be plenty of choice for Gymshark to switch suppliers if they desire, either for a lower price point, or higher quality. The ability for Gymshark to switch suppliers so easily means that their business will be in demand amongst suppliers who will all compete to get Gymshark’s business.

Bargaining power of buyer The buyers are Gymshark’s customers who purchase products online, again due to the saturated market it gives lots of options. However, unlike supplier powers, the buyer having a large amount of power could diminish sales. The customer has every other sportswear brand at their fingertips and will research and look at other brands. Lower price point, customer service, promotions and brand loyalty are a factor as to which brand is chosen. Gymshark needs to create a loyal fan base and keep releasing new and innovative styles and designs.

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The customer journey The customer journey allows a brand to see the complete pattern of consumer behaviour from the perspective of the consumer as they purchase products. An ideal consumer journey should interact with most if not all of the brands touch-points. The customer journey also will highlight areas with issues which might make the consumer drop out of the purchase. By analysing and the brand can aim to minimise ‘drop outs’ and therefore increase their conversion rate and decrease the bounce rate.

customer JOURNEY BASED ON SEGMENTATION ONE (AGE 14-18) Desire (aspiration)

Seeing Gymshark products on instagram and on other people, maybe an older sibling

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Research- looking at other brands

Consideration, seeking approval from peers

seeking approval from elders

Justification

using INSTAGRAM, YOUTUBE AND BROWSING WEBSITES TO SEE THE WHAT OTHER BRANDS ARE OFFERING

Show friends desired product in a group chat, or via text, instagram or iMessage

asking MUM FOR PERMISSION OR SHOWING OLDER SIBLINGS, OTHER ADULTS

aSKING MUM, LOOKING AT WEBSITE AND INSTAGRAM REVIEWS AND QUESTIONING IF YOU NEED THE PRODUCT

2018

The example below shows the customer journey for an average consumer highlighting where along the journey they may leave Gymshark’s platforms and abandon the sale.

Instagram research

Looking at other brands

Consideration, seeking approval from peers

browsing the website

shopping online, adding items to basket

Discovered the brand on instagram, consumer scrolls through the imagery

The consumer will then look at other brands offering similar products

the consumer will ask friends opinions of the brand and weather they should purchase

The consumer will look at a variety of products and see how easy the site is to navigate

The consumer will browse the website and add desired items to bag

iS PUT OFF THE BRAND BY THE IMAGERY, gymshark is not a brand I want to buy into drops out

Another brand is cheaper and more your style

A friend has has a bad experience/says the fit isn’t accurate and has expensive shipping drops out

Sizing isn’t clear, you get put in a queue, the models do not represent your size Drops out

Your size isnt in stock, there is no student discount code, shipping is expensive Drops out

drops out

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#gymshark66

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“They say it takes 66 days to form a habit. We believe it takes 66 days to change your life”

(Gymshark UK, 2018)

In 2018 Gymshark launched #gymshark66. Instagram followers between the dates of January 1st and January 7th upload a photo of themselves in their Gymshark gear with the date and use the hashtag #Gymshark66, for the next 66 days participants form new habits such as a healthier diet and a new exercise regime. After the 66 days participants post another photo in their gym-gear with the date to show their progress. Gymshark then choose a ‘winner’ who receives a years worth of Gymshark gym wear and new releases just like their athletes.

Research showed that over 80% of participants stated that the content published by Gymshark on instagram makes them feel self conscious and that they can only wear Gymshark if they look like the models and overall puts them off buying the brand. (see appendix 1) Gymshark 66 is a perfect opportunity for Gymshark to interact with their customers and overall a great idea by Gymshark. However they could easily push this to the next level, by trying to incorporate the 80% described above, this could be achieved by choosing someone who does not fit the typical Gymshark image, publishing who wins #gymshark66 and having them as an affiliate to make the instagram image more rounded and less off putting to non consumers.

From this the brand will slowly become visibly more inclusive to customers.

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Research insights The survey had a reach of 378 respondents in eight different countries.

Respondents were shown a series of imagery taken from the main Instagram page and 53% of people stated that the imagery used makes them feel self-conscious and that you can only wear Gymshark if you look like the images so they won’t purchase the products’ 29% of respondents said the imagery shown was ‘unoriginal and unrealistic but they may still be tempted to purchase’ and shockingly just 19% stated that the images are inspiring, and motivational to buy Gymshark products and to get to the gym. Based on the brands’ commitment to customers this will be quite a shocking result and not at all what a brand would want to achieve from its instagram content

53% Countries reached (blue) 378 respondents

29% 19%

Respondents where given the opportunity to add a comment about the brand and 38% of comments stated they had not heard of the brand which is is a significant statistic but is made more viable considering the question wasn’t tailored to that response.

Also to reiterate womenswear’s popularity, out of the people asked that have purchased Gymshark products 38% of orders contained a pair of leggings which proves the popularity of their leggings and that is not to be ignored.

94% of respondents where female which although isn’t balanced it is viable due to Gymshark sales being predominately in womenswear.

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38%

Of people stated they have never heard of gymshark

36% 94%

Of orders contained a pair of leggings

of people asked are Female

So what?

From these results it gives an insight into the public’s perception of gym-wear and Gymshark. Due to the large sample size and the responses given it would be wise for Gymshark to take them on board. This can be achieved, however; - Instagram content needs to be altered or tailored - Sizes need to be more consistent and follow the size format for the specific country.

- Introduce more and more diverse athletes - Females need to be the main focus for the company however Gymshark need to be aware of this if they do not want to loose their male clientele. It is also worth noting that men are less likely to fill in an online survey so this may not be representative of all Gymshark’s customers (Grinell Smith. 2008)

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Where do they want to go?

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Marketing strategy

Overall the content of the three year strategy proposal consists of; + Opening a physical experiential store + Launching Gymshark shoes + Teaming up with a more diverse range of athletes + Website and size tailoring + IOS and Andriod App launch + Charge cell technology integration All with the aim of gaining a new range of more diverse customers.

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Objectives To achieve a ÂŁ1.6 million profit from gymshark shoes in the first year of launch.

To achieve a motnhly average footfall rate of 12,000 customers in the experiental store within the first year .

To increase attendance to pop-up’s by 10% from the average attendance rate after the new athlete launch

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strategy plan

-year

One

2020

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2018 Page.43

Website and sizes re-launch Currently sizes online are labelled XS, S, M, L, and XL. As an online-only brand, sizing needs to be clear and the small, medium, large format can vary hugely between different countries and companies. To benefit customers the website needs to be updated to have sizes relevant to their location. The Gymshark site already has area specific websites so this change will be minor, just to rename the sizes. For example size 6,8,10,12,14 for the UK and 34,36,38,40 for Europe. Not only will this be easier for the customer but insight from the focus group revealed that someone who is a size 14 or 16 is put off buying from a site if they have to select a size extra large. (see appendix 2) Although there is a size guide comparison under the help section, it would be more beneficial for the customer to have the relevant sizing on the product page.

Above is a new design for labelling garments with two fundamental changes.

The first being a simple change to show the range of sizes available, making a larger size label not look so apparent that the garment is a larger size.

The second being showing the conversion of sizes, meaning that the labels in garments will be consistent worldwide, making production easier. It also means that it will correlate with the proposed website changes, the example above shows a size XL so if a customer from Europe purchased and selected 40-42 on their area-specific version of the website the size that relates is still on the label. This will diminish confusion between sizes, provide clarity and mean that there will be no need for different labels for different products depending on where they will be shipped.

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“One of the main barriers to shopping online for clothes is fit and it is still a category where consumers like to try on and see items in person. However, trust in a retailer where they already shop and previous experience of their clothes sizes makes it easier for them to migrate online. This benefits multichannel retailers and means that pureplays have to work hard to gain trust and loyalty from customers.”

(Mintel 2010)

Alongside the existing web imagery, a larger model should be pictured. (exemplar left) This allows consumers to see what the garments look like whether you fit the typical ‘Gymshark image’ or not.

A ‘model wears’ section on each product to show what size the model is wearing will help customers choose the right size, many other fashion websites such as Boohoo, Missguided and ASOS all have this feature (see below) this will bring Gymshark in line with other companies that the target consumer will likely use. The size of the larger model will also be shown. All suggestions will prevent more customers from dropping out of the sale along the customer journey (explained on page 32&33) and should reduce the number of returns due to sizing issues.

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New athletes In order to create a business image that is more relatable to consumers, new athletes need to be taken on board. Currently, Gymshark athletes are all extremely fit and take their look to the extreme, instead of inspiring customers research has shown that this image is putting people off the brand and deterring new customers. Two examples of people that can be used as the new athletes are as follows, a recommendation of adding four in total will balance out the existing athletes. Another example of the type of people that should be added is a male and female beginning a bulking/weight loss journey so that fans and followers can see the progression and hard work it takes to get the body of the current Gymshark athletes.

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New athletes

Christina.pro.sthetics Christina is a certified fitness trainer, social media influencer and a below the knee amputee with 27.4k followers. Interested in health and fitness, a very aesthetic Instagram profile is run showing food, lifestyle and exercise.

Although in extremely good shape Christina is larger than the current Gymshark Athletes and is more of the body type that should be being shown through athletes and imagery posted on the website and Instagram page. The prosthetic leg that Christina uses changes the way she trains and discusses this with her followers via Instagram and you-tube.

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Lauren rose

New athletes

Lauren is the survivor of a car accident which saw the vehicle she was travelling in plummet 300 feet, with Lauren being ejected by the car.

Three surgeries, a broken and fractured back, spinal cord damage and two punctured lungs later Lauren was left completely paralysed from the waist down. Lauren shares her story along with her gym training and determination to teach herself to walk again with her 153k followers.

Lauren already wears a lot of gymshark products whilst she is working out so becoming an athlete would be a natural progression and will not have fans questioning her loyalty to the brand.

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New athletes

hannahvrose_fitness Hannah Rose has a following of 3.1k and runs a fitness and food account.

Hannah has been chosen as a recommendation as an athlete as she regularly trains in the gym but has a more achievable body type and shape than the current athletes, while remaining fit, healthy and active. If Gymshark were to employ a range of plus size athletes it would dilute the brand essence and consumers will see the transparency. This could lead to having more negative results than positive. As consumers “are more demanding of products, services and brands than ever before� (Go.euromonitor.com 2017)

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Social media campaign The aim for the social media campaign is to introduce a set of new athletes.

The campaign will consist of a video showing consumers who the new athletes are.

A series of short clips of each athlete working out in The black country barbell gym in Birmingham will feature to demonstrate what each athlete is about. For example from the three athletes previously proposed, Hannah Rose squats and uses weights and focuses on her legs and glutes. Christina focuses on her upper body and has to adapt her technique to accommodate her prosthetic foot, and Lauren focuses on her upper body but mainly core strength while learning how to control her paralysed legs. The video will then show the athletes in the loungewear range and tracksuits at home, eating and generally relaxing.

This is to introduce the idea that Gymshark products are not just for heavy workouts, they can also be worn while relaxing for comfort.

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Voice over The voice over to the video will explain that Consumers should not let their insecurities/flaws prevent them from getting to the gym in Gymshark’s products. Obstacles should be seen as opportunists to improve,

HASHTAG# The voiceover to the video will explain that Consumers should not let their insecurities/flaws prevent them from getting to the gym in Gymshark’s products. Obstacles should be seen as opportunities to improve, the voice over will then continue to explain that consumers should share their insecurities or unflattering pictures with the hashtag #MYGYMSHARK. The result of this campaign will be an introduction and launch of the new athlete’s careers with Gymshark and to inspire

LOCATION;

models;

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gymshark shoes Gymshark wants to be “The UK’s answer to Nike and Adidas”. (Rider, S. 2018) However Gymshark lack poignant product that Nike and Adidas excel in. Shoes.

In order to compete directly in that field, Gymshark need to launch a shoe line.

Jordan Molesworth is a Gymshark designer and has released details of a prototype for a shoe line via Behance. The design consists of an outdoor shoe with a removable inner used for wearing on mats and whilst lifting.

This design is highly functional and therefore is likely to be highly rated by Gymshark’s loyal consumer base. There also is no other shoe like this in the market currently, therefore giving first mover advantage.

From this base product, the shoe can be diversified where just the inner shoe could be sold separately, as well as a less functional outer shoe to be worn casually as part of the rising athleisure trend.

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Physical space

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experiential store Gymshark’s needs to follow in the footsteps and excel past competitors such as Nike and Lululemon in opening a flagship experiential store. Gymshark as a brand need to be experiential, currently, there is a lack of consumer physical space, combining the two is an opportunity not to be missed. It simply would not work for Gymshark to open a generic shop that does not fit the theme, feel or Gymshark brand, the store needs to be omnichannel with its other platforms and provide an inviting and revolutionary space for its customers to interact with the brand.

Just like Gymshark Head Quarters (GSHQ) in Solihull this store needs to be built and specifically tailored for purpose, this will give the brand flexibility to customise as they desire. The GSHQ building itself is beautifully designed and aligns perfectly with the brand, it also adopts trends such as minimalism, (pg.20) The design for the store should be kept in line with this standard, elements of the building should integrate into the store, i.e. the industrial feel to the building with exposed pipe work and concrete, the green element with a large amount and variety of plant life and greenery, design features such as writing on the walls, and the logo seating area visible from above.

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experiential store Clothing and rails need to have a range of layouts, alongside tables and rails where stock is plentiful there needs to be areas like below that are laid out in sets to show the consumer pairings and style suggestions. The shelves need to be minimal and sleek. Black shelving will keep in line with GSHQ along with having plenty of greenery.

Large scale split TV walls should be used to display latest campaign videos, clips of athletes, and athletes using Black Country Barbell gym. A screen like this should be used on the left hand side of the store from the entrance, this is due to the fact that “90% of people turn right when they walk into a store� this is due to majority of the population being right handed and is something to keep in mind when designing a store, if a screen like this is placed on the right then customers will enter and find themselves too close to the large screen, so placing on the left, leaves the right hand side to contain the latest range of items and consumers will then have the screen to look back at.

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experiential store The hashtag from the new athletes campaign #MYGYMSHARK and the slogan Gymshark - any where - any one will be displayed in large format on the walls of the store, this can be changed to correlate with the latest campaign.

Water stations will be included throughout the store, with clear signage to make it clear is is for customer use, this will encourage more water consumption and relates to the plastic reduction trend as old bottles will be filled to prevent customers from buying new whilst they are shopping.

A full scale Gym will feature on the top floor of the store, being upstairs will keep it away from general shoppers so the space does not look uninviting to the people in the gym or the people in the store. However a strip of perspex floor will run through the centre of the gym (away from equipment and people working out so that it is visible from below but not intrusive.

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experiential store Whilst at GSHQ an observation made was around lunch hour, all staff from different departments came and sat and ate together, re-establishing Gymshark’s family aspect. Not only was everyone sat together but they where enjoying delicious food. HQ uses a catering company called Thomas Franks Food, who use 100% sustainable, local, fresh ingredients.

This canteen/cafe area named refuel at HQ should be re-created inside the store, it will encourage people using the gym to eat a healthy snack either before or after using the gym. General shoppers to stop and eat or have a drink, and will also encourage a whole new range of consumers into the store, this will then mean members of the public that are not necessarily Gymshark customers will be encouraged into the store and introduced to the brand.

Having refuel within the store will also make the store more experience driven.

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strategy plan

-year

two

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2021

App development Gymshark’s only platform for sales currently is their website; this is incredibly restrictive so alongside opening a store, Gymshark should also have an app. Most other fashion and fitness retailers have apps, which puts Gymshark behind in this field. It also does not correlate with the brand entirely, as being revolutionary and market leaders when something as simple as an app is not present.

The app should be highly functional and compatible with IOS and Andriod. Users will be able to log in with their website account to make quick purchases and be able to save desired items to a wishlist that will be permanently saved and always accessible.

Other recommendations for the app is to have athletes content and blog posts that feature on the website.

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strategy plan

-year

three

2022

3 Year Strategy Report-

2018 Page.67

nano charge technology Nottingham Trent University has recently invented a new technology called a solar cell. The individual cells which are the size of a flea can be sewn into fabrics thus creating a network of miniature cells which generate electricity. According to professor Tilak Dias “The clothing would look and behave like any other textile� meaning it would be perfect for Gymshark to use in their fabrics. The technology has already been proven to charge items such as phones and smartwatches. By incorporating this technology in the third year of the strategy means it allows time for the technology to develop.

Sportswear and wearable tech is beginning to merge, which is expected to continue over the coming years.

Currently, wearable technology in apparel is limited to tracking heart rate and movement, combining this new technology into into Gymshark ’s gym clothing will push the company forward, and beyond what competitors are doing, they will have first mover advantage as Gymshark would be the first in the market to use this kind of technology.

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How can nano solar cells be used within Gymshark clothing?

Gymshark can easily follow suit with other gym wear brands and incorporate smartphone pockets into their garments, for men a pocket similar to the one shown can be incorporated into men’s leggings and tracksuits. Another option is the pocket shown on the sports bra. This location would mean the wearer has instant access to their phone if they need it, but it will not get in the way during a workout or distract the wearer from their workout.

However a zip or seal to ensure someone else could not easily steal the phone would be advised, Gymshark cannot be the cause of phone thefts in the gym. A wearable strap could also be designed to give the user flexibility as to where they would like to wear their device, i.e. around the thigh, waist or arm.

The pockets will have the nano solar cells woven into the inside of the pocket so that the device can be charged while working out. The nanochips can also be made compatible with the Gymshark app. A simple update to the existing proposed app will create a ‘my Gymshark’ section where the user will open the section on the app when entering the gym and press ‘begin workout’ the app will then read data from the chip such as heart rate, calories burnt and other data that the user can look at and track progress.

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How will they get there?

Communication plan The communication plan is based solely on below the line advertising, this is due to the target audience, being current and new customers aged between 16-25 men and women.

This generation are active social media users, a traditional above the line TV advert would not target the correct audience, or gain enough reach to warrant paying commission to an advertising agency. (Pew Research Center 2018).

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Month by month schedule

jan- re-Launch website with tailored sizes

FEB- Teaser clips of new size range

Launch improved website, and announce on Instagram via a post and story.

Use Instagram stories to share little clips to tease the larger tailored size range.

may- Youtube video by Ben showing the store being built

jun- Launch gymshark shoes

JAN feb mar apr may jun jul aug sep oct nov dec

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Release an in depth YouTube video by Ben showing the experiential store being built behind the scenes as the YouTube videos that are currently uploaded are really insightful and are popular among consumers.

sep- YouTube video by Ben showing shoe production and distribution Update YouTube channel as to how the shoes are made and distributed i.e. another behind the scenes.

Announce the launch of Gymshark shoes via instagram and the website homepage. Also send shoes to athletes new and old so they can promote to create hype.

oct- First pop up with new and old athletes This is a long enough time frame after their launch in April to create a strong fan base and create hype. Held at the new experiential store to keep costs low and direct people to the store.

mar- Releasing teaser clips of the new experiential store

apr- Launch of new ‘athletes’ campaign

Via instagram, a series of little videos will be launched as teaser trailers for the new experiential store, ie the being built and progress.

The new athletes will be announced to the public via instagram as well as via a blog post on the website about each one.

jul- Open experiential store!

aug- Shoes go online

Grand opening of the store, the new summer collection will be stocked as well as shoes however both will only available in store for the first month after launch. Meaning they will become exclusive and therefore desirable.

Summer collection and shoes will become available online. August is a quiet month for Gymshark so this plan will be good here to peak sales plus it means the business will have time to launch the store.

nov- Winter line launch and bLACKOUT! Winter collection will be online and the company will be preparing for BLACKOUT and uploading the relevant Instagram and website posts in a similar fashion to this year.

Dec- Keep fans and customers up to date with videos.

Ensure all social media is up to date and continue using Instagram highlights and stories and to focus on excellent customer service to make Christmas shopping easy and hassle free.

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Budgeting

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Month by month plan for the financial outlay to achieve one year communication plan.

With a total spend of ÂŁ53,512.80 out of the ÂŁ300k, reasoning for spending just under 18% of the total budget is due to trying create some stability in spending within the brand. The proposed activities in the second and third year (the app and nano cell technology) will cost a huge amount of money so spending the full ÂŁ300k for the first year seems excessive.

Please see appendix 4 for rationale for spending and figures.

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Financials- Profit sheet

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Month by month plan for the financial outlay and profit achieved by the launch of Gymshark shoes.

With a total spend of £700,960.80, a £1,699,039.20 profit can be made based on a 10% profit increase from Gymsharks annual turnover. Please see appendix 5 for a rationale for spending and figures.

£700,960.80 SPEND £1,699,039.20 PROFIT 3 Year Strategy Report-

2018 Page.77

Measure and review To achieve a £1.6 million profit from gymshark shoes in the first year of launch.

It is imperative for objectives set to be measurable in order to determine whether they have been met.

Measuring profit for Gymshark shoes can be completed by tracking sales of the new product.

To achieve a motnhly average footfall rate of 12,000 customers in the experiental store within the first year .

To increase attendance to pop-up’s by 10% from the average attendance rate after the new athlete launch

Measuring footfall in a store is tracked with sensors in the doors that will count how many people enter and exit the store and when producing a figure as to the store’s footfall per day or hour.

Attendance to a pop-up can be tracked with similar equipment to the store or by using a ticket only system or a signing in the process for entry.

Software such as Talkwalker are available for companies to purchase for a full range of tracking across all channels to produce statistics such as social media analytics, search content and when the brand’s name or products are mentioned on any site or social media.

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conclusion Gymshark are market leaders, have a high turnover of profit, and have seen vast profit increases very rapidly.

However, recommendations have been made to fill in gaps of the brand and to push above the current situations of competitors. This report has introduced and analysed Gymshark’s situation in terms of successes and challenges, and a three-year strategy and one-year communication plan has been proposed.

If Gymshark takes on recommendations made in this report along with taking a sophisticated omnichannel approach the brand will achieve higher profits, attract a new and more diverse group of consumers and achieve a seamless experience between online and physical presence.

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Chloe Butler

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2018 Page.103