EXECUTIVE SUMMARY CLAUDIA GOLLAND N0735243
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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 2 (student) ………………………………………………………………………
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CONTENTS. 6 Introduction - The business opportunity 8 Brand overview 10 Marketing strategy 12 SMART objectives 14 Communication strategy 16 Future growth 18 Conclusion 20 References 21 Bibliography 22 Image references 24 Appendix
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INTRODUCTION. - THE BUSINESS OPPORTUNITY.
This summary is for a project that demonstrates an analysed market overview and situation analysis of the sportswear and apparel market, as well as primary and secondary research to find the best possible route for Gymshark to take when opening a physical space, within the three year marketing plan. This plan will be supported by statistical data and direct quotes from the Gymshark management. In order to ensure this space will be successful, a one year communication plan has been produced to promote the physical space and spread brand awareness. This plan is very reachable for Gymshark as it has already established itself globally in just six years with 60% of its sales coming from the USA. Therefore with the correct execution a Gymshark physical space should be very successful.
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BRAND OVERVIEW. Gymshark was founded in 2012 by Ben Francis in his garage after recognising a gap in the market for fitted gym clothing. Gymshark is now part of the online gym apparel and accessories market which is segmented off of the Global market for sports and fitness clothing which is said to reach US$231.7 billion by 2024 (Global industry analysts, 2018). Gymshark has become one of the largest online retailers in this market. It has more than 1.2 million customers, as well as having 11 international country specific online stores. It also is a brand that has a strong presence on social media with over 4 million followers across all platforms. This is their main form of promotion using social influencers called Gymshark athletes that are ambassadors for the brand. This is where Gymshark have the edge over their competitors as their ambassadors create a unique aspect to the brand.
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MARKETING STRATEGY.
- YEAR 1 The overall strategy plan is to open an interactive physical store with technologies including scanning machines and self service checkouts to create a positive experience while shopping. This is because from primary research found, 71% of people were more likely to shop in-store if there was an experience available. (see appendix 1) During the first year of marketing strategy with the communication plan happening alongside, market research will be carried out in order to ensure that the store fulfils the needs of their consumer. Research will also be carried out into finding a location that will be most successful for Gymshark. The store will then also need to be equipped with the necessary amenities and technology. 10
- YEAR 2. During the second year an interactive store will be opened that provides a new experience to normal in-store shopping. This store will have technologies that allow the consumer to scan the items instead of carrying them, then when finished the clothes will be ready for the consumer in the changing room. As well as this, an in-store gym and self-service checkout will be available to create an even better experience for the consumer.
- YEAR 3. Finally in the third year if this is successful, an app will be released with which the consumer can choose clothes before shopping and when they are within a certain geofence location the store will be notified to get the clothes ready for their arrival.
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SMART OBJECTIVES. Turnover from increased by ÂŁ100 million predicted in 2018 to ÂŁ120 million by December 2019 Expand the online stores from 11 internationally to 15 by January 2020 and 25 by January 2022. Increase amount of online customers from 1.2 million in mid 2018 to 2.2 million by January 2020. Increase social media following from 4 million in January 2019 to 9 million by January 2022
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COMMUNICATION PLAN. Alongside the first year of the Marketing strategy a communication plan will be carried out to spread awareness and guarantee the success of the interactive store. There will be three forms of promotion used which will cover both above the line and below the line activities. These will be social media campaigns and competitions, Digital and standard billboards and a meet and greet tour. The meet and greet tour is an events tour in which athletes will travel across the country by bus and stop to hold a meet and greets within which a treasure hunt to win tickets to the store launch will be held by the athletes. Social media will also be used as it is Gymshark’s current exclusive form of promotion. As it is already successful with Gymshark having 1.2 million online customers purely from social media this will be emphasis made on this with an online competition to win tickets to the store launch. The final form of promotion is outdoor billboards to promote the store opening. This will be an effective way of targeting a new demographic as it isn’t specific as to who is exposed to it. As well as this, "71% of respondents said ads on digital billboards stand out more than ads online” (The Outdoor Advertising Association of America).
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OPPORTUNITY FOR GROWTH. Following a successful store after the three years, Gymshark would have the opportunity to expand globally. This is due to their global popularity and having 11 international online stores. They therefore already have a place in the market in many other countries. There is also the opportunity to introduce more experiences into the store such as, regular meet and greets which is important for the brands future success as “49% of people rely on influencer recommendations” (Eric Ysasi, Leverage marketing. 2018). Other future opportunities include collaborations with nutritional food or footwear brands to give another form of experience to their stores. And finally a product range expansion could be carried out to include plus and petite sizes, as from primary research many said diversifying, such as with “more diverse models”(see appendix 1), is a way in which Gymshark could improve.
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CONCLUSION. To conclude this summary, from primary and secondary research found it, can be established that the ideas put forward for a Gymshark physical store will be successful. This is due to the store tailoring the needs of its consumers, as well as, a well thought out communication plan running alongside to ensure an increase in brand awareness. Its success can also be guaranteed because “81% of people said that a physical store is vital to the shopping experience� (Louise Richardson, 2018). Showing that the Gymshark interactive store will be successful, by providing the ease of online shopping and the experience of shopping physically in-store.
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REFERENCES Ahmad, I. (2018). The Rising Importance of Influencer Marketing – Statistics and Trends [Infographic]. https://www.socialmediatoday.com/news/the-risingimportance-of-influencer-marketing-statistics-and-trends-info/519084/. [Accessed 7 January 2019] Barrie, L. (2017). https://www.whichplm.com/gymshark-selects-visionng-plm-support-exponential-business-growth-agile-efficient-product-developmentsourcing/. https://www.just-style.com/news/gymshark-turns-to-plm-for-agile-sourcing_id132078.aspx. [Accessed 17 January 2019] Bisht, P. (2015). Sports Apparel Market by End User (Men, Women, Kids) and Mode of Sale (Retail stores, Supermarkets, Brand outlets, Discount stores, Online stores) - Global Opportunity Analysis and Industry Forecast, 2014 - 2020. Sports Apparel Market, 106. [Accessed 13 December 2018] Companies, B. (2018). About Gymshark. https://www.b.co.uk/company-profile/?gymshark-102939. [Accessed 13 January 2019] Direct, C. C. (2018). How Effective is Outdoor Advertising in the UK? https://www.clearchanneldirect.co.uk/how-effective-is-outdoor-advertising/. [Accessed 4 January 2019] Godding, N. (2017). GYMSHARK GETS FIT FAST. https://retailwatch.info/news/Gymshark-gets-fit-fast/d4610df0-d1e5-4a25-8a7f-4626bdfe9123. [Accessed 4 January 2019] Gymshark. (2018). About Us. https://uk.gymshark.com/pages/about-us. [Accessed 10 December 2018] Hanson, L. (2017). Gymshark selects Visionng PLM to support exponential business growth with agile, efficient product development and sourcing. https:// www.whichplm.com/gymshark-selects-visionng-plm-support-exponential-business-growth-agile-efficient-product-development-sourcing/. [Accessed 10 January 2019] Nguyen, D. (2017). How Gymshark grew by 200%+ year on year and hit £41M in sales in 2017. https://beeketing.com/blog/gymshark-growth-story/. [Accessed 4 December 2018] Richardson, L. (2018). The Importance of In-Store Technology. https://www.digitalsignageconnection.com/the-importance-of-in-store-technology. Shopping Apps Usage - Statistics and Trends (Infographic). (2018). https://www.go-globe.hk/blog/shopping-apps-usage/. [Accessed 10 January 2019] Sportswear Market 2018 Global Analysis, Opportunities and Forecast To 2023. (2018). https://www.marketwatch.com/press-release/sportswear-market-2018-global-analysis-opportunities-and-forecast-to-2023-2018-05-24. [Accessed 4 January 2019] 20 Williams, D. (2009). The Arbitron National In-Car Study . 2009 Edition. [Accessed 4 January 2019] Ysasi, E. (n.d.). 11 Essential Influencer Marketing Facts and Statistics. https://www.theleverageway.com/blog/influencer-marketing-facts-statistics/. [Accessed 19
BIBLIOGRAPHY Consoli, J. (2015). MBPT Spotlight: Consumer’s Call Digital Billboards Cool—and Recall Ad Messages. https://www.broadcastingcable.com/news/mbptspotlight-consumer-s-call-digital-billboards-cool-and-recall-ad-messages-143063. [Accessed 4 January 2019] Express, I. (2017). HOW EFFECTIVE IS BILLBOARD ADVERTISING? http://imagine-express.com/billboard-advertising-effective/. [Accessed 4 January 2019] Giles, A. (2016). How much does billboard advertising cost? . http://bubbleoutdoor.com/how-much-does-billboard-advertising-cost/.[Accessed 4 January 2019] Lovens, J. (2018). Snapchat Story Ads Work: Here’s How to See Success in Seconds. https://www.adweek.com/digital/snapchat-story-ads-work-hereshow-to-see-success-in-seconds/. [Accessed 19 January 2019] McHale, B. (2018). How Much Does Facebook Advertising Cost? A Definitive Guide. https://www.wordstream.com/blog/ws/2015/09/14/facebook-advertising-cost. Outdoor, S. (n.d.). Billboard advertising costs for local businesses in the UK. https://www.showcaseoutdoor.co.uk/useful-info/billboard-advertising-costs/. [Accessed 4 January 2019] Settembre, J. (2018). This is the insane amount millennials are spending on fitness. https://www.marketwatch.com/story/this-is-the-insane-amount-millennials-are-spending-on-fitness-2018-01-21. [Accessed 10 January 2019]
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IMAGE REFERENCES
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APPENDiX 1 - QUESTIONAIRRE RESULTS
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APPENDiX 2 - BUDGETING
APPENDiX 3 - PROFITS
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