Helena Evison N0688998
GYMSHARK EXECUTIVE SUMMARY
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I confirm this work has gained ethical approval and that I have faithfully observed the terms of approval in the conduct of this product Signature:
Word count: 1077
CONTENTS 1. INTRODUCTION 2. AIMS 3. SMART OBJECTIVES 4. METHODOLOGY 5. BRAND HEALTH 6. MARKET HEALTH 7. THE FUTURE 8. THEE YEAR MARKETING STRATEGY 9. YEAR 1 10. YEAR 2 11. YEAR 3 12. SUMMARY
INTRODUCTION Gymshark ended 2018 achieving £103m in turnover, with sales rising by 128%, positioning themselves in a strong place, financially, to launch a physical store. (Fast Track, 2018) A recent study, exploring global retail trends, identified that in 2019 90% of retail will be achieved in brick and mortar stores, however to succeed brands must go beyond customer expectations. (KPMG, 2019) Therefore the execution of Gymshark launching a physical store will be carefully considered, as well as identifying and optimising other opportunities for growth.
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AIMS The overall aim of the report is to effectively utilise market research and consumer-analysis to inform a successful one year communication plan and three year marketing strategy. The aim of the three year strategy will be to seamlessly integrate the launch of a physical store with the consideration of other areas of opportunity and improvement for Gymshark. The one year communication plan aims to achieve a combination of increasing social media engagement whilst also generating a high level of sales.
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SMART OBJECTIVES - Increase international sales by 100% to reach £61.6m by the end of year 1 - Increase overall engagement rate by 200% to reach an average of 0.123% of followers commenting, sharing and retweeting by the end of year 2 - Increase turnover by 200% to reach £206b by the end of year 3
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METHODOLOGY The report was conducted using quantitative and quality research, that is primary and secondary, including online and of offline surveys, reports and websites. Marketing model’s, SWOT, Ansoff matrix and Pestel were used to present potential opportunities and threats Gymshark may face.
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BRAND HEALTH Since founder, Ben Francis, launched Gymshark in his parents garage, where he hand made the garments himself Gymshark has experienced exponential growth. (Sutherland, 2018) Today, Gymshark employs more than 160 people and sells to 177 countries. (Sutherland, 2018). However they only have official online stores in 14 countries and the remaining countries use their Rest of the World (ROW) store. (Gymshark, 2018) They are currently working on globalising their brand so that they can seamlessly function and communicate to each individual market they sell to. Japan, Russia, China and South America are all prospective markets that Gymshark are currently considering launching localised stores in. (Sutherland, 2018)
RUSSIA
CHINA
SOUTH AMERICA
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JAPAN
MARKET HEALTH The main markets Gymshark compete is the active-wear and online apparelretail market. By 2024 the Global Activewear Market size is predicted to reach £567 billion, rising at a rate of 6.8% CAGR during the forecast period. The causes for growth could be put down to the notable increase in disposable income and the growing social trend of people becoming conscious of their health. (Statista, 2018)
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THE FUTURE Gymshark are looking to expand by launching a permanent physical space to add another element of depth to their brand and differentiate against similar, social-media centric brands. They are also looking to expand their business on a global scale by becoming, “more local on a global level”. (Turner, 2018) Brazil, China, Japan and Russia are countries Gymshark are considering as potential markets to tap into. (Sutherland, 2018)
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3 YEAR STRATEGY OVERVIEW
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YEAR 1 Launch the physical space and launch localised websites in four new markets. Year one will immediately launch the permanent physical space as the previous popups Gymshark have demonstrated the high demand for this channel. (Gymshark, 2018) The space will be located in London to maintain Gymshark’s British roots whilst still attracting an international market. The space will be an umbrella of of services including a gym, an active-wear store, a canteen and a DJ. Within the trend research it was identified that brands must offer an experience and construct a community in order to succeed in brick and mortar retail. (Candeloro, 2018) An omni-channel approach will be carried out through the use of AI mirrors. Localised websites will be launched in Brazil, China, Japan and Russia in order to achieve the objective of increasing international sales.
DJ BOOTH
FITTING ROOM
R RO
R RO IR M
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GYM FLOOR
ENTRANCE
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MIRROR
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MIRROR
APPAREL STORE
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GYMSHARK CANTEEN
YEAR 2 1 year communication plan Year 2 will consist of the one year communication plan, which is comprised of four phases:
PHASE 1: A captivating and creative video which follows the story of founder Ben Francis and how he has evolved into a hugely successful entrepreneur
PHASE 2: An interactive Instagram competition where followers will get the chance
to win a year long gym membership.
PHASE 3: Five new Gymshark athletes will be introduced all of which featured
on Gymshark’s most recent campaign, ‘Weight of the world’ and all of them challenge the stereotypical conventions of their current Gymshark athletes. Within the primary research it was identified that consumers do not perceive Gymshark as a diverse and inclusive brand, further more the majority of respondents believe this to be an important factor when choosing to shop from a brand. Phase 3 will intend to shift that perception.
PHASE 4: The final phase of the communication plan consists of an experiential
marketing ploy, whereby an outdoor temporary gym will appear, unannounced, in four cities over four consecutive weekends. The purpose is to shock the consumer, create a buzz, encourage user generated content and grow awareness. The overall purpose of the communication plan is to achieve the smart objective of increasing overall engagement rate on Gymshark’s social channels. It was identified within the brand health that the average number of followers actively engaging is considerably low. A financial plan was developed which forecasted that the communication plan will have the ability to produce a profit of £1613341.
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YEAR 3 - Launch adaptive range - Increase sizes Year 3 will be the launch of an adaptive active-wear range, whereby garments are developed so that they are specifically designed to the needs of the disabled. Adaptive clothing was identified within the micro trends, presenting itself as a profitable opportunity. (Ryan, 2018) Year 3 will also see Gymshark increase their size range, offering smaller and larger sizes to cater to a broader market. Not only will this offer a more positive perception of Gymshark it will also increase turnover as their product becomes available to greater amount of consumers. Within the trend research it was identified that consumers are becoming increasingly conscious of their purchase behaviour and will tend to choose from brands which offer a positive and just message. (Amed Et. Al) Through product offering it will help Gymshark shift consumer perception and enable them to increase sales by becoming a brand consumers choose because of their diverse representation and inclusive offering.
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SUMMARY To summarise, the report demonstrates how critical reacting to consumer behaviours and demands will be to continue their growth.
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REFERENCES Amed, I. et al. 2018. The State of Fashion 2019. [p. 19-20, 31-32, 45-46, 83-84] BOF and Mckinsey&Company. Candeloro, V. (2018). 2019 Trends: experiential retail. [online] Essential Retail. Available at: https:// www.essentialretail.com/comments/2019-trends-experiential-retail/ [Accessed 9 Jan. 2019]. Fast Track (2018). Gymshark - Fast Track. [online] Fast Track. Available at: https://www.fasttrack.co.uk/ company_profile/gymshark-5/ [Accessed 20 Jan. 2019]. Fast Track. (2018). Gymshark - Fast Track. [online] Available at: https://www.fasttrack.co.uk/company_profile/gymshark-6/ [Accessed 14 Jan. 2019]. Gymshark. (2018). Pop ups. [online] Available at: https://www.gymshark.com/search?q=pop+ups&type=article [Accessed 19 Nov. 2018]. Gymshark. (2018). About Gymshark. [online] Available at: https://uk.gymshark.com/pages/about-us [Accessed 7 Jan. 2019]. Jones, T. (2018). Fitness brands Gymshark and Grenade among UK’s fastest-growing firms. [online] Birmingham Live. Available at: https://www.birminghammail.co.uk/news/business/fitness-brandsgymshark-grenade-among-15484851 [Accessed 14 Jan. 2019]. MarketLine (2018). Gymshark is a prime example of millennial marketing done right - Verdict Retail. [online] Retail Insight Network. Available at: https://www.retail-insight-network.com/comment/gymshark-prime-example-millennial-marketing-done-right/ [Accessed 19 Nov. 2018]. Marqual IT Solutions Pvt. Ltd (2018). Global Active Wear Market Analysis (2018-2024). [online] Research and Markets, p.Description. Available at: https://www.researchandmarkets.com/research/ jzx57p/global_activewear?w=4 [Accessed 19 Nov. 2018]. Ryan, F. (2018). Why are there more clothing lines for dogs than disabled people?. [online] the Guardian. Available at: https://www.theguardian.com/society/2018/jun/18/why-are-there-more-clothing-lines-for-dogs-than-disabled-people [Accessed 9 Jan. 2019].
Statista (2018). Total revenue of the global sports apparel market 2012-2024 | Statistic. [online] Statista. Available at: https://www.statista.com/statistics/254489/total-revenue-of-the-global-sports-apparel-market/ [Accessed 20 Dec. 2018]. Sutherland, E., Geoghegan, J. and Hounslea, T. (2018). Gymshark takes a bite of the sportswear market. [online] Drapers. Available at: https://www.drapersonline.com/people/gymshark-takes-a-bite-ofthe-sportswear-market/7030060.article [Accessed 19 Nov. 2018]. Turner, A. (2018). Gymshark plans to go global as fitness brand breaks £100m sales. [online]
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BIBLIOGRPAHY Alphalete (2018). AlphaleteEU. [online] AlphaleteEU. Available at: https://alphalete.eu [Accessed 7 Jan. 2019]. Amed, I. et al. 2018. The State of Fashion 2019. [p. 19-20, 31-32, 45-46, 83-84] BOF and Mckinsey&Company. Ansoff, H. (1965). Corporate strategy. New York: McGraw-Hill. Blake, I. (2018). Ben Francis, 26, on how he started £100million sportswear business Gymshark while studying at university. [online] The Sun. Available at: https://www.thesun.co.uk/money/7386462/ben-francis-gymshark-founder-university/ [Accessed 19 Nov. 2018]. Butler, S. (2019). International Women's Day | Sophie Butler. [online] Gymshark US. Available at: https:// www.gymshark.com/blogs/news/international-womens-day-sophie-butler [Accessed 11 Jan. 2019]. Candeloro, V. (2018). 2019 Trends: experiential retail. [online] Essential Retail. Available at: https://www. essentialretail.com/comments/2019-trends-experiential-retail/ [Accessed 9 Jan. 2019]. Da Silva, H. (2018). About. [online] Habiba Da Silva. Available at: https://habibadasilva.com/pages/about [Accessed 11 Jan. 2019]. Eyers, J. (2019). Weight Of The World | Jack Eyers. [online] Gymshark US. Available at: https://www.gymshark.com/blogs/news/weight-of-the-world-jack-eyers [Accessed 11 Jan. 2019]. Facebook.com. (2019). Gymshark. [online] Available at: https://www.facebook.com/Gymshark/ [Accessed 19 Jan. 2019]. Fast Track (2018). Gymshark - Fast Track. [online] Fast Track. Available at: https://www.fasttrack.co.uk/ company_profile/gymshark-5/ [Accessed 20 Jan. 2019]. Fast Track. (2016). Gymshark - Fast Track. [online] Fast Track. Available at: http://www.fasttrack.co.uk/ company_profile/gymshark/ [Accessed 19 Nov. 2018]. Fast Track. (2018). Gymshark - Fast Track. [online] Available at: https://www.fasttrack.co.uk/company_profile/gymshark-6/ [Accessed 14 Jan. 2019]. Gymshark UK. (2019). Gymshark Vital Seamless Leggings - Dusky Pink Marl. [online] Available at: https:// uk.gymshark.com/collections/bottoms/products/gymshark-vital-seamless-leggings-dusky-pink-marl [Accessed 7 Jan. 2019]. Gymshark, Instagram (2019). @Gymshark Instagram. [online] Instagram. Available at: https://www.instagram.com/gymshark/ [Accessed 19 Jan. 2019]. Gymshark. (2018). Gymshark Birmingham | Pop-Up Store. [online] Available at: https://www.gymshark. com/blogs/news/gymshark-birmingham-pop-up-store [Accessed 19 Nov. 2018] Gymshark. (2018). Pop ups. [online] Available at: https://www.gymshark.com/search?q=pop+ups&type=article [Accessed 19 Nov. 2018]. Gymshark. (2019). About Gymshark. [online] Available at: https://uk.gymshark.com/pages/about-us [Accessed 7 Jan. 2019].
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HOW WE CAN SHIP UP TO 50,000 ORDERS PER DAY - NEW GYMSHARK WAREHOUSE TOUR. (2018). [video] Directed by B. Francis. Belgium, Antwerp: Youtube. Hewitt, S. (2018). Modern Slavery Act. [online] Gymshark UK. Available at: https://uk.gymshark.com/pages/uk-modern-slavery-act-disclosure [Accessed 9 Jan. 2019]. How I Started The UK’s Fastest Growing Company: My Gymshark Story | Ben Francis. (2017). [video] Directed by B. Francis. Birmingham: Youtube. Instagram (2019). Lee Liston (@lee_liston) • Instagram photos and videos. [online] Available at: https://www.instagram. com/lee_liston/?hl=en [Accessed 13 Jan. 2019]. James Anderson Estate Agents. (2018). Top 5 up and coming London areas in 2018 | James Anderson. [online] Available at: https://jamesanderson.co.uk/top-5-coming-london-areas-2018/ [Accessed 11 Jan. 2019]. Jones, T. (2018). Fitness brands Gymshark and Grenade among UK’s fastest-growing firms. [online] Birmingham Live. Available at: https://www.birminghammail.co.uk/news/business/fitness-brands-gymshark-grenade-among-15484851 [Accessed 14 Jan. 2019]. Larkin, M. (2018). This Smart Clothing Could Transform Wearables — And Your Wardrobe. [online] Investor’s Daily. Available at: https://www.investors.com/news/smart-clothing-technology-wearables-nike-google-smart-clothes/ [Accessed 9 Jan. 2019]. MarketLine (2018). Gymshark is a prime example of millennial marketing done right - Verdict Retail. [online] Retail Insight Network. Available at: https://www.retail-insight-network.com/comment/gymshark-prime-example-millennial-marketing-done-right/ [Accessed 19 Nov. 2018]. Marqual IT Solutions Pvt. Ltd (2018). Global Active Wear Market Analysis (2018-2024). [online] Research and Markets, p.Description. Available at: https://www.researchandmarkets.com/research/jzx57p/global_activewear?w=4 [Accessed 19 Nov. 2018]. McKinsey & Company. (2018). The State of Fashion 2019: A year of awakening. [online] Available at: https://www.mckinsey.com/industries/retail/our-insights/the-state-of-fashion-2019-a-year-of-awakening [Accessed 7 Jan. 2019]. Pramberger, S. (2018). Sade Pramberger | How Veganism And Fitness Saved My Life. [online] Gymshark US. Available at: https://www.gymshark.com/blogs/news/sade-pramberger-how-veganism-and-fitness-saved-my-life [Accessed 11 Jan. 2019]. Rouse, M. (2015). What is communication plan? - Definition from WhatIs.com. [online] WhatIs.com. Available at: https:// whatis.techtarget.com/definition/communication-plan [Accessed 20 Jan. 2019]. Ryan, F. (2018). Why are there more clothing lines for dogs than disabled people?. [online] the Guardian. Available at: https://www.theguardian.com/society/2018/jun/18/why-are-there-more-clothing-lines-for-dogs-than-disabled-people [Accessed 9 Jan. 2019]. Speth, C. and Probert, C. (2015). The SWOT analysis. Namur: 50Minutes. Robertson, R. (2014). European glocalization in global context. New York: Palgrave Macmillan. Silverman, A. (2018). ‘We Deserve To Feel Part Of Fashion’: How Can Inclusion And Normalisation Of Disability In The Fashion Industry Actually Happen?. [online] Similar Web (2018). gymshark.com Traffic Statistics. [online] SimilarWeb. Available at: https://www.similarweb.com/website/gymshark.com#overview [Accessed 19 Nov. 2018]. Statista (2018). Total revenue of the global sports apparel market 2012-2024 | Statistic. [online] Statista. Available at: https://www.statista.com/statistics/254489/total-revenue-of-the-global-sports-apparel-market/ [Accessed 20 Dec. 2018]. Sutherland, E., Geoghegan, J. and Hounslea, T. (2018). Gymshark takes a bite of the sportswear market. [online] Drapers. Available at: https://www.drapersonline.com/people/gymshark-takes-a-bite-of-the-sportswear-market/7030060.article [Accessed 19 Nov. 2018]. Turner, A. (2018). Gymshark plans to go global as fitness brand breaks £100m sales. [online]
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ILLUSTRATIONS Gymshark (2019). Gymshark logo. [image] Available at: https://www.gymshark.com/blogs/ news/a-look-back-gymshark-2018 [Accessed 21 Jan. 2019]. Gymshark (2019). Sydney Pop-up. [image] Available at: https://www.gymshark.com/blogs/ news [Accessed 21 Jan. 2019]. Gymshark (2018). Birmingham pop-up. [image] Available at: https://www.facebook. com/pg/Gymshark/photos/?ref=page_internal [Accessed 21 Jan. 2019].
Gymshark (2019). Ruqsana Begum training. [image] Available at: https://www.gymshark. com/blogs/news [Accessed 21 Jan. 2019].
Gymshark (2019). Two Gymshark athletes [image] Available at: https://www.gymshark. com/blogs/news [Accessed 21 Jan. 2019]. Shutterstock (n.d.). Male and Female symbols. [image] Available at: https://www.shutterstock.com/image-vector/man-woman-icon-274637150?src=NjhsQe-0v-M3ISCnbrlDWA-1-43 [Accessed 21 Jan. 2019]. Gymshark (2018). Nikki Blacketter season 2. [image] Available at: https://blogcms.gymshark.com/uploads/1515064388-gymshark-nikki-blackketter-season-2-nikki-blog-image141.jpg [Accessed 21 Jan. 2019]. Gymshark (n.d.). Lee Liston lifting. [image] Available at: https://www.pinterest. co.uk/pin/358810295309543021/?lp=true [Accessed 19 Jan. 2019]. DJ BOOTH
FITTING ROOM
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GYM FLOOR
GYMSHARK CANTEEN
Helena Evison. Floor-plan. [Illustrator] Created 19th January 2019.
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MIRROR MIRROR
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Helena Evison. Gym in the Bullring silhouette. [Illustrator] Created 19th January 2019.
Gymshark (2018). Sade Pramberger. [image] Available at: https://www.gymshark.com/ blogs/news/sade-pramberger-how-veganism-and-fitness-saved-my-life [Accessed 19 Jan. 2019]. Gymshark (2019). Jack Eyers. [image] Available at: https://www.gymshark.com/blogs/ news/weight-of-the-world-jack-eyers [Accessed 19 Jan. 2019].
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