FMB 2nd year Gymshark 3 year marketing strategy and 1 year communication plan

Helena Evison N0688998

GYMSHARK 1.

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: 3994

1.

CONTENTS

WHERE ARE WE NOW?

7. INTRODUCTION AND AIMS 8. METHODOLOGY 9. BRAND HISTORY 11. BRAND HEALTH 13. MARKET HEALTH 15. SWOT 16. THREATS (KEY ISSUES AND CHALLENGES) 17. MACRO ENVIRONMENT - PESTEL 19. MICRO TRENDS 21. COMPETITOR ANALYSIS 23. COMPETITOR FOCUS 25. BRAND POSITIONING 27. ANSOFF MATRIX 29. USP 31. TARGET MARKET 33. CORE COMPETENCIES 2.

WHERE DO WE WANT TO GET TO? 3.

37. THE FUTURE 38. FUTURE VISION STATEMENT 39. SMART OBJECTIVES 40. EVALUATION OF AREAS FOR GROWTH AND OPPORTUNITIES 41. WHAT WOULD A GS PHYSICAL SPACE LOOK LIKE? 45. THE FORMAT 46. STORE OFFERING 47. LOCATION 49. OMNI-CHANNEL APPROACH 51. 5 NEW ATHLETES 53. TARGET AUDIENCE 55. 3 YEAR STRATEGY OVERVIEW

60. 1 YEAR COMMUNICATION PLAN INFO-GRAPHIC 61. PHASE 1 62. PHASE 2 63. PHASE 3

HOW ARE WE GOING TO GET THERE?

64. PHASE 4 65. COMMUNICATION PLAN TIMELINE 68. BUDGET 69. FINANCIAL PLAN 70. CONCLUSION

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5.

WHERE ARE WE NOW? 6.

INTRODUCTION 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) To understand how Gymshark can succeed in brick and mortar retail a situational analysis will be carried out which in turn will inform a three year marketing strategy and a one year communication plan.

AIM 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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METHODOLOGY The report will be conducted using quantitative and quality research, that is primary and secondary, including online and offline surveys, reports and websites. Marketing model’s, SWOT, Ansoff matrix and Pestel will be used to present potential opportunities and threats Gymshark may face. This will help to inform a three year strategy and one year communication plan, which will lead to Gymshark expanding into a physical space, whilst continuing to grow their online presence.

SECONDARY RESEARCH

PRIMARY RESEARCH

Online sources such as Mintel, Euromonitor and WGSN were utilised in order to gain industry insights and identify emerging trends likely to impact Gymshark’s expansion into a physical store and strategy, as well as highlighting key opportunities. An annual report, by The Business of Fashion and Mckinsey&Company, titled, ‘The State of Fashion 2019’ was a particularly useful resource in gathering insights of the most relevant and important trends for the coming year.

Academic sources were used to inform marketingmodels, for example SWOT and Ansoff Matrix.

On account of the secondary sources limitations primary research was carried out to gather qualitative and quantitative insights from a more unbiased and current stand-point.

Online and of offline magazines and newspapers were also used to gain an overview and external review of the brand as well as informing current figures and statistics for Gymshark. However these sources did have restrictions, offering biased viewpoints to benefit and promote the brand.

As the majority of respondents from the initial questionnaire stated they mainly use Instagram as their main social media channel an additional questionnaire was held on the online platform, using the poll function on Instagram stories. This was to gain an understanding of the target market’s consumer behaviour patterns and to gain further insight into the consumer perception of Gymshark. It received 248 responses, however similarly to the first questionnaire 77% of respondents were female and the remaining male, indicating it may not accurately represent the brand perception of Gymshark or of the consumer behaviour patterns of their target market, this will also be considered.

PRIMARY RESEARCH FINDINGS

• Instagram most common channel respondents use to keep up with brands • Varied response for entering competitions, but most popular answer was ‘Likely’ • Majority of respondents considers brands being inclusive and diverse important • High level of awareness of brand awareness • Majority don’t follow on social media • Only 16% consider them a diverse brand • Majority prefer to shop online • Prefer to try on before purchasing in store • Majority spend £15-£35 on active-wear • Majority have not purchased from Gymshark • Majority do not follow them on social media • Common opinion that Gymshark athletes should be more relatable (See appendix for evidence)

A questionnaire, directed at Gymshark’s main 16-24 demographic, was conducted in order to understand the consumer perception of Gymshark and gain insights into how they prefer to consume online media, which will aid the one year communication plan. The questionnaire received 105 responses however, it may not present a completely accurate consumer perception of Gymshark as the majority of available respondents were female. This will be considered.

A group question and answer session was also conducted at Gymshark head quarters with founder, Ben Francis, director of events, Mitch Healey and business development manager, Ed Priestnall. The purpose of the Q&A was to gather internal information and insights on Gymshark and to gain a further understanding of the brief from the brand themselves. It should be considered some of the answers offered were subjective and evidently took a biased stance.

(All primary research in appendix)

8.

BRAND HISTORY Late 2012

Early 2012

Founder, Ben Francis, started making and selling active apparel with his friends while still at university, launching Gymshark

2014

The luxe fitted tracksuit was designed - a product which was a huge driver in their early growth.

Gymshark products are sent to well known fitness influencers, such as Matt Ogus, Chris Lavado and Lex Griffin, to promote. One of the first active-wear brands to utilise influencer marketing.

Mid 2012

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(Francis, 2017) (Sutherland, 2018)

Launched women’s fitness apparel, with Nikki Blackketter being their first female Gymshark athlete

Gymshark’s first stand at the Body Power expo.

Various popular male fitness influencers came to represent Gymshark.

2013

As Gymshark continue to experience rapid growth Steve Hewitt was hired to take control of the back end.

2015

2016

2018

2017

The ‘Gymshark world tour’ was held. The brand and a group of the Gymshark athletes travelled to cities within the US, UK and Ireland to meet fans

The new Gymshark HQ launches, a pop-up is held in their hometown of Birmingham and they are expected to turnover £100million

Turnover trebles to £40.5million from £12.7 million in 2015/2016. Steve Hewitt becomes CEO.

They run their first pop-up in New York to launch Gymshark athlete, Nikki Blackketter’s first collection.

Two more follow in London and

Gymshark are ranked number 1 on Fast track 100 as Britain’s fastest growing company

Paris.

Late 2016

2017

(Sutherland, 2018) (Fast Track, 2016) (Blake, 2018) (Gymshark, 2018)

Ben Francis began Gymshark in his parents garage where he custom made and sold active wear because he saw a space in the market for people his age demanding tighter fitting garments. (Sutherland, 2018) Since then the brand has experienced rapid growth.

Their main strategy, which has been a key driver in sales, is through the use of influencer marketing. (Nyugen, 2018) When Gymshark introduces a new collection or launches a promotion, it is concurrently promoted on every social media channel by all athletes for maximum exposure. (Nyugen, 2018)

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BRAND HEALTH - Since launching in 2012 Gymshark has experienced exponential growth.

(Turner, 2018)

Gymshark ended 2018 by reaching number 12 on Fast Track’s list of the 100 private companies with the fastest growing profits. (Fast Track, 2018) Sales grew by 128% reaching £103 million. (Jones, 2018) - Today, Gymshark employs more than 160 people and sell to 177 countries, however they do not consider themselves a completely global brand, particularly as their trading views are only UK and US centric (Sutherland, 2018) Furthermore only 14 countries they market to obtain official stores, with the rest being ROW. (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. At present they do not have localised online stores for huge potential markets, such as Japan, Russia, China and South America. However, they are prospective markets that Gymshark are currently considering launching in. (Sutherland, 2018) Nevertheless, In 2018, international sales reached £30.8m, with a two year increase of 128.51%. (Fast Track, 2018)

SOCIAL MEDIA FOLLOWING Instagram followers: 4.8m (combined on all three accounts) Facebook likes: 1.5m Twitter followers: 200k Youtube Subscribers: 200k

ACTIVE ENGAGEMENT RATE The percentage of followers actively engaging through comments, shares and retweets is considerably low.

Average percentage of Instagram followers commenting = 0.026% Average percentage of Facebook followers sharing content = 0.007% Average percentage of Twitter followers actively engaging through retweets = 0.09%

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Overall average engagement rate = 0.041%

•

Manchester, London and Birmingham are the cities that receive the most traffic in the UK (Gymshark visit, 2018)

•

Canada is the country that receives the most traffic overall (Gymshark visit, 2018)

•

40% of their sales are made in the US

•

Currently, 80% of their market is female and 20% male. (Gymshark visit, 2018)

80%

20%

MANCHESTER BIRMINGHAM

LONDON

RUSSIA

CANADA USA

CHINA

JAPAN

SOUTH AMERICA

•

Prospective new markets Gymshark are considering launching localised online-stores in

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MARKET OVERVIEW ACTIVE-WEAR

ONLINE APPAREL-RETAIL

In 2018, the Global Active-wear Market size generated approximately ÂŁ135 billion (GBP) in revenue. (Statista, 2018) By 2024 the Global Active-wear Market size is predicted to reach ÂŁ567 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 more conscious of their health. (Statista, 2018) Additionally an analysis, for the Global Active Wear Market between 2018 to 2024, reports that the demand for sports related products is likely to stem from the rising appeal in physical activities. (Marqual IT Solutions Pvt. Ltd 2018)

In 2017, MarketLine data reported that the UK online retail sector grew by 8.2% and is forecasted to rise with a compound annual growth rate (CAGR) of 6.6% between 2017 and 2022. (MarketLine, 2018) Apparel retail, specifically accounts for 25.8% of the sectors value, owning the largest portion of the online retail sector in the United Kingdom.

(MarketLine, 2018) This shows promise for Gymshark to continue their growth as an online retailer in the apparel market.

Evidently, the demand for active-wear and predicted growth within the market sparks optimism for Gymshark, providing that they look ahead, adopt trends at the right time and differentiate themselves from competitors.

The state of fashion annual report shows that the sportswear category has been forecasted to have the highest amount of growth in 2019 out of the six categories in the fashion industry. (McKinsey & Company, 2018)

SPORTSWEAR

Fashion industry sales-growth expectations 2018-19, % range

(McKinsey & Company, 2018)

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PERIPHERAL MARKET: Sportswear SECONDARY MARKET: Online Apparel-retail PRIMARY MARKET: Active-wear

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SWOT TRENGTHS •

First mover advantage - one of the first activewear brands to utilise influencer marketing

•

Capable of managing rapid growth

•

Identifiable segmentation

•

Retain customers

•

Run events which attract large crowds of people which receive a lot of online exposure

•

D2C - the business can make changes and decisions efficiently

•

Popular within the active-wear market

•

Use highly popular and well recognised fitness influencers

•

High level of awareness for the brand, particularly online

PPORTUNITIES • Launch a physical space which combines online and offline channels into a seamless experience

EAKNESSES • They have experienced multiple site crashes and mishaps during major sales, such as Black Friday •

They do not consider themselves to have competition

•

Their products contain unsustainable fabrics and materials

• Their brand ambassadors do not offer a diverse and inclusive representation • Have previously failed to ‘localise’ their website to specific countries/regions • Their pop-up events have meant loyal fans/customers have had to queue for extremely long periods of time •

Low ratio of followers actively engaging on social media

HREATS • Brands imitating ‘athlete’ brand ambassador concept eg. Alphalete

• Increase diversity to broaden representation and become more inclusive

• Fast fashion’s ability to imitate and manufacture styles on demand eg Primark gym leggings

• Increase the number of countries their website is localised to

• Established online fashion retailers are offering active-wear at similar prices

•

Launch own gym (could be included within physical space)

• Gymshark lacks sustainability and diversity which could effect consumer loyalty as pressure to be a conscious consumer increases

•

Increase size range to cater to more people

• Launch range for disabled people • Use more relatable brand ambassadors (Speth and Probert, 15. 2015)

• Failing to adapt website to the local contexts they’re sold in has meant they are not maximising sales • • Brand ambassadors are perceived as unrelatable

THREATS (Issues and challenges that Gymshark may face)

CONSCIOUS CONSUMPTION In a recent report by the Business of Fashion and Mckinsey&Company they reported that younger consumers are becoming increasingly solicitous with social and environmental matters, viewing them as being the, “defining issues of our time”.

(Amed, I. Et al. 2018) They stated that, "nine in ten Generation Z consumers believe companies have a responsibility to address environmental and social issues”. The growing concerns among consumers is catalysing consumers intentions to purchase from brands that are in line with their ideals and are deliberately avoiding the brands that don’t. (Amed, I. Et al. 2018) Currently Gymshark are using fabrics that are considered damaging to the environment, such as nylon and polyester. (Gymshark UK, 2019) As consumers concern for environmental causes increases it could encourage them to look for active wear brands that use sustainable fabrics. For example, competitor Athleta makes a guarantee that 40 percent of its products are created using recycled and sustainable fabrics. (Amed, I. Et al. 2018)

UN-RELATABLE BRAND AMBASSADORS Within the Instagram poll it was notable that the majority of respondents stated they would prefer if Gymshark athletes were more relatable.

Currently Gymshark use social media influencers to represent their brand who have the time and money to spend every day in the gym and therefore their physiques could be considered unattainable to the average person. From observing the qualitative answers to the question, ‘what is your perception of Gymshark?’, Within the questionnaire, some offered the viewpoint that it is a brand only for people with muscular physiques, who all have similar body types and that Gymshark, “only seem to focus on very attractive young men and women”. This implies that if Gymshark were to use more realistic and relatable Gymshark athletes they could appeal to a wider market.

Following on from this, within in the primary research questionnaire, which was conducted to gather insights about the current perception of Gymshark, only 16% of respondents considered them to be a diverse and inclusive brand. With this being a common perception it could also pose as a threat to Gymshark as it is evident that consumers are becoming increasingly influenced to help social injustices, which is also being reflected in their purchases. (Amed, I. Et al. 2018) However Gymshark’s most recent video campaign, ‘Gymshark66’, suggests that they are taking steps to become more diverse. It features a range of people who all vary in physical ability, body shape and size, ethnicity, religion and gender. For example the video campaign included Sophie Butler, a social media influencer who suffered a spinal injury, leaving her paralysed from her legs down.(Gymshark, 2018)

BRANDS IMITATING As one of the first active-wear brands to use the influencer marketing model, Gymshark are considered a first mover in the active-wear market. However, many other brands have since moved into the space, offering similar products and using fitness influencers as brand ambassadors. For example Alphalete, founded by previous Gymshark athlete, Christian Guzman, an active-wear brand which uses a very similar marketing style to Gymshark by being social media centric. (Alphalete, 2018) This poses as a threat as it becomes more difficult for Gymshark to differentiate themselves and offer consumers a reason to choose them over similar brands. Within the three year strategy it should be considered what Gymshark can do to differentiate themselves in the market.

“GLOCALISATION” (Robertson, 2014) CEO Chris Hewitt described their greatest task as, “getting everyone to be more local, globally”. (Turner, 2018) An example of when they did not achieve this was February 2018, when the front page of the Australian website contained the promotion of a ‘winter waterproof jacket’, during their summer.

(Turner, 2018) In order to appeal internationally they must ensure they are localising their brand so that it appeals to each market they sell to, think personalisation on a national level.

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THE MACRO ENVIRONMENT - PESTEL POLITICAL The state of fashion forecasts that in 2019 companies should make back-up plans for a potential switch-up of global value chains. (Amed, I. Et al. 2018) This will effect Gymshark as it is probable the apparel trade will be greatly effected by the switch-up, which is likely to be caused by factors such as; new barriers, for example, the execution of Brexit in March 2019; trade tensions between China and the US; and overall uncertainty. A report by the UK Trade Policy Observatory implies that UK textiles, apparel and footwear will be one of the industries most greatly hit by when the UK leaves the European Union because of various components, such as the notable rate of exports and the dependence of raw materials from abroad for the industry. (Amed, I. Et al. 2018) This could effect Gymshark, particularly as they have a distribution centre in Antwerp, Belgium and products are exported from UK warehouses into the warehouse. (Francis, 2018)

ENVIRONMENTAL As mentioned previously on the threats segment of the SWOT, environmental and social issues are becoming a growing factor in how it effects consumers path to purchase, particularly young consumers. The demand for their purchases to represent their views and values has become prominent in their decision making. (Amed, I. Et al. 2018) As also explained previously in the SWOT, Gymshark are currently using unsustainable products, therefore this should be an area to consider for improvement to ensure consumers will not be deterred from the brand.

SOCIAL On the Gymshark website they express a Modern Slavery statement which refers to how they ethically achieve their vision; by correctly using practices and policies in order to help to prevent modern slavery and human trafficking within the business and supply chains. (Hewitt, 2018)

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TECHNOLOGY New technologies that are forecasted to be adopted by mass market apparel brands in 2019 are intended to decrease turn around time from when a trend is identified to putting the product onto the market. Examples include, digital and laser printing for finishing, knit-innovations (e.g.

3D knitting), semi-automated sewing and automated logistics. (Amed, I. Et al. 2018) If Gymshark were to adopt these new technologies within the manufacturing of their products the advantages would include: the reduction of labour intensity, enable customisation of products efficiently, boost reliability and cut process times. (Amed, I. Et al. 2018)

ECONOMICAL Although Gymshark have generated ÂŁ103 million, the macroeconomic landscape is forecasted to be shifting, which could suggest they may experience a period where growth becomes stagnated.

(Amed, I. Et al. 2018) To offset this, Gymshark should ensure they increase productivity, reduce costs and are adaptable to change. However, as mentioned previously in the Market Health section, the UK online retail sector is forecasted to rise with a CAGR of 6.6% between 2017 and 2022, indicating optimism, particularly within the British economy, for Gymshark. (MarketLine, 2018)

LEGAL The EU has recently made new trade agreements, which include the clothing and apparel industry, with Canada, Mexico, Japan, Singapore, Vietnam and various other countries from Eastern Europe. (Amed, I. Et al. 2018) In Autumn 2018 the North American Free Trade Agreement.30. Was replaced by a new trade deal that was agreed by Canada, the United States and Mexico. (Amed, I. Et al. 2018) As Gymshark is attempting to become completely global it is imperative they comply with the updated trade agreements.

SUMMARY Overall, from critical observation of the macro environment, it is essential Gymshark become acutely aware of the over-riding tensions from consumers, which is effecting their purchase decisions. This is caused by various components of PESTEL. For example, political factors, like Brexit, which is leading to uncertainty within the British economic climate. Environmental and social factors, such as global warming are becoming an increasingly important issue to the masses, which is causing consumers to be even more conscious of their consumption. Nevertheless the potential for Gymshark to adopt new technological trends that could increase efficiency sparks optimism and also highlights processes that could aid Gymshark in becoming more agile to change as the macroeconomic landscape shifts and becomes increasingly unpredictable.

(50minutes.com, 2015) 18.

MICRO TRENDS Brand such as, Nike; Under Armour; Google’s parent company Alphabet and Microsoft are beginning to produce smart clothing technology. (Larkin, 2018) Google and Levi Strauss have done a recent collaboration, bringing the $350 Commuter X to market, a denim jacket which allows the user to control their phone just through gestures. It has been estimated that by 2020 the wearable tech industry will be worth $1 billion.

(Larkin, 2018)

The spending power of disabled people is, reportedly, worth an estimated £249bn to the UK economy. (Ryan, 2018) Approximately one in five people in England and Wales have a disability and yet, in June, it was reported that, “there are more clothing lines for dogs than there are for disabled people”. (Ryan, 2018) Disabled models are rarely represented within mainstream media, online and offline, even within ‘diverse’ campaigns. (Silverman, 2018) However in 2017, Tommy Hilfiger introduced the Adaptive clothing line, which featured products with magnetic buttons, onehanded zips and adjustable Velcro hemlines.

(Silverman, 2018) Currently most adaptive clothing lines are targeted at elder men and women, however the demand for a wider demographic is very evident and it is likely going to be a trend adopted by a wide range of clothing retailers in the future.

How Gymshark could adopt this trend:

How Gymshark could adopt this trend:

This could be a profitable market for Gymshark to tap into to ensure they are differentiating themselves from their main competitors. It aligns with Gymshark’s ethos of being an innovative brand which is ahead of the curb, as well as being appropriate as an active-wear brand, as it would be a useful way of tracking activity.

It is visible that Gymshark are already attempting to become more diverse and inclusive, through their most recent video campaign, which features disabled social media influencer Sophie Butler. Therefore the introduction of a line featuring active-wear specifically adapted for disabled people would be the most logical step in Gymshark moving forward as an inclusive and diverse brand.

Additionally to improving diverse perception, it also presents itself as a profitable opportunity, with space in the market for Gymshark to adopt it. This would also benefit in constructing a more distinguishable brand.

SMART CLOTHING

19.

ADAPTIVE CLOTHING

COMMUNITY WITHIN STORES Although it has become very clear that for a brand to successfully offer a physical space they must also offer an experience, the demand has evolved into brands building a community within the physical space. (Candeloro, 2018) By providing multiple services, for example, additional cafés within the stores, classes and DJ’s, the spaces are evolving into destinations where loyal customers of brands are willing to travel to in order to physically experience the brand and meet others with common interests. It is vital that within brands physical spaces they prioritise constructing a captivating brand quarter, strong enough to elevate their products and attract their own community. (Candeloro, 2018)

How Gymshark could adopt this trend: For Gymshark it is critical this trend is considered when launching a physical space. The concept of creating a community aligns appropriately within their existing message of the ‘Gymshark family’. Furthermore this concept has evidently already been adopted within their pop-ups events, the next step will be creating this atmosphere in a more day-to-day manner, as a permanent space. Being a brand that is, at present, online only it is important that their physical space corresponds directly with their online brand, in a seamless representation. This should be by adopting an omni channel approach, as well as ensuring the physical aesthetics of the space are aligned with their digital aesthetics. This is particularly important regarding the concept of constructing a destination, that fans will want to visit in order to experience the brand offline.

GYMSHARK POP-UP, BIRMINGHAM, 2018

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COMPETITOR POSITIONING MAP

FASHIONABLE PRODUCT

SOCIAL MEDIA AS MAIN PROMOTIONAL CHANNELS

TRADITIONAL MEDIA AS MAIN PROMOTIONAL CHANNELS

FUNCTIONAL PRODUCT

21.

ANALYSIS From the competitor positioning map, it is easy to come to the conclusion that active-wear brands which use social media as their main channels tend to offer a more fashionable, trend led product than the brands which use traditional channels. This is likely to be down to the fact that brands, like Gymshark, have a very specific demographic of 16-24 years, whereas brands like Decathlon and Nike tend to target a broader market with a wider age range.

Evidently Gymshark falls into a space which has become somewhat crowded, with multiple brands offering a similar product and advertising directly through social media. Gymshark will need develop a differentiation strategy to find a new space in the active-wear market that allows them to stand out. Initially this could be done by opting for alternative promotion channels , for example using guerilla marketing in busy city centres to draw attention and create a buzz.

22.

COMPETITOR FOCUS WHO? Launched in London UK, Physiq Apparel began with offering essential products like Shirts and Vests and then expanded to cover all types of fitness clothing for men and women.

(Physiq, 2018)

PRICE RANGE: £8-£46 USP Initially they launched to fix the problem of finding high quality and reasonably priced fitness clothing and now they specialise in releasing superior quality products while also focusing on the technical materials and features. (Physiq, 2018)

WHY ARE THEY ONE OF GYMSHARK’S MAIN COMPETITORS? They offer very similar product to Gymshark at a very similar price point. They also use fitness influencers with similar aesthetic to Gymshark athletes and they solely rely on social media as their channels for promotion and advertisement.

HOW GYMSHARK CAN DIFFERENTIATE THEMSELVES Currently Gymshark are more established than Physiq with a higher social media following. Through events such as there pop-ups it could also be considered that Gymshark have also built a more authentic community that has gained them more exposure than Physiq. However they offer very similar products and use very similar style ambassadors.

To differentiate they could consider widening the representation of their brand by introducing more diverse Gymshark athletes.

23.

(PHYSIQ, 2019)

WHO? Alphalete was founded in the US by, previous Gymshark athlete, Christian Guzman. They offer active-wear for men and women. (Alphalete, 2018)

PRICE RANGE: £22.50-£50 USP As the brand was launched by Christian Guzman, an established fitness influencer, it provided the brand with an established audience, reactive to his business endeavours and keen to support him.

WHY ARE THEY ONE OF GYMSHARK’S MAIN COMPETITORS? The entire brand concept is similar to Gymshark’s, from their product offering to their price point and the brand ambassadors they use, known as ‘Alphaletes’, along with social media being the primary platform for their communication and promotions. Some of their ambassadors are also ex Gymshark athletes, giving further evidence that they are attempting to present the same branding as Gymshark. However the product range is a lot smaller.

HOW GYMSHARK CAN DIFFERENTIATE THEMSELVES Gymshark have first mover advantage over Alphalete but they should still work on differentiating themselves against them to ensure they are consumers first choice.

As mentioned previously, one strategy for this could be introducing more diverse athletes that don’t necessarily fit the stereotypical conventions of usual social media.

(Alphalete, 2019) 24.

BRAND POSITIONING BRAND ROOTS: Ben Francis establishes Gymshark in 2012, at 19 years old as he saw a space in the active-wear market for stretchier, tighter fitting active-wear for men.

KILLER INSIGHT: Gymshark were one of the first active-wear brands to

spot an opportunity of using fitness influencers to endorse their products

BENEFITS EMOTIONAL:

Consumers have a relationship with the brand due to founder, Ben, being very active on social media and sharing ‘behind the scenes’ of how Gymshark operates, from production to distribution and everything inbetween. This encourages consumers to support the brand in order for Ben and his team to achieve success.

FUNCTIONAL: They are often the first to launch new products which competitors often imitate

OWNABLE: fashionable, high quality active-wear which has been endorsed by leading fitness influencers BRAND PERSONALITY: community, quality, innovation, vibrant, motivating, inspiring

BRAND ESSENCE: Family, Progression, Vision BRAND MISSION STATEMENT: We exist to create the tools that

help people unlock their full, incredible potential and put their ideas into action.

(Gymshark, 2018)

TAG LINE: Be a visionary.

BRAND POSITIONING STATEMENT: For young men and women

25.

who want to unlock their full potential. Gymshark are a fitness apparel & accessories brand, manufacturer and online retailer based in the United Kingdom, supported by millions of highly engaged social media followers and customers in 177 countries. We are devoted to producing innovative, effective performance wear and continue to grow our ever-expanding social presence.

We exist to create the tools that help people unlock their full, incredible potential and put their ideas into action.

(Gymshark, 2019)

26.

ANSOFF MATRIX

EXISTING MARKET

EXISTING PRODUCT • Active-wear for a 1624 year demographic

NEW PRODUCT • Smart clothing • Trainers

• Increase size range (larger and smaller)

• Wireless gym headphones • Home gym equipment

NEW MARKET

• Fitness supplements

• Active-wear for an older market

• An adaptive clothing line

• A children’s line

• Children’s trainers

(Ansoff, 1965)

27.

28.

USP Gymshark’S USP is the fitness community they have built over the last six years. They have attracted a loyal and dedicated fan base who are willing to queue for hours in order to physically interact with brand ambassadors and the brand itself. This is evident from their previous pop-up events in:

LONDON PARIS LA MELBOURNE BIRMINGHAM DUBLIN TORONTO SYDNEY

29.

(Gymshark, 2018)

30.

THE MAIN TARGET AUDIENCES Core demographic = “Fitness-addicted 16-to-24 year-olds” (Sutherland, 2018) The core demographic can split into four segments which describes the typical purchase behaviours and psyche of their target audience

GYM ADDICT • Wears Gymshark to show of muscular physique due to tight fitting of garments • Not brand loyal, will try other brands • May attend a Gymshark event to meet one of their favourite athletes who inspires them and helps them stay motivated • • Frequently uses social media to stay up to date with brands and fitness influencers

INFLUENCER OBSESSED • Constantly keeps up to date with their favourite Gymshark athletes on social media • Follows all their workouts posted on Instagram and Youtube • Will buy some of the products the influencers promote • Loyal to the influencer and not the brand so will switch brand if the athlete switches to another sponsorship • May attend the pop-ups to meet their favourite Gymshark athletes.

31.

BRAND LOYAL • Dedicated to the brand • Brand loyal and wouldn’t wear another competitor • Attends Gymshark events and willing to travel reasonably far to attend • Makes a purchase as soon as new products drop • Uses Social media daily to keep up to date with Gymshark

ONE OFF PURCHASER • Most likely to purchase from Gymshark when: - They have a sale - If a specific product/style comes out that they really like • Wouldn’t attend Gymshark events • Not brand loyal • Often enters social media competitions • Often makes purchase decisions based on reviews from online influencers

32.

33.

CORE COMPETENCIES • Managing rapid growth • Creating a high level of awareness through exposure Social media • Selling direct to consumer, shunning traditional retail practices, allowing them to efficiently make changes and decisions and market trends in a short turn around time from them being discovered. (MarketLine, 2018)

• High social media following • Ability to attract vast number of people to events by creating a buzz through online communications (globally) • Understand their core demographic and how to engage them by creating social media content and their choice of brand ambassadors • Quick to react and personable. Eg. Ben Francis shared a video to all Gymshark social media channels apologising for technical issues with Black Friday 2018 sale. This also presents how he and his team are not hiding behind a brand name and logo

34.

35.

WHERE DO WE WANT TO GET TO? 36.

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)

37.

FUTURE VISION STATEMENT Gymshark aim to be leading globally in the active-wear market by providing quality, value and innovative design. They aim to be a brand that is diverse and caters to the many, not the few. Through a high level of interaction they hope to grow the Gymshark family and launch a physical space that encourages people come together and expand the community that already exists.

38.

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

39.

EVALUATION OF OPPORTUNITIES AND AREAS FOR GROWTH PHYSICAL SPACE

COMMUNITY

By launching a physical space Gymshark have the opportunity to attract a market who are not influenced by social media advertising and do not typically shop online. Additionally, they have opportunity to capture a market of consumers who prefer to try on products before making a purchase.

Within the Instagram poll it was identified that 72% of respondents prefer to try on before making a purchase. However launching a permanent space will include many ongoing running costs so it will need to be ensured the space will generate enough sales to produce high profit margins. The previous pop-ups held presented a high level of demand for a physical space, considering the huge queues, and amount of time consumers were willing to wait.

Within the trends it was identified brands are beginning to use physical spaces as a way of building a community. Gymshark already consider themselves to have built a community, known as the Gymshark family. By launching a physical space it will enable them to grow their existing community in a more tangible way. By launching just one physical space in one location it could promote the idea that the store space have their own exclusive community within the Gymshark brand and as it will be only accessibly to the people that live in and around that area. Therefore the location chosen should be somewhere which attracts lots of tourists, for example London, which attracts a high rate of visitors within the UK and internationally.

BEING GLOBAL ON A LOCAL LEVEL

DIVERSITY AND INCLUSIVITY

To become globally successful it is crucial Gymshark think locally. Increasing the number of countries they sell to will require hiring internationally, so that they have the employees that understand the different markets they’re selling to. Being considered globally local means that each country’s website and product offering will vary depending on the climate, seasons, culture and trends. Although it will increase costs it will additionally drive international sales.

To be considered an inclusive brand Gymshark have the opportunity to increase size range, launch a line designed specifically for people with physical disabilities and introduce new Gymshark athletes that challenge the stereotypes of the current ones.

However attempting to become an inclusive and diverse brand could come with difficulties, for example, increasing size range will increase costs to the manufacture process. A line for the disabled will require a great deal of research to ensure the garments are constructed appropriately to meet different requirements, depending on the disability.

When introducing the new athletes it is crucial the message communicated does not evoke the feeling of tokenism, implying that their sole purpose is to improve brand image as this can come across as offensive and could inevitably damage Gymshark’s reputation.

40.

WHAT WOULD A GYMSHARK PHYSICAL SPACE LOOK LIKE?

41.

#THEGSHANGOUT The Gymshark physical space should emulate the aesthetics of the Gymshark headquarters, in Solihull. The headquarters are well known to the Gymshark fans, therefore it would be important to make sure the aesthetics of the new space in alignment. Furthermore as the offices are not open to the public, they appear exclusive, the new space would be a method of creating accessibility for the public to physically interact with Gymshark.

• • • • • • • • •

Industrial Black, white and grey Catchy slogans e.g ‘Don’ t be a dickhead’ Modern Minimal Big windows Exposed ceilings Clean lines Graphical shapes

42.

43.

44.

THE FORMAT DJ BOOTH

FITTING ROOM

R RO

R RO IR M

M

GYM FLOOR

ENTRANCE

45.

MIRROR

IR

MIRROR

APPAREL STORE

MIRROR

GYMSHARK CANTEEN

STORE OFFERING A communal hub that contains various elements that interest the target market. This would include: • GYM With matt space, free weights, mirrors, squat rack, bench press and other various gym equipment. Gym classes and tutorials would be held in this space via In app booking.

• COMMUNAL

CANTEEN

Will offer a similar design to the one in the GSHQ, allowing many people to sit together on one table to encourage community.

• DJ To create an exciting atmosphere and to go along side the gym classes • APPAREL

STORE

Selling Gymshark product, offering the newest collections a week before they drop online to incentivise people to visit.

• SCREENING Would be held to debut new video campaigns, giving fans a first look. After, a discussion would be held with the creators regarding the video campaigns, to further involve fans with every aspect of the brand

46.

LOCATION London, Ealing, Acton

WHY? • Being in London will attract a global audience as it has a high level of international tourists yet maintains brands British roots •Ealing, Acton is an up and coming area where young professionals are choosing to reside • It is more affordable than central London • On the central line - making it easily accessible (James Anderson Estate Agents, 2018)

ACTON

LONDON

47.

K R A SH

M Y G

48.

OMNI-CHANNEL APPROACH • Ipads to order from the store and browse • ‘Magic mirror’ - Artificial intelligence (AI) mirrors which allow the consumer to see what they would look like in any product online • Free wifi which directs the consumer straight to Gymshark website • Through an in-app service and AI the customer will be able to scan a certain part of the gym and one of the Gymshark athletes will give a tutorial on how to use the specific equipment, as if they were actually using the gym

49.

50.

5 NEW ATHLETES The five new Gymshark athletes chosen all featured in the most recent Gymshark campaign, ‘Weight of the World’. Each of them challenge the stereotypical conventions of the current Gymshark athletes but are equally as dedicated and motivating.

HABIBA DA SILVA An international Islamic influencer based in the United Kingdom, Habiba has established herself as Youtuber, creating content on beauty, fashion and lifestyle. She recently launched a business with the goal to reflect her passion for diversity and inclusivity. Her hijab lines have rocked the industry. She featured in the most recent Gymshark campaign, ‘Weight of the world’ to communicate that girls within modest culture can train equally as hard as everyone else. (Weight of the World, 2018) (Da Silva, 2018)

SADE PRAMBERGER Began her fitness journey when she was at her worst, physically and mentally, she weighed 230 pounds and was diagnosed with poly-cystic ovarian syndrome, and had to take various medication. Since turning vegan and starting to train six days a week she has experienced an amazing transformation, within her body and her mind.

(Pramberger, 2018)

51.

SOPHIE BUTLER In 2017 her spinal cord was punctured by her back, which had snapped in two, leaving her paralysed from the waist down, this was from squatting 70kg in the gym. She continues to train in the gym and inspire people on social media by sharing workout videos on Instagram and beauty, fitness, health and lifestyle content on Youtube.

(Butler, 2018)

JACK EYERS Since losing his leg at sixteen Jack has achieved a lot. Most notably, he began training with the British canoeing team, placing 3rd, he won a bronze medal at the world championships in Portugal. His overall goal is to change the perception of disability, from one that is weak and vulnerable to one that is beautiful and relevant.

(Eyers, 2019)

LEE LISTON Lee Liston is an American with short stature.

He uses his Instagram to present how he trains, showing how having a short stature does not hold him back. Currently he is training to compete in a body building competition.

(Instagram, 2019)

52.

TARGET AUDIENCE

53.

Gymshark should maintain their core demographic 1624, but, through communications and product offering, broaden the representation so more people believe they can wear Gymshark - not just people of a certain physique

1st

- The primary target customer will be 16-24 years old, cult followers of Gymshark. They react immediately to new social media campaigns and follow all the Gymshark athletes. They are will be willing to travel far to visit the physical space.

2nd

- The secondary customer that will be targeted within the marketing and communication plan will be 1624 year old who previously did not feel comfortable enough to wear Gymshark because of the perception that it is for someone who obtains a toned and muscular physique. They will be quick to react to social media campaigns.

3rd

- The peripheral customer will be someone who is not necessarily aware of Gymshark or a loyal customer to them. They may visit the store because they walk past it. They choose to purchase from activewear brands depending on the style, fit, colour, price or even an advertising campaign that catches their eye.

54.

THREE YEAR STRATEGY OVER-VIEW

55.

YEAR 1

YEAR 2

YEAR 3

THE GS HANGOUT

COMMUNICATE

DIVERSIFY PRODUCT OFFERING

Year 1 will consist of Gymshark launching their first ever physical space. Gymshark’s previous popup events have demonstrated the demand from consumers to offer a physical space and therefore it would be effective to immediately implement this within the strategy whilst the demand is conspicuous.

Gymshark: For Everybody and Every Kind of Body

- INCREASE SIZE RANGE (SMALLER AND LARGER SIZES) - LAUNCH AN ADAPTIVE ACTIVEWEAR RANGE

Being located in London will maintain the brands British roots whilst also making it accessible to international consumers, a city which attracts a huge level of international tourists. The space will also be key to driving visibility and awareness to consumers who aren’t regular users of social media.

Launch localised websites in Brazil, China, Japan and Russia Launching localised websites in four countries will be instrumental in driving international sales and elevating Gymshark to being globally recognised.

At the end of the second year the average number of followers actively engaging on social media should have increased by 200% through a carefully considered communication plan, which involves launching shareable content, social media competitions and an experiential marketing technique. The communication plan will be represented by the hashtag #foreverybodyandeverykindofbody, which should also drive engagement and encourage consumers to share photos of themselves in Gymshark using the tag line.

Increasing active engagement on social media was chosen as a smart objective, having identified it as being considerably low in the situational analysis (page 11).

Expanding into active-wear designed specifically for the disabled and increasing the range of sizes within their existing lines will represent how Gymshark are actively and practically attempting to become diverse and inclusive, which should in turn alter the perception. It will also construct a distinct USP which will encourage a loyal customer base and broaden the market they are available to, thus increasing turnover.

Within the questionnaire conducted it was identified that the majority of respondents do not perceive Gymshark not to be diverse and inclusive. Trend research also showed that consumers are preferring to purchase from brands that are more socially aware and just. (Amed, I. Et al. 2018)

Increasing sales internationally was identified as a smart objective as it was evident within the secondary research that the next step for Gymshark to progress was to become globally recognised. (Sutherland, 2018)

56.

57.

HOW ARE WE GOING TO GET THERE?

58.

FOR EVERYBODY AND EVERY KIND OF BODY The communication plan is titled, ‘For Everybody and Every kind of body’ and it has been constructed to aid achieving all three of the 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

59.

'

+

(­ )

• % OF CONSUMERS ADMITTED TO WANTING TO SEE ADS THAT TELL A STORY Sternberg, M. (2017)

• % OF BUYERS WILL SPEND TIME

( ­ )

•

•

•

• ­ % OF RESPONDENTS AGE 16-24 STATED INSTAGRAM WAS THE CHANNEL THEY MOST TYPICALLY USED TO KEEP UP TO DATE WITH BRANDS (PRIMARY RESEARCH)

•

•

­%

(­ )

•

(primary research)

• % OF RESPONDENTS AGED 16-24 STATED THAT THEY DO NOT THINK GYMSHARK IS CURRENTLY A DIVERSE AND INCLUSIVE BRAND

•

(2018)

•

(2018)

• %

( ­ )

Miller, G. (n.d)

•

•

•

%

•

•

•

• INCREASE DIFFERENTIATION AGAINST COMPETITORS BY UTILISING OFFLINE CHANNELS

• • • •

•

60.

PHASE 1 The communication plan has been split into four phases. The first phase that will launch the plan will be a high quality, creative and compelling video that follows the narrative of how founder, Ben Francis, evolved from a normal, young British boy to a hugely successful entrepreneur.

The main message it should communicate is the concept that anybody has the ability to be successful, supporting the main message of the communication plan. Adhering to the current Gymshark communication strategy the main channels for the video will all be social media based, as this is where the attention of the Gymshark consumer lies. Overall, the intention is to create powerful content, which has the potential to gain viral exposure and capture the attention of existing customers and potential new customers. By following the story of Ben Francis it adds a new level of depth and value to the brand.

Review and Measure Success of the video will be measured by likes, shares, views and subsequent clicks onto the Gymshark website and rate of sales. Shares and views are crucial in indicating success as they represent the level of exposure the brand will have received. If Gymshark experience a high rate of sales and new customers, when the video is receiving a high level attention, it will indicate whether this was caused by the success of the video.

61.

PHASE 2 The second phase of the plan involves an Instagram competition, where four people a week will get the chance to win a year long gym membership, it will run for four consecutive weeks. To take part participants will be expected to: • Comment on a photo (posted onto the main Gymshark Instagram account) their favourite gym exercise and tag their ‘gym partner' • Screenshot the photo and share onto their Instagram story • Follow all Gymshark Instagram accounts The purpose of the competition is to encourage interaction and engagement with the brand. It will also be key in driving exposure through tagging friends in the comments section of the post and the post being shared onto Instagram stories.

An experiential prize was chosen as through current trend research it showed this is the current preference for consumers. (Carter, 2018)

Review and Measure Success will be measured by the number of people that enter the competition, which in turn will represent the level of exposure and engagement Gymshark will receive. Rate of sales and new customers will also me measured whilst the competition is running to measure direct effectiveness.

62.

PHASE 3 The third phase will launch the five new Gymshark athletes (presented on page 50, which challenge the stereotypical conventions of the current athletes and represent a wider market. From the survey conducted 46% of respondents considered bands being diverse and inclusive as important.

Furthermore, within the Instagram poll 62% would prefer if the Gymshark athletes were more relatable.

Content of each athlete would be shared onto the four main social media channels (Instagram, Facebook, Youtube, Twitter), as well as a blog post to introduce each athlete. Additionally to driving the message of inclusivity and diversity, the introduction of these athletes will broaden the market Gymshark target, offering a new representation of the kind of person who would wear Gymshark.

Review and Measure Success will be measured by the quantity of comments, likes and shares that the content surrounding each athletes receive. The level of sales and the rate of new customers the campaign has attracted will be measured.

01 February 2019 at 12.00

01 February 2019 at 12.00

WE AT GSHQ FORMALLY INVITE YOU A GYMSHARK ATHLETE AND TO BECOME BECOME BECOME A GYMSHARK ATHLETE. BECOME PART OF THE GYMSHARK FAMILY YOUʼLL GET THE CHANCE TO:O: - ATTEND GYMSHARK EVENTS AS AN OFFICIAL ATHLETE MEET FANS - RECEIVE ALL NEW LINES ONE MONTH BEFORE THEY BECOME AVAILABLE TO THE PUBLIC - VISIT GSHQ AND GET TO KNOW THE TEAM - RECEIVE AN ADDITIONAL SALARY OF £835 A MONTH RESPONSIBILITIES:

- POST ONE INSTAGRAM A WEEK IN GS PRODUCT - REVIEW EACH NEW COLLECTION SENT TO YOU ON AT LEAS ON OF THE FOLLOWING: IG STORE, IGTV OR YOUTUBE

BECOME PART OF THE GYMSHARK FAMILY AS AN OFFCIAL GYMSHARK ATHLETE SCROLL DOWN FOR MORE INFORMATION

63.

B2B Creative media message

PHASE 4 The final phase will involve an outdoor gym which will appear in the centre of a busy city in the UK. It will run for four weekends, with each weekend the gym appearing in a different city, unannounced. The four cities the gym will appear in are: London, Nottingham, Manchester and finish in Gymshark’s hometown of Birmingham.

The intention would be to surprise, capture consumers attention and utilise a disruptive marketing ploy. The gym would be surrounded by Gymshark branding to gain maximum exposure and introduce Gymshark to people who aren’t aware of the brand. Augmented reality will be utilised so that, using an in-app service, when a piece of the equipment is scanned a Gymshark athlete will appear through the phone demonstrating how to use it, this will encourage interaction from consumers who are not necessarily comfortable enough to actually use the equipment. Overall it should encourage user generated content through photos and videos being shared online, which, subsequently, will drive exposure and engagement. Metaphorically, it drives the message of the gym being accessible for everybody. It has the potential to be shared virally and will create a buzz around Gymshark.

Review and Measure Success will be measured through the number of tags the Gymshark social media accounts receive which will reflect the level of exposure they gain through user generated content. Rate of sales and new customers during the four weeks will also be measured to indicate success.

GYMSHARK OUTDOOR GYM Lorem ipsum AUGUST 2019

B2C Creative media message WATCH YOUR FAVOURITE ATHLETES TRAIN VIA AN AI APP

COMING TO A CITY NEAR YOU...

64.

COMMUNICATION PLAN TIMELINE

65.

OCTOBER 2019 PHASE 1 (PRE PRODUCTION 6 WEEKS)

- RESEARCH - SCRIPTING - STORYBOARDING - CO-ORDINATION - CASTING

DECEMBER 2019 PHASE 1

(POST PRODUCTION 4 WEEKS) - THE FIRST EDIT - THE SECOND EDIT - PICTURE LOCK - SOUND MIX AND COLOUR CORRECTION - DELIVERY

MARCH 2020 PHASE 2 (4 WEEKS)

- RUN INSTAGRAM COMPETITION

JUNE 2020 PHASE 3

NOVEMBER 2019 PHASE 1 (7 DAYS THROUGHOUT OCTOBER)

- PRODUCTION

JAN-FEB 2020 PHASE 1 (LAUNCH VIDEO 2 MONTHS)

- LAUNCH VIDEO ON SOCIAL CHANNELS - LAUNCH AS AN INSTREAM ADVERT ON YOUTUBE (RUN FOR 2 MONTHS)

APRIL - MAY 2020 PHASE 3 (2 MONTHS)

- CREATE CONTENT USING 5 NEW ATHLETES - RESEARCH - PLAN AND CO-ORDINATE

(5 WEEKS)

- LAUNCH ONE NEW ATHLETE A WEEK

JULY - AUGUST 2020 PHASE 4 (4 WEEKS)

SEPTEMBER 2020 PHASE 4 (4 WEEKS) LAUNCH OUTDOOR GYM - WEEK 1: LONDON - WEEK 2: NOTTINGHAM - WEEK 3 MANCHESTER - WEEK 4 BIRMINGHAM

- PREP OUTDOOR GYM - GATHER MATERIALS AND RESOURCES - PLAN AND CO-ORDINATE DISTRIBUTION OF RESOURCES - DEVELOP AR APP - BOOK EXTERNAL STAFF (SECURITY AND EQUIPMENT DELIVERY)

66.

KEY FINANCIALS

67.

(Picturethis.ca. 2013) (McLeod, B, 2018) (The Gym, 2019) (Physioroom.com, n.d.)

(Dumbbells Fitness-superstore.co.uk, n.d.) (medicine ball Bestgymequipment.co.uk. n.d.)

(Uk-featherflags.co.uk, n.d.)

(Stencils Online, n.d.)

(Spray paint Cass Art, 2019) (Flyerzone.co.uk, n.d.)

(Schechter, S. n.d.)

(Deliveryquotecompare.com, n.d.)

(Lsg-security.co.uk. n.d.)

(Manchester.gov.uk. n.d.)

BUDGET Communication tool

Communication description

Cost (£)

Story-telling video

1 x high production video platformed on Youtube and then shared onto subsequent social media channels

£19320

500,000 x views on Youtube Instream ads (0.23p per view)

£115000

= £134320

Instagram competition

16 x year long gym membership prize with ‘The Gym’ (112.99 each - The Gym, 2019)

New Gymshark athletes

5 x New Gymshark athletes (£10,000 each)

£50,000

Social media content for each athlete (photoshoots, video content)

£19320

City centre gym

Resources: 1 x Multi-use exercise equipment = 8994 1 x Dumbell set = £601.99 1 x Bench press = £300 1 x Medicine balls set =£265 3 x Feather flags (£95 each) = £285 1 x Flag = £25.69 2 x Logo stencil x2 = £60 10 x spray paint (38.50 each) = £38518000 x Flyers = £1056

£1792

= £69320 £49963

=20,037.22 Product development: Augmented reality app - £23273 Operation costs: Collection and delivery = £1000 Security x4 = £8064 = £9064 Place 4 x City centre space hire (£1000 per day) = £6,000

Total costs

£255395

Budget Allowance

£300000

Budget remaining

£44605

68.

FINANCE PLAN Total profit = £1613341

69.

(Dawley, S. 2018) (Dawson, J. 2019) (Digital Doughtnut 2017) (Digital Marketing Institute.(n.d.)

(Grin 2018) (Youtube 2019)

CONCLUSION Gymshark are aiming to expand their community and become globally successful in the activewear market. By following this marketing strategy they can begin to achieve this whilst offering innovative products that take into account a variety of customers.

Introducing new representation and a physical space will allow Gymshark to develop their brand image to become a distinguishable omnichannel brand with a unique offering.

Awareness will grow through social media promotions, active engagement and viral content produced by Gymshark, attracting new customers whilst maintaining existing customer relationships.

Ultimately, perceptions will be shifted and sales will be generated.

70.

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Physiq (n.d.). Physiq loungewear bottoms. [image] Available at: https://www.physiqapparel.com/womens/tights-bottoms/https:// [Accessed 21 Jan. 2019].

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Gymshark (2019). Gymshark homepage photocollage. [image] Available at: https:// uk.gymshark.com [Accessed 21 Jan. 2019].

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DJ BOOTH

FITTING ROOM

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GYMSHARK CANTEEN

Helena Evison. Floor-plan. [Illustrator] Created 19th January 2019.

MIRROR

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MIRROR MIRROR

APPAREL STORE

ENTRANCE

Helena Evison. Map of London. [Illustrator] Created 19th January 2019.

MANCHESTER BIRMINGHAM

LONDON

ISPreview (2018). Silhouette map of United Kingdom. [image] Available at: https://www. ispreview.co.uk/index.php/2018/04/2018-q1-uk-fixed-superfast-broadband-coverage84. hits-95-1.html [Accessed 21 Jan. 2019].

RK

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Helena Evison. Mock up shop front. [Illustrator] Created 19th January 2019.

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Da Silva, H. (2018). Habiba Da Silva. [image] Available at: https://twitter.com/habibadasilva/status/1038565272163155969 [Accessed 19 Jan. 2019].

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Butler, S. (2019). Sophie Butler Instagram. [image].

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Helena Evison. Gymshark communication plan infographic.[Illustrator] Created 5 January 2019.

Helena Evison. Iphone Instagram competition. [Illustrator] Created 5 January 2019.

01 February 2019 at 12.00

01 February 2019 at 12.00

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Helena Evison. Iphone Gymshark athlete email. [Illustrator] Created 5 January 2019.

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Helena Evison. Gymshark Instagram post. [Illustrator] Created 5 January 2019.

APPENDIX Survey Monkey questionaire

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Instagram Poll

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Gymshark Q&A with founder Ben Francis, creative director Mitch Healey and development manager Ed Priestnall.

07/11/2018 What are the key things you look for when looking for a space for a pop up?

Depends on the area if it’s in a key area like Los Angeles, it’s down to space and how many people we can get in the door at once. The last thing we want is big queues because that affects the overall experience for our customers. Is it safe and is it on brand?

How long on average does it take to find one?

For LA it took about 3 trips and each one was about 3 days long. Toronto, I found that on line in about 2 days. And London was one trip, New York it was about 24 hours in New York.

For the future, what new locations are you looking at? the US, Australia, maybe Germany that’s it for now by January A cool concept would be like a small little agile pop up that’s only there for about a week it’s just something that has the upcoming new season, where you can touch it, feel it but not actually purchase it.

Would you ever consider making one of these spaces permanent?

Yes, that is what we are looking at now but not until the time is right.

It’s a competitive thing so whilst you are moving around competition like Adidas, Under Armour and Nike don’t know what is coming next. It would take a lot of man power.

Are there any key macro/micro trends that you are looking at adopting for marketing?

So, at the moment Womenswear is massive when I first started going to the Gym it was 95% male but now it’s more like 50/50 even when you like go to Golds Gym so that’s a big macro trend.

People get a lot a more excited about Brands and interacting with Brands a lot more now. There’s a brand called Kiff in New York which are doing really well. Who are street wear focussed and get long queues into their stores and they manage it in an experience. The way people interact with brands is really different the reason behind that is because product is becoming so disposable.

And I’m sure you all know the misguided and Pretty little things of this world where you can buy a product on Friday, wear it once and return it or throw it in the bin. ……… So, branding has become more important than ever. It gives you a little bit more of an insight behind the business and why it started and why it exists because then you get that emotional connection to it. I only buy with a few companies that really resonate with me. Triumph motorcycles, Apple.

As a customer myself I can see that you have your Pinterest boards, Spotify playlists specific to each athlete and stuff like that, have you ever thought about taking that to the next step and turning it into a media house and an umbrella brand?

Yes, we are actually considering that – again you probably know about Complex and HypeBeast that literally built brands and businesses of things like that- it is something we’d be interested in but we are just working out the way we would go and how we want to approach that.

What has been your very best popup experience?

My favourite one would be the New York one which was the Nicky B collab we did. The queues were really long so we’d been friends with Nicky a very long time, 5 years ago we were sat in a hotel for body power and now we’ve got queues around the block in New York and that’s like really crazy. But then Toronto was probably my favourite because of the amount of people that were there.

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What’s the average budget you would set for a campaign or an event?

So, for a pop-up store you are looking at about £250K per store that does not include getting the actual product there, you will not get that back we do need to plan properly because of the cost but it does vary in each area, we did one in October in Paris which was a new market for us and we spent about 100k on that one. Which will be a good investment we are going to one in LA in April which will be about £350K investment but again it’s all based on the area and what we can get back from it.

Who would you say your direct competitors are?

I don’t think we have any real direct competitors, there’s a bunch of shitty brands knocking around like physique, alphalete, that are all knock offs, gymking that still pisses me off to this day, gymgator – some lad that went to the same uni as me started that, brilliantly original. The difference with us.. is that we’re not like that??.....? I really admire Lulu Lemon, I don’t particularly think that their market is that cool, but I think they’ve got gorgeous product and their product design, and product development Would you ever consider doing shoes?

Yes – definitely, we did actually try and do shoes a while ago, but then because we were growing so fast and probably a little bit over confident in our abilities, and they were a lot more difficult than what we though they’d be..?.... . But for me, it always starts with purpose, like why are we going to do it, because to be honest, if there’s no gap and we’re happy enough with the footwear market as it is then there’s no point.

Can you go a bit more in-depth about the criteria for a Gymshark athlete? ??? .. now, it’s definitely not a ‘how many followers have you got?’ sort of thing, because if we wanted to grab along a load of people with millions of followers then we could totally do that, a lot of people that get in touch with us want to be a part of the team…. but with us it’s all about fit first. So what we try and do the best we can is always meet them first, I’ll always want to meet the athletes first and make sure that they’ll fit in with our team first of all..

What would you say is your biggest challenge that comes with further expansion and expanding your brand?

Hiring the people is really really fucking hard, like really hard. If you look at the numbers and the way that we’ve grown, most of our expediential growth has come when we’ve hired more people and when the staff count has gone up, and we’ve definitely made some big mistakes there before in the past, believe me we’ve had some nutcases join the business before, but we’ve had a lot of really really great people….

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