Gymshark Executive Summary NTU FMB by rosetovell

EXECUTIVE SUMMARY

ROSE TOVELL N0726194

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Rose Tovell N0726294 Live Project Executive Summary Word count: 969

CONTENTS 03

Introduction

Brand Overview

Market Overview

USP

Key Competitors

Macro Trends

SMART Objectives

Marketing Strategy

Communication Plan

Conclusion

INTRODUCTION This executive summary will carry out a brief situational analysis of the fitness apparel and accessories brand, Gymshark, leading to the development of a proposed idea for a three-year marketing strategy plan, as well as a one-year tactical communication strategy in order to drive brand awareness and maximise profits.

Target males and females aged 16-25.

Britain’s 2016

fastest growing company.

BRAND OVERVIEW Since the beginning in 2012, Gymshark have experienced rapid growth, being named Britain’s fastest growing company in 2016 (The Sunday Times Fast Track, 2016). Targeting specifically 18-25-year-olds with an interest in fitness, the brand has successfully used influencer marketing to build a community of ambassadors and consumers who aspire to be part of the Gymshark culture. The brand is now supported by customers from over 170 countries worldwide as well as having millions of highly engaged social media followers across a number of platforms (Gymshark, 2018).

(The Sunday Times Fast Track, 2016)

Turnover for 2018 predicted to reach £100m up from £41m in 2017. (Nguyen, 2018)

“ ”

Gymshark is a fitness apparel and accessories brand, manufacturer and online retailer based in the United Kingdom.

(Gymshark, 2018)

MARKET OVERVIEW With the global sports apparel market estimated to generate an extra ÂŁ7 billion between 2019 and 2020 (Statista, 2019), there is a lot of opportunity for Gymshark to grow even more than it has done in previous years. As well as this, the wellness and fitness segment is steadily growing, serving a total of ÂŁ162 million people in the year of 2018 (Wellness Creative Co., 2018).

Total Revenue of the Global Sports Apparel Market from 2012 to 2024

(Statista, 2019)

Statista (2019) estimates the global sports apparel market will generate around $181b in revenue in the year of 2019.

USP

“

Steve Hewitt, CEO of Gymshark, says the brand’s USP is that they are

able to be agile, and create and produce new products within 8-10 weeks. (Christie, 2018)

”

Gymshark also pride themselves in being responsive to their customer needs by being extremely good at knowing exactly what they require and when.

KEY COMPETITORS Gymshark claim they have “no direct competitors” (Ben Francis, 2018), however they must be aware of the sportswear market leaders such as Nike and Adidas. The two main competitors of the brand include Lululemon and Adidas - although Lululemon and Gymshark have coordinating product offerings, Lululemon’s price point is much higher than Gymshark’s. Also, Adidas adopts a more holistic marketing strategy including a range of above the line and below the line techniques, compared to Gymshark who mainly operate on social media channels.

Nike and Adidas remain strong market leaders with 21% and 15%. (Passport, 2017)

MACRO TRENDS

PERSONALISATION

After researching macro trends, it was discovered the trends Personalisation, Healthy Living and Experience More would be most relevant for the expansion of Gymshark (Euromonitor, 2017). The proposed strategy will focus on one of these macro trends for each of the three years.

HEALTHY LIVING

EXPERIENCE MORE

SMART OBJECTIVES To increase womenswear and menswear sales by an extra ÂŁ5m than the previous year by December 2019.

To increase conversion rate on the Gymshark website by 15% by December 2019.

To gain 5% more of the global fitness accessories market by December 2020.

YEAR 1

YEAR 2 YEAR 3

To make Gymshark the preferred fitness apparel brand for 16-25 year old males and females in the UK and US by December 2021.

To increase worldwide sales of fitness accessories by $200,000 more than the previous year by December 2020.

To increase total international sales by 20% by December 2021.

To gain 6% of the global fitness apparel market for both menswear and womenswear by December 2020.

MARKETING STRATEGY YEAR ONE The first year of the strategy will focus on utilising personalisation techniques to augment the brand-consumer relationship and increase brand loyalty. A ‘Fit Assist’ feature will launch on the website, encouraging new users to answer questions about their height and weight to build a personal profile. There will also be the introduction of a loyalty scheme as according to Miller (2017), “it costs around 5 to 25 times more to gain a new customer than to keep an existing one.”

YEAR TWO The second year will surround a product development – this will be a collection of gym accessories as well as home workout equipment to align with the growth the fitness industry is expecting to experience in upcoming years. Inspired by the Healthy Living trend, a Gymshark-branded range of gym accessories will be seamlessly suited to the demographic the brand currently targets.

YEAR THREE The objective for the final year of the marketing strategy is to open an experiential physical store in LA as research shows “physical stores are superior to those of e-commerce – a combination of digital and physical is most often what customers want most” (LS:N Global, 2018). Also, the third year will refine, grow and expand the brand into international markets by redeveloping their websites in international countries, making them culture-specific so that the brand is operating “more local on a global level” (Steve Hewitt, 2018).

YEAR ONE

YEAR TWO

YEAR THREE

1-4 Months

Fit Assist launch

Social media campaign

Promotion towards physical store

5-8 Months

Promotion of personalisation through a pop-up

5-8 Months

Launch gym accessories range

Launch experiential store

9-12 Months

Launch loyalty scheme

Launch at home workout range

Refine and grow in international markets

1-4 Months

COMMUNICATION PLAN The communication plan will be used to aid the achievement of the SMART objectives for the first year of the strategy in 2019. • The tactical plan will begin in January with a social media campaign - #IAmVisionary – a personalised take on the Gymshark slogan. It will be shared across all their social media channels to maintain consistency and create user-generated content. • In March, a video will be posted on YouTube to promote the Fit Assist feature and direct emailing will be used to attempt to receive feedback on this. • April will see the promotion of the pop-up store through the use of flyers sent in UK parcels, printed with a QR code which can be scanned to reveal exclusive information about the event posted on their blog. • A 3-day pop-up will be held in July in Manchester with the focus being on personalisation which will involve meet and greets with athletes, as well as the opportunity to win a personalised garment designed by the consumer. • September will see a collaboration with Mind to raise awareness for World Mental Health day in October. One video will be uploaded monthly for 3 months, each featuring an athlete who has struggled with or witnessed mental health issues. The goal will be to show how exercise can improve mental as well as physical health. • December will introduce the hash tag #24DaysofGymshark – an advent calendar competition to improve brand loyalty with the opportunity to win an all expenses paid trip to the next Gymshark pop-up. 18

CONCLUSION Through the use of the three-year marketing strategy and the one-year tactical communication plan focussed around personalisation and loyalty, the brand will gain ÂŁ5 million more than they were originally projected to generate for the year 2019. The communication plan will also help aid the achievement of the two SMART objectives for the year by driving awareness and engagement in order to improve sales profits and conversion rate. In the future, Gymshark must continue to stay on top of micro and macro trends and be aware of relevant consumer insights to maintain their stable position in the competitive landscape

ILLUSTRATIONS Unknown (online). Available at: https://www. officelovin.com/2018/06/19/a-tour-of-gymsharks-newhq/ (Accessed Jan 2019).

Gymshark Central, 2019 (online). Available at: https:// www.gymshark.com/blogs/news/liftsydney-as-ithappens-day-1 (Accessed Jan 2019).

Gymshark, 2019 (online). Available at: https:// uk.gymshark.com/ (Accessed Jan 2019).

Gymshark Central, 2017 (online). Available at: https:// www.gymshark.com/blogs/news/blackout-styleguide-womenswear (Accessed Jan 2019).

Unknown (online). Available at: https://www. finder.com/uk/fusion-leggings-gymshark (Accessed Jan 2019).

Gymshark Central, 2019 (online). Available at: https:// www.gymshark.com/blogs/news/weight-of-theworld-behind-the-scenes (Accessed Jan 2019).

Gymshark Central, 2018 (online). Available at: https:// www.gymshark.com/blogs/news/vital-seamless-iscoming (Accessed Jan 2019).

Gymshark, Instagram, 2019 (online). Available at: https://uk.gymshark.com/ (Accessed Jan 2019).

Unknown (online). Available at: http://www. movieweb.me/gymshark-be-a-visionary.html (Accessed Jan 2019).

Gymshark Central, 2017 (online). Available at: https:// www.gymshark.com/blogs/news/the-seamlesscollection (Accessed Jan 2019).

Gymhark Central, 2019 (online). Available at: https://uk.gymshark.com/pages/vital-seamless (Accessed Jan 2019).

Gymshark (online). Available at: https://uk.gymshark.com/ (Accessed Jan 2019).

Unknown (online). Available at: https:// seeklogovector.com/lululemon-athletica-logovector-svg/ (Accessed Jan 2019).

Unknown (online). Available at: https://www.paragon. com.sg/stores/adidas (Accessed Jan 2019).

Unknown (online). Available at: https://www. neoncreations.co.uk/blog/neon-fitness-industry/ (Accessed Jan 2019).

Gymshark Central, 2019 (online). Available at: https:// www.gymshark.com/blogs/news/liftsydney-as-ithappens-day-1 (Accessed Jan 2019).

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Rose Tovell N0726294 Live Project Executive Summary Word count: 969 14