Assessment 2
Individual Report – The Marketing Plan – Gymshark
Assessment task: Case study analysis – Individual written report weighting: 50%.
Date/time/method of submission: Week 15, online via Blackboard and ‘turnitin’.
Word count or equivalent: 2500 words
Case Study Brief – Gymshark and the UK sportswear market.
Ben Francis started the online fitness clothing brand Gymshark in 2012 at the age of just 20, when he was still a student. Since then its range of vests, hoodies, T shirts and leggings has gone global. Gymshark sells to 177 countries, including the USA, where it makes about 40% of its sales. With export sales of £30.8M last year equating to 128% growth, Gymshark was ranked 16th in the Sunday Times International Track 200 list featuring British private companies with the fastest growing overseas sales.
Total sales at the end of the latest financial year, July 2017, is shown as £40.5 million. The brand is known for its affordable gym gear for men and women. Trend-focused products come in technical fabrics with retail prices ranging from £20 for vests to £80 for parkas. Gymshark sells direct to the consumer – it has no wholesale stockists. Francis maintains that this direct approach allows Gymshark to control its own destiny, by collecting and acting on customer feedback.
There are no current plans to explore wholesale, or to open its own bricks-and-mortar stores. It is therefore able to stay nimble and take “brave” decisions larger brands would be unable – or unwilling – to chance. (Drapers.com 2018) Gymshark has carved itself a niche in the crowded sportswear market by building a relationship with its customers that stretches beyond just clothing. It understands precisely what its core demographic of fitness-addicted 16-to-25-year-olds want, as well as who inspires them. The firm has nurtured a style conscious fanbase by sponsoring popular youtubers, instagrammers and bloggers with a combined following of 30m. It has created a highly engaged following through its network of fitness influencers. These “Gymshark Athletes” include many social media stars. They promote the brand via social media content and travel the world with Gymshark to meet fans. These ambassadors become an integral part of the brand. In a recent interview Francis explains the reason for this approach highlighting the point “If I wanted to meet a Nike sponsored athlete, the closest I’m likely to get to them is if I pay to go to a football game and see them from the stands. We want our team to be as accessible as possible to the wider Gymshark community.” The sports clothing market in the UK the ‘Athleisure’ trend has evolved to become part of consumer lifestyles, as consumers interest in their appearance while exercising and their general fitness continues. The trend has had a positive impact on sportswear, particularly sports inspired apparel and footwear and has been a major contributor in the UK Sportswear market which is set to increase by 8% to £2.5bn this year (Roberts 2018).
Such levels of growth mean sportwear is outperforming other clothing segments – providing retailers with a large, more varied activewear customer base (GlobalData, 2017). The sector is dominated by Nike and Adidas but has recently seen the arrivals of non-specialists into the market including ASOS, H&M, Boohoo, Primark, Ted Baker, Topshop, Whistles, Superdry and many more, all of whom have fashion credentials and loyal shopper following (Armstrong, Telegraph, 2016) Around half of Britons bought sports clothing for non-sports use, according to Mintel research, with a third of shoppers saying they bought fashionable sportswear that can be worn when not exercising. The athleisure market has been turbocharged by the number of people buying sportswear with no intention of breaking into a sweat.
Assignment briefing and guideline:
With energy and growth in the sports wear market reference to case study prepare a marketing plan with clear recommendations as to how Gymshark would be able to improve and maintain share and growth. There is no definitive format for the preparation of the marketing plan but it is recommended that the following can be followed referring to the assesement criteria below
Assessment criteria and Marking Guide
| Assessment criteria | Maximum Marks |
| Executive Summary – This should discuss the main issues in the report and recommendations in brief. At most half a page. | 5% |
| Introduction – Discuss the purpose of the marketing plan and why this is important for Gymshark | 10% |
| Preparing an environmental and competitor analysis using the PESTLE, Porters Five Forces and Internal issues | 20% |
| Do a SWOT analysis to identify the Gymshark Strengths, Weaknesses, Opportunities and Threats | 10% |
| Based on the SWOT set 3 clear marketing objectives which will help Gymshark grow and improve market share. Please note that the objectives should follow the SMART criteria | 10% |
| Develop the marketing strategy based on Segmentation Targeting and Positioning | 20% |
| Discuss how the Marketing mix (4ps) can be used to help improve Gymshark growth and market share. | 20% |
| Conclusion | 10% |
| Total | 100% |
2.3 Learning materials
The reading list for this module is available on Blackboard in the module area or by searching https://uwl.rl.talis.com/index.html. This shows real-time availability of books in the library and provides direct links to online resources, recommended by your lecturer.
Remember to log into Blackboard daily to receive all the latest news and support available at your module sites!
Subject guides (https://www.uwl.ac.uk/library/finding-and-using-information/subject-guides-libguides) are also available to help you find relevant information for assignments, with contact details of the Academic Support Librarian for your School. Things you need to know
– Dibb, Pride and Simpkin – Principles of Marketing, Essentials of Marketing 2016
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