Gymshark was created in 2012 by Benjamin Francis and Lewis Morgan (Gymshark, 2019). The company deals with fitness apparel and accessories. It is based in the United Kingdom and makes sales through its online portal. The company deals with both men’s and women’s sports clothes. Gymshark started as a screen printing company and has grown rapidly into a recognizable brand in the fitness apparel industry (RIN, 2018). The company has an excellent following on various social media portals from all over the world. In 2017, the company made sales of more than 40 million Pounds. The company has a small number of employees that monitor its operations and administrative activities (Geoghegan, 2018).
Following are the four dimensions of the Ansoff Matrix for Gymshark:
Market Penetration
Market penetration takes place when an organization launches existing products in existing markets. Gymshark is a relatively new company and follows this strategy aggressively to penetrate markets it has gained success in. It motivates its current members and customers to regularly purchase new apparel and other items as they are launched. They are sent reminder emails and notifications of new items being launched. The products are also promoted on social media and other marketing channels. The company is gaining fame rapidly and has become a successful start-up brand that has allowed it to penetrate existing markets with greater ease. It also has strategic alliances with e various gym chains in the UK to promote its products. Different products are also augmented to provide customers with promotions. Repetitive customers are also offered greater discounts. The quality of the products is also improved with time to ensure customer satisfaction. These measures allow Gymshark to increase its sales and market share.
Market Development
This strategy involves the promotion of existing products in new markets. The first strategy that Gymshark uses in this regard is to promote its products in different nations that it did not sell to already. This creates millions of new potential consumers for the company. The company enters these new markets and then markets its products. However, Gymshark has been mainly focusing on the United Kingdom market and has been slow in international expansion. Another strategy that Gymshark makes use of is to focus on new market segments in the existing markets by creating different pricing policies for its products. Apparel and accessories are introduced in new colors and designs to target new market segments. Market development helps the company increase its number of consumers.
Product Development
Product development refers to the strategy of selling new products in existing markets. The first strategy Gymshark uses is to launch new models of its products in various colors and shapes that are meant to gain the attention of the consumers. These products also often have slogans printed on them intended to motivate the consumers. The company does a detailed market analysis before it starts working on new products. The detailed research helps ensure the product does not fail once it is launched. The products the company is already selling are also revised and introduced in new color combinations with variations in style and texture to create a slight difference from the earlier product. There are various steps involved in the product development process that the company follows whenever a new product is designed, manufactured, and marketed. The new products are then aggressively marketed on social media and through other means. Product development is one of the main strategies of Gymshark to gain consumer attention.
Diversification
Diversification can be a risky strategy for Gymshark. It can vertically backward diversify by creating its own textiles mill and manufacture its fabric. It can also forward integrate and establish its retail stores. The company also has the option to horizontally diversify into related industries such as sports shoes, sports electronics, sports equipment, racing gear, and so on. On a broader scale, the company can also diversify into unrelated industries such as consumer electronics, metals, chemicals, and various others. Since the company is young, it can have financial difficulties when diversifying through any of these options. This will require the company to work out the risks and benefits associated with any diversification strategy it wishes to pursue.
References
Geoghegan, J., 2018. Gymshark launches new UK HQ. [Online] Available at: https://www.drapersonline.com/news/gymshark-launches-new-uk-hq/7029878.article [Accessed 12 Jan. 2020].
Gymshark, 2019. About Us. [Online] Available at: https://eu.gymshark.com/pages/about-us [Accessed 12 Jan. 2020].
RIN, 2018. Gymshark is a prime example of millennial marketing done right. [Online] Available at: https://www.retail-insight-network.com/comment/gymshark-prime-example-millennial-marketing-done-right/ [Accessed 12 Jan. 2020].