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Creative Brief for Gymshark: Introducing an Athletic Footwear Line IMC Creative Brief

Company Information Gymshark is a well-known, online fitness apparel company that is based in the United Kingdom. The company has a diverse selection of gym clothes for both men and women, including tank tops, sweaters, leggings, pants, and more. The company was created in 2012 by 19-year-old Ben Francis (Forbes, 2018) and a group of his high-school friends. From what started as a screen-printing operation in a garage, it is now one of the fastest growing and most recognizable brands in fitness, with over 7 million highly engaged social media followers and customers in 131 countries. Gymshark states that “This growth comes from a devotion to producing innovative, effective performance wear and an ever-expanding social presence, and above all a commitment to the Gymshark vision: Before there is an action, there is an idea. We exist to create the tools that help people unlock their full, incredible potential and put their ideas into action. Be all that you imagined you could be. Be a visionary.” (Gymshark, 2018) Background Information Health & fitness has been a rising trend in the past couple of years whether it’s to get in shape, prevent health issues, or anything in-between. In 2017, the global health club industry was worth over 87 billion U.S. dollars, an increase of more than 20 billion U.S. dollars compared to the 2009 figure. (Statistica, 2018) With an increase in fitness and working out, comes an increase in fitness apparel. The sports and fitness clothing category is projected to reach sales of $231.7 billion by the year 2024 and in 2017, the total estimated value of the global athletic apparel industry was $168 billion. (Statistica, 2018) The categories with the fastest growth rate are sports-inspired apparel and footwear, which saw 6% and 10% growth levels respectively. It has been found that the newest trend referred to as “athleisure,” is steadily rising, as millennials are willing to spend more on this type of clothing. Athletic wear represented 17% of the apparel market in 2015 and has since been rising drastically. (Multichannelmerchant, 2018)

such as labour controversies with sweatshops, or Nike’s recent ambassador scandal. Sometimes publicity can be beneficial for the companies, but other times it can ruin their reputation and lose customers. Target Market Profile Gymshark’s primary target market is youth that are leading an active lifestyle. Demographics: men and female, aged 18-30, median income Geographic: all over the world as they are an online retailer, mainly urban and suburbs Lifestyle: active and fitness oriented, sports, social media (followers of Gymshark brand ambassadors) Behaviour: want to live a healthy lifestyle, perform well in the gym, find comfortable clothes that help enhance their workouts, primarily shop online Psychographic: trendy, stylish, fun, adventurous, health conscious Problem/Opportunity Statement Currently, Gymshark does not offer athletic footwear, a product line that all of their competitors do. Athletic shoes would be the perfect addition to their collection, in order to complete the gym look from head to toe. The athletic footwear market will register a compound annual growth rate of 3% by 2020 according to an analyst. Currently, the top performing athletic shoe company is Nike, then follows Adidas and Under Armour. (Technavio, 2018) There are also the niche athletic shoe companies such as Asics and New Balance, however, most of their lines are specific for running, while Gymshark’s will be a multi-purpose shoe, geared more towards the gym. Lululemon just recently created their shoe line in 2017, as the executive vice president of retail stated; “Our brands share a passion for providing products that are technical, innovative, functional, and fashion forward.” (Well and Good,

2018. Lululemon also stated that; “We're pleased with how it's performing,” he said. “We're looking for opportunities to expand it. … It's an open strategy for us to

explore.” (Forbes, 2018) Lululemon is being seen as a threat to Nike, Under Armour and Adidas, now entering into the footwear market, and Gymshark could be next. The athletic shoe industry has grown strongly over the past five years to 2017 due to economic growth and rising sports participation. The public is becoming increasingly aware of the obesity epidemic in the United States, stirring up a wave of health consciousness that has encouraged consumers to exercise and, therefore, buy athletic shoes. (Ibisworld, 2018) The athleisure trend is also beneficial in the athletic footwear industry and workout shoes are now being worn more for everyday activities and as fashion statements. This graph represents the growth in athletic footwear, as it shows the revenue from footwear segment of Nike, Adidas and Puma from 2010 to 2017 (in billion U.S. dollars). (Statistica, 2018)

order to enhance their brand image and increase sales, Gymshark must be strategic in their new product launch. They must distinguish themselves as high-quality, trendy new shoes that are essential for successful workouts. This will be done by creating excitement and ‘hype’ for working out in the new shoes and key messages being delivered through their influencers, making customers not only want the new product but need the new product. Gymshark’s mission focuses on three elements that will be critical in the launch: Family Our community of athletes, artists and visionaries stretch all the way across the globe. We are a family of like-minded individuals working to bring our respective visions to life. Progression Our products exist at the intersect of engineering and art. To remain at the forefront of both, we need to be fearlessly progressive and consistently future- conscious. We are not future-proof. We are the future. Vision In everything we do, be true to our own vision and respectful of others. We are here to bring ideas to life. There is no idea too big, or too small. These elements will be used when delivering these key messages:

1. Gymshark supports and encourages all athletes, offering the best products available to help achieve their goals, which includes the importance of proper footwear at the gym.
2. Customers are Gymshark’s top priority, which includes making shopping convenient and offering the best quality for everything they need in one location.
3. Gymshark encourages physical activity for a healthy life, and with their trendy new shoes, made for top performances; you can look good and feel good at the gym.

Creative Strategy Focusing on the athletic footwear market and highlighting the importance of proper shoes while working out through the utilization of brand loyalty and social trend awareness of being physically active will successfully launch the new product line. Promote Gymshark’s high-quality shoes with how they can contribute to a successful workout and prevent injuries will be a key identifier of the new line. Gymshark thrives on their innovation positioning as they stress newness and their commitment to research and development to offer the best products, differing them from their competitors. The selected media strategies must be suitable for an integrated, cross-platform approach. Execution Utilizing Gymshark’s online presence and ambassadors, they will need to begin by creating online ‘buzz’ about something new coming to Gymshark. This will start to get people thinking about what it could be and building up excitement for the launch. Next, through their social media platforms (Instagram, Facebook, Twitter, Snapchat) and their ambassador’s social media sites, it will be announced that Gymshark will be releasing a new product line of athletic footwear. This will be announced two months prior to the official release date to get people excited. The advertisements will feature the new shoes and the ambassadors will each receive a pair to promote and highlight the benefits and various colours offered for both men and women. It will also be announced that three pop-up shops will be coming on the day of the launch where the new shoes can be bought in person and you can meet some of your favourite Gymshark ambassadors. These events have always been widely successful and sell-out every time, making it the perfect approach to launch the new product. These locations will be in Toronto, Dublin, and LA. Each of these locations have already had successful pop-up shops before so it will be beneficial to launch where the company knows the location and knows that Gymshark is popular there. The online shop for the shoes will also be the same day for those who can’t attend

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Ibisworld. (n.d.). Consumer Goods-Services. Retrieved November 1, 2018, from https://www.ibisworld.com/industry-trends/specialized-market-research- reports/consumer-goods-services/apparel-accessories-stores/athletic-shoe- stores.html News. (n.d.). Retrieved November 1, 2018, from https://www.gymshark.com/blogs/news/tagged/events?page= Statistica. (n.d.). Footwear / shoe revenue Nike, Adidas & Puma 2010-2017 | Statistic. Retrieved October 27, 2018, from https://www.statista.com/statistics/278834/revenue-nike-adidas-puma-footwear- segment/ Statistica. (2018, February 12). 37 Athletic Apparel Industry Statistics and Trends. Retrieved October 25, 2018, from https://brandongaille.com/37-athletic-apparel- industry-statistics-trends/ Technavio. (2018, September 18). Top 15 Sports Shoes Brands in the US 2018 | Athletic Footwear Market. Retrieved November 1, 2018, from https://www.technavio.com/blog/top- 15 - vendors-athletic-footwear-market-us