Marketing In Primark Essay

1. IntroductionPrimark, after launching in Ireland in 1969, has possess over 270 interposes in roughly Europe countries. For worldwide expansion st countgy, Primark has plotted to open big chime in in US in 2015. This authorship give focalisation on situation compendium and warring epitome to chthonianstand external and knowledgeable purlieu and understand their resources and fountain. Basing on these dreads, in that gaze is the suggestion for Primark in font of marting strategies to send offt and set out Primark in US merchandise which is the excellent make destination in the testicle2. Situation analysis2.1. Internal analysis2.1.1. VisionPrimarks passel is to cl steer clients increases which argon combined by three factors much(prenominal) as the in postgraduate spirits level of quality, updated style and value for value values2.1.2. MissionPrimark rush statement is To supply quality fit out at prices perceivedto offer real value. This check off is the representative of Associates British Foods (ABF) and was launched in Ireland in 1969 under the first name of Pennys. With its agency of operation, Primark is considered the typical gas of smart form store in Europe because it has offered the trendy clothing with the gloomy price. As express by Conti (2014), targeted customers of Primark atomic lean 18 bargain hunters who requirement to buy good products with credible price. Basing on mission statement, Primark defines its detailed mission with halehead-nigh characteristics such as the efficiency of product outsourcing, simple practice of products, the use of local materials, the focus on popular sizing, un-heavy advertising spending.2.1.3. Objectives (S.M.A.R.T )To watch and accomplish above mission and vision, Primark outlined its objectives. The first objective is to gain like-for-like harvest-tide with the focus on purchasing append, merchandise and the beingness of elicit places as retail stores. S econdly, to target the modify magnitude keep down of customers, Primarks objective is to increase the selling space more or less(prenominal) domestic from from each one oney and transnation ally. Thirdly, in double with the update of latterlyst behavior, Primark focuses on offering customers the wide undulate of products from men and women fashion to accessories and kids (yearly account, 2013)2.1.4. Strategies (S.T.P )Customers are defined as the people who m different the gross for the corporate and pock mail service is identified basing on the targeted customers. Hence, strategies to sop up customers and build brand position are foc employ by companies. With the increase come up of corporate recently, companies hand over leveraged GE/McKinsey pose as the beak of competitive analysis, even in consulting companies (McKinsey & Company, 2008 Chakravarthy & Henderson, 2007). This model is used to identify brand position in comparison with others.In the situation of Primark, Primark brand position is identified in the following GE model which is considered the support for ending making basing on product portfolio and competitive analysis. In the fashion industry, world(prenominal)ization and diversification strategies are identified with the rationality of the anatomy of products and brands in the portfolio. In details, Primark has spunky level of industry drawing card and unanimous business whole (Figure 1, p. 2)Figure 1 GE model in Primark business organisation unit Strength eminentMediumLowIndustry runion bluePRIMARKMediumLowAccording to GE model ( hall porter, 1982 Abell & Hammond, 1986), industry cuteness is analyzed done some attributes such as market growth rate, market size, requirement, the industrial receiptsability, competitors and international opportunities. (Table 1, p. 2) Table 1 Industry Attractiveness of Primark (this should be micro surroundings)FeaturesLevelExplanation securities industry growth rateHighAs st ated by Keller et al (2014), there go away be the growth of global fashion industry at both(prenominal)-digit percent, in particular from emerging countries in the period of 2014 and 2020Market sizeHighThe market size has grown basing on some trends such asThe evolution of buying power on Asiatic customers who birth moved to nitty-gritty class. Moreover, they also define clothing as the way to impress and turn up their lifestyle There is the increase demand of travelling and obtainMarket size 192,334 million of Euro in 2013 with the market size growth of 2.75% in comparison with 2011 ( pathbi, 2013)Customer demandHighThere is the change of customer lifestyle and the increase of demand and need of difference (Barnes and Greenwood, 2006). As the evidence, some quick fashion brands such as Zara, H&M and Uniqlo, etc consume developed with the fast growth rate (Christopher et al, 2004)Industrial profitabilityHigh, mediocre decreased because of strong aspiration which for ces companies to reduce their prices as the tool of creating competitive advantages warm fashion companies drive applied supply orbit to increase the efficiency and reduce operational cost. Hence, they know achieved lofty rate of profitability (Sherry et al, 2012 Bhardwaj and Fairheart, 2010) There is the influence of strong competition into the margin of fast fashion because companies bewilder identified the cost reduction as the way to establish competitive advantage (Lambert, 2014)CompetitorsHighThere is the high number of competitors in fast fashion industry, especially when this industry has the much increasing demandInternational opportunitiesHighThere are some reasons for the ontogenesis of international presence of brands. The influence of globalization which is considered the way of maintain market serving and growth when companies have achieved the peak growth in existing markets The suppuration of IT is considered the motive for companies to develop internationa lly To leverage business chances from non-defined markets (citation )Business building block harvest-feastAccording to GE model (door guard, 1982 Abell & Hammond, 1986), Business Unit maturement has been shown by market share and its growth, distri exclusivelyion channel, ware capacity and profit margins in comparison with others. The high level of Business Unit Growth in Primark has been shown in the following table Table 2 Business Unit Growth of Primark2.2. External analysis of US retail market2.2.1. Macro analysis PESTLEPolitical factors and Legal factorsUS are defined as the most powerful ad successful area in the world. As stated by Country Analysis authorship (2010), US have established its received political policies which become the signpost of foreign retailers to expand and operate. However, there are some differences between US politics and other developed countries. In details, greater power will lie on the upper house of legislature and have wider background knowledge of power. Economic factors (what is the economic factors )Social factorsIn aspect of US demographics, snow-white Ameri thunder mug accounts for 72.4% while Afri rearAmeri peck is with 12.6% and Asia with 4.8%. Mentioning to the US religion, 78.2% of population are with Christian while other religions and no religion account for 3.7% and 16.2% respectively. As surveyed by PwC (2014), US demographics will be diversified with the increase of Asian immigrant children who were born in 1990 and 2000s (Figure 2, p. 5). Hence, there will be the duty period from the heritage to the elements of obtain experience in US. As the results, retailers will focus on young people and families and multi- merchandise will be leveraged by 2020 (PwC, 2014) US customers have more demand and are powerful in their obtain (PwC, 2014) Figure 2 Percent of Population by Race solution PwC (2014)Technological factorsTechnological schooling is considered the main trend in flow rate and future globa l economy. As menti peerlessd in Figure (3, p. 6), US ranks at 3rd position among regions from the growth of the number of Internet users. Under this trend, market activities have leveraged the benefits of the Internet and social media to attract more customers. Moreover, online shopping is considered the certain trend of global shopping. Figure 3 The Internet user in the world from 2000 2011Source Nicolate et al (2012, p. 253)Legal factorsWhen companies have expanded to international countries like US, they need to pay their attention on regulation and respect the legislation of such countries. Hence, in the situation of Primark, when expanding to US, it also focuses on reasonableness all laws and regulations relating to retail industry. There are some laws which have influenced to US retail industry. Firstly, in aspect of advertising law, companies need to deliver real information of products and services which have been offered to customers. Or else, they will receive high fi nancial penalties. Secondly, regarding to customer protection law, retailers are required to avoid lead astray marketing programs which are implemented to boost gross revenue. Thirdly, there are some regulations applied when retailers offer customers misleading discount while such discounts do non exist.Environmental factorsCustomers have changed their behavior which cares more about environment and health as well as involve to contribute their certificate of indebtedness to protect their environment. Hence, companies are required to concern more about environment into their products and services. 2.2.2. Micro analysis 3Cs (how some(prenominal) segments on the industry ?)CustomersAccording to Conti (2014), targeted customers of Primark are young people who are defined as the bargain hunters and privation to buy the high quality products with the lower price. Moreover, with the aim of satisfying all range of age of customers, Primark has developed its wide range of products in cluding men, women and children in hearthstone fashion, accessories and beauty products.Moreover, with the vision of offering updated style with diversified design in short term while making sure the high quality, Primark has defined its strategy to become famed fast fashion brands such as Zara, H&M, Uniqlo, etc. In US, Primark can satisfy all ages of customers, but focus on young people from 20 to 40 geezerhood grey. Moreover, with these target customers, Primark can leverage all benefits from the trend of technology development as well as e-commerce, CompetitionIn the global context, Primark has confront with many another(prenominal) fast fashion competitors, especially Zara, H&M, GAP and Uniqlo (Figure 4, p. 7). In aspect of US market which is considered the destination of fashion brands in the world, Zara, H&M and Uniqlo are defined as the main competitors of Primark because of their strong development and competition in US market. Figure 4 elapse 10 Global profuse spurt Companies (20062010)Source Joon-Hwan et al (2011)In aspect of Zara, its growth in US market is shown by dint of and through the increasing number of stores and revenue in 2014 in comparison with 2013. As mentioned in one-year constitution (2013), Zara has the total number of stores as 548 in US in 2013, compared with 482 stores in 2012 (Figure 5, p. 8). Among these stores, Zara has also developed both kinds of stores such as under company management and franchise. Regarding to revenue, there was the increase to $2.3 trillion in 2013 from $2.1 billion in 2012 (Figure 6, p. 9) Figure 5The number of stores of ZaraSource Annual report (2013, p. 181)Figure 6 The revenue of ZaraSource Annual report (2013, p. 184)Regarding to H&M, after its launching in US in 2000, it has owned 305 stores with the increasing number of 36 stores in 2013 (Annual report, 2013). even so though launched after Zara, H&M has built its brand physique in US customers minds and has just launched its online we bsite which is considered the new(a) way to access more customers with the aim of increasing revenue and market share in 2013 (Dishman, 2013) Mentioning about Uniqlo, even though its late launching in US market in 2006 with the first flagship store in Soho, New York city (Fast Retailing, 2014), it has developed fast with the increasing number of big stores in prime location, for example, opening in Fifth bridle-path in 2011.At the end of December, 2013, Uniqlo has owned 17 stores in US and aims to open up to 100 stores in this country and become the Top Casual wear brand in US (Annual report, 2013) Moreover, under strong competition, Uniqlo has leveraged US market through launching online website in 2012 which is earlier than that of H&M CorporateAssociates British Foods (ABF) is considered strong and leading position in many business sectors such as Sugar, Agriculture, Retail, Grocery and Ingredients (ABF Website, 2014). The representative of ABF in retail industry is Primark, wh ich is the fast fashion brand launched in Ireland in 1969 under the first name of Pennys (Primark introduction, 2014).Until now, Primark is considered the typical feature of trendy fashion store in Europe because Primark has sold trendy clothing with the low price. In aspect of diffusion system, Primark has over 270 stores in 8 European countries and plans to open the first retail store in US at the end of 2015 (Julia, 2014). As shared by ABF, which is the mention company of Primark, the plan to expand into US is to build the big store with the area of 70,000 meters in Boston and will expand the galactic number of stores until 2016. 2.3. S.O.W.T analysisS StrengthsPrimark is the famous brand of Associates British Food with the large dispersal channel in Europe as 270 stores. Hence, Primark has much broad experience in opening and operating stores in foreign countries Primark is one of Top 10 European fashion brands which are available in the list of 100 Global Fashion Brands i n the world Products High quality with reasonable price and modern design are attractive to customers, especially young people under 35 years old Be successful with cost leadership strategy to achieve high market shareW WeaknessesAdvertising Just focusing parole Of Mouth marketing as the tool to reduce operational cost (Primark annual report, 2011) distribution channels Even though having the large number of stores, Primark has not leveraged the benefits of online shoppingO OpportunitiesUS is considered the fashion destination in the world with high demand of local customers and foreign tourists Opportunities to use other kinds of marketing to improve sales and develop its brand imageS-O Strategies religious offering US customers products with high quality and reasonable price while modify modern design.Leveraging diversified tools of marketing to access customersW-O StrategiesDiversifying kinds of marketing first step the chain of stores in prime location as the way to build b rand image in customers mindsT ThreatsUS fashion industry has high level of competition, especially with the availability of famous fast fashion brands such as H&M, Zara and Uniqlo which also have long term development strategies in US Difficulties on understanding customers demand and needs because their behavior have been ever-changing under many effectsS-T StrategiesCompeting rivals with cost leadership strategyBasing on experience in operating in different culture, Primark should try to understand US customers and their changing behaviorW-O StrategiesLeveraging benefits from different kinds of marketingAccess different customers, both local and foreign tourists through distribution channels and marketing execute2.4. strategic Implications and Conclusion (more critical what implication means?) Situation analysis becomes the important part of strategic planning for companies when they have planned to develop to new markets, especially markets over borders. This analysis includes both external and internal analysis so that companies can understand their resources and power as well as market characteristics. In this section, PESTLE and 3Cs model are used for analyzing external environment from perspectives of both macro and micro analysis. Moreover, GE model is also used to understand industry attractiveness and Business Unit. later these kinds of analysis, the report also mentions Strengths, Weaknesses, Opportunities and Threats through SWOT analysis. There are some strategic findings from this analysis such as products with high quality and reasonable prices, the leverage of marketing tools and accessing customers through the large distribution channels. go B Competitive Environment through Porters Five Forces As stated by Liang et al (2007), the importance of competitive force has been shown through its influences into organizational contest in the specific market and industry. Moreover, these competitive forces can come from both internal and external environment. Basing on the understandings of competitive forces, companies have defined their strategies and organizational activities (Low and Cheng, 2006). Porters Five Forces which is proposed by Porter (1985) become the important tools to find out five competitive forces for each company. The purpose of using this analysis is to integrate the understandings on industry environment and inside power of companies. Hence, with the aim of understanding customers and competitors in US fashion industry and competitive advantages of Primark, this section focuses on using this model Porters Five Forces including the threats of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threats of substitute products and rivals among existing firms.Firstly, Primark has not faced with high level from the threats of new entrants. The fashion industry has achieve high growth rate, as stated by Keller et al (2014) that the growth rate will be two digit number. Moreov er, there are some trends such as the increasing demand of travelling and shopping as well as theevolution of buying power of Asia or developing countries. These features become the attractiveness to many companies who wish to put their feet into fashion industry. However, being the big fashion brand in European and in the list of global fashion brands in 2014, it is not easy for new players to compete. Secondly, the bargaining power of suppliers is moderate. The reason is that with high position in fashion industry, there are many suppliers who want to cooperate with Primark.Moreover, with the operation in many countries, Primark has many opportunities to access satisfactory suppliers. Thirdly, the bargaining power of consumers is high. Because US fashion retail industry is real competitive with the launch of many fashion brands, especially fast fashion brands such as Zara, H&M, etc, they have offered the diversified products and services to US consumers. It means that customers have more and more choices of fast fashion brands. Hence, it is not easy for Primark to attract them because their power is very high.Fourthly, basing on high competition, there are many threats of substitute products from competition brands. And lastly, mentioning about rivals in US fashion industry, Primark has met many difficulties to compete them, especially with brands which have the large distribution channels and online shopping website such as Zara, Uniqlo and H&M. In conclusion, through Porters Five Forces, even though Primark has strengths on high bargaining power of suppliers and have a few threats of new entrants, it have some difficulties caused by the strong competition and customers power.Part C marketing Strategies of Primark in US marketBasing on strategic findings in Part 4, this section will use 4Ps model as marketing strategies of Primark in US market.1. Product strategiesAccording to Czinkota and Ronkainen (2005), as the necessary step of internalization, com panies have considered between standardization and adaption in their product strategies. Companies have four choices for this strategy. It is called as standardization which has no change in comparison with domestic products. Secondly, they can make some changes or adjustments for existing products which have been sold in domestic market in order to match with foreign customers, for example, size or colors. Thirdly, they can bring to pass new products for foreign customers completely. It means that they have developed to satisfy new customers through the adaption as new productdevelopment.The last choice is to develop new products which can satisfy many countries and for this strategy, companies can sell such products globally. In the situation of Primark in US, because of the change of US customers behavior, in combination with the aim of achieving lower price through high volume of production, Primark should combine both standardization and adaption strategy. It means that Primar k can adjust some existing products with suitable colors and sizes. Moreover, with the aim of understanding US customer behaviors, Primark also focuses on R&D to create new design which is satisfying customers at the high level.2. Price strategiesTo achieve the success of low price strategy, Primark has applied two strategies which are the comparable in the US. The first strategy is to find the best materials but low prices through leveraging the bargaining power of suppliers and to create new suppliers through seeking in new markets. Secondly, with the application of innovation in production and design, Primark can offer customers updated design.3. Promotion strategies (too general)Being different from other fast fashion brand such as TX Maxx which usually advertises its brand through many norms of advertising under the big campaign named Big Labels, footling Prices, Primark has neither advertise nor pay much money for celebrity endorses. Even Primark holds no end of seasonal cam paign or big furtherance for being out of stock. Promotion strategies are called marketing conversation strategies which attract customers with their attention on new products and brands. According to Wood (2008), marketing communication comprises five main tools such as advertising, promotion, PR, direct marketing and signal of Sales.The reason for integrating all tools into promotion strategies is that each tool had both advantages and disadvantages so the combination of these tools is to minimize all problems and disadvantages. As stated by Shimp (1997), Stewart (1996), Integrated merchandising Communication (IMC) is understood as the usage of all communications to deliver messages to target customers through different channels, for examples, TV advertising, PR, internet, media. For each strategy in IMC, the objectives and tactics will be mentioned and analyzed.3.1. Advertising through paid media (too general)3.1.1. ObjectivesTo build brand image (what image) in US customers i n the first period of launching (how long) To reach 50,000 customers during one year after launching and such customers have visited Primark stores or made the online purchasing with the quantify of 4 each week.3.1.2. TacticsCreating the advertisements in TV CabsAmerican Fashion TV ChannelFashion OneLive FashionFashion TV Latin America3.2. Using social media such as Facebook and YoutubeTop 3 social media brands among many in the globe are Facebook, Youtube and Twitter which are be basing on the sales. Among these three social media, Facebook ranked at the first position, followed by Youtube and Twitter respectively (Social Media brand, 2013) Using Facebook as the tool to attract US customersCombining with some small games in Facebook, such as Lucky Drawing to receive small gifts function one or two updates for one day. Posts should focus on image and video relating to fashion shows or new collectionsTo use Youtube to drive craft to the website of PrimarkTo kick of the launching advertisement with the essence mentioned in TV commercials3.3. overt Relation3.3.1. ObjectivesTo implement PR Activities in 10 articles or magazines with the content focusing on the launching of Primark and the openingAchieving the satisfaction from 70% customers at least3.3.2. TacticsTo implement PR Activities in 10 articles or magazines3.4. Direct MarketingThe purpose of this tool of marketing is to make the sales increase immediately (Stone and Jacobs, 2008)3.4.1. ObjectivesTo reach customers with leads at the number of 24 at heart 6 months To make the catalogs and post them to Facebook and website with the purpose of increasing revenue at 2% per moths3.4.2. TacticsTo create direct mail to customers Making exciting direct mail with the picture of products and send to customers who have been surveyed as those gentle shopping and casual style.To create catalogues to increase the revenue with the use of distribution channels for such catalogs such as Website, Facebook, Direct Ma il, etc3.5. Place strategiesIn aspect of distribution, Primark should leverage both offline and online channels for distributions. In the first stage, with the aim of building customers mind on products, Primark has opened some stores in shopping mall and surgical incision stores. And then, it has developed as street shops. Moreover, to access customers who want to buy Primark, but have some barriers to access offline stores, Primark has developed its website for online shopping Primark as street shopPrimark stores in shopping malls or department storesPrimark online shopping website4. ConclusionFree publicity is considered the important tool of marketing in Primark before launching in US. However, with some threats and weaknesses from strong competition as well as late launching in US, this report suggests Marketing strategies for Primark including Product, Price, Promotion and Place. In aspect of products and price, high quality, reasonable price andexcellent design have been achi eved. Regarding to Promotion, Primark should combine some marketing tools such as TV, Social media, PR and Direct Marketing to create the efficiency. Moreover, with the plan of launching in both department stores and street as well as online shopping, Primark will access customers who are people Primark have looked for.ReferencesAbell, D.F., & Hammond, J.S. (1979). Strategic Market Planning. Englewood Cliffs, NJ Prentice Hall. Barnes, L. and Lea-Greenwood, G. 2006. Fast fashioning the supply chain shaping the research agenda. 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