Primark Case Study
1: Exclusive Summary
2: Brand Introduction
3: Task 1: Target Market
4: Task 2: Environmental Analysis
5: Task 3: Growth Strategies With Respect To
6: Task 5: Poster Design For Advertising Campaign
7: Task 7: Ethics
This marketing report will provide an integrated marketing campaign for Primark to expand its businesses to Boston, the USA, and Milan, Italy. It will use relevant marketing theories and strategies, which may help Primark to reposition itself to be more competitive and successfully access the new markets.
Primark, which was founded in Ireland in June 1969, is a subsidiary of Associated British Foods. It has nearly 300 stores …show more content…
However, because of the increasing Value Added Tax in the UK (VAT rate rose from 17.5% to 20% in 2011), it is more difficult for Primark to keep its low price for customers (BBC News, 2011). In addition, Primark is one of Cambodia's biggest buyers. Because of worker demonstrations in Cambodia, Primark had to raise the minimum wage for clothes made, which will also increase its cost of production (Brignall, 2014). Moreover, In America (Primark's target market), labors also demanded that their minimum wage should be raised (McCarthy, 2016), which may increase Primark's labor costs.
Economic factors: Because of the Eurozone crisis , people in Europe have less disposable money to spend on shopping. However, Primark can attract these customers who move from the up-market to the down-market in terms of its low price (Guardian, 2016). Moreover, recently, youth unemployment rate in most of the Europe countries are still high, especially in Spain, Primark's large market in Europe (The figure of Youth unemployment rate in EU is showed in Appendix 4), which may reduce Primark's revenue from 20 to 30 year olds (McCarthy, 2015).
Social factors: People's lifestyle is changing. In recent years, more and more people prefer to shop online. Mintel (2015) demonstrated that approximately 70% of Americans would shop online regularly, especially in the 20-34 age group. In addition, recently,
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According to MarketLine, the world online retail market expanded by almost 18% in 2010 and is predicted to reach close to $435 billion in sales. The market is expected to reach a 90% growth by 2015 and exceed $827 billion in sales. Listed in an article “Ecommerce Growth Statistics”, the average amount spent by each consumer is expected to rise from $1,207 per year to $1,738 per person by 2016. That is a significant increase. That shows that people prefer to shop online than going to the actual store in today’s society. Shoppers will spend on an average of $327 billion online shopping in 2016, which is about 45% from $226 billion in 2012. It is very evident that consumers will drive ecommerce into the future; especially e-retail. In just a few years, purchases online will be more profitable than ever, with others products and services available to purchase such as mobile and social allowing consumers to shop to their convenience. For retailers and
Primark, an Irish clothing retailer company was set up and headquartered in Dublin in 1969. Nowadays, there are over 250 stores across the United Kingdom, Ireland, Europe and the United States. Moreover, Primark operates with about 700 suppliers in China, India, Bangladesh, Turkey and Eastern Europe. Primark takes corporate social responsibility for the shareholders, owners, customers, suppliers as well as employees. Corporate social responsibility is that a company not only creates profits for the shareholders, but also undertakes the social responsibility for customers, employees and environment, including complying with business ethics, rights of workers and the rules of environmental protection. In order to develop continuously, corporate social responsibility plays an significant role in a company, which drives stakeholders have reliance on the company. This essay focuses on the ways in which Primark taking its duty to society and the ways in which the company should have done better.
Secondly we found out Primark makes a good choice about location. Almost each branch store locates in the high street. From the diagram which we have researched, it could be concluded that location is also one of the most important factors which motivate customers to purchase and make Primark successful. percent of customers would like to consider the location of garment stores when they go shopping. Convenience and easiness are the expectations during each time customer’s purchase. Few customers are willing to spend extra time going to a remote place merely for the purpose of buying clothes. Furthermore, Primark is sensible; it hardly locate the
From 2014 Annual Report of Primark, it reveals that the store still lags behind in term of investment in staff facilities and its investment in store themselves. Beginning in the year 2013, the company was able to invest in ‘constructing an encouraging and motivating working environment’, and the reports highlighted major improvement in reductions in paid absence and staff feedback (www.business2000, 2016). The major role played by Primark’s HR team is as follows:
No, I think that Primark made a mistake for sacking their suppliers where they could have improved working conditions in India. They are a multi-million company and are known worldwide they had the money to improve working conditions for their workers instead of sacking 3 suppliers, which means that people who were not at any fault had lost their job and couldn’t provide for their families. In my opinion I think Primark could have easily overcome this situation which occurred in June 2008 by improving working conditions, they have gone against the rights of some people as research showed hundreds of people lost their jobs who had a right to be working there and were at no
Years ago, most people thought that it would remain impossible to click a button and place an order to buy something. Today about “195 million online American consumers” order take-out, book hotels, flights or even grocery shop (Weinstein 1). Many people can pay bills and transfer money to other people through a click of a button on their smartphone. 100,000 online consumers took a survey to reveal that most people preferred online shopping than physical shopping. 73% said it “[was] time saving” and also 58% of those people said they “liked it more because there were no crowds or lines.”(Weinstein 2). Consumers care more about the time used up than going to the store to look and try out the product in person. The internet offers a huge amount of choice and diversity in how people want to do things. But with the majority favoring online shopping, it just shows the laziness of our
According to Primark, the cheaper the clothes, the more shoppers will buy. This is reflected in its sales. Primark is able to sell on low prices because Primark enjoys economies of
I am looking at Topshop for this report. Topshop is a very large British fashion store for young women selling fashion clothes, shoes and accessories. There are Topshop stores throughout the UK. The flagship store in London Oxford Street is the biggest fashion store in Europe. Topshop is part of the Arcadia group which owns other fashion stores such as Miss Selfridge and Warehouse. Topshop mainly sells its own brand products but in larger stores it has concessions of other more expensive similar clothes. As well as selling Topshop clothes in Topshop store, they have concessions in large department stores such as Selfridges. They also have a website where you can buy a lot of the Topshop range including shoes and clothes for
Unlike other fashion retailers, Primark do not use marketing strategies to attract interest and customers as the brand try to keep overheads to a minimum in order to sustain the best prices for the consumer. Primark market its products using its store window displays, which are changed twice a week to showcase the newness in product currently in store. There are also a few weekly magazines that showcase Primark womenswear’s latest products, but this is done independently and Primark play no part in marketing these products themselves.
The Internet has changed the way we do virtually everything, including the way we shop. However, shopping is not the only thing that has changed. In the last decade we have changed the way, we apply for loans, study, and even plan a vacation. Doing any of these things would have been impossible a few decades ago. At present, online banking, paying bills, ordering new services, and shopping online have become part of our daily lives. Traditional brick-and-mortar stores have been around much longer than online stores, but we cannot deny that online shopping is giving the traditional stores competition. Many consumers still choose to shop at regular brick-and-mortar stores because they like to see and
This marketing plan examines the case of TOPSHOP as a UK’s fast-fashion retailer. The following marketing plan is structured according the SOSTAC framework. Topshop is operating under the parental Arcadia Group. Over the latest years, Topshop has been one of the most popular UK’s fast-fashion retailers. The company is a multinational Omni-channel fashion retailer. Topshop is well-known for its high-quality products in medium low prices. The company’s portfolio owns a wide range of products and services. According to the Situational Analysis, the UK’s macro environment has changed over the latest years. The UK’s fast-fashion industry is becoming more and more cluttered with competitors from both UK
In United Kindom the economical contribution of the Primark is very important, and the primark followed business rules and regulation.
Though Primark has major strengths that have seen it grow over the years, it also has its share of weaknesses. One of the major challenges that Primark has faced in the past few years is the increased rivalry from other companies such as Esprit that have produced clothes lines that are a close replication of its products, hence impacting on its profits in a negative way. This made Primark to react in a rather spiteful way because it knew exactly how this would impact on its