Primark Sales Analysis and Marketing Strategies

The assignment focuses on analyzing the sales of Primark products and exploring various marketing strategies employed by the company. It examines the impact of e-commerce and online marketing on sales, suggests product renovation ideas based on customer preferences, and outlines the importance of promotional mixes and gap analysis for increasing revenue. The report also emphasizes forecasting sales and profitability as key factors for future growth, highlighting the potential of innovative marketing opportunities.

Identify and Evaluate
Marketing
Opportunities

Table of Contents
INTRODUCTION....................................................................................................................2
TASK 1......................................................................................................................................3
1.1 Identify two marketing opportunities in context of Primark............................................3
1.2 Identification of new market area for Primark.................................................................5
1.3 Identifying the market opportunities using suitable methodology...................................6
1.4 Estimating effect of marketing opportunities...................................................................8
1.5 Statically methods to forecast effect of sales and profitability........................................9
1.6 Marketing opportunities through entrepreneurial, innovative and creative options......11
CONLUSION..........................................................................................................................11
REFERENCES.......................................................................................................................12
Table of Figures
Figure 1 Primark Price Architecture..........................................................................................7
Figure 2: Data sourced from Associated British Foods plc......................................................9

INTRODUCTION
In today’s modern world, it is very important for a business organization to stay in the
market for gaining competitive advantage in the world. It is also very important for the
company to lead in the prevailing industry. In this report various principles of marketing have
been discussed (Wilson and Gilligan, 2012). This report has been discussed in the context of
Primark, which is one of the biggest international cloth retailer based in UK. It offers a wide
range of products like clothes, accessories, foot wear and beauty products etc. in this report
its marketing opportunities have been analysed.
TASK 1
1.1 Identify two marketing opportunities in context of Primark
Marketing opportunities are these opportunities which enable the company to
diversify its marketing area of operations. There can be two marketing opportunities from
which the company (Kotler, 2012). Marketing opportunities help the company to increase the
viability of its operations. The marketing manager of Primark wants to assess the market and
develop its marketing opportunities through which it can develop its wide range of products
and services. Marketing opportunities is a term through which company can endorse their
gods and services in market. The marketing strategies are being framed in the respect of
developing and increasing its area so that it can retain its customers. There can be two
marketing opportunities which can be adapted by Primark to gain competitive advantage in
their industry. Two marketing opportunities can be:
 Marketing through e-commerce. Marketing through physical tools.
Marketing through E-commerce: It is that technique by which company promotes its goods
and services through electronic media. It is one of the best way off promoting an opportunity
in the context of Primark. As it has been assessed that the cited company is biggest retail
company in UK, so marketing manager of Primark decides to promote the gods and services
on the following basis: Comparative marketing information: The company is leading retail store of which the
biggest rivals are Zara and H&M. the recent research shows that market share of
Primark is much higher than Zara and H&M. So, manager at Primark is desirous of
endorsing its products via social sites through face book, etc. as company has

competitive advantage over its rivals then it can uphold its products through online
media marketing techniques. Competitor’s performance: Primark has threatened the market and also other
companies. As Primark sells is clothes and other accessories 40% cheaper than H&M.
also, it has performed well in the market than other companies. So promoting its
services through online media will impact more on companies as they have a large
customer area. Customer requirements: Customer requirements are the most important factor,
fulfilment of which the company produces goods and services. Manager of Primark
consider all the requirements of its customers in relation to clothes and accessories. It
means that there are various requirements of customers which company can identify
and fulfil through social media (Babin, and Zikmund, 2015). Business through e-
commerce can also fulfil the customer’s wants as they can share them through web
media and social sites or Company’s site.
 Market share: The market shares of the company claims to be very high. In 2016,
Primark has grown its market share by 10.09% which is ahead of Marks and Spencer
and Asda. It depicts that company has diversified its area of operations in field of
clothes, accessories and confectioneries (Vasilchenko and Morrish, 2011). It sets an
example that adopting effective strategies can result in obtaining competitive
advantage in the retail industry in UK.

 Sales figures: The Company has a good total revenue of clothing in last year which is
of 3.5 billion British pounds. It shows that the company through social media has
wisely and appropriately adopted its gods and services through which they have
earned a recommendable profit. Also, it has been assessed that the sales of then
company has arisen due to interest of consumers especially of young generation as
compared to seniors because Primark offers a wide range of variety to its customers
like newly and latest trend fashion. The company has incurred a massive profit in the
year of 2016-2017. it can be more illustrated through a image.
Illustration 2: primark sales
In recent prices, the trend estimate for the said company rose 0.2% in February 2017.
also, the seasonably adjusted estimate for Primark turnover fell about 0. 1%. the original
Illustration 1: sales for Primark

estimate for chains and other larger and bigger retailers fell down about 12.9% in this
February. Figure has been illustrated as follows:
Illustration 3: Turnover of Primark.
Marketing through Physical Tools: Legal and ethical requirements: These are those requirements which are necessary for
Primark to satisfy so as to fulfil the needs and wants of society in ethical and
legitimate manner it demonstrates company has adopted physical tools of promotion
and endorsements of its products like pamphlets, brochures posters etc. Through this
kind of promotional tactics, the cited company can maintain the ethical and legal
status of their company among their customers.
Market Trends and Developments: It illustrates the concept that the company has developed
through establishing different marketing trends, has occupied a different place in the retail
industry (Chabowski, Mena and Gonzalez-Padron, 2011). The company has developed a strategy
in which they target a segment and plan strategies accordingly. Furthermore, the company
then, in order to evaluate the plan and promote its gods and services accordingly.
1.2 Identification of new market area for Primark
In order to expand the market area of company, its marketing manager should ensure
that promotions should be done in an amicable manner. The company should endorse its
products like clothes and accessories of men and women through web designing and through
social media. In context of Primark, the marketing manager of the company has decided to
expand its potential market area.

Exports markets: In order to expand its market industry, the company should enter
into exports. The marketing manager of company has decided to take benefits from the
introduced concept of Brexit. It is expecting a rapid growth from the departure of UK from
EU and expecting to introduce new strategies to increase business.
Segments of market not currently penetrated: The cited company has segmented
almost each and every segment of the market industry (Murdy and Pike, 2012). It has been
targeted men, women and children in each and every aspect. Primark has not entered in food
products. It must be noted that food and beverage industry has one of the most customers, so
if Primark enters into it, it can increase its market share and profit abilities.
Increasing market share: Market share of the company means that there are various
methods by which company can increase its market share in the industry. The marketing
manager of Primark has a duty to adopt those techniques in their market functions so that
they can enhance their market share and achieve competencies. The cited company can
increase and expand its market share by attracting its customers by discount offers and
attractive packages, so that more and more customers can be associated with them and
develop their operations.
Developing new markets: In this term the company can develop and promote its new
market by new users and uses. The marketing manager of Primark suggests that the company
can adopt developing new market operations in which it can include food industry. It can
target children as its new target segment (Cronin and et. al., 2011). It can introduce variety of
chocolates and soft drinks so that children can be attracted. In this way new market can be
developed for Primark which can develop and increase its market share.
Diversification: Diversification mas that the company introduces its area of operations
and diversify its market area by opting for new products and services. In the context of
Primark, it has been identified that Primark is the subsidiary company of ABS which is
desirous to diversify its operations in different areas like Sugar, ingredients Agricore, Retail
and grocery. It means that the company has to adopt various sources and evaluate all the
marketing contingencies which can affect the diversification.

1.3 Identifying the market opportunities using suitable methodology
There is need to identify the different market opportunities as this help to main the
competition level as well as the market. For finding the market opportunities different
analysis are carried out, such as, gap analysis, marketing mix and promotional mix.
Firstly, the Gap analysis of Primark
The Gap Current Situation Future Situation Next Proposals
Insufficient
access to the
outside UK
and Ireland
Company is having
very few stores in
the European
countries.
No huge European
customer base.
Extend the
market through
more stores and
running through
Europe.
 Extending the business
through more stores.
 Creating image that would
extend and encourage new
customer over Europe
through good image.
No
transactional
Websites
Company has the
online stores but
customer are
unable to purchase
the product online
Develop new
methods through
which customer
can purchase the
product online.
 Creating and maintain
online transactional Sites
 New strategies like free
delivery for the first
customer making online
transition which shows that
company is making profit
through online transition.
Marketing Strategies or marketing mix are carried out in order to understand the market and
the competitor (Murdy and Pike, 2012). In marketing mix product, price, promotion and
place are discussed. This marketing mix helps company to identify that their methodology
and technology would be successful and necessary.
 Product Strategy: Primark has cost based pricing strategy and they have developed stepped
pricing architecture. They offer different pricing on their product and maintain those price by
minimum cost spends on the promotional methods. They purchase large volume of stock and
simple construction help to achieve economic benefits. Pricing architecture of Primark is
shown below:

Figure 1 Primark Price Architecture
 Product Strategy: Primark’s is at number one position in the volume of clothes (WGSN,
2013). It offers fashionable clothes and other products at very low rates. Also, there are many
wide range of offers that company is providing on company’s product ‘Wide and Shallow’
Company offers the limited edition product which increase the sales of the company. The
company sells over 300million of socks and 150 million of T-shirts per year. There are wide
range of product available in the Premark store which makes customer to have choices to
purchase best of their own choice (Vasilchenko and Morrish, 2011).
 Price Strategy: As discussed above the pricing strategy of Primark offers wide range of
products. Through online medium prices would expand its business through the global
market which will increase the brand awareness and the sales of the product. There are
various discount and offers available on the Primark products. Due to logistic services large
money is saved which is used for making sales and distribution of the product. Increasing the
logistic network and adding warehouse saved lot of money and time which helps to make
expended business sales over there different countries. Also due to globalization there is
increase in the sales which is making profit for the company. Through communication, e-
commerce an, digital networking and global capital the company has saved lot of investment
and are investing those moneys to make more sales and new range of product.

 Promotional Strategies: Company is promoting their product through various forms like
TV, radio, Newspaper, Magazines, E-business and print advertising. through communication
n and social media company is making huge profits and brand advertisement.
1. Promotion through E-Commerce: through Social media and e-commerce websites
company has made crucial steps in making company brand image on the customer
eyes. The site is used to as the platform to make the dales, key new looks of products
and seasonal campaign. Social media and E-commerce are the cost effective ways of
promotion for the company. Large number of customer are getting attracted to the
company. Despite of less post on the Facebook large number of customer are
following and the feedback of the customer towards the product is the website has
acknowledged the direct selling and advertisement at the same time. The website is
kept updated and restyled. Primark also uses their websites to promote their ethical
practises.
2. Promotion through marketing of Goods: Promotion through TV, radio, Online and off
line methods has increase the product sales and the brand image of the product. It
increases both the revenue and sales of the product. It also reduces the operating cost
of the product as sales makes selling of more products at same time. This increases
the profit more than the revenue (Chabowski, Mena and Gonzalez-Padron,2011).
Company is focusing more on the online marketing and making online purchasing of
the product. The marketing of the goods through the websites and other e-commerce
sites has also increased the sales revenue.
Focus on such factors helped the company to make great brand, increase in the sales and
profit and making good revenue.
1.4 Estimating effect of marketing opportunities
Increase the Primark E-commerce activities like selling and purchasing online product
as well as expanding more stores in Europe and other countries. Increase the promotion of the
company’s ethical practices. Various offers and seasonal discounts in store services such as
personal shopping. Home delivery option, marketing penetration through new ways and
entering in the market through showcasing more brand product. All this has made the new and
better image of the Primark’s product. It also contributed in the increase in the sales and
profit gain of the company. Overall this increased the revenue of the collection. The online
and e-commerce sites have made the promotion to the company which too made customer to
look over different product and choose them from the home.

1.5 Statically methods to forecast effect of sales and profitability.
Figure 2: Data sourced from Associated British Foods plc.
It increased both the revenue and the profit of the Primark’s (Murdy and Pike, 2012). Profit
margin and return on Capital got improved. ABF claim 4% growth on 'like-for-like', which
means the rest of the revenue increase is probably due to increasing footprint. Due to UK less
market shares it appears that Primark’s progression and success is a result of its current
internationalisation strategy (Wood, Z. 2014). Primark’s increased are rationalised by
Associated British Foods stating that freight rates have been lowered and there have been
significant improvements in warehouse and distribution efficiencies. The future sales are
unpredictable can are likely to increase due online marketing and sales. The total annual
collection of Premark in the year 2013 was £4.2 billion (Associated British Foods plc, 2014)

1.6 Marketing opportunities through entrepreneurial, innovative and creative options
There are many opportunities available in expanding the business in through the new
innovation and entrepreneurial ways which can promote the business in new aspect. It will
also give lead to the company in increasing the market profit and will help to overcome his
biggest competitors like Tesco. This will give rise to the new product and services which will
bring more attention of customers towards the company (Murdy and Pike, 2012). Innovation
like developing the online store or mobile application can also increase the sales and
marketing of the company. Focusing on the new products and making new innovation with
the product that are not sold due to any purpose can be renovated or improved by adding new
themes or new style which customer prefers. The new E-commerce and online marketing is
making great effect on the customers and is making more sales, profit and revenue for the
company. These ideas have increased the sales and profit of the company.
Conclusion
Final conclusion of this report is that through the E-commerce and marketing tools
various other tools have helped in identifying the sales of the Primark Products. The
company has made great efforts and has built the brand image, increased the sales and
revenue of the company. Identifying the new areas for the promotion of Primark product
scan help to increase more product sales. For this the marketing mix, promotional mix
and gap analysis can help in increasing the revenue collection of Primark and profit. The
marketing opportunities will help the business to expand more, forecasting of sales and
profitability will make pore promotion to the company. Also, marketing opportunities
can be increased through new innovative and entrepreneur options.
REFERENCES

Books and Journal
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the opportunities they present. Journal of the Academy of Marketing Science, 39(1).
pp. 158-174.
Vasilchenko, E. and Morrish, S., 2011. The role of entrepreneurial networks in the
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communication technology irms. Journal of International Marketing, 19(4). pp. 88-
105.
Chabowski, B.R., Mena, J.A. and Gonzalez-Padron, T.L., 2011. The structure of
sustainability research in marketing, 1958–2008: a basis for future research
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Murdy, S. and Pike, S., 2012. Perceptions of visitor relationship marketing opportunities by
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