Analyzing Primark's Business Strategy and Marketing Mix

The assignment analyzes Primark's business strategy, focusing on their market research, competitive advantages, and marketing mix. It explores how the company determines product value, expands its business in Romania, and adapts to customer demand. The report also discusses the advantages and disadvantages of standardization and adaptation, and uses Porter's five forces and Ansoff's matrix to assess the company's effectiveness. Additionally, it examines Primark's marketing mix, including product, price, promotion, and place. The document concludes that Primark has successfully implemented its business strategy, focusing on delivering significant advantages at the workplace.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analysis macro environment of international market ...........................................................1
Company situation analysis ...................................................................................................3
Identify countries with high market potential .......................................................................4
TASK 2............................................................................................................................................5
Advantage and disadvantages of standardization, adaptation and glocal approach...............5
TASK 3............................................................................................................................................7
Compare use of Porter's Generic strategies and Ansoff's growth matrix ..............................7
TASK 4............................................................................................................................................9
Marketing mix of Primark......................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is the research and direction of exchange relations. It is business procedure of
making relations with and satisfying consumers. It is about satisfying requirement and needs as
well as social wants of human being. In order to that, marketing practices tended to be looking as
creative in the ago that involving advertising, distribution as well as selling. The marketing
concept suggests that in relation to satisfy objectives of organization (Jones, Reynolds and
Landers, 2015). This study is based on Primark. It is an Irish fast fashion retailer and subsidiary
of Association of British Food Plc. Now company will expand their brand in Romania. This
report will analysis company's situation analysis, macro environment of international market and
high market potential form different countries. It will explain advantage and disadvantage of
standardization, adaption and glocal approach to international market. Furthermore, report will
compare the use of Porter's Generic Strategies and Ansoff's growth matrix as apply in chosen
organization.
Background of Primark
Primark is also known as Penneys in the Republic of Ireland is an Irish fast fashion retail
headquartered in Dublin. It is also subsidiary of Association of British Food Plc. They offer
various range of goods such as clothing, footwear, beauty product etc. Primark opened large
store in Belfast City Centre in 1971 and one in Derby, England in 1973. Company opened
current global headquarters in 2015 in recreate Dublin building, Arthur Ryan House formerly
Chapel house. The building was former bank with historical value that had been renovated early.
Primark welcomed Sephora goods which are being sold starting in 2014. Company owns over
356 stores. The biggest Penneys store is situated on Market Street, Manchester, England working
of retail space across three floors. In May 2006, the first Primark store outside Ireland and UK
opened in Madrid Spain. A chain of around 40 stores in Spain after 10 years of constructing in
October 2015 the second largest in the chain. Company joined Ethical Trading Initiatives (ETI),
collaborative company brining together businesses and Non-profits-Organization to perform on
labour rights issues in their supply chain. Members of ETI move to work towards apply of code
of conduct based on core conventions of International Labour Organization.
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TASK 1
Analysis macro environment of international market
Macro environment refers to all units that are portion of larger social club and affect
micro environment. It involves conception like economy, socio-culture, technological, political,
legal and environment. These factors are known as PESTLE. In this context, any of organization
identify these factors affected externally for expansion of business. In order to that, Primark
which is the largest fast fashion retail firm. They operate their stores in many countries such as
Spain, Germany, Poland and so on. Therefore, they expand their brand in Romania.
Political Factors:
Any of company requires considering political environment of international market when
they expand their business. It includes taxation policy, trade laws, government stability,
unemployment policy, political stability etc. In this context, Primark is the fast fashion retail
company that operates many nations, now they expand their business in Romania. Therefore,
firm needs to identify that political stability and government rules and regulations etc. that
impact on expansion of selected company (Ramanathan, Subramanian and Parrott, 2017). The
legal framework and targeting strategic of Romania that is protection of environment that
impacts on Primark in relation to business expansion. On other hand, lack of support mechanism
for investors in chosen international market.
Economic Factors:
Any organization needs considering all the variables that impact spending and purchasing
power to consumer. It includes different elements like interest, inflation, growth of power of
spending etc. In this context, the economy of selected nation has experienced growth that is 7%
in 2017 as compared to 2016 that is 4.8%. In order to that, the GDP is 189.05 Billion in 2016 and
211.88 Billion in 2017 is increased as compared to previous that impact on selected organization
in relation to business expansion. It includes living of standard improvement and social
development that lead to sustainable economic growth.
Social Factors:
Any company requires considering all factors effective customer attitude, value,
education, lifestyle and time orientation etc. that impact on business. In this context, Primark
expand their business in Romania. So that, they identify these factor in selected country that
impact on business expansion (Mackintosh, Brantley and Gonzalez, 2017). Social factor includes
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culture and demographic factors in relation to identify factors that impact on economic growth.
This factor effects on living of standard in the society. The culture of Romania is the geography
product and its distinct historical evolution. Romanians and Vlachs are mixture of descendants
of Roman colonists. A power editorial activity took place during the communist regime.
Technological Factors:
Technological environment is essential in recent day business environment. Organization
create, sell and promote product and services by produce new chances. It includes internet, social
media, electronic media, rate of technological changes etc. that effects on business. In this
context, selected company expand their business in Romania. Therefore, they identify impacts on
technology factors on selected internation market. Selected nation has occurred in fits and starts
for growth of clean technology. With technology invention in general, country has mostly
struggled.
Environment Factors:
Some of environment factors that are natural resources that impacts on procedure of
selling and merchandising goods and services. It involves competitive advantage, waste disposal,
energy consumption, pollution etc. In order to that, air and water pollution reasoned by industry
are serious problem of environment in selected nation. This impact on business expansion of
Primark. Romania suffers great outcomes of climate changes in signifier of flood and
desertification. This factors highly effects on expansion business of Primark. Government has
regulated environmental protection laws that control and reduce air, water and soil pollution that
effect on surroundings involving management of waste.
Legal Factors:
The main source of employment law are Labour Code and Social Dialogue Law in
Romania. The laws and rules includes in legal environment of state. Government has regulated
different legislation such as employment law, product safety, labour law, well-being and welfare
that limits competition and place duty on retailers. Selected nation identifies place and
contractual rights but social control by lengthy, costly and complex of judicial procedure. The
legal framework for foreign investment is encompassed with substantive body of largely law.
Therefore, Primark faces these laws and regulations while expand their business in Romania.
These factors effects on international marketing of retail industry in selected nation. In order to
that, company make sure that determine all factors for business expansion in Romania.
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Company situation analysis
Primark is the Irish Fast fashion retailer headquartered in Dublin and it is subsidiary of
Association of British Food Plc. Company has opened big store in Belfast City Centre in 1971
and one in Derby, England in 1973. Organization sells different range of goods involve clothing
to men's, women's, children's, beauty product, footwear, candy store etc. across the worldwide.
Primark beginning vegetarian snacks as of 2018. Firm sells wear at the low price end of market
below average prices. Organization impart to contemporary fast fashion trends along with
retailers like Zara and H&M. In order to that, SWOT analysis of firm used as situational analysis
for expansion of business.
Strengths:
According to view of Jones, Reynolds and Landers (2015).The increasing sales of
company year on year and strong presences across Europe that is strengths of Primark. The firm
has over 161 stores. It has good trading initiatives, because of, they focus on rights of employee's
and good production as well as labour rights. Firm has offer good quality product that helps in
attraction of consumers. With the help of it, company easily expand their business in Romania.
Weakness:
As per the view of Lodish, Morgan and Babin, (2015).Primark has held overall profits of
group due to slow economic growth of EU that is weakness of firm. It can lead to uniformity in
quality that outsourcing of manufacturing of apparels. In the previous, it has been declared that
firm utilised child labour for producing their products. Organization do not give any kind of
advertisement, so that competitors of firm has taken advantage. It is big weakness of company in
terms of competition.
Opportunities:
Primark continue to focus on opining of new stores in many cities such as Lisbon, Berlin
etc. so that, it is opportunity for company. Sportswear is one of the fastest growing segment that
is chance of firm. Company is created opportunity by using advertisement on print as well as
electronic media as compared to their challengers (Baek and Wang, 2018). Organization needs to
focus on build market share of men's wear that is great opportunity for business expansion.
Threats:
The threat of Primark is that supply chain is undependable to natural disaster and other
incidents. There is no presence in emerging market that also threat of business. Firm is faced
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high competition which is offer cheap product. Due to poor management quality and low
standards of technology position that effects on business expansion of Primark.
Identify countries with high market potential
Primark is the fast fashion retailer in UK. Now, they expand their business in Romania.
So that, they identify factor for high market potential. By determine market share, profits,
number of store of company after that they expand their business in Romania. Company offer
different range of products such as clothings of men's, women's, children, accessories, beauty
products etc. The stores of firms has located in 368 locations across the worldwide. Primark has
served product and services in many countries such as Austria, Spain, Ireland, UK, US, Germany
and so on. There are 70000 employees working in the organization. The total revenue of
Primark £5949 Million in 2016.
In addition to that, the largest Store of Primark is situated on Market Street, Manchester,
England of retail space across three floors. The Primark which is subsidiary of Association
British Food. The firm had the largest number of retail store with 182 stores in UK (Number of
stores of Associated British Foods' retail division worldwide from 2014 and 2017, by country.
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Illustration 1: Number of Store of Association British Food
Source: (Number of Store of Association British Food, 2018)

2018). It has followed by Spain with 44 stores and 37 stores in Republic Ireland. It first store
outside of Europe outside of Europe in 2015. Company can expand and open stores in Austria
and EU through innovation and technology, effective financial resources, skilled employees for
fulfilling the needs and requirements of customers. If the company has effective market share, so
that, they can expand their business in another countries.
TASK 2
Advantage and disadvantages of standardization, adaptation and glocal approach
Standardization:
It is the procedure of applying and evolving technical standards based on the agreement
of various parties that involves companies, users, standards and authorities. It can be assist to
increase compatibility, ability, safety, repeatability and quality. Standardisation can also assist
commodity of formerly custom procedure (Pinto, Dell’Era and Bellini, 2017). The thought of
this concept is close to solution for coordination difficult, it is condition in which all parties can
realize mutual gains but only by creating mutually consistent decisions.
Advantages:
 It is simplified making decision that aids in improving judgement of expansion by
Primark in Romania.
 This process makes mass production and raised efficiency of both machines and people
in Primark.
 Standardisation decrease time of manufactured as well as requirements for workforce.
With the help of it, Primark expand in Romania.
Disadvantages:
 Standardisation is suffered small scale industry and loss of motivation in Primark.
 This process is losses morale of employees in Primark.
Adaptation:
It is dynamic evolution procedure that fits organisms to their environment that increasing
fitness of biological process. It is expressed by population during that procedure. Adaptation is
the procedure instead of physical part of body (Mackintosh, Brantleyand and Gonzalez, 2017). It
can illustrate the distinction such parasite have very simple bodily structure.
Advantages:
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 It increasing profitability and generating revenue of Primark that help in expansion in
Romania.
 With the help of it, Primark create to chance for interact with customer.
Disadvantages:
 Market uncertainty due to failing of expansion which directly effects operation of
Primark.
 Increased financial resources which can impact Primark in an adverse.
Glocal approach:
It is also known as glocalisation. It is fast taking over digital marketing landscape as way
of combining strengths of global brands, product and services as well as approach for local
marketplace. Glocalization is collection of words globalization and localization that utilized to
describe goods and services which is evolved and distribution internationally (Mackintosh,
Brantley and Gonzalez, 2017). But it is also focused to meet customer in local marketplace. It is
process which can be expensive and resources intensive. Primark brand needs international
standards as well as adapt and adjust to local culture requirements.
In addition to that, glocal approach allow for larger access to culturally vary target
market. It includes cultural friendly and advertisement to promote acceptance of international
goods and between local people. It is important aspects of localising Primark recognize which is
ensured local staff connected with whole vision of brand.
TASK 3
Compare use of Porter's Generic strategies and Ansoff's growth matrix
Porter's five forces model
Primark specialise their products and services in clothes and linen. Following are
different elements of porter five forces that create impact on competitive advantages in the
company. Threat of new substitute (High): Substitute of products generally refers from another
industries that provide by competitors. Primark facing high threat of substitute products
because in UK several businesses deals in this goods so that customers have several
choices. Consequently, there are several businesses provide substitute products at less
price which consider alternative choice for the enterprise (Jones, Reynolds and Landers,
2015). In Romania, risk of threat is high so that the chosen business need to focus on
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some innovations and creativity. Therefore, it helps to develop more significant
advantages to produce high results. This is because, customers have alternative choice
from several alternative. Bargaining power of customers (High): In Primark, bargaining power of customers is
high because there is large customer base exists who consider products and services.
Buyers are sensitive for price and quality so that they are looking for several shops.
Furthermore, it can be contribute less profitability in the chosen business and despite with
high cost of production which increase prices that mean to lose customers (Ramanathan,
Subramanian and Parrott, 2017). Being largest retailer store in Romania, the business
need to deal with many players in particular industry. This is because, bargaining power
is relatively high. In addition to this, buyers are more prices sensitive so that it is essential
to communicate and visit all shops to seeking with the lowest price before making any
purchase decision. Bargaining power of suppliers (Moderate): In the Romania, there are several suppliers
exists those provides raw material to the chosen organisation. In this consideration, it can
be stated that wider supplier base helps to gain material from domestic and foreign as
well. Hence, there is no requirement of single supplier which remains high compared as
foreign suppliers (Jones, Reynolds and Landers, 2015). Consequently, its impact is
moderate on functioning of the business. In the Romania, there are several suppliers so
that Primark has several options to purchase raw material. Therefore, it can be stated that
reduce bargaining power of suppliers is required to communicate several programs at
workplace. Threat of new entrants (High): In the Romania market, there is high threat of new
entrants because there are several businesses can easily enter with several facilities with
lenient policies that are made by Romania government. It also encourages free and exit
entry where many people must focus on many players in the country (Pinto, Dell’Era and
Bellini, 2017). Romania also encourage different firms with free entry and exit so that
ease of entry also facilitate by lenient policies by government that assists to communicate
more incentives for the new firms to enter in industry.
 Competitive rivalry (High): In Romania, there are several retailers exists those are
competitors of Primark. Hence, the chosen company is operating functions in competitive
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environment. In addition to this, demand of clothing for young age group is very high so
that it create major threat of driving within the market (Baek and Wang, 2018). For
example, Carrefour, Metro cash and carry, etc. High competition intensity which create
barrier to entry or exit in tailoring. Foreign retailers are also establishes to face major
challenges at workplace. In Romania, there are several large companies exists that make
competitive business to develop creative results. Major foreign businesses also consider
their functions and operations as Primark so that still competition led with the enterprise.
As a result, it can be stated that companies facing major challenges in market share.
Ansoff's matrix
As compare to porter five forces model, it can be stated that Primark need to focus on
Ansoff matrix so that they are able to communicate several benefits in different areas of the
world. In this consideration, several tools and techniques included such as market penetration,
diversification, product development and market development. It assists to create competitive
advantages that can be communicate to deal with effective results. Primark deals with different
kinds of products and services that helps to attract different customers from different areas of the
world. Following are different elements consider in Ansoff matrix of the enterprise: Market penetration: Market penetration is one of the important aspect in which Primark
existing products to current customers with using existing sales channels. Therefore,
people are motivated with dynamics of the market which assists to focus on different
aspects of profitability and effectiveness (Mackintosh, Brantley and Gonzalez, 2017). For
example, different kinds of offers created by the chosen business that assists to
communicate effective results at workplace. It assists to gather tools and techniques to
focus on more selling. Market development: According to this element, market development of Primark helps to
sell existing goods and services into brands of new markets. Products also need to adapt
with demand and needs of the new market sector to target together with consider different
changes with using marketing communication material (Ramanathan, Subramanian and
Parrott, 2017). For instance, development of new line of products that assists to
communicate several benefits at workplace. Product development: Product development strategy in the chosen business also
successfully develop and involve for developing existing customer base to offer entirely
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new products. This approach has slightly more risks as consumer may rejects ideas.
Hence, in all the sectors, it is best to conduct market research before launching products
(Lodish, Morgan and Babin, 2015). For example, adding new features in the products and
services.
 Diversification: Diversification element of the present model consider area in which
most of the business away from some businesses. Therefore, Primark using reinvestment
by selling completing new products to brands and new customer groups. High risk
strategy also requires considering extensive planning and control (Jones, Reynolds and
Landers, 2015). For instance, dealing with new product line of the market so that
business can easily diversify in appropriate manner.
TASK 4
Marketing mix of Primark
Primark concentrate on customer demand and requirements to focus on effective
functioning and increase positive results at workplace. In this regard, following elements in
marketing mix included to focus on desired level of results:
 Product: Primark offering and focusing on each customer segment and their
requirements. In this regard, they offer products to target women, children, men, kids, etc.
Furthermore, there are different kinds of home décor products also provided by the
enterprise to focus on gaining desired level of results. Furthermore, the chosen company
focusing on the culture of customer in which they provide products and services to open
new store and regulate several rules and rituals (Jones, Reynolds and Landers, 2015). The
chosen company provides different kinds of products such as clothing, cosmetic,
housewares, etc. All these kinds of aspects assists to focus on effectiveness that can be
successfully develop to attain desired level of efficiency. Along with this, the company
also deals with accessories, footwear, beauty products and confectionery. Hence, they are
selling different kinds of products below average prices. This is because, it is one of the
important aspect to develop effective results with new products and services. It also
promotes significant advantages at workplace of the chosen enterprise. Furthermore,
there are several retailers exists with whom the chosen company regulate their functions
and operations with contribute fast fashion trends. Trendy clothes at low prices also
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deliver in the market so that effectiveness can be increases that assists to sell new items in
the market (Ramanathan, Subramanian and Parrott, 2017).
 Price: Primark offer different range of product such as clothing of men's, women's,
children's, beauty product and accessories across the worldwide. They offer products on
affordable prices to attraction of customers. With the help of it, Primark expand their
business in Romania. This assists in increasing market share and sales of business. They
are adopted premium price policy for offering product and services (Mackintosh,
Brantley and Gonzalez, 2017). Price decision is the most essential strategy for customer
satisfaction and increasing selling of products in the market places. It is necessary to
make decision about prices by determine all costs such as production cost, labour,
machines and other expenditure by the company. With the help of it, Primark easily offer
product on affordable prices according customer demand. Firm also make decision to
determine competitors pricing in marketplace. Through it, Primark easily expand their
business in Romania. Firm needs to determine that value of product is high, so that they
decrease this price for increasing customer satisfaction.
CONCLUSION
From the present report, it can be concluded that Primark continuously develop their
functions and operations to focus on desired level of goals. In this regard, it can be stated that
macro and micro environmental analysis has been explained to gain potential advantages for
company's products and services. Furthermore, it summarised about advantages and
disadvantages of standardisation and adaption to clearly analysis the selected business strategy.
Moreover, with the help of porter five forces and Ansoff matrix effectiveness can be develop in
successful manner to cope up with innovative and productive results at workplace. Hence, the
selected business unit can easily assess competitive advantages and results to cope up with
international market. At last, marketing mix included in which 4 ps analysis shows that can be
successfully implemented in selected market place. As a result, it assists to focus on product and
price which provides formulation of viable marketing strategy. The chosen company deals in
different kinds of products and services to deliver significant advantages at workplace.
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REFERENCES
Books and Journals
Baek, J.Y. and Wang, S., 2018. The Localization Strategies and Success of Costco: Focusing on
a Japanese Mature Retail Market. The Journal of Industrial Distribution & Business.
9(2). pp.7-16.
Jones, M.A., Reynolds, K.E. and Landers, V.M., 2015. Exploring consumers’ attitude towards
relationship marketing. Journal of Services Marketing. 29(3). pp.188-199.
Lodish, L.M., Morgan, H.L. and Babin, J., 2015. Marketing that works: how entrepreneurial
marketing can add sustainable value to any sized company. Pearson Education.
Mackintosh, P., Brantley, L. and Gonzalez, G.O., 2017. Maximizing Clicks in Email Marketing
Campaigns for a Retail Company. International Journal of Applied Industrial
Engineering (IJAIE). 4(2). pp.33-46.
Pinto, G.L., Dell’Era, C. and Bellini, E., 2017. Innovation strategies in retail services: solutions,
experiences and meanings. European Journal of Innovation Management. 20(2). pp.190-
209.
Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network
operations and marketing to enhance customer satisfaction. International Journal of
Operations & Production Management. 37(1). pp.105-123.
Online
Number of stores of Associated British Foods' retail division worldwide from 2014 and 2017, by
country. 2018. [ONLINE]. Available through. :
<https://www.statista.com/statistics/486148/primark-store-numbers-by-country/>.