EFFECTIVELY EXPANDING TO NEW MARKETS: A STRATEGIC APPROACH FOR PRIMARK

Primark can successfully enter the Indian market by attracting potential buyers and obtaining an international marketing strategy. The company must analyze different potential factors before entering the international market to attract customers. Primark faces several threats and opportunities at the time of entering the Indian market, affecting its success. To succeed, it is essential for Primark to identify the needs and preferences of Indian customers to ensure that their values and beliefs are not affected.

Marketing Plan for
New Market
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
COMPARING THE ADAPTATION AND STANDARDISATION STRATEGIES IN
INTERNATIONAL MARKETING................................................................................................3
PRIMARK'S MAIN INTERNAL STRENGTHS AND WEAKNESSES .....................................5
PRIMARK'S MAIN EXTERNAL OPPORTUNITIES AND THREATS IN INDIA....................6
ENTRY MODE STRATEGIES......................................................................................................8
PORTER DIAMOND MODEL.......................................................................................................9
VALUE CHAIN ANALYSIS........................................................................................................11
STP MODEL ...............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
International marketing is the situation where the business directs its products and
services towards consumers in more than one country. However, businesses choose to explore
foreign markets due to varied reasons such as identifying the potential market and attracting
consumers. Also, it has been assessed that there are wide options available with companies now-
a-days to expand its operations in the international market and earn high sales and profitability.
However, it also involves risk and uncertainties regarding values and cultural belief of firm so
that it affects operations of the company m in market (Samiee, 2013). It is essential for business
to assess all required information about the market conditions and circumstances to determine
the best outcomes. The present study is based upon Primark which is a clothing retailer operating
in Austria, Belgium, France, Germany, Ireland and many more. However, firm is planning to
expand its operations in Indian market through seeing the potential of people living in India and
thus targeting such areas to achieve desired results. Through analysing the market of host
country i.e. India, it has been assessed that it is a potential nation with regard to sell the products
to consumers and to help in enhancing the sales and profitability. Main reason behind selecting
the host country to introduce the product helps in attracting potential consumers so that set
targets can be attained.
COMPARING THE ADAPTATION AND STANDARDISATION
STRATEGIES IN INTERNATIONAL MARKETING
It can be stated that through considering the market and business perspective, Primark has
been selected which offers wide range of clothing products to attract consumers. Here, it is
essential to identify an appropriate method for developing their international market and
implementing the tactics within the firm. Thus, in such situation company can choose
appropriate methods such as standardisation and adaption for expanding business in international
market i.e. India.
MARKETING
STRATEGIES
STANDARDISATION ADAPTATION
Product It is a cost effective method as it However, such method directs
3

helps Primark to create and develop
strong brand image among targeted
consumers so that business goals can
be attained (Caroli, Cucculelli and
Pongelli, 2015). Company here
maintains its design and quality as
per international standards and
attract potential clients.
Primark to customize the product
in regard to not affect the values
and beliefs of Indian people as it
is expanding its operations in
Indian market (Köhler and et. al.,
2015). Therefore, it produces
products as per the market
demand and attains customer
satisfaction.
Environmental
factors
It is essential for the firm to consider
different environmental factors so
that working of business can be
carried out as per its operations in
other countries (Sandberg, 2013).
Therefore, it is not essential for the
organization to adopt different
factors to enter into Indian market.
Main aim of this strategy is to
address different environmental
factors to define international
marketing strategies.
Marketing mix Here, it addresses that working
practices as per the belief that
creating a single strategy for the
international market and regulating
the marketing mix elements similarly
as per the standard strategy helps in
proving the business to be beneficial
and consistent (Chetty, Ojala and
Leppäaho, 2015).
It can be assessed that Primark is
required to identify different
cultural and environmental
differences to identify the needs
and wants of targeted customers
(Kim, Min and Chaiy, 2015).
Success criteria Primark could achieve long term
success through ascertaining needs
and wants of customers rather than
Here, Primark management is
required to alter marketing mix
strategies which help in
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distressing for determining likes or
dislikes of people.
overcoming the local preferences
and non-identical requirements of
customers (Brush, 2015).
PRIMARK'S MAIN INTERNAL STRENGTHS AND WEAKNESSES
It can be examined that Primark is required to measure and assess level of their strengths
and weaknesses so that best competency can be attained to survive in the marketplace. Hence,
for this, Primark has to plan a proper assessment process so that best results can be attained.
STRENGTHS WEAKNESSES
 Company owns an extensive range of
apparels that involves menswear,
women’s wear and children wear.
 Primark profitability is increasing from
time to time as company is expanding
its operations in the foreign market
(Terpstra, Foley and Sarathy, 2012).
 Company has also made its ethical
trade programs that help in increasing
presence in different markets and thus
attracting consumers from all around
the globe (Johanson and Mattsson,
2015).
 It also possesses distinct product and its
remarkable upbringing which
encourages firm to attain desired goals.
 Company's main strength is its loyalty
of their customers because of its unique
products or services (Wang and Lestari,
 Because of slow economic growth of
EU it held back the overall profits for
the group (Tang, Atkinson and Zou,
2012).
 Furthermore, outsourcing of
manufacturing of apparels may lead to
inconsistencies in quality.
 Company faces tough competition from
Esprit and other similar local clothing
companies producing similar line of
product (Cavusgil and et. al., 2014).
5

2013).
 Company regularly focuses upon
finding new ways to improve their
products and services to obtain desired
results.
 Employees of Primark also give their
entire participation in the company as
they are always recognized for their
contributions within firm (Martorell,
Mulet and Otero, 2013).
Thus, through evaluating the strengths and weaknesses of the firm it can be assessed that
Primark has a high level of competency which is useful in expanding the market in India and
thus attracting local customers towards firm. However, there are various competitors of Primark
such as Zara, H&M and Marks and Spencer which produces similar line of products. Hence, it is
essential for Primark to identify taste and preferences of consumers by gaining their feedback
and opinions so that best quality products can be delivered to consumers (Gubik and Karajz,
2014). However, Primark is operating its business in wide area and thus planning to expand its
operations in India to attract potential customers towards firm.
PRIMARK'S MAIN EXTERNAL OPPORTUNITIES AND THREATS IN
INDIA
It can be assessed that to obtain effective exposure in Indian market and attain a winning
position, it is essential for Primark to achieve competitive edge over rivals. Therefore, it is
essential for the firm to identify threats and opportunities while expanding the business in India.
However, firm is planning to launch its multiple stores in India and thus it is crucial for the
organization to gain deep knowledge about the external environment of Indian region (Sikimic,
Frattini and Chiesa, 201). Doing this, it helps firm to gain deep understanding regarding the
major opportunity that helps in grabbing from the new international market along with the threats
that the firm possesses from different competitors such as Zara, H&S and M&S.
6

Primark undertakes vital and fascinating opportunities that helps firm to attain required
growth and progress. Also, company possess an opportunity in regard to increase its market
coverage so that set goals can be attained. At the time of expanding the business operations in
India, firm focuses upon high class customers and thus provide them specific designs and
fashionable clothes to attract young people. It is essential for business to tend a significant
interest towards the retail brands and thus benefit the firm in order to expand its operations in
Indian market. Apart from creating innovative clothing lines, Primark has also made it possible
to be connected to their target market through using technological advancement and thus
marketing the products through e-marketing campaign and thus attracting wide range of people
(Maekelburger, Schwens and Kabst, 2012). It is an effective market entry strategy and thus make
the business competitive and survive in the highly competitive market.
Apart from this company also faces several threats among which one is increasing
competitors and thus Primark encounters different similar products offered and thus found
similar objectives. Company also faces threats from different competitors who are offering their
products or services and thus it counteracts their moves that helps firm to spend more on
advertising and promotion and improve marketing strategies to achieve high revenues (Isa and et.
al., 2012). Thus, such factors contribute towards the greatest threats to Primark and thus it helps
to beat its core competitors in an appropriate manner.
Furthermore, in regard to all the external opportunities and threats faced by Primark in
India, it is essential for business to pay huge attention over the political, economical, social,
technological, environmental and legal factors of Indian economy. Thus, PESTEL analysis is
carried out in an effective way-
 Political factors- It can be assessed that Indian economy is blessed with democratic and
structural government policies that help in benefiting the firms in order to expand its
operations in India. Government focuses upon providing attractive schemes that helps in
opening new gates for Primark and thus it might affect the local businesses of the country
(Sleuwaegen and Onkelinx, 2014). Also, government focuses upon forecasting the
success of downfall of Primark. However, due to unfair relations with its neighbouring
7

countries and fear of terrorist attacks makes India an unsafe country from the business
and corporate perspective.
 Economic factors- The impact of different economic trends or market changes might
affect and create risk in the firm. Therefore, a strategic decision is required to make in the
presence of uncertainty. Indian economy has a stable GDP but its low quality
infrastructure constitutes to be a major threat to the Indian economy (Schuster and
Holtbrügge, 2012). Also, country possesses a huge foreign exchange reserves that
provides an impressive platform for foreign brands such as Primark in order to invest in
India and open its outlet to gain customer attraction.
 Social factors- Such analysis is focused upon the demographic changes that might affect
the influence of product in the new buying perception of the market. Also, the social
changes are a strong force for firm to conduct further research and attain trust of the
market. Primark owns the capability to work in different social changes and thus provide
best products or services to competitors (Tolstoy, 2014).
 Technological factors- It is the ability of firm to adopt innovative products or services
that help in improving the performance of firm. For instance, Primark undertakes
different technological advancements that might improve the quality of products and
attain efficiency in business (Doole, 2008).
 Environmental factors- It can be considered as part of corporate social responsibility
and thus helps firm to overcome environmental issues. Primark while operating its
business in India it is essential for them to identify different environmental issues and
thus utilize the resources optimally. Firm should protect the environment and thus avoid
exploitations to achieve desire results (Klebanoff, 2012).
 Legal factors- Here, the business is required to undertake effort of the firm to comply on
law such as in terms of tariff, trading policies, taxation and insurance policies. Therefore,
it is essential for Primark to identify the legal aspects connected to the political because
most of the laws are created by the government forces.
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ENTRY MODE STRATEGIES
Primark is required to expand its operations through adopting different entry mode
strategies also known as participation strategy so that it helps in maintaining degree of risk and
commitment. However, it involves two different modes to enter into international market i.e.
equity and non-equity based. Equity strategy can be considered as the tools such as joint ventures
and wholly owned subsidiaries while non-equity involves export and contractual agreements. All
such strategic tools help in improving the business performance (Samiee, 2013). For instance,
exporting assists in minimizing the risk and investment for infrastructural development in Indian
market. Hence, it assists in improving the present facilities of country to achieve desired results.
Furthermore, licensing also assists in curbing the defects of certain trade barriers so that it helps
in implementing the policies and improve business operations.
On the other hand, joint venture will assist in overcoming ownership restrictions and
cultural distances among two countries that helps in attaining profits for firm. It assists in making
better customer services so that sales and profitability can be attained. Additionally, direct
investment strategy helps in identifying the local market effectively and enhances the business in
international market (Caroli, Cucculelli and Pongelli, 2015). However, it involves transport cost,
requires more resources, skilled manpower and commitment and trust over firm to achieve
desired objectives.
Here, company will adopt joint venture strategy in order to enter in the market and thus,
in overcoming the restrictions and cultural distances among two countries so that it does not
affect their profits. Through joint venture, firm is able to make effective customer relationship
and thus, to identify the needs of local market so that desired goals can be attained. Hence, it is
the best method through which company can enter into the market and can enhance their sales
and profitability.
PORTER’S DIAMOND MODEL
The given model is effective as with the help of this, manager of Primark can
strategically analyse the market where it is planning for expanding its operation. In addition to
this, the given model will also assist enterprise with regard to formulate an appropriate marketing
tactic for the area where it tends to operate its operation. Herein, it is examined that Primark is
9

expanding its operation in the country like India. It is a very lucrative market and hence
possesses varied opportunities for the enterprise. Moreover, with the use of given model manager
of firm can also get the information about its competitors and thus on the basis of this firm can
formulate an appropriate tactic (Köhler and et. al., 2015). The given model is developed by
Michel Porter and it has examined six different types of factors with the help of manager of firm
like Primark can get the thorough information with regard to the India where it is expanding its
operation. The detailed explanation regarding different factors is depicted as below:
 Government influence: While entering into the Indian market, manager of Primark will
have to abide with all the Indian rules and regulations which are being formulated by the
government of respective nation. This is because; lack of compliance with the same will
lead to affect the operation of cited company in a negative manner. In this context, it has
been examined that Indian has FDI policies for all multiband retail stores. The given
policy may restrict the right of Primark (Sandberg, 2013). Demand condition: People of Indian are fond of trendy and high quality cloths. Herein,
they does not feel hesitate in spending money upon the high quality cloths. Furthermore,
in India clothing is being regarded as one of the most demanding industry. Thus, it will
provide opportunity to the Primark with regard to grab all the opportunity which is
prevailing within the enterprise. Furthermore, India is the country which possesses huge
number of young customers (Kim, Min and Chaiy, 2015). Thus, by targeting the given
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type of customers manager of cited firm can achieve success in the respective market in
an effectual way. Factor conditions: India is well developed country in terms of infrastructural facility. In
addition to this, in India manager of cited firm will not face any kind of problem with
respect to the availability of skilled labour. Herein, firm can avail skill labour at a very
economic cost. The given condition is effective as it will help in reducing the overall cost
of enterprise and thus enable the enterprise with regard to sale their cloths at the cost
effective prices (Maekelburger, Schwens and Kabst, 2012). Firm tactic and rivalries: The manager of Primark will face intense competition from the
number of rivalries in the given country. In this context, it has been examined that the
country has the blend of both domestic as well as international clothing retail firms. Thus,
firm should formulate its tactic on the basis of given aspect only.
 Related and supporting industry: It includes all those companies which will tend to fulfil
the raw material related need and demand of the enterprise. In India, presence of such
type of firms is also huge (Tang, Atkinson and Zou, 2012).
VALUE CHAIN ANALYSIS
It is the tool with the help of which thorough information regarding the internal operation
of Primark can be gained. The application with regard to the given model on cited firm is
depicted in below:
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 Primary activities: These are those activities with help of which firm can accomplish its
formulated goals and objectives. With regard to the Primark, inbound logistic will
involve all the raw material with the help of which firm make the production of cloths as
per the need and demand of its buyers (Isa and et. al., 2012). The raw material will be
sent to the operation phase and in outbound logistic phase final product will be occur.
Furthermore, for the purpose to raise the sales of the product manager of firm will have to
take help from different marketing and sales activities.
 Supporting activities: This includes firm infrastructure, HRD and procurement etc. The
infrastructure of Primark is well developed. Furthermore, the firm also possess the team
of talented and skilled employees with the help of which manager of cited firm can fulfil
the needs and demands of the Indian buyers in an effectual way. Thus, it is through this
way only manager of Primark can achieve success in the Indian market. Thereby, it can
gain the benefit in the form of increased profits and sales (Maekelburger, Schwens, and
Kabst, 2012).
STP MODEL
In regard to enter into Indian market it is essential for Primark to adopt effective
marketing objectives so that they can easily enter into the country which are as follows-
 To influence buyers by offering them attractive and fashionable products.
 To adopt effect advertisements and promotion strategy so that target audience can be
attracted.
 To enhance the sales by 25% within next 3 years.
 To identify buyers decision making process so that particular products can be delivered to
them.
STP model is being applied on Primark which it will use in the Indian market where it is
planning for expanding its operation. The application of respective model is depicted in below:
Segmentation
Segmentation is being regarded as the process of segmenting the Indian market into
different sub-segments. Here, the manager of Primark will segment the customers of Indian
12

market on the basis of demography. In this regard, it will make use of income criteria with an
aim to perform the division of Indian buyers (Schuster and Holtbrügge, 2012). The firm will
provide products to both high and middle income class customers. Here, Primark focuses on
segmenting the population upon geographic location i.e. Bombay because people living in such
city are fashion conscious and thus, get attracted towards new products.
Targeting
It is being regarded as the process of making the decision about the specific group of
buyers which firms wants to target in the specific market. Herein, in the Indian market target
market for Primark would be high income class customers. Here, with an aim to target these
buyers firm will make use of number of promotional tactic (Sleuwaegen and Onkelinx, 2014).
Thus, it is by complying with the given type of activity only large number of Indian buyers will
be attracted by the corporation in an effective manner. Furthermore, company targets
professional high class people who are able to afford the price range of company and purchase
the product.
Positioning
Positioning is the activity of establishing unique and distinctive image in the mind of the
buyers in an effectual way. Primark can position its product on the basis quality of clothes.
Furthermore, the firm will also offer huge variety of clothes to its buyers (Klebanoff, 2012).
Thus, it can position its unique image in the mind of its respective buyers. Overall, it can be said
that with the help of these given tactics, Primark can achieve success in the international market
such as India. Company aims to position two different target markets i.e. high class and middle
class customers to provide them required clothes in order to fulfil their needs.
MARKETING MIX
Marketing mix strategy helps in carrying out effective analysis with regard to develop
product adaptation, price, promotion and distribution strategies so that they can capture the
market opportunities.
 Product- Here, business introduces fashionable clothing range in India in order to
impress the customers. It is essential for Primark to offer a wide range of clothes to
customers so that they can enhance the sales and profitability of firm. Company aims to
13

render its customers the best quality services so that effective satisfaction can be attained
in order to achieve trust and confidence. Also, the products that the company deals
involves fashionable range of clothing items so that it helps in satisfying the needs of
consumers and thus attract target market i.e. India. Company also offers wide range of
varieties for their consumers in order to enhance the business and earn profits for long
run (Kim, Min and Chaiy, 2015).
 Price- Primark offers its branded clothes to higher class customers therefore; it charges
high prices and thus, gives tough competition to rivals. Company aims to focus upon high
class customers therefore, they kept the price high in order to examine and analyse the
needs of population and thus offer them best prices so that goods can be sold effectively.
Setting price range higher helps firm to attract consumers as they will not get similar
products at such prices with other competitors (Gubik and Karajz, 2014).
 Place- Company adopts flexible distribution system such as launching of its outlet in
shopping mall in Mumbai so that local consumers can be attracted towards the store and
would enhance the sales. However, it also distributes the products through online
platform with the help of different e-commerce websites which expands the operations of
firm in the market (Isa and et. al., 2012). Primark lays its main concern by adopting
appropriate and flexible distribution network so that products can reach faster to the end
users. Company also aims to provide impressive customer services through launching
outlets so that consumers can feel the fashion by their own.
 Promotion- Primark promotes its clothing range with the help of hoardings, messages,
social media and internet so that potential customers can be attracted towards firm in
order to purchase the fashionable clothes. It is essential for business to reach a large
number of audience in order to attract them by adopting sales promotional techniques.
With the help of this, it enables the concerned organisation to retain its existing
customers as well attract new customers to enhance the sales. Business focuses upon
online advertisements and promotion with the help of social networking sites and thus
reach the target market which helps in enhancing the sales (Köhler and et. al., 2015).
14

CONCLUSION
It can be examine from the study that Primark can make a successful entry into the new
market i.e. India and attracts potential buyers towards firm. Also, it is essential for firm to obtain
international marketing strategy in order to improve the business performance. Company also
analyses different potential factors before making its entry into international market so that
customers can be attracted towards the product of firm. Primark faces several threats and
opportunities at the time of entering into Indian market that affects the success of firm. For this,
it is essential for firm to identify the needs and preferences of Indian customers so that their
values and beliefs could not be affected.
15

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