Atlantic Marketing Journal

Marketing Principles
STUDENT NAME:
COURSE NAME:

Contents
Introduction................................................................................................................................2
Macro factor analysis.................................................................................................................2
Micro factor analysis..................................................................................................................5
Target Audiences.......................................................................................................................7
Market Positioning.....................................................................................................................8
CSR and ethics...........................................................................................................................8
Recommendation......................................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................11

Introduction
Primark is an international retailer which offers the latest fashion, beauty and homeware
products to their customers at the best value on the high streets and has presence in UK
market. They mainly famous on providing high quality products to the customers at
affordable prices. Primark set up its first store in Dublin in 1969 under the name Penny’s and
currently they operate over 370 stores in 12 countries of Europe and America. Primark is
considered as one of the largest retailers in UK owing to their size and owing to the wide
variety of products and services which are offered. Primark is a subsidiary of the food
processing and retail company Associated British Foods and in 2017, they reported revenue
of £7,477 m with operating profits of £843m. Also sales and marketing in UK during 2018
for Primark was reportedly higher than previous year with 5.3% more sales and like for like
sales was 1.2% more which presented rise in share of their overall clothing market in UK
(ABF, 2019b) In this report, analysis of Primark will be presented in context of their macro
and micro factor examination, identification of their target market and strategic position in
market as well as assessment of their CSR policies. Further ethical issues that are or may be
faced are discussed followed with recommendations of their future growth prospects.
Macro factor analysis
Macro environment analysis of Primark using PESTEL framework identifies the following
issues and impact on firm that needs to be considered:

Source: Self-made (2019)
 Political: after the exit of Britain from European Union in 2016, considerable impacts
are likely on Primark due to political and economic risks and disruptions as this exit
led to political turmoil across major markets where Primark operates like Europe and
UK. These political disturbances have created uncertainty in financial market and
business environment, which have potential impact on operations, policies and
revenue generation as well as growth of Primark. Also this Brexit event has created
lot of disturbance over business operations of Primark specifically in their European
markets. Though Primark has gained from weakening of Pound valuation that
dropped against Euro and Dollar after Brexit, but as per Associated British Foods,
which is parent enterprise of Primark, it has been presented that decision to quit EU
has been impacting operations and business of firm due to rising uncertainty in
environment and capital markets (Eisenberg, 2019). There may be likely negative
transactional impact on profit generation of Primark over their sales in Europe in
coming months as their overall revenue has been affected since Brexit. Also as
Primark is private limited firm, so they have to pay corporation taxes and since exit
from EU, these taxes have changed, leading to considerable impact and in future these
changes may influence even their revenues and policies.
 Economic: after exit from EU, the value of pound has dropped to its lowest against
dollar since ever 31 years as financial uncertainty enhanced post-Brexit and these
likely affected Primark’s business. Nonetheless, this leveraged Primark due to reality
that drop in exchange rates meant translation benefits but these incidences on other
hand have likely exerted pressure on Primark’s business specifically in UK as several
investors have shown poor interest in funding and growth plans for Primark in future.
Contrastingly also commercial property rates in UK after Brexit have been extending
which has its impact on business operations and costs of Primark and rent rates have
increased by 0.25% in 2018 against that of 2017 specially for high retail outlets and
shopping centres (Eisenberg, 2019). These rent rates are in rising trend and may
increase in next few months which can have potential impact on cost and revenue of
Primark.