PESTLE Analysis of Primark

The present report is based on Primark that is an Irish fashion retailer company established in the UK. Fashion industry is related to current trends and manufactures clothes for men, women and kids. Primark is one of  that  organization  that produce clothes for all of them. Clothing is one of the most common products that fashion merchandise work with.  The present report explains key relevant changes in the UK fashion clothing market and justifies tactics and strategies that are very helpful for retailers. >> Get more Primark PESTLE Analysis >> Get more study resources on Retail Theory and Practice

RETAIL THEORY AND
PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of organization.......................................................................................................3
PESTLE Analysis of Primark.................................................................................................4
Relevant changes within micro environment.........................................................................7
Discuss the strategies and tactics that could be use the primark organizations......................8
Recommendations................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Retail sector is a part of countries economy that build up its businesses that sell product
through internet, stores and other place to public of that country. Grocery, departmental stores
and convenient store are included in retail sector. Retailing is defined as selling and buying
products and services of organizations. Their concept is based on design and manufacture goods
and offer and delivery service to its customers. This concept is base on Push and Pull marketing
model that define the promotional strategy (Venkatesan and et.al., 2015). The present report is
based on Primark that is an Irish fashion retailer company established in UK. Fashion industry is
related with the current trends and manufacture clothes for men, women and kids. Primark is one
of that organization that produce clothes for all of them. Clothing is one of the most common
product that fashion merchandise work with. The present report explains key relevant changes in
UK fashion clothing market and justify tactics and strategies that is very helpful for retailer.
Overview of organization
Primark is an Irish fashion retailer organization that offers different range of products including
children's and new born baby clothing, men's and women's wear, accessories, beauty product,
footwear ad confectionery. The whole process make it more popular in fashion market and raise
their position at higher level. Arthur Ryan is the founder of this company and work with the
number of employees that help to run businesses effectively. Firm owns 350+stores in country
and one of their biggest store is located on Manchester, Market street and England. A brand new
and large store is opened in Birmingham which is one of their main business objective. They are
rapidly expanded their business in UK and open up 119 stores. Organization already expand their
venture in many countries like, Spain, Germany, France, US, Austria, Poland etc. that increase it
profits margin more than now. They joined Ethical Trading initiative and collaborative
companies that bringing businesses together. After many years of constructing chain of around
40 stores they build in Spain and they also opened another store in Madrid. Company open their
first store in Austria than another countries successful which build their good position better than
others in marketplace. They open its first US store in Downtown crossing and Boston. Primark is
become of the most popular and successful fashion retailer in country within offering good
quality products to its customers that raise consumer base stronger than the other organizations.
3

PESTLE Analysis of Primark
Political
These are the biggest source of uncertainty for Primark fashion industry. Political factors
can be determined as those factors which are governed by the government of the region. Due to
the political instability of the government which can be occurred due to the rise in decrease in the
taxation prices of the government. Government may encourage the people for buying local
goods and services so this ultimately affects the growth and sustainability of the Primark fashion
industry. Labor regulation and trade policies also brings the political instability within the firm.
This factor also includes the political stability as fiscal policy and taxation rates. Fiscal policy
can be considered as the use of revenue collection and expenditure of the government (Leal,
Avarello and Garcia-Perez, 2019). Rise and fall in the taxes may impact on the instability of
manufacturing prices In Primark.
Economic factors
These factor have a deep impact on the fashion retailing industry as it may be affected by
the fluctuations of taxes and government rules. This leads to the changes in the prices of the
product which result in the instability of profits within organization. This leads to long term
affect on the profitability and sales of the product. Country's Gross domestic product can largely
influence the economic factors of the Primark. Economic factor includes inflation rate, exchange
rate, interest rate and disposable income available to the consumers. These factors might be
concerned with the demand and supply of the product which ultimately affects the profitability of
the Primark Fashion retailing industry.
Another factor that includes unemployment rates, raw material and Foreign exchange
rates. Unemployment rates may be effected by the government rules and regulations as
government may increase the rate of employment which directly impacts on the economic
development of the company. Supply of raw material is one of the important aspect as company
may have to bear short term loses with the delay in the supply of raw material (Lehmann, Pickel
and Arndt, 2018). Foreign exchange rates may impacts due to the currency of the country that
result in decreased profitability of the firm.
Social influence
These factors are concerned with social environment of the business in which buying
behavior of the consumer is depended on the trend of the society(Anton, 2015). Social factors
includes fluctuations in the tastes and preferences of the people which result in the increased
demand of one product and vise versa. This can also be determined by the age, demographics,

education, likes, interests and opinions of the society in buying the goods and services from a
particular company. In addition to this, more social factors are change in the lifestyle and culture
of the country which constantly swaps customer's needs. Change in the lifestyle of the people can
be termed as alteration in the fashion and marketing trend which may impacts on the
proportional activities of the business (Natalie and Wandebori, 2018). Culture of the country
may be vary according to different regions of the customer.
Technological factors
Advancement of technology plays the important role in effecting the macro environment
of Primark fashion clothing brand. These factors generally helps in exploring various ways to
interact with customers and different stakeholders of the business. In this technological world,
internet have provided various effective tools to communicate with large number of people
which allows the business in engaging and interacting with the targeted audience. Today various
social media applications and websites help Primark company in exploring the business in the
form of marketing the products and services. Also, due to the large number of users in social
media company can easily attract the customer towards this fashion brand. Digital marketing is
the best way nowadays, to explore the business and achieve more profits. Also, there are some
more technological factors that impact on the profitability and growth of the firm are change in
the digital technology that may impact on distribution of goods and services. Change in the
logistics of manufacturing the commodities may impact on the abilities of employees to perform
operations (PESTEL Analysis, 2018).
Environmental
These factors are vital to analyse PESTEl as the consumers are nowadays more aware in
using the environment friendly products. People are literally investigating the environment and
sustainability and consuming more unfriendly goods. So Primark company also have to crucially
consider the quality of raw material, packaging and quality focused operations in order to satisfy
the needs of the consumer (Leal, Avarello and Garcia-Perez, 2019). So Primark is working
towards the maximization of productivity and minimization of the footprints.
These factors also includes the climatic conditions that may changes the demands of customers.
For example, people demands for woolen outfits in winter season while summers changes their
clothing lifestyle.
Legal aspects
These can be determined as ethics and compliance which leads towards the legal
challenges of the fashion retail industry. In order to improve the image and reputation of the

brand, it is very important to consider different ethics of the fashion industry in the market. For
example, environmental laws need to compiled. However, the ethical image can be beneficial for
the Primark fashion brand.
Some more legal factors that effect the sustainability and growth of Primark organization are
international as well as trade regulations of the government. Such as Employment law, consumer
law and Health and safety. Employment law changes per day wages of labors which impacts on
the profitability of Enterprise (Natalie and Wandebori, 2018). Health and safety can be regarded
as surety to provide healthy goods and services that cannot impact on the health of the people.
APPENDIX
Macro Factors of business Factors affecting the business
Political  Instability of taxes
 Labor and wages
 Fiscal policy
Economical  Currency conversion
 Fluctuation in taxes and duty
 supply of raw material
 Foreign exchange rate
Social  Tastes and preferences of people
 Demographic circumstances
 Lifestyle of people
 Cultural influence
Technological  Change in machinery for operations
 Alterations in billing systems
 Change in goods distribution system
Environmental  Environment-friendly products
 Quality of goods
 Climatic change
Legal aspects  Environmental safety law
 Ethical image of the brand
 Employment law

 Health and safety standards
Relevant changes within micro environment
Micro environment of a company do not impacts the business in a same way as macro
environment does as size, capability, capacity etc. are totally different of all the companies. For
example competitors do not feel or mind rivalry if the compared company is small but the
competitive company is bigger than they might mind rivalry (Inman and et.al., 2015). So,
relevant changes within micro environment of primary company can be explained with the help
of following factors:
 Competitors: Competitive environment consists of certain basic things that every
organization need to take care of. None of the companies whether it is large or small
enjoys monopoly. All the companies faces and encounters competition within
competitors. Like Primark Company has competitors like Zara, H & M. Marks and
Spencer. All these competitors of Primark differentiate in their products. So in order to
strengthen themselves in front of their competitors Primark need to different their
products from their competitors so that they can attract customers and gain more market
share as compared to their customers. Competitors like Zara can increase Primark
competition as they provide same price and quality to their customers and can affect their
customer base and marketing strategies.
 Customers: Customers are one of the segment of market through which every
organization earn profit by fulfilling their demands. All the companies like Primark
should fulfil their customers demands by doing a customer satisfaction survey and
identifying their demands, needs and fulfil them. This will also help Primark company to
gain customer satisfaction in the market full of competitors (Butgereit., 2016). The main
target customer segment of Primark are individuals of age group 15 to 55 years.
 Suppliers: All the organizations such as Primark should select their suppliers according
to their need, materials they need to avail etc. Big organization's like Primark have less
threat of suppliers as they have vast number of suppliers to choose from. Primark should
choose suppliers accordingly to their needs as material, quality etc. of products affect the
image of the company. Primark has many suppliers who supplies them with all the

needful products and materials required. They can lastly affect Primark as there are many
suppliers ready to supply products to Primark.
 Marketing Intermediators: Market intermediators are the ones that comes in companies
aid like in selling, promotion, distribution etc. of their products. They help companies to
reach their customers easily. Marketing inter mediators affect the performance of the
company in many ways such as in reaching customers through distribution, marketing
channels etc. Primark has a vast network of marketing intermediators which helps them
in reaching their customers. Intermediators of Primark are the ones who distribute
Primark products to all their stores and promote them like advertisers, distributors etc.
 Workers: One of the most important part of any company is its labors and workers who
help the company in production of their products. So they should be given more
importance as they determine the quality and quantity of companies products (Primark,
2019).
Discuss the strategies and tactics that could be use the primark organizations
Marketing strategies and tactics are important factors of retail business to handle the
business complication and situation in proper manner (Bolton and Shankar, 2018). There are new
retail store open in market place. Primark is a leading organization to expand their business
across the world. There are various type of strategies applied in the retail business. Attract new customers with great windows such as blog, social media and website- This
is initial logical step when it required for manager to provide the product at low price. It
is needed for maintain the consistency in the product development (Bolton and Shankar,
2018). Primark organization is mainly focused towards the customer and give the option
to purchase the product by using website and applications. Blogs are also another option
that continuously help for people to check the details of product, price and many more. Pay more to employees- Primark is the fastest growing retail organization so that they
will pay high salary and also expect more and more. Stores that have high wages with full
timers. It has lower turn over and higher profitability in marketplace. In primark, Stores
have ability to create an exceptional experience for the customers. It is important part of
retail business provide the facility and service to their employee such as Incentives, pay
scale and other rewards. It is an essential for business development to increase the
productivity and profitability. It is the best strategies in terms of growth or development. Engage with consumer- This is also important part of retail business whereas primark
organization to connect with the people by using email and social networking etc. They

also hire an efficient employee top easily understand the need and requirement of
customers. Customer engagement is very difficult task because many peoples are not
liked to interact with the organization (Ivanov Tsipoulanidis and Schönberger, 2019).
They can choose the brand according to their choice and requirement. It is necessary for
primark firm to solve their queries related the product and their services in proper ways.
 Make Data driven decision in retail enterprises- It is a type of data driven decision
which requires for organization to maintain the relevant information related the product
and provide to the potential people those who always attracted towards the services of
primark firms (Ivanov Tsipoulanidis and Schönberger, 2019). This organization agree to
this concept and held back due to the cost involved in complexities. There are different
type of several attempts to easily capture the data in store. It depends on the specific use
cases and other data platform to analyze the utilization for business purpose.
Push and Pull marketing model
This model is a type promotional strategies that applied in the retail business to get the
product and target the market through push or pull strategy. According to push, It is an idea that
push the primark company to produce the best quality of item (Reinartz, Wieg and Imschloss
2019). This will help for people to aware about the purchasing scheme and their functionality.
Push strategy is that when the marketing channels used to push the products and services. In this
way, it also helps for sales the products in marketplace.
The primark company takes their products to the customers who are neither aware of
products. This type of push strategy helps for customer to awareness and appropriate knowledge
about the product and services. Primark firm is applied for long term to manage the internal
mechanism of business process (Simon and Fassnacht, 2019). It is beneficial for primark to
provide the right direction towards the marketing and also putting through channel partners. In
this way, Primark retail business is increasing the business all over the world.
On the other hand, Pull strategy is that when the customer get and come towards the
organization. These are the important strategies that appropriate for the business development
process. Primark retail business can be used this concept to increase the productivity and
profitability in marketplace (Reinartz, Wieg and Imschloss 2019). In this way, many customers
are attracted towards the new product. Pull strategy aim for generating demand and interest of
particular product and service of target consumers. In this way, customer to do the demand
according to their choice. That's why, it is required for primark retail business to give many

options so that audience easily choose the best one. Primark is applied the concept for short time
intervals to make policies and procedures to handle the demand of customers.
Illustration 1: Push and Pull
(Source : Push and Pull Marketing Model. 2018)

Recommendations
It is understandable that Primark is one of the known names and has a reputation to
withhold in the global marketplaces. There is a need to apply solutions for the environmental
factors such as Corporate Social Responsibility (CSR) and sustainability factor. The
management must promote environmental friendly materials to minimise pollution levels in
context to waste water management and use of solar panels. Moreover, they must take assistance
from governmental initiatives to generate awareness and support to achieve the carbon footprint
by adopting the green mobility until the year 2020. Along with, they must focus on gaining
customers' attention through using digital windows like blogging, social media etc. This would
give them competitive advantages in the global marketplaces.
It is still unanswered query on how Primark is implementing the rights and safeguarding
the code of conduct and ethical standards of their taskforce which comes under legal factors.
Henceforth, they must implement strict adherence to follow guidelines, policies and instructions
to safeguard the employees' legal rights. It is clear that this brand has become cruelty free and is
moving steadily towards achieving sustainability by using strategies like using vegan oriented
materials which are animal products free. Also, they must try to adopt digital marketing tools to
maintain their brand value. For e.g., skincare, make up and hair products have received the
Leaping Bunny status
In regard to the above, their management is promoting recycling and adopting methods to
consume the waste and unwanted products in proper manner. With Brexit, the focus is to sustain
the economic factors and calculations in terms of Gross Domestic Product and economic growth
rate to maintain their image through sustainable strategic planning.
CONCLUSION
The present report is discussed about retail sector and fashion clothing market that face
many issues. It has been concluded political, social, economical, technological and other factors
that impact organization profitability more than productivity. It includes relevant changes like
customers, suppliers etc. that make changes in UK fashion clothing sector the more. This report
discus strategies and tactics that help company for overcome with the above issues that occur in
retail sector as well as FCM. Competitors and customers both pressure company to make some
changes in their business structure and other activities. Furthermore, it discussed more
recommendation and suggestion that must adopt by organization for development and improve
business more than other organizations.

REFERENCES
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