International Business and Marketing Strategy: Primark in Greece

This report provides an in-depth analysis of Primark's international business and marketing strategy as it plans to penetrate the Greek market. It includes a comprehensive business market analysis, covering political, social, cultural, economic, and technological forces in Greece, along with primary ri...Read More

Running head: INTERNATIONAL BUSINESS AND MARKETING STRATEGY
INTERNATIONAL BUSINESS AND MARKETING STRATEGY
Name of the Student
Name of the University
Author Note

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
Executive Summary
The report has shed light on the international business expansion of Primark. The chosen country
for business expansion is Greece and the paper also analyse the conventional understanding of
the country in political, social, technological, cultural and economic factor and all the market-
related strategies are also formulated in that case. The customers are different in this country and
so is their taste, and that is needed to be identified by the company to make a good run in their
business. There are some potential business acceleration and organizational objectives forcing
the others in the market to impact planning prospect in different countries and thus business will
develop and make a sustainable relationship with their target customers.
In this report all the possible factor of business along with the international market strategies,
distribution policy, target market, government initiation, implementation of management mix
and marketing adaptation process all are discussed. These are all important and through these
processes complete evaluation of Greece market has been premeditated in the report.

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Table of Contents
1. Introduction..................................................................................................................................4
2. Business Market Analysis............................................................................................................4
2.1 Company Description............................................................................................................4
2.2 Country Analysis...................................................................................................................7
2.2.1 Political, Social, Cultural, Economic, and Technological forces of the country............7
2.2.2. Primary risks and mitigation process...........................................................................10
2.2.3 Positivity of investment................................................................................................11
2.2.4 Countries differences....................................................................................................11
3. Company Strategy.....................................................................................................................12
3.1 Entry mode of the company.................................................................................................12
3.2 Position of the company and distribution channel...............................................................12
3.3 Level of competition in the country.....................................................................................12
3.4 Strategy to set competitive advantages................................................................................13
3.5 Marketing mix in aspect of adaptation and standardization................................................13
Product...................................................................................................................................13
Price.......................................................................................................................................13
Place.......................................................................................................................................14
Promotion..............................................................................................................................14
4. Implementation of Strategy.......................................................................................................15

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
4.1 Management mix.................................................................................................................15
4.2 Leadership motivational system..........................................................................................15
4.3 Inter-cultural communication and problems........................................................................15
4.4 Ethics and Sustainability in business...................................................................................16
5. Conclusion.................................................................................................................................16
References......................................................................................................................................17

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Topic: International business penetration of Primark in Greece.
1. Introduction
In case of international business expansion, the marketing strategy of an organisation is
always important. It provides enough chances for the business to expand their territory and make
a mark in other countries. The substantial importance of business market and position in other
countries is important for the entering company, as they have to know the possibilities of
carrying out good business in this nation. There are so many factors involved in marketing
analysis and also in forecasting the revenue generation process that might help the company to
expand their business.
In this report, the chosen company is Primark and they want to penetrate the market in
Greece. So the matter of concern in carrying out this procedure is associated with the problem,
situations and possibilities that the company might face in this new business market
(Primark.com 2018). In case of, measure in the effectiveness of business, innovation and
technology needs to be used by the company so that product qualities are quite good and
manages to interest people into having those.
2. Business Market Analysis
2.1 Company Description
Primark is a food-to-fashion conglomerate group that was founded by Arthur Ryan in
1969 in Ireland. The main focus of the brand is to deliver chic clothing and provide respect to the
concept of value for the money. The company is the second largest clothing retailer in UK and
they are currently operating in most parts of the European market (Primark.com 2018). The

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company serves Australia, Belgium, Germany, Italy, Portugal, Netherland, UK and the US and
many more countries along with the parental country, however, they need to change their
business structure for the establishment of the market position in each nation.
The company is a part of the retail sector, along with the food sector, being operated by
AB Foods. The main function of the company is to have a good market share for their food
products. Low price value and great quality products are the main aspects of the company. In the
British retail industry, they are a major force. They are completely engaged in producing the
design or fabric work that is the main essence of their quality and product development in a
different market (Morgan, Katsikeas and Vorhies 2012). Almost 12 countries are being served by
the company by their basic products like clothing, cosmetics, and house wares. The company is
also associated with British Foods, and almost in every country they have placed their business
market and developed the nature of their business.

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
1969 2006 2008 2010 20111973
2016201520132012
Founded in
Ireland
Ethical
Trading
Initiative
and first
store in
Madrid
Entered a
partnership
with
Carbon
trust and
first store in
Netherland
An
initiative of
launching
Newlife
foundation
in the UK
Partnered
with BSR
and
initiated
some health
care
programs in
Bangladesh
The first
store in
Austria and
received
"Game
Changer"
from
Business
Community
Opened a
store in France
and the
sustainable
cotton
program was
started for
self-employed
women
The first
store in
America
and joined
Sustainable
Apparel
Coalition
Partnership
with UK
government
and opened
the first
store in
Italy
The first
store
opened in
the UK
Timeline of Primark
(Source: Primark education 2017)
In case of business expansion in an international market, the major changes that need to
be focused on the company are having an extensive culture and making products aligned with
that. More focus on the business tradition and international market environment is also related to
having a business planning. So a good international market understanding is needed from the
company.

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
2.2 Country Analysis
2.2.1 Political, Social, Cultural, Economic, and Technological forces of the country
Politics
The political situation of the country is not stable. Especially in last seven years, the
situation has changed in a radical way. From 2009, the country has carried out the five
parliamentary Electoral processes in 2009, two times in 2012 and two times in 2015 as well. The
result of this voting process has changed 7 prime ministers and 7 governments as well in which
three were not in a temporary manner (Czinkota and Ronkainen 2013). The corruptness of many
MP's and electoral financial crisis are the matter of matter for this country and the mistrust inside
the political parties has underlined the section. Growing gap in the governmental decision-
making processes also prevails in this country. As the electoral process goes on in a simultaneous
manner, reformation of government projects or structures and the initiatives are not implemented
in a proper way (Berthon et al. 2012). There are some continuous negotiations processes that are
going on between the organisation and government and these processes help take decisions in the
business. In case of retail business, retail industries remains consolidated in this economic
turmoil. The merger and acquisition processes for other companies are large and the change has
been noticed. However, the purchasing power of customers and quality product deliverance at
the low price is an issue for the company and Primark has to think over it.
Economy
More than 26% of the crude domestic product of the country has been lost in the five
years between “2008-2013” (Data.oecd.org 2018). The growth of the nation has become stagnant
as the investors are not investing a huge amount of money and neither are in-house companies

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coming up with the new projects that will help in business (Verbeke 2013). Thus a situation of
economic debt rises in that process. The declining graph of an economic condition has been
noticed as a downfall in the third quarter of 2015 and the bending percentage is 3.8%
(Data.oecd.org 2018). A downfall scenario is an issue for the nation and for that the company
had to face certain challenges also. In a perspective of declining consumer expenditure and
universal economic chaos, several aspects, which were recorded as precipitous declines in
revenues, are being removed, or companies are going into tactical mergers and acquisitions in
order to regulate and keep their places and endure the pressures of the depression.
Culture
The cultural ethics of the country is almost a modern element, and that helps in case of
the cultural aspect of the company. Most of the people in this nation believe in traditional
festivals, engagement and superstitions. These are the obstacles of their progression, and that will
restrict them from being modern. Carnival, Clear Monday, Easter, The Ohi Day, The Evil Eye,
Spitting, Black Cat - all these some irrational things that are believed by the people and that will
impact their cultural understanding also (Czinkota and Ronkainen 2013). Some of the investors
are interested in this nation as the people have changed their taste in last few years regarding
their dress sense and that will impact the companies.
Social
Greek has an active population and that is the reason in-depth margin earning is the issue
for this nation. The rate of unemployment is 18% and it is assumed to be set at 25%, as the
marking population and the improvement is the issue for the organization. Primark needs to
maintain the product and price quality for that reason.

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Demographical sections of people Percentage (%)
Pensioners 38.5
Students 28
Household occupation 18.9
People stay at Rent 0.5
Military, Children and remaining cases 13.7
Table 1: Demographical difference and their percentage
(Source: Witzig, Spencer and Galvin 2012)
Economically active sections of people are also noticed in this country. Still, in midst of
political and economic turbulence, the process that will be taken by the company needs to be a
right one so that people and their taste growth and sense of fashion will improve a lot and that
somehow benefits the business.
Technological
Some of the technical aspects are evolving in this nation. Water technology, Mining and
street, runway, different types of gears are there, and that showcases the development of
technical aspects as well. Calliper, crane, tumbler rock all these instruments are a development of
ancient Greece and their development since that very age (Arriaga et al. 2017). The significant
possibilities of this process are also concerned with the recent change, and the technical advance
met as well. In case of different considerable construction, and drainage variation system along
with the adequacy of sanitary and purgatory facilities are the concern matter of this session.

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
Though, in case of retail management, the situation of the existing companies is not suitable. In
effect of the economic crisis, retail, real estate and pharmaceutical companies are considered loss
their position and expelled their reputation from the business market.
2.2.2. Primary risks and mitigation process
There are some major risks that can impact on the retail business of Primark.
 There is an unstable situation persisted in Greece in case of a political and economic
section. Most of the companies are suffering from that situation also.
 In case of business expansion process and human right cases companies are not doing the
right choice for their product improvement; however, the major problem is created by the
political and economic scenario of the nation.
 Bribery and corruption of the government leaders are the concern issue of this matter and
that restrict the business operation as well (Lee and Kwag 2017).
 There are some organised crimes have happened in this nation and most of the times
governments are mere spectators for this case.
 There is some issue of terrorism threat as well and that attempted on the entire nation and
most of the cases business, stakeholders and their associates are at the end of a suffering
line.
 Protective security advice is not so impulsive in case of managing the business in a
suitable manner. For this reason, most of the businesses are missing their right direction
to establish in a right manner.
The nation needs to take some suitable actions to mitigate the process. The processes are
sometimes harsh as they need to take decisions against the government. The government needs

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to be more protective and want to protect their surroundings so that terrorist attack or corruption
will not attain in that case. Political and economic develop condition needs to be there and that
will highlight the progression of the organisation.
2.2.3 Positivity of investment
There are some challenges that Primark may face in Greece but as per the construction of
retail business and other small companies cannot make such business barrier for Primark. This is
the most effective situation for the company also to establish their business and hold the market
for long. German Chain of stores, Supermarkets in Greece, Hondos Centre, IANOS, Jumbo S.A.
all these companies are not so efficient to beat the market of Primark and that is the reason for
their business progression.
2.2.4 Countries differences
The first difference that comes, in this case, is the political aspect as Greece is the
member of the general assembly of UN and UK is the permanent member of Security Council of
UN. This is the significant difference that business can be based on, as the help from the political
aspects in needed for the establishment of business (Schniederjans, Cao and Schniederjans
2013). The population is another factor in which the amount of resource depends on. In that
aspect, UK has a larger population than Greece. In case of cultural perspective, as both, the
countries are in Europe, and both have a substantial coastal line thus the company can supply
their initial raw material from the use of coastal path. Both the countries have a temperate
climate. Therefore standard clothing will be same in that case. Primark needs to take care of that
and influence their market of supply line so that business presentation will be same in both the
countries.

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
3. Company Strategy
3.1 Entry mode of the company
The entry mode of the company in Greece will be the strategic acquisition as the nation
has an inorganic growth in business. The successful churning out of fashionable clothes is the
prime aspect of the business and that helps strategic analysis process and makes acquisition of a
small company in Greece and makes their market in the nation.
3.2 Position of the company and distribution channel
As the country’s population is just more than one billion, a place that can access for all
the people in different cities will be a better option for Primark. 131, 550 km2 is the approximate
area of the nation so a determination of the place and positional and distributional channel is the
most effective factor in that case (Data.oecd.org 2018). Cradle of western civilisation, is there in
the nation and that impacted over the business market also.
The company follows both the distribution channels like direct distribution and indirect
distribution in case of wholesaling, manufacturing, and distribution in retail outlets. The
distribution intensity is intensive and that will impacted over the company aligning process in
Greece (Dijkmans, Kerkhof and Beukeboom 2015).
3.3 Level of competition in the country
The competition may arise in UK in for Primark as there are companies like TK MAX,
Marks and Spenser, and George. But in case of Greece, the companies are literally few and that
helps Primark to make their strong statement over the matter (Schaupp and Bélanger 2013).
Hondos Centre, Jumbo, Kotsovolos are the top-ranked companies in Greece but as per the
reputation carries by Primark, it is important for the company to make their mark on the country.

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
3.4 Strategy to set competitive advantages
Primark needs to take legal strategies to get into the Greece market. Cost leadership
strategy can again implement the organisation as an economic condition of Greece is not so
useful and that impacted on nation’s people as well. Quality products at low costs are the prime
attraction of the company, and that will differentiate the company from others (Ukoha 2013).
Customers have to pay a premium price for original products, but the numbers of those products
are less in number. As Primark considers as a family brand, thus international marketing strategy
for the entire family is persisted by the company. Product leadership is another strategy initiated
by Primark to get a competitive advantage. The strategy determines the cost differentiation as
some of the products are less in price from other companies, through this strategy Primark can
have a competitive advantage.
3.5 Marketing mix in aspect of adaptation and standardization
Product
Product is the most important marketing aspect of business development. Primark is
known for their varying fashion trends in every alternate month. There are some products that
have actually been introduced by the company in the initial stage and then marketed differently
each time and with minor changes (Banks et al. 2016). Innovative and demographically attractive
products are the main strength for the company, but the adaptation policy in needed to be
adopted by the company so that they can manage their business in Greece.
Price
Economic pricing is the best strategy to make way for in Greece, and as the country is not
economically strong, premium pricing strategy is not applicable for the nation. Penetration

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
pricing may be implemented in the initial stage of business but low-quality products with low
price are not the right strategy to move on with in the long run (El-Badawy and Chahine 2017).
Thus, Primark needs to deliver quality products if they have to stick to economy pricing for the
Greece market. A clear adaptation policy is noticed in this case and to acquire a good share in
Greece, Primark has to take this policy.
Place
Generally, the popular areas of the city are the favourite place for companies. The outlet
of Primark is not located in high road places, rather in case of the new place; cheaper areas are
where the company wants to start their business (van Tonder and Roberts-Lombard 2013). The
main reason behind this strategy is to engage lots of local people, who do not have much amount
of money to buy expensive dresses but can be interested in the products of Primark. Adaptation
strategy is the main strategy that can help here as the business market is different in case of every
nation.
Promotion
Low cost advertising is generally used by this company and most of the promotional
aspects are used in WOMO and after that they have invested their money in TV commercial,
ambient, general websites, event programs, discount coupons and different popular programs
promotional aspects are used (Lochrie 2016). In case of Greece, website handling, radio,
television advertisement, event promotions are the matter of concern in this case. So, adaptation
is necessary in this scenario.

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
4. Implementation of Strategy
4.1 Management mix
In this case, local employees are important in the long run of the business. At the initial
stage, expats employees may be considered the right choice as the company comes from a
completely different place and tries to find the establishment. But in case of settling down the
business trans-pat strategy needs to be followed by the management. In case of better
management situation, and interaction with local customers, local employees are needed in the
management and that is the reason Primark have to recruit some local employees at the
beginning of their journey in the new market.
4.2 Leadership motivational system
Situational leadership is the right way to continue the leadership process in Greece. As
the economic and political condition is not stable, this form of leadership needs to be
implemented. In any case, the leader will have to act as per the situation and make strategic
changes whenever it is needed to save the company (Bolden 2016). Motivational factor is an
important issue for the organization, and in that case, rewards, recognition, extra monetary
benefits, work-life balance situation needs to be implemented for better motivation of employees
and through this process, they will start to work harder to retain a good position in the company.
4.3 Inter-cultural communication and problems
Inter-cultural communication is a huge aspect in business. If the language is not
understandable by the employees of the organisation, then real misdirected situation will come
up and conflict situation arises. Extra training and development process may be implemented by
the organisation for the expats to know the language and its practical implementation (Banks et

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
al. 2016). Local people will be there during the entire operation process and through the training
non-verbal expressions and body language will help in understanding the language.
4.4 Ethics and Sustainability in business
Business ethics is important for the development of business and it is quite significant
when a company enters another market. Some of the Greek etiquettes and ethics have to be
maintained by the company as well and that will have an impact on their development as well
(Morgan, Katsikeas and Vorhies 2012). This is the process where sustainable position of the
company will be crucial for their reputation, and that is a huge strategic situation of the business.
5. Conclusion
On a concluding note, the report majorly highlights the market penetration issue of an
organisation, Primark. In this case, Primark needs to penetrate the market of Greece and that is
the reason all the political, social, economic, cultural and technological aspects have been
analysed in this report. The paper also evaluates the problems faced by the company in case of
penetrating the Greece market and in that case, two major problems in the form of political and
economic instability have come up, which may affect the business as well. Proper leadership
strategy along with the strategic movement, market entry policy and operational mode are also
highlighted in this paper so that better evaluation of the penetration country and the possibilities
of Primark business expansion can be understood.

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INTERNATIONAL BUSINESS AND MARKETING STRATEGY
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