Strategic marketing

This report discusses the marketing strategies of Primark in Romania, including a PESTLE analysis, market entry modes, market segmentation, and more. The report suggests that Primark can use a strategic alliance method to enter the Romanian market and target the age group of 12-25 years old with middle to high income, modern and trendy lifestyle, and fashion-conscious behavior for its girl's accessories.

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Executive summary
Marketing is significant and remarkable for each and every country to fulfill the long term
requirements and needs of the business and customers as well. The marketing strategies of
Primark would be highlighted and evaluated for determining the marketing condition of the firm.
Primark is the leading and biggest retail corporation in the current market of UK. Pestle analysis,
market entry modes and marketing strategies also have been elaborated in the task. The report
also outlines that how the firm is overcoming the competitors in Romania.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Macro environmental analysis.....................................................................................................................4
Main market entry modes............................................................................................................................9
Market segmentation.................................................................................................................................11
Porter generic strategy...............................................................................................................................12
Conclusion.................................................................................................................................................13
e erenceR f s.................................................................................................................................................14
Appendices................................................................................................................................................17
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Introduction
The primary motive of this task is to outline and explain the significant of marketing strategies
that help in expanding and flourishing the business activities widely. Here is the discussion about
Primark business operation and further, the report outlines that how the company enters in
Romania to attain the long term mission and vision. The company offers various types of
footwear, accessories and clothing to the customers across the globe. Girl’s accessories product
has been taken in the task. No company can expand and explore the business globally without
analyzing and identifying the external environment of the country. The paper discusses that how
Primark evaluates and identifies the macro environment of Romania. Apart from this, various
entry modes also are used by the firm to enter in Romanian market. At the end, porter generic
strategy has been discussed in the task briefly to capture entire key target audience in the
competitive market. More detail of the task has been discussed below.
Primark is an Irish accessories and clothing retailer. Its headquarter is situated in Dublin and it is
a subsidiary of AB foods. The company offers a wide range of products, stocking from kids and
baby, home ware, mens, beauty products, frills and confectionery. The company opened its store
in Dublin in 1969 under the name Penneys. It has around 350 stores in 11 countries across
America and Europe (Primark, 2018). The company carries concessions in Manchester,
Birmingham and Selfridges. The main mission of the company is to provide good and unique
quality of products to the customers at suitable prices with sustainability in the workplace. Girl
accessories are significant products that help in increasing and enhancing the sales volume of the
firm. This product helps in attracting maximum number of girls in the Romanian market. By
expanding and exploring the business in Romania, Primark wants to generate maximum profits
and make a dynamic goodwill in the global market.
Macro environmental analysis
Macro environmental may affect each and every business globally. If the company wants to
reduce the negative factors then the firm must need to understand and evaluate the macro
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environment (Tho, 2018). The macro environment also affects the entire economy of the
business globally. Pestle analysis is done by the company to measure and identify the external
factors to eliminate and reduce the threats and issues of the market. As the same way, if Primark
wants to introduce girl’s accessories in Romania then it needs to focus on the external factors.
The pestle analysis for Primark has been discussed below.
External factors Opportunities Threats
Political factor Various political factors may
influence the success and
growth of the company in
Romania while conducting
business activities and
operations in such country.
The scope of the European
legislation is to protect
investors, safeguard marketing
integrity by setting
harmonized needs and
requirements governing the
actions and activities of
authorized intermediaries and
to encourage effective, fair
transparent and incorporated
financial markets. The
Romanian government
launched the stages of the
liberalization procedure and
attributes of the market open
to rivalries. Therefore, stable
political conditions can
directly affect the growth and
success of the firm positively
In today’s era, the Romanian
political situation is not stable
and it is tense and unbalanced.
It may influence the
profitability and business
functions of Primark
adversely.
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(Adriana and Monica, 2018).
Economic factor The economic factors such as
interest rate, exchange rate,
employment rate and inflation
rate could also affect the target
and efficiency of the
company. Romania’s
economic freedom score is
around 69.4, thus making its
economy the 37th freest in the
2018 index (Heritage, 2018).
Apart from this, it is stated
that external economic of the
country has been stable after
2015. It is noted that Romania
is showing a strong and
effective economic growth in
the marketplace. One of the
effective strengths of Romania
is cheap workforce and
production factors that can
remarkably contribute to
stimulating business ventures.
Further, primary opportunity
is the association to the
European economic area that
permits for the free flow of
goods, people, capital and
services. Wage growth of the
country is also stable and
effective (Gantman, 2012).
Delay in additional structural
reforms put direct impact on
the target and growth rate of
Primark. On the other hand,
corruption is widespread at all
levels of government
authorities and undermines the
rule of law. In addition, few
diversified offers will also
affect the efficiency and
effectiveness of Primark in
Romania. One of the
significant and effective
demerits in this domain is the
lack of a transparent business
environment and mixed
legislations that have impacted
on the growth of the company.
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Social factor The social factors such as
customs, values, beliefs,
income level and buying
behavior of the consumers that
can affect the sales volume
and operating income of the
people (Businessculture,
2018). It is stated that social
elements are also very
significant and effective
because they can be found in
the macro environment
(official’s investors, suppliers
and business partners) and the
internal environment of the
firm (employees).
The social atomization is the
biggest and effective threat for
the Romania that can be
eliminated by setting the
social integration programs
and sessions. Along with this,
the company would fail to
control information and facts
that may directly or indirectly
hamper its image in the global
market (Müller, Leitão, and
Sikor, 2013). Changes in
behavior and attitudes of the
key target audience will also
affect the sustainability and
progress of Primark in the
global market (King, 2013).
Technological
factors
It is noted that Romania is
fastest information technology
markets in Eastern Europe.
The nation has made effective
and unique progress in the
information and
communication technology
(ICT) subsectors including
mobile telephony, basic
telephony and the internet.
Hence, Primark can take
ample of opportunities while
introducing girls accessories
in the country.
Technology is a dynamic
factor that can be changed
frequently. Change in
technology and resources
might affect the revenue and
growth of Primark adversely.
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Legal factor It is stated that the
constitutional court of
Romania acts as an sovereign
constitutional jurisdiction and
it is not part of ordinary court
system. The military court
system is formulated intro
three tribunals such as the
military court of appeal and
the territorial tribunal (Wang,
and Sun, 2010).
It is analyzed that Primark is
coming from other country
thus, the rules and regulations
of Romania would be different
from the home country. It will
also affect the production and
performance of Primark in the
country. Before initiating the
business in Romania, the
company should analyze and
identify the rules, regulations
and policies of the country so
that future risks and
challenges can be predicted.
Environmental
factor
Environment is a significant
part of each and every country
therefore it can also influence
the operating income of the
organization adversely and
positively as well. The
weather, climate changes and
globalization would affect the
effectiveness of the firm
(Kemeny, 2010).
Primark is an Irish clothing
retailer therefore environment
of Romania is different from
Ireland. It could affect the
long term objectives and goals
of the company adversely. It is
stated that the company should
focus on the environment
when introducing new product
such as girls accessories in
Romania. It will help the
company to gain competitive
benefits in the international
market and along with this, it
will also help to accomplish
the desired mission and vision
in the competitive market
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(Harding and Fokkens, 2013).
Main market entry modes
There are ample of entry modes that can be used by Primark to enter in the Romania. The choice
of how to penetrate a overseas market can put remarkable impact on the outcomes (Kumar, and
Annushkina, 2010). The market entry modes for entering in the new country have been discussed
below.
Foreign direct investment: It is one of the significant entry modes that can be used by the
company when entering in the new market. Investment is used by the company in this entry
mode to attain various rivalries benefits. Venture might be direct or indirect through monetary
and other institutions. Foreign direct investment may influence the investment outline of the
economy and further it helps to augment and enhance the overall growth and expansion. The
investment can be done by buying shares of a property, assets and company. By using foreign
direct investment, modification and correction can be done at anytime. Along with this, it is an
easy and unique mode of entry (Morschett, Schramm-Klein and Zentes,2015). Direct ownership
is also included in the foreign direct investment. It also includes transfer of resources such as
technology, resources, and personnel. It is noted that direct investment can be done through the
acquisition of an existing and effective entity or setting of a new and innovative endeavor. It is
stated that direct investment may offer a high and huge degree of control in the operations and
the capability to better know and understand the competitive atmosphere and consumers across
the globe. It also needs unique resources and effective and dynamic degree of commitment
(Bbamantra, 2018).
Merger and acquisitions: Merger and acquisition play a vital role in expanding and exploring
the business globally. A merger is a mixture of two or more different entities into one, and the
assets and liabilities of two different entities are combined into one. All the benefits, economies
of scale, diversification and synergy are taken by only one entity. In this entry mode, control and
evaluation is done by single entity. It does not lead to termination of the firm whose shares are
acquired. In this way, merger and acquisition provide ample of benefits to the customers across
the globe (Raff, Ryan and Stähler, 2012).
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Strategic alliance: It is an voluntary and effective formal agreement between two corporations
to pool and use their capital to attain a common set of purpose and goals while remaining
sovereign entities. It is generally used to expand and explore the production capacity and
maximize the profitability and market share for a new product in the competitive market
(Bbamantra, 2018).
Licensing: This method can also be used by the company while entering in the new market
globally. Licensing is a method or tool in which a company gives permission to an individual to
utilize its legally protected technology or product and to conduct business activities and
operations in a specific manner for an fixed period of time and within a given specific region. It
is stated that licensing is an effective and unique technique to enter overseas market as less
control and collaboration is involved. Optimum utilization of resources can be done within the
help of licensing. The financial risk is transferred to the licensee through the licensing method.
There is less investment in the licensing method and further it does not require large labor force
(Quickmba, 2018).
Exporting: One of the important entry modes that can be used by the company is exporting.
Exporting may be defined as a process of selling goods and services that are produced in one
nation to other nation. It can be direct or indirect that can affect the growth and targets of the
company. The distribution of surplus can be done with the help of exporting and it is not much
expensive and risky. In this way, it helps in providing various benefits to the firm when initiating
the business actions and functions (Quickmba, 2018).
After the various studies, it is analyzed that Primark can use strategic alliance method to enter in
the foreign market. Furthermore, this method also helps in gaining competitive benefits in the
international market. This method helps in providing ample of opportunities for growth and
expansion. Apart from this, it also helps in developing innovative technologies and using brand
image in the global market. Primark can promote girls accessories in Romania with the help of
strategic alliance method. Further, the organization can increase and enhance brand awareness in
the foreign market. This method also helps to capture entire target audience in the international
market. In this way, this method deems to be a great option for Primark to promote its new
product in Romania.
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Market segmentation
Market segmentation is a process of dividing the entire market into various segments or areas
after considering the needs, wants and expectations of the customers. The company needs to
determine and identify the most suitable basis for segmentation after focusing on the
demographic, geographic, behavioral and psychographic areas. The market segmentation will
allow mangers or leaders to see a clear and effective diversity within their market and uncover
opportunities that may exist in the global market. Primark is a clothing retailer thus clothing is
most significant and effective item in its product portfolio follower by girls accessories and
footwear (Park and Sullivan, 2009). Its market segments are analyzed and identified on the basis
of girls accessories in Romania. In demographic factor, the company analyzes and evaluates the
age, sex, race, religion and caste of the customers to sell the girls accessories at suitable prices to
stand out against the rivalries internationally. Apart from this, demographic elements are
measured and identified according to their percentage relative attractiveness for targeting them
depending on their sales volume and market share for Primark. In behavior segmentation, the
company is categorizing market into the various groups based on the attitudes, aspects and
knowledge of the consumers because the company is rendering cheap quality products to attract
maximum number of customers globally (Weinstein and Cahill, 2014). In psychographic
segmentation, Primark divides its market into the different groups on the basis of social class,
personality traits and lifestyle (Dibb, 2010).
Nest stage is known as targeting that help in attracting and retaining large number of customers
in a large extent. Aside this, effective and unique targeting strategy is used or initiated by the
company while flourishing the business activities and functions in Romania. There are approx
four different targeting approaches or tools that can be considered to develop and enhance
marketing mix to attain the desired marketing objectives. The marketing mix such as price,
place, product and promotion would be done by the company to meet the long term needs and
requirements of the clients in the competitive market. It is stated that differentiated marketing
strategy can be used by the firm because organization produces various products therefore
consumers can be segmented into various segments in the rivalries market (Weinstein, 2013).
The company is targeting those customers who prefer buying accessories, footwear and clothing
products at a suitable price so generally its target customers include the age group between 18-30
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years. These are considered the primary target audience of the company who help in maximizing
the outcomes and profitability globally. The target audience also helps the firm to strive and cope
up with rivalries in the market (Weinstein, 2013).
Porter generic strategy
It is stated that generic strategy is developed by Michael porter to gain and sustain competitive
benefits in the international market. The generic strategies help the organization to stay in the
competitive market (Stonehouse et al, 2009). There are four generic strategies that have been
detailed below.
Cost leadership strategy: One of the significant issues of the firm is the high prices of the girls
accessories and other goods. Sometimes, the products are not suitable and reasonable by the
middle and lower class people because of this issue. Due to this issue, the company can also keep
an eye on the upper class people. It may affect the returns and revenue of the organization
adversely. To handle and eliminate this issue, Primark uses cost leadership strategy to beat the
competitors widely. By using this approach, the corporation will be able to offer the girls
accessories at the suitable prices by minimizing the logistics and products costs of the products.
This strategy will also help the corporation to find the appropriate and unique suppliers with
premium quality but at a suitable price. By using this strategy, Primark has been able to provide
excellent quality of products at effective and appropriate prices (Parnell, 2010).
Differentiation strategy: This strategy helps the firm to distinguish its products from the
competitors to attract the clients with the superiority of the products and services rendered by the
firm (Stonehouse et al, 2009). The organization needs to focus on the segregation strategy where
they can distinguish their fashion and clothing products and services from the rivalries to attain
rivalries benefits (Magretta, 2011).
Cost focus and differentiation leadership strategy can also be used by the firm to run the business
in Romania. With differentiation leadership and cost focus strategy, the business targets is much
larger and objectives to attain competitive benefits through differentiation across the whole an
industry. This strategy uses selecting one or more criteria used by the employees in a market. By
using this strategy, the organization has been able to produce unique and innovative products in
the competitive market. It is noted that differentiation strategy is also connected with changing a
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premium and excellent price for the products. Moreover, it also reflects the sustainability and
growth rate of the firm.
It is recommended that Primark should focus on the differentiation strategy to accomplish the
goals and objectives and to overcome the competitors internationally. With the help of this
strategy, the organization has been able to use innovative and advanced technology and resources
to differentiate its products from the other players in the market. Developing some exclusive and
effective design of the girls accessories might be the cause of the accessibility of some effective
and fashionable products which will distinguish the products of the firm from others Mckeown,
2013). This distinctiveness and effectiveness may attract many new and innovative customers
towards the products and services rendered by Primark. In this way, differentiation is one of the
considerable strategies that can be implemented by the company in the workplace (Mckeown,
2013).
Conclusion
From the above mentioned study, it is concluded that marketing strategy of Primark and
expansion of the firm in the Romania have been evaluated and explained in the task. The firm is
focusing and identifying only quality of the products to make a good and dynamic image in the
minds of the customers. The above mentioned analysis indicates that how the firm is using
effective and dynamic marketing strategies such as Pestle analysis, porter generic strategy and
foreign entry modes in order to attain maximum level of outputs and effectiveness. The
recommendation given in the task would be helpful and supportive for attaining the sustainable
competitive benefits in the future business. It is also recommended that Primark should focus on
the corporate level strategies to build and develop a financial position in the global market. The
organization should also focus on the promotional and advertisement strategy to make
distinguish its clothing products and accessories from the rivalries. In this way, Primark has been
able to capture entire market globally. The company should also concentrate and identifies the
marketing mix strategies to evaluate the price and product.
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Appendices
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