Global Marketing Management Report: Primark's International Plan

This report provides a comprehensive analysis of Primark's global marketing strategy. It begins with an introduction to global marketing and an overview of Primark's business. The report then delves into Primark's brand competencies and how they can be leveraged internationally. It identifies the company's internal strengths and weaknesses, as well as external opportunities and threats, using tools like PESTLE analysis. A thorough competitor analysis is conducted, followed by an examination of target market selection and product positioning. The report outlines realistic marketing objectives, explores potential entry mode strategies, and evaluates the international marketing mix Primark should adopt. Furthermore, it includes an analysis of an internal marketing budget strategy. The report utilizes frameworks such as the Ansoff matrix and Porter's Five Forces to support its findings, offering a strategic roadmap for Primark's international expansion.

Global Marketing
Management
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASKS.............................................................................................................................................4
1) Competencies of brand and how it is utilized internationally to market chosen product........4
2) Organization's main internal strengths and weaknesses..........................................................4
3) Organization's main external opportunities and threats...........................................................5
4) Evaluation of organization's competitors analysis..................................................................6
5) Target market selection and positioning of organization product in chosen market...............7
6) Realistic marketing objectives that organization should set within their target market..........8
7) Analysis of entry mode strategies the organization should pursue in the international market
......................................................................................................................................................8
8) International marketing mix strategy the organization should follow in order to launch their
products........................................................................................................................................9
9) Analysis of an internal marketing budget strategy relevant for the organization's plan........10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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Illustration Index
Illustration 1: Ansoff matrix............................................................................................................7
Illustration 2: PESTLE analysis ....................................................................................................10
Illustration 3: Porter five force model............................................................................................13
Illustration 4: 9 strategic window table .........................................................................................16
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INTRODUCTION
In the contemporary scenario for making gainful marketing relationship organization
must realize the important of global marketing environment (Lee and Carter, 2011). It merely
defined as factors that exists outside the organization that directly affect the company's
marketing strategies accordant with the increasing competition level. With the exploding
globalized market, all the establishment are concentrating on selling their manufactures products
and services within the global market that would result in accomplishing the higher profits while,
it also result in capturing the large market area.
The present report focuses on Primark one of the renowned brand in the fashion retail
industry. In the contemporary scenario with the increasing global competition as well as global
marketing environment organization will mainly focuses on adopting new changes and utilize
them to attain benefit. The present report will focus on the analysing on different market entry
modes that would support the organization in spreading their business activities in the
international markets. However, the report will also analyse organization internal and external
strength as well as weakness that help organization to be succeed in the global environment.
Overview of company
Business name- Primark
Founder- Arthur Ryan
Business summary- Primark is among the top Irish clothing retailer which is in operation since
1969. The company is one of the renowned fashion brand in the UK market that contributes its
services in selling retail products as well as fashionable clothing apparels.
Business aims and objectives- The key aims and objectives of Primark is to provide superior
quality fashionable products as well as cosmetics to their customers at lower prices. Another
objective of Primark is to sell wide range of products at affordable and reasonable prices.
Nature of business- Fashion retailer
Products- Clothing, Homeware and Cosmetics
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TASKS
1) Competencies of brand and how it is utilized internationally to market chosen product
In the contemporary scenario, core competencies as well as ability of brand will assist
them to succeed in the global environment. Core competencies help the organization in gaining
competitive edge among their rival companies (De Mooij, 2013). Primark, one of the leading
fashion retail brand in the UK that provide wide range of home products as well as clothing
products to their target customers. The core business of Primark is to concentrate on the high
street retailing with provide wide range of products to all age groups. The core competencies of
Primark assist them in succeeding among their rival companies as well as it also include low
expenditure on advertisement. Company does not heavily spend their monetary value in the
advertising or promotion of their products. Another core competency of Primark include low cost
management as well as operational process that result in saving their funds. However, Primark is
also effective inn handling all the complaints as well as issues of their regular customers
(Hollensen, 2015).
Therefore, the above abilites of Primark mainly assist the organization in achieving
competitive advantage among the rival companies like Zara, H&M, D&G etc. Primark to enter in
the international market must focuses on adopting global marketing strategies that would
successfully help the organization in attaining the international market share. For instance,
Primark has manufactured stylish catwalk clothings for women at affordable prices and need to
market their chosen product in the international market (Papadopoulos and Heslop, 2014).
Therefore, core competencies of Primark should be utilized as internationally to market their new
catwalk products ranges. With the help of low advertisement and promotional activities the funds
can be used by Primark in adopting global marketing strategies to market their chosen products.
Ansoff's matrix generally focus on the four different growth strategy that is market
penetration, product development, market development and diversification. Primark company
mainly focuses on the three strategies that is market penetration, market development and
product development strategy. Market penetration strategy usually focuses on selling existing
products into the existing market as per the requirement of customers. Through using
competitive pricing strategy as well as effective sales promotion techniques they can easily
penetrate the market. Although by expansion of shop floor as well as setting up new stores
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Primark can easily sustain in environment. Another growth strategy is market development, that
mainly seeks to sell existing products in the new markets. In the competitive market it is
essential for organization to expand their business in the new market that is expanding businesses
of Primark through launching online websites that support in providing online clothing apparels.
However, another growth strategy that Primark focuses is product development strategy under
which company introduce new products or clothing line in the existing market.
Value chain analysis mainly focuses on describing different activities that take place
within the business environment as well as these activities also perceive in enabling competitive
advantage for the firm. Primark value chain model mainly include different supporting activities
that support the Primark in gaining competitive edge from their rival companies-
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Illustration 1: Ansoff matrix
(Source: Ansoff matrix template, 2015)

1. Procurement (purchasing) of activities: The company purchase quality raw material as
well as products from the different countries. However, Primark also carry out their
procurement activities by enabling proper code of conduct.
2. Technological development: Technological activities also act as the supporting activities
of the Primark that assist in gaining competitive advantage. With the help of
technological development Primark will reinforce their business model as well as their
market strategies so that they may increase their market share and easily expand their
business activities in the different region.
3. Human resource management: Another support activities of Primark is their human
resource management function. Since, 2009 Primark is associated with SAVE that
support in providing education as well as support to their workers and staff.
4. Infrastructure: However, infrastructure is also consider as the key supporting activities
that result in increasing and growing their profit margins as well as also support in
enhancing the volume of shopping.
2) Organization's main internal strengths and weaknesses
In order to adopt global marketing strategies it is essential to analyse main internal
strength and weaknesses of organization as it will help the global marketing consultant of
Primark to focus on strengthening their identified strength so that they can be succeed in the
global market (Blocker and et.al., 2011). The Primark strength and weaknesses are as follows:
 Strength- Primark company has around 161 stores in the world and 125 stores among the
161 are only located within the UK region. The key strength of company is that they
provide quality fashionable products and accessories at reasonable prices so that large
customers get attracted towards their products (De Brentani, Kleinschmidt and Salomo,
2010). However, Primark also focuses on low cost associated with the management and
operational processes that act as the strength of organization. Moreover, Primark
company has also collaborated with the organization that focuses on ethical trading
initiatives (ETI) that support or work to protect the rights labour and staff. Thus, it result
in increasing the revenue growth of Primark from year to year in 2013 the net income of
Primark was around £514m as well as in 2014 it increases up to £662m.
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 Weaknesses- There are also some weaknesses of Primark that has been identified.
Therefore, the weaknesses must be overcome buy the global marketing consultant so that
they can successfully renders their services in the global environment (Freeman and
et.al., 2010). The identified weaknesses of Primark are; they focus on low advertisement
and promotional activities thus, it act as the weakness of the firm. As, with the increasing
technological factors they must focus on the new advertising and promotional technical
tools to enhance their brand image.
3) Organization's main external opportunities and threats
However, marketing consultant also identifies certain external opportunities and threats
that exists outside the organization and affect the marketing strategies of Primark (Moeller and
Harvey, 2011). Opportunities that are available for Primark include with the increasing
globalization Primark get wide possibility to expand their business activities and selling of their
products in the global market. Another opportunities of Primark is that customers now a days are
focusing on using stylish and fashionable clothing apparels. However, the global marketing
consultant has also identified certain threats existing in the market that PESTLE factor. All these
factors are considered as major threat for the business (Jüttner, Christopher and Godsell, 2010).
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 Political factor- For selling products in the international market that is in India, Primark
need to precede different government policies and their tax rate. Therefore, gain or
decrement in the government tax rates will impact on the product pricing of Primark.
 Economic factor- Another factor is economical factor Primark marketing their products
in the international market for instance in India which is considered as emerging
economy (Berthon and et.al., 2012). As Indian economy has been considered as the stable
economy in 2013 Indian economy has registered a GDP of $5.07 trillion thus, in the year
2014 it further increases 5% of GDP rate as compared to 2013. Therefore, emerging
economy possess high purchasing power of their customers thus result in higher prices of
Primark products. High purchasing power will also increase the aggregate demand of
products in the economy.
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Illustration 2: PESTLE analysis
(Source: Waters and Rinsler, 2014)

 Social factor- Another threat for Primark include social factors that consists of different
demand of customers, cultural change etc. for instance; in India Therefore, focusing on
selling Primark new products that is catwalk clothing for women in the Indian market
customers Thus, with the change in customers preferences will directly impact the
manufacturing activity of Primark (Waters and Rinsler, 2014).
 Technological factor- This external environment factor act as both opportunity as well as
threat for the Primark. As, with the increasing technology Primark can adopt technology
for selling their products in Indian market with the help of online websites this help in
increasing their market area. India function with both 3G and 4G technology that support
in promotion of the products ad services. However, increasing technology sometimes
may also act as threat for the Primark
 Legal factor- Legal factor emphasis on modifying the policies and structure of Primark
according to changed law and legislation by the government (Reuter and et.al., 2010).
 Environmental factor- This factor also act as the threat for Primark while they are
expanding their business activities in the Indian economy. As this factor will focus on
preserving the surrounding under which Primark renders their services. Thus, it will
increases the expenses of Primark as to preserve environment Primark will focus on
paper bags instead of using plastic bags.
4) Evaluation of organization's competitors analysis
Organisation to be successful in the competitive market it is required by Primark to
measures their competitors and their strategies. Competitors analysis is consider as the essential
component within the marketing planning process (Mollenkopf and et.al., 2010). However,
competitors analysis help the Primark in reviewing the actions of their competitors and even
achieve their weaknesses to render quality products and services. With the help of competitor
analysis global marketing consultant can easily identifies enterprise USP (Unique Selling Points)
so that they can take advantage in the promotional marketing campaigns. Therefore, competitors
analysis is consider as an ongoing process as this will assist the Primark in developing and
amending their marketing strategies with the changing market scenario (Griffith and Hoppner,
2013).
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With the help of Porter's five force analysis, global marketing consultant of Primark
would analyse the level of competition existing in the current scenario. This model focuses on
examining five forces whose ultimate goal is to analyse the competitors and also determine the
reasons for attaining success (Kirtiş and Karahan, 2011). Porter five forces mainly determine five
forces that is-
Porter's five force Characteristics
Threat of new entry-  Threat of new entry in the fashion retail market is quite high
due to Primark economies of scale. Primark has captured
large share within the UK market thus it would be expensive
and hard for the new entrants to enter within the clothing
industry.
Power of buyers-  Another force is Power of buyers, in the contemporary
scenario Primark is considered as cheapest clothing retailers
customers are attracted towards their products due to
reasonable prices. Therefore, it will result in reducing the
switching costs thus, power of buyers are low within
clothing industry (Kumar, Sunder and Ramaseshan, 2011).
Power of suppliers-  Suppliers are those from whom Primark supply raw material
as well as different quality clothing so that they can produce
the product according to the requirement of their customers.
Therefore, Primark is not dependent on the single supplier it
result in high bargaining power among their suppliers
(Kaufman, and et.al., 2011).
Threat of substitute-  with the increasing rivalries in the fashion retail industry
results in increasing the threat of substitute. Customers will
prefer to purchase the clothing products from the brand that
provide low money value.
Competitive rivalries-  The competition within the fashion industry is quite high
with the increasing number of rivalries. There are different
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competitors existing in the market like Zara, Next, H&M etc
(Balde, 2008).
Red ocean and blue ocean theory is link with the evaluating the competition within the
existing and new environment. Under red ocean theory Primark compete with their competitors
in the existing market. However, this theory also focuses on making the value and cost trade off
in the existing market. Moreover, the red ocean strategy focuses on systems of company's
business activity that assist in modifying the strategic choice of company and result in lowering
the cost. On the other hand blue ocean theory is defined as strategy that is used by Primark to
enter in the international market that is India. However this theory has been used by the company
to create and capture the demand within the new environment.
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Illustration 3: Porter five force model
(Source: Porter’s Five Forces of Competitive Position Analysis. 2013)