Marketing Analysis of Primark: Customer Behavior and Market Trends

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MARKETING
INTELLIGENCE
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a. Describing the stages of purchasing decision making process................................................3
b. Assessing the theories of buying behavior..............................................................................4
c. Identifying the factors that affect buying behavior and decision making................................4
d. Assessing the relationship between brand loyalty, corporate image and repeat purchasing...5
TASK 2............................................................................................................................................6
a. Framing marketing research objectives...................................................................................6
b. Evaluating different types of market research techniques.......................................................6
c. Using sources of secondary data to achieve marketing research objectives............................7
d. Assessing the validity and reliability of market research findings..........................................7
e. Developing market research plan to attain information...........................................................7
TASK 3............................................................................................................................................8
a. Market size and trend analysis for Primark.............................................................................8
b. Competitive analysis of Primark.............................................................................................9
c. Producing SWOT analysis to analyze strengths and weaknesses for identified product and
service........................................................................................................................................11
TASK 4..........................................................................................................................................12
a. Examining range of techniques used for assessing customer response and evaluate their
effectiveness..............................................................................................................................12
b. Undertaking customer satisfaction survey.............................................................................12
c. Reviewing the success of the completed survey....................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Marketing intelligence is highly concerned with the identification and collection of
information about customer needs, wants as well as expectation level. Moreover, managers can
frame highly suitable strategies only when they have information about target market. Thus, by
considering such information and aspects manager can develop suitable marketing mix and
promotional framework that directly aid in the growth and success of firm. The present report is
based on Primark which is one of the leading fashion retailers of UK. Such business organization
offers higher unique and designer clothes to the customers. In this, the present report will provide
deeper insight about the elements that closely influence the decision making aspect of customers.
Further, it will shed light on the manner in which marketing research and SWOT analysis
technique helps in making highly effective business decisions. Report will also develop
understanding about the manner through customer response can be assessed.
TASK 1
a. Describing the stages of purchasing decision making process
Decision making aspect of Primark’s customers can be understood through the means of
following stages are:
Need identification: First step of decision making process starts with the assessment or
identification of need. On the basis of this aspect, customers make decision in relation to
purchasing of products when they recognize need (Ratten, 2016). For instance: Now
youngsters prefer to carry highly fashionable dress while attending parties.
Searching information: In this stage, individual searches information about the fashion
store. For this purpose, individual makes internet surfing and takes suggestion from
family, colleagues as well as friendship group.
Evaluating alternatives: At this point, individual make assessment of the offering of
various fashion retailer such as H&M, Next Plc etc. in terms of price, quality etc.
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Purchasing decision making: Once evaluation has been done, thereafter individuals
make selection of retailer by considering the specific criteria and make purchase of
apparel.
Post-purchase behavior: In the last stage of decision making process people make
evaluation of their satisfaction level in relation to purchase (Jensen and et.al., 2016).
b. Assessing the theories of buying behavior
Internal theory of buyer behavior is most common which is practiced by the large number
of individuals. According to such theory people makes decision about making in-depth
evaluation and comparison of each aspect such as price, quality, features etc. Such theory is also
known as rationale actor theory in which buyer makes logical decisions after conducting proper
evaluation of each aspect associated with the product. Further, such theory entails that lifestyle
and social class of the customers have high level of impact on the decision making aspect of the
customers. Further, cultural theory also helps in understanding the buyer behavior significantly
(Wang, 2016). It presents that culture and society are the major aspects that influence the
individual decision about purchase. Hence, Primark needs to offer clothes or apparel by
considering such theoretical framework.
c. Identifying the factors that affect buying behavior and decision making
In the present times, there are several factors which are considered by the individual at
the time of decision making are enumerated below:
Cultural factors
Culture from individual belongs closely influences their decision making. The rationale
behind this, individuals prefer to purchase and wear apparels which reflect or present their
cultural aspects. For instance: British people lay emphasis on western wear, whereas Indian
people make focus on purchasing ethnic wear.
Social factors
Friends, family, reference group, social class, status, traditions and income are the major
factors that closely impacts purchasing decision of customers. For instance: Now, individual
makes purchase of apparel from the store that is suggested by their friendship group and family
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members (Factors affect customer decision making, 2017). In this way, social factors affect
customer’s decision regarding purchase and thereby sales revenue of Primark.
Personal factors
Economic circumstances, lifestyle, personality, gender, education etc. are the main
personal factors which in turn influences shopping decision of the customers of Primark.
Moreover, purchasing power of the customers is highly influenced from the economic condition
that prevails in the country. Further, education and lifestyle is another factor that affects
purchasing aspect of customers. For instance: Professional and high social class people focus on
purchasing designer wear which give unique or distinct identity to them
Psychological factors
Such category includes motivation, perception, learning belief and attitude that are
considered by individuals for decision making (McGoldrick and Liu, 2017). For instance:
Individuals have psychology that highly priced apparel apparels having better quality. Thus, by
offering clothes at competitive prices Primark can attract large number of customers.
Hence, Primark needs to keep in mind all such factors at the time of strategy formulation.
This in turn helps company in enticing more customers and thereby helps in enhancing sales
revenue as well as profit margin.
d. Assessing the relationship between brand loyalty, corporate image and repeat purchasing
There is significant relationship takes place between brand loyalty, corporate image and
repeat purchasing. Brand loyalty presents that customers make focus on purchasing product and
services of specific company. For instance: When customers make regular purchase of apparels
of Primark then it is considered as brand loyalty. Moreover, repeat purchase is the indicator of
brand loyalty which in turn helps in assessing the extent to which customers are loyal towards
the fashion apparel offered by Primark. Along with this, corporate image also increases to a great
extent in line with brand loyalty. Moreover, company which has loyal customer base enjoys
effectual image within the marketplace (Andaleeb and Hasan, 2016). Beside this, company
which has positioned its services on the basis of quality of services, uniqueness and price can
enhance customer loyalty as well as repeat purchasing aspect to the significant level.
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TASK 2
a. Framing marketing research objectives
Marketing objectives
To assess customer needs, wants and expectations.
To provide information to the customers about unique offering by identifying and
undertaking suitable promotional mean.
To identify the factors that evolves satisfaction and loyalty among the customers.
b. Evaluating different types of market research techniques
Marketing research is the process which in turn helps company in gathering information
about product, market, competitors and target market. Such research helps company in gathering
information about target market and thereby helps in offering suitable product to the customers
according to their requirements (Sintonen and et.al., 2016). Hence there are mainly two kind of
research techniques which can be used by the research department of Primark Plc is as follows:
Qualitative investigation: Such research technique is undertaken by the researcher to
assess the main reasons and factors due to which problem occurs. Scholar of Primark can
determine suitable solution of issue through the means of qualitative investigation when
sample size is small. Hence, semi-structured techniques such as interview etc. are
undertaken by scholar for the purpose of data collection. Further, according to such
technique researcher presents solution by using non-statistical techniques. Along with
thus, by undertaking such method investigator can develop hypothesis for quantitative
data analysis. For instance: By conducting quantitative study scholar can assess the
impact of branding strategies on the buying behavior of customers.
Quantitative investigation: It may be defined as one which in turn helps in determining
suitable solution of data gathered through the means of survey. In this, researcher
presents solution by evaluating the numeric data through SPSS (Ellis, 2016). For
instance: By conducting quantitative investigation researcher can provide Primark with
information about the extent to which social media campaign has impact on customer
purchasing decision making.
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c. Using sources of secondary data to achieve marketing research objectives
Secondary data may be defined as one that is already gathered, evaluated and analyzed by
the scholars. Such data source is highly effectual which research department of Primark in
fulfilling aims and objectives (Keillor, Hult and Babakus, 2015). Moreover, maximization of
customer satisfaction through the means of quality services is one of the main objectives of
Primark. In this, by using books, journals and scholarly articles business unit can get information
about the purchasing behavior of customers. In addition to this, by making evaluation of
government reports Primark can assess fashion trend and preferences of customers in relation to
apparel. Further, such report also helps in assessing spending pattern of customers and
performance aspect of competitors. By using such information Primark can take strategic action
for achieving success in the highly strategic business environment.
d. Assessing the validity and reliability of market research findings
Reliability and validity are the two major elements which in turn help in enhancing the
effectiveness of outcome. To include the feature of reliability in the study researcher of Primark
has done proper citation of source from where information is gathered. It presents that data has
been rephrased by the researcher in his own words (Babin and Zikmund, 2015). Along with this,
for evaluating the validity aspect of study Primark makes assessment of publishing year and
source from which data is gathered. The rationale behind this, authentic sources offer highly
reliable data and thereby facilitate suitable decision making. For instance: Latest published
government reports offer highly appropriate and suitable information. In this way, by considering
all such aspects Primark can assess validity and reality of research findings.
e. Developing market research plan to attain information
Primark is a well established business unit which is successfully dealing in clothing retail
in major part of the world (Voss and et.al., 2015). The organization is currently planning to
undertake the research to examine the major factors which influence the consumers for the
products and services offered by the organization. The research plan will help the organization in
analyzing the factors which enhances brand loyalty within the market. The following plan will
effectively help in attaining the effective information.
Activities/ weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
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Developing research proposal
Analyzing aims and objectives
for the research
Referring past researches and
secondary data sources
Preparing research
methodology
Undertaking primary research
to attain updated information
Recording data in a structured
way
Analysis of data
Attaining reliable conclusion
and recommendation for the
business
Arranging the research and
forming effective study
Submission of report
TASK 3
a. Market size and trend analysis for Primark
UK retail market is significantly growing within the economy at a significant rate.
Clothing trends and demands are changing at a significant rate (Hur, Moon and Jung, 2015). The
growth of the market is high and effective. The market is expanding a high rate as the number of
buyers and suppliers are continuously increasing within the market. The market analysis
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reflected that the UK clothing market has managed a well defined growth rate of 1.5 percentages
annually. The stated growth rate represents a high demand within the economy. Primark is a well
established organization operating successfully globally (Bradley, Hope and Pickett, 2016). The
product range and services are effectively managed as per changing trends and demands within
the economy.
The growth rate of the country plays a crucial role in creating a positive impact on the
industry as it helps in developing high development for the industry. It has been analyzed that
high disposable income within the people has enhanced the market demand for fashion retail
products (Chiang, Chen and Wu, 2015). Primark has analyzed the changing trends and demands
effectively thus creating high growth in the economy. Moreover sustainable practices and low
cost production aspects have helped the company in creating a positive brand identity within its
consumers. Unique ethical measures of the business have helped it to develop a competitive edge
in the market thus significantly developing the sales and demand.
b. Competitive analysis of Primark
The fashion retail industry of UK is one of the highest growing industries in the country.
Primark is facing subsequent market competition in the economy which has helped the business
in developing a well defined brand identity in the nation. The competitive analysis of the
business has been carried out henceforth.
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Threat of new entry: Primark has developed a well defined brand identity within the
market which has helped the business organization in creating a significant market
demand (Zhang and et.al., 2016). Threat of new entry is low for the organization because
it has developed a high level of competition. In addition high market share of the business
is another critical aspect for new entrant.
Threat of substitution: Primark high threat of substitution in the market as the company
is dealing in clothing sector which is a highly competitive industry. Companies such as
Next plc, Arcadia group Plc etc has created high competition for the business unit.
Buyer power: Fashion retail is a well established market in the economy. The buyer
power for Primark is moderate as the organization has developed a unique brand identity
in the market. The high quality product and considerable prices has given the
organization a significant edge in the market (Hollensen, 2015).
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Supplier power: The supplier’s power for Primark is low as the raw material demanded
for production is easily available. Thus in case of price increment by one supplier may
lead to easy shift to another supplier.
Competitive analysis: The competitive rivalry for the industry is high as the business as
the consumers demands wide range of products. Moreover the industry has developed a
well defined range of different and well established brand names in the market.
c. Producing SWOT analysis to analyze strengths and weaknesses for identified product and
service
The external business factors are beyond organizational control thus analysis of the same helps
the business in developing a competitive market edge in the economy to create high demand
within the economy (Lusch and Vargo, 2014). The evaluation of strengths and weaknesses of
Primark has thus been effectively carried out as under:
Opportunities
The organization has developed a well defined consumer base which has helped the
organization in creating a significant brand identity in the market. Sustainable business practices has helped the business in ensuring consumer base Strong base of committed team of employees within the market The profitability share of the business is high as the demand is significant in the
economy. Effective production measures have helped the business in managing low cost production
aspects in the economy. Effective measures for market development within the competitive economy.
Threats
Rising market competition in the market. Changing trends of consumers has created a high risk for the companies Availability of large number of competitors also imposes threat in front of the
organization. Moreover, price consciousness, innovation etc. are the main factors that
have impact on customer loyalty.
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TASK 4
a. Examining range of techniques used for assessing customer response and evaluate their
effectiveness
Consumers are the significant part of business growth and development. Collecting
consumer response on a regular basis helps in attaining the latest information and current market
trends for the business unit. Different measures which can be effectively implemented for the
same includes:
Questionnaire: This is one of the most effective and well defined means of collecting
primary information from the set of people. Primark can effectively use the stated
measure in order to analyse the current needs and preferences of the consumers thus
analysing their current needs and demands (Clark and et.al., 2016). An effective and
structured questionnaire with open and closed ended questions can be developed which
will help in attaining consumer perception on different aspects. This is an effective and
time saving measures which may help in reaching a large amount of consumers in limited
time frame.
Interview: This is another significant measures which may helps the business unit in
attaining the latest and reliable information. In this measures interviewer personally
reaches the consumers and ask a set of questions to attain the valid data for the
organization (Bradley, Hope and Pickett, 2016). This is time consuming measures for the
organization as reaching consumers of Primark will be highly time consuming or the
organization. This measures will also incur high cost and resources.
b. Undertaking customer satisfaction survey
The present study focuses on analyzing the level of consumer satisfaction for Products
and services offered by Primark. In order to undertake the stated survey a sample of 50
consumers from Primark London has been chosen. It is because London represents effective set
of consumer base which can effectively help in attaining well defined consumer perception for
the business. The survey questionnaire for the organization will be as below:
Demographic information
Name
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Age
Gender
Occupation
Specific information
1. How often do you visit Primark stores?
Weekly basis ()
Twice a month ()
Monthly ()
Three months ()
Not sure ()
2. Primark offer significant quality products.
Strongly Agree ()
agree ()
Neutral ()
Disagree ()
Strongly disagree ()
3. Are you satisfied with service quality offered by Primark stores?
Yes ()
No ()
Not sure ()
4. Sustainable business practices of Primark affects your buying decision?
Strongly Agree ()
agree ()
Neutral ()
Disagree ()
Strongly disagree ()
5. Primark offers cost effective products within the market?
Strongly Agree ()
agree ()
Neutral ()
Disagree ()
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Strongly disagree ()
6. Will you revisit the Primark store for you future needs and preferences?
Yes ()
No ()
Not sure ()
7. Kindly recommend how Primark can enhance its service range… (Kindly specify)
c. Reviewing the success of the completed survey
The survey undertaken by Primark has been significantly successful for the organization.
By reviewing the questionnaire it was effectively analyzed that consumer Primark has developed
a strong and significant consumer base within the country. Consumers are satisfied the range of
products and services offered within the market. However the aspect of product range was
repeatedly demanded to be developed. Hence it can be analyzed that the organization has created
a well defined brand identity and demand within the market however effective service range will
help the business unit to grow and develop in a significant and well defined manner within the
economy. It may help the company to develop a competitive market edge.
CONCLUSION
Marketing aspects contributes significantly in the success and growth of the business
unit. Effective marketing strategies help the businesses in developing a unique brand identity.
The above study revealed different aspects and scope of marketing intelligence. The case
analysis of Primark helped in developed a practical overview of actual business situation. In
addition the application of models and theoretical knowledge helped in developing an effective
understanding about different business and marketing respective in the current market situation.
Hence it can be evaluated that Primark has adopted effective measures for growth and
implementing different measures analyzed may help the business to develop a competitive edge
within the economy.
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REFERENCES
Books and journals
Andaleeb, S. S. and Hasan, K., 2016. Marketing Research. In Strategic Marketing Management
in Asia: Case Studies and Lessons across Industries (pp. 111-160). Emerald Group
Publishing Limited.
Babin, B. J. and Zikmund, W. G., 2015. Essentials of marketing research. Nelson Education.
Bradley, M. D., Hope, L. B. and Pickett, J., 2016. Mode of Delivery and Customer Response to
Advertising Mail. In The Future of the Postal Sector in a Digital World (pp. 213-
229). Springer International Publishing.
Chiang, A. H., Chen, W. H. and Wu, S., 2015. Does high supply chain integration enhance
customer response speed?. The Service Industries Journal. 35(1-2). pp.24-43.
Clark, T., Ferrell, O.C., Hartline, M., Sheth, J. and Stewart, D., 2016. Where/How Does
Marketing Fit? What Is Marketing’s Place in the Firm and Within the Family of
Business Disciplines?. In Let’s Get Engaged! Crossing the Threshold of Marketing’s
Engagement Era (pp. 199-202). Springer International Publishing.
Ellis, N., 2016. Constructing identities in Indian business networks: discourse analysis in B2B
marketing research. Palgrave Macmillan.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Hur, W. M., Moon, T. W. and Jung, Y. S., 2015. Customer response to employee emotional
labor: the structural relationship between emotional labor, job satisfaction, and
customer satisfaction. Journal of Services Marketing. 29(1). pp.71-80.
Jensen, J. A. and et.al., 2016. Forecasting sponsorship costs: marketing intelligence in the
athletic apparel industry. Marketing Intelligence & Planning. 34(2). pp.281-298.
Keillor, B., Hult, G. T. M. and Babakus, E., 2015. The Natid Scale: Construction of a National
Identity Scale for Application in International Marketing Research. In Proceedings of
the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 220-224).
Springer International Publishing.
Lusch, R. F. and Vargo, S. L., 2014. The service-dominant logic of marketing: Dialog, debate,
and directions. Routledge.
McGoldrick, P. J. and Liu, C., 2017. Application of Mixed Methods by Consumer Marketing
Practitioners: Lessons for the Academy? Abstract. In Creating Marketing Magic and
Innovative Future Marketing Trends (pp. 1463-1464). Springer, Cham.
Ratten, V., 2016. The dynamics of sport marketing: Suggestions for marketing intelligence and
planning. Marketing Intelligence & Planning. 34(2). pp.162-168.
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Sintonen, S. and et.al., 2016. Cross-country cross-survey design in international marketing
research. International Marketing Review. 33(3). pp.454-482.
Voss, Z. G. and et.al., 2015. Conceptualizing Marketing Relationship Models and their Impact
on Customer Response. In Marketing Dynamism & Sustainability: Things Change,
Things Stay the Same… (pp. 207-207). Springer International Publishing.
Wang, S., 2016. From social media to innovation and marketing intelligence: A simulation to
forecast online review and rating performance. Journal of Digital & Social Media
Marketing. 4(3). pp.251-262.
Zhang, Y. and et.a., 2016. An Exploratory Analysis of Kitakyushu Residential Customer
Response to Dynamic Electricity Pricing. Procedia-Social and Behavioral Sciences.
216. pp.409-416.
Online
Factors affect customer decision making. 2017. Online. Available through: <
http://superprofesseur.com/19.html>. [Accessed on 14th February 2017].
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