International Marketing Analysis: Primark's Strategies and Challenges

This report provides a comprehensive analysis of Primark's international marketing strategies, focusing on market entry modes, the rationale for international expansion, and the key concepts of international marketing. The report delves into the global versus local marketing debate and examines how product, pricing, promotion, and distribution strategies differ across international contexts. It explores various international marketing approaches applicable to Primark, analyzes the company's home and international orientation, and discusses competitor assessment. The report also identifies key criteria and selection processes for choosing international markets. It covers various market entry strategies, including exporting, franchising, licensing, joint ventures, and strategic alliances, outlining their advantages and disadvantages. The report also examines the scope of international marketing, including imports, exports, and contractual agreements. The study includes the steps involved in selecting a market for expansion. This report offers valuable insights into Primark's international marketing operations and provides a framework for understanding the complexities of global market entry and expansion.

International marketing

Table of Contents
INTRODUCTION .............................................................................................................1
L01................................................................................................................................... 1
P.1 Analysing the scope and key concepts of international marketing....................1
P.2 Rationale to enter into international market and Modes of entry.......................2
L02................................................................................................................................... 3
P. 3 Key criteria and selection process to use when considering ...........................3
P.4 Different market entry strategies, including the advantages and disadvantages of
each......................................................................................................................... 4
L03................................................................................................................................... 5
P.5 An overview of the key arguments in the global versus local debate..............5
P.6 How product, pricing and promotional distribution approach differs in a variety of
international context.................................................................................................6
LO4.................................................................................................................................. 7
P.7 Analysing various international marketing approaches for Primark...................7
p.8 .Compare home and international orientation and ways to assess competitors,
outlying the implications of each approach..............................................................8
Conclusion....................................................................................................................... 9

INTRODUCTION
Marketing is a very important method or tool that is essential for each and every
organization for promoting their goods and services in the market and attract more and
more customers. In order to expand or enter into a new market, it is important for a
business to analyse each and every factor that influence a company while choosing
most appropriate foreign market. The present report is in context to Primark, a leading
fashion retailer in UK. The study will identify various market entry modes and steps
involved in selecting a market for expansion. The report will also include arguments on
local and global market debates along with international marketing approaches. In
addition to this the study will also include how price, product, promotion and place can
affect the market entry process as well as activities of an organization while entering
into a new market. Furthermore, Rationale to enter into international market and Modes
of entry will be discussed in detail.
L01
P.1 Analysing the scope and key concepts of international marketing.
International marketing is all about flowing goods and services in other countries.
In this company's sale their products globally in order to increase sales and growth of
the venture. It is different from local marketing as in local marketing, market is limited
within the geographical boundaries of the nation whereas, in international marketing
market of different nations are targeted.
Primark has started its business from Ireland and its currently operating in United
Kingdom. it has around 350 stores. It has also opened its stores in Netherlands,
Germany and Belgium.
Scope:
Imports: Primark import different clothing material from UK Thus, international
marketing plays an important role in making import from different countries. Primark
import for its own use (Gomes, Sousa and Vendrell-Herrero,2017). So that it can make
available all products under one roof. Primark buy product so that it can sale it to
consumers. But often this company take assistance from imports for their own usage,
creation and improvement. It will help to the production unit of the organisation.
Exports : Same as the import Primark export different products to all its stores in
different countries. This will help in increasing in its profitability and have a global
exposure. It is a way to create brand name along with increasing growth and profits in
international market.
Contractual agreement
Primark has also made various contractual agreement with different countries in
form of production technical assistant patents trademarks etc. It will allow the company
in earning profits and growth. Thus, brand image of the organisation will be enhanced.
Key concepts of international marketing.
International marketing is a way to take the business to another level where
organisation can take the business from domestic to international level. All the detail
concept are described below.
Domestic marketing: Organisation which operates within the nation. In order to
grown these type of ventures enter in to new products or new market but limits in the
country only. It involves less risk and is not a complex process as in comparison to
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international marketing. In context to Primark it was earlier used to deal only in Ireland.
But currently it is planning to expand its business in different countries as well.
Export marketing: In this, the company step out in to the international market.
Main aim of the organisation is to expand the business in other nation as well. Here the
company does not market directly but It exports through the help of agents and different
sales man (Morgan, Feng and Whitler, 2018). In context to Primark, clothes will be
exported to different nations which will increase the revenue of organisation along with
this it will enhance the brand name to organisation.
Multinational marketing: In this, organisation concentrates on not only
exporting of its product whereas it focuses on selling the products by marketing. In this
the name only make understand that company is making and applying marketing
strategies for more than one country. Here, targeted market is of more than one nation
where the business will be expanded.
Targeting demographics – In state of growing marketing strategies,
establishment mostly needs to target certain statistic or demographics. The success of
any marketing strategy is majorly depends on the type of population that is being
targeted and its characteristics, such as developed countries are more likely to adopt
western clothing whereas, under developed follow some of their traditions and culture in
terms of clothing as well.
Closed loop marketing: In these customers are being focused on, every
feedback and response of consumers are being monitored and checked. It is really
important to know that what is the need of consumer and whether the same is being
fulfilled or not. It will help the organisation on covering their target market. As when an
establishment is able to fulfil their consumer needs and wants than it can achieve its
goals and objectives.
P.2 Rationale to enter into international market and Modes of entry
Market entry strategy is a planned delivery and distribution methods of products
and services in a new target market. In the export and import of services, it is stated as
a development and management of contracts in a foreign nation. Expanding into a new
or foreign market is an effective strategy or practice that leads to growth and
development of the business. (Amankwah-Amoah, Boso and Debrah, 2018). It is a
technique that is used by companies to promote and distribute their goods and services
into various type of market internationally to generate more profit as compared to local
market. Due to development of technology, it is easy to target and enter into new
markets all over the world. Market entry strategy can be useful for each and every
business that requires a global presence or position and enhance their customer base
or profitability. Primark is trying to enter in all other countries so that it can expand its
stores in all other countries and can be a leading fashion brand. In order to In order to
expand their business in a new foreign market Primark can use the following methods
or strategies of market entry –
Exporting – It is a procedure of selling products and services produced in one country
to another. There are two kinds of exporting methods, direct and indirect. Direct exports
demonstrate the most basic form of exporting produced by a holding company,
capitalised in economies of scale in production sector within the home country and
maintaining effective control over distribution. On the other hand, Indirect export is a
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procedure of exporting through local or domestic based intermediaries of export. The
export does not have any control over its goods or services in the foreign country.
Franchising – This system can be defined as a process in which semi independent
organisations or business owners pay royalties or fees to a parent organisation in return
for the right to become identified with its trademark and to sell its clothes and services
as well as to utilise its business system and format.
Licensing – An international licensing contract or agreement assist foreign companies
exclusively and non-exclusively to produce product of a proprietor for a fixed term in a
specific market (Fatehi, Priestley and Taasoobshirazi, 2018). In this type or entry mode
a licensor in the home country makes limited resources or rights available to the
licensee in the new or host country.
Joint venture – There are five major objectives in a joint venture, risk or reward
sharing, joint product development and technology sharing, conforming to the rules and
regulations by the government. Other advantages of this strategy or method consists
distribution channel access and political connections that may depends upon
relationship.
Strategic alliance – It is a kind of cooperative agreements among various
organisations for example formal joint venture, shared research or minority equity
participation. The modern kind of strategic alliances is becoming highly popular and has
three different characteristics such as –
 Frequently between organisations in industrialised countries
 Its focuses on developing new products and services rather than distributing the
existing ones
 They are generally developed for short term period and non equity based
contract in which organisations are separated and independent.
Opportunities for Primark:
 Primark can gain more market share and enhance the goodwill of the
organisation by entering in to new international market.
 International marketing will also provide opportunities of increasing sales and
earning more profits by entering in to different markets.
Challenges for Primark:
There are challenges like high competition and local markets has already
covered higher level of markets and thus this challenge is to be faced by Primark in
international marketing.
L02
P. 3 Key criteria and selection process to use when considering
There are various methods or steps involved in choosing the best strategy to
enter into a new or foreign market. These steps are described as below -
 Step One – Identification of country
There are many countries in the world in which Primark can expand its market to
achieve growth and development. But it is also essential to conduct a country
identification which means that undertaking general overview of potential new markets.
There might be a simple match such as two countries may share same heritage for
example Australia and United Kingdom, or similar political, culture or religion such as
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Cuba and China. Generally decision at this particular stage is more straightforward and
futuristic. Therefore, Primark needs to identify all the potential markets in which it can
expand its business or organization.
 Step two – Preliminary screening
This is the second stage in which Primark needs to have a more serious look at
countries remaining after preliminary screening. In this stage, organization needs to
score, weight and rank countries on the basis of macro economic factors for example
exchange rates, current stability, level of domestic consumption etc. It helps in
calculating the of market entry costs. Some countries for example China need that
some fraction of the organization expanding or entering into the market is owned
domestically, this needs to be considered.
 Step three – In depth screening
The countries which are still in this process at stage three are considered as
feasible for market entry. Therefore, it is essential that detailed data or information on
the target market is acquired in order to take appropriate marketing decisions. At this
stage organization needs to deal with micro economic factors as well as local conditions
for example marketing research on the basis of marketing mix such as what prices
should be charged in the country, what distribution method will be most appropriate etc.
 Step Four – Final selection
At this stage final short list of potential foreign markets or countries is decided
upon. Mangers needs to reflect on strategic objectives or goals and look for a match in
the country at hand. The organization needs to look at similar domestic companies or
close competitors, that have already entered the market to get steady costs in relation
to market entry. Managers can also look at other countries that it has entered to see if
there are any similarities or information which can be utilized to help with making
decisions.
 Step 5 - Direct experience
Personal experience is also very important, Marketing manager or other
representatives needs to travel to a specific country in order to experience culture of the
country as well as business practices. On the basis of first impressions at least one can
determine in the ways the country is similar or not similar to the domestic market of
Primark or any other organization planning to enter into new market. In this final stage it
is important for the organization to be more careful with respect to self referencing.
P.4 Different market entry strategies, including the advantages and disadvantages of
each
To enter in international market different strategies are prepared by the organization in
order to get successful. Market entry strategy means that organisation plans in advance
about the distribution and delivery technique of services and products to the new target
market. These will be done by following ways which are described as under along with
its advantage and disadvantages.
Entry strategies Advantages Disadvantages
Direct exporting It will help the company in
making direct sales in
different countries. Thus,
sales and profits of the
In direct exporting no one is
liable and can be held
responsible for anything.
The biggest drawback in
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organization will be
increased.
direct exporting will not
provide any expert advice.
Sometimes this will result in
losses of organisation
Joint ventures Different unions of
Marketing and technological
can damage large of small
companies, Distribute risk
Danger of worth has been
organization reduced
overtime, Potential for battle
or conflicts in operations
between organizations
Licensing from others Reduced financial risk and
rapid access to technology
(Hansen, McDonald and
Mitchell, 2017).
Lack proprietary technology
and related skills will be
dependent on licensor
Internal development Current and existing
resources are being used,
Avoid getting cows mainly if
not familiar with product or
market.
Uncertain prospects and
Time lag in internal
development
Licensing to others Fast access to market and
low risk is involved along
with less cost
Complete Dependency on
license is the biggest
disadvantage
It has been recommended To Prime mark that an organisation should adopt joint
venture strategy, as this will help business entity in increasing its competitiveness. It will
also support an enterprise in gaining competitive advantage in the market. The biggest
drawback of Joint venture is that there are high chances of conflicts which might have
negative effect on business performance and also on Brand image,.
L 03
P.5 An overview of the key arguments in the global versus local debate.
As per Hunt (2018), International marketing is all about making plans and
strategies for entering and covering global market. It will give expansion and growth to
Primark and will help in creating a brand image of the company. When an organisation
chooses to sale its products globally it will have to adopt different marketing strategies
and it is costly process. On the other hand, As per Hollender, Zapkau and Schwens
(2017), Sometimes, International marketing fails to achieve the targeted goals in global
market. It is really difficult to understand the needs and demands of people globally. As
every nation has their own culture, taste and preferences. It Is not easy to understand
the culture of nation and design clothing for people accordingly. In this industry it is
tough for marketing manager to make decisions for global market as fashion changes
very quickly.
On the other hand as per Stoian, Rialp and Dimitratos (2017), local marketing is
a process where local market that lies within the geographical boundaries of the nation
will be targeted. In this company understand the local market and make clothings
accordingly. Here a small area is covered where marketing cost is also low as in
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comparison to international marketing. Domestic marketing is all about selling good and
services in that nation where the company operates.
Basis of Differentiation Domestic marketing International marketing
Meaning It is that kind of marketing
which is done in the local
area or is limited up to
geographical boundaries of
the nation.
Whereas, in this every
process of marketing
activity is carried out of the
nation. Goods and services
are sold in another counties.
Area covered Here a limited and small
area is covered that is
within the nation where the
company operates
It is comparatively large
than local area marketing
Government interferences Government has less
involvement and limited
rules are required to be
followed in domestic
marketing.
It is not easy to do
international marketing as
many laws and regulations
are required to be followed
by companies. Government
has made many policies
and laws for carrying
international business.
Business operations Within the single country
where the company
operates
More than one country
Use of technology Limited use Organization do use of the
latest technology as in order
to survive in international
market.
Risk factor Risk is Less in domestic
marketing
On the other hand, Very
high risk is involved in
international marketing.
Time involved It requires less time to carry
domestic marketing
strategies.
It requires higher time to
understand and implement
marketing strategies in
international market.
From the above difference it has been determined that international marketing is
more complex than domestic marketing. Higher experts and deep knowledge about the
market is required to expand business at international level. It is a time taking process
along with that higher cost is involved in the same. Whereas, in domestic marketing it is
comparatively easy but this too is not as easy as it seems to be. Proper planning and
procedures are required to be followed in marketing. As, it is a critical function of every
company and growth, sales and profits are entirely dependent on marketing function of
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organization. Such as developed countries are more likely to adopt western clothing
whereas, under developed follow some of their traditions and culture in terms of clothing
as well.
P.6 How product, pricing and promotional distribution approach differs in a variety of
international context
Primark is a clothing brand which has different planning of opening its more stores in
different countries. This will be done after considering the 4 P's of marketing which
differs in case of global context from local marketing.
Product: In case of basic local marketing, product are being made and manufactured
after considering the needs of people. But in case of international marketing, Clothing
brands not only consider their needs before launching their new addition in the market.
Whereas, marketing manager takes care of religion, culture, background of problem,
economy of the nation etc. Every country has their own customs which are to be
followed by people who resides there. So in international marketing all other aspects are
analysed and after that product is being manufactured and launched in international
market.
Price: In international marketing, prices are being decided after analysing various
factors. As marketing in international market involves huge cost, organisation can not
ignore that cost. It will be the part of price of product. Other than this, various other
expenditure are involved which are not in case of domestic marketing. Like cost of
import and export and import duties, exchange rate fluctuations etc. This all factors are
not required to be undertaken while determining the prices for domestic market product.
In addition to this, competitors prices is such an element which can not be neglected by
Primark.
Prices are also being determined on the basis of many aspects. It is not possible
to make pricing policies after considering a single aspect. All the factors are considered
and after that prices for international markets are being determined. In context to
Primark, it is being assured that prices should be such that it should not be higher than
competitors pricing. So that market cam be covered in maximum possible way.
Promotional distribution: In international marketing, company has to think of such
promotional programmes and strategies which can help in covering the international
market. This is the most important component which helps in achieving goals and
objectives. Whereas, in local marketing it is not required to form much higher strategies
and promotional cost of the organisation also comes less. Due to the high cost of
promotion and advertising in international marketing, pricing of the product too becomes
higher. There are different ways of promotion in international marketing, some of them
are as follows:
 Advertising: It can be done through different ways and that mode is chosen as
per the country and its culture. Planning is made in such a way that it can cover
maximum possible target market. Whereas, most common ways of advertising
are radio, television, social media sites and billboards etc.
 Pricing promotion: To make people aware about the product, Primark is
planning to sale it by way of giving its designer clothes at comparatively low
prices than other international brands. Other than this, different offers are being
implemented by the company like discount offers on seasonal clothing or
different vouchers are given to customers so that they can visit next time.
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 Customer taste and preference: In international marketing, customer is the
basic target of organisation and everything is done on the basis of consumer.
Their taste, culture, purchasing power and preference are kept in mind before
deciding any mode of promotion. As the promotions are made to attract the
consumer and increase the sale of company.
All the above factors highly differs in International context as it requires more efforts and
policies to enter in International market. A study on every aspect is required to be done
in order to succeed globally. So to attain higher success the Latest fashionable clothes
will be launched by the company so that it can help in survive in the competitive world.
As this is that sector where every one likes to buy the latest trending clothes
LO4
P.7 Analysing various international marketing approaches for Primark.
In order to expand business in international market, Primark will follow these
approaches majorly. These approaches will guide the company in determining and
analysing about the business in international market. Following are approaches that are
being followed by Primark.
Centralized Approach: This approach says that top level management of the company
will take all the major decisions related to marketing. All the planning for the purpose of
marketing is made by marketing manager along with the top level management. This
approach says that slower growth is required to improve the marketing function of the
company. Primark is not focusing on implementing complete centralised marketing
system as the entire top level management will handle all the decision and it will be a
rigid process to carry. But part of marketing decisions are centralised as higher
authorities have better understanding of market. It has helped the company in covering
large area of international market. In addition to this, in this approach Primark has to
grow in house capabilities of marketing along with scalable process. So it can be
concluded that centralised marketing approach is most useful and followed when:
 Marketing department of the organisation is highly experienced and knowledge of
working with international market. Because it needs very higher knowledge with
those people who are entirely involved in decision making process.
 This approach is followed when organisation believes in making direct exporting.
In this situation, centralised approach of marketing is very well applicable and
can be followed.
 Management to whom the complete department of international marketing is
given should take help of experts. As they will guide about the local market of
different nations where the organisation is planning to expand its stores.
Decentralized Approach: In this approach all the decisions related to marketing are
not only took by higher authorities. Whereas, in this a team is allotted to every nation for
the purpose of international marketing. They make analysis of the targeted market
where company wanted to grow its business. Primark will follow this approach as it
gives entire picture of international market. It is the most effective approach of
international marketing which will guide and help Primark in growing internationally.
This approach is applicable and works best when company has following aspects of
working :
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 Company has such articles or products where they are in highly regulated
industries.
 In other market products will be solved in order to gain maximum sales from that
market.
Above both the approaches are useful in doing marketing at international level. But,
decentralised approach is more appropriate as in comparison to centralised approach.
As it helps in growing more fast and effectively in international marketing.
p.8 .Compare home and international orientation and ways to assess competitors,
outlying the implications of each approach.
Market orientation is that philosophy of organisation where the company majorly
concentrates on meeting the needs and wants of people. It is done by company with the
help of product mix. Both the orientations are different from each other because people
have different wants and needs in home country (Jiang, Ananthram and Li, 2018).
Whereas, they expect completely different in other nations. International marketing is
way tough than domestic marketing and in both kinds of marketing different strategies
are required to be followed. International expansion of business is not as easy as it
seems to look, high and deep research on every aspect is required to be made to
expand business globally. So international orientation is costly whereas, domestic or
home orientation is comparatively cheap. When deep market research is made at
international level high costing will come and it is a time taking process as in
comparison to home orientation. In addition to this, local area marketing can be carried
by marketing department of the company which includes junior employees as well. On
the other hand, international orientation and research will be made by experts as it
requires detail knowledge and expertise to understand the market.
There are many ways to access competitors in international market, in which some of
them are as follows-
 To access the same prices of competitors are required to be taken in to account
and their products along with quality will be determined in detail. So that Primark
can make better quality clothing to cover international market. Quality of product
is something that can not be ignored. As in clothing no person compromises with
their comfort and quality. People pay higher to brands just in order to get the best
quality products (Morgan, Feng and Whitler, 2018). In context to Primark, it is the
major concentration of company to improve its quality so that it can make its
more sales in international market and achieve its targets, goals and objectives.
 The Latest fashionable clothes will be launched by the company so that it can
help in survive in the competitive world. As this is that sector where every one
likes to buy the latest trending clothes. Company has to focus on studying the
market and latest trends and should make clothes accordingly. When a brand
sales latest trending clothing and attires it helps in attracting consumer.
Competition can also be accessed by using this policy because latest trending
things attract people and allow them to purchase. So in order to access the
competition Primark has hired different fashion designers who can guide to the
management of the company before launching in international targeted market.
 Before launching the new type of clothes, taste and preference of the consumer
will be determined. And all the decisions will be taken accordingly. As every
nation has their own taste and culture and they wear clothes accordingly. So to
9

access the competition internationally organisation needs to understand the
same. It will attract people as they will get such clothes which are as per their
taste and culture.
Conclusion
From the above report it has been summarized that International marketing is all
about flowing goods and services in other countries. In this company's sale their
products globally in order to increase sales and growth of the venture. It involves higher
risk along with that it is a time consuming process. In addition to this, all the factors of
marketing mix are considered while international marketing. Every element differs than
domestic marketing. Furthermore, there are majorly two approaches of analysing
international market in which decentralisation approach is being followed by Primark.
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