SOSTAC Framework: Analyzing Primark's Entry into the Indian Market

This report assesses the viability of Primark, a multinational fast-fashion retailer based in Ireland, entering the Indian market using the SOSTAC framework. The situational analysis employs PEST analysis to evaluate the political, economic, social, and technological factors in India. Key objectives include achieving growth in the Indian retail sector and ensuring customer satisfaction through a diverse product range at reasonable prices. The strategy involves utilizing Ansoff's market development approach, offering existing products in a new market. Tactics encompass competitive pricing, effective distribution channels, and social media promotion. Action items focus on marketing activities tailored to Indian consumer preferences, while control measures rely on Key Performance Indicators (KPIs) to monitor strategic operations. The report concludes with references to relevant literature on international expansion and corporate social responsibility.

Primark

Table of contents
INTRODUCTION 3
SOSTAC Model 3
Situational Analysis 3
Objectives 4
Strategy 4
Tactics 4
Action 5
Control 5
REFERENCES

INTRODUCTION
Primary is one of the multinational organisation based in Ireland. It is
a fast fashion retailer of the market and their headquarter is located in
Dublin. This organisation was developed by Arthur Ryan to established their
place ion retail industry. There are number of products are offered by the
company such as beauty and home-ware, latest fashion at reasonable prices.
This particular organisation does not operate their business in India so that
the SOSTAC model are applied on this organisation in this report.

SOSTAC Model
It is related to those strategic model which is developed in the year
1990 by PR Smith with an aim of understanding the concept of business
planning and marketing. The application of this framework on Primark are
given below:

Situational Analysis
The factors which is present outer environment of the organisation
but it has serious impact on the business of the company. To analyse the
external factors of Primark, PEST analyses is used.
Political The political ideology of Indian government are positive for the expansion of any company in their
markets. The rules and regulations becomes easy and provides many modes of entry to Primark.
Economic The economy of India is one of the most fastest growing economy of world which has many
opportunities for growth of business.
Social The culture and tradition of India is diverse so the management of Primark need to develop their
strategies according to them.
Technological There are no of technologies are developed in the country day by day which should be used by company.

Objectives
• To achieve growth in Indian retail by holding considerable share of industry.
• To achieve the satisfaction of customer with help of diverse product range at reasonable
prices.
Strategy
The main aim of Primark is to established their business Indian market which is only
possible only due to development of different effective strategies in the market. Ansoff can be
helpful for the company in this regards because it is one of valuable growth matrix which
provide number of strategies. The market development strategy are used by Primark under
which they offer their existing product range in new market.

Tactics
Products: Provides different types of fashion wear such as home wear, men wear, children wear and many more.
Price: Primark follow competitive pricing policy to sell their product
Place: Uses effective channels of distribution.
Promotion: Social media and other online channels of marketing are used.

Action
• It is essential for the management of Primark to focus on number of marketing
activities which helps them to reach at more customers in the market. It is important
for them to analyse the taste and preference of new country.
Control
• For establishing effective control in Primark on strategic operations in its organisation
it needs KPIs. Key Performance Indicator is an important method for measuring the
effectiveness of controlling as well as efficiency in a business organisation.

References
• Ledesma-Chaves, P., Arenas-Gaitán, J. and Garcia-Cruz, R., 2020. International
expansion: mediation of dynamic capabilities. Marketing Intelligence & Planning.
• Pattnaik, C., Singh, D. and Gaur, A.S., 2021. Home country learning and
international expansion of emerging market multinationals. Journal of
International Management, 27(3), p.100781.
• Xu, X., Zeng, S. and Chen, H., 2018. Signaling good by doing good: How does
environmental corporate social responsibility affect international
expansion?. Business Strategy and the Environment, 27(7), pp.946-959.

Thank you