Primark Marketing Management Report

This comprehensive report provides a detailed analysis of Primark's marketing management strategies. It begins with an executive summary and introduction, followed by a historical overview of the company. The core of the report delves into Primark's marketing activities, tactics, and strategies, including target market analysis, product positioning, product life cycle stage assessment, demand analysis, and a thorough SWOT analysis. The report then explores Primark's corporate and divisional strategic planning, utilizing the Boston Consulting Group (BCG) matrix for business portfolio analysis and examining growth strategies, strategic alliances, and the application of Porter's generic strategies. A dedicated section analyzes Primark's sales management elements, including sales channels and planning. The report concludes with recommendations for Primark's future marketing endeavors and a summary of its findings. The report draws upon various academic sources and online resources to support its analysis.

Table of Contents
EXCEUTIVE
SUMMARY......................................................................................................................................
.............. 3
1.
INTRODUCTION.............................................................................................................................
.................................. 3
2. History of the
Company.........................................................................................................................................
............. 4
3.Observation, identification, analysis and interpretation of marketing activities, tactics and
strategies................. 4
3.1 Targets of the product / services / company or
organization............................................................................... 4
3.3 Current product / service of life cycle stage of the
company.............................................................................. 5
3.4 Kind of demand products/ organization
facing...................................................................................................... 6
3.5 SWOT Analysis of the
company.............................................................................................................................. 6
4. Corporate and Division Strategic
Planning..................................................................................................................... 7
4.1 Business portfolio analysis on the SBU choosing any one
portfolio................................................................. 7
4.2 Strategies for Growth Company can
follow........................................................................................................... 7
4.3 Is the company following any strategic
alliances.................................................................................................. 8
4.4 Is the company or organization following one of the Porter's Generic
Strategies........................................... 8
4.5 Sales Management
Element....................................................................................................................................... 9
CONCLUSION.................................................................................................................................
..................................... 10
REFERENCES................................................................................................................................
....................................... 11

EXECUTIVE SUMMARY
For example, if the Gazprom Group do the business whether it is domestically or
internationally and by that it can not be overestimated. It is a dominant supplier in the
gas markets and according to that it is a big influence to these markets. To find the
Western sanctions which is imposed on Russia it can be find by using the PESTEL and
SWOT analysis.
EXECUTIVE SUMMARY
Primark has emerged has one of the fasting growing company in clothing and apparel
segments and giving tough competition to brands like Zara and H&M. It is known selling
quality product at a low price. This attracts a lots of customers to it but there are some
things in which it lacks for example it does not advertise himself so this can be
considered as disadvantage because almost all the world is on internet and are uses
technology for communication. A detailed study has been done so that it could manage
its marketing, various strategies will be adopted to give a pace to the growth (Hollensen,
2015). For all this the background of the company need to studied about that from
where it has evolved, what are its targets, goals of its products and services, how to
create a position in the minds of the people, deciding the product price and to what time
it will sustain in market through discussing its life cycle. Demands of its products
according to the fashion trends and SWOT analysis can be done to know the strengths
and weakness or other external factors affecting its growth. How a business portfolio
can be analysed through use of Boston Matrix Model and how important is the strategic
alliance to boost the sales and performance will be discussed. The company has
experienced rise a rise in its sales, it was expected that due to Brexit it will fall down but
there was no impact on its sales. Its sales expected to be 11% ahead of the last year
and it has also increased its retail selling space by 0.8m sq ft. Primark's Oxford street
stores sales went upto 10% high. This all will bring a report which will be a complete
summary of the company.
INTRODUCTION
Marketing Management is the term used to define the situation in which the
market of the company is managed through adopting various techniques. The person

who manages the market or the operations of the company is called manager. In this
activity inspection, tracking and review of the company is done to find out the factors
responsible for the growth of the firm. It has various scope depending upon the size of
the industry in which it runs its business. To make marketing plan all the things will be
considered like its SWOT analysis, Pestle analysis, socio cultural factors and at what
situation what tasks will be performed. Marketing management skills will be used to
maintain the coordination and workflow in the organization (Wilson and Gilligan, 2012).
Brand analysis, creating marketing strategy, implementation of the plans, allocation of
the funds, feedback and measurement of the strategies will be the step which will be
followed in sequence and will be added in the marketing management strategy. The
scope of the research is to find out how the markets are managed by taking the
scenerio of Primark Company and all the reserch which are taken in the consideration
are based on the facts and statics available on the internet.
2. History of the Company
Primark is a international subsidiary Ireland based company who deals in the
clothes of the children, women's wear, men's wear, footwear and other accessories.
The company was founded in 1969 by Arthur Ryan in Ireland. Success in Ireland led to
expansion to the United Kingdom. It sells clothes at the low cost in comparison to the
market price and has clubbed with the big brand like Zara and H&M. Primark provides
many offers to the customers and are setting new standards in the fashion industry. It
has also started a cosmetic line with the name “PS Pro” and has high quality products at
low price (Wang and Pizam, 2011). Taking about its area and structure, it has over
approx 320 stores in 11 countries mainly situated in European countries and its largest
store is situated at Manchester, England acquiring the area of 155,000 sq ft in three
floors building. 68000 employees are working for the company in 325 locations of
different parts of the world and Associated British Foods is the parent organisation of
this company. It had been into various controversies where its image or reputation has
gone done like providing immigrants labour half wages and in 2014 the prisoners were
forced to work for 15 hours per day to make clothes to export.( use online refrencing)

3.Observation, identification, analysis and interpretation of marketing activities,
tactics and strategies.
3.1 Targets of the product / services / company or organization.
Every company has a plan or strategies on which they work to achieve desired
goals. Making strategies helps them to give an advantage in comparison to others and
make them achieve profits. The aim of the strategy is to define how the targets will be
achieved so for that the target should be relevant and before setting any target a
background study is must. Primark has also some goals for vision on which they are
running their business and timely modification on them is done. The main vision of the
management of the Primark is to provide quality products to the buyers within a
affordable price. They need to focus on the promotion of their products and services
through different ways (Moutinho, 2011). Its competitors might be selling the quality
products but they are not compromising on the area of the price or cost this gives an
advantage to the company over its competitors. Through this vision they have a mission
to promote the culture of value for money. Items are differentiated on the basis of age,
sex, lifestyle and the income level of the people and through this they want to reach to
the all segments of the society from a middle class to the upper class. Primark has
target of opening its stores in US market and will be investing 200 million punds in
opening its stores in Boston, 10 stores in north east. Their targets will be youth people
who aim to wear the branded clothes but they cannot afford the big price so by
introducing their brand in US they will encourage young people to buy branded clothes
at low price from their stores. Kohl's, J.C. Penny and Macy's would be Primark's main
competitors because they also follow the same concept as Primark.
3.2 Positioning of the product / services / company or organization.
Firm or brand positioning is a process through which the company occupies its position
in the minds of the people mainly, other than this the position in the market is also called
as the brand positioning. Through this Primark could analyse its performance and on

the behalf of that they can give certain tools which will be used in the marketing
communication of that brand. Primark has a vision of selling quality apparels at
affordable prices so this vision needs to be set in the minds of the consumers that
certain company exists in the market which sells products at relevant prices. This thing
can be achieved through making communication to the people through advertising and
utilizing other modes of media and promotion (Beverland and Lindgreen, 2010). They
have come with new strategy on regular basis which supports its vision or targets and
need to make sure they don't get away from their primary vision. Primark has set up a
mindset to the people that whenever they want to but the clothes their company will be
the first priority or preference. Primark holds a key position in the clothing business in
UK but taking about the European countries where it has all his stores. It is found out
that it is not doing well in Spain and the reason behind is that it lacks the coordination in
Spain. In Uk it is the biggest clothing retailer by volume and their sales go up in the
summers as people buy more cheap clothes in this season.
3.3 Current product / service of life cycle stage of the company. (good)
A product is the touchable item which has size, shape or colour etc. we could combine
these terms and can say that the product has a physical existence. Primark has a
variety of the product which include item for the children, men, women, babies,
footwear, beauty products and some other accessories. Managing market through a
market plan it also include information related to the product and what strategy the firm
will adopt in this area. Primark is know for his low prices quality products so they needs
to focus on various factors before deciding the price of any item. Factors like where the
company is existing that means what kind of the environment that area have if it has
more population of the middle class than they will try to provide medium range clothes
with low cost and if the elite or the high class people resides there than they will come
out with their best products with the actual price. Product price is not only the factor
which they should ponder upon because if they are selling a jeans or any apparels
which are outdated in the fashion industry at low prices than no use of it people will
hardly buy it (Leonidou and Leonidou, 2011). Following the fashion trends and deciding

the product life cycle will help company sales go high. There are different stages in the
Product Life cycle which includes introduction, growth, maturity and decline stage. In the
introduction stage, as it is a most expensive stage and help them in launching a new
product. In the growth stage, the employees of the firm have to provide best product so
that they can increase the sales and generate more profit. At the time of maturity stage,
the product is established as well as aim of manufacturer so that they can maintain
market share which they are building. In the declining stage, product in the market will
start to shrink and this is known as declining stage.
3.4 Kind of demand products/ organization facing.
Primark is experiencing a ideal situation in its business this is because they are facing
full demand situation. A full demand time comes when the purchase of the product is
almost equal to the ability of the company in manufacturing or producing a item. Primark
has to make assumptions before so that they could attain this situation and forecasting
of the demand can be done through analysing the market trends for example, Ireland
will be facing summers after two months so the company has to come out with the
summer apparels and start their production early (Chan, He and Wang, 2012). Full
demand also symbolizes that the customers are happy from the company's products
and responses. It also has to face various challenges to maintain this situation and
environment so for this they regularly need to research the trends.

3.5 SWOT Analysis of the company.
SWOT analysis is the way through which a company identifies its strengths,
weaknesses, opportunities, and threats. It is considered as a very useful tools for any
organization.
Strengths Weaknesses Opportunities Threats
It has 320 stores
in 11 countries.
Employed over
68000 people and
offers job
opportunities on
regular basis.
It provides quality
products at
affordable prices
which attracts
The working
condition or
environment has
always been
criticized due to
violation of the
labour rights.
The company
follows a policy of
not advertising
this gives a
advantage to its
Competition with
different other
companies like
Zara, Matalan and
H&M.
New stores need
to be opened in
other countries
than Europe this
will expand its
market.
Setting their
Almost all of its
shops are in
Europe so its all
sales depend
upon the market of
the EU which is
facing a crises at
this movement.
Their supply chain
can be affected by
the natural
calamities so they

more customers. competitors. footprints in
sportswear
segments.
They could provide
high quality
products to the
people who are
very much fashion
conscious.
need to maintain a
coordination with
the demand.
4. Corporate and Division Strategic Planning
4.1 Business portfolio analysis on the SBU choosing any one portfolio.
For analysing a business portfolio certain techniques Primark can use and here we will
be using Boston Consulting Group (BCG's) matrix (Grönroos, 2011). The BCG matrix is
the best way for portfolio planning. It has divided company's business as low or high
along with other two dimensions that is its share of the market and the growth rate of its
industry.

According to the matrix; Stars should be funded and encouraged to grow, dogs should
be sold or left out. question marks should be solved through hiding or selling these
units, and finally cash cows should be “milked” to supply funds to more promising
business the Primark should invest more into the smaller companies or tie ups with
those to expand their business. Primark can use BCG matrix to find out the ways
through which they can grow or we could say this helps them in analysing their product
line. Putting matrix in Primark, primark should come out with the opening of more stores
so that they could expand themselves and this can be taken as stars. In the question
mark primark should stop selling those items which are not in demand or their sell is
very low. Cash cows can be the investors or the shareholders who puts money so tehy
should be encouraged more and more. Primark should stop feeding or stop those shops
which giving them losses that can be dogs for them. The employees of the company
supply the appropriate products and services which includes mensware, kids, women

and night wear and it should be in a best quality so that consumers can not face any
issue.
4.2 Strategies for Growth Company can follow.
Primark can adopt various strategies for growth because implementing certain things
with a proper planning yields better results. Strategies like intensive growth can be put
into the action plan in which it can grow by expanding its current products or its recent
market reach. For example, The business entity having many stores in the international
market and they are deciding the many stores in another countries so that they can
expand the business and for that the employees have to use or adopt appropriate
strategies which include Market penetration startegy, market development strategy etc.
They have to deliver qualitative products which helps business enterprise in increasing
the sales and generate more revenue. In market penetration strategy they can focus on
selling their current products into the existing market so that they can gain a higher
market share. Market development strategy involves identification of the new market
segment and develops it for currents products and it basically has a aim of targeting the
non buying customers. Product development strategy is implemented when the profits
of the company is going down and after that a new product is developed and introduced
into the newer market. Diversification is almost same to the product development
strategy in this a new strategy is adopted to enter into the new business. Integrative
growth is a strategy for growth in which a firm occupies other things of the chain of the
distribution of which it is a part. These chain include backward integration, forward
integration and horizontal integration.
4.3 Is the company following any strategic alliances.
Primark has partnerd with Associated British Foods and their partner are in the business
of foods. Primark have to collaborate with other company and through help of them they
can expand their business in other continents other than Europe, they have to expand
the business and come out with new market other than the clothing line. It has to
collaborate with the other clothing brands like Zara and H&M which are considered as
its competitors.

4.4 Is the company or organization following one of the Porter's Generic
Strategies.
Primark is do following Porter's Generic Strategies through reducing the price of its
products. They are known for providing the quality products at low prices. It could
accept other strategies also at the same time after the cost leadership strategy it is
adopting the third generic that is “focus”, continuously they are just focusing on the
same segment through which they started their business. The cost leadership strategy
which Primark follows aims at attracting customers because people want to buy the top
brands at lower prices and Primark is helping them in doing so. But there has been
compliants that the qualities of these clothes are not so good. So by looking at the
business model Primark has clearly mentioned that they buy clothes from top brands
and are those clothes which are old not their manufactured date is around a year ago.
4.5 Sales Management Element
4.5.1 9
Primark normally operates its function in B2C commercial translocation. Within the sale
market it uses two ways that is retail and direct to consumer channel for its business.
FMCG is the fast moving consumer goods which are sold quickly at a low cost (Vargo
and Lusch, 2011). Whereas the non durable goods are the goods which has no such
life. For example the food items will fall in the category of the non durable goods and the
are fast moving consumer goods. Clothes, apparels and other accessories fall in the
category of the durable goods because they can last for years depending upon the
person who is wearing it. So through this we could say that Primark has durable goods
(Marshall and LaMotte, 2011). It sells both the luxury and premium clothes at its stores
this could be found out through the fact that it has competitors like Zara and H&M.
4.5.2

A unorganised process will always go in lose so Primark try to make a sales
plan that they follow in in their sales. Success of the organisation depends upon the
sales planning element because through it they could have a clear idea that how
they will be selling those products, what areas will be targeted, what customers they
will be targeting and what sale revenues they are expecting.
As the company operates almost all his stores in europe so these factors
generally does not affect them but at some places like the language and currency
might affect their sales. For example, French and Spainsh people don't speak
english they use their own language so they have to appint salesman or officials
who could understand their language and as the Brexit happened the value of
currency went down so the sales in Spain has also gone down.
Primark total turnover in the past fiscal year grew to 5.95 billion pounds and
performing well and didn't had faced crisis in the period of Brexit.
It is facing a upturn as it has decided to open its new stores in US and
countries like Netherland and Germany which are situated in Europe.
Through expanding in these countries it will definately show its positive results
at the end of fiscal year because already it is on the top spot and expansion will lead
to more production as well as its sale.
Various media reports came which broke the news that Primark is practing
child labour by employing childs in factories in India and Bangladesh. So they have
ruled out those allegations by annoncing that anyopne could visit those factories an
if they finds it they are open to court.
 Primark does not have a online selling platform so this is one of the loophole
as today almost all its competitors are going online. Although people could
create a wishlist on their website.