Marketing Intelligence Report: Primark's New Shoe Product Launch

This report provides a detailed analysis of Primark's marketing intelligence, focusing on consumer behavior, market research techniques, and strategies for launching a new shoe product. It examines the stages of the consumer purchase decision-making process, the importance of understanding buyer behavior, and factors influencing buying decisions. The report evaluates different market research techniques, including primary and secondary data analysis, and proposes a market research plan for the new shoe product launch. It also includes a competitor analysis, SWOT analysis, and techniques for assessing customer response through a customer satisfaction survey. The report concludes with an overview of the fashion industry in the UK, competitor analysis, and an evaluation of opportunities and threats for Primark's new product, culminating in a review of the survey's success.

Marketing Intelligence

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Main stages of the purchase decision-making process for an individual consumer..............1
1.2 Importance of understanding buyer behavior and related theories........................................2
1.3 Three factors which can affect the buying behavior..............................................................3
1.4 Evaluating the relationship between brand loyalty, corporate image and repeat purchase...4
2.1 Evaluating different types of market research techniques that Primark GB can use.............4
2.2 & 2.3 Effective use of sources of secondary data to achieve marketing research objectives5
TASK 2............................................................................................................................................6
2.4 Prepare market research plan to launch a new shoe product.................................................6
3.1 Assessment of the size and the trends for the fashion industry in the UK............................7
3.2 Competitor analysis for the Primark GB Company...............................................................7
3.3 An evaluation of Primark's opportunities and threats for a the new product.........................8
4.1 Techniques for assessing customer response.........................................................................9
4.2 Design and complete a customer satisfaction survey....................................................10
4.3 Review the success of the completed customer satisfaction survey....................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

LIST OF FIGURES
Figure 1: Buying behavior of an individual customer.....................................................................2
Figure 2: SWOT Analysis...............................................................................................................9

INTRODUCTION
In the modern era, marketing intelligence emergence is an important tool in the context of
collecting best information from the market about services and products offered by firms to their
customers. As per the given case scenario, Primark which is a very famous retail clothing store
chain was taken. Enterprise is famous for selling fashionable clothes at the low cost as compared
to other brands present in the market. Main aim of the report is to provide details about market
research techniques and their benefits for the business operations of Primark in competitive
arena. By conducting the present research, investigator would be able to understand the buying
behavior and the decision making process of customers.
TASK 1
1.1 Main stages of the purchase decision-making process for an individual consumer
Buying behavior of an individual customer can be understood with the help of following
steps:
Need Recognition: In this stage, market research department of enterprise emphasizes on
understanding the needs of customers and their perceptions about services and products offered
by company to them (Harker, 2008) For example, if customer wants to purchase clothes then
he/she need to firstly consider the features of products such as price, brand and other features
before purchasing the clothes.
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Figure 1: Buying behavior of an individual customer
Information search: After collecting information about products, customers take guide
from his/her relatives and friends about the products and services offered by Primark.
Evaluation of Alternatives: On the basis of taking suggestion from their relatives and
friends, prices and other features of clothes need to be compared and then customer will take
decision to purchase clothes as per his needs and budget (Wilson and et.al., 2010).
Purchase decision: After reviewing all alternatives and getting satisfied with the price,
brand and other features of products, customer will take final decision regarding from whom to
buy and when to buy.
Post-purchase decisions: After purchasing the product on the basis of meeting all needs
and by getting satisfied with the product, he/she will recommend it to their friends and relatives
for usage.
1.2 Importance of understanding buyer behavior and related theories
The term buying behavior can be explored in terms of gathering information about
purchasing habits of individuals or groups towards products and services. Brosekhan and
Velayutham (2011) stated that knowledge of consumer behavior helps the marketer to
understand the way in which consumers think and respond about services and products. By
considering stimulus response model and generic theories, researcher can be able to understand
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the customer buying process and need to examine the factors that can affect the purchasing
decisions of them (Brosekhan and Velayutham, 2011).
Generic theory of Buying Behavior: In this theory, customer’s main focus is on decision
making rather than other factors. The product purchase steps include needs and identification of
products; alternative evaluation and taking final purchase decision before taking final decision
have been followed by customer while purchasing products. For example, after when changes
arise in fashion and lifestyle factors, customers will take decision to buy new clothes and
suggests their family and friends also (Lacobucci and Churchill, 2009).
Stimulus response model: This theory helps Primark to understand the impact of market
stimuli such as product, price, place and promotion on customers. Besides that, other factors
which include political, economic, social and technological factors have also been considered by
customers before taking decision regarding purchasing the product (Calof, 2006).
1.3 Three factors which can affect the buying behavior
Consumers are the kings of markets and it is essential for enterprises to fulfill the needs
of them because customer buying has become an integral part of strategic market planning.
Sociological, psychological and personal are the main factors which can affect the buying
decision of an individual customer.
Sociological factors: In the present marketing scenario, peer groups and family are the
major social factors which highly affect the thinking of customers and their buying behavior as
well. For example, upper class people in society purchase the products which suit with their
personality and lifestyle (Forrest, 2002) On the other side, lower class people buy cloths by
considering the price and peer group suggestion factors.
Psychological factors: Apart from the sociological factors, other factors which include
motivation, perception, learning attitudes and self –belief can influence the buying behavior of
customers towards product.
Personal factors: In the modern arena, as per the change arise in lifestyle and fashion,
needs and demand of products also get influenced. In addition, person desires and perceptions
about the firm product are also affecting their buying behavior (Wilensky, 2015). For example,
some customers want to buy products from local shop and some desire to purchase the cloths
from branded shop.
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1.4 Evaluating the relationship between brand loyalty, corporate image and repeat purchase
Brand loyalty mainly deals with meeting all needs of customers and their desires which
are attached with the particular brands. On the other side, brand image of product can be
explored in terms of creating brand image of products in the canvas of the mind of customers.
Customer's satisfaction towards purchasing products can be defined in terms of repeat
purchasing. All three terms include brand loyalty; corporate image and repeat purchase which are
interrelated with each other (Matsuno and Mentzer, 2015). For example, if firm will be able to
maintain its corporate image in the mind of customers by delivering quality of products to them
within stipulated time period then customers will become loyal towards the firm. It will motivate
them to become a regular customer of firm and to do repeat purchase of products from
enterprise.
Merit 1: For example, Primark can be taken which has created positive brand image in
the mind of customers by using CRM and social media analytics techniques at workplace
(Conduit and Mavondo, 2015). Firm was able to create its corporate image and brand loyalty
through increasing the flexibility and convenience of customers during purchasing cloths.
2.1 Evaluating different types of market research techniques that Primark GB can use
Different types of market research techniques that Primark would use can be evaluated
like:
Market research: In context of taking appropriate decisions and reducing the risk, market
research technique is used by the enterprise. By analyzing the information, management of
enterprise would be able to understand the current trends and can predict future trends of market
and customers so that their demand can be met within stipulated time period (Wilson and et.al.,
2010). Market research provides opportunity to enterprise to gather the information about
individuals or organizations by using the statistical and analytical methods. In context of
gathering information from customers to know their perception, Primark can use primary and
secondary data collection approaches. In this regard, different techniques such as interviews,
survey, focus groups, observations and field trials can be employed. Despite of that, in order to
collect in-depth features and dimensions of the market, researcher can use qualitative and
quantitative analysis techniques (Conduit and Mavondo, 2015). Besides that, focus groups,
interview, observation and experiment are the other major approaches which are used for
gathering information about customers.
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Quantitative technique: For the purpose of collecting numeric nature data, enterprise can
apply this technique at the workplace. In addition, excel, SPSS, R programming and SAS
statistical tools can be considered to analyze the quantitative data. Primark can conduct survey
by using interview and questionnaire techniques (Drummond, John and Ashford, 2007).
However, a lot of time and cost related factors are associated with the use of this method.
Qualitative data analysis technique: On the other side, in qualitative data analysis,
fashion brand can collect information from already present records and past studies of
researchers (Alexander, Khonglah and Subramani, 2015). For this purpose, thematic analysis,
interview and literature review approaches can be employed.
2.2 & 2.3 Effective use of sources of secondary data to achieve marketing research objectives
Secondary data: In this method, investigator can collect data from past studies and already
available information related to the same field. By conducting review of literature, researcher
would be able to understand the perceptions of customers towards the products of Primark.
Marketing objectives:
 To examine the buying behaviour of customers towards products and services of Primark
 To investigate the perception of customers towards Primark and its product features
Sources of secondary data: For the purpose of understanding buying behaviour of customers,
researcher can employ different approaches which include, journals, books, case study, publish
research papers and online published articles (Nusairat, Rashid and Rembielak, 2015).
Furthermore, as per the present given case study, books, journals and online published articles
have been considered by the investigator to gather information about customer purchasing
decisions (Biemans and Hillebrand, 2015).
Limitations of market research: Main limitation of this method is that investigator can only
collect the information which is already available and not a new one. Despite of that, some other
factors such as costly affair, fragmented approach and non-availability of reliable data are also
associated with the use of secondary data collection method.
Reliability and validity: By considering the authentic sources and appropriate selection of
analysis tools, researcher can be able to increase the reliability and validity of research. As per
the present case scenario, both approaches, that is, primary and secondary data analysis have
been used to synthesis the information about buying behaviour of customers towards products
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and services of Primark (Terada, Jing and Yamada, 2015). Despite of that, only valid sources and
references have been considered for carrying out the present research in a significant manner.
Distinction one: By using attitude and iconic branding strategy, firm would be able to meet the
needs of customers and for solving their problems within stipulated time period. Major benefit of
this branding strategy is to better understand the consumer's self-expression and personal
identity. However, proper knowledge of market and customer views are required to better grasp
the opportunity from this branding strategy (Ozer and Gultekin, 2015).
TASK 2
2.4 Prepare market research plan to launch a new shoe product
Research plan activities Main reason behind taking
approach
Time period (in weeks)
Background  Enterprise wants to
launch new shoe
product aimed at
young consumers
(Primark, 2015).
 In order to support
future growth,
company concentrate
on opening new
distribution center at
Thrapsto and
Northamptonshire
regions.
1
Rationale The main aim of organization
is to expand its stores outside
of UK & Spain and meeting
expectations of their
customers.
1
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Objectives of research  To investigate the factors
which can influence
performance of Primark
whether entering in the
new market
 To analyze the ways
through which enterprise
can meet expectation of
diverse background
people
1
Methodology of section  For collecting data, both
primary and secondary
collection methods will
be used.
 For analyzing the data,
quantitative and
qualitative approach can
be employed
(McKinsey,2015)
2
Data analysis section Statistical test and thematic
analysis techniques can be
considered.
2
Total time frame 7 weeks
Budget £1200
3.1 Assessment of the size and the trends for the fashion industry in the UK
The UK fashion and textiles sectors are provided employment to an estimated 600
thousand people. In addition, member state industries like Bulgaria and Romania have a strong
impact on UK Fashion manufacture (Facts and Figures about the Fashion Industry, 2010). It is
found that most of the consumers preferred online shopping of luxury brands.
Market: This term can be defined in form of gathering of people for purchasing and sales
provision.
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Market chose: As per the present case scenario, foot wear market of UK was taken. From the
study, it is found that European market valued at USD 42,941.3 million in 2014. In addition,
Primark can focus on both athletic footwear and non-athletic footwear market segment to
penetrate customer (Nusairat, Rashid and Rembielak, 2015).
Market trend: It shows the tendency of market or price of asset in a particular direction within
stipulated time.
Market size: This term can be considered as total volume of a given market. With help of bar
chart, market size of Footwear industry can be understood. The below figures indicate the market
size and consumption of footwear’s.
Figure 2: Market size of footwear market
(Source: Wilson and et.al., 2010)
Figure 3: Footwear consumption by consumers
(Source: Wilson and et.al., 2010)
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Market forecast: It is a core component of analyse part and it is used to predict future trends and
characteristics of target market. For example, it is predicted that due to changes in lifestyle and
introduction of new footwear styles, demand of shoe will be enhanced.
Figure 4: Future forecasting of footwear market
(Source: UK Footwear & Shoe Market, 2013)
The value of selected market: The price of product would fetch customers in the marketplace
and affect their buying behaviour of customers. UK footwear industry contains 2.1% world share
of footwear consumption by quantity and it had a value of £8.39bn (at seasonally-adjusted
prices) in 2012 (UK Footwear & Shoe Market, 2013).
3.2 Competitor analysis for the Primark GB Company
With help of porter five forces model, researcher would be able to identify major competitors of
enterprise and evaluates the performance of Primark in competitive arena.
Competitor analysis: It is a critical part of company marketing plan or strategy which helps
enterprise to establish product and service unique in market as compared to other competitors.
In footwear industry, threat of entry is low because most of the retailers are concentrating on
virtual and online platform to deliver products to their customers (Afzal and Khan, 2015). In
addition, threat of substitution and competitive rivalry in UK are high due to presence of various
foot wears providers firm like Adidas and Red chief etc. Buyer power is high and customers
have wide opportunity to switch over other brands. While supplier power is low due to absence
of big supplier and less bargaining power of suppliers.
Strategic group: It is a group of companies who follow same strategy or model in an industry.
Primark can be divided into price and segment strategic groups. It offers both athletic and non-
athletic shoes to its customers at compatible price and it has stock everything from new born and
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