Detailed Analysis of Primark's Marketing Strategy and Tactics

This report provides a comprehensive analysis of Primark's marketing strategy. It begins with an overview of the company's STP (Segmentation, Targeting, and Positioning) strategy, examining how Primark segments its consumers based on demographics, geographic location, and psychographics. The report then delves into Primark's marketing mix, focusing on the 4Ps (Product, Price, Place, and Promotion) and how they are applied to the company's fashion retail business. Furthermore, the analysis assesses Primark's relationship marketing strategy, highlighting the tactics used to build and maintain customer relationships. The report concludes with recommendations for improving Primark's marketing strategy, offering insights into potential enhancements and future directions.

Business strategy
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Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. STP strategy, providing and insight into how segmentation, targeting and positioning are
currently applied..........................................................................................................................3
2. Examine their marketing mix, focusing on the 4Ps that your chosen organisation is currently
applying.......................................................................................................................................5
3. Assess their relationship marketing strategy with an emphasis on their current tactics..........6
4. Recommendations on Primark can improve its marketing strategy........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
For every company it is important to develop an effective marketing strategy. This is
because it provides direction to them that how promotion and advertising is to be done. Along
with that, strategy consists of steps which needs to be followed. If marketing is not done properly
then it highly impact on firm growth and expansion. The products and services are not marketed
in effective way. Besides that, marketing mix is set of actions or tactics which is used by
company for promotion (Caliskan, 2019). In this it includes 4 P’s that are price, product place
and promotion. So, entire success of firm depends on marketing plan. The plan is developed for a
particular target market. In that different tactics is applied to market products. Primark is Irish
fashion retailer that was founded in 1969. There are total 370 stores of company in 12 nations.
Basically, it operates in UK and Europe.
This report will describe about STP strategy that is being currently used by Primark. also, it
will be explained marketing mix of firm along with its marketing strategy and focusing on
current tactics. At last recommendations will be given on how to improve marketing strategy.
TASK
1. STP strategy, providing and insight into how segmentation, targeting and positioning are
currently applied
Primark has its focus on cost leadership and they are being engaged in segmenting
consumers on basis of their attitude and preferences. Segmentation is necessary so that company
can be easily able to identify the target consumers and also been able to gain competitive
advantage. Segmentation, targeting and positioning of Primark includes the following:
Segmentation: As in the era of globalisation international markets are really complex to
understand, so it can become difficult for organisation to reach out all consumers. In this
company has been engaged in segmenting consumers on basis of demographic, geographic and
psychographic. Primark is being involved in targeting customers on basis of their needs, taste
and preferences. It has been analysed that company is serving in around 13 countries such as
Austria, Poland, United States (Li, 2018). Organisation has huge contribution in fast fashion
trends. It has also been evaluated that they have divided consumers on small basis. Like in order
to sale out the clothes for kids, their parents and children are both targeted. Segmentation is also
being done on basis of income, age, gender. They are also segmenting on basis of behaviour and
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attitude of consumers. In this they attract loyal consumers as the product which is sold out by
Primark is cheap so it can be affordable by everyone.
Targeting: Primark is being engaged in gaining competitive advantage by targeting
consumers who are from higher middle class background. They have also engaged in targeting
customers with high disposable income. Mostly young people are being targeted by them so that
it can be easier for them to achieve set goals and objectives. As consumers taste and preferences
change from time to time, company is being engaged in making sure that customer loyalty is
been created by them (Kashyap and Murtha, 2017). They are targeting those consumers who are
more fashionable and want to explore new products and services which has been given by
company. It has also been analysed that Primark is also being engaged in targeting young people
as more fashion accessories is being preferred by then. They try to provide create value for their
products and services by giving goods at prices which is being affordable by them easily. This
has assisted in growth of company and also because of it competitive advantage is been gained
by the firm. Company has also been engaged in targeting consumers between the age of 15 to 55.
They have also targeted consumers on basis of their attributes and preferences. Company wants
to create a cost leadership where they also earn reasonable amount of profit and revenue.
Positioning: Primark is being engaged in making use of cost positioning strategy. In this
company is been involved in providing high quality products at lower price. This has assisted
them in creating value for consumers which is really necessary for their growth. Primark is trying
to positioned themselves as higher brand who are involved in giving consumers with better
products at low prices. This has assisted them in increasing their productivity and also their goals
and objectives has been achieved because of this. It has help company in growing and also they
have been able to create consumer loyalty through this. Primark is providing creative fashion
products so that they can be able to positioned themselves as differently from their competitors.
This will assist them in increasing their brand awareness. It will also support them in achieving
goals and objectives. It has also been analysed that product attributes are different from
competitors. It has assisted company in gaining competitive advantage and also they are being
able to grow because of this (Elliot, Ngugi and Malgwi, 2018). They are selling on medium price
and medium quality on the positioning map. A positioning strategy can be developed by
analysing company’s market condition and also by identifying opportunities which can be
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explored by them. This has assisted Primark in increasing their productivity and also by this they
have been able to achieve their set target and mission.
2. Examine their marketing mix, focusing on the 4Ps that your chosen organisation is currently
applying
Marketing mix is a term which is used for set of actions or tactics which company uses to
promote their brand. Primark has also made use of marketing mix in order to increase sale of
their goods and services. It includes the following:
Product: This P refers to the products which are being sold by company in market. Primark
is being engaged in selling fashion clothes. They have fashion goods for women, men, kids,
baby, home and beauty each. They have been engaged in providing products to consumers at an
affordable price (Rosson and Ford, 2016). Goods sold by company is also of high quality. This
has assisted Primark in increasing their profit as well as revenue. Company is also being engaged
in selling innovative and creative fashion products. It has assisted firm in gaining competitive
advantage. This has also assisted organisation in expanding their business in to international
market. They have also been involved in providing fashion products according to needs and
demands of consumers. This has assisted in increasing their profitability as well as revenue. It
has also been analysed that company is providing augmented products, it means they have been
engaged in providing above expectations of consumers. They also provide offer to consumers
like new arrival sections. They are also being engaged in providing customer with better
discounts. This has assisted company in increasing customer loyalty and also they have been able
to grow because of this. It has also been analysed that providing high quality of goods and
services has also assisted in increasing brand reputation and value. They have provided
consumers with sense of exclusivity.
Price: It refer to pricing strategy that is followed by firm in market. It has been analysed
from the research that Primark is been engaged in selling competitive pricing strategy. In this
company has lower down cost of their products than competitors. This is basically being done in
order to sell high number of goods and services. It has assisted organisation in increasing their
sales and also because of this Primark has also been able to gain competitive advantage. This has
supported company in growing and also because of this company is been able to price products
according to customer buying behaviour. They have also lower down prices through providing
premium discount. This has thus increases overall revenue process. They have also penetrated
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the market by keeping the price of their products low. It has also helped them in attracting
consumers and also because of low price consumer loyalty has also been built. It is really
necessary for growth of organisation and because of this brand value is also created.
Place: The P refers to place where organization products are available in market. Primark
has stores in more than 12 countries. They have expanded their market in Central Europe. It has
also been analysed that stores of company are really attractive with better interior. This has
assisted them in attracting large range of consumers and also they have been able to grow
because of this. Company has also maintained better distribution channels. This has helped them
in meeting our needs of people. It has also been analysed that company also have online
presence. This has assisted them in attracting large range of consumers because of which
profitability has also been increased (Moon and Oh, 2017).
Promotion: It is an important P in market mix. This refers to way of promotion that is used
to advertise products and services. Thus, there are various promotional strategies is being used
by Primark. In this they have been engaged in increasing their brand awareness so that more
customers can be attracted. It also helps company in growing. It has also been analysed that
Primark has also been engaged in promoting through advertising on television and also with the
help of print media like magazines, newspapers. This has assisted them in grabbing attention of
consumers and also by this method they have been able to increase their sales of goods and
services. Primark has also made use of Omni channel market; in this they have also supplied
pamphlets. It has also been analysed that company has made use of celebrity endorsement. This
has assisted them in attracting consumers and also because of this they have been able to retain
them. Primark is also being engaged in promoting their company products by building up public
relation. In this they have asked about feedback from consumers related to quality of products
which has been supplied by them. It has also helped them in attracting consumers and also
because of better promotion strategies consumer loyalty has also been built. This has helped
company in growing and achieving objectives.
3. Assess their relationship marketing strategy with an emphasis on their current tactics
In order to become successful in market it is necessary to build relation with customers. It
has been analysed that Primark marketing mix has enabled in attracting a large number of
customers. Also, with marketing mix it is essential that company focuses on building relation
with customers. It is because it will help in retaining them for long time and creating a strong
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customer base in market. So, having a loyal customer base allows firm to gain competitive
advantage in market. Thus, for that relationship marketing strategy is developed. In this firm
emphasis on fostering customer loyalty by interacting with them and improving long term
engagement (Özsaçmacı, and Dursun, 2020). In this strong relation is developed with customer
and sharing info with them according to their needs. The main purpose of relations marketing
strategy is to create relation with customers. So, it leads to gaining their satisfaction and retaining
them. Hence, it results in gaining market share.
Similarly, Primark has also deigned an effective relationship marketing strategy. With
that it has enabled them to create relation with customers. Thus, its strategy contains various
plans which are described as
Building customer relation by giving loyalty points or rewards- In this Primark give loyalty
rewards to customer on purchasing of products. These rewards are issued through bonus points
and giving cash back offers to them. Alongside, company also gives loyalty cards and certain
points that can be used in repeat buying of products. So, in that they are given discounts on basis
of points collected by customer. Moreover, reward points can be redeemed in future as well and
are valid for lifetime. There is also option of transfer of points to others. Thus, in this way it
helps in attracting more customers. With that it has become easy for Primark to develop strong
relation with customers. Moreover, firm also promote the loyalty program on various social sites
such as Instagram, Facebook, etc. It allows in attracting more people and creating awareness in
market about loyalty rewards being given by Primark. In addition, data of loyal people are stored
in CRM by which it becomes easy to identify their needs. Therefore, only specific info can be
provided to customer on basis of their needs (Chen, Tsai, and Ke, 2019).
It can be evaluated that there are several tactics which is used by Primark. Here, company
focuses on its pricing strategy by which they are able to attract customers. Here, they follow
competitive pricing in entire Europe market. Thus, without making any change in pricing
strategy they provide high quality goods to people. It has resulted in offering value of products to
them. Hence, Primark has positioned itself through brand image in minds of customers.
Another tactic that is been used by company is that aggressive promotional campaigns.
The firm is doing attractive marketing of its products and services through social media. They
are using Instagram, facebook, You tube, Twitter, etc in attracting people. Thus, with that they
are able to generate high sales and earn revenue. The promotion is highly benefiting firm in
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creating lead and making people aware about their products. So, focus is on promotion of
products via different platforms. In this way Primark is able to compete with rivals in market for
long term. They are targeting young people who are highly attractive towards fashionable
products. Hence, a strong social network is created by them. In this way they have developed
strong relation with young people as well.
As Primark is having an extensive portfolio of products so they follow tactic is to giving
loyalty rewards to customers. It is done to retain them for long time and also to ensure that
product value is generated. The loyalty program is allowing people to earn points and then get
high discounts on products. Moreover, people are making high use of points. This has led to
doing repeated sales and generating revenue for firm (Moon, and Oh, 2017).
Thus, these are some tactics which is used by Primark by which they are able to attract
customers. Along with it, young people are easily attracted with help of effective marketing. By
offering variety of goods, organization is providing value of products as well.
4. Recommendations on Primark can improve its marketing strategy
Primark is being involved in selling fashion products to variety of consumers including
females, males, kids and children. In order to increase sale of products, company needs to
enhance their marketing strategy. It includes the following:
 Organisation can be engaged in promoting their goods and services by making use of
social media channels. In this they can be engaged in promoting their brand on Facebook,
Instagram, Twitter, so that large number of consumers are attracted towards their brand.
It also assists company in creating brand awareness. They can make use of digital
channels and also they are also being able to increase sales because of this. It has also
been analysed that company also have online presence. This has assisted them in
attracting large range of consumers because of which profitability has also been
increased.
 Organisation can also enhance their marketing strategy by engaging in doing key market
research. In this they will be able to know about more consumer trends and preferences.
By this goods and services can be designed according to this. It has also been analysed
that company can also be engaged in making use of other type of pricing strategy. They
can make use of penetrating pricing strategy. This will assist them in in growing and
achieving objectives (Key, 2017).
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 Primark can also be engaged in developing their own app so that consumers can also buy
their fashion products online. This will assist them in creating flexibility for customers as
they will not be able to attend and purchase from physical stores. This has assisted them
in achieving set mission. It will also be really useful during the time of novel corona virus
crisis. As people are concerned for their health and they do not want to go to physical
stores. They can also make customer aware about the discounts and various offers
implemented by them through the online app. Customer feedback can also be taken on
the app developed. This has helped company in growing and achieving objectives.
 Primark can use advance and latest technology in their stores such as AI, self check out,
etc. in order to enhance customer experience. It will enable in giving new experience to
them and retaining. Hence, it will save time of customer and also reducing cost of firm.
CONCLUSION
From report it can be concluded that Primark follows STP by which they are able to identify
their target market. They segmentation is done on basis of behaviour and attitude of consumers.
Company has targeted consumers between the age of 15 to 55. They have also targeted
consumers on basis of their attributes and preferences. Moreover, positioning is done by selling
on medium price and medium quality. Primark products are fashion goods for women, men, kids,
baby, home and beauty each. They follow competitive pricing strategy and they operate 12
nations and have expanded market in Central Europe. The promotion is done through advertising
on television and print media like magazines, newspapers. Also, Omni channel marketing is used
for promotion. Furthermore, relationship marketing strategy followed by them is giving loyalty
points or rewards. It has helped in building customer relations. The recommendation that can be
followed by Primark is promoting via social media channels, doing market research to identify
needs and developing app. It will help in creating strong position in market.
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REFERENCES
Books and journals
Caliskan, A., 2019. Applying the right relationship marketing strategy through big five
personality traits. Journal of Relationship Marketing, 18(3), pp.196-215.
Chen, M.H., Tsai, K.M. and Ke, Y.A., 2019. Enhancing Consumers' Stickiness to Online Brand
Communities as an Innovative Relationship Marketing Strategy. International Journal on
Semantic Web and Information Systems (IJSWIS), 15(3), pp.16-34.
Elliot, E.A., Ngugi, B. and Malgwi, C.A., 2018. Mitigating microfinance marketing channels
inefficiencies with customerization of mobile technology. International Marketing
Review.
Kashyap, V. and Murtha, B.R., 2017. The joint effects of ex ante contractual completeness and
ex post governance on compliance in franchised marketing channels. Journal of
Marketing, 81(3), pp.130-153.
Key, T.M., 2017. Domains of digital marketing channels in the sharing economy. Journal of
Marketing Channels, 24(1-2), pp.27-38.
Li, K.J., 2018. Behavior-based pricing in marketing channels. Marketing Science, 37(2), pp.310-
326.
Moon, B.J. and Oh, H.M., 2017. Country of origin effects in international marketing
channels. International Marketing Review.
Özsaçmacı, B. and Dursun, T., 2020. A Relationship Marketing Strategy in Brand
Communication: Influencer Marketing Strategy. In Impacts of Online Advertising on
Business Performance (pp. 52-80). IGI Global.
Rosson, P.J. and Ford, I.D., 2016. Stake, conflict and performance in export marketing channels.
In Proceedings of the 1979 Academy of Marketing Science (AMS) Annual
Conference (pp. 66-69). Springer, Cham.
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