Marketing Management Report: Primark in UK Fashion Retail Market

This report provides a comprehensive analysis of Primark, a fast-fashion retail brand, within the UK fashion market. It begins with an introduction to retail and the company, highlighting Primark's position and competitors. The core of the report applies a PEST analysis to assess the macro-environment, considering political, economic, socio-cultural, and technological factors impacting Primark's operations. The report then delves into a SWOT analysis to evaluate Primark's micro-environment, identifying strengths, weaknesses, opportunities, and threats. Finally, it provides strategic recommendations based on the environmental assessments, offering insights into Primark's potential for growth and addressing its challenges in the competitive UK fashion retail landscape. The report emphasizes the importance of change management in the retail industry.

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Introduction to retail:..............................................................................................................2
Introduction to the company:.................................................................................................3
Key relevant changes in UK fashion retail market:...............................................................4
Political Factors:.................................................................................................................4
Economic Factors:..............................................................................................................4
Socio-cultural Factors:.......................................................................................................5
Technological Factors:.......................................................................................................5
Relevant changes in terms of micro-environment:................................................................6
Strengths-...........................................................................................................................6
Weaknesses-.......................................................................................................................7
Opportunities-....................................................................................................................8
Threats-..............................................................................................................................8
Strategies and Tactics:............................................................................................................8
Recommendations....................................................................................................................10
Conclusion................................................................................................................................11

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Introduction
The amalgamation of various approaches in preparing, supporting and assisting teams,
organizations and individuals for addressing changes in the organization is known as change
management (Hayes 2018). Few evidences of change management involve process reviews,
consumer behavioral changes, organizational restructuring, mergers and acquisition, and
technological changes. The systematic approach of dealing with transformation in the
organizational goals and processes is known as change management (Cameron and Green
2019). The managers should invest efforts in recognizing the significance of both internal and
external environments before framing a strategy or method. The purpose of the paper is to
assess the changes in the retail fashion industry of the United Kingdom. The paper will assess
the macro and microenvironment of the UK fashion retail industry for the chosen company,
Primark.
Discussion
Introduction to retail:
The procedure involved in selling consumer services and goods directly to the customers
with the help of multiple platforms of distribution in order to earn a profit is known as retail.
The purpose of the retailers is to satisfy or address the demands recognized in the operational
process. In retailing, the retailer addresses the smaller orders of the end consumers (Ayers
and Odegaard 2017). Retail can be considered as the endpoint of the whole distribution
network which avails the offerings to the consumers (Attaran and Gunasekaran 2019). A
retailer can either source the products directly from the manufacturer or through the suppliers
and/or distributors or C&F agents. Retailers buy the finished products for facilitating the
availability in the targeted market (Kahn, Inman and Verhoef 2018). Similar to the traditional
supply chain practice, the retailer increases the price for adding the cost of labor, distribution,

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and equipment. The increase in price depicts the value of mark-up, which is the profit margin
of the retailer. When fashion is sold to the end consumers through various channels or
platform or process demonstrates the conception and operation of fashion retail.
Introduction to the company:
The chosen fashion retail company for this paper is Primark. Primark is considered to
be a fast-fashion retail brand. Headquarter of the Irish retail brand is located in Ireland,
Dublin. Primark is the subsidiary under the public limited retail organization, Associated
British Foods. Primark was founded in the year 1969 in the month of June in Ireland. The
offerings of Primark involve a diverse and varied range such as children and baby clothing,
menswear, womenswear, footwear, confectionaries, accessories and beauty products. The
main competitors of Primark are H&M and Zara. The retail company, Primark is considered
to be one of the leading fashion retailers, which is specializing in clothing, footwear, and
accessories. Headquarter of the company is located in Dublin. With the constant growth and
expansion plans, as of 2019, Primark has a total of 373 retail stores in a global scale, which
involves the regions like Republic of Ireland, Spain, United Kingdom, Netherlands, Austria,
Italy, the United States, Germany, Portugal, and France (Primark.com 2020).
The retail brand is popular for its updating trends and low-cost end operation in the
fast fashion industry. In the 373 stores, around 174 stores are located in the United Kingdom.
From the year 2007, the retail brand, Primark has considerably enhanced the share in the
clothing market of the United Kingdom. The elevation can be witnessed rising to 7.1 percent
during the year 2018 from 4.1 percent (Statista.com 2018). The constant efforts and
prominent growth in the market of the United Kingdom have brought Primark's position just
behind the huge retailer Marks & Spencer from the year 2008 to the year 2018.

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Key relevant changes in UK fashion retail market:
The significant changes in the United Kingdom market for the fast fashion retail brand,
Primark can be understood and assessed through the PEST analysis.
Political Factors:
The United Kingdom absorbs strength from political stability. However, the political
stability of the country is trembling due to the shape of uncertainties approaching due to
Brexit. The international relations of the United Kingdom with countries like the United
States and India have contributed positively to its trade decisions. The UK significantly
invests focus on the rise of globalization or the globalized economy. The trade barriers and
restrictions in the United Kingdom are lower or negligible for transferring capital or profit
generations. The presence of a few barriers is marked by the execution of regulations and EU
directives.
The minimum rate of trade barriers and restrictions, globalized economy and positive
international relations can positively contribute to the expansion of Primark in the country
with the network of major suppliers from all around the world. In spite of the positive factors,
the political stability of the United Kingdom has been shaken due to the increasing
uncertainty of Brexit, which can impose loss of investment and growth of the fast fashion
retail brand.
Economic Factors:
The economic growth of the United Kingdom during the year 2019 was 1.2 percent
and in 2020 the growth was marked by 1 percent. Both the values fall from the average
growth of economic growth, which was 2 percent, which possesses a risk in the country's
economy. Consumer spending increased became stronger with the growth in real earnings.
However, due to the uncertainties possessed by the government due to Brexit, the business

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investment declined in the country. The GDP of the United Kingdom in the year 2019 was
2.744 trillion and was ranked 6th in terms of GDP growth or position.
The economic factors of the United Kingdom propose an attractive market to grow for
Primark as the country demonstrates a higher consumer spending power, which can attract
the higher sales of the updating trends in the UK market of Primark. However, the impact of
Brexit and lower rate in economic growth may result in the hindrance for expansion and
profitability plans of Primark
Socio-cultural Factors:
The total population of the United Kingdom is 67,886,011 with a completely diverse
culture. The multicultural population of the country has grown along with the practice of
immigration and globalization. The companies in the United Kingdom ware developing with
the aim of responding to a varied range of religions and races. In accordance with the
education level, the United Kingdom is considered to be 10th country to have effective
educational status. The cost of living in the United Kingdom is higher and is consistently
increasing.
The multicultural background and diverse culture of the country can positively
contribute to the growth of the retail company as it operates with multiple fashion and beauty
brands and ranges that have the potentiality of responding to the diverse culture of the
country.
Technological Factors:
The gross domestic expenditure of the United Kingdom in Research and Development
reflects the significance in investing on the implication of innovation. R&D investment has
marked the growth of various sectors in the United Kingdom and moreover possesses
opportunities to develop offerings of the companies in order to attract more Foreign Direct

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Investment in the country. The Government of the United Kingdom is dedicated to increasing
the investment rate on Research and Technology from 2.37 to 2.4 by the year 2027 with
respect to the GDP. During 2017, the country spent 34.8 billion Pounds. The investment in
the R&D (Research and Development) field has experienced a rise from a few decades back
in the year 1981 when the expenditure was around 17.6 billion Pounds and 34.8 billion
Pounds during 2017 (Eisenberg 2019). In recent years of the United Kingdom, the country
has grown with the acceptance of AI and automation technology, which has ultimately
revolutionized the supply chain processes in the country from retailers, wholesalers to
manufacturers (Ibisworld.com 2018). The United Kingdom has also introduced the
application of smart warehouses, which respond to the need for integrated technologies such
as robotics, radio-frequency, Artificial Intelligence and inventory control system (Deepak and
Jeyakumar 2019). The technological eco-system helps in constructing an efficient network
amongst the operational or distribution heads for an institution or organization. The GDP of
the United Kingdom can be increased by 10.3 percent by the year 2030 nationwide with the
complete adoption of AI in integration to labor productivity and consumer demand.
The technological advancement of the country majorly contributes to the operational
efficiency with the introduction of conveyor technology and software implications. However,
being a fast fashion brand operating in 2020, Primark still lacks the digital or online presence,
which can harm its position amongst its competitors. Moreover, the company also lacks the
dominance of technological implication as per the market standards. On the other hand,
increasing the cost of living can be addressed by a niche or premium segment.
Relevant changes in terms of micro-environment:
The micro-environment of the retail company, Primark can be identified and assessed
on the basis of the SWOT analysis framework.

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Strengths-
 One of the leaders in the fashion retail business with around 373 stores on a global
scale and approximately 174 retail stores in the United Kingdom.
 Low-prices of the product offerings and a wide range of trendy clothing and
accessories attract consumers even at the time of economic recessions.
 In the United Kingdom, Primark will become the biggest clothing retailer as currently,
the company has reached behind Marks & Spencer.
 The market share of Primark is 7.1 percent as of 2018 in the UK that paves the way
for reaching past M&S (Gürel and Tat 2017).
 The profitability of the company is marked by its low costs associated with
production and sourcing as most of the products are manufactured or sourced from
countries with lower labor costs such as China, India, Pakistan, and Bangladesh.
 Primark integrated ethical trade programs accompanied with sustainability with its
supply chain network, which directly influences its image and ROI (Fernie and Grant
2019).
 Primark saves costs by investing little or nil in advertising or promotion as it believes
the fashion retail company sells itself through an extensive range of product offerings.
Weaknesses-
 Lack of online presence is one of the prominent weaknesses of the clothing retailer.
 Experienced a number of controversies, which disconnects the practice of ethical and
sustainable trading as the fashion retail company has been accused of lower-wage rate
(lower than the industry average), poor working environment in the factories and
child labor.
 It holds the image or impression of low quality due to lower prices in comparison to
the competitors.

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 Although, the strategy of not investing in advertisements and promotional tactics pays
off during the aspect of profit maximization as it reduces costs but it also imposes
major lag amongst its competitors as it restrains the company from the assurance of
reaching a wider range of audience as like its competitors.
 The slower economic growth of the UK has pulled back the potentiality of growth of
Primark
 The dependence on outsourcing functions has resulted in various controversies and
may result in inconsistent quality.
Opportunities-
 The opportunity for expansion in both offline and online platforms.
 The opportunities of entering into developing countries with a low-price strategy such
as India, the Middle East, and South Africa.
 Investing in Athleisure product line due to heavy growing and trending style
 Investing in promotional activities for a wider presence
 Investing in product line extension for the premium segment of consumers
Threats-
 Extensive competition from fashion retailers like Marks & Spencer, ASOS, TK Max,
H&M and Zara (al Habibi 2019).
 The company has zero footprints over online or digitalized platforms, which possess
higher rivalry and threat to substitute in the market.
Strategies and Tactics:
From the comprehensive assessment of the macro and microenvironment for
understanding the position, sustainability and potential challenges of Primark, it can be
concluded that although the fashion retailer is established and holds a significant position in

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the UK and global market. One of the changes identified in the macro-environmental analysis
is the uncertainties of Brexit. Brexit will surely impose various new laws and regulations on
the businesses. This challenge of the external environment can be addressed by maintaining a
centralized decision-making approach of the company, Primark, as the headquarter is situated
in Ireland and UK, is one of the major hubs of the fashion retail business. Centralized
decision-making such as expansion strategy from headquarters can help in maintaining a
cordial relation of trade without the risk of losing market share.
Another challenge or aspect identified in the macro analysis that can influence the
operations of Primark is slower economic growth and lower business investment rates in the
UK. This influence can be addressed by integrating technological efficiency for optimal
utilization and allocation of resources (Haider et al. 2017). Integrating technological tools or
implications such as automation, maintaining data of resources with the help of ERP
(Enterprise Resource Planning, which is process management software can be a significant
step for Primark. ERP integrated with Primark can help the retail company to maintain the
operation with automation and functions associated with human resources, services, and
technology. The comprehensive data deduced after maintaining, forecasting and allocating
expertise and resources in the right direction will help Primark to save cost in the supply
chain process. Moreover, the company can start investing in online presence and e-commerce
sites as it can be proved as a cost-effective way of reaching the target audience (Linzbach
Inman and Nikolova 2019). Although Primark does not invest in the advertisement for saving
costs the e-commerce sites can address two challenges of the company, originated from both
macro and micro environmental assessment. E-commerce shopping platform can reduce the
cost of physical store expansion and will ensure a wider reach.
Moreover, in the 21st century, the influence of digitalization is evident; the weakness
of lagging behind by the factor of online presence or through advertisement can be addressed

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by the e-commerce site or app development. Another change or influence from the macro-
environmental analysis is the changing technological implication. The retail company should
involve the application of automation, which will be cost-effective and effective for being
ahead of the competitors in terms of operational efficiency, similar to the consistency of
updating styles and trends. The operational efficiency in Primark can contribute directly to
the costs and potential challenge of reduced business investment due to the political and
economic instability of Brexit. With the establishment of an online presence and e-commerce
site, the company can start pushing value-added services such as free delivery and 30-days
return services, this can add values to the ultimate offerings by minimizing inefficiency and
delays. The shipping or delivery cost of Primark can be dependent on quantities purchased
rather than the total amount as it will push more inventory per shipping or transporting
service offering, thereby adding value without adding costs. Management of inventory can be
directly dependent on the software, which can ensure the restriction of bottleneck and delays
(Voss et al. 2019). The weakness or controversies of unethical practices can be addressed by
maintaining an in-house auditing system, which will address the deviations and disruptions
from the standard workers' activities and quality management. Moreover, with the online
presence, Primark can communicate its restructured ethical standards and monitoring process
for addressing the controversies and quality issues. The communication will present
transparency between the shareholders, investors, consumers and the company.
Recommendations
 Establishing an online presence for restricting the controversies and for responding to
the weakness of being out-dated amongst its competitors.
 An online presence will be followed by the establishment of e-commerce sites and
mobile applications for wider reach, mitigating cost challenges and investment
challenges at the time of Brexit.

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 Integrate the supply chain process with a wider range of technological tools and
resource management platform (Bradlow et al. 2017).
 Centralizing the major decision-making but with the allocation of prime duties to each
functional division in different countries can help in the maintenance of relationships
even in the potential economic and political uncertainties in the external environment.
 The social media community and ecosystem can ensure the development of a newer
image, which demonstrates the ethical and sustainable practices of Primark in spite of
the association with fast fashion brands (Hwangbo, Kim and Cha 2018).
 Operational efficiency by investing in automation and in-house auditing team can
respond to the cost-effectiveness and future challenges of increasing competition.
 The expansion plan of the business should be accompanied with the strategy of
creating a strong brand image and accomplishing wider reach.
 The brand image of the retail brand can be maintained or improved by conducting
occasion-specific events for building a strong relationship (Vinten 2016).
 These changes need to be included with the association of transformation and
strategic leadership style (Khattab, Fonn and Ali 2017).
Conclusion
Therefore, it can be concluded from the paper that although, Primark is an established retail
company with major growth opportunities the assessment of external and internal
environment demands the integration of various changes. The external and internal
environmental analysis demonstrated various changes and influences that can affect the
future potential of growth in the UK. The retail company, Primark needs to update its
operational and distribution processes along with the latest trends and clothing lines because
the online presence and digital platforms (e-commerce) can contribute directly to the