Compiled by:
Datta, Oindreela Dutt, Sabyasachi Kaur, Gagandeep Kaur, Sandeep Patel, SagarSpratt, Charles
Agenda Company overview
Situational analysis
Market overview
Marketing objective and mix
Financial analysis and Sales forecast
Contingency plan
Company Overview• History• 1969 – First store, Penneys, opened in Dublin• Arthur Ryan, Paddy Prior, Garfield Weston• 1973 – UK and JC Penney
• Expansion• 1990s, fast fashion, and Asian garment production• 2006, Spain, 289 stores
STRENGTHSFast fashion retailer offering affordable trendy apparel, accessories
Good supply chain policy and has started to pay workers a living wage
Marketing plan includes extensive use of social media Offers products that suit lifestyles such as fitness apparel and homeware
PRIMARK - SWOTWEAKNESSES
Stores cluttered with lots of displays and racks of clothing. Daunting for first time buyers
Lower price implies lower quality; no sign of exclusivity
Lack of e-commerce website
Targets only the younger age group
THREATSOther brands similar to Primark offer similar low quality, low priced apparel ex: H&M, Forever 21
Lack of interactive shopping experience
Consumers are slow to accept new entrants in the market space. Ex: Target
Challenge to find affordable retail space that complements Primark’s low prices
OPPORTUNITIESLaunch e-commerce website
Improve layout of store and in – store experience
Develop product lines for older markets
Use celebrity endorsements to grab North American shoppers’ attention
P TSEPolitical –New
liberal government,
possible policy to boost economic
growth.
Socio-cultural – offer a product line that appeals to the diverse Canadian population, fits
lifestyles, recession
Economic – Canada is in a recession; slow
growth and economy
contracted by 1% in the first two
quarters.
Technology – use of e-commerce to
increase multichannel
distribution and interactive
technology to enhance shopping
experience
PORTER – 5 ForcesThreat of new entrant
• Set up costs are high for new companies
Supplier Power• Supplier power is low because Primark
has good relationship with suppliers and seeks lowest ones
Buyer Power• Buyers have a lot to choose from due to
presence of many retailers offering low cost, trendy clothing so their ability to switch to another competitor is highThreat of substitution
• Chances of another retailer offering the same type of product is moderate, Primark also sells homeware and confectioneryCompetitive Rivalry
• Presence of other fast fashion retailers means there is moderate rivalry based on the low cost, trendy fashion business model
• Canadian Apparel and Footwear market have growth by 14.9% in last 5 years.• Primark’s success in international market.• Primark’s entry in American Apparel market.
Market Overview
Cost leadership and product leadership Major target Millennials and people earning under $25000 annually Competitors target market
Target Market
Channel strategyDistribution Channel
-Direct distribution-Indirect distribution
Distribution intensity-Intensive distribution
Marketing Objective• Positioning- Fast fashion, rock bottom prices• Market segments- vary widely- adolescents to parents• Marketing strategy key- core segments- Zara, Gap, H&M• Comparable quality, lower prices• Avg. women’s product- £10.69 GBP, H&M- £3.87
• Competitive Advantage• Low prices, low costs- manufacturing, advertising, personnel
• Comparable products to competitors
Mission Statement Fashionable apparel- all categories- lowest prices More progressive mission statement
Bangladesh, 2013 Promoting wasteful, throw away culture
Competitively priced apparel Sustainable environmental and social effects
Marketing strategies Highly focused and coordinated Marketing Strategies are practical Stress on collecting accurate data Timely implementation of all marketing policies and strategic plans
Product
Price
Fast fashion retailerProduce in huge quantitiesTrickle down effectMen’s, Women’s and Children’s category
Cost based PricingLow mark upsManufacture garments effectively and efficiently
Place
Promotion Relies mainly on “word of mouth” Focuses on Social media platforms
Research
Sample Approval
Production
Shipment
In store Promotion
Facebook Twitter Instagram
Likes – 4,334,749 Followers – 126000 Followers – 2.5 million
Financial Analysis
2010 2011 2012 2013 2014
€ 3,043€ 3,503
€ 4,273€ 4,950
€ 5,347Revenue
YearsReve
nue
refle
cts
in
mill
ions
Sales forecast
Average sales per square meter is 479 pounds ($988) Total square feet* AVG. sales per meter (40,000*$988) $3, 952, 00000
Contingency plan Precise Planning Minimum investment Strategic alliance Research on buying and spending habits