MARKETING PLAN FOR PRIMARK

Marketing Plan for Primark



Marketing Plan for Primark

Introduction

Primark is a string Irish fashion shops belonging to the group Associated British Foods. The company specializes in clothing and accessories at low prices. The majority of garments sold are manufactured exclusively for the group, but also sold out of season garments from other brands. In 1969 he opened the first store of the group in the street Mary Street Dublin, which received the Penneys name. Within a year it opened four stores in the area of the Irish capital, and in 1971 opened the first location in the city of Cork. Two years later, the group arrived in Britain as Primark, which was expanding over the years. In 2000 Primark took the withdrawal of C & A of the British market to purchase their premises, which helped over 100 businesses.

From 2006 Primark has launched a plan for international expansion in Europe, which began with the opening of a store in a shopping mall in Madrid (Spain), where it was well received. In 2009, the company has also opened business in Portugal, Netherlands, Germany and Belgium. Currently, the Penneys brand name is used only in the Republic of Ireland, while in other countries is called Primark. In 2009 the founder Arthur Ryan left the company, so that the group undertook a renovation in all positions (Sheshinski, 2007, 66-77).

Strategic Planning History of Primark

Primark is one of the many retailers of affordable fashion clothing in UK. There is high intensity of rivalry among competitors. To sell cheap fashionable clothing in this scenario is a very challenging task.

Primark has a tightly defined target segment of consumers in the below 35 age group. It is pursuing cost leadership as it offers fashionable clothing at very affordable prices. Companies can achieve more than normal rates of profits in two ways: by establishing cost leadership or through establishing product leadership. Cost leadership is attained by giving the same products at lower prices than competitors. Product leadership is established through strong product differentiation so that customers are ready to pay a premium price for the products. Primark has adopted the earlier strategy of cost leadership. This strategy is pursued by companies selling affordable products across all sectors. The same strategy was pursued successfully in the aviation sector in United States by Southwest Airlines (Robert, 2008, pp 22-24).

Primark also has a family of brands. It is not heavily into branding. For maintaining its low costs Primark focuses more on buying, logistics and supply chain management. A separate team has been set in UK that travels all over the world to identify new fashion trends and seek cheaper supplies. The company sources the manufacturing of its clothes to developing countries like India which have cheap labour. This results in huge cost savings for Primark.

Primark also has the strategy to reduce the time-to-market to as less as possible. For this purpose the company uses computerized customs clearance. It has a strong warehousing and distribution ...