In today’s world marketing can be define in many ways. It has been changed in way of its market but definition rarely states the same. Marketing can also be defined as the process of creating value for customers in order to building strong customer relationship and gain valuable feedback from customers in return. In general marketing can be easily described with few words such as customer focus, advertising, packaging, selling etc. There are so many definitions which is similarly describing the same definitions as others.
“The science and art of exploring, creating and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.
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“Marketing is helping your customers understand how much they need something they never knew they needed.” According to Dr. Augustine Foe, Founder, Marketing Science Consulting group, Inc. “Marketing is the process of exposing target customers to a product through appropriate tactics and channels, gauging their reaction and feedback, the ultimately facilitating their path to purchase.” From the above discussion it can be easily state the process which includes people to keep busy in manufacturing products and to meet expectations from the customers. A positive feedback and rolling process of give and take idea is mutually dependent to each other.
A successful market requires a business which has satisfying customer who returns the business an additional tradition. That is why customer is the centre of marketing strategy. This report is about frequent marketing analysis of Primark. Primark is the largest ethical trading company in UK which based in Dublin. It’s an international and expanding clothing retailer. Primark is the name of style, fashion and affordable price. Primark is a company based on Home, childrenswear, menswear and womenswear.
The main purpose of this organization is to make distributor, customer, employees, suppliers and local community’s part of their success and make them work with any way they can. In the first part of these will variably discuss the (internal and external) environment of the company. As the environment creates some opportunities and makes threat for the company. Second part is about the market segmentation of Primark and its market and the marketing mix. Finally conclusion will be drawn and recommendation will be will be made to come on a decision to make its improvement.
2.0 Marketing environment analysis of Primark
Marketing environment is known as the special environment where marketing elements and the organization surrounds. Change in marketing environment does have impact on the organization. Some political change, trend, ethical change or financial change may happen. In order to tackle this change a company must have strategy which organizes to make strong platform in the business. The market environment both offers opportunity and threats. The importance of this changing environment keeps those companies aware and as result competitive advantage can be made within the organization. These can follows in to some tools or in frameworks which has been given below.
2.1 S.W.O.T Analysis
S.W.O.T is the acronym of Strength, weaknesses, opportunity and threats. The S.W.O.T analysis of Primark has been pinpointed below:
* Primark has demand amongst the people because of the high street quality clothes and the lowest price amongst other retail shop. It also provides clothes for all groups of ages and people.
* Primark is the second largest retail clothing shop of United Kingdom according to TNS by the volume of market share.
* The company is a part of ETI (Ethical trading Initiative) which focuses on the labour rights and their production of goods.
* It has good markets amongst the women for home appliances and cosmetics. Weaknesses
* Primark has its little issues about communicating and advertising because Primark does not advertise for itself which is a big weaker point for the company and advantage for its competitors.
* Primark had issues with cheap labour which headed labours to a poor working condition and argued about labours right issues.
* This company doesn’t have online access or online shopping which is a big weakness in today’s high-tech world.
* They can provide high quality clothes and can gain trends of fashion world. Although can promoting of products to the fashion conscious people in cheap price.
* Primark has the opportunities of share their market in overseas to keep the trend in United Kingdom.
* Primark can expand a very big market in footwear and cosmetics which are very limited at the moment.
* It also has problem in advertising area. Company does not advertise in its website whilst their competitors do. * Primark’s competitors are much more lively and aggregate in unique clothes. Some of the competitors such as H&M, Uniqlo, Zara, etc used online advertisement and promotes offer in cheaper price which is threat for Primark.
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2.2 Macro Environment (Pest Analysis)
Political Analysis A political analysis has impact over the firm or organization if any different governmental initiatives take place. A policy can be diverting local priorities of the company, if government establish any policy. If the economy changes, government always acts in the changes of fiscal or monetary policy. Government also holds the act of regulations which should be a part of business cycle. The health and safety act, sex discrimination act, disability discrimination act, data protection act, sales protection acts, consumers’ protection act and so on are the several examples act that the organization needed for compliance. In order a company should react on their impact of an increase or decrease in taxation.
Economic analysis can create impact or bring change and different economic trends can appear which creates risk in an organization. A strategic decision is assumed in uncertainty level. An increase/ decrease rate of interest can be analysis and its impact on business may appear in the terms of recession. The issues are often involved the monetary and fiscal policy. This measure is the strength of the policy to support the business cycle. Primark is also recognised as a strong business that can contribute a lot in the country’s Gross Domestic Product GDP. A strong monetary fund can hold the position in different economic changes.
Social analysis is only focused in the demographic changes of company which can affect the product influence in the new buying perceptions of the market. To conduct further research, developing of their process, can be strongly forced by social change. In this area of business, buyers get the most priority. If there is a new product on market the organization will find another way to extend their creation and it will be hopefully on the leading market. We can see the capability of Primark in different social changes and challenges when there is presence of competitors.
Technological analysis helps an organization to increase the ability to adopt new and use the latest innovation which has significant importance to perform the business smoothly. Different technological innovations may improve the quality of products or may fast the transaction process. Technology is helpful hand in the nature of business. The uncertain economic and social changes might be minimized through using latest technology. Some other unethical issues such as fraud, shoplifting, misconducts can be removed by using technology. Primark has momentous role of security by using high definitions camera to prevent shoplifting.
3.0 Marketing Segmentation and Marketing Mix
3.1 Marketing Segmentation
Marketing segmentation is the process of subdividing market into a clear identifying number of groups which may have similar needs, wants or demands. Its main objective is to identify and satisfy a particular buyers group. Sellers will be busy to meet the precise expectations of the customers in the targeted segment. Some of the companies are big enough to supply the entire market but most of the company breakdown into segments to choose that the company is best equipped to handle. There are two preliminary approaches of marketing segmentation. One is breakdown approach and another is building up approach. Primark has the building up approach which identifies advance level of customers and success to meet the customer satisfaction. There are few different ways of segmenting the market which is stated below:
This kind of segmentation identifies the group of people that are connected with their needs. This demographic segmentation can differ various people according to age, gender and choice. Primark has targeted people aged from 18-30 who might be female or male. In according to create a trend between the people also creates a necessity of buying products in cheaper price. On the other hand family clothing made much easier for people where they can also find clothes for children. Primark is richer with woman accessories or clothes where they targeted woman to make purchase as well for the family.
Sometimes products need to be offer in different ways in market to different geographical area. Primark has the variety of clothes which has great demand in Great Britain and in Europe too. Primark have different sections and clothing areas according to the gender but clothing types may vary with the geographical situation. In Asia, if Primark open the opportunity of creating fashion trend in winter may not meet the expectations of customers due to geographical situation. Some other trends of clothes will be more popular among the male groups also may not be suitable for female in some restricted Asian country.
This group of segmentation is mixture of occupation and income. Each socio economic group has broadly similar characteristics which infer taste, lifestyle and level of disposable income. People do have different social class, level of income and occupation levels. Primark is popular for high quality clothes in cheap price. Primark targeted students and lower income people where they can afford the clothes and accessories in very cheap price. It helps those people to satisfy with the upcoming trends of clothing and designable clothes.
3.2 Marketing Mix
With the help of environmental analysis MIS (Marketing Information System) gather the information about the customer. MIS take the decision relating to the marketing mix. This tool gives idea of marketing. A planed mix of four elements product, price place and promotion is known as marketing mix. When its consumer centric marketing mix, it has been extend to physical evidence, people and process.
Product is the principle element of a company. It might be tangible or intangible. It keeps running the business and activity of an organization. Primark is name of clothing market and accessories. As Primark’s product is variable with the gender, but most commonly male and female stylish clothes are available with reasonable price. Sometimes Primark’s strategy of business also indicates female accessories in cheap price.
Price is main key factors for the products. According to price, the demand of products can be upraised and popular among the buyers. Sometimes it is very difficult to setting up a selling price of the products. The high price of a product may not gain target sell. On the other hand, lower price of a product is threat to the profit of a business. To keep the sustainable price sometimes it may require the sources product need to be cheap.
Promotion can raise more money for an organization than expected. Promotion can be includes Offer of a products, sales promotion, direct sales and media coverage. According to some countries the promotion of a product can be choose on some particular celebration days such as Christmas, Easter, etc. Also a big banner for a company is also appreciate for the company promotion. Primark is well promoted but the lacking of online access can distract people from promotions.
Place is a mandatory element of an organization. To gain advantage place makes the decision where the customers want to buy from. Product availability also can be located. In this term Primark has more advantage than other for high street shopping. People can easily access to the place of products. Also Primark has big building and design which attracts people to shop. Some of the shopping mall allows large store where people can variably choose their products.
4.0 Conclusion and Recommendation
From the above discussion it can be state that rising of social, economical and technological culture of a market creates more critical and complicated for sellers to promote products. Customers are now more aware of choosing products from various markets. Competitors market gets more advances. The external change of environment gave chance to expand market. In this credit crunch moment people get more conscious of having the right product. The expectation also becomes very high. Recent figure change of international share market make the market more critical and need to be advance to step up with the customer’s choice. Though Primark is very much successful in this credit crunch moment but it is also need to fulfil the lacking of organization to meet customer expectation.
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Primark is a great organization and still making profit in this recession. But if they want to keep their position in this competitive market they need to sort over some problems such as * Primark online access should be available as soon as possible to gain competitive advantage. * Primark can introduce home delivery and promotions by online vouchers for the regular online customers * Primark’s ethical issues need to be rectify in according to provide safe workplace for the labours, and preventing of child labour. * Primark can expand market in footwear and cosmetics as it has good demand among the buyers.
on Managing Marketing in Primark
Marketing Strategy of Primark analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Primark marketing mix, help the brand succeed.
Most of Primark customers are switching to rivals because of their quality products and good marketing strategies which Primark lacks. Marks and Spencer, the biggest rival of Primark has very extensive marketing strategies with strong brand portfolio.
I suggest Primark to move online by launching high tech website for online sales. Product development is growth strategy where business aims to introduce new products into existing markets. It requires development of new competencies and to develop modified products which can appeal to existing markets.
Figure, depicts segmentation criteria for consumer market, determines base of segmentation and explains variables for each base As Primark is tagged a value clothing retailer, clothing is most important and leading item in its product portfolio follower by footwear. Its marketing segments are evaluated on basis of clothing and footwear.
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