Describe about marketing Strategy of Primark, rise of the online fast fashion and strategies to address areas of concern.
In this report, the marketing strategies of Primark will be investigated for understanding the market situation of the company. Primark is one of the most popular retail companies in the present market of UK. The company is now the second largest retail company with respect to the sale per year. They have the aim of being the largest retailer in the UK market. In this report, the marketing strategy of the company will be investigated and the marketing strategies of the competitor companies are also investigated. The poster has been developed with the help of the findings of this research report. The recommendations of this report will help the company to achieve the competitive advantages in their future business.
The clothing retail industry is one of the fastest growing industries in the high profile business environment of the present UK market. The target marketing and product marketing strategies are well developed and planned (Primark.com 2016).
The company is providing clothing products and some footwear. The brand value of the company is very high and they provide the best quality products to their customers. Mostly the middle class and upper middle class people are the target customers of the company. The company is using the online platform for promoting their products and services. They have the belief of the fact that they are providing right value for the money of the customers. The market position of the company is very good and they are conducting their business very well through the use of their marketing strategies (Primark.com 2016). The products of the company are clothing and footwear. All types of clothes are available in the stores of the company. There are different sections of the stores for different types of people such as kids, ladies and men (Primark.com 2016). The company has its outlets or stores in many of the countries across the whole world. This report has been developed by focusing the market of UK. So, the market place of the company will be the UK. The company is not focusing in the area of promoting their products like the other competitor companies. They has the believe of the fact that the high brand image and rich quality of the products are enough for attracting the customers towards their products (Primark.com 2016).
Like the other business organizations, Primark is also facing tough market competition from the other retail companies such as ASDA, Marks & Spencer, Tesco, Costco, Next, Zara and Matalan. Analysis of these retail companies determines that Primark has better business strength and high market share in the present condition. The product quality and the financial strengths of the company are very high and the company is highly dependent on these facts for gaining the competitive advantages (Lovelock 2011).
Advertising: The company is totally dependent on the product quality of the company. They do not give so much advertisement in popular media like the other companies. Although the company is performing better and getting a mentionable profit by the high sale of their products, but the situation might not be so good in near future (Berthon et al. 2012). The competitors companies are also facing high growth in their business and they are using high level of promotional tools for attracting the customers. This may be the cause of dangerous situation in the future business growth of the company (Fifield 2012).
Another area is the use of technology, depending on which other companies are growing in their business. Most of the clothing retailers are suing the latest technologies in their organizational strategies and the promotional strategies for marketing their products. The tendency of online shopping is growing very fast and the competitors companies are using this fact and growing very fast in their business. The Primark do not use updated technologies in their business strategies or in the area of the promotional tools of the products and services of the companies (Kumar and Rajan 2012). The competitors of the company are trying to bit them in this area. The world is changing and the people are attracted by the new technological areas and innovative online portals for their marketing. In this area, the company has some lack of planning. They need to focus in this area by the use of some innovative IT tools for developing a well planned online portal for making the shopping of the customers easier (Cronin et al. 2011).
The company is presently in a good condition and conducting a good business in the UK market, but the intense market competition may affect the business of the company negatively very soon. Therefore, the company needs to focus in this area to gain the effective level of competitive advantages by developing a good strategy. In this area, Porter’s competitive strategies can be helpful to get the competitive advantages through the application of different types of approaches as described in the theory (Solomon 2014). Porter has given some generic strategies for achieving the competitive advantages in high level of market competition. The most popular two strategies are cost leadership strategy and another is the differentiation strategy. These two strategies can be implemented in Primark to get the effective level of competitive advantage (Lusch and Vargo 2014).
Cost leadership strategy: One of the major problems of the company is the high prices of the products. Sometimes, the products are not affordable by the common people because of this fact. Targeting only the people of high society will not be effective for the future business growth of the company. Depending on the product quality, the prices of the products of this company are very high. Therefore, the company needs to develop cost leadership strategy to resist the other companies to gain the popularity in the developed market of the company (Piercy 2014). In this strategy, the company will be able to deliver the products at the most affordable price by minimizing the production and logistic costs of the products. Lower costs of the products will attract more customers towards the company. Beside the lower costs, the company should also maintain the quality of the products as well. In order to do this, they need to find the superior raw materials for the productions of the products. In this area, they need to use the innovative tools of the information technology and the internet technology. These two technical tools will help to find the suppliers with finest quality but in a lower range of price. Sometimes, this strategy can also be the cause of lower customer attractions because of psychological issue. Some of the high society people may think that the lower prices of the products have reduced the quality of the products. Therefore, the company needs to provide the products for both of the high society people and the middle class people. Indirectly, this will result in more products availability in the stores of the company (Armstrong et al. 2014).
Differentiation Strategy: Differentiating the products from the other companies will help the company to attract the customers with the exclusiveness of the products and services provided by the companies. They need to focus on the differentiation strategy where they can differentiate their products and services from the other companies to gain the competitive advantages. The innovative use of the Information Technology may provide the web platform where the customers can find some uniqueness than the other companies in the same target market (Schmidt, Spann and Zeithammer 2014). Developing some unique design of the clothes may be the cause of the availability of some unique products which will differentiate the products of the company form others. This uniqueness may attract many new customers towards the products and services offered by Primark.
Price:
The prices of the products of Primark are very high compare to other clothing companies. The prices of the products of the company are high because of the high quality raw materials used for the products and the rich designs of the clothes they offered to their customers. The brand value of the company is also very high and the prices of the products are high because of this reason also (Marketing Donut 2016).
Web site and online portal: Primark should redesign and then re launch the web site or online shopping portal with high tech support available in the present area of the Information technology. They should incorporate the online shopping facility by adding the online shopping carts in the website of the company. The design of the website should be unique and some new technical platform should be available for making the purchasing of the customers easier (Hollensen 2015).
Introduce new range of products and services: It is one type of market development or can be called as the market promotion by introducing new products and services. This will attract the customers who like to try different types of new clothes frequently and conscious about the fashion (Ferrell and Hartline 2014).
Introduce food courts or cafes: As the company needs to develop differentiation strategy by providing some special services besides the selling of the clothing materials. In this area, introducing food courts or cafes may be helpful for attracting more customers to have a lot of services in one store (Jarvinen and Taiminen 2015).
Introduce loyalty cards: In order to attract the customers and or gain higher level of customer loyalty, the company should introduce loyalty card programs in their stores. In this scheme, the customers will be able to get some extra facilities and this will improve the loyalty level of the customers. They will purchase more from the stores of the company to get the faculties of the loyalty cards (O’Shaughnessy 2015).
Decreasing the cost of the products: As mentioned previously, the company needs to develop cost leadership strategy for targeting the customers of the middle class society. This will increase the target market of the company which may be the cause of better growth of the business of the company.
New market share: Market share can be increased by expanding their range of products beyond from clothing to handbags, shoes etc. This is another form of the market development or market penetration. New products ranges will attract the customers to have the facilities f getting a lot of things in one platform (Walker and Mullins 2014).
Conclusion:
The marketing strategy of Primark and the completion of the company in the present UK market have been analyzed in this report. It has been found that the company is only focusing in the area of the quality of their products. Because of focusing in this factor only, other competitor companies are growing in the target market of the specific company. In order to compete with the competitors they also need to focus in the area of the costing and technological uses. The recommendation given in this report will be helpful for achieving the sustainable competitive advantages in the future business.
References:
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.
Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), pp.261-271.
Cronin Jr, J.J., Smith, J.S., Gleim, M.R., Ramirez, E. and Martinez, J.D., 2011. Green marketing strategies: an examination of stakeholders and the opportunities they present. Journal of the Academy of Marketing Science,39(1), pp.158-174.
Ferrell, O. and Hartline, M., 2014. Marketing strategy. Mason, OH: South-Western/Cengage Learning.
Fifield, P., 2012. Marketing strategy. Routledge.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Jarvinen, J. and Taiminen, H., 2015. Harnessing marketing automation for B2B content marketing.Industrial Marketing Management.
Kumar, V. and Rajan, B., 2012. Social coupons as a marketing strategy: a multifaceted perspective. Journal of the Academy of Marketing Science,40(1), pp.120-136.
Lovelock, C., 2011. Services Marketing, 7/e. Pearson Education India.
Lusch, R.F. and Vargo, S.L., 2014. The service-dominant logic of marketing: Dialog, debate, and directions. Routledge.
Marketing Donut, 2016. Marketing strategy. [online] Available at: <https://www.marketingdonut.co.uk/marketing/marketing-strategy> [Accessed 3 Feb. 2016].
O’Shaughnessy, J., 2015. Note on the marginalizing of psychoanalysis in marketing. Marketing Theory, 15(1), pp.17-19.
Piercy, N., 2014. Export Strategy: Markets and Competition (RLE Marketing). Routledge.
Primark.com, 2016. Primark – About Us. [online] Available at: <https://www.primark.com/en/about-us/about-primark> [Accessed 3 Feb. 2016].
Schmidt, K.M., Spann, M. and Zeithammer, R., 2014. Pay what you want as a marketing strategy in monopolistic and competitive markets. Management Science, 61(6), pp.1217-1236.
Solomon, M.R., 2014. Consumer behavior: buying, having, and being. Engelwood Cliffs, NJ: Prentice Hall.
Walker, O. and Mullins, J., 2014. Marketing strategy. New York: McGraw-Hill Irwin.
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