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

Product offeringMen’s Women’

s

Clothing + Accessories

Kids Home ware and Beauty products

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

Market Analysis Competitive and Dynamic Competitors Today and Tomorrow New brands

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

Thank you