Business overview of Primark Stores Limited

dividing line overview of Primark Stores LimitedPrimark Stores Limited is an Irish clothe retailer. Its stores argon turn up in sundry(a) regions like unify Kingdom, Ireland, Spain, Germany, Portugal, The Netherlands and Belgium. Primark stores day by day change magnitude its number of refreshful clothing stores, with Two hundred and seven stores boilers suit distri exclusivelyed in seven major regions iodin hundred -five in the United Kingdom, thirty-eight in Ireland, eighteen in Spain, one in Netherland, one in Belgium, two in Germany and two in Portugal. The company in like manner positions itself as handleing fashionable at free-enterprise(a) monetary values. Arthur Ryan and his collaborator Micaela Mitchell plain-spoken its first clothing store in Dublin Ireland in 1969. afterward various triumph in clothing craft, great mesh make water and earthy income guide them to open stores in local and regional argonas. It acquired various locations in diametrical duty centers within its local and regional realms which eventu tout ensemble in ally soften much profits and income.Primark is known for selling turn at truly agonistical impairments in the merchandise. Its success is home plated on sourcing supply, qualification clothes with mere(a) designs and fabrics and targets teenage, fashion- cognizant individuals ages 35 be get-go, religious religious quiping them unproblematic yet mettlesome attribute clothes and app atomic number 18ls. Hence, these successes brought signifi tusht changes on Primarks retail business. Success after success by opening new stores every year the relevance of world(a) trends and consumers demands on lifestyle made Primark Store Limited reinvent its business scheme and relaxation methodrainment structure.http//www.primark.co.ukPrimark OverviewPrimark Stores Limited is an Irish clothing retailer. Its stores ar located in various regions like United Kingdom, Ireland, Spain, The Netherlands, G ermany, Portugal and Belgium. The company positions itself as marting fashionable at competitive legal injurys. It is a great place to go for stylish, trendy clothes without the dear(predicate) price tag. Whether its on the go or for something which sack up exploit up to advert like a soaring-pitched street find.It has 207 branches in UK and Europe by November 4, 2010. These are as fol measlysIreland 38Spain 18UK 145The Netherlands 1Portugal 2Germany 2Belgium 1 native 207The clothes in Primark are fashionable and trendy.Womens Wear Party dresses, tame or holiday clothing, Lingerie, Accessories andFoot wearMens wear Casual or clump clothes, everyday essentials and footgearChildrens Wear Fashion or essentials products for girls, boys and corrupt wear.Jewelry Jewelry is the favorite part it includes childrens mini jewelry andadults jewelry. The prices are very middling. Everybody sewerafford those prices very easily. mansion Bed sheets, towels, curtains, duvet cove rs and pil woefulsOther Items Other items include bags, belts, purses etc. Style, fictional character and low-cost prices all rolled into one at Primark.The original clothing store was naturalised by Arthur Ryan and his collaborator Micaela Mitchell in Dublin Ireland in 1969. After various success in clothing business, great profits and gross income led them to open stores in local and regional areas.Primark employs simplistic managerial unconscious process on its stores structure. Every store has its own manager who is responsible in overseeing the status and business operations. Managers are given the business leader and control to manage the store within his/her point of responsibility. Assistant and deputy managers are overly assigned to control and manage the store in smaller or braggart(a)r branches. Within the store, thither are different subdivided segments in which a manager is assigned like senior department managers and junior department managers who are in de baseborn for individual departments. Moreover, under management, in that respect are supervisors in charge of round on a sales floor, on different departments like stock room staff, node run staff, client do desk, immediate paymentiers who work on the tills, money office staff and staff responsible to look after fitting rooms.Source www.primark.co.ukPRIMARK OBJECTIVES AND AIMSTo generate healthy case products for the universal we inadequacy the public to realise we are a good company and just beca give our products are cheap, it doesnt mean that they are rubbish. We testament accomplish this by having our products made by battalion that know what they are doing and test them to check that they are good calibre.To sell goods at reasonable prices We want the public to give birth a wide couch of options to them, so we offer them good lumber products at reasonable prices This depart be achieved by aspect at other stores, selling similar products, and making our price s raze than other places.To be friendly and helpful towards nodes and staff The public need to think that we are a friendly company this will make them want to come to our store if they feel welcome. We will achieve this by greeting customers as soon as possible and making those feels welcomed.To do by everybody the analogous The public need to feel like we treat everybody the alike(p). The people with less money will be treated the same as people that take for lots of money. This will be achieved by making everyone in the store feel individual we will make everyone feel like they are spare .http//www.blurtit.com/q2904588.htmlNovember 8, 2010. 1853 rendering of the tradeThe electron tube cash and brook business lies in the monopolistic Competition. There are few sellers and each has its own specialization and it charge the prices according to the product shade and characteristics. There is no entry or dismissal barrier in this grocery store. Even five more than cash an d carry businesses are al low geared by government to open their branches in Pakistan.Market Focus and SegmentationSegmentationMETRO divider of customers is mainly relate with the two factors, Retailers, and professionals of every sector and kind.SegmentationWe design the suitable segmentation of the METRO Cash and backalizeGeographicRegion South Asia soil PakistanState PunjabCity Lahore, IslamabadDemographicOccupation HoReCaIncome Level minimum Rs.20000Economic factor Inflation, reduced increaseivityPsychographicSocial Class running(a) Class (Retailers andProfessionals)Buying Habits ConveniencePerception High Quality with low pricePersonality Profit ConsciousBehavioralBenefits Shopping at one place, Customer CareUsage rate weekly subroutine RegularLoyalty status Strong customer relationship dexterity Stage Desiroussource (www.metro.pk)TargetingThe targeting scheme of METRO cash Carry depends upon the segmentation. METRO carries the differentiated market targeting scheme. They take the whole customers as a market and carry out the marketing strategy same for the whole. At this time METRO cash and carry is concerning with the preeminence strategy. They bottomland in like manner come up with the steering strategy for the retailers so that they think that METRO cares them and conducting a major portion of business just for the retailers. It will lead and internally force them to come to METRO just to admire its service and respect to the retailers.Is it a focussed strategy?Yes in the sense that all their customers are users of databases. No in the sense that they are all different sizes and sectors. Also -WellData do non sell the software applications licenses. They can, and do, sometimes sell hardware but this is as a convenience for their customers.Is it a note strategy?Yes in the sense that they are looking specializedally at wholesalers and retailers.Yes as their approach to the core function is fundamentally different to the rest of the m arketplace (no fail).Yes as they have a key lineage pretend report for customers before the start of the working day.Yes as all technological staff are employed and not contracted.On balance this seems to be a differentiated approachIs it a constitute leadership strategy?Possibly. Because they always believe in low prices. . METRO portrait the anatomy of this cash and carry whole sale departmental store as the lower prices with the high quality and availability of everything at a same place. You just visit it and you can get every thing what you can think to buy.Based on the in a higher place , very simple, observations, the metro cash carry strategy would fall somewhere surrounded by the differentiation strategy and the focussed strategy.In terms of Bowmans Strategy Clock the picture is clearer. vacuum tube fall clearly into the Differentiation strategy.Premium Priced or not?The unbelief of price premium is open to win discussion. Although this next section should reall y be covered in the analysis of Metro cash carry under Porters five forces model.Quantix will open the proposition with a low price and low added value service. If the customer buys into this it is a relatively simple matter to upsell the customer to more expensive, but more added value, work.1 flyspeck price/low added value Likely to be segment detail2 blue price Risk of price war and low margins/need to be cost leader3 Hybrid Low cost base and re investing in low price and differentiation4 Differentiation(a) Without price premium. Perceived added value by user, yielding market share benefits(b) With price premium. Perceived added value sufficient to bear price premium5 Focused differentiation Perceived added value to a particular segment, warranting price premium6 Increased price/ model Higher margins if competitors do not value follow/ encounter of lo losing market share7 Increased price/low value merely feasible in monopoly situation8 Low value/ beatised price Loss of m arket shareInternal Review organizeStrengthWeakness The company has over 207 stores around the euorope and of those 145 stores are located in the UK. Primark has very organised business structure. which provides good quality go to their customers. It offers a operate of muse opportunities and employees more than 30,000 people. It provides a high street quality clothes at reasonable prices to customers. Primark is part of the ETI (Ethical craft Initiative) which focuses on workers rights, their production of goods and bringing businesses together to work on elbow grease rights issues. Primark provides clothing for childrens, men and womens of all ages, it as well provide some kinfolk nettleories.A research company TNS who rank Primark as UKs second largest clothing retailer by terms of market share.Primark has very affordable and competitive prices.Mainstream market product quality.Stores in High Street locations.It has clear focus on the target market.A strong consumer propo sition has been developed for the Primark tarnish and embodied in the line Look Good, Pay Less.It has 28 geezerhood refund policies. Primark facing child labour in india and bangladesh for producing their embroidred clothes, although it is member of ETI (Ethical art Initiative). Due to these negative reports they stop working with three bulky organizations in India. It has poor working conditions and not properly giving their workers their full rights. Primark has riddle with promotement because the company does not advertise their products and this gives their competitors the return over them.Employees overwhelmed by the amount of work to be done. Primark purports less value on honest matters. Exploitation of the employees and abuse on labour force. Poor working conditions. The primacy of unequivocal and rigidity on standard structures. Child labour. The primacy of autocratic and rigidity on standard structures.OpportunityThreats Primark expanding their business to opening more new stores in the UK and in euorope. And has now opened 17 stores in Spain to battle on its competition like Zara. Primark now has an opportunity to share their high quality products and services overseas. It provides a high quality clothes to fashion conscious people in UK and Euorope. Primark is a parent company for ABF. Primarks energy pulmonary tuberculosis in Great Britain is sourced against the green power generated and sold into the grid by sister company, British Sugar. Primark shares many of its suppliers with its competitors on the high street. Primarks are in great competition with other companies such(prenominal) as Zara and HM which is their big affright. The other flagellum is that will it match the demand of the customer in terms of fashion and uniqueness? As the Primark do not advertise for their products while their competitors do. This can be a threat for Primark for not advertising. fiscal crisis- credit crunch. Cheap quality product. The pr imacy of autocratic and rigidity on standard structures. Increasing competitive pressure matalan, peacock, H M.Marketing StrategyIt is a great place to go for stylish, trendy clothes without the expensive price tag. Whether its on the go or for something which can make up to look like a high street find.Who are existing/ potenceity Customers?People from all ages and sex belongs to all sectionalizationes such as lower middle to high class is Primark potential customers. They buy product on regular bases.What are their current/ future needs?People want to buy fashionable and trendy clothes.How can we satisfy these needs?Primark can satisfy their customers by providing them good quality clothes on affordable prices.Why Should Customers buy from Us?Customers buy cloths from Primark due to their high quality fabrics, fashionable designs and due to affordable prices. Also clothes are for sale for all ages and sex.External ReviewPESTPolitical FactorPrimarks business operations are the aid of government policies and regulation for example providing proper working environment for their workers.Primark is part of the Ethical Trading Initiative (ETI) to cope with workers and to improve their working conditions.Primarks energy utilization in UK is sourced against the greenpower generated and sold into the grid by British Sugar. Primark is a British clothing retail that promotes an honest approach to people in factories ad farms oecumenical to improve living standards in countries with vulnerable conditions such an India and Bangladesh. Primark constantly practice training and work programmes to escort that its follow the strict code of conduct of the company. Primark Better Lives Foundation provide financial help to new-made people in developing countries.Economical FactorsPrimark more focus on young Consumers especially the under 35 of age.Every year Primark is expanding their business by opening new stores in UK and moved its business around Europe. Primark offers to customers quality of merchandise at a affordable value for money. Primark has a high percentage of customers loyalty. The retail contribute to the economy in developing countries, this provide employment.Social FactorsIt is a great owner for Primark by receiving several awards for world value retailer of the UK.It now operates from 5.4 million sq ft of selling space, which gives itthe advantage of providing more goods and services and also can display moreitems which consumers can see to buy their favorite product. Primark adapts to the cultural issues in developing countries such as local attitudes, government and legal requirements. The clothing retail base its strategies on trust and transparency to the benefit of the people. In collaboration with the community, Primark has specific recruitment programmes to reach a wider group of people such as Job Centers, Universities, local communities, also, flexible hours this brings an effective and friendly workplace. In humanitarian, Primark has a home working policy for those whose prefer to be at home. scientific FactorsIn Primarks bid for world class, cutting edge management of its ethical scrutiniseingProgramme, it has signed a deal with BSI Management Systems for theprovision of atomic number 16 Software.Primark did investment in Entropy Software which is a key part of Primarks ethical trade strategy, allowing all supplier audits, non-conformances and remedial actions to be managed through with(predicate) the Entropy Software platform, with much greater global visibility and management control. In general retailers as Primark take risk in developing new technologies by importing and exporting technologies from abroad, as focus on quality, cost and usefulity, investing huge amounts of capital in manufacturing processes and aiming at high peck production. This process open new opportunities in developing countries and retailers can use it effectively.Porters five forces modelPorters five fo rces developed by Michael E. Porter of Harvard lineage School in 1979. Give a framework for environmental audit but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of productsThe threat of new entrantsThe threat of new entrants is LOW for Primark because of the highcost setup. provide of the SupplierPrimark does not rely on one big supplier rather they have number of smaller ones. And so here the bargain power of suppliers is LOW with Primark.Bargaining Power of the BuyerCompetitive aspirationCompetitive rivalry is HIGH in case of Primark as there are number of similar size players in the market with offering similar product and due to high cost on exit (Exit barrier).Threat of the SubstitutesThreat of substitutes is HIGH because other company are offeringsimilar products with low price and now it is very easy for customer toswitch from one product to other as they have do more choosey.Bargaining power of BuyersDegree of Buyers power is HIGH, as there are multi players in themarket and now customer are more sensitive towards the price so theyvisit every shop and indeed make decision and the switching cost is alsonot too high.The bargaining power of buyers in this case is very high because of the multi players in the market. There are attractive substitutes available to the buyer even in the form of keeping the same cell phone number but changing the service provider. It makes very difficult for the market players to retain their customers. I think the brand loyalty can only be created through superior marketing campaigns and service.Bargaining power of suppliersThis is a type of intentness where, at least in present times, the bargaining power of suppliers is at the low level because of the nature of inputs for the business. Moreover, with the deregulated and friendly environment given by the government of Pakistan, the industry has become more competitive and quality services dri ven.Threat of substitute productsAlthough the cell phone subscribers are more than 95 million now, inactive the threat of substitute products is high for the industry. Buyer careen to substitute and price-performance trade off are the most important to calculate in determining the threat of substitutes. Actually, just the subscription of cell phone service is not enough for a company to get optimal profits but the real challenges is that how many existing customers are using the service regularly for incoming as well as outgoing calls. The quality of service is the parameter.Threat of New EntrantsThreats of new company like Zong is also there. Which offers very attractive packages to customers. There can be some more companies in future who can enter in this industry.Product manner CycleWhere do Primark fit in terms of the Boston ground substance?Ansoff Matrix (Product/Market Matrix)Source http//tutor2u.net/business/strategy/ansoff_matrix.htmSame Product Same market (Market Pe netration)This is the least barbarian of all the routes. It fits well with the results of the customer profile analysis which shows that the WellData customer base contains significant numbers of large companies who are also national or Global in their nature. By focussing on the existing customers and cross selling or up selling, WellData have the opportunity to tap into a market segment that already likes what they do and where the strength of internal customer references should work favourably on their behalf.Same Product New Market (Market Development)This is a more risky approach as it involves WellData being able to clearly identify a new market segment in which to operate. Given the difficulty in identifying a clear segment in which they already operate, the danger is that the elect segment is hard to define, hard to identify and hard to quantify. In addition WellData have no Brand name outside their existing area of operation and in this aspect would face the same barriers to entry describe in Porters analysis above.New Product Same Market (Product Development)For WellData this lies between Market Penetration and Market Development in terms of Risk. They are already established in their own market place and have a good reputation amongst their existing customers. An area of relatively simple product development is the move to desktop support.This is a function that WellData already carry out for some existing customer and which lies within their functional capabilities. They can simply offer the extended service to existing customers as an upgrade to the current services.New product New Market (Diversification)This is a high risk approach and is not one that would be simple to bring about in Metro. The move away from current expertness sets and current markets would place a burden on Metro that they are unlikely to want or be able to afford.RecommendationsFrom the four directions above the Market Penetration and Product Development offer the lowe st risk. The markets for the services (Database Admin and Configuration, and Desktop Support) are sufficiently large to allow for customer learning without enormous marketing expenditure.MarketingManagement ProcessAnalysis/ visit where are we now?Currently WellData is a problem child. They have a small market share in a growth market. In order to grow they need to attack their existing account base and cross-sell and up-sell. Their sales revenue is just above a million and the breathing in is to be a dominant player in the IT Support market place. To achieve this they have to focus their activities in areas where their strengths (technical expertise and a low cost base) can be brought to bear.Product StrategyMarket discernment and Product development are the two key directions for WellData. The ease of access to the market and the related nature of the services opens up new areas to WellData without the risk of massive investment in either people, marketing expense or new technol ogy.Generic StrategyWellData are transitioning from a focussed/differentiation strategy to one of cost leadership/ differentiation without a price premium. In Bowmans terms this would be a hybrid strategy. Such a strategy is designed to attract market share. determine StrategyPricing strategies need to be rethought in order to counter the tactical threat from Quantix. WellDatas all you can eat buffet approach has been effectively countered with the placard of the Day approach from Quantix.The 4 PsMARKETINGPRICE returnPLACEPROMOTIONProductStyle for menWith a range of brands from Cedarwood State to DenimCo, Primark has the fashion for all occasions. With everything from formal suiting and footgear to a more casual look in denim and T-Shirts. We have everything to put your look together and its all available in your nearest Primark store.ClothingOur Butler Webb range will cater for all of your formal needs, with cotton shirts, silk ties and a premium suiting range. Within our Backswi ng section we offer a full range of sportswear styles, from golfwear to ski-wear.AccessoriesEvery fashion-conscious man needs to top off his outfit with the perfect hat, scarf, wallet or bag. dress everything you need for accessorising your look in our mens accessories range.FootwearFrom formal shoes for that special occasion to our canvas shoes for a more casual look, the Primark mens footwear range will take you from formal sophistication to street-savvy in no time.WomenwearPrimark prides itself on providing its customers with up-to-the-minute fashion at affordable prices. Our aim is to ensure you get the right look within our stores, so if youre looking for the up-to-the-minute fashion in clothing, accessories, footwear or lingerie, look no further than your nearest Primark storeClothingWith everything from the latest styles to the essential items that keep you looking chic, Primark has it all. Skirts, trousers, cardigans, dresses, jackets and much more.LingerieFun, flirty or functional its all at Primark. And of furrow its affordable lingerie with the quality that you hope for.AccessoriesComplete your look with the latest trends in accessories from bags to bracelets and everything in between.FootwearDiamonds may be a girls beaver friend but shoes come a close second. At Primark we have an entire range to fulfil your inner fashionista and put the finishing touches to your outfit.Everybody knows kids grow fast, so keep them in fashion at affordable prices at Primark. Your nearest Primark store has everything you need, whether you are a bouncing bollix up or a fashion-conscious teenager.GirlswearEvery girl wants to look her best and at Primark we make no exception for the younger ladies.BoyswearWhen you think of boys, you think young and fun. At Primark we think the same and we ensure that all of our boys clothing is not only young and fun but also practical and affordable.Babywear trim back your bundle of joy, whether a boy or girl, in great bilk ba sics to fashionable outfits. Everything your heart desires and your baby needs can be found in your nearest Primark store.homeAt Primark we know that Home is where the heart is, so if youre re-decorating or just want to add something a little special from fragranced candles to velvet throws, check out our homeware products to bring that little bit extra to your home. Youll find sumptuous bed linen that can keep you cool in the summer and warm in the winter, including plump out bed sets, duvet covers, two-pack hollow-fibre pillows and 100% cotton percale sheets. We have a range of duvets available in single, double or king sizes.For the cleanseroom you can buy cotton towels in 11 colours and two-pack reversible bath mats. To enhance the pampering you deserve, we also have candles, all delicately fragranced in seasonal scents and colours.And you can give your living room that feeling of class with products from our range of cushions and throws including cottons, chenilles and velvet s.www.primark.co.ukPlaceIreland 38Spain 18UK 145The Netherlands 1Portugal 2Germany 2Belgium 1Total 207PricePriceTops- 3-7Bottoms- 5-6Denim- 12Bags- 5Purses-3Belts- 2Jewellery-1.50-2.00PromotionSocial NetworkingMuch has been made of the development of social networking as a modern phenomenon especially amongst the young. However it is increasingly the case that modern legislation is preventing suppliers from communicating with potential customers unless the customer has already agreed (Telephone taste perception Service, Corporate Telephone Preference Service, Mail Preference Service, Data Protection Act etc). This clear Catch-22 is forcing suppliers down two, increasingly expensive and unproductive routes.Google AdwordsMedia advertisingSocial Networking (Facebook, Twitter, Linkedin, Myspace etc) offers a new route to potential customers that is currently quieten open to businesses. Although these routes are not free, they are still novel enough to attract attention and be c onsidered as a user friendly/personal route to market.However these routes are not without challenges of their own. The time and human resource required creating and, even more importantly, maintaining these pages on a daily or hourly basis is a coarse investment in its own right.E.G. A Facebook page is free. Facebook adverts operate on a pay per click basis (similar to Google). Although these adverts can be targeted to specific job titles the actual number of people who will be targeted is still small as many Facebook users do not include their job title in their profile.A combined approach of Twitter and Facebook seems to work well and have little external cost. IE Twitter an update (Windows 7 etc) and link it to Facebook. This gives two opportunities to get your name out to interested parties without massive expense.RECOMMENDATIONS AND CONCLUSIONSPrimark can easily expand and diversify, giving its rivals a competitiveenvironment with substantial financial power.