Primark Company Report

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CONTENTS

1.0 Introduction

2.0 Nature of the business

3.0 Market position within the industry as a whole

4.0 Main objectives of the business

5.0 Quality standards & approaches for service quality

6.0 Customer profile & target market segment

7.0 Competitor profile & marketing methods

8.0 Employment practices & investing in people

9.0 External influences which impact on the business and your role in the business

10.0 Products & Services

11.0 Conclusion and Opportunities

APPENDIX 1

1.0 Introduction
Primark Stores Ltd. Is a value fashion retailer that was founded in 1969 and operates as a subsidiary of Associated British Foods plc. Primark sell a wide variety of product from clothing to homeware catering for all ages and sizes. Primark is recognised as ‘the leading value fashion retailer in the UK’ (Mintel, 2011) and with 232 stores currently operating across the UK and Europe, in addition to more opening every few months, Primark is expanding quickly and predominately in the industry.

2.0 Nature of the business
Primark have adopted a price leadership strategy, which has helped define the brand and market position within the retail environment. The Primark brand aims to cover every product area their target consumer could want for, in turn eliminating the threat of competitors. Primark source products from several overseas suppliers and then have the goods shipped/air freighted back to be sold in the UK and Europe. When selecting appropriate suppliers, Primark’s main focus is on price and lead times. Primark tend to source garments that can have a long lead-time such as basic repeat lines, from the Far East as the prices are unbeatable and the brand can afford to wait for long shipment. Sourcing supplier strategy differs slightly when looking to source ‘fashion’ products as to keep ahead of its competitors Primark may look to source closer to home, such as Turkey, to ensure they don’t miss out on bringing in a potentially success trend ahead of its competitors.

3.0 Market position within the industry as a whole
The rise in fast fashion and the decline in the economy have seen a major increase in the number of consumers turning to value, fast fashion retailers in substitute for the more expensive high street brands. Since 2006, Primark has ‘doubled its market share’ (Mintel, 2011), making it the fastest growing of the major specialists. Although the industry appears to have been fluctuated with value retailers, Primark has always managed to remain in top position with its competitors striving to hold onto the market share they currently occupy. Some may class Primark at the lower end of the fashion industry as its not high end designers but

4.0 Main objectives of the business
Primark main objectives are to provide the latest fashions with the shortest lead-time at the best prices. There is no set mission statement that Primark ‘live’ by just a general ethos of high volume buying and then selling at the cheapest prices. Primark are constantly trying to gain market share in the industry and are continuously introducing new product lines i.e. shape wear for women to help cover more potentially areas of growth for the business as a whole.

5.0 Quality standards & approaches for service quality
Primark demand good quality from the products it puts it name too and not just low prices. Recent developments have seen ‘Garment Technologist Specialists’ assigned to each of the buying department to help monitor, assess and combat any potential issues that may arise on products coming from suppliers overseas.

6.0 Customer profile & target market segment
Primark’s core target market is ‘the fashion conscious under 35s’ (Mintel, 2011). The typical Primark shopper likes to be able shop quickly and easily, picking up the latest trends and fashions whilst maintaining a certain budget. The way the stores are laid out, is...
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