PRIMARK new market startegy

Topics: Eastern Europe, Western Europe, Europe Pages: 5 (1156 words) Published: July 23, 2014

GMS Project- part #1
Conducted on

April 14, 2014

1 Profile

The company we have decided to do our project on is Primark, which is a fast fashion retailer. In other words, it is a chain of stores where one can buy clothing and more, fast, in low prices and a wide variety to choose from. The company opened the first store in 1969 in Dublin, Ireland. Today Primark is operating more than 250 stores around Western Europe in the following countries: - United kingdom

- Ireland
- Germany
- Netherlands
Portugal
Spain
Austria
Belgium

In each of Primark stores you can find clothing departments for men, women and kids, house accessories department, underwear departments and shoes& Accessories department. Primark is a kind of pioneer in its field, giving its costumers a huge variety of products in super low and affordable prices, but still very fashionable, with a collection that changes every few days. The company provides its own unique designs for all members of the family. The stores work very effectively, with a very large staff in the stores which makes the buying experience very pleasant for the costumers (in compare to other low-price clothing-marts in the world).

2 SWOT Analysis:

Strengths:
Primark matches a wide range of costumers thanks to the large variety of products it offers. This comes along with the fact that the store offers clothing for every member of the family which gives her an advantage over its competitors (such as Forever 21 or H&M) that focuses only on men and women clothing and accessories. Primark succeeds in keeping a very low prices range, most of the time much lower than the competitors, despite the very high rent costs of the stores and their center locations. The Primark stores are managed very professional way, and the staff are guided very accurately on how to handle the costumers. This different way of running a store leaves very little place for mistakes, thefts or confrontations with costumers.

Weakness:
In order to keep the low prices on the merchandise, Primark imports almost all of its products from the Far East, in a medium-low quality. ,mostly, people who pay low prices on products does not expect it to last for too long, but sometimes the quality is so poor that the costumers feel very disappointed and deceived. The Primark stores are located mostly at the far end of the cities, in large malls, making it a hard time reaching the store and requiring the costumers traveling quit a way to reach the store. This way, the company loses the passing by costumers in almost a 100%. This weakness is the other way to look at the last strengths we have motioned, the district rules of handling the costumers. Sometimes it seems to the costumers that the staff is working like robots. They cannot make exceptions what so ever and sometimes are so into their work and rules that they look grumpy and unpleasant to the costumers (this information has been taken from article discuses the fact that 57% of the tweets on tweeter regarding Primark are negative).

Threats:
In the last couple of years, other fashion retailers such as Zara and Forever 21 has identified the big advantage of opening large branches that include all of the brand's departments and product under one roof, and some of them are even trying to compete Primark by opening those stores right across the street. The latest months discourse on the social networks can be very harmful for Primark. This retailer counts on the loyalty of its customers, to come back and buy a lot every time. The social networks become more and more influential in the last years, making it almost impossible to control the public's opinion of your company.

Opportunities:
Forever 21, an American fashion retailer has a large building in Antwerp (Belgium) in a very central location of the city. Right now Primark has currently...
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