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Product Primark is a fast discount fashion brand that is owned by the company Associated British Food(Shawcross,2014). The retailer provides consumers with a range of products such as baby, kids, women’s, men’s, home ware, accessories, beauty products and confectionery at very cheap prices. Primark first opened in 1969 where at this time it was called Penney’s and was situated in Dublin, however now the store is now a company apart of the group Associated British Food. Primark operates in over 320 and is situated in 11 countries in Europe and now recently opening stores in America. Primark is a discount fashion chain selling their products at cheap and affordable prices. This makes the store differ from other fast fashion brands such as H&M and Zara due Primark prices being far cheaper. This creates a unique selling point for this brand as other stores can’t compete with this. Due to the prices being very cheap this can be shown in the garments on sale, as the quality of the garments are not as high end as Topshop due to the value of them. Another unique selling point for the Primark brand is even though their retail prices are very cheap “fashionability and a focus on a young demographic are Primark’s unique selling point and something that the competition lacks in” (JustStyle, 2009). This means that even though the prices are very cheap the retailer still manages to produce stylish and current products to their target audience of 18-30 year olds. 2
Fig.1(Primark, 2015)
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PhysicaL Evidence The physical environment of the store is well organised and clear to see the products on offer. A tactic that Primark uses, to show the products in store is by separating the garments into different sections making it clear for the consumer to see what it is looking for. For example, in the women’s department they have the jean section, knitwear, workwear, active wear and general everyday fashion clothes all in their separate section of the store. The store has an atmospheric environment meaning the store is quite lively to keep the consumers interested and target their audience of 18-30 year olds who are mainly females. Primark has atmosphere with exposed brickwork, video walls, dynamic window displays and vibrancy(Reece,2012).
Fig.2(Retail Design Blog, 2012)
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Due to their cheap prices this also makes the environment more relaxed as consumers are not pressured into buying items unlike if you shopped in a luxury store. “I am far more at home here than ever I was in a W11 boutique being coerced into spending £280 on a kaftan”(Lean,2007) is a clear example of how consumers feel when they shop in the discount retailer. However, in some stores Primark is known as to be one of the messy stores on the high street due to the high demand of attention they get which sometimes effects the consumer and what they buy as it can sometimes be difficult to see the products on offer but this is due to Primark being one of the most popular stores on the high
People To keep Primark a successful running business there are many people who work for the brand to help it maintain their success rate. As stated earlier in the report Primark use a strong PR system that helps to promote the store. The PR team help to maintain the running of the social media side that promotes the store and keeps customers interested in the products on offer. They are also in charge of keeping the website up to date with the latest products and styles that Primark have created and are selling in stores. The use of the customers are also a very influential factor that effects the Primark store in a beneficial way. The consumers are the people that influence and help Primark decide on the clothes and styles they should be creating and selling in store. This is because “Primark is known for its fast response time and it’s very quick to get things onto the shop floor”(The Herald, 2013) meaning when they seek out new styles and trends it does not take long for Primark to design, manufacture and send them to store.
Fig.4(W
Competitors of Primark are also very influential people that effect the business in the marketing mix. Goodway, 2014 stated that “Zara and H&M are Primark’s main competitors across Europe and are already doing well in the US”. These are Primark’s two main competitors as they sell relatively low priced products that are very current in the trends. Now that Primark has also opened 8 stores across America these two retail stores will still be Primark’s main competitors. As Primark, H&M and Zara are in direct competition with each other this means they have the same target audience of 18 – 30 year olds however Primark has the competitive advantage of its competitors due to the low prices of products.
Fig.3
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Promotion To promote the store Primark, keep their costs to a minimum and so use no expense ad campaigns(Primark,2017). Compared to other brands Primark doesn’t invest money in their advertising campaigns and so this makes them differ from the other high street brands as they gain less media attention compared to brands such as River Island and H&M who use TV adverts. Instead to promote the store Primark uses social media to connect with their consumers. Primark online global fan base is over 6 million(Primark,2017) and uses Instagram, Twitter and Facebook to connect with their target audience. The promotional strategy Primark uses is mainly store based and relies on a strong PR system, word of mouth and the general store to help promote the brand(Baker,2011).
Instagram. The use of Youtube is now also a very big media platform that allows different audiences who shop in Primark or who are not as familiar with the store see what other people are buying from the store. A very big influential vlogger that has helped this is the youtber Zoella.
Another promotional tactic Primark uses is the hashtag PRIMANIA. #Primania is an online platform that invites customers from all over the world to share photos and images of their Primark outfits to Instagram with the hashtag #Primania, which are subsequently shown in its LED store displays across Europe and the US(Hendriksz,2016). This allows consumers to see what products are being sold in the store at the time but also how the clothes look once they are worn and how they can be styled. Due to Primarks large social media platform the use of bloggers such as WeWoreWhat’s Danielle Bernstein and ItsMyRayeRaye Raye Boyce are able to promote what Primark products they wear through the use of Fig.5(Zoella Youtube, 2016) 6
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Place Primark is a retail service that uses Bricks and Mortar to deliver its products and services to the target audience. To make sure the products are available in store, Primark order stock in large amounts and in advance and so by doing this it helps the business to keep its overheads at a low cost. The products that are created are made in factory workshops, since 2011 Primark have partnered with Business for Social Responsibility (BSR), local partners and their suppliers on the HERproject (Health Enables Returns) to provide healthcare and health education to women working in the factories that make our products(Primark,2017). From the factories the products are then sent straight to store. The Primark stores all feature in a main city/town on the main high street. The placement of this helps to attract the consumers leading them to buy the clothes. Before selecting what type of products to feature in store they first segment the area by looking at the geographic location to decide what products need to feature. For example, if they were selecting clothes for the Primark store on Oxford street they would select fashionable and high quality looking clothes due to London being a very fashionable city compared to a store that featured in a town.
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However in 2013 Primark sold their products through the online etailer ASOS which is the closet Priamrk has gotten to becoming an etailer. This experience for Primark only lasted for a few months and was a trial for them where some of the menswear and womenswear collection were available to buy online. The trial is a “fact finding mission” and it would be “premature” to conclude that Primark will launch a full online clothing service (Ruddick,2013). However from this trial Primark has still not started using the ecommerce feature to sell their products.
Fig.6(Dianne Bourne, 2013)
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Process To create the products that feature in store Primark uses sweatshop factories to create the garments. Primark has ‘a code of conduct in place, to ensure products are made in good working conditions and all employees are treated fairly’(MailOnline,2014) as Primark have had previous issues regarding the use of sweatshops. Therefore, now Primark wants to create and sustain customer loyalty by making sure the garments they sell are coming from a safe and professional factory. From the creating process the garments are then sent to the 275 different stores across the world that Primark own. This then allows the customer to buy the products in store as Primark uses a Bricks and Mortar service. Primark only allows consumers to obtain the products through buying in store. Primark use a website to promote their products online and allow the target audience to see the products on offer. However, the retailer does not use the e-commerce service as the business wants to keep costs as low as possible and so due this the high-volume sales result in high profit margins for Primark allowing the brand to make a high amount of income by doing this(Fletcher,2014). Kiffen stated that customers are also not likely to pay £10 to have an item shipped with an extra delivery price on top of £10. This means that the low price isn’t being target towards the customer leading to a decrease in customer satisfaction. However Primark do have 10
Click on box to create a Primark account.
a website where consumers can look at the new products in stores and new trend styles and also create a profile with Primark to save products they are interested din or even upload images of themselves wearing the products. Even though the consumer cannot directly buy from the online website, this does lead to interest from the target audience leading to them visiting the store to check out the products which is beneficial for the store as it leads to potential profit. Fig.7(Primark, 2017)
Fig.8(Primark, 2017)
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Price
Primark Denim Jacket - £15.00
The pricing of the Primark brand is kept relatively low to help sustain a significant growth (Russel, 2015 - A). The cheap pricing of products creates a difference between Primark and other retail high street stores such as H&M and helps to gain significant growth for the brand(Russel - B). The charge of low prices is due to the fact that the garments being produced do not cost much contributing to the final low end price and do not use a high quality of material helping to keep costs low. Recently Primark has opened a store in Boston, USA, PYMNST, 2015 has stated that they “view Primark as a new Fig.9(Primark, 2017) threat to Macy’s, Kohl’s, Old Navy, and teen retailers given prices and full teen collections.” The pricing strategy that Primark uses to gain customers is econ- Topshop Denim Jacket - £46.00 omy pricing which is the way businesses minimize the costs associated with marketing and production in order to keep product prices down(Maguire, 2016). By using this strategy it effects Primark in a beneficial way as competitors cannot decrease their prices as low and still advertise at the same time as this will lead to the business making a small amount of profit. To the right is an example of how Primark and Topshop sell both a simialr product made from the same material but have both charge two very different prices. this clearly shows how cheap Primarl prices are to other retailers on the high street.
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Fig.10(Topshop, 2017)
Financial Data Revenue of Primark from 2007 to 2016 7000 6000 5000 4000 3000 2000 1000 0
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The table above shows the revenue for Primark from September 2007 to September 2016. The data above shows how over the 9 years the revenue of Primark has had a drastic increase. The graph shows that from the year 2013 – 2016 this is where the revenue of Primark increased the most showing that in the recent 3 – 5 years Primark has become a well-established global high street discount retailer.
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Fig.11(Own Graph)
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List of References Primark, 2017. Retrieved from: https://www.primark.com/en/about-us/about-primark Our Ethics, Primark, 2017. Retrieved from: https://www.primark.com/en/our-ethics/questions-and-answers/ how-can-primark-offer-the-lowest-prices-on-the-high-street Rosie Baker, 25th August 2011, Primark Boldly doesn’t go Online. Retrieved from: https://www.marketingweek.com/2011/08/25/primark-boldly-doesnt-go-online/ Michelle Russel, 6th February 2015, Low Pricing to Sustain growth for Primark in 2015. Retrieved from: http://www.just-style.com/analysis/low-pricing-to-sustain-growth-for-primark-in-2015_id124310.aspx Damian Reece, 21st September 2015, It’s no mystery why shoppers choose Primark’s flagship store over M&S. Retrieved from: http://www.telegraph.co.uk/finance/comment/damianreece/9559156/Its-no-mysterywhy-shoppers-choose-Primarks-flagship-store-over-MandS.html Melissa Anders, 28th Janruary 2016, In-store only: Why it works for Primark and not other retailers. Retrieved from: http://www.retaildive.com/news/in-store-only-why-it-works-for-primark-and-not-other-retailers/411352/ Julia Shawcross, 23rd March 2014, The rise and rise of Primark - How a small Irish retailer came to dominate the UK high street. Retrieved from: http://money.aol.co.uk/2014/03/23/the-rise-and-rise-of-primark/ Vivian Hendriksz, Thursday, 04 February 2016, Can ‘Primania’ satisfy Primark’s lack of e-commerce?. Retrieved from: https://fashionunited.uk/news/fashion/can-primania-satisfy-primark-s-lack-of-e-commerce/2016020419285 PYMNTS, 23rd September 2013, Primark’s Pricing Model Puts US Retailers On Alert. Retrieved from: http://www.pymnts.com/news/2015/primarks-pricing-model-puts-u-s-retailers-on-alert/ April Maguire, 2016, 6 Different Pricing Strategies: Which Is Right for Your Business? Retrieved from: http://quickbooks.intuit.com/r/pricing-strategy/6-different-pricing-strategies-which-is-right-for-your-business/ The Herald, 5th November 2013, Primark’s fast fashion strategy puts M&S in shade. Retrieved from: http:// www.heraldscotland.com/life_style/13130374.Primark_s_fast_fashion_strategy_puts_M_S_in_shade/ Grahham Ruddick, 03 June 2013, Primark clothes sold online through Asos tie-up. Retrieved from: http:// www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10096565/Primark-clothes-sold-onlinethrough-Asos-tie-up.html Geoffrey Lean - Independent, 2007, Chic and Cheerful (but not so great for the environment). Retrieved from: http://www.independent.co.uk/environment/green-living/chic-cheerful-but-not-so-great-for-the-environment-744752.html Just-style.com, 22nd September 2009, Value Clothing Retailers Shine Amid Recession. Retrieved from: http://www.just-style.com/analysis/value-clothing-retailers-shine-amid-recession_id105395.aspx Nick Goodway, 2014, Primark to open its first US stores as profits soar. Retrieved from: http://www.independent.co.uk/news/business/news/primark-to-open-its-first-us-stores-as-profits-soar-9277778.html
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Statista, 2016, Revenue of Primark worldwide from financial year 2007 to 2016 (in million GBP). Retrieved from: https://www.statista.com/statistics/383785/primark-revenue-europe/
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List of Illustrations Figure 1 - Daisy May Stitch, 2nd July 2015, Primark: All You Need from The Spring/Summer 2015 Collection. Retrieved from: http://www.huffingtonpost.co.uk/2015/01/19/primark-all-you-need-from-the-springsummer-2015-collection_n_7317510.html Figure 2 – Retail Design Blog, 29th October 2012, Primark Store at Oxford Street. Retrieved from: http:// retaildesignblog.net/2012/10/29/primark-store-at-oxford-street-by-dalziel-and-pow-london/ Figure 3 – Logopedia, 2010, Zara Logo. Retrieved from: http://logos.wikia.com/wiki/File:Zara-LOGO-blackwhite.jpg Figure 4 – H&M logo, 6th Janraury 2007. Retrieved from: https://commons.wikimedia.org/wiki/ File:H%26M-Logo.svg Figure 5 – Zoella Youtube, Huge Primark Haul. Retrieved from: https://i.ytimg.com/vi/mCpx2M3GRH8/ maxresdefault.jpg Figure 6 – Dianne Bourne, 16th May 2013, Doors Open on World’s Biggest Primark Store in Manchester City centre. Retrieved From: http://www.manchestereveningnews.co.uk/business/property/doors-openworlds-biggest-primark-3848962 Figure 7 – Screenshot of creating a Primark profile. Retrieved from: https://www.primark.com/en/account?ReturnUrl=%252fen%252fhomepage#sign-in Figure 8 – Screenshot of the Primark profile page. Retrieved From: https://www.primark.com/en/account?ReturnUrl=%252fen%252fhomepage#sign-in Figure 9 – Screenshot of Primark denim jacket, 2017. Retrieved from: https://www.primark.com/en/product/black-oversized-denim-jacket,R35397152270753 Figure 10 - Screenshot of Topshop denim jacket, 2017. Retrieved from: http://www.topshop.com/en/tsuk/ product/clothing-427/denim-4889473/moto-seam-oversized-jacket-6225764?bi=0&ps=20 Figure 11 – Graph created by the author. Results for the graph retrieved from: https://www.statista.com/ statistics/383785/primark-revenue-europe/ Front cover logo – Primark Logo, 2016, Logo’s – Downloaded. Retrieved from: http://logos-download. com/1009-primark-logo-download.html Front cover image – Primark Workwear Image, Jodie Jones, 2017, Spring Shirting From £7. Retrieved from: https://www.primark.com/en/features/women/2017/february/shirts-and-shirt-dresses
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