THE SHEEPMODEL
BY S.H.E.E.P.
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CONTENT
Introduction 3 Part one: THE MODEL 4 LAMB 6 SLEEPSHEEP 7 FRIENDSHEEP 8 RELATIONSHEEP 9 Part two: ANALYSIS 10 Part three: INDIVIDUAL ANALYSIS 16 Kim: YOUR V.I.P. SHEEPMENT 18 Tessa: PRIMARKREATION 22 Rowan: SHEEP PRICING 26 Tren: PRIMARK INTERACTS 30 Anne: SHEEP ONLINE 34 Part four: REFERENCES 38
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INTRODUCTION
Hello, we are S.H.E.E.P. 5 young professionals specialized in marketing strategies. Our company is based on our key values. S.H.E.E.P stands for our strong team, honest communication, exclusive ideas, excellent expertise and the playful way we work together. Therefore we will always communicate according to these values to our clients. Our team consists of people with different interests and industries, with experiences in Music, Fashion and Media. We combine the best of multiple worlds. We designed our own business model, which a company can use to monitor their company. This model is called the SHEEP model. Further explanation about this model can be found in the second chapter of this document. We implemented this model on the famous brand PRIMARK. The final goal of our model is becoming a relationsheep, we wanted to find out if Primark is according to our model. After our analyses, we found several pain points where Primark still should work on. In the end of our analyses you can find our different concepts that PRIMARK can use to improve these painpoints.
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PART ONE
THE MODEL 4
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LAMB
There are different kinds of sheep, some sheep are suppliers of wool, others supply meat and others are used purely as grazing sheep. When a lamb is born, it should already be clear what will be its function and the same goes for a business. Every company needs to start with a strong personal identity in order to have success later on. Think about the corporate identity mix, it starts with your personality, which expresses itself in • Communication • Symbolism • Behaviour Personality The core values of the company. Examples of values: safety, unique, creative. These values express their selves in the 3 parts below. Communication Everything a company communicates to their stakeholders (including clients), has to correlate with their values. For example: A delivery service communicates that they are very safe with all the packages of their customers but every week there seem to
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be multiple packages missing. Symbolism Symbolism stands for the look and feel of the company. Think about a logo, branding, website etc. Everything has to fit together and carry out their personality. For example: A company tells their clients they are always positive and enthusiastic, but all the colours on their online media look dark and aggressive. Behaviour How does the company act towards their partners (clients). For example: A supermarket promises to always be customer friendly, but their employees speak with an aggressive tone to their clients. (Wolfshaar, 2012)
When the identity of a company is clear, it’s time to become a sleepsheep. This is when the sheep has lost its connection with the hurd. The two values that a company must satisfy to become a sleepsheep are: Mutual Value According to the Business Model Canvas, value is about the differentiating or added value a company offers to their client. It is important that a company defines these values and explains why it really differs from its competitors. Products and services should by functional but at the same time they should be better or more extensive then products or services that are offered by the competitors. It is mutual because it is important that there is not only value for the customer, but for the company as well. (Strategyzer, (n.d.) Retrieved on 22nd September 2015) Innovation Innovation is the process of translating an idea or invention into a good or service, that creates value for which customers will pay. To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need. Innovation involves deliberate application
of information, imagination and initiative in deriving greater or different values from resources, and includes all processes by which new ideas are generated and converted into useful products. In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers. In a social context, innovation helps create new methods for alliance creation, joint venturing, flexible work hours, and creation of buyers’ purchasing power.
SLEEP SHEEP ZZZ... 7
FRIEND SHEEP
Sheep are known for being herd animals. They live in groups with other sheep and when they get disconnected from that group they often end up having troubles. When a company disconnects itself from their stakeholders and therefore has become a sleepsheep, it’s time to connect better with their partners. To accomplish this as a company, a company has to work on the following values: Mutual respect The literal meaning of mutual is having the same relation each toward the other. Respect, as read in the dictionary, means the condition of being esteemed or honored. These two definitions together make two parties esteem and honor each other. This is a desirable relation for companies and their customers. When this relationship exists, both parties are positively influenced by the other and they feel respected. Co-creation The Service Design model also has co-creation as a core value in it, so we used it as a source. The definition of co-creation: all customers and stakeholders are involved in your company and in the services you of-
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fer. With co-creation, a company and a customer work together to create something new. This can also happen with a company and one of their stakeholders. For example: a customer and a company come together to create a new steering wheel for a bike. User-centered According to the Service Design model, user-centered means: The service you offer needs to come from the user’s perspective. Agree on a common language with your customer or stakeholder. Put them in the middle of your organisation and the market changes and the need of the users changes and so is the efficiency of the service you offer. Keep checking what makes your customer move and buy things: what are the pro’s of your service and how will you facilitate this. It is important to keep in touch with your customer or stakeholder because it keeps you sharp and up to date. It makes sure you keep analysing and that you will innovate.
The final step to our model is step 4. In this step the company reaches the final part of our theory: a relationsheep. The company has to turn their friendsheep with their stakeholders into a real relationsheep by integrating the last two core values. After the sheep has been reconnected with its hurd it is now time to create relationships with other sheep. The values that are needed:
create extra value by making sure that these wishes can become true. It’s all about listening to your client and helping them create the product that fits to their wishes and needs. Don’t confuse this with co-creation, with co-creation a company and a customer/stakeholder work together, with customization the customer is in charge. Everything is modified according to their wishes.
Holistic Holistic literally means dealing with or treating the whole of something or someone and not just a part. In the context of a company, being holistic stands for the entire communication, behavior and symbolism. Make sure everything is consisting and not separated. This holistic approach allows as well the employees as the customers to be immersed in the company’s communication, behavior and symbolism. This creates a strong unity with a clear identity.
When all the values are interrogated within the company, it can call itself a relationsheep. It is very important to keep controlling if the company owns all the values. Try to do a check every 6 months.
RELATION
SHEEP
Customization Customization means: modify or build according to individual or personal specifications or preferences. When a client comes into a company with some specific wishes or needs, a company must be able to
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PART TWO
ANALYSIS In this chapter we will analyze Primark by using our SHEEP model. We’re practically taking the wool off a sheep to see what the sheep has to offer. And in this case: what the company has to offer and what is needed for the company to become a relationsheep.
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Description Company Primark is international store focussed on cheap clothing. Primark claims to offer quality products however the prices are extremely low. Therefor there are mixed opinions about Primark as a company. With over 250 stores, spread over the Netherlands, Belgium, the rest of Europe and some in America and a turnover of 6.3 billion euro’s, you could say it’s quit a big company. LAMB Personality Vision: The vision statement of Primark providing quality products and services to their customers through price strategies. Mission: The mission statement of Primark is to supply quality clothing at prices perceived to offer real value. Stakeholders: Primark uses a variety of methods to engage with its different stakeholders, because of the different approach, needs and expectations for each group. For example: one method that Primark uses to communicate with its customers is through its ethical trading website. Meanwhile, Primark uses the
community engagement program to communicate with workers and communities. Below there is an enumeration of the different stakeholders of Primark. • Associated British Food Primark is a subsidiary company of Associated British Foods (ABF). As a part of ABF, Primark shares important values. These values provide an ethical dimension to Primark’s activities. • Ethical Trading Initiative Primark has been a member of the ETI since 2006. This is a tripartite alliance of over 60 companies, trade unions and nongovernment organisations (NGOs). The alliance works to improve the lives of people working in supply chains across the globe. Primark submits an annual report to ETI about its ethical programme and performance. • Better Work Partnership Primark joined the Better Work partnership in 2010. This is a major international partnership set up by the UN’s International Labour Organisation to improve labour practices across the globe. Primark works together with many different partners. In alphabetical or-
der: • AB Sustain • The Agreement on fire safety and building safety in Bangladesh • AKUT (organisation for emergencies) • Association for Stimulating Know How • AWAJ • Bangladesh National Women Lawyers’ Association (BNWLA) • Better Mills Initiative • Better work • Business for Social Responsibility • The Cahn Group • The Carbon Trust • Change Associates • CottonConnect • Department for International Development • Deutsche Gesellschaft für Internationale Zusammenarbeit • Dhaka University • Elevate • The Ethical Trading Initiative • Ergon Associates • Geosansar • Good World Studies • IDEAS • Impactt • The Institute of Contemporary Observation • International Finance Corporation • KPMG
• MADE-BY • Medway Consultancy Services (MCS) • Mestrelab Research • Naripokkho • Newlife • NUK • Partnership for Cleaner Textille (PaCT) • Phulki • PSG Institute of Medical Sciences and Research • The Re-Assurance Network • Reed Consulting Bangladesh • Sanchayan • Self-Employed Women’s Association • Sheva • Social Awareness and Voluntary Education • Solidaridad • St. John’s Medical College Hospital • Sustainable Apparel Coalition • Times 100 • TÜV SÜD • UL • VGT • Waste and Resources Action Plan • Zero Discharge of Hazardous Chemicals
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Communication Primark communicates with their clients in different ways: Website Primark has their own website, www.primark.com. On this website, everything of Primark is communicated. You can find the many different articles and products of the store. They also have a part called ‘Primania’ where different customers can upload their look and others can comment on them. On the website you can find all shops in the country you’re looking for. Last you can find the ethics of Primark. Social media Primark uses the following social media channels: • Facebook • Twitter • Pinterest • Instagram • Google+ • Youtube Campaigns Primark communicates their campaigns on their own YouTube channel. The different collections are being filmed and promoted in these videos. These campaigns aren’t shown on television. Shops The biggest communication mean of Primark are their shops. They have 253 shops across the UK, Ireland and Europe. Symbolism The corporate identity of Primark: • Corporate identity (logo) They use the Sans serif font with a light blue colour. There is no sign or symbol.
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• Website A sleek, modern website with the clear corporate identity of Primark. Lots of blue and white, images and few text. No webshop, only a look book with outfits and styles. • Building The buildings of Primark are all the same: large and modern. The outside of the building is usually made of glass with a lot of black and light blue. Behaviour Primark has an ethical structure in their company. On the website, Primark emphasizes their aim to treat the employees, suppliers and communities fairly. They take a lot of measures to trade ethical and responsible, for example CSR entrepreneurship, improve the position of labor (well-being and working condition of the employees) and collaboration with Greenpeace to support the environment. Primark extensively describes all their ethical and responsible activities on their website.
SLEEPSHEEP Mutual Value Primark seems to be known for their extremely low prices. (Rijlaarsdam, 2015) However a lot of people claim the low prices are because of the cheap workers in low payed countries with bad working conditions, Primark does a good job disproving this negative pre-justice by explaining why their products are so cheap. • No ads • Buying smart • Follow trends • Purchase in big amounts
ZZZ...
Primark does think about Social Reliable dealing. (Primark) • Bags made out of 100% cardboard • Offer help on long term to the Rana Plaza-rampage • Co-operation with Greenpeace • Co-operation with BSR: health care and instructing woman in their fabrics • Inspect all their fabrics • Instructing workers in India • 80% of their shops has an economic system to prevent lack of energy • Develop less material for teachers and students • Rules with partner fabrics about safety and loan
Innovation Primark is using a lot of social media: • Facebook • Instagram • Twitter • Pinterest • G+. • Youtube (Primark) (Primark) (primark) However they already got a lot of followers, there are still chances if we talk about co-creation. The content is mostly informing and not interactive. Besides using a lot of social media, Primark is always on point with the latest trends in clothing.
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FRIENDSHEEP Mutual respect To discover the relationship between Primark and its customers we looked into existing contact between the two on Facebook (Primark, 2015) as well as on customer review sites (Trustpilot, 2015) . What stands out is that Primark often communicates by sending out information. When they receive information from one of their customers they always send out an answer but answers are not adapted to that customer. All customers are sent forward to the helpdesk of Primark. When looking at customer reviews low scores appeared (a 4,2 out of 10) with quotes such as “extremely bad customer service”, “bad customer service” and “awful online customer service” (Trustpilot, 2015). This indicates that the respect between reviewers and Primark is not optimal. Another review that is repeated often is about the in-store experience for customers in Primark. It is considered a “mad house”, “frustrating experience in-store” (Trustpilot, 2015). Even employees experience this, as read in their reviews with quotes such as: “always hectic” and “stress inducing and busy work environment” (Primark Reviews, 2015).
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Co-creation Positive things are the following: Rana Plaza long-term compensation Primark has paid $14 million in aid and compensation in support of the victims of the Rana Plaza building, which collapsed in April 2013, tragically killing over a thousand workers. The building housed several factories, one of where Primark garments were produced. They started paying long-term compensation to victims and their families a year ago, and these payments have almost been completed. When they are done, Primark will continue to support those who need our help. Detox Campaign Primark has a robust policy in place to manage restricted substances. They recognise the importance of continuing to evolve this policy and in February 2014 they joined Greenpeace’s Detox campaign and are working closely with them. Primark is pleased that Greenpeace has recognised them as a leader on this issue, once that is particularly important to their customers and the people that work in their supply chain. They have made good progress, but they have much more to do and will
continue to work with their suppliers and others in the industry to achieve this. Women’s health Since 2011 Primark has 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 the products. Structural Surveys All factories that supply Primark’s products in Bangladesh are included in their structural safety programme. Their structural surveys will be conducted to the highest international standards by an expert team of engineers. Primark is a signatory to “The Accord on Fire and Building Safety in Bangladesh”, an agreement between almost 200 brands, companies, international and local trade unions and NGOs working towards sustainable improvements for working conditions in the Bangladesh Garment Industry.
User-centered Positive things are the following: • Affordable prices The prices are very low • Big baskets You can carry a lot of clothes with you during shopping. • Big modern shops • Many cash desks You don’t have to wait too long because of the many cash desks. • Temporarily bicycle storage at openings of new shops Openings of new shops are mostly very crowded. To make it easier for people to come per bike they place temporary bicycle storages. • Primania The customer plays a central role by creating co-creation. Primania is a site where customers can post pictures of their outfits. A customer can post, browse, rate and share looks with each other – in this way they can make their own fashion playground.
RELATIONSHEEP Holistic When looking at how holistic Primark communicates, they are pretty consistent, however they do not have a logo next to their name (Onze Ethiek, 2015), they do use the same fonts, colours and buildings for their shops as we discovered in our analysis. What also stands out is that Primark only communicates on online platforms. They don’t use media such as radio or TV. This excludes them from possible customers who listen radio and/or watch television. When looking into their website in detail a great part of the content talks about the environment. However, this is only communicated on their website. Therefore this information does not reach their followers on Facebook, Youtube nor the possible customers who watch television and listen to radio. Customization After doing research, it is clear that Primark makes no use of customization. According to the explanations of the values, used in the previous chapter, customization is: “to modify or build according to individual or personal specifications or preferences.” This is not happening at Primark at the moment.
CONCLUSION According to our SHEEP model, there are still certain values that have to be achieved to eventually become a RELATIONSHEEP. After doing the analysis, some painpoints and chances have come forward. In the conclusion we are going to see what kind of sheep Primark is at the moment: Primark has their personal identity very clear. That means that they are a LAMB. To become a SLEEPSHEEP, Primark has to have mutual value and innovation. In the analysis it has become clear that Primark already uses mutual value and innovation as well. That means that Primark can call itself a SLEEPSHEEP. Now we have to move on to the FRIENDSHEEP. To become a FRIENDSHEEP, Primark has to have mutual respect, co-creation and it has to be user-centered. In the analysis it has become clear that Primark is user-centered and that it has co-creation. One thing that they do not have at this moment is mutual respect. By not having mutual respect in their company, Primark cannot be called a FRIENDSHEEP. We still looked at the parts of a RELATIONSHEEP to see if Primark can be a RELATIONSHEEP by improving only their mutual respect, or if the RELATIONSHEEP part has to be improved as well. According to the analysis, Primark has to be holistic and has to
have customization. We could see that Primark is partly holistic but there still could be some improvement here. Primark does not use customization in their company. So: at the moment, Primark is a FRIENDSHEEP. We found some chances and painpoints where Primark could work on. Chances: • Improve the bad image about Primark and her cheap workers and bad working conditions. • Low prices often makes people think the quality sucks as well (Tuttle, 2012) • Improve social media use with co-creation and more interaction. • They don’t show all the social responsible things they do. That is why they still have a bad image. • Show more of the environmental decisions they make. Painpoints: • Bad customer service (online and offline) • Bad in-store experience. Customers find the shops often too crowded. • No webshop. There’s only a look book to see the new outfits, but there is no possibility to shop online. • No use of TV and radio to communicate. • No use of customization.
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PART THREE
INDIVIDUAL
ANALYSIS 16
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KIM
YOUR V.I.P. SHEEPMENT
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Let’s change the in-store experience “from hectic to relaxing” In our analysis, one of the things we looked into was the relationship between customers and Primark and how the level of mutual respect is. We researched their Social Media and review-sites to see how the relationship is. We concluded that there is a lot of negativity when it comes to the in-store experience. For customers as well as for employees the in-store experience is described as “hectic”, “frustrating” and “stress inducing” (Trustpilot, 2015). When we looked into the user of Primark and how centered that user is, we also concluded that the stores are too crowded for Primark to center their user. I believe this creates a chance for Primark to tackle this and to better the relationship with customers and employees. Another conclusion from our analysis is that Primark does not have a webshop, simply because they first want to grow further before they invest in online sales. However, they do publish almost 70% of their assortment online including prizes so customers can get inspired before they come to the store (Primark, 2015). I believe this leads to another chance for Primark; to use more of their website without becoming a webshop entirely. All in all I thought of the idea of “Your VIP Sheepment” which is a personal, relaxing way to pre-order your fashion products online and then experiencing them in the store in your private room without having to re-order for new sizes, different colours or other wishes you might have.
It is not a webshop where fashion products are ordered and delivered to the customers at home. It is a website where customers can pre-order their fashion products, where the website assists customers with sizes before they try fashion items on and where customers can reserve one or more changing rooms for a time and day that is convenient for them. In this way Primark opens its doors for customers who love Primark but dislike the crowdedness during their in-store experience. It also allows customers to shop more conveniently; no crowdedness, no waiting lines, a private changing room, the possibility to make it an experience for a group of friends/family and assistance with sizes before actually trying on fashion items. The name stands for what this concept offers the customers; “Your VIP Sheepment” ; ‘Your’ because the customer can choose what they want, when they want and with who they want’. ‘VIP’ because this is a special treatment that gives one customer or a group of customers a personal experience that is adapted to their choices even when it comes to sizes. ‘Sheepment’ because it stands for ‘shipment’ as well as for ‘treatment’. Instead of shipping products to a customers’ house and have them send back and re-order new sizes or other products; this takes their ‘shipment’ from the store to their own reserved changing room
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Kylie, 23 Kylie is a student and loves Primark for their cheap prices. However, she tends to turn to other fashion stores because Primark is usually too crowded for her. Shopping is her relaxing moment after school and she wants to try on different outfits and really take her time. When Primark is too busy, she either goes to another fashion store or she orders her clothes online. This allows her to have a relaxing moment while shopping. Kylie wishes she could always go to Primark because she loves the prices of their products. Especially since she is a student and doesn’t have much spending money. After ordering more expensive fashion online at another store, Kylie got a text from one of her friends saying: “Kylie, Primark just launched a new site where you get to pick up your pre-ordered fashion and reserve your own changing room! Want to try it?”. After asking the web address Kylie checks the site out on her laptop. She immediately texts her friend back to set up a date to check it out. They agree on making a reservation for a set of new clothes and a changing room for the next weekend on Saturday. Kylie is very excited and wonders if this is the solution for the crowdedness she has been avoiding. If this really works, then she can profit from Primark’s cheap prizes again without stressing around the store. When she is picking out her clothes and accessories it almost feels like online shopping, but now she’ll be able to try everything on at the store and trade items that won’t fit for another size right away. Another positive change is that she can put in her body sizes and that she immediately gets advice about the size she should pick for each fashion item. It is finally Saturday and both Kylie and her friend ordered a few shirts, some pairs of pants and matching accessories. When they walk up to the VIP desk in the store they are welcomed by a very friendly lady. After they have signed in the lady escorts them to their changing rooms through the busy store. In the changing room there is a big chair, a huge mirror and a table with all of their pre-ordered items on it. In contrary of the busy store, the VIP area is quiet and calm with no line of people waiting to try on their clothes. There are two assistants available to help both Kylie and her friend with any questions. After Kylie tried on her first pair of pants, she realizes she needs a size smaller and asks the assistant to
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help her. After a few minutes the assistant came back to her changing room and hands the right size pants to her. Kylie and her friend are having a great time showing their new outfits to each other without any stress or feeling of being rushed by people waiting for a changing room to be available. Without any hassles they let the assistant know what they choose to buy and she takes the clothes to the cashier. The clothes and accessories they didn’t want were left in their changing room and returned into the store by the other assistant. After their VIP experience, the girls both end up with a full bag of Primark clothes for half the money of any other fashion store. While they walk out the door they are already talking about asking other friends to do this with them. They wonder how cool it would be to go here with their entire group of friends without waiting for a changing room or sharing the shopping experience with people they don’t know.
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TESSA
PRIMARKREATION
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More creation In an era where brand loyalty is low and demands are high, it makes sense that customization has taken off. Shoppers can design their own Nike sneakers, Brooks Brothers suits, Burberry trench coats and Longchamp bags. A sense of control is appealing to fanatic shoppers. Out of 1,000 shoppers questioned in a 2013 Bain & Company survey, less than 10 percent had customized a product. But 25-30 percent said they’d be up for it. And that should be good news for many brands that want to believe that there is potential in personalization (Lauren Freeman, 2014). Customization will create a deeper connection between a shopper and the product she creates. One-of-a-kind, self-created products will probably have lower return rates and can be sold for higher prices. It is clear that customization is very important for a fashion company to get noticed and stand out. Furthermore, it can increase sales, which is always good for every company. Sadly, as told in the analysis, Primark makes no use of customization. In order to become a ‘RELATIONSHEEP’ according to our model, Primark has to do this. Let’s take Nike for example. NIKEiD is a service provided by Nike allowing customers to customize clothing purchased from Nike. The customer becomes the designer as they change and add a personal look and feel to a selected item. The service can be accessed both online from their homepage and in
physical branches. By using this extra service, customers can feel connected to their brand. It is partly due to this extra service that Nike is one of the most famous brands in the world (NIKEiD, 2012). It would be a good idea for Primark to start an extra service that uses customization. To start with this extra service, Primark could create an app for smartphones: ‘Primarkreation.’ Customers can download this app and create their own clothes. They can choose between different basic items like t-shirts, skirts or cardigans. Customer can decide for themselves what colour they want their item to be, they can add pockets, prints or different fabrics etc. Eventually they have designed their own clothing item. The item will be send to a factory where the real item will be created. After that, the item will be sent to the Primark store that is nearest to the client so he/she can pick it up there. This way the customer feels closer to the brand because he/she gets the option to create their own designed clothes but still visits the shop when they pick it up, where they might buy some more clothes. In the app there will be an ‘inspiration’ page where all the users can post their own creations. This way other users can see what others created and they might get inspired and use these ideas for their own creations. Users can also share their creations via social media to their followers. Followers of the user can see what he/she created and may be so inspired that they install the app themselves. This contributes to the brand awareness.
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Jenny, 22 Hi, my name is Jenny and I am 22 years old. I live in the center of Rotterdam. I like to think of myself as a very creative person with an open mind, I will always think out of the box. I study International Lifestyle Studies at the Fontys Academy for Creative Industries. My study is very focused on the latest trends and it is up to me to find these trends and analyse them. I really like it! My clothing style is very unique as well, I like to look different then all the other people, I want to stand out and don’t follow all the mainstream trends that half of the girls in the Netherlands follow. I like to combine basics with flashy necklaces or bright coloured shoes. It is important for me to stand out, I really hate it when people come up to me and tell me that they have the same shirt as I have, I want to be the only one to have that shirt! That is why you will never see me in a shop like H&M or Vero Moda because everyone shops there. I also like to create my own clothes, I go to thrift shops and buy two shirts that I later combine into one unique shirt, that way no one will ever wear the same shirt as me! Recently a friend came up to me and told me about the new app from Primark, called Primarkreation. I never shop at Primark because the clothes there are mass producted and so many girls shop at Primark, I won’t be unique anymore! But with this app I could create my own clothes, which made me interested right away. I immediately opened the app store on my iPhone and looked up the app. It was free as well! I downloaded and started designing right away. I could choose between different items, prints, colours and I could even upload my own images if I wanted to. I designed a red shirt with a leopard print on the edges and the text ‘RAWR’ in the middle. It looked so good! I immediately uploaded it to the inspiration page and to my Instagram account. My photo got 132 likes, I never had that many likes! Of course I bought my own
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designed shirt, it was still only 25 euros, I really like that price! After a week I got an e-mail that I could pick up my own shirt at the Primark on Zuidplein in Rotterdam. That is so close to my house, I only had to ride my bike for five minutes! In the store I had to go to the customer service counter. When I came in I saw a super cool black leather pants that would fit perfectly with my new designed shirt and it was on sale as well! Of course I bought this one as well. After receiving my new shirt, I wore it when I went out that same night. I got so many compliments! All my friends asked me where I got the shirt and I told them about the app. Now all my friends are creating their own clothes, and my new shirt is already ordered!
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ROWAN
SHEEP PRICING
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Sweet pricing, Sheep pricing Primark seems to be known for their extremely low prices. However, a lot of people think that this is because of cheap workers in low payed countries with bad working conditions. Primark does a good job disproving this negative pre-justice by explaining why their products are so cheap. The reason of the low prices are: • No ads • Buying smart • Follow trends • Purchase in big amounts Because Primark has no expensive ad campaigns, they save a lot of costs. Primark prefers to let their customers do the talking. Also due to the large orders they place by their suppliers, there are cost savings. In addition, Primark claims that they use streamlined production methods and a skilled workforce to make clothing in the most effective way possible helping to keep costs low. These three facts are mentioned on the website of Primark, below the heading ‘Our Ethics’ (Primark, 2015). However, many people are not aware of these facts. It is important and necessary for Primark to communicate these facts better with their target audience, otherwise people will still misunderstand the reason for the low prices. Compared to the competitors of Primark, for example H&M, H&M sends their customers a catalogue with the newest fashion trends and clothes. The reason of the catalogue is to announce the newest
outfits of H&M to the customers (H&M, 2015), which increases the sales. It could also be a good idea for Primark to create their own catalogue, that will be sent every few months to their customers. The catalogue must contain the newest clothes including prices and fashion trends of Primark. What Primark can add extra to their catalogue, are captions combined with some outfits on different pages. This addition makes it easier for customers to find out the reasons of the low prices, and increases the awareness/prevents the misunderstanding. To make it cross-media, Primark can also add captions on their website with facts of the low prices, for example when you click on an outfit. This will increase the purchase and take away the bad image of Primark, caused by the misunderstanding of ‘poor labour conditions.’ What will be in the new catalogue content: • Every release of the catalogue includes renewed fashion trends of Primark • Renewed clothes and outfits of Primark • Captions combined with some clothes or outfits, which include the facts of the low pricing, to increase the awareness • Ethics of Primark, processed through the book • Clear summarizing of all the facts that cause the low price And also: • Make it cross-media, through adding pop-ups on the website of Primark, combined with clothes or outfits
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Lynn, 20 My name is Lynn, 20 years old and I am living in Eindhoven. I am a third year student Social Studies at the Fontys Hogeschool. Besides my study, I work in the weekends for Rituals, a cosmetic company in Den Bosch, as a sales employee and makeup adviser. In my spare time, I like to go shopping with my friends in a big city. The stores I like the most are Zara and H&M. I also like the clothes of Primark, but I don’t like to buy something there. The low prices of the clothes are really attractive, but I don’t want to support poor labour conditions. I think that Primark is able to handle such low prices, because they have really bad working conditions for the workers, so I feel bad when I buy something. It is important for me that my clothes are fair trade and made under good working conditions. Yesterday my best friend Nina called me that she received a catalogue of Primark. Last week she was shopping at Primark, and she really likes to buy her clothes there. At the website and stores of Primark, there was a possibility to fill in your address to receive the new created catalogue of Primark. This was promoted by employees of Primark at the stores, and online on social media and the website of Primark. She was really enthusiastic about the new catalogue of Primark, and she explained to me what the content was of that catalogue. She told me that there are captions in the book, combined with some clothes pieces or outfits. In those captions she could find the reasons why Primark can handle such low prices, which really gave her a good feeling of buying clothes at Primark. Nina mentioned the facts to me, like no ad campaigns and large orders placed by suppliers. “Wow! Was I really misunderstanding the reasons for the low prices?”, I asked Nina. “Yes!”,
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she said, “Primark doesn’t have bad working conditions, that is a mistake!” I was really excited about it, I didn’t feel bad anymore to buy my clothes at Primark. Immediately I went to the website of Primark and filled in my address, to receive a catalogue. When I received the catalogue, I flipped through the book and saw the different captions that told me about the ethics of Primark. It really gave me a good feeling and took away my misunderstanding of bad working conditions. Now I’m really convinced and excited to buy my clothes at Primark, because I know now the low prices are not caused by poor labour conditions.
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TREN
PRIMARK INTERACTS
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Improve social media use when we talk about interaction. When taking a look at Primark’s current social media use it mostly contains a one way information stream and nothing interactive. Primark shares new clothing and promotes their assortment:
When responding to clients, a same comment is given every single time. Which results in a negative customer experience:
Every brand can be found online nowadays and everyone wants to gain more and more fans on social media. Social Media has become a very important part of the marketing strategy of almost every company. By having more interaction with online customers, Primark could also gain a lot of new fans and increase their reach via online media, which eventually will result in more sales.
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Time for change! Tren Braat presents: Primark interacts. Primark has made the first step in interacting with their customers by forwarding them to Primark’s helpdesk on the website. This is the least a company should do to take care of their customers. There is still a lot to more to get when we talk about interacting with customers via online platforms. Let’s take the Facebook interaction of KLM for example.
KLM really starts a conversation with their clients, which results in three things. • The customer is very satisfied with the service of the company and will therefor be using their products/services in the future. • The customer will tell his/her friends about the good experiences he/she has had with the company • More interaction creates more reach. The more comments, likes, shares on online content, the more people get in touch with the particular content. By integrating this more expanded way of responding to clients, Primark can create more interaction, which will lead to a better customer experience.
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Dirk, 21 Dirk is a 21 year old student From Amsterdam. He studies Marketing & Management. Dirk likes to hang out on the Internet and scroll trough his Facebook-feed for hours. He enjoys reading funny online marketing by companies; therefor he likes companies like KLM. Because Dirk is a student, he likes to occasionally buy clothes at the Primark:
Last week, kind of the same situation happened (2 trousers instead of shirts though) and I decided to give it another try. I asked the similar question on Facebook and guess what? In 10 minutes Primark responded to me that I could bring back the clothing within 14 days but the label should still be on it and not to forget the ticket. I was really happy and told my friends about the fast en super customer service and went back to change the clothes for the ones in the right size.”
“Half a year ago I went to the Primark with my girlfriend. I bought myself 2 shirts but because of the overcrowding I didn’t get a chance to make sure they fit. I decided I would fit them at home without thinking if it were possible to bring these back. When I got home one of the shirts didn’t fit so I wondered what the policy was with bringing back clothing and decided to ask this question on Social Media because I realised receiving a response via the contact formula I filled in would probably take to long. A day later I finally received a comment from Primark which said to fill in the contact formula on the website.. ‘’NO, I just want a answer to my simple question.’’ I gave up and accepted I bought the wrong shirt and I just threw it away.
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ANNE
SHEEP ONLINE
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Primark doesnt’t have a webshop Primark does not have a webshop where you can shop online. Primark is growing fast. To continue the fast growth it needs their full attention. A webshop will cost a lot of time and money and this is the reason they don’t have a webshop at the moment. They do have a website where they show some of their home and beauty products and also their collection for men and women. Primania is a tab where customers can place their favourite outfit. On the website you can find what the ethics of Primark are. For a customer it could be a good thing that they get the possibility to view all the products Primark sells but it isn’t possible to buy the stuff you see straight away and that’s a missing chance. The biggest fashion retailers all use webshops to reach all their customers. Primark will increase their reach if they implement a webshop. They can show their complete collection easily and people can shop whenever they want.
Sheep online An online webshop will increase the reach of the shop. There are a lot of people like Lisa, who don’t like to shop in a brick and morter shop. There are also people who aren’t able to go to a brick and morter shop. A webshop makes shopping a lot easier for people. Online could also be key to Primark’s continued international expansion.
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Lisa, 23 Meet Lisa. Lisa is 23 years old. She is a student and does not have a big budget to spend on clothes. Lisa does not like to shop in brick and morter shops, she buys everything online because this is easier and takes less time. She does not like crowded places or to fit new clothes in small fitting rooms. She would love it if Primark had a webshop because the clothes of Primark will fit her budget. Yesterday Lisa has heard from her roommate that Primark is having a webshop. She googles to find it. When she finds it she gets the possibility to shop for clothes, beauty products and home products. She is happy to find it because this was exactly what she needed. She loves to shop online and the Primark sells products that fit her budget. Before she starts searching for things she likes, she can upload a picture of herself and give her measurements. Primark created an interactive fitting room and this makes it more visually attractive for the Lisa. In this way it is easier to find suitable clothing. She is having fun with shopping online at Primark. She can fit every item she finds and see whether it suits her. It costs less time than actually go to the Primark store. Nobody is pushing her to hurry because there is no queue waiting for her. Lisa sees that there is also the possibility to click on the shirt she likes and see where she can find it in the store. This will make it easier for everybody to find their way in the huge Primark stores. Lisa has found a lot of stuff she likes. She wants to buy three sweaters, one pair of trousers, two candles and one pillow. She is excited because of how
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easy it is to buy all this stuff. She places the products she likes and has chosen in the shopping cart. She is done so she clicks on the cart. She sees exactly what she has placed in the basket and what she needs to pay. She only needs to fill in the address on which she wants it to be delivered. She can’t wait to receive the package. It will only take three working days so she is already looking forward to it. Paying is very easy because she gets the bill afterwards and she can pay within two weeks. If she isn’t happy about the clothes or stuff she has sold online she can return them for free within two weeks. Lisa orders the stuff and after three workdays she receives her package. Everything she has bought fits so she is happy.
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PART FOUR
REFERENCES Lauren Freeman (2014) Customizable fashion is on the rise. Retreived September 29, 2015 from http://fashionista.com/2014/06/customization-apparel-fashion NIKEiD (2012) Retreived September 29, 2015 from http://www.nike.com/nl/nl_nl/c/nikeid?cp=EUNS_KW_NL_1_Brand_Core_iD&s_kwcid=AL!2799!3!7648 5403138!e!!g!!nike.id&ef_id=U-CSOQAAANGAFVJG:20151013174313:s Primark. (sd). Onze Ethiek. Opgehaald van Primark: http://www.primark.com/nl/onze-ethiek Primark. (sd). primark. Opgehaald van Instagram: www.instragram.com/primark Primark. (sd). Primark. Opgehaald van Facebook: www.Facebook.com Primark. (sd). Primark. Opgehaald van twitter: www.twitter.com/primark Rijlaarsdam, B. (2015, april 22). Zรณ goedkoop? Dat kan toch niet, Primark? . Opgeroepen op September 29, 2015, van NRCW: http://www.nrcq.nl/2015/04/22/ hoe-primark-zo-goedkoop-kan-zijn
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Strategyzer, (n.d.) Retrieved on 22nd September 2015) http://www.businessmodelgeneration.com/canvas/bmc Business Dictionary, (n.d.) Retrieved on 22nd September 2015) http://www.businessdictionary.com/definition/innovation.html Primark (2015). Onze Ethiek, Retrieved September 29, 2015, from http://www.primark.com/nl/onze-ethiek Business Case Studies (2015). Engaging with stakeholders, Retrieved September 29, 2015, from http://businesscasestudies.co.uk/primark/engaging-with-stakeholders/introduction.html#axzz3n8AwKqWi Primark (2015) Retrieved September 29 2015 from http://www.primarkonline.nl Fourth Scource (2015) Retreived Septermber 29 2015 from http://www.fourthsource.com/ecommerce/primark-considering-online-17749 Mediact (2015) Retrieved September 29 2015 from https://www.mediact.nl/weblog/virtuele-pashokjes-in-opkomst-pashokje-3-0/ Primark (2015). Onze ethiek, Retrieved October 6, from http://www.primark.com/nl/onze-ethiek/questions-and-answers/how-can-primark-offer-the-lowestprices-on-the-high-street H&M (2015). Bestel een catalogus, Retrieved October 6, from https://www.hm.com/nl/printedcatalog Primark. (2015). Onze Ethiek. Retrieved on October 6th, 2015, Primark: http://www.primark.com/nl/onze-ethiek Trustpilot. (2015). Reviews Primark. Retrieved on October 6th , 2015, Trustpilot: https://www.trustpilot.com/review/www.primark.co.uk
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