Individual WORK - Primark - DUE IN December 16 PDF

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Gustavo Camarotte Student ID: W15880609

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Module Title: Marketing Principles

Name: Gustavo Camarotte Student ID: W15880609 Tutor’s name: Chosen Company: Primark

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Gustavo Camarotte Student ID: W15880609

Table of Contents:  Introduction to Primark

Page: 3

 What macro factors need to be considered for this brand in the UK over the next 12 months Page: 4 to 7  What micro factors need to be considered for this brand in the UK over the next 12 months Page: 8 to 10  Identify three main target audiences of the brand Page: 11 to 12  How is the firm positioned? (use a positioning map) Page: 13 to 15  What are the firm’s CSR policies? Highlight any ethical issues the firm is currently facing or may face over the next 12 months Page: 15 to 16  Give some recommendations about how the brand can grow over the next 12-36 months Page: 17 to 18

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Gustavo Camarotte Student ID: W15880609

Module Title: Marketing Principles Introduction to Primark Primark’s headquarters are in Dublin, Republic of Ireland, Primark is multinational retailer that employees over 77,600 employees. Primark focuses its product on the entire family starting from a baby size to an adult size. Primark’s sells womenswear, lingerie, children swear, menswear, footwear, accessories, beauty, and homeware. Primark operates in 363 stores in 11 countries including the UK, Republic of Ireland, mainland Europe and the USA. Recently Primark has (triumphed at the Drapers Awards, by picking up two fashion retail business of the year, by achieving this award they received 500 million pounds). Secondly Primark was awarded (the best user of influencer marketing for its Alice Living workout collection, judges have said that Primark was spot on and that they had excellent stores with a clear marketing strategy). Finally, according to the retail gazette, Primark has increased its operating profit by 25% due to the increase of market share. References: 1. Primark.com. (2019). About Us | Primark UK. [online] Available at: https://www.primark.com/en/aboutus [Accessed 12 Nov. 2019]. 2. Geoghegan, J. (2019). Drapers Awards 2018 winners revealed. [online] Drapers. Available at: https://www.drapersonline.com/news/drapers-awards-2018-winners-revealed/7033210.article [Accessed 12 Nov. 2019]. 3. Jahshan, E. (2019). Retail Gazette. [online] Retail Gazette. Available at: https://www.retailgazette.co.uk/blog/2019/04/primark-half-year-profits-surge/ [Accessed 27 Oct. 2019].

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Gustavo Camarotte Student ID: W15880609

What macro factors need to be considered for this brand in the UK over the next 12 months: Political Factors: 

Primark is affected by the Political factor in the UK because the UK is planning to leave the EU, and this will create uncertainty for the business because the pound and the Euro rate will go down, and if one of these two goes down it will affect Primark’s overall profit margin.

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Secondly, Primark will be affected by the Brexit political factor in the next 12 months because if there is a no-deal Primark will not be able to hire employees that have not got the 36 months’ temporary immigrant status or the permanent stay visa.

Reference: 1. 123writing.com. (2016). 123writing | PESTLE and SWOT Analysis of Primark 2016-2017. [online] Available at: https://www.123writing.com/sample/pestle-and-swot-analysis-of-primark-20162017. 2. The Week UK (2017). How will Brexit affect UK imports and exports? [online] The Week UK. Available at: https://www.theweek.co.uk/advertisement-feature/90140/what-will-happen-to-ukimports-and-exports-after-brexit. 3. M Dale Beckman and Rigby, J.M. (2003). Foundations of marketing. Scarborough, Ont.: Thomson/Nelson.

Economic Factors: 

From carrying out secondary research, I have found out that if the UK leaves the EU the Sterling will lose its value, and if this happens it will impact Primark’s product prices, because if the sterling value goes down Primark will have to start charging more money for their clothes, because they need to make up for the loss of currency. The consequence for this will be that customers might choose to buy from another brand because it’s cheaper and this will affect Primark, because they will lose some of their market share in UK’s market.

Reference: 1. 123writing.com. (2016). 123writing | PESTLE and SWOT Analysis of Primark 2016-2017. [online] Available at: https://www.123writing.com/sample/pestle-and-swot-analysis-of-primark-20162017. 2. Editorial Assistant (2015). Retail Gazette. [online] Retail Gazette. Available at: https://www.retailgazette.co.uk/blog/2015/07/primark-sales-flatten-but-cautions-on-currencyexchange-impact-on-margins/ [Accessed 9 Dec. 2019]. 3. Robinson, M.A., Herbert Charles Morton and Calderwood, J.D. (1980). An introduction to economic reasoning. Garden City, N.Y.: Anchor Books.

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Gustavo Camarotte Student ID: W15880609

Social Factors: 

From carrying out secondary research I have found out that the biggest social-cultural factor that Primark is facing is that in UK the number of obese is rising therefore, stores like Primark need to introduce plus sizes, mainly because the number of obese woman and man are growing in the UK, which means that in the next 12 months more obese will frequently look for plus size in Primark’s stores.

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From researching the UK ageing population, I can see that in the future there will be 8.2 million people aged 65 years and over, this is a problem for Primark, because they will need to introduce more products for these target market and they will also have to improve their online shopping experience so these elderly customers can buy Primark’s product without leaving their house.

Reference: 1. PricewaterhouseCoopers (2017). The UK plus size clothing market - PwC UK. [online] PwC. Available at: https://www.pwc.co.uk/services/transaction-services/insights/the-uk-plus-sizeclothing-footwear-and-accessories-market.html [Accessed 9 Dec. 2019]. 2. The UK plus size clothing market review. (2017). [online] Available at: https://www.pwc.co.uk/transaction-services/assets/pdf/pwc-plus-size-market-review.pdf. 3. 123writing.com. (2016). 123writing | PESTLE and SWOT Analysis of Primark 2016-2017. [online] Available at: https://www.123writing.com/sample/pestle-and-swot-analysis-of-primark-20162017. 4. Ons.gov.uk. (2019). Overview of the UK population - Office for National Statistics. [online] Available at: https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populatione stimates/articles/overviewoftheukpopulation/august2019.

Technological factors: 

From investigating the E-commerce in UK I can see that there has been a growth in the number of sales made through the internet since 2017, therefore Primark is impacted by this factor because they need to increase their online presence in order to earn more net profit and increase their market share in the next 12 months. Primark needs to do this as soon as possible, because there are some brands like Amazon, Asos, and Boohoo who are taking over the ecommerce sector. Therefore, if Primark doesn’t act quickly, they won’t be able to maintain their market share, because some people prefer to shop online rather than in store.

Reference: 1. Ons.gov.uk. (2017). E-commerce and ICT activity, UK - Office for National Statistics. [online] Available at:

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Gustavo Camarotte Student ID: W15880609

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https://www.ons.gov.uk/businessindustryandtrade/itandinternetindustry/bulletins/ecommercea ndictactivity/2017. 123writing.com. (2016). 123writing | PESTLE and SWOT Analysis of Primark 2016-2017. [online] Available at: https://www.123writing.com/sample/pestle-and-swot-analysis-of-primark-20162017. 123writing.com. (2016). 123writing | PESTLE and SWOT Analysis of Primark 2016-2017. [online] Available at: https://www.123writing.com/sample/pestle-and-swot-analysis-of-primark-20162017. 123writing.com. (2016). 123writing | PESTLE and SWOT Analysis of Primark 2016-2017. [online] Available at: https://www.123writing.com/sample/pestle-and-swot-analysis-of-primark-20162017. M Dale Beckman and Rigby, J.M. (2003). Foundations of marketing. Scarborough, Ont.: Thomson/Nelson.

Legal factors: 

Primark is impacted by the right to work law because this law says that employees must check each applicant to see if they have the right to work in the UK. Therefore, if the UK leaves the EU without a deal Primark will only be able to hire employees that have the 36 months’ temporary immigrant status or the permanent stay visa.

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Secondly, from carrying out secondary research I can see that Primark is constantly impacted by the UK modern slavery act 2015, because they need to ensure that their products are not manufactured in a non-ethical way and that their suppliers aren’t using children to manufacture their clothes. Therefore, when Primark is choosing a supplier they must check if their factories are complying with the UK modern slavery act 2015 otherwise they won’t be able to sell their product in UK.

Reference: 1. Wikipedia Contributors (2019). Right to Work Law UK. [online] Wikipedia. Available at: https://en.wikipedia.org/wiki/Right_to_work_law_uk [Accessed 18 Nov. 2019]. 2. Home Office (2019). No deal immigration arrangements for EU citizens arriving after Brexit. [online] GOV.UK. Available at: https://www.gov.uk/government/publications/no-dealimmigration-arrangements-for-eu-citizens-moving-to-the-uk-after-brexit/no-deal-immigrationarrangements-for-eu-citizens-arriving-after-brexit [Accessed 9 Dec. 2019]. 3. Home Office (2014). Modern Slavery Act 2015. [online] GOV.UK. Available at: https://www.gov.uk/government/collections/modern-slavery-bill. 4. Primark.com. (2015). Modern Slavery Act | Primark UK. [online] Available at: https://www.primark.com/en/modern-slavery-act [Accessed 9 Dec. 2019]. 5. M Dale Beckman and Rigby, J.M. (2003). Foundations of marketing. Scarborough, Ont.: Thomson/Nelson. 6. Herbert, A. (2017). Brexit should not mean Brexit for cytopathology. Cytopathology, 28(4), pp.337–338.

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Gustavo Camarotte Student ID: W15880609

Environmental factors: 

From my secondary research I have found out that some customers respond better to shops that are considered environment friendly. Therefore, Primark is impacted by the environment factor, because they need to minimises their impact on the environment for example Primark needs to manufacture their product in an environmental sustainable way e.g. by recycling or by recovering and beneficially re-using their waste or by using biodegradable carry bags.

Reference: 1. Butler, A. (2018). Do Customers Really Care About Your Environmental Impact? Forbes. [online] 21 Nov. Available at: https://www.forbes.com/sites/forbesnycouncil/2018/11/21/do-customersreally-care-about-your-environmental-impact/ [Accessed 23 Nov. 2019]. 2. ENVIRONMENTAL SUSTAINABILITY PERFORMANCE REPORT 2018 CONTENT. (n.d.). [online] Available at: https://primark.a.bigcontent.io/v1/static/Primark-Detox-EnvironmentalPerformance-Report-2018. 3. Defra.gov.uk. (2019). UK and EU Air Quality Limits- Defra, UK. [online] Available at: https://ukair.defra.gov.uk/air-pollution/uk-eu-limits [Accessed 9 Dec. 2019].

Summary Paragraph: From examining each macro factor that Primark is currently facing I know that in the next 12 months, Primark will have to create contingencies plan in-order to prevent the Brexit deal from impacting their business performance. The last most important macro factor that I think Primark will face will be the obese level in UK, because they will have to adapt their fashion style to suit this niche market.

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Gustavo Camarotte Student ID: W15880609

What micro factors need to be considered for this brand in the UK over the next 12 months Customers: 

From examining Primark’s customers through secondary research I have come to a conclusion that there are unserved market needs for Primark to trade in for example in the secondary research I have found out that the number of obese have risen in UK therefore, Primark can use this unserved market and manufacture clothes that have plus size, if Primark does this it will show that they are aware of their customers micro factor and that they are taking action to solve this problem before it impacts their market share in the next 12 months.

Reference: 1. PricewaterhouseCoopers (2017). The UK plus size clothing market - PwC UK. [online] PwC. Available at: https://www.pwc.co.uk/services/transaction-services/insights/the-uk-plus-sizeclothing-footwear-and-accessories-market.html. 2. The UK plus size clothing market review. (2017). [online] Available at: https://www.pwc.co.uk/transaction-services/assets/pdf/pwc-plus-size-market-review.pdf. 3. Gaby Hinsliff (2019). Cheap and cheerful: why there’s more to Primark’s success than you thought. [online] the Guardian. Available at: https://www.theguardian.com/business/2019/may/28/more-to-primark-success-than-youthought.

Competitors: 

Primark is impacted by their competitors over the next 12 months because they don’t have a strong E-commerce presence, therefore their customers can’t buy any of Primark’s product online, and this impacts them negatively, because consumers that enjoy shopping online won’t be able do so because Primark doesn’t offer them this service. Therefore, customers that enjoy shopping online will buy from Primark’s competitors, because they can offer them online shopping.

Reference: 1. Gaby Hinsliff (2019). Cheap and cheerful: why there’s more to Primark’s success than you thought. [online] the Guardian. Available at: https://www.theguardian.com/business/2019/may/28/more-to-primark-success-than-youthought. 2. UKEssays.com. (2009). An organisation’s process. [online] Available at: https://www.ukessays.com/essays/business-strategy/an-organisations-process.php [Accessed 9 Dec. 2019].

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Gustavo Camarotte Student ID: W15880609 3. Zara.com (2019). ZARA United Kingdom | New Collection Online. [online] Zara.com. Available at: https://www.zara.com/uk/. 4. Tesco.com. (2000). Tesco :: Online Groceries, Banking & Mobile Phones. [online] Available at: https://www.tesco.com/. 5. Asda.com. (2019). Online Food Shopping - ASDA Groceries. [online] Available at: https://groceries.asda.com/. 6. Asda.com. (2019). Online Food Shopping - ASDA Groceries. [online] Available at: https://groceries.asda.com/. 7. Ons.gov.uk. (2017). E-commerce and ICT activity, UK - Office for National Statistics. [online] Available at: https://www.ons.gov.uk/businessindustryandtrade/itandinternetindustry/bulletins/ecommercea ndictactivity/2017. 8. Ons.gov.uk. (2017). E-commerce and ICT activity, UK - Office for National Statistics. [online] Available at: https://www.ons.gov.uk/businessindustryandtrade/itandinternetindustry/bulletins/ecommercea ndictactivity/2017. 9. 123writing.com. (2016). 123writing | PESTLE and SWOT Analysis of Primark 2016-2017. [online] Available at: https://www.123writing.com/sample/pestle-and-swot-analysis-of-primark-20162017.

Suppliers: 

From carrying out secondary research I am aware that Primark is constantly impacted by their suppliers, because the UK requires Primark to trade transparently. Therefore, Primark must ensure that their suppliers are not participating in Modern slavery and also Primark needs to ensure that their suppliers factory meet the health and safety otherwise customers won’t shop at Primark, because they don’t want to be associated with a company that operates unethically towards their suppliers and this affects Primark constantly, because they are only allowed to use suppliers after they have proven that their work environment meets the UK’s Legislations and that they are not using hazardous chemicals that harms their customers body.

Reference: 1. Butler, S. (2014). Primark to pay £6m more to victims of Rana Plaza factory in Bangladesh. [online] the Guardian. Available at: https://www.theguardian.com/world/2014/mar/16/primarkpayout-victims-rana-plaza-bangladesh. 2. Primark Ltd. Modern Slavery Statement 2018. (n.d.). [online] Available at: https://primark.a.bigcontent.io/v1/static/Primark_MSA_2018%20-%20Signed [Accessed 9 Dec. 2019]. 3. ENVIRONMENTAL SUSTAINABILITY PERFORMANCE REPORT 2018 CONTENT. (n.d.). [online] Available at: https://primark.a.bigcontent.io/v1/static/Primark-Detox-EnvironmentalPerformance-Report-2018. 4. Home Office (2019). Transparency in supply chains. [online] GOV.UK. Available at: https://www.gov.uk/government/consultations/transparency-in-supply-chains [Accessed 9 Dec. 2019]. 9

Gustavo Camarotte Student ID: W15880609 5. Primark.com. (2014). Manufacturing responsibly | Primark UK. [online] Available at: https://www.primark.com/en/our-ethics/planet/manufacturing-responsibly/a/3db3bc36-3e4a420a-a5df-407aa7162e79 [Accessed 9 Dec. 2019].

Distributors: 

From carrying out secondary research I have found out that Primark has 17 suppliers in the UK therefore Primark needs to have a very good logistic team to transport these products to their high street stores. However, the problem that Primark faces is that they need to recycle all the cardboard boxes that are used to bring the clothes from these 17 factories, otherwise they will be polluting the environment.

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Secondly, from carrying out secondary research I know that not all factories are based in UK therefore, they need to import it from Europe or other countries, however the UK might leave the EU and this will create trade barriers that could affect Primark in the next 12 months.

Reference: 1. Primark.com. (2010). Recycling | Primark UK. [online] Available at: https://www.primark.com/en/our-ethics/planet/recycling/a/a896b3f6-be42-494f-a10e9c6f7ef54bab. 2. Primark.com. (2019). Primark Global Sourcing Map. [online] Available at: https://globalsourcingmap.primark.com/. 3. Davey, J. (2019). Primark owner AB Foods says no-deal Brexit would be “reckless.” [online] U.K. Available at: https://uk.reuters.com/article/uk-ab-foods-outlook/primark-owner-ab-foods-saysno-deal-brexit-would-be-reckless-idUKKCN1PB0JI [Accessed 9 Dec. 2019].

Summary Paragraph: Discussing key micro factors From researching each micro factor, I have come to a conclusion that the main factor affecting Primark in the next 12 months is that they are losing market share to their competitors because they don’t offer online shopping. The second factor that I believe will affect Primark the most in the next 12 months will be the distribution issue, because if the UK leaves the EU there will be more trade barriers between each country and this will result in Primark facing difficulties to import and export. The last factor that will affect Primark in the next 12 months will be that the obese level will increase in UK which means that Primark will have to sell plus size.

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Gustavo Camarotte Student ID: W15880609

Identify three main target audiences of the brand Introduction: Market segmentation involves the division of a diverse market into a number of smaller submarkets that have common features. I will identify Primark’s market segmentation by looking at their consumer’s benefits sought, purchase behaviour, usage, lifestyle, age and geography.

Benefits sought Primark uses benefits of segmentation to understand why people buy in a market, because this can aid the identification of opportunities in the market. From researching Primark, I know that most of their customer’s shop there, because they can offer a wide variety of affordable clothes from all range, starting from an adult size to a baby size. Therefore, I can see that Primark has targeted the entire market, because they are offering products that be...