Primark, subsidiary of Associated British Foods, is a well known retailing Brand in clothing founded by Arthur Ryan, actual chairman.First headquarters were located in Ireland, where the brand was born as Penneys. The first store opened in 1969 in Dublin. 1973 opened the first store in UK. Nowadays, Primark count 194 stores in 7 countries: 138 in UK, 38 in Ireland, 14 in Spain, 1 in Portugal, Germany, Belgium and the Netherlands. (www.primark.co.uk/aboutus)This brand became more and more successful through years. Today, it is well known around UK and Ireland.
Primark fits everybody, as they are well diversified: clothes for men, women, children (sportswear, casual, smart), but also shoes, accessories, lingerie, cosmetics and home items.(www.primark.co.uk/Our_Products). The company opened 41 stores in 18 months. Its turnover was £1.933 billion in 2008, and sales are constantly increasing even during the recession (a 19% raise of sales within the last 4 months of 2010, (The Guardian, 2010)). Maybe even more during the recession, as Primark sell cheap clothes and defines itself as “fashionable clothing at competitive prices”.
[...] More than 20% of the population is aged more than 65, which will create fiscal problems in the long term, boosted by the raise of pension and health spending to cover The Clothing market a macro environment analysis: France: Accessibility: In France, there are 3 levels of VAT. The one concerning clothing and footwear industry is Labour market: Social charges are really high, almost of labour costs in 2006. The minimum wage per hour, called SMIC, is today 8.82 Since 2005, there are no more quotas against textile products, which has been settled by GATT in 1974. [...]
[...] (BBC, 2008) Differences with the home market: French people spend nearly twice as much on clothing than any other European country even if in UK of income is spending on clothes. There are some minor fashionable differences between the two countries, and also different cuts and sizes. In France, franchisees shops are open until later than in UK, 7pm during the week : people go shopping after finishing work. Ways of queuing are different: in France, there are as many queues as tills instead of one. [...]
[...] Primark's values will match the French culture, and, more than that, French needs in term of clothing. Moreover, as both countries are well developed in western Europe, there is no major culture differences in consumer behaviour. Its global strategy is efficient, and its experience in opening new stores is an indisputable asset to compete and succed on the French Market. The implementation of that new product on a foreign market is then well viable, but will have to consider the marketing plan we settled, to be as efficient as possible. [...]
[...] After analysing the market, which looks promising, we settled a marketing plan that will meet your objectives, budget and global strategy Marketing Plan Adapt the product to the local market : As Primark is a brand in expansion, the best way to compete and be successful in France is to adopt a Global Standardised approach, as the company proceeded for its implementation in other Europeans countries. The advantage of that kind of strategy is to reduce the costs, giving the firm a price advantage. [...]
[...] The study of Jacobi and lson in showed that the price offered by the company should reach the consumer's expectation to encourage the purchase. After identifying quality of a product or a service, the consumer has his own opinion about an expected price: that is called the psychological pricing. Clothes are durables goods, that is to say it's not about an instant experience: quality can be evaluated during the post purchase experience. That makes the price even more difficult to consider. [...]
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