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1.0 IntroductionThe research report under consideration isaimed to explore the significant role played byMarketing Strategies in today's modern anddynamic business environment. Marketing has gained substantial importance and has become first priorityof decision makers in any organisation.

This document presents a research report analyzing and forecasting marketing environment faced by leadingretailer Primark with special focus on competitive analysis.

Primark Stores Ltd, an Irish upstart and subsidiary of Associated British Foods, is second largest clothing retailerin terms of sales and revenue with its existence mainly in Ireland, UK, Spain and expanding further in the Europe.It is believed that soon it will become leading clothing retailer.

This extensive research is aimed at exploring current marketing strategies adopted and evaluating theireffectiveness. The critical review of current segmentation, targeting, positioning and branding strategies ofPrimark and an extensive market analysis is carried out to suggest future marketing strategies and growth areasand to improve and sustain quality of services provided. The expected outcomes of document arerecommendations to use marketing strategies tactically in decision making to enjoy sustainable growth.

1.1 Reason for choosing the topicI have selected this topic realizing the fact that in today's intensively competitive business environment, financialsuccessof any company depends on combined efforts of its financial strategy and marketing strategy. In fact, onlythose companies thrive in business who works closely with their customers; and, marketing has become asuccessful tool to create a relation with customers indirectly. From small to large, every organisation is realizingthat effective marketing strategies can add value and exert tremendous influence over their ability to attractcustomers, leaving positive impact on company's performance and profitability.

Marketing is defined as management process that identifies, anticipates and satisfies customer requirementsprofitably. It involves integrated analysis, planning and control of marking mix variables (Product, Price,Promotion and Distribution) to satisfy both individuals' and organizations' objectives (Lancaster and Massingham,1999). Marketing Environment consists of actors; and forces outside that affect marketing management's ability todevelop and maintain successful relationships with its target customers (For further information on MarketingEnvironment, see Appendix I).

1.2 Reason for choosing Retail Industry and PrimarkReason for choosing retail industry for research project is because it is a high profile and constantly changingbusiness at the sharp end, but now-a-days, retail industry in UKis under high pressure as key factors like troubledmortgage and housing market, rising fuel prices and utility bills, high interest rates in UK are challenging retailenvironment as compared to years of strong growth between 2002 and 2004. Formally retail is defined as sale ofcommodities to household or ultimate consumers (Barry and Evans; 1986).Retail industry can be categorised invarious sectors as food retailers, health and beauty retailers, clothing and footwear retailers, home furniture andhousehold goods retailers etc. But now discount, budget or value retailing in UK has taken on a higher profile overrecent years despite effects of recession. Especially interests have largely centered on growth of value ordiscount clothing retail industry.

The organisation under focus in this report is Primark known for selling clothes at budget end of market and it issecond largest clothing retailer in UK in terms of sales and revenue. Reason for choosing Primark is itswonderfully sustained growth in the worst recession times of history. Retail clothing industry is a fast moving andcomplex, high profile and constantly changing business environment which demands that marketing process of alarge retail organisation like Primark should be managed strategically. Report is aimed at evaluating marketingstrategy of Primark and to determine its effectiveness.

2.0 Primark: A Brief Overview Of The BusinessPrimark is a brilliant and unique organisation with a missionstatement to enrich the life of everyone with fashionable clothingregardless of social status. It emerged as major force in the Britishretail industry, contributing through its low price value and greatquality fashion products for everyone in society as a whole andleaves remarkable impact on social, environmental and ethicalbehavior of people. Primark does not rip off its customers andpresents excellent example of it motto which states look good, pay less Primark, (2010).

Most of their clothes are bought from same factories as other fashion retailers and people producing them arepaid exactly the same whatever label and whatever price in shop. Company's success is based on sourcingsupply cheaply, they buy directly from factories without involving any agents, making clothes with simple designsand fabrics, only making them in the most popular sizes, buying stock in huge bulks and varieties and targetingyoung, fashion-conscious buyers under 35's, offering them high quality, fashion basics at value for money prices.They are able to offer such good value and good quality because of low mark-ups and big volumes. Theiroverhead costs are extremely low as they do not run expensive advertising campaigns; instead they havewonderful strategic marketing approach that stands them out.

3.0 Marketing Strategy Of PrimarkRetail clothing industry is a fast moving and high profile business environment which demands that marketingprocess of a retail organisation should be managed strategically. Strategy of an organisation is roadmap towardsattainment of its long term goals and objectives. Strategic marketing management involves implementingprinciples of strategic management in the context of marketing function in organisation. At corporate level,marketing inputs (e.g., competitive analysis, market dynamics, and environmental shifts) are essential forformulating a corporate strategic plan. Primark has well organized strategic Target marketing and Productmarketing approaches in place.

3.1 Target Marketing ApproachStrategic marketing is about achieving maximum possible differentiation over competition in meeting customerneeds, gaining and sustaining competitive advantage and capitalizing on corporate strength and capabilities. Intoday's dynamic environment, it is highly important for companies to relate characteristics and attributes of theirproducts to customer requirements more closely. Firms are more concerned with the most commercially attractivesegments of market for a given product. This not only increases opportunity but also reduces overall costsincurred by company. This process is called target marketing and it must be carried out systematically to beeffective and for this purpose it can be divided into three stages as in Figure;

3.1.1 SegmentationAt first stage of segmentation, overall market is divided into distinct groups of buyers who are likely to respondfavourably to different products, services or marketing mix. Company needs to determine most appropriate basisfor segmentation, identify characteristics for each segment and develop criteria to evaluate their commercialattractiveness and viability. Market segmentation allows managers to see clearly the diversity within their marketsand uncover opportunities that may exist or segments whose needs have not been properly met by otherofferings. Figure, depicts segmentation criteria for consumer market, determines base of segmentation and

explains variables for each base

Some of these segments are easy to determine relatively with lowcosts but they are least trusted in terms of determining consumerchoice. Figure below shows predictability of customer choicebehaviour relative to segmentation bases.

Table determines segmentation variables for Primark.

As Primark is tagged a value clothing retailer, clothing is mostimportant and leading item in its product portfolio follower byfootwear. Its marketing segments are evaluated on basis of clothingand footwear. Although all above determined segmentations bases and variables are important but demographicfactors are the most straight forward base for segmenting Primark's consumer market, as they are mostmeaningful.

Main demographic variables for Primark consumer market are identified as in charts below. All demographicfactors are identified according to their percentage relative attractiveness for targeting them depending upon theirmarket share for Primark. Hhighlighted segments in diagrams are identified as most meaningful for Primark andthey must be targeted to gain marketing objectives.

3.1.2 TargetingNext stage of market targeting focuses on evaluating and selecting one or more previously identified marketsegments at which to direct marketing resources, developing an appropriate marketing mix for them and developsegment coverage strategy. This selected segment is made focus of comprehensive marketing plan. Kottler(1984) suggested that in order for market segmentation to be effective each of the segments must be distinct,assessable, measurable, and profitable. Once determined which segment attractiveness factors are important,evaluate each of those factor against selected segments using segment attractiveness evaluation matrix below;

There are four different targeting approaches can be considered to develop marketing mix to meet marketingobjectives. Undifferentiated marketing is used for one marketing mix, targeted towards whole market andmarketing mix (Price, Place, Product, Promotion, Distribution), and targets towards everybody. Differentiatedmarketing is used for multiple marketing mixes and involves multiple products, targeted towards multiplesegments. Focused marketing is for one marketing mix and multiple segments with focus on one segment inparticular, who will have control over other segments. Customised marketing is used for one marketing mix percustomer as in figure below;

For Primark, targeting strategy that I have decided to use is differentiated marketing strategy because we havemultiple products and consumers can be segmented into multiple segments, hence best approach to be followedis differentiated marketing approach. Different segments identified are based on age, sex, life style, income leveland social status and we have multiple products portfolio that can be targeted towards these various segments.

3.1.3 PositioningIn third phase of product positioning all marketing mix elements are designed to fit a given place within aparticular segment. This is how consumer perceives products relative position to competitor's product which ishighly important. It is like developing a marketing strategy aimed at creating and maintaining a desired conceptand image for a product or service in consumer's mind (See Appendix V for further information). Key to success isidentification of attributes that are considered to be more important. Through market research we can identify whatfactors (attributes) are key drivers of a consumer's preference for a brand. For instance, it was identified from asample of female teenagers that were surveyed, that being trendy and stylish, having a good range of clothing,and good brand reputation, were most important factors for this target market when selecting a preferred brandYoung Dimension of fashion retailer Primark.

Brand positioning provides insight into brand performance and givesimportant inputs for marketing communications used to support abrand. Through communications, especially advertising, informationcan be conveyed about each attribute and in doing so adjustperceptions customers have of brand. As Primark need to repositionthe perception market has of its brands from range and quality ofclothing to be more trendy and stylish. Primark has emphasizedmore on in-store service and convenience; and as Budget Fashionretailer, they might want to maintain their current positioning of lowprice, affordable, but also good value for money.

3.2 Product Marketing ApproachA company's performance is closely linked to its marketing strategies. Each company's strategy must be uniquesince each company is different with respect to customer, brands and competitors. I used Ansoff Matrix todetermine product marketing strategies for Primark to set the directions for its business. With this matrix; I plotcurrent and potential products along one axis and current and potential new markets along other axis. Thus itdemonstrates low and high risk options and helps to think about business growth with new or existing products innew or existing markets. Each cell of matrix suggests a particular strategic approach. Output from Ansoff matrix isa series of suggested growth strategies.

Market penetration is a growth strategy where business runs as usual and focuses on selling existing productsinto existing markets with good information on competitors and on customer needs. Primark can maintain orincrease market share of its current products by a combination of competitive pricing strategies, advertising, salespromotion. Primark has extensive portfolio and it cans secure dominance of growth markets and drive outcompetitors by more aggressive promotional campaign. For example Primark brand Active, supported by apricing strategy designed to make market unattractive for competitors. Primark must uses internal promotionstrategy by introducing loyalty schemes and increases its usage by existing customer. One of penetration strategyadopted by Primark is expansion of shop floors and opening new stores.

Market development is a growth strategy where business seeks to sell its existing products into new markets.There are many possible ways of approaching this strategy, including moving to new geographical markets; forexample exporting product to a new country, new product dimensions, new distribution channels, or differentpricing policies to attract different customers or create new market segments. I suggest Primark to move online bylaunching high tech website for online sales.

Product development is growth strategy where business aims to introduce new products into existing markets. Itrequires development of new competencies and to develop modified products which can appeal to existingmarkets. Diversification is a growth strategy where a business launches new products in new markets. This is aninherently more risk strategy because business is moving into markets in which it has little or no experience. Fora business to adopt a diversification strategy, it must have a clear idea about what it expects to gain from strategyand an honest assessment of potential risks. Analysing Primark's position and its strategies over past decade, wecan better construct a growth strategy for Primark using Ansoff matrix model below in Figure;

4.2.1 Product Portfolio AnalysisI conducted product portfolio analysis for Primark using BCG Matrixas in figure below;

Marketing mix refers to set of marketing ingredients and tools acompany can use to pursue its marketing objectives in targetmarket. According to Lancaster and Massingham; (1999), it is atmarketer's decision to choose from an extensive set of marketingcomponents to find right combination while marketing a product. 4Ps form basis of marketing mix. Kotler (1996)describes, Marketing Mix is a social and managerial process by which individuals and groups achieve what they

need and want through creating and exchanging products and value with others.

Marketing Mix is viewed as combination of elements that contribute to success of an organisation. If marketresearch is carried out effectively, a company can plan a promotion for right product, at right price, and to get it totheir chosen market, in right place.Getting this mix right is critical in order to successfully market a product. 4Psare Product, Price, Promotion, Place as shown in figure below;

Primark needs to combine various elements of marketing mix in order to achieve both a competitive advantage inmarket place and company objectives. Although company has control over these elements of marketing mix, butmust cater elements in company's environment over which it has little or no control (figure above). Fororganisations like Primark although marketing mix must be is consumer-orientated catering not only profitabilitybut also considering customer needs as in figure,

Table below shows some of marketing mix decisions for Primark including aspects from each of marketing mixelements.

4.3 Brand StrategyA successful marketing mix contributes to good marketing of a product; hence there must be a brand strategy inplace. American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or acombination of them intended to identify goods and services of one seller or group of sellers and to differentiatethem from those of other sellers. (See Appendix VI for characteristics of a brand). A strong brand strategy canincrease awareness of a company and its offerings in such a way that establishes strong feelings and reactionsand a favorable view towards company as a whole. To begin development of brands strategy for Primark, theremust be clear identification of Primary Target Customer and/or Client, Competition Product and Service Mix,Unique Selling Proposition

First step in developing brand strategy is defining brands. By defining brand, it's easy to create foundation for allother components to build on. Brand definition serves as measuring stick in evaluating marketing strategies.Primark has an extensive brand portfolio;

Brand portfolio usually refers to company's set of brands and/or products. The logic behind having a portfolio ofbrands rather than a single brand is possible diversification and risk minimization. Hence brand portfolio is atreasure trove. Next step is to determine our brands objectives, Primark's branding objectives include:

Delivers message clearlyConfirms your credibilityConnects your target prospects emotionallyMotivates buyerConcretes User LoyaltyGaining a specific number of new clients in next yearPositioning company as an industry leader in next 12 months

To succeed in branding company must understand needs and wants of your customers and prospects. Brandobjectives should be comprised of company personality, image, core competencies and characteristics. Theimpressions that it makes as well as words people will use to describe company to others, are basic framework ofa brand. With a strong brand company builds credibility, has more influence on its market, and motivatescustomers and clients to purchase from it. If done correctly company will be looked at as a leader not a follower.

Identifying marketing targets enables company to find opportunitiesavailable. It gives information needed to focus on buyers that areinterested in what company has to offer. This can save both timeand money in an ever-changing business environment. Power ofbrand relies on ability to focus target audiences. That is whydefining target market will help to strengthen Primark's brand'seffectiveness. Target market for Primark is people up to age of 35who are fashion conscious.

Next step in developing Primark's brand strategy is to perform a careful analysis to determine principal barriersthat it may face. These barriers are also known as market conditions that can keep your product or service fromachieving success. The potential barriers in deploying Primark's brand strategy can competition, timing, financing,location, lack of demand, suppliers not meeting demands and targets. In order to face these obstacles it'simportant to spend time doing a careful analysis of products or service to assist in developing brand, andpositioning products in the market.

Last step in brand strategy is branding company's identity in marketplace where image is all about appearance ofpackaging. It's important to realize that packaging always either has a negative or positive influence on purchaser.A negative impression can detour a potential customer, just as a positive reaction can influence a customer tobuy. A time to pay special attention to packaging is when going to launch a new brand. If you've already built astrong brand that others recognize often people may not pay as close attention to packaging. Packaging is judgedand represented by business cards and stationery, web site, answering system, presentation of finished products.

Brand equity does not develop instantaneously. A brand needs to be carefully nurtured and marketed soconsumers feel real value and trust towards that brand. When a company manages its brands it has a number ofstrategies it can use to further increase its brand value. (See Appendix VI for further explanation). Brandstrategies that are more suitable for Primark are line extension and introduction of new brands. Primark mustfocus on its brand management as it's a dynamic and a continuous process that needs consistent investment oftime and it must be allocated a specific budget as it is much more than mere marketing communications. Due tointangible nature of branding, results may not accrue in a short period of time a it takes time and reinforcement tobuild customer loyalty. Successfully out-branding its competitors is a continuous battle for hearts and minds ofyour customers. Proposition that Primark's brand strategy makes is very compelling, attractive and unique amongcompetitive offerings. It must also be consistently reinforced throughout all phases of an organization, from seniorexecutives to customer service, business development and even business partners.

Primark is respected for quality of its products and cheap prices. If we briefly review business environment andother factors identified in this report for Primark then we may realize that consumer behaviour is changing andbusiness environment evolving across retail industry. Concern is rise in supplier's demands regarding price andcosts. If it continues to rise steeply it will damage profits that it is currently enjoying. Reviewing forces and factorsfaced by Primark and their impact on organisation, it is obvious that Primark is facing many challenges andstanding at verge of it survival in long term.

Market Research World, 2011 revealed that value fashion sectorsees worst decline for first time in over 16 years - much to gain ofhigher-priced retailers, reveals data by TNS Worldpanel Fashion.While fashion discounters such as Primark, Tesco, George andMatalan saw a phenomenal sales increase of nearly 30% lastsummer, growth has now ground to a hold with sales falling by 1%over last six months. In contrast, sales of most expensive clothingare up by 4%, as shoppers head to generally more expensiveretailers such as multiples and mail order retailers. Clothing industryhas been globalised. Strategies followed by clothing firms, to survive in a context of strong pressure from retailersand from competition from low-wage countries, are a combination of two trends. First trend is relocation ofproduction to low-wage countries; second one is the development of six added-value activities: niche, QuickResponse, full package, innovation, branding and retail.

Elaine Giles, Research Manager, TNS says, Shoppers are starting to favour higher priced retailers and premiumend of market is performing well. Growth of value sector last year came on back of new store openings andexpansions that brought an influx of new buyers, but now sector seems to have reached saturation point. The onlyway, budget retailers can continue their success is to increase spend of existing buyers, something they maystruggle to do given current retail climate.

4.0 Strategic Marketing Environment AnalysisPrimark is one of the leading value clothing retailers in UK. It is highly crucial for an organization like Primark toperiodically review its marketing environment to gain competitive advantage in market. Discount cloth retailing inUK has several characteristics including clearance outlets, core business discounters, planned purchasing at highvolume, own-label or branding, relationships with manufacturers, attracting customers with good image andservice. There are three different analytical tools used to assess marketing environment of an organisation;Porter's Five Forces Analysis, SWOT Analysis and PESTLE Analysis.

4.1 Porter's Five Forces AnalysisFirst of all Porter's Analysis is carried out which is a technique for identifying forces which affect competition levelin industry as shown in figure A below;

The threat of new entrants in market is a critical element haunting Primark much as there are less entry barriersincluding low entry costs, high volume of suppliers, vast market in India and china, higher growth space in market,economies of scale, low capital requirements, access to distribution, government policy, low cost product design,access to necessary inputs. But new entrants in industry are not likely to cut their price to defend their marketposition. In an industry experiencing fast market growth, patents, proprietary knowledge, and brand reputation arealso considered as barriers for companies entering industry.

Strategic position of a company depends upon the extent to which what it offers is unique and cannot be replacedby something else. Primark has strong brand portfolio which is its uniqueness. As for some of products, likePrimark cheap clothing there are alternatives. But there is no substitute for low price of Primark's products.Determinants of these substitution threats include relative price of substitutes, buyer propensity to substitute.

Buyers/customers have greatest impact on Primark's strategies asits vision and strategies are customer focused. Hence, it has to caterchanging customer trends, their demands and requirements.Customer's volume, customer information level and trends,substitute products pull through, price, product difference, brandidentity, impact on quality, buyers profit and incentives are fewfactors that Primark is facing as major challenge in competitivemarket.

Suppliers might have high impact on Primark if they are bigger company and have less competitive market fortheir products. Primark is facing big challenge from supplier as it has good and long term relationships with itssuppliers build on trust but recently three of its main suppliers are found involved in child labour and Primark hasto cut-off ties with them immediately which is definitely a big blow for Primark. Primark pays its suppliercompetitive price for their products to retain them. Primark maintains substitute inputs, and high volume ofsupplier to avoid extra costs.

Apart from five forces identified by Porter's Analysis, there are other factors revealed by PESTLE Analysischallenging Primark's position in competitive market, in figure below;

(For PESTLE Analysis, refer to Appendix II; and for SWOT Analysis, Appendix III)

Strategic marketing analysis of Primark, using different analysis tools reveal that Primark is expanding globallyand being in the global market; Primark has adopted an approach of Think globally, Act locally as stated byArmstrong, (2006). They are expanding globally but cater needs of local market and fashion trends in local

culture. Primark supports UK's global role by showcasing the best of British fashion to a global customers as wellas it reflects how it builds social cohesion and business ethics between customers and its suppliers.

Primark faced a major blow to its reputation on 24 June, 2008 after being exposed by and undercover report byBBC exposing it using child labour. Afterwards, Primark's marketing strategy mainly focused to promote itself asethical organisation with a clear and strict code of conduct to which all suppliers must adhere and which formspart of the terms of their contract. Primark supports nearly two million people through its supply contracts worth700 million and is dedicated to improve their standard of living and quality of life. For this, Primark hasestablished Primark Better Lives Foundation' (Primark Ethical Trading, 2011 a). In response to the allegations ofuse of child labour by its suppliers, identified by Panorama (BBC program) Primark stopped buying from threefactories in southern India for breaking its Code of Conduct. It also took other major initiatives and is now activemember of ETI that announce it Achiever' in year 2009-2010 independent audit (Primark Ethical Trading, 2011 b).(For further information on ETI and Primark code of conduct, see Appendix IV)

Further apart the positions, greater the opportunity for new brands to enter market, simply because competition isless intense. For example, in fashion retailing there are numerous brands in marketplace all competing with eachother across differing core attributes, brand reputation, store presence, price, and clothing quality or trendy andstylish. To show how differing brands might be positioned relative to each other using attribute scores for eachbrand of fashion retailer we can measure and map brand positioning for respective brands. Figure below showspositioning of a number of fashion retailers using dimensions of price, store presence, and trendy and stylish.

Using this list of drivers we can further depict on what we call aperceptual map how different competing brands of fashion retailersin market are positioned according to these drivers. Understandingcomplexity associated with different attributes and brands can bemade easier by developing a visual representation of each market.These are known as perceptual maps and they are used todetermine how various brands are perceived according to keyattributes that customers' value. Perceptual mappingrepresent ageometric comparison of how competing products are perceived(Sinclair and Stalling, 1990). One thing to note is that closer products/brands are clustered together on aperceptual map, greater the competition.

Mapping can provide significant insight into how a market operates. It provides marketers with an insight into howPrimark's brands are perceived and it also provides a view about how their competitors' brands are perceived. Inaddition to this substitute products can be uncovered, based on their closeness to each other (Day et al., 1979).All of this data reveals strengths weaknesses that in turn can assist strategic decisions about how to differentiateon attributes that matter to customers and how to compete more effectively in target market.

4.2 Competitor AnalysisLike any other business, Primark is also facing tough competition from George at ASDA, Tesco, Marks & Spencer,TK Max, Costco, Next, Zara, New Look, Peacock and Matalan. Analysis for each major competitor determinesthat Primark has better business strength and high market share. It has good financial strengths and highprofitability but relatively poor quality of management and low standards of technology position. Primark is payingleast attention to its marketing strategies. Marketing represents boundary between marketplace and company, andknowledge of current and emerging happenings in marketplace is extremely important in strategic planningexercise.

In relation to competition, several external forces and environmental changes are faced by Primark that need tobe considered to formulate its marketing strategy. Currently, Primark is facing high competition with qualitycompetitors like Peacock, Matalan etc. They are offering cheap products as well and growing at tremendousspeed, threatening position of Primark. Most of Primark customers are switching to rivals because of their qualityproducts and good marketing strategies which Primark lacks. Marks and Spencer, the biggest rival of Primark hasvery extensive marketing strategies with strong brand portfolio. They do advertisement on almost every media

available; while Primark do not use even single media for advertisement. Marks and Spencer offers frequentpromotions for its customers, they offer loyalty card, and have online sales portfolio, as well directory sales isamong one of their marketing strategies.

On other hand Primark is not spending much on marketing, advertisement or promotional activities which is a bigsetback in their management. From competitors analysis it is clear that even though there are potential threatsand certain weaknesses for Primark, but strengths and opportunities can outperform weaknesses and threats.Competitive rivalry can be effectively overcome through deployment of cross-selling, pricing and co-branding andmarketing strategies. This approach to sales will not only increase stability of business but also leveragecompetitive advantage in target market identified. Sales trends of Primark and its closest rival is Marks andSpence is clearly show difference in sales growth of both companies over past three years.

5.0 Impact of Marketing Strategies on FinancialStatisticsFinancial analysis of Primark shows effectiveness of their marketingstrategies in a more practical way. They have been operating forseveral years and they are currently buying out Littlewoods stores,several of the best of which will be turned into Primark's and restsold for a tidy sum to other retailers. It's a good move that shouldsee the chain expand its empire to reach more customers acrossUK. Primark has aggressive expansion plans in UK and on the Continent. It plans to open in Holland andGermany next year, as well as launching in Portugal. The Independent has learned that it also wants to open atleast one more store on Oxford Street because its existing flagship is overtrading. Primark flagship takes anaverage of more than 2.5 million in sales a week. Rival Marks & Spencer has two stores on Oxford Street, whileNext has three.

Figure below shows net capital investment and how much of that is spent only on acquisition of new stores andrenovating them over past 3 years. It indicates that in year 2007 Primark has 5.4 million sq. ft. selling space thatwas enhanced to 5.9 million sq. ft. and by end of 2010 it was 6.5 million sq. ft. with a total number of 204 stores.

Financial statistics of Primark present an excellent report of how revenue and operating profits soared in recentyears unlike other high street retailers. Figures reveal a constant increase in revenue and operating profit overlast three years. These figures show growth due to marketing strategies and increase in selling space as well.

But for more analysts, increase in profit with increase in selling space is a deception of growth and they are moreinterested in like for like sales which do not account for increase in sales and profits due to increase in sellingspace by acquisition and opening more stores. Figure gives a more precise picture of how like for like sales grewover past three years and especially in year 2010 profitability has grown up to new levels despite much weakersterling/dollar exchange rate compared to last two years and has benefited from consistently strong volumegrowth.

Year 2010 was exceptional for Primark as its revenue increased by 18% with like-for-like sales growth of 6% andbenefit of continued investment in new stores. In comparison with other high street retailers profit was 35% aheadand operating margin improved substantially from 10.9% to 12.5%. This improvement was mainly due to sterling'srelative strength against US dollar in first half which benefited cost of goods sourced in dollars and sold in secondhalf.

However, in financial year of 2011, due to higher cotton prices and freight costs and increases in VAT, alreadyimplemented in Spain and in UK from January 2011, it is expected that growth will be eroded. Primark can stillcontinue to lead market by maintaining price leadership strategy and by target marketing strategy in long run.

6.0 Findings & Final ConclusionFor Primark to continue delivering value across range of its products, it must develop strong marketing as well ashas to enter online shopping portfolio. They have to compete with rise of online retailers. Although only 4% of

clothing sales are currently made online, this looks set to grow. With many value retailers not yet having capabilityto trade online, they may be left behind as this channel becomes increasingly important to fashion industry. Thevalue sector has had a huge impact on fashion market over past few years and rest of high street has been forcedto slash prices in order to compete. If this influence diminishes, fashion market could become a very differentplace to trade in.

The key challenge faced by Primark is critics who unveiled that Primark is involved in unethical trading using childlabour. Other threats are rival companies, customer's changing requirement which has become potentialimplications in implementation and success of new marketing strategies and hinder its sustainable growth itssurvival in today's competitive world. Primark should focus on brand stretch and family branding strategies to gaincompetitive edge over competitors.

Primark is offering wide range of products for its valuable customers. It has a very extensive portfolio of brandsand products to meet changing market needs and demands. But business environment is changing way Primarkstands in today's world and it is facing many challenges. With levels of competition ever increasing, even mosttraditionally confident of organizations like Primark are feeling pressures to stay in the game. As technology isemerging, retail business is taking new shape changing at great speed with increase in number of qualitycompetitor launching better services. Hence, existing clothing retailers like Primark have to divert from theirtraditional path in response to increasing competition. Another major reason for this transformation is that buyersare developing their taste very rapidly and are becoming more demanding with passage of time. Changes ininternal & external environment factors like competitive market, globalization factors, demographical and socialforces, ethical forces, technological changes, economical factors and political issues are some other majorreasons for various kinds of strategic changes, structural changes, cultural changes, system changes, processchanges within organisations.

7.0 RecommendationsI conclude following measures for Primark to face challenge indicating which segment of strategy has to follow toachieve these recommendations, concentrate on growth of user-generated content and an emphasis on newdistribution channels such as;

Redesigning and re launch website with high tech online shopping portal (Market and ProductDevelopment Strategy)Expanding market, explore new markets overseas.(Market Development strategy)Brand stretch (Product Development Strategy)Finding new talent of designer (Product Development Strategy)Offer clothing for a mature market 35+ (Market Penetration Strategy)Diversify (Introduce new product line)Introduce range of accessories (Market Penetration Strategy)Expand current product lines(Market Penetration Strategy)Introduce new product lines (Diversification, Market Development)Introduce food Hall or Cafe'(Diversification)Introduce loyalty card or store card(Diversification, Market Development)Add fragrance section and pharmacies (Diversification)Introduce section for electronics (Diversification)Enter in emerging markets like telecom (Diversification)Open new outlets (Market Development)More marketing can be done

New market share expanding their range of clothes (Market Penetration)

New products expanding beyond clothing to include more shoes, handbags etc(Market Penetration)Start own production factories in countries like china and India to drop cost of production and more lessprices (Diversification )Introduce customized tailoring and on demand preparation of dresses (Product Development Strategy)

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Marketing strategies at primark plc1.0 Introduction1.1 Reason for choosing the topic1.2 Reason for choosing Retail Industry and Primark2.0 Primark: A Brief Overview Of The Business3.0 Marketing Strategy Of Primark3.1 Target Marketing Approach3.1.1 Segmentation3.1.2 Targeting3.1.3 Positioning3.2 Product Marketing Approach4.2.1 Product Portfolio Analysis4.3 Brand Strategy4.0 Strategic Marketing Environment Analysis4.1 Porter's Five Forces Analysis4.2 Competitor Analysis5.0 Impact of Marketing Strategies on Financial Statistics6.0 Findings & Final Conclusion7.0 RecommendationsMore from UK Essays