Strategic Marketing Environment Analysis

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U.K. retail market outlets have seen year on year growth of 5%. The UK is undergoing a sustained period of growth – the level of consumer confidence is holding up, although it is fragile and could change rapidly slower earnings growth, speculation about changes in interest rates and job insecurity could affect this rate of growth. In June 2005 the retail industry employed 2.9 million people. This equates to one in nine, or 11%, of the total UK workforce. UK retail sales were approximately �260 billion in 2005. The volume of retail sales rose by 0.4 per cent between April and May 2007, buoyed by an improved performance across most sectors, particularly household goods. The only declines were seen in textile, clothing and footwear stores.

Large retailers are likely to remain the dominant players while trying to increase their market share through mergers and acquisitions. Premium operators such as John Lewis, Waitrose and Marks & Spencer, with their focus on high-value, high-quality, diversified product range and customer service, will also continue their strong trading performance. Internet shopping will not, however, spell the end for shops.

People will continue to see shopping in stores as an enjoyable social event. In the recent economic environment low cost fashion retailers have shown greater strength while the conventional market including M & S, Debenhams, Next and Arcadia group have recently reported losses. Recent revolution in Primark’s debut in oxford street has taken the retail industry by surprise while the Primark is showing good profits and have become a trendy fashion clothing store among 13-35. Primark has won major prizes at the High Street fashion awards this autumn, and its low-cost, high-fashion clothing has even appeared in the fashion bible Vogue.(Gelb, 2005) One of the chain’s biggest successes this year has been its military jacket.

Primark Stores Limited is an Irish clothing retailer. Its stores are located in various regions like United Kingdom, Ireland, and Spain. Within this area of responsibility, Primark stores outnumbered other clothing retailer business, with one hundred sixty one stores overall distributed in three major regions: one hundred twenty-five in the United Kingdom. The company positions itself as marketing fashionable at cutthroat prices. Primark is known for selling clothes at the budget end of the market. Its success is based on sourcing supply, making clothes with simple designs and fabrics and targets young, fashion-conscious individuals ages 35 below, offering them simple yet high quality clothes and apparels. The relevance of global trends and consumers’ demands on lifestyle made Primark Store Limited reinvent its business scheme and management structure.

This Marketing plan will talk about vision, mission and values at Primark. It will also focus on areas such as the strategic marketing environment highlighting on SWOT and PEST analysis. It will show the segmentation, target and position strategy of Primark. It gives information about marketing strategies Primark. Primark marketing mix with a special branding strategy. Recent and future changes in the marketing environment in Primark will be looked into.

Environment is what gives organisation their means of survival. Business environment consists of two layers macro and micro environment. Macro-environment is the highest -level layer.

Figure 1(The marketing environment, 2008)

The most general ‘layer’ of the environment is often referred to as the macro-environment. The consists of board environmental factors that impact to a greater or lesser extent on almost all organisation. It is important to build up an understanding of how changes in the macro-environment are likely to impact on individual establishments. A starting point can be provided by the PEST framework which can be used to indentify how the future trends in the might impinge on organisations. This helps managers consider how strategies might need to change depending on the different ways in which the business environment might change. Within this board general environment the next ‘layer’ is called an industry or a sector.

The five forces framework and the concept of cycle of competition can be useful in understanding how the competitive dynamics within and around an industry are changing. The most immediate layer of the environment consists of competitors and markets. The concept of strategic groups can help with the identification of both direct and indirect competitors. Similarly customers’ expectations are not all the same. (Johnson, Scholes, Whittington, 2005)

PEST is outside factor of conduct the marketing environment, he acronym PEST (or sometimes rearranged as “SETP”) is used to describe a frame work for the analysis these macro environment factors.

Political factors include government regulation and legal issues and define both formal and informal rules under which the firm must operate. Union government policy is beneficial for Primark. In UK Primark pay more taxes to government so using the benefits which are provided by other countries like India, Africa and etc.

Primark sell things Like to like to cut prices of the clothing chain. Associated British Foods (ABF), the chain’s parent company, said that the tougher economic climate had put the brakes on the business as shoppers juggle the rising cost of food, petrol and higher energy bills(Hawkers and Jameson, 2008). The sharp fall in sales during June pushed the value of the pound lower as expectations rose that the next move in UK interest rates would be down. (BBC News, 2008). Primark provides cheaper things to customer so it has major market retailer.

The social and cultural influences on business different from country to country. People are altering their life style very quickly. They consent the change without any hesitation. Primark render very cheaper and latest fashionable cloths to customer so it attracts the more customers. But latest issue of Primark child labour is very shameful. It has created very bad impression on consumer.


Primark make new trendy clothes using new technology. As an immediate step, this meant that Primark had to devise a method of translating stock and sales information from the One Up stores into something that would be meaningful to them. Primark decided to withdraw its One Up’s technology and replace it with Primark’s front and back end packages and install new software and hardware. This technology changeover had to be masterminded at some speed and was in fact, completed for the sixteen stores in about four months. To complicate the process, all stores had to have the new systems introduced during non-peak trading periods because of the lead-time needed to train staff and stabilise the new systems. (Business, 2000)

SWOT and PEST analysis of the environment of Primark shows the position of Primark in retail market. It gives the idea of their relation with customer, government and other competitor markets retailers. SWOT and PEST shows Primark future and recent changes in market to give better service to their customer.

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