Marketing at Primark Case Study

Dublinbased Primark, owned by Associated British Foods, sells more clothing in the UK than any other retailer. Primarks International specialty is fast fashion for women, men, children and the home. Its products are priced superlow to sell quickly, allowing the 300 store chain to restock with ever newer, trendier items week after week. Primark has been expanding across Europe and across the Atlantic, entering new markets where price conscious consumers are eager for style bargains. When the company opens a new store, shoppers swarm in, buy by the sacksful, spread the word to friends and return to shop often.

Primarks marketing strategy includes a strategy for communicating via social media, but not via traditional advertising, because the retailer needs to keep costs down so it can keep prices low. It also maintains a website with informative content about its products, commitment to sustainability and ethical principles. It engages customers by inviting them to upload photos of themselves wearing Primark fashions to the firms Primania pages and to Instagram and Snapchat, tagging them as #Primania. However, the firms marketing strategy does not include ecommerce. For now, its relying solely on instore retailing, supported by social media marketing, to achieve longterm growth and profitability goals.

Without a marketing strategy, Primark would have no clear course of action for engaging customers, building brand image and loyalty, growing the business and increasing profit.

Competing against fatfashion powerhouse retailers like H&M as well as more traditional clothing retailers like Old Navy, Primark uses its marketing strategy to apply its unique strengths and advantages in serving customers. The companys stores in the UK, Ireland, Belgium, Italy, Austria, France, Span, the Netherlands, Germany and the US stock clothing for the entire family, plus trendy accessories for the home. Primarks brand promise is reflected in its ability to offer an everchanging range of new styles at ultralow prices. It buys in huge volume for economies of scale, avoids expensive advertising, aims for speedy inventory turnover and accepts profit margins as low as 11 per cent, all to keep prices at rock bottom. Unlike many marketers, Primark often includes price details in its social media posts and its website, to show just how inexpensive its products really are. Even considering the financial and economic consequences of the UKs exit from the European Union, Primarks lowprice positioning gives it a competitive advantage as it expands beyond its home market.

Primarks distribution strategy focuses on physical stores and warehouses. Given the very low prices and slim profit margins, the company has decided against the expenses of developing an online retail operation. In fact, the cost of shipping an item to a customer might very well exceed the items price, making ecommerce uneconomical. Plus, when crowds gather to scoop up bargains at a new store opening, the buzz created in traditional and social media multiplies the Primania effect and attracts more shoppers to local stores.

As a result, Primarks marketing strategy must include a robust behind the scenes system for managing storebystore inventory. In the past three years, it has doubled its warehouse capacity so it can efficiently receive, sort and distribute products throughout its fastgrowing retail empire. Inventory management is also important because Primark wants to avoid being over stocked with products that sell slowly or go out of style quickly. Some fashions sells better in certain markets and are less popular in others, so Primark has to understand local tastes and stock products that will satisfy each markets customers. Although Primarks business depends on fast fashion, it is also concerned about sustainability and social responsibility. The company participates in initiatives to protect the environment, support recycling, promote worker safety and help the communities where it operates.

Questions:

1. Introduction: A brief introduction to the case study.