Professional Documents
Culture Documents
EXECUTIVE SUMMARY
Pri*ar! is currently the U#+s second (iggest clothing retailer, Esta(lished in-./. in 0reland1 the co*$any has grown enor*ously in si e and strength since its conce$tion, Since the late -..2s1 the co*$any has greatly e)$anded and now has 342 stores across Euro$e, Pri*ar! offers a great variety of $roducts including *en+s1 wo*en+s and children+ s wear as well as ho*e $roducts, Pri*ar!+s (usiness *odel to sell good 5uality $roducts at a low $rice has $roven highly successful in Euro$e, 0n this re$ort1 we are $ro$osing a 6-(illion dollar invest*ent to e)$and Pri*ar!+s retail o$erations into the French *ar!et, This e)$ansion
$lanning involves esta(lishing retail stores in !ey location ca$ital of France1 Paris1 (uilding distri(ution centers1 introducing online retail $latfor*s and e)$anding Pri*ar!+s already e)isting $roduction ca$a(ilities,
First1 de$art*ent stores need to se$arate the*selves fro* their co*$etition> they need to (rea! away fro* the sa*eness that has $lagued retailing for years, Stores *ust now touch on individual tastes to increase custo*er loyalty rather than focusing on *ass a$$eal, The co*$any is confident enough a(out its *erchandise and a(out its chea$ ,i,e, the afforda(le $rices which $roclai*s the custo*ers to (e loyal to the (rand i,e, it attracts and convinces the *ore a*ount of consu*ers and retains the*
=onsidering today+s scenario1 the gra$h a(ove shows the total and nu*(er of stores around the glo(e,
POPULA R BRAND
High fashion wo*enswear1 with a focus on !ey fashion trends1 classic casuals1 accessories and footwear A well8 esta(lished deni* (rand1 enco*$assin g all the latest fits and leg sha$es A (rand to cover Pri*ar!+s e)tensive range of lingerie1 fro* underwear *ulti$ac!s to individual ite*s and nightwear, The Secret Possession =ollection range covers $retty1 detailed and fashiona(le co8ordinates A s$ort (rand for *en and wo*en1 with the e*$hasis on technical functionality,
SECTOR
7ost of the clothes are (ought fro* sa*e factories as other fashion retailers and $eo$le $roducing the* are $aid e)actly the sa*e whatever la(el and whatever $rice in sho$, =o*$any<s success is (ased on sourcing su$$ly chea$ly1 they (uy directly fro* factories without involving any agents1 *a!ing clothes with si*$le designs and fa(rics1 only *a!ing the* in the *ost $o$ular si es1 (uying stoc! in huge (ul!s and varieties and targeting young1 fashion8conscious (uyers under @4<s1 offering the* high 5uality1 fashion (asics at value for *oney $rices, They are a(le to offer such good value and good 5uality (ecause of low *ar!8 u$s and (ig volu*es, Their overhead costs are e)tre*ely low as they do not run e)$ensive advertising ca*$aigns> instead they have wonderful strategic *ar!eting a$$roach that stands the* out,
1.2.1.
BUSINESS LINES
CLOTHES (CHILDRENS, MENS AND
The clothes in Pri*ar! are fashiona(le and again trendy (ut *ost $eo$le li!e to avoid sho$$ing daily there and Aust (uy (asic ite*s of clothing in case of an e*ergency, 0f you can dig dee$ enough1 you can find so*ething of good 5uality and 5uantity which is rare, "eni* in Pri*ar! is not the (est deni* (ut with suita(le si es,
JEWELRY
(CHILDREN S AND ADULTS)
Pri*ar! include children+s *ini Aewelry which is of not very good 5uality and of course the <<adults<< Aewelry which *ost $eo$le go for includes watches1 the Aewelry range are little $ic!s of what =laire<s Accessories have (ut in s*aller 5uantities, ACCESSORIES
(BAGS, PURSES, BELTS)
Accessories are again afforda(le1 as for the (ags and $urses which are great too (ut 5uality doesn<t co*e in here as these are the sa*e 5uality as other stores, FOOTWEAR
(RATHER WOMENS)
F##$%ear2
&"
Apparel !"
A''e((#r)e(
2&"
Je%elr*1
+"
2.SITUATION ANALYSIS
Pri*ar! o$ened its first store in -./. and now is in a do*inating $osition in the retail clothing industry, The co*$any is coo$erating with a variety of *anufacturers fro* around the world to $rovide consu*ers with their needs, Pri*ar! is (eco*ing increasingly glo(ali ed> *any large retailers now use su$$liers fro* all over the world, Fashion ite*s are often $roduced in countries li!e =hina and 0ndia where *aterials and la(or costs are lower,
Even when a custo*er enters a Pri*ar!1 *any different ty$es of $roducts are availa(le, They $rovide Aewelry1 accessories1 (ags1 footwear, =o*$any e*erged as *aAor force in the 9ritish retail industry1 contri(uting through its low $rice value and great 5uality fashion $roducts for everyone in society as a whole and leaves re*ar!a(le i*$act on social1 environ*ental and ethical (ehavior of $eo$le, 0t was first esta(lished in -./. in "u(lin1 0reland and initially o$erated under the na*e Penneys, The co*$any still continues to o$erate under the (rand na*e Penneys in 0reland, Through *any years Pri*ar! ac5uired stores around the Euro$e, 9y the year -.B@1 Pri*ar! had o$ened four out8of8town stores in ?reat 9ritain, 0n -.CD it *ade its first *aAor ac5uisition of five Woolworth stores in %orthern 0reland, The e)$ansion led to o(tain strong co*$etitive $osition on the *ar!et Pri*ar! uses hi$1 conte*$orary design of all $ro*otional1 we(8related1 and other *aterial to !ee$ it a$$ealing to young generations,
Financial analysis of Pri*ar! shows effectiveness of their *ar!eting strategies in a *ore $ractical way, They have (een o$erating for several years and they are currently entering French *ar!et, 0t<s a good *ove that should see the chain e)$and its e*$ire to reach *ore custo*ers across EU, Pri*ar! has aggressive e)$ansion $lans on France, Pri*ar! is in a good financial situation over the $ast -2 years noted a growth in sales, However1 we saw one last year Aust to *aintain sales, This is due to the crisis1 for it also to increase sales Pri*ar! was forced to resign fro* the *argins to !ee$ $rices attractive, This translated into a dro$ in inco*e, However1 Pri*ar! still *a!ing $rofits1 and now to raise the* *uch needs to find new *ar!ets, 0t+s difficult to find any Euro$ean retailer that has the sa*e clout and i*$act as Pri*ar!,
YEARS 2&&452&12
WOMEN2S
CLOTHIN3
MEN2S
CLOTHIN3
CHILDREN2S
CLOTHIN3
-9.4%
-13.0%
-1 .4%
These good results de*onstrate the resilience of the =o*$any when faced with a nu*(er of challenges, The U# clothing *ar!et can (e divided into s*aller *ar!ets, One of these is the Hvalue clothing+ *ar!et, This is a highly co*$etitive *ar!et where custo*ers e)$ect low $rices (ut de*and u$8to8date fashions, The si e of the Hvalue clothing H*ar!et has (een growing and1 in 322B1 accounted for nearly 34I of U# clothing *ar!et revenues, 'ondon is the *ost attractive location for international retailers1 (ased on the $resence of the to$ 342 international retailers in the !ey Euro$ean retail *ar!ets, The U#+s ca$ital is differentiated (y its retail *ar!et si e and *aturity1 as well as the high degree of *ar!et trans$arency1 which together have resulted in a long history of success for international retailers, The trend towards increased $enetration of international (rands across Euro$e will accelerate over the co*ing years1 as e)$ansion strategies for *any retailers focus on to$ tier cities, Retailers with a strong and translata(le $ro$osition should e)$lore international e)$ansion1 whilst a$$reciating and *itigating the ris!s, For now1 however1 'ondon re*ains nu*(er one1 Paris,
0n $ast three years PR07AR# has got lot of rights which are (een reserved, 0ts strongest co*$etitors are T# 7AJ1 7AR#S % SPE%SOR1 ?EOR?E at AS"A, Although all three are in the <value< seg*ent and therefore have si*ilar *ar!et $ositioning1 the other two have different strategies to that of Pri*ar!, T# 7a)) sells heavily8discounted $restige (rands and ?eorge at Asda has created its own $rivate8la(el (rand *ostly at out8of town stores, Pri*ar! is a high street retailer which has a fa*ily of (rands and focuses *uch *ore on (uying1 logistics and su$$ly chain *anage*ent rather than (randing, 0n order to sustain in the *ar!et Pri*ar! should follow cost leadershi$ strategy ie it should not sell the $roducts at a lower $rice rather lowest $rice than of the co*$etitors so as to raise its $rofit *argin, Strongest competitors: 8 T# *a) 8 ?eorge at Asda 8 7ar!s n s$ensor 8 %EJT Also 9h+s and 7A'TA% are s*all co*$etitors of Pri*ar! (ut we will not tal! a(out the* in this $art, Presence of Primark an its competitors in E!rope: %U79ER OF SHOPS :nove*(er 32-3; T# 7a)) ?eorge at 7ar!s L Asda s$encer 3B4 @D/ B22 3B4 @2 32 ) ) C @22 -32 ) ) ) ) ) ) ) ) ) ) ) ) )
Pri*ar! -4. @C @@ C / @ 3
%EJT DB2 @2 ) ) ) ) )
TK ma$$: Euro$ean =ountries: United #ingdo*:3B4;1 ?er*any:@22;1 0reland:3B4;1 Poland:-C;, Products: All !ind of (rand clothes1 shoes1 accessory for *en1 wo*en and !ids, Target: =usto*er who want to (uy fashion at a chea$ $rice1 so (asically its target custo*ers were consu*ers in the age grou$ of -C8@2, Positioning: H9ig la(els s*all $rices< and <love T,#, 7a))+, T,# 7a)) ai*s at (uilding custo*er satisfaction and custo*ers are e*$owered to (uy all sorts of (rands and la(els1 various 5ualities li!e (ig and s*all1 a range of colors1 styles and si es,
George at As a: Euro$ean countries: United #ingdo* :@D/;1 %u*(er of e*$loyees: -D@222 :for all asda grou$s;, Products: All !ind of (rand clothes1 shoes1 accessory for *en1 wo*en1 !ids and (a(ies, Target: This is *ar!eted as 5uality fashion clothing at afforda(le $rices1 so (asically its target custo*ers were consu*ers in the age grou$ of -C8@2 even if they sold !ids and (a(ies clothes, Positioning: They want to (e (rand of high 5uality1 Asda has created its own $rivate and well8!nown (rand of 5uality (ut very low8cost, Marks % spencer: Euro$ean countries: United #ingdo* :B22;1 France :;1 Poland1 = ech Re$u(lic1 Tur!ey1 Russia1 U!raine1 S$ain1 0relandM, %u*(er of e*$loyees: C-222, Products: =lothes1 shoes and accessories for *en1 wo*en1 children, S*all accessory for the houseM Target: =orres$onds to custo*er who wants to (uy fashiona(le clothes at a chea$ $rice1 so (asically its target custo*ers were consu*ers in the age grou$ of -C8@2,
Positioning: Providing lots of choice of high 5uality (rands, 'ots of advertising in TF and news$a$ers with cele(rities to get an i*age of lu)ury and high 5uality (ut still with chea$er $rice as they can,
Ne$t: Euro$ean countries: United #ingdo*1 0reland1 ?reece1 ?er*any1 = ech Re$u(lic1 'ithuania1 Ro*aniaM %u*(er of e*$loyees: 4.222 Products: =lothes for *en wo*en and children1 footwear and ho*e $roducts1 electrical, Target: 7ain target are *en and wo*en (etween 34 to D2 and secondary target is fa*ily with (a(ies and !ids clothing, Positioning: Use a lot of news$a$er advertising and also TF since 322B, They show an i*age of 5uality1 fashion1 fa*ily and lu)ury too,
Pri*ar! Men &acket -24N Men Tro!ser 3.N Men Tee' shirt (omen &acket C2N (omen tro!ser @4N (omen )!mper @2N
T# 7a))
%EJT
-3@N
-3@N
@-N
-.1BN
@4N
@BN
-B,4N
3214N
.N
-C14N
34N
.CN
D@N
-CDN
C/N
D@N
-BN
/2N
D2N
@2N
-BN
@BN
@2N
Ki S*eatshirt Ki )ean
-4N
-BN
.N
32N
-BN
-@N
-BN
-2N
32N
-/N
Key Trends:
1. C!"#!$ %&!' '&(!)*" +,()*!*-. =asual wear is still on the rise, The rise in casual wear has (een one of the !ey trends in 322., 0t has (een ongoing for the last -2 years1 so the continuing *ove*ent should (e no sur$rise in 322B and 322C, %evertheless1 this is a trend of great i*$ortance as it is (oth a sy*$to* and a cause of *any of the *ost significant changes (eing seen in the clothing and footwear sectors, The origins of the trend lie $rinci$ally in generational changes and de*ogra$hic changes, For*alwear is no longer so $o$ular1 as attitudes towards wor!ing and attitudes in the wor!$lace have changed significantly1 even in the last -2 years, With 9ritain+s growth in the service industry1 *any *ore office8(ased Ao(s no longer re5uire their e*$loyees to wear suits to wor!, At the sa*e ti*e1 there has (een a $arallel *ove*ent away fro* for*ality even in entertaining1 with *any fewer $eo$le choosing to dress u$ to go out than was $reviously the case, The co*$arison on the (asis of sales analysis of different sector can (e done: Wo*en+s outwear 7en+s outwear
The (est $erfor*ing su(sector in clothing is accessories1 u$ (y -,4I, 0t is not unco**on for s*aller1 chea$er goods to thrive in ti*es of une*$loy*ent1 as consu*ers still enAoy (uying goods (ut are doing so within a *uch tighter (udget, Accessories rely on i*$ulse (uying in *any cases1 with stores $ositioning the* nearer to the counter, 3. L)/&"-0$&1 C#"-,(&'" 2#'.3!")*4 5&3!6),'
7ove towards functionality and afforda(ility Another of the !ey trends is the *ove*ent towards functional clothing and footwear and away fro* 5uality (rands and clothing for fashion1 design or style reasons, This is $rinci$ally a function of the declining credit $ositions of *ost consu*ers, After *any years in which clothing has (eco*e the defining lifestyle sector1 it a$$ears that consu*ers now confronted with larger and *ore $ressing issues are reverting to the $rudent $osition of (uying clothes when needed, E5ually1 there have (een su(stantial gains for chea$ retailers1 as this attitude feeds through into the distri(ution channel, "o*inance of casual wear as well as the rise of $rivate la(els are so*e other !ey trends in clothing and footwear in U#, 9ac! to (asics 0n ter*s of $roducts (eing (ought and *anufactured1 the e*$hasis has shifted towards *ainstrea* $roducts1 with ite*s such as shirts1 (louses and to$s registering a wea!er contraction than suits1 trousers1 and other high 5uality $roducts that are less a$$ealing due to their higher $rice, 0n !ee$ing with financial $rudence1 then1 there has (een a decline also in those shoes that are considered stylish or lu)ury, =onsu*ers are (uying shoes that they need rather than shoes that they want, %ot only is this chea$er1 (ut shoes that are needed have a longer life and longer re$lace*ent cycles, 0n turn1 this da*ages the footwear sector dou(ly as sales are fewer as well as chea$er, =usto*ers are loo!ing not only for the (est $rice (ut for trendy clothes, -, They don+t really $ri e so *uch the 5uality (ecause the nu*(er of clothes $er $erson is (igger1 so the uses decrease, Higher rotation of dressing, 3, Koungsters directly $urchase in the sho$, They don+t need their $arents, @, Sho$$ing e)$erience i*$ortance is higher, There are several Face(oo! grou$s that $ro*ote it, D, %ew technologies1 such as social networ!s :including *o(ile versions;1 are influencing the way $eo$le *a!e their $urchasing decisions,
Target *ar!et loses $o$ulation1 and they s$end less in clothing, "e*ogra$hy changes to (e e)$ected in the ne)t two years:
P Po$ulation increase will slow over the ne)t two years1 *ainly (y the slowing in i**igration :D421222 instead of the B2212228.221222 during the years 322D8322C; However1 this varia(le :i**igration in the ne)t few years; is considered as hard to $redict1 and volatile ,P S$ecifically1 for the target *ar!ets of -C8@4 and -D83D1 $o$ulation will decrease significantly in the short ter*1 as the E(a(y (oo*G :currently in the 3C8@4 range; Ee)itsG the target *ar!et1 and the E(a(y (ustG :currently in the .8-D; enters it,
This is an e)cellent achieve*ent es$ecially when the current recession+s adverse effect on other retail chains is ta!en into account, Pri*ar!+s financial growth shows that its trading $hiloso$hy of selling 5uality $roducts at low $rices is i**une to econo*ic insta(ility1 a$$eals to s$ending conscious consu*ers and will serve as a great advantage when e)$anding into the France *ar!et,
The SWOT analysis of Pri*ar! atte*$ts to inter$ret the infor*ation they have with res$ects to its environ*ent that affects the a(ility of the (usiness to *eet its strategic goals :'eigh1 n,d;, The e)ternal analysis of Pri*ar! includes the o$$ortunities and threats encountered (y the organi ation and the internal analysis covers strength1 wea!ness,
Strengths
9y volu*e Pri*ar! is now the second largest clothing retailer The fashion sche*e of Pri*ar! is solely (ased on the $eo$le less than @4 years 0t offers its $roducts at a highly co*$etitive1 discounted $rices 7ore s$ace channel at *ain locations Using cost leadershi$ strategy in U# *ar!et An esta(lished (rand na*e Has o$ened u$ *any franchise in al*ost every cities and towns Having *ore than -D $rivate la(els such as Active1 Pri*ar! essentials "iversified $roduct range ?ood contacts with su$$liers
?ood su$$ly chain *anage*ent ca$a(ilities
(eaknesses
A very few custo*ers services 9ad association connected with 5uality of the $roducts Wea! organi ation structure Untidy at*os$here in the sho$s =usto*ers fail to trust the 5uality %o clear direction
Unethical activities that ran!s criteria such
as wor!ers< rights Resources that are not well watched to the industry+s !ey success factor
High over all unit cost relative to !ey
co*$etitors
0nternal o$erating $ro(le*s or o(solete
facilities E)cessive reliance on outsourcing for *anufacturing and su$$ly chain $rocesses *a!e it de$endent on su$$liers and vendors, Only retail sho$s are confined in only develo$ed countries 'ac! of focusing on *ini*al advertise*ents and low sales (udget
+pport!nit"
%ew organi ation structure which is designed to serve its custo*ers (etter Widening *ar!et area glo(ally Ta!e advantage of *ar!et o$$ortunities and reduce costs, ?et *ore $rofits "iscount ta) for new co*$anies Planning to significantly increase its count of franchise "ay (y day the de*and for latest design with
Threats
=hanging (usiness environ*ent 0ncreasing la(or =hanging custo*er+s needs and wants 'aw differences The co*$etitors selling the sa*e $roducts act as a threat for the co*$any =o*$le) and volatile (usiness environ*ent 0ncrease of =o*$etition 0ncrease raw *aterials
low $rice are increasing Huge *ar!eting o$$ortunities around the glo(e Use chea$ and s!illed la(or for the su$$lying of $roduct
=urrently1 it is loo!ing li!e Pri*ar! has differentiated itself fro* convenience stores, Although so*e (rands are still ahead1 Pri*ar! had esta(lished the* as lower $rice, The future loo!s li!e it will (e a (attle (etween retail sho$s, Pri*ar! has (een a(le to effectively *ar!et itself as the $re*iere (rand1 and as long as they !ee$ the interests of the target in *ind1 they can re*ain Aust that, One of the reasons *any custo*ers will $urchase their clothes at other $laces is (ecause of the advertising they ran to show it+s not Aust a chea$ clothes1 (ut (etter design *ore fashiona(le,
9rand $ositioning is evenly distri(uted when analy ed fro* the $rices vs design $oint of view,
9rand Positioning Prices Rara 9rands in this *ar!et =ortefiel are distri(uted evenly1 (alancing $rices and design to focus in different niches, HL7 =LA Pri*ar! s$ace is not 9ersh!a "ecathlon overcrowded (ut "esign there are co*$etitors in the surrounding *ar!ets =arrefour 'efties,
the Pri*ar!+s (ag that $eo$le will carry in the street1 the $lace*ent of it stores and the $eo$le who wor! in it, 7ethods of co**unications: "T #$%"T&$' Pri*ar! $rovides custo*ers with hi8s$eed internet access1 so custo*ers can continue to connect online through there s*art $hones while they+re doing sho$$ing, Pri*ar! has chosen an u$scale1 trendy *all that receives a lot of wal! through traffic, This generates large a*ounts of visi(ility for Pri*ar!, $'#&'( "efined the EOnline word of 7outh+ *ar!eting techni5ue see!s to e)$loits e)isting social networ!s to $roduce e)$onential increases in (rand awareness1 the Firal *ar!eting will (e one of the tool for Pri*ar! in France, 0ndeed while Pri*ar! is not setting u$ in France1 the social networ! face(oo! already gets *ore than 32 grou$s as!ing for Pri*ar!, 7atching its young targets1 often heavy users of internet1 enAoying fro* the e)$ansion of its social networ!1 and corres$onding to its strategy of word of *outh to attract the *a)i*u* of custo*ers1 0nternet through the internet viral see*s to (e a real $otential way of co**unication if France as well as for the co*$any as it is very chea$,
(conomy
With an increasing une*$loy*ent rate and a decreasing consu*$tion the last years1 it see*s that the crisis could re$resent an ally for Pri*ar!, While an 0FOP study a(out the $urchasing $ower shows that D.I that the under @/years old thin!s that their $urchasing $ower has strongly decreased the consu*$tion ha(its of French goes forward the last o$$ortunity to (uy chea$er, As a study of clothing in France e)$lains1 the success of the sales $eriods shows that the sales dro$ *ainly due to $urchase $ower constraints (ut not as a faction reAection, With it strategy T sales $riceU all the year round1 the change in French consu*er ha(its could re$resent an o$$ortunity, However1 the consu*er
e)$enditure on clothing is a lot *ore higher in U# than in France with an e)$enditure for 322. of @BC24*nN decreasing in co*$arison with 322C in France against D2DB3*nQ in U# : V D/4D3N; increasing in co*$arison with 322C,While e)$enditure in U# continue to growth when it decrease in France 1 it could *a!e Pri*ar! thin! that the clothing consu*$tion ha(its (etween U# and France are different and then could re$resent a threat to Pri*ar! i*$le*entation, Finally for the consu*$tion1 according to the clothing in France re$ort 322.1 E (y 32-@1 clothing sales are forecasted to reach 3/1.C2N*illions1 a 31- I rise in constant value co*$ared to 322CG which let ho$e for Pri*ar! a (right future, 0n s$ite of the fact that Pri*ar! is an 0rish co*$any1 fro* a *ar!et research and data $oint of view it is *ore relevant to analyses the accessi(ility of the French *ar!et through the co*$arison with the English i*$le*entation which is *ore i*$ortant than the 0rish one :-DD sho$s in England instead of @C in 0reland,, However1 fro* a financial side1 it is *ore relevant to deal with the 0rish head5uarter co*$any where the *oney is going (ecause 0reland is in Euro one, 9y dealing with 0reland1 Pri*ar! esca$e the ris! of change rates 0t is said that EU countries suffered its *ost terri(le recession in 322. in over /2 years, 0t is esti*ated that e)$enditure of consu*er is decrease (y D,D I in 322., 0ncreasing the $rices of fuel and food are co*$ressing the dis$osa(le inco*e of $eo$le, The une*$loy*ent es$ecially of youth e*$loy*ent of age fro* -C to 3D years old has risen a(out -B,3 I 0s 322. co*$ared to -3,4 $ercent in the sa*e $eriod of 322C, E)$orters gained a co*$etitive edge as a result of devaluation of U# sterling in 322C8322., 0n ti*e &uly 322C and &anuary the $ound loss -. $ercent of its own value against the Euro, Regarding the e)$ort of goods the econo*y of U# is least de$endent a*ongst others in Euro$e indicating that they are less vulnera(le to the ris! of shoc!s fro* decreasing international de*ands,
)ocial
0n France1 fashions re*ind an i*$ortant $art of the culture, Then1 according to a study1 French $eo$le are still attached to the (rand and the lu)ury in the fashion sector and would $refer after use the sales $eriod :D-I; 1 (uy chea$est (rand :@@I;, Then1 even if that trend does not auto*atically re$resent Pri*ar! target *ar!et :under @4; which can not necessarily afford lu)ury (rand1 French culture in the fashion sector could re$resent a threat for Pri*ar!, France has to face to the ageing of it $o$ulation, Until 32421 -W@ of the $o$ulation will (e ageing *ore than /2 years old, EThe <focus< $art of Pri*ar!<s strategy is the s$ecific custo*er seg*ent it focusesG, With a clear $ositioning1 Pri*ar! answer to a s$ecial target *ar!et needs, 0t ageing of $o$ulation re$resent an indirect threat for Pir*ar! (ecause it not concern it target (ut it could (enefit to its co*$etitors which could gain a co*$etitive advantage,
Peo$le+s attitudes are now changing and they li!e to $refer chea$er clothing as their inco*e sources are decreasing, Recession has caused decreasing the e)$enses of adults $articularly the case is true for e)$enditures in clothing,
Technological
0n s$ite of the fact that the technological as$ect is not the *ost relevant in the i*$le*entation of Pri*ar! in France1 it is i*$ortant to notice that the evolution and increase of the new technology influence the consu*ers to $urchase *ore technological $roduct to the detri*ent of others goods such as clothes X references sources, With the intensive use of increasing internet retailing *ethods are getting *ore $o$ular and $eo$le are (eco*ing *ore de$endent on online sho$$ing instead of sho$$ing going to the outlet, 7ar!eting online for fashion is really dyna*ic and nowadays co*$anies are setting u$ online sho$s for e,g, Tesco :clothingattesco,co*;1 Asda :?eorge;, There are various o$tions availa(le through which Pay*ents can (e *ade that *ay include: online (an!ing1 direct de(it cards1 credit cards1 PayPal etc, 0n case of distant location the co*$any focuses on the $ro$er *anage*ent and services of 0T syste*s that are secured,
The retail clothing industry in this area e)$erienced ra$id growth at the (eginning of the decade and is now *oving closer to the *ature stage of its life cycle, 7any factors contri(ute to the large de*and for chea$1 fashiona(le clothes: The young $o$ulation is huge source of de*and for clothing retailers, The $o$ularity of the 0nternet is growing e)$onentially, Those who are fa*iliar with it1 have higher e)$ectations for the visual a$$eal of sites, Pri*ar! $rovides an effective we( site which *eets the needs of the custo*ers.
*rench consumption of clothes: 0n 32-21 average outgoing $er ha(itant was /-/N for clothes and -@4N $er shoes that is to say a glo(al (udget of @. (illion N for clothes and C (illion N for shoes,
-/834 year olds increased their e)$enditure on clothing in 32--: a young girl s$ent an average of /@2N last year1 a young *an /33N, Even if all ages are decreasing $urchases1 the -/834 years old s$end always *ore for clothes according to a French study *ade (y EFashion French InstituteG, 0n France1 young are $eo$le who s$end the *ore and they are 34I of French glo(al turnover whereas they are only -4I of the $o$ulation,
There are significant differences (etween generation of $eo$le> indeed1 a young *an s$ent /33N en 32-- against @4@N on average for all ages co*(ined, A young girl s$ent /@2N $er year against D32 for her elder, -/834 are the (est consu*ers of clothes in France,
French competition: ?aleries 'afayette is one of the *ost i*$ortant co*$etitor that Pri*ar! could have in France, They are one of the only chain store which sell clothes with a lot of grou$ed (rands, They sell clothes of (rand with a very high 5uality (ut the $ri e is high There is also so*e inde$endent outlet store (ut no chain store li!e $ri*ar!,
Possible implementation? We see in the $art a(ove that French (etween -/ and 34 years old are the (est consu*ers of clothes in France> French are one of the (est consu*ers of clothes in France> 0n addition1 there is not a lot of outlet in France e)ce$ted E?aleries 'afayetteG and a few inde$endent others (ut they sell clothes at very high $ri e and in this situation of crises1 $eo$le1 young are loo!ing for clothes of 5uality in a good $ri e,
According to these three facts: French (etween -/ to 34 are the (est consu*ers, French is a (ig consu*er, %ot a lot of co*$etition with this !ind of sho$s in France,
And according to our seg*entation1 we can say that France is a *ar!et with a lot of o$$ortunities for Pri*ar! and constitute a new $otential *ar!et,
We will now figure out solutions to i*$le*ent our co*$any in the French *ar!et,
Implementation in -rench Market: We $roved Aust a(ove that French *ar!et is accessi(le to our *ar!et1 es$ecially in Paris, As the *a$ (elow shows1 Paris is the second *ost attractive location for international retailers in Euro$e, Paris is one of the world+s leading tourist destinations and1 along with 'ondon1 one of the strongest glo(al retail locations, 0t continues to attract the (iggest international and national (rands that inevita(ly loo! to the city to o$en flagshi$ stores1 in $articular the $re*iu* and lu)ury (rands, 9oth sho$$ing centres and high streets are attractive to the city sho$$ers1 with centrally8located Parisians $referring areas such as the =ha*$s8ElysZes1 O$Zra and 9oulevard Hauss*ann1 while those living on the $eri$hery tend to *igrate to su(ur(an sho$$ing centres Rosny 3 or Feli y 3, The =ha*$s8[lysZes1 the *ost e)$ensive retail location in France1 has recently welco*ed such new tenants as A(ercro*(ie L Fitch1 7ar!s L S$encer1 and 9anana Re$u(lic, Other recent new entrants include =al edonia1 Forever 3-1 Aldo and 0nti*issi*i,
PR07AR# has *any co*$etitors in *ar!et such as those *entioned a(ove or even 9h+s and 7A'TA% which are fighting to sell the sa*e !ind of $roducts which PR07AR# does, Relatively1 it is not easy to sell chea$ fashion (ut PR07AR# is doing 5uite well with it as we can see on the ta(le in the co*$etitor analysis $art, PR07AR# follows a Yco*$etitive $ricing strategyY that is to say they try to (e the chea$est on the *ar!et, PR07AR# has targeted custo*ers under the age grou$ of @4 years which are fashion conscious, 0t offers $roducts at very co*$etitive $rices and with a reasona(le 5uality this strategy used (y PR07AR# is !nown as value for *oney strategy, 0t does not $refer to sell its $roducts to every rando* seg*ent1 its target seg*ent include the age grou$ of -C8@2, 9ut they also sell clothes for children1 li!e these young $arents can wear their (a(ies or child in the sa*e store than the*selves,
strong relationshi$ (ond of wor! with the*, Si*$le to $roduce designs and Production of only $o$ular si es, <! 'eed of the customer The Pri*ar! will only advertise and *a!e those $roducts which are de*anded (y the custo*er, 0t is essential (ecause then only their sales volu*e will increase and the $rofit *argin scale will (oo* u$, 0t is one of those co*$anies who encourage the $artici$ation of its e*$loyees at *anage*ent level and ta!es their considerations (efore reaching to any final decisions, )ocial responsibilities PR07AR# will (e still a *e*(er of Ethical Trading 0nitiative as it started in Octo(er 322/ along with the 7ar!s and S$encer1 %i!e1 ?a$ and 'evis,
=!
sourcing $roducts efficiently *a!ing clothes with si*$ler designs using local fa(rics and tri*s focusing on the *ost $o$ular si es (uying in volu*e not s$ending heavily on advertising, 0n order to facilitate such cor$orate strategy with strategic *ar!eting $lans1 Pri*ar! has devised such *ar!eting sche*es that are:
4.3. MARKETING MI
7ar!eting *i) reflects the co*(ination of ele*ents used to *ar!et the co*$any<s $roduct, 0t consists of the four ele*ents which will hel$ in *ar!eting the co*$any<s $roduct in an a$$ro$riate *anner, 7ar!eting *i) strategy consists of D$<s i,e, $roduct1 $rice1 $lace1 $ro*otion (y using this strategy the co*$any can $rove successful to esta(lish its $roduct in the *ar!et, Therefore the D$<s of *ar!eting *i) are as follows: Product Pri*ar!+s $roduct strategy is to $ro$ose the sa*e collection everywhere1 with the sa*e clothes in each of its stores which allow the* to order in huge 5uantity and at the end to $ro$ose low $rice, The other $art of Pri*ar!+s $roduct strategy is to $ut new $roduct on the shelf every wee!, A season is defined (y Pri*ar! not as su**er1 winter or s$ring (ut as a si) wee! window, When Pri*ar! will set u$ in France1 the conce$t and the $roduct will (e the sa*e as in ?er*any1 in S$ain etc, However there is e)isting differences (etween French and English clothing style, 0ndeed fro* our research a(out the French style clothing1 E9old and (right colored clothes1 loud $rints or lots of e*(ellish*ents are so*ething French wo*en avoid wearingG 0n general way1 the French fashion loo!s *ore classical and si*$le than the English fashion, According to standard designs1 Pri*ar!+s clothes lines are for so*e of the* flowery1 with a lot of $rints and really colorful, 7oreover the styles of dress that English girls wear are very short in co*$arison with what 0 a* used to seeing in France, An ada$tation of the $roduct could (e Audicious for the setting u$ in France, However1 any ada$tation (ring costs which
could increase the $rice and do not corres$ond to Pri*ar!+s low cost strategy, Pri*ar!+s $roduct will follow a standardi ation strategy, 9esign:
The design of the $roduct should a$$eal in the eyes of the consu*ers over its co*$etitors 1so the design of the $roduct should (e attractive enough and as we !now that the target consu*ers of PR07AR# are -C8@/ 1 so the design should (e young vi(rant and fashiona(le which will a$$eal to the target consu*ers and will *otivate the* to (uy the $roduct over its co*$etitors, Packaging:
Pac!aging of the $roduct also $lays a crucial role in $ersuading the consu*ers to (uy the $roduct ,$ac!aging $rovides a (etter a$$earance and a convenient use, Therefore1 PR07AR# has to draw the $ac!aging of its $roducts in a way that it differ it fro* that of the co*$etitors Place According to our study a(out retailing in France1 a$art fro* Price1 $ro)i*ity and convenience were a*ong the *aAor needs of French consu*ers, While Pri*ar! is loo!ing for highway and huge surfaces1 industrial one :characteri ed (y chea$er rent (ut high fre5uentation; or 9ig *alls :which regrou$ a lots of sho$ and are often situated in highway; see*s to (e the $lace for Pri*ar!, 7oreover a $art of Pri*ar!+s target is the teenagers which are characteri ed (y a low *o(ility and go sho$$ing in easy accessi(le $lace :E,g,: The teenager do not have driving licenses and often go to (ig sho$$ing centers where a lot of sho$s are together and with an easiest access than the industrial one;,However in order to define what could (e the distri(ution strategy for Pri*ar! in France1 it is i*$ortant to loo! at the $recedent i*$le*entation of Pri*ar! in Euro$e, Seeing the $recedent i*$le*entation in Euro$e and seeing the needs of French consu*ers and es$ecially the target young target *ar!et1 a selective coverage in so*e Etest areaG could (e relevant and then turn towards an intensive distri(ution :which corres$ond (etter to a low $rice and high turnover strategy;, Price: When it co*es to the $ricing strategy1 we $ro$ose an 0nternational $ricing fra*ewor! which ta!es in account the factors influencing the Pricing strategy, 0n a general way1 as we saw the fashion industry is highly co*$etitive and the degree of co*$ara(ility of Pri*ar!+s $roduct in the French *ar!et is high as Pri*ar!+s strategy is to $ro$ose the sa*e $roduct as its co*$etitors (ut at a lower Price, 0f we only ta!e into account these factors1 Pri*ar! would have to tend towards a low Price strategy, However1 the *ost influencing factors for the $ricing strategy in France are the cor$orate and *ar!eting o(Aectives of Pri*ar!, 0ndeed Pri*ar!+s strategy is to *a!e their custo*ers EPri*ar!+s addictG $ushing the* to co*e (ac! every wee! (y nota(ly $ro$osing a fast *oving $roduct strategy, The target *ar!et would (e the under @/ which are characteri ed (y a li*ited inco*e, 0n order to attract that target and *a!e the* co*e (ac!1 Pri*ar! has to $ut a low Price strategy, Promotion: Pro*otion through several channels is *andatory to increase the (rand awareness and (uild (arriers for future co*$etitors,
Figure-2, The use of different *edia and different for*ats for (oth o(Aectives: $ro*otions and (rand (uilding
The essential $ro*otion will (e S9ag it U$ Pro*otionG, A si*$le ty$ogra$hic a$$roach to this s*all8scale ca*$aign wor!s alongside $roduct i*agery to clearly shout a(out the new season range of wo*ens hand(ags, The $roduct range was shot si*$ly in our $hotogra$hic studio against a $lain (ac!ground so that the shots could (e cut8out and integrated as $art of the window $oster design,
4.6. SUPPLIERS
7any Pri*ar! su$$liers have their own su$$liers1 who are in turn su$$lied (y others, 0t would not (e $ossi(le for Pri*ar! to control the wor!ing conditions of each $erson within this vast
networ!1 the co*$any is deter*ined to do what it $ossi(ly can to ensure adherence to the $rinci$les that they (elieve in, Hence1 Pri*ar! has $u(lished its co*$any8wide ?lo(al Sourcing Princi$les, Pri*ar! very carefully selects co*$anies who su$$ly the* directly with goods and services and those with who* they ai* to (uild long ter* $artnershi$s, Right fro* the (eginning it re5uires each su$$lier to i*$le*ent their ?lo(al Sourcing Princi$les1 which sets a *ini*u* acce$ta(le entry standard,
WHOLESALER
7INAL CONSUMER
)>P(26"2K(T) =lothing and footwear s$ecialist retailers are the *ain distri(ution channel1 with a value share of /3,CI in 322C, The *ost wide8reaching effect of the entrance of the su$er*ar!ets has (een the steady decline in $rices over the last few years, This has forced the hands of *any of their high street co*$etitors1 s5uee ing their *argins ever tighter as well as fostering a new attitude a*ongst
consu*ers who now e)$ect chea$er goods, Together with the 0nternet1 the growth of su$er*ar!ets has re$resented a *inor retail revolution, As su$er*ar!ets have gained *ore do*inance in the *ar!et1 those su(sectors that are not re$resented (y the (ig su$er*ar!et chains are finding it increasingly hard to co*$ete, This e)$lains why so*e areas such as suits1 Aac!ets and other for*alwear have (een $articularly hard hit in the current econo*ic tur(ulence, %ot only does the $rohi(itive cost of these $roducts drive consu*ers away1 (ut they have also driven su$$liers away, %hanges in shopping habits propelling &nternet channel 0n general1 these *ove*ents reflect changes in consu*er attitudes to sho$$ing> $references for lower $rices> and centrali ed sho$$ing *eans, The sa*e reasons lie (ehind the slight increase in distri(ution share for 0nternet retail and non8store retail, 0n *ost cases1 this is caused (y de*ogra$hic changes and changes in sho$$ing ha(its, The 0nternet is relatively new to this *ar!et and has (een una(le to challenge the do*inant *ar!et $layers with their chea$er $rices1 greater fle)i(ility and (etter access1 as well as to so*e e)tent a wider range of shoes to choose fro*,
4.7. HUMAN RESOURCES Employees are key to build a sustainable competitive advantage
Pri*ar! has a well8educated wor!force that can easily ta!e on the o$ening of new de$art*ent in France, Pri*ar! will also e*$loy new $eo$le fro* local co**unities to wor! in its stores and distri(ution centers in France, This will (oth reduce e*$loy*ent costs and ensure e*$loyees have a good connection with consu*ers, Training staff with the hel$ of training consultants1 who are fluent in French and have a significant a*ount of retail e)$erience in Euro$e1 will (e *aAor $riority for Pri*ar!, 9efore o$ening a new store in France1 e*$loyees will undergo a three8 wee! induction and training $rogra* designed to co**unicate its organi ational culture and to (uild tea* s$irit, The intention is to *otivate and to train staff to *a)i*i e salesWe*$loyee and salesWs5uare foot of retail s$ace,
Paris Fashion Wee!1 launched in -.B@1 is a*ong the largest fashion events held glo(ally, 0t is organi ed (y 7ode \ Paris1 a fashion industry association1 which hosts various fashion shows throughout the year, The Paris Fashion Wee! includes Haute =outure1 Ready8to8Wear :collections L $re8 collections; and 7en<s Fashion, 0n total1 it includes @2 shows of Haute =outure :&an, L &ul,;1 @2 shows of 7en<s Fashion :&an, L &ul,; and over -22 showS of Wo*en<s Ready8to8Wear,
Pr)6ar0
S'#re
I*-&'*!-), *!$);!-),* E<-&'*!$)" !-),*
Part of A9F grou$]sta(ility and $ower :9ig resources can afford (ig degree of control; 3,@-D*Q in 32-T,, '&.&*0nternationa 342 stores s$lit Euro$e &<2&')&*.& !5',!+ l e)$erience Recent international e)$erience First store in S$ain in 322/ *,- &<2&'- )*
)*-&'*!-),*!$
E7$er/ al -a'$#r (
Sociocultur al distance
I*-&'*!-), 9oth $art of the Euro$ean union N, 5)4 %ot far fro* each other *!$);!-),* Si*ilar (usiness and industrial $ractices .#$-#'!$ Sa*e fashion trends .3!$$&*4& "ifferent *oney and language L,% I*-&'*!-), Politic and econo*ic sta(le (!':&- *!$);!-),* :even with a crisis1 re*ain ')": one of the strong econo*y in Euro$e; 7ulti$layer *ar!et Well esta(lished (rand Such as Rara1 HL7 High level of financial *anage*ent and resources E)$ort the sa*e conce$t everywhere
H)43 )*-&*")-0 ,/ .,(2&-)-),* R)": -!:&' L,,:)*4 /,' 3)43 .,*-',$
*ar!et, The co*$any should $lan out $ro$er *ediu* and strategies that it would o$erate in for choosing its target *ar!et, 0t would (e a 2I sale if the co*$any tries to sell its $roducts to the custo*ers of all the age grou$ without !nowing the *ar!et niche, Therefore1 having a tight niche *ar!et is of great i*$ortance, For PR07AR# the niche *ar!et ado$ted was the set of custo*ers who would $refer (uying fashion at a chea$ $rice1 so (asically its target custo*ers were consu*ers in the age grou$ of -C8@/,
5.3.1. SEGMENTATION
First we divide the $o$ulation to grou$s in the ter*s of age,
%e)t we chec! how *any $ercent of each grou$ heave inco*e (elow @212226 $er year,
'ast ste$ is to find out how *any $ercent of those grou$s have children under -C,
Segmentation .aria/les an /reak o*ns for -rench c!stomers Market for Primark ?eogra$hic seg*entation Region :all $rovinces and territories; with e*$hasis on ur(an W *etro$olitan areas1 and ada$ted strategies for all geogra$hical grou$s "ensity Ur(an1 su(ur(an "e*ogra$hic seg*entation Age 28-B1-C8@/1@B8/21 /-X ?ender 7ale1 Fe*ale A$$ #*+&' =30,000 0nco*e Occu$ation Students> new graduated> new wor!ers> young $rofessionals Education Ele*entary Dth grade1 High school and University Fa*ily si e -831@8D1 4X Fa*ily life cycle Koung single1 Koung *arried> Koung1 7arried with children> Older1 7arried with children> Older1 7arried with no children under -C>Older1 Single> Other Personality 9rand conscious1 anchored in $o$ular culture1 inclined for differentiation and so$histication1 very tolerant towards *ulticulturalis* and Psychogra$hic seg*entation internationalis* :o$en8*inded;1 5uic! *aturation with *odern $roducts 'ifestyle Fashiona(le1 out8going1 achievers Social =lass Wor!ing class1 *iddle class1 u$$er class 9ehavioral 9enefits ^uality1 Fashion1 trends1 Econo*y
At first stage of seg*entation1 overall *ar!et is divided into distinct grou$s of (uyers who are li!ely to res$ond favora(ly to different $roducts1 services or *ar!eting *i), As Pri*ar! is tagged a value clothing retailer1 clothing is *ost i*$ortant and leading ite* in its $roduct $ortfolio follower (y footwear, 0ts *ar!eting seg*ents are evaluated on (asis of clothing and footwear, Although all a(ove deter*ined seg*entations (ases and varia(les are i*$ortant (ut de*ogra$hic factors are the *ost straight forward (ase for seg*enting Pri*ar!<s consu*er *ar!et1 as they are *ost *eaningful, All de*ogra$hic factors are identified according to their $ercentage relative attractiveness for targeting the* de$ending u$on their *ar!et share for Pri*ar!, =o*$any seg*ents it custo*ers on socio8econo*ic :dis$osa(le inco*e; and de*ogra$hic :age1 gender1 lifestyle; (ases, YPri*ar!<s target custo*er is young1 fashion conscious and under @/ years old and also target low8inco*e grou$ who have less dis$osa(le inco*e to s$end on latest fashion,
5.3.2.
TARGETING
%ow when we !now the data for French $o$ulation why can+t choose our target grou$, ?rou$ 'ow Price ^uality Style Prestige of $lace Prestige of *ar! 'ocali atio n Fashiona(le -C8@/ with !ids 4 4 3 @ @ -C8 @/without !ids D 4 D 3 3 3 D @ D 33 @B8/2 !ids 4 D 3 3 @ 3 3 D -. with @B8/2 with /-X out !ids together @ @ @ @ @ D D @ -4 D D D 3 -4 Peo$le with inco*e *ore than @22226 @ 4 4 4 4 4 D -D
The $ri*e target *ar!et that has (een identified is the *iddle and low inco*e class under @/ interested in fashion trends at (argain $rices, This target grou$ is a generation of $eo$le loo!ing for individuali ation (ut connected with their $eers in and out of their country, Ta(le-: =haracteristics of Pri*ar!+s strategy to define the (asics of Pri*ar!+s target *ar!et,
Pri*ar! strategy
Target *ar!et
Product 7en+s wear1 wo*en+s wear Wo*en footwear Accessories =os*etics Ho*e 0te*s 9a(y clothes Product characteristics Koung fashion _ Fashion clothes Price: 'ow $rice : Until @2I less than in HL7
7en (ut wo*en essentially seeing the fact that there is (ag1 cos*etics1 footwear *ore oriented toward wo*en, The ho*e and (a(y clothes target the young *u* with an o(Aective to $ut Pri*ar! in the young *u* *ind as the $lace to (uy clothes for her1 her (a(y and her ho*e in the sa*e sho$, Fashion conscious1 loo!ing for fashion clothes, Pri*ar! strategy a$$ears to (e for the under @4 year old seeing the high degree of fashion : that young $eo$le are loo!ing for when adult are *ay(e *ore loo!ing for 5uality; and seeing the low $rice which suggest that Pri*ar! strategy target li*ited inco*e Fashion addict or Heavy users of clothes and footwear always loo!ing for novelty
5.3.3.
POSITIONING
Positioning is not a(out the $roduct (ut actually what the custo*er thin!s a(out the $roduct or organi ation, Therefore it is a(out visi(ility and recognition of what a $roduct re$resents for a (uyer, The $ositioning strategy only wor!s on differentiating Pri*ar! as the chea$est clothing retailer1 and does not gain a *eaningful $osition in custo*ers *inds as (eing fashion forward or of considera(le 5uality _ si*$ly <chea$<, Pri*ar! is !nown as cost leadershi$ retailer in the *ar!et1 which has over fifteen own (rands =usto*ers thin! that Pri*ar!<s $roducts are good value for *oney,
Through *ar!et research we identified fro* a sa*$le of fe*ale teenagers that were surveyed1 that (eing trendy and stylish1 having a good range of clothing1 and good (rand re$utation1 were *ost i*$ortant factors for this target *ar!et when selecting a $referred (rand Koung "i*ension of fashion retailer Pri*ar!, Pri*ar! need to re$osition the $erce$tion *ar!et has of its (rands fro* range and 5uality of clothing to (e *ore trendy and stylish, Pri*ar! has e*$hasi ed *ore on in8store service and convenience> and as 9udget Fashion retailer1 they *ight want to *aintain their current $ositioning of low $rice1 afforda(le1 (ut also good value for *oney,
6.
IMPLEMENTATION
"evelo$ed a(ove four *aAor P+s :$roduct1 $rice $lace1 $ro*otion;1 the traditional *ar!eting *i) is fra*ewor! in reference to analyse the i*$le*entation of strategy, 0n favour of the glo(ali ation1 the needs of consu*ers are *ore and *ore Eho*ogeni edG creating a single glo(al *ar!et $ushing towards a glo(al strategy :standardisation instead of ada$tation to the local *ar!et;, The *i) *ar!eting has to (e seen as a (asic for the i*$le*entation of Pri*ar! seeing the current French environ*ent, However a *ar!eting $lan has to (e fle)i(le during the setting u$ and during the develo$*ent of a co*$any in a country according to the reaction and e)$ectations of new custo*ers and in order to *atch the*, This high level of fle)i(ility for a
*ar!eting *i) can not necessarily (e afforda(le (y Pri*ar! as every change generate new cost, 0*$le*entation itself is all a(out whether ado$t or standardi e, 0f we loo! at the factors favoring standardi ation such as the convergence of tastes and consu*er+s needs1 the econo*ies of scale in RL"1 $roduction and *ar!eting1 then we would rather $refer for Pri*ar! go towards a standardi ation of its strategy when it is setting u$ in France, AGGRESSI9E STRATEG> When it co*es to the setting u$ of Pri*ar!+s in France1 Pri*ar! will use an aggressive strategy such as *ar!et $enetration1 Price that defined as Ethe use of the low $rice used (y a fir* to ra$idly increase sales (y sti*ulating growth and increasing *ar!et share1 (ut at the sa*e ti*e discouraging co*$etition, This will allow Pri*ar! to launch a H$rice war+ in the French clothing *ar!et, To (egin our i*$le*entation in this new $ro*ising *ar!et which is Paris1 we first of all need to (udget our i*$le*entation, This i*$le*entation of a new store will ta!e $lace in a *all closed to the center of Paris (ecause of attendance of these $laces, Places choice: After co*$aring several *alls in Paris we choose Eles 5uatre te*$sG which is one of the *ost $o$ular *all in Paris, With these -@/222*` of area and these C34 222 222N of turnover $er year it+s an ideal $lace to i*$le*ent our Pri*ar! store, We choose it (ecause of fre5uency> indeed it+s located near to (usiness center of Paris and Parisian often go to this *all during the lunch (rea! or even after wor!, 0t+s one of the *ost fre5uented sho$$ing center in Paris, 0n addition we choose this $lace (ecause of rent $ri e1 actually it+s one of the *all with the ElowestG :co*$ared to others; renting $ri e $er *eter s5uare :42NW*`; (ut a rent here is still e)$ensive li!e everywhere in Paris, Implementation Budget: We choose to i*$le*ent a *ediu* si e sho$ that is to say a(out 342*` (ecause we need to $ut lots of $roduct :diversity of (rand we offer;1 so the fee for the rent is e5ual to -3422NW*onth that is to say -42 222NWyear, A store of this si e i*$lies -2 sellers every ti*e $lus 3 *anagers every ti*e and director, The store is o$en /WB days1 fro* .a* to C$* fro* 7onday to Friday and Ca* to -2$* on Saturday that is to say o$en /.hoursWwee!, A French wor!er wor! @4hoursWwee! that is to say for continuously -2 sellers and 3 *anagers we need 32 sellers and D *anager total, 0n a nutshell1 a(out sellers 32 a -3/2NW*onth ] 34322N1 3 *anager 3a-.22NW*onth ] @C22N and a director @422NW*onth, The addition of the salary of all e*$loyee ] 34322 X @C22
X @422 ] @3422NW *onth X ta)es for e*$loyees e5ual to half salary that is to say @3422W3 ] -/342N, So we need @4322N X -/342N ] 4-D42NW*onth and we can add $ri*es1 $aid leave1 hu*an resources *anage*ent a(out -2 222NW*onth, The total of salary cost will (e a(out /-D42NW*onth thus B@B D22NWyear, We also need to advertise for our new sho$, 0n France1 free news$a$ers are well develo$ed and French $eo$le always read the* in trans$ort es$ecially in Paris where trans$ort are very well develo$ed so $ut advertise*ent in these news$a$er will (e the first $oint of our *ar!eting cou$, We will also *a!e flyers distri(ution near the *all Eles 5uatre te*$sG highlighting the cost of our $roduct1 the 5uality and now the new $ro)i*ity for custo*ers, So we need to add this advertise*ent cost to e*$loyees cost and renting cost, This is a conse5uent (udget (ut according to the $lace1 the (rand we offer1 our *ar!et analysis1 and Paris lifestyle we can easily thin! that this store can (e $rofita(le soon, Consequences of the implementation: This i*$le*entation in Paris is a si*$le ste$ in our i*$le*entation in France> indeed we (efore want to (e sure that our conce$t is wor!ing in France in the $ur$ose to develo$ our stores in the French *ar!et that is to say new sho$s in Paris *alls and *ainly i*$le*entation in new cities li!e 7arseille1 'yon1 9ordeau) which are city with a very (ig $otential in the French *ar!et,
5.1. CONTROL
The control of the $roAect will (e (ased on *onitoring on wee!ly (asis, =ost effective1 efficient ratios to inter$ret *ar!et share and sales revenue co*$ared to forecast, The use of research will (e *ade to drive *ar!eting efforts1 with a focus on new custo*ers, 7onitoring *echanis* will (e esta(lished to trac! return on invest*ent, %$'T2$# $* %$)T) Pri*ar!+s strategy is to focus on the control of its costs, 0n nota(ly reali ing econo*ies of scale and (y i*$roving their s!ills which are allowing Pri*ar! to $ro$ose very low Price, Primark has honed its business model into a science 3business week ?une-@@A4
+.CONCLUSIONS
0f we loo! at the Analysis of the first $art through the use of Pestle and SWOT *odel1 France *ar!et in s$ite of its high co*$etitiveness see*s to (e ready to welco*e Pri*ar!, However those *odels give a Hsna$shot+ of an industry at a certain $oint and the fashion industry is fast *oving and change very 5uic!ly, 7oreover the ha(its of e)$enditure in that sector are highly affected (y the e)ternal environ*ent, As no one can $redict what will ha$$en1 the setting u$ of Pri*ar! in France see*s to (e an o$$ortunity (ut the e)ternal environ*ent if suddenly changed :li!e the crisis in 322. which slow down the e)$enditure in *ost of the sector;1 could *a!e the setting u$ of Pri*ar! *ore difficult, 0ndeed when Pri*ar! *ain strategy is cost leadershi$1 it also could (e saying that it loo!s after differentiation nota(ly (y not advertising
and through its high fast *oving $roduct strategy :higher than its co*$etitors;, However the in8(etween strategy is highly ris!y and not afforda(le, The *ar!eting *i) has to (e seen as a (asic for the i*$le*entation of Pri*ar! seeing the current French environ*ent, However a *ar!eting $lan has to (e fle)i(le during the setting u$ and during the develo$*ent of a co*$any in a country according to the reaction and e)$ectations of new custo*ers and in order to *atch the*, This high level of fle)i(ility for a *ar!eting *i) can not necessarily (e afforda(le (y Pri*ar! as every change generate new cost, According to the so*e o$inions found in cor$orate: Ethere are still a lot of $laces where we+d love to (e+, %eigh(ors of U#1 France could (e one of those $laces, %ow surrounding France1 Pri*ar!+s success story is it following a country test strategy (efore its con5uest of France,
For Pri*ar! to continue delivering value across range of its $roducts1 it *ust develo$ strong *ar!eting as well as has to enter online sho$$ing $ortfolio, They have to co*$ete with rise of online retailers, Although only DI of clothing sales are currently *ade online1 this loo!s set to grow, With *any value retailers not yet having ca$a(ility to trade online1 they *ay (e left (ehind as this channel (eco*es increasingly i*$ortant to fashion industry, The value sector has had a huge i*$act on fashion *ar!et over $ast few years and rest of high street has (een forced to slash $rices in order to co*$ete, 0f this influence di*inishes1 fashion *ar!et could (eco*e a very different $lace to trade in, With levels of co*$etition ever increasing1 even *ost traditionally confident of organi ations li!e Pri*ar! are feeling $ressures to stay in the ga*e, As technology is e*erging1 retail (usiness is ta!ing new sha$e changing at great s$eed with increase in nu*(er of 5uality co*$etitor launching (etter services, Hence1 e)isting clothing retailers li!e Pri*ar! have to divert fro* their traditional $ath in res$onse to increasing co*$etition, Another *aAor reason for this transfor*ation is that (uyers are develo$ing their taste very ra$idly and are (eco*ing *ore de*anding with $assage of ti*e, =hanges in internal L e)ternal environ*ent factors li!e co*$etitive *ar!et1 glo(ali ation factors1 de*ogra$hical and social forces1 ethical forces1 technological changes1 econo*ical factors and $olitical issues are so*e other *aAor reasons for various !inds of strategic changes1 structural changes1 cultural changes1 syste* changes1 $rocess changes within organisations,
Recommen ations
0 conclude following *easures for Pri*ar! to face challenge indicating which seg*ent of strategy has to follow to achieve these reco**endations1 concentrate on growth of user8 generated content and an e*$hasis on new distri(ution channels such as>
Redesigning and re launch we(site with high tech online sho$$ing $ortal :7ar!et and Product "evelo$*ent Strategy; E)$anding *ar!et1 e)$lore new *ar!ets overseas,:7ar!et "evelo$*ent strategy; 9rand stretch :Product "evelo$*ent Strategy; Finding new talent of designer :Product "evelo$*ent Strategy; Offer clothing for a *ature *ar!et @4X :7ar!et Penetration Strategy; "iversify :0ntroduce new $roduct line;
0ntroduce range of accessories :7ar!et Penetration Strategy; E)$and current $roduct lines:7ar!et Penetration Strategy; 0ntroduce new $roduct lines :"iversification1 7ar!et "evelo$*ent; 0ntroduce food Hall or =afe<:"iversification; 0ntroduce loyalty card or store card:"iversification1 7ar!et "evelo$*ent; Add fragrance section and $har*acies :"iversification; 0ntroduce section for electronics :"iversification; Enter in e*erging *ar!ets li!e teleco* :"iversification; O$en new outlets :7ar!et "evelo$*ent; 7ore *ar!eting can (e done
%ew $roducts e)$anding (eyond clothing to include *ore shoes1 hand(ags etc :7ar!et Penetration; Start own $roduction factories in countries li!e china and 0ndia to dro$ cost of $roduction and *ore less $rices :"iversification ; 0ntroduce custo*i ed tailoring and on de*and $re$aration of dresses :Product "evelo$*ent Strategy;
1.REFERENCES
1. htt$:WWwww,$ri*ar!,co,u! baccessed @2 "ece*(er 32-3c . htt$:WWwww,a*ericanessays,co*Wstudy8aidsWfree8essaysW*ar!etingWa(out8$ri*ar!,$h$
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4. htt$:WWessay(an!,degree8essays,co*W*ar!etingWover8view8of8discount8retail8clothing8
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