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Strategic marketing management study

Paper Type: Free Essay Subject: Marketing
Wordcount: 3296 words Published: 21st Apr 2017

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Aims And Objectives

The assignment has included concept of marketing strategy and how it effects to the modern marketing environment for an organization to achieve its goals such as Primark.

The objective of this assignment is to emphasize on the importance of strategic marketing and to assess current changes to achieve their organizational goals.

Task 1

-Analysis of the planning principles and range of tools and techniques involved in developing a marketing strategy.



  • Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” by P Kotler [2007]
  • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” by Chartered Institute of Marketing, UK

Basic Concepts Of Marketing

The way in which an organisation approaches its business and markets may vary according to the views, beliefs of ethics of the executive body involved. According to P Kotler [2007] there are basically four different types of concepts.


The customers are interested in the availability of products and low prices. Manufacturers concentrate on mass production, believing that little or no marketing is necessary. The company makes what it is good it.


Manufacturers believe that the customers can recognise, and will favour, a good product when it is offered. They concentrate on offering their own idea of a good product” and then are mystified when the customers do not take to it immediately.


This involves heavy activity on the personal selling front and can mean massive promotional campaigns to move stock.


Believes that the customer is the key to successful business.

Strategic Marketing Management


According to Wilson, Gilligan and Pearson [1997] in Strategic Marketing Management differs three levels of strategy,

Corporate Strategy

Dealing with the allocation of resources throughout the entire organisation, covering all of the various businesses of division.

Business Strategy

This exists at the individual business or division level and is concerned with the question of competitive positioning.

Functional Strategy

This is limited to the actions of specific functions within specific businesses.

Strategic Marketing In Context With Primark


Primark Ltd is a subsidiary of Associated British Foods Plc (ABF), and was the company’s best performing business in 2005.It operates stores in the UK, Spain, Germany, and Ireland, where it trades under the penne’s brand. Primark employs over 20,000 people, which will increase to 25,000 by April 2007. The company has a very lean operation focusing entirely on the retail of clothing and footwear and home ware [Primark 2009].

The Marketing Mix

Marketing mix is a well-designed plan to analyze the marketing problems. Essentially, the marketing mixes one of efficient tool to design and plan its brand strategy. According to P Kotler [2007], the marketing mix refers to a combination of various factors which in their totality constitute a firm’s marketing systems. These are often described as Four Ps,


A set of characteristics which satisfy the requirements of consumers and provide the benefits claimed.


Set in accordance with market levels and reflecting the characteristic and quality of the product.


Available in multiple outlets and by order from suppliers providing full coverage of the market area.


Information provided about the product including advertisement and point of sale material.

The Marketing Mix In Primark

The variables or the Four Ps can be controlled by the primark in order to best satisfy customers in the target market. So the primark has to blend these variables for its effective performance of its branding strategy.

Product Mix

The product is the physical product or service offered to the consumer. The primark can take various product decisions to increase and strengthen its brand image among the customers. For example, the primark can increase its product quality by choosing quality suppliers at competitive prices. Besides, the primark may offer variety of quality of clothing based on the various prices. So right price for the right product will increase the customer’s satisfaction as well as increase the Primark’s brand image by gaining customer’s confidence. (Hamel and Prahalad, 1994).

Price Mix

The primark has to choose various pricing strategy based on its various environmental changing and market requirements. Sometimes the smaller amount of pricing change may affect larger amount of sale. For example, 50% off, up to 50% off, seasonal sale, summer sale, special discount for certain products, special prices for primark loyal card customers, etc. Therefore, various kinds of pricing mix which will increase the sale as well as increase the brand image too.

Place Mix

The Primark distribution includes market coverage, channel member selection, logistics and levels of service. Essentially the Primark’s physical distribution involves planning, implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer needs at a profit. The Primark can attract additional customers by offering better service or lower prices through physical-distribution improvements.

Promotion Mix

Promotion mix is one of the effective tools to increase the Primark’s sales volume immediately. It also helps the Primark to improve its brand image among the customers and competitors. There are different kinds of promotional strategies, which have to be analyzed and used by any one or more by the Primark for its effective branding strategy which are push and pull strategies, sustaining promotional strategy, developmental promotional strategy and promotional appropriation.

The Strategic Tools And Techniques Of Primark

SWOT analysis

According to P Kotler [2007], the success of the SWOT analysis is based on how the firm fits (FIT) its strategy with its environment.

The SWOT analysis will help the Primark to interpret the information they have gathered about their organization and its environment in relation to how it affects the ability of the business to reach its strategic goals. Generally, the Strengths and Weakness are the internal and Opportunities and Threats are external to the Primark.


More spacious outlets at Main locations.

Having more than 14 private labels such as Active, Primark essentials.

Operates three countries and having more than 20,000 employees.

Clear operating focus on clothing, footwear and home wear.

Using Cost leadership strategy in the UK market.


Increasing demand on latest design products with cheaper price.

Widening market area globally.

Asia is having cheap and skilled labour for the product supply

Primark may open its stores in Asia.


Primark image affected due to the child labour issue.

Primark having its retail shops only in the developed countries.

Not focusing on advertisement and low sales budget.


Changing business environment.

Changing customer needs and wants.

More competition.

Increasing labour.

Increase raw materials.

Ansoff Matrix

This is a tool that will help the primark to decide its product and market growth strategy. Ansoff’s matrix suggests that a business attempts to grow depend on whether it markets new or existing products in new or existing markets. The below figure explains the Primark’s Growth strategy:

Source: Ansoff matrix -(Johnson et al, 2006)

Market penetration

The Primark can achieve its market penetration strategy to increase its growth by using the existing products in the existing markets. Here, the primark can use competitive pricing strategies, advertising and sales promotion. For example, primark can introduce the Primark’s loyalty card based on customers purchasing point system. This loyalty point system will motivate the customers to buy more products at primark and it helps motivate the customers to avoid buy from other competitor’s stores too.

Market development

Here, the Primark has to seek to sell its existing products into new markets. For example, the primark recently has opened its new stores in Spain. So the Primark is increased its market share in Spain and using the existing products such as cloths and accessories.

Product development

Here, the Primark has to introduce the new products in its existing markets. This strategy may require new competencies and require new modified products to retain and increase its market share in the existing market in UK.


This is more risk strategy because the business is moving into new markets with new products. So if primark entered into diversification strategy, they can introduce the small express food services in its existing stores. For example, inside the primark shop the primark can offer coffee, sand wedges, burgers, etc.

Task 2

– Analysis of marketing strategies and their benefits and limitations.

Primark’s Market Segmentation Strategy

Here the Primark has divided the whole market into small groups. Once the Primark divided its market into sub groups, it’s easy to target the market by effective marketing strategy. Under the market segmentation strategies, the Primark has to consider that there are three types of segmentation. According to Pearce and Robinson [2007], they are,

  • Mass marketing
  • Product variety marketing
  • Target marketing

P Kotler (2007) stated that the Mass marketing is called undifferentiated marketing. Here, the primark has to give only one offer for the whole market and focus on common needs rather than differences. The Product-variety marketing is also called differentiated marketing. Here, the Primark has to target several market segments and design separate offers for each. Once the Primark divided its market into sub groups, it’s easy to target the market by effective marketing strategy based on gender, women and men.

Primark’s Target Market Strategy

The Primark once completed its business environmental analysis, it should plan to develop target market strategy. M Porter [1980] stated that there are three phases that has to be considered when a firm develops its target marketing strategy. Developing a target market strategy has three phases,

Analyzing consumer demand.

Here, Primark has to identify various types of demands, such as homogeneous demand, clustered demand and diffused demand. For example, the Primark sells the value pack products jeans for less price for everyone. In the clustered demand, the Primark sells ladies wear based on various consumer demands such as luxury, cheap, sporty and fashionable. Besides, the Primark has to focus to the diffused demand because the product differentiation is more costly and difficult under this category.

Targeting the markets.

The primark has to consider two kinds of approaches when it’s targeting the market.

Total market approach

In the total market approach, the primark has to develop its products based on the whole market and it should not develop the product for each segment or any one particular demand of the customers.

Concentration strategy

In the concentration strategy, the primark has to develop various products based on the various demands of the market. For example, the kids wear for the children, the modern and fashionable goods for the women those who are less than 35 years old. Generally, the concentration strategy will help the primark to get into specialize in one particular area and it can satisfy one group’s needs. Especially, now the primark is specialized in young ladies fashion wear.

Multi-segment strategy.

In here the primark can segment its strategy based on the various segments. However, the primark has to develop various strategies to attract the each segment. So the primark should have different marketing plan for each segment.

This multi segment strategy is combined with the total market approach as well as concentrated marketing approach. Moreover, the Primark can achieve same market coverage as with mass marketing, price differentials among different competitors and capture the more market share in each segment where the consumers are ready to pay the premium for the tailor made product.

Primark’s Positioning Strategy

P Kotler (2007) defines that positioning is how your target market defines you in relation to your competitors. The position is important because it helps the customers to understand the Primark’s product from their point of view relative to the competition. So the primark should have some unique features. That should be the considered a benefit by its target market. For example variety of modern cloths availability for women in cheaper price is the unique features of Primark.

Generally, in order to begin positioning a product, there are two key factors that need to be considered.

Marketing environment.

The Primark marketing environment is an external environment. So it has to analyze that how the market is satisfying the need and what the positions of competition are.

Competitive advantage.

The competitive advantage is an internal of Primark. Here, the primark has considered that what gives the primark advantage over its competitors. For example, the low price, variety of products, new design, variety of accessories and more spacious are all the various advantages of Primark over its competitors.

Furthermore, the primark has to consider the seven positioning strategies that can be pursued: which are product attributes, benefits, usage occasions, users, positioned directly against the competitor, positioned away from competitor and compared different classes of its product.

Task 3

-Implications of changes in the marketing environment.

Primark’s Current Changes And How Its Respond In The Marketing Environment.

There are two layers in the Primark environment, which are macro and micro factors. The micro factors are suppliers, companies, stakeholders, and consumers. The macro factors are political, economical, legal, technological, environmental and cultural and social factors, which are not controllable to the Primark. These factors are changing rapidly in the Primark marketing environment due to the various causes.

Political changes

The political changes affect the primark due to the various law and government policies. For example, the UK government recently increased the minimum wages, and changing the employees working polices.

Respond to the change.

If the primark enters into Asian countries, it has to follow different law and policies based on the operations of its country.

Technological changes

The technological changes the Primark marketing environment by using the latest machines in its manufacturing systems, marketing network system, using latest sales software’s such SAP, Oracle, etc.

Respond to the change.

The Primark has to introduce the Online shopping for its customers, due to the heavy competition in the retail industry.

Culture changes

The cultural changes also affect the Primark marketing environments, as it changes the Primark consumers tastes and needs. If the Primark failed to provide its products based on its changing consumers needs, it cannot survive in the future.

Respond to the change

As UK is facing the more multi country population due to the open immigration policy, the Primark has to analyze the cultural changes properly in the future.

Environmental changes

The Environmental factors are also changing the Primark marketing environment. As growing pressure for the greener environmental policy, the primark has to analyze and review its business policy based on the changing environmental needs.

Respond to the change

The primark has to ensure that all the products must meet the environmental policy of the local Government.(Financial Times, 2009).

-Analysis of functional areas may develop to contribute to the achievement of an organisation’s marketing objectives over a period of at least three years.

The Primark marketing objectives over the last three years

The company is decisively positioned at the value end of the market, where its core detailing strategy lies. It sees its consumer base as young, fashion-conscious under 35 year olds. Around half of its sales are in women’s wear, with the rest generated by men’s wear, children’s wear and home wear buying teams source and purchase fashion basics that reflect key trends, and the company’s lines are regularly updated.

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The company is continually opening new branches and this coverage will therefore improve over the forecast period. Primark is known for selling clothes at the budget end of the market. The company’s success over last three years is based on sourcing supply cheaply, making clothes with simple designs and fabrics, only making them in the most popular sizes, buying stock in huge bulks and varieties but most importantly Primark do not advertise their products. This store states that “Primark targets young, fashion-conscious under 35’s, offering them high quality, fashion basics at value for money prices.

The other objective is where costs are kept down in a number of ways. Firstly, products are all manufactured at the cheapest possible rate, typically in Asian countries with lower wage costs such as Bangladesh. Margins are also protected but very limited advertising expenditure. The dramatic expansion of the retailer over three review period, underpinned by its 2005 acquisition of the 120 branch Little woods retail chain for 409 million, has given the company a full geographic coverage in the UK and Ireland. (Primark, 2009)



P Kotler [2007]. A Framework For Marketing Management. Prentice Hall international.

M Porter [1980]. Competitive Strategy. New York: Free Press.

J A Pearce& R B Robinson [2007]. Strategic Management. 10th ed. England: McGraw-Hill Irwin.

G Hamel& C K Prahalad [1994]. Competing For The Future. Boston: Harvard Business School Press.

Advanced Diploma in Business Administration-Strategic Marketing [Study manual]


Primark official website, 2009.[online] Available at:http://www.primark.co.uk [accessed 10th December 2009 ].

Financial times online news paper, 2008. [online] Available at:http://www.ft.com [accessed 10th December 2009 ].


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