Primark Company Report Essay Sample
1. 0 Introduction
Primark Stores Ltd. Is a value manner retail merchant that was founded in 1969 and operates as a subordinate of Associated British Foods plc. Primark sell a broad assortment of merchandise from dressing to homeware providing for all ages and sizes. Primark is recognised as ‘the taking value manner retail merchant in the UK’ ( Mintel. 2011 ) and with 232 shops presently runing across the UK and Europe. in add-on to more opening every few months. Primark is spread outing rapidly and predominately in the industry.
2. 0 Nature of the concern
Primark have adopted a monetary value leading scheme. which has helped specify the trade name and market place within the retail environment. The Primark trade name purposes to cover every merchandise country their mark consumer could desire for. in bend extinguishing the menace of rivals. Primark beginning merchandises from several abroad providers and so hold the goods shipped/air freighted back to be sold in the UK and Europe. When choosing appropriate providers. Primark’s chief focal point is on monetary value and lead times. Primark tend to beginning garments that can hold a long lead-time such as basic repetition lines. from the Far East as the monetary values are unbeatable and the trade name can afford to wait for long cargo. Sourcing provider scheme differs somewhat when looking to beginning ‘fashion’ merchandises as to maintain in front of its rivals Primark may look to beginning closer to place. such as Turkey. to guarantee they don’t miss out on conveying in a potentially success tendency in front of its rivals.
3. 0 Market place within the industry as a whole
The rise in fast manner and the diminution in the economic system have seen a major addition in the figure of consumers turning to value. fast manner retail merchants in replacement for the more expensive high street trade names. Since 2006. Primark has ‘doubled its market share’ ( Mintel. 2011 ) . doing it the fastest growth of the major specializers. Although the industry appears to hold been fluctuated with value retail merchants. Primark has ever managed to stay in top place with its rivals endeavoring to keep onto the market portion they presently occupy. Some may category Primark at the lower terminal of the manner industry as its non high terminal interior decorators but
4. 0 Main aims of the concern
Primark chief aims are to supply the latest manners with the shortest lead-time at the best monetary values. There is no set mission statement that Primark ‘live’ by merely a general ethos of high volume purchasing and so selling at the cheapest monetary values. Primark are invariably seeking to derive market portion in the industry and are continuously presenting new merchandise lines i. e. form wear for adult females to assist cover more potentially countries of growing for the concern as a whole.
5. 0 Quality criterions & A ; attacks for service quality
Primark demand good quality from the merchandises it puts it call excessively and non merely low monetary values. Recent developments have seen ‘Garment Technologist Specialists’ assigned to each of the purchasing section to assist proctor. buttocks and combat any possible issues that may originate on merchandises coming from providers overseas.
6. 0 Customer profile & A ; mark market section
Primark’s nucleus mark market is ‘the manner witting under 35s’ ( Mintel. 2011 ) . The typical Primark shopper likes to be able store rapidly and easy. picking up the latest tendencies and manners whilst keeping a certain budget. The manner the shops are laid out. is designed to enable an easy shopping experience for consumers who are looking to do fast manner purchases.
7. 0 Competitor profile & A ; selling methods
Primark’s rivals can be counted as the supermarket vesture ranges ( George at ASDA. TU at Sainsburys. F & A ; F at Tesco ) along with Matalan as each of the trade names offer value for money vesture. Primark remains unbeatable at monetary value in comparing with about all merchandises it offers and if non the quality of merchandise is frequently found to be superior. Unlike other manner retail merchants. Primark do non utilize selling schemes to pull involvement and clients as the trade name attempt to maintain operating expenses to a lower limit in order to prolong the best monetary values for the consumer. Primark market its merchandises utilizing its shop window shows. which are changed twice a hebdomad to showcase the newness in merchandise presently in shop. There are besides a few hebdomadal magazines that showcase Primark womenswear’s latest merchandises. but this is done independently and Primark play no portion in marketing these merchandises themselves.
9. 0 Employment patterns & A ; puting in people
Primark caput office consists of a big HR force that sits to guarantee that non merely appropriate new recruits are selected to fall in the Head Office work force. but besides to guarantee that current employees are. As an employee of Primark and working within the caput office there are many preparation classs that are provided to assist develop accomplishments such as Narrations to Fibre preparation. excel preparation. direction preparation and dialogue preparation. All head office employees are besides given a reappraisal every 6 months by their section director which allows the employee to acquire feedback on their public presentation at work every bit good as raising any issues.
10. 0 External influences which impact on the concern and your function in the concern The most influential external influences presently impacting Primark semen from within the outside economic system. The recession has a immense affect on all retail merchants. by and large a negative 1. nevertheless with Primark’s ethos of bear downing the lowest monetary values. they are one of the few retail merchants who seem to hold benefitted from the recession. Primark reported a 14 % year-on-year rise in gross revenues to ?2 billion for the 2010 fiscal twelvemonth. This big addition was attributed to people ‘trading down in the recessive climate’ ( Mintel. 2011 )
As Primark beginning about all merchandises from abroad. the exchange rate can hold a major impact on the monetary value of garments and this can be really negative in such difficult times as a bead in the exchange rate inturn. can intend a bead in net income border.
Another external factor that has affected Primark in recent old ages. is the rise in cotton monetary values. it has meant that there has been an addition in cost monetary value for merchandises and this was later reflected in an addition in retail merchandising monetary value. One of my occupation functions is excessively guarantee that cost monetary values being offered. traveling frontward. are get downing to take down as cotton monetary values start to brace once more.
11. 0 Products & A ; Servicess
Over the old ages Primark’s merchandise scope has grown well from selling merely vesture and footwear to now offering specializer form wear garments. homeware merchandises. freshness gifts. stationary and wrapping paper. Primark cater for all age ranges and sizes and this helps pull a broad scope of consumer.
Over the past few old ages. Primark has made a witting move to busy big edifices to use the big measure of shipment bringings under one roof to finally maximise gross revenues and maintain operating expenses to a lower limit. as it is cheaper to hold 1 big shop instead than 2 medium sized shops. There has been recent guess over whether or non Primark will of all time make up one’s mind to offer on-line shopping installations. as it stands this is non something Primark would venture into as it would be more dearly-won for the consumer in either holding to pay for postage or Primark increasing garment costs to cover the postage.
12. 0 Decision and Opportunities
This study has given an penetration into the value manner retail merchant. Primark and how it has evolved as a company. Over the last decennary. Primark has incurred monolithic enlargement assisting the trade name to pave its manner as the taking manner retail merchant in the UK. With no programs to loosen up the velocity of the enlargement. Primark should increase market portion and go on to maintain presenting new merchandises to assist maintain rivals at bay. Primark is already a company of huge size with a big work force and a important shop presence both in the UK and Europe. It is good managed with the caput office in Reading managing and commanding bringings to let for right distribution when the goods enter the UK. The merchandise scope Primark offers is broad and as the UKs ‘leading value manner retailer’ they must prolong their ability to purchase cheaply in majority and sell in immense volumes. As Primark continues to spread out across Europe. it needs to keep its good repute to guarantee consumers are non loss to already established rivals every bit good as battling the menace of new rivals come ining the industry.