Primark – Internationalization

Executive Summary
Primark's entry into the Indian market is the subject of this research, which examines the
company's plans for global expansion. As a representative example of a well-established textile
retailing sector, India has been selected to host this event. It has been determined that the
company's entry into a new market will be a success by doing extensive study into its internal
and external environments. The host country's physical, political, economic, and socio-cultural
characteristics have also been examined in order to better understand the dangers and potential in
the Indian marketplace. After doing a thorough examination of the brand as well as the target
country, suggestions and conclusions will be provided about internationalisation.
Table of Contents
Executive Summary .........................................................................................................................1
Introduction ......................................................................................................................................2
Overview of Primark’s Background .................................................................................................2
Brief company history ..................................................................................................................2
Internal Environment Analysis .....................................................................................................3
Primark’s Business Structure and Management .......................................................................3
Market Potentials......................................................................................................................3
External Environment Analysis ....................................................................................................3
Previous Expanding History.....................................................................................................3
Risks Involved Concerning Entering India ..............................................................................4
Host Country Analysis .................................................................................................................4
Macro-environment Analysis of India......................................................................................4
PEST analysis...............................................................................................................................4
Political ....................................................................................................................................4
Economic..................................................................................................................................5
Socio-culture ............................................................................................................................5
Technological ...........................................................................................................................5
Marketing of IKEA ......................................................................................................................5
Target consumer .......................................................................................................................6
7Ps of marketing ..........................................................................................................................6
SWOT analysis.............................................................................................................................7
Strengths ...................................................................................................................................7
Weakness..................................................................................................................................7
Opportunities ............................................................................................................................7
Threats ......................................................................................................................................7
Local culture of India ...................................................................................................................8
International marketing strategy...................................................................................................8
Entry Modes .................................................................................................................................9
Factors Affecting Internationalization ..........................................................................................9
Global Marketing Program.........................................................................................................10
Recommendations ......................................................................................................................11
Conclusion......................................................................................................................................11

Introduction
PRIMARK, the world's most cheap retail shop, had its start in Dublin, Ireland, in 1969. ABF, a
British food production and retail corporation, owns the company (Arriaga et al, 2017). Arthur
Ryan, the company's creator, was instrumental in bringing catwalk fashion to the masses at a
reasonable price point. In addition to clothes for ladies and men, Primark also has a wide range
of children's clothing, homeware, accessories and shoes. The company's key expertise is the sale
of clothing at lower prices. 390 Primark retail locations are now open or under construction in 12
different countries. The company's recent success has positioned it as one of the UK's top
garment manufacturers (McColl, & Moore, 2011).

Expanding into the Asian market, especially India, which is among the most promising markets,
would help Primark gain a foothold in worldwide fashion. Because it is a growing nation with
enormous potential, India is an ideal market for Primark's clothing line. Having 128 Indian
factories under their belt, Primark has a wealth of industry experience (Robson et al, 2015).
Understanding the Indian market requires knowledge of the country's culture. The Hofstede
model will be used to accomplish this task. According to Geert Hofstede's Cultural Dimensions
Approach, which he developed, a country's cultural differences may be identified using this
model. It's important to know this in order to better understand the shopping habits and attitudes
of Indians in the Primark clothing market.

Primark has two options for entering the market: as a joint project or a totally owned subsidiary
of another company. Because Primark has no prior experience in the Asian market, a joint
venture plan would allow them to better integrate with their domestic company and get a better
understanding of the current fashion trends and tactics for selling their products in the country.
Primark will be able to easily develop its clothing business in India as a result.

Overview of Primark’s Background

Brief company history

Primark was originally known as 'Penneys' when it was formed in Ireland in 1969. With over 275
locations in nine European countries and over 47,000 employees, the firm is well-known for its
on-trend products and inexpensive rates. Primark's 2014 goal statement, "the newest style
without breaking the bank," has fueled the retailer's fast growth. When compared to its
competitors, H&M & TK Maxx, Primark's interest is expanding and is typically greater, as seen
in the line chart above. According to industry estimates, the firm is one of the top fashion
merchants in the United Kingdom (Arslan et al, 2019).

Internal Environment Analysis

Primark’s Business Structure and Management

A well-managed strategy system is essential for retailers to retain their leading positions in the
clothes retail business, and Primark must constantly review its 4Ps marketing plan 'product,
price, promotions, and location' in order to keep up with the changing expectations of consumers
(Snowdon, 2014). When a corporation expands its product line, the management system
maintains the rule of a manager hierarchy, with different officers responsible for customer
service, sales, and support sectors (Primark, 2014).

Market Potentials
Mr. Weston, the CEO of ABF, discussed Primark's worldwide development in 2015, and he noted
that this is not the desire of success that drives them, but rather the offering of a perfect
opportunity. Due to ABF's (Associated British Foods) massive financial clout, we know that
Primark isn't fighting alone. According to the experts, ABF's annual results for the whole group
aren't as excellent as they were supposed to be. A rise in Primark's earnings of 2% to £673
million is being followed by a poll that shows customers are too dissatisfied with the company's
online and also in services and goods given. Primark (Biswas, 2015). Fresh blood is needed in
the body since customers are losing interest and loyalty, and internationalising in nations like the
United States and India is a major factor.

External Environment Analysis

Previous Expanding History

Primark is expected to build its first shop in the United States in 2015, and it is widely expected
to succeed rather than repeat the failure of previous UK retailers in the United States (Ruddick,
2014). Primark has successfully extended its business throughout Europe in the last several
years, from Spain, England, and France to Germany and the Netherlands. To dominate such a
wide market, one 268-store chain has succeeded. Customers in the United States are more likely
to accept apparel businesses like Topshop and ASOS than supermarket stores like Tesco, M&S,
and Sainsbury's. As a result, Primark has decided to open a 71,000 sq. ft. shop in Boston, a
success that can't be ignored by its rivals. Primark's success has been attributed to intensive
research undertaken before Primark's entry into a new marketplace (Collinson et al, 2020). With
Zara and H&M, Primark's CEO George (2013) believes that a mix of low prices and high fashion
style in a classy setting would attract their target clients.

Risks Involved Concerning Entering India

In order to maintain its competitive edge, Primark relies on a number of factors, including its
effective supply chain, cheap manufacturing costs and great human resources, as well as its large
shops and complaints-handling procedures (Verbeke, 2013). When contemplating expanding into
a new market, such distinct advantages might be readily removed. Primark has identified India as
a potential market for expansion, but more investigation must be done before that can happen.
Additionally, as Primark prepares to enter the Indian market, the company must consider the
competition it will face. Large retailing chains like H&M and Zara, which have similar low-cost
principles and fashion sensibilities, look to represent the largest danger to the company's
existence. Primark's leadership position is unlikely to be threatened by smaller or medium-sized
rivals, given the company's size (Cook, 2018).

Host Country Analysis

India, the world's biggest democracy and a fast-growing economy, is an attractive market for
foreign firms and investors. In the last few years, the country with more than a billion people has
seen a big rise in economic growth. It now has the fifth-largest GDP in the world. In fact, India's
GDP has grown at the fastest pace in the world during the last decade, with a yearly increase of
6% to 7% (Eisenberg, 2019).

The recent expansion of India's economy has been exceptional. Indian macroeconomic stability
has improved as a result of a strong democratic system, important structural reforms, increased
private consumption, and an increase in government investment, according to the World
Economic Forum's (WEF) Global Competitiveness Index. India scored 90 points out of 100 and
was ranked 41 out of 141 economies, according to the WEF.
In terms of technological innovation, India has emerged as a major player. Companies in
industries like as telecommunication, information technology and pharmaceuticals are
comparable to their worldwide counterparts when it comes to complexity and significance.
Indian technology is currently considered to be on par with that of the China and the United
states as a key force in global technological innovation (Frei, 2021).

India has a lot of middle-class people, which makes it a good place for people to buy things.
According to the World Economic Forum's Global Competitiveness Index, India is the world's
third-largest economy in terms of market size for products and services.

Macro-environment Analysis of India

PEST analysis

Political
It's important to highlight that India is a modern democracy with a civil law system in place, and
it has traditionally been a country that has paid close attention to the integration of its economy
and politics (Molitor, 2019). Maintaining political ties between India and your home nation is
consequently critical for businesses to keep a close eye on. A number of international
organisations include India as a member state as well as United Kingdom as an observer,
including the United Nations, World Trade Organization, and North Atlantic Treaty Organization
(NATO). Because of India's distinct political and legal structures, Primark has been unable to
penetrate the country's market due to high taxes, inefficient processes and the justice system,
corruption, and complex rules.

Economic
With a GDP of €1.58 trillions in 2014, it ranks as the world's 8th biggest economic group by
nominal GDP (Export, 2015). While the northern region of India contributed to its industrial
growth, the northern section also plays a significant role in agriculture, tourism, and
manufacturing in the country. There is a rising problem of unemployment among women and
teens in the southern part of the nation. As can be seen in the line chart below, the country's
overall GDP and growth rate are improving despite the global downturn (Buckley, & Ghauri
2014). Despite these difficulties, the Indian economy offers several advantages, notably the
country's relatively inexpensive cost of labour in comparison to that of other nations. Low
buying power and severe unemployment plague Primark as it expands internationally.
Socio-culture
When a company expands its operations outside of its home country, local social and cultural
norms must be taken into consideration. If you want a successful business, it's important to
consider the notion of cultural taboos. Since the majority of Indians are Roman Catholics,
cultural considerations such as smoked etiquette, cell phone etiquette, regional pride, and sense
of humour should be taken into account before entering the Indian market for any product or
service (Cavusgil et al, 2018). Customers' views will be influenced by a variety of factors,
including the manners of personnel and the ideas of products. More mature aesthetic standards
may be attributed to a 10-year obligatory school regime and a high college graduation rate
among the Italian population. Milan's well-known art schools & fashion shows have shown this
to be true. Primark's decision-makers should take into account not just the country's
socioeconomic trends but also the public's preference for fashion while making their decisions.
Italians' similar fashion preferences and insistence on'made in India' made it more difficult to
strike a balance between possibilities and obstacles, since fashion is a vital aspect of their
culture. The key to opening the Indian textile retailing business is to adapt their cheap pricing
policies to the current fashion trend in India (Parboteeah, & Cullem, 2019).

Technological
Competitors in India's Primark might be boosted by new technology, innovation, R&D activities
and other factors. Firms might lose market share, revenues, and etc because of the rise of e-
commerce. However, India's technology infrastructure is up-to-date and relevant (Agnihotri, &
Bhattacharya, 2020).

Marketing of Primark

Target consumer
As a result, Primark caters to customers who are looking for both high-quality and low-cost
apparel at the same time. However, keeping demographics in mind, the company's primary
clientele are those between the ages of 16 and 30. Primark's most important consumers are the
price-conscious members of the middle class. The company aims its sights at 11 nations in order
to target the specific clients it wants to reach.

7Ps of marketing
The product, pricing, location, and promotion characteristics of Primark's marketing mix are
discussed here.

Product Menswear, womenswear, childrenswear, accessories, footwear, hosiery, &

homewear are just a handful of the many items sold at Primark. Such things
are more affordable, of higher quality, and of more value.

Price One of the most notable aspects of the Primark business is its price approach.
Actually, the firm in question provides high-quality, fashionable goods at
reasonable pricing. In reality, the company's cost-cutting activities and
economies of scale enable it achieve its cost leadership goal (al Habibi, 2019).

Place Primark has over 360 locations in 11 countries globally. The company in
question has 14,805 (sq ft 000) of retail space. The items of this company
are not available for purchase online.

Promotion Word-of-mouth advertising is an important strategy for Primark to sell the

company in general. Social media sites (such as Instagram and Facebook) are
also important tools for building consumer loyalty and brand affinity for the
aforementioned company. In order to provide clients with high-quality
services as well as a wide selection of products, Primark's shops use a smart
strategy and design (infrastructure).

People Employees and management at Primark shops are highly effective for the
company in increasing consumer satisfaction/experience throughout the
shopping process.

Process Primark focuses on streamlining its processes to ensure efficient operations

and a seamless shopping experience for customers. This includes aspects
such as inventory management, checkout processes, and store layout
optimization. By optimizing processes, Primark aims to minimize wait
times and enhance customer satisfaction.

Physical Physical evidences, such as stores, word of mouth, employees, and

Evidence salespeople, are good ways for customers to improve their brand awareness
as well as equity in the society by making them more aware of the company.
 • Product: Menswear, womenswear, childrenswear, accessories, footwear, hosiery, &
homewear are just a handful of the many items sold at Primark. Such things are more
affordable, of higher quality, and of more value.
• Price: One of the most notable aspects of the Primark business is its price approach.
Actually, the firm in question provides high-quality, fashionable goods at reasonable
pricing. In reality, the company's cost-cutting activities and economies of scale enable it
achieve its cost leadership goal (al Habibi, 2019).
• Place: Primark has over 360 locations in 11 countries globally. The company in question
has 14,805 (sq ft 000) of retail space. The items of this company are not available for
purchase online.
• Promotion: Word-of-mouth advertising is an important strategy for Primark to sell the
company in general. Social media sites (such as Instagram and Facebook) are also
important tools for building consumer loyalty and brand affinity for the aforementioned
company. In order to provide clients with high-quality services as well as a wide selection
of products, Primark's shops use a smart strategy and design (infrastructure).
• People: Employees and management at Primark shops are highly effective for the
company in increasing consumer satisfaction/experience throughout the shopping
process.
• Physical evidences, such as stores, word of mouth, employees, and salespeople, are good
ways for customers to improve their brand awareness as well as equity in the society by
making them more aware of the company.

SWOT analysis

Strengths
Primark is a major player in the retail clothes market because they provide throwaway fashion at
a lower price than its rivals. During the recession of the previous decade, the cheap prices
attracted a large number of people. With these low costs and the company's connection to current
fashion trends, cash-strapped clients were drawn in. This has resulted in a massive increase in
sales and profits for Primark.
Weakness
Increasing awareness among the public on the possibility of problems in the fast fashion cloths
brands: Especially following the Rana Plaza 2013 disaster, where Primark along with some big
names in the industry were implicated with the death of some workers, such an incident attracted
a negative consumer perception on Primark merchandises. Secondly, suffers from the perception
that most of their merchandises are more basic rather than trendsetting or even stylish. Another
major weakness is the overreliance on the United Kingdom’s market and somehow forsaking to
invest by promoting more in other parts of the lobe where it has set up shop. Finally, Primark
suffers from having an online presence. Most companies are investing more on the internet
presence either through advertisement or ecommerce. Primark does not sale its products online
which is among the reason why it has not enjoyed a global dominance (Ortega, 2017).

Opportunities
Primark continues to focus in the European market by opening more stores in major cities like
Lisbon, Cologne, Madrid Vienna among others. Such cities present an opportunity for more
growth. Likewise, Primark has conducted a lot of research in other continent like the US, and the
launch of the product in these continent will also increase its revenue. At the same time, the
recent introduction of sport wears as part of its products has become one of the fastest selling
merchandise among their collections.

Threats
The recent Brexit saga is posed to be the biggest threat facing most UK companies that enjoyed
the European market. Although the effects are not quantized, there are foreseen problem with the
UK exiting the European Union, which could have adverse effects on the companies during the
transition. Other threats that have been in existing are the presence of competitor, like H&M
among other, who are in the same clothing retail industry (Duff, 2017).

Local culture of India

The Northern areas of India are the industrial "engines" of the Italian economy, which has a
diverse industrial industry. Food, textiles, machinery, steel and iron, apparel, footwear, and
ceramics are some of the most important industries. South-to-North economic disparity is
particularly pronounced, with the southern regions of the country relying heavily on small
agricultural and industrial businesses as well as the tourist industry to keep things going. Among
women and youth, unemployment is particularly prevalent. Food, notably olive oil, wine, drinks,
textiles and clothes, machinery, automobiles, transportation equipment, chemicals; mineral and
nonferrous metals are some of the primary exports from the south.

Traditional rituals, religious beliefs, political ideologies, technological advancements, and

artefacts all trace their ancestry to the ethnolinguistically varied Indian subcontinent, which is
considered the cradle of Indian culture. To describe places and civilizations that have a
significant historical link to India, such as Southern Asia, the phrase "Indian culture" might be
used. Different regions of India have their own distinct dialects, religious practises and artistic
expressions to go along with their own cuisines, architecture and other aspects of daily life
(Biswas, 2015).

For millennia, the Indus Valley Civilization as well as other early cultural locations have had an
impact on Indian culture, which is generally referred to as a mixture of various different
civilizations. The Indosphere, Greater India, and the rest of the globe have been profoundly
influenced by many aspects of Indian culture, including Indian religions, mathematics,
psychology, cuisine, linguistics, art, music, and film. The influence of Southeast Asian or
Himalayan cultures on early India had a lasting effect on Hinduism and Indian myth.

International marketing strategy

Market opportunities, a flexible or adaptive marketing mix (i.e. the product, marketing messages,
sales campaign and coordinated price) as well as essential micro and macro variables of the trade
should all be considered by businesspeople when developing a worldwide market strategy. But
the most important aspects of marketing managers' efforts to win the international market are the
means of entrance, market segmentation, and the specific target clients (Molitor¸2019).

As a result, Primark looks to be experiencing difficulties in India with regards to trade promotion
or direct marketing. Despite the fact that its advertising rules are governed by a law system that
is almost faultless. As an EU member, you are entitled to additional legal protections under
Indian law (Arslan et al, 2019). Instead of looking for ways of collecting and analysing consumer
information via distributors or agents, companies should concentrate on the completeness or
quality of information they are trying to provide to their target customers. Primark also has to
make savvy use of web promotion as one of its most significant marketing strategies. In India,
the distribution & sales channels are discovered with few difficulties and no major issues. To
newcomers, the marketing quality and retail system are quite known, and the latter applies
mostly to medium-sized businesses.

Entry Modes

The future success of a business is often predicated on its ability to successfully market - entry
with the best plan possible. Businesses that want to join the Indian market must build personal
ties with their partners, suppliers, and consumers (Collinson et al, 2020). Finding the proper
partner, commercial agency, and advertising in Italy is vital. Despite the fact that the European
Union has been crucial in the development of corporate internationalisation in India, finding an
agent or distributor wasn't the most efficient method to do so. It's best to collaborate with
partners with a well-established network of contacts that can assist Primark connect with local
businesses. To be eligible, candidates must have a thorough understanding of the distinctions
between local market laws and ordinations and those found in the United Kingdom. It must also
be familiarized with Primark's former working method in the UK and other trial nations, as well
as its innovations. The project may take longer than anticipated and encounter more difficulties
than the organisation had anticipated. Product exchange meetings, market consultation and
assistance, and teleconferences are some of the services the UK commercial group provides to
British businesses in neighbouring countries (Ghemawat, 2003). Primark's entry into the Indian
market might potentially be assisted by the European Union and other commercial unions.

Factors Affecting Internationalization

Particularly in the fashion business, India has now been regarded as a complex as well as mature
market. Competition from both domestic and international markets, as well as a number of
factors that need to be considered before making specific plans, will face Primark's newcomers
(Shawcross, 2014). It's a complicated business in the Italian textile retailing sector because of the
wide range of fashion brands available. The fashion sector in Italy is dominated by medium-sized
businesses, which account for 77% of total earnings and 68% of GDP (Ormrod, 2014).
Environmentally friendly goods and corporate social responsibility (CSR) policies are put in
place to foster the growth of these enterprises. Primark's prospects of success may also be
influenced by the e-commerce sector (Frei, 2021). Primark seems to have disregarded the internet
market for a long time, and no new plans are in the works to explore this new frontier.
Regardless of whether it sells digitally or not, Primark is still the leader in the domestic clothing
retail sector, and that must be recognised. Primark, on the other hand, has been able to develop
both domestically and internationally as a result of this untapped market. Because of online
credit card fraud, loss of belief in transportation, and a few earlier successful instances, e-
commerce in India is still relatively underdeveloped compared to other industrialised nations,
according to Euromonitor (2014). However, in India, the internet is widely utilised as a means of
spreading information. A look at the pie chart shows that the fashion business is one of the least
developed in the e-commerce market as a whole.

Global Marketing Program

Adaptation versus standardisation of the Promotion Mix In reality, overseas markets are tied to
issues such as market heterogeneity, resources and infrastructure, unbranded competition, as well
as socio-political governance, to mention just a few of the complexities involved. Since the
globalisation has made the demands, wishes and preferences of consumers all over the world
similar to a great degree, some researchers believe that standardization/adaptation is essential for
international companies (Eisenberg, 2019). For the sake of marketing, uniformity can only be
applied to product themes. In order to meet the demands of a wide range of clients in
international markets, pricing, marketing, and location all need to be adjusted or adapted. The
firm's competencies and real and intangible resources are critical to the success of the
organisation when it comes to standardizing/adapting the marketing mix. As a result, Primark
should focus on standardising and adapting the marketing mix in order to enter the Indian
markets (Benito, 2005).

For example, the dynamic of the Primark product line should be harmonised to match the UK
market. As with price, the company in question should tailor its pricing approach to the Indian
market. Because of this, commerce may be able to use regional pricing, price discrimination, and
so on as a result of this price adaptation. Such pricing strategies might easily propel the company
to the next level. When it comes to product distribution or placement, however, the marketing
mix's place dynamic is concerned. To succeed in this industry, a well-thought-out distribution
strategy & distribution networks are essential. In India, Primark should use a high level of
flexibility when it comes to its marketing mix. For Primark, India represents an untapped
opportunity (Parboteeah, & Cullen, 2009). As a result, Primark's use of the cooperative alliance
entrance approach might serve as a roadmap for the retailer to obtain significant market share in
India (Gómez Bernat, 2019). Likewise, according to the literature, the company should adjust its
advertising techniques in the new areas to fit the local conditions. As a matter of fact, the new
bazaar's customer-focused marketing approach may provide a path for the aforementioned
corporation to successfully market its trade. In other words, standardisation would ensure the
attainment of the marketing objectives for all three variables mentioned above: the process, the
people, and the tangible proof.

Recommendations

Before Primark decides to enter a new market, it needs to make very detailed and well-organized
plans. This is because there are a lot of risks and barriers that Primark will have to deal with. The
company's expansion into India, as well as the entry of other comparable enterprises, may be
used as case studies for this analysis and investigation. As a result, examples of both failures and
successes are necessary. Researchers found that Primark would be better served by learning from
India's local fashion taste rather than slavishly copying its old style from Britain, as detailed in
this article. The marketing and advertising sector's alliance system is critical to the company's
success. Overall, Primark's internationalisation process is far from complete, and each phase
must be focused to the fullest extent possible if the retailer is to accomplish its ultimate goal of
global success.

Conclusion
By becoming the second biggest fashion brand in the UK, Primark has shown that it can go
outside the local market. There are several reasons for the company's rapid growth, including
prospects overseas and a saturated market in the UK. The choice to foster the company's
internationalisation and so develop a value-added operational chain throughout Europe and
around the globe is unquestionably a good one. The survey and PESTLE study of India's host
nation have confirmed its strong chances of success in India's textile retailing market on the basis
of apparent social and cultural advantages. Primark's success has been bolstered by the
company's prior forays into other EU nations, such as France and Germany. In theory, India was
preferable to other target nations in Asia and South America due to comparable market
promotion methods and cultural backgrounds.

To put it simply, Primark has to enter the Indian market in order to grow its company. Primark, in
fact, has a viable business strategy and adequate financial resources to support its operations. The
mentioned brand also engages in a broad range of marketing activities. In reality, the company
serves middle-class and price-conscious customers between the ages of 16 and 30 with valuable,
top-notch, and current fashion at reasonable costs. Alternatively, India is among the world's most
important and promising trading countries. To put it another way, retail in India is a burgeoning
and profitable business. According to one study, retail sales in India surpassed $1,561.6 billion in
2017. Similarly, the clothing industry's future seems promising. For example, in 2017, the Indian
clothing market was valued at around USD 31.44 billion. Another advantage of India is the
country's solid political, social, and technical foundations. As a result, Primark should focus on
the Indian market to offer menswear, womenswear, shoes, hosiery, children's clothing as well as
accessories and homewear. Adaptation is required for the marketing mix themes of location,
promotion, and price. But in India, standardisation works well for products, people, physical
evidence and process dynamics. In this case, Primark will get the best return on its investment
with this unique marketing mix.
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