Primark is known as Irish fashion retailer. The company is headquartered in Dublin, Ireland. The company is the subsidiary of retail and food processing company Associated British Foods. Primark is well known international retailer which offers latest fashion, homeware, and beauty as best value. The company adds great value on high streets with simple and amazing fashion styles in reasonable prices. The company operates 370 stores in around twelve countries in America and Europe (Primark, 2020).
Every company look forwards towards growth. For portraying the alternative growth strategies, Ansoff matrix helps the company. This matrix focuses on the company’s potential products, present market, and future growing markets and products. There are four main product and market combinations discussed below. Here is the detailed Ansoff matrix of Primark.
Market Penetration
Market penetration in the Ansoff matrix is the growing strategy for existing products of the company for existing market. This means company can sell more in quantity y penetrating deeply in the market. The company can increase its market sales with this. Moreover, companies have to encourage its customers to buy more through different marketing techniques. The Primark is a famous Irish company achieved its market penetration strategy. The company has increased its sales of existing products in the current markets its operating. Primark used competitive pricing strategies, sale promotions and advertising. For example, the Primark introduced Loyalty card on certain point of purchases. This can motivate consumers to buy more from here. Primark can also provide gift vouchers like Sephora on birthdays of their customers (UK essays, 2018).
Product Development
Ansoff matrix promotes product development, where companies sell new products in the existing market. The companies increase their market share with the help of new product introduction in the current market. It can also be possible that companies are introducing different versions of the existing products, modify the current products, or introduce completely new product. Companies will create awareness among its consumer about the new introduced product, so that they can attract towards it. Primark is one of the well-known affordable company of fashion. It had introduced accessories, and shoes, along with apparel and bags for the customers in reasonable prices. in addition to this, the company offered fashion stuff for all ages. From new born to old age, the company cover the consumer base (Mohammad, 2020).
Market Development
Market Development in Ansoff matrix deals with selling existing products in the new markets. The company here seek to increase its sales and customer base by attracting different market segments. It can be geographical expansion or demographic expansion. The company uses different marketing techniques and aggressive advertising to create the market awareness. Primark can take advantage of it and it has taken it already. The company is operating in twelve countries. Primark has recently introduced itself in Spain markets with its existing products. The company can expand itself in Asian markets like China, India etc. a people there are more price sensitive. They can afford the products of Primark, as H&M, Zara’s etc. are not there. The people will prefer Primark, and company can increase its market share with great percentage. Moreover, Primark can also increase its market by targeting online sales though website. Many consumers who wants to shop can order online from the website (My assignment, 2016).
Diversification
Diversification is a growing strategy of many companies. As diversification reflects to new products of the company for new markets. This strategy helps the companies in mitigating their loss risk to greater area. This also help the company in entering in new industry. This can be the riskier strategy as businesses are moving in new and different markets. Primark can also diversify itself. It can introduce the express food and snack services in its regular stores. Like, in the Primark shop, it can offer sandwiches, snacks, juices, coffee etc. Like Debenhams did it and offers Starbucks in its stores. This will attract customers in malls to shop around or hangout with friends (UK essays, 2018).
References
Mohammad, R. 2020. Primark marketing strategy. An analysis. [Online], Available at: https://www.academia.edu/32067262/PRIMARK_MARKETING_STRATEGY_AN_ANALYSIS, [Accessed on: 19th January, 2020].
My Assignment Help, 2016. Marketing Plan (A Case Of Primark). [Online]. Available at: https://myassignmenthelp.com/free-samples/marketing-plan-a-case-of-primark, [Accessed on: 19th January 2020].
Primark, 2020. About us. [Online], Available at: https://www.primark.com/en/aboutus. [Accessed on: 19th January, 2020].
UK Essays, 2018. Strategic marketing management study. [Online]. Available at: https://www.ukessays.com/essays/marketing/strategic-marketing-management-study.php?vref=1, [Accessed on: 19th January, 2020].