Feasibility study of the Primark company in the French market

Résumé du document

Primark, subsidiary of Associated British Foods, is a well known retailing Brand in clothing founded by Arthur Ryan, actual chairman.First headquarters were located in Ireland, where the brand was born as Penneys. The first store opened in 1969 in Dublin. 1973 opened the first store in UK. Nowadays, Primark count 194 stores in 7 countries: 138 in UK, 38 in Ireland, 14 in Spain, 1 in Portugal, Germany, Belgium and the Netherlands. (www.primark.co.uk/aboutus)This brand became more and more successful through years. Today, it is well known around UK and Ireland.

Primark fits everybody, as they are well diversified: clothes for men, women, children (sportswear, casual, smart), but also shoes, accessories, lingerie, cosmetics and home items.(www.primark.co.uk/Our_Products). The company opened 41 stores in 18 months. Its turnover was £1.933 billion in 2008, and sales are constantly increasing even during the recession (a 19% raise of sales within the last 4 months of 2010, (The Guardian, 2010)). Maybe even more during the recession, as Primark sell cheap clothes and defines itself as “fashionable clothing at competitive prices”.

Extraits

[...] That is to say people consume differently but still in equivalent amounts: they are looking for good deals, cheap clothes at good value Primark sell good quality, cheap clothes, which still remain popular regardless of the recession. Socio-cultural factors which influence potential customers' behaviour: Shopping is a popular recreational activity in France: after-work or Saturday shopping are well developed. On average of monthly income is spent on clothes and shoes. French people spend around twice as much money on clothing as other CLIFE countries, a consistent trend over the 1995-2007 period. (GMID) Since August 2009, stores are allowed to open on Sundays in big or tourism areas. [...]

[...] The company opened 41 stores in 18 months. Its turnover was 1.933 billion in 2008, and sales are constantly increasing even during the recession 19% raise of sales within the last 4 months of 2010, (The Guardian, 2010)). Maybe even more during the recession, as Primark sell cheap clothes and defines itself as “fashionable clothing at competitive prices”. Indeed, Primark's competitive strength is the Price thanks to a low cost producer strategy: they make clothes with simple design and fabrics in the more popular sizes, order huge stocks and they don't operate any advertisement. [...]

[...] The study of Jacobi and lson in showed that the price offered by the company should reach the consumer's expectation to encourage the purchase. After identifying quality of a product or a service, the consumer has his own opinion about an expected price: that is called the psychological pricing. Clothes are durables goods, that is to say it's not about an instant experience: quality can be evaluated during the post purchase experience. That makes the price even more difficult to consider. [...]

[...] BUSINESS REPORT - Feasibility Study About Primark : A - Analyse of the potential market I - Country choice: Why is it a good country to enter? External Analysis Political, Economical, and Social factors: The Clothing market A macro environment analysis: II- Demand Analysis: III- The current supply side: Is there a gap in the market? IV- Market Entry Strategy. How to enter the market Marketing Plan Adapt the product to the local market : II- Pricing Strategy: III- Distribution Strategy: IV - Communication and Promotion: Conclusion and Recommendations: References: APPENDIX: Word Count: 3232 About Primark : Primark, subsidiary of Associated British Foods, is a well known retailing Brand in clothing founded by Arthur Ryan, actual chairman. [...]

[...] Italy also has huge oil reserves, the third largest in the EU. Italy also belongs to the group of eight Social: In 2009, adult literacy is 99%. Italy counts 48.6 of men of women. Unemployment is also an issue in Italy: in 2009, expected to grow up to in 2010. More than 20% of the population is aged more than 65, which will create fiscal problems in the long term, boosted by the raise of pension and health spending to cover The Clothing market a macro environment analysis: France: Accessibility: In France, there are 3 levels of VAT. [...]