Primark and H & M Strategies

Published: 2021-07-26 04:05:08
essay essay

Category: Advertising, Microeconomics

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
For this assignment I was meant to write about Primark and Hollister. I am still basing part of my assignment on Primark. But, I have changed Hollister to H & M as I was unable to find any information on Hollister The information I found on Hollister the background I couldn’t find anything about aims and objectives and how Hollister market the business. The information I found on Hollister Hollister is an American lifestyle brand.
The concept of Hollister was originally designed to attract customers between the ages of 14 to 18 as there prices are lower than the parent brand. Hollister clothing line was inspired by the parent brand SoCal. Hollister products are available in store across the world and online. Hollister was the second most preferred clothing on a list West Coast companies in 2008. The businesses I have chosen for this assignment are Primark and H&M.
Primark



Primark is an Irish clothing retailer, in Ireland Primark is known as Penneys. Primark have different store all around the world such as Portugal, Spain, Germany, the Netherlands United Kingdom and Belgium. Primark’s main headquarters are in Dublin. Primark first opened in 1969 on Mary Street in Dublin.
Primark’s mission statement:
“To supply quality clothing at prices perceived to offer real value. ”
Primark’s aims and objectives are:
To provide good quality products to customers.
Primark want customers to know that they are an excellent company which provide good products for low prices. Primark achieve this by doing tests on their clothing and product to examine the quality of the goods they sell.
Profit Maximisation

To sell products and clothing at reasonable prices.

Primark want their customers to have a variety of clothing and product at suitable prices. Primark well achieve this aim by looking at what other high street store are selling and make their prices lower so they stay ahead of their competition.

To be helpful and friendly to customers and other employees.

The customer of Primark like the atmosphere at Primark and service given this well make them to come back so therefore Primark well gain repeat customers. Primark will achieve this by greeting the customer as they walk in.
By doing this Primark employees create an excellent atmosphere for customers as the greeting makes them feel welcome.

To treat everyone the same.

A customer at Primark needs to feel that they are treated the same as any other customer at Primark. If a customer feel they are being treated differently to someone else they are more likely to shop somewhere else so therefore Primark well lose customers because the customer who thinks they were treated unfairly will tell their family and friends about their experience at Primark so word of mouth well have an impact on Primark.
H & M
H&M aims:

To show appreciation.
To encourage long-term commitment.
To promote future recruitment.
To strengthen H&M as an attractive employer.

H&M have three mean marketing objectives the three objectives are:

To make the H&M brand name more well known by doing more promotion example more advertising. The H&M brand need to be more outstandingly outside of significant cities. In the USA more people are unaware of what H&M offer.

So to gain more customers and beat their competitors H&M are advertising the brand in different way compared to their competition example H&M membership. If you are a member of H&M you can get text messages and email informing customers about the newest product H&M have. The H&M brand need to be well known as the more people know about the brand, the easier it is to expand such as more stores in more countries.

To focus on the fact which H&M’s regular sale prices are usually lower than their competitors.

The second objective of H&M is to focus a percentage of the advertising to the fact that H&M average sale prices are more regularly lower than their competition. H&M rely on nonstop focus on cutting cost. Also the officials in H&M buy the materials as cheaply as possible; H&M also need to keep their overheads low. All the advertisements focusing on H&M’s low price but good quality products. This helps keeps the H&M’s brand image in a positive light among their teenage customers while still stating that they are good value for money. To use economic slowdown as a possibility to expand by obtaining more low – cost venue and prepare for future economic growth. H&M want to expand in the USA by securing low cost venues. As the economic property market gets worse H&M which leases it’s will find it more straightforward acquiring prime locations at excellent period. This will give H&M an advantage when the property market picks back up. H&M use the opportunity to expand to low - priced venues for the future climb in the brand There are similarities in the way Primark and H&M market their products for example jeans.
Primark market their new collection of jean on the internet by having “pop up” advertisements on line for example on if you have an email contact sometimes there are advisements. H&M advertise the same way as Primark but they also have television advertisements advertising for example a new pair of jeans. Also if you’re a member of the H&M you get emails to your email address informing the receiver about any new collections. Primark do give got leaflet or fashion books with the season’s current fashion in which can be found at the store.
H&M do give their customer leaflets and booklets informing them of the season current fashion which H&M sell in store. For example the leaflet or booklet could be about all the different types of jeans H&M sell. It is also type advertising. If Primark were to give their customers leaflets and booklets they would gain more customers. H&M do competitions but H&M customers are only allowed to enter the completion once they have spent a certain amount of money at their store or on line.
Primark don’t do competitions as their purpose is to gain customers by selling products cheaply. H&M give out vouchers to their customer and also do discounts at the end of season on their clothing this is a great marketing strategy because the customer knows that H&M want to make a profit but they also take the customers The two marketing tools Primark and H&M use are Market Penetration and Market Development. Market penetration is used in Primark and H&M. For example Primark and H&M sell clothing such as jeans tops dress coats jackets e. . which are existing products to existing markets. Using market penetration is a marketing strategy which the aim is that Primark and H&M Primark and H&M both use market development because the aim of market development is to sell existing products into new markets. Primark and H&M have opened store around the world. H&M also distribute clothing in different ways. Example they have an order before 3pm and you get the product you ordered the next day. You can also order online and collect at the store which is local to you.
Market development is a dangerous strategy compared to market penetration because market development target new customers and markets. To conclude this report I think that branding and (something else) are need in Primark and H & M in order for the business to be successful. Marking strategies are key in business in order to give the business structure. Introduction to Marketing – The Effectiveness of Marketing Techniques used by H&M Market penetration are customer know purchase a product.
For example if someone was to purchase a limted edtion Anna Dello Russa at H&M . The market would be people in the UK who like limted edtion Anna Dello Russa at H&M. H&M would grow by the rising number of people in the market who have bought the dress at H&M. Market development is when a business sells an existing product to new markets such as new customers. So in the example of the a limted edtion Anna Dello Russa at H&M. H&M could sell limted edtion Anna Dello Russa Rangein America.
The product wouldn’t have changed, the prouct is just being sold to a different market to different customers. One of the advantages of using market penetration is that H&M would offer lower prices for a specified period to attract new customers. The customers might not respond when the normal price returns. But during that period they will get more customers. A disadvantage of using market penetration is that it could result in reduced profitability. As when using market penetration H&M reduce pricing meaning they may result in profits being low.
If H&M were to launch a new range the result in sales may not cover the adversiting coasts and distribution costs. As market penetration seeks to achieve four main objectives what are:

To maintain the market share of current products.
Secure dominance of growth markets.
Restructure a mature market by driving out competitors.
Increase usage by existing customers. The advantage market penetration is that it can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and personal shopper.

H&M do all of the strategies listed above they adviste on telvision and online and in local area by posters. For the more high end people they even offer a personal shopper service. H&M use market penetration to adviste the business to make it more known for example when H&M advertise they are letting there customers know what products they are selling H&M uses another objective of the market penetration to their advantage by increase usage by existing customers by having a loyalty scheme.
H&M offer a store card to their customers when their customers use the store card they get discounts on certain products in the shop. It identifies what customers want. Market development indenties what customers want. Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.
There are many possible ways of approaching this strategy, including:

New geographical markets; for example exporting the product to a new country
New product dimensions or packaging: for example New distribution channels (e. g. moving from selling via retail to selling using e-commerce and mail order)
Different pricing policies to attract different customers or create new market segments Market development is a more risky strategy than market penetration because of the targeting of new markets.

The advantage of using market development is that H&M sell products such as clothing that all ready exists to new customers/ markets. Another advantage of market development is that H&M are selling clothing to new customers in different countries.
The disadvange of doing this is that ecomic changes can happen in the countries which H&M have expand to meaning that they will therefore may lose money and their share holders divident can go down. The disadvange of using market development is that it is risker than using market penetration.
 
References

Bevan, John; Coupland-Smith, Helen; Dransfield, Rob. BTEC Level 3 National Business, Book 1. http://www. penetrating. net/ http://www. s-m-i. net/pdf/Business%20strategyntro. pdf

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read