Critically analyze the marketing mix of Primark
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The report examined the impact of the coronavirus pandemic on the marketing mix of Primark with a focus on place and promotion. These two mixes were chosen based on the fact that the pandemic led to the closure of many physical stores (place) and disrupted the promotional activities of many retailers as evidenced by the decline in advertising spend among clothing retailers. Unsurprisingly, results showed that Primark’s brick-and-mortar business model was heavily impacted by store closures. Without an online outlet and distributional, Primark lost an estimated £1.5bn in revenue from forced store closures in the six months to February 2021 with a further projected £480m impact in the second half. While Primark adapted its physical stores for reopening, most of the changes were temporary safety-related adaptations except the emphasis on contactless payment which is likely to stay permanently post-pandemic.
The area of promotion did not see much change post-pandemic primarily because Primark does little advertising. Before the pandemic, much of the promotion was done through in-store sales and marketing, and digital communication. With stores closed, the retailer relied only on social media promotion to keep customers engaged and all indications show this is likely to stay this way long-term.
The findings thus showed that the pandemic did impact and alter the marketing mix of place and promotion but only to a little extent. This is because Primark’s focus on bricks and mortar retailing is unwavering. However, if the company is to stay competitive in the age of online retailing, then the best recommendation is for it to make its physical retailing environment very experiential for customers perhaps including elements of digital technology such as visual displays or any technology that drives merchandise offer decisions or engagement.
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A critical evaluation of Primark's marketing mix Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the impact of COVID-19 on the marketing mix of Primark
- Critically analyze an organization's marketing mix and how effective it is in supporting its success
- Understand the elements of the marketing mix and apply them to a real-life company
1.0 INTRODUCTION
Primark is one of the leading fashion retailers in the UK. It has experienced exponential growth over the last 10 years, growing from the fourth biggest fashion retailer in 2007 to currently second in the UK, just behind Next in terms of market share (Annual Report 2019; Mintel 2020). However, 2020 was a tough year for Primark compared to many peers. Its revenue for 2020 was £5.8billion down from £7.7billion in 2019 while operating profit fell to £362million in 2020 compared to £913million in 2020. Primark lost an estimated £1.5bn in revenue in the six months to February 2021 with a further projected £480m impact in the second half, if covid related lockdowns and restrictions continue (Jahshan 2020; Eley and Nilsson 2021; Butler and Jolly 2021).
According to Mintel (2020), this is because the appetite for clothing declined dramatically because people have felt little need to update their wardrobe. The sector saw retail revenue decline by 32% due to store closures. In the following sections, the report examines at least two elements of Primarks marketing mix that were impacted by the pandemic, how they were impacted, and how Primark has adapted them in response to new trading challenges.
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