Primary might have moving form a low cost strategy to a differentiation strategy 1 5 One problem Primary may have moving from a low cost strategy to a differentiation strategy is problems in changing their brand perception. Primary’s motto “look good, pay less”- will be heavily affected, by Increasing prices It will have a direct Impact of Its motto and mission statement – “enrich the life of everyone with fashionable clothing regardless of social status”.
Primary will have to adapt to new market strategies In order to maintain the Interests of their customers. They would have to Increase promotion strategies In-order to compete with their competitors, this will therefore Increase output costs, and In order to malting their profit margins Primary would have to push the output costs to their customers by Increasing their products prices. His strategy t can push consumers to look elsewhere for better quality products and make their money worth it, revenues are likely to decrease as demand for cheap products decline as reference to the article “soaring cotton costs are likely to end the days of rock-bottom prices for T-shirts and jeans” output costs are increasing therefore explains the reason why Primary is seeking to change its marketing strategy however this will increase competition with other brands such as H and gives less freedom of pricing their products as they would have to adapt to competitors prices in order to maintain its profit margins and customer loyalty.
Primary is famously known for producing cheap products changing their marketing strategy from moving to a low cost strategy to a differentiation would change the perception of their brand They would have to change their mission statement in order to meet differentiation strategy and this explains the disadvantage of Primary moving to a differentiation strategy as it would lead to encounter more costs and to change their perception of the brand will take time.
Primary wanting to move from a low cost strategy to a differentiation strategy would surely take some time in-order for the business to adapt to new strategy. This would Include excess market research. Primary may have to re-locate into areas where peoples disposable income is higher which again will take time. Primary would have o provide better service this would Include better training for staff which would take time In recruiting employees whom have a wider range of skills In-order to meet customers’ needs.
At the moment employers In Primary are not paid as much they are De-motivated and have a minimum level to progress this therefore encourages one to look elsewhere for a Job. Training staff to provide better service will take time and money but a better service and happy customer will ensure customer loyalty maintains. Furthermore changing the perception of the brand will take time money and effort as mentioned earlier. This will therefore mean for Primary to trade a low cost strategy for some time until it is ready to progress to a differentiation strategy. Fermentation strategy Primary is increasing competition and would have to be aware of competitor’s threats. Primary will not be known for producing “cheap” material. Primary will be Judged on quality and may also have to change suppliers. Recently there has been a new H store open on kings street right beside Primary competition is tough and new strategies would have to be adopted if Primary is considering to move to a strategy which has a lot of competition.
Primary was redirected for using cheap labor however this method meant that clothes were produced cheaply which enabled them to price cheaply and thus increased revenue as well as profit margins. However as cotton prices are rising due to the “floods in china and Pakistan” Primary is not the only retail company whom is inspired to increase their prices, Primary is not the only one affected, “Next, H&M, Levi Strauss, and Wonderers owner Handbrake have also raised similar concerns”.
This means that Primary’s pricing strategies would need to be based on their competitors, a different strategy which Primary can do and which is favorable to consumer impugners whom urged that retailers should not use Pakistanis floods as an excuse for higher prices- Primary should continue to price products cheaper than competitors and not to push output costs on the consumers.
This will increase customer base but would have to do so through promoting their products which yet again increases the costs and explains the problem for Primary moving from a low cost strategy to a differentiation strategy. In conclusion the risk factors are many to be considered as discussed above there are many problems from moving from a low cost strategy to a differentiation strategy
