To what extend might the success of Primary’s marketing strategy depend upon its directors preparing an effective marketing plan. A marketing plan Is a systematic approach to development of marketing strategy and the achievement of goals. The marketing plan Involves the businesses objectives, strategies, actions plans, marketing budgets and control tools. Primary’s corporate objective is expansion so they are therefore using the marketing strategy market development to expand into foreign countries other than the UK where they are originally based.
In context to the case Primary have already opened their first outlets in Germany and Portugal, as well as opening a branch in Barcelona. The consequence of Primary using market development they have new stores, they are expanding successfully and have improved demand at existing shops meaning that sales were up by 20%. Market development has definitely helped Primary become more of a success; this Is because It Is helping them achieve their corporate objective which is expansion as they are opening new stores all over the world so therefore It Is Increasing their market size.
It will also boost sales but by Primary opening new branches they will be able to benefit from bulk buying economies of scale. The consequence of this means that their average unit cost will decrease meaning they will be making more sales as the prices of their products would have decreased attracting new markets. The marketing plan has helped Primary to complete their corporate objective of expansion as by using market development they can enter new foreign markets knowing exactly what their new markets are looking for.
The marketing plan has led to Primary being aware of their competitors so they know what to expect in terms of rises and what sorts of products are being sold as they have done their research of producing an effective marketing plan. Market analysis Is also helpful for their marketing strategy of market development; this is because before Primary enter foreign markets they need to know their potential customers’ needs and wants, this is extremely important as they could be completely different to the Auk’s needs and wants. This would result into Primary having low revenue streams and stock being wasted.
By Primary becoming a success in foreign countries it is not entirely because of its directors preparing an effective racketing plan. By Primary following its marketing plan it may lead to them missing opportunities. This is because the marketing plan may be too rigid, if Primary are offered opportunities they need to be flexible in the changing economy. However if the marketing plan Is not flexible then it will be hard for Primary to achieve their corporate alma of expansion as their marketing plan Is Limiting them to certain opportunities.
If the directors spend to long preparing their marketing plan they have wasted time, this may result Into Primary mammals out on opportunities Just because f directors making sure their marketing plan was perfect and the business only I believe Primary’s success of market development was because its directors prepared an effective marketing plan. This is because it showed Primary the target markets needs and wants in Germany, Portugal and Barcelona.
As Primary already had completed their market analysis when they entered new markets they were already prepared and knew exactly what foreign markets were looking for. I accept that by Primary following their marketing plan step by step they could have possibly missed out on opportunities but the risks outweigh the strengths. If it weren’t for market analysis then Primary could have entered foreign markets without knowing any information and could have failed due to the new market not being interested in their products.
Using all the information available to you, complete the following tasks: Analyses the case for Primary expanding further in the UK Analyses the case for Primary opening outlets in Spain Make a Justified recommendation on which option the company should choose By Primary expanding further in the I-J (market penetration) they can increase their market share of current products. If they concentrate on expanding their stores in he I-J they will achieve growth in the market and could possibly drive out competitors.
Supermarkets are also known for now selling cheap clothing, for example Deco’s and Kingsbury are selling products around the same prices as Primary. Therefore because of supermarkets now selling cheaper clothing Primary need to now concentrate more on driving those competitors out rather than letting businesses over ruling the clothing market which could possibly result into Primary losing customers. Primary should concentrate more on the I-J market currently rather than using market development. This is a much more safer option as they already know the I-J market involving their needs and wants of fashion today.
By Primary opening outlets in Spain (market development) it will increase their sales opportunities and market size. However Spain is currently going through a financial crisis and unemployment is rising. They are currently going through a recessions with 13. 9% of the workforce are out of a Job. Even if Spain is in the middle of a recession this could be a benefit for Primary as they are known for having cheap clothing so if they enter markets which are currently having money problems then hat market will want to buy cheaper clothing rather than carry on shopping at expensive stores which they can no longer afford.
If Spain are having money problems then they are more likely to stop spending their money on higher quality, more expensive clothing retailers. Instead they will shop at Primary which could possibly drive out foreign competitors. If Spain come out of the recession then hopefully by then Primary would have secured customers loyalty so they will not go back to the original clothing retailers they shopped at before the recession. Spain’s gross domestic product is falling, the consequence of this means that the o drop their prices which will unfortunately affect their revenue.
By Primary opening new stores in Spain it would help with the unemployment rates as they are increasing. Primary can offer new Jobs to Spanish citizens, the consequence of this results into the Spanish economy being a bit happier so they can now concentrate more on the financial crisis’ and not the unemployment rates. I believe that Primary should carry on expanding in the UK rather than opening new stores in Spain. This is because Spain is currently having financial crisis; so therefore it is the safest option to Just stay in the I-J at the moment.
Even though Primary’s corporate objective is expansion, the safest option right now is to carry on expanding in the I-J rather than entering the Spanish market especially when they are currently going through a recession. In the long term Primary will especially benefit from staying in the I-J and expanding further rather than opening outlets in Spain as they could drive out competitors. If Primary were to open outlets in Spain they would be concentrating more on the Spanish market than what’s happening in the UK concerning competitors.
Primary has been a huge success in the I-J, for them to Just SSE all of their customers to supermarkets when they were too busy concentrating on the Spanish market they will be distraught and all that time was wasted. The external factor that could possibly change the decision would be if Spain came out of the recession and all of their financial situations have been resolved. The consequence of this meaning they are now back to being one of the healthiest countries in Europe regarding its economy. However this is very unlikely to happen so I believe Primary should carry on expanding further in the UK as it is not yet fully saturated.
