Introduction
Primark Corporation is an Irish fast-fashion retailer located in Dublin. To avoid duplication with the American shop J.C. Penney, the moniker was modified to Primark in the 1970s (Primark.com, 2019). Primark focuses on affordable men’s, women’s, and children’s apparel, footwear, and accessories.
The firm’s commodities are renowned for their fashionable patterns and affordable prices, made possible by its streamlined procurement networks and low overhead expenses. Primark has over 380 locations in 12 nations, including the Netherlands, UK, Portugal, France, Austria, Germany, Ireland, Belgium, Spain, Italy, the USA, and Slovenia (Primark.com, 2023). These countries provide a comprehensive marketplace for Primark to market its products.
Primark’s success stems from its ability to provide affordable goods. The company’s distribution chain is robust, with most of its items made in Asia. Primark’s selling approach is to offer an extensive selection of low-priced items, which draws a large client base. Other fast-fashion companies, such as H&M, Zara, and Forever 21, present a formidable rivalry for the corporation (Kohan, 2020).
Primark’s apparel line is the merchandise it intends to offer in Greece. Greece has a burgeoning fashion market, and Primark’s reasonably priced design goods could resonate with the country’s budget-conscious consumers. Globalization aims to enhance the company’s earnings and global presence by expanding its presence in the Greek consumer market.
International Market Selection (Greece)
Greece Environmental Analysis
Political Risks and Legal Environment
Greece is a democratic country with a civil law-based legal system. The nation’s political climate has been generally stable in recent years, although concerns persist regarding the geopolitical landscape. Corruption, a persistent problem that has undergone substantial changes in Greece, is one of the key worries for multinational investors (Trade.gov, 2019a). Primark will require further steps to ensure compliance with all applicable rules and laws, including taxes and labor regulations.
Economic Environment
In recent years, Greece’s economy has undergone substantial changes, as evidenced by the country’s high unemployment rate and public debt levels. Nonetheless, there are indications that the economy is beginning to recover, creating a favorable environment for business growth. As a member of the European Union (EU) and the Eurozone, Greece benefits from access to a vast marketplace that utilizes a standardized currency (Greece, 2023a). Despite this, the nation continues to struggle with issues related to excessive bureaucracy, regulations, and taxation.
Trade Barriers
As part of the EU, Greece adheres to the EU’s trade guidelines and laws. There are no substantial commercial entrance obstacles for Primark’s apparel line sector. Nonetheless, customs and levies present obstacles that can affect the cost of conducting operations in the country (Trade.gov, 2019b). For example, the Greek administration may apply duties on foreign apparel, which would hike the expense of importing merchandise from Primark’s production facilities outside Greece (Lawder, 2020). This can make Primark’s items more costly and less competitive in the Greek marketplace.
Technological and Environmental Environment
Greece is desirable for technology-based firms because of its sophisticated telecommunications network and highly qualified workforce. As a result, Greece has become a popular tourist destination. Despite this, the nation has several environmental issues, including problems with air pollution and improper waste disposal (Smith, 2020). Primark will ensure compliance with all ecological regulations and take steps to minimize its negative impact on the surrounding environment.
Cultural Analysis
Greece has a rich traditional history that emphasizes family, tradition, and society. The nation’s culture is very social, with face-to-face encounters favored above internet communication (Fan & Tan, 2015). Greek shoppers are fashion-conscious and ready to spend a premium on high-quality apparel (Greece, 2023b).
Primark’s economical and trendy apparel collection may attract younger Greek shoppers interested in affordable fashion. However, the business must uphold indigenous cultural norms and traditions. Primark may want to consider supplying clothes that adhere to strict dress codes, especially in more traditional regions of the country.
International Market Segmentation, Targeting, and Positioning
Global marketplace fragmentation refers to dividing a company’s entire foreign consumer base into one or more segments that are identical in all material respects. Primark can identify and target specific client segments in Greece using geographical, demographic, and psychographic techniques. Geographic categorization involves dividing the market into physical regions, such as Greek cities and municipalities. Primark may target particular locations where its commodities are in high demand.
Market segmentation based on population parameters, such as age, gender, income, and educational level, is known as demographic division (Schlegelmilch, 2022). Primark may focus on particular age or economic categories based on those segments’ inclinations and purchasing patterns. Psychographic segments involve partitioning the marketplace according to clients’ lifestyles, values, and personality traits. Primark may attract clients who are fashion-conscious or who prioritize cost and accessibility.
Depending on the market segmentation, Primark should target consumer categories that align with its corporate objectives. For instance, if Primark wishes to attract youthful clients, it may create clothing lines that cater to their interests and tastes (Schlegelmilch, 2022). In addition, after Primark has determined the target segments, it should create a promotional mix that corresponds to their demands and tastes. The advertisement mix should comprise merchandising design, price strategy, marketing actions, and supply methods.
Primark must comprehend the local market and adapt its strategy to properly position its apparel line in Greece. Primark’s price is one of its strongest selling factors. Primark may promote itself as a budget-friendly option for Greek shoppers by offering high-quality apparel at affordable prices. Considering the macroeconomic scenario in Greece, where numerous shoppers are price-sensitive, this could be wildly successful (Greece, 2023a). Furthermore, Primark might distinguish itself from its rivals by stressing the distinctive characteristics of its apparel line, such as its environmental initiatives or unique designs.
Strategic Plan
Competitive Analysis
Competitive Analysis Within Industry
The rivalry within the apparel business is intense, with many local and international players. The garment industry in Greece is projected to be valued at approximately €2.5 billion, with an annual growth rate of around 0.64% (Statista, 2023). Many small and medium-sized enterprises (SMEs) hold a vast proportion of the marketplace share. International companies such as Zara, H&M, Mango, and local players like Folli Follie, Tsakiris Mallas, and BSB are among the top competitors in the Greek garment market. These corporations have built a solid foothold in Greece and a dedicated consumer base.
Furthermore, the cost approach in the Greek clothing market is exceptionally competitive, with most firms providing commodities at comparable price points. Nonetheless, there is an increasing demand for apparel that is manufactured sustainably and ethically, which could give Primark a competitive edge due to its affordable prices. To stay competitive, Primark would need to consider establishing an online presence, given the increasing popularity of e-commerce (Brouthers et al., 2016). Thus, this is because traditional retail outlets account for the majority of garment sales, while online sales represent a smaller percentage.
Comparison with Competitor’s Products
Primark offers a vast selection of apparel, footwear, and cosmetics for men, women, and children. The company is renowned for its affordable prices and stylish designs. Primark’s prices are generally below those of Zara and Mango, yet slightly higher than those of H&M and Bershka.
Zara offers a wide range of apparel and products for children, men, and women. The company is renowned for its distinctive aesthetics and high-quality items. Zara’s prices are often higher than Primark’s but cheaper than Mango’s.
H&M has an extensive selection of apparel, footwear, and collectibles for women, men, and children. The company is recognized for its inexpensive rates and environmentally friendly clothing range. Overall, H&M’s prices are lower than those of Zara and Mango, while slightly surpassing those of Primark and Bershka.
Bershka provides apparel and items for teenage boys and girls. The organization is recognized for its stylish designs and affordable rates. Bershka’s prices are often below those of Zara and Mango, but marginally higher than those of Primark and H&M. Mango offers apparel and goods for men, women, and children. The company is renowned for its distinctive designs and high-quality items. Mango’s prices are often higher than those of Primark and H&M but cheaper than those of Zara.
Features Competitive Brands in Greece
Under this area, a comprehensive assessment of competitiveness in the Greek industry is conducted, focusing on competitive companies and their key features, including packaging, pricing, promotion, and marketing strategies. Each Zara merchandise is packaged in a paper bag bearing the brand’s logo; the packaging is primary and sophisticated. The brand’s items are priced affordably and competitively, spanning from €10 to €50 (Danziger, 2022). Zara employs a range of promotional and advertising strategies, including social networking, email marketing, and print advertisements.
H&M is another well-known fashion company that trades in multiple places around Greece. The business is recognized for its trendy apparel and accessories, reasonable costs, and eco-friendly activities. Each commodity is packaged in a paper wrapper or a biodegradable retail bag emblazoned with the brand’s emblem. The brand’s items are priced competitively, ranging from €5 to €60 (H&M, 2023). H&M employs various marketing and promotional techniques, including social media, celebrity endorsements, and print advertisements.
Entry Modes
Cross-border e-commerce (CBEC) refers to the online purchasing and selling of goods and services between international firms and customers. Primark can penetrate the Greek garment sector marketplace via CBEC. E-commerce across international borders minimizes the requirement for substantial participation in the overseas market. It lowers entrance hurdles, such as infrastructure, administrative, and governmental constraints, as well as financial capital, which would be significant if Primark were to establish a permanent foothold in Greece. However, regional and linguistic limitations may present considerable obstacles for Primark to enter the Greek market via CBEC (Cassia & Magno, 2022). To attract Greek clients, Primark must adjust its merchandise and promotional techniques to the native customs and language.
The hierarchical paradigm of industry penetration is a prominent strategy for businesses seeking to penetrate a new market. This technique involves progressively establishing a profile in a marketplace over time, starting with a minimal commitment and expanding it as the organization gains market expertise and success (Pan & Tse, 2000). After gaining a presence in the Greek economy through exports, Primark may explore licensing its trademark to a domestic partner. A license would enable the Greek firm to sell its items under the Primark Company name on the local market. This strategy would grant Primark greater control over the commodities sold in Greece under its trade name.
Furthermore, Primark’s next stage could involve opening franchised outlets in Greece. This would entail forming partnerships with regional entrepreneurs who manage Primark locations and compensate the firm a franchise cost (Pan & Tse, 2000). This strategy would enable Primark to grow its market dominance while reducing risk and expenditure.
The International Marketing Mix
Product Strategy
Primark’s product approach should include creating a range of apparel explicitly tailored to meet the requirements and preferences of the Greek consumer base. This could involve incorporating elements of Greek clothing and design patterns into their garment designs, as well as offering prominent sizes and fashions in Greece (Cavusgil et al., 1993). Another possibility is to sell apparel in Greeks’ preferred shapes and sizes. Additionally, to connect with the ecologically sensitive Greek marketplace, Primark should consider incorporating ethical and environmentally friendly components into its products. Greek buyers should find Primark’s apparel collection pleasant and convenient, aligning with the corporation’s reputation and values.
Promotion Strategy
Primark’s promotional approach in the Greek market should strive to increase brand recognition and establish a solid corporate image. Primark must primarily consider the cultural distinctions between Greece and the other nations in which it participates when formulating its promotional approach. Greek culture is distinct, and perceptions of fashion and dress may vary across different locations. Thus, the company’s advertising communications and identity must be tailored accordingly (Constantinides, 2006).
Moreover, the media environment in Greece is diversified, with television, radio, newspapers, and internet media being the most prominent networks. Popular social networking sites include Facebook, Instagram, and Twitter. Primark should utilize various communication channels to engage its target demographic and effectively sell its clothing line.
Price Strategy
Primark’s pricing model in the Greek market is expected to be more attractive compared to other apparel retailers. This could entail selling lower prices than competitors while still retaining a fair profit margin (Powers & Loyka, 2010). In addition, Primark should consider offering sales and special discounts during significant purchasing seasons in Greece, such as the holiday seasons and well-attended festivals.
Distribution Strategy
Developing a robust retail footprint in Greece needs to be at the forefront of Primark’s supply plan. This can entail creating new stores in significant cities and areas throughout Greece, as well as forming partnerships with local merchants to sell their wares in existing stores (Powers & Loyka, 2010). Furthermore, Primark should consider expanding its online presence in Greece by developing a local website and offering online ordering and delivery solutions to clients nationwide, presenting an option that they should examine.
Conclusion
Primark plans to enter the Greek market, which is attractive due to its growing fashion sector and budget-conscious clientele, as part of its global expansion. The research on Greece’s ecosystem reveals that the political situation is stable, and commerce is continuing to recover. Yet, trade obstacles might increase the cost of conducting business within the nation.
The cultural research of Greece reveals that the country has a rich, conventional past and a population that emphasizes personal interactions. Primark should employ market segmentation approaches to discover and engage specific consumer groupings centered on regional, demographic, and behavioral aspects, targeting the Greek marketplace. Primark must adjust its marketing approach and advertising strategy to align with the needs and preferences of its key target categories and establish itself in Greece as a budget-friendly and fashionable clothing brand.
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