Primark Stores Limited is the top performer of value clothing retail in the United Kingdom with a 20.7% market share (Mintel 2013). Yet despite high market share, in a recent study conducted by social media analyst firm, Crimson Hexagon they found, Over half of tweets about Primark are negative. Based on this study, research was further explored; and as a result sparked the team’s interest to find out more information. While more than half of the tweets about the Primark brand were negative, a further study showed there was a close percent of positive tweets related to consumer sentiment (Retailgazette.co.uk, 2013). As a result, the team sought to explore influential factors affecting consumer sentiment towards the Primark brand within the UK. This was done by exploring offline channels, whilst using a combination of primary and secondary data.
This research plan will provide a background on the value retail industry and the organization itself, the marketing-related issue Primark is experiencing and our objectives for solving this issue. It will then go into research methodology, our use of primary and secondary data, the outcome of our findings and recommendations.
II. Industry Overview – Fashion Value Retail
Value chain retailers, as defined by Gereffi, are a buyer driven commodity chain; comprised primarily of retailers and brand-named merchandisers. Due to a combination of several factors, customers have gained bargaining power, and demand has won over supply in the highly internationalized clothing industry. (Abecassis-Moedas, C. p414). Historical trends have demonstrated a long-term decrease in expenditure on clothing in both Europe and the United States, creating increased levels of competition (Abecassis-Moedas, C. p414). In order to remain competitive while maintaining margins, the market has required retailers to transfer manufacturing overseas.
Continued concerns over the economy and steady levels of unemployment have...