Primark’s Background Primark retails a diverse range o.docx

Primark’s Background
Primark retails a diverse range of products for
Women- Men- Children - Home- Beauty-
Accessories - Confectionary
Primark’s Parent
company is
PRIMARK
IRISH CLOTHING RETAILER
Founded in 1969
The stores in Ireland are branded ‘Penneys’
(Primark, 2016)
308 Stores in Europe
Stores in America
Brands
Financial performance 2014- 2015
UK largest market
In 2015 sales were 13% higher than
2014
Like-for-like sale 1% ahead of 2014l

(reflects strong international
performance)
UK delivered a positive like-for-like
performance
France been the most successful
new market
US Dollar’s strength against the Euro
has caused an adverse effect on
margins (ABF, 2015).
650 660 670 680
2014
2015
PROFIT £m
4,600 4,800 5,000 5,200 5,400
2014
2015
REVENUE £m
Future store
expansion
2016
Plan to open 6 stores in US
and the first in Milan
(Mintel, 2016)

Adapted from Primark, 2016
(ABF, 2015)
Primark’s suppliers are located in Bangladesh,
China, India, Turkey and other locations
around the world. Primark is ‘ an international
brand with a global supply chain” (ABF., 2015).
Primark’s Existing Markets
US, UK, Ireland, Austria, France, Germany
Netherland, Portugal, Spain, Denmark,
Belgium (ABF, 2015).
(Adapted from Primark.com,2016)
Justification for Primark’s further International Expansion
Primark’s brand is perceived as
highly differentiated, with strong
image for good value for money,
offering fun and vibrant products
(Mintel, 2015a).
Primark is one of the
leading footwear
retailers in the UK
(Mintel, 2015b)

5.3 %
Footwear
Market
share UK
Financially strong
(ABF, 2015)
Active presence in social media
(Primark, 2015)
One of the largest clothing retailers in
Europe with sustainable growth (ABF,
2015)
After the problem in Bangladesh with a
factory, Primark keeps improving ethical
working standards by their Code of
Practice ensuring ethical working
conditions for their employees and
suppliers (ABF., 2015)
(Mintel, 2015 €)
(Adapted from Johnson et al ,2015, p.131)
W E A K N E S S E S
Primark’s brand reputation
affected by scandal due to
factory collapsing in
Bangladesh (Dobrin, 2013)
3.5
level

-19
level
(Adapted from Brand index, yougov.co.uk, 2013)
Primark ‘s e-commerce is
not developed yet
Primark totally dependent
on outsourcing,
manufacturing is risky due
to the power of suppliers
(Johnson et al ,2015).
BRANDINDEX
2013
S T R E N G H T S
Leading retailer in the UK
youth fashion gaining
excellent international
reputation (Mintel, 2014a)
Primark has the experience,
strengths and infrastructure to
grow and expand internationally
.
Primark posses strong marketing
skills, an affordable and appealing
product range and the capacity in
areas of production to satisfy their
markets’ demands (Muhlbacher,

Leihs and Dahringer, 2006).
Financially strong to
invest and increase
international market
share
Primark’s has a sustainable
business model with high
profitability to adjust to any
new market.
Primark’s management have
perceived new market
opportunities, with a strong vision
to grow and to expand
internationally that creates real
value for the shareholders and
increases international market
share (ABF, 2015)
Ansoff matrix illustrates that for Primark, market development
with
their existing products is the ideal strategy for market growth
and
expansion
Macro criteria
Social/ Cultural – population,
urban population and
population growth,
population cultural proximity
It is important for Primark to understand these factors to be able

to attain success in the new
markets. Those factors affect consumers’ buying behavior.
Population and demographics
changes could heavily affect Primark’s performance offering
either threats or opportunities. The
structure of the population could affect competition , and
demand and supply of products.
Primark uses the media as a significant marketing tool.
Economic indicators
GDP, GDP growth rate, PPP pc
The economic development of
the countries considered for
international expansion need to
be carefully and critically
analysed.
Political- corruption
perception index (political
risk)
The political factors are critical for Primark to decide in which
country to develop markets or
where to invest. The political situation could be volatile and,
thus, create significant risks for
Primark (Dole and Lowe, 2012).
Micro criteria
Customers/ Consumer behaviour- Customers are one of the
most important external stakeholders. Primark’s customers will
help the business to develop and grow. It is important for
Primark to get to know the wants and needs of their customers.
The
retention and loyalty of customers ensure profitability and

sustainability (Carrol and Buchholtz, 2015).
Competitors- It is important to identify the competitors and
their actual and future strategies to be able to gain competitive
advantage
Relevance to Primark
GDP per capita – is the
gross domestic product
that is divided by
midyear population
Investment environment – Economic freedom index rank It is
of great advantage to Primark that the countries that are
selected for international trade are open to trade and
investment. The Economic Freedom Index is a good indicator
Brand loyalty- It is important for Primark to know
the culture of purchasing and brand commitment
of the possible market countries
First Screening
Countries to be screened
From 198
countries to 20
The criteria for the selection of the initial
20 countries is geographic proximity to
the existing markets countries, and GDP

PPP against GDP pc.
Possible
Markets
GDP (PPPP)
$
Mexico $2.22 trillion
Canada $1.628 trillion
Poland $1.003 trillion
Sweden $467.4 billion
Romania $411.1 billion
Norway $352.8 billion
Czech
Republic
$331.4 billion
Greece $281.6 billion
Hungary $257 billion
Finland $224.7 billion
Slovaquia $159.6 billion
Bulgaria $132.6 billion
Croatia $90.33 billion
Lithuania $82.14 billion
Slovenia $63.6 billion
Luxemburg $56.58 billion
Latvia $49.89 billion
Estonia $37.88 billion
Cyprus $27.1 billion
Malta $14.75 billion
(CIA,2015)

GDP per capita
$18,500
$45,900
$26,400
$48,000
$20,600
$68,400
$31,500
$25,600
$26,000
$41,200
$29,500
$18,400
$21,300
$28,000
$30,900
$102,900
$24,500
$28,700
$31,000
$34,700
Screened 20 countries from Europe and North America
selected by geographic and cultural proximity , with the
highest GDP (PPP), AGAINST their GDP PPP pc.
(CIA,2015)
Possible markets GDP (per capita)
1 Luxemburg $102,900
2 Norway $68,400
3 Sweden $48,000

4 Canada $45,900
5 Finland $41,200
6 Malta $34,700
7 Czech Republic $31,500
8 Slovenia $30,900
9 Slovaquia $29,500
10 Estonia $28,700
Physical distant concept” and cultural proximity was
considered.
Similar political environment, economic development,
geographic and
culturally close markets (Arenious, 2006; Muhlbacher, Leihs
and
Dahringer, 2006)
GDP pc is an important economic variable that illustrates
individual incomes, thus the spending capacity for customers to
purchase Primark’s products. Higher GDP pc is attractive for
business in general.
GDP PPP compare countries’ income levels and
other relevant data including cost of living, or
rates to inflation or deflation
GDP PPPpc – Is the purchasing
power parity rates per capita
( WORLDBANK,2016)

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
Countries eliminated
with lowest GDP pc
Hungary, Bulgaria, Croatia,
Lithuania, Latvia, and Cyprus .
Possible markets
Luxemburg, Norway, Sweden, Canada,
Finland, Malta, Czech Republic, Slovenia,
Slovaquia,
Estonia

Second Screening
Possible
markets
Population
1 Luxemburg 570,252
2 Norway 5,207,689
(5)
3 Sweden 9,801,616
(3)
4 Canada 35,099,836
(!)
5 Finland 5,476,922
6 Malta 413,965
7 Czech
Republic
10,644,842
(2)
8 Slovenia 1,983,412
9 Slovakia 5,445,027
(4)
10 Estonia 1,265,420

Second screening 10 countries
to be screened by the highest
level of population
Selection of 5
countries countries
with the highest
population to be
screened against the
urban population
Luxemburg, Finland ,Malta, Slovenia and
Estonia are eliminated. They score well on the
GDP pc indicator, however the low population
size is a concern, and limits the potential size of
the market for Primark.
Population- identifies the market size and the potential for
Primark to
sell their products.
The urban population chart illustrates that Sweden with 85% has
the
highest score for urban population, following by Canada with
81.8%
and Norway with 80.5%
For Primark the density of population is of great economic
advantage.
This indicates larger markets within the market trade. When
people
cluster the economy is more productive and distribution costs
are lower.
(CIA,2015)
(CIA,2015)

Canada
Sweden Norway
Countries with
Highest urban
population
Canada, Czech
Republic, Sweden,
Slovakia, and Norway
Selection of 3
countries with the
highest urban
population against the
low risk corruption
index
The closer to 100% less risk of corruption
(Transparency InternationalI,2015)
Norway , Canada and Sweden
have been identified as
possible market countries for
Primark.
They have higher urban
population, and lower
corruption index
The Corruption Index, identifies countries where

government, politicians are honest and transparent. Also
that people in general are treated with respect and human
rights are respected. This represents a healthy country for
Primark to trade within.
Czech
Republic Slovakia
Norway
Total respondents 6091
How many brands do you consider before your purchase?
(The consumer Barometer Survey, 2015)
Canada
Sweden
Chez Republic
Slovakia
What offline sources did people use to make a purchase
decision?

(TCBS, 2016b) (TCBS, 2016c) (TCBS, 2016a) (TCBS, 2016d)
TCBS, 2016e)
Consumers’ Brand loyalty is low Consumers’ Brand loyalty is
high
Individualist Cultures (Hofstede Centre ,2016)
Low score of Individualist Cultures (Hofstede Centre 2016)
Indulgence 55% Indulgence 78% Indulgence 28% Indulgence
29% Indulgence 68%
Indulgence score adapted from Hofstede, Centre 2016)
Micro criteria - Consumer behaviour
(The consumer Barometer Survey, 2015)
Second Screening
Indulgence-
consumers
spend money
and treat
themselves
GDPppp $58,400
Corruption Index
87%

GDP real growth
rate 0.9%
Low population
5,207.689
Limits potential
market size
Canada
Sweden
Norway
Norway
Canada, Sweden and Norway
to be screened by the
corruption index, against GDP
real growth rate
Third Screening
GDP real growth
rate 1%
GDP real growth
rate 2.8
(CIA, 2015)

1
2
GDP real growth rate is a measure of
economic growth. Economic growth “is the
increase in an economy's level of real output
over time” (Maunder et al,2001. p.531)
expressed as a percentage and adjusted for
inflation (Investopedia.com, 2016)
The Business portfolio Matrix, identified Norway as the tertiary
opportunity. Norway scores well on most indicators, with
individual wealth (measured by GDP per capita and GDP per
capita purchasing parity), and its corruption index, out
performing the UK. Norway also out preforms both Sweden and
Canada for individual wealth indicators. However the low
population size of Norway at just over 5 million people is a
concern, and limits the potential size of the market, leaving
Sweden and Canada as more attractive investment options.
Micro environment-
Economic Freedom rank
Canada
78
Sweden
26
Norway
32
(Economic Freedom, 2016)

Canada
and
Sweden
Members of OECD
Most economically developed 34 countries in
the world
Primark benefits from a concentration
in urban areas.
Canada 81.8%
Sweden 85.8%
Both countries politically stable
Corruption scores
Canada 83% (closer to 100 the safest)
Sweden 89%
Primark as an Irish company benefits
from European trade agreements with
Sweden and Canada
Canada $1.6 trillion GDP by country
one of the larges economies in the
world
Sweden $467 billion is the third largest
of the countries scanned

Micro- criteria
Canada
Apparel and
footwear
market in 2014
was worth
$1,015.8 m
(Passport,
2015a)
Sweden
Apparel and
footwear market
in 2014 was worth
worth
$95,725.1 m
Increase to
96,925.8m in 2015
(Passport, 2015b)
International brands in Canada
H&M
UNIQLO
Chicco
Forever 21
Zara

Foreign brands are targeting a
niche market gaining significant
market share whilst Canadian
domestic brands are reconsidering
their strategies to survive and
growth
(Passport, 2015a)
Domestic brands are
the leaders in the
clothing sector with
low prices and
fashionable designs
H&M
Mauritz Sverige
KappAhl
Nilson GROUP AB
market leader with
14% market share
(Passport, 2015b)
Steady growth Consumer behavior
Customers are cautious
with spending habits
Trends
Areas of significant

growth include
sportswear
Consumer behavior
Declining unemployment and
positive economy growth
enhanced consumer
confidence and buying habits
Trends
High demand at high end of
market
H&M
78 STORES
SALES
$3,918m
(HM, 2016)
H&M
176 STORES
SALES
$9,495Mm
(HM, 2016)
Fashion trends and competitors Third Screening
Norway

Apparel and
footwear
market in
2014 was
worth
$54,896.6
(Passport,
2016,c)
Market dominated by major
chains
Market leaders
H&M
Varner- Gruppen
Cubus
Dressmann
Apparel and footwear forecast is
negative due to reductions in
constant retail prices
(Passport, 2016c)
Consumer behavior
Norwegian customers
are vey price sensitive
Women tend to
purchase products

online but men tend to
visit retails stores
Sportswear increased
4% in current value
H&M
120 STORES
SALES
$5,806m
(HM, 2016)
(Passport, 2015b) (Passport, 2015a) (Passport, 2016c)
Hofstede’s culture framework
Culture differences are factors that determine the difference or
similarities between a variety of
consumers and affect the consumer buying behaviours and the
acceptance of the products Primark
needs to recognise those factors to avoid cultural gap (Doole
and Law, 2012)
Official languages English
and French
Official language
Swedish
Canada vs Sweden Fourth screening

Hofstede’s framework
illustrated that Canada’s
consumers are culturally
similar to British consumers.
Highly competitive, and open
to innovations. Canadian
consumers could be highly
receptive to Primark’s
products due to the
products’ Country of Origen
and culture proximity.
The Hofstede framework illustrated a
comparative result between Canada and
Sweden.
(The Hofstede Centre, 2016)
Social/
Culture
Legal
Economic
Political
Technological
SLEPT

Canada
82% of the population
between 25 to 64 with
university qualification are
employed (Statistics
Canada, 2011)
Culture
Official languages English
and French
Sweden
81.5% of the
population with
professional
qualifications are
employed (OECD,
2012)
Language
Swedish and good
level of English
Canada
Governance type
Parliament Democracy,
A Federation and
Constitutional
Monarchy (CIA, 2015)
Canada
90% of workers are
protected by
employment law.
Each territory has
its own
employment

standards
(Government of
Canada, 2011)
Sweden
70% of
employees
belong to a
union. They
provide
coaching,
insurances, and
legal support
(Sweden ,2016)
Canada
Transport is reliable.
Extensive network of trains
and public transport
available. Due to the size of
the country people travel
by airplane regularly.
Canada invest heavily in
technology, R&D, and
innovation (Government of
Canada, 2015)
Canada
Inflation 2.01%
Currency
Canadian dollar
(Trading Economics,
2016)
Sweden
Inflation 0.90%

Currency
Swedish krone
(RISKBANK,
2016)
Sweden
Transport includes
a reliable,
extensive network
of underground
trains
(Need to pay by
card)
Sweden ranked as
most advanced
countries (The
Telegraph, 2016)
Sweden
Uncertainties in the
EU due to the
forthcoming UK
referendum
(TEC,2016)
Governance type
Constitutional
Monarchy (CIA,
2015)
Canada vs Sweden
Negative inflation in 2015,
but apparel and footwear
sales increased
(Passport, 2016b)

SLEPT
framework is a
environmental
analysis model
that helps the
marketer to
examine various
aspects in the
international
marketing
environment.
(Lowe and Dole,
2012, p.5)
Sweden
Age structure:
0-14 years: 17.12%
15-24 years: 11.97%
25-54 years: 39.3%
55-64 years: 11.63%
65 years and over:
19.99%
Canada
Age structure:
0-14 years: 15.46%
15-24 years: 12.39%
25-54 years: 40.69%
55-64 years: 13.74%
65 years and over: 17.73%
(CIA, 2015)

(CIA, 2015)
https://www.cia.gov/library/publications/resources/the-world-
factbook/docs/notesanddefs.html?fieldkey=2010&term=Age
structure
structure
factbook/fields/2010.html#sw
factbook/fields/2010.html#sw
structure
structure
factbook/fields/2010.html#ca
Accessibility
Profitability
Market
share
Canada- Sweden Opportunity Identification Analysis
Accessibility
Canada
Accessibility
Sweden

Profitability
Canada
Profitability
Sweden
Market size
Canada
Market size
Sweden
Canada is member of NAFTA . Canada and Ireland have a
bilateral trade agreement. The CETA
(Comprehensive Economic and Trade Agreement). It is aimed to
facilitate business
opportunities, remove tariffs and customs duties, and offers
“predictable conditions for
investment” (European Commission, 2016a). Canada is open to
trade and investment. The
score illustrates countries freedom with a high score of 78.
Member of European Union – no trade barriers or tariffs but not
part of Euro zone so
currency conversion costs to/from Swedish Krona. Foreign
retail investment unregulated.
Sweden is open to trade and investment.
Sweden ‘s currency is identified as a stable currency. Stable
economy with strong available
currency. Sweden has laws to protect consumers. Competition in
the apparel and footwear sector
is high.

Canada has stable currency and economy. Canada's government
implemented voluntary codes of
practices to protect the consumer and the business including
products pricing. However, they do
not force any business price strategies. The retailers have
frequently been using price promotions
(Passport, 2016). Some clothing retailers have used price
strategies to gain market share,
promoting their products as “chip and chic fashion”
(Government of Canada, 2013).
Canada’s population is 35,099,836m. 82% of the population
between 25 to 64 have an
university qualification and are employed (Statistics Canada,
2011). Canadian’s GDP pc is high,
hence they have the disposable income for purchasing.
Primark's products are ideal for
Canadian customers. There is a potentially high demand for
Primark’s products.
In Sweden 81.5% of the population with professional
qualifications are employed (OECD,
2012). High GDP pc, however the low population size of
Sweden of 9,801,616 is a concern,
and limits the potential size of the market for Primark.
Canada and Sweden- Opportunity Identification Analysis
Commercial moderate risk for Primark in Sweden is due to the
high levels of competition and low
population compared to Canada

According to Transparency International,
(2015), both countries are politically
stable. The low corruption index for both
Canada and Sweden indicates the viability
for Primark’s foreign investment.
Sweden 89 and Canada 83
Both Canada and Sweden have similar
individual wealth indicators as the UK
(Primark’s largest market), indicating that
the customer profile is likely to be similar
(Worldbank, 2015).
Whilst Sweden’s growth at 2.8% is stronger
than the UK, and suggests a growing
market for Primark there, Canada is
currently experience slow growth at 1%.
However it is believed that Canada’s
economy is already large enough to offer a
good market for Primark.
There are low industrial or financial risks
in Sweden or Canada
BER Business Environment Rankings( 2014) illustrates the
global
ranking score for Canada and Sweden.
"Both countries rank extremely well on market opportunities,

foreign
trade and exchange controls remains an area of strength”( BER,
2014)
McKenzie 7 s
Shared
Values
Structure
Systems
Style
Staff
Skills
Strategy
In McKenzie’s 7s framework,
shared values, skills, style and staff
are considered the software of
successful management and are
affected by cultural differences
(Doole and Lowe, 2012)
For Primark, these elements are
important to align departments
and processes during the transition

for internationalisation helping to
implement the new strategy
Shared values
Primark’s core values are:
looking after their
stakeholders, and behave
ethically in all the aspects
of the business
operations
(Primark, 2016)
Skills
Primark’s HR department
need to arrange training
and development
programs to ensure that
their employees provide
the best service for their
customers.
Staff
It is important that Primark recruits
capable staff . General knowledge
about customer service, the
organisation and its suppliers is
required . The implementation of

incentives and rewards is a good tactic
to keep staff engaged and motivated,
thus benefiting the performance of
the organisation
Style
Leadership is pivotal for
Primark’s success. For
international expansion the
vision needs to be clear.
The inspiration and
motivation from the
management team is
important to gain respect
and credibility from their
employees and future
patners
12 C framework
15
Country Canada Sweden
General country information

Democracy
Capital Ottawa, rich in natural resource.
Politically stable democracy, with constitutional monarch
(CIA,2015a)
Part of NAFTA – so no trade barriers with US & Mexico
High levels of per capita income and spending parity
Slow economic growth (1%)
Member of OECD
Member of G8
Member of commonwealth
Low levels of corruption
Largest trading partner USA
Energy self sufficient – net exporter
Lower than average effect of global recession
Democracy
Capital Stockholm
Politically stable democracy
Part of EU(CIA,2015b)
High levels of per capita income and spending parity
Member of OECD
Low levels of corruption
Continued growth expected 2.8% in 2015
Unemployment to 7.5%
(Tradingeconomics, 2016)
Negative inflation in 2012, but price increases in clothing of
2.9%
Bond rates lower than European average indicates
international confidence in Swedish economy (Jones Lang
LaSalle, 2011; Eropeancommision, 2015)
Concentration
Structure of the market segments
Geographical spread

High level of urban concentration – similar to UK.
Concentration in North East with short travel distance
Toronto 5.993m
Montreal 3.981m
Ottawa 1.326m
Calgary 1.337m
Vancouver 2.485 m (CIA, 2015a)
80% of population live within 90miles of US border
Concentration of clothing market – 18.9% from largest
retailers (Government of Canada, 2013)
Very high levels of urban concentration – higher than UK
Stockholm 1.38m
Gothenburg 561k 291m
Malmo 280k 381m
Uppsala 140k 44m
50% of retail sales in Stockholm are in retail malls with new
malls recently opened in Malmo and Stockholm – the new
Stockholm mall is the largest in Sweden (Euromonitor, 2015)
Canada Sweden
Culture/ Consumer Behaviour
Characteristics of the country
Diversity if cultural groupings
Nature of decision-making

Religion predominant Catholic and Protestant
English and French widely spoken – parts are predominantly
French speaking – e.g. Montreal Quebec 56% are bilingual
European heritage – high proportion of English, Scottish and
Irish (CIA,2015a)
Cautious value driven purchasers – growth in discount and
online retail (Passport, 2015a)
Religion predominant Lutheran(CIA,2016)
Recovering apparel sales following passing of Eurozone crisis
Growth in premium product sales – especially male
Strong competition at value end –H&M
Growth in internet sales
Growth in men’s fashion – especially at high end of market
Egalitarian society – ‘showing off’ frowned upon socially
( Euromonitor, 2015b; Hofstede Centre, 2016)
Choices
Analysis of supply
International and external competition
Characteristics of competitors
Import analysis
Competitive strength and weaknesses
53% of retail foreign owned
Wall Mart, and Cost Co (both USA) leading retailers
Competitors are large supermarkets usually located in
suburban shopping malls. Growth in online.
Canadian retailers upgrading stores in response to growth in
foreign retail expansion
Canadian Malls generate 50% more sales
Per sq. ft. compared with US malls
(Government of Canada, 2013)

Leading apparent companies all Scandinavian
H&M market leaders, followed by Lindex Sverige AB (from
Finland) KappAhl Sverige AB, Nilson Group A – all oofer low-
medium pricing with sensitivity to fashion trends
(Euromonitor, 2015b)
Consumption
Demand and use analysis of economic
sectors that use the product
Market share by demand sector
Growth pattern of sectors
Evaluation of the threat of substitutes products
Clothes and shoes are needed by all – however fashion and
economic wellbeing can determine rate of consumption
Growing men’s market – especially of premium products,
partly due to new stores for men. Women’s market stable
Athleisure – gym to street cloths – growing sector with
Lululemon market leader (Euromonitor, 2015a)
Canadian retail sales equaled USA per capita in 2011
Sales of clothes were $26b in 2011. 5.7% of all retail
transactions
Well performing Swedish economy - property market strong,
interest rates low ( and just reduced to minus 0.5%) H&M –
increased sales in 2015
Premium product sales rising fastest
17
Canada Sweden
Contractual obligations
Business practices

Insurance
Legal obligations
Limited expansion of stores due to lack of space in cities and
restrictions on planning for out of town malls has limited
growth
Must comply with EU law including working practices,
tendering requirements
Foreign retail investment unregulated
Commitment
Access to market
Trade incentives and barriers
Custom tariffs
Member of NAFTA – The comprehensive Economic and trade
Agreement (CETA), is aimed to significantly reduce tariffs and
facilitates trade between EU and Canada (European
Commission, 2016)
Member of European Union – no trade barriers or tariffs but
not part of Euro zone so currency conversion costs to/from
Swedish Krona (Embassy of Sweden, 2016)
Channels
Purchasing behaviour
Capabilities of intermediaries
Coverage of distribution cots
Physical distribution
Infrastructure
Size and grade of products purchased
Growing e-commerce
Pressure on margins and revenues due to discounting
Growth in upmarket sales

Growth in catalogue sales – H&M
(Euromonitor, 2015a)
Internet – 11% of market and growing
Scandinavian retailers hold all top 4 market share – H&M
top. All offer low to mid range prices, with fashion
(Euromonitor, 2015b)
Communication
Promotion
Media infrastructure and availability
Which marketing approaches are effective
Cost of promotion
Common selling practices
Media information
Most newspapers are city based with the Toronto Star
having the largest circulation. There are two national papers,
plus the French Le Devoir which is popular in Quebec.
Television is mostly commercial, but with a public service
channel
Most newspapers are city based and enjoy wide readership
– 75% of population read papers. 50% of all advertising
spend is through newspapers and magazines
Direct mail is second largest distribution channel with 30%
of expenditure
Television and ratio are mainly public service and without
advertising. Commercial television is growing through cable
and satellite services
Advertising strictly controlled for accuracy
Capacity to pay

Pricing
Extrapolation of pricing to examine trends
Culture of pricing
Conditions of payment
Insurance terms
GDP PPP higher than UK
Prices at lower end being squeezed by internet and large
foreign retailers like Wall Mart
Premium product growth
GDP PPP higher than UK
Falling unemployment (Passport, 2015b)
Good growth
Low interest rates
Pressure on pricing at value end of market, but growth in
premium product sales
18
Canada Sweden
Currency
Stability
Restrictions
Exchange controls
Currency Canadian Dollar – stable currency (0.7% fluctuation
with Euro and 4.1% with US dollar in 2015)
No exchange controls
Interest rate 0.5% - same as UK (Everbank,2016)
Currency Swedish Krona - stable
Member of EU – but not single currency

No exchange controls
No trade barriers with Ireland
Interest rate – minus 0.5% (everbank, 2016)
Caveats Low levels of economic growth
Dominance of superstore
Distances mean concentration in East
Domination of market by Scandinavian companies
Rising e commerce at expense of stores
Mature market with intense competition
12C summary
Both Canada and Sweden offer Primark a politically and
economically stable, relatively risk free investment opportunity.
The rule of law, the stable currency, low
interest rates, and the absence of exchange and import controls
make both countries attractive for international expansion.
Canada offers a higher population, with strong levels of urban
concentration in the East of the country, where the large
metropolitan areas of Toronto, Ottawa
and Montreal, which are closely located to each other, offer
strong logistical advantages.
Whilst Sweden is enjoying good economic growth, the
continued uncertainties in the European Union, which might be
exacerbated by a British withdrawal,
suggest that stability and prosperity of the Canadian market,
where per capita spending has reached the level of the United
States, may offer the more attractive

alternative.
Furthermore the Canadian market is much less dominated that
the Swedish market by domestically owned retailers, and a
wider range of marketing channels is
available than in the state run Swedish media.
It is therefore recommended that Primark pursue expansion
opportunities in Canada
Selected country CANADA- Proposed strategic positioning of
Primark in Canadian the Market
Perceptual map
High Price
Narrow product range
Lower Price
Broad product range
The axis for the perceptual map
included price and product range.
Primark is positioned as a brand with
an extensive range of products with
lower prices and acceptable quality

Proposed strategic positioning of Primark in Canadian Market
It is recommended for Primark to compete on the basis of
differentiation following market development strategy for
growth and
expansion. Primark’s brand is perceived as highly
differentiated, with a strong image of good value for money,
offering fun and vibrant
products (Mintel, 2015a).
Aichner (2014), suggested that organizations should
communicate their company COO (country of origin) of their
products to gain
successful market entry and competitive advantage. The
advantages for Primark, as an Irish based company with a
positive image, in
trading in Canada, with its large proportion of people of Irish
(13.8%), Scottish (14.4%) and English (19.7%) heritage who
may recognize
or be attracted to the brand are substantial, as is the ability to
conduct trade primarily in English (CIA,2015). Hofstede's
framework
illustrated the importance of cross –cultural research prior to
the development of new international markets.
(Adapted from Gogel and Larrege 1989, in Doole and Lowe,
2012, p.189)
Canada’s consumers are identified with the "chip and chic
fashion”
trend for purchasing day to day fashion items (Government of
Canada, 2013). This consumer behavior could help Primark to
develop a successful business strategy with his trendy and
differentiated range of products.

The locations suggested to introduce Primark to the Canadian
consumers are cities in the North East with short travel
distances
between them, including Toronto with 5,993m and Montreal
with
3,981m inhabitants.
Toronto Montreal
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full-year-sales
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full-year-sales
full-year-sales
full-year-sales
full-year-sales

full-year-salesSlide Number 1Primark’s BackgroundSlide
Number 3Slide Number 4Slide Number 5Slide Number 6Slide
Number 7Slide Number 8Micro- criteriaHofstede’s culture
frameworkSlide Number 11Slide Number 12Slide Number
13Slide Number 1412 C frameworkSlide Number 16Slide
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20Slide Number 21Slide Number 22Slide Number 23Slide
Number 24Slide Number 25Slide Number 26Slide Number
27Slide Number 28Slide Number 29
Faculty of Social Sciences – Assessment Brief for Students –
2019 2020 Semester 1
Module code and title
6MK001 International Marketing Strategy
Module leader
Sue Rennie
Diet
First attempt
Assessment type
Individual Report
Submission date
29th November 2019 by 12 noon
Submission method
Uploaded on to Canvas
Assessment limits
Maximum 2500 words on 20 sides of management consultancy

style report. Exemplars will be shown in class
Assessment weighting
50%
Assessment brief (if appropriate, please refer to module
assessment briefing document)
Assessment 1
You will need to choose an organisation that has already carried
out some limited expansion internationally but to no more than
6 international countries and investigate the possibilities for
them to expand further internationally. Your organisation
should be a Small to Medium sized enterprise (SME) as defined
by the EU definition and you will have been appointed as a
marketing consultant to advise the main board of your
suggestions for what international market for the organisation to
enter. Your organisation can originate from any country in the
world and this will be regarded as the home market for that
organisation
Using the established product /service sectors stated on the
organisations website you are required to narrow down the
number of possible countries (markets) and provide a profile of
the market and the competitors.
You need to present your work in the form of an infographics
type report using PowerPoint as the software to produce this.
This is a popular style of report used by marketers to illustrate
market and competitive based information. You will be given
sample assessments of previous infographic reports in class
during weeks 2-4
Your report should include the following:
1. A brief description of the organisation and its strengths
including what would the justification be for business to expand
further internationally? (10%)
1. Detail the macro and micro criteria and other marketing
factors that would be relevant to narrow down the choice of

potential markets and subsequently profile the markets. Why are
these criteria relevant to the organisation and its market
research in their new market selection? Please note you need to
use both macro and micro criteria here that are relevant to the
organisation and the market. (10%)
1. Using the detailed and relevant macro and micro criteria from
point 2 to screen the number of countries down from all
available markets in the world to profile your final choice of
selected countries. You need to detail why the two chosen
countries are relevant and include reference to manufacturing
based competitors, distribution networks, key market profiles
within the country and other international strategic elements
and using recognised International Marketing theoretical
framework, research data and statistics to present your analysis.
You may wish to concentrate on a sector or sectors important to
the organisation at this stage. (60%)
1. Justify a choice of final country and develop a proposed
strategic positioning for the organisation and underpin with
relevant data and statistics including competitive positioning.
This should indicate selected target markets for the business in
the final country and also some indication of the marketing
message that would be used to target them. (20%)
Please use PowerPoint to put together your management
consultancy report or infographic report. Samples of previous
work to show the style required will be circulated during weeks
2, 3 and 4 of the semester for reference. Reports received in any
other written format will not be able to be uploaded to Canvas.
You should retain a copy of all of your research since the
second assessment for this module builds upon this research
The percentages indicated at the end of the points 1, 2 3, & 4
above indicated the weighting given to each point in the
assessment. You will be graded accordingly.
Please see the feedback sheet available on CANVAS for more
detail of the assessment criteria and if you are in any doubt
please do ask the module tutor.

Please note
· That a generic use of Porters 5 forces or the use of PESTEL in
your work is not allowed as these are not recognised
International marketing theoretical frameworks and should not
be included.
· You need to include both macro and micro criteria in the
evaluation of the markets and failure to include both will affect
your final grade.
· This assessment covers the theory and methods given in
lectures numbered 1-6.
· Your assessment should not have any reference to the
marketing mix elements as these are covered in the second half
of the module.
Assessment Criteria (The actual assessment components for this
assignment)
Criteria
Weighting (If applicable)
Please see the feedback sheet available on Canvas for more
detail of how to apply these criteria in to your work
1. Demonstrate your knowledge and understanding of the
theoretical issues involved in international marketing strategy
including the use of models or concepts to illustrate your
answer.
2. Include current data and evidence of appropriate application
of international marketing concepts
3. Justify why the selection criteria both macro and micro are
relevant to the chosen product/company in the elimination of
potential markets

4. Provide reference to literature searches with all readings
fully listed
5. The report is presented in the form of a management
consultancy style report i.e. presentation based using
infographics
Pass mark
Undergraduate
40%
Performance descriptors in use;
· University of Wolverhampton
Yes
· Professional or Statutory Body Chartered Institute of
Marketing Yes
· Module specific
Yes
· Other (specify below)
No �
Return of assessments
(Instructions for return / collection of assessments)
Feedback for the assessment will be made available on
individual basis within 4 working weeks from the hand in date.

Generic feedback from a sample of the assessments will be
verbally given in class in the next session one week after the
hand in date.
This assessment is testing Module Learning outcomes
Tick if tested here
LO1
Demonstrate an understanding and application of International
Marketing theories and models
yes
LO2
Develop, evaluate and justify appropriate international
marketing strategies for a mix of different economies and
organisations
yes
LO3
Additional information for students
The University’s Learning Information Services have produced
a series of guides covering a range of topics to support your
studies, and develop your academic skills including a guide to
academic referencing
http://www.wlv.ac.uk/lib/skills_for_learning/study_guides.aspx
Your module guide and course handbook contain additional and
important information regarding;
· The required referencing style for your assignment.*
Whilst many modules require referencing in accordance with the
Harvard Referencing convention, some modules – for example

those within the School of Law – require Oxford Referencing.
Please familiarise yourself with the requirements of your
module.
· Submission of your work
· Marking, feedback and moderation in accordance with the
University of Wolverhampton Assessment Handbook
· Extensions on submission dates *
· Additional support *
· Academic conduct with regards to cheating, collusion or
plagiarism *
· Links to appropriate sources of relevant information *
* Further information regarding these and other policies can be
accessed through your student portal on wlv.ac.uk.
Always keep a copy of your work and a file of working papers
The requirement to keep a file of working papers is important.
There may be circumstances where it is difficult to arrive at a
mark for your work. If this is the case, you may be asked to
submit your file and possibly meet with your tutor to answer
questions on your submission.
When you submit your work you will be required to sign an
important declaration confirming that:
· The submission is your own work
· Any material you have used has been acknowledged and
appropriately referenced
· You have not allowed another student to have access to your
work
· The work has not been submitted previously.
The following information is important when:
· Preparing for your assignment
· Checking your work before you submit it
· Interpreting feedback on your work after marking.

Module Learning Outcomes
Module Learning Outcomes are specific to this module,
and are set when the module was validated.
Assessment Criteria
The module Learning Outcomes tested by this assignment, and
precise criteria against which your work will be marked are
outlined in your assessment brief.
Performance Descriptors
Performance descriptors indicate how marks will be arrived at
against each of the assessment criteria. The descriptors indicate
the likely characteristics of work that is marked within the
percentage bands indicated. To help you further:
· Re-sit opportunities are available for students who are unable
to take the first sit opportunity, or who need to re take any
component.
· Refer to the VLE topic for contact details of your module
leader / tutor, tutorial inputs, recommended reading and other
sources, etc. Resit details will also appear on the VLE module
topic.
· The University’s Learning Information Services offer support
and guidance to help you with your studies and develop your
academic skills
http://www.wlv.ac.uk/lib/skills_for_learning/study_guides.aspx
1
| Page
Authorised: Authorised: FoSS version 1 - Approved by: FAEC
November 8th 2016. Ref: 2 Module Assessment Briefing Form
FoSS Generic Assessment Performance Descriptors

Based on – University Performance Descriptors (updated
September 2015)
Note that these are generic descriptors that apply mainly,
though not exclusively, to written academic work. The relevant
performance descriptors for the appropriate level (as below)
should appear in the module guide.
Any further module-specific assessment criteria, such as number
of words, should be clearly stated in the assignment brief.
The pass rate at levels 3 -6 = 40%
Level 3
Level 4
Level 5
Level 6 (Graduate level)
90-100%
Very detailed answers to all parts of the question / task.
Extremely clearly structured and focused, demonstrating overall
coherence and in- depth understanding. Clear evidence of a
range of independently sourced material well applied in all
contexts.
No obvious errors in grammar as appropriate.
Focused and comprehensive engagement with the question,
showing evidence of in-depth understanding of the issues.
Extremely clearly structured and demonstrating a coherent
argument throughout.
Evidence of wide, independent reading.
No obvious errors in referencing or grammar or syntax as
appropriate.
Exceptionally detailed and original response to the assignment,
with critical use of independently sourced contextual

material. Outstanding demonstration of linked understanding
of relevant theory, concepts and models. Extremely well
structured with high level of analysis.
appropriate.
Exceptional level of analysis, showing deep critical engagement
with a comprehensive range of contextual material.
Demonstration of independent thought resulting in highly
original or creative responses to the assignment. Provision of
clear evidence of understanding of current scholarship and
research based on an extensive range of relevant sources.
Extreme clarity of structure demonstrating complete focus of
argument.
appropriate.
80-89%
Detailed answers to all parts of the question / task. Very clear,
logical structure and focus, demonstrating overall coherence.
Clear evidence of independently sourced material appropriately
applied.
Very few errors in grammar as appropriate.
Detailed response to all relevant parts of the question with
evidence of clear understanding of the issues. Well structured
with evidence of independent reading supporting the argument.
Very few errors in referencing or grammar or syntax as
appropriate.

Very full, independent response to the assignment with totally
relevant material which is well beyond any module input,
demonstrating independent study. Excellent understanding and
application of relevant theory, concepts and models. Very clear
logical structure.
appropriate.
Excellent links between relevant ideas, theories and practice.
Evidence of clearly independent scholarship and the ability to
engage critically and analytically with a wide range of
contextually relevant resource material.
Demonstration of original insights, supported by extremely well
structured overall argument.
appropriate.
70-79%
Full answers to all the parts of the question / task. Clear
structure and focus. Evidence of material not covered in taught
context and appropriately applied to given context.
Few errors in grammar as appropriate.
Identification and very good understanding of issues in the
assessment. Full answers to all questions/task. Very clear
argument with relevant examples used to illustrate response.
Clear evidence of reading outside the module list.
Few errors in referencing or grammar or syntax as appropriate.

Full response to the assignment with all content relevant and
focused. Very good understanding of relevant theory, concepts
and models. Application of appropriate theory to
examples/practice, demonstrating a rigorous approach to a
variety of ideas, contexts and frameworks.
Very good links between a range of different ideas and theories.
Places issues in a wider context. Evidence of clear
understanding of a range of relevant theories and application of
these appropriately. Independent ideas, well argued and
supported.
60-69%
All significant content accurate. All main points of question /
task covered. Identifiable structure. Some evidence of material
not directly covered in taught input.
Some small repeated errors in grammar as appropriate
Goodunderstanding of the issues. Engages directly with the
question. Clear argument with good examples used to support it.
All main points and important issues of the question/task
covered. Some evidence of reading outside the module list
Some small repeated errors in referencing or grammar or syntax
as appropriate
Answers most if not all detailed aspects of the question. Content
mainly relevant and accurate. Good knowledge and
understanding of relevant theory and concepts and application
of theoretical models. Evidence of a developing appreciation of

contextual issues.
as appropriate
Clear links between theory and practice. Good coverage of
assignment issues. Full understanding of core
issues. Evidenced level of understanding of appropriate theory
and concepts.
as appropriate
50-59%
Content generally accurate and relevant to the question / task.
Reasonable breadth of taught material used. Evidence of
structure.
Generally sound understanding of basic concepts. Content
relevant to the question/task. Competently deals with main
issues. Reading based on main texts or materials, but not always
fully utilised in supporting arguments.
Some repeated errors in referencing or grammar or syntax as
appropriate.
Main issues addressed and solid attempt to answer question.
Some relevant content applied. Sound knowledge and

understanding of relevant theory and concepts and identification
of main issues
appropriate.
Identifies main issues and relevant theory. Coverage of most of
assignment issues. Competent application of relevant theory and
states obvious links to practice.
appropriate.
40-49%
40% Pass mark
Satisfactory evidence of understanding of basic concepts/issues
and demonstration that the learning outcomes have been met.
Limited use of the breadth of taught content. Some attempt at
structure.
Satisfactory evidence of understanding of basic concepts/issues
and demonstration that the learning outcomes have been met.
Content broadly relevant but with limited or little application of
theory. Almost totally descriptive.
Satisfactory attempt to address question/issues with some
content relevant to assignment topic. Demonstration that the
learning outcomes have been met. Material engages with
relevant module materials, but largely repeats taught input and

lacks development or personal interpretation. Some general
understanding of topic
Demonstration that the learning outcomes have been met. Makes
few links between theory and practice. Answers question in a
very basic way.
Describes relevant theory accurately, and some relevant ideas
offered.
Limited coherence of structure.
30-39%
Compensatable Fail
Some learning outcomes and / or assessment criteria not met.
Repetition of taught content with minimal attempt to focus on
the given question or issue. Little evidence of structure.
Evidence of sufficient grasp of learning outcomes to suggest
that the student will be able to retrieve the module on
resubmission.
Superficial treatment of issues. Some is relevant to topic set.
Material merely repeats taught input. Lacks understanding of
basic theory or concepts. Possible use of extensive quoted
passages.
resubmission.
Questions not answered fully. Content not wholly relevant.
Little or no evidence of understanding of relevant theory. Very
repetitive of taught input – no development or application. The
use of extensive quoted passages evident.

resubmission.
Inadequate content with issues not addressed; insufficient
evidence of understanding of relevant theory and concepts and
only partial understanding shown. Very limited application of
theory. Use of extensive quoted passages is evident.
resubmission.
20-29% Fail
No learning outcomes fully met. Little evidence of attempts to
engage with module materials.
No learning outcomes fully met. Little evidence of attempts to
engage with module materials.
No learning outcomes fully met. Little attempt to engage with
the module materials or ideas.
No learning outcomes fully met. No demonstration of adequate
knowledge or understanding of key concepts or theories. There
is no recognition of the complexity of the subject.
10-19% Fail
Little attempt to engage with assignment brief and has not met
learning outcomes. Inadequate demonstration of knowledge or
understanding of key concepts, theories or practice.

0-9% Fail
No real attempt to address the assignment brief or learning
outcomes
outcomes
outcomes
outcomes.

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