Feasibility of Online Shopping in UK Primark
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The purpose of this research is to study the online shopping in UK clothing retail market, and how it will be helpful to the researcher to get the idea about the feasibility of Primark online shopping service. The research is divided in 5 chapters each chapter gives the reader some idea about online shopping and how it will be beneficial for the company and the consumer. Moreover, the researcher uses this chapter to explain his/her point of view by taking individual chapter. Each chapter has many sub divisions. The researcher plan her research on typical system like chapter vies start from introduction, literature review, methodology, implementation calculation and last conclusion.
In this techno savvy world people are using the technology in their day to day life. Sometimes they are using directly and sometimes indirectly but now the situation is like that the person must have use the technology to make their life luxurious. The researcher writes about ecommerce, its advantages and disadvantages. In methodology, the researcher use the both type of data qualitative and quantitative. In quantitative the researcher collects both type of primary and secondary data by using interview and survey.
The aim of the research is how Primark can increase its sell in this competitive market. And online shopping market is very strong in UK. Furthermore how the online shopping will be change the stores situation and what are the changes the company will get.
The researcher doing t
CHAPTER - 1
1.1. WHAT IS PRIMARK?
Primark Stores Limited is an Irish clothing retailer. Its stores are located in various regions like United Kingdom, Ireland, and Spain. Within this area of responsibility, Primark stores outnumbered other clothing retailer business, with one hundred sixty one stores overall distributed in three major regions: one hundred twenty-five in the United Kingdom. The company positions itself as marketing fashionable at cutthroat prices. Primark is known for selling clothes at the budget end of the market. Its success is based on sourcing supply, making clothes with simple designs and fabrics and targets young, fashion-conscious individuals ages 35 below, offering them simple yet high quality clothes and apparels. The relevance of global trends and consumers' demands on lifestyle made Primark Store Limited reinvent its business scheme and management structure.
From the first penny store in Ireland to the latest flagship store in Liverpool, the Primark story has been one of continuing success founded on a unique combination and lean operations. Primark was opened their first Penney store in Mary Street Dublin in June 1969. During the one year time they added four more stores in Dublin. After continues success in Dublin, in next three year 1971, Primark opened their first store outside the Dublin in Cork and end of that year there were 11 more stores in Ireland and one in Northern Ireland.
Furthermore, in 1973, the number of stores had reached 18 in Ireland and Primark Began trading in Great Britain with four out of-town stores. The following year saw the opening of the first UK high street store in Derby and Bristol. In ten more years Primark increase the number of stores in UK and Ireland both like 18 new store added in UK and 9 stores in in Ireland. And the management also expanded the number of the stores in UK and Ireland to 22 stores each.
The most innovating thing of Primark was in ten years duration from 1984 to 1994 a further Like most of the Primark stores in high street so it is beneficial to them. Primark has so many strengths, weakness, opportunities and threats. Like 40 years experienced retailer, reasonable price seller of clothes, eco friendly carrier bags etc. Primark has so many weaknesses, weak public relationship, leak of services, no online facility for shopping. For promotional development Primark can introduce their own store cards, Self scan area and soon. Due to competitive market Primark provide cheapest clothes to customers. Its create threat for Primark to stay in these market.
LIST OF STORE LOCATION IN LONDON
Table 1: Field work Primark store location in London
Primark stores a privately held subsidiary of Associated British Foods, Is involved in opening departmental store. It owns and operated 188 departmental stores that provide products such as women wear, children wear, menswear, footwear, accessories,
The children market in Britain is worth £4.5bn. Five years ago, Primark had a 2.8% market share. By 2006 this had risen 5.4% and in 2007 to 6.2% this now places Primark fourth in terms of market share. (Sutherland & Canwall, 2008) What is e-commerce?
The researcher aim to do this research to increase the volume of sales at present Primark is leading clothing retailer in UK. Furthermore according to this techno savvy world, and to compete the all competitors Primark also have to be go ahead with some new innovation with them.
1. To explore how online shopping can benefit Primark and boost its sales.
2. To calculate, agree and plan for the necessary resources for this project
3. To investigate the market for online shopping service in the UK competitors market.
4. To identify new segment to increase the market share
CHAPTER - 2
2.1. ONLINE SHOPPING SERVICE
The researcher wants to introduce new direct marketing strategy for Primark to increase the sales volume. Like other competitors, Primark does not have an online shopping facility. In this day and age of technological advancement, it becomes very essential for any organisation to establish oneself in the field of e-commerce. The researcher has found a gap in the market for such a technological need and would like to introduce a promotional strategy for the company's growth in this high tech savvy world. The e-commerce can be defined as a modern business methodology that addresses the needs of organization, merchants and consumers to cut costs while improving the quality of goods and services and increasing the speed of service delivery, by using Internet (Goal, 2007). According to Varley, (2006), since the start of the new millennium, shopping via a computer has moved from the something indulged by a niche market to commonplace activity amongst the population masses. Furthermore the new internet world provide the retail industry with a new and exciting way of enticing consumer to purchase the product from the comfort from their available place like from home, office or anywhere they can access the ‘virtual world'. In fact in recent developments in personal mobile communications industry would suggest that before long we will be able to go shopping literally anywhere at any time. Since the more improvement in the online shopping service is providing more and more luxurious service day by day so the the home delivery option alongside stores as the retail industry has developed.
According to Fletcher, Bell & McNaughton, (2004) e-commerce involves electronically medicated exchanges with customers. According to Rosen, (2002). Electronic commerce or “e-commerce” covers the range of online business activities for products and services, both business-to-business and business-to-customers, through the Internet. E-commerce breaks into two components: On the other hand side online auction is straightforward yet revolutionary business concept. Brokage business model, auctions bring the buyers and sellers together in a virtual marketplace. ( Bidgoli, 2002)
· Online Shopping: The scope of information and activities that provides customers with the information to conduct business with you and to make informed buying decisions.
· Online Purchasing: The technology infrastructure for the exchange of data and the purchase of the product over the Internet. Online purchasing is a metaphor used in business-to-business e-commerce for providing customers with an online method of placing orders, submitting purchase orders, or requesting quotes ( Rosen, 2002)
Estimates vary as to the size of the business-to-consumer e-commerce market. The International Data Corporation (IDC) estimates that the total purchases made over the web were $10 billion in 1997 and will be more than $220 billion in 2001 (Oliveria, Amorim and Vilao, 1999). These large s are put in a wider context by KPMG (1999) which reports that, “Direct sales are 5% of retail sales in the UK and 4#% in the US. Of this total, 16% US home sales and 1% of UK home sales are electronic.” Forrester Research (Tagliabue, 1999) whose 1999 research showed
Selling goods and services online is also called "ecommerce." Popular ecommerce Web sites include Amazon.com and eBay, yahoo shopping, etoys, the met store , smart shopper and so on. Ecommerce is not the sole province of large companies, however; many small businesses have found considerable success selling on the Internet.
Like this research content the use of the technology so the researcher would like to discuss about e-commerce service, Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. The e-commerce can be defined as a modern business methodology that addresses the needs of organization, merchants and consumers to cut costs while improving the quality of goods and services and increasing the speed of service delivery, by using Internet (Goal, 2007). According to Forrester Research at, the European online retail market is expected to grow from Euro 40 billion in 2004 to Euro 167 billion by 2009 (Forrester, 2006) Cited in (Burdick, Coakley &Richardson, 2006)). And what are the benefits of e-commerce service? But basically the people knows each and every coin has two side so when you get some benefits from the ecommerce on the other hand side you get some disadvantages of the ecommerce as well. Moreover, with the help of online shopping service people can save their time for the shopping, online shopping service is very flexible you can use it anytime. In the opposite side you cannot touch and feel it you can't get it immediately first you pass through the very long process of ordering and after some days limitation like after four days delivery or one week delivery your get you stuff.
But nowadays the most of the market work with the online shopping service like all the clothing stores provide Online shopping service. For example M&S, Next, Topshop, Matalan, Monsoon, and soon. These all the clothing company has very high share market value in the market and very huge turn over in the market as well.
According to the issue published in The Guardian, (2007), The weather also effect the shopping from the store and the online like the number shows how much it effect the market online market sales. In July 2007, because of the wet weather the sales increased by £4bn in a month for the first time at £4.2bn - up from £2.3bn in July a year ago - according to the Interactive Media in Retail Group (IMRG).
2.2 PRIMARK ONLINE SHOPPING SERVICE (STRATEGY) ADVANTAGES & DISADVANTAGES
Every new thing has its own pros and cons like online shopping service is advantageous as much as disadvantageous for the Primark. First the researcher would like to discuss the advantages of the online shopping service at Primark. According to the competitor of Primark's are M&S, Matalan, Topshop, Next and so on. All of the competitors are providing very good and fast online shopping service for their customers.
2.2.1 Business Benefits
According to the Rosen, (2002), by providing your customers with 24 hour-a-day,7-day-a-week (24 x 7) access to information, you can support sales, in some cases shorten the sales cycle, and cut your administrative costs, since customers have access to information when they want it. Some people believe that shown that FAQs on an online shopping site give customers a better idea of company's product and help them feel more comfortable making the decision to buy. E-commerce is a great way to get the business of these off- peak shoppers. For a very small amount of money, a company can have its “cyber-shop” open 24 hours a day and 7 days a week. Savings on customers service staff, savings on telephone operators and sales people, instant update of catalogues and prices, product targeting, active targeting , passive targeting, better overhead and inventory control, worldwide visibility, attractive option for the physically challenged (Shim, 2000).
Further all the advantageous strategy for the any company who introduce their online shopping service. With the Internet reaching all corner of the world so by introducing the online shopping service Primark can be reach all around the world. Actually they can advertise themselves globally for very small price. When the online shopping service the company proved they give the all the detailed description of the products so the Primark have to be recruit the less staff for the customer service staff, telephone operators, and less sales staffs. Like the customers when makes a purchase online is one less using the company's telephone operators and salespeople. Product targeting and active targeting both are the very helpful for the company. Primark can be accomplished actively or passively on the Internet to make their any product targeting. For the company Active targeting for the product by their product targeting Product targeting is in the two different way like the
Due to the further description of the 24 x 7 online shopping service is definitely very useful for the any company like M&S, Next, Matalan, etc have the same selling hour like Primark but they are selling more product by providing online shopping service. Furthermore nowadays people are more busy and addicted to use the internet in their day- to- day life. The world Internet users are the 100% present day compare to the year 2000. (Internet world stats, 2009)
Normally Primark is just getting the benefit of on-peak shoppers only because it does not have any online shopping service to provide their customers. With just the shopping hours the company is making very good volume of sales so think when the company launched their online shopping service it will be more beneficial for the company to increase the volume of sales.
2.2.2 Operational Management Benefits
Better availability of Service which means conveniently allows customers to shop in their homes from anywhere online. More benefit of online shopping for the operational management is cost reduction in information processing like reduce the cost of processing and retrieving order and customer information. Better timeliness of service means online operations can offer customers 24-hour servicer for purchasing good and services. Initial cost of operation less expensive, basically the capital investment in e-commerce operation is considerably less than brick-and mortar operations. Improved product development by the ability to be online with research and development people from around the world can help to reduce the time-to -market for new products and the cost of their development. Improved scheduling which is help full to the business. The online ability to keep track of product or service activities allows schedulers to be more accurate and timely in scheduling and rescheduling production activity, reducing costs (Heizer and Render 2001, p. 460; Laudon and Laudon 2002, pp.122-129; Kamarainen et al. 2001).
2.3 Disadvantages of online shopping service
There are so many disadvantages of e commerce business for the consumers like, credit card fraud, products that Don't show well, Limit to the Market, Small companies unprepared for global selling and soon. According to Shim & Anique (2000) Credit card number can be stolen by the disgruntled or criminal employee who has legitimate as well as illegitimate access to the company e-commerce system. There are so many disadvantageous of ecommerce possible capacity and bandwidth problems. Security issues are major concern for many consumers. Security issues and measures are expected to improve in coming years, through the use of media other than credit cards on the web, such as e-Wallet, e-cash and other payment systems, acceptance or digital signature, more widespread application and acceptance of encryption technology and greater awareness and understanding of customers' concerns (Bidgoli, 2002b). The main disadvantageous for shoppers, in ranked order were ‘Availability'; ‘Can't be in to receive delivery'; ‘Premium charged for delivery'; ‘Premium charged for delivery'; and ‘Can't see or feel the merchandise'.( Harris & Dennis, 2002)
2.4 Marketing contribution to High turnover
Introduce online shopping service Primark needs many promotional strategies for the promotion of new service.
To attract the customers and to publish new service they need so many promotional strategies like direct marketing, Advertising, publicity, sales promotion, Exhibition and so on.
Primark always focuses on low price high volume strategy to develop market. Specifically in this recession time, peoples also moves towards Primark low price value added products. To grab this opportunity they should have also low cost marketing strategy as well. In the modern world the Internet often becomes the best medium to communicate and search things around. As all competitors have Online shopping strategy they can easily grab the markets. Online shopping strategy helps to advertising the company's product. As a result of people's awareness about internet and the young age groups' tech savvy attitude, they can search their products, compare with others to make their orders online easily.
2.5 Market Share Value of Primark
At present Primark is number one UK clothing retailer in high street. There are so many competitor of it like Topman, Miss Selfridge, Dorothy Perkins, M&S, Tesco, ASDA, Matalan Mango, TK Max and soon. Primark has moved a step closer to toppling Marks & Spencer from the top spot in clothing market share, after its volume share leapt to 10.1% ( Ana, 2008). IMRG expects internet retail sales to increase by 15 per cent this year, with customers predicted to spend an estimated £13.16bn online in the lead up to Christmas. A new record for internet sales volumes was set last Monday - typically the biggest trading day of the week online - although in keeping with the wider economic gloom, sales values were flat (Guardian, 2008).
Growth for retail industry till year 2013 is weakens and steadies, First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modelling the economy captures the links between industries and the aggregate economy ( Hoovers, 2009).
Due to Hoovers, 2008 Primark business was -3% but in next coming year 2009 it is 1% less than the last year. For next coming three years it will be increased by nearly 4% continuously. In year 2013, the business of Primark will be increased their business by 4%.
· Business can be going on 24 x 7 days a year.
· Increase the number of sales volume
· Well managed store all the time
· Less staff recruitment.
· Increase the Profit because less money spends on training and development.
· Easy publicity of the product and name.
· Less rash of people in store.
· Promotional things cannot be sell easily in particular stores.
· Customers are not feel that secure as store shopping.
· Chances of the fraud of credit cards and bank details can be effect the reputation of the company.
Table 2 : Advantage & Disadvantages of online shopping service at Primark
CHAPTER - 3
This chapter described the methodology used to address the research issue . A summary of the methodology is then presented to provide the platform for the research. The methodology best suited to achieve the research issue aim is then affirmed, alongside discussion on other methodologies and why they were not felt appropriate for utilization with this research issue.
3.1 Research Definition
Research is not just a process of gathering information, as is sometimes suggested. Rather, it is about answering unanswered question or creating that which does not currently exist. Burns, (1994:2) defines research as ‘a systematic investigation to fins answers to problem'. Bulmer (1977:5) states ‘Nevertheless sociological research , as research is primarily committed to established systematic, reliable and valid knowledge about the social world'.
Type of Research
Research can be classified from three perspectives
1 application of the research study
2 objectives in undertaking the research
3 inquiry mode employed
The researcher research is contain descriptive research type which is regarding the new service for the Primark company which has not any online shopping service. So the researcher will start new online shopping service at UK Primark. To finish this research the researcher need both kind of data qualitative data and quantitative data. And some of the data in both of categories contain primary data and secondary data.
3.2 What is the Qualitative and Quantitative research
Academics confirmed that, in the main, two different research areas were distinguished: quantitative research, and qualitative research, (White, 2005; Saunders et al., 2007;Fisher, 2007). Quantitative research involved an objective way of studying things, whereas a qualitative approach assumed this was difficult and that the research was subjective, as the research issue clearly was in this instance.
Distinctions between Quantitative and Qualitative data
* Based on meaning derived from numbers
* Collection results in numerical and standardised data
* Analysis conducted through the use of diagrams and statistics
* Based on meaning
* Collection results in requiring classification
* Analysis conducted through the use of concepetualisation
Table 3 : Distinction between Quantitative data and Qualitative data
sources Dey (1993)Harvey and Rawlinson (1994); authors experience, Adapted from Sunders M., Thornhill, Lewis, (2009)
3.3 Primary and secondary data
Researchers usually start by gathering both the type of data Primary data and secondary data. But most probably first researcher would like to start collect the secondary data. The secondary data can easily available. According to Kotler, Armstrong, Wong & Saunders, (2008) Secondary data consist of information that already exists somewhere, having been collected for another purpose. Primary data consist of information collected for the specific purpose at hand. Secondary data can easily available because company can buy that from anywhere. It is provide good starting point for the research and also help to define research problem and objectives. Primary data need to make sure that it will be relevant , accurate, current and unbiased. Primary data collection calls for the number of decisions on research approaches, contact methods, sampling plan and research instruments. Secondary data is more quickly and available at lower cost than primary data. Sometimes the secondary data cannot be collect by the individual company on its own. Primary data include observation, survey and experiments which is relevant people, actions and situations.
3.4 Interview Technique
The interview is a qualitative tool of collecting primary data. There are various kinds of conducting interviews such as in-depth interview, semi-structured interview, group focus interview, structured interview, elite interview, ethnographic interview and phenomenological interview. The interviewers can adjust and rearrange questions according to the flow of the conversation. Moreover, there are mainly two types of interviews that can be taken up any researcher which are telephone interviews and personal interviews. Telephone interviews are used extensively is low cost form of personal interviewing that can be used to obtain information quickly. Administration of this approach is easy and has less interview bias problem. However, there are no human interactions, which can lead to interviewer bias or careless behaviour. However, to some extent personal interviews are also been used along with telephonic interviews. We would be conducting semi structured interviews as it suits exploratory research design.
3.5 Qualitative Data
The researcher find this all the qusalitative data of strengths weakness, opportunities and threats of Primark by visiting the stores and observing the behaviour of the customers and staff and the management. The SWOT of Primark is highlighted in the table below:
· Most Primark stores are on high streets or shopping malls
· Prices are reasonable
· All stores have large trading space.
· Good interiors, decor and proper signage
· Experienced retailer for over more than 40 years in operation
· It provides recyclable eco-friendly bags
· Frequent locator and international coverage
* No online shopping facility available.
* Weak public relation campaigns
* Shops crowded and services are not up to standard
* Mismanagement of clothes and accessories
* Dependent on suppliers
* Less promotional activity for stores and company
* Less number of fitting rooms
· Primark can introduce their own store card
· Have an automatic self scan area
· Introduce new section like kitchen range, fragrance etc
· Primark can introduce a refreshment area/cafeteria
· More advertisement and promotion; Tie up and links with various other shops
· Give more range for 35 years and upwards
· Can introduce variety supplier and talent
· Online shopping can also be introduced
* Unethical practice may jeopardise sales
* Price competition
* Inflation & recession (decline in consumer confidence/low disposable income)
* Other store selling for like products e.g.: H & M, Matalan, Tesco etc.
Table 4 : Fieldwork Primark SWOT Analyse
3.6 Quantitative Data
The researcher was fortunately able to arrange some interview with some of the Primark managers and customers. The interviews contained both negative and positive replies. However most of the responses were positive.
3.6.1 Manager's questioner interview
The below primary data shows what are the opinion of the managers about the online shopping service in UK Primark. All the managers have similar view about this innovation skip to some of them. They are appreciating this innovation. The researcher was arrange 8 interviews with different different Primark managers like Lakeside, Watford, Harrow, Oxford street, Hammersmith. Interviews with the managers give the following responds to the researcher:
The first part of the manger's interview questioner is (q1,q2,q3)give the idea about how much they are popular in the market. Averagely their is 10000 to 15000 people visit the store on a day to day basis. And the average spend per person is nearly £10 to £12.
Second part of the manager's interview questions (q4,q5) give the information about the company profit how much profit they are making ob year on year, their profit 112% on annual budget since inception 2006. In this credit crunch situation market is facing trouble but still Primark is increasing their profit on same level.
Furthermore the third part of the manager's interview questions (q6, q7) provides the details about competitors of Primark in the market. Due to the market situation Primark is the most famous retailers for like for like sales. According to all the managers opinion, competitors are New look, BHs, M&S, ASDA, Tesco and so on. Primark also prove itself as own their original Moto ‘Look Good, Pay Less'. So many managers says that the Primark is the only one place where people can just get scoks for £2, pair of Men's jeans for £8, and lots of thing people can find for very cheap price at Primark. Even whenever you pass though the high street you can see that most of the people hold Primark bags.
Last part of the manager's interview questions is part four(q8,q9), which is give us the information about the feasibility vice the online shopping service is good for the company or not. According to my all the 6 interviews with the managers like supervisor managers to HR managers. 70% response for the online shopping service UK Primark is positive, but 30% said that the company is not that much able to introduce the online shopping service.
Furthermore interview with the managers showed that Primark is likely to benefit from the introduction of an online shopping service for their customers. Because the company can save the money and can make the money by introducing the online shopping service. Different ways to save the money due to the managers like the need less staff inside the store to manage the store clean and tide-up. Another reason is they need less HR expenses like less training, recruitment and soon. Primark can run their business for 24 hours, and make more money with fewer resources.
3.6.1 The second questioners survey of Customers
The researcher did the survey of 50 people from the different part of the London. Thus survey also divided in two different groups Male and Female. Like Harrow, Hammersmith, Hayes, Uxbridge, Ilford and soon. The researcher was make 10 number of questions for the customers to get the positive or negative response to his/ her research. Each questions gives positive answer to the researcher just skip to the some.
Furthermore, the researcher get the reply with the Q1, is about how frequently the customers are visiting the Primark, and the answer is positivistic and 100%. To added some more, all most people visiting a Primark one's a month but some people who are visiting Primark more than one it means they visit Primark twice , thrice and fourth. Going towards Q2, which give the ideas about people are shopping from the Primark is planned or unplanned? The response to this question is neutral like 24 people said it is unplanned shopping and 26 said it is planned shopping. The third question also gives the common opinion of the people about with whom they would like to visit the Primark. The researcher gets variety of answers in different kind of options like friends, family alone, others. According to the response most of the people prefer to visit the Primark with friends the survey gives number out of 50 people 24 prefer to visit the Primark with the friends. Second highest number for the family which is 12. At last very less people prefer to visit Primark alone or any other option. Furthermore 10 peoplee would like to visit the Primark alone. And just very minimum number of response for the other which is just 4.
Moreover, Q4 and Q5 are giving the opinion of the customers about the Primark what they like and what they don't like. Most of the people like the primark because of its provide vast variety of choice in all the section with variety of design and colours number of people who chose this option is very huge which is 28. Another option from the customers to choose the Primark is that it gives cheap and low price cloths which is 18 people choose that option to shop from the Primark. Very less people prefer the Primark to shop because of its supply new fashion cloths. On the other hand side what are things which people don't like about the Primark. The researcher gives the four options to the customer to choose. Due to the 22 customers they don't like the long queue at till and the fitting rooms, which is the highest number of opinion about the Primark. Another 20 customer's opinion about the Primark dislike because of the store is very massive. People also say sometimes the things are available but if you are not finding by yourself then you cannot find it. And the third option also connect with the this option as when the customers can't find the stuff and they ask the sales assistant they are not giving a good answer which is very bad service for the customers. The number of opinion for it is 9. Out of the 50 customers survey, one customer who give very different opinion for dislike the Primark. He was gave the answer that Primark just supply the cheap nasty cloths that pollute the atmosphere. On this point the researcher can also provide some of the secondary data on this opinion.
According to this all above answers, the researcher was now ask the question about the Primark “Online shopping”. The question no 6 give the reply about the people will appreciate the online shopping at Primark or reject it. Even the researcher get the very surprising response for the online shopping at Primark The reply of this question is 71% which is 31 people , most of the people said they would like to buy the cloths fron Primark online shopping. Opposite side 29% reply which is 19 people says they will reject this innovation at Primark. Customers are also think that Primark online shopping will be beneficial for them which contain the response from question no 7. The reaction about the benefits from online shopping are nearly in same numbers which are 27 people said yes and 23 people said no for it.
In question 9 and 10, the researcher gets the idea about the customers opinion about the stock availability and variety of stuff. Like in question no 9 ask the customers about stuff availability is more at online shopping compare to store. That time customers response to it is for positive and neutral are same. But 20% people not thinking on same direction they said no they cannot get more. Moreover question 10 is about the particularly the availability of varieties at Primark different stores. And the customers more reply to the positive said they also think that all the stores have not all the stock availability the reply to this question is out of 50, 32 customers said that's true. Even 18 customers said no as well they think its not make any difference like at shop floor or online shopping.
Furthermore interview with the managers showed that Primark is likely to benefit from the introduction of an online shopping service for their customers. Because the company can save the money and can make the money by introducing the online shopping service. Different ways to save the money due to the managers like the need less staff inside the store to manage the store clean and tide-up. Another reason is they need less HR expenses like less training, recruitment,
3.7 Secondary data
Due to the technological era and this fast growing world has not enough time to spend on their shopping and etc. Online shopping is best option for them they can get their choice stuff from vast range of things. Primark is already famous for its look good pay less motto, by introducing new service for their customer online shopping they can provide more facility and more strength to compete with their competitors like M&S, Topshop, Asda, TK Maxx and soon.
Due to the Guardian (2008) report about the online sales boom, British shoppers spend 17p on online shopping , out of every £1. A new survey shows £26.5bn was spent on the internet in the first six months of this year - up 38% on 2007. Online retailers at the bottom and top of the market are performing best. Visits to the Primark and Harrods websites, for instance, are up 12% and 14% respectively on a year ago, while visits to midmarket sites are down 6%.
The chairman of Associated British Foods Plc, (ABF) Mr. Charles Sinclair , who give his statements in the annual report of year 2009. Primark continues to deliver excellent growth in both revenue and profit, achieved through strong UK like-for-like sales growth and the addition of further retail selling space. Whilst there are still many opportunities to extend Primark's estate in the UK and Ireland, expansion into continental Europe represents an exciting and substantial growth prospect for this highly successful business (ABF, 2009). Another statement from the chairman of ABFplc Group revenue increased by 12% to £9.3bn and adjusted operating profit was up 8% to £720m. The chairman believes that more than 50 % revenue and profit arising outside the UK. Because of the favourable are increased in currency translation effect on these results. Good trading was delivered by a number of our businesses, most notably from sugar in theUKandAfrica, Allied Bakeries and Primark. Primark continues to deliver excellent growth in both revenue and profit, achieved through strongUKlike-for-like sales growth and the addition of further retail selling space. Whilst there are still many opportunities to extend Primark's estate in theUKandIreland, expansion into continental Europe represents an exciting and substantial growth prospect for this highly successful business. (ABF plc, 2009).
Cheap garments, often made from manmade materials which cannot be recycled easily, are being worn just a few times and then binned, the Environment, Food and Rural Affairs Committee found. Staff at the site had already labelled the problem the "Primark effect" (Telegraphs, 2008). Primark cloths are also famous for its cheap price and most of the cloths are not recycled because the most of the cloths from the manmade material.
20 - 24
25 - 29
30 - 34
Annual budget for consumer product ($US)
Table 5 : E-consumer and Non E-consumer in UK and US
Adapted from (Fazlolahi, B., (2002)
According to the further table which is showing e-consumer survey like from every 164 consumer 117 consumers are e-consumers and just 47non e-consumer. Furthermore the table shows that in UK majority people would like to shop online or any other way they are be e-consumer, the numbers of the people we can say in UK e-consumers numbers are increase. Regarding the age like the survey shows that age over 35 years they are divided in four different groups like under 20, 20-24, 25-29, 30-34, and the last group over 35. The largest group of users of e-consumer are between 20 - 24 years group, which is 49%. Compare to the US the e-consumers numbers 4% more in UK. Allotting to gender wise the male and female both are averagely like to shop online but the numbers are showing that male are using more online shopping to shop in UK is 62% which is higher than US . On the other side in US female e-consumers are more than UK.
Alongside the growth in company or industry-specific communities, more generic online social networking has become hugely popular in recent months. According to Goad and Mooney (2008) the most popular social networks in the UK are currently Facebook, Bebo and My Space, with market shares of 38, 28, and 19 percent, respectively. The authors cite s showing that a larger proportion of the UK population have chosen to communicate with friends through social networks than by e-mail services such as Hotmail since October 2007, and that the age profile of users is rising rapidly with strongest growth amongst the over 55s. Businesses are now recognizing the potential of these communities for the development of their brands and to build relationships with key customers. For example, the retailer Primark is surfing the wave with its Primark Appreciation Society Facebook Group that has over 100,000 members who are signed up ‘‘fans'' of the Primark brand. Satisfied customers brag about the bargains they have found in the stores or campaign for the opening of new Primark outlets in their locality. On the same discussion boards, however, disgruntled customers also complain about the poor quality of goods they have purchased from the company.
From what has been said so far it is clear that, as with all marketing activity, promotion must be based on sound knowledge of the customer. The market segment will have been carefully chosen and the product or service developed or ‘positioned' for maximum appeal to the segment. The role of promotion is to develop a message based on clear objectives and communicate with the customer via that message, which may be to do with quality and value of product, the reputation of the supplier, etc. (Frain, 1999). According to new service and promotional strategy to promote the online shopping service at Primark, the seller spend their money and time to make their new service famous around the people. Rose in the sales from fourth quarter of 2008 for retail giant Marks & Spencer, Sir Stuart Rose, the chairman announced today. The results, which did see some sales drops, were better than expected and have seen the share price of the retailer rise by nine per cent. Marks & Spencer (M&S) announced its fourth quarter trading statement for 2008/2009 this morning. Group sales were up by 1.9 per cent and its growing online business reported an increase in sales of 20 per cent (CIO, 2009).
3.7 Competitive Analysis
According to Hitt, Duane & Hoskisson, (2008), the result of an effective competitor analysis help a firm understand, interpret and predict its competitors' actions and responses. Understanding the actions of competitors clearly contributes to the firm's ability to compete successfully within the industry.” Primark has not their own name company share because it is merger with the Associated British Foods plc. Primark do so many promotional strategies for new online shopping service via advertising, publicity, sales promotion, personal selling etc. They advertise them via electronic and print media like they can make 5 to 7 minute trailer of the store and exhibition of the store with some famous model or celebrities.
3. 8 DATA ANALYSIS
To collect the data the researcher did the two different types Customer survey and manager's interview. With the help of these two different type of data collecting style groups one group of managers and other one is customers. The researcher arrange the five interview of managers of the different different five stores which are situated in Harrow, Lakeside, Oxford Street, Hammersmith, and Watford.
Manager's Interview Data Analyse
To analyse the manager's interviews, they all the answers to the same question are some different type of the reply. Some question answers of manager interview can be reply by graph but some are the descriptive.
The reply of question number 1 is give the idea about how much money in a day like turnover of the day. The researcher gets variety of numbers for this question from the manager side. The following graph showing the turnover of one day at some of the primark store in UK like Oxford street, Lakeside, Hammersmith, Watford, Harrow.
Luckily, The researcher get chance to arrange the five interview woth firve differen store's managers. Out of that all the interview the two stores are Group A and annother one is next to that, the oxford street and Lakeside. When you see the oneday turnover just inside the London's some of the stroes is surprising. Due to the aboce graph maximum turnover in at oxford street Primark a day which is £310000. Second highest turnover in is Lakeside store which is £275000.Furthermore Hammersmith and harrow stors are not that much busy like others because the number for that two store are less than compare Watford store. Watford store get money in 220000 a day, then Harrow and Hammersmith store just do 100000 and 200000.
Now the researcher analysis the question number 2. Whcih gives athe idea how many people a day visit the Primakr. And whenever you see the following graph numbers are suprise you.
Due to the above graph Primark is the high street store where the more people are visiting. Because the above graph shows that minimum numbers of the people are visiting Primark is 10000 at Harrow a day. And the maximum numbers are vsiting Primark at Oxford street store whcih is 25500 people a day. And another three store like Lakeside , Hammersmith and watford have also large number of people are visiting . The numbers of visitors at Lakeside Primark is 23000 , the graph shows that watford also getting large number of visitiors at Primark because the numbers for that is 20000 and hammersmith has also the very good numbers of visitors whcih is 18000.
Now the next manager question give the idea about the how much money minimum money spend by the customers at Primark. The following graph shows the amount whcih is minimum per head spending.
The above graph shows that the minimum spending of the all the stores. The similar things to the graph are that all the stores get nearly same number of amount spend to spend per head. In oxford street per head spending is £12.15 pence but another all the store has nearly same. Those per head spending also shows that all the big store or small stores are getting the average spending from customers are same. Like Oxford Street store is very A grade store and very big store compare to Harrow Primark store. But then both the place get nearly same amount spend per head which is nearly between £10 to £12. The Lakeside store get £12 per head spending. And another two store Watford and Hammersmith get £11 average per head spending by customers at Primark. The Harrow is not so big store but it has also good amount of spending per head which is £10.
Manager's interview question part two is give the information about Primark company profit and the Profit to all the stores has same. Because the all the managers talk about the overall company Profit which is compare to year 2006 is 112% increase on year on year bases.
Customers survey Data Analyse
In the customer's questioner survey include 50 different type of Primark Customers from different part of the UK stores inside the London. The survey contains the 25 men and 25 women to reply this questions. The researcher divide her survey in two different groups men and women groups, which contains 25 number of men and 25 women. Oxford street Primark store is Grade A, store in in London and the lakeside store is Grade B store. Moreover Hammersmith, Watford, and Harrow are also big store even they are not counted in grade store but then they are also making very good sales.
Due to above graph, the graph shows the customers frequency of visiting Primark in a month. Most of the people visit Primark once a month. It means the answer for visit a once is 100%. Out of that 50 customers 30 said once a month and 17 said 2 to 3 times a month. And very few people who would like to visit the Primark very frequently like 4 to 5 times in a month. The result of the survey shows that most of the people would like to visit the Primark for its own logo ‘Look good, Pay less'.
Now the question one answer makes us more curious for question 2 because all the questions are related to each other. Q-2 is regarding which way the people visit the Primark. Whenever they visit the Primark their journey or shopping to Primark is planned or unplanned.
From that two groups the researcher was get different different response like out of 50 people group the response for unplanned visit is 24 people and rest of the people are visit the Primark in planned thinking. According to above graph, 24 unplanned and 26 numbers of people planned shopping to the Primark contains different numbers of genders. Out of 24 unplanned shopping responses to the Primark is showing different numbers of both genders, graph shows the male response for unplanned shopping from Primark is 10 numbers. And unplanned shopping to Primark by female is 14. On the opposite side for the planned shopping to Primark is more numbers than unplanned shopping which are 26. The numbers of response for the planned shopping from Primark is high numbers from the male side which are 16. But the numbers of female are very less for planned shopping at Primark, the graph shows very large difference between the planned shopping and unplanned shopping by female from Primark.
Below 8 is Gives the answer of question 3 which is about with whom customers would like o vist the Primark. That question also have give four multiple choice answers in options like friends, family, alone, others.
The above graph give us the information about with whom customers visit the Primark. Most of the male customers visit the Primark with friends and family, the numbers for both the option is 9 and 8. On the other hand side, female prefer more friends rather than family to shopping at Primark. Because the survey numbers shows the far difference between them, the numbers of with friends are 15 and family are just 4. Very less number of female are choosing the family as companion for shopping because out of 25 female just 4 female which is half then male visit with the family numbers. Very less number of customers are visiting alone Primark store, the numbers of visiting alone from both genders is most of the male prefer to visit the Primark alone which is 6 number of people. Moreover female are less which is similar to the numbers of family. For the fourth option others, in which customers suggest that it is depends upon the situation. Again the numbers for the both sex is same 2.
Q 4 is regarding the why people would like to choose the Primark for shopping. the question had three options cheap or low price, give vast variety of choice and thirs last option is Providing New fashion cloths. The answer to this question is different for all the option from both the genders. You can get the idea bout it by observing the below graph.
The above graph has three lines for each opinion of the answers. Most positive answer for the second option which is give vast variety of choice and number of response for that option is 28. And the numbers for both the responses are, male are 16 and female are 12. This answer shows that man would prefer more choices option for the shopping. Furthermore, female also like to choose the stuff from the variety of choice. The second highest reply for the tghis question is Primark is providing the cheap low price cloths. The all over response is 18, and gender vice male 8 and female 10. This answer shows those males are less conscious about the price they just bother about the stuff and variety. But on the opposite side females are more conscious about the Price the number of response are 10 for it. This reply gives the idea about the female test for the shopping to attract the women customers the retailer have to be provide some cheap stuff to them.
For, the third last option is new fashion cloths, and both the gender's has same numbers of reply for it. Male response out of 25 men just 2 prefer Primark because of it providing new fashion cloths. Another gender female also had a same number of responses for it. It means Primark is not that much famous for its new fashion cloths. Then, Primark is more popular in the market for it providing more option of choosing cloths.
The customer questioner survey Q 5 is give the idea about what is the thing which customers don't like about Primark. Out of that 50 responder of the survey who are the Primark regular customers, the following things are dislike by them, massive store, long queue at till and the fitting room, customer service and last other in which customers can give their own opinion.
The number of answer for the customers' dislike about Primark is in fever to long queue at till and fitting rooms. It means is that Primark has very less number of the tills. The response of the survey is for this is 22 customers don't like it. Particularly, 14 males and 8 females don't like the long queue at tills and fitting rooms. They had many number of tills in all the stores according the size of the store. But the response for this option shows that 80% of the high street visitors are visit the Primark and also shop from Primark.
Another things customers don't like about the Primark is the massive stores, and the reply for it is second highest, 12 female don't like and just 8 male negative response for it. This response also gives the idea about the Primark most of the stores are very massive and miss managed. Even some times customers could not find the stuff even it is available in the store then. These responses indirectly connect with the third option about the customers' service. But the customers opinion for this option is very less about they don't like the customer service at Primark. The graph shows that very less response for this which is 2 males and 5 females who don't like the customer service at Primark. The dislike about the Primark store is for the long queue at till which shows people need something more at Primark to short out this problem. Now the researcher highlights her point of view why she is doing this survey to get the opinion of people about online shopping service at Primark.
The number of answer for the customers dislike about Primark is very long queue at till and fitting rooms. According to that all the opinion the researcher would like to do some new innovation at Primark. The researcher would like to know about customers opinion about Primark will provide the online shopping service then they will appreciate it or reject it. The following graph gives the description about the people's thinking about Primark future with online shopping service.
The above graph give the information about the new invention at Primark will be appreciating by Primark's customers and general people of reject it. The graph bars shows that most of the male and female are appreciating that innovation at Primark more rather than reject it. But numbers for both choices from male side is 16 numbers for appreciate it and 9 number of male reject the new invention at Primark. The same reply from the female side as well, they also appreciate Primark online shopping than reject it. Because there is more number of reply on positive side is 15 female appreciating and 10 female rejecting the online shopping service at Primark. Moreover, the reply of this question is taking the researcher research on positive track because he/she would like to check the feasibility of online shopping service at Primark in UK.
Q 7 is Primark online shopping service is beneficial for the customers. The question has two optional answers yes and no. The answer of this question give the idea about which way and what are the benefits the customers will get from Primark online shopping. With the help of this question the researcher can present what type of benefits for the customers he/ she thinking.
To analyse above graph, the more number of answer toward positive part. But most of the people think that Primark online shopping will be more beneficial for the customers. The researcher gets more response on the yes side which is 27 for that male are 15 and females are 12. On the opposite side the opinion for no is 23 which is less than response to yes. Female numbers are more on the negative side is 13 rather than males which is just 10. The purpose of the researcher to ask this question is that sometimes people have not that much time to see the all the stuff inside the store then they can check the availability of the stuff from online and just go to the store and buy it very quickly. And sometimes they give some special offers online only that offers are not available inside the local stores. Some times in Primark stores some promotional offers available for some particular day only and this all the days are different at every where so the people can't take that benefit from online shopping service.
The next question number 8 is gives the idea about customers preference to Primark online shopping service. Response to this question is very strong from both gender male and female.
Due to the above graph, answer from the both gender is for positive are more numbers than negative. The numbers of male to prefer to shop from Primark online shopping service for yes is and 13 for no. Opposite side female numbers for both answers is 19 and 6. Females are more active to shop from the Primark online shopping than males. The bar line for the both reponse is showing more positive towards the innovation at Primark. More numbers are preferred to shop from Primark online shopping service. This response makes the researcher research on more positive way. It shows that hopefully the online shopping service will be more acceptable by the people.
Q 9 is regarding the stuff and choices the customers will get more stuff online. According to the customer's their own experience they give variety of reply to this question.
According to above graph the three different lines provide three type of different opinion of the customers. For the two opinion yes and neutral get the same numbers of the response which is 20. Very less number of reply for the negative response which is 10. Male think that online shopping gives more opinion for positive side is 9. Opposite side the negative response for this question by male is 6. Most of the male due to their own experience they are neutral for this answer numbers for this response is 10. Female also give similar reply for all options, like for yes female number of characters are 11. Again the female number of characters for neutral option are same which is 9. Female number of characters on negative side response is minor just 5. This question answer give the idea to the researcher that nowadays most of the people would like to shop from online shopping service Moreover response to the Positivity is 40%, but it means not that another 60% response is negative. Another 40% people is neutral to this opinion which is shows its depend upon the situation. This all the responses are very helpful for the researcher which is take this research towards global market.
The last question of the customer's questioner survey is about the what are the difference between the online shopping and store shopping. Because of all over the UK, all the Primark stores are not same specious. That's why the researcher ask this question to customer that will customer get more opition and choice on online shopping service than Primark stores. Even, customers has two opintion to give their opinion about this question.
According to the above graph how many people would like to shop from Primark online shopping. The response to this question for yes is more comparing to no. Out of survey 50 customers, 32 customers opinion yes and just 18 customers opinion no. According to that 32 customers who said that's true the customers will get more options online shopping than store. Like all the stores around the UK are not same specious like Harrow, Hounslow, Wembley and soon. For the yes response numbers of female are more compare to male. Out of that 32 to positive responsemore numbers are from the female side which is 17 and male is just 15. According to that rest of the people who gives negative response to the question which are 18. Now the numbers of response from the male side is increased for this option which is almost 10 and for female is just 8.
Due to both the data analyse manager interviews and customers survey the response is more positive rather than negative. So the researcher research will be go forward on the positive way. And it will be bring something new in the market as well like now people can buy cheap cloths online. The new service will not be just useful for the customers but it will also useful for the retailer as well.
4.1 IMPLEMENTATION STRATEGY
Primark will introduce new online shopping service from December 2010. To implement the new online shopping service they introduce special site for the shopping like (www.primarkonlineshopping.co.uk). Whenever customer visit the site they can take first step that the customer can assess the site without any registration but when hey like any stuff from the variety of clothing range they just registered themselves with the help of log in.
Primark will be make their business through online shopping service by doing this steps for customers.
Like firstly customer visit the Primark site by write www.primarkonlineshopping.co.uk and then after they can be login. After login they can get variety of category option and customer can click on their desired category then after they can get information about the cloths what sizes are available, colours and which type of material they are using to make the clothes. Sometimes it can happen like some sizes or some colours are not available for some particular design then the user can delete their item from the list or they can give the suggestion to the store operator.
Whenever the user can choose something from their then they can check out and go to payment. For payment they can use so many options like they are not worried about its leaking of any information about their financial details. That all the information enter with secure code programme. At the end when the payment will be finish user can be logout.
4.2 Suggestion Box For Improvement In Service
Primark provide online suggestion box for improvement of their new online shopping service. With the help of suggestion box user face any problem or incontinence for using their new service they can send their queries to their online sales advisor and in next few minutes the user get the solution of their queries.
4.3 Blog of complaints/issues/comment
By providing the blog of complaints /issues/comments are very helpful to the company because the management can directly connect with complains. Furthermore they can take action on the queries or any good suggestion for the company
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