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Quick revolution in style and brands are making people more aware while choosing their product. We have number of fashionable stores in United Kingdom but all are not affordable. Besides these expenses stores we have Primark to look at. In this case study we would know how Primark clothing approaches consumer needs in cost effective way.
Primark is a retail company that deals in clothing accessories .Arthur Ryan founded Primark in 1969 in Dublin Ireland. Primark's main office is in Ireland and it's a part of Associated British Foods. It has more than 200 stores in different countries like Germany, Spain, Belgium, and Netherlands. Primark owns women 'swear men's wear, children wear, footwear, accessories and home products
ABOUT COMPANY: The business aims and objectives
As the saying goes - if you don't know where you are going it does not matter which way you go. So it's very important in business to have aims and objectives to gain profits and to know how your business is doing and where you want your business to raise in future. Objective means policy to achieve the set target. It has following aims and objectives.
Primark has targeted every group from children to oldies .Its basic business goal is to provide products to public of good quality at low price. To achieve this aim it has inclusive range of choices to pick from. To meet this aim the company works with manufacturers around the world who has low labour and material cost like India China and some more countries. For the customer convenience Primark has good number of staff and helpful too. Staff in Primark helps the customer on the spot and consumer can change the product as well if they find any fault later on. By doing so Primark has increased the number of buyer for the company. Primark has offered worth for money by making designs simpler and in most popular sizes. Most importantly Primark do not spend a lot of money on advertisement still gets the good response from the buyers. In short we can say that Primark's main aim is to be Cost-effective and maintainable that means
Meeting consumer requirements
Making contribution to society
CORPORATE SOCIAL RESPONSIBILITY (about us 7/may/2011) reference
Primark also has a sense of being responsible corporate citizen and by doing so it helps in creating reputation of company. It builds the brand confidence and also reduces the risk of bad publicity. Primark also follow business ethics as well as they can. By saying business ethics means taking care of all those who are involved in business process. It includes
Taking care of staffs
Maintaining corporate relationship
(PG: 68 OF BOOK) the power of cc
ANALYSIS OF COMPANY: In this the company has been analyzed on the basis of reputation identity and image.
There are several factors involved to determine how your company conveys its vision to public and in return what kind of reputation your company has in the market. There are three main factors that contribute to the reputation of your company which are:
Identity it shapes.
How public perceives the overall image.
Alignment of company's identity with the image held by the constituencies.
Primark has built the reputation of being cheap clothing retailer in the market which is actually good for bargain hunters. From the last five years Primark has become a successful fashion story. Throughout the high street fall it has built the reputation as a seller of extraordinary cheap clothes and customers also welcome their new stores. Besides the positive sign the company has gained negative reputation as well. In 2005 the Primark was criticized for not having the code of conduct and also in June last year the news came that those factories where Primark clothes are made are using child labor. But after fresh exposes of holes in its supply chain ethics, Primark is working actively to stitch its reputation back together. For this Primark sacked some of its suppliers those were using child for the work. Also they have joined an ETI (ETHICAL TRADING INITIATIVE).
IMAGE AND IDENTITY: Image is something that reflects the organization identity. That means how customers, investors or company's own employees view the company. In another words we can say the relationship company enhances with them. On the other side Identity is carried forward by the company's logos, products, services, buildings, uniforms and any other noticeable evidence created by the company to communicate with a variety of constituencies.
Primark in other words Prime Mark as the name says they do not need any other logo besides the name of the company. It has its own brands like atmosphere, Denim, backswing, secret possession and few more. For customer convenience Primark has return and exchange policy in which customer can change or back the product they have purchased from the showing the receipt of course.
According to the comments in forums.moneysavingexpert.com the consumers are happy with the company. They do not have to wait long in the Queue also at the tills on customer service and no waiting in the fitting rooms. The value for money company offers to the customers also helps in gathering more and more buyer. Especially the students are glad to find company like Primark as the products there are affordable. Most importantly the products in the stores are available in almost every size which is the plus point for the company. And that is how consumer perceives Primark
CORPORATE COMMUNICATION MODEL
"Corporate communication is a process a company uses to communicate all its messages to key constituencies- a combination of meetings, interviews, speeches, reports, image advertising and online communication''.(PAUL A. ARGENTI & JANIS FORMAN) (The Power Of CORPORATE COMMUNICATION)
"Corporate communication is a strategic tool for the contemporary corporation to gain a competitive advantage over its competitors. Managers use it to lead, motivate, persuade and inform employees and the public as well". (Michael B. Goodman) (Corporate Communication Theory and Practice)
IMPORTANCE OF COMMUNICATION
In today's business life Corporate communicate has become a vital part of business policy. Nowadays every company or organization desires to develop their business in as many zones they can do. Here corporate communication helps companies to shape or build corporate presence identity and reputation in the mind of customers, stakeholders and others.
CORPORATE COMMUNICATION IN PRIMARK
COMMUNICATION WITH EXTERNAL STAKEHOLDERS
In External stakeholders it includes customer, supplier, or investor that influences and is influenced by an organization but is not a member of it. (http://www.businessdictionary.com)
Primark do not advertise for their products as they have direct communication with the buyers. Customers are the only reliable source for the company's marketing. Though company has its website but with little information as in shoppers cannot buy products online.
After media and campaign pressure to amend the issues like child labor or wage issues Primark really pull their socks to get back their stakeholders. In 2009 ETI report Primark said to be "achieving sustainable improvements in working conditions and respect for worker rights by engagement with suppliers, trade unions, governments and customers. These actions are informed by, but go beyond its supplier assessment programme".
(Ethical Trading Initiative Management Benchmarks 2010)
CODE OF CONDUCT
The company has set its code of conduct on the International Labor Organization code which is applicable to the suppliers and the factories manufacturing for them.
FOLLOWING ARE THE SOME OF THE CODE OF CONDUT
â€¢ NO DISCRIMATION WHILE CHOOSING EMPLOYEE.
â€¢ NO CHILD LABOR
â€¢ LIVING WAGES ARE PAID
â€¢ NO EXTRA WORKING HOURS
â€¢ NO HARSH OR INHUMAN TREATMENT
INTERNAL STAKEHOLDERS/ROLE OF HR
The business is carried forward by the people who have a complete passion for retail, are enthusiastic, dedicated and committed to delivering results and excellence in all their activities. Primark has policy named "EQUAL OPPURTUNITY POLICY". In the policy every individual gets the equal chance to grow or progress within the company.
The purpose of this policy is to demonstrate the Company's commitment to an environment of equal opportunities to both employees and potential employees.
RELATION WITH EMPLOYEES
There are number of people from different countries areas who are working for Primark. Company has employee from countries like India China and Bangladesh. To build strong communities and relation Primark help the employees for better future prospects as well. Following are some of the work done by company to enhance the relation with their employees:
Bank accounts for workers
Health care education for women
Working with homeworkers
Better rights for women workers
Working towards living wages
Better places to work
HOFSTEDE CULTURAL DIMENSIONS
Technology has carried the world much closer together. This means that people of different cultures find themselves working together and communicating more and more.
Building connections with people from around the world is just one dimension of cultural diversity. You also have issues like motivating people, structuring projects, and developing strategy.
There are Five Dimensions of Culture
Power/Distance (PD) - This refers to the degree of inequality that exists - and is accepted - among people with and without power.
Individualism (IDV) - This refers to the strength of the ties people have to others within the community. A high IDV score indicates a loose connection with people.
. Masculinity (MAS) - This refers to how many a society sticks with, and values, traditional male and female roles.
Uncertainty/Avoidance Index (UAI) - This relates to the degree of anxiety society members feel when in uncertain or unknown situations. There are very few rules and people are encouraged to discover their own truth.
Long Term Orientation (LTO) - This refers to how much society values long-standing - as opposed to short term - traditions and values. This is the fifth dimension that Hofstede added in the 1990s after finding that Asian countries with a strong link to Confucian philosophy acted differently from western cultures.
NEW TECHNOLOGY AND CORPORATE COMMUNICATION
Prior there were no technologies like radio or television but now they have brought mass means of communication, which changed the mode of communication and receiving information among the people. The Internet again causes many changes in the way people communicate with one another, and it has changed customer behaviors dramatically.
Primark aims to provide value-for-money products, while keeping its ethical standards high. This involves paying for independent audits and working with suppliers and external agencies on key issues. By being open with its processes, Primark shows its commitment to responsible manufacturing. This helps to assure people that its goods are ethically produced.