We will use this model to define and criticize the marketing strategy of the Primark and Atlas Honda.
Primark has its objective of 'DELIVERING VALUES AND TRADE ETHICALLY'
http://www.primark.co.uk/ethical/values last access 10th march 2011
Primark use the leaflets drop, ads on bus shelters, the London Underground and radio ads. university of wales, marketing, database source complete
Above marketing strategy used by Primark for his new stores in BRITAIN and it opened six more new stores one of which is in the oxford circus.
According to Ansoff model we can explain the marketing strategy of Primark as follows
Market development strategy which is in new market in existing product so the entry from Ireland and to Britain and other European countries is the example of entry in new market.
Product development is in new product in new market, so Primark products are women, men, child wears but it include homemade garments as well, product development strategy basically elicited the customers to come in the store for all his garment needs.
But the problem in market development strategy is the high distribution cost which Primark used to distribute his merchandise which it get form Asian countries and distribute them to his different stores which cost him high and reduce his profit.
Market penetration is to enter in the market with the low price to compete in the market as the GILLETTE company sell his MACH 3 new product in the market on 60% of cost which is the best example of market penetration to enter in the market with low price, so the entrance of Primark in the BRITAIN garment industry is the market penetration in the presence of GAP,NEXT etc, with low cost strategy, but market penetration strategy has the main criticize is that it starts the price war in the market and through the small entities out of business
Diversification is to diversify from the industry to another industry which comes into unrelated diversification so the parent company of Primark ASSOCIATED BRITISH FOOD, who diversify from food to garment is the unrelated diversification. But Primark has it self not any diversified activity in any other industries.
ATLAS HONDA use mostly the electronic media for his products marketing as internet, television ads, salesmen etc.
For CD 70 and CD 100 Atlas Honda target middle income families and mostly these bikes used in villages due to the brand loyalty and durability.
CG 125 and CG125 DELUXE these both bikes target the special segment of market with the customers who want to pay more for high speed and beauty of the products.
DIVERSIFIATION is the Honda joints venture in Pakistan as Atlas Honda is his related diversification in motorbike industry. The problem with Atlas Honda in his joint venture is that it manufacturing units in Pakistan and the changing political parties and insecurity affecting its this diversified product making units which affect the motorbike production and the business as well.
Product Development is the four type of product CD 70, CD 100, CG125, CG125 DELUXE are the example in market for product development, the Atlas Honda believe in quality in return of high prices which opened the ways for his competitors with low cost and low price strategy like Chinese company STAR, SOHRAB, LIFAN etc. which affect the market share ( 63% in Pakistan) and the profit of the company.
Market Development strategy of ATLAS HONDA is it exporting the products to Bangladesh and Afghanistan is its market development in other countries, this means the distribution cost will be high for Atlas Honda and affect his sale and profit in the market.
Competitive priority include low cost operations, top quality, consistent quality, delivery speed, on time delivery, development speed, customization, variety and volume flexibility, these are the competitive priorities which set a company aside and superior to the rest of the companies in the industries by the result of his operations, it is not necessary that a company acquire all of them to compete but it can get any mixture of them to perform well.
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