Introduction Primary is an Irish clothing retailer, operating in Europe, in countries such as Germany, Spain, Ireland and United Kingdom. It Is a subsidiary of Associated British Foods (ABA), a British multinational food processing and retailing company. Primary first open in Dublin 1969 under the name Penne’s, and have retained the name till this day in Ireland. Over the years Primary have expanded by buying out their competitors such as British Home Stores (BBS) and Clemens and August (C), they now have 257 stores across Europe (Primary, 2013).
Primary sells clothes that are economical affordable. The company sources cheaply, using simple designs and 1 OFF in their distribution change, the source all their products (Primary, 2013). Presently Primary Clothing are worn all over the world. However, Primary only has stores and outlets in Europe. This report proposes Primary entry into the Nigerian retail market using two As (Promotions and Product), the marketing mix, marketing planning, entry and analysis of the cultural factors that may affect the process.
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Insignia’s retail sector is undergoing change with international retail brands entering he country, new malls being constructed and the transformation of informal markets into more modern facilities. Shoppers a South African retailer and the biggest on the continent have been in operations in Nigeria and have branches across the country in Lagos, Baja and Procurator. They are other retailers like Spar (European retailers), Ezra and Mango who have recently opened outlets in Lagos. The retail industry in Nigeria has witnessed strong growth within the last five years and industry watchers are speculating more growth in the coming years.
The industry is currently valued at about Nobility ($46. M) annually and is yet to receive any real support from the government (Businessman, 2012). 3. Market attractiveness: Nigeria is a large market, the biggest in Africa with a population of 160 million people with a young demographic of about 70% of the total population are less than arrears of age Nigerian Government in 2003 had imposed a ban on imported textiles to encourage domestic production. However, in led to smuggling of inferior clothing, some of them second hand because of the prices of selling these clothes.
The ban was overturn in 2010, although the effect of the ban still lingers (Business ay, 2012). There is still demand for these second hand clothes, known in Nigeria as ‘Bend down select’ meaning get down and pick, because usually the clothes are scattered on the floor. Thereby the introduction of the Primary will be welcome development because the clothes are financially economical and the quality is better than the clothes either produce or imported into Nigeria with the same price bracket. The market will be analyses by using Porters 5 Forces and SOOT analysis. 3. Porters 5 Forces Michael Porter’s 5 forces identifies five forces which impact Primary in Nigerian arrest such as rivalry, competition, buyer, seller and threat of new entry. Firstly, the threat of new entry into Nigeria as a developing economy, thereby there is always possibility of new entrant into the retail market. There is a lot of potential in the industry, the ban recently being overturned and prospects yet to be realized with recent foreign investments. Fig 1: Porters 5 Forces Source: Porter (1998) The availability of substitutes. They are other substitutes to Primary in the Nigerian industry.
However, most of the alternatives to Primary in Nigerian are higher end retail than financial economical. Thereby Primary can use the this opportunity to get more customer because of the quality and value of their products 3. 2 SOOT analysis This analysis is the strength, weakness, opportunities and threats that Primary would have to analyses as they expand to Nigeria. Strength Weakness Multinational Corporation leverage New Culture Technology Leading Brand Opportunities Threats New Market Political Stability Change in Government policy Power Supply Low cost work force Young Population 4.
Market Entry According to Jeanne & Hennessey (2004) the market entry strategy of a corporation would be analyzed carefully by assessing the level of risk and investment the Primary wants to have in Nigeria. In addition Corporations need to make assessments of various factors to such as political, cultural and economic to determine the entry. Figure 1: Market entry. Source: Jeanne & Hennessey (2004) 5. Market Planning Marketing planning is a fundamental to the growth and expansion of Primary. It is the planning process in a continuous process, not only conducted at the beginning but during and after the entry into the Nigerian retail market.
According to Jeanne & Hennessey (2004) market planning is crucial to Multinational Corporation. They are various forms of market planning, however the model below is the international market planning model Fig 3: International Marketing Planning Model Source: Doodle and Lowe (2001) Marketing mix is the coming together of various factors to influence the demand for a product (Kettle and Armstrong, 2004). According to Proctor (2000:212) these factors need to be interrelated with one another. In Nigeria the marketing mix that would be essential for the Primary are the 7 As of Marketing.
However, only two of the As will e discussed, Promotions and Products. 6. 1 Promotions Managing promotions internationally is a major issue for most multinationals because as they expand and move to different regions they may require adjusting or changing substantially their promotional mix. The promotions can be divided into two major strategies namely Push and Pull strategies. According to Hennessey, H. D. (2004) is a strategy directed at the end user of a product or the final buyer. The advertising. Pull campaign are advisable when the product are widely used by consumers.
They are different types of Pull strategies such as Advertising, Media, Prints and TV. Advertising in Nigeria of Primary will take into account the diverse nature of Nigeria. Nigeria official language is English, although a reasonable number of Nigerian do not understand English properly and use their three official traditional languages, namely Hausa in the North, Gobo in the East and Your in the West. In order for Primary to get across any of their adverts they would either use any of these languages depending on where the shops are located or do it in ‘Pidgin’.
Pidgin is an adulterate type on English mainly spoke by the lower class in the society. Although over the years it has gained more acceptance with the citizen, because is make an attempt for people to communicate with others in English language. The use of Radio and Bills will come very handy, because a lot of Nigeria like listening to radio and bills and posters can be placed where people can see. These will be very effective, because although TV is equally good, not everybody has a TV or the power supply to activate the TV due to the lack of power.
In contrast, Push is characterized by the distribution of a product rather than the final buyer. Incentives are offered to tillers to promote a product. Primary should also have discounts, Nigeria like all shopper love a bargain, these discount on clothing will encourage the more sales. Finally, Sponsorship and product placement either on Sport such as football which is very popular in Nigeria. Primary could also sponsorship, to various organizations and charities in Nigeria. They also have the option of using celebrities to wear their brand. 6. 2 Product: According to Sunnier & Lee (2009) they are different attributes to products.
In Nigeria we refer to the product itself, the value of the Primary products. Nigeria is a tropical country, and as such most of the clothing provided to Nigeria should be summer clothing because of the weather. Hypotheses (2001) suggests that countries have either Long term orientation or short term orientation. Nigerian are very short term oriented, they population is made of mainly younger and the political situation has not been stable until 1999, when democracy was return to Nigeria. In essence Primary needs to make clothing that is trendy to appeal to the younger generation.