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e, Marks & Spencer, Debenhams, ASDA, Tesco and Primark. The economic downturn, and the recession that began in the UK in 2008, make the retailers to focus on prices, however, despite the difficult economic climate, retailers continued to invest in their brands across all price points.

As the child population continuing to rise, the outlook for the children’s clothing market is getting more positive. Expectations are that price influences will dampen growth in 2009 and 2010, before the market begins to show better growth between 2011 and 2013. Design elements, ethical developments and brand investment will drive future growth in the industry.

Task 9

Describe how Primark develops its products to sustain competitive advantage.

The success story of Primark with regards to international business has been one of the more looked upon cases. Business of Primark shows that it is not enough that the products they are selling to the customers are top of the line. They have to make sure that the products they are producing and selling does have demand from the customers.

Primark have to guarantee that the products that they are offering will ensure sale. This could only be done by understanding the market and by establishing great relations with their customers through customer relationship management. Hence, the success of Primark is manifested in the ability of the company to balance both the external and the internal operations of the firm. The demands of the people and the stability of the company to provide those demands are the key ingredients to the overall success of Primark.

Task 10

Explain how Primark’s distribution is arranged to provide customer convenience.

All suppliers and their factories manufacturer for Primark are covered by Code of Conduct. Primark have an increasingly comprehensive programme of auditing to ensure that suppliers act according to the Code. Audits are carried out by Primark regionally based ethical trade managers.

Almost two-thirds of their purchasing spend is with top 100 suppliers. Primark audited 162 suppliers and 340 production sites during the year. 70% of these audits were carried out by specialist external auditors and the remaining 30% by local ethical trade team. Primark targets for 2009 are even more ambitious. They are planning to audit and engage in follow up with factories working for the top 250 suppliers. This will cover 87% of our suppliers by expenditure, and involve over 1,000 audits.

All audits and commitment of suppliers with Code of Conduct shows that how important customer’s satisfaction is for Primark. Audits are necessary in the business so that the staff get well qualified and have personal skills for the business and market in which they are working to satisfied and convenience the customer. The quality and price is the main two things that make people to shop from Primark. The stores are all over the country that makes people approach them easily.

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