Customer relationship management CRM Essay Example | Topics and Well Written Essays - 1500 words

Customer relationship management CRM - Essay Example In this study, the key marketing principles of Primark will be evaluated. Product: - Most of the company’s merchandise of the company is manufactured by the company itself. The company specializes in menswear, childrenswear, womenswear and home-decor products. Some of the bestselling products of the company are footwear, accessories & hosiery, lingerie, and cosmetics. Most of the brands sold by the company are their own brand. Some of renowned ones are Atmosphere, Denim Co., Secret Possessions, Ocean Club, Backswing, Early Days and Rebel among others (Primark, 2013). With wide range of products, the company caters to customers of different segment. Distribution: - Alongside the importance of developing a sound product strategy, the development of distribution strategy is equally important (Bose, 2010). Moreover, for a company involved in apparel retailing, the importance of distribution is more (Dent, 2011). The success of the company is greatly dependent upon the distribution strategy pursued by the firm. Knowing the importance of distribution, Primark have also developed distribution strategy that ensures delivery of the products at the right place and right time. The company has appointed stockiest at different place of the country, where the company stores their manufactured products. One of the interesting facts is that most of the stock points are extremely close to the retailing outlets. This has allowed the company to make wide variety products available within the store (Michaels, 2010). Apart from the physical distribution, the company also markets their products through online store (primarkonlinestore, 2013). As a result of that the company has been able to streamline their distribution method. Pricing: - Likewise, product and distribution, the pricing strategy adopted by a firm is critical towards the revenue generated by the company as well as the profit earned (Kotler, 2010). In this turbulent business environment, companies have no other option but to maintain a steady profitability in order to sustain for a longer period of time (Craven, 2012; Dransfield, 2004). The pricing strategy adopted by the firm is cost plus pricing method, in which the company fixes the product prices on the basis of the cost incurred for producing one unit of the product. However, at some cases the company also pursues competitive pricing strategy for the sole purpose of dealing effectively with the competitors in terms of price-war. On the other hand, when the company makes it presence in a new market, it usually follows penetration strategy. Despite, the presence of strong brands, the company has kept the prices affordable in order to ensure customers from every section of the society can afford their apparels. Segmentation: - Segmentation is a process by which companies divide the market into different segments. It involves division of the target market into small subsets by considering the common needs of the consumers (McDonald and Du nbar, 1995). A company segments its market on the basis of different factors such as geographic segmentation, behavioural segmentation, psychographic segmentation, segmentation by occasions and segmentation by benefits (Alshorbagy and Elsaman, 2011). In the similar way, Primark divides its overall market into distinct markets. The principal reason for undertaking segmentation strategy is