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business aqa a2
Discuss the problems Primark might have moving form a low cost strategy to a differentiation strategy 15

One problem Primark may have moving from a low cost strategy to a differentiation strategy is problems in changing their brand perception. Primark’s motto “look good, pay less”- will be heavily affected, by increasing prices it will have a direct impact of its motto and mission statement - “enrich the life of everyone with fashionable clothing regardless of social status”. Primark will have to adapt to new market strategies in order to maintain the interests of their customers. They would have to increase promotion strategies in-order to compete with their competitors, this will therefore increase output costs, and in order to maintain their profit margins Primark would have to push the output costs to their customers by increasing their products prices. this strategy t can push consumers to look elsewhere for better quality products and make their money worth it, revenues are likely to decrease as demand for cheap products decline as reference to the article “soaring cotton costs are likely to end the days of rock-bottom prices for T-shirts and jeans” output costs are increasing therefore explains the reason why Primark is seeking to change its marketing strategy however this will increase competition with other brands such as H&M and gives less freedom of pricing their products as they would have to adapt to competitors prices in order to maintain its profit margins and customer loyalty. Primark is famously known for producing cheap products changing their marketing strategy from moving to a low cost strategy to a differentiation would change the perception of their brand They would have to change their mission statement in order to meet differentiation strategy and this explains the disadvantage of Primark moving to a differentiation strategy as it would lead to encounter more costs and to change their perception of the brand will take time.

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