Digital Marketing Strategies for ZARA

This report analyzes the importance of digital marketing for ZARA, a clothing company facing threats from competitors like Amazon and Tesco. It recommends introducing mobile applications to enhance sales performance and increase brand image through mouth publicity.

Marketing

INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Different market segments targeted by ZARA with corresponding strategies............................1
Digital marketing tools and techniques the company..................................................................2
Strengths and weaknesses of the digital marketing strategy.......................................................3
RECOMMENDATION...................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing is refers as an activity that is related with buying and selling process of goods and
services. This includes different kinds of activities such as advertising, selling and delivering of
products to customers (Levy and Gvili, 2015). Therefore, with the help of marketing process
company tries to attract a large number of customers using catchy tag lines, packaging designs
etc., This report will be focus on ZARA company which is multinational company and deals its
business in both online and offline processes. Firm is dealing in clothing and bad segment and it
will target people of age group between 18–40. Other than this, this assignment will analyse
digital marketing tool and techniques used by ZARA along with the strengths and weaknesses of
the digital marketing strategy adopted by the company. Therefore, on the basis of this
recommendations will be included so that company can further improve its digital marketing
strategies.
TASK
Different market segments targeted by ZARA with corresponding strategies
Marketing refers to most crucial function of a company which helps in promoting business
at vast area. Under this process, marketing managers carry out various functions in order to bring
awareness among people about products or services offered by organisations. As today
technology has developed so far, therefore, enterprises can use different effective techniques for
advertising. It includes digital marketing tools which gives e-commerce strategy through which a
company can easily sell its goods and services, without opening a physical store. At presently, in
digital marketing area, ZARA is considered to be a perfect example which conducts all its major
operations through online procedure. This company of UK has currently more than 7000 stores
across all over the world. It mainly targets two main sector of marketplace that are- clothing and
bags section. It offers a high branded and fashionable clothes to people among which it usually
targets of 15 to 40 age group (Baker and Saren, 2016). Along with this, in bag section, ZARA
also serves a wide range of bags both for men and women on affordable price. This retailer
company has become famous for its highest branded and best quality of products in today’s
digital world.
ZARA has opened its first store in 1975 on small scale level but now with the help of digital
technologies, it has gained first position in retail sector. This company has given a tough fight to
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its major competitors like H&M, Tesco, Sainsbury and more. For targeting both segments of
market, its managers have adopted various marketing strategies. It includes e-mail, social media
and content marketing. In this regard, through e-mail application of marketing, its managers used
to give timely information about latest offers and discounts to customers. While social media
gives a large platform to ZARA in developing connection with potential customers. By making
effective interaction with people, this company has gained opportunity to understand need and
desire of people as well as their preference in appropriate manner (FIDM, 2014). This would
help in offering products or services as per interest and purchasing power of them. With this
assistance, its employees mainly use Instagram, Facebook and You Tube channels for promoting
its business. Apart from this, its managers also use content technique by giving relevant
information about company’s products to customers on its websites. Through this process, before
purchasing any new product, people can find details, quality and other information more easily.
Thus, it has evaluated that digital marketing technologies are proved much beneficial for
companies in marketing their businesses. It has provided various tools and techniques through
which organisation can enhance sales performance and gain high revenues for further expansion
of businesses.
Digital marketing tools and techniques the company
Every business can be benefited if effective tools and techniques are used by the
company or they know about the latest digital marketing (Lamberton and Stephen, 2016).
Nowadays as digital technology is cost effective and enables company in connecting with large
number of customers. Thus, ZARA is also using the same for increasing its customer base and
its sales as well. Therefore, some of the digital marketing tool which is being used by ZARA are
explained below:
Content Marketing: This can work as a foundation for most of the companies who are
using digital marketing as their platform. The reason behind this is interesting blogs publishes in
official websites or videos or social media post. Main aim of content marketing is that customers
who are fond of reading new things on internet can easily get to know about things that are
trending. In context with ZARA, they have their own fashion blog on which they are posting
things related to their new products and services (Dodson, 2016).
Email marketing Campaigns: This is one of the simplest form of digital marketing as
company, in order to let customers know about the products they sent information through mails.
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But this has to be done effectively because company must have the ability of controlling the
message. Thus, the main aim of using this tool is to connect with people who are not so active on
social media and depends upon mails for their activities. Therefore, ZARA with the help of this
putting notification about the new products and services on customer’s mail ids.
Social Media Marketing: This is now a day’s has become most trending marketing tool
for companies and the reason behind this is because of maximum people using social media
platform for connecting with different people and getting information as well (Ryan, 2014).
ZARA is using social media marketing tool attracting large number of customers with their new
and unique products. Main aim of using this tool is that it is cost effective and less time
consuming because company just have to post something and the item will be viral in few days.
As a result, maximum number of people can get to know about the information.
Strengths and weaknesses of the digital marketing strategy
Digital marketing is the promotion of goods and services of company using various social
media tools and techniques with the help of internet. While this can be a very successful strategy
for any company, it is equally important that company takes into account its limitations and take
measures so that these do not hamper the overall marketing campaign and objective of company.
Zara is a fashion retailer company which mainly targets two segments, namely, retail fashion and
bags section (Ryan, 2016).. Exploring this is deep, some of the noticeable strengths and
weaknesses of company’s digital marketing strategy are given below.
STRENGTHS
 Wide customer base: By using various digital marketing tools and techniques like social
media, e-mail marketing and online promotion, Zara aims to target a wide range of
audience. Also, the main target audience of company belongs to the age group of 18-40
years, especially the millennials. Thus, by providing information about their fashion
segment and bags section on their website as well as on different kinds of social media,
company captures the attention of those people who may be interested in purchasing the
clothes and bags of Zara. Also, by marketing about the company and their products via
email, company gathers the attention of those individuals that usually neglect getting
involved in internet world as in today’s world, email is accessed by every person almost
every single day.
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 Economical: By equipping digital marketing tools and strategies for promoting and
increasing the sales of company, company gains two-fold advantage (Royle and Laing,
2014). The first one is that digital marketing tools like email marketing, social media and
online promotion is effective in influencing millennials to purchase the clothes and bags
of Zara and generating revenue for company. While the second one is that these methods
are comparatively economical than any other method of marketing
 Access to data: Digital marketing tools like website, email marketing
and social media gives the company the opportunity to gain
knowledge about their target market, what they prefer to
purchase along with where they live and other relevant
information that may be necessary for company to gain leads and
appeal to customers. It is easier for Zara to gain an insight into
the success of marketing strategy and segmentation and to
modify or change them if it seems necessary.
WEAKNESSES
 Customer Skepticism: Although digital marketing is a very successful
staretgy adopted by most of the companies nowadays yet it is
also famous for nefarious business practices and tools and any
scams. Due to this, many people still hesitate while believing the
things that the advertisements reflect and making the purchase
of products of Zara like clothes and bags, regardless of the fact
that the data provided is totally relevant and genuine (Taiminen and
Karjaluoto, 2015).
 High Expectations: Although digital marketing may at times prove to be successful for
company in terms of creating sales and generating revenue and profits, yet the biggest
drawback of tools like online and social media marketing is that it increases the
expectations of people. In case the last campaign launched by company was successful, it
arouses the interest of people and they expect the company to improve their performance
which if doesn’t happen pose a threat to Zara.
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 Technical or other issues: Digital marketing can take place only via internet only and
thus many technical issues can hamper the process. These may include network problems
or connectivity issues which will make the digital marketing strategy ineffective. Also,
another biggest drawback with email marketing of Zara clothes and bags to increase sales
and profits can be that at times, mails may not be delivered timely or there is also a
possibility of people spamming the promotions emails of Zara in case they are not
interested in making the purchase of the articles concerned with clothing and bag section.
RECOMMENDATION
Zara has used various tools and technologies of digital marketing for promoting its products
and being awareness among people about its business. This would have proved beneficial as well
for enhancing sales performance and increase profitability. But still some other companies are
there in business market which has given a tough fight to this company. Strategies and policies
used by its competitors like Amazon, Tesco and others, somehow impact on its business. It has
also given a major threat for ZARA for future business performance. Therefore, to overcome
from such threats and gain sustainability at marketplace, it has recommended to this company to
formulate effective marketing strategies and policies. For example- By introducing mobile
application, ZARA can gain various advantages because installing such application, people can
access its website for 24x7 hours. They can get information about offers, discounts, new
collection of clothing and bag session more easily. Along with this, potential customers can put
their orders anytime as per desired manner. Therefore, this would leads to enhance its sales
performance. Apart from this, it has also seen that when people gain high quality of products on
affordable rates then they tell further to other for the same. Thus, through mouth publicity,
ZARA can increase its brand image as well as enhance sales performance also.
CONCLUSION
From this report, it has analysed that digital marketing concept has provided various
advantage to organisations in business expansions. Through platform of social media, internet
applications, email and content marketing, companies can advertise products or services in vast
area of the world. Digital marketing including e-commerce strategy today has reduced the
demand of physical stores. As instead of offline purchasing, people use to buy goods directly
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though online applications. Therefore, in order to gain competitive advantage and enhance sales
performance, it becomes necessary for all organisations to adopt concept of digital marketing.
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REFERENCES
Books & Journals
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Royle, J., & Laing, A. (2014). The digital marketing skills gap: Developing a Digital Marketer
Model for the communication industries. International Journal of Information Management.
34(2). 65-73.
Levy, S., & Gvili, Y. (2015). How Credible is E-Word of Mouth Across Digital-Marketing
Channels?: The Roles of Social Capital, Information Richness, and Interactivity. Journal of
Advertising Research. 55(1). 95-109.
Taiminen, H. M., & Karjaluoto, H. (2015). The usage of digital marketing channels in SMEs.
Journal of Small Business and Enterprise Development. 22(4). 633-651.
Ryan, D. (2014). The best digital marketing campaigns in the World II. Kogan Page Publishers.
Dodson, I. (2016). The Art of Digital Marketing: The Definitive Guide to Creating Strategic,
Targeted, and Measurable Online Campaigns. John Wiley & Sons.
Lamberton, C., & Stephen, A. T. (2016). A thematic exploration of digital, social media, and
mobile marketing: Research evolution from 2000 to 2015 and an agenda for future inquiry.
Journal of Marketing. 80(6). 146-172.
FIDM, D. R. (2014). SOSTAC: The guide to the perfect digital marketing plan. Journal of
Direct, Data and Digital Marketing Practice. 16(2). 146-147.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
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