Marketing Strategy of Zara

The report aims to determine the marketing strategy of Zara and describes various marketing strategies used by the company to promote its business. It also includes a SWOT analysis, PESTLE analysis, and 7P's of marketing mix, which helps in improving efficiencies and maximizing sales profit. The document concludes that for promoting products in a market, companies must determine basic marketing plans that help improve efficiencies and maximize sales profits.

Marketing essential

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
a) Presenting the roles and responsibility of marketing function...........................................1
b) Presenting the roles and responsibility of marketing function for marketing environment2
c) Significance of interrelationship between marketing and other function...........................2
d) Presenting key element of marketing function and their interrelations.............................3
LO 2.................................................................................................................................................4
1) Comparing the ways of different organization of marketing mix......................................4
2) Presenting Business tactics for Zara..................................................................................5
LO 3.................................................................................................................................................6
1) Basic marketing plan for Zara............................................................................................6
2 and 3) Detailed coherent evidenced based marketing plan...............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is the process that help to promote the products into a market. Marketing is the
best way to promote the goods in a market. The report is focus on marketing and the chosen
company is Zara which a fashion company based upon Spain. The report present the roles and
responsibilities of marketing function and their significance in interrelations between marketing
and other functional units. It also evaluate the key element of marketing function and also
comparing two organization by using 7 p's of marketing mix. In addition to this, report also
evaluate the marketing plan for an organization and a detailed coherent marketing plan for Zara.
LO 1
a) Presenting the roles and responsibility of marketing function
 Marketing functions are those which are help to promote the products into market in
order to maximize the profit. Buying: in context of Zara, the consumer choose their
products and they also have the value of money and innovative approach. Thus this
concept, refers that customers are retained through a products and services which are
actual benefited for them (Tengilimoglu, Atilla and Dursun-Kilic, 2016).
 Selling: in order to attract the customers, their customers have their own mindset and in
this way, Zara also promoted their products in a market. The marketing fucntion is also
responsible for the selling equipments which can be helpful for the company in order to
promote the products and also enhances the sales.
 Marketing: This is a broad concept that help to meet out the requirement of their
customers in order to focus on target consumers. The concept is best for marketing
function such that to face this competitive world, Zara has to deliver the best kinds of
products and services to their customers. Moreover, the marketing concept further help to
sustain the brand value of their business and forces customers to choose the brand among
many.
 Social Marketing Concept: This is another new concept of marketing which actually
focus on the promotional tool such as social media which help to attract wide range of
customers towards them. This is widely used term in this market so that it will help to
keep retain the base of customers. This is another function of the company which help
them to let people know about offers which are offered by the company.
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b) Presenting the roles and responsibility of marketing function for marketing environment
The role of marketing in the context of marketing environment is wide and it is mentioned
below:
Marketing strategies: In this marketing function, manager of Zara has to realize the
needs of their customers and then develop new strategies in order to fulfil the needs of their
customers because the development of such marketing strategies helps to create balance between
company’s goals and market’s opportunities (Campbell, Martin and Fabos, 2018).
Market research: This function is consider as one of the most important role because it
helps to provide specific product offered by Zara. Thus research is also necessary key aspect for
the company to develop new strategy in market and cater needs of potential customers in an
effective way.
Segmentation: in this competitive world, as market is volatile therefore, the business
also requires the segmentation that is only provided through market. To identify the target
market, the manager of Zara can easily promote their products as well as goods in the current
market.
Market information system: It is another most important marketing function that
provide the exact information for further dealing with various factors such as planning,
implementation and controlling the products promoting so that the distribution work done in
proper way and they all help to attain all defined goals of a company (Waite and Perez Vega,
2018).
Monitoring the environment: it is quite important for managers to monitor the
environment, analyse trends and identify them to convert into new opportunities. This
environment includes external, internal forces, socio- economic forces, legal changes etc.
c) Significance of interrelationship between marketing and other function
In Zara, the marketing function is interrelated with company’s other functions that further
assist them for their successfully attaining objectives of company.. these function are as follows:
Research and development department: This department of the company are actually
help in researching and developing new products. so that with the help of marketing, the
department of company will come to know about their customers need and then produce those
products on their demand only.
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Sales department: this department help the company to raise its sales with the support of
marketing function. Basically the department develop new strategies in order to raise their sales
and through marketing company produce the products into a market for maximizing sales
(Hugos, 2018).
Finance department: for the promotion of the product, finance department of Zara also
supports such that this calculate the exact profit earn during a particular time and thus this is
helpful to analyses the exact turnover of the company.
The marketing functions such as buying, selling, transportation and market information
all are directly interrelate to their company overall structure such that they create a close link
between each other. Hence, it has been cleared that if the function are help to implement the
marketing plan they directly support the financial performance of the company. Marketing
function are directly interlinked with the function of an organization and help to maximizes the
sales. For example, if Research and development department of Zara can realize the need of their
employee and let know to production department so that they will produce for the same and then
marketing department uses different promotional tool in order to let people know about new
offers. And sales department sale the thing in positive manner to the customers.
d) Presenting key element of marketing function and their interrelations
Marketing function such as advertising, finance, distribution system are also linked with
other functional unit and this are describe as below:
 Research: In an business, research related to market plays an effective role and manager
of Zara needs to determine the factors that affect the company actual environment. Thus,
it is also considered a crucial marketing function. It also interrelate with the other
function of the company such as through effective research, the company can analyse the
need of their customers and then the production department can produce those kind of
products in order to met the need of their users.
 Strategy: after doing proper research, the company has to develop new strategy in order
to complete the defined goals (Eletxigerra, Barrutia and Echebarria, 2018). strategies are
helpful and provide the guidance to complete the tasks and attain objectives. effective
strategies helps Zara in gaining high competitive advantage in market over its rivals. Bu
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analysing the need of their customers, marketing department of Zara will develop new
strategies in order to fulfill those by applying appropriate promotional tools.
 Planning: after developing strategy, planning should be done. In this marketing
department also consist of financial planning, sales forecast, distribution and
communicating etc. therefore, the planning should also be consider in proper time frame.
As the stgrategy is implemented, it is the duty of HR department of the company to done
proper planning for their further improvement and then implement those into a market.
 Tactics: Another marketing function is short and long term planning that helps to
implement all new strategies that are develop in order to attract wide range of customers.
In order to raise the sales of product, company also uses different promotional tools that
is actually helpful to draw attention of many customers towards the brand.
It has been cleared that marketing function are directly link with other business function such
that marketing function needs economic resources financial resource in order to implement new
strategy and this can be only be possible through the support of finance department and in the
same way, all other department are also interlinked with each other so that their good
coordination will be helpful for Zara to achieve all defined goals of a company. If the marketing
function directly interrelate with different function of the company then it will be beneficial for
Zara to enhances their existing production level and also raise the sales through different
marketing function.
LO 2
1) Comparing the ways of different organization of marketing mix
Marketing mix is a process or comprises a factors which are further controlled by
company that influence buying power of customers. In this, Zara is compared with different
company of fashion industry named Burberry and the marketing mix of this companies are as
follows:
Basis Zara Burberry
Product It provides high quality clothing and
hand bags to customers and is able to
accept the changing needs of their
customers.
Burberry is recognize for their best
fashion cloth such as trousers, t-
shirts, pants, jeans that is preferred
at world level because of their
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design and material.
Place The company deals at global level such
that it has its store in more than 30
countries at world level that shows its
presence worldwide.
Its store is located in 500 different
locations in more than 50 countries
(Marketing mix of Burberry, 2018).
Price It provides the products to their
customers at low rate as compared to
other brands and mostly follow
premium pricing strategy (Pike, 2015).
Offer least price products to their
customers and evaluate the demand
of their customers and follow
competitive pricing strategy
PromotionDid not invest lot on
advertisement and uses modern
promotional tool to promote their
products.
Follow modern promotion
technique such as social media,
brochures to sell their new
products and invest lot in
promotion during festive season.
People the person who run a
business such as employees, staff
members and the people of Zara
are too friendly and provide best
service to their customers.Staff
members, owners and customers.
Physical
evidence
Service and product offer to their
customers, building and website is
consider as a physical evidence.
Website, building, products are
physical evidence.
Process The process of Zara is unique and
different such as its packaging style is
quite different from others.
Customers service is unique and its
process of attending customers and
delivering products is differ
2) Presenting Business tactics for Zara
The business tactics for Zara is unique such as it follows various marketing as well as
business strategy which are as mentioned below:
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 Zara flows 4Es of marketing strategy such as Experience, exchange, evangelism and
every new place.
 Uses different variety of products promotional tool to let their people know about
new offers.
 Hires well trained staff members that interact with customers (Larson and Draper,
2015).
 Always makes an efforts to creates curiosity among customers to buy such items.
 Ready to adopt new changes as per the demand of their customers and offer for the
same.
 Offer more than 1200 different styles which no other brand provide in such a cheap
rates as compared to others. Therefore, this tactics makes Zara unique from other
company and people are automatically attract towards it.
All the above mentioned tactics helps Zara in attaining its business objectives.
LO 3
1) Basic marketing plan for Zara
Executive summary: The report is focus on the marketing environment of Zara and for
basic marketing plan it present the objectives, market analysis that consist of internal as well as
external environment through SWOT and PESTLE analysis. Further report present the
situational analysis through STP and present budget. For detailed marketing plan report present
7P’s of marketing mix.
Company overview: Zara operates in 88 countries with 6500 mini stores at global
presence. The company is consider one of the latest fashion based industry who actually offered
different products such as trousers, jeans, tops for men, women and children from age group of
18 to 45. The present marketing plan is for producing accessories for the demand of their
customers.
Mission: Sustainable development should be provided with high quality of products offer
and have low price strategy.
Vision: It reaches at global level by offering high quality of products to their customers.
Objectives:
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 To raise the sales up to 20% in next two years
 Provide best products and services to customers.
 Develop new marketing strategy to attract wide range of customers
Market analysis: Report present the internal as well as external analysis through SWOT
and PESTLE which is mentioned below:
Strength Weaknesses
Strong brand image in market.
 Unique design and strong presence in
market.
 Always offer different design and
good supply value chain (Philip,
 Lack of advertising.
 Does not have safety regarding stock
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Illustration 1: SWOT Analysis
(Source: SWOT Analysis, 2018)

2014).
 Have unique marketing stratgy as
well as effective supply distribution
system.
 Another strength of Zara is such that
offer all latest and fashionable cloths
with low price.
Opportunity Threat
 Online offering can be consider as a opportunity.
 Growing market potential.high
competition.
PESTLE analysis:
Political Factor Economic Factor
 Political disruption and financial
regulation may affect the company’s
financial position.
 Economic instability affect company
image but to cope up this, Zara has a
unique strategy that is affordable
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Illustration 2: PESTLE Analysis
(Source: PESTLE Analysis, 2018)

 Red tape is consider another barrier
for the company in order to grow in
Asian market. Therefore, Zara also
have a strategy in order tocope up
from this situation.
pricing.
 If the economic condition of UK is
fluctuating then it directly cutting
down the cost of their customers
purchasing power and it directly
affect the zara's financial position.
Social Factors Technological factor
 Company always produces products
as per the needs of their customers
and reaches large market.
 At the time of global recession,
people of UK are also faces problem
related to unemployment and
therefore, it increases the demands of
products and at that time, Zara
provide best clothing product and
also cope up with changing trend of
fashion industry.
 As technology changes and there is a
need to cope up with this. To sustain
its brand image in market company
has to adopt new changes (Huang and
Sarigöllü, 2014).
 To stay connected with people, it only
uses social media such as Facebook,
Twitter and also keep updating their
post.
Legal Factors Environmental Factors
 Zara always focus on ethics and
sustainability and compliance with
legal terms.
 Company invest in sustainability act
and makes their own efforts for the
safety of environment.
 Quoted company also recycle the
hangers as well as price tage in order
to prevent the environment.
Marketing strategy: To raise the customer base, company actually open many mini
stores and raise its online presence in market and for this, it offer various discount vouchers so
that it further help to enhancing the customer base too.
Situational analysis:
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Segmentation: Zara differentiated their product on the basis of age of their customers in
such a way that it launches new products in every two weeks and consider one of the most fastest
running fashion brand that understand the taste of customers.
Targeting: The store of Zara comprises 58 percent of women's clothing, 22 percent of
men and 20 percent of children and target people up to 45 years of age. For Zara, women are the
main target for maximizing profit and raise the company's income level.
Positioning: Company offer high quality style product that reflect latest trend of the
century. Hence, customers are provided the best quality of products who desire to buy those
cloths at sensible price with reasonable price (Bahl and Chandra, 2018). it position is high as
compared to others.
Budget:
Particulars Amount ($)
Advertisement 50
Labour cost 90
Stationary 30
Miscellaneous expenses 190
Total 360
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Market implementation and controlling: Every process should be reviewed twice in
every month so that it will help to realize that the products are deliver on time and help ion
maximizing the sales
2 and 3) Detailed coherent evidenced based marketing plan
For detailed marketing plan it further consist of Marketing mix which includes 7Ps of
Zara and this is mentioned below:
Product: Offer latest and stylish brand products and also accept the changes which are
needed by their customers. Provide all types of clots up to the age group of 45 years. In this
marketing plan, Zara introduce new accessory for the women
Place: It is located at global level and it offer it service in more than 80 countries and
have more than 6000 stores with having global presence (Gnizy and Shoham, 2014).
Price: product of Zara are high in quality as per the fashion and low in price. Company
follow tcompetitive pricing strategy which help it to sustain in this competitive world.
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Illustration 3: 7P's of Marketing mix
(Source: 7P's of Marketing mix, 2018)

Promotion: Company spends barely amount for its promotion and it also doesn't engage
in any campaign but have a mouth publicity. That is why the company is not present their own
advertisement on T.V. Zara also uses social media, brochures and website for promoting their
products in market.
People: Zara's customers, staff members and sales person and the suppliers are consider
as a people.
Physical Evidence: This includes company's building, its social media posting, online
store and staff members (Tengilimoglu, Atilla and Dursun-Kilic, 2016).
Process: The process of a company is also fast such that its online delivery system helps
to save time as well as money and also brings efficiencies among their customers as well as in
staff members too.
CONCLUSION
By summing up above report it has been concluded that marketing activities have their
own importance in the a business. Further the report also concluded that different marketing
functions are helpful to maximizes the sales and they are interrelate with the function of a
company. Report also compared marketing mix function of Zara and Burberry in order to
determine the marketing strategy of a company and it also describe different marketing strategies
which are used by Zara in order to promote their business to further level of success. Moreover,
the report also concluded that for promoting the product into a market company has to determine
basic marketing plan that helps to improve the efficiencies and maximizes the sales profit of
Zara.
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REFERENCES
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Online
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