(pdf) Marketing Essentials in Zara Company

Marketing
Essentials

INTRODUCTION
Marketing is a set of activities that help company in promoting its goods and other
offerings in order to increase its income (Bačík, Štefko and Gburová, 2014). It is a process of
creating product, communicating its features and delivering valuable goods to customers and
earning more profit for organization. Chosen company for this report is Zara. It is a Spanish
retail organization which is providing fashionable clothing and other accessories products. Zara
was established in 1975 and founder of this organisation are Amancio Ortega and Roslia Mera.
Headquarter of this company is located in Arteixo, Spain and it is providing its goods and
offering to worldwide. This report consists of various role and responsibility of marketing
function and it inter connection with other functional units of company. This report involves
examination of marketing mix with other rival company and development of marketing plan.
TASK 1
Roles and responsibility of marketing function.
This includes various role of marketing which help in increase sales and profitability of
organisation. Marketing functions includes different activities to promote product and services
offered by company with motive of attracting more customers and increasing sale of company
(Baines, Fill and Page, 2013). Different roles of marketing activities will leads to effective and
efficient functioning of Zara company. Roles and responsibilities of marketing function of Zara
organisational below:
Developing and designing product
Marketing department is responsible for to create and designing product or services
which leads to satisfy needs of customers. Design of Zara products play a major role as it will
aid in stimulating more customers. So marketing function very important to develop and design
hight quality product which leads to satisfying their requirements and demands.
Promotion and distribution
Marketing function is responsible for conducting various functions that provide aid in
promoting product or services of Zara company. This function helps in communicating and
informing customers about features of product developed by organisation. Its roles and
responsibility includes distribution and delivery of products to ultimate consumers. Role of
1

marketing function is to chose right and appropriate distribution channel so that products
manufactured by company can timely reach to end customers.
Communicating with customers
Marketing function is responsible for communicating with its customers. This will help in
building strong relationship with services users and improving brand image. It is very important
for Zara to communicate with its customers and solve their issue (Baker and Magnini, 2016). By
this function, company will be able to get actual or direct feedback of customers about company
as well as its products. Customer are king of market so it is very essential for business to develop
positive relationship with them. Marketing function role is to maintain strong relationship with
customers.
Marketing function have several responsibility and roles towards marketing environment.
These roles and responsibility is mention below.
Monitoring marketing environment
Its role is to monitor and analyse market environment. Its role is to identify and evaluate
new marketing trends. Marketing function role is to evaluate and analyse market environment
and various strategies used by rival companies. Identifying social trend and evaluating upcoming
trend will help company to developing updated products and services.
Market segmentation
Marketing function responsibilities includes carefully measure market area in order to
identify most suitable and potential customers of Zara company (Brennan and et.al., 2014).
Segmentation of market area is a process of cutting large market area into different parts on the
bases of their needs and wants. It is role of marketing function to select right segments in order
to target potential customers.
Roles and responsibility of marketing related to the wider organisational context
Several departments in company which is responsible for conducting different functions.
It is very important for Zara to interlink different functions of marketing with other functions of
organisation. Different department of firm includes human resource, finances, production,
marketing, information technology, research and development. Importance of inter connection
between marketing function and other functional unites of Zara is mention below.
 Interrelation of marketing function and research department will help in evaluating needs
and wants of customer.
2

 It is very help full in developing and manufacturing product which leads to satisfying
requirements of consumers.
 Interlink of other functions with functions of marketing will leads to effective and
efficient working of a company.
 It is also helps in improving productive and profitability of company.
Interrelation of marketing function with other departments of organisation is explained
below.
Marketing and production: Marketing function is responsible for conducting various activities
which help in analysing market area and need and wants of customers (Cabrera and Williams,
2014). Production department role is to develop and manufacture products so that company can
sell them in target market. Action of marketing function and production is interrelate to each
other as manufacturing department will develop products as per needs and wants of customers
which is analysed by marketing department. Marketing function role is to forecast demands and
supply of products as well as set quality and quantity standards for production department.
Marketing and finance: Marketing department needs to work intimately with finance
department of Zara. Its role is to evaluate environment conditions and analyse fresh or innovative
techniques that will help finance department to improve their effectiveness and efficiency.
Finance department is responsible to provide adequate budgets to marketing department. So that
they can effectively and efficiently conduct their functions. Both of these department needs to
take decision about money that will be needs to promote and advertise product manufactured by
Zara.
Human resource and marketing: This department is interrelated with marketing
function in order to find and hire right skill set as well as maintaining positive and healthy work
environment in organisation (Duffett, 2017). Marketing department necessary to convey with
human resource group about requirements in fresh candidate to fill vacant position of
organisation. HR team is responsible for recruiting and selecting well qualified and highly skilled
employees for marketing department. This department will help HR team by effectively
promoting and advertising about recruitment and requirement of new candidates in organisation.
It will leads to attracting more candidates apply for job and human resource team can select most
suitable and potential candidate to full fill vacant position in organisation.
3

TASK 2
Comparison of Zara marketing mix with other company.
Marketing mix is the foundation on the basics which the business operation of an
organisation are effectively followed. It basically make use of sets of marketing tools which a
firm utilises in order attain the business objective as well as target market accurately. Several
elements of marketing mix are mentioned in detail:
Basics Zara H&M
Product Products are the reason due to
which marketing actually takes
place (Ehret, Kashyap and
Wirtz, 2013). Under the cases
of Zara the company primarily
provides wide range of
clothing and fashion
Moreover, H&M is also a
multinational company which
sales fast fashion clothing for
men, women, teenagers and
children. The core range of
products under H&M includes
sleeved jersey dresses, pants,
4
Illustration 1: MARKETING MIX.
Source: MARKETING MIX BEST PRACTICES

accessories across the world. It
includes dresses, shoes, bags,
jeans and many other products.
jeans, fashion shirts, jackets,
jewellery, shoes, purses and
several others.
Price Pricing adopted by an
organisation usually decides
the level of sales. However,
under the case of Zara
company basically follows
premium pricing strategy in
order to carry out its business
operation with efficiency.
The pricing strategy adopted
by H&M is basically broader.
This pricing range suit every
sphere of consumers (Hashim
and Hamzah, 2014). The
company also offers several
schemes and discounts on their
fresh and core stocks.
Place Zara company is manufacture
high quality products and
delivering it to all around the
world. Place refers to
distribution strategy used by
company to deliver products to
end consumers. Zara has its
own stores from where
customers can purchase its
products.
H&M is selling its products
through it stores and outlets
which is spread in many
countries of world. This
company has franchises
partners to deliver and
distribute products
manufactured by H&M
company to different area.
Promotion Zara is using both traditional
and modern methods to
promote its products.
Promotion is very important
for communicating its features
to customers (Khan and Adil,
2013). Zara has its unique
methods for promoting its
products. Major marketing
H&M have implemented
several promotional tool in
order to carry out their
business activities with
effectively. There are various
promotional tools used by this
company such as
advertisements, print media,
online marketing, social media
5

tools of Zara is word of mouth
and its brand image in market.
marketing etc.
People People of Zara refers to its
employees who are working
for welfare of organisation.
This company recruits and hire
highly skilled and capable
employees who are able to
effectively completed given
tasks. It has specialised leads
to timely completion of task
with good quality of work.
People are vary important for
H&M company. They consider
people as the most important
asset of organisation. This
company focus on training and
development of employee so
that they can work with their
full skill and capabilities
(Lane, 2016). Training helps in
improving performance of
employees as well as
productivity of H&M.
Process It refers to process which help
organisation in delivering high
quality products. Process of
Zara includes using of new and
innovative technology in
manufacturing its products.
This help in improving
production of Zara products
and leads to increase in overall
profitability of company.
Process of H&M company
includes developing and
manufacturing products that
leads to satisfying need and
wants of customers. It process
is more related to customers
and it focus on providing
customers support in order to
build strong relationship with
customers.
Physical evidence Physical evidence is anything
which helps in attracting more
customers towards company
(Malhotra, Birks and Wills,
2013). Brand image of Zara
can be consider as its physical
H&M company have large
store or outlet which
influences customers towards
its products. Stores of this
company can be consider as its
physical evidence. It has very
6

evidence. This company has
very strong brand image that
attract customers towards
organisation. It has well
developed and maintained
stores which influence
customers and increase profits
of Zara.
relaxing and refreshing
environment which help
shopping of products. Staff of
H&M company helps
customers while purchasing
products and build strong
relationship with them. This
will leads to developing
positive brand image in
market.
From above comparison it is analysed that marketing mix is very important tools for
gaining competitive advantage from other rival companies. It is identified that activities and
strategies of this tool can be used differently by business.
TASK 3
Develop and evaluate marketing plan
This can be define to a framework which contain all activities and strategies needs to be
followed by organisation to succeed set targets. It is a process for organisation all activities
which help in reaching to desired goals and objective (Pike, 2015). Marketing plan is a well
written document which help in outing important decisions and strategies with the motive of
attaining growth in Zara company.
Objectives
This is the initial step of marketing plan as all task are supported by objective.
Development of a clear and specific objective is very important as it can be measure as well as
timely achieved. Objective of Zara organisation in to attain growth in business and enhance its
profits by introducing its new product. Objective set by Zara organisation is:
 To launch new range of organic cosmetic products with motive of increasing profits by
30% within 4 months.
Situations analyses
Analysing situation is very important for developing effective strategies and helpful in
attaining targets of company. Situation analyses refers to identifying and evaluation situation in
7

which company is offering its goods and offers. In order to analyse situation , company needs to
evaluate internal and external environment of business. For this Zara needs to conduct SWOT
analyse which help in evaluating strengths and weakness as well as several opportunities and
threats.
 Strengths: Zara is one of the largest fast fashion retailer worldwide. This company is
popular in market with strong brand image in market. Its brand image and values is
advantage for new lunched products. Zara company has unique design and its products
are developed with high quality (Ramaseshan, Ishak and Rabbanee, 2013). It has strong
supply chain which will be very helpful for new Zara product to reach end customers.
 Weakness: This company have very generalised collection of products and it is not
specialised in anything. Zara company lack in marketing and advertising its products and
it is using limited marketing and advertisement tool and techniques to promotes its
products. This can be consider as a weakness for new launch product as it will affect
promotion of product in market area.
 Opportunities: There are various opportunities for Zara company in market area.
Company can expand its market area by entering into new market as well as introduce
new offering as per need and wants of consumers. Zara should focus on promotion and
marketing of its products. It should use new and innovative tools or techniques to
promote its new launched product.
 Threat: Zara company have to deal with different strong competitors that can affect it.
Company have threat from various strategies used by rival companies as it can have huge
impact on business and its operations.
Strategies development
After analysing situation carefully company necessarily to create several strategies that
will help in achieving set goals and objectives. Zara should develop effective strategies which
should be able to meet with desired objective (Simkin and Dibb, 2013). Company needs to take
various important decisions and strategy related targeted customer and attracting them towards
organisation to purchase its new products. Segmentation: It is a procedure of sub dividing market area into several parts according
to their needs and wants. Segmentation will help Zara to subdivide large number to
8

customers into different parts on the bases of geographical, demographic, behavioural
and psycho-graphic need. Targeting: It will help in select right group of customers who are capable as well as
willing to purchase new launch product. Targeting refers to choosing potential segment
of customers in order to increase sales. Zara is targeting women of above 20 age who
wants to purchase new lunched Zara product.
 Positioning: Positioning refers to developing positive image in customers mind so that
they purchase product. Zara can used different online and offline methods to promote
new cosmetic products.
Action plan
In this step company needs to put all strategies and decisions into actual actions. For
implementing actual action plan company have to analyse all detail of product, price, place, and
promotion. Product: It consist of a range of hight quality cosmetic products of Zara. New lunched
products includes eyeliner, mascara, foundation, eyeshadow,lip balm and primer. Zara is
develop organic products which does not harm any type of skin. Price: Pricing strategy of new products of Zara is based on quality of goods as well as
cost involved in manufacturing product. Price of new lunched cosmetic products is
inexpensive for middle and upper class group. Place: Zara is planning to launch and introduce its cosmetic products all around the
world. It is placing its products in Zara stores as well as online sites so that customer can
purchase it.
 Promotion: Promotion will help in communicating and informing features and quality of
products to customers. Zara promotional strategy includes both traditional as well as
modern methods (Wirtz, Tuzovic and Kuppelwieser, 2014). Traditional method used by
company is TV advertisement, print media, magazines where as modern methods
includes social media, digital media etc.
Financial plan
This refers to developing plan which help in analysing financial and money requirement
for successful implementation of marketing plan. Financial plan includes forecasting marketing
budgets and marketing budget plan is mention below.
9

Marketing Budget:
MARKETING BUDGET
PARTICULAR
S I Year II Year III Year IV Year V Year
Initial money 4400 8000 12600 22860 19640
Investment 12000 12000 24880 32900 25480
TOTAL 16500 20000 36480 55760 45120
MARKETING OUTLAY
Promotion 5400 1800 4500 3500 4000
Sales publicity 3000 2500 3600 2500 2000
Direct selling 4500 2600 5000 2500 5600
TOTAL 12900 6900 13100 8500 11600
Evaluation and control
There are various methods which can be used by Zara company to evolute and controls
activities conducted in marketing plan. This is the last step of marketing plan and in this
organisation have to measure performance of marking plan. Zara needs to evaluate activities and
performance of new lunched products as well as take corrective measures wherever required.
Methods that can be used by company in controlling and evaluating includes taking feedbacks
from customers and setting target sales for its stores.
CONCLUSION
It can be concluded from above report that marketing is an essential part organisation as
it helps in enhancing sales as well as improving its profitability. Responsibilities and roles of
marketing function play a significant role in developing high quality product and effectively
promoting it to attract more customers towards organisation. Interrelation of marketing function
10

with other functions of business is very important for its success. Marketing mix is a strategic
tool that helps in developing effective strategies for company. Apart from this, company needs to
built a good marketing plan which helps in achieving its targets and objective.
11