Marketing Essentials: Zara's Marketing Mix and Plan

This report explores the marketing essentials of Zara, a Spanish fashion retailer. It covers the marketing mix tactics used by Zara and compares them with a competitor. It also includes the development and evaluation of a basic marketing plan for Zara.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
P3. Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives...................................................3
TASK 3............................................................................................................................................8
P4. Produce and evaluate a basic marketing plan for an organisation...................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing a fundamental activity which takes place in every business and all business
owners with different status and scope perform this task. Marketing is basically a phenomena
undertaken businesses and organisation for promoting buying and selling actions of their
products and services by simultaneously informing people and spreading awareness in public
about the offerings being offered. Marketing is an essential and a basic function of a business
entity that involves number of small chores and contribute in ultimate aims and goals. The
respective organisation chosen for this report is Zara a Spanish fashion retailer. The company
was founded in 1975 by Amancio Ortega and Rosalia Mera and located in Artexio, Spain (Basil,
2019).
The company deals in fast fashion goods such as Clothings, Accessories, Shoes,
Swimwear, Perfumes and Beauty Products. Zara is a subsidiary brand of Inditex a Spanish
multinational clothing brand. The report is developed over the topic of marketing essentials and
acknowledges separate aspects associated to it. In the beginning marketing function will be
explained with its roles and responsibilities. Moving along, interrelationship of marketing roles
with other functional units of Zara will be examined. Then a comparison is going to be
performed between Zara and one of its competitors on the basis of their marketing mix tactics.
And lastly a marketing plan will be developed with appropriate evidences and reasoning.
TASK 1
Covered in PPT.
TASK 2
P3. Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives.
Marketing Mix is a tool with combination of seven elements which are known as 7P's as
well and are refers as tactics or actions companies uses to promote and advertise their offerings
that is Products and Services (Constantinou and Sauvage, 2018). In the table below all these
seven tactics are explained and Zara marketing mix is compared with one of its global
competitor H&M (Hennes & Maurtiz).
7P's Description Zara H&M

Product The first is product
referring to the
offerings of company
through which it is
earning revenues and
gaining profits.
Zara is a leading brand
in the world under the
category of fast
fashion clothings and
accessories. Zara
offers clothings,
accessories, perfumes,
shoes and swimwear
for men, kids and
women. This exist in
the product portfolio
of Zara.
H&M is a clothing
retail like Zara making
sales of fast fashion
clothings for men,
women and kids. It has
a huge product
portfolio which is
being regularly
enhancing and
inducing.
Price This is associated with
the value put on the
product or the service.
The price strategy
depends upon the cost
incurred from the
initial stage of product
being manufactured
till it is being sold to
buyers.
Zara is a luxury brand
offering fashionable
products for everyone
and its offerings are
high in fashion and
low in price. The
company offers all
new trends and
fashionable
commodities at lower
prices in all over world
in comparison to all
competitive
international brands
(Gonzalez-Zapatero,
Gonzalez-Benito and
Lannelongue, 2016).
H&M offers high
quality of products and
services, thus their
pricing policy is to
premium. In
comparison to other
competitors like Zara
itself, H&M prices are
high but its variety of
goods are high too.
Place The factor is linked to The distribution H&M make sale of its

the point of sales. That
is, it reflects upon the
distribution strategy
firm undertakes to
make products
available to
consumers.
channel of Zara is
wide that is proven by
its store numbers
which if 6500 outlets
all over the world. As
well as Zara make use
of technology too for
making sales online
through its customized
application and
webpage.
goods and services
through its exclusive
stores which are
properly designed and
has a soothing
ambience. Its stores
are located in all major
cities and countries
around the globe. It
has around 4200
stores. H&M also
offers its commodities
through franchises due
to some regulatory
norms and online
platforms are covered
too by H&M.
Promotion The tactic reflects
upon the marketing
plans and strategies
undertaken for
informing consumer
about the commodities
and attracting them
towards the brand
(Jensen and Cornwell,
2017).
Zara make its
promotions very
strategically. The
marketing team of
Zara barely spend any
money on advertising.
The company's
marketing is based
over its Unique Selling
Proposition (USP) of
short processing time,
affordable pricing and
trendy clothes in large
variety.
H&M has wide range
of products and it is
well known fact, thus
it uses multiple
channels and
marketing tools for
promoting its offerings
and the brands. All
virtual platforms is
being used by H&M in
the most creative and
innovative manner for
making people aware
and potentially attract

them towards the
brand.
People The employees or
basically those who
are engaged in
manufacturing and
making product or
service available to
customers on behalf of
company is reflected
in people tactic. An
efficient workforce
play a critical role in
success or failure of
the brand or the
particular commodity.
The employees of Zara
have significant
impact over prosperity
of company. Zara
indulges popular
globally recognized
individuals to advance
their image. The entity
engaged all the expert
and well known
designers for
designing their trendy
collection and retailing
in the competitive
market.
The employees in
H&M are experts of
their field and
company's support is
provided to then too.
Regular trainings and
development
programmes are
provided for learning
and regular
development of staff
as well as updating
them according to the
current industry trends
(Martin, 2017).
Process The process strategy is
addressing the
methods company
undertakes while
developing and
offering a complete
good to the end
consumers.
The processes as
known is referring to
the methods
undertaken for making
commodities available
to end user as Zara is a
retail brand. In Zara all
clothes and other
products are designed
by the experts as well
as manufacturing takes
place in company's
warehouses (Han and
H&M has number of
process such as
physical stores,
presence in virtual
platform for sales and
retail purposes. But
another majorly
focused process is its
customer relationship
management. All
employees are trained
for rendering the best
customer services on

et . al., 2018). The
processes involved are
physical for
manufacturing and
conducting buying and
selling activities. Also,
virtual procedures are
used too as Zara has
its presence in Virtual
world too making
online sales and
rendering everything
what customers needs.
both online and offline
platforms.
Physical Evidence This one of the recent
tactic which added up
to the list and refers to
the assurance firm
offers to clients and
buyer about their
potential present and
future existence
(Papadas, Avlonitis
and Carrigan, 2017).
The physical
evidences proving
Zara's existence are
multiple. Beginning
with its 6500 stores or
retail outlets, Zara's
online application and
Website, Zara's bags
with its logo on it and
its employee base.
Evidence of H&M
existence are its stores
with soothing
ambience and its
humble staff. H&M is
expanding and moving
to more and more
international
marketplace like India.
Like Zara H&M also
have its application
through which its
makes international
sales to even those
markets in which it do
not have physicals
stores.

TASK 3
P4. Produce and evaluate a basic marketing plan for an organisation.
Marketing Plan
 Executive Summary
Marketing is an act of promoting goods and services and informing people that is
potential buyer about their existence in the market and the value those good will provide them.
Marketing is a basic task which companies perform on their behalf for attracting people and
making them long their consumers. Zara is an international brand offering their most fashionable
clothes and accessories to people all over world. Zara do not engage in aggressive marketing
practices but do promote goods though their USP's and its brands goodwill.
 Vision
The vision statement of Zara reflects upon its environmental friendly initiatives of
contributing towards sustainability and development of society in which company is operating
and going to work in.
 Mission
The brand mission statement is very simple and clear, it reflects that company aims at
providing everything what buyers need and as fast as possible before anybody else can lead the
market.
 Objectives
◦ To enhance sales by 15% in next 12 to 18 months period.
◦ To improve group's earnings by 8% contribution of Zara.
◦ To induce social media presence around the globe.
◦ To increase profits of Zara itself by 10% to 12% in next one year.
 Segmentation, Targetting and Positioning
In marketing there are number of tools and models are being used by business owners
and experts (Sample, Hagtvedt and Brasel,, 2019). Amongst those STP is a very beneficial on
enabling the marketer to divide the market in smaller segments and focus on particular target
groups. It has three phases that are:
◦ Segmentation- The first stage is of Segmentation in which the whole population is
divided in to smaller segments according to some common features and

characteristics. Zara segments its audiences through Psychographic segmentation
technique considering Lifestyle as a major factor.
◦ Targetting- Once groups are divided then one or two segments are chosen and this is
known as targetting and supported by segmentation phase. The target group of Zara is
middle and upper class families and individuals who wishes to be trendy and stay
fashionable.
◦ Positioning- The last stage is the most important one in which company position
itself in market showcasing their value and benefits it will be offering to end
consumers. Zara position itself through its USP's of offering such as fast and best
quality goods (Long and Jerath, 2018).
 Marketing Mix
◦ Product offered by Zara are of best quality and with the motive of reaching to all
customers with the purpose of fulfilling their needs of fashionable clothes and
accessories as fast as possible and before anybody.
◦ Price strategy of Zara is lower as compared to others in the market like GAP and
H&M. The company aims at providing best to people in lower prices and reaching to
all potential buyers (William and Zikmund, 2012).
◦ Place referring to distribution channels in that case Zara is strongly accessible
through its online platforms and through its 6500 physical stores around the globe.
◦ Promotion strategy of Zara is simple and not aggressive at all, company's marketers
spend very little amount over advertising and place no ads in TV or any other
platform. Company market its offering through its USP and stay engaged in market
by its goodwill and popularity (Nicholls and et. al., 2013).
◦ People are the workforce of Zara who are experienced and trained, famous designers
are hired for the yearly collection designs of the brand and also the other staff is
properly trained for rendering the best services to customers.
◦ Process involved in the operations of Zara are manufacturing, retailing through
physical stores and sales through Zara's customized application. s
◦ Physical Evidence are the stores present worldwide, online application and websites
and the resources of Zara.
 Marketing Budget

Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 7000 10000 12000 10000 10000
Investment 3000 18000 25000 35000 18000
Total 10000 28000 37000 45000 28000
Marketing outlay
Promotion 12000 4000 9000 10000 4000
Sales publicity 4000 4000 4000 4000 4000
Direct selling 4000 15000 5000 4000 4000
Total 20000 23000 18000 18000 16000
CONCLUSION
The above report is holding several discussion about marketing function and practices
with a conclusion that it is one of the major operations which are undertaken by companies.
There are number of activities which marketing function and team conducts such as market
research, developing promotional plans and many other. Marketing function not just benefits the
entity but also support other functional units to operate properly. Every company has unique
marketing tactics which they set according to the ultimate goals of their business. Marketing mix
tool well defines these tactics and combines them together rendering a better approach to
business owners and management.

REFERENCES
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