Marketing Management and Planning

This report provides a complete marketing analysis for the company Zara, Australia. It highlights the marketing objectives, identified issues, and marketing goals. It also discusses segmentation, target market, positioning, and appropriate marketing mix.

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Marketing Management and Planning
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Marketing Management and Planning 1
Contents
Introduction......................................................................................................................................1
Marketing Objectives.......................................................................................................................1
Identified Issues from Situational Analysis.................................................................................1
Marketing Goals..........................................................................................................................2
Segmentation, Target Market and Positioning................................................................................3
Segmentation...............................................................................................................................3
Target Market..............................................................................................................................4
Positioning...................................................................................................................................5
Appropriate Marketing Mix.............................................................................................................6
Product.........................................................................................................................................6
Price.............................................................................................................................................7
Place.............................................................................................................................................7
Promotion....................................................................................................................................8
Conclusion- Role of the Marketing Plan.........................................................................................9
References......................................................................................................................................10

Marketing Management and Planning 2
Introduction
The purpose of this report is to enlighten the reader about the information of the company
ZARA, Australia. The report provides a complete marketing analysis for the company Zara,
Australia. The part one of the assessment highlighted information about the situational analysis
of the company and the areas where the business was facing issues in the target market. Based on
the issues faced by the business, the company is going to apply the below mentioned marketing
plan so as to eliminate issues and attain success in the target market. Further, the below
mentioned paper highlight the marketing objective of the company Zara along with
segmentation, targeting and positioning strategies of the company as well. Appropriate
marketing plan is also explained for the company based on the issues faced by the Zara and
marketing objectives as well (Kotler, et. al., 2015). Furthermore, details about Zara, Australia are
discussed below:
Marketing Objectives
Identified Issues from Situational Analysis
Australian has been looked as an opportunity market for the companies like Zara to initiate its
sales and attain success in the target market. The political factors of the country along with the
technological and socio-cultural factors act in favour of the apparel industry that might positively
affect the growth of Zara Australia in the market. The fast fashion style organization gains
several advantages in the target market of Australia. The overall fashion industry of Australia
shows a progressive growth of 2.3% along with increase in target market segment as well.
People of the country Australia prefer purchasing product that are economic and income friendly
as well (Roque, & Raposo, 2013). Also, fast moving technology makes the people to initiate
sales on the online stores of the company. However, Zara is lacking in the field of digital
marketing due to which the company is facing downturns in the target market. Further, it should
be noted that there are various factors that are pulling back the growth of the company. One of
the major issues that Zara Australia is facing in the target market is competition. As Australia is a
healthy market for the apparel companies to come and earn revenue due to which there are
competitors of Zara present in the market (Kotler, & Armstrong, 2010).

Marketing Management and Planning 3
Companies like H&M, Uniqlo and GAP are constantly running their business to attain a
competitive edge in the Australian market. It has also been reported in the paper that the
company used various toxic materials in manufacturing their product in the target market.
Further, it should be noted that due to heavy demand of new and innovative products of Zara the
company face issue of managing appropriate supply of products in the target market. Many times
the demand is not met with the supply that increases the dissatisfaction of customers in the target
market (Mower, Pedersen, & Jai, 2013). Further, Zara only focuses on increasing the satisfaction
level of women in the society instead the company should focus on both women and men
customers present the target market. The company also need to improve the after sale customer
services in the target market. Thus, these are the issues that the company Zara, Australia need to
focus while implementing a marketing plan for the business (Baker, & Hart, 2008).
Marketing Goals
To analyse and evaluate the challenges faced by the company Zara, Australia and retain the
customer loyalty and prospective sales in the market, a brand engagement strategy should be
initiated by the company coupled with social media campaign in the markets of Australia.
Further, the specific marketing objectives for the company Zara, Australia for next twelve
months are discussed below:
 Develop a social media campaign for brand promotion: the fact should be noted that
online marketing strategies of Zara are ineffective due to which the company is unable to
make sales through online platform. The company should effectively make use of social
media tools like facebook, instagram etc. and create various blogs to promote the name of
the company in the target market. The company should also display its products on
various ecommerce websites in the target market. The company should aim to increase
the sales of Zara by 10% through online marketing and sales (Xu, Gao, & Hammond,
2017).
 Start focusing on men as the target customer present in the market: The Company
majorly focuses on women clothing and other product. The management also focus on
innovating female centred products in the target market; however there are large numbers
of male customers who are loyal customers of the company. So, along with innovating
female centred products, the management should also offer innovative and stylish

Marketing Management and Planning 4
products to the male customers of Zara. The company should aim to increase the sales of
male products by 20% in the target market (Payne, 2016).
 Initiating effective supply chain and logistics management: The Company faces inventory
issue in the target market due to which the management is unable to meet the demand
with supply of products in the market of Australia. So, the company is aim to reduce the
wastage by 12% in the business and equalize the demand and supply as well.
Segmentation, Target Market and Positioning
Segmentation
http://economics-files.pomona.edu/jlikens/SeniorSeminars/Likens2013/reports/inditex.pdf
The company Zara, Australia is renowned for its chic clothes and other products in the target
market. The company is placed at a position in the market where the company provide high
quality services to customers at high prices in the market. The company majorly targets female
customers present in the Australian market. Further, segmentation strategy of Zara is made up of
three segments that are demographic, psychographic and geographic segmentation (Kaikobad,
Bhuiyan, Sultana, & Rahman, 2015). These segmentations for the company Zara are discussed
below:
Demographic: On the basis of demographic segmentation, the company targets people who
belong to age group 18 to 40. The company targets both males and females present in the
society.

Marketing Management and Planning 5
Psychographic: On the basis of psychographic segmentation, the company targets people who
like wearing fashionable clothes. These customers believe that their clothes identify their
personality in the environment. On the basis of this type of segmentation, the company targets
both upper and lower segments present in the society.
Geographic: On the basis of geographic segmentation, the company has more than 2000 outlets
all around the globe. Major areas of focus for the company are Spain, Australia, and China etc.
(Gurrieri, Gordon, Barraket, Joyce, & Green, 2018).
Target Market
http://www.roymorgan.com/findings/6338-australias-fashion-scene-offers-best-of-both-worlds-
201507150029
The company Zara, Australia targets people who belong to age group of 18-40 years. Basically
the company targets of both upper as well as middle income level people. The clothing range of
the company has diversity which makes the company to target people present in different
segments. Further, company targets both males and females present in the society. The company
targets people who believe that their clothes represent their identity and individuality in the
market. As the company provides chic and fashionable products so the business targets people
who prefer trying different products in the market than just normal and basic products present in
the market (De Mooij, 2018). The company has limited stores across the globe due to which they

Marketing Management and Planning 6
make use of selective targeting strategies in the market to make the products available in the
market. The company will target wide diversity of customers in the online platform so as to offer
variety of products to variety of customers falling in the target segment. Lastly, Zara, Australia
targeted a wide gap in the retail market as the company targeted customers who are interested in
high fashion and wants to be in line with the latest fashion trends present in the overall
international fashion industry. The company aims to target a large variety of customers through
its online marketing channels (D'Souza, 2015).
Positioning
The company Zara, Australia has positioned itself at a place where they target all type of
customers present in the market. The company provides high quality products at high prices in
the target market. Zara utilized usage based positioning strategies in the market to apply the
customer centric approach with an aim to satisfy the changing needs of the customers present in
Australia. The company already knows that customers expect innovative and trendy from the
products from the company in the target market (de Ruyter, Keeling, & Ngo, 2018).
Resulting in which, the business also create products in such a way that they meet the demand of
the customers and satisfy them as well. The company wants to position itself at the place where
the customer feels that their products are worth the price in the market. They do not want to
attract only skimmed customers but they want to attract all income level people depending on
their interest in fashion and apparel industry. The main objective of the positioning strategy of
Zara, Australia is to provide customers trendy and chic fashion products at prices that
accommodate the requirements in the market. As a result of the marketing strategy, Zara aims to
increase the outlets of the company in Australia and experience at high profile location so as to
set an image of the brand that is trendy, fashionable and accessible as well (Berberyan, &
Jastram, 2018).

Marketing Management and Planning 7
https://gupea.ub.gu.se/bitstream/2077/29430/4/gupea_2077_29430_4.pdf
Appropriate Marketing Mix
Product
The company Zara is known as Coca-Cola of the fashion industry. Zara is one of the most
enthusiast organizations present in fashion industry. The biggest strength of Zara is that the
company is able to quickly respond to the changing needs of the customers. The company
effectively analyse the demand and expectation of the customers and then apply them in the
products accordingly. This is the biggest reason due to which the products of Zara are highly
demanded by different types of customers present in the market (Roos, & Shroff, 2017).
Further, Zara do not outsource their manufacturing process due to which products are made with
full control of the management. This provides opportunity to the company to reduce the wastage
of raw material during manufacturing process and supply products according to the demand
present in the market. In this way, the company would be easily able to initiate the waste
management and inventory control process and at the same time satisfy the demand of products
present in the market (Liu, 2017). The unique selling proposition of the organization is to create
products that are differential in the market. Apart from women clothing, the company should also
focus on innovating the men clothing and accessories segment in the market so as to increase the
sales from the men segment as well (Anwar, 2017). In this way, the company will earn revenue
from men as well as women section in the market. Along with this, the company should also
supply its products to various renowned e-commerce website to adequately capture the market

Marketing Management and Planning 8
base. This will also increase the supply chain and logistics process of the company. The
environmental need of the company also assist the company in innovate products and increase its
sales in the market. The environmental factors act as a benefit in the growth of the company Zara
in Australia (Yoo, & Kim, 2016).
Price
As the concept and main focus of Zara is to provide fashionable products to a large segment of
customers present in Australia due to which the company provides product at different ranges to
the customers in the market. The company is placed at a position from where they provide
quality products at optimum prices in the market. The prices of the product are quite affordable
by the customers that help the company increase the sales in the target market. The company can
attain the marketing objective to increase the turnover by initiating sales through online
platforms. Further, the business can expect to target the skimmed customers in the market but in
order to attain competitive advantage in the target market, the company need to target all the
prospective people present in the market (Zara 2019).
Zara is not a brand for rich class people present in the society instead it’s a brand that is
affordable by fashionable and all income level people present in the market. The stores of Zara
look that they are made for premium class customers in the market but some of them are very
affordable to people as well. The company should further focus on cost cutting process so as to
increase the profit margin and eliminate the unnecessary costs attracted to the business
(Saraswat, 2018). The pricing process of Zara Australia is made possible by optimizing the
development and training costs as well. The pricing strategy of the company also eliminates high
level of competition in the market as the company provides product at comparatively low prices
than the competitors present in the market (Graham Ruddic 2014).
Place
The business structure of the company is very unique that makes it different from other
companies as the structure of the company is vertically integrated. This means that the company
design, produces and then supply the product itself to the customers in the target market. There is
no interference of any party in the business function of the company that implements an effective
supply chain management system (Chan, & Mok, 2018). Further, being a subsidiary of Inditex

Marketing Management and Planning 9
the company gains the advantage to supply its products in the different segments of the market.
Initially, the Zara Australia should capture the complete market through online platforms. In
order to promote sales online, the company should organize social media campaigns to create
brand awareness (Mierzejewska, 2017).
Further, in case of physical sale the company should target four major cities of Australia that are
Sydney, Melbourne, Brisbane and Perth. Then the company should setup warehouses of Zara in
all these locations so as to send the products to store on time. These four locations of Australia
are the major areas where the company need to focus in order to initiate its sales in the target
market. Further, the company should effectively focus on the supply chain integration and
logistics strategies with an aim to meet the demand of the customers present in Australia
(Viardot, & Nylund, 2017). The company should also aim to change the stock every time and
make the products approachable in the target market. Effective online as well as offline supply
chain management strategies of the company will provide them opportunity capture a wider
market base and increase the sales of the company as well (Wang, 2018).
Promotion
This is one of the most important aspects where the company need to improve in order to
eliminate the complexities of the business. The company need to initially focus on the social
media marketing activities to increase the areas of sales for the business. Tools like Facebook,
Instagram, and YouTube etc. should be utilized by the company to increase its sales in the target
market (Kumar, Bhardwaj, & Joshi, 2018).
The company should organize campaigns to promote the brand image in the eyes of customers;
these campaigns should attract more and more customers in the target market. The campaigns
should adequately represent the brand image in such a way that the customers get a clear picture
about the activities of the company. Further, company should post blogs and magazines so as to
let people know about the trends in the fashion industry (Mayrhofer, & Roederer, 2016). The
management should also initiate effective after sales service and provide a feedback form to the
customers so as to attain information about the expectation of customers from the brand. This
will help the company to promote its activities in a better and influential manner. Lastly, the
company should also locate the hoardings of the brand near supermarkets and crowded place so
that people get connected with the name of the brand in Australia (Steenkamp, 2017).

Marketing Management and Planning 10
Thus by using all such marketing strategies, the company Zara Australia can easily eliminate
complexities of business and attain the marketing objectives in the target market.
Conclusion- Role of the Marketing Plan
Thus, in the limelight of above mentioned events, the fact should be noted that the above
mentioned paper highlighted information about the company ZARA, Australia. The paper
enlighten the reader about the marketing plan of the company, the marketing plan of Zara is
formed in a way to eliminate the issues affecting the growth of the company in the target market.
The above mentioned appropriate marketing mix of the company is created by analysing the
issues faced by the company along with new segmentation, targeting and positioning process.
The above mentioned marketing plan will adequately help the company Zara to sustain its image
in the market of Australia and rise above competition and other complexities as well.

Marketing Management and Planning 11
References
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Baker, M., & Hart, S. (2008). The marketing book. UK: Routledge.
Berberyan, Z., & Jastram, S. M. (2018). Drivers and obstacles of ethical fashion consumption.
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Chan, P. Y., & Mok, P. Y. (2018, July). New Wave Of Digital Tailored Fashion Marketing With
Social Media. In 2018 Global Marketing Conference at Tokyo (pp. 121-122).
De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes.
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