Online Marketing strategies used by Zara to increase profits and retain more market share

This research project focuses on the online marketing strategies used by Zara to increase profits and retain more market share. It explores the challenges faced by Zara in implementing online marketing and the potential impact of internet marketing as a promotional tool. The project also discusses the changing nature of internet marketing and the opportunities it provides. It addresses issues from a marketing and consumer behavior perspective and includes a section on data collection methods.

Research Project on
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Task 1...........................................................................................................................................2
Task 2...........................................................................................................................................3
Task 3...........................................................................................................................................5
Task 4...........................................................................................................................................6
Data Analysis...................................................................................................................................8
Task 6.........................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is one of the essential and significant part of organisation that is effective for
overall growth and development. It is crucial that organisation is successfully and correctly
conducting marketing practices in order to attract more and more customers towards business as
well as increase sales of products and services. There are different ways and approaches through
which organisation can conduct marketing practices and it will assist in enhancing business
practices as well as carry out advertisement and promotional activities in effective manner. This
report is based on Zara company (Kotabe and Helsen, 2020). This is one of the well known
retail company that is providing fashionable products to customers. Zara organisation was
developed in year 1975 and founder of this organisation is Amancio Ortega and Rosalia Mera.
This organisation is providing products and services to worldwide market area and its major
product range is in clothing, footwear and other accessories products. This report includes
different concepts of internet marketing and different challenges faced by company while
implementing online marketing. Different issues form marketing has been analysed. Different
methods and approaches of data collection has been determined. Data analysis has been
conducted in order to take better decision. Apart from this, different recommendation has been
provided.
Title of the project: Online Marketing strategies used by Zara to increase profits and retain
more market share.
Aim: To evaluate the opportunities provided by internet tools which have been contributed to
Zara’s success.
Objectives:
1. To research all the digital strategies implemented by the company
2. To determine the challenges faced by Zara in implementing online marketing
3. To understand the impact of internet marketing strategies and their impact as promotional
tools.
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Questions
1. What are the digital strategies implemented by the company
2. What are the challenges faced by Zara in implementing online marketing
3. What are the impact of internet marketing strategies and their impact as promotional tools.
MAIN BODY
Task 1
Briefly explain the company background. Evaluate and analyse the factors that have
contributed to the popularity of marketing tools in the current digital environment with a
clear focus on internet marketing. Your work will focus on the role of Internet marketing
within the UK fashion industry.
Zara is a well established and known company that is provided high quality products and
services to customers. This is a Spanish apparel retail company that is specialized in fast fashion
products (Cateora and et.al., 2020). Zara company is offering different types of products and
services such as clothing, accessories, shoes, swimwear, beauty and perfumes. This company is
dealing in fashion retail sector and offices different range of products and services to customers.
According to the views of Ian Linton (2020), It has been analysed that there are different
factors which will lead to popularity of marketing tools in the current digital environment with a
clear focus in internet marketing (Six Benefits of Internet Marketing, 2020). It is essential for
organisation to successfully and effectively conduct marketing practices in order to attain desired
goals and objectives. Factors which contributed to popularity of marketing tools in current digital
environment are mention -
 Target market – Organisation is conducting marketing practices with the motive of
attracting more customers as well as influencing them to attain desired goals and
objective. Zara company is considering internet marketing tools as potential customers of
respective company is using digital and social media platforms. Targeted market area can
be consider as one of the essential factors which lead to enhance utilization of digital
marketing tools.
 Budget – Cost is also crucial factor that will lead to have major impact on marketing
practices and planning of organisation (Park, 2020). It has been determined that digital
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marketing is cost effective and it will provide reach to large market area in less time.
Through digital marketing practices Zara company will be able to influence and attract
large number of customers in less time. Digital marketing is effective and significant in
order to conduct marketing practices in most effective and accurate manner.
 Technology – Technology advancement lead to enhance marketing practices of
organisation as it will assist in carry out marketing activities in more creative and
innovative manner. There are various new and advance technology in market area which
will lead to provide new and creative way to company for conducting marketing
activities. Through this company will be able to use digital marketing aspects in better
and effective manner.
It has been analysed that internet marketing is one of the most effective and significant tool
which will lead to have positive impact on overall performance and productivity of business. It is
crucial for Zara company that is dealing in fashion retail sector to carry out marketing practices
in more creative and innovative manner (Appel and et.al., 2020). This will have significant
impact on business and its overall performance. The major role of internet marketing is to
increase visibility of organisation as well as influence large number of customers to purchase
products and services of Zara. This is crucial for two way communication with customers as well
as help in developing better relation with customers.
Task 2
The changing nature of internet marketing and address the challenges it faces.
As per the views of Chris Leone (2020), It has been determined that there are different
challenges faced in internet marketing due to changing nature. It is essential for organisation to
successfully and effectively carry out marketing practices in order to influence large number of
customers. It has been analysed that due to changing nature of internet marketing Zara company
will have to face number of challenges that will have affect over its performance and
productivity (Umarxodjaeva, 2020). Different challenges through this Zara company have to
deal due to changing nature of internet marketing is mention below –
 Social media management – It is very difficult for organisation to have significant
social media marketing strategy as well as managing different aspects in correct or
accurate manner (Five Of The Biggest Challenges Facing Online Marketing, 2020).
There are chances that organisation don't have your social media methodology sorted
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out. Online media is still youthful to the point that organizations are considerably more
prone to have fizzled via web-based media than succeeded. This incorporates brands has
unlimited manpower to handle different aspects of business practices.
 Getting value form SEO – This is one of the major challenge for organisation to get
value form SEO in order to get competitive advantages. Attempting to get through the
opposition without the accessibility of viable ease arrangements has many scrutinizing
the estimation of SEO (Musarra and Morgan, 2020). Basically, the expense of
information has expanded while the normal yield has diminished. That is a hazardous
pattern and very challenging for organisation.
 Multi device usage – There are different multi devices that can be used by organisation
in order to carry out marketing practices in more significant and effective manner. As an
information driven organization, perhaps the greatest test is the way to follow the guest
experience across different gadgets throughout the purchaser purchasing cycle. Changes
in internet marketing will lead to use of multi devices usage which will include over
online marketing practices of business.
 Optimizing mobile experiences – Portable clients have less tolerance, are looking for
changed replies, and can be at an alternate stages in the purchasing cycle. The versatile
client is extraordinary and it's dependent upon you to discover how and why. Really at
that time would you be able to change your informing and introduction to suit the
versatile client.
 Return on investment of marketing activities – Return on investment in marketing
activates is very crucial and essential for organisation. Return for capital invested is a test
to gauge, even in the advanced world. I addressed one of the primary driver in the third
point above: multi-gadget utilization (Berger and et.al., 2020). Program treats are a
typical method to interface site visits back to the advertising channel answerable for
producing the guest.
 Managing website – It is very challenging for Zara organisation to maintain its website
in creative or attractive manner so that large amount of customers are influenced and
purchase products and services. Websites are not the static leaflets they used to be.
Compelling websites are dynamic, continually developing, and incorporate into
advertising mechanization and CRM frameworks. Organizations who depend on the web
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to create significant leads and deals for their business put intensely in the progressing
activity of business site.
Theories of Internet Marketing
Social Proof – This is one of the theories of internet market that can be applied to
different scenarios. The different ways in which this theory can be used are user-generated
content, sharing counter as well as sharing buttons. The user generated content involves content
that is made by the users such as written testimonials, videos, social mentions, good reviews etc.
Similarly, people who share content of the company is seen by other users and it is more likely
that they will share the same.
Confirmation Bias – This is another theory of internet marketing wherein people seek
information that primarily supports their views, while looking away from the evidence that might
put them wrong.
Task 3
Companies are keen to explore the opportunities provided by internet marketing and the
potential impact it has as a promotional tool.
As per the article of WebFX (2020), It has been determined that there are various benefits
and opportunities provided by internet marketing in order to successfully and effectively
conducting promotional activities (Kohli and Haenlein, 2020). Internet marketing is very
important as it will provide advantages to company for successfully conducting business
practices as well as influencing large number of customers towards business (7 Reasons Behind
the Importance of Internet Marketing, 2020). Different opportunities that is provided by internet
marketing and its potential impact as promotional tool is mention below –
 This provide opportunity of enhancing communication practices as well as performing
business practices in more significant and effective manner. Through internet marketing
respective company will be able to conduct two way communication with potential
customers as well as gain better understanding regarding their needs and wants. It will
lead to have potential impact over enhancing sales of Zara company products as well as
help in developing better relationship with customers.
 This provide opportunity of personalized experience to customers. With the assistance of
internet marketing respective company will be able to provide personalized experience to
audience in order to successfully meet with the needs and requirements of customers
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(Chaffey and et.al., 2020). it is essential opportunity for Zara company to creates
experiences for each members in the audience and meeting with the demand of
customers.
Task 4
Recognise some issues from marketing/digital marketing and consumer behaviour
perspective regarding internet marketing
As per the views of Steve Brown, (2020), it has been analysed that digital marketing is
crucial for organisation and it includes various issues and challenges that will have affect over
business and its performance. It is essential for Zara company to determine different marketing
or digital marketing in order to attain desired goals and objective. One of the major issues for
respective company is to create right and accurate content which will have significant impact
over performance and productivity of business. In digital marketing practices content play
significant role for influencing customers as well as providing right information to customers
about the product and services offered by business (He and Harris, 2020). Determining
marketing return on investment is issues that will affect over business practices. It is essential for
company to analyse and determine the effectiveness of each campaign in order to take better and
accurate business decision.
Customer behaviour can be describe as the perception or attitude of customer regarding
products and services offered by organisation. It is essential for Zara company to enhance
positive customer behaviour in order to influence more and more customers towards business as
well as increase sales and profitability. Through customer behaviour respective company will be
able to determine what when, where, why as well as how individual group utilize products and
services. It has been analysed that most of the customers have positive behaviour towards
internet marketing as it assist in providing variety of information to customers.
The perceptions, preferences of the customers keep on changing and therefore, it is
important for the companies to take into account the same while developing new products and
services. this can help in gaining a competitive advantage as well as a strong brand image. One
of issues in digital marketing is that in order to attract a lot of audience, the company might have
to use paid advertising another issue is that the company might have to connect with the
influencers and this can be quite expensive for the firm. There is a tough ranking competition so
this can also be one of the major challenges of digital marketing. Consumer behaviour can pose
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different challenges as well. These can include the economic conditions, purchasing power of the
people as well as group influence.
Data collection – Data collection can be described as the practice that assist in finding or
assembling correct or accurate information about the topic. there are different ways and
approaches through which investigator can find or collect accurate data in order to take correct
decision. It is essential that researcher have correct data or information with the motive of getting
desired results or outcomes (Tong, Luo and Xu, 2020). Different methods and approaches of
data collection is mention below –
 Qualitative research – This refers as the way of collecting information from non
numerical data such as text, audio or video. This is significant method in order to gain
correct information regarding the concept, opinions or experiences. Through this types of
research individual will be able to gather in depth information about the topic or idea of
the research.
 Quantitative research – This is consider as systematic way of gathering and assembling
information from different sources. Quantitative research includes data in the form of
numerical from and this is significant in order to take correct or accurate decision. This
research approach assist in analysing information is accurate manner as well as
accomplishing desired outcome.
 Primary research – This is consider as one of the effective method of collecting data or
information. Primary data is refer as the first hand data which is original information
gathered by investigator (Ding and et.al., 2020). This type of collected information is
gathered for the first time and it is helpful for taking correct decisions. There are different
ways and approaches through which primary data can be collected such as survey,
interview, observation, experiment and so on.
 Secondary research – This is refer as the method of collecting information form primary
data. Secondary method of data collection is effective way of finding data and
information as this will assist in reducing cost of data collection. There are number of
ways and approaches through which secondary data can be collection such as books,
news paper, articles, government paper and so on.
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Data Analysis
Data analysis is an important component of a project because it allows the researcher to
analyse the information that is collected. Analysing the data helps the researcher in gaining
useful insights and therefore, making useful decisions. In order to analyse the respective report,
the researcher has used thematic analysis. It can be defined as a method of analysing qualitative
data and involves the researcher closely analysing as well as evaluating the data in order to
identify common themes such as topics and ideas. The themes that are identified, are then used to
address the research in an effective manner.
In this research, investigator is considering secondary data in order to find correct or
accurate information.
Theme 1: Digital strategies implemented by the company
According to Sample, Hagtvedt and Brasel, (2020), digital marketing strategies implies
series of actions that will allow firm or individuals to utilise online marketing channels for
attainment of the goals. Channels comprises of earned media, owned and paid that will aid
within building as well as launching marketing strategies that are completely online. The
important aspects that organisation need to emphasise on before opting for digital platforms are
carrying out extensive research for information collection, its analysis, creation vision along with
website strategies and identification of tools & other assets that are needed. With reference to
Zara, they have formulated certain online strategies, e-Commerce have critical role and they
have opted for digital transformation that will be worth €2.7 billion. As per their 2020-2022 plan
the emphasis is laid on following aspects:
IT Infrastructure: The firm is opting to develop proprietary for the digital functionalities
of the organisation for improvisation of their scalability along with their flexibility. For this they
are developing eCommerce platform that will merge associated processes that comprises of
purchasing, orders, inventories and distribution. The configuration was initiated in 2018 and by
2022 it will be completely deployed. It is anticipated that during the peak times it will lead to
enhance the sales.
eCommerce scale-up: Zara is anticipating that with digital platforms their online sales
will make around 25% of their complete revenue by the year 2022. The other initiative in this
aspect that Zara is opting for is enhancing their online customer service teams along with
deployment of RFID systems across brand by end of 2020.
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Figure 1: Global Fashion Industry E-Commerce
Integrated physical stores: Inditex is planning further to minimise the stores in between
6700 to 6900 from 7412 with making emphasis on integration technologies. The rationale of
doing is to integrate online along with physical businesses by dispatching customers with their
online orders from store (Umarxodjaeva, 2020). This can be only carried by utilisation of IT
platform.
Introduction of store mode: Customers will have options to have access to the services
of Zara through the utilisation of mobile apps along with website which is being attained by
integration. This also involves abilities for consulting with store stocks within real time for
carrying out online purchase along with immediate gathering and will also pinpoint the particular
item within the specific location of the store.
Promoting environmental sustainability: The major emphasis will be laid on the
sustainability that acts as a digital transformation strategies. Only renewable sources of the
energy will be utilised. Zara aims at recycling as well as reusing surplus of incoming materials
like plastic, packaging along with cardboard for elimination of single usage plastic from their
store customer interface.
These are some strategies that Zara has implemented towards having
digitalization within their services through which they can captivate customers towards their
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offerings (Musarra and Morgan, 2020). In addition to this organisation have clearly stated the
concept of sustainability within the services that are being delivered by them. This will aid them
within establishment of overall direction of business in which they will conduct their
functionalities. The different channel, platforms, tools and assets have been illustrated through
which overall goal of digital strategies can be attained as well as precise outcomes can be
attained.
Theme 2: Challenges faced by Zara in implementing online marketing
As per Berger and et. al. (2020), while expanding functionalities within the digital world,
different challenges are faced by the organisation when they tends to establish market for their
digitalised services. Zara is a well-established firm but as they have opted for delivering online
services then they face certain challenges. These are specified beneath:
Driving significant traffic to their website: When it comes to the spread of brand
awareness, they need to target right audience. But it becomes difficult for Zara to drive in ideal
traffic. Thus, it is important to identify the probable channel where they need to tap in as well as
drive the relevant audiences into their website to turn up into the loyal as well as trustful
customers.
Targeting right audience in effective manner: It is important for management of Zara to
determine target audiences within the marketplace. As the number of users are enhancing day by
day, their need are also altering. Thus, it becomes critical for firm to target the right audiences
and this is biggest challenge for the marketer. This implies, that businesses needs to emphasise
on what business offer along with what problems they have to solve and creation of value
proposition. This might aid within identification of what or who are the demographic and to what
extent they must be targeted.
Lead generation by utilisation of social media: When there are different social channels
then marketers and buinesses exactly do not know the manner in which they will be consistent.
Generally, organisation think that paid campaigns are necessary for executing brand awareness
along with lead generation. But this lead the entities to face continuous challenge within
increasing competition within the marketplace.
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Figure 2: Challenges faced by Company
Optimisation of marketing budgets along with ROI: With the enhancement of advanced
analytics tools along with digital channels, marketers are anticipated to optimise marketing
budgets as well as addressing needs of the businesses (Kohli and Haenlein, 2020) They are
anticipated for measuring efforts along with value for attainment of end goal even it can be
number of leads that are being generated or revenue that is raised.
Minimised focus on the keywords: To create relevant impression on the audiences, it
becomes important to identify appropriate keyword as well as utilise them in manner.
These are certain challenges that are faced via Zara while delivering their services within
the marketplace. Therefore, it becomes important to identify the mediums in an appropriate
manner through which they can deal with these difficulties in an affirmative manner. In order to
be successful within the competitive market, these aspects needs to be considered.
Theme 3: Impact of internet marketing strategies and their impact as promotional
As per Chaffey and et. al. (2020), each business is going through solid competition across
world and thus, this becomes difficult for them to rope into the customers. This is essential to
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advertise best products within the market so that customers can buy them. It is identified that
Zara can attain relevant benefits through the utilisation of digital marketing but there are
pessimistic impacts also. These aspects are specified beneath:
Affirmatives of Online marketing:
 Wider reach to customers: Online businesses are not confined to restricted physical
place but products can be sold within any part of country. This makes it easy for the
customers to have access to the services.
Figure 3: Social Media, Search Net Above Average Lead Conversion
 Immediate quantifiable outcome: Online marketing will aid Zara within having
quantifiable results. This means that each activity of customers can be measured from
clicks to purchases they have been made.
 Customers relationship and convenience: This aids within building up enhanced
relationship with their customers within the real time scenario. This can be attained by
Zara through usage of follow up emails related with new services and products. In
addition to this, customers can do shopping irrespective of time zone without physically
visiting the place.
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 Track preferences of the customers: The purchase that is made by the customers can be
tracked easily. This will aid ZARA within providing their customers with customised
experiences. This will lead them have enhanced loyalty along with formulation of strong
brand positioning within the marketplace (He and Harris, 2020).
Pessimistic impact of online marketing
 Needs special expertise: In order to succeed, apart from the fundamental knowledge
about marketing, there is also need of having understanding related with search engine
technology, content creation, advertising techniques along with logics for mastering
internet marketing.
 Agnostic feedbacks: On the social media both positives as well as negative comments are
being given by the people (Tong, Luo and Xu, 2020). Both have certain impact on the
mindset of the person who is looking forward to particular product. This also implies that
when comments will be negative then most of the people may not buy that product and
this will lead business to have decline within their sales.
 Inaccessible: In case if this is not available within the rural areas like deliveries cannot
be made in particular area then elderly people cannot have benefits from this (Ding and
et. al., 2020). Even the illiterates cannot use the app that is provided by Zara for online
shopping.
 Internet frauds: Audiences can experience fraudulent and unethical practices within the
internet marketing. The reason behind is fake logos and trademarks which further defame
the reputation of organisation.
This is the impact that is caused by internet or digital marketing on the organisation. Thus,
it becomes important for Zara to consider these aspects and accordingly deliver their liabilities
within the market so that they can amplify their brand awareness.
Task 6
Recommendations
As per the above mention report there are some recommendation for the manager of Zara
company in order to take better and effective decision. These recommendation are significant for
enhancing growth and development of business. It is recommended to Zara company to consider
online and social media marketing as its customer bases is active on different social networking
sites. This is great opportunity for Zara company to connect with potential customers as well as
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increasing its customer base. It is recommended that respective company is considering right and
accurate content in order to attract or influence large number of customers towards business
along with this increasing sales and profitability of business (Lahtinen and et.al., 2020). Online
marketing practices are easy for reaching large customer base as well as reducing cost of
business to successfully carry out marketing practices. It is recommended to Zara company for
considering new and innovative technology in business practices. There are different types of
advance technology and tools that will assist respective company to successfully conduct
marketing practices as well as enhancing organisational task. Through new and advance
technology Zara company will be able to influence customer base and it will lead to post
information about products or services of Zara in more creative manner. Social media marketing
approach can be consider by Zara business as it is available for 24*7 and assist in attracting large
number of customers towards company. It is very important for Zara company to develop strong
and effective relationship with potential customers. This will help in identifying their needs and
wants which will lead to have affect over sales and profitability of business.
CONCLUSION
From the above report it can be concluded that there are different aspects and elements that
are associated to marketing and it will lead to have major impact on overall functioning and
performance of business. It is essential for organisation to carry out marketing practices in
successful and significant manner as it will have direct affect over organisational sales and
profitability. There are different challenges and issues faced by company while carry out internet
or digital marketing practices. It is significant for company to take correct and accurate actions in
order to meet with the demand or requirements of customers.
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REFERENCES
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Berger, J., and et.al., 2020. Uniting the tribes: Using text for marketing insight. Journal of
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Six Benefits of Internet Marketing. 2020. [Online]. Available through: <
https://smallbusiness.chron.com/six-benefits-internet-marketing-31382.html >.
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https://www.webstrategiesinc.com/blog/five-biggest-challenges-facing-online-marketing>.
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