Role of Marketing in Zara: A Strategic Analysis

This report explores the role of marketing in Zara, one of the largest apparel companies. It covers topics such as the marketing mix, comparison with Gucci, and formulation of a strategic marketing plan. The report also includes a SWOT analysis and a detailed overview of Zara's marketing strategy.

Role of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2 (A)......................................................................................................................................1
Comparison of the ways in which marketing mix is used by the organisations..........................1
TASK 2 (B)......................................................................................................................................4
Formulation of strategic management plan by using marketing mix..........................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is the process of establishing a positive and attractive image of business in the
mind of customers so that all the requirements of them could be fulfilled and success could be
achieved in business. Major role of it is to enhance awareness of products and services among
targeted market (BAČÍK, ŠTEFKO and GBUROVÁ, 2014). In order to meet long term business
goals it is very important for all the entities to make sure that effective strategies are formulated
to perform operational activities in systematic manner. This report is based upon Zara which is
one of largest apparel companies around the world. It was founded by Amancio Ortega and
Rosalia Mera in year 1974. This assignment covers various topics such as Role of marketing and
relation of it with other functional units. Apart from this, the way in which marketing mix
elements are used to meet objectives and formulation of strategic marketing plan is also covered
in this assignment.
MAIN BODY
TASK 1
Covered in PPT
TASK 2 (A)
Comparison of the ways in which marketing mix is used by the organisations
Marketing mix: It is a marketing framework which is used by entities for the purpose of
achieving business objectives such as large number of customers, higher sales etc. There are
seven different elements of it. These are product, price, place, promotion, people, process and
physical evidence (Boschettiand Massaron, 2015). Zara is also focused with the application of
them so that it can achieve all its long term goals and objectives. Comparison of Zara with Gucci
on the basis of applicability of all the elements of it is as follows:
Marketing mix
elements
Zara Gucci
Product Zara is using product mix and
providing all the categories of
trending clothes. Any new style,
There are various types of items
which are sold by Gucci in the
market for the purpose of
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new trend in market is covered by
organization Every new style
trendy clothes are available on
their stores within no time frame.
It is not following any
outsourcing strategy.
attracting large number of
customers. These are leather
goods, shoes, ready to wear,
watches and jewellery.
Price Price is an element which is part
of a profit. Price will decide what
amount of profit will be achieved
and what optimized price should
be taken so that profit is also
optimized and price is according
to the market rate. Zara follows
competitive strategy and its
pricing is low comparatively with
their competitors (Bryson and
Daniels, 2015).
In order to remain competitive in
the market it is very important for
the organisations to set
appropriate prices. The pricing
strategy which is focused by
Gucci is Premium pricing as its
targeted clients are from upper
class. Another reason for adopting
this policy is high quality of all
the products which are sold by the
organisation.
Place Zara invests all the financial
resources in various location with
attractive stores. It helps the
organisation to be easily
accessible for all the clients who
are visiting the stores.
Gucci is highly focused with the
establishment of the stores in
relaxing environment which helps
to create good relationship with
customers. The major places
which are used by it for the stores
are malls where targeted
customers can reach easily.
Promotion Promoting the brand is an
essential element in marketing. If
customers are not aware of
products, new outlets etc. then all
other functions may get wasted.
In order to retain all the clients it
is very important for all the
organisations to make sure that
they are promoting the products.
Gucci is highly focused with
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Zara is not focused on
promotions relatively gives more
importance to pricing and
placements.
experimental marketing for the
purpose of promotion and it also
spend huge amount on the
promotional activities. The main
elements which are focused for
this marketing mix component are
print media, banners etc.
People All the personnel or staff who are
are working in organization
including the businessman itself
are the people. Zara follows
strategy of giving employment to
all the young talents. The
organisation also make sure that
staff members are interacting
with clients properly so that sales
could be enhanced.
Gucci is paying attention towards
all the staff members who are
working with it so that they can
contribute in the growth of the
company (Cluley, 2017). Timely
training programs are conducted
by the organisation so that all the
employees can interact with the
customers and fulfil all the
requirements.
Process It involves the processes which
are involved in delivery of the
product. Good process will
ensure that products are delivered
on time and standard product is
delivered to the customers with
satisfaction. Zara has centralized
system where the information
passes through to the
management and all the
information is used to decide the
marketing strategies.
Gucci is one of the luxurious
brands around the world which
therefore it is very important for it
to make sure that all the stores of
it are having sufficient products.
For this purpose, the top level
executives make sure that all the
products of it are always available
in the stores. Online delivery
process is also managed by it
properly which helps to meet
expectations of clients.
Physical evidence It is the visual evidence of a In order to sell all the products
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product that how it appears, the
styles of the products and
designs, colours availability all
these factors also matters a lot.
Zara provides range of clothing
items to the clients in its stores
for different age customers which
helps it to provide a great
evidence to all of them (Hanlon,
2019).
Gucci is using distinct packaging
which makes its products
attractive. With the help of it,
customers can locate all of them
separately on busy stores.
All the elements of marketing mix are focused by all the organisations such as Zara as
well as Gucci for the purpose of attaining business goals. In order to achieve the objective of
higher profits Zara set appropriate price for all the items, keep the quality high and promote them
appropriately. On the other hand, Gucci is paying attention towards physical evidence by
designing all the products distinctively for the purpose of achieving objective of retaining
customers.
TASK 2 (B)
Formulation of strategic management plan by using marketing mix
Strategic marketing plan: It can be defined as a detailed plan which is focused by
organisations for the purpose of enhancing awareness of the products that are sold in the market.
Main purpose of it is to attract potential clients so that higher profits and revenues could be
acquired. By taking effective steps and paying attention towards weaknesses of business a
strategic marketing plan is designed (Hiam, 2014). For the same purpose SWOT analysis is
required to be conducted by Zara.
SWOT analysis: It is a strategic management tool which is used by companies for the
purpose of determining the key strengths, weaknesses, opportunities and threats. With the help of
it decisions for future could be taken so that business could be developed. Detailed analysis of all
the components of it in context of Zara is as follows:
Strengths Weaknesses
 The designs of all the items which are  There is lack of advertising for Zara
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sold by it are unique which helps it to
compete in the market (SWOT analysis
of Zara, 2020).
 Market presence of Zara is very high
which helps it to generate higher
profits.
which results in less awareness of its
products among customers.
 It is not specialised in specific products
which is one of the main reason due to
which customers shift to competitors.
Opportunities Threats
 Zara can make all the clothing of its
available online which will help it to
reach maximum number of customers.
 Zara can take advantage of the market
expansion strategy by introducing its
products in new markets.
 There are various competitors such as
Gucci of Zara in the market who may
affect the business of it.
 Low advertising may result in
decreased business of Zara in upcoming
period.
The SWOT analysis shows that advertising of Zara is very weak therefore it is required to
formulate a marketing plan so that awareness of all the items which are sold by it could be
increased in the market. All the elements of the plan are as follows:
Overview of organisation: Zara is one of the luxurious clothing brand which is
operating business all around the world. In order to spread awareness of all its products the entity
is planning to develop a marketing plan so that weakness and threats which are taking place due
to lack of advertising could be resolved systematically (Karnaukhova and Polyanskaya, 2016).
Objective: Marketing plan is developed for the purpose of enhancing awareness of all
the clothing items of Zara in upcoming 12 months so that profits of the company could be
increased by 5%.
Mission and Vision: Mission of Zara is to be the market leader in the clothing sector at
global level. Vision of the enterprise is to capture a large market share in upcoming years.
Marketing mix: All the seven elements of it which are modified according to the
marketing plan are as follows:
 Product: All the clothing items which are sold by the organisation will be advertised in
the market so that Zara can attract large number of customers.
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 Price: While marketing the clothes the organisation have planed to keep the price
according to the market and use competitive pricing. It will help to compete with rivalries
in the market (Kuntonbutr, 2019).
 Place: Marketers of Zara are planning to make all the stores easily available for the
clients so that it can reach to the objectives of increasing profits.
 Promotion: Zara have planned to provide discount coupons to the customers who are
regularly visiting the stores and redeem them on their next purchase which will help the
organisation to retain its clients (Pike, 2015).
 People: Proper training is required for all the staff members so that they can interact with
all the customers properly. In order to resolve all the queries of clients visiting the stores
Zara have planned to provide training to all the staff members.
 Process: In order to attract large number of customers Zara is planning to modify its
processes of delivering goods to the clients. Time taken in the procedure will be reduced
to reach the marketing objectives (Stephens, 2016).
 Physical evidence: It is the last element of marketing mix and the organisation have
planned to provide great experience to the customers by keeping the environment of
stores safe and attractive.
STP analysis: It can be defined as the combination of three different elements which are
segmenting, targeting and positioning. All these components are discussed below in context of
Zara:
 Segmenting: There are various types of segments in the market which are demographic,
geographic, behavioural and psycho-graphic. Organisations segregate their market on the
basis of them so that all the goals could be accomplished. Zara is focusing upon
demographic segment as it sells all its products on the basis of age, gender, income level,
education etc.
 Targetting: In this element of STP organisations select the targeted audiences from the
selected segment. Zara is targetting individuals from the age of 0 to 45 who are from
upper class of society (Wilson, McCabe and Smith, 2018).
 Positioning: It is very important component of STP analysis in which companies are
required to focus. With the help of it, positive image of business could be established in
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the mind of clients. For this purpose, Zara is selling high quality products according to
latest trends to the customers (Wilson, 2017).
Budget: The budget which is required to carry out all the marketing related activities is
as follows:
Particulars
Amount
(Pounds'000,
000)
VARIABLE EXPENSES
Branding 200
Décor 500
Equipment 1000
Furniture 500
Insurance 2000
Launch Advertising 800
Legal Fees 500
Licenses / Permits 1000
Security 1000
7500
FIXED EXPENSES
Account Fees 100
Accounting Fees 50
Advertising - Print 50
Advertising - Radio, TV, Podcasts 40
Advertising - Web 20
Equipment - Further Purchases 100
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Insurance 40
Lease / Rent 150
Legal Fees 150
TOTAL 700
Monitoring and controlling: Marketers of Zara have decided that the performance of
marketing plan will be monitored by regularly checking the progress of the work of employees.
If any negative situation such as failure takes place in future then it will be dealt by taking
appropriate actions (Zackariasson and Dymek, 2016).
CONCLUSION
From the above project report it has been concluded that marketing is very important for
all the organisations because with the help of it number of customers, sales and profits could be
increased. There are seven different elements of marketing mix that are required to be focused by
all the organisations to attain competitive advantage in the market. These are product, price,
place, promotion, people, process and physical evidence. In order to attract large number of
customers business entities can design strategic marketing plan for future.
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REFERENCES
Books and Journals:
BAČÍK, R., ŠTEFKO, R. and GBUROVÁ, J., 2014. Marketing pricing strategy as part of
competitive advantage retailers. Editorial Board. 9(4). p.602.
Boschetti, A. and Massaron, L., 2015. Python data science essentials. Packt Publishing Ltd.
Bryson, J. R. and Daniels, P. W. eds., 2015. Handbook of service business: Management,
marketing, innovation and internationalisation. Edward Elgar Publishing.
Cluley, R., 2017. Essentials of advertising. Kogan Page Publishers.
Hanlon, A., 2019. Digital Marketing: Strategic Planning & Integration. SAGE Publications
Limited.
Hiam, A., 2014. Marketing for dummies. John Wiley & Sons.
Karnaukhova, N. A. and Polyanskaya, E. V., 2016. Communication and reputation as essentials
for the positioning of an organization. AI & society. 31(3). pp.371-379.
Kuntonbutr, S., 2019. Book Review: Essentials of Marketing. RMUTT Global Business
Accounting and Finance Review. 2(1).
Pike, S., 2015. Destination marketing: essentials. Routledge.
Stephens, D. L., 2016. Essentials of Consumer Behavior. Taylor & Francis.
Wilson, E. J., McCabe, C. and Smith, R. S., 2018. Curriculum innovation for marketing
analytics. Marketing Education Review. 28(1). pp.52-66.
Wilson, R. M., 2017. Marketing Controllership. Routledge.
Zackariasson, P. and Dymek, M., 2016. Video game marketing: a student textbook. Taylor &
Francis.
Online
SWOT analysis of Zara. 2020. [Online]. Available through:
<https://www.marketing91.com/swot-analysis-zara/>
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