Zara's Business Strategy Analysis

This assignment analyzes Zara's business strategy, focusing on its marketing mix elements (product, price, place, promotion) and future strategic direction. It also examines the external factors influencing Zara's operations, including economic conditions, social trends, technology, legal regulations, environmental impact, and people. The analysis highlights how Zara leverages these factors to achieve its objectives in the competitive fashion market.

Table of Contents
INTRODUCTION...........................................................................................................................1
P.1 Description on the role and responsibilities of marketing function of ZARA.................1
P.2 Explanation on the roles and responsibilities of marketing relate to the organisation.....4
P.3 Marketing mix element of ZARA and their comparison with the other organisation.....6
P.4 Evaluation on marketing plan for innroducing new product of ZARA...........................9

INTRODUCTION
The term marketing is very essential in regards sustain the business for the longer period.
It is considered as backbone to trade activity. It works in the manner of exchange relation. The
selling and marketing are two different terms so their functions are also differed from one
another. The role of marketing work as promoting the product in the market and so customer can
have an idea about such commodities. Thereafter, the selling activity get started. The exchange
of goods can be done on the basis of activities like innovation, promotion, communication etc. In
this assignment, it has been addressed to understand the marketing principles of a retail store
ZARA, based on fashion accessories and clothing item. It is one of the large organisations in
UK. It has various branches in the world. Day by day it is becoming popular due to its quick
services to the customer. They satisfy the need of customers with their quality of products.
P.1 Description on the role and responsibilities of marketing function of ZARA.
Marketing is an important function that plays key role in order to identify the potentially
successful products for the market. It helps an organisation to promote its product by
differentiating it from the similar or alternatives products available in the marketplace. It is a
kind of communication procedure that helps a firm or an organisation to provide information
about the products and services among the customers. It consists of a number of procedures that
have relationship with the customer needs and motives. It also helps in branding of the
organisations’ product, retention of the customers and survival of the organisation in the
competitive market. An efficient marketing provides customer satisfaction and also helps in the
development of the strategies. It is a vital business function that is essential in all industries
whether an organisation operates for- profit or as non-for – profit organisation. Marketing
functions consist of a number of roles that helps organisation to improve its sales and develop its
brand image. These key roles are mentioned below:
A) Market Research: A study or analysis of the market is important function in relation to the
marketing function. It is to done by the organisation to understand the market requirement or the
preferences of the customer. In this a complete analysis or a survey of market trends should be
done by the researchers.
B) Product Development and innovation: As per analysis of the market, it is the role of the
marketing to develop the product according to the tastes and preferences of the customers. It
should also apply some innovations or changes to the existing product
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D) Development of marketing strategies: This is the key important role of the marketing
function to develop the strategies for the marketing ofstrategies of the product and services to the
customers in the market place. Many Strategies are being developed after the analysis of the
market
G) Achievement of the desired results: The another key role of the marketing is to achieve the
results which was targeted by the organisation. This can be done after the analysis of the sales
and getting information about the market situation.Application of the customer centric
approach: It is the responsibilities of the marketing function to have a strong relationship with
the customers so that it can be understood that what the customers demand from the business and
thus aims to meet those demands.
Coping up with the competitive environment: The marketing function is also responsible for
researching the completion or analysing the competitor’s strategies and keeping pace with
them to know what they are doing, which products they are launching, what are the
weaknesses of the competitors and how to avoid making the same mistakes as the
competitors.
Branding: A brand is the identity of the company. It is the key main responsibility of the
marketing function to develop and promote the brand through the images, ideas and promise
of benefits to the consumers.
Proper research about the product market situation: The marketing functions are responsible
for the proper analysis or research about the product market situations such as what
alternative products are available in the market, what challenges are being faced by the
product, what are the contents used by the competitors.
Budgeting- It is the responsibilities under the marketing function to allocate the budget for the
application of the marketing activities. And making proper distribution of the budget
according to the marketing activities.
Being aware of the return on investment: The marketing function has the key responsibility to
analyse the concept of the return on the investment which helps in achievement of the
outcome and making the proper strategies that gives the highest exposure for the least
amount of money spent
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Proper use of marketing mix: It is also a responsibility under the marketing function to
properly utilize the marketing mix such as: Product, price, place promotion etc. these
marketing mix helps the organisation to achieve its results.
P.2 Explanation on the roles and responsibilities of marketing relate to the organisation.
Marketing function of ZARA play role as increasing the sales of revenues of the cited
firm. There are various roles and responsibilities of marketing function. It is important for the
ZARA sustainable in the market for the longer period. It helps in promoting the success and
growth of the organisation. In order to get the goodwill in the market they should have effective
function of marketing. The role and responsibility is also inclusive of the activities like proper
listening of customer needs, fulfilling their expectations, co-ordinating with them in order to
promote successful organisation. They should set impressive plan with the support of their co-
workers. This kind of strategy helps to grow the business at the faster rate. There are some major
roles and responsibilities to understand the need of marketing concept in the organisation such
are-
1. Exchange of commodities- The term exchanging means to give something to
have something it serves itself as essential element to the marketing. They play
primary role in relation to the product and service relate function. The ZARA has
the worldwide approach to the customer. It has become the most demanding
brand by delivering the heigh quality of product to the customer. They take large
participation in the promotional activities.
2. Attraction is key source- by pulling the wide range of customer an organisation
can make huge amount of sale revenue. With the help of promotional activities ,
the marketers are able to get attraction of the buyers. The marketing is very
essential in the terms of gathering customer to their commodities. This function is
the key element in satisfying the need of the consumer. In every context the
employees of ZARA have to take some advertisement activity on the basis of
which people can have idea about their upcoming trend products in the market.
So, it can be said that without efficiently performing the marketing function ,the
organisation cannot lead towards success in the market.
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3. Identifiable product- The product should have approachable in the market. It can
be possible if such product has strong image in the market. For creating their
brand image in the market they have to perform various initiative role in order to
promote such firm. By taking some activities relating to commodities the
producer can develop the brand image in the market in the eyes of the customer.
Effective brand image helps in sustaining the firm in the market for longer period
with the productivity and profitability in the organisation.
Explanation with regard to the functional function of marketing are follows-
The function of marketing is required to performed with the context of improvising the
profitability of the firm. The success of the fashion store ZARA directly and indirectly depends
on the role of marketing. Finance department- The term finance in the organisation is related to the functioning of
money management. The finance manager have to maintain the day to day transaction of
the firm. The major focus is to keep checking the day to day transactions of the
organisation. They play important role in managing the accounting records of the
company. It helps in checking the financial performance as well as checking out
discrepancies if any. It maintains its confidentiality. Production department- This is the department which regulates the activities like
converting the raw material into the finished goods. The activity relate to this department
is very essential for the firm’s growth and success. They have to focus on the quality
aspect of commodities they are using in making the particular products. They should
produce the goods which satisfy the needs of the consumer and take efforts in fulfilling
their expectation. Marketing department- the term marketing is to promote the goods in the market. It is
different from selling activity. The main object of this department is to distribute the
products or services in the market. The whole department of the organisation is largely
depending on the marketing activity. Without having marketing an organisation cannot
perform its function properly. The overall growth and success of the firm is largely
dependent on the activities of marketing department. Purchase department- The functioning of purchase department is to buy raw material in
order to convert them into finished goods. They should have raw substance into bulk
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quantity so the organisation can run its activity without any interruption. The whole
organisational activity are interrelated to the each other.
 Human resource department- They act as managing the whole department of the
organisation. Organisation. The main role is to assist the good employees of the firm so
that they can add prosperity in the business enterprise. They fill vacate job position on the
basis of recruitment and selection method. At times, they replace the existing employees'
behalf of new worker within the organisation. They provide good training to the
employees so they can work in effective and efficient manner in the organisation. Their
role as giving backbone to the firm activities.
P.3 Marketing mix element of ZARA and their comparison with the other organisation.
By seeing the present situation in the market, the firm should have taken efforts in terms
of managing the growth and success in the business enterprise. There are various rival business
enterprises in the organisation so they have to work in effective manner. With the help of right
direction in the system and systematic support of co-workers helps in gaining the strong brand
image of the business enterprise. To have effective success manager should use excellent tactics
or working style. The ZARA is promoting their product in the market so that more number of
people can know about their goods and services present in the market. For adding more
productivity and profitability to the firm there are 7 elements of marketing mix which is
inclusive of the 4ps. They help as maintaining the growth of the firm for the longer period. Such
elements are-
 Product
 Place
 Price
 Promotion
 Physical evidence
 People Process
Product- The term product means an item for consuming purpose. The main role is to identify
the type of need consumer is having related to the commodity available in the market. The firm
named ZARA is producing cloths and fashion accessories for the people around the world. They
are having the largest retail stores in the world. At present scenario, they are taking various
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incentive to promote success to the business enterprise. They should focus on the quality of
goods and service. By satisfying the expectation of customer they can bring maximum
contribution of revenue to the cited venture. They run their activities as per the latest trend so
they can gather attraction of large number of customer.
Place- The place means the location where the organisational activities is to set up. There are
two kinds of market for selling activity that is physical market and virtual market. In the physical
market consumer and retailers physically meets with each other. In virtual market, they are
distributing their product through internet. They offer online and offline kinds of services to the
customer. There stores are generally located in the metro cities. ZARA also has its own website
where customer can get each information relate to the product and services available in the
market. Customer can place their order from there too. They work as fastest delivery of orders to
the customer by assuring the excellent quality of products.
Promotion- The promotion plays crucial role in relation to the productivity and profitability.
This is the important element of marketing mix. They should adopt various method of promoting
their product in the market. Promotion is the kind of strategy to aware the end-users about the
commodities of their brand. It works as making brand popular in the market. These activities can
be done with two techniques such are-
1. Advertising- They advertise their product through the print media, television, radio etc.
They are effective way to so customer aware about their services.
2. World of mouth- The main source of attracting the buyer is to provide good quality of the
products. One satisfied customer brings 10 more customers to the store.
Physical evidence- ZARA is having various physical stores in whole world. It is largely
distributed in the all cited area. It’s all the store are situated in the famous market so customer
can get to know about the brand and make purchase of such products. It works as getting touch
with the customer directly and can briefly explain their services to them.
People- They are essential element in terms of the rendering services. The effective employee
works for developing the good brand image of the organisation. The firm ZARA is taking
various measures in order to try to maintain the good and healthy relation with the customer.
With the help of providing quality and luxury service to the buyers they can have their attention
towards the business enterprise for the longer period. They should offer service related to the
feedback, quick and easy delivery of the products with attractive offers. The firm named ZARA
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should also take measure in order to motivate the employees working with them by giving
effective policies, attractive packages so they contribute their maximum in making the effective
performance of the business enterprise.
Process- process refers to the activity that how all the functions related to department and
elements of market are getting into an action so they can be developed the for profitability. The
electronic method should be opted so that customer can have easy mode to access and submit
their queries related to the product and services. It attracts the large number of customer.
The marketing mix element of Burberry products-
Product- Burberry company is established as distributing good and service in the market. It a
fashion house focuses on the distributing trench coats, ready to wear outwear, fashion
accessories , fragrances, sunglasses and cosmetics. They maintain the standard of quality of the
product and services to the customer. They provide various facility to the customer so they can
get attracted towards the brand. They take various initiative in order to have strong brand image
of the firm.
Price- The price is the value which has to be paid in term of having service. The price factor is
very important in order to sustain the firm for the long period in the market. The price factor
usually depend on the demand and supply element in the market. The pricing strategy is the
important function which have to be performed by each business enterprise. ZARA is currently
following the method of market skimming strategy.
Place- The term place where the organisation is to set up in order to offering there services in the
market. The location should select by seeing the various factors such as demand, supply, area of
market etc. There are two kinds of services which can be offer in the market to the customer are
like online and offline method of service. The online function is becoming popular day by day as
they are helps in saving the time of people they can make their selection through this. The online
application helps in increasing the earning factor of the business enterprise.
Promotion- Each organisation has to undertake the activity of promotion so there product can get
unique identity in the market. The Burberry is also taking effective measure in terms of
promoting their brand product in the market. The promotion can be done on the basis of various
method such as advertising, sales, public relation, event etc.
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Physical evidence- they use high quality in the relation to product and their services. They give
ultimate focus on the need of customer. The Burberry always try to meet the expectation level of
the buyers. They use heigh technology in order to design the outlet interior of the firm.
People- in the organisation effective employee work as rendering effective services to the
customer. Good employee work in order to sustain the future growth of the business enterprise.
There should be regular checking of the work efficiency of the worker this should be analysed on
daily basis with the help of selling activity. The attractive rate of package always attract the
worker and they take initiative step in increasing the firm capability of selling products to the
variety of buyers.
Process- the term process means how the operations of the organisation get settled. The process
should be effectively place in order to bring maximum prosperity to the organisation. They
should have the online method of process so customer can get access to their products at any
time. The Burberry is taking efficient steps in setting the effective online service mode to cover
the wide range of customer.
P.4 Evaluation on marketing plan for innroducing new product of ZARA.
Executive summery
In order to make evaluation of the marking strategy of the ZARA they should analyse the
two kind of market environment that is external as well as internal. In this report it is required to
addressed the two kind of analysis which are PESTLE and SWOT. These two element are very
useful in Order to make evaluation in the business environment. In order to launch new product
they should focus the need of market on the basis ODF market segmentation, positioning,
targeting and pricing strategy.
Company overview
ZARA has the world largest retails store. It has its store in all over the country. This firm is
focuses on the delivering the high quality of products with the customer. They believe in
fulfilling the expectation of their customer. It wants to have worldwide approach so their firm
can get more productivity and profitability. ZARA mainly produce cloth and fashion accessories
to the buyers with high quality for satisfying their desire needs.
PESTLE Analysis
 The outside environment of business is very competitive and to know how to cope up
with it is essential. In order to sustain the growth of firm for longer period there is need to
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understand the elements of business environment. Such factor of business environment
are as follows- Political factor- these factor mainly include the law and legislation which
is mainly framed by the government authorities. Political factor- These factor mainly
include the law and legislation which is mainly framed by the government authorities
(Akbar, Omar and Wadood, 2017). Firm can get influenced with the higher taxation
policy.
 Economic factor- These factor can affect the overall growth of the firm. It also has it
main impact on the sales, distribution and product and services of the firm. This factor is
inclusive of the conditions like economic recession, pricing policy, inflation etc.
according to this factor company have to select the price as per the economic condition of
the country.
 Social and culture factor- It is inclusive of the factor like customer taste and preference,
culture, life style etc. This factors are rapidly changing as per the season requirement.
Customer always need changer as per the trend and fashion is running outside. It is
important to understand the trend of present market and firm should run their activities as
per the market need.
 Technological- In order to produce good in on fast manner than company should require
the products of modern technology. For manufacture the high quality of products
company require the effective technology as per the need of the market (Pappas, 2017).
At the time of rapidly changing in market elements business requires the Morden
equipment to run organisation successfully.
 Legal- legal factor include the laws, legislation and frame-working of the business
environment. Sometimes it impacts is as major threat to the company.
 Environment- The environment factors are as whether, climate, air, sunlight which
majorly affect the production of the firm. Company need to analyse the factor of product
according to the function of McDonald's.
 Strategy
 Marketing mix  Future strategy
 Product  They aim to deliver the high quality of
product to satisfying the need of
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customer.
 Price  Foe better pricing of product they
follow the method of pricing strategy
which can attract the customer and they
are ready to afford the products
available in the market.
 place  The location should be decided by
giving focus to all the elements (Iancu
and Maier, 2017). There are two types
of distribution channel are as online or
offline.
 Promotion  Promotional activities needs to be done.
For these approach there should be two
kinds of approach such as traditional
and modern approach.
 People  The employee work well if the salary
and incentive offers to them are on as
per their satisfying level.
 Physical evidence  The product is design as per the
physical evidence like company logo,
punch lines etc. such should identify
the products from another product in
the market (Kazmi, 2017).
 process  The process should be followed in well
manner so that firm can maintain it
productivity and profitability.

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 CONCLUSION
 From this report it has been concluded that ZARA gas the world largest retail
store which deals with the fashion products and accessories. It gives major focus on
supplying high quality of products to the customer. For fulfilling the buyer desire they
use top follow the set market strategy. This activity essential with regard to achieve the
organisation objectives.
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 REFERENCES
◦ Book & Journal
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