Marketing Strategy Effectiveness and Customer Response
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The assignment discusses the effectiveness of marketing strategies adopted by firms, highlighting the importance of measuring success through customer responses. It also emphasizes the significance of an effective marketing plan in positively influencing people to purchase products or services.
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ZARA AND H&M COMPETITIVE STRATEGY
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 1.1 research questions.............................................................................................................3 1.2 research aim......................................................................................................................3 1.3 research objectives...........................................................................................................3 1.4 rationale for research........................................................................................................3 2.0 BACKGROUND.......................................................................................................................4 2.1 Industry background.........................................................................................................4 2.2 Background of Zara..........................................................................................................4 2.3 Background of H&M........................................................................................................5 Framework of business....................................................................................................................6 3.1 Marketing mix..................................................................................................................6 3.2 Marketing mix of Zara......................................................................................................6 3.3 Marketing mix H&M........................................................................................................7 Methods............................................................................................................................................7 4.1 Methods of primary data..................................................................................................7 4.2 Methods of secondary data...............................................................................................8 4.3 Sampling techniques.........................................................................................................8 4.4 Ethical issues....................................................................................................................9 4.5 Research limitations.........................................................................................................9 5. FINDING OF PRIMARY DATA................................................................................................9 6. DISCUSSION...........................................................................................................................13 CONCLUSION.............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Competitive strategy can be defined as the long term plan of a particular company. It helps to gain competitive advantage from their competitors in the every industry. The aim of this topic creat the effective and valuable position in industry. It is essentials for company and management to gain competitive advantage in edge. The present study is based on the “Zara and H&M competitive strategy”. Proposal is covers by the research question, aims, objectives and rationale research. This report will investigate the effectiveness of marketing strategy of Zara and H&M companies. This research will show Zara is the competitive brand in the high street market. Its deals with their customers and satisfied to them. 1.1 research questions HasZararemainedcompetitivewithinthefashionindustry?ComparedtoH&M marketing strategy, how does Zara's marketing strategy affect its competitive position in the fashion industry? 1.2 research aim The aim of this research is to determine the marketing strategy and its influences on competitive position of company in its industry. Report is presented by the H&M and Zara. 1.3 research objectives Objectives of this research is to identify the concept of marketing strategies, to examine the benefits of marketing strategies in providing the competitive benefits to company and to determine the impact of the marketing strategies on competitive position of Zara and H&M. Research question of this report is why peoples are chosen Zara for its set of benefits as perfect and fresh products to a big fashion store with almost all expert and what makes peoples thinking of Zara? What makes blighting and be in front of their competitors? What make peoples feel rewarded when buying from the Zara? 1.4 rationale for research Rationale of research is based on understanding the impact of marketing strategy and it is influence on the competitive position of company in the industry of fashion. There is comparison between the Zara and H&M both are well known fashion industry and also analysis their competitivepositioninthemarketplaceoffashionindustry.Thisresearchishelpin
understanding and maximise the skills and well as knowledge of an investigator. There is also includes the marketing mix of both Zara and H&M company. This will help to analysis the market like place, product, price, process, promotion, physical evidence and peoples. By this management gets the idea of their current position in fashion industry. 2.0 BACKGROUND 2.1 Industry background The fashion industry is created for design, market, manufacturing and sell the clothing, footwear and accessories. Fashion marketing is process of managing the merchandise from of initial selection of design to be created for attract customers towards according to the new and current trend of marketing. The goal of this is to maximise a company sales, productivity and profitability. Successful fashion industry is depended on the understanding the needs and desire of customers and responding on the appropriate products (Quinlan and et.al., 2019.). In this marketer are use the sales of product by data collection, attention to media coverage, focus groups. The other means is that the customer are provided the feedbacks and review to their designer and designer follows for manufacturers clothes types, quality and quantity of goods and services of products. In that marketer are responsible for identifying and defining a fashion clothes producers target customers. For give responding to the preferences of those customers. The fashion industry is included the design, manufacturing, retailing, advertising, marketing and promoting their business from the current and expensive couture and clothing every day (Lovelock and Patterson, 2015). This industry is produces the products of modern age and according to the culture and current trends.This help to attract customers towards it and help to earn most of the profits from customers. Now day's generation are attracted with the fashion industry. The fashion industry is apparel with a creative process that involve vision of fashion designers. This operates at both the wholesale and retails levels companies but that are not only promote their business by retailers but also to the media and directly to customers. 2.2 Background of Zara Zara is the Spanish clothing company and accessories retailer which is founded in the 1975 by Amancio Ortega and Rosalia Mera. Amancio Ortega is opened first Zara store in the central street in Galicia. It s vertically integrated retailers, controlling the supply chain, design,
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manufacturing and distribution of all the products worldwide. Currently Zara has the 2000 stores at worldwide. Their annual revenue of over $9 billion dollars 2009.Zara has aim is to contribute the sustainable development of then society and that of the environment with which interact. Their manager is save the energy and it is Eco - friendly environment in their store and factory as well. They also take care of the less wastage and continue recycling. Their employees and team members also take care of the environment commitment of Zara and perform their duties accordingly. In their manufacturing process Zara has use the ecological and organic material of clothes. That has the products like men's and women's clothing as well children’s (Kotler and et.al., 2015). Strength of Zara such as it has more than 2000 stores all over world and also it has well established brand name worldwide. Supply chain management of Zara hasextremely low cost and also their process of operations, manufacturing are vertically integrated. Company offers trendy clothes with well-designed and also it ensures fast delivery of products and services. Apart from the clothes Zara also offers handbags etc. that also has the weakness such as it has the limited marketing and advertising as compared to the other brands and it has the high competition for Zara like limited market share and high brand switching. It has the opportunities to enter into global markets that means Zara can explores its business across the world. They are also had opportunity of online marketing and get engaged into e-commerce’s business. It has threats from high competitors and also with the fashion merchandise. Also, have threat from the large amount of customers those who can switch their shopping brand. Opportunities are help to increase their strength. This help to increase the market share of Zara fashion. 2.3 Background of H&M H&M is a Swedish global retail brand with a finger constantly on the pulse of fashion beating heart in order to sources out of the trends and current style of business. It is the brand which deals in the women, men and children clothes. Company targets all age groups consumers. They are offered the high quality of product and accessories, firm has wide range of products for women, men, teenager and children.That means making sustainable for keep making great fashion and design are available for many peoples. There vision is to lead the changes towards a circular fashion industry while being a fair and equal company (Armstrong and et.al., 2015.). There are changes making programme is at the heart of our sustainability work. It includes the goals, standard and methods are help work towards our vision.
H&M is also competed by the using their strength for overcome the weakness and threats are help for making the effective and valuable goals. The new strategy is economic revolution, in that they are changes towards renewable and circular fashion. It is having the strong digital presences in the market it is the strength of H&M company. It continuously opens branches in new market. This is beats the number of high street stores the brand main in UK. That are strength of this company and also have weakness. They are put the lots of capital and maintenance fee for the all different products and clothes as well. It is weakness for buying the large volume which are lead the overstocking and later. There are some opportunities which are helpful to increase the strength. Technological advancement such as increasing awareness towards Online shopping is helpful to gain attention of buyers. That have opportunity from the position to tap the niche organic apparel market. Opportunities are helps to manager for improving their brand image at market place. Threat from the unemployment is also targeted segment to discretionary spending. H&M is competed by using their strength and opp for overcome the threats and weakness. Framework of business 3.1 Marketing mix The marketing mix is the foundation model. It is defined as the set of marketing tools that firm uses to pursue its marketing objective and goals in the target market. This help to set the action which are related to the marketing and as well as effectiveness of growth of marketing. Marketing mix refer the 4P's and 7P's of marketing are help to take decisions for managing target market. That marketing P's are product, place, price, promotion, those are the main and basic P's of marketing (Baker,2016). There are addition of the 3 more P's of marketing such as the physical evidence, process and peoples, those are more added in the marketing mix. 3.2 Marketing mix of Zara 4 P's of marketing mix are as follows: Product Zara has the one leading fashion company in the world. That are offers product for women, men and children. It offers the jeans, trousers, tops, skirts, shoes and bags. That are the products which are offers by the company in their target market.Zara is believes in the sustainable development and is committed to reduce the production of wastage. They are use the
ecological fabrics like organic cotton in the production of some of their items. Manager can use the recycling its hangers and security tags. Price It has products are high on the fashion and low prices of products. They are provides the latest fashion at much lower prices in their international stores as compared to other competing international brand. They are follows the low pricing strategy.Manager of Zara is sets the market based pricing strategy which is sets the target prices consumer is wiling top pay. Their budget of production according to the target prices. The brand is also has the various schemes for the sales promotions. Place It has the various stores in worldwide and also sells through the online stores. They are covers by marketing mix place and distribution strategy of the brand. It is supply chain provide the competitive advantage (English, Zeng and Ma, 2015.).Zara is uses unique business model to bring new products and fashion to the market in the shortest time possible. They are lunch the unique and effective product in the market helps them give exclusivity. Promotion That have promotion strategy to promote their product and services at market place. That are advertisement by social media, Facebook, webpages and Instagram. That are help to promote products at market place.Its advertisement are not visible on the television. Its unique selling proposition is its short processing time, large verity of styles and affordable pricing. Its social media reach is quite exceptional. 3.3 Marketing mix H&M Marketing mix of H&M group are as follows: Product H&M is the clothing retails company and its offers the fast fashion clothing for men, women and children. Price They are offers high quality clothes at premium price and its products are price relatively lower as a part of it marketing mix pricing strategy. Place
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This sells its products through its exclusive stores located in major cities across the globe. They are sells products at the stores and online stores and also at from their customers are select the products (Bull and et.al., 2016.). Promotion Theyhaveusesomepromotionalstrategiesforpromotetheirbusinessinthe marketplaces such as TV animadverts, you tube, digital marketing and so on. Methods 4.1 Methods of primary data The primary data is collected by a researcher from the marketplace. There are some methods which are used in primary data collection such as surveys, interview and experiment. It is collected by the research project in mind and directly from the primary data. Door to door survey is also one way to collect primary data. It is best and effective ways of collecting data form the market also know about needs and preferences of customers (Smith, 2015). In this report data collection by the questionnaire methods which is method of primary data. This method's id easy and effective way of collecting the data by knowing about customers reviews. This consists a numbers of questions printed or typed in a definite order on a form or set of form. 10 questions are printed on the paper and send to 50 peoples on mail. Peoples are give their answer according their opinion. By this management is get what customers are thought about the brand Zara and H&M. 4.2 Methods of secondary data Secondary data is data gathered from the studies, survey, experiments and also literature review. That have run by the other peoples for other research. There are some sources which are help to collect secondary data such as information collected by the government department, organisational records and data that are originally collected for other research purpose. It is help to collect the secondary data from marketplace for their brand (Stead and Hastings,2018.). In this report secondary data is collected by the literature review. It is a scholarly paper which includes the current knowledge and information including the substantive findings as well as theoretical and methodological contributions to a particulate topic. It is the descriptive, analytic summary of the existing material relating to the particular topic or area of study. It is the systematic examination of prior scholarly worksc (Johnston, 2017).
4.3 Sampling techniques Sampling is helps in the lots in research and finding the most important factor which is determined the accuracy and correct form of research and survey result. It is the best way of collection of data randomly but if in case of wrong sample is directly affected and reflected to the final result of work. There are lots of techniques which are used and helped to gather samples according to need and situation. Techniques of sampling such as population and sample sampling techniques, probability and non- probability method etc. those are the sample technique methods. That are help to collect the sample from marketplace by randomly and probably. 50 People has been selected in the present study using the random sampling technique (Walliman, 2017). The population chosen for present investigation is people belonging to the age of 18 to 70 years. 4.4 Ethical issues At the time of servery, researcher faced ethical issues and this affect the research program and its result. The major ethical issues in conducting the research are informed consent, beneficence, respect for anonymity and confidently and respect of privacy. Also, ethical issues are related to the customers are not support to researcher and give answer in the proper and effective manner. This creates problems and issues for the researcher. 4.5 Research limitations Limitation of research such as the short time duration of doing this study. There are having the lack of money and funds. By this research is faced limited. The random sample collectingiscreatesthebigerrorforsamplecollections.Thesmallsamplesizeisnot representative at all the populations. There are also has the limitation at the time of research collections. Shortage and limited time of research. Limitations are created the problem for good result of research. It is affected to research and its result. In that customers are not support in the research and not give proper answers for the questions (Fisher, Pan and Wood, 2017,). In case of survey questionnaire methods, it is the evidence of participants customer are notgivethehonestanswersofquestions.Thecloseandendedquestionsusedinthe questionnaire restricted the subject population to freely express their thought. That are some limitation which are faced at the time of survey.
5. FINDING OF PRIMARY DATA Finding are help to gets the result of work and at the time of managing effectively. This help to manage the effectiveness of work. By this researcher are get result and evaluate the performance of work. In the survey, researcher are sets the 10 questions to understand the what motivate customers to procure sustainable fashion products. Target peoples are interested in the high street fashion and designers brand. At that they are select customers within 18-70 years old peoples. Theme : Age How old are you? Below 205 Below 3010 45 years35 Below 20Below 3045 years 0 5 10 15 20 25 30 35 Series1
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Interpretation: It has been found that the majority of the people who has answered the research questions belongs to the age of 45 years. Out of 50, there are only 10 participants those who belong to the age of below 30 years. Theme: Gender What is your gender? Male10 Female40 Interpretations: It has been found from the above information that most off the answer are provided by the women as compared to men. MaleFemale 0 5 10 15 20 25 30 35 40 45 Series1
About how often do you shop for clothes ? Once in Month15 Once in a week5 two or three times in a month30 Interpretation:It has been found from the data collected that approx. thirty three percent of people prefer to make purchase of clothes two or three times in a months. In addition to this, approx. 22 percent of people buy clothes goods once in month. Theme: often shop for clothes. Theme : often you make purchase of below mention clothes Once in MonthOnce in a weektwo or three times in a month 0 5 10 15 20 25 30 Series1
How often you make purchase of below mention clothes ? Costly and luxury items5 Pocket friendly clothes15 Low cost30 Interpretation: It has been found from the information present in the table that out of 50, there are 30 respondents those who are preferred to buy cost of low costs. Theme:Favorite brand Which is your favourite brand? ZARA13 H&M7 Costly and luxury itemsPocket friendly clothesLow cost 0 5 10 15 20 25 30 Series1
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Any other32 Interpretation:It has been found from the survey that approx. forty percent people prefer to make purchases of clothes from other brand. The other thing which has been found from the information gathered through questionnaire is thatonly forty one percent people prefer to purchase clothes from Zara and fifteen percent people selected to buy clothes of H&M brand. Theme : like to make purchase of clothes during the time of sales Would you liker to make purchase of clothes during the time of sales ? ZARAH&MAny other 0 5 10 15 20 25 30 35 Series1
Yes30 No5 Not at all15 Interpretation: From the above, it has been found that there are 30 people out of 50, those who prefer to make purchase of clothes during the time of sales. They have stated that buying during the time of sale enables them in saving costs. Theme : While making purchase of clothes , do you prefer While making purchase of clothes , do you prefer Same shop25 YesNoNot at all 0 5 10 15 20 25 30 Series1
Different shop10 Go to shop offering sales.15 Interpretation :The other fact which has been found during the investigation is that most of the people prefer to buy products from same shop. Theme:factors you look for while making purchase of clothes of specific brand What factors you look for while making purchase of clothes of specific brand ? Same shopDifferent shopGo to shop offering sales. 0 5 10 15 20 25 Series1
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Quality30 Price15 Environment of the store5 Interpretation :It has also been found from the data collected that it is the quality factor which is considered by customers while making the purchase of clothes. Theme:prefer to access the information about brand How you prefer to access the information about brand ? QualityPriceEnvironment of the store 0 5 10 15 20 25 30
Both16 Companies website20 Social media.14 Interpretation:The other factor which has been discovered during the time of investigation is that most of the people now days are used to visit companies website for accessing the information related to products or services. Theme: prefer to buy clothes How do you prefer to buy clothes ? BothCompanies websiteSocial media. 0 2 4 6 8 10 12 14 16 18 20 Series1
Online25 Offline12 Both13 Interpretation:it has been found that most of the customers prefer to buy products or services online, as they get ease in making purchase. 6. DISCUSSION Theresearchconductedhasbeenhelpfulinanalyzingtheeffectivenessofthe promotional strategy adopted by Zara for positively influencing people to buy goods or services. Market research has also assisted in identifying the current position of Zara in the market. By executing the research, it has analyzed that due to time limitation detailed information and in-depth research could not be conducted.In addition to this, the use of random sampling technique can increase the chances of sampling error. In context of questionnaire method, participant might not give an honest answer that could affect adverse effect on the outcome of OnlineOfflineBoth 0 5 10 15 20 25 Series1
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research. In addition to this, the size of the sample is too small, as such small sample size could not represent complete population. The other gap is, the closes ended questions use for collecting the primary information, has restricted the respondents from expressing their thoughts. CONCLUSION It has been concluded from the data collected that has developed an effective marketing strategy for promoting brand.The other fact which has been found from the study that Zara remains a successful competitor in the fashion industry, whilst facing large challenges from an increasing number of competitors. It has been concluded from the study that an effectiveness of the marketing strategy adopted by firm can be measured in terms of customers response about the products or services offered by organization. The other fact which has been concluded from the assignment is that an effective marketing plan is very much important in order to positively influencing people to buy goods or services.
REFERENCES Books and journals Armstrong and et.al., 2015. Marketing: an introduction. Baker, M. J. and Saren, M. eds., 2016.Marketing theory: a student text. Sage. Baker, M. J., 2016. What is marketing?. InThe Marketing Book(pp. 25-42). Routledge. Bull and et.al., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework.Ecosystem services.17.pp.99-111. English, A. S., Zeng, Z. J. and Ma, J. H., 2015. The stress of studying in China: primary and secondary coping interaction effects.SpringerPlus.4(1). p.755. Fisher, C., Pan, M. and Wood, E., 2017, April. Observability of global rivers with future SWOT observations. InEGU General Assembly Conference Abstracts(Vol. 19, p. 10066). Johnston, M. P., 2017. Secondary data analysis: A method of which the time has come. Qualitative and quantitative methods in libraries.3(3). pp.619-626. Kotler and et.al., 2015.Marketing. Pearson Higher Education AU. Lovelock, C. and Patterson, P., 2015.Services marketing. Pearson Australia. Quinlan and et.al., 2019.Business research methods. South Western Cengage. Smith, J. A. ed., 2015.Qualitative psychology: A practical guide to research methods. Sage. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Walliman, N., 2017.Research methods: The basics. Routledge.
APENDIX How old are you? Below 20 Below 30 45 years What is your gender? Male Female About how often do you shop for clothes ? Once in Month Once in a week two or three times in a month Once in a year. How often you make purchase of below mention clothes ? Costly and luxury items Pocket friendly clothes Low cost Which is your favourite brand? ZARA H&M Any other Would you liker to make purchase of clothes during the time of sales ? Yes No Not at all While making purchase of clothes , do you prefer Same shop Different shop Go to shop offering sales.
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What factors you look for while making purchase of clothes of specific brand ? Quality Price Environment of the store How you prefer to access the information about brand ? Both Companies website Social media. How do you prefer to buy clothes ? Online Offline Both