Research question 3 1.1 Research aim 3 1.2 research questions 3 1.2 research objectives 3 1.4 rationale for research3 2.0 BACKGROUND4 2.1 Industry background4 2.2 Marketing mix 6 3.2 Marketing mix H&M

ZARA AND H&M
COMPETITIVE STRATEGY

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
Has Zara remained competitive within the fashion industry? Compared to H&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
competitive position in the marketplace of fashion industry. This research is help in

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,

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 has extremely 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