Competitive Analysis: Zara and H&M Marketing Strategies Comparison

This report presents a comparative analysis of the competitive strategies employed by Zara and H&M within the fashion industry. It begins with an introduction outlining research questions, aims, objectives, and the rationale for the study, followed by a background section providing industry context and company profiles. The report then delves into the marketing mix of both companies, analyzing their product offerings, pricing strategies, distribution channels, and promotional activities. The methodology includes primary and secondary data collection methods, sampling techniques, and ethical considerations. Findings from primary data are presented, leading to a discussion that compares and contrasts the approaches of Zara and H&M. The conclusion summarizes key insights and offers a final assessment of their competitive positions. References support the research, providing a comprehensive overview of the companies' strategies in the fashion market.

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

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

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
They have use some promotional strategies for promote their business in the
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
collecting is creates the big error for sample collections. The small sample size is not
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
not give the honest answers of questions. The close and ended questions used in the
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 20 5
 Below 30 10
 45 years 35
Below 20 Below 30 45 years
0
5
10
15
20
25
30
35
Series1

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?
 Male 10
 Female 40
Interpretations : It has been found from the above information that most off the answer are
provided by the women as compared to men.
Male Female
0
5
10
15
20
25
30
35
40
45
Series1

About how often do you shop for clothes ?
 Once in Month 15
 Once in a week 5
 two or three times in a month 30
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 Month Once in a week two or three times in a month
0
5
10
15
20
25
30
Series1