Marketing Strategy and Plan for Zara

This paper evaluates and analyzes the marketing strategies, policies and plans of Zara. It explains the marketing objectives, growth strategies, targeting and positioning strategies, and competitive advantages of Zara. The paper also discusses the marketing mix programme of Zara.

Running head: Marketing strategy and plan
Marketing strategy and plan

Marketing strategy and plan
Table of Contents
Introduction.................................................................................................................................................3
Marketing objectives...................................................................................................................................3
Growth strategies of Zara............................................................................................................................4
Generic strategies....................................................................................................................................4
Intensive growth strategies......................................................................................................................4
Targeting and positioning............................................................................................................................5
Targeting.................................................................................................................................................5
Positioning...............................................................................................................................................6
Selection of competitive advantage............................................................................................................7
Marketing mix programme..........................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................10
2

Marketing strategy and plan
Introduction
The main purpose of this task is to evaluate and analyze the marketing strategies, policies
and plans of Zara. Zara is well known brand in the world which delivers dynamic clothes,
accessories and bags to the customers. On the other hand, the paper explains the marketing
objectives of the firm which helps to firm stay in the marketplace. Additionally, here is the
discussion about the generic and intensive growth strategies which help to hit the competitors in
the world. Furthermore, it depicts that Zara uses targeting and positioning strategies to attract and
retain more clients in the marketplace. Along with this, it shows that how the firm gaining
competitive benefits by using different strategies in the workplace.
Zara is one of the biggest reputed companies in the world which was formed in 1975. The
company designs and manufactures fashionable and attractive products within the organization.
It is the biggest enterprise in UK’s fashion industry. The firm is not only generating highest
profit but also is most recognized by its potential customers in the marketplace. It is a Spanish
based company which provides innovative and stylish products to the customers globally. The
products of Zara include clothes, accessories and other garments. Effective and unique supply
chain management is used by Zara and it also uses effective management strategies within the
organization (Inditex, 2018).
Marketing objectives
Various objectives have been decided by Zara to acquire a good position in the
marketplace and to stand out against the competitors across the world. The main objective of
Zara is to increase and enhance the satisfaction and demand of the customers by rendering
unique and fashionable clothes and accessories to them (Chu,2016). Furthermore, the firm wants
to become a number one brand in the international market. It will help to beat and hit the
rivalries globally. Apart from this, the organization wants to produce and designs the products
after considering the choices, tastes and requirements of the customers. Additionally, Zara wants
to increase the profitability and market share in the competitive market (Martinroll, 2018).
3

Marketing strategy and plan
Growth strategies of Zara
Zara is leading brand in fast fashion industry across the world. The market is growing
quickly in terms of market size, nature, sales, revenue and global presence. Spain is the biggest
market of Zara followed by Japan, China, Italy and France (Mckeown, 2013). Zara uses generic
and intensive growth strategies to gain sustainable competitive advantages.
Generic strategies
The generic strategies are developed by Michael porter to generate more revenue and
destroy the competitors in the market (Hammoudeh, 2014). The generic strategies have been
stated below.
Cost leadership: The generic strategy which is initiated by Zara is called cost leadership. The
leaders of the company try to provide products and services at suitable price to gain competitive
benefits (Daniel, 2013).
Differentiation: This strategy is used by Zara to differentiate the prices of the products and
services from the competitor’s products. In this way, it will help to overcome the rivalries in the
global market.
Focus: The focus strategy is subdivided into two different strategies such as differentiation focus
and cost focus strategy. By using generic strategies, Zara has become most popular brand in the
world.
Intensive growth strategies
Along with generic strategies, Zara uses intensive growth strategies to build competitive
benefits and to grow in the market (McGrath, 2013). The intensive growth strategies have been
detailed below.
Market penetration: It is one of most important strategies to sell more and more products to the
existing customers. Also, it will help to grow revenue and sales in the market. Market penetration
helps the customers to select the fast fashion products globally. By using market penetration
strategy, the company is able to introduce new and stylish accessories and clothes in the market
(Mertens, 2015).
4

Marketing strategy and plan
Market development: Under this strategy, the company is entered in new geographic regions
and markets to attain profitability. The company is expanding and flourishing its business
operations and activities widely. Currently, Zara has approx 2200 stores in more than 93
countries. China, Italy, India and Japan are the biggest markets of the firm.
Product development: It is a key strategy which is used by Zara to explore its market in the
world. It is the strategy to develop and sell new and innovative products to new as well as
existing customers. To develop new products, the organization uses effective and dynamic
supply chain management.
In today’s era, competition is increasing day by day therefore, the company needs to
focus on its generic and intensive growth strategies to flourish its market and customer base
(Day, 2013).
Targeting and positioning
Targeting
Zara maintains a good and unique position and image in the target market. The target
market of Zara includes teenagers, upper class people, youngsters and upper class people. Zara
uses effective strategies to identify and measure the needs and choices of the target market.
Advertisement and promotional campaigns and programs are done by the company to attract
more and more customers (West, Ford and Ibrahim, 2015). By using effective promotional and
advertisement strategies, Zara has been able to make a good position in Indian market. While
analyzing and identifying the tastes and choices of people, the firm faces several hurdles and
challenges in the marketplace. Zara cannot attain success and growth without analyzing and
measuring the preferences, choices and wants of the customers. Along with this, the firm has
limited stores across the world due to which targeting strategies are used to introduce their
products in the global market. The target market plays a significant role to gain profits globally.
By using targeting strategies, Zara is able to know and analyze the purchasing power of
customers. Under this strategy, the firm provides various options to specific target group in the
global world (Hassan, 2014).
5

Marketing strategy and plan
Positioning
Zara uses positioning strategies to show its customers centric approach in order to satisfy
the customers. The company has been able to know market trends and customers requirements
by using this strategy. After differentiate the products, the firm positioned their products at low
cost. By using positioning strategy, Zara has become profit making clothing company across the
world. In today’s competitive world, brand positioning is an important factor. Apart from this,
the organization does not rely on the named designers to become popular in the world.
Therefore, the firm uses positioning strategy to increase the number of customers across the
world. By considering the price and quality of fashionable products, a unique positioning has
been created which is discussed below.
Zara positioning map
High Price
GAP
DAVID JONES
H.M Quality
Low High
Low
6
MANGO ZARA
Me&city

Marketing strategy and plan
In the above positioning map two variables have been taken such as quality and price
which shows the image of Zara in the competitive market. It shows that GAP, David Jones and
mango are the main competitors of the company (Leidiger, 2017).
Selection of competitive advantage
Zara provides various competitive advantages to the customers across the world that has been
detailed below.
 Effective and strong supply chain management is used by Zara to stand out against the
competitors in the marketplace.
 Apart from this, Zara monitors and evaluates the operations and core activities in order to
maximize profitability and returns of the firm. The company also monitors on the high
class customers to beat the competitors. In addition, the organization also follows
outsourcing methodology to hit the rivalries in the international market. This outsourcing
also helps to increase efficiency and effectiveness of the workers.
 Zara is trying to minimize overhead costs in order to attain maximum returns. Effective
operation team is appointed by the firm to monitor the operations and efficiency of the
workers.
 Just in time production process is used by the organization to conduct business activities
quickly.
 Zara have more than 2000 stores across the world as it also provides competitive benefits
to the firm as well as customers. Furthermore, the company is one of the biggest Spanish
retailers in the world (Pantano, 2014).
 The strong and effective online presence through their own website and other commerce
platform makes the firm a well known brand in the market. Additionally, Zara
differentiate its accessories and clothes prices from the rivalry products to produce stylish
and unique products. The organization also offers handbags to the customers in the global
world.
 Dynamic generic and intensive growth strategies are used by Zara to beat the competitors
and to make different position in the world.
 SWOT analysis, porter five forces analysis and Pestle analysis are done by the firm to
analyze and identify the strengths and weaknesses of the competitors at the marketplace.
7

Marketing strategy and plan
It will also help to know and measure the policies, strategies and plans of the rivalries
(Shiferaw, 2014).
 A sustainable human resource management is appointed by the company to make
effective strategies and policies for the welfare of the employees. It will help to retain the
workers as it also increases productivity and performance of the employees.
 Marketing mix programme is conducted by employees of Zara to monitor and evaluate
the prices of the competitors.
 In addition, Zara uses effective and unique packaging strategies to differentiate its
products from the competitors. Additionally proper advertisement and promotional
programs are held by the firm to explore and grow its business in the international
market. By using all these strategies, Zara has been able to gain competitive advantages
in the world (Pearlson, Saunders and Galletta, 2016).
Marketing mix programme
Marketing mix of Zara analyzes and evaluates the company which covers 7Ps (Product, price,
place, promotion, packaging, people and physical evidence) and it also explains the Zara marketing
strategy of Zara (Gamboa and Goncalves, 2014). The marketing mix of Zara has been detailed below.
Product: Zara is one of the biggest luxury fashion brand in the world. The firm renders products
for women, men and children. If offers tops, jeans, trousers, T-shirts, Bags, accessories, skirts
and shoes. All these are considered the product strategy in the marketing mix of Zara. It
introduces at least 10,000 new designs and fashionable products in the market. In addition, the
taste and preference of the target market which may influence the availability of product line.
The company has unique team to provide best and stylish best fashion trends. Under this
strategy, the product development strategies are used by the organization. Additionally, the
organization believes in sustainable development and it is ensured to minimize the waste of
production. The firm gives their clothes, bags, and accessories in biodegradable plastic bags and
paper. Zara use ecological fabric such as organic cotton in the production process. In this way,
the firm has been able to build a good image in the international market (Kotler, 2015).
Price: The firm uses this strategy to sell the products and services at appropriate prices. Zara
provides fashionable and unique clothes, accessories and bags at suitable prices in all its
international stores. The company follows low pricing strategies to increase the sell and
8

Marketing strategy and plan
maximize number of customers in the world. Additionally, the organization does not spend high
amount on advertisements and promotions. It maintains low cost structure as compared to its
rivalries in the global market. Zara sets the prices according to the level of customers across the
world. It uses various schemes to promote and enhance stylish and dynamic products globally.
Discounts and offers are also given to the customers twice in a year (De Mooij, 2013).
Place: Zara uses place strategy to decide a unique place for selling its products globally. The
company also sells its products through online. In this way, the firm uses distribution and place
strategy to grow its business activities in the market. Vertical integrated and business model is
used by Zara to run the business successfully. The business model helps to bring and introduce
new and innovative stylish products in short time. The commercial team maintains coordination
with customers in order to analyze their tastes, choices and requirements. For this purpose,
feedback and reviews are taken by the managers at the stores. Usually, the company produces
new products in small batches which help them give individuality.
Promotion: Zara spends money on its advertisement strategies to promote and encourage its
products in the competitive market. In today’s era, the firm is trying to open more new stores in
different countries. No company can grow in the market without using advertisement and
promotional strategies effectively and successfully. Promotion strategies also help to know the
quality, prices and benefits of the products and services (Papadopoulos and Heslop, 2014).
Packaging: Packaging is one of the effective strategies of Zara which is used by the company to
make product attractive and unique in the international market. The packaging refers to the way
through which a product and service appear outside market. The selling of the products depends
on its packaging. Packaging helps to put a good impression in the minds of the customers and
they get ready to purchase the product and service. Good and effective packaging helps to boost
and enhance the sale of the company (Baker, 2014).
People: People play a significant role to conduct the business activities and operations
successfully. The people are the backbone of the firm who explore and flourish the business
effectively. Zara cannot operate its business successfully without a unique team and employees.
The people should be friendly knowledgeable and approachable about the products and services
in the market. People provide several advantages to the company. Therefore, the firm should
9

Marketing strategy and plan
motivate the workers to perform their tasks and duties effectively and efficiently (Weinstein,
2013).
Physical evidence: The physical evidence and fact is the visual aspect of the product and service
rendered to the customers. The customers will purchase a product and service which they must
have physical evidence. The physical evidence is essential to analyze and identify the benefits of
the products and services.
In this way, marketing mix provides several benefits to the customers globally. It helps to
analyze market conditions, customer’s needs and strategies of the competitors. Marketing mix
also helps to build and develop good relationship with their clients in the market. By using
marketing mix, the company has been able to meet the needs and requirements of the customers
(Vu and Medina, 2014).
Conclusion
Zara is one of most popular leading accessories and fashion clothing brand in the world.
It belongs to the Inditex group. The company is known for its stylish and unique products. It is
an eco-friendly company which maintains reciprocal relationship with its clients. Zara is one of
the brands in the market which is known for its 100% toxix free clothes across the world. Along
with this, the firm is well known for producing latest and dynamic fashion trends in the
international market. Additionally, the organization gives fast response to the customers in order
to resolve their queries and issues. In this way, the firm has been able make a good financial
position in the marketplace. On the other hand, the firm uses effective targeting and positioning
strategies to attract more and more clients in the marketplace. Apart from this, Zara uses
dynamic intensive growth and generic strategies to grow its products in the market. The paper
also explains the marketing mix of Zara which could help to attain rivalry advantages in the
world.
10

Marketing strategy and plan
References
Baker, M.J., 2014. Marketing strategy and management (5th ed.,pp.293-441). Palgrave
Macmillan.
Chu, P., 2016. Excellence in European Apparel Supply Chains: Zara (Doctoral dissertation).
Daniel, J., 2013. Mega-universities and knowledge media. Routledge.
Day, G., 2013. Innovation prowess: Leadership strategies for accelerating growth. Wharton
Digital Press.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes (4th
ed., pp. 27-53). Sage Publications.
Gamboa, A.M. and Goncalves, H.M., 2014. Customer loyalty through social networks: Lessons
from Zara on Facebook. Business Horizons, 57(6), (pp.709-717).
Hammoudeh, R., 2014. Zara, from Spain to the big wide world. Company analysis, markets and
competition.
Hassan, A., 2014. Do brands targeting women use instamarketing differently: a content analysis.
In Marketing Management Association 2014 Annual Spring Conference Proceedings (pp. 62-
64).
Inditex.2018. About us [Online]. Available at https://www.inditex.com/about-us/our-brands/zara.
[Retrieved from 2nd April 2018]
Kotler, P., 2015. Framework for marketing management (4th ed.,pp. 23-48). Pearson Education
India.
Leidiger, N., 2017. Internationalization Strategy of Fashion Retailer ZARA.
Martinroll., 2018. The secret of Zara success: A culture of customer co-creation [Online].
Available at https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-
culture-of-customer-co-creation/. [Retrieved from 2nd April 2018].
11

Marketing strategy and plan
McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
Mckeown, M., 2013. The strategy book epub ebook: how to think and act strategically to deliver
outstanding results. Pearson UK.
Mertens, M., 2015. Development of a Draft Balanced Scorecard for Zara. GRIN Verlag.
Pantano, E., 2014. Innovation drivers in retail industry. International Journal of Information
Management, 34(3), (pp.344-350).
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and Using Information
Systems, Binder Ready Version: A Strategic Approach (6th edition). John Wiley & Sons.
Shiferaw, W., 2014. National Institute of Fashion Technology, Bangalore.(pp.1-9).
Vu, T. and Medina, S., 2014. Storytelling marketing and its impact on developing company
brand identity, case company Zara.
Weinstein, A., 2013. Handbook of market segmentation (1st edition). Strategic targeting for
business and technology firms. Routledge.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage
(3rd ed., pp.3-28). Oxford University Press, USA.
12