BUS106 Marketing Principles: Zara's 4P's Analysis - Slide Deck

This marketing analysis examines Zara's product strategy, focusing on clothing as a consumer necessity with original designs and a strong brand. It applies the product life cycle model, noting Zara jeans' maturity stage. The analysis covers Zara's high-price strategy for high profit margins, driven by real fabric use, and suggests targeting diverse income segments. Distribution involves small stores and 2000 stores in 77 countries. Promotion includes retail via Zara.com, social media, and both traditional and modern advertising techniques. The analysis references academic sources to support its findings.

Marketing

Analysis of Product
Zara developed the clothing products which is necessary for the
consumer.
(Source: EPM, 2018).
The clothing product offered by the company are necessity of the
consumer and it completely satisfies the needs and demands of
consumer.
Design of the product are original and actual and this caters and
aides the ideas and of the consumer well.
Zara has high brand value and name and therefore the sale of the
products are in demand and increasing in the monetary terms as
well.

Product life cycle model
 It has been seen that the Zara jeans are
at the level of maturity just because of
their experience and quality of material.

Analysis of Price
The company uses the high price strategy in order to
earn the high profit margin. The utilisation of the
real fabric in the manufacturing of the products
results in the high price and therefore the customers
are also willing to buy the products at the hiked
prices (Woodruff, 2018).
It is recommended to the company that it shall focus
on targeting the different segments of income to
build the strong presence in all the categories of the
market.

Analysis of Place
 The company opened the small stores in
the different areas in order to distribute
the product to the large number of
consumers.
 At present the company has 2000 stores
in 77 countries which reflects that the
company has high distribution intensity.
The company offer the services in the
wider areas in order to provide the
services to the consumers (Zara, 2018).

Analysis of Promotion
The company also apply the policy of the retail on
their products through main websites namely
Zara.com. The company uses the social media and
online channels to communicate the availability of the
products with the consumers.
The company uses both the techniques of advertising
such as traditional as well as modern. The traditional
advertisement is advertising through television, radio,
posters and modern advertisement involves social
media(Datta, Ailawadi, and van Heerde, 2017) .

References
 Datta, H., Ailawadi, K.L. and van Heerde, H.J. (2017) How
well does consumer-based brand equity align with sales-
based brand equity and marketing-mix response?.
Journal of Marketing, 81(3), pp.1-20.
 Zara. (2018). Zara SuccessStory. [online] Available from:
https://successstory.com/companies/zara [Accessed
21/1/19].
 EPM. (2018). Three Product Levels (Kotler). [online]
Available from:
https://expertprogrammanagement.com/2018/04/three-
product-levels-kotler/ [Accessed 21/1/19].
 Woodruff, J. (2018). What is Premium Pricing Strategy?.
[online] Available from:
https://smallbusiness.chron.com/premium-pricing-
strategy-1107.html [Accessed 21/1/19].