Marketing Essentials Report: ASOS PLC and Zara Comparison

This report delves into the marketing strategies of ASOS PLC, a British online fashion retailer, examining its functions, roles, and interrelation with other business units. The report analyzes the marketing mix, including product, price, place, promotion, people, physical evidence, and process, and compares ASOS PLC's approach to that of Zara, a Spanish fashion retailer. It explores the 7 P's of marketing and their application. The report also includes a detailed marketing plan for ASOS PLC, evaluating its strategic approach. The analysis covers marketing in a wider context, including the marketing environment and the importance of interdepartmental relationships within the organization. Finally, it provides a critical analysis of the marketing function's vital role in a business enterprise.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO1..................................................................................................................................................3
P1. Functions and roles of marketing to a wider context.......................................................3
M1. Marketing functions towards its environment................................................................4
P2. Interrelation of marketing with other functional units.....................................................4
M2. Importance of Interrelationship.......................................................................................5
D1. Critical Analysation.........................................................................................................5
LO2..................................................................................................................................................6
P3. 7 P's of Marketing ...........................................................................................................6
M3. Evaluation ......................................................................................................................8
LO3..................................................................................................................................................8
P4, M4. Detailed Evidence based marketing plan..................................................................8
D2. Strategic marketing plan by using 7P's..........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is a set of actions or businesses for promoting and selling products and
services that includes advertising and market research. It is the process to create and develop
relationships with customers in order to satisfy them. This report is based upon ASOS PLC,
which is a British based online fashion and cosmetic retailer. It deals with clothes, shoes,
accessories and beauty products for both men and women (This is ASOS, 2019). This report
covers the significant responsibilities and roles of marketing function in this organisation and in
context of marketing environment. It also includes the way in which these roles of marketing are
interrelated with other functions of a business entity. Further, it includes comparison between
ways in which different companies uses marketing mix for the purpose of achieving overall
business objectives. At the end, it covers development and evaluation of a detailed coherent
marketing plan for ASOS PLC to attain the business goals.
LO1
P1. Functions and roles of marketing to a wider context
Marketing is defined as a process of a business that is used to create and develop
relationships with customers. This function helps a business entity to grow in a positive manner
and making customers aware regarding existence of a product by indulging in various
promotional activities. The concept of marketing is determined as an philosophy that an
enterprise is required to analyse for understanding the customer needs and than take decisions in
accordance better than company's competitors. There are four concept of marketing, first is
production concept in which customers prefer those products that are easily affordable, second is
product concept in which customer prefer high quality products with attractive and innovative
features, third is selling concept in which company focuses upon enhancing sales and fourth is
marketing concept in which marketers and companies focus upon needs and desires of customers
and produce products in accordance (Al Badi, 2019). ASOS PLC uses functions of marketing
for promoting its products and services and to know what customers prefers and desires. The
different roles and responsibilities of marketing function can be defined as follows-
Marketing Strategy- The basic role towards which marketing function operates is to
develop an appropriate marketing strategy and planning for a business enterprise. This strategy is
basically developed to attract large number of customer and to enhance market share. The
managers of ASOS PLC recognise the requirements and needs of target audience with the help
of these strategies and provide goods and services in accordance. An effective marketing strategy
helps in bringing out a balance between marketing opportunities and business objectives.
Market Research- It is concerned as an organised effort for the purpose of gathering
required information about the target market and audience. This research includes particular
knowledge of price, product, market and customers for the purpose to communicate the best
quality goods and services of a company in market. ASOS PLC before launching a new product
or before entering into a new market do an appropriate marketing research to identify the
consumer behaviour.
Promotion- It refers to a marketing communication that is utilised for informing
customers about the benefits of a particular brand, product, or service. The major role and
responsibility of marketing function is that it helps in promoting products and services among
customers and make them aware regarding existence of that product or service (Amin, 2019).
ASOS PLC uses both online and offline promotional measures to promote its products in market.

Product Development- Marketing plays an vital role in developing a product by
introducing a brand new product or by making essential changes in an existing product . The
product is developed by analysing customers needs and preferences through market research.
ASOS PLC keep on developing its products according to customers demands.
M1. Marketing functions towards its environment
Marketing is a wide concept and its roles and responsibilities are not only limited within
an organisation but, it has certain roles and responsibilities in marketing environment also
(Andersen, Weisstein and Song, 2019). The roles of marketing function in context of marketing
environment are-
Marketing Information System- This helps in providing information and data about
different factors such as planning, product, implementation, and controlling the strategies of
marketing. For instance, it depicts the data about logistics on real time basis that helps
distribution network to work in an effective manner.
Monitoring Marketing Environment- Marketing plays an important role in monitoring
and developing the marketing environment. Such developments helps in providing constructive
response for developing a specific product or service of an organisation. These new
developments involve changing in marketing traits, social and economic forces, internal or
external market changes and legal and political changes.
Segmentation- Another key role which is played by marketing in context of marketing
environment is that it helps in segmenting the market in different segments such as geographical,
demographic, psycho graphic, behavioural, and so on. This gives the basis to enterprise to
produce and develop products in accordance.
P2. Interrelation of marketing with other functional units
Marketing play a very vital role in achievement of organisational goal through increasing
productivity and printability of organisation but, theses objectives are not achieved by marketing
alone. For meeting targets and goals of organisation on time, proper interrelation and
coordination between different departments and function of organisation is necessary. Marketing
act as a support system in wider organisational context as it acts a bridge between customers and
all other departments of organisation. ASOS plc is a British online fashion and cosmetic retailer
which is operating in a highly dynamic environment thus, it become essential for this
organisation to have proper collaboration between all function to deliver most suitable products
to its customer. Interrelation between marketing and other functional area in ASOS plc is
described below:
Marketing and HR Department- HR department is responsible for recruitment and
selection of talented and skilled employees and also provide timely rewards and gifts for
motivation of employee. Proper interrelation of HR department with marketing function ensures
availability of most talented and smart employees in organisation for formulation and execution
of marketing functions (Arendt and Allain, 2019). Timely incentives provided by HR are also
helpful in improving performance of marketing team which will yield better profit for
organisation. On the other hand, marketing plays an important role in promotion and creation of
brand image of organisation which provide a pool of talented individual for HR to select the best
candidate for organisation. In ASOS plc, proper coordination between HR department and
marketing has facilitated timely achievements of targets as marketing team of ASOS is very
talented and timely rewards are also provided to improve their efficiency and performance.

Marketing and finance department- Proper management of money and funds is the
responsibility of finance department which includes planning, organising, auditing and
controlling of organisation's finance. Finance department is also responsible for preparation of
timely budgets and for allocation and distribution of funds among different departments thus,
proper coordination between marketing and finance department ensure availability of adequate
funds for proper execution and implementation of marketing plans and strategies. For e.g.:
money needed for meeting advertisement and promotion expenses is provided by finance
department (Caliskan, 2019). In ASOS plc, interrelation between marketing and finance has
reduced the wasteful activities and expenses as finance department prepare timely budgets for
marketing and also have proper control and check over unnecessary and wasteful activities of
marketing function.
Marketing and production- Timely supply and manufacturing of a product is done by
production department. Marketing act as a link between customers and production department as
marketing department is responsible for analysis of market and also determine current
trends,taste and preference of customers. This information is required by production department
to produce or deliver a product which is most suitable for fulfilment of customers needs and
demands. Marketing department provides information regarding needs and preferences of
customers to production department so that products can be manufactured accordingly.
Marketing and Sales Department- Marketing and sales department are closely
interlinked with each other in an organisation. Sales department focuses upon selling products
and services of customers whereas, marketing department has wider role, it understands the
needs and requirements of customers and than inform the production department to produce
goods in accordance. Marketing department is responsible in developing a haelthy relationship
with customers, which is between goods and services sold by business and wide customer base.
After marketing department reeled in leads, it depends upon sales department to close it. The
sales person address the particular requirements of consumers and than provide them effective
solutions for their needs.
M2. Importance of Interrelationship
Interrelation between marketing and other functional unit ensures timely achievement of
targets as it reduce the chance of confusion and provide marketing strategies which are exactly
parallel to the overall objectives of an enterprise. Effective communication and link between
marketing and production department is helpful in meeting the demands of customers which will
ultimately attract more number of consumer for organisations thus, improve productivity and
profitability. For ASOS, proper interrelation and connection between marketing and other
department has facilitates timely achievement of targets through reducing chances of confusion
and providing an effective marketing strategy which is properly coordinated with objectives of
all other functional area. Interrelation between marketing and finance department plays crucial
role in running business activities smoothly (Caliskan, 2019). Finance department provides
adequate funds to marketing department that helps it in conducting promotional activities in an
effective manner which results in improved profitability of company.
D1. Critical Analysation
Marketing function is the vital function of a business enterprise and it is very important
for to balance it with other functional units. If marketing function will not operate efficiently
then all the other functions such as production, HR and finance will not be able to function in an
appropriate manner. Finance department provides funds to marketing department that helps it in

running its promotional activities smoothly and effectively promote its product in market.
Marketing department also forms a link between production department and customers by
identifying consumer's needs and preferences. All the information regarding market trends and
needs are provided by marketing division to production department which assists in
manufacturing those products that satisfy needs and requirements of customers (Cutler and
Culotta, 2019). The appropriate interrelation of marketing with other departments will enhance
the overall productivity of a firm . Proper coordination between all the department helps in
ensuring successful business operations of firm.
LO2
P3. 7 P's of Marketing
Marketing Mix is determined as various tools and actions that a business use for
influencing customers to purchase its products and services. There are 7P's of marketing mix
which are product, price, place, promotion, people, physical evidence and process. Here,
marketing mix of ASOS PLC is compared with another fashion retail organisation named named
ZARA which is a Spanish based company.

MARKETING MIX ASOS PLC ZARA
Product This organisation deals in
various range of fashion
products for both men and
women such as clothes, foot
wears, cosmetics and
accessories. It includes its own
designer and branded wear that
shows that it has high range of
quality products.
This organisation deals in
clothes, shoes, accessories,
swimwear, beauty and
perfumes. It sells those
products that suits local culture
and taste of people and its
products are known for its
unique style and latest designs.
Price This enterprise price its
products at different prices
which is dependent upon
brand, quality, etc. For
designer products, it charges
high prices but, it also provides
same looking products without
brand name which are easily
affordable by customers. For
instance, its designer dresses
are high priced.
Zara's pricing strategy focuses
upon average shoppers who
wants trendy fashionable
products at affordable prices.
Firm use competitive pricing
strategy for setting prices of
its products (Fairley, 2019).
Place ASOS.com is rapidly
becoming the market leader in
UK online fashion world and
all the products of this
company are sold online.
There are no offline stores
available for customers to
purchase its products.
It has both online and offline
stores available for customers.
It has around 7000 stores
across the world that provides
quality products to its
customers. It operates in
various countries like USA,
UK, Japan, India, Singapore,
Russia, Malaysia, China, and
so on.
Promotion Business of ASOS PLC is
completely dependent upon
internet so it promotes its
products online by using world
wide web and its official
website (Horton, 2019). It has
a feedback page in its website
which helps in maintaining
healthy relations with
customers.
Although this brand do not
promote itself as much
aggressively as other brands
but, when it comes to
promotion then, it uses social
media promotional strategy
effectively and efficiently.
People This business entity consists of
helpful and polite employees
The employees of ZARA
stores treats their customers in

that has appropriate
knowledge of business.
ASOS.com has various
employees that update its
website and reply to emails on
daily basis. Its employees has
appropriate knowledge and are
trained properly that helps the
business in achieving its
objectives.
an appropriate manner and
makes sure that they solve all
the queries of its consumers.
Moreover, its digital marketing
team also updates its website
on daily basis and inform
people when a new product
arrives.
Process This organisation has control
over its website and its
information and images are
represented without any kind
of doubt. Also, it offers online
payment facility to its
customers.
The procedure of this
organisation is very simple and
easy to understand by
customers. The customers can
easily visit its stores and
purchase its products.
Moreover, customers can also
purchase its products online by
making online payment
(Lippold, 2019).
Physical Evidence The physical evidence of
ASOS is that its customers will
be provided a receipt with their
products whenever they make
an order. This enterprise
provides certain articles and
annual reports to show
customers that ASOS products
are worth of their value. It also
provides information and
description about the product.
Its stores are well maintained
and it has well trained staff that
can be considered as its
physical evidence. Moreover,
its online website is kept
updated from time to time by
its digital marketing team
M3. Evaluation
There are various tools that can be used by ASOS PLC to achieve its overall business
objectives by using the marketing mix. It uses online mode to promote its products which covers
large number of customers. This enterprise targets all types of customers as it provides designer
products at high price and also produces non branded products that can be easily affordable by
low and medium income groups (.McCabe and Weaver, 2019). Use of effective promotional
channels for promoting products in market helps company in attaining its business objectives in
successful manner. This organisation charge different price for its products, for instance for its
designer products, it charges high price and the products which comes without brand, it charges

comparatively low prices to them. Its people are always ready to help the customers, for instance,
its customer service officer answers all the queries of customers.
LO3
P4, M4. Detailed Evidence based marketing plan
A strategic marketing plan is a report that includes marketing strategies of a business
enterprise for attaining future goals and objectives. It also helps to identify targeted audience and
competitors that exist in the market. It also includes overview of a specific business and its
objectives towards which the organisation operates its activities. An effective market plan consist
of business objectives, organisation's overview, budget required to implement the plan, vision
and mission towards which plan is developed and made. ASOS PLC is launching new collection
of waterproof shoes that targets both men and women. For this purpose, a strategic marketing
plan is developed that covers the following points-
Overview
ASOS PLC is an online British based retail organisation that deals with fashion and
cosmetics. This business enterprise was founded in the year 2000 and its headquarter is located at
London, England. This business entity sells over 85 brands in its website and it ships its products
in around 196 countries. It deals with apparels, foot wears, accessories and cosmetics at
international level and is famous for providing quality products to its customers. This
organisation is launching waterproof shoes for both men and women and for this purpose an
strategic market plan is developed (Prabhakar, Mahajan and Kapoor, 2019). This market plan has
various objectives such as to increase the market share and profitability of this firm.
Mission
The mission towards which ASOS PLC works is, “To be ahead of its competitors by
providing customer satisfaction through quality products.”
Vision
The vision of ASOS PLC is, “ To become the number one fashion retailer in the world.”
For this purpose, it is working hard by developing and bringing changes in its products.”
Objectives
The objectives of launching new waterproof shoes by ASOS PLC are as follows-
 To increase company's sales by 20% in upcoming one year by producing such goods that
satisfy customer needs and preferences.
 To enhance market in up coming year and enhance its share up to 15%.
STP approach
This is an effective approach which is sued by organization in order to perform all
business functions effectively. It involves segmentation, targeting and positioning that helps
marketers to deliver their products according to needs and wants. It also helps to achieve the
business objectives by completing task in particular period (Pricilla, 2019). Such as the marketer
of ASOS organisation using STP approach in which they make strategy to develop the its new
product that is ASOS shoes. The description of segmentation, targeting and positioning of ASOS
are as explained:
Segmentation - ASOS organisation is mainly focusing in demographic and geographic
segment in which they mainly involves 15 to 60 years old people and UK market where marketer
is going to launch new products. It will attracts customers more by providing water proof shoes.
Targeting - The management of ASOS shoes company targets people aged between 15-
60 years who needs water proof shoes.

Positioning - The marketer of ASOS shoes company has explained that it will maintain a
upper level position in market by providing water proof shoes. This organisation has perfectly
positioned its water proof shoes in market in terms of innovative positioning.
Therefore, this strategy will helps ASOS to sell its new products by focusing on STP
approach and capture more market share. It is important approach for organization who uses this
to analysis the market segment in order to introduce new products and services.
Swot analysis
Swot analysis allows companies to measure business activities and performance by
comparing with competitors in the industry. ASOS plc is one of the leading company in fashion
and cosmetic industry (SWOT Analysis of ASOS, 2019). This analysis is used by this company to
identify the internal and external forces that has impact over its overall functioning.
Strengths-
 It is engaged in selling around 850
brands in clothing and various
accessories.
 Adoption of innovative and attractive
ways in displaying and advertising
products to the customers.
 It is United Kingdom's largest
independent fashion retailer on both
online and offline platforms.
 Strong distribution channel established
by company in potential market.
 Expansion & growth of business
activities in international market.
Weaknesses-
 Free delivery services provided by
company increases the costs annually.
 Around 30% customers returns the
products to firm resulting in loss in
expenditure incurred for additional
shipping costs.
 Low investment in research &
development as compared with
competitors.
 Rise in level of attrition rates in human
resources (Stalmirska, Whalley and
Fallon, 2019).
Opportunities-
 The willingness of customers on
spending on new and unique products.
 Increase in the mobile penetration
assists individuals in purchasing more
products from mobile application.
 New amendment in taxation policy by
government like decrease in corporate
tax.
 Free trade policy in country allows firm
to expand its retail shops in markets
(Thomas, 2019).
Threats-
 Increasing efforts of various retailers in
capturing the online market.
 Imbalance in the economy of United
Kingdom.
 Shortage of technically skilled
employees in global marketplace.
 New environment laws framed by the
government.
 Development of new and advanced
technologies by strong competitors.
Budget
MARKETING BUDGET (£) ( thousands)
PARTICULARS Ist Year IInd Year IIIrd Year IVth Year Vth Year
Initial money 3000 6400 12100 14260 19870

Investment 9300 10500 23830 31630 13550
TOTAL 12300 16900 35930 45890 33420
MARKETING OUTLAY
Promotion 4646 1559 4693 1975 1111
Sales publicity 1365 800 2452 1492 1050
Direct selling 2135 1800 4751 1000 4334
TOTAL 8146 4159 11896 4467 6405
Monitoring and Controlling
It includes to keep an eye upon business objective and to ensure that all the activities of
marketing are executed in an appropriate way for achieving these goals. It also helps to monitor
that all activities are performed in an appropriate way. ASOS PLC monitor and control its
marketing activities for recording, evaluating and tracking the work progress. It also ensure that
digital marketing team must indulge in all activities that are related to launching of these
waterproof shoes. The tools that is used for this purpose are metrics and by checking that there is
effective flow of communication (Tyson, 2019).
D2. Strategic marketing plan by using 7P's
Strategic plan refers to the document which provides guidance for performing future
activities in order to achieve a specific goals or objective.
Objective:
 To improve sales of company by 20% in next 1 year.
 To enhance market share up to 15% in upcoming year.
STP:
The market is segmented on the basis of geographic and demographic segmentation in
which firm targets 15 to 60 years old people who needs water proof shoes. Company will use
innovative technology to positioned itself in market.
Marketing Mix
Product The product which the company is going to introduce is
Waterproof shoes which will prevent the buyers from being
dirtied by water inside their shoes. These shoes will mostly be
used in rainy seasons.
Promotion In order to promote the following product, company will make
use of online and social media promotions along with media
advertising as well so that customers could be made aware
regarding goods and services of an enterprise to much extent
that could help them in making their decisions about making