Developing and Managing a Strategic Marketing Plan for Zara

This report provides a comprehensive analysis of Zara's strategic marketing plan, encompassing various aspects of marketing management. It begins by defining the role of strategic marketing, differentiating it from tactical marketing, and illustrating the process involved. The report examines the links between strategic marketing and corporate strategy, emphasizing their interdependence for organizational success. It then assesses several models used in strategic marketing planning, including the Balance Scorecard, SWOT analysis, PEST model, and gap planning, highlighting their application to Zara's business. The report further explores the relationship between strategic positioning and marketing tactics, using Zara as a case study to illustrate the practical application of these concepts. Additionally, it discusses appropriate marketing strategies, including those for growth, and analyzes the impact of external changes on marketing strategy. The report also includes an internal analysis to identify strengths and weaknesses, and explores responses of strategic marketing to emerging themes. The report emphasizes the importance of understanding target markets, competitive advantages, and the effective use of marketing mix elements such as product, price, place, and promotion to achieve sustainable business growth and customer loyalty.

Developing and Managing a Strategic
Marketing Plan & Apply Strategic
Marketing Techniques

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Role of strategic marketing...................................................................................................1
1.2 The process involved in strategic marketing ...................................................................2
1.3 the links between strategic marketing and corporate strategy .........................................3
TASK 2............................................................................................................................................4
2.1 Assessing the models used in strategic marketing planning ...........................................4
2.2 The links between strategic positioning and marketing tactics .......................................4
2.3 Analyse the merits of relationship marketing in a given strategic marketing strategy.. . .6
LO 3.................................................................................................................................................7
3.1 appropriate marketing strategies.......................................................................................7
3.2 marketing strategies for growth .......................................................................................7
3.3 appropriate technology for the Zara................................................................................9
4.1 impact on the external changes in the marketing strategy..............................................10
4.2 internal analysis to identify weakness and strength......................................................11
4.3 Responses of strategic marketing on emerging themes..................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic marketing management defines the mission that company implements through
the defined process that helps it to take out the most effective from present marketing plan in
order to identify target market as well as marketing opportunities (West, Ford and Ibrahim,
2015).
Zara is the fashion retailer which is situated in Galicia,Spain. It was established in 1975
and which was founded by Amancio Ortega and Rosalia Mera and it has its headquarters situated
in Arteixo, Spain. It deals in the products like clothing, accessories, shoes, beauty products etc .
It has 10000 stores (Zara stores worldwide, 2016) located in worldwide.
It will also include the relationship between the strategic marketing and corporate
strategy as well as the tools and models used for strategic marketing planning. It will also
contain the impact of external environment on the strategies and internals analysis to identify
strengths and weaknesses as well as emerging themes for marketing strategy.
TASK 1
1.1 Role of strategic marketing
Strategic Marketing is the way a firm effectively differentiates itself from its competitors
by capitalising on its strengths (both current and potential) to provide consistently better value to
customers than its competitors. Strategic marketing roles that can help 'Zara' in the following
ways:- It can help in determining in which market areas the company will compete. It can help
company in how to develop a market strategy on the basis of the company's competitive
advantage in order to compete (McDONALD, 2016). It can help company to decide when to
enter into the markets and in what way.
Difference between strategic and tactical marketing:
Bases Strategic marketing Tactical marketing
.
Goal achievement process
This marketing involves the
understanding of the target
market or customers in order
to gain the competitive
advantage at the same time it
can help 'Zara' company to
This marketing involves
detailed process to achieve the
objectives while strategic only
focuses on the goals of
organization. This marketing
can help 'Zara' company to
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decide regarding the business
objectives and for that the
company need to be up-to-date
regarding the trends as well as
competitive position.
In order to achieve the
objectives company need to
make the strategy. Strategic
marketing helps the company
in analysing strengths and
weaknesses of the company
and this marketing
concentrates on long term
objectives such as growing the
business and demographics
(Andaleeb and Hasan, 2016)
choose the target customers by
creating tactics in order to
influence the marketing
strategies.
It helps the company in
determining correct
promotional media and which
channel of marketing is
effective for company. Tactical
marketing involves advertising
and promotional tactics in
order to aid the marketing
strategy.
Focus It emphases more on gap
analyses and filling that gap
properly so that company can
achieve its goal
It emphases on creating new
tactics that may support in
gaining positive results by
understanding more about
consumer profile.
1.2 process involved in strategic marketing
Strategic marketing process can help 'Zara' in assessing and finding the opportunities and
provides a clear direction in order to achieve the objectives and to create a brand name and
customer loyalty (Josephson, Johnson and Mariadoss, 2016). the following steps are :-
A) Mission:- The first and foremost step in strategic marketing is 'Zara' company need to find
out the reason why it is present in the market and in what way it can benefit the target market for
the long term. Through Zara's business model, aim to contribute to the sustainable development
of society and that of the environment with which we interacts.”
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B) Situational analysis:- The second step that 'Zara' need to do is the situational analysis. It
means the organization need to find out and assess the strengths, weaknesses, opportunities and
threats. This analysis can help the managers of firm to assess resources that can be improved by
company as well as the challenges that it will face in the near future (Felix, Rauschnabel and
Hinsch, 2017).
C) Define the marketing objectives:- The third step of process that 'Zara' need to do is defining
the marketing objectives. With help of this, the company gets the basis for decision making and
to make the choices and can analyse the progress. the objectives includes revenue, targetted
sales and profit of the company.
D) Strategy development:- For this, Zara need to find out the target audience or customers who
would prefer to purchase company's product or service
E) Evaluating the plan:- The last step of strategic marketing is evaluating the plan that the
company need to monitor and evaluate the tactics as well as should evaluate the performance like
purchase information (Papadopoulos and et.al., 2017).
Perceptual mapping is a diagrammatic technique used by marketers in an attempt to visually
display the perceptions of customers or potential customers. Typically the position of a product,
product line, brand, or company is displayed relative to their competition. It will help in
analysing the needs and demands of potential customers.
1.3 links between strategic marketing and corporate strategy
Both the strategic marketing as well as corporate strategies are two different concepts and
these both have different system and structure but they both are significantly equal for the
organisation at the same time it is essential for the success of 'Zara' company.
Corporate strategy
This strategy describes where the company wants to take its business and it is the
foundation or like engine of every business. This includes budgets and reports of the company.
The strategy helps the business in directing towards achieving the objectives for the long-term. It
can help Zara in managing resources as well as risks. Both corporate and marketing strategy are
interdependent to each other because marketing department follows according to the direction
given by corporate strategy. This strategy assess internal i.e strengths and weaknesses as well as
external possibilities and threats over competitors (Piercy, 2016).
Marketing strategy
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With the help of this strategy, company will be to attract the customers at the same it
focuses on how to retain customers regarding the products and services in the competitive
market. Marketing and Corporate strategies are interlinked to each other as without mission,
marketing strategies can't be developed. It involves four main pillars that are very significant for
the business that are 4P's product, price, place, promotion (Reed, 2018). If the company have set
a well defined marketing strategy as per the mission that will result to appropriate target market
with precise goods or services, easy availability of the product at right place and through better
promotions that is advertising, sales promotion that will provoke the customers desire to
purchase goods or service.
Marketing plan will be developed sustainably. It will help in implementing the ethics and
code of conduct which the company has described. This plan will also assist company in
achieving objectives.
TASK 2
2.1 Assessing models used in strategic marketing planning
The models that can help Zara in effective strategic market planning are the following:
1) Balance scorecard:- This is the model that provides strategic framework and the scorecard
software for business that can help the company in ascertaining the goals at advanced level and
provides the measures in order to achieve the objectives strategically(Mathews and et.al., 2019).
2) Strategy map:- This model is designed as a visual tool that can help Zara to ascertain the
high level objectives. This model is important component of balance scorecard which is an
effective way in transferring information on the financial, customer as well as on internal basis
within the organisation in an effective way.
3)SWOT analysis:- This is the important model that is used for making the strategic planning
which includes strengths and weaknesses that are internal factors and opportunities , threats are
external factors of the organisation(Jenkins and Williamson, 2015). This analysis can help Zara
in identifying the capabilities of the organisation as well as the areas where the company can
improve.
4)PEST model:- This model is another significant model that is very important for every
organisation. This framework includes determining political, economical, social and
technological these are the external environmental factors that can affect the health of the
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business. Now the two more factors are added to this model that legal and environmental that can
also affect the business (Tuten and Solomon, 2017).
5) Gap planning:- This model is also very important for every organisation. It is also called
need gap analysis. This can help Zara in analysing or assessing the gap between what is current
position and where Zara want to stand in future. This can help Zara in improving the internal
deficiencies in order to achieve the organisational objectives in an effective and efficient manner.
These models can help company in knowing about the strategic planning is effective or
not. It will help in analysing the competition and support company in gaining competitive
advantages.
2.2 The links between strategic positioning and marketing tactics
Strategic positioning
Strategic positioning reflects choices a company makes about the kind of value it will create and
how that value will be created differently than rivals. (Resnick and et.al., 2016). It includes the
various promotions which shows the uniqueness of the product or service or brand in the minds
of targetted customers.
Marketing tactics
Marketing tactics are also very important aspects of every business that are significantly
interlinked with the strategic positioning because marketing tactics are developed according to
the strategical positioning which includes the effective marketing mix that is product, price,
place and promotion. monitors and guides the companies towards the growth stability of its
product lines (Hofacker and et.al., 2016). It includes company's competitive and cooperative
strategies. It assures the improvement of the company. It is strategy which can taken place
through the functional area.it helps to achieve the marketing tactics and objectives and strategies.
Pricing strategy which has been used company is skimming. price- Zara is one of top
leading brand which can offers its products at high on fashion and lows in the prices. it follows
the pricing strategy. it cannot spend its ample of money in advertising. affordable prices strategy
attract a very large no of the customers who want latest fashion .this strategy helps to create as a
unique brand and in addition to this market share grow faster.
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place- Zara has spread their brand all over the world .more than 7000 stores opened,also
online stores are also available .thus online marketing is not spreading all over the world but
limited to the specific ones(Josephson, Johnson and Mariadoss, 2016).
promotion- Zara is considers as the leading brand ,its owner never gives any interviews
and they never engage themselves in the flashy campaigns .unlike other brands Zara 's
advertisement never visible on the television. they spends barely money on the advertising.
however company used other platform for its adverting such as social media platform
effectively. such as Facebook followers are 2.5 millions while Instagram followers are 15
millions. Zara does not put their logos on their product which is an interesting fact to
know(Mathews and et.al., 2019).
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2.3 Analyse the merits of relationship marketing in a given strategic marketing strategy
Zara retail company is using a strong relationship marketing strategy by convincing their
customers so that their customers will rely on the brand, and increasing profits of the company
(Chomvilailuk and Butcher, 2018).
Using relationship marketing, Company is understanding and observing the demands of
the customers and therefore creating and offering new brand products to fulfil the demands of the
customers which leads to satisfaction and retention of the customers(Payne, Frow and Eggert,
2017). Zara is offering satisfaction at low prices to the customers and maintaining its customers
so that the customers recommend its brand products to their friends and family. In the strategy of
relationship marketing, zara retail company is using standardisation in which it is using low
price, high sale strategy. Company is offering discounts to its customers by maintaining mutual
benefits of the company and its customers(Harris and Daunt, 2016).
Relationship marketing strategies is allowing the company to focus on the increasing
number of sales, and maximising profits and also focusing on the benefits of both the company
and the customers. Through Relationship marketing, company is developing trust of the
customers on the brand and creating happy and loyal customers which are relying on the brand,
increasing their sales, and referring their brand products to others (Chomvilailuk and Butcher,
2018). Being in the close relationship with customers, zara is saving money as it does not have to
spend so much of the money for marketing and advertising its brand products and using its
budget in buying storefront. Zara has adopted relationship management strategy to maximise its
profits and provides desired and demanded products to its customers as they have deep
understanding with its customers.
Designers of the zara retail company are producing very limited quantity of editions and
provides new and innovative brand product as well as seasonal brand products to its customers
which results in regularity in the sales and the customers which leads to increment in the profits
of the company(Reed, 2018).
Zara company is using customer relationship marketing for enhancing of its brand by
manufacturing different fashion editions and by concentrating on serving the satisfied products
for their customers and distributing their products at faster rate to their customers.
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LO 3
3.1 appropriate marketing strategies
Zara crossed more than one million followers on the Facebook in 2017. It is one of the
most leading fashion retail brands having 26.4 million followers. Facebook pages shows the
latest collections of the brand which consist visual content such as look book style photos. it
posted 497 times contains 70% of photos while 20% of its video content. new collections of
products drive most likes and shares. As all are talking about the new trendy fashion styles.
Here applied Ansoff marketing strategy which is used to achieve the corporate objectives
and strategies to develop the competitive advantage to the competitors in the market .it is defines
as to target market's directions and requirements in order to create a position which is defensible
as compatible with the overall corporate strategy.
Market strategy main goal is the to communicate the customers the add value of products
as well as services. It consider the image, function, design ,to improve the customer's experience
which ultimately leads customer to buy products.
Company can achieved growth by market development strategy where new markets
created in terms of expansion through its operation to other geographic locations such as Wales,
Asia ,Scotland .also targeted new segments of Market which increase brand awareness and
encourages to buying on the regular mode. Also applied the pull strategy to attract the student
market. It is a promotional tactics that gives students offering such as 15% discount by using the
online store ,also carried out the advertising through mail to the students flyers and also provide
them free vouchers (Piercy, 2016).
3.2 marketing strategies for growth
Ansoff Matrix:
Market penetration:
This strategy explains the increment and expansion of business using existing goods and
services in the current market. This can be executed by increasing selling of present product to
regular customers or new customers from the same market (Jenkins and Williamson, 2015)..
Market development:
This strategy describes development of business in the new countries with old products.
This can be achieved by using unique products and it results in good output (Tuten and Solomon,
2017)..
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Product development:
This strategy reports about increasing existing market with adding new products with it to
attain growth. This can be attained by developing range of product (Reed, 2018).
Diversification:
In this strategy company develop its marketing with introducing new products in the new
markets (Papadopoulos and et.al., 2017).
Company should take support of product and market development strategies, as it would
help the firm in entering into new market and dealing with consumers that live in international
market. By this way enterprise would be able to raise its sales and will be able to gain attention
of mass audience. By developing its products it would be able to attract new consumers that
would help in increasing revenues of business. Apart from this, it will improve customer
segmentation that would help the firm in gaining competitive advantage to the business (Reed,
2018).
3.3 Create appropriate strategic marketing objectives for a market
Marketing objectives which can be followed by Zara are as follows:
 To increase the sale by 20% till the end of year 2019.
 To enhance the customer experience by 10% in next three months.
4.1 impact on the external changes in the marketing strategy
Through pestle analysis company will make clear that how these factors affect the
bushiness on the direct and indirect basis.
Political factor: European union free trade policies impacts positively on Zara, as it helps Zara
in terms of import and export of raw materials and also finished products within the European
union. hence company can reach the more customer in European union which boost the sales of
the company as there is no extra border tariffs there. Furthermore, political changes or instability
of government many times create problem for Zara in successfully run the business in new
market because with the changing government rules get changed and entity has to make changes
in its entire process of marketing to get success in the market.
Economic factor- This is another external factor which influence marketing strategy of the firm.
As if value of currency is low then firm will not be able to spend much amount in marketing
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hence it may affect sale of business but if value of economy is good then entity can make
investment and can get success in new market. Zara is a Spanish brand where unemployment rate
is more so low cot labour minimizes cost and improves profitability of the business of the
company.
Socio-cultural- Zara has to consider needs of society members and by considering values and
believes of society members entity has to make its marketing strategy that would help in gaining
attention of buyers otherwise they will become negative towards the brand (Jenkins and
Williamson, 2015).
Technological environment- If there is advance technologies such as social networking sites
etc. then it would help company in making marketing in cost effective manner ,by this way it
would be able to make more connection with mass audience. But if technology is not used by
business in proper manner so it may create problem in marketing as entity will not be able to
convey message to consumers in proper manner.
4.2 Internal analysis to identify weakness and strength
Zara is one of the leading brands in terms of the lifestyles and also in terms of retail sector. Here,
Swot analysis of Zara is given below.
strength  Zara has adopted unique model for
fashion and also maintains the unique
balance between demand and supply. as
stock always remains fresh in Zara,
there is no overstocking.
 better inventory management inside the
stores. it has invested in IT which
enables access to better information as
well also focused on the competitive
price clothes with more innovate and
trendy designs (Tuten and Solomon,
2017).
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