Marketing Analysis: Zara's Strategies and Operations Report

This report provides a comprehensive analysis of Zara's marketing strategies, exploring the crucial role of marketing within the organization and its interrelation with other functional departments such as human resources, sales, and production. The report delves into the ways Zara utilizes the elements of the marketing mix, including product, price, place, promotion, people, process, and physical evidence, comparing its approach with that of H&M. It examines Zara's marketing plan, detailing its strategies for understanding customer needs, communicating with customers, fostering innovation, and monitoring competition. The report also covers Zara's brand equity, economic development, and market research activities. Overall, the report offers a detailed understanding of Zara's marketing practices and their impact on its business operations, providing insights into its successes and challenges within the competitive retail industry.

MARKETING ESSENTIAL

Table of Contents
INTRODUCTION................................................................................................................................3
1.Role of marketing in organisation and how it interrelates with other functional departments.3
2. Compare ways in which organisations use elements of marketing mix.................................5
3. Develop and evaluate the basic marketing plan......................................................................8
CONCLUSION...................................................................................................................................11
REFERENCES ..................................................................................................................................12

INTRODUCTION
Marketing essential develops for understand the concept and process of the marketing.
Marketing is all about searching need of human regarding the product. It is about share feelings
with customer and communicate with them. Zara is a retail industry which sales clothes and
accessories. It was founded in 1975 in Spain. This company served its item in all over the world. It
is a fashion outlet. This report will include the role of marketing in Zara and how other departments
interrelate with each other in the organisation, strategies applied for better performance. Role of
marketing mix to achieve the goals of the organisation. Strategies of marketing mix applied by
Zara.
1.Role of marketing in organisation and how it interrelates with other functional departments.
According to Philip kotler, “Marketing is all about to communicate with the customers and
know about their needs and wants. It is the process of communicating, delivering, exchanging and
offering values to the customers, clients, creditors and shareholders”(Wang, Chen and Chen,2016).
Marketing leads major role in any organisation. It is the process from which organisation know
about the preferences of customer. Marketing helps Zara to achieve their goals. It helps develop
better products and increase in sales and profitability of the organisation. Zara is the clothing brand
and customers want something unique. Day by day needs and wants of the customer changes and
Marketing helps the organisation to meet with the needs and preferences of the customer. It helps to
understand about the population and demographic need.
Communicate with customers- The role of marketing is totally depended on the communication.
Communication between organisation and customers. In the marketing role it is major work because
through it organisation know about the customers need and wants. Understand the behaviour of
customers toward brand and if an organisation. if an organisation understand about the customers
preferences towards brand than this thing help them to achieve the goals. Marketers can take help of
the customer while creating a marketing plan.
Innovation - Innovation always helps to organisation to make competitive advantage. In the role of
marketing that person who has already meet with the needs of customer, understand about their
needs. This thing can give benefits to create marketing plan. Innovation refers to develop the
existing product according to the need of consumer. It may be change regarding price, Quality,
Packaging and labelling. Innovations do with the help of marketing. The marketing person helps
organisation and production team formulate the strategy.
Economic development- Marketing also helps in economic development due to the increasing in
sales. Through marketing the customers get satisfied and if customers are satisfied than it directly

impact on the Zara organisation. Zara sales its product worldwide and marketing helps organisation
to develop and organisation development make also impact on economic development.
Monitoring competition- In the market many competitors already make existence and customers
have many alternative choices regarding the same product. Tough competition from other
organisations and different in the quality, logo and pricing. Only a marketing person know that what
are the things which attracts the customer towards brand and the things which penetrate the market.
Through marketing its easy to monitoring the competitions. Nowadays it is in trend that making
copy of products with duplicate label which make weaker to the organisation(Wang, Chen and
Chen,2016).
Marketing research- It is the role of marketing that identify about the preferences of customers
towards the product. Condition of the product in the market. Know about the things which from
customers attract toward the brand. Analyse the situation of existing product and competitors.
Search about the likes and dislikes regarding their products and what they want to change in the
product.
Making strategy and development plan- It is also a major work of the marketing. After research
and identify all the customers needs and preferences it has to come with marketing plan. Make
strategy about the product sale and take action against it. Develop the plan for develop the product.
Take action and start innovate the product.
Brand equity- Brand equity refers to the measurement of brand according to the customer. What
customers think about the brand and how to change their perception, it is work of marketing.
Penetrate the new customers toward Zara and make stable the existing customers.
Other roles of marketing-
 Understanding the economic and competitive factors of Zara.
 segmentation, targeting, positioning.
 Know about target market.
 auditing experience of customer toward brand.
 Actioning upon the market research.
 Identify weakness and strength of organisational.
 Creating marketing plan and market strategies.
 Help the organisation to make competitive advantage.
 Develop and maintain relationships with clients and customers.

Marketing role interrelate with other functional units of organisation
Marketing plays major role in the organisation and it interrelates with other functional or
operational units of the organisation like, human resource, finance, advertisement, sales department
and production department. Indirectly or directly but that all department linked with each other.
Marketing with Human resource- Human resource policies which are generated on the
bass's of market plan, customer preferences and needs, sales target and many other things so
marketing correlates with the human resource department.
Marketing and sales department - which is also interrelates with the marketing
department. Work of sales department is selling the product and management team allot the fix area
to the sales department in which they have to sale the products. Marketing department works for
understanding needs and wants of the consumers and identify the target market so sales department
helped by the marketing department(Purvis,2015). Marketing department tell them about the area in
which they already identified the opportunities so it is easy to sale the product for sales department
due to targeted area.
Marketing and production department- They both interrelate with each other because
they both are relates to the product. Marketing department know about the opportunities which exist
in the market and how to catch the opportunity. Production department tells them to fulfil the
demand and supply of the product.
Marketing and finance department- They both interrelate with each other. The finance
department give them a budget for making and implementation of the marketing plan considering
the marketing secretaries.
All the functional units correlate with each other to bring a successfully marketing plan and
implementing them. They all work for achieve the goal of Zara organisation.
2. Compare ways in which organisations use elements of marketing mix.
Marketing- It is the operational process of the organisation which from customer aware
about the product and know exactly about the product. For increasing in sales marketing develops
strategies like advertisement and promotions(Siahpush and et.al., 2016).
Marketing mix- It includes the elements from which an organisation can achieve the goals
and objectives. It is also defined as a plan to make a product comfortable to customers. It consists
elements product, price, place, promotion.

Elements ZARA H&M
1. Product Zara is the retail organisation of cloths
and accessories. Zara is apparel maker
which grown up in short period. It
identifies the needs and wants of the
consumers and apply the strategy to
sale the product with reasonable price
and quality product. Zara is one of the
famous brand of apparel. It also earned
reputation in short time. Zara does
research Before release any product.
Its product suitable with the customers
preferences.
H&M is also a retailer organisation which
sales the clothing product, sportswear,
underwear and cosmetics, accessories,
shoes, home textile and decoration
products. It has total 6 brands in the
market. Each brand having special offer
in products with differentiation. It makes
quality product with affordable price.
Product range updated regularly. Recently
H&M launched beauty and cosmetic
products.
2. Price Every person can easily approach to
the product. It is fast fashionable brand
with quality products. Price strategy is
also affordable for the persons who are
price conscious and want to purchase
fashionable clothes in affordance rate.
The Latest fashion in comfortable
price is good option for the customers.
This strategy helped the brand to make
competitive advantage.
Where Zara has focused on the
comfortable price strategy there H&M
catch different way. It not only focuses on
the middle class family but also focuses
on the higher end. They allow the
customers to purchase the best
fashionable product on Monday. They
name this strategy “cheap Monday”.
3. Place Zara brand spread over the all world. It
has 7000 stores all around the world. It
aloes sells their product online because
online selling strategy is most
powerful strategy for better outcome.
Online markets are limited one, not
spread with each place. But now Zara
is moving toward online sales.
It has totally 427 stores. It includes three
more stores and starts online sells on the
11 new markets. It followed omni
challenge strategy which from both online
and physical stores available. In its
unique portfolio 4300 stores has brought
to its customers. In present the online
presence of the stores in 35 countries with

4351 stores.
4. Promotion Marketing expenses of Zara is lower
than other brands. Because of high
quality and low price level its brand
loyalty already high. Stores are already
exist on the many places and
customers are aware about is so no
need too much marketing strategy.
Promotion strategy also used many of
discount and vouchers scheme from
this they promote their brand. Offers
always attract the customer so it is the
best way.
H&M mainly focuses on the apparel
images in brand promotion. It is
qualitative and also in reasonable and
comfortable price. They promote
themselves on using of most famous t.v
shows. Promotion strategy mix also
elusive designers who has already a big
brand. They also sent some clothes to
celebrities which Wear by them in the
functions and shows. Using of social
media to promote the brand
5. People People are the source of running any
business. It is also about the
employees of company through which
an organisation runs. Without
employees a business can not run any
more. They ensure about the products
which made by them, are quality
products. They know that they provide
better service and products to people.
Employees complete the daily tasks to
run the business.
People make same place for the all
organisations. This organisation also
focuses on their employees and
customers. Employees are the source
which from product comes and customers
are the source from which an organisation
earns. So both are important for the
organisation.
6. Process Zara organisation focusing on the
customers, understand their need and
wants regarding the product and how
can they help the customers. Their
process is totally depends on the
customer satisfaction.
H&M organisation is focusing on the
product line. They focus on provide the
best quality products to the customer in
affordable price.
7.Physical
evidence
Physical evidence is the visual aspect
of the product which provide to the
customers. It is the evidence of the
existence of that particular company.
In physical evidence some companies
Physical evidence is same of the every
organisation. It also provides the evidence
which have to provide to trust of
customers. No matter it is product or

provide building photos and structure
for the trust of people.
service.
3. Develop and evaluate the basic marketing plan
Marketing plan- A marketing plan is major part of organization. Marketing plan makes for solid
business strategy. It is comprehensive document of a business. It gives outline to business,
advertisement and marketing efforts.
Marketing being an important aspect of a business largely contributes in determining the
overall profitability of the firms. Considering the same, organizations like Zara together founds it to
be a strategic approach for promoting their goods and services. The current section thus reflects a
marketing plan of Zara to be incorporated for the launch of their new customized section of
clothing’s. It is with a special consideration of designing cartoonist costumes for children, aged
below 12 years.
Executive summary
Zara is a retail industry which supply clothes and accessories which was founded in Spain. It
is a fashion outlet which serve its product in all over the world. This marketing plan of Zara is
specially created to define its business objectives, referring to its undertaken mission and vision.
Besides this, it has also conducted both internal and external assessment of its market to undertake
effective marketing tactics and target right set of customers for it. It has been done by using 2
effective models of marketing namely, STP and 4P’s. Lastly, it has detailed its plan for budgeting
with certain steps of evaluation and control.
Business objectives
A business without any specific objectives is not worthy to compete in today’s contending
set of market. It is thereby required for the firms to have some steady goals, along with some
precise strategies for their timely attainment. Zara’s goal is to develop both its society and
environment with sustainable development.
Mission and Vision
Zara is aimed at providing an exclusive choice of fashion to its customers through a quick
turnover of its new stock in comparison to other retailers who deals in fashion and reflect as its
major contenders.
Internal and external analysis
This is in terms of assessing the market environment of Zara to determine its status in the

market. For this, both internal and external evaluation will be carried out through a vital conceptual
model named SWOT. This in turn is expected to help Zara in building effective strategies of
marketing to successfully launch its new plan.
SWOT analysis Strengths- Its strong brand portfolio is referred to be one of its major strength. Along with
which, it is also having a strong network of distribution and a highly skilled staff. Weaknesses- One of its perceptible weakness in terms of handling the challenges existing
due to the entry of new contestants in the market. Also, it needs to build up a feedback
mechanism from the sales team and other involved parties as a mean of getting more
interactive with its stakeholders. Opportunities- A vital opportunity for Zara is in terms of lessening cost of transportation
with a proven scope for the business to lessen down the charges related to shipping and
accordingly minimize the costs of its products to boost up its state of profitability. Low
inflation rate is also referred to be yet another significant prospect for Zara to continually
progress in the market(Malhotra, 2015).
 Threats- Different liability laws in distinct nation is referred to be a challenging aspect for
Zara. Apart from this, it is also suffering from counterfeit products that are being sold by
some fake sellers in the name of Zara which is in turn affecting its brand image to a great
extent.
Marketing tactics - To chose the marketing tactics at first understand about the target customers
whom which Zara is going to provide its services. Here Zara is going to choose kids for target
market. Marketing of the product through famous designers. Through popular television shows and
using of social media. Making plan about the budget that what will the expenses of marketing this
new arrivals. Clothing of small kids with fancy dresses like cartoon character dresses and others.
Here Zara taregt the child below 12. They will sell this to school children and kinder gardens.
STP-
Segmenting- Segmenting is the process in which a market divide into different parts. Segmenting
the market on the bases of geographically, demographic, behavior, market size. It is for making
competitive advantage. Zara will segment the entire market on this basis and after this they will
advertise the arrivals of small kids. The places were schools and kinder garden exists and where the
product can sell(Scarborough, 2016).
Targeting- In present scenario targeting is based on the media planning. This stage comes after
segmentation. Target the market which has divided into parts. Target some places where the product
will go to. Many big schools and play schools where small child come. Here it is all about the

changes in the Zara through targeting the small child. In this it has to target only children's.
Positioning- Positioning refers to set the product and its image in the mind of customer. Here
customer is small child and have done to something unique from which children's will attract and
look towards the fancy dresses. Zara can set the mind of consumers with different range of clothes
in this range and change the environment. Small child can use this dress in general way or some
school competition.
4P’s of marketing-
Product- Product is based on the needs and wants of the customers. At first they have to know that
what small child want and what are the favorite cartoon character of the children. Because it
planning for clothes of small child so Zara has to understand the target market and their needs and
sell their clothes in that particular target market(Larson and Draper,2015).
Place- Zara has a big market and it widely spread of all around the world so they can target any
place for it. Zara has many stores both online and offline. Nowadays small kids like to play games
and they understand everything. Zara can use the strategy on the mobile games. They can do
advertisement on the games which from they want the costumes(Moore,2014).
Price- Zara has no price issues because it focuses on the middle class people also so the middle
class people also purchase the product. Zara gives the best product in affordable price.
Promotion- They can promote their product through social media or any other online sources.
Promote through face to face contact with child because child attract in directly meeting.
Budgeting- It is an activity which performed in order to prepare a budget. It is a quantitative plan
which is planned for future development of organization. It creates for future activities which will
happen in the future. It is estimated expenses or investment that will rises or decreases.
Estimate budget 10 billions (approx)
Bases cost (in a billion)
Advertisement 2
Salary 2
production 2
distribution 4
Total 10
Monitoring and control- After done these all research it has to evaluate and control the marketing
plan and understand the plan. At first use of test marketing in which deliver the products on a store
for testing. If testing will pass then it is easy to supply another products and implement the

marketing plan(Pike,2015).
CONCLUSION
From the above study It has been summarised that marketing plays major role in the Zara to
better performance of it. Understood about the role of marketing in Zara and hoe the marketing role
interrelates with all functions department of the organisation. All departments directly or indirectly
linked with the marketing. This report has done difference between Zara and H&M and found that
they both used element of marketing mix in different manner. In the last this report has created
marketing plan with estimate budget.

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