Marketing Management Report on Zara: Strategies, Analysis, and Tactics

This report provides a comprehensive analysis of Zara's marketing management. It begins with an introduction to marketing management and its importance, followed by an in-depth examination of Zara's strategies. The main body of the report focuses on the STP (Segmentation, Targeting, and Positioning) approach, detailing how Zara segments its market demographically and geographically, targets young customers, and positions itself as an affordable fashion brand. The report then explores Zara's marketing mix, covering product, price, place, process, promotion, people, and physical evidence, highlighting Zara's focus on product innovation, competitive pricing, strategic store locations, and digital advertising. Furthermore, the report examines the relationship between Zara's marketing strategy and its current tactics, emphasizing its focus on fashion trends, target market, and pricing. The report concludes with recommendations for Zara's future marketing endeavors. The report is designed to provide an understanding of Zara's marketing strategies and how they contribute to the company's success.

Marketing Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
STP approach..............................................................................................................................3
Marketing mix.............................................................................................................................5
Relationship in marketing strategy with an emphasis on current tactics....................................7
Recommendations:......................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Marketing management is the process of controlling planning and decision making the
marketing aspects of organisation. It determines the market opportunities afterwards devise
appropriate strategies for exploring and promoting those opportunities in effective manner.
Marking helps company to obtain new sights from promoting & researching about needs of
consumers. It allows a better grasp of role of marketing in economic development. Generally it
leads to better measurements of marking function or activities with regards to performance in
order to meet consumers requirements(Yoshida, Yagi and Garrod, 2019). This report is based on
ZARA in order to understand all marking terms. This firm was founded by Amancio Ortega
Rosalia Mera in year 1975. it is a Spanish multinational retailer based firm with the specializes in
fast fashion and products that involves clothing , beauty products , perfumes shoes etc. they
operates their business globally in order to achieve success and growth. Furthermore, this report
will covers STP in order to reach all potential consumers. Additionally this report will explain
how marketing mix aids company to executive marketing strategies in effective manner.
MAIN BODY
STP approach
This approach can be defines that framework which is use by organization to improve its
function and achieve business objectives. This strategy include three type of business strategies
which are related to improving current position of firm and targeting customers according to
needs and requirements of firm. These three stages are segmenting, targeting and positioning of
product and services. In relation to ZARA, STP approach use by organisation is discussed below:
Segmenting; Under this stage, organisation needs to segment its market according to
needs and requirements of firm. This stage is related to dividing market in small areas where
organisation can work according to needs of firm and can bring more productivity in fir. This is
helpful to organisation in achieving its business objectives by finding adequate customers in
target market(Bakerand Hart, 2016). Dividing market according to needs and requirements helps
firm in managing its objectives because firm can use different kind of function to segment
market. In relation to ZARA , there are various function which can be perform by it to achieve
objectives of this function all these are mentions below:

 Demographic: Under this kind of segmentation organisation using function which are
related to achieving business objectives. Herein, ZARA is using dimension which are
age, marital status, gender, ethnicity, sexuality, education, or occupation. This is because
organisation is dealing faction products where these factor enable organisation inter
customer more effectively.
 Geographic –Under this function organisation can divide its sergeants on the basis of
country, region, state, city, or neighbourhood. In context of ZARA, it is using UK region
for its current market strategy to be segment This market is useful for organisation
because it helps firm in managing all function in effective way. This also improve
functions and provide direction to firm for improving its performing abilities and
achieving better market share.
Targeting: Selection of target market is the second logical step after segmentation in
order to reach all consumers. Target market refers to set of consumer that shares common or
same need which company decide to serve. After knowing the opportunities of market
segmentation, firm needs to decide how many and which segment is targeted in order to reach
ample numbers of consumer(Wroblewski, 2017). In which there are three types of strategies for
selecting targets markets.
 Undifferentiated targeting- This methods sees market as one group with no other
individual segment, hence using a single marketing strategy.
 Concentrated targetting – this approach mainly focus on selecting a specific market niche
on which marketing efforts are targeted.
 Multi segment targetting – This approach is used when an organisation wants to focus on
two or more well defined market segment and want to creates various strategies for them.
In context of Zara their primary focus on targeting young customers for enhancing profit
and sale of company. They always try to make their product fashion affordable but trendy it does
not means they compromise with their products. They maintain the quality of product. They
mainly target the women who aids them to generate more revenue. Along with this they also
targeted man's and kids who comprise a small part of their target segment. Women are more
target market for Zara compare to kids and men's.
Positioning: In this approach, company select two or more important area to focus on
and stand out in those areas. This strategy concentrates on how to compete with rivalries in order

to become leading company. An effective positioning strategy is involves a strength and
weakness of corporate, the demands of consumers and market & competitor's position(Jaworski,
2018). In which some factors could aids company to maintain their position in market and helps
to become leading company these factors are quality, cost, flexibility, creative , trendy etc. In
context of Zara they positions their self as an affordable fashion brand using latest style and low
cost. They provides larger assortment of design and style in comparison to other revelries which
gives strength to them for become leading company in retail industry of fashion products.
Therefore, it is known for their perfect combination of high end, chic clothing at reasonable or
affordable price.
Marketing mix
Marketing mix refers to set of action or tactics that aids company to promote their brand
and products at marketplace. In which marketing mix of ZARA analyses the brand and explains
its marketing strategy in order to reach business goal and objective(Lahtinen, Dietrich and
Rundle-Thiele, 2020). There are several marketing strategies like marketing investment, product
innovation etc. for this marketing mix is used to execute all these strategies. Following marketing
mix of ZARA is discussed below: -
Product: A product is a service or an item offered by a company in order to satisfy the
customer needs. Zara deal with various products including jewellery, clothings (Jeans, t-shirts,
Jackets), accessories (belts, hats, boots, ties, leather bags), footwear for men and women. It is
collaborating with various suppliers nowadays in terms of making sustainable and market
friendly environment. The firm use various sustainable methods to collect the best products for
their brand. And even they use recyclable materials to reduce the waste of products and increase
the quantity and quality. It has been suggested that Zara has been generally developed a standard
of maintaining and reuse of the products which increases the confidence of the potential buyers.
Price: It has been stated that demand of the consumer will go higher if consumer get
good products at the normal prices. It does not focus on cheaper products which can be available
to consumers in the market but it simply means better products at better prices. It does not
specifically reflected that there is a need of cheaper products to be available for the consumer, it
simply means that consumer need better products at better prices from which they get maximum
satisfaction(Campelo, 2017). Zara followed competitive pricing strategy and suggest better
quality products in cheaper rates to create a balance between International and national currency

in clothing at the same price. Even in the seasonal times Zara follows dynamic pricing strategy to
offer more discounts on products Therefore it increases the sustainability for future goals.
Place: The third P states that product should be available easily so that every customer
can easily find the showroom without any difficulties. Zara ensure that its location and stores are
sustainable in nature. The company has its own offline stores and website where they offer
different range of products and services to the customers. More than 2250 stores are operating
worldwide. The company has its own websites which helps various consumers across the
countries to purchase online and with minimal discounts. In relation with online facility, Zara has
a facility of International delivery and can be brought in local currency from where the customer
has been purchase the product online.
Process-: Each company has own process which is includes technology, task, function
and activity. It is process in which delivery service to the customer. Zara has one of the leading
supermarket chain. It deal in various segment and diversify business model. It is famous for
fashionable garment segment so it is unique procedure in that way to promote there product and
services(Gummesson, 2017). The techniques which is used as promote product and services to
smooth flow of operations and it's function.
Promotion: To increase the value of product, promotion suggested to be as one of the
major element in the marketing mix. Zara uses digital advertising campaign to easily connect
with the customers worldwide. Generally Zara uses social media, mobile ads and various other
facilities which helps the company to promote their clothing brand. Zara has the facility of
reward system in which customers receive points in their account after purchasing the products
however such reward points can be spent in future online shopping(Turner and Lecoeuvre,
2017).
People-: Manpower is the asset of the organisations and day by day adding value in
company as a increasing productivity and boost sales. Company also focused to improves their
performance in that way to provides a training which leads to increasing profitability. It includes
those people who delivering services as sales consultant and representative of company(Gama,
2017). In context of Zara, It is recruitment of those people who have potential and capable for
doing particular job. IT has specialized in that field accordingly deliver servicing to a customer.
Physical evidence-: Zara promotes their brands through various way like Facebook,
twitter, Instagram, corporate website and you tube so all these as evidence of company in that

way to branding of product. It includes run various campaign on festive season like Christmas so
it is unique way to conduct promotional activity. It is famous for fashionable and stylish clothing
segment so it is greatest physical evidence of company.
From above discussed marketing mix it has been analysed that Zara is more focused to
spend their percentage of revenue in opening new stores. They spends their money on expensive
real states of their stores and on their decors. They believes in sustainable development and
committed to reduce wastage of production. They offers biodegradable plastic bags in order to
protect environment.
Relationship in marketing strategy with an emphasis on current tactics.
Zara is one if the leading brand in clothing they operates and serve their product globally
in order to enhance sales and profit for company. They offers high quality end products with best
price(Luca, Hibbert and McDonald, 2016). The main aim of every clothing organisation is to
upgrade their trend of fashion according to the need of people.
Zara is more concentrated towards material and designing clothing, their main purpose is
to producing garments according to the Channing treads of consumers. They are more target
market is towards women compare to men's and kids for this they have more dedicated ,creative
team for producing designers, sourcing specialist and product development. They severs goods
quality products at affordable price. They perceived their product line in bags, dresses, jeans,
trousers, skirts, and other accessories that are found above the base of Zara for attracting more
consumers towards their brand. This is the most known brands for youth people as Zara is more
focused towards them. They launch approximately 100 new design every year as they promise to
their consumers to satisfy their needs and demands.
The pricing strategy of Zara is to provide good quality product at reasonable cost. They
sets price according to the locality and the demand of their product at market place( Hollensen,
2019). They reduces the cost price of product as they do not invest their money on advertisement
or promotion. They sets criteria for deciding price which is basically depends on whom they are
targeted and that helps them to select material and manufacture that accordingly. These all
elements aids company to generate revenue and make profit on the basis of each target market.
In order to reduce competition they offer their product at discount too but only once or two time
in a year. They believes their consumers are loyal towards them not because of only brand image
but also for the quality and creativeness of product.

Zara has stated their business with only one outlet in Spain but now they serve their
products globally. They have their retail store approx 1000 in more than 90 countries. The global
presence of Zara proves that they are well maintaining their brand position across whole world
which strength them to enhanced their brand value among varied market and customers
worldwide.
In context of Zara they are not more focused towards promotion of their brands. They
promotes their brand to consumer from others to traditional methods. They are using social
media mode in order to reach people and raising awareness about their goods as it is the best way
of communication between consumers and company. Main aim of Zara is to target youth
consumers to garbing ample numbers of consumers towards their brand and for this social media
is the best method for them as youth are using more social media platform like Facebook Twitter
and so many other blogs group. They have more than 50 million followers on social media but
they not put their brand logo on products(Deepak and Jeyakumar, 2019). This helps them to save
money in promotion and gives opportunity to invest that on building more new stores.
Main aim of Zara is to serve best quality of product at reasonable prices to their
consumers. they are not spending much money on promotion. They successfully created lots of
buzz over years as well as they bring change in market of fashion and creates new boundaries for
their competitors.
Recommendations:
 Zara is a leading fashion brand that is faced immense competition from other competitors
such as Gucci, forever 21 and others. So, it is essential for marketing mangers of
company to review their existing strategies and make necessary improvements. Zara is
targeting to higher income group of society. They products are highly expensive because
of that they are out of reach from lower and middle income group. They should also cater
the requirements of these groups of society in order to enhance their market share and
revenue.
 Zara is not carrying out extensive market practices due to this there presence is limited to
the some selected segments. Mangers of company can also use marketing methods such
as hoardings, newspaper advertisements to enhance their presence at market place. It will
help to increase in market share and profit margins.

 The company has some exclusive outlets at limited locations. Because of this, it is not
able to cater the needs of large segment. Marketing team of Zara should enhance their
presence by increasing numbers of its outlets. It will not only improve the presence but
also increase in sales and profit margins of organization.
 Then, further it too recommended they need to update their management structure so that
talented & skilled subordinates are hired for getting critical tasks & activities done in
proper manner.
 Moreover, ZARA should be conduct market research & analysis so that reliable
information is gained about market & competitors. It is also stated that with use of these
credentials it is easier for therm to make decisions.
 It is also recommended that they can opt for using more effective social media tools &
should enlarge their network connections so that their products are sold worldwide.
 It is suggested to HR manager that they should be active about what marketing strategies
are being adopted so that resources & other things are used in most efficient manner.
The chosen company can go for revising their marketing strategy so that internationalisation of
a brand is done in appropriate way
CONCLUSION
From above report it has been concluded that it is very important for organisation to
formulate and use effective marketing strategy in order to get better grasp of role of marketing in
economic development. Marketing management aids company to identifies opportunities for
company that is present at marketplace. For this STP approach aids Zara to identifies market
strategies. In which they are more focused towards youngster in order to maintain their
leadenness in retail industry of fashion products. They commits toward reduction of production
wastage and concentrate on sustainable development. In order to analyse marketing strategy they
use marking mix tool to promote their brands and products for the accomplishment or
organisational goal.

REFERENCES
Books and journals
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Campelo, A. ed., 2017. Handbook on place branding and marketing. Edward Elgar Publishing.
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Gama, A. P. D., 2017. A balanced scorecard for marketing. International Journal of Business
Performance Management. 18(4). pp.476-494.
Gummesson, E., 2017. From relationship marketing to total relationship marketing and
beyond. Journal of services marketing.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Jaworski, B. J., 2018. Commentary: advancing marketing strategy in the marketing discipline
and beyond. Journal of Marketing Management. 34(1-2). pp.63-70.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
Luca, N. R., Hibbert, S. and McDonald, R., 2016. Towards a service-dominant approach to social
marketing. Marketing Theory. 16(2). pp.194-218.
Turner, J. R. and Lecoeuvre, L., 2017. Marketing by, for and of the project: project marketing by
three types of organizations. International Journal of Managing Projects in Business.
Wroblewski, L., 2017. Culture Management: Strategy and marketing aspects. Logos Verlag
Berlin GmbH.
Yoshida, S., Yagi, H. and Garrod, G., 2019. Determinants of farm diversification:
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& Entrepreneurship. pp.1-27.