Westminster University Marketing Management Report: Zara Analysis

This report provides a comprehensive analysis of Zara's marketing management strategies. It begins with an examination of Zara's channel integration, highlighting its vertical integration approach and its impact on efficiency and customer experience. The report then delves into Zara's customer connectivity, exploring its multi-channel approach and the use of RFID technology. Further, it investigates Zara's integrated communication system, detailing the use of various communication forms, including social media and email marketing, to reach its target audience. The report evaluates the effectiveness of Zara's advertising and marketing communication and explores Zara's approach to entering international markets, including the associated risks and challenges. The report also offers recommendations for marketing channel integration and discusses the company's communication strategies with its customers, employees, and suppliers. The analysis is supported by references to academic sources and industry publications, providing a well-rounded perspective on Zara's marketing practices.

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of the Student
Name of the University
Author note

1MARKETING MANAGEMENT
Table of Contents
Answer to 1a) CHANNEL INTEGRATION OF ZARA...........................................................2
Answer to 1b) ZARA’S CONNECTIVITY WITH CUSTOMERS TO PROVIDE VALUES.3
Answer to 2a) INTEGRATED COMMUNICATION SYSTEM OF ZARA............................5
Answer to 2b) IMPORTANCE OF USING THESE COMMUNICATION FORMS...............6
Answer to 2c) COMMUNICTION FORMS USED BY ZARA................................................7
Answer to 3b) EVALUATING EFFECTIVENESS OF ZARA’S ADVERTISEMENT..........9
Answer to 4a) ZARA ENTERING THE INTERNATIONAL MARKET..............................10
Answer to 4b) EVALUATING THE RISKS FACED BY ZARA..........................................11
References................................................................................................................................12

2MARKETING MANAGEMENT
Answer to 1a) CHANNEL INTEGRATION OF ZARA
Zara is a Spanish apparel retailer that was founded in the year 1975, approximately 45
years ago from today. The company has its headquarters in Arteixo, Spain. The company has
its presence across the world and is specially known for manufacturing fast fashion and other
products that are inclusive of clothing, shoes, perfumes, accessories and many others. The
parent company of Zara is Inditex (ZARA Official Website, 2020). Zara caters the need of all
the segments that is women, men and kids fashion and the products of Zara is supplied on the
basis of the current trends of the market and the change in taste and preference of the
customers (ZARA Official Website, 2020).
ZARA fashion follows vertical integration. When two or more stages of production are
combined together and are normally operated by the firms that are separate is known as
vertical integration. Zara is the most common example that uses this kind of integration as the
company is responsible for creating, distributing and selling their products by themselves (Li

3MARKETING MANAGEMENT
et al., 2018). The forward vertical integration is responsible for reducing the effect of
Bullwhip whereas the backward vertical integration is responsible for reducing the cost
for the company and improving the quality of the product (Cao and Li, 2015). The
company does not rely on other companies for managing the design, warehousing, or
logistics rather everything is done under a single premise including the distribution and
manufacturing of the product that too in small batches.
Answer to 1b) ZARA’S CONNECTIVITY WITH CUSTOMERS TO
PROVIDE VALUES
Zara uses multichannel approach to communicate with its customers in order to
provide values to them. This approach helps the organization to maximize its opportunities in
order to interact with the customers that are prospective (Shen et al., 2018). Multichannel
approach gives a choice to the customers thus allowing them to buy the product from their
store whenever they want to making it convenient for the customers (Yin and Schütze, 2016).
The RFID (Radio Frequency Identification) technology helps Zara to view the stock control

4MARKETING MANAGEMENT
in a more efficient manner improving customer experience. Most of the services are provided
with the help of mobile applications making it convenient and easier for the people to sit back
at home and enjoy shopping anytime they want. Most of the customers of Zara are
communicated through campaigns, advertising which is inclusive of the television and print
media (Valentina and Antoaneta, 2016).
Answer to 1c) RECOMMENDATIONS FOR MARKETING CHANNEL
INTEGRATION
Vertical channel integration is best suited for Zara as there is more control over the
ability to take responsibility and make decisions. This kind of integration helps the business
in being more efficient and have an improvised performance. Though the risk and the
investment of capital is high yet it helps the business to increase its margin of profits. Vertical
channel integration would help Zara in making the production process efficient (Lin,
Parlaktürk and Swaminathan, 2014). This integration will help Zara in acquiring a company
that has the ability to operate in the same production process for an industry that is same or

5MARKETING MANAGEMENT
similar. Vertical channel integration could help Zara to boost up its profit ad accordingly
allow immediate access to the customers more quickly (Crawford et al., 2018).
Answer to 2a) INTEGRATED COMMUNICATION SYSTEM OF ZARA
Zara has maintained a very good communication system and has successfully linked
the messages and every form of communication together. (Cross and Westley, 2017) The
integration of various communication system has helped Zara in delivering a message that is
unified to the end consumers through the help of various communication channels namely
television and the print media and the digital platform. Email marketing helps Zara in sending
messages that are commercial to a group of people or the potential customers (Hartemo,
2016). The email of these potential customers are used for sending solicit sales and
advertisement by the company. The company uses digital platform to communicate with the
customers present.

6MARKETING MANAGEMENT
Answer to 2b) IMPORTANCE OF USING THESE COMMUNICATION
FORMS
The communication strategy of any organization helps the business to identify the
target market in order to have a better idea of what to present where in accordance with the
place and people. It also helps in maintaining a healthy and a strong relationship with the
employees, suppliers and the customers that helps the business to maintain sustainability in
the long run and perform better.

7MARKETING MANAGEMENT
Answer to 2c) COMMUNICTION FORMS USED BY ZARA
For a business to be efficient and effective, it is very important that the brand is able
to communicate properly with its customers, employees and the suppliers. This will ensure
profitability as there will be no links missing. Zara uses a very different marketing and
communication strategy to keep a contact with the customers and the company does it
through the social media platform. Similarly, Zara provides proper training and practices to
communicate with its employees. This helps Zara in inculcating desired values and principles
that the employees need to follow at store. There is own code of conduct for the suppliers and
manufacturers of Zara as these specific guidelines helps the company to ensure sustainability.

8MARKETING MANAGEMENT
answer to 3a) MASS MARKETING COMMUNICATION OF ZARA
The change in the fast fashion industry is constant and the industry is expected to
change every now and then. It is very important that the marketing of the fast fashion is done
at a faster rate than usual. Zara uses social media marketing to reach the masses present all
across the globe. The company uses media profiles like Facebook, Twitter, Instagram,
YouTube and LinkedIn to showcase its fashion products. Most of the posts that Zara does in
these social media platforms are product-focused which helps the customers in having a peek
to the latest offering made by the organization. The customer or fan base of Zara is mostly
young women (Vu and Medina, 2014). The Facebook page of Zara is inclusive of the
collections that are latest and the visual content mostly involves the photos in the look book-
style. Same goes with the twitter page of Zara where the company is on constant conversation
with the customers and proactively replies to their queries.

9MARKETING MANAGEMENT
Answer to 3b) EVALUATING EFFECTIVENESS OF ZARA’S
ADVERTISEMENT
Zara has been rarely seen in doing advertising in any store sales or does promotion of
the sales items unlike other retailers present in the market. The products of Zara are
responsible for advertising itself. The sales associates of Zara doesn’t give much attention
towards personal selling as the innovativeness and the affordability of the products helps the
customers to return back to the store. Zara has developed a very unique marketing strategy
and spends about less than one per cent of the total expenditure on promoting its brand and
the products. This is the only reason as to why Zara do not give advertisements on the
televisions and radios. Hence, the promotion of the brand becomes a quite effective one.

10MARKETING MANAGEMENT
Answer to 4a) ZARA ENTERING THE INTERNATIONAL MARKET
When an organization expand its reach overseas and finds a new market to serve, it
helps the business in many ways. The revenue potential of the company increases, an access
to a greater pool of talent is available. The business is able to learn new customs and culture
of the geographic location the business is operating in and can accordingly customize the
style of the product. Zara follows the “stage model” for entering a new geographical area that
is relatively close to the market that Zara was operating. These distant markets provide a lot
of opportunities when an organization goes international and expand its business. There are
three distinctions of Zara which include vertical integration that helps the business to achieve
a turnaround rate that is faster (Muzychenko and Liesch, 2015). Joint ventures as well as
franchise can be used for the expansion of the brand. The last distinction being the store use
as a promotional tool for Zara that would incur a low amount for advertisement.

11MARKETING MANAGEMENT
Answer to 4b) EVALUATING THE RISKS FACED BY ZARA
An organization can expand its business and growth simultaneously only if it chooses
to go international. However, there are certain risks associated while an organization expands
its business overseas. There were several risks that Zara faced while the expansion of the
business (Coeurderoy and Murray, 2014). These risks were a potential threat and had a huge
impact on the operation and performance of the business. Political risks, marketing risks, and
ethical issues were most commonly faced challenges by Zara. The risks associated with the
ethics were inclusive of the conditions and social customs of different countries. It was
important to make sure that the suppliers from the foreign countries adhered to the rules,
regulations and values despite of the place from where they were operating. Similarly, Zara
had to keep different marketing strategies for different country of operation which was not
the traditional media in case of Zara. Hence, an extra effort was required to input. Political
issues were the common problem that the brand faced in every country it was operating due
to the governmental norms on the business.