Zara Brand Analysis: Applying Modern Marketing Strategies and Concepts

This essay offers a comprehensive brand analysis of Zara, a prominent fashion retail house. It begins with an introduction to modern marketing and its core principles, including customer experience, digital adaptation, and multi-channel marketing. The main body of the essay delves into a SWOT analysis, highlighting Zara's strengths such as its strong supply chain and design strategy, while also acknowledging its weaknesses, like limited advertising spending and a centralized distribution system. Opportunities for expansion, particularly in Asia and Africa, are explored, along with threats from competitors. A PESTLE analysis examines external factors influencing Zara, including political, economic, social, technological, legal, and environmental aspects. The essay further examines the role of digital communication, customer expectations, and the company's ability to adapt to changing market trends. The conclusion summarizes the key takeaways, emphasizing the importance of adapting to modern marketing strategies to foster customer loyalty and achieve business success. The essay leverages research and analysis to provide insights into Zara's brand and marketing strategies. The document / assignment is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Brand Analysis

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
What is Modern Marketing?.......................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is a process of introducing goods and services in market, spreading awareness
and promoting offering amongst target audiences for keeping them informed and more
importantly for attracting larger market share for changing them into potential buyers. This is a
reflective essay of Zara a Spanish fashion retail house which was founded in 1975 and located in
Spain. The company deals in clothing that is fashion industry offering most creative and
fashionable designs to its customers around the globe. The present essay is of reflective nature in
which modern marketing concept is discussed and brand analysis is conducted.
MAIN BODY
What is Modern Marketing?
Modern Marketing is a concept which revolves around consumer experiences at every
touch point, building long term relations with customers, adapting to the new digital landscape
continuously as evolution is taking place in the technological world and lastly to market goods
through multiple channels for keeping people informed and reaching the maximum customer
base. Basically modern marketing is a strategy that leverages a measurable and scalable method
for understanding the potential customers and aligning the products according to their needs,
wants, preferences and desires. Thus, modern marketing in my opinion always strives to achieve
two things the accountability of what marketing delivers and the second is the need for the
process to strive in a direction for seeking efficiency (Aggrawal and et. al., 2017).
.
As a consumer what I think of marketing world is, it is a creative place of work and
which give life to the products and services of company by introducing them in the most
innovative and presentable manner in front of the general public and make the most to develop a
attractive presence of the good in the external environment. Marketing is a unique process which
includes the idea on the basis of customers as well as company's perspective and implemented on
the basis of most suitable marketing strategies and phenomena's.
In my opinions of myself as a marketing professional, I am a modern marketer as my
perspective will be matching with the generation and current era as we are the one part of
modern marketplace as customers and potential stakeholder. Also, I have been a keen learner and
by time and thorough observation I have known the fact that fulfilling customers expectations is

a key for business success and gaining customer loyalty by the brand. Moreover, being a
customer I can be more connected to the perspectives of people and make arrangements or
marketing plans for offering the best to people, what they are exactly looking for and to work in
efficiently as much possible.
I have chosen Zara as the organisation for this essay because it offers fashionable and
stylish clothing and accessories according to the customer preferences. It easily adapt the
changing trends of the market so that the customer demands are fulfilled timely. I think its
uniqueness is shown simply in its product by providing clothing and accessories to both high and
medium purchasing power people who likes to stay in the fashion. It has stores available in 88
countries and also it has e-commerce which makes it easy to access the products of Zara. It was
first founded in 1975 and then Amancio Ortega in 1985 set up a parent company before its global
expansion for Zara and in 1988 the company itself started its expansion in international market
through Portugal (Kim and Aggarwal, 2016).
To conduct the market analysis of Zara, I will use SWOT and PESTLE model. It will
help me in determining the internal and external factors that affect the business operations of
Zara. The SWOT analysis is a strategy which tells the strength, weakness, opportunity and
threats of the company.
The strength of the company is its strong control on the supply chain. It has its production
factories near the proximity of headquarter which helps in selecting the raw material and keeps
an eye on production and its distribution. Another strength is its design strategy. It imitates the
trends and provide it to the customers at minimum time period. The main weakness of the
company is that it does not spend its revenue on advertisement. It just hire the brand
ambassadors from glamour world. This gives more exposure to its rivals in public. Another
weakness is it has a centralized distribution system which may result in huge loss if a single
technical snag occurs, the whole system may collapse.
The opportunities for Zara is the global expansion. It has stores in four continents but still
it requires more expansion in Asia and Africa so that it can generate more revenue and market
expansion. Another opportunity is to expand its business in E-commerce by expanding its online
stores in other countries which do not have it. It has online marketing in some countries but not
all. With opportunities, there comes threats which includes that it does not have collaboration
with international designers like its other competitors have. It also has a threat from its

competitors which are everywhere in its major market share like GAP from USA, H&M from
Sweden, etc. which may affect its revenue and profits.
PESTLE analysis is another tool which helps in analysing the external factors of the
company that may affect it. It is done to identify the opportunities and threat which the company
can use to climb the mountain of success. According to this model, there are majorly six factors
that affect or benefit the Zara's working in the market, which includes political, economic,
technological, social, legal and environmental factors (Levy and Guterman, 2020).
The major political factor that affect Zara is the government intervention. Whenever it
plans to expand the business in other country, it has to scan the entire process due to regular
change in policies of government which may affect its operations. Zara can expand its working
in Europe because its economy rarely changes which may give benefit to Zara to grow its market
share in stable country.
Another is the economic factor which affects the company due to fluctuation in the
economy and currency rates. The safe point is Zara only deals in currencies which are safer like
dollars. It evaluates the currency rate and economic condition before entering new market.
Another factor is price differences in different countries due to different custom duty and tax
rates which may become a hurdle in capturing market share of any country.
The social factors that benefits Zara is that it produces clothes for its customers according
to many basic factors like race, colour, origin, geographical position, etc. so it become easy for
customers to find the relevant style. Another factor which gives it advantage is the continuous
discounts and offers it introduces for its customers which helps in attracting more customers. It
provides coupon codes, discounts, vouchers on online website so that E-commerce is also
promoted (Mohylevska and et. al., 2020).
The technological factors that works as advantage to the company is the proper use of
information technology. It has launched an application for Zara so that it can become feasible for
its customers to purchase, exchange or return the product easily. It also introduces new features
regularly for its customers like map system for locating the store easily. This can also affect the
company as it increases its cost for maintaining the applications and its revenue is cut shorted
due to investment in software.
The environmental factors involve are the season rule. Change in season requires change
in fashion regularly to maintain quality relationship with its target customers and also to attract

new customers. But Zara focuses on producing clothes which are for normal weather so that
there is no problem in adapting the change.
The legal factors which may affect Zara is the laws governing in different countries and it
has to deal with every country's law in which it has expanded its business. The rules and policies
in each country varies which is point of concern for Zara as it has ensure that each of its
operations are following proper rules and regulations in their business functions. Another legal
issue which Zara faces is copyright issues. Zara is famous for its designs so it faces copyright
problem as the same design is also available in local stores at low price which affect its brand
image. Sometimes it faces this issue internally because people claim any of the design of Zara as
of their own which creates problem for the company.
Critical analysis: As Zara is a huge brand and sells various products that has been
proven to be latest trending products. Mission of Zara is to give customer what they want and
reach customers is the fastest manner possible. Value hold by organization is to provide best
services and product to its customers. For this purpose Zara has to analyse its customers and
there needs which can be done through making communication with them. For such purpose
digital communication is been used by Zara. Digital communication means communication that
is done with the help of digital technology like mobile phones, internet, video conferencing and
various other modes can be used for making digital communication possible. Digital
communication has helped Zara in reaching its customers in no time and making product
available to them. This can be understood as Zara has introduced online shopping and has given
various offers that has attracted customers of all classes (Mourad, Meshreki and Sarofim, 2020)
In modern time things have been changing at very fast and due to development of
technology it has become easy for a branded organization like Zara to attain sustainability within
market. Digital communication has played a very crucial role in promoting an organization like
Zara and helping it reach to customers all over the world. If Zara follow strategies that are less
complex then customers will get attracted in future to Zara. Also PPESTLE and SWOT analysis
helpful for them in future to identify threats that can leave drastic impact on growth of
organization. Modern marketing is a term that means those modern strategies that helps an
organization to stay ahead of its competitors. This means that modern marketing strategies if
applied by Zara helps in achieving objectives and goals set by the organization for future

success. Zara is required to target middle class customers that is going to make it more popular in
future.
CONCLUSION
The discussion above in the essay is made over modern marketing which concludes the
needs for marketers to adopt a new perspective or view point to seek attention of buyers and
more significantly for gaining customer loyalty for the brand. The modern marketing concept
brings customers and company more closely by integration ideas and viewpoints of both the
parties and working offering the best to people.

REFERENCES
Books and Journals
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Kim, C.S. and Aggarwal, P., 2016. The customer is king: culture-based unintended consequences
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Levy, S. and Guterman, H.G., 2020. Twofold impact of experiential marketing: manufacturer
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Mohylevska and et. al., 2020. MARKETING MECHANISMS FOR IMPROVING THE
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