Marketing Strategies of Zara and H&M: A Comparative Analysis Report

This report provides a comprehensive analysis of the marketing strategies employed by two leading fashion retailers, Zara and H&M. It begins with an introduction highlighting the importance of marketing in business and its role in increasing productivity and profit margins. The report then delves into a detailed comparison of the marketing mix (product, place, price, and promotion) of both companies, examining their unique approaches to product development, pricing strategies, distribution channels, and promotional activities. A significant portion of the report is dedicated to a marketing plan specifically for Zara, including an executive summary, company overview, mission, vision, objectives, and detailed marketing strategies. It also encompasses a thorough situation analysis, exploring the strengths, weaknesses, opportunities, and threats (SWOT) facing Zara, and concludes with an examination of market segmentation, targeting, and positioning strategies. The analysis provides valuable insights into the competitive landscape of the fashion industry and the effective marketing practices of these global brands.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
COMPARISION OF MARKETING MIX BETWEEN ZARA AND H&M.............................3
MARKETING PLAN......................................................................................................................6
Executive summary.....................................................................................................................6
Company Overview....................................................................................................................6
Mission........................................................................................................................................6
Vision..........................................................................................................................................7
Objectives....................................................................................................................................7
Marketing strategies....................................................................................................................7
Situation analysis........................................................................................................................8
Market Segmentation, Targeting And Positioning......................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Marketing is very essential aspects of any business organization as it provides the
business to increase the productivity and also help the business organization to increase the profit
margins. With the help o different marketing strategies the business can improve its efficiency in
performing its activities and also increase the market share in the market by competing with the
competitors in the marketing this report there is a detailed information about different marketing
strategies of H&M and Zara by comparing their strategies and understanding their business plan.
This will help the companies to understand the factors which will increase the efficiency of the
companies with the internal and external analysis of the factors.
COMPARISION OF MARKETING MIX BETWEEN ZARA AND H&M
Marketing
mix
H&M ZARA
product  The company have introduced
many new products in the markets
and also have launched different
brands which will increase the
market share of the company.
 It provides the excellent products
with the low prices and also
increased effective of their
products.
 The company have also innovated
their products and differentiated
their clothing according to the
different activity to provide better
choices to their customers and
 The company is well-known
because of its brand and it has
a very popular fashion clothing
stores all over the world.
 The company also increase
their efficient by
manufacturing their products
themselves as they have
developed their own
manufacturing units.

also increase the sale by attracting
them.
Place  The company have always
analyzed the perfect location for
opening of their stores and
analyzing the driving factors
which will help in promoting the
new store to be successful in short
period.
 The company have also used the
strategy of selling the products
both online and in their stores
which helped them to increase the
sales and also provide better
services to their customers.
 Zara is very considerate about
the location of the store and do
not compromise in placing
their store at the right place to
increase their sales. \
 the company also have
increase the sales by opening
more than 2000 stores all over
the world. (Uhl and Gollenia,
2016)
Price  The company have maintained
the value of the brand and have
also focused on the higher social
class of the society by providing
them the better products with high
prices.
 They also have made many cost-
efficient products to attract the
low price shopping customers so
that it can increase the market
share and also increase the sales
of their company.
 They also have used the strategy
like cheap Monday so that the
H&M customers can increase the
 Zara only focuses pn the high
quality products at the low
price to increase the sales and
also reach all the part of the
world with better satisfaction.
 The company is had USP in its
prices as they are the
manufactures of their own
products.

company;s sales by their strategy
and it also helps the company to
clear the dead stock.
Promotion  The company have also invested
many fund in promoting their
brand in the market to compete in
the market and also increase the
number of customer by attracting
them with this strategy.
 They also adopted the
technological medium to sale
their products like digital
marketing which will increase the
sales of the company.
The company does not expend their
money in high cost promotions and
belies on the traditional methods of
mouth promotions as they are very
confident about their quality of
products and prices that thy offer
which will easily satisfy their
customers.(Halpern, 2016)
People The company have targeted the
customers on the basis of their beliefs,
culture, attitudes and behavior to attract
them with their products.
The company have emphasized on
themselves and increased the
efficiency of their products by
promoting their sales and satisfying
them effectively.
Process The company have focused on the
analyzing and developing the product and
services to provide the satisfaction to the
customers.
The company have also made a good
strategies in which they provide
different clothing in different season
which help the company to keep the
sales constant.
Physical
evidence
The company have also increased the
efficiency of their staff by improving
their knowledge by training and develop
them to interact to their customers.
(Lukito, Lukito and Arifin, 2015)
The company have increased the
quality of their clothes with low
prices, and they also have improved
the organization structure in such a
way that all the employees are self
efficient in communicating with the

customers in the stores and help the
get pick what they desire.
MARKETING PLAN
Executive summary
This marketing plan is about Zara which is the one of the largest clothing brand in the
world. There is analysis of all the marketing strategy which will help the company to increase
their sales. The external and internal factors analysis with some analysis of potential threats to
the company by the market competitors.
Company Overview
Zara which is a Spanish clothing retail store company which is located internationally
and have more than 2000 stores. The company is the manufacturer of the clothes and also sell
them with their specific retail chain giving them a better competitive advantage. The company
was established in 1975 in Spain. The company have focused on the fast fashion styles to attract
the customers to the company.
Mission
Zara aims to develop the environment and the society with the help of improving the
company and providing the better employment opportunities to the society and also contribute in
the growth of the economy. The company also focuses on the health of the environment and also
try to accomplish its corporate social responsibility with the effective strategies and also improve
the goodwill of the company (JOBBER and CHADWICK, (2012). The company is also
concerned about the waste, and they also have thought to create a recycling system by them help
the nature and also decreasing the consumption of the electricity with increasing the energy
efficient equipment in the stores. The company also aims to create its own sustainable energy
from solar.

Vision
Zara aims to increase the product quality and also provide the low cost products to their
customers. They also aim provide the best satisfaction to their customers and increase the
customer loyalty ratio.
Objectives
 To introduce a new product in the market with the increased efficiency.
 To resolve all the problems which the company is facing currently by analyzing the
behavior of the customers.(Heroux, 2017)
 To innovate the latest market trends so that they can be having the monopoly and a
competitive edge in the market in some particular products.
Marketing strategies
The company have launched a new product for the customers and the company have to
analyze and strategize to increase the sales.
Product
The company have the unique selling proposition as they have the high quality products,
and they help the company to increase the customers' attraction in the market. Zara have to
analyze that what are the new market trends which the customers are demanding. This will help
the company to evaluate and manufacture the product according to their preferences. As the
products of the company are mostly focused on the medium and high social class of the society.
(Horton, 2019)
Price
Zara have also had to analyze the price of the product by evaluating the product demand
and also evaluating the cost of the product. As the company analyze the prices of their clothing
according to the target market and according to all the factors which are required in the selling
the products. It also includes the transportation of the products form the factories to the store.
Place
The company have also expanded its stores in more than 85 countries and is also
successful in operating more than 2000 stores across the countries. The company have to analyze

the best suitable place which fits in attracting the customers and also decreased the hidden sots of
promoting the store for the boost of their sales. The company also m have to analyze the location
of the store which should be feasible from the factory. But in this case id the company finds the
market to be potentially high in resources in the market. (Van der Wagen, 2015)
Promotion
Zara does not believe in spending any extra money on promoting the brand, and they
either increase the efficiency of their current stores with that money, or they open a new store.
The company also have to create a marketing strategy which will attract the customers and will
not increase the cost of the company (KOTLER and ARMSTRONG, (2013).
Situation analysis
Strengths
Zara is known for its designs and keeping the designs on rotation so that customers
always get new designs. New designs attract customers and make loyal customers. Unique and
new designs are main potential of Zara. Zara has the reputation of launching thousands of new
designs every year across the globe. Zara rarely advertises its products that is why it has low cost
and higher profit.(Brown, 2016)
Weaknesses
Zara does not specialize in anything and has everything for everyone. One of the reason
that a customer shifts to competitor is when the competitor is focused on one thing. Zara is less
aggressive about marketing, promotion and sales in compared to most of its rivals. It tried to pull
customers by responding to their taste and needs instead of trying to push sales by advertising.
Zara does not advertise its products (GROUCUTT and HOPKINS, (2015).
Opportunities
Zara can increase its customers through advertising, promotion and other marketing tools.
It will help in attract new customers towards Zara s products.
Advertising helps in create product image in customers minds and brand recognition. Market
expansion is big opportunity for Zara. New market will always give new business and profitable
business to Zara.
Threats
Competitors can take advantage of Zara s low advertising as competition is increasing
day by day. Zara is not the only one which is known for its chic design. Vero moda, H&M and

mango are also loved for its design. But the advantage to Zara is that the other brands are quite
costly when compared to Zara whereas Zara gives much better designs at affordable price.
However, Zara needs to focus on marketing and promotional tool.(Kreutzer, 2015)
Market Segmentation, Targeting And Positioning.
Segmentation
The product the company which is coming out with the segmentation of the company is
required because they focus on the women selection the most (BRASSINGTON and PETTITT,
(2012). The product which they are coming out with will make the company make a different
market for them all together and will make them create a big them for themselves in the market
than they already are in the present. The age group which will be targeted in this product will be
between 30 and 45 because it's that age group who becomes very particular with choosing their
clothes.(Ozuem, 2017)
Targeting
The company will be targeting for the online digital marketing for this product because
that is the best way to target this women section. The company will do very good if they target
this set of people because they are very much into these brands and specially this age group.
Targeting is done such are a detail analysis of a data of the selling of the products of Zara and
this decision was taken after analysis the factors.
Positioning
This is a very attractive product which Zara wants to get in the market because it will
capture a lot of market in the present world. The competitors with Zara like H&M has not even
thought of this idea yet. The products Zara is coming out with is really innovative and creative in
its own way and will definitely attract a lot of customers towards it. Connection of the company
with the customers is really strong therefore it will be very easy for the company also to spread a
word around to get more customers.(Gbadamosi and Yusuf, 2016)

CONCLUSION
This report had a brief information about the importance of marketing essentials in
ZARA and H&M. This helped the companies to formulate a better understanding about how the
information can be used to increase the sales of the company. The company had launched many
stores with the analyzing the external and internal factors. The companies also has analyzed
financial performance of the companies, value chain analysis. They had also analyses the
strategies to segment, target and position the product in the market with efficiency.

REFERENCES
Books and Journals
BRASSINGTON, F. and PETTITT, S. (2012) Essentials of Marketing, 3rd Ed. Harlow: Pearson
GROUCUTT, J. and HOPKINS, C. (2015) Marketing (Business briefings), London: Paigraive
Macmillan.
JOBBER, D and CHADWICK, F (2012) Principles and practice of Marketing. 7th Ed. Maiden:
McGrew Hill.
KOTLER, P. and ARMSTRONG, G. (2013) Principles of Marketing, London: Prentice Hall.
Van der Wagen L., 2015. Events & Tourism Essentials. Pearson Higher Education AU.