International Marketing Strategies and Issues: A Zara Case Study

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This report provides an in-depth analysis of Zara's international marketing strategies, examining its global operations, challenges, and consumer behavior in various markets. It begins with an overview of Zara, including its founding, mission, and expansion into international markets, highlighting its vertical integration and financial performance. The report then delves into contemporary issues in international marketing, such as technological advancements, cultural differences, and consumer behavior, and how these factors impact companies like Zara, Amazon, and EasyJet. Finally, it explores strategic marketing strategies, focusing on push and pull marketing, and how Zara employs these approaches to promote its products globally. The report concludes by summarizing the key findings and insights regarding Zara's international marketing efforts.
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INTERNATIONAL MARKETING
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview ...............................................................................................................................3
International marketing issues................................................................................................4
Strategic marketing strategies.................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
International marketing refers to the use of various principles of marketing to satisfy the
needs and wants of the people that are living across the border of the nation. It involves the use
of different marketing activities for offering the products or services of the company in different
nations. The Report will be based on Zara. It belongs to Retail Industry and deals in Apparels.
The parent company of Zara is Inditex (Gomes, Sousa, C. and Vendrell-Herrero, 2017). The
Report will outline overview of the firm, various types of issues that a multinational organization
faces during international marketing. It will also describe the various types of strategies that firm
adopts for marketing of the products.
MAIN BODY
Overview
Zara was founded in year 1975 by Rosalia Mera and Amanico Ortega. Headquarter of
Zara is located in Arteixo, Spain. It is one of the top retailer that deals in accessories and clothing
items. Zara is the major brand of Inditex Group. The group owns many other brands also such as
Zara Home, Massimo Dutti, Oysho etc. In year 2017, Zara operates more than 20 collections of
clothing items in a year. The first store of the company that is Zorba was opened in Spain in year
1975. Zara deals in various types of Apparel for male, female as well as for kids (Handayani,
Ferdinand, A.T. and Sugiono, 2018).
The Mission statement of Zara is to make efforts for promoting the sustainable development of
the country. To achieve this mission, firm uses eco-friendly methods of production to save
energy. Zara uses organic fibres for manufacturing clothing items. For transporting different
types of products to the customers at different locations, firm uses biodiesel fuel that helps to
reduce the emission of carbon di oxide.
The company has expanded its operations at international level in year 1980 in Portugal.
In year 1989, Zara has entered the market of France for offering its clothing items. It is vertically
integrated firm because it controls the supply of raw materials, manufacturing and distribution of
the products in various countries itself, designing the products etc. In year 2017, the total number
of stores of the firm worldwide is 2,2,51. And total revenue of Zara in year 2017 is €16,620
million. In year 2019, the total number of stores Zara is operating in Spain is 547. In China, the
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firm is operating 229 stores, in US it is operating 98 stores. The firm also got the rank in the list
of the best employer in the State in year 2019 (Jakubczak, J. and Rakowska, 2018).
Amazon is a multinational technology firm. It was founded in year 1994 by Jef Bezos. Company
is headquarter in United States. It offers various products and services such as Amazon fire,
Amazon.com etc. It initially offers books online and later on it started selling electronics, apparel
etc.
Easy Jet is an Airline company. The headquarter of firm is located in England. It offers airline
services domestically as well as internationally in more than 30 countries. Key people are John
Barton etc.
International marketing issues.
International Marketing refers to adopting various types of marketing tools and
techniques for finding targeted segment of customers to attract them for purchasing the products
of the firm. International Marketing helps the organization to target the buyers at international
level. It also helps the firm to satisfy the needs and demands of the buyers in a better way as
compared to competitors by coordinating various marketing activities according to the rules and
regulations of domestic as well as foreign country (Morschett, Schramm-Klein, H. and Zentes,
2015).
According to Gillespie, K. and Riddle, (2015) Contemporary issues refers to the opinion
or idea related with a particular topic that is relevant in current time. Sometimes the marketing
team of the company faces various types of issues while expanding their operations at global
level through international marketing. There are various contemporary issues that Zara, Amazon
or Easy JET may face during International Marketing of the clothing items and accessories in
different countries are as follows.
Technology -
One of the major contemporary issue that marketing department of Zara may face is
technology. Nowadays, customers are more aware regarding intent marketing, omni-channel,
mobility etc. as compared to the marketer of the firm. Multinational companies should now
change their technology of advertising the products at international level because, nowadays
buyers are becoming more engaged with the brands. There is an increase in the use of advanced
technology that is digitalization that has increased the accuracy, speed of the transactions.
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Amazon should bring a change in international advertising of the products to attract large
number of buyers (Schmid, Grosche, P. and Mayrhofer, 2016).
As per the view of Demangeot, Broderick, A.J. and Craig, (2015).There has been an
increase in use of new technology such as social media and apps in mobiles. This has created a
barrier in marketing of products at global level due to lack of preparation of the companies.
Marketing department of Zara should adopt advance technology such as Artificial Intelligence
etc. to provide digital experience to the customers. Otherwise, company will lose opportunity to
attract large number of buyers.
Easy Jet should make efforts for developing strategy of intent marketing. This will help the
company to predict the mindset of customers and help to reach the buyers through offline and
online methods.
Different classes of customers of the organization are now comfortable with global,
affordable and advanced technology for purchasing products of the firm. This has changed the
rules of international marketing. Now, the customers are thinking in different way in relation
with the brands and how to buy their products. Various multinational organization such as Zara,
Amazon and Easy Jet etc. are now impacted by the rapid change in the technology due to digital
transformation. This has affected the marketing of products at international level. It has become
imperative for the firm to integrate the process of product development, marketing and
distribution at international level so that, it can satisfy the demands of buyers in better way.
Cultural difference -
Another major contemporary issue that may impact the marketing of products of an
organization is the difference in the culture of people. Every country is having their own culture,
religion and traditions. The cultural difference can impact the marketing strategy of Zara because
the firm offers its clothing items in different nations.
According to Arora, Haleem, A. and Farooquie, (2018) Every nation is having their own
culture, different opinion and attitude regarding the products of the firm. There is a large
difference in selecting marketing tools, campaigns for promoting the products of Zara at
international level. Difference in language, habits, social values impacts the marketing of
clothing items and apparels of the firm. Due to different culture and traditions of the countries,
marketing approach of Zara will also be different.
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For effective marketing of the products, marketer of Amazon should have understanding of
proper translation of marketing message from one language to another.
Deep understanding of customs, culture, religion is essential for influencing the buyers to
purchase the products. For example- The culture in Europe and India are different. The designs
of Apparels preferred by people in Europe will be different as compared to preference of Indians.
Therefore, marketer of the firm should have knowledge regarding different cultures before
launching the products in different markets of different countries. Buyers of different countries
are having different social values it means that, the firm have to develop different marketing
activities for selling clothing items to the customers. Effective communication is at the heart of
marketing of products at international level. Difference in the language of different countries
may also act as a contemporary issue if marketer failed to analyse its importance during the
marketing of the products (Gillespie, K. and Riddle, 2015).
Consumer Behaviour -
The behaviour of consumer refers to the process which is related with the perception, emotions
of customers. The process involves recognition of need of the product. Making decision in
respect of buying the product etc. There are various factors that impacts the behaviour of
customers such as psychology of buyers, family, culture etc. The marketing department of Easy
Jet must have an understanding of various factors that impacts customer behaviour for effective
marketing of the products of the firm.
Perception-
The perception of buyers in respect of shape, colour of clothing items are different it will affect
the decision-making of customers while purchasing the products of the firm.
Purchasing Power-
Disposable income of the buyers will also affect the decision-making in respect of purchasing the
product of the firm.
Influence of Reference group-
The values, opinion of the family of buyer will also impact the buying decision of customers of
Zara.
All the above factors plays an important role in influencing the customer behaviour and
marketing department of Zara, Amazon and Easy Jet should consider these factors during
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international marketing of clothing and accessories (Gomes, Sousa, C. and Vendrell-Herrero,
2017).
Strategic marketing strategies.
Marketing Strategy -
It refers to the approach that organization uses for marketing of the product or services at
domestic or international level. Marketing strategy helps the business to achieve success in
global markets. There are various types of strategic marketing strategies that companies may
adopt for promoting its products at international level. These are as follows-
Push Marketing Strategy -
It refers to the strategy in which company pushes its products to the targeted segment of
buyers. Under Push Marketing Strategy, marketer of the firm adopts various types of marketing
techniques to push the products of the company to customers. Marketing department of Zara may
adopt this strategy for taking the clothing items in global markets.
Amazon can adopt different methods as a part of push marketing strategy. For example- It can
use method of direct selling of items to buyers through various stores of the firm in different
countries. It can also promote the products through trade shows, through attractive packaging of
the items etc. There are various benefits of using Push marketing strategy such as it helps the
firm to create demand of the product, customer awareness regarding the products etc (Surdu,
Mellahi, K. and Glaister, 2018).
Pull Marketing Strategy -
It refers to the strategy of creating the demand for the products and pulling the buyers
towards the products of the firm. Zara may also use Pull Marketing Strategy for promoting the
clothing items in International markets. The firm can use this strategy alone or it can use it along-
with push marketing strategy. Under this strategy, companies makes efforts for offering the
products in international markets. For Example – Zara may use different methods for marketing
of clothing items in different countries such as India etc. Marketer of the firm may use Social
Media platforms like Instagram etc. It can also offer discounts, Television advertising, E-mail
marketing etc. There are various benefits of using this strategy like it helps to retain loyal
customers, it removes the need of performing outbound marketing etc.
Currently Zara is following Pull strategy of marketing for creating curiosity among the
buyers for purchasing the products of the firm. As compared to the nearest competitor that is
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H&M, Zara is using AR application for influencing the buyers to purchase the products.
Company is focussing on 4E's of marketing that is exchange, experience, evangelism and every
place etc. for attracting the buyers to buy the products that are offered by the company. For
Example- Zara offers discounts on Women's Apparels like 70% off etc. Company does not
majorly focus on personal selling rather it promotes the sale of products through effective pricing
strategy, innovative products etc. Zara also focuses on word of mouth advertising for selling its
products (Vellas, 2016).
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CONCLUSION
The above Report has outlined that Zara is one of the top Retail Brand in the world that
deals in clothing items and Apparels. Amazon deals in various products and services through
varous websites like Amazon. Com and Easy Jet offers Airline services to customers.
International Marketing plays an important role in attracting large number of customers from
various countries to buy the product. The Report has also explained that there are various types
of contemporary issues that an organization have to face during International Marketing of the
products such as difference in the culture, due to different factors that impacts the behaviour of
the buyers. Further the Report has also described different types of Strategic Marketing
Strategies that firms can use for marketing of the products at international level such as Pull and
Push Marketing Strategy.
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REFERENCES
Books and Journals-
Arora, R., Haleem, A. and Farooquie, J.A., 2018, March. Barriers affecting successful
technology enablement of supply chain: An Indian perspective. In IOP Conference Series:
Materials Science and Engineering (Vol. 330, No. 1, p. 012101). IOP Publishing.
Demangeot, C., Broderick, A.J. and Craig, C.S., 2015. Multicultural marketplaces: New territory
for international marketing and consumer research. International Marketing Review. 32(2).
pp.118-140.
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
Gomes, E., Sousa, C. and Vendrell-Herrero, F., 2017. International marketing
agility. International Marketing Review
Handayani, E., Ferdinand, A.T. and Sugiono, S., 2018. ANALYSIS OF FACTORS
AFFECTING THE PERFORMANCE OF SME EXPORTS IN CENTRAL JAVA THROUGH
EXPORT MARKETING STRATEGIES. JURNAL SAINS PEMASARAN INDONESIA. 16(2).
pp.103-116.
Jakubczak, J. and Rakowska, A., 2018. CULTURE AS A BARRIER TO ENTRY FOR POLISH
ENTERPRISES ON PEOPLE’S REPUBLIC OF CHINA MARKET: CONCEPTUAL
MODEL. Management. 16. p.18.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Schmid, S., Grosche, P. and Mayrhofer, U., 2016. Configuration and coordination of
international marketing activities. International Business Review. 25(2). pp.535-547.
Surdu, I., Mellahi, K. and Glaister, K., 2018. Emerging market multinationals’ international
equity-based entry mode strategies: Review of theoretical foundations and future
directions. International Marketing Review.35(2). pp.342-359.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
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Online-
Pull Marketing Strategy. 2018. [Online] Available Through :
<https://www.forbes.com/sites/pamdanziger/2018/04/23/zaras-difference-pull-people-in-not-
push-product-out/#6e9652ad23cb>
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