Zara Makeup: Marketing Strategies and Environmental Analysis Report

This report provides a detailed marketing analysis of Zara Makeup, a prominent brand in the cosmetics and beauty industry. It begins with an executive summary and table of contents, followed by an introduction highlighting the significance of marketing in business growth. The report then delves into environmental analysis, employing PESTEL and SWOT frameworks to assess internal and external factors influencing Zara's operations, including political, economic, social, technological, environmental, and legal aspects. The subsequent section focuses on segmentation, targeting, and positioning (STP), outlining how Zara can categorize its market, identify its target audience (primarily women), and develop effective marketing strategies. The report also examines the marketing mix, encompassing product, price, place, and promotion strategies employed by Zara to achieve its business objectives. It concludes with a summary of findings and references.

Zara Make Up

EXECUTIVE SUMMARY
This report will talk about marketing and its relevance in cosmetics and beauty
product’s company. Each and every business organization use this approach in order to
sustain in the market for the longer period. This study will provide a brief information about
the environmental analysis by using two major approaches one is PESTEL and another one is
SWOT. There are various approaches also used such as marketing mix which can help to
provide competitive advantage in the market.

TABLE OF CONTENTS
INTRODUCTION .....................................................................................................................4
ENVIRONMENTAL ANALYSIS ...........................................................................................4
SEGMENTATION, TARGETING AND POSITIONING........................................................6
MARKETING MIX ..................................................................................................................7
CONCLUSION .........................................................................................................................9
REFERENCES ........................................................................................................................10

INTRODUCTION
Marketing plays a vital role in the growth and development of a business and provide new
opportunity for the future.. Marketing is a broader term which contains a variety of
businesses and make a company more successful in the future. These activities can be like
market research, marketing planning and promotion (Rundh, 2013). This report is based on
Zara which is one of the most valuable fashion brands in the UK and other European and
Asian countries. In this report, PESTEL and SWOT approaches will be described.
Additionally, the STP model in context of Zara will be discussed. In the last part of this
report, information about the external analysis will be provided and its role in the success of
business will be discussed. Marketing mix to get the set targets of selected business will be
stated as well.
ENVIRONMENTAL ANALYSIS
Business environment is dynamic in nature which influences the decision making and
performance of company. This is the role of marketing manager of Zara to understand these
elements of marketing and different types of strategies to make their business successful in
the near future. In order to evaluate these factors, Zaracan use SWOT and PESTEL analysis
and make their decisions more effective. These are:
Internal analysis: This is related with the understanding of internal factors which can help to
make them more effective. These elements can be customers, competitors, suppliers,
investors, government, etc.
Strengths Zara one of the established brand in the world which helps to sale
their cosmetic products in an easy way.
The supply chain of Zara is extremely law cost increase its profit and
revenue.
The firm has more than 2000 stores in the different part at the global
level.
There are large number of products which related with the eyes, face,
lips, hair, nails etc.
Zara having strong presence in the UK and other Asian countries.
The organization are having more than 200 beauty products in more
than 80 countries.

They are successful in expanding their business operation's all
around the globe.
Weakness In the modern day, people are aware about their skins and its
negative impact which reducing its growth.
There are various competitors such as Revlon, Yardley, Garnier etc.
provide intense competition in the market.
They should focus on their quality factors in order to satisfy their
customers
Opportunity Zara can increase its product range in cosmetic products according to
the age.
The firm can increase its beauty stores in other countries which can
provide future growth.
Threats There are new and emerging companies in the beauty and cosmetics
which having on adverse impact on their market share.
In the recent time, the operational cost of Zara has increased which
reducing its profit and revenue.
Market research should be conducted in order to see the products
which are used by rivalry firms.
External analysis: This is another environment which cannot be controlled by the company
and meet its short and long-term targets and gain competitive position in the market. There
are various global factors which influence the business decision making of a company. Zara
is operating their business in the UK where various factors influence their business and its
sales. There are various tools and techniques are related with macro factors and helps to meet
their short and long-term targets in an effective way. These factors can be described as
mentioned below:
Political factor This factor influences the business decisions of a company and its
future performance. Zara operating its store in the UK where
government is stable and its will provide a consistent growth to the
business.
If there are changes in policies of government then it will directly
affect their sales and profitability factors thus firms should focus on
these factors in order to achieve high profitability.

Economic factor This is related with the economic aspects of the country because its
influences the decision making of the company in the long run. In the
context of UK, which is a leading country with $2.45 trillion in the
world (Virvilaite, Seinauskiene and Sestokiene, 2011). Helps to
increase cosmetic product demand in the next few years. Further, the
other elements such as interest rate, inflation, demand etc. are also
favourable for the company.
Social factor There are various cultural and social factors which involves
population size, population growth, trends, customs and other
elements. For example, the majority of the people in UK are highly
educated and helps to create demand of their products in the next few
years. These products should be valuable for the people who are
residing in economy so they can achieve success in their ventures.
Technological
factor
Zara required to use various technological and innovation which
helps to increase efficiency and productivity. For example, cited
enterprise can use integrated supply chain where they can get
updated information about the stock level and reducing the logistics
issue at the operational level. Zara should focus on adopting changes
in their plans and policies according to advancement in technologies
in order to satisfy needs of customers and retain them for long time
durations.
Environmental
factor
In the modern business scenario, the role of environment is very
crucial. Because, it influences the operational and strategic level
decision specially related with the cosmetic and beauty industry.
There are various products which are using chemical ingredients and
adverse impact on climate (Oly Ndubisi, 2012). It will be reducing
the demand of beauty products which is not good for Zara. Further,
there are various government policies should be followed by the
company which can create an ideal image in the market.
Legal factor There are various legal issue and its large impact on the business
operations. These legislations can be involving minimum wage rate,
working condition, working hours etc. Each and every country is
having its own rule regarding labour laws which can protect the right

of the employees at workplace.
From the above mentioned aspects, a company helps to provide future direction and avoid
the risk associated with the business. The marketing manager of Zara should provide relevant
information and make sure that they can get its established target in an effective manner.
Source: (Mishra. A, 2014)
SEGMENTATION, TARGETING AND POSITIONING
A business corporation required to understand their market and target its customer by
developing various strategies and tactics which helps to meet their set goals and objectives
(Sharma, 2013). In the context of Zara, which needs to launch their cosmetics and beauty
products in the market. STP is a systematic process which involves following elements:
Segmentation: This is one of the most complex and competitive stage where a company is
required to categorize its customers. It is first stage where a business enterprise divides its
market on the basis of following aspects:
Psychographic
segmentation
There are various customers who have their own choice of
brand and product which helps to make them more effective
and meet their short and long-term targets. For example,
Zara can offer its product on the basis of profession which
involves house wives and working women.
Geographic Segmentation In this segmentation, cited firm is required to divide their
Illustration 1: Growth in Cosmetic and beauty industry

market on the basis of geography. For example, Zara can
categorize its market in to Britain, Wales, Scotland, Ireland
etc. Further, they also provide relevant resources and
responsibility to perform their task in an effective manner.
There is following process of segmentation
Determine segment need This is the first stage of segmentation where Zara
having need to determine its potential customer. As per
the given case, they can have focused on the women
and corporate girls.
Identify segment At this stage where they need to further divide the
market as par their customer demand. For Instance,
Zara can target those women who are professional and
working in the corporate houses.
Segment attractiveness It is very significant for a company to analysis the
attractiveness of segment. In the context of Zara which
is highly profitable and provide a competitive
advantage.
Segment profitability Each and every company wants to evaluate its
expected ROI so that they can gain revenue in the
longer run.
Develop marketing strategy At this stage Zara required to create a various strategy
which are mentioned next part of the report.
Targeting: This is another approach where a company required to divide the overall market
and focused on selected target audience. In the context of Zara where target market is female
which categorize in to two aspects professionals and house wife.
Positioning: This is the final stage of STP process where a company required to design and
develop effective strategies. For example, Zara can be developed marketing mix which will
discuss in the last part of the report. It is responsibility of a company to make sure that such
tactics effective and appropriate which can meet their short and long-term target.

MARKETING MIX
Marketing mix one of the most significant tool to make a product or service effective and
competitive in the market. It is an element of four components which involves product, price,
place and promotion (Ramaseshan, Ishak and Rabbanee, 2013). In the context of Zara which
is which a fashion brand in cosmetics and beauty products around the world. The cited firm is
having a large number of products in the beauty segment. These elements are:
Product: This is one of the key part of marketing mix which is related with the products
offers by the company. In this element, there are various aspects which considered by the
enterprise and helps to get the competitive position in the market. Each and every business
unit is tries to design their product as par the demand of their potential customer and with the
high quality. So that they can increase the satisfaction level and leads to increase profit.
 In the context of Zara, having its own makeup products for eye, face, lips, nails and so
on. These all products having high quality and most of the females prefer such
products.
 The cited firm having its own research and development department which product
such product and meet the changing need of their customer (Rundh, 2013). These
products are highly anti-aging, cleanness and chemical free which build competitive
advantage over other firms.
Price: Today customer is more sensitive about the price of products and services offered by
the company. Each and every business enterprise is tries to provide its goods at the lower
price (Kurt and Hulland, 2013). It element of marketing mix related with the pricing
strategies used by a firm as compare to its competitors. In the case of Zara, there are
following strategies can be used by them in order to provide a long-term success in the
market. These are:
Premium pricing: In this approach, a company is tries to offer its product for the niche
market rather than large number of customer. The main objectives of such approach is to
generate revenue from its target audience by offering unique products. In the context of Zara,
there are various cosmetic brand of UK which can offer to those market who are able to pay
higher price which can leads to increase sales.
Discount pricing: This is another strategy which can be used by the cited firm where they can
offer its product to the customer at the discount rate. For instance, Zara can provide its beauty

products at the lower price in the festive session so that they can generate large volume of
sales and revenue tom meet their sales target (Griffith and Hoppner, 2013).
Place: This is responsibility for each a company is to make sure all products are available in
the country at the right time. Zara having more than 2200 stores where they can offer its
cosmetic products. Further, cited organization also planning to launch a website where they
can present its product in a more effective so that customer attract and ready to use these
products in an effective manner.
(Source: Marketing mix, 2015)
Promotion: This is one of the most essential part of marketing mix which related with the
promote product and create awareness about it. There are various promotional activities
which can be used by the Zara and develop strategic advantage (Understanding The
Marketing Mix And The 4 Ps, S, 2015). The cited firm spending a large amount on the
advertising and also sponsor beauty contest which can helps to create demand in the market.
For instance, social media one of the most suitable tool where Zara can provide various
information about new products, price, discount etc., and gain competitive advantage. Public
relation one of the major issue for a company is to maintain a good relation with their
Illustration 2: Marketing mix

customer and put them in the loyal customer list. The firm having an effective customer
relationship management plan which can meet these targets.
CONCLUSION
As per the above-mentioned report it has been concluded that marketing and its role in the
cosmetic and beauty industry. This report discussed about the impact of external and internal
environmental factors through appropriate application of PESTEL and SWOT. With the help
of these approaches a company can minimise the potential risk and make effective decision
for future. The next part of this report is talked about the STP method in Zara which create
competitive superiority in the market as compare to rival firms.