Marketing Strategy Analysis: Zara Fashion Brand Report

This report analyzes the marketing strategy of Zara, a prominent fast-fashion retailer. It begins with a literature review of key marketing perspectives, including traditional, value-based, and postmodern approaches, highlighting the importance of value-based strategies for customer satisfaction. The report then evaluates Zara's past marketing strategies, emphasizing its unique 'zero investment' approach and reliance on word-of-mouth. It further assesses the company's current strategies, focusing on its shift towards customer-centric value-based marketing to enhance customer satisfaction. The report concludes by examining the implications of these strategies and the importance of developing healthy customer relationships, offering recommendations for future strategic directions.

Marketing strategy

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Literature review of key perspective on marketing strategy..................................................1
Evaluation of retailer past marketing strategy........................................................................4
Evaluation of retailer present marketing strategy...................................................................5

INTRODUCTION
Marketing strategy is all about the overall game plan of an organization to reach the
target people so as to turn them into customers of the goods and services which the business
render. In addition to this it consist of value proposition, information about the target customers,
different key marketing strategy and other high level of elements (Armstrong, and et.al., 2015).
The company which has been taken into consideration in order to explain the concept of
marketing strategy is Zara Fashion Brand. It is a Spanish fast fashion retailer company which
was founded in 1975 by Amancio Ortega and Rosalia Mera. In this assignment brief explanation
is being given about the literature review of key perspective on marketing strategy and the
evaluation has been done on the past and present retailer company marketing strategy. Lastly, a
brief focuses has been given on the recommendation on the future strategy that can retailer
industry can adopt.
TASK 1
Literature review of key perspective on marketing strategy
According to “ James Chen” 2018 Marketing strategy refers to the techniques adopted to
carry out marketing plan, which helps in specifying timing and types of marketing activities. In
addition to this it refers to the organization strategies which combines all of its activities and
marketing goals into one single comprehensive plan. So Zara Fashion Brand industry must focus
on developing good marketing strategy which could be easily drawn from market research.
Furthermore a company should also focuses on adopting right product mix so as to achieve the
maximum profit potential in order to sustain for long period of time in the marketplace. There
are different key perspectives of marketing strategy which can be used by Zara Fashion Brand
company and some of them are mentioned below.
Traditional marketing strategy: It is one of the broader concept under different key
perspectives of marketing strategy which incorporates about different forms of marketing style
and advertising. Specifically there are some of the traditional marketing strategy which the Zara
Fashion Brand can uses like print marketing which the oldest form of traditional marketing and it
is done in paper form. Next is Broadcasting marketing in the marketing is done through radio,
television. Whereas last one is through direct mail and telemarketing in which marketing is done
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through brochure, letter, catalogues and by delivering sales message via phone so as to convince
consumers to but the goods and services.
Value based marketing strategy: This strategy refers to an appeal to consumer value
and ethics. In addition to this it can be defined as the process of shifting from product centric to
consumer centric marketing. It means that Zara Fashion Brand industry must focuses on products
and services value based benefits and its must be aligned with ideal based values of consumer
potential and existing customers (Burnett, 2015).
Postmodern marketing strategy: It is one of the marketing key perspective strategy
which is derived form postmodern philosophical movements in which cultural propensity of
intrinsic suspension towards a global cultural narrative take place. In addition to this it can be
defined as the approach which is specifically passed through new era in branding, advertising
and through strategic branding thinking. Moreover the Zara Fashion Brand industry can take this
strategy into consideration as it focuses on customized experiences where broad market
generalization are not applied and are implemented on the behalf of branded communications.
Comparison between traditional, value based and postmodern marketing strategy:
Traditional marketing strategy is one of the old media strategy which is used for mass
advertising, communicating and marketing. It includes number of tools like books, magazines,
television, radio and magazines broadcast etc. Moreover procedure of traditional marketing
strategy can include print advertisements like billboards, flyers, newsletter etc. One of the
advantage of this strategy is that it is the easy way to reach to local audience and provider
instant delivery of a messages to a large number of audience. Additionally message generated
through traditional marketing strategy stays for a long period of time in the peoples mindset and
its has access to people who are not yet introduced to the use of internet. On the other side Value
based marketing strategy specifies about the relationship between sum of all the perceived
benefits with the effort and price required to obtain the product. In addition to this it can be
defined as the forces which drives market share and sales of the company as well as render
customers with strong incentives so as to make purchase. Further more this strategy represent
about the value proposition which the company promises to it customers in order to render set of
benefits at a given price as value is aimed directly at customers satisfaction. Whereas
Postmodern marketing strategy focuses on customized experiences as broad market
generalization are no longer used and applied by an organization (Chen, Yang and Wang, 2016).
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Moreover through this approach one to one communication is being created between real
humans, real computers, real keyboards etc. This strategy is not same as digital marketing as it is
made up of new aged media engagements which have been brought about by the developments
like that if he iPad.
Thus, overall it can be said that Zara Fashion Brand industry specifically should focuses on value
based marketing strategy as it will helps in increasing the level of customers satisfaction which
indirectly will result in overall development and growth of the industry.
Key theme emerging from review:
Emerging marketing strategies is termed to be one of the factor affecting most of the
industry and customers as different industry uses different marketing strategies so as to attract
and influence customers to purchase their products and services. Thus, taking this factor into
consideration Zara Fashion Brand industry plan to emerge a key theme that is to “develop health
relationship with customer's” by considering value based marketing strategy. As value based
strategy focuses on rendering value in the form of customer satisfaction by rendering affordable
prices to its customers. So in order to develop healthy relation with target customers, company
prefer to render best value to its customers by providing products and services as per the demand
and preferences of the customers. Therefore it helps in increasing the level of customer
satisfaction. Thus, if the customer satisfaction level increases then there take place increase in the
value of the consumer too which will helps in achieving the competitive advantage among the
competitors in the marketplace.
Implication of emerging theme on strategy maker:
Strategy maker is the one who leads the whole organization towards the development and
to achieve the competitive edge in the marketplace by developing and implementing strategies
for an organization. As the emerging them of Zara Fashion Industry is to develop healthy
relationship with its customers which is being taken into consideration by strategy maker of the
industry. So according the strategy maker plan its strategy like earlier there aims was simply to
earn profit by selling product and services in the marketplace. But when the company planned to
adopt value based marketing strategy then accordingly changes were made by the strategy maker
of the Zara industry (Ducange, Pecori and Mezzina, 2018.). Like now they specifically focuses
on the affordable prices of the customers, their choices, preferences so accordingly company
make products and services. Thus it resulted and implicated in the positive way for an
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organization, customers and for strategy maker too as it result in increase in the sales revenue,
customer satisfaction , increase in the value of the customers, increase in productivity. Overall it
resulted in the accomplishment of organizational aims and objectives on stipulated time period
by increasing maximum profit for the company.
Evaluation of retailer past marketing strategy
Zara is a Spanish fast fashion retail company located in Arteizo in Galicia. Company
mainly specialise in selling of different variety in clothing products. Zara retailer has a unique
and attractive marketing policy of Zero investment in marketing. Company was follows the
money it would have applied to promote in opening new stores. Along with this, key marketing
strategy of the company was mainly based on experience, exclusivity, differentiation and
affordability. In core, an organisation relies heavily and effectively on the word-of-mouth. Thus,
it was more essential and useful tool of marketing and support them to maximise customer base
and achieve better results easily. The company’s heritage and history: It all started at the time of establishment of Ortega
which is started to manufacture dresses in the year 1963. After the period of 10 years, he
decided to enter into business named as Zorba in La Coruna with having a budget of 30
euros. Later on, he decided to rename their business as Zara without having any purpose.
This is the stage at which the world's favourite fashion brand came into existence. Over
the period of time, Zara reaches its business operation to others nations from Spain and
accordingly established its business in Portugal. At the year 1990, Zara has decided to
expand its business into united states and some other nations such as France and some
European nations. From then to now, Zara is operated its business functions in more than
88 nations with having over 6500 stores all around the world. Strategic perspectives: It can provide an effective tool for the Zara to engage their
employees in developing a change initiative. It is also essential for the company by
enhancing product quality increasing customer satisfaction, decreasing product
development time, streamline their supply chain and implementing another initiative
(Funk, Alexandris and McDonald, 2016). Core values: Core value of Zara was classified into different aspects such as: Low level
of inventory due to fast supply chain, efficient distribution system, commitment of its
workers, flexible production system etc.
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 Core products and services: It is identify as one of the main and essential part for the
success and growth of an organisation. Core product of Zara is Clothes which is available
in different variety and operations. Company provide online shopping services to their
customers which will support them in maintaining loyalty and trust with them. Time-line: The first store of Zara opens in 1975 which is growing speedily. Recently, in
2012 company has 6000 stores and in 2015 business has approximately 7000 store
milestone. It shows company is growing easily and speedily.
Company & Market intelligence report, press reports: Market intelligence report
introduce as a relevant business information. It is mainly determined about the market
opportunity, market development, market penetration strategy which help an enterprise to
understand needs and wants of their customers or marketplace. Press report is a part of
promotion tool which is used by the Zara to communicate all important to the customers easily.
Evaluation of retailer present marketing strategy
Evaluation of current strategy used by Zara industry: Marketing strategy is essential
step which need to be taken into consideration by the strategy maker of the industry. So the
company uses value base strategy so as to influence more number of customer from all over the
world. As this strategy specifies that to render value to the customer in the form of increase in
customer satisfaction is the major concern of the company (Hvass and Munar, 2012). Thus,
accordingly company make the production of goods and services so as to increase the level of
satisfaction in the form of value to its customers. As in modern era people specifically give
references to the value it receive from the products and services they purchase rather than on the
price of the products and services. Therefore taking this preferences of the customers strategy
maker of Zara industry prepare strategy so as to satisfy customer by rendering good value for the
goods and services they consume. Therefore in order to increase the customer satisfaction Zara
industry have shifted from product centric approach to a customer centric one. Most important
of all Zara uses Segmentation, positioning and targeting strategy in order to achieve target goal
of an organization as well as to serve the growing needs of the customers. As Zara compoany
have limited stores all over the world due to which the industry uses selective targeting strategies
so as to make product available in the market. Whereas positioning strategy is being used by
Zara industry so as to highlight the customer centric approach in order to satisfy the changing
needs and preferences of the customers around the globe. As Zara knows that in modern era
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customers wants something new and updated trend and accordingly it target its customers based
exclusively on its designs. Thus, adoption of value based strategy and segmentation, targeting
and positioning strategy has helped Zara industry to flourish and to achieve successful growth in
the marketplace as well as give stiff competition to its competitors.
Current performance indicators: The reason behind Zara success is largely driven by
its ability to keep up with rapidly changing fashion trends. In the beginning itself Zara industry
founded a significant gap in the market so to keep pace with the latest fashion trend they started
offering clothing collection which are of high quality as well as affordable by the customers. In
addition to this Zara brand keep a close watch on the changes that are taking place and which are
evolving every day all over the world. So bases on latest design, styles and trends it creates new
designs so as to attract more number of customers to purchase their products and services. Thus,
ot is through its strategic ability of introducing new collection on the basis of modern and latest
designs and trends in a rapid manner which has helped the Zara to beat and to render stiff
competition to its competitors. Therefore, it quickly become the individuals favourite brand
especially for those individual who continuously keep in touch with the changes taking place in
the fashion trends (Islam, 2012.).
Market and competitors analysis: The aim of every industry is to achieve competitive
growth in the marketplace and to accomplish maximum profit for the organization. So Zara
industry focuses main aim is to earn maximum profit by increasing sales revenue taking into
consideration the fact of customer satisfaction. Thus, in order to survive in the market place Zara
industry focuses on adopting Porter Five Forces of models in order to analyse the market and
competitors analysis.
Porter's five force of model:This five forces of model was given by M. Porter in 1979. In
addition to this it helps in determining industry structure and the level of competition in that
industry (Poter's five forces of model, 2018).
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Source: Poter's five forces of Models, 2018
 Threat of entry: This force helps the Zara industry in determining how easy it is to enter
a particular industry. If the industry is profitable then rivalry soon intensifies. Thus, threat
to new entrant may be high when the industry have low amount of capital is required to
enter a market, when no government regulation and when customer switching cost are
low. So the strategy maker of Zara industry specifically threat of new entrant so as to
maximize the loss of the company and to achieve successful growth in the market. Threat of substitute: It is very much essential for the strategy maker of Zara industry to
analyse the forces which can directly impact upon industry profit and loss. On of the
factor is threat of substitute like ASOS is one of the substitute for Zara. As this forces
specially threaten when buyers can easily find substitute of its products with better
quality and attractive prices and because of which buyers easily get switch off from one
product to another with little cost. So the company must essential should analyse this
factors while identifying market analysis. Bargaining power of suppliers: One of the essential factor which the Zara industry must
taken into consideration in order to increase the market share is that the company supplier
should posses strong bargaining power quality. As this will helps the company to sell
higher prices or low quality products and services to its buyers. So in order to have strong
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Illustration 1: Poter's five forces of Models

bargaining power there must be few suppliers but many buyers, should have few
substitute of its products and supplier should hold scarce resources. Bargaining power of buyers: In order to exist in the market place it is very much
essential for Zara industry to analyse the bargaining power of the buyer so that
accordingly the company can set up their price level of their products and services. As
buyers have the power to demand lower price or higher product quality from the industry
when they possess strong bargaining power. Thus, when the customer will give lower
price for the products then then company have to suffer from loss in the form of less
revenue. So in order to minimize loss company need to analyse the bargaining power of
the customers (Mintu-Wimsatt and Winston, 2013).
 Rivalry among existing competitors: This is one of the important factors which the Zara
industry must analyse so as to give stiff competition in the market place. Like H&M
gives stiff competition to Zara. So it is essential for the Zara company to make an
analysis of the strategy its competitors uses in order to generate higher revenue for the
organization. Thus, after identifying the company should make its strategy so as to stay
for ling period of time in the marketplace.
Thus, overall it can be concluded that in order to exist and to achieve sustainable growth
in the market place Zara industry must make proper analysis taking in to consideration fives
forces of Porter's model so as to identify the market and competitors research. Thus, it will helps
in generating more of revenue for the organization.
Use of grey literature:During press release it was founded that Zara new Australian
online store has been seriously shaken the local retail market. Ad spent went on through the roof
once the retailer saw that there has been threat from the world fashion giant. Moreover it was
founded that there are eight Zara top competitors including both locally and internationally
brands. They are Iconic, David Jones, Asos, Cotton On, Surfstitch, Pretty Little Thing, Showpo
and Misguided. So taking this into consideration Zara was planing to open an online store in
Australia so as to reduce the impact of international brand entry into the online market. In
addition to all this it was also founded through press release that Zara launches Pop-up shop in
London which is specially designed to foster online sales and return. Moreover it has been
founded that in comparison to its stiff players in the market Zara makes its products available to
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its stores within just two weeks of the launch whereas it has been estimated that Turnaround time
of Zara is 3-6 months.
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