Marketing Report: ZARA's Marketing Strategies and Tactics Analysis

This report provides a detailed analysis of ZARA's marketing strategies, focusing on the interrelationship between the marketing function and other functional units within the organization. It examines the key roles and responsibilities of the marketing department in relation to the marketing environment, highlighting the importance of internal and external factors. The report compares the 7 Ps of the marketing mix to the marketing planning process and explores different tactics used by organizations to achieve their business objectives, including value-driven customer approaches, promotional plans, and performance management. The report also includes a basic marketing plan outline, comparing ZARA's strategies with those of Urban Outfitters, and critically analyzes key elements of the marketing function and their relationship with other units. This report contributes to the understanding of marketing principles and their application in a real-world business context.

MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Key Roles and responsibility of marketing function related to organisation.....................1
b) Roles and responsibility of marketing in context of marketing environment....................2
c)Importance of interrelationship between marketing and other functional units of an
organisation............................................................................................................................2
d) Critically analyses of key elements of marketing function and their relation with other
functional units.......................................................................................................................3
TASK 2............................................................................................................................................3
1. Comparison of 7 P's of marketing mix to marketing planning process..............................3
2. Different tactics used by organisations to achieve business objectives.............................5
TASK 3............................................................................................................................................5
1. Basic Marketing plan..........................................................................................................5
2. Marketing plan of McDonald.............................................................................................6
3. 7 P 'S of marketing mix:.....................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a process of promoting goods and services within a market to attract
maximum number of customers. It is an essential function of every business which helps in
increasing sales and profit. In this present assignment ZARA company has been chosen for
assessment. ZARA is an international clothing brand which has its headquarters in Spain.
Company has around 408 stores in 44 Countries. ZARA has revenue of around US $9 billion
annually (Hunt, 2018). This report will majorly focus on Importance of interrelationship between
marketing and other functional units of organisation. In addition to this, Comparison of 7 P's of
marketing mix to marketing planning process will be made. Different tactics used by
organisations to achieve business objectives are described briefly.
TASK 1
a) Key Roles and responsibility of marketing function related to organisation
In a company all departments are linked with one another. Every department focuses in
achieving organizational objectives. Link of every department with marketing has been shown
below.(Olson and et.al., 2018).
Marketing and finance: Both the department of ZARA are highly connected with each other
because marketing strategies are developed by manager of department only after considering
finance reports and cash flow analysis (Chernev, 2018). Decisions related to Pricing policies are
made only after knowing credit worthiness of their clients.
Marketing and production: Production departments has to focus on making quality products.
Whereas, marketing manager has to ensure consumer for giving the best products as per their
demand and need. So interrelationship between both the department helps ZARA in achieving
their targets (Kumar and Reinartz, 2018.) Products are made after knowing the needs of customer
which is to be determined by marketing department. Production house of ZARA produce after
considering wants of consumer
Marketing and research and development: These both department of ZARA are highly linked
with each other because Enquiry managers do entire investigation on taste and preference of
consumer. They make sure that products will be deigned in such a way that it will satisfy needs
of consumer. Whereas, marketing department cannot start its work before research section.
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Marketing and sales department: Every company has both the department which are
highly connected with each other because without marketing of product it is not possible to sale
products at higher scale. (Olson and et.al., 2018).
Marketing and IT: Every innovative idea is developed by it department and which is
followed by marketing while making its strategies (Kumar and Reinartz, 2018)
Marketing and HR: Every vacant position in the Marketing department is fulfilled by
hiring new people which is work of HR of the company. Training to marketing employees about
the work culture and environment is given by HR of company, so both are interlinked with each
other.
b) Roles and responsibility of marketing in context of marketing environment
Marketing environment is the aggregation of both internal and external factors which
affects the company in maintaining good relationship with its customers and swerving them in
the best possible way.
Internal PESTLE:
Value needs of customer: According to Homburg, Bornemann and Sandner (2018), It is
the duty of marketing department to analyse needs of consumers. Zara always value its
customer’s feedback and make changes in its products accordingly. Many channels are being
working for betterment of marketing strategies so that consumer’s needs can be satisfied.
Improvement of sales process: Marketing department plays the most important role in
increase sales of company by providing different strategies to sales department. ZARA has a
special coupon facility which is provided to customers to avail discount and that results in
encouraging them to visit again. It majorly focuses on providing quality products and customer
satisfaction (Olson and et.al., 2018).
Brand promotion: However, Usui, (2017) included that Marketing department focuses
on promoting their goods and services through various advertisement activities such as online
promotions, TV ads etc. They also focus on providing best design and quality products to
consumer at affordable prices. It helps in attracting more customers and develop a good brand
image in market. ZARA has a wide range of products which attracts consumers.(Kumar and
Reinartz, 2018)
External PESTLE:
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Conducting market research: Marketing manager of ZARA should ensure that research
on consumer needs and wants is conducted. It will help the organisation in increasing their value
and sales as well by giving the best quality products and services.
c)Importance of interrelationship between marketing and other functional units of an
organisation
All the departments of an organisation are interconnected with each other. Their
interrelationship helps the company in achieving goals and objectives. Every department in a
company is highly related with each other. Production department can not operate before
purchase is made by purchase section. Likewise, purchase is made after considering the
demand of consumer and that is being obtained by sales department. Functions of
departments are highly related because they all operate within the same organization.
Like when vacancy arises in any department of the company that time HR takes interview
after considering the demand and requirements of the position which is vacant in the
company. This interrelationship helps the company in achieving following areas
Helps in improving customer services: ZARA has strong inter departmental
relationship which results in providing quality services to its customers. All departments should
have good communication skills which helps in delivering the best quality services to clients.
(Olson and et.al., 2018).
Increasing efficiency: Accurate communication between the departments helps in
increasing efficiency of overall operations of company. Like for example Increase In product
demand is not known by production department, then company will lack its business and suffers
loss in business. So better communication between departments helps in increasing efficiency
(Blankson Cowan and Darley, 2018).
Building trust: Marketing department of ZARA has efficient communication with other
section of company. It helps in building trust on each other by giving reliable information to each
other. Trust issues lacks the business activities and it results in loss of the company. So having an
effective relationship between all the functional units of organisation helps in achieving goals
and targets of firm (Chernev, 2018).
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d) Critically analyses of key elements of marketing function and their relation with other
functional units.
Basic functions of marketing department is to do research on what actually a customer
wants. This will help production department in producing as per the needs of customer. This
element of marketing will involve huge cost and time. A proper analysis is required to be done
by marketing department else it will become a loss for other functional units also (NICHIT and
JAGTAP, 2018).
As per Moller (2017), Advertising is an activity which is carried out by marketing
department which will help sales department in achieving its targets of increase in sales.
Marketing department of every company is connected with every other functional unit. No
policies of marketing are formed without discussing and knowing budget from accounting
department regarding advertising expenses of the year. Marketing department is highly
connected with reasearch and development unit of the company. Whereas, (Kumar and
Reinartz), 2018, says that all units are not highly connected they have their own ideas and
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Illustration 1: Interrelationship between functional departments
Source: (Interrelationship between functional departments,2017 )

decision taking capacity. But as they all are operating within the same organization it makes
them dependable on each other.
TASK 2
1. Comparison of 7 P's of marketing mix to marketing planning process.
Basis ZARA Urban Outfitters
Product ZARA offers clothing products
for men and women. This
brand has better quality
product than Urban Outfitters.
(Chernev, 2018).
Urban Outfitters also offers
fashionable products and it has
leading luxury fashion label in
the world (Blankson Cowan
and Darley, 2018).
Place This organization has its stores
in 88 countries (David, David
and David,2017). It has the
best competitive advantage
because of its supply chain
management.
Company has its branches at
245 places. Urban Outfitters
has its headquarters in
Pennsylvania, United States.
Price ZARA has high pricing
strategy which sales the best
quality products at higher
prices. (Brassington and
Pettitt, 2005).
Urban Outfitters follows low
pricing strategies which allows
customers to buy more
products. (Mitrega, Henneberg,
and Forkmann,2018).
Promotion ZARA plans many
promotional events but it is not
highly focused on marketing
as on comparison to other
brands (Becker and et.al.,
2018.). It believes in moth
publicity and providing the
best products so that customers
Urban Outfitters has recently
focused on digital marketing.
Its Facebook account has more
than 32 million followers. This
brand has planned of covering
the world majorly through
digital media. (Hunt,2018)
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will be happy.
People It includes all those who work
for Zara (Bagozzi and et.al
2018). But it has major aim of
making their customers happy.
Urban outfitters also try to
give the best quality services
so that customers' satisfaction
can be achieved.
Process ZARA gives same standard
services to its customers which
helps the company in
increasing its sales (Usui, K.,
2017).
Urban Outfitters should learn
and carry out processes like
ZARA so that its efficiency
can be improved.
Physical evidence ZARA has the best interior
designing of its stores.
Physical environment of this
company attracts many
consumers to buy products.
Urban outfitters are low at
packaging of its goods in
comparison to ZARA. So it
should improve the same for its
future development (Hunt,
2018).
2. Different tactics used by organisations to achieve business objectives.
In order to achieve organizational objectives, a business should know what it is and where
it wants to reach in the future. Following tactics can be used by company to achieve its goals.
Value customer: An organisation must value its consumers and their needs. So that
consumer will again buy products of the company. ZARA has strategies regarding valuing its
customers by providing the best quality services (Mitrega, Henneberg, and Forkmann,2018).
Better promotional plan: Company should always change its promotional plan as per
the trends and technology. Like ZARA has adopted the best policies to reach its customers so
that organisational objectives can be achieved (Kotler, Keller, and Opresnik, 2017).
Attractive offers: To increase sales of company, marketing and sales department plans
to make different offers by providing discounts or other attractive offers. It ultimately allows the
consumer to have a look over the product and buy it. Season sale and buy one get one free or
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vouchers and coupons are example of this policy. ZARA also follow the same policy to attract
and increase it sales.
Performance management: In order to achieve objectives of the company, management
should ensure that performance of all employees are up to the mark. Better and effective
performance is really helpful in growth and success of company. (Bagozzi and et.al 2018)
Smart selling: Company should focus on selling through different channels and adopt
innovative ways of reaching to customers. It will be helpful in increase the sales of organisation
and overall objectives can be met by the same.(Mitrega, Henneberg, and Forkmann,2018).
Assigning responsibility: Employee should be given tasks after considering their
abilities and educational background. When task are properly allotted in a establishment then
work can be done properly. This will result in achieving organisation objectives. (NICHIT and
JAGTAP, 2018)
TARGETS: Company sets specific targets of sales and profits and make strategies for
the same, it helps every organisation in achieving its objectives. (Bagozzi and et.al 2018)
Monitoring: Every company has some policies which are made for to monitor every task
and employees. When every work is monitored on timely basis then objectives of the company
will be easily achieved.
Controlling : Management of ZARA has such determined in such a way that it controls
all the activities in effective manner. Every management function should be controlled by
manager in such a manner that goals of the company can be achieved.
Good distribution network: ZARA has made its distribution network in such a way that
it reaches every consume and can cover every possible market.
TASK 3
1. Basic Marketing plan
McDonald is planning to change its marketing plan. It should prepare its aim first and
market analysis is required to be done for implementing the plan. Both internal and external
factors should be analysed before making final decision. Marketing plan is made in order to
achieve expected sales and to increase it sales by 15% till the end of accounting year (Olson And
et.al., 2018). A market plan should be prepared accordingly.
2. Marketing plan of McDonalds.
Executive summary:
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McDonald is a fast food company which has founded in the year 1940. In terms of revenue it is
the largest restaurant chain. (Becker and et.al., 2018)
Mission: McDonald focusing on becoming favourite fast food brand of its targeted
customers. Its main mission is to be the favourite place of a person to eat and drink.
Vision: McDonalds has the vision of delivering delicious food to its clients and to
become a better company day by day (Blankson, Cowan and Darley, 2018).
Aim: The aim of this marketing plan is to increase sales of company by 15% from last
financial year. It is focusing on management of company and targeting the eating habits of
customers (NICHIT and JAGTAP, 2018).
Objectives: McDonalds has objective of increasing its sales by giving the best quality of
food to its customers. One major focus is to contribute towards healthy and hygienic food.
Analysis: Analysis of internal and external factors is described below (Basic Marketing plan,
2016).
Internal factor analysis: Internal analysis has been done by using SWOT analysis approach.
SWOT analysis of McDonald’s
Strengths
 McDonald's has its operations in all
over the world.
 No vendor policy is adopted, it sales
product on its own stores (NICHIT and
JAGTAP, 2018)
 Company has policy to train its
managers, who helps in achieving
overall growth of the organisation
Weakness
 Food offered by McDonald's has image
of Unhealthy because company has
large amount of calories in their food
items (Gregory, Liem Viet Ngo and
Munib Karavdic.)
 No specific advertising is made to
increase its sales.
Opportunities
 Brand name is promoted by its
expansion strategy in every country.
 High growth rate in fast food industry.
Threats
 Consumer can easily switch to different
brands. (Kumar and Reinartz, 2018).
 Target consumers cannot be achieved
due to their change in eating habits and
taste of food.
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External analysis: This is done by using PESTLE analysis.
Particulars Explanation
Political Government taxation policy affects the pricing policy of McDonalds. (Usui,
K., 2017).
Economic McDonalds has affordable pricing policy which helps it in stability even at
low economic conditions (David, David and David, 2017).
Social McDonalds carry complete research of the society and plans it food items
according to the taste and preference of the country and its culture
(Blankson, Cowan and Darley, 2018).
Technology McDonalds is adopting every new technology to make its food items. It
helps in fast delivery of food to consumers (NICHIT and JAGTAP, 2018).
Environmental Company has adopted so many social responsibility plan of action and
many environmental free policies are adopted by it.
Legal McDonalds has always considered every taxes and law of the country and
consider it before making any decision.
Segmenting, Targeting and positioning:
Segmentation: It is the first step in which different types of customers are identified.
McDonalds uses these approach and divide on the basis of following criteria
 Geographical area
 Demographic
 Behavioural
 Psycho-graphic
This is the basis for segmenting where McDonald uses demographic area as a base for
segmenting. Where it divides population on the basis of area (Usui, K., 2017).
Targeting: Products are being sold after targeting a specific group of people. McDonald
make products after considering taste and preference of targeted consumer (Chernev, 2018).
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Positioning: It is defined as choosing to market mix for the appropriate targeted market
segment. Positioning matrix says that some groups are more appropriate than others (David,
David and David, 2017).) McDonald believes in timely changing positioning of products.
McDonalds has always believed in giving food at a low cost.
Evaluation and control:
Entire process can be evaluated after checking details and its impact on the company.
Every plan has its pros and cons so it should be evaluated properly before implementing it into
business (Becker and et.al., 2018). McDonald's needs to monitor and measure its sales and profit
within the market. Customer feedback and reviews can also be used in the evaluation process in
order to determine the performance of the business
Porter's Five Forces Model:
Competitive rivalry or competition – It is high, McDonald's faces very high
competition due to many fast food restaurant are set up in every city (Gilligan and Lowe, 2018)
Bargaining power of buyers or customers – It is also Strong because due to availability
of many fast food restaurants it is easy for consumer to switch to another brand (David, David
and David, 2017).
Bargaining power of suppliers – It is Weak in nature, large number of suppliers are
available in the market which makes it weak for the company (Usui, 2017).
Threat of substitutes or substitution – It is strong, there are many products like
bakeries' product or any other delicious cuisines' food available in the market. It is easy to switch
from McDonald's due to low switching cost (Gilligan and Lowe, 2018).
Threat of new entrants or new entry – Moderate Force because it costs high to develop
a brand like McDonald's but on the other side, low capital cost businesses also gives tough
competition in this world (Becker and et.al., 2018).
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