Marketing Report: Analyzing Zara's Strategies and Marketing Mix

This report provides a comprehensive analysis of Zara's marketing essentials. It begins by explaining the key roles and responsibilities of the marketing function, emphasizing branding, distribution, marketing ability, product strategies, corporate communication, innovation, and budget management. The report then examines the relationship between the organizational context and marketing duties, highlighting the importance of customer service, efficiency, trust, and conflict resolution. A detailed discussion of Zara's marketing mix follows, including product, pricing, promotion, and place, along with an analysis of physical evidence and processes. The report compares Zara's marketing mix to H&M's and concludes with a focus on Zara's marketing planning strategy, including its mission and vision. The report provides valuable insights into Zara's approach to marketing, making it a useful resource for students and professionals alike. The report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1 Explain the key roles and responsibilities of the marketing function....................................1
P2 Relation of organisational context with duty and obligation of marketing...........................1
LO2..................................................................................................................................................1
P3 Marketing mix of Zara...........................................................................................................1
LO3..................................................................................................................................................4
P4Marketing plan for Zara..........................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing essentials are the various tools which help distinct organisations in improving
their quality and total business. Through these instruments management is capable of taking
various critical decisions. Zara is a Spanish based fashion brand which was founded in 1975.
Following report is prepared on how marketing is important for cited company in which roles
and obligations of marketing functions are discussed in detail ( Laucaster and Massingham,
2010Fader2012). Thereafter, the study will enhance readers knowledge about concept of
marketing mix and how it is different for Zara and H&M. Lastly, report will conclude with
planning strategy of the given industry which includes mission vision of Zara.
LO1
P1 Explain the key roles and responsibilities of the marketing function
ZARA is an international brand dealing in fashion products. As cited company has
various competitors this industry faces maximum competition. Therefore, it becomes important
for ZARA to take an important actions towards performing its marketing function. It is a process
through which customers are made aware about products and modifications done by different
enterprise in their services. It also helps enterprises to sold their products in market. It can also
be called as a continuous process as it is practised till the business continues with a view of
providing clients needs. There are variety of functions which are performed by marketing team
of Zara like: gathering data from surroundings, marketing planning, Product designing and
promotion, standardisation and grading, packaging and labelling, branding, customer support
service, pricing of product, promotion, physical distribution, transportation, storage and
warehousing. Each function performed has their own value.
Branding – With increase in customer awareness demand for more branded products has
increased. Through advertising company work on building good brand value and creates
knowledge among distinct customers. It can also be done through various other sources like
social media, internet personal promotion etc.
Distribution – Production of products is not just important. It is of more concern that produced
goods are successfully transferred to place where it is actually required so that consumption of
same can be done. It is a key role performed by merchandising authorities so that total sales can
be improved.
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Marketing ability – In order to produce competitive products it is necessary to have adequate
knowledge about external surroundings. This information helps cited company in taking various
decisions. This is another responsibility of marketing team to give right data to management of
ZARA so that it can plan its activities accordingly.
Product stargates – Before preparing final good it is necessary it is better I various
specifications related to same are analysed carefully so that final product can cover maximum
market. Through the process of commerce factors associated with any product are studied in
more detail.
Corporate communication – for any organisation interaction between different units is very
important. Not only within business but external interaction is also very important so that
company can communicate with its customers. This helps in getting feedbacks from clients
which are further utilised for improving flaws from companies product.
Innovation – Clients appreciate product modifications. Whenever changes are done it excites
clients which further lead to increase in demand. Marketing department work towards making
improvements in existing material so that customer interest can be maintained in particular
brand.
Budget management – Another role of development department is to plan required budget for
different accounting years so that concern administration can stretch their activities with a vision
of accomplishing those targets.
Calculate ROI – Investments are done in different forms like time, raw material, money etc.
Marketing management helps in taking variety of actions towards allocation of each according to
distinct situations.
Packaging and labelling – In order to avoid situations like breakage, damage etc. it is important
that labelling and packaging of particular item is done in most effective manner.
P2 Relation of organisational context with duty and obligation of marketing
Discussed above were the various roles and responsibility of marketing management
which were performed in cited organisation. Its relation with wider concept can be understood
as it helps in increasing efficiency with an effective marketing strategy. Zara is successful in
achieving greater market through its distinct manner of operating at various levels. By adopting
various techniques Zara is successful in reaching to maximum customers It takes good benefit of
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various competitive advantages like product planning, customer loyalty, unique designs etc. it
helps cited company in doing its product positioning for various age groups.
There are distinct managerial functions which are performed in Zara like management of
finance, human resource and IT sector. Good communication needs to be set up among these
distinct functions so that co-ordination can be well settled between them. Decision taken by each
department has their direct or indirect impact on total functioning of organisation therefore it it is
necessary that each perform their duty with most care.
Customer service – In case of having poor communication between distinct departments quality
of the ultimate service suffers the most. If related functional heads do not communicate
effectively than loss of information will take place which may give adverse results to the
management.
Efficiency – if various interrelated department remain unaware about progress of concern section
than it may harm effectiveness of other function.
Develop trust – when transparency is maintained in different departments it promotes faith
among them. When every member of distinct section knows that no quality information is hidden
by him than it creates a health environment in surroundings which further lead to increase in
overall efficiency of en enterprise. Much time is also saved as elimination of cross checking time
is done when people trust each other.
Customer service – In case of having poor communication between distinct departments quality
of the ultimate service suffers the most. If related functional heads do not communicate
effectively than loss of information will take place which may give adverse results to the
management.
Efficiency – if various interrelated department remain unaware about progress of concern section
than it may harm effectiveness of other function.
Conflict – breakdown of communication may lead to situations of misunderstanding in
organisation. This may further lead to arguments and therefore the whole business will get
affected.
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LO2
P3 Marketing mix of Zara
In order to come with a best product it is important to first know what the present trend in
market is. It is a very important process as this helps cited company to come with most
demanding item at suitable price (Lamb Hair and McDaniel, 2010). Marketing mix is a
combination of numerous tools which are utilised by various organisations to continue their
business in given targeted surrounding. It consist of various elements like: product, promotion,
place and price. Later with increase in its outcomes three more Ps were added to the same which
are promotion, physical evidence, procedures. Study of each help much to Zara in taking various
decisions which are supported with evidence or past record of trends. Company is selling clothes
and other fashion. It has its stores in number of countries all over the world which are operating
with a prime objective of earning more profit and acquiring maximum market. This organisation
produces products for every segment be it male female kids or youngsters therefore it is difficult
to understand what exactly is demanded by them so that accordingly production can be done.
(Boschetti and Massaron, 2016). Elements of marketing mix is given below in detail which
shows how they are utilised by Zara in taking effective decisions.
1. Product – Zara is known for producing unique fashion items for its customers. It helps
cited organisation in maintaining interest of potential consumer in products produced by
them. This company is most effective in delivering customers’ needs within a very short
period of time as it responds to clients as soon as possible. Its strategies are different from
other units which are dealing in same field as it does not outsource any of its core
function which helps it in keeping control on all of its activities (Babin and Zikmund,
2015). It does not keep the same product for more than four weeks in same store as is
considered as a non-trendy item and therefore removed from stock. Hence in order to
produce item which can be preferred by more consumers designing team of cited
company take various efforts to come up with what is best. (Draelos, 2010).
2. Pricing – As there are many competitors for cited company it is important that price of
its products should be such that it can be accepted by all. For this Zara follows the
concept of producing products with a control over every activities of production process.
Depending upon location it maintain difference in its collection as few stores keep only
premium products (Hugos, 2011). It is because its brand value is very high and with
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having competitors like Hugo boss. Affordable products are kept at stores where
customers of mix economy are observed (Raj, Walters and Rashid, 2012).
3. Promotion – This tool of cited company differs from other in same field as it invests zero
money in advertisements. It saves its promotion cost and uses same for its expansion. It
uses exclusivity, experience and differentiation as a promoting tool. Unlike others, it
relies more on mouth publicity (Hauer, 2011). It takes care of those targets customers
who are most brand conscious. Enough attention is given to store layout and designing so
that it can also give a positive image to customers. Management of cited company makes
sure that all those which are working with the enterprise are well behaved and dressed
smartly as this also affects total brand image (Thomas, 2011).
4. Place – It is a vertically integrated retailer and its products are unique in nature. It
fabricates, distributes and designs its products on its own. It is presently located in more
than thirty different countries. Most of its store are run by company itself which makes it
same for all customers using facilities at distinct locations (Burke and Friedman, 2011 ).
It uses the concept of keeping theme based collection promoting a particular colour.
Walls of stores are covered with mirrors, well lit showrooms. Its main strength is
considered to be the culture which is followed in all its distinct location. Zara mostly
recruits new generation employees and provides them training on how to give effective
results (Gummesson, 2011). It is the most leading company which comes with various
new patterns every month that in turn also contributes in its brand image. As customer
satisfaction is high Zara keep prices according to itself and is less influenced by other
brand products.
5. Physical evidence – Delivering services to right place is also of vital importance. It
chooses locations where accessibility of customers is easy and also where it gets enough
space to display products (Wiid and Diggines, 2010).
6. Process – It gives its maximum attention on how process of product distribution takes
place. No compromise is done with quality of product as customer satisfaction is of the
most importance.
7. People – Most effective element of marketing mix is person who is concerned with a
particular service. Zara makes sure that employees working at stores communicate with
customers with respect. For this selection of distinct workers are done with utmost care.
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Comparison between marketing mix of Zara and H&M:
Basis Zara H&M
Product Unique and of high quality Resemble with other
Place Vertical intergeneration Mostly get work done through
outsourcing
Price Competitively high Less price products
promotion Give delivery of products by
taking less lead time.
It takes longer time period to
give its services.
Physical evidence Has its stores in more than
thirty countries
Has comparatively less outlets
People Smartly dressed and well
behaved employees
Less importance to appearance
is given while recruiting
LO3
P4Marketing plan for Zara
Basic Marketing Plan for ZARA
Executive summary
Zara is one of the world's most successful retail store. Owner of Zara as well as founder is
Amancio Ortega, is the third richest man in the world. This company now operates in approx 88
countries and runs approximately 6500 shops and with seven other brands. Its main products are
clothes, shoes, cosmetics and accessories, for all men, women as well as children (Cavusgil and
et.al., 2014).
Mission of Zara
1. Its main aim is contributing in societal development and growth. Their target is to
provide unique designs weekly to their buyers.
Vision of Zara
 They are in target to satisfy their customer needs and manufacture good quality material
at reasonable prices.
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SWOT analysis:- SWOT can be defined as an abbreviation which means Strength, Weakness,
Opportunity and Threat.
Strength-
 This organisation is popular by its brand name world-wide.
 Market good quality product at very affordable value.
 Extremely trendy as well as offers new designs on weekly basis.
Weakness
 Enterprise do not use any promotional strategy and no advertisement policy for creating
awareness in retail outlets.
 High competition for Zara than other brand. The cloth finds are mostly black and grey.
Opportunities
 The firm can came up with bright colours in cloth and can explore to other market sector.
 Digital and e-commerce areas should be tapped by Zara (Boag, Zikmund and Babin,
2012).
Threat
 A major threat is when economy downturns or sudden change in policies is done by
regulatory bodies.
 With increasing competition, cited company faces threat of losing potential customers.
Strength Weakness
 World popular brand
 good quality material
 Less promotional activities
 selective colours are
utilised
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Opportunities Threat
 Try to enter in digital
marketing
 Explore untapped areas
 Competitors
 danger from judicial
PESTEL analysis
 Political components: These factors are related to government directing thatany activity
does not go unnoticed by government. As every firm is working according to policies
made by ministerial. So greater danger to every association is from sudden change in
constitutional practices or principles (Papasolomou and Melanthiou, 2012 ).
 Economical elements: Organisation should take into consideration the exchange rate,
monetary growth, interest ratios, inflation, deflation etc. As it does not sell to lower class
so it is important for them to know the customer per capita income to buy the product.
 Social factors: The main focus is on social culture environment. As different customers
have dissimilar taste and preference according to them products and services should be
rendered.
 Technological characteristics: With the coming of new and better technology the
organization efficiency and effectiveness has been increased. With development of new
techniques cited company increased its product quality by doing better production.
(Lipsman and et.al., 2012 ).
 Legal parts: As Zara is a multinational brand, so they need to take care about all laws
which are practices should be forensic.
 Environmental aspects:Firm needs to focus on materials which are ozone-friendly and not
harmful for environment.
Marketing plan of action
1. Marketing penetration strategy - Zara uses effective marketing plans by placing new
stock frequently, through which customer can be called back again and again to have a
look upon latest design every week.
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2. Marketing development policy - Markets are set up by Zara in different location across
the world. It uses best plans for growth and expansion in divergent regions. The shopping
centres are located in china, Belgium, France etc.
3. Product enlargement scheme - This retail store produces product very quickly with the
latest style and therefore, known as fastest supply mart. With this the hoard has super
business team which monitors the external development of every particular region.
Diversification schedule - The organization can be divergent in its working in dissimilar areas
and can tap to different customer group. It can use the online schemes for supply of its stock and
can explore to the areas which are lacking behind (Durmaz, 2011).
Budget – It is the maximum value set against different projects so that the total cost can be
controlled. It also helps in doing the evaluation of whole work done.
Marketing budget
Particulars
1st
year
2nd
year
3rd
year 4th year 5th year
Initial money 20000 2500 4800 4200 5600
Investment 17500 15200 15800 14400
Total 20000 20000 20000 20000 20000
Marketing
expenditures
Advertisement 7000 8000 6000 5000 7000
sales promotion 2000 2000 3000 2000 2000
Direct marketing 3000 1500 2500 2500 1500
digital marketing 3000 1000 2000 2000 2000
Social media 1000 1000 1000 1000 1000
printing 500 700 300 400 550
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Events 1000 1000 1000 1500 1000
Total 17500 15200 15800 14400 15050
Available balance 2500 4800 4200 5600 4950
Action plans
 Short term: Now for further it tries to enter into the Italian market which is situated in
Europe. Recently the store has opened its branch in Milan. With this now Zara needs to
keep a track on research and development areas for better products and services.
 Long term:The long term plan of the entity is to expand in future by opening more stores
in various locations. The reason behind why Zara has successful journey is customer
satisfaction and product variety.
CONCLUSION
From preceding study it can be concluded that marketing is an important function for any
organisation. It helps in delivering goods and services to distinct potential customers. Through
the process of merchandising company is provided with various quality information that may be
required by any enterprise before taking several decisions. Preceding study shows how the same
concept helped ZARA in establishing its products into market.
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