Zara's Marketing Strategy: A Detailed Market Intelligence Plan

This report addresses Zara's marketing challenges, particularly concerning target market engagement and minimal advertising strategies. It delves into Zara's business overview, highlighting its integrated retail format and quick sales cycles. The report identifies the problem of limited advertising spend and its impact on reaching the target market. A market intelligence plan is developed, focusing on secondary data research goals, including analyzing Zara's market position based on key product attributes and symbolic position compared to competitors. The research incorporates Porter's Five Forces model to assess competitive rivalry, new entrants, supplier power, customer power, and substitution threats. A primary research component involves a focus group to gather insights on preferred marketing tools. The report concludes with summaries of both secondary and primary data, emphasizing the need for Zara to enhance its digital marketing strategies and improve customer communication to strengthen its market position. The report suggests a new and creative digital strategy formulation is required in order to manage the process of marketing and target market analysis.

Table of Contents
Introduction......................................................................................................................................3
Marketing problem in Zara:.............................................................................................................5
Market intelligence plan Secondary data research goal ..................................................................6
Develop a market research plan related to target market............................................................8
Market research plan:..................................................................................................................8
Focus group composition.................................................................................................................9
Method of focus group:...............................................................................................................9
The research question - Results ..................................................................................................9
Conclusion.....................................................................................................................................10
Summary of secondary data ..........................................................................................................10
Summary of primary data .............................................................................................................10
Proposed marketing strategy .........................................................................................................11

Introduction
Marketing helps to business for approaching their target customer for their product by
effective utilisation of marketing mix strategy to explore different type of market and attain the
competitive advantages (Balis., 2020). Marketing considered as discipline involves all the
actions which opted by organisation as it helps to maintain the healthy relationship with
customers..For this report, the company has been selected Zara is premium fashionable clothing
trends to women, men, kids in offline and online platforms (Lanford, 2020). It was founded in
the year of 24 May, 1974 and situated in Multiplicity Arteixio, Spain. As the problem which
ZARA faces issues regarding with target market as many competitors with that they face
problem to not pitch the product and services. Present research is based on analysing the
different marketing strategies that are used by Zara for the purpose of targetting the right market
segment.
Business overview-ZARA:
Zara was founded by Amanico ortega in year 1975 as family business in Down-town in
northern parts of Spain. Its store in year 2019, Zara ranked 29th as global consultancy in the list
of best global brands. The core values includes functionality, beauty, clarity and sustainable.
Zara is a brand part of the retail empire inditex. Zara business model is having 18 billion euros of
sakes in year 2018. they are having a integrated retail format with quick sales cycle, they are
following an integrated retail format where customers are free to move from physical to have a
digital experiences.

(Source: A Quick Glance At Zara Business Model, 2020)
(Source: RFID technology and Integrated experiences)
Zara retail format is following a integrate online and offline store network the key element has
made Zara store successful with time that is the ability to anticipate and reach towards customer
demand. Inditex store models are creating direct access from customers with brands it has eight
key brands that are following similar retail format of anticipating, swifty adapting to customers
requests. This leading to increasing the appeal for Zara products in long run.

Marketing problem in Zara:
One of the main problem and issue that is faced by Zara is related with the minimal advertising
strategies (Abay and et.al., 2020). Zara is well known for capturing fashion trends from the
catwalk and then putting it into a global store network very quick. But unlike other fashion retail
giants it is not relying on advertising or promotional marketing that is leading to difficulty for
approaching its target market in some instances. Zara is spending only 0.3 percent of its sales on
advertising.
Target market of Zara:
The target market of Zara includes the young & highly sensitive customers towards latest fashion
trends. They posses an advantage over traditional retail as they do not define some specific target
market by segmentation of ages but lifestyle option gives them a broader market. They are
segmenting their product line by women 60 percent, men 25 percent and the fast growing
children 15 percent department (Lee, Kim and Huh, 2021) . Zara mainly focus is to create the
latest fashion trends in a time period of two weeks. They are working towards new styles that are
available on sales floor for no longer than 4 weeks.
Market intelligence plan Secondary data research goal
The present secondary data analysis will be based on several goals that will help in dealing with
marketing problem identified and analysing of various marketing strategies used by Zara to
attract its target market of customers:
 Present market position based on key product attributes
 Symbolic position as compared to other competitors
The above mentioned two attributes is going to evaluate the overall influences of various
external factors and will be analysed based on use of both secondary and primary sources of
data.
Further the analysis that will be combined with primary and secondary data analysis is going to
help in determination of a marketing strategy for Zara that can assist in the process of enhancing
its present sales.
Method of data collection:
The secondary data collection will help in focussing on primary market across UK and will
include below mention information:

In the present scenario for Zara being one of the worlds largest clothing retail brand. Shoppers
are willing to their mobile phones to analyse the way there can be display of product based in AR
enabled windows. The marketing strategy has to be focussed by creation of customer curiosity as
the powerful pull marketing strategy of Zara.
Present market position based on key product attributes
There are some of the key product attributes that is helping Zara in the process of attainment of a
key marketing position. Some of such aspects are mention below:
Shorter lead times: There is presence of shorter lead times that helps Zara in ensuring that the
stores has proper stocking of products.
Lower quantities: Zara is working towards reducing and managing the overall quantity
manufactured in particular style that helps in managing its exposure to single products and also
dealing with artificial scarcity.
More styles: Zara as a growing global fashion brands has always focussed on production of more
styles that includes 12000 product year, there are more choices and more chances of getting
right products for customers.
The main aspects that is helping Zara in maintain of it position includes that its design remain on
the shop floor for a time period of three to four weeks, this practise is helping customers to keep
visiting the brands stores (Nong, 2020) . There is constant refreshing of styles and lines that
helps in entices customers to visit the outlet more frequently.

Symbolic position as compared to other competitors
For the purpose of analysing the present market position of Zara based on its competitors
strategy some of the five forces model as mentioned below:
Industrial rivalry: Zara is facing threat from two major competitors that includes Urban
outfitters and H&M that are high street brands like Zara offering its online services. Its website is
offering a diverse image with different strategies (Ceuppens, Missault and Slachmuylders,
2020) . The website has a simplistic layout and also using neutral colours that gives it elegant
look.
Potential new entrants: The threat of new entrants for Zara is low. It is a fast fashion growing
brand but has build up a significant position that it is not easy for any new brand or start up to
provide threat to its present market position.
Bargaining power of suppliers: with globalisation as the market is continuing to grow and
becoming more liberal supplier power is weakened. The bargaining power of suppliers is quite
strong as it is not easy to switch to other supplier the brands have established a stable
relationship that is helping them, in setting the prices (Oyetunj and Onwuanyi, 2021). The power
of suppliers is moderately high which may affect the present competitive position of Zara.
Bargaining power of customers: Zara is spending only 0.3 percent of its budget on marketing
and adverting. They are mainly relying on word of mouth adverting. The customers of Zara are
having a high loyalty towards the brand but still as compared to competitors like H&M the less
marketing approach may affect the present competitive position of Zara. So there is a moderate
bargaining power of customers.
Threat of substitution: Zara is having a moderate threat of substitution as the brand has achieved
a significant position in terms of wide range and high quality of products.
Develop a market research plan related to target market
Market research plan:
In the present scenario there can be some of the effective marketing plan that has to be
created by Zara in order to cover the loopholes that are part of their present marketing strategy.
There are some of the flexible procedures that have to be adopted by the organisation in order to
achieve the required competitive advantage in long run. There are many competitors brands of
Zara that includes H&M, Louis Vuitton, Hugo Boss, Prada, Gucci. Zara is not able to create

some suitable marketing Strategy (Mäkinen, 2021). For this purpose there is a customer segment
of six respondents who are selected from the identified target segment of Zara and their view
points are to be further analysed to understanding their preferences in the context of present
changing requirement of developing effective promotional strategies.
Goal of primary research:
The goal of the initial research work is to develop detail overview of the way various marketing
strategies are required to be formulated as per the changing preferences of target market.
Focus group composition
Data collection instrument: There are mainly two sources of data collection that is primary
and secondary method. In the present study, both the methods are used to collect data about
analysis of target market (Nong, 2020). In order to gather primary information, Questionnaire
will be developed as it help in gaining in-depth knowledge about the topic. In order to collect
secondary data, various books, journal and articles is consider by researcher.
Sampling: It is defined as the process used by researcher to select sample size from the
whole population to conduct the study. The two methods of sampling are probability and non-
probability sampling method. Random sampling, which is a pat of probability sampling is chosen
and 15 random customers is selected for collecting data about the topic.
Method of focus group:
the focus or the target group of 2 respondents will be provide with a time period of 60 minutes
and there will be some key questions that are mentioned as below:
Q1. Are you aware about the Zara brand?
Q2. According to you, various marketing tools used by Zara to analyse its target market?
Q3. What are some of preferred marketing tools that can be used by Zara for the purpose of
reaching its right target market?
The research question - Results
Q1. Are you aware about the Zara brand?
Respondent 1: Yes, I am aware about Zara as a retail fashion brand.
Respondent 2: Yes, I known about Zara and its products
Q2. According to you, various marketing tools used by Zara to analyse its target market?

Respondent 1: I generally do not oversee any specific marketing tools used presently by Zara.
Respondent 2: No, I have not come across any such specific marketing initiatives by Zara
Q3. What are some of preferred marketing tools that can be used by Zara for the purpose of
reaching its right target market?
Respondent 1: Zara can focus on using digital marketing strategies for increasing the present
customer engagement.
Respondent 2: Zara can also use some print media and electronic media as we do not get
proper information about new launches or updates about the brand very often.
Conclusion
Summary of secondary data
From the secondary data there are below mentioned conclusions:
Theme 1: Present market position based on key product attributes
Zara is having a synchronized strategy between offline and online commerce. Through such
technology they are creating mobile connectivity that is linking of shopping visit and offering
access to customers.
Theme 2: Symbolic position as compared to other competitors
It is concluded that Zara is having a symbolic position but there only 0.3 percent that is spent on
its advertising strategies, so, it becomes important for this brand to redetermine suitable
marketing and promotional strategy for the purpose of extending its market position.
Summary of primary data
The primary information conclude that Zara is required to focus on development of some digital
marketing strategies as Customers are not getting timely updates and information about various
new launches that is done by Zara. For this purpose a new and creative digital Strategy
formulation is required in order to manage the process of customer awareness and attraction of
new customer base.

Proposed marketing strategy
Zara is already having presence on various social media platforms that includes twitter, you tube,
linked in, Pinterest and twitter, but there is need to enhance its market share and customer
engagement based on launching some new campaigns.
It is suggested that there can be a new marketing program in which customer will be given
choices to suggest some new designs and preferences of price range so that a new collection in
some affordable range of product categories could be launched in the coming time period. The
brand will mainly focus on creation of ease for its present customer base and at same attracting
some customers from middle income group also who are presently not able to develop the
required preference because of the high price range of its products.

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Online
A Quick Glance At Zara Business Model, 2020 [online], Available
through<https://fourweekmba.com/zara-business-model-2/>
Zara is one of the world's largest international fashion companies2020 [online], Available
through<https://www.businessoffashion.com/organisations/zara>
RFID technology and Integrated experiences, 2020 [online], Available
through<https://fourweekmba.com/zara-business-model-2/>