Marketing Management Report: Zara Clothing, Competitors and Strategies

This report provides a comprehensive analysis of Zara's marketing management, focusing on its background, market positioning, and unique selling proposition. It begins with an introduction to marketing management and its application in the retail industry, specifically highlighting the case of Zara. The report delves into Zara's background, market positioning, and unique selling proposition (USP), exploring how the company differentiates itself in the market. It then conducts a marketing audit, assessing overall market attractiveness and potential for growth. Furthermore, the report includes a competitive analysis of three industry competitors, evaluating their strategies and market positions relative to Zara. The analysis covers key financial metrics, market share, and segmentation strategies. The report also examines Marks and Spencer, providing insights into market positioning and financial performance. Overall, the report aims to provide a detailed understanding of Zara's marketing approach and its effectiveness in a competitive market.

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................1
1)Background statement, market positioning and unique selling proposition ...........................1
2)Marketing audit,overall market attractiveness and potential for market growth.....................5
3) Competitive analysis of three industry competitors...............................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing management is the management of all the activities and task so that they can
sell goods to customer by the seller (Baker and Saren, 2016). Through this goods can be sold to
various users. Hence as a result they can earn more revenues and can enhance the market share.
It also results in maintaining of good image in front of users and in market. Project describes
about the Zara clothing who distribute various clothes to various customers. It was found in 1975
in U.K. Assignment describes about the background of the company, market positioning and
present unique selling proposition related to the company. It also describes about the marketing
audit and overall positioning and unique proposition. It also further describes about the
competitive analysis about the competitive analysis of three main competitors. It further explains
about the new marketing mix so that there is no gap between present marketing strategy and
external environment.
1)Background statement, market positioning and unique selling proposition
Marketing management includes various steps so that manager can manage all the
activities and task in the company. Through this they can accomplish their targets and goals. For
retail industry it is very crucial that they can create unique and suitable strategies so that they can
attract many users. Through this they can attract many user's. This also helps them in creating
good relationship with people. Through these strategies and policies they can create unique and
distinct image in market as well in front of all people. Through these policies they can easily
increase their sales and revenues. Marks and Spencer is largest retail firm. It distributes various
retail and household items to customers.
Background of retail industry: In this country retail sector is very crucial as it
contributes to growth and increasing of revenues. Through this it leads to growth and
development of firm. It has different objectives but most important objective is to superior
quality of goods and services to all users. Thus they can target many user's in minimum time.
Hence they can earn more revenues. Marks and Spencer is retail industry so hence they add
many unique and distinct strategies so that they can earn more profits. By using of marketing
management they can monitor the demand and requirements of all customers and then it creates
products and deceiver's services. Thus it can increase the level of satisfaction of target market
(Baker, 2016). Through this they get different advantages. They not only earn more revenues but
they also provide employment opportunities to various people. Thus it can increase the level of
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employment in country. These industries are formed so that they can fulfil necessaries and
satisfy all persons. Main goal is to deliver luxury services to people and earn more revenues
(Charter, 2017). They modify their strategies and plans by evaluating customer needs and
external factors. Thus they can easily expanding themselves through online application and sites.
Hence as a result they can easily expand themselves and can earn more revenues. This also leads
to successfully running of firm. It also leads to growth and success of the economy. For example
Marks and Spencer is also retail firm which can easily increase their sales, earn more revenues
and leads to growth of economy.
Market positioning: In this step marketing manager evaluate the customer needs and
perception and then creates the product. So hence firm creates different strategies and polices so
that they can position as good brand in the market. They can create different plans and strategies
so that they can give huge competition and they can position as unique and distinct brand in the
market. Thus they can create good reputation in target market. Hence Marks and Spencer can
easily accomplish the objectives and goals.
Illustration 1: Bernard Matthews
Source: Bernard Matthews, 2015
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Marks and Spencer is multinational retail company which was found in 1884. For this the
firm has to create different marketing strategies and policies so that they can maintain unique and
distinct position. It is very difficult for the organization to create distinct position in the market
and in minds of all customer's. Their market share was approximately 55 of total market position
in Turkey. For this they try to increase their market share in different share and regions. Hence
Marks an Spencer sold good and superior quality of products to various user's. They sold their
products at less costs. Thus they can easy attract many consumers. Through this they can create
unique position and can give positive impact on various locations. They also tries to produce
different and distinct services to user's. Thus as a result they can easily increase their revenues
and can increase their market share.
Due to most impact policies and strategies they can easily increase their market share and
they can give huge competitor to the other competitive firm's. These activities and tasks can
create unique plans and policies and thus they can maintain effective market share. Their market
was cheaper and division of the organization has improved quality. Thus organization starts
delivery of effective goods and services (Ford, Honeycutt and Joseph, 2015). Due to this they
can create unique market positioning and they can maintain good status and goodwill in the
market as well in minds of all customer's. The general merchandiser had not increasable as they
had increased in past few year (Erevelles Fukawa and Swayne, 2016).
Income Statement
Revenue (ttm) 12.25B
Revenue Per Share (ttm) 7.62
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Quarterly Revenue Growth (yoy) 3.20%
Gross Profit (ttm) N/A
EBITDA 2.06B
Net Income Avi to Common (ttm) 384.9M
Diluted EPS (ttm) 11.4
Quarterly Earnings Growth (yoy) 501.20%
Balance Sheet
Total Cash (mrq) 631.6M
Total Cash Per Share (mrq) 1.2
Total Debt (mrq) 7.19B
Total Debt/Equity (mrq) 96.08
Current Ratio (mrq) 1.69
Book Value Per Share (mrq) 3.78
Cash Flow Statement
Operating Cash Flow (ttm) 788M
Levered Free Cash Flow (ttm) 762.56M
Unique selling proposition: This is a different statement through hiccough company can
maintain unique position in the market as well as in minds of user ((Heding, Knudtzen and
Bjerre, 2015). They use different strategies and policies such as quality servicing and cost
effective techniques and unique promotional tools so that they can increase their sales
(Homburg, 2016). Thus they can easily increase their sales and can increase the market share.
Thus Marks and Spencer use different and unique tools and techniques so that they can attract
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many customers and can easily enhance the market share. Firm can use different methods. The
methods of Unique selling proposition are:
 Requirement of Unique selling proposition: Organization has to monitor the
procedures and techniques so that they can increase the market share and they can easily
enhance market share. Thus they can maintain competitive advantage over other
companies. After evaluating market and customer needs they can create unique methods
and strategies so that they can maintain unique position and they can maintain good
image in front of people and in the market.
 Create impactful strategies: After evaluating the market and monitoring the customer
needs then they can rate different and impactful strategies so that they can maintain good
and unique position in the market and in minds of all user's. This also helps the company
to increase their brand loyalty. Marketing manager give their suggestions so that they can
create unique positions and can increase the revenues.
 Build an ideal customer: Marks and Spencer is British multinational company that
delivers superior quality of products to customers at reasonable cost. For this they have to
create strong and positive image in minds of all the customers . Thus can only be created
if firm builds strong relationship with the customer's. They delivers product according to
user's needs and wants. Thus through this customer gets different advantages and hence it
leads to growth and development of Marks and Spencer.
 Leverage uniqueness: Company has to deliver good quality of products to various user's.
Thus they can easily convince many user's and can create unique positioning in the
market. For this they had to provide cost effective services to all user's and thus they can
easily attract many customers. Marks and Spencer can create different policies and
strategies so that they can deliver superior quality of products and services. Hence as a
result they can easily maintain unique position in the market as well as in minds of
customer's (Homburg, Jozić and Kuehnl, 2017).
 Implement effective ideas: Marks and Spencer has to create unique and different
policies so that they can create unique and innovative ideas and thus they can easily
capture many user's in minimum time. They also use different strategies and unique
approaches so that they can maintain unique position in the market as well as in minds of
all user's (Hutchinson, and et. al., 2015).
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2)Marketing audit,overall market attractiveness and potential for market growth
Business firm have to evaluate all factors which can impact the organization. Through
this they can easily monitor the customer needs and wants of all user's. Thus as a result they can
maintain unique position in the market. Thus they can create various strategies and thus they
create various policies and tries to deliver the luxury clothing. This can be only be done by
evaluating the market needs and wants so hence they can perform proper research and then it can
create various policies to target the young people. They can also use various auditing methods
through which they can easily sell many products in the market. Thus the can make changes in
the methods and techniques. Thus as a result they can easily create unique position and they can
maintain positive image in minds of all young people. Marketing management process helps in
targetting many people and thus they can easily generate more revenues. So hence Marks and
Spencer performs proper research and audit so that they can get knowledge of every factors and
elements. The elements are described below:
Market growth rate: Marks and Spencer s oner of the largest retailer firm. The firm can
create different and unique changes approximately from 2010 to 2017.Approximately they had
earned profits of around 10.5 billion British pound in U.K. and in many international countries.
In month of march in 2018, growth rate if divided of around 2.40%. Through earning of huge
profits and revenues Marks and Spencer can establish new outlets in many different countries.
Through their products and services they can cover a huge market area (Johanson and Mattsson,
2015). Through these, they can create various unique and suitable methods so that they can
maintain unique position in the market. Through this they can maintain strong relationship with
all customer's. Thus they can easily increase the market and they can increase their market share.
Year ended Turnover (£ M) Profit before tax (£ M) Net profit (£ M) Basic eps (p)
01/04/17 11111 888.3 989.35 6.2
02/04/16 1200.4 499.8 452.4 25.9
28/03/15 13225.4 700 881.7 39.7
29/03/14 12309.7 680.4 606 55.5
30/03/13 12635.8 665.3 459 30.2
31/03/12 10000.3 770 550.6 62.5
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02/04/11 9783.6 735.5 780.3 42.8
03/04/10 10000.5 730.9 800 89.5
Market share: Marks and Spencer delivers their services in different countries. So thus
they have approximately of 976 stores in many countries. Company uses new and creative ideas
so that they can deliver superior quality of clothes to various customer's (Kumar and Reinartz,
2018).
Market size: In Marks and Spencer there are different employees around 85000. They
perform in a better and unique manner. Thus they can easily accomplish the objectives. Their
total net income in 2017 is around 115.6 million euro. Their operating revenues are 700 million
euro in 2017.
Market segmentation: Marks and Spencer's divides the whole population in
demographic basis such as age,social class and gender etc. Thus they can generate various
strategies and policies so that they can deliver unique clothes and food to various customer's.
Thus as a result they can easily maintain unique position in market. Thus they can easily target to
various user's.
Market attractiveness factor's: Company has to evaluate different elements and factors
in the market so that they can maintain good and unique position in the market. They can
evaluate 3 elements which are market monitoring,evaluation of competitors and market forces.
There are other factors such as growth size,buying power and different competitors,evaluation of
various customer's and they also monitor the sales in the company.
Market and sales forecasting analysis: In 2017, Marks and Spencer can reduce the
sector of home clothes and can also reduce the clothing products. Thus as a result they tries to
increase their sales. But they found that there is reduction in 14% of income level of all people.
Thus it results in reduction in sales and it can directly increase the cost of employment.
Supply chain analysis: There are the techniques so that they can maintain different techniques
and can deliver good quality of products to various customer's (Martín-de Castro, 2015). They
need different supplier so that they can maintain unique position in market. Marks and Spencer is
biggest retail company which have 250 million customer's who can visit various stores and
shops.
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Market trends: It means the current positioning in various competitors in the market. In
2017 there are various customer's who are purchasing products of Marks and Spencer (Mason,
Kjellberg and Hagberg, 2015).
Physical distribution channel: Marks and Spencer uses different distribution channels
and they can also attract many users. Hence as a result they can use various promotional
techniques such as sales promotion,advertising,direct marketing,word to word mouthing and
public relations. They can also use various physical channels through which product can be
delivered to various customer's. For example they can utilize various channels such as order
processing,packaging ,transportation and other techniques.
Market attractiveness factors:
 McKinsey's model: This tool helps in evaluating various techniques such as strategy,tools
and techniques, system,employees and different skills. Through this firm can easily
accomplish their goals and targets. It has different steps:
1. Strategy: Marks and Spencer has created many unique strategies and policies so that it
can sell superior quality of products to many user's. Thus they can give huge competition
to other companies.
2. Structure: It is the chart of the organization. Thus they can receive various information
and data by taking it from this chart. Hence as a result they can maintain unique
positioning in market.
3. Systems: System are different procedures and methods through which they can operate
various activities and tasks. Thus they can take different decisions. Hence as a result they
can take different decisions.
4. Skills: This is the process through which there can be different employees performing in
the firm. They can evaluate different potential of all employees.
5. Staff: In this number of workers working in the firm can easily be determined.
6. Style: In this organization can be controlled by the manner of the organization. Thus as a
result they can easily accomplish and hence they can evaluate the reactions of all
employees (Moutinho and Vargas-Sanchez, 2018).
7. Shared value: In this step of McKinsey's model all employees can easily perform all
activities and tasks. Thus as a result they can easily evaluate various activities and tasks.
Through these rules and regulations employees can easily be instructed and guided so
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that they can perform all activities and tasks in better manner (Tomczak, Reinecke and
Kuss, 2018).
3) Competitive analysis of three industry competitors
Company has to evaluate the competitor plans an polices so that they can beat the
competitors. Thus they can create unique and effective strategies so that they can beat the
competitor. Marks and Spencer is biggest retailer company that faces many competitors such as
Tesco and Aldi. These both firms are the multinational firm's Hence as a result they can easily
maintain unique positioning in the firm. For the purpose or evaluating the competitors they can
use the porter's 5 forces model and this is used so that they can monitor the market. Comparison
of Porter's 5 forces model of 3 organization are:
Basis Marks and Spencer Aldi Tesco
Threat of new entry Marks and Spencer
faces give competition
through different new
companies in the
market. Marks and
Spencer delivers the
superior quality of
clothes to various
customers. Thus they
can maintain unique
and good position in
the market as well as
in minds of all
customer's. Thus threat
of new entry is very
low and it has less
effect on the Marks
and Spencer.
This is the medium as
company requires
huge market to enter
the market. No other
competitor has large
capital and can easily
enter in the market.
Some companies s a
threat for the company
but it has yo crate
different and unique
strategies so that they
can maintain unique
positioning in the
market and can give
competition to other
firm's.
Tesco faces
competition from
many companies. Thus
as a result they provide
effective and efficient
strategies to various
user's at lesser costs.
Through this they can
easily capture many
users in minimum
time.
Threat of substitute Substitute products has In this power of Threat of substitutes
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decrease the customer
needs and demand.
Thus as a result they
can Marks and
Spencer cannot
maintain unique
position in the market.
As many other
competitors are
providing the products
at lesser costs so hence
it faces many
competition and they
cannot create unique
positioning in the
market.
substitutes is very
high. As there are
different to substitutes
which are delivering
of the goods and
services at lesser costs.
In this number of
competitors are very
low as they provide
good quality of
products.
are very low fir the
Tesco a there are less
other competitors
which are providing
good quality of
products. It provides
good quality of
products and services
to different customers
and other user's.
Power of customer's It is high as there are
different customers
who can deliver good
quality of products a
lesser costs. Thus as a
result they can it has
drastic impact on user
as they deliver quality
of products at high
costs. So it is difficult
that classes can easily
afford these products.
It is high as there are
different competitors.
In this customers are
not loyal to the brand
as they only charge
high quality of
products at lesser
costs. A different
companies charge
different prices so
hence user purchase
these products which
are available at lesser
costs.
Tesco delivers
efficient strategies so
hence they can
determine maintain
unique position in the
market and in minds of
all the customers. Firm
is using most cost
effective strategies so
that they can deliver
good quality of
products to customers.
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