Marketing Essentials: Comparison & Evaluation of Zara's Plan

This report provides a comprehensive analysis of Zara's marketing strategies, comparing its marketing mix with Forever21 and evaluating its marketing plan. The analysis covers the 4Ps (Product, Price, Place, Promotion) for both Zara and Forever21, highlighting their differences in approach. Furthermore, the report details a marketing plan for Zara's new perfume, "Rose P&S," including a SWOT analysis, objectives, and various marketing tactics. The plan focuses on leveraging social media for promotion, offering the product at an affordable price, and targeting a younger demographic. Budget allocation and sales forecasting are also discussed, projecting a 15% profit increase and a 10% market share gain. This report offers a valuable insight into Zara's marketing strategies and their potential impact on business objectives.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Covered in power point presentation. ........................................................................................3
TASK2.............................................................................................................................................4
P3 Comparison of Marketing mix of two different organizations to achieve business
objectives. ...................................................................................................................................4
P4Produce and evaluate the marketing plan for the organization. .............................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...................................................................................................................11

INTRODUCTION
Marketing means communicating with consumers through various channels of marketing
regarding the products why they should choose that particular product. The company promotes
the brand through advertising, use of social media and so on. They choose a particular area
where they will promote their brand, where people will be more likely to purchase that brand.
The below analysis is based on Zara. It is the world largest fashionable brand which was founded
by Amancio Ortega in 1975. It operates in around 88 countries and is the most reputed brand
which has set high standards. The below report is based on marketing mix of different
organizations through which organization has achieved their goals and it also includes a
marketing plan.(Blythe and Martin, 2019)
TASK1
Covered in power point presentation.
TASK2
P3 Comparison of Marketing mix of two different organizations to achieve business objectives.
Marketing mix means the plan which organization follows to promote its products, build
the brand image. It is done by the company to generate more profits, achieve business objectives.
To create marketing mix the company makes use of 4Ps which is product, price, place and
promotion. Every brand needs to be promoted and company has to do it according to these
elements. The below comparison is done on Zara and Forever21. They both are different brands
but belong from the fashionable industry and follows different marketing mix.(Perreault, 2018)

Basis Zara Forever21
Product It is the most fashionable
brand which deals in various
products for both men as well
as women. It offers products
like jeans, tops, bags and
acessories.
It is a global company which
sells products like jewellery,
footwears, clothes for both
men and women.
Place Zara operates in 88 countries
and has around 6500 stores. It
also sell its products online.
All stores of Zara are located
in posh areas with excellent
interior.
It has 600 stores in locations
like Africa, Europe, America
and some are located in China,
Malaysia, France, India. It has
a huge distribution network.
Price The brand provides latest
fashionable products at a
affordable price. It follows the
strategy of providing products
at low prices and does not
spent much on advertisements.
It started following the policy
of economic pricing. As
compared to its competitors
the prices are set low and
through this customers don't
mind purchasing many
products together and due to
this the sales and revenue also
increases.
Promotion Zara don't do promotion in the
form of advertisements.
Customers rarely watch
advertisement of the brand on
television but still due to
fashionable style products at
low prices the brand is earning
a huge amount of profit. The
This brand follows various
techniques of promoting the
brand like through the use of
social media like Facebook,
Twitter and creating blogs too.
It also uses electronic media as
well as print media in the form
of newspapers, television and

company do word of mouth
promotion and instead on
investing in promotion, they
spend in opening new outlets.
so on.
People This brand focuses more on
providing training to all
employees by spending good
amount of money and also
investing time and due to this
all customers are satisfied with
the product as well as with the
services.
In this, a campaign is followed
which helps the company to
promote their brand and also
promote the products on the
user social media page.
Process Zara follows a very simple
process in which customer
selects the item and if there is
any confusion clients may also
help and it mainly focuses on
the speed so that customers
don't have to wait for long
period of time.
This brand has followed a
strategy of e-commerce in
which they are supporting 95
currencies as well as many
modes of payment, shipping
methods which becomes very
easy for customers to purchase
products.
Physical evidence Zara is very much effective in
front of consumers because of
the facilities the brand
provides, the way in they show
their products, the interior of
stores.
Forever21 created a good
brand image in front of all the
customers beccause of
changing the style of clothes
according to the increased
demand of consumers. They
used to make a rapid change
and that's why customers visit
their stores .

P4Produce and evaluate the marketing plan for the organization.
Marketing plan means the strategy which an organization makes to reach the target
market. To promote any product organization has to make a plan to promote all products.
Various strategies are made by the company while launcing a new product that whether it would
be promoted through advertisement on television they will use social media channels and so on.
They are of different types like paid marketing in which advertisements are done, use of social
media, campaigns are created, content marketing and even service marketing is done. This plan
is for Zara which ensures that business gets objectives. The below analysis is based on Zara:
Overview of the company
Zara is one of the biggest fashion brand and the most who deals in products like
perfumes, clothes fro both men and women, accessories, beauty products. It was founded by
Amancio Ortega in spain. When all the products are designed they just take 10-15 days to reach
all the outlets. It does not invest much in advertising, it follows a policy of zero advertising and
spends all money in opening new stores. There are around 2259 stores in 88 countries. In 2019,
zara also updated the logo and the textile commerce decreased by 2.38% but zara rose to 2.17%.
They design and supply all the products according to consumer needs and desires. Zara involves
Radio frequency technology which helps company to track location of clothes and immediately
making available to all consumers. It want to launch a new product that is the perfume which has
good fragrance, affordable price and its disinfected for all consumers. The name of the perfume
is Rose P&S.(Cooper, 2020)
Executive summary
Zara wants to launch a new perfume which provides good fragrance but at the same time
it is also disinfectious to customers as it provides the use of sanitizers also. They made a proper
marketing plan for the product as after the situation of covid everyone is concerned about the
infections and need of sanitizers got increased so according to demand of consumers they
thought of launching such product. (Chernev, 2018)
Situation
Swot Analysis

It is the analysis which represents company's strengths, weaknesses that are internal to the
company as well as it provides opportunities and prsent all threats that are external for the
organization. So, zara also made good use of their strengths and through that they cope up with
their weaknesses as well as they grab the opportunities and deal with various threats. So, swot
analysis of zara is :
Strengths:
 The products of zara are of low costs but with high profits. They provide all their
products at an affordable price for the consumers and generate huge profits also.
So, as new perfume will be launched in the market it has a strong base because of
low priced products.
 Zara has always established unique products whether in case of clothes, jewellery,
perfumes, accessories. So, as the brand is deciding to launch new perfume“ Rose
P&S” they are designing it in a unique way which has good fragrance as well as
disinfectious to health.(Gupta and Nair, 2020)
Weakness:
 Zara rarely spends money on advertising their products which is considered as a
weakness because if a company is advertising its products then they can earn
better amount of profits and due to low investment in advertising, it may affect
the launch of new perfume because customers won't get much information about
that.
 Zara does not provide anything unique. They does not focus on just one product,
they offers variety of products so sometimes consumers who want to purchase
only one product then they will go another brand and will purchase from that.
Opportunities:
 Zara is the brand which is continuosly growing across the world and the products
which they are offering are the most preferred one by customers. So, it became a
good opportunity for the brand to launch a new product and still grow in the
market.
 In comparison to competitors as they are selling the products online also, so it is a
good opportunity for the brand to sell the products online also and generate more
profit.(Hanlon, 2019)

Threats:
 The biggest threat of Zara is that there are many competitors and all other brands
are also loved by customers. So, when it comes to launch a new perfume it
becomes a threat for them because many people prefers to buy perfumes from the
brand they always purchase and no one takes a risk of trying a new perfume.
Objectives
Zara has always one objective to produce a product that will increase their market share
by 10-12% and they made a strategy of launching “ Rose P&S”. They wanted to focus on their
economic growth so for that they made a plan to launch a new product with different features.
They estimated that it will take around 6 months to achieve success.(Nirschl and Steinberg,
2018)
Strategies
Segmentation: Zara made different strategies to focus on particular sector like youth,
adults or kids. So, in case of zara they focused more on young genration because they love to try
new perfumes so they made a proper plan for launching new product.
Targeting: This process means focusing on particular areas, targeting specific people so
zara targeted people who loves to buy perfumes.
Positioning: Zara is the biggest fashionable brand and while selling products only in
their stores, they started to use social media platforms also so while deciding to launch a new
product they made a plan for how much investment would be done in promoting the particular
product. (Campbell, Martin and Fabos, 2018)
M3 Different tactics applied by organisation to achieve business objectives.
Product: The new product is “ ROSE P&S” of zara which is a perfume with good
fragrance and also provides the benefit of sanitizer.
Promotion: Zara made a decision to promote the product through the use of social media
platform. They will also spend money on advertising the product on television.
Price: Zara chose to launch the product at a low price which would be affordable for
every customer and through this they can earn better profits.
Place: The company chose the place of social media as perfume is the product which is
prefered by youths and all young generation people are active on social media.

People: Zara focuses on teenagers because they love to try new things and gets excited
about the launch of new products. (Okumus and Cetin, 2018)
Process: Zara followed a process by establishing a new team which focus only on the
launch of new product and attracting audiences.
Physical evidence: Zara used a unique design for the product which attracts the
customers.
M4 Evidence based marketing plan
Budget allocation: Zara decided a budget of € 800,000 for the development of brand at a
global level. It used the investment in hiring employees for different outlets, interior of the
stores, facilities provided. There are several methods which are used like zero based budgeting,
activity based and so on.
Forecasting: The use of this technique is making strategy for how to set up all the
budgets for future expenses to be done by the brand. It is dependent on the demand of all
products.
Sales: According to the analysis the estimation of the company is enhancing in sale of all
products.
Profit: The company predicted that the profit is raised with 15% benefit.
Market share: In this 10% market share will be covered by innovating new product
which is a perfume.
Controlling and monitoring: In zara, all management decided use various measurement
tools. The organization will compare the past performance with the present one to evaluate the
economic growth. Monitoring includes process like review, track and so on. It helps in
improving the performance according to the reviews. Through this companies also apply strategy
of marketing mix to achieve goals. (Uncles, 2018)

D2 Strategic marketing plan
There are seven ps of marketing mix which include product, place, price, promotion,
people, process and physical evidence. The initial four product, place, price and promotion are
designed when business just focus on one perspective that is they want to sell their products but
later three other elements got included which are people, process and physical evidence. By
following proper marketing plan then only all objectives will be achieved. The brand must
ensure that they have effective product which is been promoted well to achieve success and
effective amount of investment is been done.
CONCLUSION
According to the above analysis it is concluded that zara achieved a good amount of
profit and reached the target market and attracted all customers. In comparison to other fashion
brands zara is still the biggest industry who is dealing variety of products. As there are many
strengths of the brand so it made good use of that and decided to launch new products. The
tactics which are applied and includes 7Ps of marketing, the company focused very well on it.
REFERENCES
Books and Journals
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Cooper, C., 2020. Essentials of tourism. SAGE Publications Limited.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Gupta, C.B. and Nair, R., 2020. Marketing Management, CB Gupta & N. Rajan Nair. Sultan
Chand & Sons.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. SAGE Publications
Limited.
Nirschl, M. and Steinberg, L., 2018. Einstieg in das Influencer Marketing. Springer Fachmedien
Wiesbaden.

Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Okumus, B. and Cetin, G., 2018. Marketing Istanbul as a culinary destination. Journal of
Destination Marketing & Management, 9, pp.340-346.
Uncles, M.D., 2018. Directions in higher education: A marketing perspective. Australasian
Marketing Journal (AMJ), 26(2), pp.187-193.