An Analysis of Zara's International Marketing Performance Report

This report provides an in-depth analysis of Zara's international marketing strategies within the fashion industry. It begins with an introduction to international marketing and its relevance to Zara, followed by an evaluation of current trends in the fashion market. The report then summarizes Zara's products and market focus, highlighting the basis for its current competitive advantage. It examines the strategic marketing challenges Zara faces in maintaining its international competitive position. Furthermore, the report offers recommendations for building a sustainable competitive advantage in the future and proposes critical implementation actions. The study considers the 4Es of marketing strategy, market entry methods and various factors affecting the business. The report concludes with a summary of key findings and recommendations.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
Critically Evaluating trend in the international market in fashion market..................................1
Section 2...........................................................................................................................................3
Summary of products and market focus of Zara.........................................................................3
Basis for current competitive advantage.....................................................................................3
Strategic marketing challenges in international competitive position........................................4
Section 3...........................................................................................................................................5
Recommendations for building sustainable competitive advantage in future............................5
Implementation actions that will be critical in building the competitive advantage...................5
CONCLUSION ...............................................................................................................................6
References........................................................................................................................................7

INTRODUCTION
International marketing is the concept that develops the international brand that contains
the long lasting results for the company. In other words, global marketing concept view an entire
set of country markets that spread all over the market goals. International marketing is the
complex and difficult process in order to beat the consumer needs and wants. Present research
will be based on international marketing in the context of Zara which is the international brand in
clothing sector. Furthermore, the study will be explaining about the international market sector
along with their background details and also outline the concept of sustainable long term global
marketing strategy.
Overview of Company
Zara is a Spanish clothing and accessories retailer based in Arteixio, Galicia. Zara
established in 1975 by Amanico and Rosalia Mera. Basically Zara is the popular brand in
Clothing sector that always been on the top position. They producing fascinating and unique
style of clothes and accessories specially for the women. In order to that, this is the most popular
brand across the world (Kanat, 2016). It holds more than 2220 stores in 88 countries. Zara has
also consistently acted as a pioneer in fast fashion based in a highly responsive supply chain.
Critically Evaluating trend in the international market in fashion market.
Fashion and clothing trend is the highly dynamic in nature. People choices has been
frequently changes in terms of fashion and clothing. However, this is the most competitive or
challenging task for the Clothing businesses to deal with sudden changes in the business
environment. New trends indicates new market, new technologies and the risk of consumer
preferences (Ten trends for the fashion industry to watch in 2019, 2019.). In present time the
most trendy goals are given below :
Caution ahead
A potential turn in the economic cycle is promoting concern among industry executives
over prospects for 2019. This can help to discover the new opportunity and task that company
should need to define in the following matter.
Trade 2.0
Fashion industry is inherently sensitive and uncertain that shape cross border trade. In
recent times, competitors and the legal regulations are now become more challenging for the
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company that might sometimes create the legal risk (Kumar, Charles and Mishra, 2016). Trade
related issues can be the harmful component for the international marketing. This may be the
difficult form or result in order to meet out the business goals and effective learning outcomes.
escalating trade unions tensions will might be the difficult issue for international brand. In other
words, it is also very challenging for the company to define in the long lasting performance
objectives (Robinson and Hsieh, 2016).
End of Ownership
In fashion industry the shift of new ownership models is driven by growing consumer
desire for variety, sustainability and affordability and sources suggest that the resale market.
New ownership models explore the opportunity forb consumers for more variety and demands
that also be at the affordable prices. In more and more categories, consumers are choosing to rent
rather than own goods.
Zara Marketing structure
Zara has following the new 4Es of marketing strategy such as Experienced, Exchange,
Evangelism and Every places. It helps to gain the customer attention and growth for the new
product or services (Le and Wang, 2017). In order to beat the company aims and objectives this
is the most challenging task for the company to compete with the other global players.
Zara has been already spread in different places that makes the company geographical
segment very strong and competitive. Zara also sell product or services by their own mobile
application throughout the world. It helps company to grab the global attention towards their
product or services. In present time, Apparel industry hosts the world most rapidly growing
companies through different channels either online, offline etc.
However, 60% of the services of Zara is for Women, 25% for men's 25 % for Children's.
So in order to that. Major part of the Zara is focused on women's product or services. Zara
marketing strategy is to cutting the edge at affordable prices in order to focus on the fashion and
looking for the new unique concept.
In order to critique, Zara shroud also be very attentive to grab the new opportunity for the
company in order to beet the company aims and objectives. However, the overall study more
focused on the effective structure opportunity and targets (Pinho and Prange, 2016).
In order to compete with the market company also need to be considered the business
environment factors such as political, Economical, Social, Technological, Legal and
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environmental. All such factors can be the biggest threat for the company in order to deal with
international market.
For example : Political factors can influence trade restrictions and policy which might be
risky for the Zara (Rinallo, Bathelt and Golfetto, 2017). On the other side, Technological factor
of the business environment can creates the business opportunities through business can get the
higher business growth and customer satisfaction.
Section 2
Summary of products and market focus of Zara
Zara is famous and renowned in the field of accessories and clothes across the world-
wide. It offers wide range of products including clothing for men and women's, children's
clothing, accessories and shoes. There are small number of fashion brands which keeps pace with
the latest and fashionable products as Zara (Wu, 2016). This company focus on being always
staying up-to-date with fashionable and latest trends and also aims at providing high quality
products to its customers at the affordable prices.
The reason behind the success of Zara in domestic, regional and international markets is
that it focus on keeping up the pace with the rapidly changing and dynamic street fashion and
trends (The Secret of Zara’s Success: A Culture of Customer Co-creation, 2018). This is the
reason why Zara is getting success in every market and leads to gains great profits and the
company also has effectively occupied the great market share.
Basis for current competitive advantage
Competitive positioning refers to defining how company can differentiate its products
from other competitors and provide value to the customers (Baker and Saren, eds., 2016). The
competitive positioning of the Zara company can be identified by applying the Porter's Five
Forces model, and it is explained in details as follows:
Bargaining power of buyers: There is constant change in the taste and preferences of customers
and it is quite unpredictable. The switching cost is low for customers as they can buy what they
like regardless of the brands and this leads to make high bargaining power in the hands of
customers. But there are some customers who are loyal to the Zara brand, and they do not mind
long line ups.
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Bargaining power of suppliers: Markets are continually growing in the trends of globalization.
Zara provides the suppliers with licensed contracts and this leads to make them stuck with
requirements and leaves no room for design variations. Therefore, this leads to make strong
power with suppliers as switching cost is very high and risky for Zara.
Threat of new entrants: The rapidly growing fashion and clothing industry requires uniqueness
and effective workforce. It is difficult for a new entrant to gain these in short period and compete
with famous and well-renowned brands. Thus, Zara have relatively less threat from the new
entrants (Eteokleous, Leonidou and Katsikeas, 2016).
Threat of substitutes: The fashion and clothing industry is considered as very predictable
having many companies and everyone wanting to project next big trend. However, Zara still
distinct from the substitutes by continuously innovating and creating designs and this leads to
make lower threat from the substitutes.
Threat of existing competition: There are few brands and companies that keeps pace with the
rapidly changing fashion trends. This is considered as the uniqueness that allows company for
making great profits and gaining great market share. Therefore, Zara have less competition and
threat from the existing companies.
Strategic marketing challenges in international competitive position
Zara aims at improving its international competitive position and it may face some
strategic challenges which are evaluated as follows in relation to future opportunities and threats.
Opportunities in international competitive positioning
The advantages of international positioning can be taken by the Zara by increasing its
online E-commerce business. Online stores can help the company to get hike in the sales and
profits. Word-of-mouth promotions can also lead to increase the international presence and
positioning of the company (Rinallo, Bathelt and Golfetto, 2017). The international positioning
of Zara can allow the company for achieving fast production and increasing distribution. The
company can also gain benefits of economies of scale by producing large and increased number
of products. International positioning can be supported by the technological developments and
up-gradations and it will also allow company to monitor the supply chain stages strictly.
Threats in international competitive positioning
In the international positioning Zara can face threats in terms of intense competition. Zara
can opt for doing partnership business with celebrities and famous designers which may help the
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company to elevate the brand image from fast fashion segments and reach more attention of the
public in international markets. But, then little attention is paid to social projects and
sustainability, and this is not considered as the strategic for company and brand. Zara plans to
invest in online E-commerce business to improve the competitive positioning but it will also
become saturated at a time and Zara will face threat for developing its marketing strategies in
order to distinguish its products from others in the fast changing fashion trends.
Section 3
Recommendations for building sustainable competitive advantage in future
Zara is fashion designing and manufacturer company that is also declared as the most
efficient market responding company. It aims at keeping a close look at ever-changing trends of
the every-day fashion (Pinho and Prange, 2016). The company also devotes significant time,
resources and money for developing synchronized strategy between the offline and online
commerce business.
Vision statement of Zara describes that it wants to give customers an exclusive choice of
fashion through providing a quick turnover of the new stocks as compared to other fashion
retailers.
Strategic Marketing Objectives of Zara is to increase the brand awareness and also extend the
Zara fashion brand. The company aims to contributing to sustainable development of society and
environment with which it interacts.
Implementation actions that will be critical in building the competitive advantage
The Market entry methods
Zara needs to focus on considering and selecting the best strategic option for entering into
new markets and building global competitive positions and in which products are clearly
differentiated from other competitors (Robinson and Hsieh, 2016). Following is given the
explanation of different market entry methods and best one is chosen for the Zara.
Direct Export: This strategy describes that Zara may produce their products in home markets
and sell them into overseas market.
Indirect export: The Zara company may choose to sell the products to a third party who will be
then selling it on within the internal markets.
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Licensing: In this entry mode, licensor Zara will grant the company in international market a
licence for producing the products and using its brand name and in return company can get
royalty payment.
Franchising: Zara may choose to franchise and put together the package of successful
ingredients which made it successful in home markets and then company can franchise this
package to the overseas investor.
Manufacturing abroad: Zara may also establish its own manufacturing plant in the host country
and sell directly. The host country government may also provide tax advantage to company as it
will lead to create employment opportunities for the host economy.
Joint venture: In this strategy, Zara may choose a company, and they come together for forming
a new company for operating in the host country. This strategy allows Zara for sharing the risk of
entering into international and new markets.
Depending on the geographic region, Zara should focus on utilizing their own
subsidiaries, joint ventures, and also franchising for entering into new markets and for gaining
and increasing competitive position (International Marketing, 2019). These recommendations
make great contribution to the development of long-term global competitive advantage across the
region.
CONCLUSION
As per the above discussed report it has been analysed that how much sustainability and
innovation is play a important concept for the organisation. Study explained the concept of
international marketing and challenges it consists while handling the global operational
activities. Apart from that, study also discussed the background details of the company and the
sector in which they operated. Apart from this, assignment has also been justified that strategies
for domestic or international market that company used to promote the product or services.
Besides that, study also explained about sustainable competitive strategies and ways that highly
contributing in the businesses in the most enlarging manner. Overall the main aim of the study is
to explore the concept of international marketing and how company could gain the competitive
advantage in order to beat the level of competition. In other words, Research also outlined the
current trend and demand in the sector that helps to gain the company aims and objectives.
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References
Books and Journal
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international marketing: review, assessment, and future research. International Marketing
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Kanat, S., 2016. INTERNATIONALIZATION PROCESS OF TURKISH CLOTHING
SECTOR. Journal of Textile & Apparel/Tekstil ve Konfeksiyon. 26(1).
Kumar, M., Charles, V. and Mishra, C. S., 2016. Evaluating the performance of indian banking
sector using DEA during post-reform and global financial crisis. Journal of Business
Economics and Management. 17(1). pp.156-172.
Le, T. N. and Wang, C. N., 2017. The integrated approach for sustainable performance
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Pinho, J. C. and Prange, C., 2016. The effect of social networks and dynamic internationalization
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Rinallo, D., Bathelt, H. and Golfetto, F., 2017. Economic geography and industrial marketing
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Marketing Management. 61. pp.93-103.
Robinson, P. K. and Hsieh, L., 2016. Reshoring: a strategic renewal of luxury clothing supply
chains. Operations Management Research. 9(3-4). pp.89-101.
Wu, C. W., 2016. The international marketing strategy modeling of leisure farm. Journal of
Business Research. 69(4). pp.1345-1350.
Online
The Secret of Zara’s Success: A Culture of Customer Co-creation. 2018. [Online]. Available
through: <https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-
culture-of-customer-co-creation/>
Ten trends for the fashion industry to watch in 2019. 2019. [Online]. Available
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fashion-industry-to-watch-in-2019>.
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International Marketing. 2019. [Online]. Available through:
<https://www.learnmarketing.net/international%20marketing%20entry.htm>
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