Marketing Strategy for Zara: 5Cs, 7Ps, and Market Analysis Report

This report provides an in-depth analysis of Zara's marketing strategy, encompassing the 5Cs framework (Company, Customers, Collaborators, Competitors, and Context) and the 7Ps of marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence). The report begins with an introduction to Zara, outlining its vision and mission. It then delves into the 5Cs, examining Zara's resources, customer information gathering methods, and competitor analysis. The report further explores the development of a marketing strategy for potential markets like Japan, China, and South Korea, considering political, economic, social, and technological factors. Finally, it details the marketing tactics Zara employs, focusing on product standardization and adaptation within the Japanese market, offering both luxury and casual fashion lines. The report uses market research and surveys to support its conclusions.

1. Introduction to the Organization (Issue 1)
Zara is a Spanish based fashion retailer headquartered at Arteixo, Spain which serves its
customers globally with a wide range of fashionable outfits. The organization was
inaugurated in the year of 1975 by Amancio Ortega and Rosalia Mera and is ranked as the
largest retailer worldwide.
The vision statement of Zara states that the organization wants to attain the market leadership
through quality and wide range of product mix along with the empowered workforce and
work ethics that maintains the professional standards. Zara is considered as the most creative
and innovative organization in the terms their quality products. In other words, it can be said
that the vision of the organization is to be the most renowned fashion retailer. The mission
statement of Zara states that the organization is committed towards continuous improvement
by providing services to its customers with wide range of products along with enhancing the
satisfaction level of the customers through quality and value.
2. Analysing 5Cs of the organization (Issue 2)
The 5Cs of the organization is considered as the key areas that are regarded for making the
marketing decisions which includes company, customers, collaborators, competitors and
context.
Company
The key resources of Zara is segmented into three parts namely physical, human and
organizational (Galvin, 2014). The physical resources includes the following:
 The stores of Zara including the exclusive stores and multi chained retailers are
located at the prime locations.

 Zara always rely on the attractive window display for enhancement of the customer’s
experience.
 The trendy and exclusive designs of Zara is considered as one of the resources to the
company.
 The IT system of Zara is sophisticated that entails information about the needs and the
requirements of the customers (Cortez et al., 2014).
3. Collecting the information about the 5Cs of the organization (Issue 3)
Zara collects information about the 5 Cs from various market research and surveys. Zara
adopts the approach of marketing orientation in doing their business. In other words, it can be
said that the organization emphasizes on the needs and requirements of the customers. In
order to obtain such information, Zara conducts rigorous market research in the social media
platform as well as through offline modes. Zara is active on social media platforms via
customer interactions and this is majorly how the organization gathers information about the
customers. Big data analysis tools are also utilised by the organization for accumulating such
information from different segments of the customers (Gamboa and Gonçalves, 2014).
4. Developing Marketing Strategy (Issue 4)
Japan, China and South Korea are considered as the potential market segments that are
available to Zara and the contextual analysis of the potential market segments are
summarized below in the table:
Factors Japan China South Korea
Political The political
relationship
between Spain
China
government in
recent years has
The political
condition in
South Korea is

and Japan is
mutual as many
Spanish based
manufacturing
real estate,
construction
and retail
businesses had
expanded their
business in
Japan which
contributes in
their national
income as well.
Japan is
dependent on
Spain and many
other countries
for the supply
of raw materials
and clothes
(Usui, 2014).
created unstable
conditions for
foreign
companies
because of riots
and ethnic
violence.
unstable due to
its tension with
North Korea.
Economical The economy of
Japan in few
years has
The economy of
China has been
made open and
Economic crisis
of South Korea
affected the

achieved
tremendous
growth and
development
due to their
stability in their
policies. The
business sector
is growing in
their economy.
reformed for
foreign
companies but
still there is a
problem related
to the
leadership.
China’s
economy is
favourable for
technology
industries
(Song, Sun,
and Jin, 2017).
purchasing
power and the
foreign
companies
operating there
are facing
uncertainties
due to the
volatility in the
economy.
Social In last few years
the society of
Japan has
changed and
moved towards
adaptability.
The official
language of
Japan is
Japanese and
this language
The population
of China is
providing
workforce to the
companies as
they are skilled
workforce with
upgraded
technologies.
The socio
cultural values
of South Korea
is very adaptive
in nature and
hence are
effective for
foreign
companies in
the case of
expansion

barrier was
creating
problem for
them in doing
business. In
order to deal
with that
problem Japan
has made
English
language a
compulsory part
of education.
(Capon, and Go,
2016).
Technological Japan is
technologically
upgraded
country and
plays a vital
role in retail
market.
Companies like
Marks &
Spencer are
operating
successfully in
The technology
of China is very
innovative and
creative which
helps the
companies in
introducing new
products or
adding features
in their existing
products.
The technology
of South Korea
is leading the
world and the
companies
operating in this
country is
availing the
advantage.

Japan market
using their
upgraded
technology.
5. Developing Marketing Tactics (Issue 5)
Zara is considered as a Spanish apparel store that utilizes the marketing strategy for the
purpose of attaining the organizational goals and objectives. In this context the marketing mix
of Zara is categorized into seven different elements which is popularly known as 7 Ps of
marketing.
Product
Zara responds to the needs of the customers worldwide but it does not outsource the
production process. In this context the target market of Zara is Japan wherein the
organization would serve the customers with trendy and sophisticated apparels but in a
customized way. In other words it can be said that it is the marketing tactics of the company
that in Japan it will adopt the product standardization as well as product adaptation strategy
(Khan, 2014). Product standardization refers to the maintenance of the uniformity of the
products in the different market that is in other words it can be said that Zara will maintain
the unique designs and the quality of the products. Product adaptation refers to the process of
modifying the products that is Zara will offer the wide range of fashionable items but in a
customized way. Zara will offer two different range of products in Japan namely luxury
fashionable items and casual fashionable items.