Zara: PESTEL & SWOT Analysis, Marketing, Sales & Negotiation

This report provides an analysis of Zara's marketing environment and the application of marketing tactics, focusing on sales and negotiation skills. It includes a PESTEL and SWOT analysis to assess Zara's position in the retail fashion industry, considering political, economic, social, technological, environmental, and legal factors. The report also reflects on the development of negotiation and sales skills, examining how Zara applies these skills in its operations. The conclusion offers recommendations for the company based on the analysis. Desklib provides this assignment and other solved papers for students.

Marketing, Sales
and Negotiation
skills

INTRODUCTION
The role of marketing is to communicate with consumers and influence them to purchase
the products and services of the company by explaining value provided by the products. In
addition to this taking suggestions and communicating consumer expectations to the company is
another key responsibility of marketing. The company selected for this report is Zara which
operates in the retail fashion industry. Zara was founded in 1975 and currently offers apparel
products through online and offline channels in 88 countries.
The objectives of Zara are increasing consumer objective, decreasing dissatisfaction of
plus-size consumers, increase purchase frequency among plus-size consumers, increase brand
awareness and brand expansion. These objectives can be attained with the help of marketing as
value of Zara product offering can be communicated to plus size consumers through effective
marketing. In addition to this marketing can also enhance brand awareness and consumer
satisfaction by improving consumer experience. Consumer data gained from market research can
also support successful brand extension of Zara. In this way marketing plays a key role in
attaining business objectives of Zara.
This report discusses the marketing environment and application of marketing tactics by
Zara through application of appropriate models. In addition to this a personal reflection on
development of negotiation and sales skills is provided in this report along with discussion on
application of sales and negotiation skills by Zara. Concluding analysis and recommendation for
the company are also included in this report.
MAIN BODY
PESTEL and SWOT Analysis
PESTEL analysis of Zara Political Factors: The UK fashion industry faced uncertain future after implementation
of soft Brexit deal. Brexit deal has made the UK fashion industry more challenging
impacting the global fashion retail brands. Increased costs and bureaucracy around
customs clearance, unexpected export duties and facing double duties are some factors
which are affecting fashion retailers in UK. This negatively impacts the profits gained
from retail outlets in UK and smooth distribution of goods across UK and EU.
1

 Economical Factors: The COVID-19 pandemic has negatively affected the fashion
industry including physical fashion retailers. This created a huge challenge for Zara to
recover from pandemic loss and attain higher profits. Zara was able to make profitable
comeback from pandemic losses by focusing on online fulfilment of consumers and
opening 99% of fashion retail stores. This helped the company attain profitability in post
pandemic worlds and gain strength as an online fashion retailer. Social Factors: The social trend of preferring responsible shopping and purchasing
ethical products affects fast fashion industry. Zara has also faced criticism regarding
continuous disregard for ensuring ethical labour in its global supply chain. This can
alienate consumers who are now cooking to purchase only ethical products. Technological Factors: COVID-19 pandemic has accelerated consumer shift towards e-
commerce and digital fashion for purchasing fashion products. Zara has made effort to
offer consumers bet in-store and online digital fulfilment to drive e-commerce sales and
enhance consumer experience. This has positively reflected on the e-commerce revenue
of the company and enabled Zara for easily adopting to a digital future. Environmental Factors: Fast fashion consumers is demanded by consumers as well as
governments across the globe.
 Legal Factors:
Discussion and analysis of marketing mix
Sales and Negotiation skills applied by Zara
2

CONCLUSION AND RECCOMENDATION
3

REFERENCES
Books and Journals
4