Marketing Analysis: ZARA's Strategies and Competitive Analysis

This report provides a detailed marketing analysis of ZARA, a prominent fast-fashion retailer. It begins with an introduction to marketing concepts, future trends, and the key roles and responsibilities of a marketing function. The report then analyzes the marketing environment and the significance of interrelationships between marketing and other functional units within an organization, such as finance, human resources, production, and information technology. A critical analysis of these interrelationships is also presented. The core of the report compares how ZARA and its competitors apply the marketing mix to achieve business objectives, evaluating different tactics. The report covers marketing concepts, roles, responsibilities, and interrelationships within ZARA. The report explores ZARA's strategies for product, price, promotion, and place, and compares them with those of its competitors, such as H&M, to assess their effectiveness in achieving business goals. The report concludes with a summary of findings. The report also discusses the marketing mix and strategies. This report is available on Desklib, which provides past papers and solved assignments for students.

Marketing essential

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Marketing concepts and future trends...............................................................................1
B) Key roles and responsibilities of marketing function.......................................................2
C) Analysing the roles and responsibilities of marketing in the context of the marketing
environment............................................................................................................................3
D) Analyse the significance of interrelationships between marketing and other functional units
of an organisation...................................................................................................................3
E) Critical analyse of marketing function and interrelate with other functional units in the
organisation ...........................................................................................................................4
TASK 2............................................................................................................................................6
1) Compare the way in which different organisation apply the marketing mix to the marketing
planning process to achieve business objectives....................................................................6
2) Evaluate different tactics applied by organisations to demonstrate how business objectives
can be achieved.......................................................................................................................9
TASK 3..........................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing means creating, exploring and delivering values to satisfy the need and wants
of the customers at the profit. It is also related to making relations with customers and suppliers
through products and services. Present study is based on ZARA company. It is a spanish fast
fashion retailer industry. It mainly deals in clothing and accessories. It holds more than 10000
stores across the world (Bhatt and Gupta, 2018).
Report will include the roles and responsibilities of marketing function. It will explain the
interrelationship between marketing function and other functional area of organisation. It will
defined the critical analyses of interrelated functions. Last the report will include the different
marketing mix strategies of ZARA and their competitors to achieve their targets.
TASK 1
A) Marketing concepts and future trends
Marketing :-
Marketing is a function of a company that associated with buying and selling of goods
and services. It also includes creating relationship with customers and satisfying their need and
wants (Bohari, Hin and Fuad, 2017).
Marketing concept:-
 Product concept:- in this concept, consumer's of zara will favour their product that are
available in market with affordable price and best quality.
 Selling concept:- in this concept, consumers of zara will not buy their products unless
they do not effort on promotion and advertisement.
 Social marketing concept:- in this concept, zara makes their marketing strategies in a
way they improve the customers and society's well being and deliver valuable services to
the customers.
Future trends of ZARA
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B) Key roles and responsibilities of marketing function
Key roles and responsibilities of marketing function:-
11 Marketing research:- In ZARA. The important responsibilities of marketing department
is to find the target market, suppliers, potential buyer and external environmental factors
etc. the role of marketing department is deal with supplier, vendors and customers etc
(Bull and et.al., 2016).11 Product development:- According to their target market, marketing department makes
strategy about product design, layout, quality and quantity. Develop a strategy is a main
responsibility of the marketing department and as a marketing manager of the ZARA ,
meet various people for expert advise for their product is a key role.11 Communicate with customers:- The important role is to communicate with customers
and built their relationship. The responsibilities of ZARA's marketing manager is to
identify the need and wants of the customers. According to their needs produce goods
and services (David, David and David,2017).11 Promote business:- The marketing department of ZARA's not only promotes the
product. They promotes the hold organisation. On that time they play a main role of
marketing function.
The marketing plays a crucial role in the ZARA company and have many responsibilities
such as conducting marketing research, finds their target markets, scopes for their products in
market, customers expectation regarding their products. According to research, develops a
product and promotes through advertisement, door to door marketing and online marketing.
ZARA company's main responsibility is to communicate with customers and take feedback
about their product & services (Didner, 2015.). Marketing performs many roles in the
organisation because it is connected with every level of the organisation. Its promote hold
business and their mission. It manages the vendors and agencies who produce row materials and
support marketing team.
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C) Analysing the roles and responsibilities of marketing in the context of the marketing
environment.
The main role and responsibility of marketing is to identified the present marketing
trends and convert them into the opportunity for ZARA. There are number of environment
factors- political, technological, socio-cultural, economical and legal factors that affects ZARA's
marketing strategy as well as overall business performance. For example, political factor affects
the polics and decision making process of the organisation (Festa and et.al., 2016). ZARA's
marketing needs to specific knowledge about their product, market, target consumer and also
affecting factors. ZARA's marketing main role is to analysis the possible external factors and
identify that how they affects in their marketing strategy. It is also a responsibility that make a
good relation with external channels of marketing.
D) Analyse the significance of interrelationships between marketing and other functional units of
an organisation
Marketing or finance function:-
Marketing and finance department is an interrelated departments of an organisation.
financial department identify the future budget of promotion activities and marketing research.
Marketing department makes marketing plan with the use of allotted budget by finance.
Marketing department helps to enhance sales of the organisation that sales increased profit that
profit helps finance department for future investment and budget planning. They both helps in
making profitability of the organisation (Lidstone and MacLennan, 2017).
Marketing and human-resource function:-
Human-resource department recruits appropriate skilled employee for their marketing as
well as other department. For marketing department, human-resource department is hired high-
qualified and experienced person. Those person helps to marketing department in developing
new product ideas, create a competent marketing team and meet production target as well as
customers need. They both establishes a strong man power with experienced helps in improving
performance (Oliveira and Toaldo, 2015).
Marketing and production function:-
Marketing department is identified current and future market demand as well as
customers needs and wants. According to marketing department's details, production department
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produces goods and services. Marketing department set a deadline for entrance of product in
market. According to deadline production department produce products.
Marketing and information technology function:-
Informational technology maintain the database of past years record, customers records
as well as competitors position and selling data that helps marketing department to makes
marketing planning and also give idea about result of this planning. They both are together helps
in improving in making organisational strategy (Phadermrod, Crowder and Wills, 2019).
E) Critical analyse of marketing function and interrelate with other functional units in the
organisation
Key elements of marketing:-
11 Needs, wants & demand:- the main element of marketing is to identify the needs and
wants of the customer and market demands. ZARA is always one step ahead because
they always introduce new products in very short period before the customer identify
their need and wants that makes always satisfy their customers.11 Offering& brands:- Zara holds eight brands all over the world. The parent company of
Zara is helped to establish more brands in fashion industry. Zara is the one of most
valuable brand in world. The brand value of Zara is $10.7b (Resnick and et.al, 2016).11 Value& satisfaction:- Zara provided best quality products in lower price than its
competitors. Always change their apparels to satisfy customers that enhance the values of
ZARA.11 Marketing channels:- ZARA do not believe in heavy advertisement. They promotes
their product through its pricing strategy( low cost and high quality) and word of mouth.11 Supply chain:- ZARA have very strong supply chain because zara spend a big amount
and time for their employees, suppliers and vendors that motivates the employees and
build a strong supply chain from supplier to customers (Salwa and Sudarsan, 2018).11 Competition:- ZARA's big competitor is H&M but in present ZARA's market share is
8% increased where H&M market share 68% decreased.11 Marketing planning:- ZARA's marketing planning depends market demand and current
trends in market and also they makes heavy production in a year for enhancing their
sales.
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11 Target market, positioning& segmentation:- ZARA's target market is men, women as
well as kids. It segments their products according to demographic, gender and income
etc. ZARA holds 53rd rank in world's largest fashionable brand (Zahari and Romli, 2018).
Critical analyse of marketing function interrelate with other functional:-
Functions Positive aspects Negative aspects
Marketing and finance
function
When marketing department
makes strategies for enhancing
sales and successfully
implemented that rises the
profitability that profit helps
finance department for their
investments and CSR activities
(The Four Ps of Marketing:
Why the Marketing Mix Is Still
Relevant, 2019.).
When finance department do
not have sufficient budget for
future marketing strategy that
affects negatively on
marketing function because
their planning for marketing
strategy and promotional
activities will not be
implemented.
Marketing and human resource
function
Marketing department makes
profit for an organisation. The
profit is a result of employees
affects towards the
organisation. Human-resource
department should provides
bonus to the employee form
the profit that increase
employee satisfaction level
and reduces employee
turnover.
Human resource department
do not hire a right persons for
marketing department than
marketing department are not
able to make effective plans
and strategies for their brand
promotion and lose their
market share.
Marketing and production
function
If marketing department
provides the rights details
about their target market to the
If production department do
not produce qualitative goods
and services and do not
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production department that
makes the goods and services
accordingly. That satisfy the
customers needs and wants
and enhance the customer's
satisfaction as well as
profitability.
consider the needs and wants
of the customer towards
products and also not
providing products on deadline
decided by marketing
department that loses the
customer's loyalty as well as
market share (he Roles and
Responsibilities of a Sales and
Marketing Team, 2019).
Marketing and information
technology function
If the information technology
function provides all needed
data to marketing department
that helps in marketing
strategy.
If the system of information
technology is destroyed and
the data is deleted than it
added very much difficulties
for marketing department in
making marketing plans.
TASK 2
1) Compare the way in which different organisation apply the marketing mix to the marketing
planning process to achieve business objectives
Marketing mix ZARA H&M
Product It mainly deals in clothing and
accessories. Product strategy
of ZARA, it offers a higher
availabilities of product with
numbers of variety rather than
its competitors. It produces
more than 10000 pieces in a
year (Salwa and Sudarsan,
2018). The main product
It mainly deals in clothing and
accessories with some brand
names like monki, H&M
home, weekday etc for men,
women and kids. In product
strategy of H&M, it produces
higher quality of products. It
owns collection of styles
means produces limited
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strategy, it added number of
new product in a very short
period. It uses product
differentiate strategy.
products with high quality. It
uses product development
strategy (Resnick and et.al.,
2016).
Price It adopts skimming pricing
strategy Zara is far from
expensive but it is not a cheap.
It provides high quality of
fashion item at very low
prices. In its pricing strategy,
they considered various factors
such as quality, current trends,
change in customers test etc.
when customer's test is
changed it uses discounted
prices. Their pricing strategy
varies according to market
situation (hadermrod,
Crowder and Wills, 2019).
It adopts competitive and
economic pricing strategy.
H&M is a luxury brand. It
provides limited collections
with high price. In its pricing
strategy, they only considered
the quality of the product and
ignore the current fashion.
That why their pricing is very
high. Their pricing strategy is
fixed for their products. They
do not change according to
market situations.
Promotion It do not believe spend higher
money in advertising. Its low
price with high quality
products give them
promotional advantages. It
promotes its products through
word of mouth and social
media. It uses social media
strategy.
It uses various promotional
strategy for their product. It
spend billions of money in
advertising. It makes different
advertisement for every
country. It also launches their
magazines for promotion.
It promotes its clothes through
fashion shows and celebrity
endorsement etc. it uses TV
and advertisement strategy
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(Resnick and et.al., 2016).
Place In present, ZARA holds more
than 6500 stores in 88
countries. It also sell its
product through online. 90%
of the stores own by the
company themselves. It use
indirect distribution strategy
(Festa and et.al., 2016).
In present. It holds more than
4135 stores in world wide. It
also sales its product through
online. The manufacturing of
products are in which country
where the cheaper labours are
available. In its place strategy,
it established its stores in
shopping malls, big cities and
city centres where the target
market is already exist. It uses
direct distribution strategy.
Physical evidence They offers more than 10000
variety in their store. They
welcomed their customer and
so friendly environment. The
infrastructure of the company
is very eco-friendly.
In H&M stores, the apparel is
arranged in decent look that
attract the customers. It also
launched its store by celebrity
endorsement as well as use
stories and recommendation
that helps in grab customers
attention with the brand.
People In ZARA, the spend big
amount of time and effort for
the training of the employees
that enhance the productivity
of the organisation and provide
competitive advantages to the
ZARA.
In H&M, the employee are
highly skilled on every level of
organisation. The working
environment is very modern.
The employee of H&M are
rotated in every department
that motivates employee to
give their best (Zahari and
Romli, 2018).
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process The process of ZARA is very
effective because of its
employees. They uses best
technologies for their
workplace (Bhatt and Gupta,
2018).
The employees are trained and
highly skilled that give the
better services and product to
the company and helps to
make effective supply chain
from suppliers to customers. In
any complaints of employee,
immediate action will taken by
employer
2) Evaluate different tactics applied by organisations to demonstrate how business objectives can
be achieved
ZARA is used different pricing tactics for achieving organisation goals. ZARA provides
high quality products with low prices that increases the sales of ZARA. ZARA changes their
pricing strategy according to the customer's preference means if the customer's preferences is
change than it uses discounted prices for selling of their apparels as well as introduce new
apparels to the market with medium ranges of price. Their pricing strategy have its biggest
strength towards achieving their objectives (Bohari, Hin, and Fuad, 2017).
ZARA introduces their products within very shorter period that is its product strategy for
achieving organisation goals. ZARA do not give time to their customer for identifying their
needs and wants because it always introduces new apparels within very less time when the
present stock is not finished. It produces more than 10000 apparels in a year that helps in
achieving organisations objectives with profitability.
ZARA do not used heavy promotional tactics for their brands. Its product and pricing
strategy already does its promotion through word of mouth because ZARA's high quality
products with low prices is made satisfy their customers (Bhatt and Gupta, 2018). The satisfying
customers always promote ZARA through word of mouth that's why do not need heavy
advertisement for their brands. It helps in achieving organisations goals as well as save heavy
money that helps in future investment.
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ZARA have more than 6500 stores in 88 countries. The main place strategy, it owns 90%
stores by themselves that helps in maintaining direct connection with customers and easy to
identify their needs. Accordingly they produces goods and services and satisfy their customers
that helps in achieving organisations goals with profitability. It also used online platform for
selling their products.
ZARA's employees is satisfied with their process at workplace. Their are very friendly
working environment as well as employees are highly satisfied. ZARA maintain close relations
with suppliers and vendors etc. that makes ZARA's process very effective and effluent and there
is no place of ideal time that helps in achieving business targets.
ZARA's employees highly qualified because ZARA spends a big amount and time for
employees training and welfare that helps to motivate employee. The employee gets satisfaction
from their job that improve the productivity and helps in achieving organisations goals
(David,David and David, 2017).
ZARA's physical evidence helps in achieving organisations objective. ZARA have
10000plus apparels in their stores and they welcomed their each customers in their store that
attract the customers and customer's may be things about visiting again that helps in grab
customers. So, it also helps in achieving organisations goals.
TASK 3
Covered in poster
CONCLUSION
From the above study it can be concluded that marketing is very essential to achieve the goals of
the organisation. Present report has concluded that the ZARA company achieving success by
analysing marketing concepts and future trends in market. It described the roles and
responsibilities of marketing functions in context to environment. It also explained marketing
mix of ZARA company and their competitor H&M. With the help of marketing strategies the
ZARA can achieve their goals.
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