Zara's International Marketing Strategies: A Comprehensive Report

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This report provides an in-depth analysis of Zara's international marketing strategies. It begins with an introduction to international marketing and its importance, specifically focusing on Zara's approach to global expansion. The report delves into the differences between global and local markets, exploring the challenges and risks associated with international marketing, including political, cultural, and economic factors. It examines various entry strategies such as exporting, importing, and joint ventures, along with the pros and cons of each. The report further analyzes Zara's marketing mix, including product, pricing, promotion, and distribution strategies, and how these elements are adapted for international markets. Additionally, it includes competitor analysis, recommendations for maximizing international market opportunities, and a critical evaluation of marketing mix factors. The report concludes by summarizing the key findings and providing insights into Zara's potential for continued success in the global market. The report provides an overview of Zara's global marketing approach, including the rational for using a global approach and implications for the business. It also discusses the importance of the marketing mix in international markets and provides recommendations to maximize international market opportunities.
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INTRPODUCTION...............................................................................................................................3
PART 2..................................................................................................................................................3
P5 Global vs Local market................................................................................................................3
P6 Product, pricing, promotional and distribution approach differs in international context.............4
M3 Rational for using global approach and implications...................................................................4
M4 Marketing mix into international markets...................................................................................4
D2 Critical evaluation of marketing mix factors................................................................................4
PART 3..................................................................................................................................................5
P7 International marketing approaches..............................................................................................5
P8 Home and international orientation..............................................................................................5
M5 Competitor analysis and recommendations.................................................................................6
D3 Recommendations to maximise international market opportunities.............................................6
CONCLUSION.....................................................................................................................................7
REFRENCES........................................................................................................................................8
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INTRPODUCTION
International marketing can be understood as one of the most effective marketing
strategy which is based onto developing high end business expansion and developed working
scenario where all functional parameters are highly focused to attain high developed synergy
of huge optimisation success. ZARA is one of the biggest brand of fashionable products in
UK industry offering large innovative products and services with large factors of innovation
within the funnel of business development. With higher market proposition the brand seeks to
expand onto new working paradigms of international market with high globalisation and
functional efficiency gaols. The report explains international marketing scope, its factors of
importance and how the company can develop long term business positioning into the high
extended business segments where there is stiff competition. The report has also discussed
various entry strategies into into international market where there is wide synergy of
competition and higher working gaols forming development. The report brings forward how
new rational marketing factors can be undertaken to be brought under various business goals
which will also promote wide factors of business and develop long term synergy of market.
ZARA for effectively developing strong business position for itself into international market
and for building strong synergy of working fundamentals have to optimum functionally
operate wide scale development among various horizons and also program out best functional
paradigms to actively use various resources.
. [PART 1 IN PPT]
PART 2
Domestic marketing orientation: It can be understood as an approach to business for
company to prioritize identifying the various needs and desires among consumers and
building portfolio of products which hold the satisfaction criteria. Zara will be able to
develop strong market orientation within domestic market by bringing on higher attractive
market needs, keen scenario of working efficiency with high innovation and fashionable
Multi domestic market orientation: This strategy assumes consumer’s market share in
different countries or various new geographical regions where ideas of marketing and
promotion of business value are highly different innovative. Products are interlinked from
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each market based on consumer wants and needs for higher expansion and in ZARA context
it can be understood as higher diversification of business avenues.
Global marketing strategy: This strategy encompasses countries from several different
regions in world and aims to coordinate company innovative marketing efforts in markets
among the countries. GMS does not necessarily enable various countries but it should also
apply several regions onto various new parameters and to determine high end global
expansion within the set paradigms and to reach larger profitability along with goodwill
among consumers market share.
P1 Nature of international marketing:
Challenges and risks
Political risks, cultural differences, changes in fashion and varied styles of foreign customers
along with sudden war, changes in varied government riles and higher communication
challenges for companies to program out new cultural phenomenon’s for higher innovative
marketing paradigms. ZARA has to strategically plan further investments and higher level of
innovation within vision world to program out strategic entries within international market.
The competition is highly intense as broader market is available along with requirement of
broader competence to deliver high growth innovative marketing segments among consumers
market world within international market share.
Scope of international
Export: ZARA company can build its international marketing factors by developing its new
countries market share and export is one of the main component of building new official
avenues to more technically gain higher international market paradigms within global
fashion industry.
Import: Importing at international level of business will enable to get high developed
resources for innovative business functioning, higher innovation business functioning at
internal business development which will keenly work towards progressively building strong
paradigms of business functions.
Re export: The export of business functioning gained from exporting of business paradigms ,
goods and various other products, services are focused to built the synergy and production of
higher fashionable market share industry for provocative industry.
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Rationale for company going into international market:
Domestic market small: ZARA for gaining strong international market ahs to built new
international market positions for itself, which will not only leverage strong proposed
business value of higher innovative commercialisation but also able to stop the limitation of
small domestic market.
Slow growth: The domestic market has slow growth factor where ZARA not only faces slow
growth and limited business functioning, but also the global market share with various new
brands and companies are giving tough competition.
Competitive pressures: High pressures from external new brands and companies coming
within new world business empires.
Economies of scale: There is higher revenue potential hidden within diversification of
business administration where new business avenues and larger composed business share
among companies give scope of higher innovative economies of scale.
P4
Pros and cons of different routes
Licensing
Benefits: Licensing will enable legally ZARA to position itself as big brand and
develop strong business value among customers market share where there is high
level of competition. Limitations: Lots of regulations and hectic procedures.
Joint venture:
Benefits: Joint venture will enable to enter progressively with another brand already
established in country where the business can be further more developed into higher
structured formats, with innovation. Limitations: Higher interferences form another brand may impact on goodwill.
Contract management:
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Benefits: There will be higher effective business development in international market
where the contract management is highly effective to keenly bring stronger working
paradigms for longer efficiency for Zara.
Limitations: Higher limitation of new functioning levels which will not able to bring
stronger working paradigms, and neglect the fluency of working operations.
Ownership:
Benefits: ZARA will be able to develop stronger ownership among international
countries by building new international ownership avenues.
Limitations: ZARA may face long term business efficiency as shareholders and
business partners may face difficulties to bring on new fundamental functioning’s.
P3 Barriers to international trade
Socio cultural: ZARA may face higher difficulties to build strong social culture standards
while developing its position into world, where various countries have different social
cultures.
Legal and political: The legal and political factors are impactful highly for brand business
functions.
Economical: The customers market share is also impacted with economic .standards by
which brand has established its position for more evocative business functions.
P5 Global vs Local market
Global market is wide and has various expansion strategies with wide customer share
potentialities and innovation along with developed working scenario which will also promote
high scale infrastructure and business positioning, The global market is vastly changing with
large diversification and various new brands coming up to generate long term business
factors and profitability where ZARA can look upon high developed working scenario. On
other hand local market is the domestic market where the company is headquartered, in
context of ZARA it is UK. There is very limited opportunity for expansion and
diversification factor within the local market as the customers market share is limited and
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also there is less technology involved which limits the infrastructure and marketing factors
(Madura, 2020).
Globalisation can be understood with 3 definitions which are as follows:
Globalisation is known as marketing into international domains within global
scenario where there is wide scope among vivid consumer market share, use of
innovative techniques and digital marketing ends for gaining new scope of
profitability within revenue determinants (Potrafke, 2019)
Globalisation can be understood as internationalising scope of business into
outside the domestic levels of business scenario where international market
factors do not only offer attractive functional opportunities but also there is new
level innovation among business practices (Sutcliffe and Glyn,2019).
Globalisation can be understood as one of the most new innovative business
practices where higher flexible marketing paradigms are used by companies for
developing new end goals of competitive expansion and keenly focusing to bring
on rational profitability (Perraton, 2019).
P6 Product, pricing, promotional and distribution approach differs in international context
International marketing can be successfully established within the company businsess
concepts when the marketing factors and channels are highly dynamic and as per the
customer’s preferences for large successful development. ZARA have to vitally look upon
building high quality products, best pricing at a competitive level and strong promotional
factors for gaining large customers strength and towards building cost effective production
channels which will enable company to deliver best fundamentals. ZARA has to analyse the
vest rational factors within the international market where the planning of further expansion
is focused for generating wide developed working scenario and to develop long term
goodwill on global paradigms (Ferdous, 2019).
Product: ZARA has to focus on innovation within fashionable products where
the stores shall focus bringing on best customer focused products, services
within online websites also where there is wide demand among consumer market
to bring on new goodwill among international global customer segments.
Place: ZARA has to focus on expansion into new stores and various levels of
stores within international segments for gaining wider reach among customers
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globally among competitive goals and also be available on social media channels
for developing strong place.
Price: The ZARA price strategies for competitive entry within international
segments have to be developed with innovative business planning and rational
pricing for reaching wider segments of people.
Promotion: ZARA promotion strategies shall be used with new digital media
marketing channels, leveraging wider scope of innovation among new end goals
through which brand is able to develop higher profitability.
M3 Rational for using global approach and implications
The rational for using global marketing approaches can be understood by the fact that
ZARA aims to be highly diversified in business segments and in programming high
innovation among all marketing channels to built global position for itself. The comapny
ZARA by using global marketing factors to expand into new customers segments have to
focus onto gaining developed synergy of globalisation where untapped countries have wide
opportunities of high profitability and stronger goodwill onto international markets.
Implications of the expansion into international market will be that ZARA can build strong
portfolio of business into varied business segments and variably develop string business
networking (Maggiori, 2017).
M4 Marketing mix into international markets
Marketing mix into international markets by ZARA will be focused to effectively
program out innovation into marketing, price factor being highly stable and placing itself into
wide expanded international market which is highly competitive with changing business
scenario. ZARA has to determine various new marketing mix innovation factors to generate
high developed working scenario and high developed international marketing factors
(Hollensen, 2019).
D2 Critical evaluation of marketing mix factors
The marketing mix factors have the potentiality to develop wide international market
where there are business opportunities to gather high extended customer segments and
marketing mix factors need to be strategically formulated for development of large
profitability. ZARA wit strategically develop new functional channels for its proposition
among the international market where there is strong synergy and diversity among customers
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which can be targeted with strong marketing factors along with high innovation programmed
into business (Marti. and Javalgi,2016)
PART 3
P7 International marketing approaches
Introduction
Centralised approach of international marketing can be understood as the method
where marketing team at headquarters makes most of the various marketing decisions and the
plans which enables in executing marketing programs.
Globalisation has opened up wide business opportunities and strong business
functionalities for new businesses also who wish to develop strong presence within
international world business scenario with various international marketing approaches
The differentiation between globalisation and internationalisation can be understood as
the fact that globalisation enables company to build wide scope within world metrics
and whereas internationalisation gives expansion of business into one country only
where strategies are built wide scope onto new working paradigms.
Explain (approach)
Domestic market orientation: When company is domestically developing market and
orientation with new strategies of wide innovation, strong fundamental development
through which more profitable output can be developed to pertain onto new synergy of
marketing factors
Implications: Zara with domestic market orientation will enable to program out
strong presence within domestic development through new innovation products
which will yield onto new synergy for gaining on new determinants for marketing
Multi domestic market orientation: It can be understood as the domestic orientation
approach where multi staged services and productive development for higher innovative
market synergy can be attained by brand for technical advancement.
Implications: Zara will be able to develop wide scope of business opportunities with
multi domestic market orientation where new paradigms are worked on strongly
presence itself.
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Global market orientation: It can be understood as the global marketing orientation where
focus is developed to bring on diverse parameters which are worked on to bring on keen
synergy of profitability and recognised goodwill among world consumers.
Implications: Zara will be able to develop strong presence into global marketing
orientation factor where brand will be able to develop strong paradigms pertaining
onto keen factors for competitive market strength
At this approach ZARA marketing department has to work with high expansion and
international market factors which will enable to direct exporting of products and services to
in-country subsidiaries.
Analyse (Approach)
Another international marketing approach is decentralized marketing programs, marketing
functions and decision making are innovatively pushed output into the field. At this approach
products are heavily innovative and significantly localised in order to be sold more among
customers developed market share where there is wide expansion option left for company to
develop large diversified into business projects (Meyer. and Peng, 2016).
Implications (effect)
P8 Home and international orientation
Introduction
Home orientation can be understood with the fact that the company is orienting new
products portfolio and services within the already established market segments where the
company is presently working. The home orientation can be more functionally developed into
various arenas where the company can innovatively extend its marketing factors to new
segments of customers but within the local domestic geographical market where all services
are limited and product shall be developed and focused into only domestic market.
International marketing orientation can be understood as the method where ZARA has to
program on new synergy factors of new innovative products and services to develop onto
new untapped countries market and can work onto new trends to bring on more diversified
business services (Sinkovics,Richter and Schlaegel, 2016). ZARA can successfully program
out its marketing factors within international marketing segments by working on social media
promotion and gaining large diversity to bring on strong successful hosting of all services.
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Porter 5 FORCES
BARGAINING POWER OF SUPPLIERS (MEDIUM) BUYERS POWER (MEDIUM) SUPPLIERS POWER (LOW) THREAT OF SUBSTRITUTION (HIGH) THREAT OF NEW ENTRANTS (HIGH)
ZARA have to focus onto competitive factors such as the strong goodwill, capital structure
within competitive business world where there are wide business opportunities for using of
innovation and creative development of new end customer preferences through which
wider segmented profits can be attained.
The international market orientation holds various big opportunities to analyse various
parameters onto which ZARA can work on for gaining strong diversity among business
factors and regenerate long term business position by analysing the already established
competitors. The wide market analysis and industry factors among various companies into
international markets can be done by working towards structuring the data from social
media handles and google optimisation which will further add on building long term
business factors of goodwill.
Competitive
International competitive factors within global business scenario have to be developed by
ZARA for using up innovative business practices, keenly programming new decisions for
stronger business proposition which will develop new end goals.
ZARA can successfully host wide international market orientation by using latest
promotional patterns and decisions to develop wide high scale innovative marketing factors
which will promote the higher business goals. Varied customer market customer preferences
can be analysed and the company can successfully develop strong business factors onto
which high yield of technical advancement can be relevantly programmed. (Vellas, 2016).
M5 Competitor analysis and recommendations
Competitor analysis is highly important for gaining strong factors of diverse business
positioning and factors onto which large strategic planning can be formulated for gaining
wide operational efficiency among all products and services. The customer’s analysis is one
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of the most high developed parameter which will not only enable to implement strong
international marketing gaols and to promote large international position for itself within
global business position. ZARA has to develop various competitors’ market metrics onto
developed synergy factors where technology can be used to successfully host itself into new
market positions and develop new products of fashionable preferences according to
customers. Recommendations are that for international marketing orientation ZARA shall
also invest in training of employees and the human capital which holds various further
opportunities and diversification to generate strong positional fundamentals. ZARA can
successfully host various new marketing trends and policies which will enable to develop
long term synergy among customers markets share factors (Zucchella and Magnani, 2016).
D3 Recommendations to maximise international market opportunities
ZARA for maximising its position and developing wide international market
opportunities have to actively work on high innovation among all channels of marketing
where there is wide business opportunity and work on investing high effective resources to
gain strong market share factors under wide business opportunity. ZARA can also program
on new synergy of working fundamentals with large creative business functions which will
enable to generate higher functional operations, keenly leverage larger profitability factors
and also develop stronger working networks fir technical advanced services. The company
can also look upon hiring best marketers and technical’s with large expansion and higher
diversity to bring on larger working avenues into international markets where retail
companies are facing huge competition from each other.
CONCLUSION
This report can be concluded with the detailed analysis on the scope and essentials of
international marketing where there are business opportunities and further diversification
factors which will enable ZARA to develop strong position for stronger business focus. The
report has concluded business functioning of ZARA which is one of the best retail company
to be operating its business within UK industry which is planning its further diversification
and expansion into international market where high competition are there between various
companies. The report has concluded partnership international marketing strategy where
ZARA can host various new marketing segments and develop the wide synergy of innovation
at work which will aid in gaining higher synergy of technology advancement (Laverie,
Humphrey and Bolton, 2018). There is wide synergy of stringent marketing which has built
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high diversified business competition for itself and the research paradigms also need to be
technically advanced for gaining strong position among global business positions. The
conclusion also explains how varied business activities and marketing of new innovation
business succession can help to generate strong innovation at work under which higher
technical advancement can be further added.
REFRENCES
Books and journals
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Hudson, S., Huang, L., Roth, M.S. and Madden, T.J., 2016. The influence of social media
interactions on consumer–brand relationships: A three-country study of
brand perceptions and marketing behaviors. International Journal of
Research in Marketing, 33(1), pp.27-41.
Laverie, D., Humphrey, W. H. and Bolton, D. E., 2018, May. Integrating Customer Journey
Mapping and Integrated Marketing Communications for Omnichannel and
Digital Marketing Education: An Abstract. In Academy of Marketing
Science Annual Conference (pp. 205-206). Springer, Cham.
Madura, J., 2020. International financial management. Cengage Learning.
Maggiori, M., 2017. Financial intermediation, international risk sharing, and reserve
currencies. American Economic Review. 107(10). pp.3038-71.
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Martin, S. L. and Javalgi, R. R. G., 2016. Entrepreneurial orientation, marketing capabilities
and performance: the moderating role of competitive intensity on Latin
American International new ventures. Journal of Business Research. 69(6).
pp.2040-2051.
Meyer, K. and Peng, M. W., 2016. International business. Cengage Learning.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Potrafke, N., 2019. The globalisation–welfare state nexus: Evidence from Asia. The
World Economy. 42(3). pp.959-974.
Sinkovics, R. R., Richter, N. F., and Schlaegel, C., 2016. A critical look at the use of SEM in
international business research. International Marketing Review.
Sutcliffe, B. and Glyn, A., 2019. Measures of globalisation and their misinterpretation.
In The Handbook of Globalisation, Third Edition. Edward Elgar
Publishing.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Zucchella, A. and Magnani, G., 2016. International entrepreneurship: theoretical
foundations and practices. Springer.
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