Marketing Strategy Assessment: Zara's Performance and Recommendations

This report provides a comprehensive analysis of Zara's marketing strategies. It begins with an introduction to marketing management and its importance in the business sector, focusing on Zara, a Spanish apparel retailer. The main body of the report examines Zara's STP (Segmentation, Targeting, Positioning) strategy, analyzing how the company segments its market, targets customers, and positions its brand within the fashion industry. The report then explores Zara's marketing mix, detailing the company's approach to product, price, place, and promotion. Furthermore, it assesses Zara's relationship marketing strategy, highlighting current tactics used to engage with customers. Finally, the report offers recommendations on how Zara can improve its marketing strategy, based on the preceding analysis. The report concludes with a summary of the findings and includes references to relevant sources.

Marketing
Management

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Analyse STP strategy in context of organisation...............................................................................3
Examine concepts of marketing mix..................................................................................................4
Assess relationship marketing strategy with an emphasis on current tactics......................................5
Provide recommendations on how your chosen organisation can improve its marketing strategy.....6
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9
Books & Journal:...............................................................................................................................9

INTRODUCTION
Business sector is changing and increasing at rapid scale due to increase of
competition. Marketing management refers to process of planning controlling decision
making and touching the names of customers at every aspect (Reic, 2016). It is important for
organisations to carry out their marketing management in such a way that effective results are
achieved obtained without facing any issue or problem. Main purpose of this report is to
access the effectiveness of marketing strategy within of business sector. This report
comprises of STP strategy, marketing mix, relationship marketing strategy and
recommendation in context of organisation. Zara, Spanish apparel Retailer Company
headquartered in Spain. Enterprise sales in fashion accessories apparel clothing shoes beauty
and perfumes etc. It is located globally and focuses on emerging marketing trends.
MAIN BODY
Analyse STP strategy in context of organisation
In Marketing, and it is important for entrepreneurs and businesses to be aware about
information with in a field so that goals and objectives are achieved in appropriate manner. It
is essential to implement strategy with an enterprise so that complete advantages gained. The
fashion industry has been evolving with the changing period of time and is being adopted by
organisations. Without adopting effective strategy it is not possible for entity to accomplish
their goals within a timely period. In relevance of retailing industry, changes are bound to
occurs weather report frequency and it has become important for this industry to use strategy
as a less tactics within the business activities to survive in this competitive market. The
concept of marketing management gives brief knowledge about effective decision making
which is to be carried out inappropriate manner. The industry of retailing sector, need to be
active to survive for longer period. It is duty of a manager implement effective strategies as
well as tactics which produces higher productivity (Decker, 2017).
STP strategy
STP strategy is a type of a strategy which is used by marketers the purpose of
developing business target market for audience. This marketing strategy is useful in
developing digital strategy. In context of Zara, they also use this STP marketing study which
helps them to be aware about market conditions and situations which are beneficial for their
growth and development. The marketing manager of a company makes assure that objectives
are achieved in a most appropriate way achieving competitive benefit. STP strategy
comprises of three elements which are further discussed below-
Segmentation
It is the first element of strategy in which it is defined as process of dividing market
on the basis of different variables such as demographic, psychographic, geographic

etc. In retailing sector, it is important to focus on market size and scope so that
potential market is being examined which have an ability to deliver profitability to the
business. With increase of competition in fashion industry, it has become important to
segment the market so that resources and decisions are being carried out
appropriately. In relation with chosen organisation they segment their market on the
basis of demographic variable in which it focuses on men and women gender, 15-45
age people, and income based people. Through this demographic segmentation they
are able to divide their market which helps them to carry on their marketing activities
effectively. With help of segmentation, it helps enterprise to information regarding
customers’ needs and demands and market prior to the starting marketing activities
with in a field (Umam, 2019).
Targeting
It is another element of STP strategic approach, it reflects the targeting of potential
customers or market who actually buy the product. It is essential to do the targeting so that
business grows in fast way and higher development is done. Target customers or potential
market it is important to conduct market analysis through which information is collected and
gathered in appropriate manner. In relation of selected organisation, they target market of
men and women aged to 15-45 year old, middle class people and fashion addicted group,
customers with purpose of purchasing latest fashion trends. To focusing on the target market
it is easy for them to implement it further marketing strategy (Lindgreen, 2018).
Positioning-
This is important component of STP approach because positioning is defined as
goodwill of a brand in the minds of customer. It is often stated and examine that a brand with
a good position has a large customer base and power to influence others. Customers purchase
the product of enterprise with the higher positioning as compared to lower position in a
specific market. Positioning of a brand depends on certain factors such as perceptions of
customers, competition level, etc. (Luce, 2018). In Viewpoint of Zara, they follow
democratize fashion and also produce more fashionable apparels and products comparison
with their competitors such as Hennes and Mauritz, Aeropostale etc. So, selected company
has positioned themselves as a brand which provides high fashion and trending products at
lower prices to fulfil needs of a customers at all aspects. So, selected company has positioned
themselves as brand which provides high fashion and trending products at lower prices to
fulfil needs of a customers at all aspects. Through properly carrying out this STP strategy, it
is easier to achieve objectives in most appropriate way.
Examine concepts of marketing mix
Marketing mix refers to set of actions which are used for advertising brand with in a
market. It is essential to understand the concept of marketing as it helps in using of right
products at right place at right time and price. Through understanding of this concept gives
deep insights of market trends and situations which are beneficial for growth as well as
development. In relevance of Zara, they also use marketing mix within their company which
is explained as follows-
Product-

A product refers to item or something which is used for Zara is been considered as
one of the luxury fashion retailers globally which offers large numbers of products and
services to men, women as well as children.
They assure the delivery of their products as they give out their product in biodegradable
plastic bags. They also ensure that products of company are made up of high quality which
delivers total satisfaction to customers. Strategy of their product is changeable & depending
upon the taste of target market as it impacts upon availability of product line of company.
Price-
A price is a value which is put on a product of an enterprise. Without a price, it is not
possible to carry out exchange process within the market. In fashion industry price has a high
impact on end-users perception (Lion, 2016). This forces entities to adopt pricing strategies
such as penetration pricing, skimming price, psychological pricing and many more. Through
these pricing strategies marketers are able to influence distance of targeted market. In context
of Zara, their products prices are mostly at low level and which reflects the penetration
pricing of enterprise. Customers often purchase products or services after examining of price
and making decisions regarding is it affordable or not affordable.
Place-
In this component of marketing mix, it refers to a location from where decision of a
product is carried out and customers are acceptable to the brand. In reference of Zara, we
have where retailing stores globally in around 8 countries and with over 6,500 outlets.
Moreover besides their physical stores they also implement their selling activities through
online via are websites and application. It makes it easier for individual to approach to brand
products (Lichao, 2017). It is necessary to provide convenience place to targeted audience so
that they are easily accessible to company’s products in effective manner without facing any
so it is essential to analyse distribution place within our business field.
Promotion
A promotion is an important part of business which is to be carried out in effective
way. Promotion and advertising refers to promote a product of a company in market for using
different tools as well as techniques. In reference of selected organisation, they spend less
money on advertising and do not implement marketing campaigns at larger scale as compared
to their competitors. Main purpose of not providing a larger level is that they prefer word of
mouth as promotion tool and advertising through social media. It is more cost effective as
compared to physical marketing tools. It is necessary to make brand recognisable in a
competitive market so that there is a large access to customers and resources. It is a time
consuming process which requires a deep level of market information and research analysis.
From the analysis of the above specified matter it has been seen that marketing mix is
an essential part of enterprise which is required to be considered at priority level.
Understanding and adapting with this approach help in making effective decisions. Focusing
on these components of marketing mix wide range of information which can be used for
processing of business activities.

Assess relationship marketing strategy with an emphasis on current tactics
In enterprise it is crucial to focus on target audience needs and demands so that positive
results are achieved. With rise of rivalry industries, maintaining a positive relationship with
customers has become priority. Customer relationship management is a critical procedure
which is needed to be adopted buy businesses. So relationship marketing strategy is used by
enterprises to gain end users for longer period. It is often seen that customers who are
retained to a brand with longer period have a deep impact on organisation Goodwill as well
as profitability scale.
Relationship marketing strategy- Relationship marketing strategy refers to
statistical approach of retaining and engaging with end users or target audience in effective
manner. Main purpose of relationship marketing strategies is to develop long term
partnership in between organisation and consumers. This strategy also has a deep impact on
current actors of fashion industry at wider level. In context of selected entity, they also
maintain and adopt with relationship marketing strategy through which they engage
themselves with targeted customers.
Zara also adapt relationship marketing strategy at all business aspects activities. For
example- Zara engage with their target audience through delivering low-cost product with
premium quality. Also, they target every segment of their customers and provide them with
large products portfolio with fulfil their needs as well as demands in proper manner. Another
relationship marketing strategy adopted by them is that they provide with biodegradable bags
to customers through which they develop positive image of enterprise for providing
environmental benefits (Kim, 2018). It also effects upon their tactics such as developing of
business activities in more foreign countries. With large base of customers globally, it makes
it easier for them to open new stores or outlets at a new location. Also, they use strategy
through creating an engaged process through use of social media tools and promoting
products online understanding consumer behaviour insights.
So, it has been stated that tactics and strategies are needed to be adopted after a deep
level of market research so that problems do not occur in further process. Moreover through
engaging with targeted audience it is easy to accomplish mission and vision of a company
prior to the time limit. In fashion industry, it is necessary to understand and retain customers
with the business because apparel products are changeable within a year and according to
which end users make decisions. So, properly following market trends and carrying out
positive relationship with each other gives benefit in achieving future growth (Baltes, 2016).
Provide recommendations on how your chosen organisation can improve its marketing
strategy
From above examining of matter it has been seen that there are some areas of Zara
which are needed to be improved. It is necessary to focus on weakness of a company as help
in developing and access to more new opportunities within relevant field.
So there are seven types of recommendations which are required to be considered and are
mentioned below-

 As in context of fashion retailing industry market trends and behaviour changeable, it
is necessary to conduct research analysis through which new ideas are easily
accessed. In relation with Zara, it is recommended to them that they need to carry out
a deep level of market research so that appropriate marketing strategy is adopted with
purpose of engaging with targeted audience.
 It is also recommended that they can also opt for physical marketing tools to promote
products within a niche market so that profit is earned at higher level. Through
focusing on these marketing towards it will be easier for them to understand consumer
behaviour insights in more efficient manner.
 Another recommendation to Zara is that they have to be more active and focused
towards their targeted audiences as there are many small fashionable firms which
provide trendy clothes and accessories which impacts upon profitability of company.
By considering this point it will also improve their marketing strategy which is
beneficial for accomplishing goals appropriately.
 By improving services and portfolio products according to market trends chosen
enterprise can also improve your marketing strategy. Moreover, it is also stated that
then you need to change their store layouts so that customers are easily engage and it
is easier for them to find relatable product.
 Furthermore, they need to increase their products price so that they can deal with
competitors in effective manner and also it will be easier generate more profit as well
as sales revenue.
Thus, from the above specified recommendations it is being and lies to the need to
improve their marketing strategy through their skilled employees and management.
Improving these strategies will help them to expand their business at larger scale.

CONCLUSION
After a brief analysis of a report it has been examined that marketing management is a
wider and product concept which is required to be understood in proper manner. Moreover,
this report gives brief information about examining of management and market in business.
So, discussions have been made about marketing mix, relationship marketing strategy and
STP approach. It has been evaluated that it is necessary to have a proper knowledge about
field processing and other procedures are carried out accordingly.

REFERENCES
Books & Journal:
Reic, 2016. Events marketing management: A consumer perspective. Taylor & Francis.
Decker, 2017. Marketing management for consumer products in the era of the internet of
things. Advances in Internet of Things,7(3).
Lindgreen, 2018. Citation classics from Industrial Marketing Management: Celebrating forty-
seven years of publications on business-to-business marketing
management. Industrial Marketing Management,73, pp.1-6.
Luce, 2018. Artificial Intelligence for Fashion: How AI is Revolutionizing the Fashion
Industry. Apress.
Umam, 2019. Strategic flexibility, manufacturing flexibility, and firm performance under the
presence of an agile supply chain: A case of strategic management in fashion
industry. Polish Journal of Management Studies, 19.
Lion, 2016, April. Sustainability approaches within the fashion industry: The supplier
perspective. In Supply Chain Forum: An International Journal (Vol. 17, No. 2, pp.
95-108). Taylor & Francis.
Lichao, 2017. International Marketing of Taishan Shigandang Based on STP
Strategy. Journal of Landscape Research,9(3).
Kim, 2018. Linking marketing mix elements to passion-driven behavior toward a
brand. International Journal of Contemporary Hospitality Management.
Baltes, 2016. Digital marketing mix specific to the IT Field. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V, 9(1), p.33.
Caliskan, 2016, August. Exploring the Relationship Marketing Strategy of Ports. In Annual
conference of the International Association of Maritime Economists (IAME),
August(pp. 23-26).
Adomah-Afari, 2018. Relationship marketing strategy. International journal of health care
quality assurance.