Zara's Digital Marketing Strategy: A Comprehensive Report

This report provides a detailed analysis of Zara's digital marketing strategy. It begins with an introduction to digital marketing and its importance for brand awareness, specifically focusing on Zara as a case study. The report then delves into a PESTLE analysis to examine the macro-environmental factors influencing Zara's performance, including political, economic, social, technological, legal, and environmental considerations. The subsequent sections address issues related to internet usage, the benefits and shortcomings of social media platforms for businesses, and the effectiveness of the social web in building brands. The report evaluates Zara's utilization of social media and various approaches for different organizations. The analysis covers topics such as Brexit's impact, customer engagement, technological advancements, legal compliance, and environmental considerations. It also addresses the challenges of data privacy, intellectual property, and advertising regulations within the context of digital marketing. The report emphasizes the importance of adapting to changing customer behaviors and leveraging social media to enhance brand awareness and customer loyalty. The content is contributed by a student and available on Desklib.

DIGITAL MARKETING
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BOODY...............................................................................................................................3
TASK 1............................................................................................................................................3
Impact of Macro-Environmental factors on company’s performance.........................................3
TASK 2............................................................................................................................................5
Issues of internet usage................................................................................................................5
TASK 3............................................................................................................................................7
Benefits and shortcomings of social media.................................................................................7
TASK 4............................................................................................................................................9
Effectiveness of social web in building brands...........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital marketing is the organizational activities by which organizations tend to increase
their brand awareness through the means of internet in such a way that high level of brand
awareness can be spread which will increase company’s customer count. ZARA is the chosen
organization for the analysis in this report, ZARA provide clothing options to its customers at an
affordable pricing through the medium of internet. Analysis of social media platform and social
web is done in this report. With that evaluation of company’s utilization on the usage of social
media platform is done in this report, also analysis of different approaches for social media
platforms for different organizations is done in this report.
MAIN BOODY
TASK 1
Impact of Macro-Environmental factors on company’s performance
Macro environment is the environment is the environment at which company operates in
and external factors make a direct impact on company’s performance. Following is the PESTLE
analysis of ZARA.
Political-
Political instabilities make a direct impact on company’s performance and this can be
seen in the case of ZARA in which UK’s decision of leaving Brexit has reduced company’s
market because company has to pay taxes in the areas which were freely available before the
events of Brexit. Although ZARA sells its products through the means of internet because of
which company is having a limited number of physical evidences as compared to its
competitions (Bakhtieva, 2017). However transportation costs have increased and because of
which company is forced to increase the pricing on its products due to which customer’s
engagement with organization is reduced. But still company is able to reduce the chances of
brand switching because it make its advertisements through the means of internet and since
number of internet users are increasing in number because of which company is able to maintain

high brand awareness. ZARA also has to make chances in its digital marketing due to the
impacts of Brexit UK may implement changes in the data protection law.
Economical-
Economic conditions of a geographic location make a direct and significant impact on
company’s economic performance because ZARA has to establish pricing in such a way that it is
able to attract wide range of customers for high sales and large profit or to establish premium
pricing for high profit with low sales (Kingsnorth, 2019). Now since due to the events of Brexit
many customers have lost their jobs and thus in order to maintain high sales company has to
change its pricing strategy in such way. This also make a impact on company’s social media
marketing because since organization has to advertise itself through the means of internet and
company has to develop its working strategy in such a way that customers can be attracted
without reducing the profit margin otherwise it will make a negative impact on company’s
economic growth.
Social-
Customers are changing the ways of buying products and there in order to increase their
engagement with organization company has to make sure that it is able to provide as per their
requirements by which customer count can be increased. These social factors include several
factors such as changing market trend or customer requirements this is important for ZARA to
continuously improvise its working in such a way that it is able to provide products on the basis
of customer requirements (Mandal and Joshi, 2017). Thus company has to analyse its targeted
market audience and then must improvise its working process in such a way that customers can
be attracted towards the organization by which company can seen increment in its organizational
sales.
Technological-
Technological advancements and their increasing their reach towards customers is
motivating organization to extend their reach towards these technological developments by
which high organizational sales can be achieved which will ensure that company is able to
achieve its organizational sales by improving the communication bridge with the customers.

These technological developments are enabling organizational customers an ability to showcase
their requirements and provide their feedbacks regarding their experience with ZARA by which
company can provide products on that basis. Therefore organization must also provide customer
a effective platform through which customers can provide effective feedbacks regarding their
experience with the organization (Patrutiu-Baltes, 2016). Company can also use this effective
communication for increasing customer’s engagement with the organization by which it will be
able to reduce the chances for brand switching which will enable it to develop effective working
strategy which will ensure goal achievement.
Legal-
Legal factors the governmental rules and regulations which company has to follow
otherwise it has to pay penalties which will make a negative impact on its economic growth.
Since ZARA provides its products mostly through the means of internet because of which it has
to follow several rules which are developed by the governments in order to maintain a safe and
secure work place and organization has to follow these laws. This becomes very important for
organization because it provide products in other geographic locations also and because of which
it has to make sure that UK is having a good and friendly relation with the host country because
if political instabilities arises then company’s market will be affected in a negative way.
Environmental-
ZARA has to make sure that it is able to develop a organizational structure in such a way
that it is able to provide high level of benefits to the environments (Riyadi and et.al, 2019). This
is important for organization because by this company will be able to develop a positive
organizational image in front of customers by which it will be able to develop a effective level of
brand personality which will increase customer’s engagement with the organization and thus
ZARA can achieve its organizational sales more effectively.

TASK 2
Issues of internet usage
Internet users are continuously increasing in number and because of which they have to
provide high level of working capabilities to the customers in such a way that they are able to
utilize several services from the comfort of their homes. Thus the buying capabilities of the
customers is also reduced because which organizations like ZARA have to change its working
styles in such a way that large number of customers can be attracted towards the organization
and also at the same time organizational expenditures can be reduces. This improvisation of
ZARA is able to surpass the limitations of traditional marketing by which high sales can be
achieved.
Digital marketing is beneficial for organization because it provide high level of
effectiveness in terms of increasing brand awareness because customers are increasing their
engagement with online activities. If organizations increase their engagement in that field then it
will get high level of loyalty towards the company which will reduce the chances of brand
switching. Internet is full with other market competitions because several organizations are
trying to increase their engagement in organizational activities in such a way that they are able to
achieve high organizational sales and for which ZARA has to make sure that its develop
advertisement is able to minimize the chances to copyright. With that organization also has to
make sure that customer’s right to privacy is not affected, this is a critical part because
organizations have to track customer’s engagement for evaluating their core requirements by
which it can provide products to increase its organizational sales. However ZARA has to make
sure that it must rely on the feedbacks provided by customers and also company can also
implement chat robots which are cost and efficient and also at the same time motivate customers
to efficiently showcase their requirements by which sales can be achieved (Vieira and et.al,
2019). This implementation of chat robot will also improve the communication bridge between
customers and company by which chanced of high sales can be achieved and also at the same
time company can reduce the chances of brand switching. For developing this effective working
environment organization can also create a customer connection point through the means of
websites and by which it will empower organizational customers to increase their engagement
with organization in such a way that ZARA will be able to provide products on that basis.

However ZARA has to make sure that the developed platform is according to customers
requirements and easy to use by which company can make sure that brand awareness is
continued and also if the customer connection point is attractive then in that case company’s
advertisement will be done from the customer side (Zhu, 2019). This is most important because
products are provided as per customer requirements the customer will get a feel that organization
is working as per the instructions because of which they will increase their engagement with
company and thus increase the chances of goal achievement.
Therefore organizations like ZARA have to keep on improving its working capabilities
such as it is able to work as per current market competition by which it will be able to attract
trendy customers and also at the same time they will be able to gain a competitive edge through
which company can improve its grip on market and this chances for goal achievement can be
increased.
Privacy and Data protection- This is important because ZARA has to take customer data by
which it can develop products on the basis of their requirements but the privacy law restricts
organization from doing so because of which company has to develop its customer touch points
and ask for suggestions.
Intellectual Property- Company also has to make sure that it is able to develop effective
working strategy in such a way that it properly fulfils the intellectual property rights like
trademark, copyrights because if company fails to follow these laws the it will have to face
penalties.
Advertising- Organizational advertisement has to be developed in such a way that a clear
message is provided to customer but it has to make sure that no misleading message is provided
to customers because then company will have to face penalties.

TASK 3
Benefits and shortcomings of social media
Currently social media plays an effective role to different businesses and companies for
effectively promoting their brand at the large scale in the market place. In this situation, upper
management at Zara have to order its marketing team for highly considering digital marketing in
own workplace. However, the marketing team of this company already knows about the impact
of social media marketing, and this is the main reason that currently uses social media marketing
(Tardieu and et.al., 2020). However, the marketing department have to highly consider this
strategy of marketing to promote own brand very effective in existing highly competitive market
place. Currently there are many effective platforms of social media are simply available in the
market place, like; Facebook, Instagram, Twitter, YouTube, LinkedIn, Snap-Chat etc. In this
situation, most businesses are taking lots of benefits from these all platforms of social media.
Basically, social media platforms provide many benefits to a business, but this way of marketing
has some shortcomings as well, and this is the main reason that, each business have to use social
media marketing strategy carefully after analysing it’s all impacts and influences on the business
performance.
Strategy of social media marketing is beneficial to a business for informing millions of
people about own products and services. Basically, currently maximum population of the world
is on different social platforms, and using these platforms on daily basis. In this situation, when
the Zara’s upper management will promote its brand on different social media platform, then it
can simply and can simply reach information of its different products and services to many of
people. However, social media platforms are not everything to a business for promoting own
brand, because there is traditional way of marketing also equally matters in the brand promotion.
But in this dynamic and modern world, upper management of Zara should give higher priority to
social media marketing or digital marketing strategy, because this strategy is very beneficial in
saving company’s lots of precious resources and time in promoting own brand internationally.
Currently all above mentioned social media platforms has reach at almost all countries, in which
when Zara upload its any post on different social media platforms in the form of video ad or
photo ad, then many of people can see these video or phot ads in across the world (Srivastava,

2016). That’s why social media strategy is very beneficial to business for promoting own brand
effectively in just small budget.
On the other side, social media has some shortcomings as well, in which the marketing
management at Zara have to consider them. For example; social media marketing strategy is not
beneficial to company in that market places where internet signals are not available, in this type
of situations, the management of company get influenced to run its marketing campaigns by
using traditional method of marketing or promotion. On the other side, social media platforms
are very time-consuming platforms according to many people, and that’s they have not used
these platforms in own daily life, in which this is very necessary to Zara for not all considering
social media strategy to promote its brand. Basically, the team should have some special
marketing strategies for its each type of market segments.
Advantages and disadvantages when in business partnership with social media platforms
There are some advantages and disadvantages of using social media platforms to promote
own brand has been discussed below (Gaba, 2020). Of course, currently social media is giving
great opportunities of all types of ventures to promote their brand, but still it has some
disadvantages as well.
Advantages
Saves precious resources and time: This is one of the main advantages of social media, in which
when the Zara use social media platforms such as Facebook, Instagram, YouTube etc. then these
platforms can promote this brand effectively in market place by saving its many precious
resources and time. The company’s marketers no need to visit one market segment to another for
promoting Zara while using social media platforms.
Cost effective: This is another major advantage of social media marketing, because when the
marketing team of Zara use social media, then it has no need to invest the large amount of fund.
Basically, there are television marketing, newspapers marketing etc. strategies are very costly
and ineffective in this modern world, but there is social media marketing gives opportunity to
business for not investing high fund to effectively promoting own brand at the large scale in
market.

Disadvantages
Security and privacy policy issue: This is the main disadvantage of social media marketing in
market place to a business (Pantano and et.al., 2018). Basically, when a business wants to start
its social media marketing campaign, then first is needs to create social media handles and
accounts on different platforms, and while creating the account, the business have to share its
different private information to logged-in. But, many times, there are many unethical hackers
hacks these platforms, so social media marketing is not safe and secure to a business in some
cases.
Low people attention: Currently almost all businesses runs their marketing campaigns through
social media marketing. Even a small business also can easily run its campaign on social media.
That’s why a user of social media platform sees ads of many companies in a day, so now users
no gives proper attention to these ads on social media. In this situation, if marketing team of Zara
run its marketing campaigns on social media, then it can also not gain proper attention of people
in market place.
TASK 4
Effectiveness of social web in building brands
Social web is basically a set of social relations which has linked people by the World
Wide Web (WWW). This social web has encompassed that how software and websites are
developed and designed for supporting as well as fostering social interaction. Currently there are
many social media websites simply available in the market place which provides the facility of
engaging with different people through an application or software. Currently there is each social
web has its own website as well app, so any person can simply access the world of social media
by creating account on different social media apps (Tehseem, Sibtain and Obaid, 2018).
Nowadays, there are Facebook, Instagram, Twitter, Snap-Chat, WhatsApp etc. are some major
social media webs, in which most people have highly used these websites in across the world.
On the other side, the brand is also known as the image of a business or company in the
market place. In this situation, if any business has positive image in the society, then its brand
value will automatically increase in the market place. Currently most businesses try to work in

the welfare of society in order to improve their brand image. Basically, each business should
have an excellent brand image to generate very appropriate profit margins in the market place. In
this dynamic and modern world, there are different social media platforms gives opportunity to
different companies and businesses for aware large number of people about own brand (Rader,
2019). Basically, social web has very large scope, in which if Zara’s marketing department run
its marketing campaigns on these platforms, then it can simply aware millions of people about its
brand in the market place.
Currently marketing department of Zara fully knows about the impact of social web on
the brand image, and that’s why it has used many social media platforms, like; Facebook,
Instagram, Twitter etc. for building its great brand image in the market place. Social web
basically gives opportunity to Zara to aware or inform maximum people about own existing
products and services.
The Marks and Spencer is highly reputed retail brand of clothes, and this business also
highly uses social web in its daily operations (Tan and He, 2019). Basically, marketing
department of Marks and Spencer also knows that it can simply improve its brand image as well
as value by running its marketing campaigns through social media, and this is the main reason
that this clothing also has gained a very positive brand value in the recent few years just because
of social web.
Recommendation
The marketing department at Zara should take maximum advantages from the social web
in market place. Basically, this way of marketing will give great opportunity to the business for
effectively boost own brand value internationally. In this dynamic world, there is huge
competition in each industry or sector, so after using social web, Zara can simply aware many of
people about its exclusive range of products and services (Rodríguez, 2018). At the end, this
company will be able to gain huge competitive advantage in market place due to having an
effective brand value in market place.

CONCLUSION
It can be concluded that the digital marketing is the best choice for Zara to effectively
promote own brand at the large scale in marker place. Basically, there is very higher competition
in the clothing industry, in which by using different social media platforms, this business can
simply aware millions of people about exclusive range of products and services. Basically, social
media marketing is the part of digital marketing, so it needs to consider both in order to gain
huge people attention market place.

REFERENCES
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