Marketing Strategies of Zara: A Comprehensive Analysis

Desklib provides past papers and solved assignments for students. This report analyzes Zara's marketing strategies and plan.

Marketing Essentials
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Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
a)Explain how the key roles and responsibilities of the marketing function relate to the wider
organizational context..................................................................................................................4
b)Analyse the roles and responsibilities of the marketing in the context of the marketing
environment.................................................................................................................................6
c) Analyse the significance of the interrelationship of marketing functions with other functions
of organization.............................................................................................................................7
d) Critically analyze and evaluate the key elements of the marketing function and they
interrelate with other functional units of an organization............................................................9
LO2................................................................................................................................................10
a)Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives......................................................10
b) Evaluate different tactics applied by organizations to demonstrate how business objectives
can be achieved..........................................................................................................................12
LO3................................................................................................................................................13
a)Produce and evaluate a basic marketing plan for an organization of your choice..................13
b) Produce a detailed coherent evidence marketing plan for organization................................15
c)Design a strategic marketing plan that tactically applies the use of the 7P’s achieve overall
marketing objectives..................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Introduction
Marketing has evolved rapidly since the inception of globalization in the business market.
Marketing involves all the activities required for the development of sound relationships with the
customers of the targeted market. Zara SA is a multinational retailing company based in Spain
and engaged in the designing and selling of fashion products. These fashion products are mainly
comprised of clothing, accessories, and footwear for men, women, and kids. The key purpose of
this report implies the understanding of the marketing plan and strategies of Zara in the global
business market. The role of Zara marketing and its association with the other functional areas
of the company have been described. Moreover, a comparison has been undertaken of different
organizations regarding the application of the marketing mix into the marketing plan. On the
basis of gained information, the practice of developing and evaluating the effective marketing
plan of Zara has been applied.
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LO1
a) Explain how the key roles and responsibilities of the marketing function relate to the
wider organizational context
The marketing department is responsible for the launch and promotion of the products in the
market, the marketing department also develops new strategies according to the current market
scenario. The marketing department of ZARA takes its responsibilities very seriously and
continuously working on the points like:-
1) Monitoring the market scenario
It is very important for the organization to be updated with new trends coming to the
market, and with accordance to that provide the suggestion to evolve or modify the
products.
2) Guidelines to innovate the products
The marketing units are the one which is in touch with the new trends, so the marketing
unit has to provide the guidelines to the other department to modify the product of the
organization
3) To maintain the sale of the product
It is one of the main responsibility of the marketing department to check that the number
of sales should increase at a constant rate. If in case the sales are getting low the unit has
to provide new schemes to check that the sales should remain constant.
4) To communicate with the customers
Every organization wants that the customers should be fully satisfied with the services of
the organization, and here comes the role of the marketing unit to get in touch with the
customer and to imply the changes demanded by the customers.
The marketing department has to get in touch with all the department of the organizations
because they are mainly responsible to provide support to all the other units of organizations. As
above mentioned marketing department is there to give new strategies to the organization which
are required to match the market demand, so it is important that to get in contact with all the
other department to execute the strategy properly.
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b) Analyse the roles and responsibilities of marketing in the context of the marketing
environment.
If the organization want to grow its market then it important that the marketing unit should get a
positive marketing environment, and this environment depends on the marketing unit. If the
organization gets a healthy marketing environment, the marketing of the organization can
perform pretty well. The roles that should be considered by marketing in context to marketing
environment are:-
1) To value every new idea
It is important that the employees should feel that their ideas are given importance, and if
the idea gave is practical and feasible that should be implemented and credits should be
given to the individual.
2) Strategies should get everyone’s involvement
It is important that the strategies which are to be suggested or which is to be executed
should involve acceptance of the whole team. As if the one is not agreed with the
strategies that can be responsible for the dispute between the members of the
organization.
3) Interaction with the customers
For the organization like Zara to maintain its market, it is important the suggestion or the
issues of the customer should be given priority. And according to the suggestions
provided steps should be taken to overcome the issues. This interaction can be done on a
social media page or Zara can take help of customer support for that purposes.
4) To check the positives and negatives of the current trends
It is important that an idea which is provided should be considered both the positive and
negative sides of the current trend of the market. The idea is provided without any
analysis, sometimes it can be backfired and ends up creating a negative result for the
organization.
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c) Analyse the significance of the interrelationship of marketing functions with other
functions of the organization.
Marketing plans and strategies of the company play an important role in the other functions of
the firms such as finance, operations, management and production.
Marketing and Finance
In all the marketing strategies which are used for any brand, product, product line expansion the
budget, cost and margin should be taken care off. Budgeting and profitability analysis are the
key aspects of the marketing plan and control. Financial tools and investment criteria should be
used as key factors while making any of the marketing decisions. Expenses on promotion,
advertising, expansions, price and distribution should be done while keeping a charge of the
organizations’ budget.
Marketing and production
The link between the marketing and production of the firm is the dual one. The production
determines the types and the amount of the products to be marketed and also sales forecast is
important for the production of the firm. (Micu, D., et.al, 2012) Cost and financial analysis
effects the marketing and production of the firm. Taking into consideration the changing
demands of the market company formed two major strategies. change production capacity by
changing in the resources b. changing in nature, timing and demand according to the barriers of
the production. These can be obtained by marketing strategies such as sales promotion,
advertising, pricing, distribution, Implementation of these strategies requires the information on
the market.
Marketing and Procurement
Procurement is dependent on the marketing activities of the firm. The market research helps in
focusing the needed new raw material for the consumers. The strategies and plans involved in
the marketing help in identification of the supplies of the raw material which supplies the needed
inputs at low cost. (Robet, W, et.al., 2015)
Marketing and Research and development
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Marketing strategies help in deifications of customer’s need demands and reactions to the new
product idea. The implementation of the new product stage starts from the idea generation and
the development of the final product. ( Lusch, R.F. and Vargo, S.L., 2014) Market research helps
in identifying the wants and the necessities of the customer and the new product are developed
accordingly.
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d) Critically analyze and evaluate the key elements of the marketing function and they
interrelate with other functional units of an organization.
The whole and sole responsibility of the team looking after the marketing affairs is to increase
the business. Zara too has a well- trained team which has taken charge of this department. They
look after various matters which somehow or other impacts the overall productivity of the
company. Marketing, in clear words, means to understand the needs and requirements of
customers and fulfilling their desires accordingly.
Marketing is interrelated with the other functional units of the organization. It can be defined as a
reference tool which helps in increasing the business by keeping a check on all the other
departments. Proper marketing has enabled Zara to acquire the topmost position in the fashion
industry. (Adesoga,2016)
Marketing can work fine if it has proper communication with all the other departments running
under the same organization. The workforce under marketing communicates with the other
departments like- Human Resource, management, production, finance, research and development
(Christopher, 2016).
Human resource informs the marketing team about the various employees who are being hired.
They notify them about their skills and learning capabilities. They are then allocated the
department under marketing accordingly.
Finance department tells them about monetary issues. The marketing team then manages its
brand promotions accordingly. This helps them to know about the budget beforehand.
Research and Development teams inform the marketing team about the various new technologies
which they will be working with. This helps the marketing team to promote the business by
keeping a view of the latest technologies being used. It will increase more and more customers.
Production team under Zara helps the marketing team to know about the quality of products
which is being offered. This enables the marketing team to provide the actual information to its
purchaser. It will serve ZARA to attract huge customers. This will create a sense of trust among
the employees for the company.
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LO2
a) Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives.
Zara is one of the leading fashion brands preferred in various countries. The key points which
have led to its popularity- are the quality which is being offered. The latest trend which is
followed by the company in the pattern of the designing and most importantly the prize at which
it is sold. It is the fusion of all these ingredients which has made Zara what it is today.
Zara follows the operation of 7P. 7P primarily stands for-
Product- It confirms that right quality is being sold. Availability of the products according to
customers need is also looked after ( Costa, 2017).
Place- This team makes sure that customers from any place can purchase the product from Zara.
This is done by proving them customer care service.
Price- Zara has ensured that its customers do not face any problem related to the payment
method. They have provided all the possible ways to the customers by which they can pay for
their product. Zara keeps on offering discounts as well as its regular purchaser.
Promotion- Zara follows various promotion channels. It has various social platforms like
Instagram, Facebook, where it keeps on promoting its product and reach to people directly.
People- Zara has various people appointed who are assigned the different departments according
to their skills, calibre and learning capabilities. These employees are given proper training which
enables them to handle this department efficiently.
Physical Evidence- Experts handles the online website of Zara. This team makes sure that their
online customers do not face any problem. They keep checking on the packaging of the product.
Process- The team under this process makes sure that the customer is given the first and
foremost priority. It has well-defined expertise who looks after the IT department and make sure
that all the processes are running well.
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b) Evaluate different tactics applied by organizations to demonstrate how business
objectives can be achieved.
There can be different tactics which are applied by the organizations from time to time to achieve
their set of goals. This includes soliciting various strategies which are required to be put in at that
particular situation.
Zara has also been using various tactics can have helped to achieve the position where it is right
now.
Zara keeps a full check on the need of the customers by attentively paying attention to the need
of the customers. They have provided a separate platform to its purchaser where they can raise
their issue issues and concerns which they have. They can also address the changes they want in
the products.
It has set is a fundamental plan and goal. The whole team under Zara wishes to achieve the set
target. Zara has various incentive plan and perks which helps in motivating its employees to give
their 100% in achieving the purpose (Elizaga,2016).
Zara keeps a full check over other industries which runs in the same business. It keeps a full
update about the latest happening which helps it to make sure that they are better from the
current running industries. It believes in providing quality services to its end customers.
Zara runs a proper team which handles all the crisis. Crisis can occur at any time. It does not take
place by seeing the size and number of employees. Employees under this team keep a check on
its SWOT analysis which is made with the help of the customer’s feedback. They work on the
pitfalls and try to weed out its shortcomings before it leads to any crisis.
All these factors have enabled Zara to maintain its name and position by continuously updating
its work culture by seeing the current scenario.
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LO3
a)Produce and evaluate a basic marketing plan for an organization of your choice.
Zara is a retailing chain with various stores located worldwide. The marketing strategy is based
on the expansion instead of promotion and advertisement. It evaluates how the technology and
the other source of media influence Zara’s market pl.ans
Job Statement
Zara expands at the rate of fashion, trends, society, and ideas. They influence their business in
the market, with the people, traditions, and generations, they expand their business in a special
sensor for fashion.
SWOT Analysis
The strength of Zara’s is its rapid growth in their industry. Their ability is producing the latest
fashion clothes and best design to their customer. Its major strength is the intensity of their
participative culture and the efficient investment which makes their customer happy. Zara’s
weaknesses are their customer service but this weakness comes from the great opportunity for
development in the new market. The possibility of threat is the effect the global economic
recession which could increase the price of Zara’s product.
Marketing Objectives
• Increase purchaser equity
• Improvement in the purchase frequency.
• Spread brand awareness.
• Continue in extending the production rate.
Marketing Strategy
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Zara’s main aim is to expend the fashion clothing of female who’s aged between Women have
more interested in the fashion trends and their choices are updated according to the latest trend as
well. So, Zara improved their selling stores and include various kind of high-quality fashion
product at the appropriate price and their stores are located in the 70 countries.
Their next strategy is on price, they want to provide their product as much as in less expensive
and affordable to the common people, who really have an interest in fashion products and quality
outfits.
The marketing strategy of Zara’s is to bring their customer in their stores. Their motive is to
bring uniqueness in the Zara’s and other competitor product. They always want to improve their
current or existing style by which they steal the customer from other competitors.
These marketing strategies are evaluated by improvement in sales because marketing goal is to
increase the sales and revenue. The organization should always monitor their progress; compare
their strategy from their competitors. Use a questionnaire or survey by which they get the
feedback of their customer and in the last, they evaluate the return on speculation
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