Marketing Plan for Zara: Achieving Business Objectives Through the 7Ps

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

Marketing Essentials
1

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
LO2..................................................................................................................................................7
LO3................................................................................................................................................10
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16
2

Introduction
The primary function of business organisations in performing their transactional activities in the
business environment is to garner profits from the economy. Marketing function focuses on the
business possibilities of an organisation in order to garner profit as well as providing the
customers with services and products that would satisfy their expectation.
The following study develops a detailed understanding of the marketing function and its
interrelationship with the other departments in context to Zara. Established in 1975, the brand is
owned by Inditex group of retailers. Zara is deemed as a stalwart in the international fashion
industry focusing on the core values of beauty, functionality, sustainability and clarity
(Inditex.com, 2019).
3

LO1
Explain the role of marketing and how it interrelates with other functional units of an
organisation
The marketing function of an organisation relate to the activities that enables the company to
develop better tactics in order to achieve business objectives efficiently in the competitive
business environment. The development of advertising strategies, pricing, product development
and market research are the core functional elements of the marketing function that ensures the
success of the organisation in the market environment (Baker, 2016).
a) Explain how the key roles and responsibilities of the marketing function relate to the
wider organisational context
The role of marketing within a business organisation is identified through the operational
procedures performed by the organisation in their regular business activities. Roles and
responsibilities of the marketing function in relevance to Zara can be identified as follows:
 The research performed by the marketing department of Zara provides the company
with the relevant information regarding the competition available in the business
environment. This ensures the business strategy developed by the organisation is in
parity with the competition in the external market environment.
 A strategic planning is essential for the growth of the business in the competitive
business economy. The marketing department ensures Zara develops proper strategic
plans for pricing and placing their products in the market sphere.
 The marketing function’s responsibility includes performing planning procedure for the
future scope of the company. The organisational need to develop proper plans ensures
the success of their organisation in the market environment.
 The tactical procedures are developed by the organisation according to the market
survey performed by the marketing department of Zara. This enables the company to
generate better profits through the tactical development of plans and procedures
necessary for catering to the demands of the consumer base.
4

Based on the market research provided by the marketing department of Zara, the research and
development department develops new products and services that would satisfy the needs of the
customer demographic. The strategic plans devised by the marketing department within the
company ensure the business management department within the company is able to achieve the
objectives through the sales procedure (Grant, 2016). The product development plans formed by
the R&D department is in accordance to the market research the marketing department performs
(Situmeang et al., 2017). The human resource and finance departments within Zara refer to the
procedures the marketing department creates in order to achieve the business objectives of the
company.
b) Analyse the roles and responsibilities of marketing in the context of the marketing
environment
The role of marketing within Zara’s internal business environment can be analysed through the
functional importance of the marketing department in generating profits for the organisation in
the competitive market environment. The responsibilities and roles performed by the marketing
department of Zara ensure the internal departments within the company are able to operate in
ways that would facilitate the achievement of the business objectives for Zara. The performance
of the functional departments within Zara enables the organisation to develop strategies that are
effective in addressing the issues of the consumer sector. Utility of the marketing department’s
operations provides the company with the scope of creating procedures that facilitate the
fulfilment of the business objectives (Grönroos, 2017).
c) Analyse the significance of interrelationships between marketing and other functional
units of an organisation
The significance of the relationship that the marketing function shares with other functional
departments of an organisation is identified through the efficiency of the organisation in creating
and delivering services and items according to the consumers’ needs. The profitability of an
organisation is determined through the relationship the marketing function shares with the other
departments of the institution (McDonald and Wilson, 2016). It is through the relationship
between the marketing function and the other operational units within Zara, that the company is
able to provide the growing customer base with services and items that satisfy their needs. The
5

pricing strategy as well as the product development procedure formed by the brand is in
accordance with the market research developed by the marketing department of Zara. This
relationship is beneficial for developing the profitability of the company as well as increasing the
market share of Zara in the competitive business environment.
d) Critically analyse and evaluate the key elements of the marketing function and how they
interrelate with other functional units of an organisation
The elements of marketing include performing an effective market survey that allows the
business management department of Zara to identify the aspects of the external and internal
business environment that enables the organisation to create appropriate business strategies. The
internal and external market analysis provides Zara with the knowledge regarding the macro and
micro factors that influences its business operations. The advantages of linking the operations of
the marketing function with the other functional departments of the organisation are observed
through the improvement in efficiency of the organisation as a singular unit (Toon et al., 2016).
The functional ability of the marketing department to identify the customers’ requirements
provides necessary information to the R&D department for creating appropriate products. The
pricing strategy of the products suggested by the marketing department enable the finance and
sales department of the organisation to gather an idea regarding the profit earning capacity of the
organisation through sales.
The benefits of having an interlinked organisation ensure the operations of one department are in
relation to the functions of another department. This interrelationship between the departments
enhances employee engagement and provides the organisation with success in the competitive
business environment (Alagaraja and Shuck, 2015).
6

LO2
Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve
overall business objectives
1) Compare the ways in which different organisations apply marketing mix to the
marketing planning process to achieve business objectives
Organisations develop their marketing strategies according to the business objectives of the
company. The development of business strategies deployed by companies is based on the type of
marketing mix the company develops for achieving their goals in the competitive business
environment. The following table will provide detailed information regarding the application of
marketing mix in market planning procedures for Zara and H&M in the UK business sector.
Elements of marketing mix
(7Ps)
Zara H&M
Product The brand ensures their
products are fashionable and
are designed according to the
current trends. It is in
accordance to their motto of
providing fashionable and
trendy clothes to their
customers.
Availability of wide range of
products to satisfy the various
needs of the customer ensures
the success of the brand in the
competitive economy.
Catering to wide range of
customers efficiently is
fulfilled by the brand through
the application of marketing
mix.
Price The brand implements a
premium and competitive
pricing strategy according to
the type of product they sell.
The pricing of the products
are arranged according to the
H&M practices a competitive
pricing strategy for their
products, as the target
demographic for the brand is
middle income earning group
of consumers. The pricing
7

target consumer group the
product is aimed to satisfy.
tactic applied by the brand
enhances their popularity in
the consumer market.
Place The products are available for
sale from their stores as well
as online retail outlets. This
increases the availability of
their products effectively.
The popularity of the brand in
providing desirable products
and services enhances their
brand image in the business
environment.
Products are made available
to the customers through
various stores located in
popular areas as well as
through their online stores.
The brand has liaisons with
other apparel retailers to
provide their customers with
the popular products.
Promotion The brand relies on the
customer perception for
promotional activities of their
products. Investments are
made to develop the quality
of products rather than
promoting and advertising
their products.
H&M practices sustainable
promotional activities to
garner the consumer attention
to their products. The
company’s aim of
maintaining communication
with the customers is
achieved through the growing
online presence of the brand.
People Zara practices appropriate
employee engagement
activities as well as maintains
effective people planning
attributes in their internal
operations.
H&M provides equal
opportunity to a wide range
of labour from domestic as
well as international market
environments.
Process Every store of Zara has an
efficient RFID system as well
as e-payment opportunity for
Experienced employees who
also receive hands-on training
for their professional
8

the customers. This enables
the company to perform
efficient procedures within
their operations.
development schemes
manage H&M stores
effectively. The brand
performs appropriate CSR
activities in order to achieve
competitive advantage in the
business environment.
Physical evidence The stores are located in
popular areas and display the
culture projected within the
organisation. The
effectiveness of the ambience
of the stores is reflected in
their mobile application as
well.
H&M stores and application
are proof of the urban and
edgy fashion the brand
exhibits in the market
environment.
Table 1: Comparison of marketing mixes between Zara and H&M
(Source: Created by the learner)
2) Evaluate different tactics applied by organisations to demonstrate how business
objectives can be achieved
The various tactics applied by brands in order to achieve their organisational objectives affect the
growth and profit earning potential of the organisations. The successful implementation of the
marketing mix allows organisations such as Zara as well as H&M to develop their productivity
in accordance to the demands of the target consumer group. Zara’s objective of providing their
customers with services and products that promote beauty, functionality, sustainability and
clarity is evidenced through their application of the marketing mix. The product development
procedure performed by Zara reflects their work ethics and organisational culture. The brands’
ability to perform business operations according to the market demands are fulfilled through
their capacity to create marketing mixes in accordance to their business objectives.
9

10

LO3
Develop and evaluate a basic marketing plan
1) Produce and evaluate a basic marketing plan for an organisation
2) Produce a detailed coherent evidence-based marketing plan for an organisation
3) Design a strategic marketing plan that tactically applies the use of 7Ps to achieve overall
marketing objectives
Marketing planning procedure can be defined as the process that allows allocation of resources
according to their availability within the market environment (McDonald, 2016). It is significant
for the growth and sustainability of the business operations since the appropriate planning
process enables organisations to develop and market their products according to the market
demands.
Strategic marketing plan for Zara
1.1 Executive Summary
The strategic marketing plan provides a detailed overview of the new products that the brand
would develop according to the target consumer demographic. An effective market analysis is
performed to identify the external factors that influence Zara’s business in the UK economy. A
SWOT analysis provides an idea about the possible opportunities and threats that influence the
business operations for the organisation.
1.2 Vision
The vision of Zara is to provide their customers with fashionable items that reflect their values of
beauty, functionality, sustainability and clarity.
1.3 Goal and objective
The main goal of the brand is to provide their customers with products that are cost effective and
are of good quality.
11

The objective of the brand is to provide their consumers with affordable and good quality clothes
that are fashionable as well as trendy in the business environment. The business objectives of the
brand would be achieved by increasing the customer base and their profitability.
1.4 Situational analysis
External analysis is performed by PESTEL analysis as follows:
PESTEL Factors Impact on Zara
Political factors The political scenario for Zara’s operations in
the UK market environment is stable since the
brand gathers raw material and labour from
local areas within the environment. Brexit
referendum would influence the export
activities Zara performs according to the
location of the store.
Economic factors The premium and competitive pricing strategy
followed by the company is beneficial for the
organisation as it allows the brand to perform
their business operations as per the economic
ability of the consumer demographic (Knoke,
2018).
Social aspects Zara follows a holistic and sustainable business
strategy in order to satisfy their internal and
external stakeholders in the business
environment.
Technological attributes The brand implements updated technology
within their operations to provide their
customers with effective experience while
making transactions with the organisation.
Environmental factors Zara follows an effective business strategy in
accordance to the environmental policies of the
UK business environment. The brand follows
12