Marketing Report of Zara Case Study

Introduction of Marketing Report of Zara Case Study

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The term marketing can be defined as the practice by a firm accepts to advertise the purchasing or dealing of an item or amenities. In order to identify the marketing related work of a company it is important to see what kinds of theories are related to it. Thus one of the main notions behind conducting this is to see the marketing related activities carried out by ZARA. The study has been divided into many segments which will show the micro in addition to macro analysis of Zara. Along with that the integrated marketing communication as well as integration of the offline as well as online media of Zara will be discussed in detail.

Company Profile

Key facts and relevant points about the company

Zara is recognized as one of the globe’s biggest global style firm. The company is actually belongs to Inditex which is again identified as the globes largest fashion team. Zara is in general a Spanish based company whose headquarter is located in Galicia. The firm functions in an excess of 22200 shops as well as has active stores in 88 nations. Zara has reliably gone about as a leader in quick design situated in a vibrantly responsive production network (ZARA 2022).

What sector does the company operate within?

Zara is basically functions within the fast-fashion industry that design contemporary cloths for its valued clients. Fast-fashion is the word deployed to illustrate the apparel sector that is engage in producing modern dresses for both male as well as female (Bhardwaj 2010).

Company’s stage in the capability pyramid and implementation of big data analytics

Considering the capability pyramid of Zara it falls under the below mentioned stages:

Capability Pyramid

Zara mainly use big data in the form of PDA device as well as RFID tags in its apparels.

Marketing Environment Analysis

What is the Marketing Environment?

The term marketing environment alludes to the entire of inner as well as exterior aspects that straightforwardly or not directly persuade the company’s decisions associated to advertising practices (Shaltami 2020).

Internal Environment

Strengths

The strengths of Zara are usually identified by its competitive advantage against its competitors. Zara receives a cutthroat benefit by producing the client chic garments at more or less reasonable costing. Also the synchronization among Zara’s business tactics as well as functional techniques is much more competitive as compared to its competitors like H&M and Mango. Zara's general procedure is accomplishing development by means of broadening with vertical reconciliations (Mazaira 2003)

Weakness

The segment in which Zara needs to improve is in its promotion in addition to designing area. Zara is giving very less on its promotional activity. If Zara goes after a hostile promotional tactics it might double its revenues as well as earnings. In addition to Zara is additionally dealing into sole earning designs and doesn’t go after a customary design idea. This will help them in competition with other brands too and also will help in marking a name in any market where it is functioning (Duoyan 2021)

Opportunities

Although Zara is already using human intelligence technology still it needs to look after its e-commerce segment so as to increase the opportunity of earning more. Thus it can be said that Zara gets an opportunity to improve its e-commerce segment which can be done by expanding its client base as well as motivated shopping by saving additional time in the implementation of e-commerce and adding more cloths in their online site. Here using the e-commerce does not only mean developing the website but also the payment related thing and other things which can be done under one roof (Yip 2016).

Threats

The most recognized threats which Zara usually face are the sudden change in the trends in clients. Mostly it has been seen that customer usually change their styling preference after few months which implies that garment companies need to make the updated with new designs to hold back the clients. In this case it has been seen that Zara is only focussing on their patent design and fail to create any new design which is creating a threat of losing prospective clients (Sevic 2021).

SWOT of Zara

Micro-Environment

In this segment of the study the two elements from the Porter’s Five Forces of Zara will be discussed in detail. The two elements that have been selected in this segment are bargaining power of the supplier as well as the Bargaining Power of Customers.

Bargaining power of the supplier

In case of Zara it can be said that the negotiating power of contractor is almost zero. Zara gives out its manufacturing wherein most part of its manufacturing arrives from a team of sent like India, Bangladesh, and Morocco in addition to Spain. As it has a distinct list of contractors negotiating power of contractor is not applicable in case of Zara. Companies like Zara command the expenses moreover the contractor gets a very little part of the revenue. There is almost zero difference in items provided by the contractors that again offers additional edge to the firm. The risk of contractor in the forward execution is inferior as it needs big funding savings. So, overall from the discussion it has been identified that Zara has no bargaining power of supplier (Pirone 2010).

Bargaining Power of Customers

Within Zara the negotiating power of the client is adequate. Zara have secondary negotiating power which put pressure over Zara to discover as well as distinguish to drive as well as hold back the purchaser. As the main focal point of the purchaser isn’t in a definite business sector, they have differing degree of negotiating power. Substituting expense of clients is inferior that again put pressure over Zara to continue appropriate as well as please the client demands simultaneously keeping the time as cutthroat expense. Zara goes after a client-driven approach and toils on further developing the general client experience to contend with the contenders. Zara is carrying out an upward execution approach in the inventory network model to reliably carry out new popular design for its clients to empower expanded consumer loyalty. There's no client's danger of in reverse coordination. Client don’t have straightforward opinion in decreasing the expense although due to option of varied garment sourcing purchasers have numerous alternatives to select from because of which client have indirect power of negotiation (Opitek 2021).

Porter's Five Forces Analysis

Macro-Environment

Social Factors

The demand and supply of Zara products are affected due to the volatile social trends. It also influenced the willingness as well as the availability of the employees to work within the environment. Zara makes a different variety of products and has a huge market so it is quite not possible to shift on social factors (Ferrell, Hartline, and Hochstein, 2021). However, the company is not concentrating on a niche market and they cater the products to the various segments but they do proper research before entering the new market. There is an important point regarding the cultural differences that affect customers’ buying decisions in the clothing line. Zara also does not believe in many experiments and makes local culture clothes for the customers. So that it does not affect the acceptance of people for buying the products.

Zara is a big brand as the company also invested in different types of initiatives and efforts for society. Zara mainly focused on conserving energy and using an eco-friendly approach for the management of stores. Zara needs to pay attention to the online performance of the company as consumers’ preference is changing daily and the preferred online services.

Technological Factors

Zara is a brand that has a huge customer base as well as money for getting out most of the data. The company also invests a lot of money in understanding and analyzing the set of data that helps to appeal to the customers (Morgan, and et.al., 2019). There is a website of a company that helps the management to interact with their customers around the world. However, the communication with the customers can be done online as well as personal aspect. However, Zara also established a partnership with Toyota to apply some concepts along with the lean facility like the manufacturing operations. Thus, it can be stated that Technology helps to increase the responsiveness of the company to the customer.

In the present situation, Zara is looking the expansion by using technology to reach large customers. It is one of the most famous fashion retailers the company is looking for big data and analyzing the different data sets for reaching out to the customer. At the time of the pandemic, Zara was very quick for investing in The E-Commerce online business which paid off the business in the best way. The online communication platform plays an essential role to connect with the customers and make changes in services as per the requirement.

Integrated Marketing Communication

Advertising:

Zara does not believe in advertising its products and no one can see a television commercial as well as ads along with the big banners on the different platforms of the internet. There is no advertisement for Zara, but then also it is one of the most successful brands on the Marketplace. However, Zara uses unknown models for the advertisement of their clothes, and the company does not hire any special designers birthday complete leave work based on their designer’s talent which is young as well as unknown, this is the considered an advertising strategy of Zara that allows the company to be on the top and successful around the world (ZARA, 2017). The company also detects the latest trends and brings them to the stores in many ways and promotes effective as well as managing window dressing which is considered a successful recipe for Zara. Thus, without spending money on advertisement, Zara holds a great position in the marketplace and considers a big premium in the market share. They follow the policy of no advertising which plays a significant role in the success of the business. They believe in satisfying a wide range of customers so that they can come back and share the experience.

Sales Promotion

Zara pages full attention and their product quality, pricing as well as place in opposition to the promotion. The company rarely advertise any sales of the stores are having sales promotion like other retailers. However, it is another interesting part that the company never placed their logo or brands of their products. Zara is famous for being press-shy, their owner doesn't give any interviews, unlike others competitors. The company also not getting engaged in any showy campaigns so this is the reason that not following the manager’s promotion strategy for the company. The social media reach of Zara is quite exceptional and there relies on the word of mouth promotion as well as social media instead of spending on costly marketing tools. The company highly focuses on product price as well as a place that helps the company to reach its large customer base (Perera, 2017). They need to consider the strategy of attracting customers with the help of their stores and pricing strategy. They do not rely on sales promotion activities as well as advertising and attract the customers with minimum sales promotion activities. So they have a strong customer base through which they develop their new range of products and services.

Direct and Digital Marketing

Zara has their social media profile on different platforms like Twitter, Instagram as well as Facebook. As per the present scenario, the significance of different pictures and videos regarding fashion on social media is considered a digital marketing platform for Zara. On the different social networking sites, Zara mainly posts about its content based on a product that is helpful to offer the latest trends to a wide range of audiences. However, there are young females were obsessed with the collection of Zara and they give priority to products based on customer pReferences (Duralia, 2018). Zara also runs a certain number of integrated campaigns which helps to bring engagement to the brand.

The company also shows interest in an approach of influencer marketing on Instagram. This helps to bring efforts regarding the social media appraisal for the different retailers. It helps to bring changes in the perception of the people’s minds and is considered a digital marketing strategy for the products and services. Thus, the direct marketing activities are less in the aspect of Zara and they try to establish a certain aspect of promotion tools for the strategies (Juska, 2021).

Integration of Online and Offline Media

How the company integrates online and offline media using relevant examples

The integration of e-commerce in the flagship is considered to be the simpler way for Zara to integrate online and offline media. Zara is functioning both as a retail store as well a pick-up location and this feature provide different tools for growing the sales of the business. 

Mix up the online and offline data of Zara, as the management of the company gets the data of the customers which helps to build detailed information about the customer for offering services (Blakeman, 2018). For instance, the procedure of integration is started with the data collection technique to prefer customer needs.

Analyze the marketing campaign decisions and influence of data analytics.

The key elements of the market campaign decision regarding Zara include that they are using store location as well as store displays as a marketing strategy. The company chooses some of the premium locations within the city which help to ensure the high rate of customers for their stores. Zara is considered to be the brand loyalty which many believe in investing in the luxury stores that are major point for their success (Š?iltere, and Bormane, 2018). It is considered a marketing campaign only which helps to bring a wide range of customers and attract them to purchase their products.

Zara mainly uses the depth of Data Analytics for managing their supply chain as well as delivering products to the customer. The fashion market is highly disrupted by Zara using Data Analytics for keeping up with the demand of customers on a real-time basis which helps to retain their customers.

How was integration achieved – impact and significance

The impact of Zara’s integration of online and offline media is considered to be positive for expanding the market area of work. It helps the company to stand out from the rivalry and the techniques used by Zara are quite different compared to the other companies. Further, Zara also does not use any advertising strategy to promote their products and they only use some models for presenting their collection (Twum, and Yalley, 2021). With the help of data analytics, Zara can track the records of customers and understand their preferences for optimizing online and offline marketing activities for better performance. Thus, it is important to have online and offline media integration for the company that helps to increase the response of customers to the promotional activities of the business. The integration has a positive impact on the services offered by Zara and it helps to bring back the old customers to the business.

What is the analysis telling the reader?

The analysis helps to understand that the major reason behind the success of Zara is that the company did not try to produce clothes of a single design. Creativity is a major aspect of Zara and always comes up with fashion and new designs based on the season. The performance of the company was also enhanced with the help of different integration of marketing communication including sales promotion and direct marketing which helps the company to grow properly (Kliatchko, 2019). Another aspect of the analysis shows that Zara takes the feedback of customers in a very serious way and makes changes as per the different requirements of the customers. However, this involvement of the customer helps in creating a use brand loyalty for the business. Thus, the marketing strategies of Zara are based on less is more which develops the aspect of enhancing the product’s quality and attracting a wide range of customers.

Conclusion

From the above study, it can be concluded that Zara has some ups and downs to integrate the procedure of business. Zara also has some unexpected increases in the level of profit as well as market share by implementing the strategy of fast fashion which helps the customer to get new trends and products. The market analysis of Zara Mehndi shows that there are different factors in social and Technical activities which can impact the process of business. It gives an idea about the use of advertisement and marketing strategies by Zara is nothing in comparison with the other popular brands. It shows that the company also developed an extraordinary supply chain management which helps them to continue the business with more integrity and reliability. Zara maintains continuous growth in sales and gives competition to the competitors. Thus, it is an important point to consider that Zara is not using any advertising strategy but then also leading the marketplace with the different tactics.

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