Evaluation Marketing Strategy and Recommendations
Zara is one of the largest apparel retail that functions across the countryside of Rome and principally deals with clothing and several other additional accessories. Zara is the principal sister concern of the INDITEX group which is extensively considered as the largest apparel retail of the world. This study is dedicated the marketing strategy that is practiced by the management of Zara against the backdrop of Eight prime parameters of Marketing Mix. On that note, the entire of marketing inclination predominantly practiced by Zara has been intended to explore also in order to fathom their perception regarding STP (Segmentation, Targeting and Positioning), brand image and Corporate Social Responsibility (CSR). The corresponding study is expected to deliver insightful apprehensions regarding the underlying aspects of marketing strategies that shapes the pursuit. Those apprehensions have been attempted to explore further in order to devise the acumen that might assist other identical business concern to accomplish their ultimate objectives.
Brief Introduction and Current Scenario of the Organization:
In this regard, the popular adage that has been extensively employed to characterize the reputation and euphoria that Zara owns can be posed, “Zara is the Coca Cola of fashion”. Zara has been able to transform their status into one of the largest manufacturer of affordable apparels and other fashion accessories along with a rapid expansion across the globe. The marketing trend (that Zara has been able exhibit) to readily cope with the emerging street fashion that almost eliminates the prevalent perceptions in the paradigm of apparel has proliferated their current market status. As per (Hu, Zhang & Sørensen, 2015), the marketing strategy practiced by Zara is clever in the sense that they have been able to monitor the underlying alterations in the prevalent taste and trends sincerely. According to Khan, (2014), this proclivity to treat the marketing the apparels with a global impulse ensures Zara’s esteem towards every taste that subsequently condition the buzz regarding their brand. Moreover, their relative competitive that they have been able to retain is because they are able to launch their new designs within two months as compared to the other identical concerns that took at least six months to launch their products after finishing the design. On that note, their target customers are the ones who wish to be contemporary in terms of accessories and outfits. Amancio Ortega, one of the founding members of Zara tends to belief that “Clothes are a perishable commodity” that are evidently reflected in the marketing strategies. This judgment regarding their own concern encourages him to address that the deliverables are equivalent to “fresh baked bread” that have the ability to cope with every change in the global trends of apparel (Pike & Page, 2014). In terms of ecological considerations, Zara happens to be one of the foremost concerns that is ecologically sound as the management of Zara is prone to use wind turbines and solar panels in order to answer their demand of energy. As per the outcomes of the survey conducted by (Jones-Berry, 2017), Zara has been designated among the few concerns who has been able to manufacture toxic-free clothes.
The most significant feature in the profile of Zara is that they do not seem bothered regarding the promotion of their brand. Their founders have never been seen to spoke about their brand and public conferences (Loosier et al. 2015). They does not even advertised their brand as they are convinced about the fact that quality is the only ingredient to acquire success in this volatile business industry of apparels.
Concept of 8Ps:
In evaluating the marketing strategy there includes with the marketing mix of the Zara Company to recognize the performance. The marketing mix includes with the 8 Ps that makes the proper marketing of the company. The company could use this marketing mix to determine the various brand offering and product. This are followed as:
The product determines the thing that has been manufactured by the company to meet the demand of the consumers. The company needs to introduce innovation in the product that makes the maximum amount of profit (Khan, 2014). However, the products needs to be delivered among the consumers at an affordable price.
In this case, Zara company provides the Coco Cola for fashion that makes the major brand products among the maximum number of consumers. The organization major strength includes with the response made from the needs of the consumers. Zara Company tries to manufacture all its products in their respective areas and makes the control of all the products. The company tries to make the control of the entire products manufactured. There arise with the unique features by available of the product in the latest trend. The products are delivered directly to the consumers from the stores. Zara has been providing various designs in the products to meet the demand of the customers. There includes with the varieties that makes the variations in the range of products.
The price is the most important things that need to be consider by the company to provide the products among the customer. The firm needs to focus on the price of the products and needs to distribute among the consumers at an affordable prices (Pike & Page, 2014).
The Zara provides the products at a less price to meet the demand of the products. It helps to enhance the products available among the maximum number of consumers. Various strategies make the affordable products at a minimum amount of price. There is involvement of certain customers that makes the affordable amount of products. The firm has developed the products using training cost required in the products.
In order to carry out the better marketing process, there includes with the promotion that lies with the marketing mix. This makes with the advertisements, sales, promotion, selling of the products through the correct form of audiences. This helps the firm to acquire new customers through the better mode of promotion.
In this case, the Zara Company provides the better policy in marketing through the involvement of promotion. It involves with the opening of new stores that makes the better experience of the products that is available among the consumers. There are involvements of better strategy that makes segments of market that involves with the children, men and women latest fashion. This could be available among the middle class category (Chen & Huang, 2017).
The proper marketing process requires a proper place that makes the spread of the products among the consumers. The place is the vital thing in the marketing mix and needs to maintained by the company.
In this case, Zara Company has been lying in various areas to make the products available among the consumers. This help to provide the product available among the maximum number of consumers. The company manufactures 500 latest brand products that have been designed properly among the consumers (Evans et al. 2014). However, the company has a better planning to make the stores in such a place in different countries, so that the design products could be available for the consumers. The better position of the stores helps the company to increase the selling and further makes the maximum amount of profit.
v. Productivity & quality
In the marketing mix, the quality and productivity plays the major role. The productivity of the business could be increased through the cost management that helps to pass the range of consumers. The company needs to maintain the quality of the manufactured products as this would helps to increase the productivity (Wirtz & Lovelock, 2016).
In this case, the Zara Company makes a better strategy and planning to enhance the quality and productivity of the products using equipped machines to manufactures the products that could be available among the consumers. The management needs to focus to increase the productivity by maintain a better relationship with the staff members. However, there are involves with the quality that helps to increase the profit.
In order to carry out the marketing mix, there involves with the entire process that makes the delivery of the entire service in a positive manner that enhances a better forms of products among the consumers.
In this case, Zara Company needs to focus on the process at the time of carrying out the marketing mix. From the entire process of the marketing mix, the customer could able to understand the services delivered by the company in terms of new manufactured products. The entire process helps the company to know about the yield profit made from the dedicated staff members (Loosier et al. 2016).
In order to carry out the marketing, the people are the vital thing that needs to focused by the management. The entire activities of marketing mix are followed by the people that lies with the services and products that makes the possibility of business.
In this case, Zara firm needs to focus on the people that could carry out the entire marketing process required in the business. It helps to increase the profit earned by the company carried out by the various people. This includes with the managing director, sales of the staff and marketing departments to carry out the entire marketing mix in a positive manner that makes the complete procedure of business.
viii. Physical environment
The physical environment provides the tangible elements that make the better elements in the tangible forms.
In this case Zara company makes the use of services in such a manner that provides with the elements in the physical areas. This makes the bulk of the consumers that provides the payments in the intangible areas. The company focuses on the service to formulate the physical evidence that makes the better forms of consumers (Goulielmos & Plomaritou, 2016).
Evaluating the marketing strategies:
Product in Zara: In terms of product as a governing parameter of the Marketing Mix, Zara has been able to draw the interest of the apparel enthusiasts and brand executives simply by employing a prudent marketing strategy. The trends that advocates their approach towards their products can be categorized as,
- The company never shown any interest to outsource any of its segments of manufacturing unit as most of the time they command their resources to turn them into the desired deliverables.
- They have been able to maintain the time-effectiveness as they appear dedicated to launch their products within two months after confirming the design. The USP that drives their pursuit is to develop latest trends while coping with the emerging trends readily.
- The potential drawback that their marketing strategy flagrantly suffers from is the lack of diversity in accordance with the season while operating in the overseas and other alternative markets (Mathabathe, 2013).
- Furthermore, Zara needs to devise the strategy that enables them to cope with the native demands that owns an embedded cultural dimension and might assist the unit to earn prominence in provincial quarters.
Pricing in Zara: It will be a flagrant exaggeration to admit that Zara is dedicated to deliver apparels of global standards in an affordable price since it is very evident from their mission statement that the concern wishes to be one of the affordable brands across the globe The analysis can be framed upon,
- Zara is dedicated to cater their deliverables in a reasonable price in order to enable a large section of potential consumers to avail those easily. On that note, it is imperative to address that Zara owns separate outlets driven by the cumulative impulse of both of the general and cream customers.
- An empirical analysis will obviously suggest that Zara is inclined towards premium pricing though they enjoy a massive turnover from the genral section of the audience as well.
- The approach towards pricing can be characterized by optimizing the investment of development and individual learning of the subordinates.
Promotions of Zara: In this regard, as it was mentioned earlier that Zara seem adamant to pursue their uniqueness simply by endorsing to their objective to operate in Zero Investment in Promotional Purposes. They made it very clear that they are interested to invest the capital to advertise the inauguration of new retail outlets across the country. Endowed with the experience, the management of Zara seem competent enough to discern the differences that holds a prominent concern within the potential consumers. This introspection enables them to consolidate their relative competitive edge. In terms of Promotion, their marketing strategy can be characterized as the product of Differentiation, Experience and Exclusivity.
- The promotional activities of Zara strictly relies on the word of mouth publicity.
- They appear very competent in terms of market segmentation as their considerations suggest that the age ranging from 18 to 40 are most conscious about the leading trends that have been able to create a buzz in the fashion industry.
- The approach of market segmentation that Zara has been able to imbibe ensures their insightful awareness as it predominantly comprises of a majority of women belonging from a middle class category.
- They have been able to maintain an unimpeded access all across the stores situated in Spain.
- Their warehousing and shipment strategies also supplement a considerable proportion in the circumspect marketing strategy that Zara has been able to exhibit in terms of inventory and persuading the customers. Furthermore, they have been able to introduce several aspects including online shopping, bar coding; Online and several other Computer Aided Purchases that will further enable the unit to emancipate the sales characteristics and overall business performances.
Place of Zara: The governing feature that Zara enjoys the advantage of is framed upon the fact that the entire retail is vertically integrated that enables the managers to seek access of the other stores.
- The management of Zara is adamant to manage all the associated tasks, from designing to manufacturing and distribution by themselves that considerably contributes to their transformation as a globally appealing fashion outlet.
- They have been able to expand globally in a rapid manner.
- They have been able to endow their consumers with the identical shopping experiences all across the globe as the majority of the ownership is governed by the company itself. This is also one of the major reasons behind their relative competitive edge.
- Zara is predominantly prone to hire young designers and consequently train them to be able to take quick decisions (Wirtz & Lovelock, 2016).
- The major reason behind the reason of consolidating the brand image of Zara that the unit is able to dispense more than 500 new designs while enjoying the liberty to price their own products. On that note, Zara enjoys a healthy rivalry along with their potential rivals in terms of pricing their products.
As per the above study this particular company according to their “zero investment policy” does not invest any capital for promotional purposes. Zara can consider investing a reasonable amount of capital for their promotional purpose as it can only facilitate the branding of their products and more consumers can be subjected to their marketing. This can prove to be a successful move as the company can reach a huge number of customers at the same time.
Zara can effectively undertake certain measures in order to serve the purpose of corporate social responsibility. The company can emphasize on implementing certain policies for the sustainability of the labors. Moreover, the ecological compatibility that Zara has been able to imbibe within their products enable their products to emancipate towards the status of eco-friendly. As per some recent forensic studies that has been conducted on the material quality of the products that Zara has been able to deliver promotes their rank into the cumulative apparel entities that are supposed to provide 100% toxic free clothes. In this regard, Zara can be considered as sound in terms of Corporate Social Responsibility as the ecological consideration is one of the governing parameters to abide with. These also let the unit to be legally sound since the ecological aspects is the origin of the legal constraints.
Apart from that, the management of Zara has been able to exhibit a circumvent compatibility in terms of Market segmentation as they are prone to keep a critical and sincere eye to monitor the minimalist customer demands and subsequently shape their latest design. This ensure their efficiency of market differentiation (Mikhailova, 2013).
The founding members of Zara can be recommended to turn an eye towards the aspect of promotion and advertising their potential deliverables since excessive reliance on the word-of-mouth can be harmful for the entire concern. In this advent of technological expertise, it has become almost an obligation for any business concern of global standards to adopt the technological means of brand advertising in order to cope with the abrupt leap in the customer demands.
In the light of the above study, it can be concluded that Zara has been practicing a prudent and circumspect marketing strategy against the parameters of the marketing mix. Moreover, the groundbreaking aspect of the entire strategy is the fact they adamantly refused to invest in the promotional activities and still being capable to acquire the proportion of success. This can be posed as concrete recommendations for the identical concern that might assist them to thrive towards their ultimate objective. Moreover, the strategy evidently reflects the fact that minimalistic demands can be the potential origin to gain competitive advantage from as it is directly related to the prudent sense of market segmentation. Overall, apart from encouraging the respective apparel unit to invest a little in the promotional activities, it can be posed as an instance as a critical and sincere apparel unit in terms of Marketing Strategy.