Legal Environment And Macro Environment Evaluation Political Marketing Essay

The government plays a key point in virtually any business' success. Along with the balance of politics, Singapore federal has many policies to aid business by giving a stable overall economy; low rates of interest banks and competitiveness of the duty system. It is important factor for company to build up their product. Singapore does not have any restrictions on forex management and Singapore dollars can covert so that it is a confident factor for overseas investors to copy capital and profits in and out of Singapore. Singapore administration does not limit foreign investors to protect domestic industry for just about any reason. Thus, companies feel safe to increase and extend its business in Singapore.

Economy

Singapore is well- known as highly energetic developed country. A stable economy not influenced by inflation and fluctuations in the market is one of important factor for company's success. Based on the latest record 2010 by the earth Loan provider about the examination of business environment, Singapore's economy is known as to be easy and simple environment for conducting business and investment. Singapore Gross Domestic Product makes up about 0. 29% of the world current economic climate about 182 billion dollars. The greater development economy, the more levels of money consumers spending for shopping which means this is a favorable condition for development of Zara products.

Social and Cultural

Singapore located in the center of South East Asia countries which are central of the trade and economics brings a whole lot of diversity for his or her culture and cultural life. Based on the demographical, Singaporean is famous with the multi- ethics people and culture. Total inhabitants in Singapore was about 4. 99 million in Jun 2009 with 77% of Chinese, Malay 14% and 7. 6% of India. Since nationality in Singapore combined as well as their culture, its immediately effect the culture and practices of folks in Singapore. The traditional family values remain conserved however the younger generation has gradually designed to the culture and lifestyle of Western Europe. Thus the Zara's product can partly meet the needs of teenagers for usability design.

Technology Factors

With the introduction of information technology, it can impact on many types of things such as circulation strategies, multimedia strategies, etc. Relating to Infocomm Development Authority of Singapore, a total Internet user in Singapore is 3, 370, 000 by June 2010, about 77. 8% of the populace. Company can develop direct selling via the business's website http://www. zara. com or use the web advertising methods such as hyperlink marketing, banner advertising.

Swot examination of Zara

Strengths

Zara's products were created as an instant fashion. The other fashion usually takes about three to five weeks to make a new seasonal collection after experts need to predict a new fashion craze that customers want. For Zara, rather than predicting fashion tendencies, they ask, listen and monitor of what customers want. Each worker is equipped an individual digital assistant to gather customer responses about their products. The data will be gathered and sent right to headquarter. So Zara can be able to deliver the new product to the clients within 2 weeks. Besides that Zara has effective sale system, only those products with the best demand will maintain stores that enable more popular items to appear in through the season in which its sales are high. To set-up special and unique designs, Zara use its own cloth and dyes. Zara also offers the rare benefit in their clothes due to amount of inventory is suprisingly low, only sold in stores in a limited number and so customers do not necessarily start to see the same product twice in Zara.

Weaknesses

Zara doesn't have a chief information official must take responsibility for information technology and personal computers that support business goals. Furthermore, Zara should spend a huge charge for research and development to act in response quickly and effectively the necessity and want of customer as well for the fast advantages and recurrent of new product. The business must give high costs for the ongoing upgrading of creation techniques to create their different charm lines. Your, the business must spend money to train staff in using new creation technologies and this is the cause of cost increases. Combined with the use of euro-centric model has triggered prices of clothes to climb occasionally.

Opportunities

Zara Company has strong opportunity of development in Singapore because the company can expect to increase sales because of the expansion of Singapore overall economy. As a result, the quality of living standard will be increase so Singaporean will have extra money to spend on shopping. Besides that, Singapore has the capacity to attract many tourists to visit and shopping for numerous purposes. According to the Singapore Tourism Board, in January 2010, Singapore welcomed a total of 908, 000 travelers, within the same period this past year increase by 17. 5%. Along with the opening of the two built in resorts in Marina Bay and Sentosa, as well as the Gardens by the Bay in Marina South will be a increase for the travel and leisure industry. Singapore is also home of several great occurrences, for example Youth Olympic Game 2010 from 14 August to 28 August 2010. This is a good home based business not limited to Zara to market their product but also for a great many other service sectors.

Threats

The hazard for Zara is direct competition. Zara's product toward the prospective customers are middle and high-class people, addititionally there is the mark market of other company like Space, Think, Calvin Klein, etc. Key tools employed by rivals are price, quality and design. Due to Zara brand has wide range so it faces rival at every price point from luxury to cost reduction. The next risk, Zara has only 1 center of development and syndication worldwide therefore the risk associated with just one centre. Today advertising is becoming an important part of every business because it directly influences the sales. Zara's in-store advertisement model might not work in the years ahead. The significant hazard to the success of Zara is the fact while Zara find it difficult to deal with the vertical model, local sellers can follow Zara's solution for success plus they can emerge.

Objective

3. 1 Marketing

Zara's marketing objective is to increase customer equity to improve customer commitment and gain more profit. It can be done by

Improve customer satisfaction

Enhance brand awareness

Increase customer's purchase frequency

Continue to increase by increasing the Zara fashion brand

3. 2 IMC

Objectives lay out what the business enterprise is trying to attain. The main goal of IMC is to see customer about the entrance of services, promotions and raise awareness of product inside a clearly identified marketplace as well as create positive thoughts for customers in order to encourage purchase motive.

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