ZARA SWOT and Competition Analysis

Keywords: zara focus on group, zara focus on customer

In this era of advanced advertising and technology, where customers are flooded with marketing messages all the time, it's very hard for the businesses to progress effectively without marketing and especially internet marketing credited to quick adoption of internet and use of computer and more related devices. Which has a nominal investment on the site and web based marketing, a lot of new marketplaces and customers can be drawn through this marketing strategy.

The retail industry is normally a very dynamic, fast changing sector. It constitutes one of the key sectors in the economy, in conditions of transactions and turnover; as a result, it is an extremely competitive and advanced industry.

As Zara has an international existence in many countries of the World, it is currently compulsory for Zara to adopt an online online marketing strategy to contend with its competitors, get and maintain more market talk about and increase revenue in this highly competitive environment where every customer is totally informed and prepared with information about the marketplace.

Digital marketing is very fast growing and cheap solution to reach maximum customers without the boundaries. Through customised digital marketing where you can express your message only to potential customers and lots of clients can be seduced by using different techniques.

Today's market is forcing everyone to search for the best bargains they will get. Usually these offers are found on the internet. Digital marketing helps a business to increase its contact with consumers who are positively seeking your product or service, making it much more effective than other types of advertising. Increasing your company's publicity through digital marketing is the same as McDonald's only exhibiting you a Big Mac commercial when you are hungry It really is targeted, effective, and relevant.

Online marketing has many advantages for businesses as well as customers, but on the other palm there are a few problems that happen to be related to internet marketing and use of technology and its attractiveness among your target market.

While using online marketing, you do not cut back your company's marketing budget in this economy; instead, concentrate on spending your marketing budget more effectively by purchasing a highly targeted digital marketing campaign.

In-fact, this is actually the best time for businesses to examine their marketing strategies and bring internet marketing into emphasis because of increasing costs of marketing on traditional medias which do not ensure that you will be actually concentrating on your customers.

Situation Analysis

There aren't many businesses that happen to be running without the marketing in this years of communication and technology. If some business does good without marketing it dose not imply that the business enterprise has captured maximum market and there are forget about opportunities to increase. If some business has already been doing well, it can do better by launching a advertising campaign and can get more market talk about.

If someone possesses a business in the current marketplace, it isn't easy to run a business without marketing rather than enough to perform an advertising campaign in the local newspaper to maximize the exposure of business. Actually, it is not even enough to perform a tv commercial on an area broadcasting place because the best marketing tools at anyone's disposal have swiftly become those associated with online marketing.

In reality, if someone starts off to explore marketing business via the internet he will quickly find that instead of reaching only a few consumers, he'll now have the initial ability to reach both the an incredible number of customers from a worldwide approach and a far more specified group of customers that are nearer to him as well, a broader appeal than his business may have had previously. He can use social multimedia as a market, and also have a targeted market.

Of course, before actually getting the benefits associated with a wider consumer foundation there is a need to get them to the website which is where online marketing tools enter into play. Products have to be presented in an obvious and visually interesting way on the website. The web site is a company's "store" on the internet, the merchandise must be no problem finding, priced properly for the marketplace, and delivery methods plainly discussed. Adding a blog factor to the web site provides fresh content, images, and improvements to customers, as well as fulfilling the search engine criteria for active use and renewal. This also helps search engine placement.

Other popular ways to help an enterprise market its website include sociable media stores like Facebook, Excitement and Twitter, link constructing and other search engine optimization tactics, or by using the Google tools like Google Local to improve the online subjection.

With the help of most these tools and techniques, where we can promote our website through online marketing, there are some issues related to online occurrence. Online security is the key concern of the clients who are interested to buy online and want some kind of security that the information they are simply providing for deal is safe and can not be misused in future. This subject can be solved by getting some online security confirmation certificates and placing them on the website.

Other online marketing concerns may be the annoying banner advertisements on web sites what your location is advertising, viral marketing, too much information about the product on the primary page which is definitely not required by every customer, product search problems on the site. Alternatively before starting digital marketing campaign we have to be clear about our customers that they use internet frequently and do they have proper training and skills to browse the internet easily.

As very good as Zara can be involved the main marketplace is people who like fashion and keep themselves up to date with latest styles in clothing, which means this type of individuals use internet very frequently to keep them revise and interact with the city online most of the time.

2. 1- Market Summary

By keeping because the existing market trends and situation analysis our plan is to start an online advertising campaign. European countries, America, Australia and Asia are our main focus on markets and there can be an increasing trend useful of interne in the countries of these continents.

We can see the progress rate of internet use and its own penetration in last ten years in several regions of the planet. With the help of these statistics we can simply understand the importance and reach of internet marketing.

Most of the marketplace shareholders are actually using internet online marketing strategy and increasing their market talk about giving information about the services and designs, product offerings and offering buying online facility, business plans related to environment and customers through e-marketing.

There are 383 million users of internet in China only and we can target them without spending a lot of money on retails shops around China. Same is the case with Japan and India where we do not need to open stores in every the cities. We can open our stores in main towns and market our product through internet to other areas where we can find our customers and concentrate on them.

This is the strategy adopted by the majority of the successful businesses like Clark, they do not keep all the stock on their out let us and promote their website by requesting customers to use their website to start to see the full range of the products in different categories.

2. 2 SWOT Analysis

ZARA has 1, 608 stores (including 213 ZARA kids' stores) in 74 countries, with the company's international growth presently offsetting the economical downturn in the domestic Spanish market.

ZARA has a very strong brand image and the amount of outlet stores can be increased with enough time and growth. Comparatively high product price is a weakness but we've possibility to explore markets where we can find customers who want to buy high quality products. Access of new competition and non availability of sufficient raw material can be a danger in future.

2. 2. 1- (S)trengths

  • ZARA has an extremely strong market Image anticipated to quality, style and availability of products.
  • Product/ Brand Image is also high because of very high quality, reliable products for children, men and women.
  • Strong financial position of ZARA is also our durability which will help us to invest sufficiently to get favorable results.
  • Due to strong market position there exists availability of finance from other finance institutions like finance institutions.
  • ZARA will benefit in saving the cost from existing infrastructure of suppliers.
  • Vast network and store on different main locations all over the UK, Europe and other regions of the entire world is also our durability.
  • At this time we have option of suppliers who provides us required raw materials on good prices and we can build good relations with them for future when your competition will be higher.
  • Online option of our full catalogue is also our power and customers can see, choose and make a final decision by simply resting home.

2. 2. 2- (W)eaknesses

  • High product price is a weakness but we can not bargain on quality and customer services.
  • Due to no online marketing strategy and planning the pace to getting market share is suprisingly low.
  • Proper management and implementation of the new system may take time.

2. 2. 3- (O)pportunities

  • New market search is the next step after recording our existing market we can go to US and central Asian markets deeper.
  • More innovation, improved upon quality and value added products for our customers.
  • Adoption of new technology will help us to lessen the expense of our products.
  • Research and development division can be made more efficient and strong for product improvement and option of the merchandise.
  • Improved and much more centered customers service.
  • Continuous training of the personnel and labor for affordable production.
  • Strive to exceed the customer's goals through quality, creativity and customers services.
  • Increase in promotional activities through online marketing to get maximum market talk about.
  • Building relations and permanent deals with the suppliers will be good for future buying.

2. 2. 4- (T)hreats

  • Entry of new competition is a menace for our product which can be prevented by building more powerful product image in the mind of customer.
  • Unavailability of sufficient raw materials because of lot of customers for raw materials on the market.
  • In the longer term you will see high price of raw material credited to increased demand.
  • Availability of raw material in future is another hazard and can be been able by concerning maximum amount of suppliers in the beginning with small amount orders to all the suppliers. Order quantity can be increased in future as per demand.
  • Low buying ability of the clients in existing marketplaces is also a danger and can be maintained by searching new markets.

2. 3- Competition

At this stage if we compare the most notable traditional stores in the UK, the majority of them, i. e. John Lewis, New Look, Debenhams, M&S, next, Bhs, H&M, asos, peacocks and topshop are the main stores that are concentrating on online occurrence and are among the very best list stores on search engines in fashion and clothing search results.

Because Zara is not in putting any work for online marketing, that is why we do not find it browsing results.

John Lewis: The shop has followed Omniture SearchCenter to improve paid search engine marketing. This combination of products allowed John Lewis Direct to boost customer personal preferences throughout the whole acquisition to alteration cycle.

John Lewis Direct is a powerful example of a traditional retailer making a success of its online technique. An incredible number of customers go to the award-winning John Lewis web site each month and the site has grown constantly at above market rates since its inception in 2001. In 2008 online sales were up by 24% to 327m.

New Look: The famous and one of the favourite store of women for fashion clothing New Look has also understood and used the online online marketing strategy by placing sponsored links on top search engines, using communal websites for close connection with customers and launched their website in 2007. Because the eCommerce launch in December 2007, New Look website has continued to exceed prospects with nearly one million average each week site visitors in March 2009. This is a threefold increase on the same time last year, with average order value carrying on to increase.

The new web program is offering customers increased usage of the full product range and multi-channel capability, enabling customers to order waiting for you for delivery at home.

In March 2009 New Look obtained the www. newlook. com website name which is appraising the potential to utilise this with a mainland Western transactional website. This will provide marketing synergies with the international store roll-out to fortify the brand and offer to customers.

Debenhams: Debenhams is also promoting its website through search engine marketing, different weblogs and interpersonal websites. Most popular websites are D Blog, Face Reserve, Twitter, Flicker and You Tube. Store is also motivating Debenhams website visitors to go to these public websites and leave reviews.

The Marketing Invention Group (MIG) launched Debenhams' Megaday iBrochure, in '09 2009, together with their September New Season Spectacular Sales. This tactical iBrochure mirrored the newspaper brochure that was available waiting for you and was used to operate a vehicle online sales and increase awareness.

Marks and Spencer: M&S has pioneered online training video with 'M&S TV' (marksandspencer. com/tv set), a great exemplory case of v-commerce used, and evidence positive that powerful online video boosts sales. Marks and Spencer is known for its progressive online procedure, the dealer was keen to find ways of growing its online business while retaining the customers already visiting the site. Furthermore to enhancing the experience, the channel had to eventually drive sales.

M&S Television is a assortment of over 500 videos split into 12 programs. Each channel targets a specific company theme or business vertical, whether it be womenswear, menswear, or home. To keep up brand persistence, the stations are managed by a central commissioning team consisting of personnel from both M&S and Modify Your Set in place. This team also packages future content and procedures the consumer response.

Engagement levels are constantly assessed and regular refinements are created in order to improve the quality of the editorial and the rates of transformation. If viewers fall off prior to the end of video tutorial or certain links are not being clicked, then further changes are made.

Keeping in view the above mentioned information Zara has a very big market to capture which is the best time to build up and put into action the new online marketing strategy to enhance the market share in near future.

2. 4- Product Offerings

Zara provides an exclusive coordinated collection of stylish clothes, shoes and accessories for women. Choices for men, children and the home quickly implemented. Zara's clothes are styled by the in-house design team to offer regularity of style, quality and value for money with a modern-day fashion advantage.

2. 5- Distribution

Zara has an extremely strong network of shops in the UK, Europe, America, Asia, and Africa for the circulation of its products all around the globe. Other than shops we have also introduced a fully functional website with this latest products, designs and offerings.

The online store is also contributing effectively for the distribution of the products to the customers.

3. 0 Marketing Strategy

3. 1- Objectives

Challenging but attainable purpose has been establish for next 3 years. Because of the overall condition of the overall economy which isn't that good, cause the first 12 months can be somewhat slow.

First-year Aim: In the first season we will optimize the consciousness about the brand and option of the product. We've already launched a full page on facebook. com and much more than 3, 676, 000 people like that page from all around the globe. Website will be marketed through other major social networking websites, blogs, e-mails and in-store advertising campaign. Search engine marketing and data updating process will be performed more effectively to keep carefully the website at the top browsing results on different se's. Secure online advertising may also be released in first yr which can only help to increase the development rate. The expansion rate will be increased from 6% of 2009 to 10% by the end of first time.

Second-year Purpose: In the second year we shall be doing well and will be on the first webpage of most popular se's. In the next year more emphasis will be on launch of innovative technology, make over and use of latest web technology to draw in the site visitors. The estimated expansion rate in second season is likely to rise by 7% anticipated to beginning in new market segments of Australia and Africa. Online offering will be wanted to Australian customers in this season.

Third-year Objective: Third calendar year, 2012 - 2013, is a season of revival for world economy, hopefully and we shall capture the marketplace by 25%. For Europe aggressive online marketing strategy will be used to get maximum market talk about. Online offering will be launched in major Asian countries to help our valuable customers also to maximize market talk about.

3. 2- Focus on Markets

Target market of Zara is middle to high class men; girl and children who like to update themselves with latest fashion and style and want higher quality clothing on fair prices. With the help of online marketing it will be easier for Zara to convey information about new designs and fashion to its concentrate on markets in several parts of the entire world within no time because Zara's marketplace consists of the individuals who use internet frequently and update themselves with latest fashion. Zara's women collection is split into three categories: Zara Women, Zara Basic and the sporty Trafaluc representing market sections for girls who choose a more formal style, more youthful women for a far more informal style and younger women and young adults while menswear included Men's Range at Zara, Zara Basics, its club-wear brand 100Zara and Zara Sport. In this particular sense everyone from all age ranges is seen as customers targeted by specific sub-brands of Zara. Another important varying in defining segmentation is based on psychographic characteristics such as lifestyle, as one of the most well-known and successful European brands Zara in its existing market targeted people who had been especially thinking about Western styles at affordable price levels.

3. 3- Positioning

Zara is a high fashion concept offering apparel, footwear and accessories for women, men and children, from newborns to men and women aged 45. Zara stores give you a unique blend of fashion, quality and price offered in attractive stores in primary locations on leading commercial streets and in main shopping centres. The in-house design and production capabilities enable us to provide fresh designs at out Zara stores twice a week throughout the year.

3. 4- Marketing Mix

3. 4. 1- Product

Zara has a tradition to release its products very quickly of fourteen days and full change in clothing item every month. The product is of very high quality and we'll give a full assurance of color, stitching, products, cloth quality and materials used to our valuable customers. No metals shall be used for the product packing and recycled material will be used for packing of our own products.

3. 4. 2- Pricing

Zara looked after its long ranking practice of providing customers with certainty over pricing. Zara has followed a competitive costing technique to gain and retain customers. Competitive rates is the most well suited for Zara because of its presence internationally. This charges strategy helps Zara to attract more customers on the high street fashion stores.

3. 4. 3- Distribution

Zara has a very strong distribution set up which is very useful to offer the product all over the retail string.

In my perspective Zara should start its production locally rather than producing in Spain and then deliver the merchandise to stores all around the globe because this change in strategy will reduce the price tag on production. We need not bring raw materials from other countries to Spain first and send done items back again to the same countries. By establishing local production residences we can also build good relationship with this suppliers, neighborhood by offering careers to residents, and our customers.

3. 4. 4- Marketing Communications

Promotional activity at traditional will continue aggressively and with in-store screen, through online marketing and our website.

For online marketing communication the first rung on the ladder is to upgrade the website and its own contents at the back of website like key words, key phrases and mata tags so that the search engines can find our website quickly and easily whenever anyone search for items we are interacting with. An interactive website is most appropriate idea in today's marketing situation. With the help of cookies we will gather tons of data about our customers and their preferences. Email marketing will also help us to generate more gain bringing in more customers to our website.

As it is mentioned earlier different social website pages like facebook, twitter, youtube, and flicker etc. are the main source of communication with customers nowadays. We will also talk to our existing and prospects by establishing different weblogs and through our own website.

Paid advertisements on most popular search engines like google, bing, yahoo, aol etc. is another option so that people can come near the top of search results in very short time.

3. 5- Marketing Research

Through different marketing research techniques like web examination and online supply back from our valuable customers we will keep upgrading our product and system and will analyze and examine our existing strategy. Web analytical tools will also be helpful to get information about website visitors and their design of search and required products.

Customer's complaints and record of customer services office is also very helpful to increase the product and product delivery system.

4. 0 Financial Matters

In the first season by keeping the objective of 10% growth rate in view the projected deal for Zara in the first year is 11, 750 million.

Currently Zara's show altogether group sale is 63. 8% (2009). The total sale of the group in 2009 2009 was 11, 084 Mil.

Results for the entire year Ended January 2009

* Group revenues (in a large number of Euros): 11, 083, 514

* Group operating revenue EBITDA (in thousands of Euros): 2, 374, 189

* Revenue per show (in Euro cents): 211. 4

15 million is predicted expense for first 12 months marketing including earnings of marketing staff. For online marketing, almost all of the task, like making profiles on different public websites, tagging, adding key words and meta tags on the trunk of website, can be done through qualified personnel of the company who'll be in charge of the updating and maintenance of the web site. So, for that there surely is no need to pay extra money to any alternative party.

To advertise through se's we will pay a nominal amount per season to major se's and they'll promote our website.

Pay per click is another option which is also provided by most of the websites where we advertise.

5. 0 Controls

5. 1- Implementation

Zara as a market leader in fashion wear always give attention to product quality and customer services. Our more than 92, 000 staff members are always prepared to enhance the system and implement new strategies. By using internal and exterior controls the top management will maintain an improved position to judge the performance and up grade the system accordingly.

We are always in a process to boost our products and services and we are always available to hear from our customers.

Zara already carries on to improve customer support and with the intro of new service of online shopping we live facilitating our customers to buy anytime with their convenience.

5. 2- Marketing organization

International Marketing


GM Marketing for Remaining Countries

GM Marketing European countries & UK

Sr. Administrator Marketing

Manager Advertising

Advertising Analyst

Manager Promotion

Promotion Analyst

Manager Sales

Market Research Analyst

Manager Advertising

Advertising Analyst

Manager Promotion

Promotion Analyst

Manager Sales

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