Marketing Essentials: Zara (Essay Sample)

UNIT: 2 – Marketing Essentials
(The chosen company is Zara)
1 Introduction
Marketing is critical in understanding why a company is in operation and what the business itself requires (Alvarez and Manuel, 2019). Analyzing and deciphering a company's or organization's marketing strategy Blades (2019) explains that this process undergoes an exhaustive examination of its aims, goals and contextual elements. Strategic techniques to data collecting and analysis of a competitor business's resources and finances are referred to as "market competitiveness research." Strengths and weaknesses, opportunities and market growth are all included in this. A company may access to the most current market knowledge of their rivals. A marketing plan is a comprehensive business strategy that outlines the company's long-term objectives and outlines how they will achieve them. An overview of the organization and its current position in terms of resources management and growth are included in this strategic plan. It is the goal of this article to highlight the many marketing fundamentals that Zara, a fashion firm, must apply in order to succeed. In the next section, we'll take a look at Zara and another of its competitors, H&M. The next step is to compare the different 7Ps marketing mix components used by Zara and H&M in their marketing planning processes in order to accomplish company goals. A marketing strategy for Zara, which will be designed and produced in accordance with the company's aims and objectives will be the final outcome of this study.
2.0 Competition Research
2.1 Overview of Zara
Galicia, Spain is home to Zara, one of the world's biggest apparel retailers. As of 2019, the corporation has more than 2259 locations in 88 countries and territories (Blades, 2019). Amancio Ortega started Zara in 1975, and it is now the flagship shop for the Inditex company, the world's biggest retailer of clothing. Zara Home, Pull&Bear, Bershka and Massimo Dutti are all owned by the fashion label as well as Pull&Bear, Bershka, Oysho and Uterqüe. Throughout the United Kingdom, Zara has established itself as a major player in the market by providing a wide range of goods and services to clients, including men's and women's clothing, homeware and accessories (ZARA, 2020). By 2019, the corporation expects to have a 62.2% market share. 1.55 billion euros ($1.71 billion) in earnings for Zara in 2019 compared to €1.41 billion in 2018, according to the ITX index of the firm. By 2019, the company's Like-for-Like (LFL) sales had increased by 5%, thanks to an increase in sales of all brands and regions of 7 percent to €12.82 billion. Customers are Zara's most important income source, and they strive to provide the greatest goods and services possible.
2.2 Overview of H&M
Fashion shops throughout the globe are reaching out to clients from all walks of life, regardless of their race or ethnicity. You may find COS, Weekday, Monki, ARKET, and Afound at H&M as well as many more brands. In 1947, the Hennes & Mauritz AB opened its first Hennes shop in Västers, Sweden (H&M, 2020). Among the products offered by the firm are household appliances, cushions and cushion covers, decoration and bed linen, homewear, and a variety of other accessories and clothes for men, women, and children. Over 5,000 locations and 126,000 full-time employees manage the business in 74 countries. H&M's major market is Germany. In 2019, one nation alone brought in $3.5 billion in income. By the end of 2019, the firm achieved a profit of $1,813.92 million. The company provides the greatest services to its consumers by managing their relationships effectively.
2.1 Elements of marketing mix
The tactics that marketers use to promote their goods and businesses are referred to as the "marketing mix." The marketing mix consists of a variety of components. When it comes to analyzing a company's many mix variables, the 4Ps and 7 Ps, for example, may be the most appropriate approach (Lopez, 2020). There are seven components to the 7Ps framework: Product, Price, Place, Promotion, People, Process, and Physical proof. Taking all of these elements into account will help the firm better manage its marketing-related operational responsibilities and, as a result, will help the company expand and thrive in the future. In the framework of company strategy, marketing mix is considered in order to connect and maintain connection with customers. For the sake of promotion, the marketers make their clients devoted to their goods and brand name. The marketer needs to know what the customers want and how they like to shop. For the sake of enticing customers, the organization creates its services with the most current trends and preferences in mind. Marketers may better meet their customers' demands by using the 7Ps framework and doing an environmental factors study. The whole marketing mix is interconnected. There is no limit to the amount of success a firm may achieve if its earnings strategy is managed correctly.. 
Figure: Elements of Marketing Mix Source: Lopez (2020)
2.2 Compare how Zara and H&M use the various elements of the 7Ps marketing mix in their marketing planning processes to achieve business objectives
Product
The final product is the result of the manufacturer's processing and shaping of raw materials, as well as the incorporation of the brand, logo, styles, and appropriate technic application (Tesfa, 2019). Fashion, cosmetics, accessories, footwear, swimwear, and fragrances are just few of the many things Zara offers its clients. They custom-tailor men, women, and children's clothing and stylish accessories. As a kind of advertising, products are the primary means through which businesses may attract and retain consumers. Fashion retailer H&M in the United Kingdom offers its consumers with an apparel chain and primarily services household appliances, cushions & cushion covers, decorations, bedding, and homewear. Making their items stand out from the crowd helps them get a larger share of the market. Profitability is their primary concern, thus they focus on increasing the product's worth.
Price
The cutting of items is facilitated by price management and the establishment of price codes for the products (Tesfa, 2019). Price is determined by a number of factors, including the expenses of raw materials and manufacture. There is also a wide range in the expenses that businesses incur. Cost-effective production of Zara's items on the market and the close development of industry minimizes transport charges, allowing them to influence price comparisons with rivals. H&M takes into account the clients' abilities and the locations of their stores. Customers get what they can afford from them.
Place
The physical location of a company has a significant impact on its ability to compete in today's market. People from all walks of life may easily access the outlets in the heart of the city. Zara's customer base grew as more consumers sought out merchandise close to their daily routes or on a frequent basis. The business's move to the internet reduced both the amount of time and money spent on travel. H&M prioritizes the establishment of their shops in established nations and cities, believing that consumers are more likely to know about their services and goods if they are located in these locations (Tesfa, 2019).
Promotion
Success or failure of a firm depends on how well it is promoted. The grade and customer happiness may market products on their own. Zara's company was widely and quickly boosted using social media marketing and internet tactics. Retailers such as H&M use sales and discounts to get people to become advocates for their items. Social media marketing today has a plethora of tools at its disposal for promoting a company's products and services, including software, websites, and mobile apps. The most popular social media marketing tool is Facebook (Tesfa, 2019).
People
As a company's stakeholders, Zara's workers play a critical part in its progress. Customers from a wide range of ethnicities and traditions are served by a firm that employs people from a variety of nations and civilizations (Ray and Yin, 2019). When it comes to running a company, H&M believes that its employees play the most important and most valuable role. For the sake of their corporate reputation, they recruit highly-skilled workers.
Process
The company's systems and strategic methods to carrying out the goal are critical. The right installation of the application is the most important factor in cost management, success, project results, the production of new ideas, and the invention of new goods (Ray and Yin, 2019). Zara fashion retailing has been in business for many years, during which time they've encountered several ideologies and evolved their company strategy. Because Zara is a younger company, H&M was able to build on Zara's organizational structure concepts. Increased output was a result of supply chain, manufacturing techniques, new equipment, and technology implementations rates overall.
Physical evidence
The validity of the company's promise to provide the greatest services or goods is confirmed by physical proof. Zara's logo and brand image serve to reassure shoppers that they are receiving the highest-quality goods and apparel available. Customers might benefit from having a portfolio of well-known locations and physical addresses. Customers may simply sign up for one of the many newsletters to stay up to date on the latest deals and offers. The importance of tangible proof in promoting a company cannot ...