Marketing mix of zara
MARKETING
5 Stages of Marketing Process Include:
Understand market and customer's needs: It is important to acknowledge consumer's needs, desires, wants, and demands to construct convenient market offerings and positive customer relationships.
Build Profitable Relationship: To build and maintain a profitable relationship can be done by delivering high-ranking consumer value and satisfaction.
Managing Marketing Process: The last step of the marketing process include resource arrangement to carry out the process.
MARKETING PROCESS OF ZARA
Mission
Objective
Increase growth rate by increasing the brand.
Increase attention towards brand
Strategy
Implementation and Control
PESTLE ANALYSIS OF ZARA
POLITICAL FACTORS
ECONOMIC FACTOR
as per the above discussion, it is well-known that Zara is a Spanish brand and Spain has one of the highest unemployment rates therefore, it has low-cost labor in comparison to Germany, UK, and France, and low-cost labor is favorable to the brand. Also, Zara is a well-known brand that has affordable and cheap products in comparison to other European brands which allows it to boom even in poorer countries which allows the brand to collect healthy profit margins. Zara has a significant strategic plan that is budget-friendly pricing.
TECHNOLOGICAL FACTORS
Zara is one of the most attention-seeking names in the fashion industry because Zara is great at utilizing the power of technology to earn profit. Zara coupled with Toyota in 2014 for the application of JIT (Just-in-time) and Lean facilities across its production operation. This enables Zara to reply to the consumer's demand more quickly. The company has its popular website to interact with customers from the entire world. The company has applied RFID Technology to keep the eye on its inventories and goods. Thus, technological factors are also in the favour of the company.
LEGAL FACTORS
ENVIRONMENTAL FACTORS
SOCIAL FACTORS
SWOT ANALYSIS OF ZARA
STRENGTH
Zara can style on and stoke brand new outfits in the international market within 20 days which is much earlier than other retailers who takes nearly 6 months. With this rapid evolution, consumers get new products sooner which increases the sales of the brand.
Zara’s ability to make proper use of online shopping allowed it to reach massive customers in different countries which increased its sales by 41% thus, increased its profit margin.
WEAKNESS
OPPORTUNITIES
THREATS
Zara faces economic instability in many different regions and countries where it runs its business. For example, a huge expansion in UK resulted in an exit from European market which leads to an increase in prices and a decrease in sales and overall profitability of the industry.
The fashion industry in many of the countries have copyright laws, therefore Zara's designs are most likely to be copied and reproduced by other local shops and brand and sold at cheaper prices which affects its sales directly.
PORTER’S FIVE MODEL FOR ZARA
INTENSITY OF RIVALS
THREATS OF SUBSTITUTE
THREAT OF NEW ENTRANT
BARGAINING POWERS OF SUPPLIERS
BARGAINING POWER OF BUYERS
The bargaining power of suppliers is relatively low for Zara as consumers hesitate as well as lack the ability to bargain for some quality product at lower prices and so the buying capacity is extremely low per customers.
MARKETING MIX OF ZARA
PRODUCT
PLACE
PRICE
PROMOTION
Brand loyalty is extremely high due to its variety of stylish products at affordable prices. Therefore, most of the marketing takes place through word of mouth. Marketing of Zara products takes place through stores present at a global level. The most important part of its promotional strategy is the pricing and distribution of products, which has helped a lot to achieve the image of a stylish brand at affordable prices. When it comes to promotion Zara uses social media damn effectively and skilfully. Zara also promotes its product on its official website to make it easier for consumers to know the new trend and latest designs available in the market.