Zara is a retailing chain with several stores situated worldwide. Its marketing strategy is based more on expansion rather than advertising or traditional methods of promotion. This report will provide a brief outline and a critical evaluation of Zara’s marketing plan particularly in relation to its environment. The report will also identify and evaluate how technology and the new media could impact on Zara’s future marketing plans. The sustainability of Zara’s marketing strategy and how it will affect their reputation in the future will also be examined.
Analysis is a key part of any business due to the fact that the ‘right’ decision would make all the difference. Zara’s marketing strategy is the most successful in terms of global reach and financial efficacy. Here to further discussion which will enhance the readers understanding of this report.
The introduction of Zara’s global marketing strategy provides a great starting point for the main body of the report where it will be evident that this company is motivated to extend its business and this is to be accomplished in the following ways:
The Zara experience will be key in achieving this growth:
Zara’s experience will be a vital element because it will be able to culminate in tangible results; it is the customer’s experience, from the point of view of quality and perspective of the brand which is the main goal of the organization; it links the brand with “the customer experience”, which is the main objective of the company, and which spans different spheres of life. A key point will be how to combine the two components, the tangible (experience) and the intangible (brand experience), and how to make one relevant to the other.
Zara’s first store in Paris is a masterpiece and is emblematic of what a Zara store should be. It sets the standard in terms of customer service, experience, atmosphere and retail space. Zara has a global purpose, to provide excellent merchandising at excellent prices, in a wholesome environment which will enable customers to experience “the Zara experience”.
Hire a company to design your logo. The logo is the most important logo creation tool in branding. European) and Arab Zara’s global advertising campaign persuaded them that the Internet was the platform which would help spread its message
Zara’s strategy is based on low investment in expensive advertising.
A new type of advertising called “retailtainment” has been devised by the company. This will be introduced across the globe to the media, and will be a means of communicating with its massive customer base. It will be a means of delivering its “Zara experience”. This is a platform which will allow Zara to spread a subliminal message into the mind of their customers.
Zara will target several markets, develop strong franchises, and build major shopping spaces in key cities.
Highlighting the retail locations of Zara in Great Britain.
Great Britain’s RBL (Research Bureau of London) is the secret to Zara’s success in the UK. Initially , there are 4 Zara stores in London , but this number will increase and in the future there will be 32 stores in Great Britain of which 26 will be in London and 6 in Manchester. These stores will then be spread throughout other key cities in the UK. From these, 10 stores will open in Ireland, 15 in the United States, and 20 in several European countries.
Zara’s international expansion will come from the UK. This will be channeled through the RBL network which will help to export the Zara experience to key cities. This will be followed by a strong franchise programme.
In Ireland Zara will open 9 outlets next year.
Plan for medium and long term growth is crucial.
If Zara is to achieve its goals, a well developed low cost business plan is necessary. This will give it a structure upon which to build. A plan for success will also allow the company to gauge its position and direction. It is a means of visualizing the needs of Zara. This will help to guide the company in presenting itself to its client/customers in an alluring manner. It is the vision of Zara’s future which will be captured and will lead to the creation of marketing strategies.
A business plan to be followed for the medium and long term growth of Zara will provide a stable platform upon which to base their global expansion plans moving forward.
Adequate resources and financial support will be provided to Zara for expansion.
As Zara has shown to be successful, it is obvious that it has established a global customer base and the brand image is well entrenched. The company has clear objectives and a clear plan for growth and its expansion strategy is competitive.
It was mentioned previously that the Internet is the prime advertising tool for Zara as it enables them to communicate with every customer in a non intrusive manner. Further, the Internet also allows Zara to build a loyal customer base through word of mouth and customer feedback which is priceless. The Internet and its niche advertisers will be the major source for Zara’s advertising.
Zara will target and use the Internet to its advantage with the creation of a dedicated online service while removing the need to use television advertising which is expensive and ineffective.
Zara will then have the Internet as a marketing and advertising tool; and as well as for customer feedback, will be important. Its customers will communicate about Zara and this will be an important means of getting the word out to the consumer that Zara has quality and low prices. It will be concerned with Zara’s customer experience and will help to bolster Zara’s customer base.
In terms of Internet advertising for Zara, the Website will act as an advertising supplement.
The Internet will be used to communicate with customers but there will be a change in the way Zara will appeal to them as customers. Internet advertising is a great means of getting instant feedback from customers and this is different from television and other forms of advertising. The Internet delivers instant results so it will be extended and used globally.
Zara has the power to communicate directly to its customer base worldwide.
Zara will expand into other markets by looking to expand the retail outlets in key cities. Zara is interested in franchising due to the advantages it can generate and the solid footing the medium will provide. In addition, Zara uses franchisees to help it grow, increases customer loyalty and Zara’s experience.
Franchisee support for Zara will be a priority.
Zara is a special brand and has a valuable customer following. There are new brands out there but Zara’s name, establishing customer loyalty and Zara’s low prices can give them the same results and a huge market share. There is a steady stream of customers coming into Zara’s stores, continuing to buy Zara’s brands, and leave with their money in their pockets, happy.
Zara is a known brand that will benefit from becoming part of an established brand.
‘Zara has set goals for growth and this is possible due to their products and services, offer of value and by taking advantage of the Internet. Their budget for advertising is minimal and successful due to low cost advertising and the Internet advertising tool. Zara will be able to expand globally through franchising and franchisees, as well as the Internet.
Zara is able to create a new market, enter new markets, develop it, and then make their mark by introducing a new fashion style. Zara is a brand that is building on its assets and this is evident based on the strength of its brand. It is a company that is setting the trend for its competitors to follow. Zara is a profitable company standing at 5.5 million and it is continuing to grow.
Quality for Zara is optimum and this is evident from the customer feedback which is vital for the company. Zara gets on with its work, is practical, and has a vision and objectives. This is the strength of Zara and the business plan is based on this strength.
As represented above, Zara will utilize a dedicated Internet and get immediate feedback from customers with the message being delivered by word of mouth. The Internet will provide Zara with a means of communicating with customers world wide. This will be introduced worldwide as it will increase Zara’s marketing power.
Zara’s mass marketing system will be worldwide, and this is vital for Zara and its growth.
Zara has set a goal and is following through with its plans to grow. Its goal is to build on the services and products that it provides. Zara is going to be a global brand. Zara will be the world’s leading fashion brand. Zara will build its conglomerate by building on the foundations which it already has around the world.
“Zara’s Global Expansion Plan” is a clear, well thought out business plan, which documents Zara’s growth and expansion objectives.”
Zara’s Global Expansion Plan” will follow a similar format to the initial Business Plan with the stage in which each aspect can be carried out taking into consideration the time-frame which runs from 2006 to 2010 and Zara’s time to build its brand.
Currently, the key message which is being received about Zara is that it is a new brand and that it serves a particular niche market. Therefore, the logo contents the “it’s a new brand”. The logo also establishes the traditional theme which is used in most Zara stores around the world. This lays the foundation for Zara: big and daring with some colour being added in dark black.
This has been proved to be simple and effective throughout the research. This has been very effective in engaging consumers through its values and the use of communication features. This communication is also one of its strengths. It is a brand that appeals to the younger generation of consumers.
There are various materials in the written format, and in coloured media that will be used for the website. The customer will be shown that Zara has a global reach with their low prices. The web pages will also be shown as there is a preference for the Internet. Its core message that consumers receives about Zara is that it is efficient and value for money.
Zara has a clear direction and a strategy for growth. It has proven successful and will continue to expand and establish its platform. The company plans to expand its franchise scheme and global presence. The Internet will be an important tool in Zara’s advertising and it will product a reliable means for customers, of making a purchase. The Internet will be a great avenue for sourcing new customers and developing trends.
The world is changing rapidly. It is important for Zara to look to the future and to recognize that now is the time. Zara must continue to be innovative and bring new ideas to the marketplace. It must adapt to all new forms of communication and technology which is vital, in a world which is changing before our eyes.
The Zara experience will be a vital element in the future of the brand and will help to differentiate Zara and enhance the customer’s experience. Zara plans to expand in the future and this will be talked about in the future. It will then establish itself as a global brand and will be a mechanism to market and advertise their brand scope. It will be a brand which will help to target the market in a variety of ways and will be an important means of communication and advertising.
To fully establish of Zara brand, it must target buy Zara in a variety of places in the world. Zara needs to find new and creative ways of advertising and communication. It will have to work to establish itself as a global brand, tapping the Internet as a means of communication with the consumer and this will be supported by the local advertising of television and other print. These mediums will be supplemented by the Internet and there will be a new form of advertising which will develop.
Zara will attempt to define itself by becoming a symbol of quality. This will then be reinforced by their retail outlet network and the way Zara follows its customer experience. Zara will be a successful brand and will give great customer value. The firm will succeed as it has found a means of communicating with its position in the future.
Zara will continue to grow and expand. This will be an exciting brand to follow in the future.