Marketing Management and Strategic Options of the Fashion Retailer Zara in the Current Economic Climate - Case Study Example

Marketing Management and Strategic Options available to the Fashion Retailer- Zara- in the Current Economic Climate Introduction: Zara Companyis known as one of the biggest companies in the fashion industry in the world based in Spain. It is in association with the largest distribution group in the world, the Inditex. The primary focus of the company lies with its customers and the company focuses on its innovative designs targeted towards its customers, its manufacturing processes, its distribution and sales as well as the widespread network that is in association with the company (Company, 2010). Marketing of products and hence the proper management of marketing is an essential factor for every organization and requires extensive measures to be successful and satisfy its customers by fulfilling their demands. Thus the understanding of the marketing management of a company and its strategic options available are essential for the company’s success. The current study focuses on the marketing management and the strategic options available to the Zara fashion retailer and from the study determines the key marketing strategies that may be incorporated in the company’s objectives and marketing plans as well as apply the concepts of marketing in the company’s future success. Zara Company: Market, Consumer, and Competition: In the global world of competition, it is necessary for every organization to undertake measures to increase its competitive advantage over its competitors. Zara is a popular fashion retailer whose parent company is Inditex. In order to achieve the competitive advantage over its competitors that include companies like Hennes and Mauritz (H&M), The Gap, Benetton, the company has plans to address the constraints encountered by its competitors such that they can overcome any obstacles. The core competencies of the company have provided the company with improved financial outcomes increasing its status over its competitors in the market. Such a phase has been possible for the company to achieve owing to the consumers of the company who have made it a success for the company. The consumers are highly satisfied with the company since Zara focuses extensively on responding quickly to the demands of the customers, increasing the speed of the flow of information in between the ultimate consumer and the company. Thus through the competitive advantages the Zara Company has made a position for itself in the industry and among the target market (Zara: Fashion Follower, Industry Leader, 2004). Mission and Objectives of the Company: The primary aim of the company is to create a sustainable development for the society in which they survive and contribute towards the welfare of the environment. Thus the main objectives of the company include saving of energy, manufacturing eco-friendly shops, produce less waste and perform recycling, maintaining commitment towards the company’s workforce and prepare and sustain a team that would remain aware of the environment. The above mentioned objectives of the company deal with the retail stores of the company. In regard to the products of the company, the company has set its objectives in use of ecological fabrics, cotton that is organic in nature and manufacture of footwear that is PVC-free in nature. In regard to transport facilities of the company, biodiesel is used by the company keeping focus on the welfare of the environment. Products based on animals that are available in the company are made available from animals raised in their farms and animals are not sacrificed for the purpose (Our Mission Statement, 2010). Stakeholders of Zara Company: The employees, the customers, and the suppliers are the main stakeholders of the company. The Zara Company has its primary focus on the utmost level of satisfaction of its customers and hence the company takes all necessary measures to manufacture and design products based on the demands of the customers. This attracts more customers for the brand. The employees of the company are also addressed and their welfare is considered accordingly such that they are satisfied and perform with their efforts towards the satisfaction of the customers and the ultimate consumers. Also, the suppliers of the company play a major role in this context since they are highly cooperative with the company’s needs and thus the required supplies are made in time enhancing the performance of the company and successful achievements (Gallaughter, 2008, pp.3-4). The Offerings of the Zara Fashion Retailer: The products made available by the Zara fashion retailer involved the products for men, women, and children. They would manufacture two sets of collections, one for the summer season and the other for the winter season. Zara generally tends to offer to its customers products that are newly manufactured by them in the market. Such products include garments as well as accessories like shoes, jewelry, bags and even cosmetics. The company offers such products at reasonable prices to make them affordable for the customers. This is turn also attracts greater number of customers for the company which acts as a marketing strategy for the company as well. The offers of the company aim at providing the ultimate consumers with newer fashion designs at smaller intervals of time. The quality of the products is also high and continuously varying according to the needs and demands of the consumers. The products are offered by the company to its customers depending on the target customers, the design, the prices of the products as well as the age of the consumers. The prices offered are naturally lower than their competitors such that the company gains a competitive advantage over the competitors (Ghemawat & Nueno, 2006, pp.10-13). Thus the offerings made by the company can be understood to target the ultimate consumers and satisfy the demands of the customers to the utmost level. Strategic Options available to the Zara Company: Zara fashion retailer has its utmost concerns for the marketing strategies that it follows as well the availability of the strategic options for the company. The primary strategy that the company follows is to focus on the demands of the consumers and accordingly manufacture and present new and varied products to them in lesser periods of time. Thus the company can be found to respond to the customers’ preferences in a rapid and continuous manner. The company in order to maintain its position in the market is involved in a number of strategic partnerships. The company also focuses on reducing its costs of production to benefit the company’s financial outcomes. It is not dependent on outsourcing facilities and majority of its products are manufactured within Europe. Another strategic plan followed by the company is represented by the advertising and promotion of the company’s products. The primary strategic options available to the company lie in the company’s use of the information technology within its management system as well as the financial stock options available. The company has plans to make investment plans on the IT division of its company intending to gain greater competitive advantage over its competitors. Thus a major strategic option available to the company is to take full advantage of the facilities of the information systems prevailing in the management of the company. This can be done by the company by following the process in which financial stock options work, meaning a smaller investment today can be expected to reduce the risks of the company in the near future (Zara’s Business Model, Information and Communication Technologies, and Competitive Analysis, 2011). Thus the company can be understood to have strategic options available to it that it has plans to make utmost use of. Marketing Models and the Marketing Management at Zara Fashion Retailer: The main concept lying behind the marketing of a product by any successful company is the satisfaction of the customers by fulfilling their needs and demands. Studies have revealed the relation between the higher satisfaction levels of customers and the increasing value of the shareholders of the company (Blythe, 2006, p.6). Strategic marketing is essential primarily to gain a competitive advantage for the company in the industry. If Zara fashion retailer is considered, its product development strategy based on the demands of the customers has been found to be combining the capabilities of the employees and the knowledge that the management team possesses towards successful implementation of their marketing. The information technology has been found to play a major role in this respect as it facilitates the company’s activities to get performed in a coordinated and cooperative manner (Cravens & Piercy, 2009, p.7). The core concepts of marketing involves the needs, wants and demands of the customers being taken into consideration while deciding on the marketing plans, understanding of the target market, and accordingly positioning and segmenting the market for selling and distributing the products, providing valuable and high quality products, keeping focus on effective supply chains and distribution channels and competing successfully in the business environment (Kotler & Keller, 1972, pp.14-17). Thus the marketing behavior and strategies followed by the Zara Company can be associated well with the concepts of marketing as mentioned by Kotler and Keller. Zara Company focuses on these factors intending to gain competitive advantage over its competitors and satisfy the customers fulfilling their demands. As Paul Rafferty mentions, sales and marketing are essential elements of the marketing process of a company and needs to be performed in combination to implement the marketing of their products successfully to their ultimate consumers (Rafferty, 2011). Zara fashion retailer not only has been found to manufacture its products but they also take measures to deliver them to the ultimate consumer who are the primary concerns of the company. Thus the business models as followed by the company already mentioned in the study can be understood to be in tune with the marketing concepts and knowledge provided by different experts who conducted studies on marketing management. Conclusion: The study focused on the Spanish based Zara fashion retailer that reflected the efficient manner in which the marketing policies of the company are followed with the intentions of gaining competitive advantages over its competitors. The satisfaction of the customers being the utmost concern of the company, Zara follows marketing models and measures to fulfill their demands and prove to be successful in its industry. References 1) Blythe, J. (2006), Principles & practice of marketing, Connecticut: Cengage Learning 2) Company (2010), Zara, available at: http://www.zara.com/webapp/wcs/stores/servlet/category/us/en/zara-us-W2011/11112/Company (accessed on November 10, 2011) 3) Cravens, D.W. & N.F. Piercy (2009), Strategic Marketing 8E, India: Tata McGraw-Hill Education 4) Gallaughter, J.M. (2008). Zara Case: Fast Fashion from Savvy Systems, Gallaughter, available at: http://www.gallaugher.com/Zara%20Case.pdf (accessed on November 10, 2011) 5) Ghemawat, P. & J.L. Nueno (2006), Zara Fast Fashion. Harvard Business School, available at: http://www.carlospitta.com/Courses/Negocios%20Internacionales%20y%20E-Business/Readings%20and%20Papers/Parte%209/Zara%20(Harvard%20Case).pdf (accessed on November 10, 2011) 6) Kotler, P. & K.L. Keller (1972), Marketing – Management, India: Pearson Education India 7) Our Mission Statement (2010), Zara, available at: http://www.zara.com/webapp/wcs/stores/servlet/category/hu/en/zara-W2011/18001/Animal%2Bwelfare (accessed on November 10, 2011) 8) Rafferty, P. (2011), What’s next: Sales and marketing integration, SMM, available at: http://www.salesandmarketing.com/article/what%E2%80%99s-next-sales-and-marketing-integration (accessed on November 10, 2011) 9) Zara: Fashion Follower, Industry Leader (2004), Philau, available at: http://www.philau.edu/sba/news/zarareport.pdf (accessed on November 10, 2011) 10) Zara’s Business Model, Information and Communication Technologies, and Competitive Analysis (2011), 123helpme, available at: http://www.123helpme.com/view.asp?id=97642 (accessed on November 10, 2011) Read More