Integrated Marketing Communication of Zara Company - Case Study Example

ZARA FESTIVAL INTEGRATED MARKETING COMMUNICATION PLAN Table of Contents 1.0 EXECUTIVE SUMMARY 2 2.0 INTRODUCTION 3 3.0 BRAND ANALYSIS: ZARA 4 4.0 AUDIENCE ANALYSIS 4 5.0 SITUATIONAL ANALYSIS 7 6.0 COMMUNICATION VEHICLES 9 I.Promotion Ambassadors 10 II.Newspaper 10 III.Television 11 IV.Magazines 11 V.Internet Marketing 12 7.0 Sponsorship Partners. 12 8.0 Public Relations 14 9.0 CONCLUSION 14 REFERENCES 16 1.0 EXECUTIVE SUMMARY Zara is a renowned clothing store and accessories line with a cumulative of over 1285 stores across the globe. Integrated Marketing communication (IMC) is a very essential tool through which the company can gain a greater consumer base and also create awareness of the intended event of Breast Cancer Research. IMC integrates processes and system that are used to channel the awareness to the general public. Important channels that the company needs to use include use of the ambassadors, print media, the television, radio and essentially the internet marketing which is very important. The channels identified will require the goodwill of not only the management but also all the stakeholders of the organizations. The gains of a comprehensive IMC cannot be exhausted however there are barriers which have been explored in the report. Moreover, for a successful IMC project of the event there is need for a situational analysis, competitor’s analysis, audience analysis and also a great need to source the necessary partners who will sponsor the event. Success in the Melbourne event will not only bring the gains to the event perse, but will also increase the profitability of the clothing line in the new market at Melbourne. 2.0 INTRODUCTION Integrated Marketing Communication (IMC) is a process intended to match the budget of a business entity to the best ideal method of integrated channel of advertising. Advertisement is very essential for a company since it assists the business entity in realizing bigger profits margins and more sales. IMC is thus links different mode of communication to ensure that the message is delivered to the right audience at the right time. IMC incorporates several channels of communication including but not limited to; website creation, collateral advertising, on-line marketing, trade shows and other mode of advertising like print, TV and Radio (Fill, 2007). Essentially IMC will have a detailed analysis of the strategy to be used; it will give choices and implementation methods which will realize the maximum benefits of the available marketing communication methods with the most efficient mode and available resources (Duncan, 2002). Zara should integrate all these factors to ensure that a comprehensive transaction is availed and attained where influence will be felt with the existing and potential customers. The foundation of IMC is the harmonious working of the promotional tools. A successful promotion and realization of the objectives and goals of the IMC requires the integration of horizontal, vertical and data alike. Horizontal integration occurs when the marketing mix happens across board different but interdependent departments; finance, production and distribution. 3.0 BRAND ANALYSIS: ZARA Though the festival is happening in Melbourne, Zara is a big name in many constituents and is not only confined to the daily operations in Australia. Zara was founded in the year 1975; it remains one of the most esteemed Spanish clothing and accessories line. Amancio and Rosalia Mera were the main founders of the Spanish line and it is in Arteixo, Gallacia. Zara brand is well known across the globe in Australia the clothing line has three main stores including the Bourke Street Mall at Melbourne. The other stores also available in Australia are based in Westfield Sydney and one other based in Burnside Village in Adelaide, South Australia. Zara specializes in the products of the women, men and children. It is thus all round and the management ensures that the trends match with the modernity. Considering that the store line is based in more than 73 countries in the world, the Australian market is fairly new. A lot of input in terms of advertising and communication ought to be embraced to maximize the visibility of the brand to the prospective consumers (Belch, 2007). The most essential part of the brand analysis will also require that the company management comes up with a vision, objectives and goals of the Festival. The vision gives guidance and compass to the event. The corporate are attracted and their goals to partner sparked stemming from the vision and the objectives of the festival. The vision and the objectives should not diverge or be far away from the objectives of the Zara Clothing store. 4.0 AUDIENCE ANALYSIS The report shows that Zara is a family store. The CNN even features Zara as a ‘Spanish success story’. With a company of great repute it is important that the products sold are of the best quality. To ensure quality the company has invested heavily in primary textile industry, with most of the products being sourced from its main industrial hub in Galicia, and the distribution spanned to the rest of the world. The target market and clothing products are mostly intended and targeted to capture the women and children and market. The spontaneity of women in shopping for clothing products is the backbone of most clothing lines. In organizing the Festival which is intended to realize funds for breast cancer research, this majority consumers should not in the very least be ignored. Women fairly shop for the clothing and accessories which also increase the sales of the products to the children too. Though men market is not as popular as the women market, the male market is also fairly performing well across the globe. In organizing for the IMC plan it’s important to target the lady market. Essentially even with the growth of modern trends the young men and women are becoming frequent shoppers of designer products. It is important to maximize in targeting the younger generation of both men and women. The health issues in the young people would rhyme well with the modern fashion trends. Wisdom is also important in capturing the older generation who apart from having the financial resources to contribute to the research and buy the products, may find it beneficial to learn a lot on the health issues apart from the contribution (Fill, 2007). A careful analysis of the audience is the first step of acquiring the best corporate sponsorship for the event. Most corporate apart from wishing to partner for the event, would wish to market their products and their brands. Most corporate if convinced of a symbiotic relationship would come up on board to promote their brand in the now famous smokescreen of Corporate Social Responsibility (CSR). CSR does not only market the corporate but also assist the business entity to lower the tax burden. Essentially the link of benefits ought to be established before the corporate agree to participate in the event. There are various bands that would successfully make the event successful like the Crystal Thomas, Sin City and New Navy that are endeared by young generation. Zara in exploiting the Melbourne market should be set in conducting the competition analysis. A competition analysis seeks to establish the main competitor’s market analysis and the trends set to market their products. Success in the market share is set to topple especially for the new entrant Zara if it seeks to have an IMC that is holistic and consumer oriented. Marketing in itself is not a destination; the organization should seek to also make sure that the quality of the products remains good and competitive. The management should carry out the competitor analysis especially since the company is fairly new. The objective of Zara would be to essentially capture the market share and become a leading clothing line, the reputation boosts these endeavors but more need to be carried out. The marketing objective of Zara Clothing line in marketing the Melbourne festival is to market the versatility of its products and appeal the products to the ladies and the younger generation. In a generation where most of the activities are carried out in an Information Technology (IT) environment, it is imperative that a website of the organization should be developed. A presentable website is the first step towards realizing a bigger crowd at the event. The website should be presentable and should capture a feedback tag from where the consumers and attendees can give their views before the event. The website is an important interface of the management and the crowd (Clow and Baack, 2007). From the very start the success of the festival cannot be divorced from marketing the products available at the Zara Clothing store in Melbourne. In as much as the festival is the main vantage point, the products marketing become the second core objective. 5.0 SITUATIONAL ANALYSIS Another important consideration in organizing the festival and also marketing the products is the event venue. Several key issues need to be taken into account in analyzing the situational analysis which includes getting a prime venue. The venue of the festival should not only be expansive but should also have enough parking spaces for the audience. The noble cause that the company is engaging is both raising the funds and awareness of the Breast Cancer request corroboration and partnership with the professionals in Melbourne. It is very essential to get a nexus with an esteemed and reputable health facility that will accord the professionals in ensuring the success of the event. Another important factor to be taken into account will include the facilitative role the company will conduct in making sure that the audience is satisfied with the services. In relation to the budgetary and financial costs the timing and the duration of the event play an important role (Hutton, 2003). The consultancy recommends that the event should take place in three days fairly in a Friday, Saturday and Sunday. Appealing a bigger crowd and corporate on weekends is both captivating and a necessary plus. Bearing such important timing into consideration, the company will require obtaining the necessary approvals from the authorities and also procuring a facility that will not have engagements in a period of three days. Further and important the venue needs to be very close to the Melbourne town centre. A venue that is further away from the city may not attract a crowd as one that is near the town. The lifestyle of the locals will be carefully be analyzed in reaching an objective conclusion as to the timing and the venue. The venue should also have the necessary social amenities and space that will boost the partnership with other corporate sponsors. Since the target audience is aimed at the younger generation, the weekend become the best time since most are not engaged in academicals or employment engagements or arrangements. The event success will be pegged on a successful analysis of the situation. The festival should not be a short term stint with the consumers but should be geared towards establishing long term relationship with the consumers. The situational analysis will also require that the management carries out a SWOT analysis (Davis, 2000). This is acronym of Strengths, Weakness, Opportunities and Threats of both the Festival event and the Zara clothing company in Melbourne. The biggest Strength in the Melbourne festival is that it’s a premier innovation and interactive method which has not been used by other clothing and accessories companies. The noble cause to which the event is organized is also a great strength since it portrays a picture of a company that is not only geared towards minting the resources of the customers but also promoting their wellbeing as a whole. The great weakness would be traced with corroboration. Since Zara is a new entrant in the market having established its base in Melbourne on the 15th June 2011, most companies may be unwilling to partner with the company. The opportunities available are that the company has successfully made a wonderful base in more than 73 countries, with an impressive marginal base in the Europe and Asian continent. With such a successful background, companies may wish to partner too since the company has an element of growth in other continents. The greatest threat remains the competitors who will not sit back and see the company takes the market share. They will fight to retain the monopoly and the market share in the clothing industry. 6.0 COMMUNICATION VEHICLES A proposal to have the festival website has been forwarded. The best proposal would be www. Zaramelbournefestival.com, this captures both the event and also the main sponsors Zara. The website should not be shrouded in uncertainty, Zara’s brand should not be obscure, but should rather be visible in marketing the event. The following method should also be available be capitalized to bring out successful results. I. Promotion Ambassadors This is an important way of penetrating a market. Zara should get the attention of the biggest celebrity in Melbourne. The person chosen to market the event should get a wider appreciation by both the younger and the older generation. Ambassadors are very helpful in promoting an event also the Zara brand at large. The ambassador would be a music personality, a fashion personality or even a sport personality. It can be a choice of either one among the choices or a combination depending on the amount of resources the company wish to implement and utilize in marketing the event. A good proposal would be a fashion personality like Miss Melbourne, since this would augur well in both promoting the noble cause of the festival and also the brand of the company. II. Newspaper Print media is also a very successful way of getting to a higher target audience (Gould, 2000). The company management should consider running fairly many adverts that will run for a fairly longer period as opposed to a large print that will be expensive and a lesser memory shelf life. The reports also show that the consumers prefer to buy the weekends newspapers; this should be targeted since the event is also intended to be held in a weekend (Fill, 2007). Great input also needs to be put to realize greater sales. The advert should not only be presentable but should contain all the relevant information that is intended to be captured. The advertisement in the newspaper should not only be a mere advert but should capture the human stimulations by well integration of emotions and desire. Resources should only be channeled to a newspaper that has a bigger readership (Duncan and Mulhern, 2004). III. Television The TV is another mode through which the festival can be promoted. Identifying the Television that has a wider viewership is the first step of getting a greater audience. A 30seconds commercial would be essential which should run for a longer period. Television avails the attention of all the target audience, the men, women and children who may get the attention of the prospective Zara clients. The commercials should run in such a way that they capture and saturate the mind of the clients so that they are aware of the event (Low, 2000). Since the company has an international visibility, television commercials should not only be confined to the Melbourne TV stations. The citizens also watch international channels and it is thus imperative to take an important step in marketing the product via ESPN, FOX, ABC and TBS. TV ads may be very successful since most homes have the electronics, cutting across the class and gender (Hartley and Pickton, 2004). IV. Magazines Another channel to be use by Zara and which works with many clothing lines will be to take up slots in the magazines. The magazines have a longer shelf life than the newspapers. It will be important to get a greater penetration of the fashion magazines and those intended for the men and women. Magazines have a longer shelf life and greater impact on the target audience. Since diverse methods of capturing the attention of the festival and the brand has been captured, wise use of resources and capitalizing on the available channel and slot ought to be taken into consideration (Fill, 2007). V. Internet Marketing Advertising via the internet is currently the wind sweeping across the globe. It is important that the company utilizes the internet in both advertising and also a means through which to capture the sales. Zara has for a long time not utilized the internet marketing; it is just recently through Inditex that the company started utilizing the online market clients. The Festival can be marketed so well and with lesser cost through the internet. It is important to monitor and partner with the bigger internet brands such Google, YouTube and ESPN who may place the ads to their huge users (Davis, 2000). This will not create Zara visibility but also the awareness of the event. Internet marketing cannot currently be separated from the social networking marketing. Currently the younger generation is engrossed in the social media networking sites like Face book, Twitter and MySpace. To get a bigger greater attention the Melbourne Festival needs to be advertised through the social networking sites. Internet marketing will act as a most effective and efficient mode of reaching the target audience, Ad words is an efficient channel through which greater visibility has been enhanced. 7.0 Sponsorship Partners. The following are the identified partners who may come in handy to establish a greater input in Melbourne Festival since they have a greater visibility in the city. The identified partners to be pursued include the following; a. Coles Myer which deals with food and Supplies. b. National Australia Bank- Bank. c. Commonwealth Bank Group- Bank. d. Telstra Group- Telecommunication. e. TabCorp Corporations- Consumer Services. f. Insurance Australia Group- Insurance. g. Axa Asia Pacific Holdings- Insurance. h. Housewares International- Retailing. i. Iress Market technology- Software and Services. j. Oamps Limited- Insurance. The list is a proposal of the partners who may chip in to realize the success of the festival. Though most of the corporate are based in Melbourne, some have a wider scope in Sydney, Adelaide and other cities. Corroboration with this organization will not only benefit Zara but will also increase the visibility of the partners. Examples are the Insurance Companies who may get clients out of the audience awareness on the need to get a medical cover. The banks would be the financiers of the project and would also facilitate a smooth way through which clients can buy the Zara products through an automated system. Software companies’ benefit will be realized through internet marketing which both increases the brand awareness and also the client’s base. A positive corroboration of not only the above organizations but also the event organizers companies and hospital will make the Melbourne event memorable and also successful. 8.0 Public Relations This is another important channel of advertising that is used by most successful companies. A very good example of such a company is Microsoft (Hutton, 2003). Zara can utilize public relation which encompasses the use of PR managers who give the organization credibility. Credibility is cultivated when a good will is build of the company. Zara needs to build a credibility score not only to the general public but also prospective consumers of the product. It is essential that the company partner with the best PR companies in Melbourne. They ensure that goodwill is cultivated in the mind of consumers and also the stakeholders. A successful PR campaign will cut on the costs and also ensure that the company and the event simultaneously acquire a positive buzz; talked well by the citizens. To realize the fruits of PR the company also need to cut negative publicity acquired both in the subsidiary companies and internationally. An example is a report published in Sao Paulo in Brazil that accused the company of slave labor. The company was accuses of not only poorly paying the workers but also subjecting them to a tortuous period of 14 hours a day in an enclosed apartment. Such negative publicity could ruin the gains of a successful PR campaign. 9.0 CONCLUSION The benefits of IMC are very many and could not be understated. The use of IMC would increase comparative advantage. Consequently this would increase the sales and profits of the company. A structured and strategized use of IMC results in a good consolidated image of Zara and also the Melbourne festival. Further use of IMC essentially assists to develop a bond and a long term relationship with customers (Clow and Baack, 2007). The merits that could be gained by Zara far match outweigh the demerits. Apart from the aforesaid benefits, other benefits would include up to date information of the services, events and products which would assist the customers from making misplaced choices. Since IMC is well connected and involves all the departments it essentially boosts the company’s efficiency and avoids duplicity of efforts by the company staff. However despite the gains that are evident from a successful use of IMC, there are many barriers before a successful IMC. Some of the most important are the rigidity in the organizational structures. The management structures are conservative in nature and there is bureaucracy before any resources are realized for IMC. Further there is creativity restriction. Most organization will generally remain enveloped in one mode of communication that served them to profitability a while back, while remaining less abreast from the modern mode of communication and advertising such as Ad words and social networking sites (Gould, 2000). 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