Executive Summary:

In new product process,

business will commercialize
the plan and prototypes from
development phase,
distribution, and manage the
launch program to achieve the
goal.
When product been launched,
the track plan needs to be
prepared carefully. New
product manager should
implement the tracking plan,
seeking to spot every glitch
during launch and prepared
solutions (C. M. Crawford,
2012). Similarly, in Zara's case,
the clear logistic progress
guarantees the in-time
transportation. The POS system
makes
sure the sell condition is tight
controlled by the manager and
headquarter. However,
most appeal business reproduce
the most welcomed product, but
Zara is different. They
just produce the new product
once in limited quality as Zara
aims to provide customer
new product experience rather
than rely on the hot sale product
(2015, Zara).
In new product process,
business will commercialize
the plan and prototypes from
development phase,
distribution, and manage the
launch program to achieve the
goal.
When product been launched,
the track plan needs to be
prepared carefully. New
product manager should
implement the tracking plan,
seeking to spot every glitch
during launch and prepared
solutions (C. M. Crawford,
2012). Similarly, in Zara's case,
the clear logistic progress
guarantees the in-time
transportation. The POS system
makes
sure the sell condition is tight
controlled by the manager and
headquarter. However,
most appeal business reproduce
the most welcomed product, but
Zara is different. They
just produce the new product
once in limited quality as Zara
aims to provide customer
new product experience rather
than rely on the hot sale product
(2015, Zara).
In new product process,
business will commercialize
the plan and prototypes from
development phase,
distribution, and manage the
launch program to achieve the
goal.
When product been launched,
the track plan needs to be
prepared carefully. New
product manager should
implement the tracking plan,
seeking to spot every glitch
during launch and prepared
solutions (C. M. Crawford,
2012). Similarly, in Zara's case,
the clear logistic progress
guarantees the in-time
transportation. The POS system
makes
sure the sell condition is tight
controlled by the manager and
headquarter. However,
most appeal business reproduce
the most welcomed product, but
Zara is different. They
just produce the new product
once in limited quality as Zara
aims to provide customer
new product experience rather
than rely on the hot sale product
(2015, Zara).
Zara is quite possibly the most well known quick design brands which grow rapidly in
the overall style market. This report intends to create and examine the instance of Zara to
investigate Zara's fruitful legend in the style world. In any case, the report is going to
investigation the plan of action of Zara to discover fruitful components. Furthermore, it
will look at, differentiate and assess Zara's past and new item the executives interaction.
To wrap things up, the report will examine the market use of Zara's effective item the
board interaction with brands HM, GAP, and UNIQLO.
In new item measure, business will market the arrangement and models from
advancement stage, appropriation, and deal with the dispatch program to accomplish the
objective. At the point when item been dispatched, the track plan should be arranged
cautiously. New item administrator should execute the following arrangement, looking to
recognize each glitch during dispatch and arranged arrangements. Essentially, for Zara's
situation, the unmistakable calculated advancement ensures the in-time transportation.
The POS framework ensures the sell condition is tight constrained by the supervisor and
settle. In any case, most allure business repeat the most invited item, however Zara is
extraordinary. They simply produce the new item once in restricted quality as Zara
intends to give client new item experience instead of depend on the hot deal item.
Table of Content:
1. Environment analysis:
2. Evaluation of current marketing stratrgy:
3. Analysis of the organizations Competitive Advantage
4. Product rationale and specification:
5. Segmentation targeting & Positioning
6. Recommendations marketing objectives and goals
7. Identify appropriate marketing strategies
8. Conclusion
9. References

I. Environment Analysis:
1. Macro-environment:
a. Political & Legal: Because Zara and H&M manufacture their products in
various countries around the world, they must comply with the various
 labor laws that pertain to each country (Hansen, 2012). Zara audits unions
and cooperative partners and makes sure they have respectable supply
chains. H&M also discloses the compliance of its suppliers throughout the
manufacturing process to relevant laws and regulations set by each country,
such as the Safety and Hygiene Act or Child Labor Act (Hm 2017).
However, it is important to note that H&M does not have 100% compliance
and the average compliance with the law for all businesses operated by
H&M is 63%.
Zara and H&M do not manufacture products in South Africa, but as
distributors doing business in South Africa, certain laws that Zara and
H&M must comply with include: Employment Framework Act and
Consumer Protection Act (Zopedol 2008; Laborguide 2017).
b. Economic: Economic conditions can have a significant impact on the
success of industry and business, and according to Gauteng Regional
Treasury, a stable economic environment allows consumers to consume
more and the value of retail sales. To increase. The economy has been
revised downwards to a junk state, turning into the worst direction in which
economic growth is not expected to increase by more than 1% (Davies,
2016; FocusEconomics, 2017).
c. Social: Shared lifestyle, conviction and attitude of South African population
(Louw and Venter, 2013). Where the socio-cultural attributes of the
population change to fulfill demands for other products and services.
Classified as price-sensitive consumers, Zara and H & M meet consumer
needs based on offering high quality items at low prices (Hattingh, Magnus
& Ramlakan, 2016). Most consumers generally have a low-income group.
However, Zara and H & M have become emerging upper classes capable of
pursuing good quality and monetary value (Deloitte, 2014). There is also an
increasing consumer sector of millennium generations, and these
 individuals are looking for a connection with shared value with their
brands.
d. Technology: By becoming the center of attention, the number of
technological factors affecting the industry is increasing. A technical factor
in the retail industry is the rise of e-commerce, with many consumers
choosing to shop online (Bush and Frue, 2016). Recently, online retailers
have been found to outperform traditional brick-and-mortar stores, and
competition from online retailers has become a huge challenge for fashion
companies.
2. Micro-environment: The different types of resources include tangible,
intangible and human resources of the organization (Louw and Venter, 2013).
The physical resources of a company can be called tangible assets in its
financial statements (Louw and Venter, 2013). Zara focuses on cultivating
internal talents and creating a work environment where employees can become
critical thinkers, express opinions, work hard and constantly seek to learn new
things (Inditex, 2015; Inditex.com, 2017). They also developed a document
called the Code of Conduct and Responsible Practices, which stipulates the
behaviors that Zara employees must follow in the performance of their
professional duties. Zara and H&M supply chains and suppliers will be
discussed in more detail in subsequent strategies, because their supply chains
and value chains are the key to the success of their respective strategies. Zara
has dynamic capabilities because it has developed new capabilities that enable
it to have an advantage over its competitors (Louw and Venter, 2013). This
will be discussed in more detail in the strategy, but it is important to note Zara's
dynamic capabilities especially in its value chain, where the value chain refers
to the value added in each activity chain within the organization. (Susan
Payton, 2017).
II. Current Marketing Strategy:
1. Zara’s a Fashion Copycat:
Many retailers use a strategy of trying to be fashion innovators, become trendsetters,
and attract early adopters. But instead of spending money on R&D to be first to
market, Zara takes a completely different approach: fast fashion. Rather than setting
fashion trends, Zara is following current trends and is set to offer hearty, affordable
versions of high-end brands. The brand has increased its overall sales by around 50%
in 5 years to $ 17.5 billion.
2. It monitors and responds to customer’s feedback:
At Zara, asking for customer feedback is more than just lip service. When a client
says she likes (or hates) an article, it is reported to head office and communicated to
internal designers, who will apply the comments to future work. And its store
managers are not minimum wage employees. They're fashion experts and watchers,
and they're taught to pay attention to what their customers say and do to reflect the
moves the brand needs to make next. Try to do this with the amount of statistical data
generated on the computer. By involving customers in the design and innovation
process, Zara builds great brand loyalty.
3. It uses an Anti-Marketing approach:
The company only spends about 0.3% of its revenue on advertising and has little to
say about marketing. Considering that the industry's average marketing spend for
retail is 3.5%, you can see how profitable Zara is with this approach. But what
appeals to customers is its exclusivity and not every brand is affixed to every
billboard. Buyers feel that if they buy one shirt from Zara, five other people won't
have the same shirt at work or school. The store's low inventory contributes to this
exclusivity factor. It feels like you're in a fun kids' club when the brand is still
undercover in terms of advertising.
4. Location is the most important:
Zara invests in the location and appeal of its stores, which now have about 6,500
stores in 88 countries. Zara's store placement strategy is to define premium retail
areas in major metropolitan areas. You won't find Zara next to WalMart, but it's more
likely near high-end and high-end fashion retailers. It seems that by proxy, high
 fashion is in Zara's favor, although it is much more affordable for its audiences.
However, the brand recently announced that its active store expansion will slow down
a bit (from 810% to 68% new sales growth) as it focuses more on building your
online sales.
(Lydia Dishman, 2021)
III. Analysis of the organizations Competitive Advantage:
Zara has thus far been extremely successful, with sales growing approximately
10% year on year and reaching $19.7 Bn. In fiscal 2014. Its performance puts it
ahead of other “fast fashion” retailers such as Uniqlo and Gap and only second to
H&M (Zara leads in fast fashion, 2015). Part of this success comes from its rapid
growth in emerging markets (over the past few years, 50% – 60% per cent of new
store openings were in China, Russia, Poland, Mexico and a few other markets. It
will be interesting to see whether its winning centralized operating model will
stand the strain of its global expansion.
1. Design and Stores:
Instead of designing a collection long ahead of its release, Zara tries to
continuously recognize emerging fashion and incorporate them in its designs and
products. Through sales data capture and shopper anecdotal feedback, store
managers daily report tens of thousands of customer reactions to design teams.
Sale trends are analyzed along to runway releases and quickly incorporated into
the next line of production, creating a cycle of iteration and innovation. Once
designed, new fashions are produced in relatively small quantities, so “misses” can
be quickly identified and discontinued and “hits” builtupon and rereleased.
2. Manufacturing:
One of Zara`s core competencies is its ability to apply “just in time”
manufacturing to fashion production. Most of manufacturing is done close to its
home base, in and around the Iberian Peninsula. Garment making is subcontracted
to specialists whose automated factories constantly create unfinished colorless
(“greige”) goods. As soon as Zara decides on a new design, the “greige” goods are
 sent into Zara`s own finishing shops where they are turned into marketable
products. High European manufacturing costs are offset with cost savings
associated with fast turnarounds (e.g. less inventory in warehouses, less discounts
and markdowns, etc.)
3. Logistics:
Distribution takes place twice a week to ensure store inventories are constantly
kept fresh and unique. The logistics system, based on proprietary software, ensures
that the time between receiving an order at the distribution center to the worldwide
delivery of the goods in the store is between 24 and 48 hours. Zara adopts a
centralized distribution system with every single item of clothing coming through
its distribution center in Spain, ensuring consolidation of orders to individual
stores.
(Kennedy, S.H. 2019)
IV. Product rationale and specification:
 Figure 01: The new product, 2021.
New unisex T-shirt
• Basic details:
• Material: specially treated cotton cloth, which can absorb moisture from the
skin.
• Design: A special edition of a strange Japanese designer.
• Size: XS to XXL to meet the widest possible market goals.
• Color: A variety of colors, allowing you to easily find the color that suits your
current clothing.
As a matter of first importance, it investigations and rapidly responds to clients'
criticism. Having gathered purchasers' impressions, comments, analysis, prepared
 senior supervisors report this data back to the base camp. On such base architects
make future garments, which assembles enormous brand faithfulness. What makes
Zara stand apart from its rivals is going through the base measure of cash (0.3% of
deals) on publicizing, so there isn't a lot showcasing to discuss. This in its own
particular manner causes Zara's clients to expect they will not meet an individual
wearing a similar thing, since its garments are basically not put on the
announcements. (Suzy Hansen, 2020)
V. Segmentation targeting & Positioning:
1. Target sections:
It is made up of 58% of women’s clothing, 22% of men’s clothing, and 20% of
children’s clothing. It targets a wide age range from 0 to 45 years old.
A woman in her late teens who lives in a large city in her late thirties and whose
income level is intermediate between the luxury market and the low-end market,
and targets fashion and trend-conscious consumers.
2. Position:

Figure 02: Market Position of Zara, 2021.

We offer high-quality style products reflecting the latest trends at mid-price.
The quality of the products of Jara reflects the fashion codes leading to the middle
and upper level. Consumers are provided with the latest style of general luxury
 goods through Jara, and stimulate consumers’ desire to purchase sensible prices at
a reasonable price.
It merits referencing that Zara's situating on the lookout and its craving to turn into
an essential forerunner in the field of clothing retailing were conflicting with the
current promoting systems pointed toward drawing in client consideration. Indeed,
Zara spent just 0.3% of its income on publicizing. In addition, Zara spent most of
pay on the advancement of new items, opening of new stores, and the
dissemination of items.
(Gluyas, R. 2020)
3. Segmentation:
Traditional apparel brands differentiated from new products every once in a
season, launching new products every two weeks, and entering the market with
fast fashion brands reflecting customer’s taste.

VI. Recommendations marketing objectives and goals:

Zara has all over coordinated every one of its cycles. By applying a "quick style"
technique, Zara have achieved a sudden expansion in benefits and portion of the
overall industry. By acknowledge the "quick style" system the organization has
had the option to diminish its make down deal to 15 to 20%. Interestingly, the
customary business' normal is 30 to 40%. It has been analyzed to be the most ideal
approach to assist association with accomplishing upper hands. Such best
performs assist Zara with setting up a phenomenal inventory network and become
the head of in inventory network the executives. The act of execution of "quick
style" enjoys a couple of benefits "Speedy reaction, decreased record and
anticipating, blunders, abbreviated lead times and diminished transportation costs.
In couple of years, as other fundamental contenders like GAP, H&M , Marks and
Spencer (M&S) have encountered a troublesome period because of low pay and
with drones from abroad business sectors, Zara has kept a consistent development
in deals.
One aspect of the basis for these proposed extensions is your closest competitor
because they are in your positioning; H&M, Topshop, Woolworths and Cotton On
provide these items in their products, so if Zara does not provide these items,
consume Resellers will re-purchase from these competitors (Infoentrepreneurs,
2009). This gap in the supply of Zara products provides the company with an
opportunity to respond to competitors and further satisfy consumer needs. The
proposed brand extension strategy includes the following products: elegant
underwear and nightwear.
Zara currently only supplies a small amount of men’s underwear, but the
proposed new brand extension includes modern and fashionable women’s and
men’s underwear and pajamas. Since these proposed extensions are included in the
fashion industry, they can be well adapted to Zara’s existing production strategy.
Therefore, they do not have to follow a completely new strategy, but it is easy to
implement the proposed extension in your existing strategy.
As a global brand, Zara's status in different countries is highly praised. However,
there are restrictions on opening new outlets in various countries/regions. Zara has
achieved the set goals, which prompted the company to develop a new expansion
strategy because the company is assisted by competent working groups around the
world. All operations related to manufacturing and other activities are conducted
at its base in Spain. Zara must consider the fact of longer-term sustainable
development, which can push the company to the risk of surviving with the same
strategy. Zara needs to diversify its business in countries that provide a favorable
business environment for Zara. This can lead to the latest ideas that open up fresh
styles for a range of products offered by Zara. New cultures and traditions, as well
as interaction with new markets, will help to expose the company, formulate
innovative ideas and comprehensive development for company employees.
However, there may still be obstacles in the formulation of new policies and labor.
 Skilled labor can simplify the process of addressing issues. The expansion of the
target-oriented market and the latest styles will be more exposed on a global scale.
If the company seriously considers the scope of expansion, then the differences
between countries, their styles, preferences and clothing options may be welcomed
by other countries if they are not popular in one country.
(Gluyas, R. 2020)
VII. Identify appropriate marketing strategies:
1. Position:
Zara has designated the youthful clients essentially. Its intended interest group is
the millennial age. They are value touchy youngsters. They need their design
moderate yet stylish. Zara has strongly designated this fragment utilizing the most
recent styles and low costs. Nonetheless, that doesn't imply that Zara has settled on
quality. Its textures are still of adequately great quality however by and large
intended to be utilized for simply a season. Zara targets basically the ones who
contain that biggest piece of its objective section. Aside from them, men likewise
contain a more modest section of its objective market and the littlest portion is that
of the children. Ladies are the greater part of its objective market while men and
children make for 40% of its objective market (Balmer, J.M.T. and Gray, E.R.
2020). Zara has situated itself as a reasonable design brand for the youngsters. Its
most special component is that design seasons go back and forth here quicker than
the remainder of the style world. It's anything but a bigger collection of plans and
styles contrasted with the normal retailers.
2. Marketing Mix:
 Figure 03: Zara’s Strategy, 2021.
*Product:
Zara offers products for men, women and children. It offers jeans, pants, shirts, dresses,
knitwear, t-shirts, shoes, bags and accessories. These are all product strategies in Zara's
marketing mix. It is a one-stop solution for everyone, whether you want to buy
therapeutic or causal drugs. One can choose from the different styles offered by Zara. It
rolls out at least 10,000 new designs in a year. Zara products are a hit with high
fashionistas as well as the masses. The tastes of the target market influence the
availability of the product line. Zara is also collaborating with local talent to bring out the
best fashion trends.
*Place:
Zara follows a low price strategy. It can afford to do this because it doesn't spend a lot of
money on advertising and raw materials. It has a low cost overall structure compared to
its competitors. Zara's prices are country specific. Labeling of their products is done
locally in each respective market. Zara establishes a market-based pricing strategy that
sets a target price that consumers are willing to pay. Production budget by target price.
This in turn will set the margin they earn on each item. This provides insight into Zara's
marketing mix pricing strategy. Brands use different schemes to promote sales. Zara has
 low sales year round and discounts of 50% or more twice a year, making consumers look
forward to it.
*Price:
Zara has a huge reach with stores in 88 countries, with over 6,500 stores. Zara also sells
through her online store. All of this involves localizing the brand's marketing mix and
distribution strategy. It is a vertically integrated company. Zara's supply chain is what
gives them a competitive advantage. It uses its unique business model to bring new
products and fashions to market in the shortest time possible. Store managers send orders
to headquarters twice a week based on store sales data and buyer preferences. The sales
team composes the order and then sends it to the production center. The sales team also
collaborates with in-house designers to discover new trends and develop new products.
New products are produced in relatively small batches, giving them exclusivity.
*Promotion:
Zara spends almost no money on advertising. Unlike its competitors, Zara does not
engage in flashy campaigns. This is why Zara ads are not shown on television. Zara's
unique selling proposition is short turnaround times, a wide range of styles, and
affordable prices. It relies on word of mouth and social media rather than expensive
marketing tools. Zara's reach on social media is quite unique. Zara has 2.5 million
followers on Facebook and 15 million followers on Instagram. Interestingly, Zara doesn't
put their logo on their products. Zara likes to spend a percentage of its income on opening
new stores. The brand spends money on expensive real estate for its stores and for
decoration. Zara believes their storefront is enough for advertising and they don't need
anything else to sell their products.
(Folpe, J. 2020).

VIII. Conclusion:
In short, Zara defies the norms of the style business. Zara is effective in quick style
industry since they utilize the right plan of action, meet the individuation
prerequisite of clients, produce more styles yet restricted amount, utilize youthful
 originators, gathered information by ADS, firmly control the business condition by
POS, in-house make interaction, and clear calculated framework. Rather than
conventional new item measure, Zara utilizes an upward arranged framework that
can quicker the speed and lower the expense. It's anything but a mutually
advantageous technique as clients can get the new style things and business can
get more benefit. Enlivened from Zara's fruitful story, organizations can break the
conventional item measure, hence, further develop their business execution.
IX. References:

Balmer, J.M.T. and Gray, E.R. (2020), “Corporate brands: what are they? What of
them?” European Journal of Marketing , Vol. 37 No. 7/8, pp. 972-97.

Burghausen, M. and Fan, Y. (2019), “Corporate branding in the retail sector: a pilot
study”, Corporate Communications: An International Journal , Vol. 7 No. 2, pp. 92-9.

David Walters, Effectiveness and efficiency: the role of demand chain management,
The International Journal of Logistics Management, Vol. 17 No. 1, 2006, pp. 75-94,
Emerald Group Publishing Limited.

Folpe, J. (2020),“Zara has a Made-to-Order Plan for Success”, Fortune, Sept. 4

Gluyas, R. (2020),The Australian, 15 November

How Zara Fashions its Supply Chain, Strategic Direction, VO L. 21, NO. 10 2005, pp.
28-31, Emerald Group Publishing Limited

Kennedy, S.H. (2019), “Nurturing corporate images – total communication or ego

trip”, European Journal of Marketing, Vol. 11, pp. 120-64.
Lydia Dishman, ”The Strategic Retail Genius Behind Zara.” March 23,
2012. https://www.forbes.com/sites/lydiadishman/2012/03/23/the-strategic-retail-
genius-behind-zara/#acbacc369d8b

Suzy Hansen, ”How Zara Grew Into the World’s Largest Fashion Retailer.” The New
York Times Magazine. Nov.9,
2012 http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-
largest-fashion-retailer.html?action=click&contentCollection=International
%20Business&module=RelatedCoverage&region=EndOfArticle&pgtype=article

Susan Payton,”How Zara Makes Billions In Sales With Minimal Ad Spend.”

Feb.,2017 https://www.referralcandy.com/blog/zara-marketing-strategy/