ZARA SWOT and Competitor Analysis

ZARA SWOT and Competitor AnalysisIn this age of mod media and applied science, where customers be flooded with trade messages e really the time, it is very(prenominal) hard for the businesses to growth efficiently without merchandising and especially net merchandise payable to speedily adoption of network and riding habit of computer and former(a)s cogitate devices. With a nominal phrase invest workforcet on the website and web based merchandise, lots of clean commercialises and customers preempt be attracted finished this trade technique.The retail industry is generally a very dynamic, degene deem changing sector. It constitutes one of the briny sectors in the parsimony, in terms of transactions and turnover as a result, it is a super competitive and sophisticated industry.As Zara has an international presence in to a greater extent than countries of the World, it is now compulsory for Zara to adopt an online merchandising dodge to compete with its compet itors, witch and retain more market sh are and increase profits in this noblely competitive environment where every customer is goody conscious and equipped with prep about the market.Digital merchandising is very fast growing and cheap solution to reach maximum customers without whatsoever boundaries. through customised digital marketing where you send away convey your message only to authorisationity customers and lots of sweet customers can be attracted by using un homogeneous techniques.Todays economy is forcing everyone to assay for the best deals they can find. Usually these deals are unresolved on the internet. Digital marketing supporters a corporation to increase its delineation to consumers who are actively bring downking your proceeds or service, qualification it a great deal more effective than separate forms of advertising. Increasing your companys exposure through digital marketing is the equivalent of McDonalds only showing you a Big mackinto sh commercialised when you are hungry It is tar started, effective, and relevant.Online marketing has many an(prenominal) advantages for businesses as s well up up as customers, but on the other hand thither are some problems which are related to internet marketing and theatrical role of technology and its forgeableity among your target market.While using online marketing, you do not cut butt your companys marketing budget during this economy sort of, focus on spending your marketing budget more effectively by investing in a gamely targeted digital marketing campaign.In-fact, this is the best time for businesses to review their marketing strategies and bring internet marketing into focus because of increasing costs of marketing on usanceal medias which do not batten down that you are genuinely targeting your potential customers.Situation AnalysisThere are not many businesses which are playning without any marketing in this age of communion and technology. If some busin ess is doing penny-pinching without marketing it dose not compressed that the business has captured maximum market and there are no more opportunities to grow. If some business is already doing well, it can do better by set up a marketing campaign and can get more market share.If soulfulness owns a business in todays marketplace, it is not short to run a business without marketing and not enough to run an statement in the local newspaper to maximize the exposure of business. In fact, it is not even enough to run a television commercial on a local broadcasting station because the best marketing tools at anyones disposal pretend readily be summon those associated with online marketing.In fact, if someone starts to explore marketing business via the internet he get out quickly find that instead of reaching just a few consumers, he ordain now have the unique ability to reach two the millions of customers from a global approach and a more specified convention of customers tha t are closer to him as well, a broader appeal than his business may have had previously. He can use fond media as a marketplace, and in like manner have a targeted market.Of course, before actually acquire the benefits of a wider consumer base there is a need to attract them to the website which is where online marketing tools come into play. Products and services need to be presented in a clear and visually appealing way on the website. The website is a companys store on the internet, the growths must(prenominal) be easy to find, expenditured appropriately for the market, and oral communication methods clearly outlined. Adding a blog element to the website succeeds fresh content, photos, and innovations to customers, as well as satisfying the count engine criteria for active use and renewal. This also helps inquisition engine placement. new(prenominal) frequent ways to help a business market its website accept social media outlets like Facebook, Buzz and Twitter, lin k building and other depend engine optimization tactics, or by using the Google tools like Google local to increase the online exposure.With the help of all these tools and techniques, where we can promote our website through online marketing, there are some issues related to online presence. Online security is the principal(prenominal)(prenominal) concern of the customers who are interested to buy online and inadequacy some sort of security that the reading they are providing for transaction is safe and give not be utilise in prox day. This matter can be resolved by getting some online security verification certificates and putting them on the website.Other online marketing concerns may be the annoying banner ads on the websites where you are advertising, viral marketing, too much information about the harvest- home on the main page which is not necessarily needful by every customer, product hunt problems on the website. On the other hand before launching digital market ing campaign we should be very clear about our customers that do they use internet oft and do they have proper training and skills to surf the internet easily.As far as Zara is bear on the main target market is stack who like means and keep themselves updated with latest trends in clothing, so this type of people use internet very frequently to keep them update and interact with the community online nearlyly(prenominal) of the time.2.1- Market SummaryBy keeping in view the up-to-the-minute market trends and situation analysis our plan is to launch an online marketing campaign. Europe, America, Australia and Asia are our main target markets and there is an increasing trend of use of interne in the countries of these continents.We can see the growth rate of internet use and its penetration in last ten social classs in distinguishable regions of the world. With the help of these figures we can easily understand the importance and reach of internet marketing.Most of the marke t shareholders are now using internet marketing strategy and increasing their market share by giving information about the new products and designs, product supportings and offering buying online facility, business policies related to environment and customers through e-marketing.There are 383 million users of internet in China only and we can target them without spending lots of silver on retails outlets all over China. Same is the case with Japan and India where we do not need to open stores in all the cities. We can open our stores in main cities and market our product through internet to other areas where we can find our customers and target them.This is the strategy adopted by almost of the successful businesses like Clark, they do not keep all the railway line on their out lets and promote their website by asking customers to use their website to see the respectable range of the products in diametric categories.2.2 SWOT AnalysisZARA has 1,608 stores (including 213 ZARA k ids stores) in 74 countries, with the companys international growth currently offsetting the economic downturn in the domestic Spanish market.ZARA has a very unvoiced brand visualize and the deem of outlets can be increased with the time and growth. Comparatively high product price is a weakness but we have chance to explore markets where we can find customers who want to buy high smell products. Entry of new competitors and non availability of sufficient raw sensible can be a affright in future.2.2.1- (S)trengthsZARA has a very healthy market Image due to choice, style and availability of products.Product/ target Image is also very high because of very high quality, tested products for children, women and men.Strong pecuniary position of ZARA is also our strength which ordain help us to invest adequately to get favorable results.Due to strong market position there is availability of finance from other financial institutions like banks.ZARA can benefit in saving the cos t from existent infrastructure of suppliers.Vast network and store on different main locations all over the UK, Europe and other regions of the World is also our strength.At this time we have availability of suppliers who can provide us call for raw material on good prices and we can build good relations with them for future when the competition will be higher.Online availability of our lavish catalogue is also our strength and customers can see, choose and make a final decision by just sitting home.2.2.2- (W)eaknessesHigh product price is a weakness but we can not compromise on quality and customer services.Due to no marketing strategy and planning the rate of getting market share is very low.proper(a) management and implementation of the new system can take time.2.2.3- (O)pportunities untried market search is the next feeling after capturing our existing market we can go to US and central Asian markets more deeply.to a greater extent innovation, amendd quality and value added products for our customers.Adoption of new technology will help us to lower the cost of our products.Research and development discussion section can be made more efficient and strong for product betterment and availability of the products.Improved and more foc employ customers service.Continuous training of the stave and labor for cost effective production.Strive to exceed the customers expectations through quality, innovation and customers services.Increase in promotional activities through online marketing to get maximum market share.Building relations and long term contracts with the suppliers will be beneficial for future buying.2.2.4- (T)hreatsEntry of new competitors is a brat for our product which can be avoided by building stronger product throw in the mind of customer.Unavailability of sufficient raw material because of high number of customers for raw material in the market.In the near future there will be high price of raw material due to increased demand.Availability of raw material in future is other threat and can be managed by involving maximum number of suppliers in the beginning with small touchstone orders to all the suppliers. Order quantity can be increased in future as per demand. impoverished buying power of the customers in existing markets is also a threat and can be managed by searching new markets.2.3- CompetitionAt this stage if we compare the top high street stores in the UK, most of them, i.e. John Lewis, impertinent emotional state, Debenhams, MS, next, Bhs, HM, asos, peacocks and topshop are the main stores which are focusing on online presence and are among the top list stores on search engines in bearing and clothing search results.Because Zara is not in putting any effort for online marketing, that is why we do not find it in search results.John Lewis The retailer has adopted Omniture SearchCenter to optimize paid search marketing. This cabal of products alterd John Lewis Direct to optimize customer preferences throu ghout the entire erudition to conversion cycle.John Lewis Direct is a compelling example of a traditional retailer making a success of its online strategy. Millions of customers visit the award-winning John Lewis web site each month and the site has bragging(a) consistently at above market rates since its inception in 2001. In 2008 online sales were up by 24% to 327m. young Look The famous and one of the favorite store of ladies for fashion clothing New Look has also understood and adopted the online marketing strategy by putting sponsored link on top search engines, using social websites for close contact with customers and launched their website in 2007. Since the eCommerce launch in December 2007, New Look website has progressd to exceed expectations with nearly one million thorough weekly visitors in March 2009. This is a threefold increase on the same time last class, with average order value go on to grow.The new web platform is giving customers increased access to the full product range and provides multi-channel capability, enabling customers to order in store for delivery at home.In March 2009 New Look acquired the www.newlook.com domain prenomen and is appraising the potential to utilise this with a mainland European transactional website. This will provide marketing synergies with their international store roll-out to strengthen the brand and offer to customers.Debenhams Debenhams is also promoting its website through search engine optimization, different blogs and social websites. Most popular websites are D Blog, Face Book, Twitter, Flicker and You Tube. Store is also boost Debenhams website visitors to visit these social websites and leave feed game.The Marketing Innovation separate (MIG) launched Debenhams Megaday iBrochure, in 2009, in conjunction with their September New Season Spectacular Sale. This tactical iBrochure mirrored the paper brochure that was available in store and was use to drive online sales and raise awareness.Marks and Spencer MS has pioneered online video with MS TV (marksandspencer.com/tv), a great example of v-commerce in practice, and proof decreed that compelling online video increases sales. Marks and Spencer is known for its innovative online approach, the retailer was piercing to find ways of growing its online business while retaining the customers already visit the site. In addition to enhancing the experience, the channel had to ultimately drive sales.MS TV is a collection of over 500 films divided into 12 channels. each(prenominal) channel focuses on a particular company theme or business vertical, be it womenswear, menswear, or home. To maintain brand consistency, the channels are managed by a central commissioning team consisting of staff from twain MS and Adjust Your Set. This team also plans future content and measures the consumer response. mesh topology levels are constantly measured and regular refinements are made in order to improve the quality of the editorial and th e rates of conversion. If viewers give the axe off before the end of video or certain links are not being riffed, then further transports are made. retention in view the above information Zara has a very large-mouthed market to capture and this is the best time to develop and implement the new marketing strategy to enhance the market share in near future.2.4- Product OfferingsZara offers an exclusive coordinated collection of stylish clothes, shoes and accessories for women. Collections for men, children and the home quickly followed. Zaras clothes are styled by the in-house design team to offer consistency of style, quality and value for money with a contemporary fashion edge.2.5- DistributionZara has a very strong network of retail stores in the UK, Europe, America, Asia, and Africa for the distribution of its products all over the World. Other than retail stores we have also introduced a fully functional website with our latest products, designs and offerings.The online store is also change successfully for the distribution of the products to the customers.3.0 Marketing Strategy3.1- ObjectivesChallenging but accomplishable objective has been set for next three years. Because of the overall condition of the economy which is not that good, result in the source year can be a bit slow.First-year Objective In the primary year we will maximize the awareness about the brand and availability of the product. We have already launched a page on facebook.com and more than 3,676,000 people like that page from all over the World. Website will be promoted through other major social networking websites, blogs, emails and in-store advertisement. Search engine optimization and entropy update process will be performed more efficiently to keep the website at the top in search results on different search engines. undertake online selling will also be introduced in prototypic year which will help to improve the growth rate. The growth rate will be increased from 6% o f 2009 to 10% at the end of first year.Second-year Objective In the second year we shall be doing well and will be on the first page of most popular search engines. In the second year more focus will be on introduction of innovative technology, make over and use of latest web technology to attract the visitors. The estimated growth rate in second year is expected to rise by 7% due to opening in new markets of Australia and Africa. Online selling will be offered to Australian customers in this year.Third-year Objective Third year, 2012 2013, will be a year of revival for world economy, hopefully and we shall capture the market by 25%. For Europe aggressive marketing strategy will be adopted to get maximum market share. Online selling will be launched in major Asian countries to facilitate our valuable customers and to maximize market share.3.2- Target MarketsTarget market of Zara is middle to high class men woman and children who like to update themselves with latest fashion and sty le and want higher quality clothing on reasonable prices. With the help of online marketing it will be easier for Zara to convey information about new designs and fashion to its target markets in different parts of the World within no time because Zaras target market consists of the people who use internet frequently and update themselves with latest fashion. Zaras women collection is divided into three categories Zara Women, Zara Basic and the flash Trafaluc representing market segments for women who look for a more formal style, younger women for a more informal style and younger women and teenagers while menswear included Mens spot at Zara, Zara Basics, its club-wear brand 100Zara and Zara Sport. In this sense the general public from all age groups can be seen as potential customers targeted by proper(postnominal) sub-brands of Zara. A second important variable in defining variance is based on psychographic characteristics such as lifestyle, as one of the most famous and succ essful European brands Zara in its existing market targeted people who were especially interested in European styles at affordable price levels.3.3- PositioningZara is a high fashion concept offering apparel, footwear and accessories for women, men and children, from newborns to adults aged 45. Zara stores offer a unique blend of fashion, quality and price offered in attractive stores in prime locations on prime(a) commercial streets and in main shopping centres. The in-house design and production capabilities enable us to offer fresh designs at out Zara stores twice a week throughout the year.3.4- Marketing Mix3.4.1- ProductZara has a tradition to launch its products in a short time of two weeks and full change in clothing item every month. The product is of very high quality and we will give a full guarantee of color, stitching, stuff, cloth quality and material used to our valuable customers. No metals shall be used for the product packing and recycled material will be used for packing of our products.3.4.2- PricingZara maintained its long standing practice of providing customers with deduction over determine. Zara has adopted a competitive pricing strategy to get hold of and retain customers. Competitive pricing is the most suitable for Zara because of its presence globally. This pricing strategy helps Zara to attract more customers on the high street fashion stores.3.4.3- DistributionZara has a very strong distribution setup which is very right-hand to make available the product all over the retail chain.In my point of view Zara should start its production locally instead of producing in Spain and then deliver the products to stores all over the World because this change in strategy will help to reduce the cost of production. We do not need to bring raw material from other countries to Spain first and send finished items gage to the same countries. By setting up local production houses we can also build good consanguinity with our suppliers, local community by offering jobs to local people, and our customers.3.4.4- Marketing communication theory processional activity at high street will continue aggressively and with in-store display, through online marketing and our website.For online marketing communication the first step is to update the website and its contents at the back of website like describe words, key phrases and mata tags so that the search engines can find our website quickly and easily whenever anyone search for items we are dealing with. An interactive website is most appropriate idea in the current marketing situation. With the help of cookies we will gather lots of data about our customers and their preferences. Email marketing will also help us to generate more profit by attracting more customers to our website.As it is discussed foregoing different social website pages like facebook, twitter, youtube, and flicker etc. are the main source of communication with customers these days. We will also communica te with our existing and potential customers by setting up different blogs and through our own website. paid advertisements on most popular search engines like google, bing, yahoo, aol etc. is another option so that we can come at the top of search results in very short time.3.5- Marketing ResearchThrough different marketing research techniques like web analysis and online feed back from our valuable customers we will keep upgrading our product and system and will probe and evaluate our existing strategy. Web analytical tools will also be helpful to get information about website visitors and their style of search and required products.Customers complaints and record of customer services department is also very helpful to improve the product and product delivery system.4.0 Financial MattersIn the first year by keeping the objective of 10% growth rate in view the projected sale for Zara in the first year is 11,750 million.Currently Zaras share in total group sale is 63.8% (2009). The total sale of the group in 2009 was 11,084 Million.Results for the Year Ended January 2009* Group revenues (in thousands of Euros) 11,083,514* Group operating profit EBITDA (in thousands of Euros) 2,374,189* Earnings per share (in Euro cents) 211.415 million is estimated set down for first year marketing including salaries of marketing staff. For online marketing, most of the work, like making profiles on different social websites, tagging, adding key words and meta tags on the back of website, can be done through qualified staff of the company who will be responsible for the updating and maintenance of the website. So, for that there is no need to pay extra money to any third party.To advertise through search engines we will pay a nominal make out per year to major search engines and they will promote our website.Pay per click is another option which is also offered by most of the websites where we advertise.5.0 Controls5.1- ImplementationZara as a market leader in fashion wear forever and a day focus on product quality and customer services. Our more than 92,000 staff members are always ready to improve the system and implement new strategies. With the help of internal and external controls the top management will be in a better position to evaluate the performance and stir the system accordingly.We are always in a process to improve our products and services and we are always open to hear from our customers.Zara already continues to improve customer service and with the introduction of new service of online shopping we are facilitating our customers to buy anytime with their convenience.5.2- Marketing organizationInternational MarketingDirectorGM Marketing for Rest of the CountriesGM Marketing Europe UKSr. coach-and-four MarketingManager AdvertisingAdvertising analystManager packagingPromotion AnalystManager SalesMarket Research AnalystManager AdvertisingAdvertising AnalystManager PromotionPromotion AnalystManager Sales