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Marketing And Communications Environment Assignment Sample

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Marketing And Communications Environment Assignment Sample


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Slide 1: Assessment of current performance

  • Zara is one of the famous fashion retailers in the present market, established in 1975 in Spain.
  • Zara is a “brand from the Inditex Group” which is now operating in 96 countries worldwide with a brand value of £12.27 billion (forbes.com, 2022).
  • Net sales from the e-commerce sites of Zara accounted for “£5.4 billion in 2021” (fashiondiscounts.uk, 2022).
  • In the fashion market H&M (“Hennes & Mauritz”) is Zara’s biggest competitor.

Zara is the successor in the fashion retail market by including different sections that offer fashion products for one in a single store. Zara is operating in the fashion market with about 3,000 stores worldwide. Low costing in the production and supply chain (SC) units is the reasons behind the success story of the Inditex Group. People are choosing Zara as a brand due to the excellent quality of service and products they offered. Zara is targeting young people and consumers who are conscious of price.

Slide 2: Key findings of PESTLE analysis

  • Zara is getting “extensive trade agreements” to operate its business in the EU market and connect the world.
  • Brexit made an impact on Zara as increased production costs and developed as an established e-commerce site via SC (Robertson, 2021).
  • The economic growth of the UK has turned negative in 2020 and the “economic freedom score is 72.7” in the index of 2022 (heritage.org, 2022).

The business freedom index in the UK is higher and it's making the competition a regulator. Eco-friendly fashion commits make Zara a more consumer choice. Social is one of the most common factors in the development of a business. The cultural influence on buying decisions in different sessions results in Zara’s sales growth. The technical aspects of the business have played a huge role in the business of Zara through the implementation of data analysis. The Inditex group has implemented programs for better employee management and it is make follow of the legal compliance.

Slide 3: Evaluation of brand against direct competitors

  • Zara is processing with a better discounting rate than “H&M, UNIQLO, and Gap”.
  • H&M has the oldest market across the globe in fashion retail.
  • In terms of sales revenue, Zara ranks at the top and “UNIQLO, H&M, and Gap” has recorded the next positions respectively (statista.com, 2022).
  • Based on the aspect of “Collection of Style” Zara is the present market leader.

In the fashion market, H&M has better partners associated than Zara and UNIQLO. However, in the aspect of physical evidence, Zara is the market leader. Based on the pricing aspect, Zara gets the most competitive advantage. According to the aspects of the 8P’s framework, with an online presence around the globe and offering reasonable products, Zara is processing better than its competitors like “H&M, and UNIQLO”. In the market origin in the UK region, the aspect of people and process is associated better with H&M than Zara and others.

Slide 4: Illustration of competitive analysis

  • Price and quality both are the two prime aspects of perceptual mapping and it presents in the development of “consumers' view of the market”.
  • Zara is holding “1,801 suppliers and 7,799 factories” worldwide (Jiang, 2022).
  • Currently, Zara is offering more reasonable products with a better consumer targeting approach rather than “UNIQLO and HRM”.
  • The competitive advantage of Zara is focused on the results of cheap labour costing.

The business development team of Zara is making a better approach to managing law in their business environment. During the period of “Covid-19 in the EU market”, Zara put more focus on the development of the SC management to make the items cheaper in the EU region. The fashion business of the UK is more saturated due to the potential availability of the new market share.

Slide 5: Evaluation of marketing communication campaigns

  • Comparatively, Zara is putting less focus on advertisement policies.
  • The key promotion aspects of Inditex Group are affordability, experience, differentiation, and service quality.
  • The costs of advertising for a Spanish company made up only 0.3% of the revenue whereas the other spends 3-4% (blog.avada.io, 2022).

Zara applied the “fast-fashion formula” in their marketing strategy to incorporate the values. In order to make a sustainable movement in the present competitive market, Zara applied the “social media promotion service” for the development of brand promotion rather than spending a lot on advertising. Zara doesn't include many campaigns for their marketing activities like H&M and UNIQLO. The location's uniqueness is one of the prime features of Zara’s marketing and competitive analysis.

Slide 6: Evaluation of best practice of chosen brand

  • The adoption of marketing communication is necessary to expand the fashion business in the foreign market (Martins et al. 2019).
  • Acquisition of local businesses that have better consumer approaches can be another option to optimise the supply chain and generate brand awareness (Williamson and Wan, 2018)
  • Celebrity endorsement and social media campaigns can be regarded as the best “marketing communication approach for the future”

The fashion retail market’s trend is creating hype through brand promotional events. Brands have a more optimised target to receive the advantage of organic traffic from the internet and social advertising. In addition to this, people are getting attached to social media more which replicates the advantages of the marketing benefits.

Slide 7: Evaluation of customer motivation

  • Brands those are able to influence the decision of consumers to buy clothes in different sessions.
  • Mobile advertising is one of the best available concepts to influence the consumer’s attachment to the brand (Nash, 2018).
  • The integration of celebrities from different areas with social media integration can influence the consumer’s buying habits (Chetioui et al. 2020).

Zara has more potential to create a fascination for clothes purchases in the foreign market and develop habits among the consumer by applying different strategies. Social platforms are reliable to make the identification of the influencers and making them included in the brand promotion can help in the development of sales. The fashion market is considerably easy to create a monopoly with offers and pricing in different sessions and festivals. With the developing technologies of the “Internet and Web 2.0”, a business can make changes in the environment in the “UK fashion industry”.

Slide 8: Customer journey map

  • The “customer journey map” represents a visual storyline against the buyer's engagement with branding and makes the process through the need and perception that is needed for the brands.
  • The procedure starts with setting the targets of selecting the consumers based on the available items.
  • Brands need to understand that digital users more than 61% of their shopping time with mobile devices (Martins et al. 2019).
  • The touch points are needed to be maximised to get the best return in the competitive market.

A “customer journey map” illustrates different findings that are relatable to the development of sales. Brands need to comprehend the personas of their consumers who have the best potential before implementing the targets. With an “increase in mobile traffic”, retailers can experience the need to focus on online shopping portal development. The recognition of the buyer's motivation can be one of the best examples for the brands to select the next stages. For every fashion retailer, selecting one season or occasion is the best time to make the journey map to enhance sales.

Slide 9: SWOT analysis

  • The developed network in the SC management is a key feature for Zara to supply the materials at low cost to the 202 nationwide outlets (inditex.com, 2022).
  • Zara is losing its capability to balance instant fashion’s sustainability in the present time.
  • Inditex works along with the collaboration of 1520 suppliers that is generating one of the biggest advantages of delivering the materials with enforcement (inditex.com, 2022).

Zara is in a reasonable standing to take benefit of upcoming transformations because of its ability to capitalise on the trends of fashion. Environment-friendly conduct is creating more opportunities for Zara to demand the development of sales. In addition to this, influential marketing can be regarded as the best potential for the development of the fashion market globally for Zara by encountering the promotion of lifestyle marketing. Competition from H&M is the biggest threat for Zara in “the UK fashion business”. The pandemic and “fast-fashion” are the threats that are occurred in Zara’s business multiple times.

Slide 10: Conclusion of the key problem

  • The fashion business is considered to be attached to the development of the advertisement and inclusion of influencers, whereas Zara stays behind.
  • Zara receives the indication of updated promotional strategies by witnessing the competition from H&M (Chunling, 2020).
  • The requirement of the application “acquisition policy in the UK” can be considered the best technique to generate more brand awareness’s.

Selection of the new locations can be regarded as the best policy to create awareness’s in business and the development can be witnessed with the attachment of the sales from the e-commerce sites. Brands that provide sufficient information with enough presentation for mobile-friendly sites can receive better recognition and marketing advantages. With the target of mobile users, brands can make better decisions in their communication strategies. With the help of social media influencers, Zara can take targeted marketing approach in its business that can help the company to improve its global productivity as well as profitability. This promotional strategy can also provide a competitive advantage to this company in the market.

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