Professional Documents
Culture Documents
Details of Assessment
Term and Year Term 2, 2019 Time allowed 1 activity each week
Assessment No I Assessment Weighting 40%
Assessment Type WORKBOOK ACTIVITIES
Due Date Weeks 3, 4, 5 and 6 Room
Details of Subject
Qualification BSB52415 Diploma of Marketing and Communication
Subject Name Marketing Trends
Details of Student
Student Name Felipe Oyama
Details of Assessor
Assessor’s Name WILSON DEL ROSARIO
Assessment Outcome
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
Student Declaration: I declare that I have been Assessor Declaration: I declare that I have
assessed in this unit, and I have been advised of my conducted a fair, valid, reliable and flexible
result. I also am aware of my appeal rights and assessment with this student, and I have provided
reassessment procedure. appropriate feedback
The purpose of this assessment is to assess the student in the following Competent Not yet
learning outcomes: (C) Competent
(NYC)
BSBMKG501
1.1 Analyse information on market and business needs to identify marketing
opportunities
1.2 Research potential new markets and assess opportunities to enter, shape
or influence each market, and the likely contribution to the business
1.3 Explore entrepreneurial, innovative approaches and creative ideas for their
potential business application, and develop into potential marketing
opportunities
2.1 Identify and analyse opportunities in terms of their likely fit with
organisational goals and capabilities
2.2 Evaluate each opportunity to determine its impact on current business and
customer base
2.3 Use an assessment of external factors, costs, benefits, risks and
opportunities to determine the financial viability of each marketing opportunity
2.4 Determine probable return on investment and potential competitors
2.5 Describe and rank marketing opportunities on their viability, and likely
contribution to the business
BSBMKG507
1.1 Use statistical analysis of market data to interpret market trends and
developments
1.3 Use measures of central tendency or dispersion and correlations between
sets of data for quantitative interpretation of comparative market data
1.4 Perform qualitative analysis of comparative market information as a basis
for reviewing business performance
1.5 Analyse the market performance of existing and potential competitors and
their products or services to identify potential opportunities or threats
2.1 Analyse performance data from all areas of the business to determine
success of marketing activities
2.3 Forecast existing and emerging market needs based on information
available using forecasting techniques
Assessment/evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student
can only achieve competence when all assessment components listed under “Purpose of the assessment”
section are recorded as competent. Your trainer will give you feedback after the completion of each
assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment.
BACKGROUND INFORMATION
Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia. The company was
founded in 1975 by Amancio Ortega and Rosalia Mera. It is the main brand of the Inditex group, the
world’s largest apparel retailer. The formula for Zara is simple: latest catwalk trends reproduced, plus
new stock delivered to stores in fewer than 15 days, plus giggle-inducing prices.
INSTRUCTION TO LEARNERS
Learners must read the Zara Case Study available in eLearning to understand the business model
and company’s marketing strategies.
Learners are to complete this workbook which is composed of 4 activities. To answer the activities,
learners must apply to Zara the marketing concepts and principles that were discussed in class
lectures. This is an individual assessment.
The assessor is required to use the marking rubric below to assess the learner performance in each task as mentioned.
MARKS MARKS
TASK DETAILS
ALLOCATED RECEIVED
Workbook Activity 1
Workbook Activity 2
3. Impact of Opportunities 4
4. External Factors 2
5. Operating Costs 2
6. Business Risk 2
Workbook Activity 3
7. Current Competitors 2
9. Forecasting Technique 4
Workbook Activity 4
TOTAL 40
Workbook Activity 1
(10 marks)
Instructions: Write answers to the 2 questions of Activity 1. This activity is to be completed in class
and is due Week 3.
1. Provide and explain the possible growth strategies for Zara using the Ansoff Product Matrix.
Rank these marketing opportunities from 1 to 4, 1 being the most viable and most likely to
contribute to the business and 4 being the least viable and least likely to contribute to the
business. (8 marks)
1) Product Development: Thinking of Australians way of life and fashion, repaginating Zara concept
to try to get close to their customers down under might work as an interesting and rentable approach
but has to be planned carefully to not get similar to home brands that have lower prices.
2) Market Penetration: Keep selling the European style clothes to their existing customers.
Maintaining the style is also important to the brand identity
3) Market Development: Selling online to New Zealand and other close countries in Asia directly
from Australia. The shipment price will be lower than ordering from their main suppliers.
4) Diversification: Keep selling the European style clothes to their existing customers. Maintaining
the style is also important to the brand identity. Start selling bikinis or other types of beachwear is
bound to be a success in Australia.
2. What does Zara take into consideration when researching for a potential new market or opening
up a new store? List 2 and explain. (2 marks)
- The people’s reaction to the brand style and if they are going to go all into Zara’s fashion looks and
products.
- Depending on where the stores will be open, it has to be taken in consideration the way people in
that place dress up. Otherwise for Zara, it is not viable to open a store in the country/city.
Workbook Activity 2
(10 marks)
Instructions: Write answers to the 4 questions of Activity 2. This activity is to be completed in class
and is due Week 4.
2. Evaluate each of the growth strategies you answered on Question 1 and determine the impact
of each of these opportunities to Zara’s customers. (4 marks)
- PD: For the customers, being represented by a foreign company in their country is really
important to try to maintain their identity while wearing different pieces of clothing, pretty much
nothing often seen or manufactured in their own country.
- MP: The same way that the customers wants to be represented, the company needs to
introduce them to their own style and see how the client will adapt to it.
- MD: To have online sales and shipment to other countries that doesn’t has a Zara store in, is
important to create bonds with the customers overseas, not only in Australia.
- D: To come and create a new line of products based where the company is running their new
business, is fundamental to gather customers faster, since that method helps the company not
only to sell their own fashionable style but to transform it into swimwear for example and sell
to Australians whose hobbies includes going to the beach often.
3. Identify and explain 2 external factors that may affect Zara’s growth strategies.
(2 marks)
- Competitors: Consolidated brands in Australia like, H&M, GAP and Top Shop are already
aware of the customers needs and invest big money in market, which can be crucial for their
plan to keep on the top of the customers preferences.
- Suitable areas: In order to have success in Australia or any other country, Zara’s perception
to the region they are willing to open a new store needs to be accurate with no mistakes. It is
a process that takes time, but is important if they want to obtain success with the market. If
the operation costs in that area are too high, is not worth it
- Spain based: Most of Zara’s operations like Manufacturing, Logistics and Product Design
are run in the company country of creation, Spain. Which makes the price of the products
increase considerably.
- Producing in small quantities: Zara is always renewing collections, making exclusive clothing
to attract clients to them, produce less and don’t recycle. Which keeps the company saving
costs.
- Australia fashion: What must to be done by Zara, is to adapt their clothing to the country they’re
settling in, Australia. The customers tastes for fashion here might be and is well likely to be far
different from European ones, which can be a disaster if the company doesn’t take any actions
straightaway.
- Their low investment in marketing might be risky whenever comes to opening new stores in
new countries. In the case of Australia, their competitors already invests a lot of money on marketing,
which can compromise Zara’s success here.
Workbook Activity 3
(10 marks)
Instructions: Write answers to the 4 questions of Activity 3. This activity is to be completed in class
and is due Week 5.
6. Research two current and/or potential competitors of Zara in the Australian market. Briefly
describe these companies. (2 marks)
- H&M: The Swedish company is the second largest global clothing retailer, just behind Inditex, which
is a parent company of Zara. H&M and its associated companies operate in 62 countries with over
4,500 stores, and has a strong online presence. Their clothes are for men, women, kids and
teenagers and is bound to be one of the strongest competitors of Zara.
- Forever 21: The North American fast fashion retailer has over 700 stores in the Americas, Asia,
Middle East, United Kingdom and Oceania. Their strongest point is that they sell apart from clothes,
also accessories, beauty products and homes goods with a lower price compared to their competitors.
Is by far a threat to Zara by the pricing and range of products being offered by them.
7. In 2017, Zara’s fixed costs in Westfield Sydney Central Plaza amount to $80,000* and
variable costs per unit sold is $10*. Selling price per unit is $50*. How many units must be
sold for Zara to break even? (1 mark)
*Figures are fictitious and for assessment purposes only.
1,600 units.
8. Below is a table of Zara’s yearly sales. Use 2 period and 3 period moving average forecasting
technique to forecast 2017 sales. Also, compute for mean absolute difference. Show your
solution. (4 marks)
2012* 222
9. Using the table of Zara’s yearly sales on Question 9, identify the following measures of central
tendency:
Workbook Activity 4
(10 marks)
Instructions: Write answers to the 3 questions of Activity 4. This activity has a remote observation
requirement that has to be done outside class time. This activity is due Week 6.
10. Visit your favourite clothing retail shop and visit Zara’s retail store in Westfield Sydney Central
Plaza, Pitt St. Perform a qualitative analysis on the business aspects provided on table below.
Describe each aspect and identify which retail shop did better. (6 marks)
11. From your qualitative analysis on Question 11, identify and explain 2 potential opportunities
for Zara. (2 marks)
- Having not only one competitor inside the plaza, Zara should start to have winter promotions
to attract clients. Buy one, get two in some specific pieces of clothing, 20% off… Anything to ring the
customers bells.
- Try to invest more in marketing, despite what Zara’s owner says, brands don’t sell their
name by themselves nowadays. A good and well placed marketing strategy can aggregate a lot for
the company.
12. From your qualitative analysis on Question 11, identify and explain 2 potential threats for
Zara. (2 marks)
- The retail location inside the Westfield Plaza is a little bit hidden, giving the opportunity to
wandering customers to buy in the closest retail that they see. The change of location in the plaza
would be considerable.
- The price of Zara doesn’t keep up with the low economic power customers, which can lead
them to other stores like Cotton On and Forever 21.