Thamkhao

lOMoARcPSD|15735837
Marketing Plan of Zara - Your description is too short, please

give your document a clear description.
marketing management (Trường Đại học Tài chính - Marketing)
StuDocu is not sponsored or endorsed by any college or university

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)
lOMoARcPSD|15735837
THE MINISTRY OF FINANCE

THE UNIVERSITY OF FINANCE MARKETING
MARKETING DEPARTMENT
GROUP 5
CLASS: CLC_20DMA04
MARKETING MANAGEMENT
REPORT IN FASHION INDUSTRY

MARKETING PLAN FOR ZARA
Professor: Mrs Ngo Minh Trang

lOMoARcPSD|15735837
HO CHI MINH CITY- 2021
Page 1

lOMoARcPSD|15735837
THE MINISTRY OF FINANCE

THE UNIVERSITY OF FINANCE MARKETING
MARKETING DEPARTMENT
GROUP 4
CLASS: CLC_19DMA07
MARKETING MANAGEMENT
REPORT IN FASHION INDUSTRY MARKETING PLAN

FOR ZARA
Professor : NGO MINH TRANG
Captain: BUI THI BICH NGOC

Phone number: 0979.557.653
Email: ngocbtb.hcm@gmail.com
HO CHI MINH CITY- 2021

lOMoARcPSD|15735837
ASSIGNING TASKS TO TEAM MEMBERS
No Full name Student ID Activity %
1 BUI THI BICH NGOC 100%

2 VU LAN ANH 100%
3 NGUYEN DAC LE DUNG 100%
4 NGUYEN MAI KHANH 100%
5 MAI THI THU HUONG 100%

lOMoARcPSD|15735837
COMMENT OF THE PRACTICE GUILINES TRAINER

………………………………………………………………………………………….
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Professor
NGO MINH TRANG

lOMoARcPSD|15735837
Table of Content
1 Executive Summary 6
2 Situation Analysis 7
2.1 Market summary 7

2.1.1 Market Demographics 7
2.1.2 Market Needs 8
2.1.3 Market Trends 9
2.1.4 Market Growth 10
2.2 SWOT Analysis 11

2.2.1 Strengths 11
2.2.2 Weakness 11
2.2.3 Opportunities 12
2.2.4 Threats 12
2.3 Competition 12
2.4 Product Offering 13
2.5 Keys to success 14
2.6 Critical Issues 14
3 Marketing Strategy 15
3.1 Mission 15
3.2 Marketing Objectives 16
3.3 Financial Objectives 16
3.4 Segmentation: 16
3.5 Target Markets 17
3.6 Positioning 19
3.7 Strategies 19
3.7.1 Product 19
3.7.2 Place 21
Page 2

lOMoARcPSD|15735837
3.7.3 Pricing 22
3.7.4 Promotion 22
3.7.5 People and physical evidence 24
3.8 Marketing Mix: 25
4 Financials: 26
4.1 Break-Even Analysis 26
4.2 Sales Forecast: 27
4.3 Expense forecast 29
5 Controls 30
5.1 Implementation 30
5.2 Marketing Organization 33
5.3 Contingency Planning 33
Page 3

lOMoARcPSD|15735837
1. INTRODUCTION
 Website: zara.com/vn
 Facebook: facebook.com/ZaraVietNamOfficial
 Twitter: twitter.com/ZARA_Care
 Hotline: 028 44581117
 Operating date: 8/9/2016 ( Has been in operation 5 years)
 Status: Active
 Address:
 HO CHI MINH CITY :
Address: VINCOM CENTER, L1-2B & M06, 72 Lê Thánh Tôn, Bến
Nghé, Quận 1, Thành phố Hồ Chí Minh
Phone: +84 2838232951
 HA NOI:
Address: Trung tâm Vincom Bà Triệu, 191 Bà Triệu, Lê Đại Hành, Hai
Bà Trưng, Hà Nội.
Phone: +84 2462535024
 About us:
- Zara is a fashion and accessory brand owned by the Spanish conglomerate
Inditex.
- The combination of the latest fashion trends with high quality and
affordable prices has made the Zara brand accessible to everyone. Zara made
their debut in the Vietnamese market in 2016.
- Zara's unique business approach revolves around its customers, which
includes design, production, distribution and sales through an extensive retail
network.
 Zara's development and expansion:

lOMoARcPSD|15735837
- Zara began as a family business, formed in 1975 in the heart of Galicia,

northern Spain, by Amancio Ortega and Rosala Mera. Zara's first store, which
sells high-end, casual, and fashion apparel.
- Zara began a rapid global expansion throughout the next decade, with
stores opening in Portugal, New York (USA), Paris (France), Mexico, Greece,
Belgium, Sweden, Malta, Cyprus, Norway, and Israel. Zara stores can currently
be found in only a few wealthy countries.
- Zara currently has 2,251 stores strategically located in top cities across 96
countries
 Core values:
- Zara's key ideals may be summed up in four words: beauty, clarity,
function, and long-term sustainability.
2. MACRO-ENVIRONMENT ANALYSIS (PESTLE)
2.1 Political and Legal

Vietnam is currently a socialist country, with the Communist Party of
Vietnam as the sole Party leading the country. The Party and government have
promulgated many economic and political policies that closely follow the
socialist-oriented market economy model. With the goal of strong
international integration, Vietnam has joined and signed many free trade
agreements, and joined many worlds free trade organizations. This helps
products of foreign companies, typically ZARA, easily develop business
activities in the Vietnamese market. In addition, the Vietnamese Government
has also proposed many preferential policies for foreign businesses,
encouraging them to do business in Vietnam, opening great opportunities for
ZARA to approach and develop in the Vietnamese market. South with a
population of nearly 100 million.

lOMoARcPSD|15735837
2.2 Environment
Currently, the issue of the natural environment is concerned because the
level set by the boom of science and technology in advanced countries is
causing serious damage to the environment. So, in every market, different
industries will have rules or standards of environmental protection jointly
own the earth. For example, in the United States increased the import tax on
goods apparel and textiles or set limits for annual weight or quantity of
imports from countries with low and moderate incomes LMIC. At the end of
the life cycle of clothes, some LMIC have begun to adjust the import of used
clothing. Or many countries in Europe have strong policies to reduce taxes for
companies operating in the renewable sector. With its widespread presence
like ZARA also need to scrutinize the different elements to avoid unwanted
errors. From that needs the environmental analysis in many different aspects
to take into a new market or new product lines. Here are some environmental
factors ZARA need to know:
● Products are recycled: due to heavy environmental pollution,

organizations need an optimal solution to reuse products. Although recycling
can be expensive, it will be supported by the government and by customers
who love the product and are willing to spend more money.
● Waste management: if it is not possible to recycle the product into a

new product, there should be a process to treat the waste in the best way
before discharging it into the environment.
● Customer's attitude towards environmentally friendly products:

nowadays people tend to live green and care a lot about the environment, so
ZARA needs to change the criteria to give priority to the launch of eco-
friendly products. environmentally friendly.
● Natural resources are exhausted: ZARA needs to research alternative

sources of nature so that customers can have a good view of the brand, clearly
see the risk of exhaustion in the future if they don't act. show up now.

lOMoARcPSD|15735837
● Weather and climate conditions: each place will have different

weather, some places are stable but there are places that change quickly, to
promptly meet the needs of customers, ZARA modified its strategy.
appropriate business strategy. For example, the often-cold winter will attract
many customers to buy thick and warm clothes, but as the Earth is warming,
it has to react promptly to launch thinner products to match the weather.
● Political stability: this factor is also quite important because political

stability will help stabilize the business environment and predict trends for
market growth. With ZARA already present in many different countries,
stabilizing politics in each market will be very difficult, so businesses need to
do this well to help ZARA thrive everywhere.
2.3 Social
Sociocultural factors include value systems, beliefs, attitudes, and social
trends. This is an important factor not only for the operational side but also
for the marketing side. ZARA need to understand the general trends and
beliefs of consumers, and businesses need to design and research social
factors to successfully accomplish their goals. Because understanding the
beliefs and attitudes of the community plays a huge role in ZARA marketing,
businesses need to analyze social factors in the macro- environment:
● Demographics: the age and gender study of customers greatly affects a

certain product, so it should be clearly marketed. Besides, the trend of
migrants also makes it difficult for international business organizations such
as ZARA. Therefore, for this group of customers, it is necessary to come up
with an appropriate business and marketing strategy so as not to affect the
migrant group. Demographic research helps to select the right customer
segments with high potential to bring high revenue
to ZARA.
● Equality caste and gender: from the market gap in income should offer
suitable products for each different class and marketing strategies suitable for

lOMoARcPSD|15735837
them can receive and look at ZARA select shopping. Catching the main
customers will give appropriate media strategy to promote to customers. For
example, makeup is mainly for women, so it is necessary to target a group of
women to promote it widely.
● Social standards: ZARA is present in many different countries around

the world, so there will be many different standards and values, so it is
necessary to research in each country to have an appropriate policy. The study
of social standards will take a long time to find a standard, but this will bring
great results to ZARA later.
● Online shopping: nowadays, along with modern technology, people

also often choose to buy online, but it is still mainly a group of young
customers, so advertising on social networks will quickly attract customers.
Most customers come to ZARA.
● Spending behavior: the study of consumer buying behavior helps

businesses forecast purchasing power and develop products based on
economic indicators related to customers' preferences and spending patterns.
2.4. Technological
With the strong development of today's digital technology platforms, it is
required that all businesses of all industries have appropriate adaptation
strategies. Catching that trend, ZARA has launched advanced technologies,
helping to improve efficiency from production to supply chain management,
thereby improving the quality of products and services before reaching
consumers consumption ZARA outstanding technologies include:
● Classification planning system and PLM:
ZARA uses a web-based product planning, sorting, and management

system for the entire supply chain, providing product visibility over time
while minimizing the supply needed to make a product. Is that. This ZARA
helps leaders make decisions without any excess supply, the maximum budget

lOMoARcPSD|15735837
savings while helping the system of ZARA production run smoothly and
more flexibly.
● Distribution and Implementation:
ZARA Fulfillment centers use automated packaging technology, making

the packing process faster and reducing wait times for ZARA customers. In
addition, ZARA also uses Cubiscan technology to reduce excess space on
packages, reduce capacity, help shipments receive more orders, thereby
reducing emissions during package transportation.
2.5 Economic
Economic factors such as inflation rate, exchange rate, interest rate,
gross domestic product... are all factors related to a country's economy. These
factors affect the business environment ingeneral or related to the profitability
of a company, it evaluates business activities profit or loss. Here are the
economic factors that ZARA need to consider making an informed business
decision:
Economic structure: ZARA operates under the influence of the

prevailing economic structure. The economic and regulatory environment in a
monopoly or authoritarian structure will be different from that of
monopolistic and perfect competition.
Business cycle: in each country, there will be different growth rates,

leading to differences in economic development. So business performance is
also affected by how much each country's government spends on core
infrastructure. With mature industries, it will be more difficult for businesses
because at this time the market is in a more saturated stage than industries that
are in the growth stage. Therefore, when setting up a store in a certain
country, the well-invested infrastructure will facilitate the business of ZARA.
GDP growth rate: this is the factor that helps determine the ability of
consumers to spend on shopping at ZARA. In a country with a high GDP,
customers will spend more on the company's products.

lOMoARcPSD|15735837
Interest rates: when rising will make the level of borrowing and
investment of individuals increase, leading to higher rates.
Unemployment rate: this is a signal of low consumer income, which

means lower spending reduces ZARA revenue.
Exchange rate: this factor will affect the profits and international trade of
businesses, especially when the domestic currency fluctuates, which will limit
investment activities.
Effective financial markets: the campaign to expand globally as ZARA

factors will help improve the liquidity position and increase the possibilities
of entering new markets. This will help increase efficiency in mobilizing
ZARA capital partners.
3. MICRO - ENVIRONMENT FACTORS:
3.1 Marketing Environment:

 Internal environment:
Enterprise
 Advantage
Choosing for themselves a potential customer segment from 16-45 years

old), Zara has completely dominated and conquered its customer segment
when meeting the constantly changing fashion needs.
- Build a strong brand community:
Zara understands the importance of a strong brand community and takes

advantage of tools like social media to encourage customers to participate,
interact and share their brand.
With a following of more than 50 million people on Instagram,

Facebook, Pinterest, Twitter, and Snapchat, Zara is no stranger to online
engagement. They use each of these channels to facilitate two-way
communication, helping them build an emotional bond even from behind a
screen

lOMoARcPSD|15735837
Zara not only builds relationships by maintaining an accessible and easy-

to-contact online voice, they also help customers engage with their
community in a worthy way. By using hashtags like #zaraman, #zarawomen,
#zarasrpls, #zarakids or #zarastudio
 Disadvantages
- Limitation
Vietnam is a developing country, integrating with world trends, so the

garment market in Vietnam is fiercely competitive in terms of product sales as
well as market domination. On the other hand, people always tend to buy
foreign products in consumption, which has facilitated a series of foreign
fashion brands such as Topshop, H&M, Mango, Pull&Bear, Massimo Dutti...
and soon Uniqlo and Forever21 entered Vietnam, then cheap fashion from
China and Thailand "landed", many people are concerned that Vietnamese
fashion is difficult to develop.
 Competitors:
Brand name Urban Outfitters H&M Uniqlo

/Comparative
characteristics
Price ~400,000 VND- 249,000 VND- 249,000VND -3,499,000VND

21,000,000 VND 8,000,000VND
Clothing style -Dynamic -Offices -UNIQLO:
-Sport -Everyday Simple, everyday things for
-Everyday -Sport everyone
-Keeping up with the -Follow fashion -UT:
trends and tastes of trends,constantly The collections associated

young people updated with other brands, designerS

lOMoARcPSD|15735837
-Combined with famous - Seasonal collections:

designers to produce Collection+J, uu/ Uniqo
limited collections, bold
- Office
fashion but still retain
practical applicability. - Everyday
-Variety of styles - Sport
-Classic minimalism
Targeted Millennials (18- 30 15-40 years old Pay Millennials (18- 30 years
customer years old) special attention to the old) Pay special attention to
female segment the male segment
Brand -Range:14 countries -Range: 74 countries -Range: 23 countries

awareness -Ranked 12th in the top -Ranked 22nd in the top 75
75 retail brands retail brands globally
globally
Product quality Well Good Well Developing typical

fabrics in Japan such as
HEATTECH, AIRism,etc.
 H&M
H&M is one of the largest, most widely recognized companies in

clothing retail. Founded in 1947, H&M devotes all its efforts to developing
genuine, durable women's clothing. Erling Persson, the founder, initially
named his business Hennes, then changed it to Hennes & Mauritz after his
partner, eventually shortening it to H&M.
Industry - Retail Fashion
H&M is known for its fast-fashion clothing for men, women, teens, and
children. It

lOMoARcPSD|15735837
penetrates almost every area of human clothing, with more obvious

growth potential. Today, H&M has more than 5000 locations around the
world. In addition, the business has more than 120,000 employees and will
continue to expand in the future
 UNIQLO
Uniqlo is a Japanese company that is currently one of the leading

clothing manufacturers in the world. Its first store was established in 1949
in Ube, Yamaguchi (Japan).
Industry - Fast fashion
Initially starting out as a clothing retailer, Uniqlo later jumped into the
fast-fashion group. Holding a leading position in the Japanese haute
couture sector, it also deals in trendy apparel items from the parts of the
world where it is present.
Uniqlo's revenue is in the $200 million range, probably not much

compared to ZARA's $13 billion. But Uniqlo mainly operates in Asia
 External environment: PESTLE
 Political and Legal:
Goverment Intervention: Vietnam is currently a socialist country, with

the Communist Party of Vietnam as the sole Party leading the country. The
Party and government have promulgated many economic and political
policies that closely follow the socialist-oriented market economy model.
With the goal of strong international integration, Vietnam has joined and
signed many free trade agreements, and joined many worlds free trade
organizations. This helps products of foreign companies, typically Zara,
easily develop business activities in the Vietnamese market. In addition, the
Vietnamese Government has also proposed many preferential policies for
foreign businesses, encouraging them to do business in Vietnam, opening

lOMoARcPSD|15735837
great opportunities for Zara to approach and develop in the Vietnamese

market. South with a population of nearly 100 million.
 Economic:
GDP growth rate: this is the factor that helps determine the ability of
consumers to spend on shopping at Zara. In a country with a high GDP,
customers will spend more on the company's products.
GDP reached USD 2,700 in 2019. Due to extensive economic

integration, Vietnam's economy was heavily affected by the COVID-19
pandemic, but also showed considerable resilience. GDP growth will reach
2.9% in 2020.
Interest rates: when rising will make the level of borrowing and
investment of individuals increase, leading to higher rates.
Unemployment rate: this is a signal of low consumer income, which

means lower spending reduces Zara' revenue.
Exchange rate: this factor will affect the profits and international
trade of businesses, especially when the domestic currency fluctuates, which
will limit investment activities.
Effective financial markets: the campaign to expand globally as Zara

factors will help improve the liquidity position and increase the possibilities
of entering new markets. This will help increase efficiency in mobilizing
Zara capital partners.
 Social:
Sociocultural factors include value systems, beliefs, attitudes, and

social trends. This is an important factor not only for the operational side
but also for the marketing side. Zara needs to understand the general
trends and beliefs of consumers, and businesses need to design and research
social factors to successfully accomplish their goals. Because understanding
the beliefs and attitudes of the community plays a huge role in Zara

lOMoARcPSD|15735837
marketing, businesses need to analyze social factors in the macro-

environment:
 Demographics: the age and gender study of customers greatly

affects a certain product, so it should be clearly marketed. Demographic
research helps to select the right customer segments with high potential to
bring high revenue to Zara
 Online shopping: nowadays, along with modern technology, people

also often choose to buy online, but it is still mainly a group of young
customers, so advertising on social networks will quickly attract
customers.
 Spending behavior: the study of consumer buying behavior helps

businesses forecast purchasing power and develop products based on
economic indicators related to customers' preferences and spending
patterns.
 Technology:
Launching apps: Zara uses technology to help manage its overseas

stores as well as the sales website where Zara's buying and selling activities
take place.
 Environmental:
Vietnam require quick fashion change: The weather in Vietnam is very

different and almost does not follow certain rules like in countries in
Europe. Therefore, fashion trends change constantly, forcing Zara to always
adapt to meet the needs.
3.2. SWOT ANALYSIS OF ZARA
3.2.1 Strengths:
Pioneer Advantage: Fast-fashion focuses on designing, producing, and

selling clothes as soon as they identify a trend. In traditional fashion, the
process takes months; Zara does this in 3 weeks. As pioneers, Zara has the

lOMoARcPSD|15735837
most evolved strategy and management practices in running the supply

chain.
Stores: Zara is selling in 202 markets and has stores in 96 of them.

Totaling 2249 stores, Zara has the most number of fashion retail stores in
the world. The number is almost twice the number of retail stores than Nike
has, which has the second-highest number of retail stores.
Supply Chain: Zara refreshes its online and retail collection two times
a week. Zara’s 10 logistic centers deliver to any location in the world within
48 hours. Inditex also has an in-house team who design software to double
the speed at which the company dispatches orders.
Design Team: Inditex has a team of 700 trained designers who

transform the customer’s desires to designs. The team of designers outputs
50,000 creatives a year. And, it takes them just 3 weeks to get the designs
from the drawing board to the stores.
Switch to Online: Inditex is investing $3 billion in bolstering its online

sales. The investment focuses on developing an engaging online buying
experience and integrating existing physical infrastructure. The company
aims to generate a quarter of its revenue through online sales by 2022.
3.2.2 Weakness
Fast-Fashion: Interestingly, the trend that helped propel Zara to the

top is the cause of its most pressing weakness. With the focus on
sustainability increasing among customers and policymakers Zara’s
weakness is balancing sustainability with fast-fashion.
Reliance on Physical Stores: The pandemic accelerated Zara’s plans to

limit the number of physical stores. Online sales helped Zara climb out of a
massive drop in sales because of COVID-19-related causes. However, even
with online sales picking up, the sales are only at 89% of what it was in
2019.

lOMoARcPSD|15735837
Expansion to US and Asia-Pacific: Zara has 99 stores in the US. This

accounts for only 4.4% of Zara’s 2249 stores. However, the US is the biggest
apparel market in the world. And the Asia-Pacific accounts for 38% of the
apparel market share. Zara’s presence in both geographies is weak.
Ethical Work Practices: Inditex works with 1520 suppliers across 7108
factories. Although Inditex deserves credit for creating a rigorous code of
conduct, a large gap exists in enforcing the code. An issue, as reported by
Buzzfeed, regarding the treatment of workers in Myanmar points to this
gap.
AI-Enabled Prediction: Currently, Inditex is working with AI and Big

Data companies to create an AI-enabled system that predicts consumer
behavior. However, the current system is still in its testing stage. When such
a system goes online, Zara will have the unrivaled capability in predicting
and fulfilling customer’s needs.
3.2.3. Opportunities:
Rapid Delivery Cycle: Customers visit Zara’s shops on an average of 17

times a year. This is because Zara responds to trends as soon as they
emerge. Right now, Zara delivers a trend from start to finish in just 2 to 3
weeks. However, in the future, Zara could shorten the cycles even more.
Personalization: Collecting data and segmenting the customer base

after analyzing the data is becoming easier than ever before thanks to AI.
This allows for providing personalized suggestions to customers. Zara
should capitalize on this technology.
Eco-Friendliness: According to the Sourcing General, more than 1/3rd

of Millennials and Gen Z look for “sustainable” and “environment friendly”
labels on clothes. Together, the two groups account for 50% of the
population. So, Zara must listen and respond to this growing need.

lOMoARcPSD|15735837
Resale: The re-sale market, currently valued at $28 billion today, is

predicted to grow to $64 billion in 5 years. Integrating a resale strategy to
their current platform would allow customers to purchase more with less
wastage. This encourages consumerism while supporting sustainability.
Influencer Marketing: Unbox Social says influencer marketing is the

most effective strategy for promoting lifestyle brands. Zara’s success with
the #DearSouthAfrica campaign involving 60 micro-influencers engaged 8
million people. This should be a model for the future.
3.2.4. Threats
Competition: China’s fast-fashion giant- Shein, is the world’s biggest

fashion retailer with a purely online presence. During September, the Shein
app saw 10.3 million downloads. Zara, with only 2 million downloads in the
same period, must watch out for its rivals in the digital arena.
Price War: Fast-fashion, Zara’s primary niche, brings the latest trends
from the ramp to the customers quickly and at low costs. However, the
industry is vulnerable to imitators waging price wars to leech off from
Zara’s line.
COVID-19: In the first quarter of 2020, Inditex reported a 44% drop in

sales. Inditex’s report states the closure of 88% of its stores because of the
Coronavirus lead as the central reason for the drop in sales.
Government Regulations: Inditex has 13 factories in Spain. Due to the

Spanish government’s lockdown measures, only 3 of the 13 factories
operated in the early months of the pandemic. With Europe heading
towards a second wave, the company can expect similar measures.
Sustainability: The use-and-throw attitude people had towards fashion

is changing. People are conscious of the impact of fashion on the
environment and people. Thus, Zara would have to push towards making
fast-fashion a sustainable business – economically and ecologically.

lOMoARcPSD|15735837
3. STP
3.1 Segmentation
Market segmentation is an important step for businesses to bring their

products closer to consumers. The needs of customers in the market are
extremely diverse, and a business to meet all of those needs of the audience
is nearly impossible. Therefore, to achieve high business efficiency, it is
necessary to identify the specific segment where the business will achieve
the satisfaction of customer needs and bring the highest profits to come up
with appropriate and effective marketing strategies.
Here is the ZARA market segmentation table:
Segment by Demographics Segmentation by practicality and

benefit
- Highly educated people - The outfit to dress politely all day
- People who have a professional in - Price must go hand in hand with quality
fashion - There is no strict dress code requirement
- Employee, office to wear on different occasions
- Generation Z
- Gender Male, Female, and children
- Group of people with middle-income
Segmentation by psychology/behavior Segment by Geography
- Shopping is a common social activity - Exploit major cities to capture more
- Have brand awareness fashion-oriented target customers
- Image of urban people - Designing costumes suitable for different

countries and regions
- Requires clothes to be convenient, smart

lOMoARcPSD|15735837
but also trendy
- Using and being dependent on

technology
- Have a keen analytical mind
3.2 Targeting
From the very beginning, ZARA had a clear orientation instead of

targeting general customers, the following is a list of the brand's target
audience.
 Age group: 16 - 45 years old
 Gender: male, female and gay
 Education: High school or higher
 Lifestyle: fast fashion - smart, convenient, urban look
 Social class: Middle and upper class
 Socio-economic composition: Middle - high income
Hobbies: Likes fashion trends, loves traveling, the internet, and reading
books and magazines
Build a wardrobe: Convenience, casual, casual clothes ZARA focuses on

the upper-middle-income group, using fast fashion - beautiful, but at an
affordable price. Besides, they are also people who like a community but
still have their own color of personal ego. Customers are at a young age,
from 16-45 years old, this is the age of experimentation, consumption, and
high demand for expressing themselves in front of the crowd, especially in
fashion.
Consumers in this age group are mainly young people, students, people
still in school or just working. They tend to like to express themselves, want

lOMoARcPSD|15735837
to prove to everyone that they are grown, talented and unaffected by other
people's thoughts, like to show their ego. ZARA chooses such interesting
personality segments by creating fashion lines that match that personality.
3.3 Positioning
ZARA's fashion products are a smooth combination of mass and high-

end products, but tend to favor mass products. ZARA produces clothes and
accessories according to the latest trends. It produces large quantities, thus
ultimately yielding a relatively low selling price. Their collection includes all
kinds of on-demand clothing that have rocked the fashion and
entertainment sectors. It ranks with competitors like GAP, Hollister, H&M ;
However, ZARA has forged its own path in maintaining and developing its
uniqueness,
Fast fashion identity catches the trend. Inspired by fashion in the

country where ZARA is located
 Marketing Objectives
-Maintain strong, positive sales growth each quarter.
-Satisfy the needs and increase customer satisfaction.
-Building customer loyalty to Zara
-Create a strong attraction in the media campaign.

lOMoARcPSD|15735837
-Aiming at the convenience of customers when they can order through the
app or buy directly at the counter.
-Increasing brand awareness: When customers come to Zara, they will

remember the product not only with quality but also with beautiful and
diverse designs
 Financial Objectives
-Increase the minimum rate of return by 10% for each quarter.
-Increase sales to ensure that there are enough conditions to develop

more new product lines.
-Reach profitability within this year.
4. MARKETING STRATEGY FOR THE PAST 12 MONTHS
4.1 Product
Zara is known ass the "Coca Cola" of the fashion industry, or "instant
fashion," because the brand consistently creates a slew of fads and hits in
the industry. Zara's products' greatest strength is their ability to quickly
adjust to customer wants.
Zara has always had a product strategy of creating more products

than its competitors. Zara introduces more than 10,000 new models to the
market on 2020, compared to 2,000–4,000 for typical fashion firms. Zara's
strategy helps it attract a large number of customers since it responds
quickly to shifting trends and needs in the fashion sector.
Zara's products over the years have ensured the following standards:
+ Health
+ Safety
+ Sustainability
+ Environmental protection

lOMoARcPSD|15735837
Zara always updates new products with a frequency of every 2 weeks

to meet the needs of consumers in a timely manner.
Zara's products focus on women's fashion (65%). Apart from that,

Zara also invests in men's and children's fashion.
New fashions usually appear in stores in two to four weeks, after which
they are tracked to see how far the designs have progressed. As a result, a
low-performing product is quickly withdrawn from stores and replaced
with a new design.
4.2 Place
Sell its products through 2 marketing channels. The first is where it is

sold directly to customers through an online website. The second is a place
to sell to wholesalers, who then sell it to different retailers across the
country. (Zara is both a supplier and a retailer).
Products are available at over 500 retailers nationwide. Zara follows

an intensive marketing strategy that tries to get its products to as many
retailers as possible. This ensures that the company's products can easily
reach customers in different regions.

lOMoARcPSD|15735837
There is a significant amount of online sales with regular traffic on the

websites. To run its online operations, Zara has partnered with multiple
delivery service providers to provide timely deliveries.
It follows an omnichannel distribution system that integrates online

and offline stores to allow customers easy access to products.
There is a network of more than 500 suppliers providing the raw

materials needed for production. It has developed a close working
relationship with its suppliers, allowing the company to work with them to
innovate and introduce new, compelling features across products.
4.3 Price
Zara's pricing strategy focuses on the average shopper who wants the
latest fashion at affordable prices. Its products are priced to cater to price-
sensitive consumers who want the latest in fashion but not at high prices.
The affordable pricing strategy has helped Zara address the needs of a very
large consumer segment.
However, Zara still values its products as that of a high-end brand.

Some Zara stores can have quite high prices while others will be affordable.
The pricing is done by optimizing training and development costs.
Affordable price
+ Zara has researched and offered the most reasonable price possible
for each type of consumer.
+ Owning "popular" shops, suitable for middle-income people who still

want to own trendy and quality outfits.
Low cost strategy
+ Reduce storage and transportation costs
+ Reduce financial costs to be able to pay orders slowly, avoiding

capital backlog

lOMoARcPSD|15735837
+ Minimize communication and marketing costs by only focusing on

advertising at the point of sale.
Zara's discount strategy is also quite modest compared to other

brands. The sale is only held twice a year, in June and December.The
discount is from 15 to 20%
Zara has many attractive special promotions such as discounts, gift

giving, gift giving, gift vouchers,... applied on Tet holidays or special
occasions of the year.
4.4 Promotion
Zara is a business with no advertising budget. Instead, Zara spends

money on buying premises next to famous brands to become "a luxury item
but at a reasonable price". Zara's main form of promotion is "word-of-
mouth marketing".
Switch to online sales; invest in e-commerce platforms:
+ In 2020, Zara made the transition to online sales in order to adapt

to global situations such as the COVID-19 pandemic and to make its
products more accessible to customers. This way allows Zara connect with
amount of consumers cross the world at very fast speed and when they
launch a collection customers in the world can buy them easily.
+ According to the annual report, Inditex has spent a huge amount of

3 billion USD to promote its online sales.
+ Zara's goal is for online sales to reach one-quarter of total revenue

by 2022.
+ As a result, the number of online orders skyrocketed by 74%, which

boosted sales and gradually brought all Zara stores back to normal
operations after the pandemic.
Although it does not spend money on advertising, Zara focuses on

every small detail in the way products are displayed in stores.

lOMoARcPSD|15735837
Zara products will not be produced in small quantities to keep

inventory rare, which forces customers to buy immediately when the
product is released and if they want to find one. Certain products will
return to the store more often.
Due of their huge monthly usage, it promotes on a variety of social

media channels, with a focus on YouTube, Facebook, and Twitter. On these
pages, it has over a hundred thousand likes or customers who are exposed
to frequent content uploaded by Zara.
Use a percentage of sales method to determine the promotions budget

for the year.
4.5 Process
Having a system to notify the retailers when the inventory is low: To

ensure that its items are constantly available in retail locations, the
company has installed systems that alert retailers when inventory levels are
low. provides them with more products while placing orders for new
productions to replace its supply. Customers will always have access to
products when they need them.
Have an online delivery procedure: where orders are accepted in a

computer system and the appropriate product from inventory is dispatched
to the delivery service provider based on these orders.
Actively participate in market research: in order to better understand

customer wants. It also builds a better awareness of client demands by
collecting comments at the store, on its helpline, or on its social media
platforms.
4.6 People
Zara is always looking for candidates who are creative, flexible,

pioneering, passionate and enthusiastic about fashion. Since this is an
extremely dynamic global company, they do not adopt anything called

lOMoARcPSD|15735837
routine. Zara employees always have to learn, change, work as a team,

communicate well and above all know how to evaluate and analyze
everything they do.
Salespeople are trained in persuasion skills and show respect to

customers, taking into account their preferences.
Customer Service Department, who will be contacted by the customer

in case of any problem with the product. They are trained to respect
customers and do their best to solve problems. People who work with
suppliers to obtain raw materials.
People who work at retail stores assist customers on-site, by answering

any questions or helping them decide on the product that best suits their
needs.
To adapt to the COVID situation, Zara also invests in employee training

to enhance e-commerce technology and facilitate online sales.
5. MARKETING PLAN FOR THE FOLLOWING 12 MONTHS
5.1. Product
Add extra benefits when buying your product: warranty, delivery and
credit, after-sale service, helpline service,...
Should introduce new products in line with the latest trends in the
market. Zara must identify opportunities in the market and introduce new
products to capitalize on these opportunities.
Regularly test new products introduced in markets and test them

before fully commercializing these products.
Expanding its product portfolio, providing new product lines to meet

customers' needs:
+ In the context of Covid-19 in Vietnam is very stressful, causing a

number of customers to work from home, so Zara should add product items

lOMoARcPSD|15735837
with gentle cotton so that customers can wear them at home and go to
work ; more minimalist clothing models than before.
The product packaging should be improved to make it more

convenient to transport and use:
+ Its packaging must also be visually appealing to attract customers
+ The packaging must protect the environment
5.2. Place
ZARA mission is not only to create a store just for shopping, but also to
be a place where customers can really live and experience its fashion stores,
these features are covered by ZARA uniform construction for all large and
small stores. In addition, ZARA stores often appear on high-class streets,
making it easier for consumers to experience a variety of services, and at
the same time, ZARA also owns an online store, providing the company's
products to consumers in the fastest and most convenient way.
Suppliers and Distribution: ZARA buys merchandise from a variety of

local distributors. ZARA often has a team that will be sent around the world
to search for materials, as well as creative inspiration for its new products,
thereby setting requirements for importers to buy for them. By using this
strategy, ZARA can constantly update a variety of product designs, keeping
up with global fashion trends. ZARA also uses a “direct to customer” system,
which is a management process that enables ZARA to enhance its
distribution process. This significantly increases the efficiency of the
company's supply chain, since 2009 ZARA has traded with more than 6000
different suppliers large and small.
5.3. Price
Although the product price of ZARA is much higher than that of other
competitors such as GAP or H&M, it cannot be denied that ZARA always

lOMoARcPSD|15735837
maintains the uniformity and quality of products to support its pricing

strategy.
However, if compared with companies like ZARA and Topshop, ZARA

prices are quite similar to them and so ZARA prices show the standard and
specificity of their products, same as the competitor above, not a “one type
of Product” that can be seen in small shops.
This element of Marketing Strategy entails assessing the value of the

product to the target customer. ZARA pricing strategy will focus on setting
list prices, credit terms, payment periods, and discounts.
If ZARA decides to adopt a price penetration strategy, it will have to set

prices lower than its competitors. The company will be able to gain market
share based on discounted prices. However, management should be aware
of potential retaliation from competitors in the form of an unwanted price
war.
Choosing a skimming strategy will require clear communication of the

basis of differentiation and how such differentiation justifies additional
pricing. Customers today are not interested in knowing the 'price' but the
total costs associated with purchasing, consuming, and disposing of the
product.
• The current pricing strategy for setting the price is then a pricing
strategy based on competition. This is because competitor data can be
easily available since many competitors exist in the industry.

lOMoARcPSD|15735837
• It also considers the cost of setting prices for some products for
which information is not available on competitors, or is more expensive to
implement, • sells its products at a higher price than its competitors. This is
because it offers more features, and the high price makes up for these.
• It also now uses product-bundle pricing, where products are

bundled together and sold for less than the sum of the individual items.
• It also uses an optional product pricing strategy for certain

products, where it provides a price for the base product and separate prices
for the accessories that go with it.
• It charges a larger price for the products it sells online. This is

because delivery costs are already included in the price of the product.
• The price of the final product has been fixed. Channel members:
retailers and wholesalers, buy products at lower prices and earn through
their own profits
5.4. Promotion
 Advertising:
Choose Miss Universe Vietnam H-Hen Niê as the face of Zara brand
in Vietnam to increase brand awareness
Created an advertising campaign called “BE YOURSELF”. From time

immemorial, prejudice has always made people hide their true selves and
one of the things that makes people always have prejudices about others is
fashion. Because fashion shows your own style. Zara captures that and gives
the message that be yourself, wear what you like and love what you do, that
will help you become more confident in being yourself and let Zara help
you. you do it.
 Sale promotions:
Create more special promotions for customers:

lOMoARcPSD|15735837
+ Seasonal promotions: In the winter when customers buy products at

Zara, they will be given extra gloves and scarves; In the summer, customers
will be given a crop top with the Zara logo printed, in the fall, they will be
given a light brown tote bag, in the spring, a red envelope will be given and
the number of gifts will be based on the customer's payment limit.
+ There is an additional program "lucky red envelopes" on Tet holiday

for customers who have a payment limit of over 500,000 VND (depending
on the customer's choice, "lucky red envelopes" can be converted into
vouchers. 15% off your next purchase or 5% off and a free Zara logo tote
bag)
+ Customers when ordering products will receive 80% shipping fee

support from Zara during the Covid-19 pandemic
 Personal selling:
Organize launch meetings to introduce new products and exchange

and answer customers' questions about the product
 Direct marketing:
Start collecting data about your customers and start sending them
messages via email or SMS:
+ A thank you note after every customer buys
+ Happy birthday customers with 15% discount code when buying on

their birthday
+ Wishes on holidays and New Year: Christmas, Lunar New Year, ..
+ Send off season alerts to customers so they don't miss out
 Public relationships:
Sponsoring the program "Happy New Year": helping orphans have a

warm and happy Tet

lOMoARcPSD|15735837
Organizing sponsorship and charity activities: donating 30% of

revenue to the Vaccine fund, sponsoring clothes for F0 and orphaned
children because of Covid-19
Fashion sponsorship includes: clothes, accessories for programs such

as "Fashion and life", "Rap Viet", ...
5.5. Process
The Covid-19 epidemic is still stressful, causing the problem of Zara's

product distribution process. Moreover, the Covid-19 epidemic has caused
Zara to temporarily close more than 1,200 stores in big cities such as Hanoi,
Ho Chi Minh. Therefore, Zara needs a few more measures to avoid risks in
the distribution process and offer solutions to make online shopping easier
for customers:
+ Zara should adopt such technology to handle its various processes to

increase efficiency and timely delivery to customers. In particular, Zara
should use an RFID chip because it can help track where the item is,
allowing for quick order processing whether sold in store or taken from a
warehouse.
+ Zara should use Smart Fashion software to help customers easily

choose products. Smart Fashion allows users to try on clothes right on the
app by choosing an existing model or uploading their own pictures and
trying on all Zara products before making a shopping decision.
+ Zara should be testing an app that will notify shoppers of custom-

sized clothing that's available in the store, even pointing out the exact
location of the item in that store.
5.6. People
Has people working under its sales team that play a vital role in its
marketing efforts. These people have been trained in persuasive techniques,
but also to show respect to the business customers taking into

lOMoARcPSD|15735837
consideration their preferences. has people working in its customer service

department. These are contacted by customers in case of any issues within
the product, and these people guide customers through the process of
getting the issues resolved. These people are trained to respect the
customers and try their best to get their issues resolved. has people working
with suppliers to obtain raw materials. These people play a vital role in
maintaining or improving the quality of the final product produced. has
people working at retail stores who help the customer on site, by answering
any questions or helping them decide the product that best suits their
needs.
Recommended People Strategy should undergo trainings for its sales

force, customer services and purchasing people as these play a vital role in
delivering value to the customers. should provide incentives to its sales
force through bonuses for meeting targets, or through commissions for the
sales made.should hire people that show respect towards customers, and
are committed to the company.
6. Financials:
6.1. Organization expenses
2022
Numbe CATEGORY/MONTH
r JAN FEB MARCH APRIL MAY JUN JULY AUGUST SEP OCT NOV DEC
1 Logistic costs
1.1 Cost of taking photos 10 30 40 60 30 50
1.2 Cost of poster, 50 50 100 50

banner, backdrop,
flyers
1.3 Cost of recording new 50 40 50

UO/BST introduction
video
2 Cost of hiring KOLs,

Influencers to post
2.1 Posting fee 2.500
3 Guest expenses
3.1 Envelopes, stamps, 100 100

lOMoARcPSD|15735837
letters, address
labels
3.2 Invitation printing 100 100
4 Logistic costs
4.1 Design, decoration, 50 50

banner banner
4.2 fresh flower 50 50
4.3 Tea break costs 100 50
4.4 Cost of taking photos, 100 50 50

filming, interviewing
5 Equipment rental
costs
5.1 Sound and light 100 50

system
5.2 Stage rental costs 100 50
5.3 Table rental fee 100 50
6 MC . rental cost
6.1 MC Thanh Thanh 30 50

Huyen cost
7 Gift cost
7.1 Cost of extra gloves 1.000

and scarves
7.2 Cost of a light brown 1.00

tote bag 0
7.3 Cost of a crop top 1.200

with the Zara logo
printed
6.2 Expense forecast
6.2.1 Milestones:
PLAN
Milestones Time Budget Manager Departme

nt
Marketing plan Before 1/1/2022 0 VNĐ Mr.Rendy Marketing

lOMoARcPSD|15735837
completion
Advertising campaign 1/1/2022 - 17.000.090.000 Mr.Rendy Marketing

1 31/3/2022 VNĐ
Advertising campaign 1/4/2022 - 5.590.000.000 VNĐ Mr.Rendy Marketing

2 31/8/2022

3 31/10/2022 VNĐ

4 31/12/2022 VNĐ
6.2.2 Expense Budget in 2022:
TOTAL 2022
Advertising 3.780.000.000 VNĐ
Sales promotion 4.700.050.000 VNĐ
Direct marketing 150.000.000 VNĐ
Public relationship 40.150.010.000 VNĐ
Personal selling 1.110.030.000 VNĐ
TOTAL 49.890.090.000 VNĐ
6.3 OPERATION PROCESS
MONTH ACTIVITIES TIME COST MANAGER
January Organize launch meetings to 1/1/2022 - 1.000.030.00 Mr.Rendy

2022 - introduce new products 31/1/2022 0 VNĐ

lOMoARcPSD|15735837
March 2022 There is an additional 1/2/2022 - 1.000.050.00 Mr.Rendy

program "lucky red 28/2/2022 0 VNĐ
envelopes" on Tet holiday for
customers who have a
payment limit of over 500,000
VND
Sponsoring the program 1/3/2022 - 15.000.010.0 Mr.Rendy

"Happy New Year": helping 31/3/2022 00
orphans have a warm and
happy Tet
April 2022 - Choose Miss Universe 1/4/2022 - 2.500.000.00 Mr.Rendy

August Vietnam H-Hen Niê as the face 30/4/2022 0 VNĐ
2022 of Zara brand in Vietnam to
increase brand awareness
Created an advertising 1/5/2022 - 1.280.000.00 Mr.Rendy

campaign called “BE 31/5/2022 0 VNĐ
YOURSELF”
Organize launch meetings to 1/6/2022 - 110.000.000 Mr.Rendy

answer customers' questions 30/6/2022 VNĐ
about the product
Seasonal promotions: In the 1/7/2022 - 1.200.000.00 Mr.Rendy

summer, customers will be 31/7/2022 0 VNĐ
given a crop top with the Zara
logo printed
Customers when ordering 1/8/2022 - 500.000.000 Mr.Rendy

products will receive 80% 31/8/2022 VNĐ
shipping fee support from

lOMoARcPSD|15735837
Zara during the Covid-19

pandemic
August Organizing sponsorship and 1/9/2022 - 15.150.000.0 Mr.Rendy

2022 - charity activities: donating 30/9/2022 00 VNĐ
October 30% of revenue to the Vaccine
2022 fund, sponsoring clothes for
F0 and orphaned children
because of Covid-19
Start collecting data about 1/10/2022 150.000.000 Mr.Rendy

your customers and start - VNĐ
sending them messages via 31/10/202
email or SMS 2
Seasonal promotions: in the 1.000.000.00 Mr.Rendy

fall, they will be given a light 0 VNĐ
brown tote bag
November Fashion sponsorship includes: 1/11/2022 10.000.000.0 Mr.Rendy

2022 - clothes, accessories for - 00 VNĐ
December programs such as "Fashion 30/11/202
2022 and life", "Rap Viet", ... 2
Seasonal promotions: In the 1/12/2022 1.000.000.00 Mr.Rendy

winter when customers buy - 0 VNĐ
products at Zara, they will be 31/12/202
given extra gloves and scarves 2
TOTAL 49.890.090.0
00 VNĐ

lOMoARcPSD|15735837

lOMoARcPSD|15735837

Thamkhao

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Thamkhao

Uploaded by

Copyright:

Available Formats

lOMoARcPSD|15735837

Marketing Plan of Zara - Your description is too short, please

StuDocu is not sponsored or endorsed by any college or university

THE MINISTRY OF FINANCE

REPORT IN FASHION INDUSTRY

Professor: Mrs Ngo Minh Trang

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

HO CHI MINH CITY- 2021

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

THE MINISTRY OF FINANCE

REPORT IN FASHION INDUSTRY MARKETING PLAN

Professor : NGO MINH TRANG

Captain: BUI THI BICH NGOC

HO CHI MINH CITY- 2021

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

ASSIGNING TASKS TO TEAM MEMBERS

No Full name Student ID Activity %

1 BUI THI BICH NGOC 100%

3 NGUYEN DAC LE DUNG 100%

4 NGUYEN MAI KHANH 100%

5 MAI THI THU HUONG 100%

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

COMMENT OF THE PRACTICE GUILINES TRAINER

NGO MINH TRANG

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

2.1 Market summary 7

2.2 SWOT Analysis 11

2.4 Product Offering 13

2.5 Keys to success 14

2.6 Critical Issues 14

3.2 Marketing Objectives 16

3.3 Financial Objectives 16

3.5 Target Markets 17

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

3.8 Marketing Mix: 25

4.1 Break-Even Analysis 26

4.2 Sales Forecast: 27

4.3 Expense forecast 29

5.2 Marketing Organization 33

5.3 Contingency Planning 33

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

- Zara began as a family business, formed in 1975 in the heart of Galicia,

2. MACRO-ENVIRONMENT ANALYSIS (PESTLE)

2.1 Political and Legal

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

● Products are recycled: due to heavy environmental pollution,

● Waste management: if it is not possible to recycle the product into a

● Customer's attitude towards environmentally friendly products:

● Natural resources are exhausted: ZARA needs to research alternative

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

● Weather and climate conditions: each place will have different

● Political stability: this factor is also quite important because political

● Demographics: the age and gender study of customers greatly affects a

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

● Social standards: ZARA is present in many different countries around

● Online shopping: nowadays, along with modern technology, people

● Spending behavior: the study of consumer buying behavior helps

● Classification planning system and PLM:

ZARA uses a web-based product planning, sorting, and management

Downloaded by Thu Anh Hoang Nguyen (thunhagbc200228@fpt.edu.vn)

● Distribution and Implementation:

ZARA Fulfillment centers use automated packaging technology, making