INTRODUCTION

In this report, it is separated into 2 main parts. Firstly, by analysing different aspects of digital
environment, we are able to comprehend their opportunities, challenges and influence. the
second part will mainly show digital tools, platforms, channels to apply to the chosen company
and compare them with physical channels to clearly see the influence of digital marketing.

Zara SA (or normally known as Zara), which was founded in 1975 in Spain, is a company
specializing in fast fashion including clothing, accessories, swimwear, beauty... It becomes the
largest company owned by Inditex group and also largest apparel retailer in the world. Currently,
Zara’ headquarter is placed in Arteixo, Spain with 2,270 other stores in 96 countries
 MAJOR FINDINGS

TASK 1

1.1 Digital marketing landscape and comparison between online and offline marketing
concepts

1.1.1 Definition of digital marketing

According to (Piñeiro-Otero and Martínez-Rolán, 2016), digital marketing, also known as
online marketing, is a form of brand promotion to connect with customers via the internet
and other forms of digital media such as a marketing channel including: email, social media,
web-based advertising, text and multimedia messages... It can be said that marketing
campaigns using digital communication are digital marketing.

1.1.2 Digital marketing landscape

The world today exists in the 4.0 or digital age, so people are increasingly dependent on
machines. In recent years, the number of people using digital or digital products more and
more makes them become more and more popular and indispensable in everyone's life.
The development of digital all over the world has brought its strong spread in Vietnam. It
can be said that Vietnam is one of the countries with the highest digital growth rates when
the statistics index are 50% higher than the same period last year. Digital is ubiquitous and
widely applied in many jobs because of its convenience.

In Vietnam, the fashion industry in recent years has marked significant changes with the
introduction of many global fashion brands. These brands have transformed the entire
fashion industry in a new digital direction. The convenience of buying online via official
website or e-commerce sites has attracted customers and caused domestic fashion brands
to change their business strategy with the application of more technical technology. During
the COVID - 19 epidemic period, digital trend of fashion is more and more focused on
because of its convenience and safety, affecting the development of digital in fashion
industry in Vietnam. However, even without this outbreak, this is also the inevitable trend of
the fashion industry of countries to match the development of the world fashion industry, as
(Hämmerle et al., 2020) said: Fashion must go with digital, or it will end.

Zara has officially been present in Vietnam since 2016 and they have gradually improved
the digital features in brand management and sales. Specifically, Zara has established an
official website, a Facebook page for the Vietnamese market, called Zara Vietnam. After
being launched in the Vietnamese market for over a year, Zara Vietnam officially upgraded
its website system by allowing customers to order online and deliver to home. In addition,
since its inception, Zara has continuously upgraded its systems to ensure convenience for
customers to use. Zara has contributed to driving changes in traditional buying into online
shopping or using the website to test new clothes before going to the store to shop.
1.1.3 Online and offline marketing concepts
Online marketing Offline marketing
Definition Online marketing is the use of Offline marketing includes some of
information technology (IT) while media channels that are offline the
creating communicating and Internet that can create and
delivering value to customers and achieve traditional marketing goals
for managing customer (Mirchevski, 2020)
relationships in ways that benefit
the organization and its
stakeholders.
(Strauss, Ansary, El-Ansary and
Frost, 2005)
Channel  PPC  Telemarketing
 SEO  Television ads
 Email marketing  Billboards
 Social media marketing  Pamphlets
 Retargeting  Radio
 Mobile marketing  Other kinds of print media.
 Website
 Content marketing

Paid media Paid media are channels that organizations or brands are required to pay
if they want to post their content.
 PPC (Pay per click)  Print and TV advertising
 KOLs (Key Opinion  direct mail
leaders)
 Display ads
Owned media Owned media are channels owned by the organization or the brand
itself, and require no fees when posting content
 Official website  Brochures
 Account in social networks  Retail stores
(Facebook, Instagram,
Twitter…)
Earned media Earned media are channels that facilitate brand discussions or feedback
 that spread naturally, often as a result of the efforts made by marketers
on paid and owned media.
 Viral and social media  Word of mouth
 Conversation in social  Publicity across offline
network media and referrals.
 Blogs

1.1.4 The benefits of digital marketing in Zara’s business

According to (Shirisha, 2018), there are some specific benefits why digital marketing should
be applied including:

Cost savings: Businesses are able to easily plan a successful online marketing strategy
within their budget by using digital marketing that offers cheaper techniques than other
advertising channels like radio, TV and others. A detailed-planned and well-managed digital
marketing campaign is fully capable of reaching a large number of audiences at a lower
cost than traditional marketing methods.

Save time: Digital marketing delivers real-time results in fast time. Digital marketing offers
the opportunity to generate customer data such as number of visitors to your website, peak
transaction times, and number of additional subscribers in a day.

Social Currency: Digital marketing offers the opportunity to create compelling campaigns
by combining a variety of means to get the most out of them. These campaigns are spread
on social platforms to create a viral effect from person to person, thereby earning profits
from the society.

Brand: Branding is what every business tries to build and develop, and by using digital
marketing, its branding is promoted on multiple platforms, spread in the community and is
mentioned by many people and become more popular in the eyes of search engines as
users.

1.2 The key consumer trends and insights fuelling digital marketing’s growth.

1.2.1 Customer insight’s importance

Customer insight is assessment of customer behaviour and trends performed by brands to
understand the group of customers they want to reach, thereby improving the effectiveness
of reaching the target. The insight can go into many different aspects (anthropology,
ethnography ...) to explore the "reasons" behind consumer thinking and behaviour (Pollock,
2019). There are some reasons why customer insight is important including:

Support the right marketing strategies

Understanding the determinants of a customer's purchase, when and where to buy, or the
treatment they want to receive when making a purchase are the factors that help brands
become better in understanding their customers, thereby creating a marketing campaign
targeting the right customers. In addition, the company can build a strong foundation
through research to identify outstanding problems in old strategies and then come up with
solutions for new marketing strategies. If not, the company could waste money on
inappropriate marketing expenses

The customer's love to be heard

When customers notice that brands take time to get to know them, they will be impressed
by their sense of importance. Every user’s information brings a unique value to the
customer's brand experience. Instead of a one-way introduction to what they should buy,
customers prefer two-way conversations for easy build strong brand trust. So brands that
show empathy for their audiences get invaluable competitive advantage.

Prepare and protect for the future

Changes in consumer behaviour are not only happening, but are accelerating very rapidly.
The advancement of technology constantly impacts the buying habits of customers, and the
less agile, responsive brands will be left behind just overnight. As trends evolve rapidly,
research into consumer insights can account for some of these changes and prepare
brands for better to fully adapt and respond to these behavioural changes.

Open up new development opportunities

Understanding your consumers and studying them more closely, can lead to cross-selling
opportunities and even open up untapped new audiences. Consumer insights can
determine new product development needs, which can therefore be accomplished with a
more focused goal. Testing products on consumer-focused groups can help you launch
your products on the right track, giving customers exactly what they're asking for.
1.2.2 Consumer trends and insights
Vietnamese millennials make up 35% of the population and they have become the biggest
potential customer group of the online shopping trend. Nielson has particularly emphasized
that the concern of young people is convenience. Therefore, many websites and online
applications were born to meet the needs of potential customers. According to the statistics
released by the Global Web Index, the number of users who have viewed the online store
or website and the real number of buyers has a slight difference with less than 5%. In
Vietnam, Shopee, Lazada, Tiki, Sendo are the most used e-commerce platforms.
Understanding the buying psychology of young customers which is price sensitivity in the
market and cynicis, e-commerce platforms are increasingly transparent about prices and
product quality to create conversation between brands and consumers. Moreover, after
analyzing customer characteristics, they tend to make a purchase based on reviews of
acquaintances like family and friends about a particular product / service or search for
articles about products/services on social networks (Facebook, Youtube, Instagram)
because they want to ensure the quality of the product when buying. Understanding the
psychology of customers, a type of person on social networks was born called KOLs (Key
Opinion Leaders). They are paid a large amount of money by the company to evaluate the
product in a positive way in order to gain customer trust.

Zara should focus on analyzing customer journey maps usage, their personalities and
characteristics to understand customer details in order to facilitate the development of
digital thorough marketing. Customer journey mapping is used as a technical tool to
understand customer motivations such as their feelings of hesitation and anxiety when
making a purchase. After that, Zara continues to identify the factors that impact the
customer buying process. Customer personality helps bran ds understand customer buying
.

behaviours including characteristics, motivations, and needs of customers based on

analysis and research (favourite communication types, customer reviews products about a
brand…). Finally, the character of the customer is to differentiate the customer segment by
demographic analysis. It can be seen that understanding customers, in particular
millennials, maximizes companies in understanding consumers better and providing
effective shopping methods for them.
1.2.3 An increase of explore online consumer power, online consumer power,

Today, more resources can be used to collect customer insights more flexibly in today's digital
revolution. Various specialized tools are used to collect customer and market data (Google
Tools, Google Analytics, Nielsen, etc.). These tools can help marketers better understand
customer behavior and expectations when they access the Internet, as well as their habits when
they search for a product, or their buying habits. them to create their personality, traits, itinerary
and deals. customer.

One study mentioned the impulse to pull, one way to pull the media, and ultimately, the two
authors switched from supplier thinking to consumer thinking. As can be seen, the problem now
is the transition from supplier (brand) to the customer, thereby showing that the customer is the
owner. An increase in customer power is shown, as is the customer's ability and relationship to
one another, demonstrating control over their contact. As a result, information, reviews, and
advertisements for products as well as campaigns and services will have the opportunity to be
widely spread in the customer community, helping the company and brand increase public
awareness. . . Users often use the Internet for the purpose of shopping and searching for
products. Information about the quality of the product will be spread quickly and widely on
today's social networks such as Facebook, Instagram, Youtube (usually rated by the product's
users) or ads will be paid for. Suggestions on major online newspapers like Kenh14,
Vnexpress ... Shopping lovers will also have their own community and forum to discuss their
experiences with the product. As a result, an individual's opinion can have a major effect on the
product, brand or company. If customers are satisfied with the product and give good reviews
about the product, this can also be a successful marketing method, helping to build the
company's image and reputation. On the contrary, if this feedback is not good, the product will
most likely face a strong wave of boycott from the consumer community. That is the flip side of
using media marketing, users can discuss and criticize with other consumers, pointing out
defects in products. This negative situation will adversely affect the reputation and image of the
company, and lose customers' trust.
Although Zara has just entered the Vietnamese market in a short time, with the growth of the
brand in other countries, they easily win the hearts of Vietnamese customers. In addition to
advertising its products on social networks, Zara should also spread a lot of good news and
receive positive feedback to build the company's image. Zara also needs to pay attention to
information that is being spread on social networks, catch up with the trends of the times and
from there improve further for its company and products. The company needs to take measures
to prevent negative news and feedback on social networks to ensure a good impression of the
product and brand image. With the pervasiveness of social media in today's modern life, if Zara
determines the right direction and comes up with the right strategy, digital marketing can bring a
remarkable reputation and success for Zara.

1.3 The challenges and impacts of digital marketing for Zara while launching campaign in
Lunar New Year

1.3.1 The competitive environment in Vietnam

To analyze the competitive environment in the Vietnamese fashion industry, I use Porter's 5
forces including:
 Consumers power
Nowadays, with the development of digital, customers easily grasp information, choose
suitable and accurate sources. With a dynamic industry like fashion, fashion trends are
constantly being updated, so customers can easily grasp trends about how to mix clothes
and accessories of famous brands no matter where they are. Thanks to the rapid spread of
news, when customers have any feedback to the product, the company, its competitors or
other customers can easily grasp the information. However, this can have both positive and
negative effects on the product as not all customers are easily satisfied with the products
being launched.
 Entry barrier
In Vietnam, the number of existing fashion brands can be up to thousands of brands from
large to small, from foreign to domestic brands. So, in general, this is a fairly easy industry
to get into. Products can be easily accepted if they are in line with the trend of the general
fashion industry, to keep up with world fashion trends, with beautiful and fashionable
materials but at reasonable prices. Fashion is unlimited, so each brand will have a different
style, suitable for each type of customer. However, a big difference can still create a failure
when it cannot match the general development of world fashion.
 Power of supplier
 Currently, the development of the Internet can help businesses find many good suppliers
with incentives for long-term coordination. However, suppliers often have some influence on
the price of raw materials for their products in order to make a profit for their business.
 The risk of supplement
As mentioned above, fashion is a day that is constantly changing and changing. Fashion
brands race to create the latest fashion trends so if anyone cannot follow the dynamism and
newness of fashion, they are really out of date and easily elimination. They will be replaced
by new people and brands that are sensitive to the times, ready to change and grasp the
general trend of the world.
 Competitive contention
The competition in this industry will increase because people want to enhance the beauty in
life. When entering Vietnam, Zara has the advantage of being a major global brand, but
with higher prices than the general price level, Zara still only targets a specific target group.
In addition, Zara has to accept the competition with the long-established brands in the
market with high quality and reasonable price, which are trusted by many Vietnamese
people of the previous generation. Despite being a major brand, Zara still faces competition
from other brands in the region.

1.3.2 The growth of ‘micro-moments’ and their impacts

According to (Nguyen, 2019) 'micro-moments' is a kind of moments in everyday life but
often more special than similar moments because that is when each person has a very
strong need. Specifically, every hour of a person owns more than 100 moments of contact
with hundreds of people, doing hundreds of different actions. However, if the brand is
cleverly exploited, a few moments will become special and Google has seen it as a trendy
advertising method. Customers can suddenly change their decisions and act on their needs
from that moment.

In the digital age today, small moments can have a huge impact on the business activities
of an entire business. Customers started to restrict website usage because of the lack of
data but instead preferred "micro-moments" because the indirect data they had before
being affected by micro time was how businesses perform these effects. In addition, the 4
key moments that need to be carefully considered by brands or companies when
implementing "micro - moment" include:
  "I want to know": The moment when customers actively seek information and
product value to find out carefully before making a buying decision.
 "I want to do it": The moment when the customer wants to experience a sample or
product to discover and confirm information.
 "I want to buy": A time when consumers are ready for their own choice but they still
need help with ordering. This is also the time when companies need to give
customers specific and accurate information so that they can make a final decision.
 "I want to go": The time when customers want to come directly to the company, they
need to demonstrate the convenience of moving from the customer's position to the
company for convenient visit or find out local businesses.

1.3.3 Challenges and impacts of digital marketing for Zara

In order to deliver the best online customer experience, brands must consider 3 main factors
.

including rational value, emotional value, and promised experience. Since websites and social
. .

media are popular tools for reaching and interacting with online customers to create value, it is
.

important to thoroughly understand your company's target audience, needs and characteristics.
from there as the basis for website design and content development. The company should plan
1

website design before launching through a number of key activities such as pre-development,
1

website design and content as well as testing. The website's performance and effectiveness can
be assessed by its usability, usability, accessibility and personalization.

 Usability indicates the user's advantage in connecting to the website / app. If the user
has difficulty accessing it, it will be a negative customer experience
 Usability is the ease and efficiency of customer access or experience of websites or
social networks.
  The accessibility of a website is a design guarantee as its tools and technologies create
a smooth experience for the user regardless of the lack of any element.
 Personalization provides a tailored experience for customers based on their
characteristics and behavior, encourages customers to interact with brands and gain
loyalty as nearly 99% of marketers surveyed agree that it improves customer
relationship management and drastically impacts the customer experience

This puts a great deal of pressure on Zara's system to effectively create and manage its
digital channels as well as maintain an online brand presence for efficient and consistent
performance across all the touch-points of their online journey. It requires companies to use
and manage multiple data sources as it is difficult to understand customers at individual
levels.

TASK 2

2.1 The key digital tools and hardware which are available to marketers

2.1.1 Key digital tools and digital hardware

There are many digital tools used by companies today, but among them, three main tools
.

are mentioned including search engine optimization (SEO), paid search engine advertising
and email marketing (Chaffey & Chadwick, 2019).

SEO is the process of using organic search engine results for chosen keyword phrases to
increase traffic for the website and improve brand positioning.

Paid search marketing permits companies to advertise in "sponsored links" when an user
uses a search engine to look up a particular phrase by paying for each click in link (pay-per-
click)

Email marketing is used to promote products / services and to announce the latest items or
promotions using email. It requires planning for outgoing and incoming email marketing that
are emails sent to customers and received from them.

Social media marketing (SMM) is the use of social networks and communities to engage
and engage customers. It encourages interaction between brands and customers as they
communicate on the company's own website.
Digital hardware includes digital platforms that are built on modern technology to allow
easier application development such as mobile phones, desktops and other platforms
described by below.

Digital platforms

Mobile phone,
Desktop, laptop Others
tablet

Mobile - based
Desktop app Wearable
app

Mobile browser Desktop browser Gaming platform

Video marketing Indoor/Outdoor

content kiosk type app

Interactive
signage

In Zara's case, the brand is advised to use SEO and SMM as digital channels when it starts
to launch a digital campaign on the Lunar New Year. First, SEO brings many practical
benefits in the Zara product promotion process. In fact, SEO can easily bring in a significant
number of potential customers. People who are unaware of the brand, but their buying
intent on the company's website is very clear. This can be said to be a useful tool for
generating cost-effective and clearly targeted traffic because the brand does not pay for the
display of the ad, but can only generate it if it wants to improve your position on the search
.

results. SEO contributes to a company's target customer trust when the company ranks
high in search results because of its good online presence and keyword-based content
because a study found around 80 % of users are most likely to click the first 3 results.

Second, social media marketing is a good choice for Pepsi because the company is
harnessing the power of online consumers well through social media channels. It is helpful
to increase brand awareness when people tend to increase their use of social media. Aside
 from that, Zara has succeeded in engaging people on its pages like Instagram and
Facebook, so continuing to use it will improve strengths and maintain an existing
competitive advantage. This is a cost-effective tool as most social media platforms are free
to create and login. Zara only needs to pay the team to build professional pages and create
content, which can still be seen as cost-effective compared to its efficient results. Zara can
generate results on digital campaigns faster on social media through reactions, comments,
shares or outreach on Facebook and Instagram. It helps track reach and evaluate
campaign effectiveness to make adjustments.

In terms of digital hardware, Zara can use the 2 most popular platforms: mobile and tablet
platforms, and desktop and laptop platforms. Mobile phones are widely used today because
of its convenience, the development of mobile operating browsers and applications based
on mobile devices can attract many people. Desktop browser-based platforms such as
Google Chrome, Coccoc and desktop apps are also very useful because after many years,
it is still the most effective tool to support work.

2.2 The development of e-commerce and digital marketing platforms and channels

2.2.1 Consumer life – cycle stages

Acc
ording to (Hanlon, 2013), the lifecycle stages of consumers of digital adoption can be
manifested through the pervasiveness of the innovation paradigm with five phases including
innovator, person applied early, most of them early, mostly late and lagging. Understanding
what stage a company's customers are at in the process of applying technology is crucial
as an analytical tool for marketers and managers. Since customers at each stage have
 different characteristics and responses to new technology developments, a more
.

appropriate and effective digital marketing planning helps create a marketing plan. digitally
more consistent and efficient.

First stage: innovators are risk-oriented people who are the first to implement new
technology development. They are a very small segment, accounting for 2.5% of total
consumption.

The early adopters are the second-fastest willing to take risks and adopt new technology
but are still a small demographic, at 13.5%. In general, they are young, educated and of
high social status.

The majority were initially much larger than the first 2 groups, at 34%. They are eager to
v

embrace new changes but are slower to adopt, tend to interact with early adopters, and
have little or no leadership opinion.

Late majority take longer to adopt an innovation after the majority of society. They are quite
conservative, cynical and rarely take leadership positions in a system.

Delayers are the last to adopt new technology developments and make up only 16% of all
consumers. They often have a negative view of technology, are often older and have little
or no leadership opinion.

2.2.2 The growth of online transactions and e-commerce, digital marketing platforms and
channels in Vietnam
According to (Duong, 2020), from 2018 until now is the booming period of e-commerce and
digital marketing platforms in Vietnam. The increase of users in Vietnam has led to the rise
of many different e-commerce sites such as Shopee, Lazada, Tiki, Sendo… - popular
platforms in the region. In particular, the Government is increasingly interested in shopping
through e-commerce sites with specific development plans with the goal that more than half
of our population can shop online.

During this period, young Vietnamese increasingly preferred to shop online and gradually
considered it the fastest and most convenient way to own a product. This is believed to be
the result of the mastery of technology devices with more than 90% of the population using
mobile phones and the majority being smartphones. On average, a Vietnamese spends 6-7
hours / day using a phone, which is higher than the average in the world. In particular,
during the Covid-19 pandemic, the importance of e-commerce was further confirmed by
 people forced to stay indoors and limit out to the maximum. This has exploded in online
sales by 20% compared to the pre-translation period. In the following years, Vietnam hopes
to promote the further development of the e-commerce industry to create sustainable
business opportunities for many businesses.

Regarding the comparison between shopping on e-commerce and digital platforms with
physical channels, one can clearly see the advantage of shopping online. Specifically, this
is a method that consumes less time and effort to move the customer and the day is done
simply anywhere when in the hands of customers only need to own a smart device with
Internet connection. Furthermore, brand interactions with customers before, during, and
after purchases are also guaranteed as they can compare prices, update product status
immediately, and evaluate products/services purchase when you buy. Although the risk of
this can occur when buying offline, brands also gradually overcome in many different ways
to increase customer trust in products such as video clips, detailed images, for customers
to try the product before buying...

2.2.3 Zara's use of in digital platforms and the internet for revenue generation
As mentioned above, Zara is encouraged to use SMM and SEO in order to increase sales.
With the benefits of social media marketing, Zara is a perfect fit because the company is
harnessing the power of online consumers well, and brand awareness can directly help.
The company increases revenue. The reason may be due to the proliferation of digital
channels and platforms, which increases the trend of increasing use of social networks.
Aside from that, Zara has succeeded in engaging people on its social media sites like
Instagram and Facebook, so they need to continue to use it as a strong point to maintain an
existing competitive advantage. SEO is a method that helps bring in a significant source of
money, but people who are planning to make a purchase on the web but know nothing
about the brand. Therefore, this is an opportunity to target high-quality customers with huge
buying opportunities, thereby increasing sales for businesses.

2.2.4 Automated and non – automated sales

While non-automatic selling is the traditional sales process, vending and support activities
are used as a tool to secure brand relationships and interactions with customers. Some of
the specific tasks mentioned are e-mail reminders, standard contracts, common
documents, etc.
 In addition, sales automation has many different benefits and can reduce human
involvement in the sales process and increasingly improve the efficiency of digital
marketing.

 Leads are easily identified through the use of tools like PPC, providing the opportunity to
convert relevant and interested customers.
 Customer data and statistics are updated continuously and accurately to become input to
the analysis. Given that amount of information without automation's involvement, a lot of
effort could be required to summarize. In addition, automated e-mail is an effective method
to reduce time-consuming activities while maintaining customer relationship by sending
reminder emails, follow-ups or greetings.

2.2.5 The role of 7P’s

According to (Anjani, Irham and Waluyati, 2019), the marketing mix (7P's) is an extension of
4P's, a combination of seven marketing elements that work together to achieve the goals of
the marketing strategy including:

Product: The product must be targeted exactly to the right customer segment (depending
on demographics). Moreover, when a product is released to the market, the company needs
to ensure the process of design, packaging and quality of each product.

Price: Product prices should be strictly followed by market prices, its product range, its
lifecycle rather than letting company decide for itself. Instead, the company can make a
decision on discount codes or online payment

Place: Place permits companies to deliver products to customers but also has many
limitations. For online channels, since the company doesn’ need a place to sell products,
customers can use the applications on mobile phones.

Promotion: The strategy of company tends to use digital marketing communication to

promote product effectively by combining different channels

People: This factor identifies the people directly involved in the company's product
marketing process and how the marketers interact with customers before, during, and after
purchases.

Process: It is methods and specific steps to track product users' journey from when they are
interested in the product by visiting the company's website until the product or service
purchase is completed. At this point, the company needs to focus on ensuring the
convenience of user experience about the website during the purchase period.

Physical evidence: Contrary to the definition in an offline context, physical evidence in

digital marketing refers to customer experiences that are physically represented through
reviews or feedback on a company's website.
 CONCLUSION
In conclusion, after completing this assignment, I can understand more about digital marketing
including theory and practice with the example of Zara. Digital marketing is increasingly
developing with the advancement of technology, thereby creating new e - commerce channels,
completely different from previous offline marketing channels. Although digital marketing has
many benefits, it also creates many negative effects on the company. Therefore, each
company, organization or brand needs to be especially careful to create a marketing strategy
that is targeted at the right audience and not offensive to society.
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