1.0 Imm Graduate School Cover Page: Business Project 3 (Bp304B) C00266

BUSINESS PROJECT 3 (BP304B) C00266
1.0 IMM GRADUATE SCHOOL COVER PAGE
PRESENTED TO: IMM GRADUATE SCHOOL
FOR: BUSINESS PROJECT 3 (BP304B)
PREPARED BY: GUMISO FRANCIS CHANAYIWA
STUDENT NUMBER: C00266
DATE OF SUBMISSION: 22 MAY 2023
2.0 COVER PAGE FOR BUSINESS AND MARKETING PLAN

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BUSINESS AND MARKETING PLAN FOR
ZARA SOUTH AFRICA
PERIOD: JULY 2023 – JUNE 2026
CONTACT DETAILS: 83 RIVIONIA ROAD SANDTOWN

CITY, SANDHURST 2196,
JOHANNESBURG, 2146, SOUTH
AFRICA
WEBSITE: www.zara.com
EMAIL ADDRESS: info@zara.com
TWITTER: @Zara
FACEBOOK: @ZARA
TELEPHONE: +27 80 066 8420
PREPARED BY: GUMISO FRANCIS CHANAYIWA
3.0 TABLE OF CONTENTS
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TITLE OF PAGES PAGES
1. IMM Graduate School Cover Page……………………………………………. 1

2. Cover Page for Business and Marketing Plan ……………………………… 2
3. Table of Contents……………………………………………………………….. 3
4. Executive Summary…………………………………………………………… 4
5. Introduction and Background………………………………………………….. 5
6. Understanding the Company…………………………………………………. 7
7. Industry Analysis………………………………………………………………… 10
8. Competitor Analyses…………………………………………………………… 12
9. Vision, Mission, and Values………………………………………………….. 14
10. Target Market……………………………………………………………………. 15
11. SWOT Analysis…………………………………………………………………. 16
12. Business Objectives…………………………………………………………….. 18
13. Marketing Plan…………………………………………………………………… 19
14. Operations Plan…………………………………………………………………. 31
15. Financial Plan……………………………………………………………………. 33
16. Critical Risks/ Critical Success Factors and Dependencies ……………….. 34
17. Measurement and Evaluation…………………………………………………. 36
18. Conclusions………………………………………………………………………. 37
19. Business Considerations……………………………………………………….. 37
20. Bibliography ………………………………………………………………….. 39
4.0 EXECUTIVE SUMMARY
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The business plan and marketing plan is prepared for Zara South Africa which is a
clothing company that operating within the clothing industry. Founded in Spain in 1975
by Amancio Ortega and Rosalía Mera. The brand is amongst the several that belong to
the Inditex group, which is amongst the major apparel retailers in the world. Other
brands operated by the group consists of Uterqüe, Pull Bear, Oysho, Zara Home,
Massimo Dutti, Bershka and Stradivarius.
The company is a fast fashion company which has contributed to wastages of

resources, pollution, global warming, rapid changes in consumer taste among other
accusations. The traditional ways of conducting business cannot continue especially in
an environment where competition is high and the rising importance of pressure groups
and changes in environmental laws. The company need therefore to adopt modern
ways of conducting business which include what has termed “circular economy”.
Circular economy entails the use of efficient methods of production that do not waste
resources, products that do not pollute the environment, innovation as well as use of
sustainable resources.
This business and marketing plan will show all the strategies that the company will use
to change from fast fashion to circular economy. The strategies include using
sustainable raw materials, use of renewable raw materials, efficient methods of
production, reducing pollution, use of biodegradable products including packing bags
among other things.
The business and marketing plan will cover a period of three years. The business and
marketing plan will include headings like background, company description, industry
and competition analysis, business and marketing objectives, values, vision and mission
statements, action plans, financial plans, SWOT analysis, critical success and risk
factors, marketing strategies, target marketing, as well as other business
considerations.
5.0 INTRODUCTION AND BACKGROUND
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Zara was founded in 1975 Spain by Amancio Ortega and Rosalía Mera. The brand is a
part of the majors brands operated by the Inditex group, which. According to Inditex
group (2023), the group also “owns brands such as Massimo Dutti, Pull Bear, Bershka,
Stradivarius, Oysho, Zara Home and Uterqüe”. According to Inditex group (2023),
“Ortega initially named the store Zorba after the classic film Zorba the Greek, but after
learning there was a bar with the same name two blocks away, they rearranged the
letters folded for the sign to "Zara"”.
The company opened several stores in Spain. In 1988, the company embarked on an
expansion drive which saw it going international and opened branches in Porto,
Portugal. According Inditex group (2023), “in 1989, it entered the United States, and
then France in 1990. During the 1990s, Zara expanded to Mexico (1992), Greece,
Belgium, and Sweden (1993). In the early 2000s, Zara opened its first stores in Japan
and Singapore (2002), Russia and Malaysia (2003), China, Morocco, Estonia, Hungary
and Romania (2004), the Philippines, Costa Rica and Indonesia (2005), South Korea
(2008), India (2010) and South Africa and Australia (2011)”. The company grew to
become one of the largest and successful fashion retailers in the world. According to
Zara (2023), “on an international level the company operates in 88 markets with a
network of more than 2000 stores ideally located in major cities”.
Zara first opened its doors in 2011 in the South African market. The company to date
operates 8 retail shops in South Africa and each store showcase the brand’s unique
approach to fashion (Zara, 2023). The company thrives to meet the fashion demand of
fashion-conscious audience. The company puts customers at the heart of its business
model. According to Zara (2023), “the business model includes design, production,
distribution and sales through extensive retail network”. Zara is the pioneered the
Agilility supply chain. Zhang (2008) proposes that “whole process of the supply chain in
Zara could be divided into four parts: product organization and design, purchase and
production, product distribution and sales and feedback”.
The company has been performing very well before the Covid 19 pandemic, but
performance was subdued during the Covid 19 years and performance has since
improved after the virus was contained. According to Inditex (2020) the company sales
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revenue was €16168 million in 2016, €17449 million in 2017, €18021 million in 2018,
€19564 million in 2019 and then during Covid 19 in 2020 sales were €14129 million.
Zara is a company that operates in the fashion industry. The products that are sold are
broadly classifies as: formal wear (for example suits, formal dresses and ceremonial
dress), bridal wear (for example wedding dresses and other clothes for weddings),
costumes (for examples costumes for events, holidays, theatre and entertainment),
footwear (for example shoes, boots and other footwear), sportswear (for example
specialty clothes for sports), uniforms (for example company uniforms and school
uniforms), accessories (for example luggage, handbags, umbrellas, wallets, ties, belts,
glasses, jewellery, hats among others), cosmetics (for example fragrance of body like
make-up, hairstyling products and perfumes).
There are several factors that are hindering the progress of the company. The company
was not spared by the Covid 19 pandemic which saw the business performance
declining. Changing in fashion trends is also a factor that constraints the business. It
means if the company delays reaching the market competitors will quickly take
advantage. Climate change, inflation and increase in transport costs are also affecting
the company negatively. The company faces a lot of regulation in the international
market as well as fluctuating exchange rate.
The company at present does not have a workable formal plan for sustainability as it is
still regarded as a fast fashion company and is seen to contribute to wastage of
resources and pollution. It is important that a business and marketing plan is developed
to take the company in new direction consistent with circular economy.
6.0 UNDERSTANDING THE COMPANY
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Zara is a company that operates in the fashion industry. Zara was founded by Amancio
Ortega and Rosalía Mera in 1975 Spain. The brand is one of the main brands owned by
the Inditex group, which one of the largest apparel retailers in the world. According to
Inditex group (2023), the group also “owns brands such as Massimo Dutti, Pull Bear,
Bershka, Stradivarius, Oysho, Zara Home and Uterqüe”. According to Inditex group
(2023), “Ortega initially named the store Zorba after the classic film Zorba the Greek,
but after learning there was a bar with the same name two blocks away, they
rearranged the letters folded for the sign to "Zara"”.
The company opened several stores in Spain. In 1988, the company embarked on an
expansion drive which saw it going international and opened branches in Porto,
Portugal. According Inditex group (2023), “in 1989, it entered the United States, and
then France in 1990. During the 1990s, Zara expanded to Mexico (1992), Greece,
Belgium, and Sweden (1993). In the early 2000s, Zara opened its first stores in Japan
and Singapore (2002), Russia and Malaysia (2003), China, Morocco, Estonia, Hungary
and Romania (2004), the Philippines, Costa Rica and Indonesia (2005), South Korea
(2008), India (2010) and South Africa and Australia (2011)”. The company grew to
become one of the largest and successful fashion retailers in the world. According to
Zara (2023), “on an international level the company operates in 88 markets with a
network of more than 2000 stores ideally located in major cities”.
Zara first opened its first store in South Africa in 2011. The company has eight stores in
South Africa and each store showcase the brand’s unique approach to fashion (Zara,
2023). The company thrives to meet the fashion demand of fashion-conscious
audience. The company puts customers at the heart of its business model. According to
Zara (2023), “the business model includes design, production, distribution and sales
through extensive retail network”. Zara is the pioneer of Agile supply chain. Zhang
(2008) suggests that “whole process of the supply chain in Zara could be divided into
four parts: product organization and design, purchase and production, product
distribution and sales and feedback”.
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The products that are sold are broadly classifies as: formal wear (for example suits,
formal dresses and ceremonial dress), bridal wear (for example wedding dresses and
other clothes for weddings), costumes (for examples costumes for events, holidays,
theatre and entertainment), footwear (for example shoes, boots and other footwear),
sportswear (for example specialty clothes for sports), uniforms (for example company
uniforms and school uniforms), accessories (for example luggage, handbags,
umbrellas, wallets, ties, belts, glasses, jewellery, hats among others), cosmetics (for
example fragrance of body like make-up, hairstyling products and perfumes). Specific
products offered include women, men, kids and beauty products. Women products
include coats, jackets, waistcoats, blazers, suits, dresses, jumpsuits, shirts, blouses,
tops, t-shirts, bodysuits, knitwear, sweatshirts, pants, jeans, shorts, skirts, co-ord sets,
shoes, bags, lingerie, beachwear, gift cards among others. Men products include: Zara
athletics, Zara rhuigi, basics, coats, jackets, overshirts, suits, blazers, shirts, t-shirts,
tracksuits, co-ord sets, polos, sweatshirts, knitwear, pants, jeans, shorts, shoes, bags,
perfumes, accessories, gift cards among others.
The company operates a flat organisational structure which has few levels of
management between executives and workers. According to Zara (2023), “Ortega
favoured a more flexible structure which flourishes within the highly integrated, fast and
efficient form of communication between its global network of outlets and central hub of
operations in Spain”. The structure also allows workers to be involved and participate in
decision making which makes them more productive.
Zara is a subsidiary of Inditex Group so the board of directors of the group controls
Zara. The group chairman is Marta Ortega Perez. She is the daughter of Amancio
Ortega founder and majority shareholder of Inditex. She has spent her career with the
group ever since she joined the group in 2007. She graduated in International Business
from Regent’s University London. She served the company in several positions, both in
Spain and international branches and business areas. She also joined the Zara design
and production team. She became a member of the Board of Directors in 2021.
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The group Chief Executive Officer is Oscar Garcia Maceiras. He was appointed as the
CEO in 2021 to head the group. He is a law graduate from Universidade de A Coruna
and a state Attorney. He has vast experience as a lawyer and occupied several high
profile positions before being appointed the group CEO. Other members of the board
include Jose Arnau Sierra, Denise Patricia Kingsmill, Anne Lange, Pilar Lopez Alvarez,
Jose Luis Duran Schulz, Rodrigo Echenique Gordillo and Emilio Saracho Rodriguez de
Torres. Workers who join the group are trained so that they work the Inditex way and
achieve the group’s objectives. The company employs more than 174 000 workers
across the globe (Inditex, 2023). The company believes in quality that is it why it
emphasizes on training of workers. The following is organisational structure for Zara.
Chairman
Chief Executive
Officer
Import/ Export Procurement

and Transport Director Legal CSR Director
Director Director
Chief
Communications Chief Human Chief I T
Officer Resources Officer Officer
Chief
Financial
Officer
Chief Audit Officer
The above chart shows the organisational structure for Zara.
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7.0 INDUSTRY ANALYSIS
Simplicable (2023) defines fashion industry as “the sector of the economy that produces
things that people wear such as clothing, footwear, accessories and cosmetics”. The
fashion industry includes Fashion marketing, Fashion media, Fashion education,
Fashion designing, Fashion retail, Ecommerce, Events, Manufacturing, Distribution and
providers of raw materials among others. Mckinsey Global Fashion Index (MGFI) (2018)
opines that “the fashion industry encompasses six groups consisting of clothing,
footwear, sportswear, handbags and luggage, watches and jewellery, and other
accessories”.
According to Bennett (2003), the clothing manufacturing industry in South Africa is

predominately situated in KwaZulu-Natal (KZN) and the Western Cape provinces.
Bennett (2003) adds that “in KZN, most of the industry is located in and around Durban,
and in some towns in the provinces’ hinterland (Newcastle, Ladysmith and pockets on
the north and south coasts)”. Other provinces with significant manufacturing activity
include Eastern Cape Province and Free State Province and Gauteng Province
(Bennett, 2003). Other provinces that also manufactures clothes, but the volume is not
significant include Northern Cape Province, Limpopo and North West provinces
(Bennett, 2003). The clothing industry consists of large, medium and small firms and
most of the firms are owned by South Africans although there are a significant number
of firms owned by foreigners especially from China and Taiwan.
The products that are sold in the fashion industry include: formal wear (for example
suits, formal dresses and ceremonial dress), bridal wear (for example wedding dresses
and other clothes for weddings), costumes (for examples costumes for events, holidays,
theatre and entertainment), footwear (for example shoes, boots and other footwear),
sportswear (for example specialty clothes for sports), uniforms (for example company
uniforms and school uniforms), accessories (for example luggage, handbags,
umbrellas, wallets, ties, belts, glasses, jewellery, hats among others), cosmetics (for
example fragrance of body like make-up, hairstyling products and perfumes)
(Simplicable, 2023).
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Fashion industry include popular companies like Edcon, The Foschini Group, Mr Price,
Woolworths, Gap, Next Direct, Zara, Uniqlo, Primark, H & M, Topshop, Fashion Nova,
Espirit, Forever21, Adidas, Gucci, Nike, Chanel, Adidas, Hermes, Cartier, Zando, Pick n
Pay, Shoprite, Zaful SA, Superbalist, Zana, Makoya and others. Some companies are
only retailers while other companies manufacture products and sell direct to consumers.
The fashion industry was negatively affected by the Covid 19 pandemic as travel bans
were put in place to combat the spread of the virus. These restrictions meant that
fashion products were not able to be moved from one country to another affecting sales
of companies in the industry. The industry was also affected by the conflict between
Russia and Ukraine and some companies were forced to close branches in Russia and
Ukraine. The sanctions that were placed on Russia also led to shortages of raw
materials and increase in petroleum products causing inflation. Inflation impacted
negatively on the fashion industry as consumers are no longer able to buy the quantities
they used to buy before Covid 19 and Russia and Ukraine conflict. The industry is also
experiencing a change in the ways of doing business emanating from the
consciousness and sentiments of consumers. Consumers now favour companies that
are seen to be environmentally friendly. So, companies are now forced to use ways that
are environmentally friendly and sustainable. In South Africa, the industry is affected by
cheap foreign products that have flooded the market especially from the Asian market.
This has caused firms to reduce their profit margins. The apartheid government used to
protect local firms, but this has since changed especially from 1991. The current
president however is encouraging South Africans to buy local.
To succeed in the competitive fashion industry companies should pay attention to

quality of goods and service, efficient relationships with suppliers, distributors and
customers, sale a wide variety and range of products, efficiency, and cost effectiveness
as well as global presence. Going forward, the industry is likely to change its culture of
wasting resources and using unsustainable ways to a modern circular economy which is
environmentally friendly and reduces wastage of resources. Companies that ignore
innovation, sustainability and efficiency are likely to lag behind companies that adopt the
circular economy.
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8.0 COMPETITOR ANALYSIS
The process of making an analysis of a company’s competitors is termed a competitor

analysis (IMM Graduate School, 2023). The analysis is pertinent because it assists in
understanding “the competitors’ objectives and strategies, strength and weaknesses
and how the competitors are likely to respond to the actions of the organisation”.
8.1 Who are the competitors?
IMM Graduate School (2023) highlights that two approaches that can be utilised to
conduct an analysis of competitors, that is the industry approach and the marketing
approach. Direct competitors are classified as industry approach while marketing
approach are companies that meet similar needs but may not be competing directly with
the company. Zara direct competitors are Gap, Next Direct, Zara, Uniqlo, Primark, H &
M, Topshop,Fashion Nova, Espirit, Forever21, and others. Other competitors are
Adidas, Gucci, Nike, Chanel, Adidas, Hermes, Cartier, Zando, Pick n Pay, Shoprite,
Zaful SA, Superbalist, Zana, Makoya and others.
8.2 What are the competitor’s objectives?
The objectives set by competitors are an important consideration when developing

strategies. They indicate the direction that competitors are taking and the likely
destination. This allows a company to guess the likely strategies to be adopted by
competitors. Zara competitors’ objectives are as follows:
 H & M’s objective is to be market leader in fashion innovation and sustainability.

The company focuses on latest trends and high-quality clothing. The company
believes in innovation, sustainability, and quality.
 Uniqlo’s objective is to sell high quality and affordable fashion products. The
company also want to dominate the market through selling a wide range of
fashion products that provide a wider choice to customers as well as keeping
competitors at bay.
8.3 What are their competitive strategies?
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Uniqlo’s strategy is costs leadership. The company focuses on efficiency in the

production and distribution of products. The company has an in-house project planning,
project designing and production which not only controls quality but also controls
efficiency and costs.
H & M’s strategy is differentiation. It intends to lead the market through innovation,
sustainability, selling latest trends and high-quality products. The company has
embraced circular economy principles and has taken upon itself to protect the
environment and reduce wastages through innovations and sustainable strategies. The
company also want to stay ahead of competitors by selling latest and high-quality
products at cheaper prices.
8.4 What are their strengths and weaknesses?
Uniqlo has many advantages over competitors which positions it at a higher competitive
position. The strengths of the company are efficient and costs effective supply chain, in
house production as well as project planning and product design, produces high quality
products and good image, sells wide range of products, affordable products, the brand
is international and the brand value is high. The weaknesses of the company are that it
is slow to reach the market and sometimes sells out of fashion products.
H & M is one of the leading fast fashion brands in the world and has much strength. The
company is well known globally, it sells high quality products, the company is flexible
and able to respond quickly to the dictates of the market, it sells latest and trending
fashion, it empowers workers so has loyal workers, it is innovative and uses sustainable
ways. The company weaknesses are that the products are often viewed as foreign, that
is the fashion lacks a local feel; the prices are high for a common South African.
8.5 How are they likely to respond?
Uniqlo is likely to join the euphoria surrounding the circular economy and ingrain the
concept in its strategies. This is because consumers are now conscious and now have
sentiments that can even the successful brands. The company will start to be
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innovative, recycle its products, use sustainable production methods, use biodegradable
raw materials. In terms of the cost leadership strategy, the company is likely to continue
with the strategy as it is one of its main sources of strength. It will continue to sell
affordable and high-quality products.
H & M is likely to continue with its innovation and sustainability strategies as well as
selling latest and high-quality trends. The company wants to be the leader in innovation
so it will dedicate more resources towards the initiative. The company is likely not to
reduce prices because it resonates with the differentiation strategy, and it maintains the
image of the company as a high value company.
9.0 VISION STATEMENT, MISSION STATEMENT AND VALUES

 Vision Statement
Zara vision statement states “To contribute to the sustainable development of society
and that of the environment with which we interact”
 Mission Statement
Zara mission statement states “To sustainably satisfy the desires of our customers in
terms of design, quality, price and availability”.
 Values
Zara core values are “Beauty, Clarity, Functionality and Sustainability”.
10.0 TARGET MARKET
To succeed in the competitive market, it is critical that Zara identifies the target market.
This identification process will help in the development of appropriate business and
marketing strategies. It also helps the company to appropriately allocate resources.
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According to Kotler, Wong, Saunders and Armstrong (2005:391) target marketing can
be described as “directing a company’s effort towards serving one or more groups of
customers sharing common needs or characteristics”. Zara is going to target urban and
cosmopolitan men and women who seek quality, style and design at affordable prices.
The focus is on customers who are fashion conscious who have a thirst for quality,
style, and design at affordable prices.
10.1 Bases of segmenting the market
According to Kotler, Wong, Saunders and Armstrong (2005), market segmentation can
be described as categorising a market into submarkets that possess similar features.
IMM Graduate School (2023) highlights that there are key variables that can be used to
undertake the process of categorising markets into submarkets with similar features and
they include: geography, demography, psychographic, benefits and market value-based
segmentation.
 Geographic
When markets are segmented using geography, the consideration used is the
geographical locations of the customers (IMM Graduate School, 2023). Zara is going to
target men and women who reside in the urban areas of South Africa. The target areas
are where people who are conscious about fashion reside.
 Demographic
When markets are segmented using demography, the markets are divided based on
population characteristics (IMM Graduate School, 2022). Population characteristics to
be considered include gender, marital status, age, social class among others (Kotler
and Keller, 2012). Zara is going to target men and women who seek quality, style and
design at affordable prices. These men and women must be adults and the classy
elderly. In terms of social class, the company will target middle to high income social
class as they are the ones to afford the affordable prices to be offered.
 Psychographic
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When markets are segmented using psychographic factors, the markets are divided
based on personalities (outgoing, extrovert and introverts), lifestyles and social class
(Kotler and Keller, 2012). The company is going to target middle to high social class,
adult and classy elderly who are outgoing, extroverts and have a lifestyle of spending
money on quality products. These are the people who are normally conscious about
fashion quality, style and design at affordable prices.
 Benefits
In terms of benefits segmentation, markets are segmented based on what consumers

will be seeking and not the design of the products. The company is going to offer a
variety of products which allow customers to choose what they want from the collection
of products.
 Market value based
Segmenting markets using this method involves an analysis of the relationships with
customers and those selected are customers with more benefits than costs. In this
regard, customers who are going to be prioritised are customers who have a long-term
benefit to the company. Those with short term benefits will not be ignored because they
can change to become profitable in the long run.
11.0 SWOT ANALYSIS
SWOT analysis is a technic that is used to analyse both internal and external
environmental factors. Kotler, Wong, Saunders and Armstrong (2005) argue that SWOT
analysis is a “brief list of the critical success factors in the market, and rates strengths
and weaknesses against the competition”. IMM Graduate School (2022) concurs that
firms can make use of SWOT Analysis to analyse its internal and external environment.
SWOT analysis can also be done using a methodological approach that gives a more
focused view of an environment both internal and external, (McDonald, 2011). The
McDonald six step methodology is illustrated below.
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1 Segment description
Zara is going to target urban and cosmopolitan men and women who seek quality, style
and design at affordable prices. The men and women are middle to high income social
class who are outgoing and fashion conscious.
2 Critical success factors 3 Weighting

1 Quality of goods, service and design 1 30
2 Popularity of the brand 2 15
3 Wide variety and range of products 3 25
4 Efficiency and cost effectiveness 4 10
5 Affordable prices 5 20
Total 100
4 Analysis of strengths and weaknesses

Critical success factors ZARA UNIQLO H&M
Total Total Total
1 Quality of goods, service and design (30×7) = 210 (30×8) = 240 (30×8) = 240
2 Popularity of the brand (15×8) = 120 (15×7) = 105 (15×7) = 105
3 Wide variety and range of products (25×9) = 225 (25×6) = 150 (25×7) = 175
4 Efficiency and cost effectiveness (10×7) = 70 (10×8) = 80 (10×8) = 80
5 Affordable prices (20×6) = 120 (20×7) = 140 (20×9) = 180
Total = 745 = 715 = 780
5 Opportunities and Threats Analysis

Opportunities Threats
Mergers and partnerships opportunities Change in fashion trends
More spending on fashion products High inflation
Improvement in technology Change in climate and weather
Improved lifestyle Stiff competition
Expansion into new markets Fashion easy to copy
Opportunities Threats
Online shopping and use of digital platforms Consumer sentiments and consciousness
Quick development in technology
Import of similar clothes at low prices
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6 Areas that need attention to improve competitive position

Invest more resources to improve quality and design of the product so as to fight competition
The company can improve on efficiency and costs effectiveness
The company can charge affordable prices for the selected target market
The need to maintain its popularity and offering of a wide variety of products
The company can dedicate more resources towards online shopping
The company must design products that are not easy to copy
The company must develop sustainable products that last long and do not pollute the environment
12.0 BUSINESS OBJECTIVES
To be successful in fashion industry there is need for companies to set clear objectives.
According to IMM Graduate School (2022), objectives set by the business must be
achievable, quantifiable and time bound. The following are the objectives set by Zara:
 To achieve a sales growth of 2% every quarter for the next three years
 To be the market leader in fashion industry by the year 2026
 To improve staff retention ratio through a constant development of staff skills
 To achieve a 70% increase in brand recognition by 2026
13.0 MARKETING PLAN
According to Keller (2013), marketing plan “is the central instrument for directing and
coordinating the marketing effort”. Marketing plan is a critical document that gives an
organisation a sense of direction and purpose in terms of its marketing effort. The
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marketing mix is an important facet of the document, but it also shows action programs,
sales forecasts, budgets as well as strategies.
13.1 Marketing Objectives
The goals that are set for the marketing department are called marketing objectives
(IMM Graduate school (2023). These marketing objectives must be consistent with the
corporate objective so achieving marketing objectives is process towards achieving the
corporate objectives. The following are the marketing objectives:
 To achieve a sales growth of 2% every quarter for the next three years
 To be the market leader in fashion industry by the year 2026
 To improve staff retention ratio through a constant development of staff skills
 To attain a 63% increase in brand recognition by 2026
13.2 Brand positioning and brand personality

 Branding:
The company will continue to use Zara as the brand name for the purpose of achieving
marketing and business objectives. Zara is a global and successful brand and
customers know the brand the world over. What is important is for the company to
change its ways and culture and focus on sustainability, reduction in wastages and
become innovative to reduce costs. These initiatives will quickly change negative
perception into positive perception towards the brand.
 Brand essence:
Brand essence is sometimes referred to as brand promise. It is the spirit of the brand.
IMM Graduate School (2023) argues that brand essence can be described as the
“enduring, competitive position of the brand expressed in a unique way”. The way it is
expressed reflects the spirit of the brand. It is usually three to five words phrase which
shows the heart and soul of the brand.
“Quality, style, authentic, affordable”
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 Brand Positioning:
According to IMM Graduate School (2023), brand positioning refers to consumers’
perception about company’s products. According to Keller (2013) brand positioning can
be defined as the “act of designing the company’s offering and image to occupy a
distinctive place in the mind of the target market”. In the fashion industry customers’
perception is based on quality, style, prices, variety, and design among other factors.
Brand positioning can be showed on a marketing mapping as shown below.
The marketing map above shows that Zara will be viewed by customers as high prices
and high quality. Customers in the fashion industry will view fashion products in terms of
quality and prices. Products sold by Zara will be of high quality which justifies the
premium charged by the company.
The brand positioning statement that will be used for Zara is:
“Trusted quality, authentic style, and affordable”
 Brand personality:
According to Keller (2013) brand personality has five dimensions which encompass
exciting, competence, sincerity, sophistication, and ruggedness. Brand personality is
pertinent because it fosters product differentiation, creation of awareness as well as
creation of memory. The brand personality of Zara is exciting and sincerity. Fashion
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stimulates customers so the personality is exciting. The brand will also reflect
authenticity as products to be offered will last long and have high quality.
13.3 Identification of the target market and segment assessment
 Identification of the target market
To succeed in the competitive market, it is critical that Zara identifies the target market.
This identification process will help in the development of appropriate business and
marketing strategies. It also helps the company to appropriately allocate resources,
increase sales, increase customer satisfaction and loyalty. According to Kotler, Wong,
Saunders and Armstrong (2005:391) target marketing can be described as “directing a
company’s effort towards serving one or more groups of customers sharing common
needs or characteristics”. Zara is going to target urban and cosmopolitan men and
women who seek quality, style and design at affordable prices. The focus is on
customers who are fashion conscious who have a thirst for quality, style and design at
affordable prices. The customers targeted have a lifestyle of spending and are outgoing.
The target market is also middle to high income social class.
 Segment assessment
The viability of a target segment is pertinent because it determines whether a segment

is attractive or not. According to IMM Graduate School (2023), the assessment of a
segment is based on “accessibility, dependability, tangibility and distinctiveness”. The
segment is accessible because urban men and women who are classified as middle
and high income reside in urban areas and accessible. The segment is dependable
because it has a capacity to buy the products for a long period giving a long-time value.
The segment can also be separated from the rest of the segments because it is distinct
from other segments. Men and women who reside in urban areas and have middle to
high income are distinct and different from other segments. The segment is also
tangible and solid and can support the future in terms of profits and positive cash flows.
 Target strategy
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There are several target strategies that can be used to achieve marketing objectives.
According to Cunningham (2018), target market strategy may be categorised as mass
marketing, differentiated marketing, concentrated marketing and micro marketing. The
approach to be used by Zara will require differentiated strategy as the products will have
unique design and quality as well as quality raw materials. The strategy will enable the
company to charge higher prices. Customers will buy the products because they will last
long and will be produced using sustainable ways. Charging high prices will also reduce
the quantity of products that need to be sold to achieve target profits. This has a positive
impact on reducing pollution and wastage of resources.
13.4 Marketing strategy
Kotler, Wong, Saunders and Armstrong (2005) define marketing strategy as the
“marketing logic by which the business unit hopes to achieve its marketing objectives. It
shows how strategies for target markets and positioning build upon the firm’s differential
advantages”. According to Keller (2013), marketing strategy is defined “as the mission,
marketing and financial objectives, and needs the market offering is intended to satisfy
as well as its competitive positioning”. It can also be described as the long-term action
plan developed to achieve marketing objectives.
13.4.1 Competitive strategy
To survive the highly competitive fashion industry, proper and well thought competitive
strategies need to be developed. The proper competitive strategy to be used by Zara is
differentiation. The products produced will be unique and different from competitors
products allowing customers to choose them based on the unique features. This will
also justify charging a higher price. The strategy will also reduce flooding of market with
a certain design of a product. The target market wants to feel different so flooding the
market with same design products will deter them from buying.
13.4.2 Relationship building strategy
To ensure that the company to be profitable in the future it is important to design a

relationship strategy that is long lasting. Zara need to develop strong relationships with
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customers to ensure that the right product is supplied at the right time. This will lead to
customer satisfaction and ultimately customer loyalty. Interactions with customers
becomes important and allows customers to give feedback to the firm on what the firm
is doing good and what the company is lacking. Relationships will also be developed
with essential stakeholders like suppliers of raw materials to ensure a continued supply
of high-quality materials in the long term. Other important stakeholders include lenders
and the government. Vehicles that can be used to interact with customers include
interactive company websites, social sites such as Twitter, Facebook, and Instagram
among others.
13.4.2 Marketing mix
These are components of the market offering and how they will be deployed to meet
customer needs.They normally referred to as the 7Ps. The 7 Ps are: product, price,
promotion, place, people, process and physical evidence. The Ps are supposed to be
interrelated and support each other so that effective marketing is achieved. The product
offered must be the right product, the price charged must be the right price for the
product and customers, the promotional tools used must be right and the product sold at
the right place.
 Product
A product is what a firm will be selling or offering to the market. According to Kotler,
Wong, Saunders and Armstrong (2005:34), a “product refers to anything that can be
offered to a market for attention, acquisition, use or consumption that might satisfy a
want or need. It includes physical objects, services, persons, places, organisations and
ideas”. Zara is going to offer fashion products to the market and the products include
high quality formal wear (for example suits, formal dresses and ceremonial dress),
bridal wear (for example wedding dresses and other clothes for weddings), costumes
(for examples costumes for events, holidays, theatre and entertainment), footwear (for
example shoes, boots and other footwear), sportswear (for example specialty clothes
for sports), uniforms (for example company uniforms and school uniforms), accessories
(for example luggage, handbags, umbrellas, wallets, ties, belts, glasses, jewellery, hats
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among others), cosmetics (for example fragrance of body like make-up, hairstyling
products and perfumes). The products will meet the needs of customers who are
fashion conscious who have a thirst for quality, style and design at affordable prices.
The product will be made from renewable raw materials, will be unique in terms of
design and quality, will be strong to last for a long period of time, will be made using
efficient methods of product that are friendly to the environment. The products will be
produced in different sizes and colour to cater for the different taste and preferences of
the target customers. The company brand name will appear on all tags attached to the
products.
 Place strategy
Place or distribution is where the product will be sold and where customers will go and
buy the products. According to Kotler, Wong, Saunders and Armstrong (2005:34), place
is “all the company activities that make the product or service available to target
customers”. The target market is men and women who reside in cities or towns who
have middle to high income. The products will be sold in Zara shops opened in major
towns, cities, and affluent suburbs in South Africa. The place is deliberately chosen
because there where target market usually buys their fashion products from and the
locations are convenient to the target market. The shops will be properly designed to
create a classy atmosphere which excites the target market.
 Pricing strategy
Price is the assigned monetary value that customers will pay in exchange for products.
According to Keller (2013) price is “the amount of money charged for a product or
service, or the sum of the values that consumers exchange for the benefits of having or
using the product or service”. The company will adopt various pricing strategies and the
prices will vary depending on the seasons, how long the product has been on the shelf,
actions of the competitors as well as short- and long-term objectives. The primary
strategy will be premium pricing where a high price will be charged for the high-quality
products. However, when the product is not moving in terms of sales then prices will be
tampered with to create demand. The pricing strategy is justified because it enables the
firm to continue offering the best quality, best design, and best style that last for a long
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time while at the same time generating enough profits. During or towards major holidays
like Easter and Christmas discounts will be allowed to customers as a way of inducing
demand. Other pricing discounts will be used for loyalty.
 Promotion strategy
Promotion refers to the tools that are used by the company to inform and persuade
customers to purchase company products. These marketing tools are advertising, sales
promotion, personal selling, direct mail, sponsorship and public relations. The following
are the tools that are going to be used by Zara.
Advertising strategy: Zara will also use advertising to promote its products. This
involves communicating information about a product to customers. Advertising is usually
paid for. It will be done using radios, TVs, Billboards, newspapers, magazines, journals,
social media, and company website. Advertising will help to create awareness,
informing customers, persuade customers to buy, demonstrations, as well as increasing
sales.
Sales promotions: Sales promotions are enticements that are directed to customers to
increase short term sales. The company will give discounts to customers who are loyal
to the company, for example 10% discount for the 10 th time purchase or reaching a
certain value of purchase. During public holidays like Christmas prices will also be
reduced as a way of motivating customers to buy more products. On slow moving
products the company will use ‘buy one get one free’ (BOGOF) method. This will
encourage customers to also try out new designers that they may not like at face value.
Personal selling: The company is also going to use personal selling where salespeople
will assist customers when buying Zara products. The salespeople will also gather
feedback from customers and use the information to improve operations. The
salespeople will also furnish customers about any promotions and events that will be
happening.
Interactive advertising: The company will take advantage of the development in

technology and use social media to advertise its products. The social media will also
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allow customers to give feedback to company about the performance of the company
products. The company can make use of popular social media like Twitter, Facebook,
Instagram, YouTube and others to market its products. Zara can also use its website to
market and interact with customers. In the process of interaction, the company will be
monitoring comments of customers.
Public relations and sponsorship: To improve the image of the company, the
company is going to help the less privileged members of the society like orphans,
widows and the elderly. Clothes will be donated to these people in the presence of
media. The company will also donate funds towards mitigation of natural disasters like
cyclones and floods. The aim is to improve how stakeholders view Zara which will play
a pivotal role when buying fashion products.
 Physical evidence
Physical evidence is the most recent addition to marketing mix. It entails customers
seeing the product being used or demonstrations. Customers will be able to judge on
their own whether the product is good or not. In this regard the company is going to hire
celebrities and popular and successful company executives to be influencers so that
customers will see the products being worn by celebrities. If they see high profile people
wearing Zara products, they will be influenced to buy as celebrities and successful
businesspeople are normally respected by the target market. The company will also
brand vehicles, uniforms, websites, stationery, premises, packing bags and notebooks
among others with the company brand name.
 Process
The way the company does its operations daily determines whether a company will
prosper in the marketplace or not. To guarantee customer satisfaction it is important to
improve processes. The company will establish a customer services function in the
organisation with the main objective of attending to customer queries and enquiries. If
the customer is not happy about something or anything the function will be there to
assist and remove customer worries. In addition, the company will make sure that
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convenience is prioritised. Online transactions should be established and smoothened

to avoid communication breakdowns.
 People
People is also a new important element of the marketing mix. People who will work in
shops, factories, and the ones who will design the products, market the products,
handle the products, distribute the products and all other workers must possess the
right qualifications, experience, and skills. This will ensure that quality becomes the
culture of the organisation. If one department lags it affects the whole organisation, so it
is important to make sure that Zara employees have the right qualifications, experience
and skills. Current workers who may lack the required skills will be retrained and new
workers whether they have experience or not will be trained the Zara way of doing
business. This will ensure that all workers do the right thing leading to satisfaction and
excitement of customers and ultimately more sales.
13.5 Product plan

A product is what a firm will be selling or offering to the market. According to Kotler,
Wong, Saunders and Armstrong (2005:34), a “product refers to anything that can be
offered to a market for attention, acquisition, use or consumption that might satisfy a
want or need. It includes physical objects, services, persons, places, organisations and
ideas”. Zara is going to offer fashion products to the market and the products include
high quality formal wear (for example suits, formal dresses and ceremonial dress),
bridal wear (for example wedding dresses and other clothes for weddings), costumes
(for examples costumes for events, holidays, theatre and entertainment), footwear (for
example shoes, boots and other footwear), sportswear (for example specialty clothes
for sports), uniforms (for example company uniforms and school uniforms), accessories
(for example luggage, handbags, umbrellas, wallets, ties, belts, glasses, jewellery, hats
among others), cosmetics (for example fragrance of body like make-up, hairstyling
products and perfumes).
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The target market for the products is middle to high income men and women who reside
in urban areas and who are fashion conscious, have a thirst for quality, style and design
at affordable prices.
The product will be made from sustainable raw materials, will be unique in terms of
design and quality, will be strong to last for a long period of time, will be made using
efficient methods of product that are friendly to the environment. The company will buy
fabric from suppliers and then dye the fabric before designing and making the products.
The products will be produced in different sizes and colour to cater for the different taste
and preferences of the target customers. The company will also pay attention to
different taste and preferences of people located in different countries. For example, the
company will make products for South African market that meet South African tastes
and preferences which may be different from other countries. In other words,
customisation will be done to meet local needs. This is sometimes called global
localisation. The company brand name will appear on all tags attached to the products.
However, the company can also outsource certain types of clothes with longer life that
meet the consumer needs.
The products will be sold at carefully selected Zara stores in towns and city cities as
well as affluent suburbs where middle to high income target customers normally do their
shopping. The company will articulately display fashion products in the stores and
windows so that the display will attract customers as well as show a sense of class.
Workers in the stores will wear nice uniforms with Zara on the uniform.
To arrive at selling price of the product the company will use premium pricing for
uniquely designed products and the prices will be reduced when competitors start to
copy the design. Various promotional strategies will be used to make customers aware
of the new designs as well as enticing customers to make purchases. Discounts will be
given to loyal customers and customers who refer other customers. Sales promotions
will be run towards and during Easter and Christmas holidays in order to boost sales
and getting rid of slow-moving goods.
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To continue producing high quality products and designs, the company will invest in
research and development. Workers will continuously be trained so that they produce
products with required standards and that meet customer expectations or even
exceeding expectations.
13.6 Sales forecasts and other targets

The company will expect a sales growth based on the strategies mentioned above.
Sales growth is expected at 2% quarterly for the projected 3years due to the strategies
mentioned above. The other assumptions that will lead to revenue success are given
below:
 The target market will positively respond to the marketing strategies

 The competitors will not drastically change their expected strategies
 The economic and political environment in South Africa will remain the same or
even improve.
 The government will continue supporting businesses with foreign origin
Zara South Africa Sales Forecast for the years:

Months Year 1 (2023 Year 2 (2024 Year 3 (2025 to
to 2024) to 2025) 2026)
Rands Rands Rands
July 1,000,000 1,082,432 1,171,659
August 1,000,000 1,082,432 1,171,659
September 1,000,000 1,082,432 1,171,659
October 1,020,000 1,104,081 1,195,093
November 1,020,000 1,104,081 1,195,093
December 1,020,000 1,104,081 1,195,093
January 1,040,400 1,126,162 1,218,994
February 1,040,400 1,126,162 1,218,994
Months Year 1 (2023 Year 2 (2024 Year 3 (2025 to
to 2024) to 2025) 2026)
March 1,040,400 1,126,162 1,218,994
April 1,061,208 1,148,686 1,243,374
May 1,061,208 1,148,686 1,243,374
June 1,061,208 1,148,686 1,243,374
Total Revenue 12,364,824 13,384,083 14,487,362
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13.7 Action/Implementation plan

According to IMM Graduate School (2020:41) “action plans provide answers to
questions on what needs to be done and the person responsible, when it’s going to be
done and the costs involved”. The plan will ensure that plans are turned into actions on
the ground and not only theory. The action plan for Zara is as follows:
Element Action/ Implementation plan for Zara South Africa

Objective “To outline the actions, the time period, responsibilities and budget allocation
relating to Zara South Africa”.
Target audience Managers and employees
Actions Measurement Time period Responsibility Budget
sharing
Recruitment and selection of Availability of the right June 2023 and will Personnel 10%
workers workers also be done when a department
need arises
Training of workers Efficiency, mistakes, and June 2023 Personnel 10%
customers complaints department
Purchase of supplies and raw Availability of quality raw June 2023 Procurement 15 %
materials materials department
Research and development Target marketing, new June 2023 and on R & D and 10 %
products going Marketing
department
Production Availability of products June 2023 and on Production 10 %
going
Quality control checks High quality products June 2023 and on Quality control 10%
going department
Distribution of the products Availability of the right June 2023 and on Distribution 10 %
products at Zara stores going department
Re launching of Zara the brand in Brand launched in South July 2023 Sales and 5%
the context of circular economy Africa Marketing
department
Actions Measurement Time period Responsibility Budget
sharing
Selling products to customers Sales reports Daily Sales 5%
department
Attending to customers complaints Number of complaints As and when there is Customer 5%
a need services
department
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14 OPERATIONS PLAN
According to IMM Graduate School (2022:41), “an operational plan is a short-term plan
developed by first-level management to achieve operational goals and to support
tactical plans”. The plan’s time frame is one year. It demonstrates the activities that first
level management do on a daily or weekly basis. First level management include
supervisors, departmental heads and individuals. An operational plan includes
“operations objectives, distribution plans, development plans, operations
implementation plan and timeframes” IMM Graduate School, 2022).
14.1 Operations objectives

 To curtail operational costs
 To improve efficiency and reduce wastages of raw materials, labour hours, lead time
among others
 To ensure right products are manufactured and delivered to the right customers
 To constantly monitor customer behaviour, sales and complaints
14.2 Distribution plan
The products will be manufactured in-house at the central manufacturing site earmarked
for the purpose in South Africa. Fashion products will also be imported from the Head
Office especially the ones with unique and special designs. In house production is done
to control quality as well as to ensure sustainable materials are used and some raw
materials recycled. The products will then be sorted from the production site in South
Africa to be in Johannesburg and then distributed to various Zara stores located in the
country as well as new stores to be opened. As for online stores, the clothes will be
ordered online, and goods ordered delivered to customers at a fee.
14.3 Development plan
The company will pay attention to development of better- and high-quality sustainable
products. The company will always monitor new developments in the market, the
competitive market, and the technological environment. When there is a move in the
market towards a new trend the company will quickly design a new sustainable product
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that meets the new demands of the customers. The developed product will have to
meet the conditions of a circular economy. Customers’ feedback and competitor actions
will greatly be considered as these are normally sources of information critical for the
development of new products. New technologies may also change the production
methods and the type of products produced so the company will always be on the
lookout for changes in technology that may present as an opportunity.
14.4 Operations implementation plan
Activity Responsibility Time period
Recruitment and selection of workers Personnel department June 2023
Training of workers Personnel department June 2023
Purchase of supplies and raw materials Procurement department June 2023
Product development and importing products from Production department June 2023 and on-going
Head office
Quality control Quality control department June 2023 and on going
Distribution of products to Zara stores in South Africa Distribution department June 2023
Selling of products and processing customer orders Sales department July 2023 and on going
Handling of customer queries and complaints Customer services department Daily
FINANCIAL PLAN
14.5 Financial objectives

 To achieve a quarterly growth in sales of 2%
 To achieve a 17% growth in sales by the year 2026
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 To reach a growth in sales from R12,364,824 in 2023 to R14,487,362 in 2026
14.6 Financial forecast and budgets
The financial forecast and budgets are based on the assumption that: the target market
will positively respond to the marketing strategies, the competitors will not drastically
change their expected strategies, the economic and political environment in South
Africa will remain the same or even improve, the government will continue supporting
businesses with foreign origin. The budgeted income statement for Zara South Africa for
three years is shown below.
ZARA SOUTH AFRICA BUDGET FOR THE PERIOD JULY 2023 TO JUNE 2024
JULY 2023 TO JUNE JULY 2024 TO JUNE JULY 2025 TO
2024 2025 JUNE 2026
R000 R000 R000
Sales 12 363 13 383 14 487
Expenses
Production 2 760 3 420 3 900
Selling and distribution costs 1 800 1 920 2 040
Administration costs 3 600 3 720 3 840
Total expenses 8 160 9 060 9 780
Profit 4 203 4 323 4 707
The income statements above shows that sales increase every year and same applies
to profits. The increase in sales revenue and profits can be attributed to marketing
strategies as well as costs containment.
14.7 Financial plans for the three years
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JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE Total
R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000
Sales 1000 1000 1000 1020 1020 1020 1040 1040 1040 1061 1061 1061 12363
Expenses
Production 200 200 200 220 220 220 240 240 240 260 260 260 2760
Selling and distribution costs 150 150 150 150 150 150 150 150 150 150 150 150 1800
Administration costs 300 300 300 300 300 300 300 300 300 300 300 300 3600
Total expenses 650 650 650 670 670 670 690 690 690 710 710 710 8160
Profit 350 350 350 350 350 350 350 350 350 351 351 351 4203
R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000
Sales 1082 1082 1082 1104 1104 1104 1126 1126 1126 1149 1149 1149 13383
Expenses
Production 270 270 270 280 280 280 290 290 290 300 300 300 3420
Total expenses 740 740 740 750 750 750 760 760 760 770 770 770 9060
Profit 342 342 342 354 354 354 366 366 366 379 379 379 4323
R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000
Sales 1172 1172 1172 1195 1195 1195 1219 1219 1219 1243 1243 1243 14487
Expenses
Production 310 310 310 320 320 320 330 330 330 340 340 340 3900
Total expenses 800 800 800 810 810 810 820 820 820 830 830 830 9780
Profit 372 372 372 385 385 385 399 399 399 413 413 413 4707
 Production costs include fabrics, labour and other raw materials, selling and
distribution include advertising and marketing, and administration costs
include salaries and other administrative costs.
15 CRITICAL RISKS/ CRITICAL SUCCESS FACTORS
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15.4 Critical success factors
There are certain factors that are pertinent to the success of companies in the fashion
industry. If properly considered when developing plans and strategies, they ensure that
a company succeed for a very long time into the future. The critical success factors in
fashion industry include quality of goods and service, relationships with suppliers, wide
variety and range of products, efficiency and cost effectiveness, global presence and
affordable prices.
15.5 Critical risks factors
When developing plans and strategies it is imperative that a company consider critical
risk factors. These critical risks factors can determine whether a company will continue
to operate for some foreseeable future or not. The following are the critical risks factors
in fashion industry.
Changes in climate and weather: Weather changes can have a devastating impact on
the fashion industry. It affects the supply of raw materials affecting company operations.
Adverse weather or climate conditions include droughts and floods. Shortage of raw
materials put pressure on the few available causing prices to increase causing viability
challenges.
Consumer consciousness: Consumers are now aware of how business activities

damage the environment, so they are now favouring companies that protect the
environment or seem to be taking steps to protect the environment.
Competition: Competition is very high in the industry causing companies to operate at

small margins. The industry does not have significant barriers to entry so many
companies join the industry. In addition, companies from Asian countries sale similar
products but at very low prices. This is because in Asia labour costs is very low lowering
costs of production and hence, they can charge abnormally low prices.
Changes in fashion trends: Consumers in the fashion industry are always excited with
new fashion so they are quick to abandon certain fashion products in favour of new
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trends. This quickly renders certain products out of fashion leaving companies
pondering at their losses.
16 MEASUREMENT AND EVALUATION
Measurement and evaluation in done to ensure that any deviancy from the expected
standards is corrected and ensuring that in future the same deviancy will not repeat
again. IMM Graduate School (2022:43) highlights that monitoring of all activities is
important in the context of taking corrective actions in areas where the norm is not
attained. The process may trigger a change in strategies especially if the environment
shows a permanent twist in certain characteristics. The measurement and evaluation
methodologies to be used by Zara are as follows.
Activity Measurement technique Time period Considerations
Measuring revenue Sales reports and acquisition rate of Semi For low result, increase promotion and
market share customers annually awareness campaigns
Measuring item market Sales reports Semi For low result, increase promotion and
share annually awareness campaigns
Sales and revenue Sales reports Quarterly For low results, increase promotion
growth and awareness
Satisfaction rates of % of satisfied customers, complaints Semi For low rate improve services and
customers rate & customer retention rate annually quality
Loyalty of customers Customer retention rates Semi For low rates improve marketing mix
annually strategies
Product awareness Sales reports, % of customers who Semi Low rates improve advertising and
are aware of the products annually promotions
Effectiveness of sales Sales records and customer per Quarterly Sales targets and commissions
force salesperson
Quality control Quality tests Regularly Set quality standards and benchmarks
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17 SUMMARY AND CONCLUSIONS
It is a given that companies that plan succeed while those that fail to plan are planning
to fail. Again, companies that prosper are companies that are able to adapt and adopt
new strategies when the current ones become old or outdated. The company is
considered a fast fashion company which has since become an outdated way of
conducting business. The company now needs a business plan and marketing plan to
help it revolutionise and transfigure its operations to circular economy.
This business and marketing plan showed all the strategies that the company will use to
change from fast fashion to circular economy. The strategies include using sustainable
raw materials, use of renewable raw materials, efficient methods of production, reducing
pollution, use of biodegradable products including packing bags among other things.
The business and marketing plan will cover a period of three years. The business and
marketing plan included headings like background, company description, industry and
competition analysis, business and marketing objectives, values, vision and mission
statements, action plans, financial plans, SWOT analysis, critical success and risk
factors, marketing strategies, target marketing, as well as other business
considerations.
18 BUSINESS AND MARKETING CONSIDERATIONS

 The firm must strongly consider more investment towards in house production
processes. This will not only ensure reduction in costs but also flexibility,
reduction in errors, avoiding delays as well as improving efficiencies.
 The company can also consider producing limited range of designs to avoid
flooding the market with a lot of fashion products with similar designs. The target
market also wants exclusivity.
 The company can also consider opening shops for secondhand products so that
the life span of products is increased reducing population and wastage of
resources.
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 The company must continue to invest in technology to move in tandem with

current business environment which calls for investment in technology. The
company can also venture into producing high tech fashion products that are
normally used by musicians and sportspersons.
 Concentrate more in markets that are profitable and stable cash flows as well as
products that are profitable.
 Decentralise the production of products to suit the exact requirements of local
customers. This calls for the employment of local designers.
Page 38 of 40
20.0 Bibliography
 Bennett, M. (2003). Organising in the Informal Economy: A Case Study of the

Clothing Industry in South Africa. Geneva: International Labour Office. Available
at: https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---ifp_seed/
documents/publication/wcms_117699.pdf&ved=2ahUKEwjF8pqRg-j-
AhULaMAKHYWkAQsQFnoECCAQAQ&usg=AOvVaw0a4zWg7fF==jYqg6z-
moOi [Accessed on 5 April 2023]
 Cunningham, M. (2018). Introduction to Marketing: A Southern African
Perspective. First Edition. Van Schaik Publishers.
 IMM Graduate School. (2022). BP304, Business Project BP304 Study Guide.
South Africa: IMM Graduate School
 IMM Graduate School. (2023). BP304, Business Project BP304 Study Guide.
South Africa: IMM Graduate School
 Inditex (2023). Sustainable report. Available at: www.Inditex.com [Accessed on

11 April 2023]
 Keller, K. L. (2013) Strategic Brand Management. 4th ed. Harlow: Pearson.
 Kotler. P., Wong. V., Saunders. J. and Armstrong. G. (2005) Principles of

Marketing. 4th European Edition. Europe: Prentice Hall.
 Mckinsey Global Fashion Index (MGFI) (2018). The State of Fashion 2018.
McKinsey & co, US.
 Simplicable (2023). 24 Examples of the Fashion Industry. Available at
https://simplicable.com/new/fashion-industry [Accessed on 25 April 2023]
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1.0 Imm Graduate School Cover Page: Business Project 3 (Bp304B) C00266

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BUSINESS PROJECT 3 (BP304B) C00266

1.0 IMM GRADUATE SCHOOL COVER PAGE

PRESENTED TO: IMM GRADUATE SCHOOL

FOR: BUSINESS PROJECT 3 (BP304B)

PREPARED BY: GUMISO FRANCIS CHANAYIWA

STUDENT NUMBER: C00266

DATE OF SUBMISSION: 22 MAY 2023

2.0 COVER PAGE FOR BUSINESS AND MARKETING PLAN

BUSINESS AND MARKETING PLAN FOR

ZARA SOUTH AFRICA

PERIOD: JULY 2023 – JUNE 2026

CONTACT DETAILS: 83 RIVIONIA ROAD SANDTOWN

EMAIL ADDRESS: info@zara.com

TELEPHONE: +27 80 066 8420

PREPARED BY: GUMISO FRANCIS CHANAYIWA

3.0 TABLE OF CONTENTS

TITLE OF PAGES PAGES

1. IMM Graduate School Cover Page……………………………………………. 1

4.0 EXECUTIVE SUMMARY

The company is a fast fashion company which has contributed to wastages of

5.0 INTRODUCTION AND BACKGROUND

6.0 UNDERSTANDING THE COMPANY

Import/ Export Procurement

The above chart shows the organisational structure for Zara.

7.0 INDUSTRY ANALYSIS

According to Bennett (2003), the clothing manufacturing industry in South Africa is

To succeed in the competitive fashion industry companies should pay attention to

8.0 COMPETITOR ANALYSIS

The process of making an analysis of a company’s competitors is termed a competitor

8.1 Who are the competitors?

8.2 What are the competitor’s objectives?

The objectives set by competitors are an important consideration when developing

 H & M’s objective is to be market leader in fashion innovation and sustainability.

8.3 What are their competitive strategies?

Uniqlo’s strategy is costs leadership. The company focuses on efficiency in the

8.4 What are their strengths and weaknesses?

8.5 How are they likely to respond?

9.0 VISION STATEMENT, MISSION STATEMENT AND VALUES

Zara core values are “Beauty, Clarity, Functionality and Sustainability”.

10.0 TARGET MARKET

10.1 Bases of segmenting the market

In terms of benefits segmentation, markets are segmented based on what consumers

 Market value based

11.0 SWOT ANALYSIS

2 Critical success factors 3 Weighting

4 Analysis of strengths and weaknesses

5 Opportunities and Threats Analysis

6 Areas that need attention to improve competitive position

12.0 BUSINESS OBJECTIVES

13.0 MARKETING PLAN

13.1 Marketing Objectives

13.2 Brand positioning and brand personality

“Quality, style, authentic, affordable”

“Trusted quality, authentic style, and affordable”

13.3 Identification of the target market and segment assessment

 Identification of the target market

The viability of a target segment is pertinent because it determines whether a segment

13.4 Marketing strategy

13.4.1 Competitive strategy

13.4.2 Relationship building strategy

To ensure that the company to be profitable in the future it is important to design a

13.4.2 Marketing mix