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My part is SWOT analysis, the task is all except key options, the requirement is to be able to write three to four pages, this time we are writing around Zora in China. The content has a check rate .
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MKTG 4840 – Zara case/research assignment
Use the one-page Marketing Plan handout in Canvas for the structure of your research
paper. One handout has the basic structure; a second has questions you can answer for
each part. The two-page marketing plan outline also posted there is a more detailed
structure. It is not necessary to use everything in that outline, but might be helpful
Your second research project is Zara Goes Global. There are a number of articles posted
in the Zara folder to get you started on your research. You should access at least five
more research sources such as Inditex Annual Reports. Keep in mind that the company
needs to further penetrate existing markets while developing new ones.
A few questions you might consider: How does Zara fit into the Inditex product mix?
Who are Zara’s primary competitors? What should they do to continue (or initiate) sales
growth in attractive markets? And who/where are those target customers? Can Zara
maintain its current distribution model as it expands geographically? What research
might they do to inform future expansion? How can Zara maximize global brand
exposure given its limited promotion budget? In what particular market/county
(excluding the U.S.) can Zara enter for the first time – or expand operations? The
intention would be to increase next year’s sales for the company.
Your team should investigate the company and industry (a minimum of five additional
sources) using an expanded SWOT format and then put together a recommendation in the
form of a brief marketing plan:
1) your market and company analysis
2) clear quantifiable objectives: company-wide AND for a specific country
of your choice (other than the U.S.)
3) a positioning statement strategy and
4) tactical details re: the Marketing Mix and further research
recommendations primarily for your specific target country.
Your case response should be about twelve to fourteen doublespaced pages and at the most fifteen pages long.
Team size is a minimum of two and a maximum of four students.
NOTE – If you are not familiar with SWOT analysis then you should review the PPT and
link on Canvas (SWOT presentation and SWOT help respectively). To understand how to
frame your Marketing Strategy you may also benefit from the PPT stack re: positioning.
Be prepared to discuss your specific country recommendations in class and
give insightful tactics supported by your research re: the elements of the
Marketing Mix (for five attendance points added to the possible 15 points
for the written response = total of 20 points).
S.W.O.T Analysis
Strengths
• High cost performance
•
Committed to environmental protection and insisting on sustainable
development
Weaknesses
Opportunities
•
•
•
•
•
Transform towards high-end and increase product standards
Consumers are also paying more and more attention to environmental
protection and sustainable development
Increase the frequency of designer collaborations, invite celebrities,
influencers to promote products, and increase advertising
China has a huge clothing manufacturing industry chain and a large
labor force
Set up special price areas to attract low-price enthusiasts while
reducing unsaleable inventory
•
Threats
Key Opportunities
According to data from London Stock Exchange Group (LSEG), in the six
months ended July 31, 2023, Zara parent company Inditex’s net profit was 2.5
billion euros ($2.7 billion), a half-year increase of 40%, exceeding
expectations. One of the key factors leading to this growth is that “Zara has
sought to attract more aspirational shoppers by associating its brand with
luxury, as opposed to fast fashion.” Since Marta Ortega Pérez was appointed
chair of Inditex in December 2021, Inditex stock price has increased by
approximately 50%. In her personal interview, she said: “Fast fashion
suggests a compromise to quality, which is completely the opposite of what
we look for.” This shows that what Inditex Group is currently advocating is to
build a high-end brand. This is a major transformation and breakthrough.
Improving quality will lead to higher costs and higher selling prices. At present,
Inditex’s profitability shows the initial success of this decision.
Looking at the needs of today’s Chinese consumers, 40% of users choose
quality (fabrics/cutting/workmanship, etc.) as the primary factor in their
clothing, footwear and hats consumption decisions. This is consistent with the
current brand focus of Inditex Group, and consumers are also willing to spend
more money than before to buy better quality products. “Providing the highest
quality at affordable and stable prices” will give Zara more opportunities in the
Chinese and even global markets.
Zara’s investment in advertising has not been large for a long time, with
annual advertising expenses accounting for only 0.3% of sales. However, in
2018, Zara invited two well-known actors as spokespersons in China for the
first time, which brought real benefits to the brand. The Chinese market
currently relies heavily on traffic and popularity, and celebrity effects are
highly respected among Chinese consumers. Therefore, continuing to invite
celebrities and influencers to promote on well-known Chinese websites such
as Xiaohongshu, Douyin, Weibo, etc., as well as increasing the frequency of
cooperation with designers is the key. At the beginning of this year, Zara
launched a joint collaboration series with Chinese designer brand
CALVINLUO, aiming to promote local design creativity and value, attracting
CALVINLUO’s own fans and a wider audience, thereby increasing brand
sales and continuing to introduce outstanding designers to China and the
world. This is a win-win move, realizing a key opportunity to increase profits.
Potential Threats
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