Zara Global Strategic Marketing

This is the case study of Zara in China and India, the following parts are shortened answers. Full explanations can be found in the full report which answered the 3 questions in detail from the angle of global strategic marketing.

Full report

About Zara:

https://www.zara.com/ww/

Question 1:

Analyse the macro- and micro-environment for Zara in the global retail apparel industry.

The Macro-environment (PEST Analysis Model)

The Micro-environment (Porter’s 5 Forces Model)

Question 2:

Analyse and evaluate Zara's competitive strategy and segmentation, targeting and positioning (STP) strategy in China and India. Use necessary tools in segmenting the market, selecting a targeting strategy, and developing a positioning strategy.

SWOT Analysis

Question 3:

Assess and critically discuss Zara's entry strategy and its current (at the time of the case study) marketing mix in China and India. Design a marketing mix strategy for Zara going forward in China and India.

Zara's Entry Strategy & Current Marketing Mix

Zara’s entered the Chinese market in 2006 with the location of the store was in line with its company strategy of being situated at a high-visibility commercial centre of a city. Zara entered the Chinese market through hierarchical modes by itself through its subsidiary. Zara enjoyed great popularity in the Chinese market because of its good image in the global market. Zara entered the Indian market using intermediate mode through a joint venture with a local company (Trent Limited). Its partners (Trent Limited) in India increased the speed of market entry. Zara’s unique business model has led Zara to success.

Product:

Zara is market orientation, its produces products which meet different customers’ needs and tastes. Zara has three main product lines women's wear provides trendy wear, the TRF line provides younger and more vivid products and Zara Basic offers simple and timeless apparel.

Place (Distribution):

Zara has been working on increasing its internationalization by using intermediate modes and hierarchical modes (subsidiaries) to enter the Chinese and Indian markets. Zara uses Omnichannel which provides an integrated multichannel system for consumers.

Price:

Zara used premium pricing to gain profit. Adaptation pricing has been used in the Chinese and Indian markets according to the economic scales. China is 178 and India is 153 on its pricing strategy index.

Promotion:

Zara used ‘anti-advertising’ to promote itself and its products, spending a little part of its revenue on it. Zara prefers to spend money on its clothing and stores.