An assignment on

“A Case Study of Zara

Submitted To:

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Md. Afsarul Islam

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Senior lecturer

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Department of Business administration
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Metropolitan University, Sylhet.
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Submitted By:
Rayhan ahmed
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Batch: MBA 35th (Regular)

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Id No: 192-121-009
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Department of Business administration

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Metropolitan University, Sylhet.

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Date of submission: 24th March 2020

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 1. SWOT analysis for Zara:
Strength:

1. It is world’s largest clothing merchants.

2. “Fast fashion” They can develop products, manufacture and distribute them in stores
within two weeks.
3. It has strong customer relationship.
4. It has worldwide publicity.
5. Wide variety of products.

Weakness:

1. Lack of marketing communication,

2. Insufficient advertisements compared to their competitor.

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3. Lack of e-commerce.

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4. Simple products.

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5. Limited quantities and limited editions.

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Opportunity:
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1. Opportunity for worldwide expansion by its has been known as renewed brand in the
globe.
2. Increase for high consumer demand.
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Threats:
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1. Local competitors.
2. Fierce competitive.
3. Online competitor.
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4. Recent economic crises around the world reasons COVID-19.

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Opportunities to expand their business:

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1. Environment: Understanding of the business environment is essential for companies in

competing in the global economy. It is important in relation to international strategy. The
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political, economic, social, technological, environmental and legal events that have
impacts on a business.
2. Market segmentation: Market segmentation aims to provide relevant information for a
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basis for the selection of target markets. Zara’s targeted customers are people who seek
for higher quality clothing products at reasonable prices. They should
segment. s one of the most famous and successful European brands Zara in its existing
south American market targeted people who were especially interested in European styles

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 at affordable price levels. This targeting strategy remained the same for Zara in
expanding in the North American marketplace.

3. Price: Price is argued as being an important indicator for customers in evaluating the
quality of products and within the clothing sector this also holds true. Affordable pricing
system can be better opportunity for zara.

2. The extent I think that Zara uses a successful relationship marketing

approach:
Relationship marketing, with its focus on fostering the relationship between the firms and the
customers, assures mutual benefits for both firms and customers, with its focus on fostering the

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relationship between the firms and the customers, assures mutual benefits for both firms and

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customers. They have focus on instead on retaining their current customers, especially in low-

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growth markets. In order to do so, fashion retailers must utilize relationship marketing to create

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stable relationships between the companies and their clients.

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Communication is the way to maintain relationship with the customers. Zara is a successful story
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of using customer relationship marketing to enhance its brand and keep updated with its
customers.
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In its relationship marketing strategy, Zara adopts both standardization and adaptation of its
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marketing mix to achieve the most effective outcomes. Although standardization is argued to
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bring great benefits including high sales volumes, lower costs and more integrated images, in the
global market, it is almost impossible to standardize all parts of its marketing mix, and a
company needs to adapt to some extent.
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Zara has created long lasting and mutually beneficial relationships with its customers. The
company efficiently compiles information about its customers based on their purchase and other
demographic characteristics, determines their customers’ likes and dislike, and predicts their
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future behaviors.
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3. Tactics of relationship marketing to retain the customers of Zara and

mentioning the logic behind my answer.
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There are several types of marketing tactics that are essential for any business organization. But I
think the tactics “Listen to your customer” can be useful to use to retain the customers of zara.
Many organizations failed to operate because they didn’t listen to their customers that what
customers expect from the organization. So that’s why a gap automatically has been created
between the company and customers. So zara listen their customer about their choice and

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 updated knowledge they can retain their customers. Customers will happy to that company wants
to know about customers perception. As result customers also will be loyal t the company. There
are many opportunities will be created for the customers. Listening and responding to
compliments can be beneficial. By listening to these concerns, zara can ensure that their
customers feel valued. Plus, if they learn what people love and dislike about themselves, they can
leverage the feedback to improve their business.

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