Marketing Report for Zara Case Study

Document Type:Report

Subject Area:Fashion

Document 1

Opportunities 6 2. Economic Opportunities 6 2. Increase in young population 7 2. Infrastructure 7 2. Technological advancement 8 2. Risks 8 2. Security Threats 8 2. Counterfeiting 9 2. Political instability 9 3. A recommended strategy of segmentation based on socio-cultural and geo-demographic 9 3. Geo-demographic segmentation 9 3. Rural area 10 3. Age 10 3. Income 10 3. Urban area 10 3. Age 10 3. Income 10 3. Socio-Cultural Segmentation 10 3. Social Class 10 3. Cultural Values and Beliefs 11 3. Religious beliefs 11 4. A recommended IMC for the preferred segments to support dealerships 11 4. Direct marketing strategies 11 4. Social media 12 4. Television and radios 12 4. Billboards 12 4. Magazines and newspaper 12 4. Sales promotions 12 4. Discounts 12 4. Gifting 13 4. Redeemable points 13 4. Television and radios 13 4. Billboards 13 4. Personal sales 13 5. SWOT analysis of Zara 13 6. Conclusion 14 References 16 Appendix 1 17 Executive summary To be able to venture into a new market needs a good analysis of the market to gain knowledge about the nature of the market. In planning to enter the Kenyan market, Zara will do an analyses. Among the things they will consider is looking at the opportunities Kenya offers that will enable them to conduct business there. The risks should also be considered which the things that can hinder business in Kenya are. An integrated marketing communication should be discussed. This will involve identifying various methods that will be used to create awareness about the products of Zara. Such methods that can be used include, use of direct marketing and sales promotions. Consideration will also be made to do socio-cultural segmentation and geo-demographic segmentation. Introduction Zara is a fashion icon that started small but is now known all over the world because of the quality of their products and customer handling. They have their customers in their hearts and are very fast in providing their customers with what they want at the minimum time possible.

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The report is to evaluates and analysis the risks, social-cultural, opportunities and geo-demographic associated to Kenya and a recommended integrated strategy of communication in the market for the proposed segments to support dealerships in the country. Zara is among the world’s largest companies internationally. It is owned by Inditex which is the largest fashion group in the world. The company began in 1974 by a man called Amancio Ortego Gaona. The company is located in Spain. The company has over 2,200 stores in 93 countries under the leadership of Inditex Group. Zara is popular because of their ability to develop a product and have it in the stores within two weeks. Other stores do that within six months. This aspect makes them very popular and reliable to their customers. In 2015 only, the company was able to add 65 more stores and 50 stores in their home country.

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Kenya is enjoying a growth in their economy together with so many other attractive advantages that it offers to foreign investors. This makes investing in Kenya a perfect deal. Zara only has an online store in Kenya. They want to establish a physical store in Kenya. The method of entry that Zara will use is Green Field investment which is a form of foreign direct investment. One of the reasons behind the increase is that they have they have continuously achieved a high growth in GDP. In 2016, the country achieved an increase in GDP by 6% (Horrobin, 2010). This shows that investing in the country will achieve high returns for investors. The economy of Kenya is fully liberalized. They also have free flow of trade. This will lead to an increase in the disposable income and increase in consumption.

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The young people are very likely to increase their spending on clothes which places Zara at an advantage once they set up their company in Kenya. A country that has an increase in old workforce mean a decrease in spending. Most of the old people spend most of their income saving for retirement. Infrastructure Even though Kenya has not achieved their goal in terms of road construction, they have invested a lot of money in the construction of all-weather roads. This will also ease of making transactions between Zara and consumers. Consumers can pay for their goods through M-Banking (Himbara, 1993). This kind of technology has been made by the young people in Kenya. Such technology is not even present in other countries. Risks Apart from the things that make it possible to conduct business in Kenya, some hindrances can hinder investment.

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Political instability There has been a continuity in political instability in Kenya due to the wrangles between political leaders. In 2007, there were political clashes in Kenya after the announcement of presidential results that year (Branch, 2011). Such clashes have often disrupted conducting business in Kenya because of the risk of being attacked. A recommended strategy of segmentation based on socio-cultural and geo-demographic Kenya is one country that has experienced a high population growth compared to its growth some over 60 years ago. In 1950, the population of Kenya was 6, 077, 00. while that for those above 65 years is 4. The proportion of the youths is minimal compared to urban areas. Income The proportion of people working in the rural areas are less than those working in urban areas. Urban area 3. Age The population of those below 14 years is 36.

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They are educated and can afford to have a good living (Fred, 2013). The low class are those people living below poverty level. They have also managed to take their children to school among other things. Currently in Kenya, most of the people living there are middle class. Cultural Values and Beliefs Kenya is a country that is so diverse. For instance, the Muslims dress in their buibuis for women. Understanding their beliefs can help Zara know what products to sell to them. A recommended IMC for the preferred segments to support dealerships To be able to create awareness and sell products, Zara can use a combination of methods. Direct marketing strategies These are strategies that are used by companies that involve communicating to the customers directly using a variety of media 4.

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Social media The company can market their products through social media. Discounts One of the methods of attracting customers is by offering them discounts on products that they buy. Giving discounts to a customer will make them come again and again to buy products. Gifting This involves a company giving gifts to their consumers when they buy goods of a certain worth. This will encourage consumers to buy goods since they want to be gifted. Redeemable points This is where consumers earn points every time they buy products. Their strong online presence helps them to sell their products further. Another strength is that they sell clothes that are of good quality are fashionable and sold at a cheaper cost affordable by middle-class people in Kenya. Weaknesses The company sells a generalized collection of goods.

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They do not specialize in selling specific products which can make them lose customers to those companies who are more specific. Another weakness is that they do not advertise their products. Some of the opportunities that Kenya has include good roads that will make distribution easy. Among other opportunities are an increase in young population means Zara will have a ready workforce. They will also enjoy good technological advancement. Apart from them, there are risks associated with investing in Kenya such as political instability and insecurity which makes doing business very hard. Geo-demographic and social-cultural segmentation should also be done. Kenya: Between hope and despair 1963-2011. Yale University Press. Fred, A. Segmentation of biking. Managing Emotion in Design, 81-104. F. The economy. A Guide to Kenya and Nothern Tanzania, 242-245. Maina, E.

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Effects of technological advancement in Kenya. Above 65 years 2.

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