H&M vs. Zara Comparing Marketing Strategies By: Heather Lynn, Shannon Bennett, Harriet Joines
Table of Contents
Introduction Zara History Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy H&M History Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy Our Marketing Plan Marketing Objectives SWOT Analysis Marketing Mix Competitors Summary Works Cited 3 4 4 5 5 6 6 7 7 7 10 10 11 12 12 13 13 15 15 17 17 18
Introduction For this term paper, our group will be comparing two companies, H&M and Zara, and their marketing strategies and taking the information we compile and developing a new marketing plan for one company. We will be analyzing each company’s marketing strategy individually and then comparing them to see which company has the best marketing strategy. From there, our team will then develop a new marketing plan for one of the companies. Both of these companies have equally done very well with their marketing strategies in the past and even better in the past year of 2008 while being under the influence of the economies downfall. Sustainability has been the main marketing strategy that has made H&M a highly successful business and continues to do so to this day (H&M, 2008). In the case of Zara, its marketing strategy consists of high turnover in which the company usually has ten thousand single items per year running through their stores (Zara: Cool Clothes Now, Not Later). With each company having a highly successful marketing strategy, our team will examine each strategy carefully and design a new marketing plan for one of the companies. The topic we have chosen to write about is important because Zara and H&M are wellknown companies that are popular amongst young consumers. These companies are focused on heavily in most of the classes we are taking, so learning about each marketing strategy will help educate us better on where they stand in the apparel industry in reference to others we know about. Comparing Zara and H&M hopefully will give us a better understanding about the two companies and how we can make their marketing strategies better. Our team will research for this paper using a full scope of the many resources available to us, in order to have the most complete research available. We will check the UNCG Library’s databases, journals, e-encyclopedias, and use the research and citation guides for this paper. For 3
this term paper, we will be specifically searching for materials related to the consumers and retail, marketing, and multicultural business fields. The most pertinent information will be located in the form of statistics, company profiles, consumer data, and trade data. Some examples of research sources our team will be utilizing are: books, journal articles, magazine articles, encyclopedia articles, business databases and miscellaneous online sources such as blog posts, and websites. Specifically we will be researching on consumer, apparel, and retail related subject guides and resources. In organizing our paper we will start out giving a brief overview of the two companies, what we will highlight within the rest of the paper, and our plan to develop a marketing plan for one company. In the following paragraphs we will give history about Zara and H&M so the reader has a visual idea of what the companies are all about. Then we will break down the marketing strategies already in place for each company. After the explanations of each strategy we will go into detail about our new marketing plan for Zara and H&M. Each paragraph about the companies, marketing strategies, and our developed marketing plan will be organized according to company name. So, all the Zara information will be grouped together and all the H&M information will be together so it is easier for the viewer to read.
History of Zara Zara’s history begins with the owner company, The Inditex Group. Inditex Group is a...