The different points of marketing mix (7ps) between zara and canifa company

Table of Contents
INTRODUCTION.................................................................................................................................... 2
MAJOR FINDINGS................................................................................................................................. 3
Task 1: The different points of marketing mix (7Ps) between Zara and Canifa company. .....3
Task 2: Develop and evaluate a basic marketing plan................................................................ 13
2.1 Company overview.............................................................................................................. 13
2.2 The importance and value of marketing plan....................................................................... 14
2.3 Current marketing situation analysis.................................................................................... 15

High quality.......................................................................................................................................... 19
Low quality.......................................................................................................................................... 19
2.4 Marketing objectives............................................................................................................ 24
2.5 Segmentation, Targeting and Positioning............................................................................. 25
2.6 Tactics and Action................................................................................................................ 26
2.7 Allocation of Resources:...................................................................................................... 27
2.8 Evaluating and monitoring marketing plan.......................................................................... 29

CONCLUSION....................................................................................................................................... 31

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INTRODUCTION
Zara is a fashion retail brand which was founded by Amancio Ortega in 1975
with the original name of Zobra - inspired by the film "Zobra The Greek". However,
due to fear of confusion, the managers decided to change to Zara. With cheap products
but following world fashion trends and well-known brands, Zara has succeeded in
opening its first store. In the 1980s, Amancio created a new fashion trend called
"instant fashion" with changes in design and technology to meet the demands of the

customers. While high-end fashion brands focus on creating trends, Zara chooses the
shorter route: simulating designs and surveying consumer needs. Zara claims that it
takes just two weeks to develop new products and bring it to stores (while other
companies take an average of 6 months) and launch 12,000 designs a year. Today, Zara
is managed by Inditex Group and has 1,763 stores worldwide (Ngoc. B, 2017).

Figure: Zara store
(Source: The Irish Times, 2017)

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MAJOR FINDINGS
Task 1: The different points of marketing mix (7Ps) between Zara and Canifa
company.
1. Product
Zara Viet Nam: Zara is a clothing brand provide trendy cloths and accessories
(sunglass, belt) mimic form another famous brand like Lious Vuitton, Gucci,
Balengacia with affordable prices.
According to report from Mirror (Mirror.co.uk, 2017) the Gucci velvet bag cost 1,260
euro which incredibly expensive you can purchase a Zara version of bag with
significantly less hefty which cost 60 euro.

(Mirror.co.uk, 2017)
Zara is a fast fashion brand which target people with short income. However in Viet
Nam Zara is became a choice for middle class people with income for more than 10
millions dong per month because a product from Zara in Viet Nam will fluctuated
around 5 hundred thousand dong to four million dong. For material to manufacturing

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their product, Zara used untreated material like cotton, they used organic cotton,
recycle fabric, recycle polyester. For their purpose and assurance that they product are
safety to environment and consumer and choosing those raw material can help decrease
the negative impact on environment and variance of biodiversity (Zara.com/vn).
Furthermore, Zara committed that do not produce product used animal leather or bone,
Zara has a contrast with animal protection organization Fur Free Alliance and retailer
program that animal fur free( Fur free retailer ) to prevent the exploitation from animal
( Inditex.com ). Zara Viet Nam products are varied from aged and gender they has
categories for man, women and children and each sector they divide a diversity for
cloths like t-shirt, shirt, suits which is very popular strategy of clothing brands .

In addition Zara Viet Nam after you purchase products, employee with package your
product in to a memorable design back like with their brand’s logo in the center.
According to Veronica Maria Jarski Marketingprofs.com with a remarkable packaging
your sales can increase to 30% and can lead consumer to impulse buying and capture
new costumer. And having a hackneyed logo to customer can easily to watch can help
building deep rapport with costumer.
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Canifa: Canifa is a clothing brands from Viet Nam which know for produce a usual and
formal cloths and accessories for middle class people which price from two hundred
thousand dong to one million dong. In addition, Canifa also hit a large amount of
costumer because their products are variances for man, women and children.

(Canifa.com.vn)
Compare to Zara, Canifa also manufacturing product which convenient and popular
among Vietnamese people like the cloths which prevent people from harmful sun light
and special function cloth like heat keeping cloth, another diffident from Zara that

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Canifa used animal product which is goat and sheep fur to manufacturing their product.
In the segment for children Canifa only has the products for children who under 10
years old which Zara divide their product for children form 3 month to 15 years old.
Compare to Zara, Canifa also have their design packing however, this type of design is
ordinary and do not bring significant effect like Zara
2.

Place:

Zara Viet Nam:
Zara Viet Nam has two retailers stores in Ha Noi and Ho Chi Minh they choose a
well know supermall in Ha Noi where in center point in Ha Noi is Vincom tower, 191

Ba Trieu, Le Dai Hanh, Ha Noi and VINCOM CENTER, 72 Le Thanh Ton, Ben Nghe,
District 1, Ho Chi Minh city. The reason behind that Zara Viet Nam chosen is Zara
philosophy of Zara strategy in business is the distribution channel is the most important
one to raise the awareness in costumer mind is they concentrated investment on the
place that extremely popular and have a strong position in costumer mind like Vincom
center. In reality Zara Viet Nam has to pay 96 billions per year to hire a place at Vincom
Center in Ha Noi (zing.vn, 2017). Zara Viet Nam also establish online purchase and
deliver around Viet Nam in 5/4/2017 (cafez.biz, 2017). The process is you choose your
product you want to purchase, and the way you want to pay and your address, and Zara
Viet Nam will deliver it to you.
Canifa: Compare to Zara, Canifa also chose a ideal location to set up their store in
Ha Noi and another city in Viet Nam. In fact, in 2016 Canifa has 68 stores all over in
Viet Nam. Unlike Zara, Zara has to import products from another country, Canifa has
their own factory in Viet Nam and they manufacturing their product and delivered to

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each retailer stores ( cafebiz.vn, 2016). Familiar to Zara Viet Nam, Canifa also has a
online channel to sale their products the process is indifferent to Zara Viet Nam.
3.

Promoti

on: Zara Viet
Nam:

Zara Viet Nam do not spend money on advertisement in internet or social media

advertising , they focus on stores’s location. For instance, they chose a recognizable
place in center of city and they place they store near to another famous clothing brands
that are spending a lot of money on advertisement like Gucci or Nike. Zara in Ha Noi
takes a place in Vincom tower in Ba Trieu which is a place extremely well-know about
Vietnamese people and their store are next to Adidas and Nike retailer. Another factor
that make Zara Viet Nam has a strong position in customer mind is their refund policy
for customer. If you purchase a product from Zara Viet Nam you can give it back to
their store and receive your money back in 30 days in the case that the goods are stable,
laundry free and the price tag are untouched.
Canifa:
Compare to Zara Viet Nam, Canifa also locate their store in crowed and
recognizable street in Viet Nam their most famous stores on Hai Ba Trung, Ha noi.
However, Canifa expand all around Viet Nam from north to the middle with 68 stores
which makes their coverage ration overwhelm Zara Viet Nam. In addition their use the
close member policy which provide a customer a account that provide points for
customer from their earlier purchase so they can use that point to get an discount form
later purchase. They also coordinate with famous bank (Vp bank ) to capture costumer.
For instance, if you are a costumer of Vp bank you can get a discount 5%

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from Canifa. Contrasting to Zara Viet Nam, Canifa advertsing massively on internet
and social media. Furthermore, they used a method that can track the internet user Ip
and the advertise brand follow them until they are click to the link which is the website
of Canifa.
4.

People

Zara They are not very important in their recruitment but they are very interested
in the fashion and development history, website, stores and business of the
company.They are honest, accurate and friendly.They can give customers the exact idea
of the costume they want to wear at zara.
Canifa: The company always has full and fair treatment for employees of the
company. They always have salary and bonus policies but most of these policies are
more favorable to high-ranking people. This is also a big problem for the management
of many companies.
5.Process
Beginning from a little Spanish store in 1975, Zara now possesses in excess of
2,200 stores in 93 nations around the globe. By 2016, over the dreary retail advertise,
ZARA proceeded with great development with incomes of $ 15.9 billion. So what
weapons do Zara progressively rule the design showcase? It is the business reasoning
of "quick mold" is interesting in this enterprise. Business rationality "quick form"

Not the same as the customary retail form demonstrate, Zara works its own "quick
mold" business reasoning with three principle thoughts:

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- Short time: Compared to a normal of a half year, Zara just takes 2 weeks to put a plan
thought into the item to the customer. So Zara is continually making up for lost time
with the most recent design patterns.
- Small amount: Each example of Zara items will be created in the base amount. This

dodges the danger of stock, while making an "imposing business model" feeling that
design aficionados are constantly eager for.
- Styles: Zara dependably makes conditions for its representatives to be innovative and
not apprehensive of oversights. With brief time and little amounts, Zara's new models
dependably get moment input from the market with negligible stock. Therefore, an ever
increasing number of new outlines will build Zara's odds of achievement.
This "quick form" logic is reflected all through Zara's inventory network, from buying,
producing, to warehousing, appropriation and retail.
Buy:
ZARA supplies input materials from numerous providers in Spain, India, Morocco and
the Middle East with the assistance of workplaces in Beijing, Bacelona, Hong Kong
and staff at the home office. About portion of the textures are obtained in a non-colored
express that can be adaptably changed in one design season. Also, the testing
framework and workshop are constantly worked in close co-activity with the plan
office in Spain to guarantee the quality and speed of inspecting at the most elevated
amount.
Assembling:
ZARA's creation procedure completely embraces the Just In Time (JIT) rule: "The
correct item - the correct amount - at the opportune place - at the perfect time." In JIT,

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non-esteem included procedures must be nullified. Zara has constantly kept up that the
plant claimed by the enterprise keeps up the capacity to create over 85% of the market
request, which enables Zara to control the sum, speed and outline of the item.
Furthermore, to be adaptable even with new design inclines, Zara's processing plants
just work 100% of their efficiency in 4.5 days for each week, which can be extra

minutes. More than 200 of Zara's originators discharge in excess of 12,000 new models
a year, with patterns following patterns Stockroom and circulation:

Stock inventories represent under 10% of Zara's stock, contrasted with a normal of 1720%. Zara dependably safeguards that every one of its retail stores dependably gets
the required amount of items. This fortifies the picture of "constrained amount" and
limits stock. Actually, Zara's store network handles in excess of 450 million items
every year, with new renewal cycles the world over twice per week! With quick
conveyance and low inventories, each Zara representative (from configuration to
acquiring, assembling and retail) is well on track and altering their work as needs be.
Furthermore, with Zara's clients, this inspires them to shop always to get a handle on
the most recent patterns in the market.
Retail:
Zara does not put resources into PR, but rather centers around building a chain of stores
with complex show and area, worked by a group of planners and engineers.
As indicated by a current report, ZARA has kept up a normal 15% markdown on the
item sold, contrasted with 30-40% of the market. Finish up:

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Numerous organizations need their store network to have the essential objective of
decreasing expenses. With Zara, the inventory network must work at full speed, in this
manner expanding income to take care of work costs, transportation and in the
meantime guaranteeing consumer loyalty.
Zara's prosperity so far has dependably relied upon the organization's business
reasoning and how to work this exceptionally uncommon production network. What's
more, the "quick mold" logic has changed Zara from a design retailer to wind up a
contextual analysis of current business.

Canifa: Canifa clothing is gaining popularity across supermarkets and stores across the
country. We can clearly see the difference between the quality of clothing, the price and
the attitudes of the staff. The price of each item should be equal to the amount paid.
This is an issue that Canifa should modify in the future.
6. Physical evidence
Zara's store always gives customers a sense of luxury and elegance. Well-dressed men
and women with black suit and white shirt. Zara stores are always focused on the
customer experience when it comes to the store. If customers buy items that do not
like, they It can be returned to the Zara store and the entire amount of the
purchase.That's what Customers like about Zara.
With the adage of "Without a moment to spare", ZARA is accelerating the item cycle
up to 300% contrasted with contenders like H and M, Gap.
Canifa: The cannibals' shops always look very prominent and eye-catching to help
customers recognize and distinguish.The Canifa’s four core value are Respect,

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Honestly,Sharing and Creation.Customer believe Canifa is the place where they can
buy clothes for the family.
7.

Price

Zara: Price level of Zara is relatively high compared to other fashion shops in
Vietnam. For example, customers buy a tank top which is 199.000vnd compared to
99.000vnd or lower in other shop. Fundamentally, this high price is to cover the renting
cost (mentioned in the place part), labour cost. Zara’ price is a result of the business

strategy and the product differentiating based on the consumer mainly on the young and
modern customers who have high salary. In fact, Zara have a brand name in Vietnam
customer’s mind. The factor to set a price is also customer perceptions of value. What
is value of a product? It is when you look at the price you can guess the quality of this
product. In Vietnamese's opinion, they always believe that the higher price the higher
quality. The customer satisfaction comes from the product itself. Therefore, the
company should increase the product benefits. It is the reason why the products of Zara
rarely sale off. Good pricing strategy will helps a company determine the price point at
which a company can maximize their profits. Zara used psychology pricing. They use
199.000vnd instead of 200.000vnd. One explanation is that consumers will pay more
attention on the first number on a price tag than the last. (April Magurie). There are
some pricing" tricks" are used by Zara. Firstly, they don't use commas at price. They
use "1.999.000vnd" instead of "1,999,000vnd". Secondly, they display red prices to the
products on sale to attract the customers. Because red is an attractive colour, especially
for men.

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Canifa: We found out the price of Canifa is lower than the price Zara. For example,
a tank top is sold 99.000vnd in Canifa compare to 199.000vnd in. As indicated in the
product part and place part, Canifa possesses the price differentiation strategy; they
produce many different products for different people in Vietnam to maximize profit by
covering the entire market segment. They are not positioned in the high-end segment
but choose the right price for the majority.

Task 2: Develop and evaluate a basic marketing plan
2.1 Company overview

Vision: “Through Zara’s business model, we aim to contribute to the sustainable
development of society and that of the environment with which we interact”. Zara’s
parent company – Inditex has made a word of honor to make stores completely green
efficiency by 2020 (Inditex, 2018).
Mission: "ZARA is committed to satisfying the desire of our customer. As a result we
pledge to continuously innovate our business to improve your experience. we promise

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to provide new designs made from quality materials that are affordable”. Zara always
tries their best to bring customers unique service, experience, designs at a affordable
price. Zara prefers to please all customers, even they are the one who is hard to please
(Inditex, 2018).
After over 40 years of operation, Zara has gained many achievements. Zara has
officially joined in Vietnamese market since the beginning of September, 2016 with a
store in Ho Chi Minh City and it set a record owing to the huge revenue within the first
2 days of opening in Vietnam. Zara’s warehouse is even 9 times larger than the one of
Amazon – the world’s largest page e-commerce retail. With around 6500 stores in 88
countries, its revenue has reached billions of Euro.
2.2 The importance and value of marketing plan
For Zara, the marketing plan creates many values and important impacts on the
reputation of the company and also the products.
Enhance the development of product: by doing market research, Zara is able to
determine target customers and form the marketing strategy. Zara has always
created and innovated products. These new products will create something new for
customers and attract new customers (Sam. E, 2018).
Price determination: based on the marketing strategies, the appropriate price of

Zara products is set based on the business strategy. Although Zara is a fashion
brand with low price, this level of price is still quite high compared to general
income of Vietnamese people. Therefore, its target customers are at the ages of 15
to 40 with high income.
Effective distribution: the marketing plan has a big impact on the distribution
channels system of Zara to maximize the marketing effect.
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The impact of the organization: when Zara sets marketing plan clearly, all divisions
of the company can work together more consistently and efficiently. For Zara,
building up a marketing plan helps the products to have higher quality and value.
2.3 Current marketing situation analysis
Current marketing situation analysis is a significant step in marketing plan, it consists
of Internal Audit, External Audit and SWOT.

Figure: Marketing Audit Evaluations
(Source: Kalyan City Life, 2013)
a.

Internal Audit

According to Investopedia, “an internal audit is the examination, monitoring and
analysis of activities related to a company's operations, including its business
structure, employee behavior and information systems”. In order to understand
clearly the internal audit of Zara, the McKinsey 7S model is used.

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Figure: Mc Kinsey 7S model
(Source: Themanager.org, 2014)
Structure: Zara uses international structure to capture the attention of
customers owing to its unique and effective structure of business (Katya.
P, 2009).
System: Zara appreciates their systems, particularly the product system that
includes the process of training employees to produce products and
serve customers.
Skills: one of the strengths of Zara is that they own professional teams. Zara
prides themselves on the growth and development of employees. They do
training and carry out Internal promotion programs so as to maximize
creativity and build professional teams (Inditex annual report 2015).

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Staff: The company recruits many young talented employees and they are
willing to give those employees responsibility. Moreover, they even
encourage risk-taking culture with the aim of training staffs. Therefore,
Zara’s human resource becomes very professional (Martin Roll, 2018).
Style: Zara attaches much importance to the conversional management style
to create direction and motivation for employees. This style of
management helps the company make the consistency in all divisions. It
brings connection among staffs to complete all objectives (Essay UK,

2018).
Strategy: mission of Zara consists of providing customers with satisfaction
and making customers know the distinguish points compared to other
brands. These 2 components are collected as the general business
strategy of Zara (Tough Nickel, 2018)
Share values: One of the values of Zara is the sustainable development. They
make a claim use to all stakeholders, including both the supplier and
customer.
In addition, due to the business pattern of Zara, everyone can dedicate
themselves for the sustainable growth of community. Zara commits to
apply a wide range of measures with the aim of protecting environment,
biodiversity and the ecosystem. Furthermore, the company also
minimizes the amount water spending and unrenewable resources
(Inditex, 2018).

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b.

External audit

Micro environment: to analyze the micro environment of Zara, the Porter’s
Five Forces tool is used

Figure: Porter’s Five Forces model
(Source: Strategic Management, 2013)

- Competitive rivalry (strong power): when Zara joins Vietnamese market, they
have to compete with a lot of fashion brands that are running business in Vietnam
such as Canifa, GENVIET, H&M, Mango and so on. These competitors are also
very strong and have a quite big amount of market share. Moreover, Vietnam is
becoming a attractive market to big brands because of the high economic growth
rate and the increase in the income of citizen so the competitive level is also

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increasing (Brands Vietnam, 2017). Therefore, Zara creates their own strategy to
attract customers.

igh quality

Positioning map

ZARA
MANGO

H&M

CANIFA
High price

Low price

ow quality

GENVIET

- Bargaining power of customers: Vietnamese customers are easily able to
purchase products from other fashion brands instead of Zara because there is
such a lot of designs from competitors with high quality and cheaper price that
are available.

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- Bargaining power of suppliers (low power): for Zara, suppliers do not have
much power because Zara follows “7 rules of fashion supply chain” which
includes: producing in small quantity, focuses on design and product
development, taking advantages of work cell organization, control schedule,
manufacture in-house, automating production and warehouses and obey all rules
(Ben. B, 2017)
- Threat of substitutes (weak power): clothes has many uses, not just to keep
warm. In clothing industry, substitute goods are weak issues because good
substitutes are unavailable or poor quality. However, customers still have another
choice that is to use tailoring service. But this service does not usually satisfy
customers’ desire owing to taking much time and not trendy so there are just a few
customers use it.
-

Threat of new entrants (high power): the fashion retail industry has been developing
quickly, this attracts new entrants. Therefore, they compete strictly by bringing

customers good offers such as discount, give vouchers, after sale service.

Macro environment: to analyze macro environment, PESTEL is a helpful tool.

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Figure: PESTEL tool
(Source: Oxford College of Marketing, 2016)
PESTEL has 6 elements which is: political, economical, social, technological,
environmental and legal.
- Political factors: when it comes to political factor, it mentions about Government
intervention. Each country has different regulations and the government can change
policies so Zara needs to research carefully before entering any market. The
company must be aware of the commercial system of the nation where they are
operating in, as well as understand import, export law and other policies. For
instance, Zara might have to pay a fine bccause workers had to work in poor
working conditions (Butler, S. 2015). The management system must concentrate on
the political factor so as not to break regulations.
- Economical factors: the company ought to research thoroughly the economic
growth rate of countries so as to gain knowledge to make correct decisions.
Vietnam is in

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