Marketing Strategy for Asos

Exclusive Summary

The objectives of this marketing audit are to evaluate and analysis ZARA and ASOS and to identify the factors underpinning the positive performance of the Zara in growth and the poor performance of the ASOS in decline. Based on this situational analysis, this report will develop a range of retail strategies to turn the poor performing business around – from decline to growth. The report is divided in three parts. First, Zara will be internally investigated from its current position – macro environment – P.E.S.T analysis: Political, Economic, Sociocultural and Technological. Next, the report will identify ASOS’s macro environment trends (Political, Economic, Sociocultural and Technological) that affect the poor performance. Following this, the external opportunities and threats that are defined based on PESTLE, as well as the internal strengths and weaknesses that are outlined from the company analysis, are summarized in SWOT.

Finally, according to the situation analyses in the previous section, several retail strategies will be developed for ASOS to turn its poor performance around.

1. In-depth situational analysis of Zara

• Overview of Zara

Zara is a vertically integrated retailer, controlling the supply chain, design, manufacturing and distribution of all its products worldwide. Zara currently has 1,751 stores worldwide.

• Economic factors

Since Zara operates world-widely, effects of regional economic crisis could be avoided at some level. In the last few years of worldwide economy fluctuating, even though the euro is depreciating, Zara successfully gain market shares and has not been affected by the recession. They bucked the trend by making productions inside Spain or other European countries, as they own a large number of factories in both Spain and Portugal, there is no need for them to outsourcing and thus could gain maximum profits by launching products overseas.

• Social factors

Zara operates based on consumerism. Especially Zara targets environmentalism consumer, which is an important group of consumer where other retailers haven’t realized. Zara presents energy saving and eco-friendly stores by creating less waste and continuing recycle. Zara also uses ecological fabrics and organic cotton; manufacture PVC-free footwear and transporting product by using biodiesel fuel. All of these actions are attempting to eliminate consumers’ environmental concerns toward Zara’s production. Thinking for the consumer and thinking