Analysis of zara s fastfashion retailing strategy with fit shelley e. The product strategy and mix in zara marketing strategy can be. Marketing problems and issues faced by zara marketing. Zara s case study zara is a fashion label and fashion chain stores established in 1975 by the spanish group inditex own by amancio ortega. Zaras social media strategy how they delight their. Zara comparing marketing strategies by diana joines. It avoids advertising in order to cut down on costs. How zaras winning strategy is disrupting the indian. Unlike its competitors, zara does not engage in advertising or team up. This is significantly less compared to the industry average of 34%.
The companys strategy involves stocking very little and updating collections often. Next to zara, the rest of the labels the groups own are bershka, massimo dutti, pull and bear, stradivarius, oysho, zara home, zara. Zero investment in marketing helps the brand in utilizing advertisement money in opening of new stores across the world. Zara has followed an optimal combination of all these. Zara uses anonymous models to advertise their clothes, the company has not hired any star designer, but relies on the talent of designers mostly women young and unknown. Implementation issues executing above discussed available opportunities is very challenging. It is about putting the right product or a combination thereof in the place, at the right time, and at the right price. Each paragraph about the companies, marketing strategies, and our developed marketing plan will be organized according to company name. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Pdf analysis of the keys to zaras inditex successful. If you think zara does not do marketing, think again. Zaras secret to success retail its pricing strategy. Rather than setting fashion trends, zara rides the wave of whats currently hot and established to provide affordable copycat versions of highend.
In comparison to the other players in the market zara makes it new product. Evangelism is now promotion and every place is the new place. Fast fashion is a concept that describes the quick phase at which fashion retailers capture current fashion trends based on recent major fashion shows. Competitive advantage in the marketing strategy of zara strong parent company. A half a century later, it has become own of the worlds fastest growing manufacturer of affordable spanish fashion clothing. Pdf analysis of the keys to zaras inditex successful business. Promoting word of mouth advertising through social networking sites these can. Strong international presence with more than 2,200 stores in 96 countries 1 3. This notion is very important in the zara strategies, the company only produce very small batch of collection. Zara is going to expand its domain in future hence, must focus on building strong relations with the customer through choosing appropriate marketing strategies. Zara marketing strategy zara is the oldest, most internationally established company of the spanish retail group inditex sa.
This case study has the objective of study zaras strategies, from their. Zara marketing mix 4ps zara marketing strategy mba. As we noted before, the marketing mix is predominately associated with the 4ps of. In consideration of promotion, zara is parsimonious with advertising and discounts. Zara having the edge in the market has umpteen options readily available to it. As a result the marketing strategy thatis employed by inditex for zara is to open stores and outlets that provide the zara experience at highprofile locations to set the image of the brand as being trendy, hip, high fashion and accessible. Inditex and zara own 22 factories in europe 18 in spain, and contrary to competitor did not outsources the core business clothe production. Another marketing strategy of zara is focuscost strategy 3. The main promotional strategy of the brand is to emphasize its efforts in searching for differential. Zhang mengqi, renata doralieva, anthony guerin zara zara does not simply follow trends, it creates them by carefully exploring what their customers are demanding marketing plan zara lecturer. Case study of online retailing fast fashion industry. Zara is popular amongst old and young generations too because it is affordable fashion.
Pdf zara marketing plan alan pozo rosadio academia. Zara brandingwherever you go shopping in the world paris avenue des champselysees, new york fifth. Instead of spending on advertising, zara positions itself in primary locations, invests more on store layouts and shortens its leadtime. Read this it hardly even has a marketing department, and it doesnt engage in flashy campaigns, as its competitors do, teaming up with fashion designers like. Marketing mix of zara zara marketing mix and 4 ps of. The strategy in marketing and advertising of zara contemplates not to use a image of famous figure, either model, actress or singer unlike other brands. In other words, the concept describes how trends move from the catwalk to major retail stores. Their twitter strategy centers around conversing with their customers and proactively responding to their queries and concerns. It uses the unusual strategy of zero advertising and instead invests the revenue in opening new stores across the world. The marketing and advertising strategy of zara telling. Zara has used almost a zero advertising and endorsement policy throughout its entire existence, preferring to invest a percentage of its revenues in opening new stores instead. Product development strategy is well planned at zara and this helps the fashion store to attract the fashion conscious customers.
Due to zara having a word of mouth advertising strategy they were not ordinarily advertise on tv, even though this might be seen as a missed opportunity, appealing to the generation y segment. The key difference lies with the fact that zara spend almost nothing on advertising, but rather focuses their brand communication strategy on real estate and word of mouth kalb, 2016. By focusing on shorter response times, the company ensures that its stores. Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. Zara vesture is a portion of spanish based inditex group, launched in 1975. The way zara has runs its company is by following a vertical integrated. Thank you analysis zara is part of the multinational group inditex value proposition and message particular strategic position towards marketing obtaining new customers and motivating them to purchase. Consequently, zara has become spains bestknown fashion brand. Lopez, c and fan, y 2009 internationalisation of the spanish fashion brand zara, journal of fashion marketing and management, vol. Normally it takes 6 weeks time for a new fashionable product to be launched in the zara store but they ensure that new products are continuously available so that the customers can come to the store at regular intervals. To get the wanderers back on the marketing path, i hope to explain how zara does a lot of marketing, and advertising too. Globally 24 th most valuable brand with the brand value of more than 18,5 billion 2 4.
Products have been characterized into three major parts i. Analysis of zaras fastfashion retailing strategy with fit shelley e. Zara is among the leading names in the world of fast fashion. Zara controls most of the stages on the chain supplying, designing, manufacturing, and distributing its products 2. Zara is an extremely renowned brand, known for its latest designs and is among the top 100 best global brands in 2010. It doesnt have expensive design, advertising and raw material costs. Zara is the groups most geographically diverse retail concept with 80% of its full line stores located outside of spain. The marketing strategy of zara is observed to be the most exclusive and unique one. Spains inditex, the owner of zara fashion brand, saw the brands net profit surge more than 70 percent in india in 201718, even as the worlds largest fashion group grew at one of its slowest rates in the country amid increasing competition from global rivals. The products of mango are also similar to zara s in style, pricing and quality, however, mango is very different from zara in organizational strategy as mango is based on a franchising system, and in marketing strategy, relying heavily on advertising campaigns. Zara positions its goods as highend products with low price.
Brand communication strategies zara brand analysis. The difficult part is doing this well, as you need to know every aspect of your business plan. Zara, in contrast have 6% of its online offering discounted a much subtler approach, and only 9% of the offering discounted by 50% or more. Inditex trent, which runs twenty zara stores in india. The brand has grown fast in terms of market size, global presence and sales and revenue. After reading one or two of them, most that do not know the underlying marketing fundamentals of zara will be similarly mislead. Marketing mix of zara analyses the brandcompany which covers 4ps product, price, place, promotion and explains the zara marketing strategy. I will do this organizing its strategies according to the seven fundamental building blocks. It is now in 93 countries with more than 22,000 stores.
These factors enable zara to adopt low pricing strategy. Strategies vs consumer perception of brand zara india. Inditex, the parent company of the brand zara have a strong portfolio of 8 brands which is helping the company in nurturing each brand with its experience and strong financial base. Marketing strategy of zara zara marketing strategy. Generic and intensive growth strategies of zara fashion. Zara was recognized as its firstclass image, secondclass production and thirdrate price. Unlike its competition, zara had never pursued an intensive advertisingbased strategy, focusing more on consumers demands and their. Zara is a popular spanish clothing store that uses a very clever marketing strategy to achieve its business goals. The first marketing strategy of zara is direct sales mode. In comparison to the other players in the market zara makes it new product available to its stores in just two. It is a highfashion concept offering apparel, footwear and accessories for women, men and children. Zara a strategy of just in time, and consequently have zero stock.