MARKETING MANAGEMENT

Zara is the world’s third largest Spanish clothing retailer, which is part of the group Inditex. Its founder is Amancio Ortega, and was established in 1975 in Spain. Initially, Ortega introduced the company as Zorba in La Coruna, which is in Spain. He started off the company with the budget of Thirty Euros. Later he went on to change the company’s name by Zara. It is now established in 77 countries, with 5.044 stores around the world, including 1.516 Zara stores (Inditex’s website, 2011). Amancio Ortega is now the fourth richest man in the world.  The success behind was that it kept providing customers with new changing street fashion. Its main objective is to offer latest fashion trends in minimal price. Zara’s business strategy is unique compared to other long- established merchant because the company has several strategies than the other fashion retailer do not have. Fashion director Daniel Pettie describes that Zara has become most innovative and creative retailers all over the world.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Objectives

Zara’s main objective is to offer latest fashion trends on affordable price in every geographical region.. Zara’s another objective is to expand their business in different countries and continents such as Latin America and Asia. Recently, Zara has set one more objectives that it is willing to help the sustainable developments of the society and the environment in which it interact.

 

 Marketing  Strategy

marketing strategy is unique compared to other long established merchant because the

company has several strategies than other retailers do. Their strategy is that they display limited

number of product on stores and remove it after few weeks which make customers to buy it as

soon possible or it may sold out. In recent times, fashion trends encourage people to be unique

so they seek for designer, vintage and fast fashioned product Zara restock with new designs two

times of a week. Zara is more concerned with finding the exact retail site that best suits the

company rather than spending the extra money on luring customers into the store (Dutta,2009).

Zara focuses more on window display and renovating stores it is one of the strategies to promote

their product.

 

 

Customer STP

Zara’s segmentation of customers who are most appreciated is on a demographic point of view, a female women up to 35 years of age, who prioritize fashion as lifestyle, who earns up to $60k per year and graduated school Zara has clearly segmented itself into many regions and Inditex has started to work with various clothing line designers such as Bershka and Massimo Dutti in addition to Zara. It shows that their intention is to segment consumers according to their various tastes towards clothing as well as pricing preferences. Zara mostly attempt to target young teenagers, which are looking for stylish clothing with cheaper price because many do not earn their own income. As they have positioned them as a low cost brand but also recognized aa one of the popular brand among the young people as well constant profit making brand in the world.

 

Marketing Mix

Promotion

In the competitive clothing industry, Zara has successfully built a worldwide famous brand by a unique management system of design, production and supply most fashionable clothes to their customers and the always renewing collections definitely help build a brand loyalty. The “fast fashion” concept and operation allow Zara to always provide the most fashionable clothes to their customers and the always renewing collections definitely help build a brand loyalty. It is now focusing on online shop to improve their productivity.

 

Price

Zara main concept is to provide reasonable price to its customers. Zara is providing fashion for people with a lowerincome; therefore the prices are very reasonably that everybody can afford it.

 

Product

Zara’s position in the affordable fashion industry clearly states it’s not a luxury brand. The target customers are eager to purchase fancy fashion while still sensitive to the prices. They want to be different and unique. The most important thing is that Zara produces more quantities

of styles. Zara will also consider new product and develop features such as a product line for a charity or VIP presents in its collection.

 

 

 

References

Harbott, A. (2011).Analysing Zara’s business model, Retrived from http://www.harbott.com/2011/03/03/analysing-zaraz-business-model

History of Zara. (2008). Retrieved November 3, 2009, from Zara-Clothing: http://www.zaraclothing.net/history-of-zara/

Inditex. (2012). Annual Report. Inditex.com. Retrieved from: http://www.inditex.com /documents/10279/18789/Annual_report_2012.pdf/1f394d3f-55cc-49b8-af13- 14f87f8da3de