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Zara - a marketing strategy redefining retailing

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Marketing strategy of leading fashion brand ZARA.

Published in: Marketing
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Zara - a marketing strategy redefining retailing

  1. 1. Redefining Retailing
  2. 2. “ P O S S I B LY T H E M O S T I N N OVAT I V E A N D DEVASTATING RETAILER INTHE WORLD” DANIEL PIETTE - LOUISVUITTON FASHION DIRECTOR
  3. 3. HISTORICAL BACKGROUND Cofounded by Amancio Ortega & Rosalia Mera, 1975, Spain Europe’s leading apparel retailer Hold a brand value of $8.7 bn More than 5900 stores in world
  4. 4. INVENTORY OF ZARA Women’s Men’s Zara Kids Zara footwear
  5. 5. WOMEN'S
  6. 6. MEN’S
  7. 7. ZARA KIDS
  8. 8. ZARA SHOES
  9. 9. ZARA’S STORE VALUES # Adapt quickly to fashion in demand # Improve quality # Sell modern design at affordable prices # Have a perfect distribution system
  10. 10. ABOUT ZARA One of largest international fashion companies. Belongs to Inditex, world’s largest distribution groups. The customer is at heart of business model which includes design, production, distribution and sales
  11. 11. COMPETITORS
  12. 12. SEGMENTATIONTARGETING STRATEGY Demographics of customers like gender, psychographics and age
  13. 13. PARITY POINTS International recognised European fashion brand Prime retail location
  14. 14. POINTS OF DIFFERENCE Fast fashion Exclusivity Understanding customers needs
  15. 15. ZARA’S BUSINESS MODEL
  16. 16. BEING ABLE TO O F F E R NEW ITEMS THAN WHAT SELLING IN O T H E R STORES. REDUCE THE LEAD TIME FROM DESIGN TO DISTRIBUTION.
  17. 17. DESIGN AND PRODUCTION
  18. 18. # Employ hundreds of employs at its headquarters # Speed fashion - Production houses near Spain # High control of manufacturing process “WHAT’S HERETODAY MAYBE GONE IN 2 WEEKS” —NYTIMES
  19. 19. LOGISTICS
  20. 20. Delivery across the globe Rapid delivery system Having 50% of production units is key to its success model
  21. 21. CUSTOMERS
  22. 22. Customers needs are addressed with daily reports from ZARA stores managers Customers feedback - good or bad- is reacted with immediate effect
  23. 23. STORES
  24. 24. ZARA never runs an ad campaign ZARA stores are themselves ad elements Spend only 0.3% of revenues in ads Helps save revenue for the company
  25. 25. ZARA’S UNIQUE BUSINESS MODEL AND OTHERS Zara stocks clothing in scanty quantities.They don’t order more stock in. “They’ve trained consumers not to wait for it to go on sale,” Zara’s factories are based in Europe, new designs get into stores in two weeks. Others have to get it from companies like China. The cost of distribution is lower
  26. 26. EXPANSION OF ZARA Incorporate technological advances like marketing on social network Increase its presence in developng economies Further close its communication loop Give their capital assets to increase supply chain flexibility. Partnering with other small retailers.
  27. 27. SUMMARY Historical background Inventory of ZARA ZARA store values About ZARA Competitors Segmentation targeting strategy Parity and disparity points Marketing Model
  28. 28. DISCLAIMER www.zara.com www.nytimes.com www.facebook.com/zara www.wikipedia.com/en/zara

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