This presentation is created by Vandan Kothari, IIT Roorkee, under a marketing internship by Prof. Sameer Mathur, IIM Lucknow

1. ZARA
FASHION AND ACCESSORIES
PEOPLE
WILL
STARE.
MAKE IT
WORTH
THEIR
WHILE

2. About ZARA
Zara is a Spanish clothing and
accessories retailer based in Artexio,
Galicia.
The company was founded in 1975
by Amanico Ortega and Rosalia
Mera.
It is the main brand of the Inditex
group, the world's largest apparel
retailer.

3. Zara stores have men's
clothing and women's
clothing, as well as
children's clothing .

4. Known for its fast, affordable fashion,
retail chain ZARA has built up a multi-
billion dollar brand through listening and
reacting quickly to its customers.

5. • The firm tripled in size between
1996 and 2000
• By 2008, sales edged ahead of
Gap
• The fashion group also owns
brands such as Massimo Dutti,
Pull and Bear, Bershka,
Stradivarius, Oysho, Zara Home,
and Uterque.

6. DESIGN AND
PRODUCTION
Employs hundreds of
designers at its headquarters in
Spain.
New styles are constantly being
created.
The firm enforces the speed at
which it puts
these designs into production.
Produces only a small quantity
of each
collection.

7. LOGISTICS
Distributes all its merchandise from
Spain.
Process is designed so that the time
from receipt of an order to delivery in
the store averages 1 to 2 days.
Nearby production facilities is key to
success.
Stores receive new shipments twice
a week
Small quantities of each collection not
only bring consumers back into Zara
stores over and over but also entice
them to make purchases more quickly.

8. CUSTOMERS
The retailer reacts to
customers’ changing
needs, trends, and tastes.
They react to customer
feedback—good and bad—and if
something fails, the
line is withdrawn immediately.
Zara cuts its losses and the
impact is minimal due to the
low quantities of each style
produced.

9. STORES
Zara has never run an
advertising campaign.
The stores are the key
advertising element
Located in prestigious
high-traffic locations around
the world.
Zara spends
significant time and effort
regularly changing store
windows to help lure
customers in.

12. Zara continues to expand into new markets and
countries, it risks losing some of its speed and will
have to work hard to continue providing the same
newness all over the world that it does so well in
Europe.

13. ZARA Marketing Mix
PRODUCT: ZARA manufactures and sell
products such as clothes, shoes, cosmetics and
accessories for men, women and children.
PRICE: ZARA provides clothes for people with
lower income so its prices are affordable.
PLACE: ZARA is present in 30 countries in
private locations. There are 600 commercial
stores, and ZARA is selling its service through
out the world.
PROMOTION: ZARA focuses less on
advertisement-based marketing but more on
internet online marketing.

15. STRENGTHS
•Global outreach
•Strategic locations
•Seamless distribution strategy
•Minimalistic store image
•Fast-changing collections

16. WEAKNESSES
•Brand image closely tagged to competitors
•Limited stocks
•Lack of marketing communications

17. OPPORTUNITIES
•Demand for high fashion at affordable prices
•Growing Asian market, especially China
•Diverse cultural area

18. THREATS
•Fierce competition
•Lawsuits related to sweatshops
•Possible imitation of goods
•Dilution of brand equity

19. SUMMARY
 To be successful an organization must
have a clear competitive strategy
 ZARA has introduced a new, unique
business model into the apparel
manufacturing industry.
They understand the needs of the
customers and tie these to proper
innovation strategies.
ZARA has potential for sustainable
growth because of its capability and
competitive advantage to experience the
challenges of fashion industry.

21. DISCLAIMER
Created by Vandan Kothari, IIT
Roorkee, during a marketing
internship by Prof. Sameer Mathur,
IIM Lucknow