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Market study about the introduction of ZARA into the turkish market


  1. 1. Zara in turkey Ane Zabaleta Maeztu
  2. 2. Content INDEX1. The company, the USP, strengths and weaknesses2. The main competitors of ZARA3. The target market of ZARA in Turkey4. Segmentation and positioning strategy5. Pricing and distribution strategy6. Promotional strategy
  3. 3. THE COMPANY• Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia• Founded in 1975 by Amancio Ortega and Rosalía Mera.• It is the flagship chain store of the Inditex group
  4. 4. UNIQUE SELLING PROPOSITION• Create or imitate the latest trends within a short two- week period• The new styles are available on sales floors for no longer than 4 weeks.• Policy of zero advertising
  5. 5. STRENGTHS WEAKNESSES• Fast Fashion at Zara • Higher research and• Strong Distribution Channels development costs• Vertically integrated retailer• Each store wants customer • Centralized distribution comments and opinions system• Monitors fashion trends versus guessing at trends • Online presence at Zara is• Targets the young weak fashionable consumers• Low cost, high quality • Advertising Supply Chain• Inexpensive but fashionable
  6. 6. • Spanish multinational • Hennes and Mauritz, also known as clothing company based in H&M, is a popular clothing brand Barcelona. from Sweden• Strengths: • Strengths: 1. Inform of latest 1. Fashionable trends at affordable tendencies prices. 2. Provide with a complete 2. High brand value collection • Weaknesses: 3. Trains the sales and 1. Wide range of customers this management teams brand provides for.• Weaknesses: 2. It takes 12 weeks to get an item 1. More expensive than from the design to its retail state, ZARA while ZARA needs only 4 weeks
  7. 7. OPPORTUNITIES IN TURKEY• Online market• International expansion in emerging markets• Designing one line of clothing and replicate it across culture
  8. 8. THREATS IN TURKEY• Competitors• Manufacturing base in Spain may become expensive• Natural disaster or power outage
  9. 9. TARGET MARKET• Very broad target market, because they don’t define their target by segmenting ages and lifestyles• Based on women• Young, educated people that like fashion
  10. 10. MARKET SEGMENTATION• Demographics: – Age • TRF • Zara Woman • Zara Kids – Gender • Zara Woman • Zara Man• No geographic segmentation – Everywhere the same clothes
  11. 11. STRATEGIES• Cheap prices• Fast fashion – New designs every week – Faster that their competitors• Shops in the city centres • NY: 5th Avenue • Vienna: Mariahilferstraße • London: Oxford St.
  12. 12. PRISING STRATEGY COMMONLow-price strategy (a cost leadership strategy, low cost what gives low prices)• Set price equal to cost plus a target margin• External suppliers• Producing 50% in Barcelona, 25% Europe, 13% Hong Kong, 12% Turkey• 20 factories for internal manufacture• The high turnover of products• Just-in-time production (JIT)
  13. 13. PRISING STRATEGY COMMON• Commitment of its employees as well as meeting the consumer demands relating to fashionable clothes• Transportation costs low on the supply side• Reducing of price to promotion and information support• Low level of inventory• End-season sales
  14. 14. ASPECTS OF THE PRICING STRATEGY IN TURKEY• 12% of producing in Turkey (T-Shirts) prices are higher than in Spain but lower than in other countries• Set price equal to cost plus• Local target margin• 25 shops in all parts of the country• Speed shipment and transportation• Local consumer research
  15. 15. DISTRIBUTION STRATEGY COMMON• Distribution is the main point of marketing strategy of company• Shops in more than70 countries of the world• Logistic system (quick deliver 24-48 hours in all countries of the world )• The speedy shipments• Competitive advantage• Sales system
  16. 16. ASPECTS OF DISTRIBUTION STRATEGY IN TURKEY• Shops in all parts of country• 24 hours - delivering time• Local sales program• Local pricing strategy: – comparison with competitors
  17. 17. PROMOTIONAL STRATEGY• Keeping the speed of placing new products• Informing people about new collections in shops & web sites• Sales force advices• Special sales for repeatingcustomers• Gift cards
  18. 18. PROMOTIONAL STRATEGY Reinvesting of profits – new shops in biggest cities well known shopping malls – informing where we will open new shop• No ads in mass media chanells except Internet – improving website – viral marketing on Facebook (10.447.589 fans)
  19. 19. WEBSITE• The simple but interesting website allows shoppers to filter a search for garments by – type of garment – colours – sizes – prices – reference number
  20. 20. WEBSITE• Customers can view products in – precise detail – from different angles – use a SuperZoom feature – The main reason: to get an exceptional close-up look at the details of each item. – Special Android and Ipad/Iphone application