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Term Paper ( z a r a )

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Term Paper ( z a r a )

  1. 1. Company Background
  2. 2. Competitors of ZARA
  3. 3. BUSINESS MISSION “ZARA walks at the pace of society, dressing ideas, trends and tastes that society itself has matured.” ◊ The business is in clothing industry. ◊ Its market is all society members. ◊ Zara’s value and goals are related to satisfaction the customers matured tastes.
  4. 4. STRENGTHS Strong product diversity Strong revenue growth Strong distribution network Zero advertising
  5. 5. WEAKNESSES Overdependence on the European market Reliance on local designers
  6. 6. OPPORTUNITIES Expansion plans Growing apparel retail market in Asia Growing online sales
  7. 7. THREATS  Counterfeit goods  Rising Labor cost in European region
  8. 8. DIFFERENT ENTRY MODES Exporting Franchising Joint Ventures Wholly Owned Subsidiaries
  9. 9. The major comparable players that ZARA face at international level are:  Benetton  H&M  Gap
  10. 10.  Spain: Industry without smokestacks Tourism  China: Communist Revolution Indigenous cultural influence  France: Revolutionary legacy Catholism
  11. 11. Country GDP(million s) Trade Balance Unemploy ment Rate(%) Inflation rate(%) Spain $ 1478206 $8.84nHund red Million 26.1 2.40 China $ 7203784 $ 1183983 Thousand 4.1 2.10 France $ 22775518 $ 6011 Million 10.7 1
  12. 12. Extrinsic/Intrinsic/Hygiene Motivation • Equality, multiculturalism, and conciliation •Commitment to equality and non-discrimination •Confronting gender discrimination and sexual harassment •Work and family life • Global Agreement with the UNI Global Union •Health and safety THEORY X and THEORY Y Zara- Theory X •Retail Perspective INDITEX- Theory Y •Innovative and encourages individuals to reach highest potential
  13. 13. Hawthorne’s Theory  Organization exists to serve human needs.  Organization and people need each other.  When the fight between the organization and individual is poor, one or both will suffer.  A good fit between individual and organization benefits both. Theory A/J/Z Organization Type Z (Modified American)  Long-term employment  Collective decision making  Individual responsibility  Slow evaluation and promotion  Implicit informal control with explicit , formalized control  Moderately specified career paths  Holistic concerns, including family
  14. 14. Zara’s CSR programs Initiative programs o Zara reduces the production of waste and encourages recycling. o Use of paper or biodegradable plastic bags. o Use of ecological fabrics, like organic cotton E.g. “Made in Green” stamps. o Animal welfare policy. o CSR with Suppliers E.g. acceptable working conditions, prohibition of all forms of forced labour. o CSR to the society and environment E.g. maximize the efficient use of energy in manufacturing. Corporate Philanthropy Zara does not involve themselves in any kind of corporate philanthropy as it is continuous innovation based on customer desires and almost all the acts are initiative based.
  15. 15. product Zara’s 8P’s place price promotio n people positionin process g physical evidence
  16. 16. Product Clothing: men, women, children • Shoes, cosmetics • 11000 items in product mix • Rapid changes in design • Organic raw materials Place Stores across 6 continents, 73 countries • 1751 stores in total • Location: city hubs • Online stores recently launched Price Fashionable clothes at reasonable price • Pricing at cost + a profit margin • Advantage as both manufacturer and retailer Promotion Very little advertising, 0.3% • Shop windows serve as attraction points • Opening new stores, rapid expansion strategy • website video
  17. 17. People • Own workers, sales force, designers • Efficient at work • Dedicated to fulfilling customers’ demands • Fulfills Zara’s mission statement Physical evidence • High quality product • Made from organic, eco friendly materials • Very fashionable, latest in the market • Stores are really spacious and products are located beautifully. Process • Extremely fast production of goods. From design to store in weeks • Attractive presentation of products in shop windows Positioning • Top fashion house • High quality product at affordable price • Environmentally conscious; sustainable resource management
  18. 18. Integrated marketing communication
  19. 19.  Zara earned a positive brand image by fulfilling customers needs.  Direct Marketing : Zara’s own website, stores at almost in every big cities of the world; where customers can buy their products.  Internet Marketing : Advertisements, Apps, Blogs  Promotional : Zara keep updating the collections and spread it on the websites and social networks.  offers sales and discount to reach more customers.