Recommended
More Related Content
What's hot
What's hot (18)
Similar to Zara
Similar to Zara (20)
Recently uploaded
Recently uploaded (20)
Zara
- 1. ZARA
- 2. Zara was founded in 1975 by Amancio Ortega when he opened the first retail Zara shop with his wife.
- 4. Who is the consumer? Zara’s target market is young and fashion conscious. However they do not define their market by segmenting age-groups. This gives them a broader market.
- 5. Brand Salience High brand awareness in the market Attractive retail stores. Depth of brand awareness.
- 6. Quality Strategy Zara offers customers the latest and most fashionable items. Thus customers flock to its stores to check out the latest trends in fashion.
- 7. MARKETING COMMUNICATION Zara uses the concept of fast fashion. Since it has extremely good communication with its consumers , the information flows directly to the designers and hence help in keeping with the latest trends in the marketplace.
- 8. Brand extension strategy Since it does not have a well defined target market,this allows it to expand in all spheres leading to both category and line extension , for example in the kids , men and women category.
- 9. Innovative manufacturing methods It uses the method of lean manufacturing to deliver maximum value to it’s product. This is used for waste minimisation. Zara is often willing to go out of stock to offer an exclusivity to its customers.
- 10. Logistics Zara has excellent logistics. By saving cost on logistics, the company is able to have greater margins. Logistics account for 20-30% of the value of the product value.
- 11. What is different about ZARA’s strategy? The main aim of any logistics operation is to reduce the order-payment cycle. Zara distributes all its merchandise regardless of origin from Spain.
- 12. It has complete control over the manufacturing process and hence, it moves rapidly over its competitors nd hence bring fresher styles to its stores every week. Due to its inventory policy , Zara stores are visited more on average every year. Having 50% of its production facilities nearby is key to the success of this model.
- 13. STORES One of the single most important reasons for the success of the Zara brand. It always uses a percentage of revenue for opening of new stores.
- 14. Zara does not specifically run ad campaigns. It instead prefers to open new stores in high end locations and feature stylish window displays. Thus it saves cost on brand building campaigns and instead uses it stores as a form of advertising.
- 15. Social Media Marketing Zara was a late entrant to the Internet but now uses it extensively before entering potentially tricky markets like Russia and China. Recently it reached 10 million followers on Instagram.
- 16. Zara regularly uploads its latest collections to its Facebook account. This keeps the customers engaged and interested. It has created a website called ‘Zara People’. On this site, it asked its customers to post their photos in Zara products. This was an exciting idea and customers flocked to the site.
- 17. MAIN COMPETITORS
- 18. MARKET SHARE
- 20. RECAP The most important features of Zara’s marketing strategy are Design and Production Logistics Focus on customer satisfaction Advertising using stores
- 21. DISCLAIMER • This presentation was created during an internship under Professor Sameer Mathur , IIM Lucknow.