Zara was founded in 1975 by Amancio Ortega and targets young, fashion-conscious consumers without defining specific age groups. It offers the latest fashion trends through a fast fashion model with excellent communication between designers and consumers. Zara uses innovative manufacturing and logistics to rapidly design, produce, and distribute new items to stores weekly from Spain. This strategy of quick inventory turnover and frequent store visits has made Zara successful through brand awareness, attractive retail stores, and a focus on customer satisfaction over traditional advertising.

1. ZARA

2. Zara was founded in 1975 by
Amancio Ortega when he
opened the first retail Zara
shop with his wife.

3. Why are they
successful?

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.