zara marketing , brand position , strategy , swot analysis , Target, Price and Vision,objective, macro and micro factors , PORTERS 5 FORCE MODEL , projection , sales, production , communication

1. Zara is one of the largest international fashion companies. It belongs to
INDITEX, one of the world largest distribution groups.
The customer is at the heart of their unique business model, which
includes design, production, distribution and sales through extensive
retail network.
ZARA MARKETING

2. ZARA's Target, Price and Vision.
Zara's consumer are young,highly sensitive to latest
fashion trends.
Zara sells apparel , footwear and accessories for
women, men and children.
Zara offers fashion at affordable price by following
the up to date fashion trends.
Vision of Zara : Zara is committed to satisfy the
desire of customer. They pledge to innovate
business to improve experience. Also, they
promise to provide new design made from quality
material which are affordable.
Mission Statement : Through Zara's business
model, one aims to contribute to sustainable
development of society and that of the
environment with which it interacts.

3. ZARA's Brand Positioning
Zara among others has 3000 store
worldwide.
Zara controls and coordinates all
the process and allows to reduce
the time to minimum. Zara
provides the considerable
number of products which are
more than rival corporations in
the fashion industry.
Zara spends four to five weeks on
the process of designing new
product and getting the finished
products in the stores.

4. ZARA's Marketing Objective
Overall Objectives: Increase customer equity
1. Increase consumer satisfaction, decrease
dissatisfaction of the plus size consumer.
2. Increase purchase frequency among plus size
customers.
3. Continue to grow by extending the Zara fashion
brand.
4. Increase brand awareness and favourable
attitudes among consumers.
Demographic Target: Aged 18-40, work in big cities/
pursuing higher- level education/ Mid- Range
income.
Psychographic Target: interested in fashion trends /
conscious about the looks / Enjoy Shopping and
socialising / Hectic lifestyle.

5. STRENGTHS:
• Cost leadership strategy
• Efficient distribution
• Fast delivery of new styles (every
15 days)
• Brand loyalty
• Brand awareness
WEAKNESS
• Dosent spend much money on
advertising
• No online portal to buy products
• Zara only has 1 manufacturing
and distribution centre In the
world
OPPORTUNITY
• Global market penetration
• Online store
• More distribution centres
• Offer the
THREAT
• Global competitors
• Market entry barriers
• Currency fluctuation
rates
SWOT ANALYSIS FOR ZARA

6. PORTERS 5 FORCE MODEL
1) BARGANING POWER OF SUPPLIERS:
• LOW
• Variety of suppliers competing for the same target group
2) BARGAINING POWER OF THE BUYER:
• High
• Consumers have a wide variety of styles and brands to choose from
3)THREAT OF NEW ENTRANTS:
• Medium
• High fixed costs
• Longer sales cycle
4)THREAT OF SUBSTITUTES:
• Moderate
• Competitors do exist such as H&M, F21, Topshop
5)COMPETITIVE RIVALRY:
• High

7. MACRO ANALYSIS
POLITICS
•Zara is a big brand that has its own
vertical integration, where the company
owns its own factories, transport and
their own outlets all over the world
•So it is very important to keep a track of
the political situations worldwide
•The management must know the trade
system they operate in, import export
policies etc
•For eg: Zara’s owners had to face fine in
brazil for providing poor working
conditions
ECONOMIC
•Zara should be familiar with interest
rates, inflation, taxes, exchange rates , as
zara is a brand that does not cater to
lower income groups. Therefore its
important to know weather or not their
brand is affordable in the particular
market
•Also profit margins while managing costs
has to be taken care of
SOCIETY
The social factors that seem to
impinge on fashion industry is the
spending power of the potential
customers
In zara’s case, it is very important
to to know customer spending
pattern and the changing trends.
Here, studying about
demographics plays an important
role

8. TECHNOLOGY
• The newer the technology, better
the efficiency in an organisation.
Technological changes also bring
quality control and maintain a
type of standard in each product
• Zara has a global presence
physically but through zara.com
and the social media, the
organisation can have virtual
presence as well.
• It can help the company stay
connected with the customers
and can make them a part of the
brand
LEGAL
• The company has to make sure
the coverage of all legal aspects
while maintaining operating costs
and making profits
• Legal formalities can affect a
company’s reputation plus costs
ENVIRONMENT
• Consumers of the present era are
all well informed and use products
that are socially accepted
• Therefore the company needs to
focus on how their products are
created from environmental
friendly material also if any of
their product is harming the
environment in any way

9. PROJECTION & SALES
IDEOLOGY BEHIND ZARA’S FAST FASHION
Ortega was famous for his view on clothes as a perishable commodity;
that people would love to use them and throw them away, just like
yogurt or bread. He produces ‘fresh baked clothes’ that survive the
changing street fashion trends for not more than a month or two. You go
to the store a week too late and all the clothes would be changed.

10. • Zara needs just one week to develop a new product and get it to stores,
compared to the six-month industry average, and launches around 12,000
new designs each year .
• More than 92 % of the company overall stores are run and owned by Zara for better
operations
• Zara can have finished goods in its stores in four to five weeks; it can modify
existing items in as little as two weeks.
• Shorter product life cycle means greater success.
• Zara monitors customers fashion changes and picks very carefully.
• Zara has a range of basic designs that are carried over from year to year, but
fashion forward designs stay on the shelves less than four weeks, which
encourages Zara fans to make repeat visits.
• An average high-street store in Spain expects customers to visit three times a
year. That goes up to 17 times for Zara.

11. MOST APPAREL RETAILERS
commit six months in advance to the designs
for 40 to 60 percent of their seasonal lines.
By the start of each season, nearly 80
percent of that season’s inventory is
committed—meaning a lot of it has already
been manufactured.
ZARA
commits six months in advance to only 15 to
25 percent of a season’s line. And it only locks
in 50 to 60 percent of its line by the start of
the season, meaning that up to 50 percent of
its clothes are designed and manufactured
smack in the middle of the season.
For its long-lead items, Zara uses the same foreign factories as everybody else because the costs are
cheaper. But for the fast-fashion items Zara produces in-house (mostly everything in SPAIN) instead of
world wide suppliers.
ZARA DOESN’T NEED TO FORECAST DEMAND.
IT CAN RESPOND TO DEMAND AS IT DEVELOPS AND CHANGES.
PRODUCTION

12. • Zara ships more often in smaller batches
WOMEN
58%
KIDS
20%
MEN
22%
Sales
WOMEN KIDS MEN
Zara’s clothing for women
Zara Women $49.90+ Up
Zara Basic $29.90 -$49.90
Zara TRF $4.90 - $29.90
Customer Service & Convenience
1. Alterations 2. Dry Cleaning. 3. Exchanges
& Returns 4. Reservations: 5. Methods of
Payment 6. Affinity Cards : 7. Gift Cards. 8.
Gift receipt
Visual Merchandising within the store
1. Fully dressed mannequin inspiration
2. Point-of-Sale areas are located near
the purchase counter to engage the
customer Zara’s spring collection helped push sales across Inditex up by 15
% in the first five weeks of the financial year that started in
February 2016
Sales rose 18% in 2015
Sales in 2013 - $12.6 billion apprx
Sales increased by 8% 2014 – $19.7 billion apprx
2013 – Sales grew only 5%

13. • The main marketing factor is the selection of the specific locations for its stores as
the company mainly opens its stores in high end retail markets.
• Zara does not spend much money on promotion. They prefer investing a
percentage of revenues in opening new stores
• It spends 0.3 per cent of sales on advertising compared to average of 3.5 per cent
of competitors. Zara thinks that the store windows and the content is the most
necessary advertising for them.
• It can also be analyzed that the company is high
on achieving its brand goal of
driving high traffic on its retails locations.
COMMUNICATION
In 2012, Zara was ranked the 18th most liked
Facebook company by business insider.

15. Research Plan
• Zara’s research teams constantly monitor external
developments
• by attending as consumers on catwalks, at airports,
shopping areas, sport events, movies and other events.
• The team, which consists of passionate designers,
experienced market specialists and production planners, are
able to annually create approximately 40’000 new designs
of which about 10’000 are quickly selected and put into
production.

16. Digital marketing plan
• The company has a goal to achieve $5 million as online
revenue.
• Zara is focusing on the customer ship to achieve there level
maintained by the management
• also targeting on the lifestyle and moderation of the
customers.
• For the change and to be different from others every month
company changes the clothes in their stores & website.

18. Brand Plan
• The company's Plan involves stocking very little and
updating collections often.
• Instead of other brands that only update once a season,
Zara restocks with new designs twice a week.
• That strategy works two ways ;
1. it encourages customers to come back to the store
often.
2.It also means that if the shopper wants to buy
something, he or she feels that they have to buy it in order
to guarantee it won't sell out.

19. THANK YOU
-ISHITA AGRAWAL