Zara is a spanish chain store in Inditex group, one of the worlds biggest retail store in the world who are also owners of zara home. Zara is a fast industry bt its unique business model is based on innovation and flexibilty. they design and distribute a garment to the market in just 15 days. they always have new products but in limited supply. the customer feels there is an ‘exclusitivity’, since only a few items are on display even though stores are planned spacious; they feel they have to buy it because they wont find it again.
Zara’s designer create approximately 40,000 new design annually in which 10,000 are produced. hese design resemble lateset couture creations of classic pieces. Marketing aims and objectives Zara mainly operates thier business on objectives which range from being short term and long term. The company base thier key strategy on every single customer who has a satisfied experience by purchasing fashion online and who wants to repeat online shopping. Furthermore considering zara’s aims, the company belives that its not all about increasing economical profit; moreover to create an added value of Zara’s brand as a tangible asset and the magnitude of the company’s growth. his is one of zara’s aims which they try to keep consistant throughout and in thier brand positioning without loosing it’s value or compromising it.
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Other aims and objectives consist of: ·keeping consistant at providing high quality at reasonable prices – manufacturing has been relocated to the emerging markets (bangladesh, turkey and vietnam) giving them opportunities to produce higher quality items at lower pricing through economies of scale. Zara has a competitive pricing model ensuring that thier pricing is in line with thier closet rivals. Affordability is vital to thier success. to raise brand awareness and favourable attitudes among customers – zara implement new ideas and techniques to promote the brand through many promotional events and launches.
Zara’s position in the affordable fashion industry clearly states that its not a luxury brand. the target customers are eager to purchase fashion while still sensitive to prices. the most important thing is that zara takes itself to many online platforms to show this by considering mainly facebook, twitter and a new addition, instagram. this is zara’s long term objective to change attitudes of fashion and pricing by continuosuly relying on the social media. improve market share objective from global ranking position 1,498 to 1,000 – the selection of traffic as a market share objective inspite the fact that zara’s ranked positioning has an impact on brand value and which can be measured as an indicator of the global market share.
The company targets its customers purchasing and browsing growth to be reliable for its positioning. ·to continue business growth into Asia Pacific region in particluar Austraila and New Zealand – Zara relies more on location of a store that they do advertising to attract customers. ara has a strategy of placing their flag stores in the key shopping areas in each major city. the company is more concerned about finding the right retail store location that suits the company ranther than spending money on attracting customer to the store.
This growth and expansion will always remain in this sense as thier ongoing objective and research will determine the type of customers and whether the area is correct for the type of fashion chain that zara is and provides. to continue to improve profitability through implementing and eco-friendly managment model in the shops in order to reduce energy consumption by 20% – through its business model Zara wants to help the sustainable developments of the sociaty in which the interact in. this new strategy for a sustainable business will be to create a product line for charity purposes fiananced by sales turnover.
Zara is able to sell fashionable clothing to consumers. It can quickly respond to consumer trends and bring garments to market that follow trends in the local market. This concept of “fast fashion” allows trends to move from catwalk/conception to retail location quickly, in some instances in just a few weeks. It also affords these fashionable items at reasonable prices. Consumers therefore look to ...
As a side effect this will generate an aditional brand awareness and rapidly raise favourable attitudes and support for the company. his marketing objective and strategy is ongoing until they achieve thier aim of becoming the worlds leading fashion retailers. ·strive to achieve the long term aim of being the leading fashion clothing chain in the world and continue expansion globally adding another 520 stores in the next 3 years By the accomplishment of these objectives zara is looking to form a enduring profitable growth. Market segmentation and competitors segmentation is a vital aspect for zara to complete and accomplish an efficiant marketing strategy.
By splitting its globally diverse market into smaller groups, Zara can select the most appropriate strategy. n order for this to happen Zara must understand thier customer base and its changing behavior and attitude towards fashion tastes and style. one of the target markets will be china from which zara currently have 3. 2% visitors by country for zara. com and based on the GDP (gross domestic product) groth in Asia, it will increase. The market target defined by the visitors from china has to achieve 8% end of 2013. Zara’s segmentation of customers who are most appriciated is on a demographic point of view for example a women up to the age of 35 who prioritizes fashion as lifestyle.
Converseley the common target market for Zara is aged between 0 and 40 years, located within working in urban areas, pursuing of have gained high levels of education, mid-range incomes and regular users of the internet shopping sites. Zara’s target market is young, price-conscious, and highly sensitive to the latest fashion trends. They have an advantage over traditional retailers because they do not define their target by segmenting ages and lifestyles giving them a much broader market. They segment their product line by women’s (60%), men’s (25%) and the fast growing children’s (15%) department.
... Product differentiation to increase market penetration in International markets The reason of choosing this strategy is that by having heterogeneous product mix, Zara ... Italians were considered more fashion forward than the Germans ... strategy to increase market penetration2.Different pricing strategy for each country3.Sourcing more goods from cheaper labor marketsThe above designed strategies target ...
Right now Zara is well positioned in the market globally. they are giving the customer quick choices regarding fashion. comparing quality against price, zara sell a good quality for its value, plus current fashion trends. Zara’s differentiation and competitive advantage is dominated by cost-prize leadership, fast rollover of new products and strong branding. Due to the advantage of Zara’s strong brand its is immutable to define a life style spirit by generating zara’s world on social media. In terms of revenues and growth Zara’s main competitor is the Swedish firm H&M.