zara

1. Tanveer Ahmed
MBA

2. accessories for women, men and children through its chains around the world.
Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara, Massimo
Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho). By the end of 2001,
Zara operated 507 stores around the world, including Spain.
Of Inditex’s total employees, over 80% of them are part of the retail sales force and 8.5% are in
manufacturing, design, logistics, and distribution.
The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region
of Spain called Galicia.
The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is
involved in setting the corporate strategy, approving the business strategies of the individual chains,
and controlling their overall performance rather than as an “operator” functionally involved in running
the chains. This gives Zara autonomy to operate independently and be responsible for its own
strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial

3. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT,
including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse
close to its corporate headquarters. Zara manufactured its most fashion-sensitive products internally
and its designers continuously tracked customer preferences and placed orders with internal and
external suppliers based on this information. Due to its unique needs, Zara chose to internally develop
its business systems. Zara is now able to originate a design and have finished goods in stores within
weeks for entirely new designs and take even less time for modifications of existing products.

5. Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia.
The company was founded in 1975 by Amancio Ortega and Rosalía Mera. It is the main brand of the Inditex
group, the world's largest
apparel retailer.
The fashion group also owns brands such as Massimo Dutti, Pull and Bear, Bershka, Stradivarius, Oysho, Zara
Home, and Uterqüe.
Amancio Ortega opened the first Zara store in 1975 in downtown A Coruña, Galicia, Spain.Ortega initially
named the store Zorba after the classic film Zorba the Greek, but after learning there was a bar with the same
name two blocks away, they rearranged the letters molded for the sign to 'Zara.' It is believed the extra 'a' came
from an additional set of letters that had been made for the company.The first store featured low-priced
lookalike products of popular, higher-end clothing fashions. Ortega opened additional stores throughout Spain.
During the 1980s, Ortega changed the design, manufacturing, and distribution process to reduce lead times

7. • In 1988, the company started its international expansion through Porto, Portugal.
• In 1989, it entered the United States, and then France in 1990. During the 1990s,
• Zara expanded to Mexico (1992), Greece, Belgium and Sweden (1993). In the early 2000s,
• Zara opened its first stores in Japan and Singapore (2002), Russia and Malaysia (2003), China
,Morocco,Estonia,Hungary and Romania (2004),the Philippines,Costa Rica and Indonesia (2005),
South Korea (2008),India (2010),and South Africa and Australia (2011)
• In September 2010, Zara launched its online boutique.The website began in Spain, the UK,
Portugal, Italy, Germany and France.
• In November that same year, Zara Online extended the service to five more countries:Austria,
Ireland, the Netherlands, Belgium and Luxembourg.
• Online stores began operating in the United States in 2011,Russia and Canada in 2013,and
Mexico,Romania,and South Korea in 2014.
• Zara introduced the use of RFID technology in its stores in 2014.The RFID chips are located in the
security tags which are removed from clothing when it is purchased and can be reused.
• The chip allows the company to quickly take inventory by detecting radio signals from the RFID
tags.When an item is sold, the stockroom is immediately notified so that the item can be replaced.
An item that is not on the shelf can easily be found with the RFID tag.
• In 2015, Zara was ranked 30 on Interbrand's list of best global brands.

8. SWOT ANALYSIS (STRENGTH)
1. Zara have more than 2000 stores all over the world
2. Part of one of the most biggest Spanish retailers in the world
3. Zara have a well established brand name worldwide
4.Their supply chain management is extremely low cost as well as most of their processes like operations,
manufacturing are all vertically integrated
5. Strong online presence through their own website and other ecommerce platforms makes Zara a popular
brand name
6. Clothes are produced at a competitive price with the most innovative and fashionable designs
7. Zara offers extremely trendy, well designed and fast delivery of new products
8. Apart from clothes, Zara also offers handbags, shows etc

9. Weakness
• Limited marketing and advertising as compared to some other brands
• High competition for Zara means limited market share and high brand switching

10. Opportunity
1.There are more global markets which Zara can explore
2.They can also enter into segments and expand those areas where they haven’t
3.Online marketing and ecommerce is gaining importance which can be tapped by
Zara

11. Threat
1.The high end fashion merchandisers can be a major threat to them
2. Economic downturn can also be a threat to their target segment
3.There is a large amount of consumer switching taking place
4. Fake imitations can decline the sale of Zara products and hurt business

12. Segmentation
• Zara’s segmentation can be described by the principles of demographic segmentation.
• The target customer is usually aged 18-40, with a mid-range income.As part of his/her
occupation fashion trends is usually on top.
• But not only from a demographic view Zara segments its targets, their products are also
designed based on a psychographic view based on its customers hectic lifestyle which
means that they are usually busy people or with some kind of intense activity which
combines with Zara’s tactic, making the customer to buy by instinct.

13. Continue
• There is a list of Zara’s
segmentation:
• Small sized customers
• Plus sizes shaped
garments
• Lifestyle
segmentation
• Hectic lifestyle
• Small sized customers
• Plus sizes shaped
garments
Demographic
segmentation
Aged 18-40
Mid-range income
Interested in fashion
trends

14. • Customer – They are the starting point for all Zara’s activities. It has a leading role on the
business model since it’s a customer oriented brand.
• They provide excellent customer care and are frequent to see campaigns to collect
opinion.
• Store – It meets the point between the customer and Zara’s fashion offer. Rather than
paying millions on advertising Zara locates its stores in customer oriented venues (e.g. in
Zara is at the city centre in a area with huge movement, New Market Street).

15. • Zara also provides quantity and the more than 1000 suppliers and the 200 designers show it. Its different
from their rivals in the same segmentation, which usually has less different products but more quantity
on sizes and less designers so they have the advantage of making sure that Zara’s trend identification is
present despite the large number of designers.
• Logistics – More than 600 million garments are distributed every year.
• Even the Logistics are customer oriented providing replenishments twice a week grace to a 24h
receiving order office.
• Teams – Also the teams are customer oriented and part of the employee’s roles is also provide the
friendly environment “feeling” in the store.

16. Marketing mix
• Product in the marketing mix of Zara
• Zara is known as the Coca Cola of fashion. Such is the craze of this brand among the fashion
of the major strength of the company is that it is able to respond very quickly to the changing
customers. The company does not source its manufacturing process, making it fully in control of the
it produces. Its unique selling preposition is to imitate or create the latest trends. In most cases,
normally available on the sales stores within two weeks, four weeks maximum. If a product is not
stores, it is immediately pulled from the stores.
• However, when it comes to India, it has a few problems to sort out, prominent among those being
seasonal variations in their range. Secondly, it needs to tackle and cope up with the cultural needs

17. Pricing in the marketing mix of Zara
• Because the concept of Zara is to provide its products at a reasonable price to its
customers, it follows that customers find its prices quite affordable. However, we have
to know that we are referring to the cream customers who would compare Zara with
Hugo Boss or others. Some Zara stores might be very premium whereas others will be
very much affordable. But mostly Zara has a premium pricing strategy.The pricing is
made possible by optimizing development and training costs.

18. Promotion in the marketing mix of Zara
• Zara has a unique marketing policy of “Zero investment in marketing”. Instead, the company uses the
money it would have used to advertise in opening new stores.The striking thing about Zara is that it has
found differences that matter to the consumers and used that to differentiate itself from the rest of the
competition. In other words, its key marketing strategy is based on exclusivity, experience, differentiation
and affordability.
• In essence, the company relies heavily on the word of mouth advertising more than anything else does.The
products target population in age group 18-40 that live in the cities.This is because; this group is the most
fashion conscious, more than any other group. Specifically, the market segment comprises of women

19. Place in the marketing mix of Zara
• Zara is very unique and one of the things that make it a stand out brand is the fact that it is a vertically
integrated retailer.What this means is that it designs, manufactures and distributes the products itself.
This approach seems to be working for it because it has managed to establish itself as one of the leading
Spanish fashion stores globally.Zara is present in over 30 different countries including India and its
expansion is ongoing.Therefore, you will soon be seeing more Zara stores in more countries.
• In fact, 90% of Zara stores are owned by the company and the rest are joint ventures of franchises.This
means that customers experience the same environment when entering one of the Zara stores be it they
are in London, NewYork, Paris, Rio de Janeiro, New Delhi etc.: the stores are spacious, well-lit, modern
and predominantly whiter and walled with mirrors.
• Most people say Zara’s real strength lies in its culture, something that can never be replaced for anything.

20. ZARA (PLC) 2016

21. REASON BEHIND THE BRAND NAMING
• When Zara founder Amancio Ortega was searching for a name for his first fashion store in La Coruña
back in 1975, he decided upon 'Zorba' after the 1964 film Zorba the Greek, Zara communications
director, Jesus Echevarría, explains to the NewYorkTimes.
• "I don't think they were thinking of making history, just that it was a nice name, but apparently there
was a bar that was called the same, Zorba, like two blocks away, and the owner of the bar came and
said, 'This is going to confuse things to have two Zorbas.'They had already made the molds for the
letters in the sign, so they just rearranged them to see what they could find.They found Zara.

22. COMPETITORS
1.Chanel
2.Christian Dior
3.Burberry
4.Ralph Lauren
5.Prada
6.Gucci
7.LouisVuitton
8.Hugo Boss
9.Hermes International
10.Versace
11.Valentino S.P.A

23. Positioning Strategy
• The main objective for positioning the Zara brand in a market as
mentioned by the company is to ‘democratize fashion’.The company
aims to provide its customers with trendy and high fashion products at
lower prices to accommodate their requirements. As a result the
marketing strategy that is employed by Inditex for Zara is to open stores
and outlets that provide the Zara experience at high profile locations to
set the image of the brand as being trendy, hip, high fashion and

24. USP • Zara offers perfect combination of high end, chic clothing at premium
prices

25. BRAND ASSOCIATION
• Stylish
• Good quality
• Trendy
• classy