Zara Case Study 2011

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ZARA CASE STUDY 2011


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ContentsContents Intr

oduction andBackground

Zara'smarketing


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strategyUnified marketing

approachVertical

integration Z

ara's five-point


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marketingapproach

to reach itscustomersCo

mpany

history Zara'sproducts-


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Manufacturing

and distribution Zara:

Taking the

Lead in Fast-Fashion BAS


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IC BLACK.Operation/E

xpansion KeySuccess/Fail

ureFactors

LearningPoints


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and Recommendations

Fast Fashion:ZARA-

Zaradoing
http://www.experimentalfashion.com/2010/04/fast-fashion-zara.htmlhttp://www.experimentalfashion.com/2010/04/fast-fashion-zara.htmlhttp://www.experimentalfashion.com/2010/04/fast-fashion-zara.htmlhttp://www.experimentalfashion.com/2010/04/fast-fashion-zara.html


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what itdoes best,

FastFashion

Customer Profiles


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-Positioning

Strategy-

Differences

in MarketingStrategies for


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the DifferentCustomer

Segments

Segmentatio

n Strategy -


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TargetingStrategy

-Positioning

Strategy

-


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Differencesin Marketing

Strategies forthe Different

Customer

Segments Zara's competitiv


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enessConclusion Referenc

eAppendix of

the Case

Studyattached


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Z a r a C a s e

S t u d y Page 19


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Introduction

and Backgro

undThe

competitiveadvantages of


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Zara arebecause of its

costleadership,

fast production and product

variation.

Zara sells


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quality,fashionable

productsatreasonable

prices andbased on

product

positioning,


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Zara ischeaper

thanitsleading rivals

as Benettonand Gap

.


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Zara also hasthe ability to

designandfinish

products to bedelivered in

stores within

4 to 5 weeks


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henceveryquick to

get designer-influenced

products intotheir stores.

Likewise,

theclothing


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brand has theability to

launch newtrends and

designs in amuchshorter

period. Zara t

hereby boasts


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for low levelof inventory,

efficientdistribution system

and highturnover of

product.


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Internationalstrategy at

Zara isdefined by the

combinedgenericstrateg

y of

cost leadershi


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p anddifferentiatio

n strategy. There

areconsiderations, however,

such as when

selecting the


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Lebanesemarket,

labor cost andproductivity,

distributioncost and

shipment cost

of raw


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materialsareconsidered.

Otherconsiderations

arecharacteristics

or behavior of

consumers and


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income percapita. In

terms ofmarketing

approach, theconsiderations

include the

4Psinherent to


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the Lebaneseconsumers an

d business environment. Mar

ket entryconsiderations

include

economics,


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bothmacroeconomi

c factorswhich

includetax,political

condition and

export tariff


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andmicroeconomi

c factorsincludinglocal

competitors,demand and

location of

store.


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Regulationfrom

governmentand local

producersprotection

issues are

other


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considerations.

Zara is apopular

Spanish

clothing storethat uses


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a very uniquemarketingstrat

egy. Becausethey do not

outsourcetheir manufact

uring, the

company


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isable to morequickly

respond tofluctuating

customerdemands in

fashiontrends.

Zara's Unique


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SellingProposition

(USP) is tocreate or

imitatethelatest

trends within a

short two-


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week period;the new styles

are availableonsales floors

for no longerthan 4 weeks.

In the case

that a product


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does notsell,its

inventory isimmediately

pulled fromthe floors and

discontinued

after


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oneweek.Zarais said to have

the"most unusual

strategy...itspolicy of zero

advertising;the

company


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preferred toinvest

a percentageof revenues in

opening newZ a r a C a s e

S t u d y Page 19


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