Marketing analysis project BUS 260c Iva Naumova

Marketing analysis project

BUS 260c

Iva Naumova

Kevin Zappia

Valeriia Tretiakova

Victoria Lyubykh

20\03\2013

Outline

In this presentation we are going to talk about:

Inditex Group – Basic information

Emphasis on ZARA affordable fashion retailer

ZARA marketing strategy: Target Markets and Marketing Mix

Who are they?

INDITEX is one of the world's largest fashion retailers, welcoming shoppers at its eight store formats -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 6.104 stores in 86 markets.

Stores Around the World

ZARA 1,770

ZARA Kids 166

Pull & Bear 825

Massimo Dutti 634

Bershka 910

Stradivarius 816

Oysho 533

ZARA Home 363

Uterque 87

Total 6,104

• Founded by Amancio Ortega and Rosalia Mera in 1975, headquartered in Arteixo, Spain

• One of the largest international fashion retailer companies belonging to Inditex

• Main competitor: Swedish H&M; along with GAP and Benetton due to global retailing status

How did we gather our observations?

• Visited online sources:

official Inditex websiteofficial ZARA websiteAndres Vicente Ranz online blog dedicated to ZARA Zara brand profile by Belle Kwan

Who is the customer?

• 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

Product

Mission Statement

“Through Zara’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts.”

Positioning: Fast Fashion at Affordable Prices

Vision

“ZARA is committed to satisfying the desires of our customers.  As a result we pledge to continuously innovate our business to improve your experience.  We promise to provide new designs made from quality materials that are affordable”

Price: 2000 data

Price: Contribution 12 years after

Distribution

Print media

Social MediaZARA.COM

Social MediaFacebook

• 7.5 millions fans

• “Light” social media strategy

• Encourages brand love, but not purchase consideration

Social MediaPinterest

Mobile Applications

Available for Android, iPhone, Windows Mob, Nokia, and BlackBerry

Other communications

• Real-estate Marketing

• Word of Mouth

Effectiveness of marketing communications

Management Efficiency

The focus on the customer and product requires that the unit is constantly re-inventing itself to avoid becoming obsolete.

The final goal ultimately is to create a communication matrix for this purpose.

Effectiveness of marketing communications

Different Approach then Competitor• Zara only spends about

0.3% of their revenue on promotion so they can instead focus heavily on product, place, and pricing as opposed to promotion

Events

1 slides describing communications through events:• Description of events (what? where? who?)• Event patterns (regularity and schedule)• Style of communication• Other observations?

• Vogue Fashion's Night Out by ZARA

• ZARA fashion show

Marketing behavior

• Segmentation Targeting Differentiation

The most interesting discovery

• Zara was described by Louis Vuitton Fashion Director Daniel Piette as “possibly the most innovative and devastating retailer in the world.” Zara has also been described as a “Spanish success story" by CNN

Conclusions

• Analyzing Zara's business model. (2011, March 03). Retrieved from http://www.harbott.com/2011/03/03/analysing-zaras-business-model/

• Chan, C. C. (2011, September 16). [Web log message]. Retrieved from http://blogs.ubc.ca/conradchan/2011/09/16/zaras-marketing-strategy/

• Gregorio. (2013, August 10). Vogue fashion’s night out Lisbon – 12 September 2013. Retrieved from http://portugalconfidential.com/2013/08/vogue-fashions-night-out-lisbon-lisboa-fno-2013/

• HANSEN, S. (2012, November 09). How Zara grew into the world’s largest fashion retailer. Retrieved from http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largest-fashion-retailer.html?pagewanted=2&_r=3&

• KWAN, B. (2011, September 03). Spanish domination – Zara brand profile. Retrieved from http://www.marketingmag.com.au/tags/zara/

• Ranz. (2011, March 15). [Web log message]. Retrieved from http://www.brandtrhough.blogspot.com/2011/03/who-are-zaras-competitors.html

• SWOT analysis . (n.d.). Retrieved from http://zarafashion2013.wix.com

• (2001, May 18). Retrieved from http://www.kellogg.northwestern.edu/course/opns430/modules/supply_chain_management/Zara.pdf