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