ZARA

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Wednesday, January 19, 2011

COMPANY OVERVIEW

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‣ Zara is a Spanish chain store of Inditex Group, one of the world’s biggest retail store in the world

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‣ Zara is a Spanish chain store of Inditex Group, one of the world’s biggest retail store in the world‣ Founded by Amancio Ortega, he first opened a Zara store in

1975 in downtown A Coruna, Spain, where it’s still home to it’s headquarters today.

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1975 in downtown A Coruna, Spain, where it’s still home to it’s headquarters today.‣ At the beginning Zara sold low price clothes that resemble

designs from the couture designers. Then he changed the design, manufacturing and distribution so he could make clothes quicker, and that way react to trends faster.

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1975 in downtown A Coruna, Spain, where it’s still home to it’s headquarters today.‣ At the beginning Zara sold low price clothes that resemble

designs from the couture designers. Then he changed the design, manufacturing and distribution so he could make clothes quicker, and that way react to trends faster. ‣ Key success is that it has a quick constant exchange of

information. All is managed in one design and production centre in Coruna

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COMPANY IMAGE

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‣ Zara is a fast industry

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‣ Zara is a fast industry‣ They have always-new products but in limited supply

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‣ Zara is a fast industry‣ They have always-new products but in limited supply‣ Zara’s designers create approximately 40,000 new designs

annually of which 10,000 are produced

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annually of which 10,000 are produced‣ They also care about the environment, animals and workers.

Two years ago they demanded their Bangladesh jeans supplier to close their factory and built a new one with better conditions for their workers after they found about the poor conditions in which they where working.

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annually of which 10,000 are produced‣ They also care about the environment, animals and workers.

Two years ago they demanded their Bangladesh jeans supplier to close their factory and built a new one with better conditions for their workers after they found about the poor conditions in which they where working.

Mr.Ortega transmits the values of the company which are freedom, perfectionism, responsibility, rapidness, flexibility and respect to others to his Zara team.

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MARKETING POSITION/COMPETITORS

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‣ Right now Zara is well positioned in the market globally.

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‣ Right now Zara is well positioned in the market globally. ‣ They produce women, men and children articles

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‣ Right now Zara is well positioned in the market globally. ‣ They produce women, men and children articles‣ Comparing quality against price, Zara sells a good quality

for it’s value, plus current fashion trends.

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‣ Right now Zara is well positioned in the market globally. ‣ They produce women, men and children articles‣ Comparing quality against price, Zara sells a good quality

for it’s value, plus current fashion trends.‣ Their main competitors are the other high street fashion

brands such as Mango (also from Spain), Top Shop and H&M.

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NUMBER AND LOCATION OF STORES

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‣ Their first store was opened in Spain, then Portugal, USA, France and the rest of the world.

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‣ Their first store was opened in Spain, then Portugal, USA, France and the rest of the world.‣ They had 1,688 stores by the end of October 2010, in 77

countries all around the world and counting.

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‣ Their first store was opened in Spain, then Portugal, USA, France and the rest of the world.‣ They had 1,688 stores by the end of October 2010, in 77

countries all around the world and counting.‣ They are opening stores all the time because they prefer to

invest in expansion better than in advertisement.

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METHODS OF TRADING

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‣ The stores are company owned, unless the countries regulations say otherwise and in these cases they franchise the store.

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‣ The stores are company owned, unless the countries regulations say otherwise and in these cases they franchise the store.‣ They have in-store shopping and launched their online store

last year. They have a web page where you can browse their catalogue, lookbook and all the new garments that are arriving every week. It also has a Store locator with directions and maps. All this information is also available in their application for iPhone and iPad.

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TARGET CUSTOMER DEMOGRAPHICS

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‣ Zara’s target is a woman, and their primary age group is between 25 to 40. They are looking for the women that likes to be fashionable but at a low cost.

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‣ Zara’s target is a woman, and their primary age group is between 25 to 40. They are looking for the women that likes to be fashionable but at a low cost.‣ The secondary target customer for Zara could be man in the

same age range, 25 to 40. Classic men that like fashion but that are not going to the extremes.

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LOCATION

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‣ Their shops are always situated in a prime location

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‣ Their shops are always situated in a prime location‣ in the middle of the most commercial streets in Barcelona,

that way they can attract their prime costumer into the store

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that way they can attract their prime costumer into the store‣ Normally Zara It’s easy to reach by the metro, bus or

walking

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that way they can attract their prime costumer into the store‣ Normally Zara It’s easy to reach by the metro, bus or

walking‣ The store locations are always located at prestigious, high-

traffic locales

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STORE DESIGN

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‣ The stores are huge, with big window displays. They are always very modern and very well organized.

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‣ The stores are huge, with big window displays. They are always very modern and very well organized.‣ Zara has always characterized because they don’t advertise

so their windows are really important.

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so their windows are really important.‣ The doors of the store are big to let in and out the large

quantities of shoppers that come daily to the store

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quantities of shoppers that come daily to the store‣ They are placed in all the corner of the to streets so it is

accessible really easy.

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accessible really easy.‣ The colour of the store are classy, they use brown and beige

tones.

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tones.‣ The store materials are shiny silver metal, glass and glossy

wood

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tones.‣ The store materials are shiny silver metal, glass and glossy

wood‣ They have mirrors everywhere so people can try on things if

they are in a hurry.

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BRANDS

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‣ Zara Woman, little more formal.

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‣ Zara Woman, little more formal.‣ Zara Basic (woman), it is a brand that has all the basics

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‣ Zara Woman, little more formal.‣ Zara Basic (woman), it is a brand that has all the basics‣ Zara TRF, for younger women, it has the trendy clothes for

young girls who love to be up to fashion

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young girls who love to be up to fashion‣ Zara Men, with all the clothes for men. Both casual and

formal.

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young girls who love to be up to fashion‣ Zara Men, with all the clothes for men. Both casual and

formal.‣ Zara Kids

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MAIN FASHION TREND

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‣ Zara's global strategy is to offer cutting edge fashion at affordable prices by identifying which styles are "hot" at fashion shows and moving simulations into production even before the original designer can.

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‣ Zara's global strategy is to offer cutting edge fashion at affordable prices by identifying which styles are "hot" at fashion shows and moving simulations into production even before the original designer can.‣ They always have the latest trends. You can find the most

trendiest pieces mixed with the basics.

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PRICES

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‣ Zara's pricing is lower than its competitors, but profit margins are higher due to direct efficiencies gained from a shortened, vertically integrated, supply chain.

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‣ Zara's pricing is lower than its competitors, but profit margins are higher due to direct efficiencies gained from a shortened, vertically integrated, supply chain.‣ Zara is a brand that it is really well positioned. They give to

their costumer high fashion at low prices. Their quality it is in a good price for the value.

.9923


‣ Zara's pricing is lower than its competitors, but profit margins are higher due to direct efficiencies gained from a shortened, vertically integrated, supply chain.‣ Zara is a brand that it is really well positioned. They give to

their costumer high fashion at low prices. Their quality it is in a good price for the value.‣ They use the psychology of prices by ending their price tags

in .99

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ADVERTISING

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‣ Zara doesn’t advertise. Zara's advertising expenses are minimal

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‣ Zara doesn’t advertise. Zara's advertising expenses are minimal‣ Zara prefers to invests more money in renovating its

storefronts and buying prime real estate for store locations

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‣ Zara doesn’t advertise. Zara's advertising expenses are minimal‣ Zara prefers to invests more money in renovating its

storefronts and buying prime real estate for store locations‣ They just use posters in their windows whenever they are in

sale with just a small word that reads sale and post it on Facebook and online.

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P.R.

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‣ They get a lot of publicity from the fact they don’t advertise and because they are helping the people in the industries.

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‣ They get a lot of publicity from the fact they don’t advertise and because they are helping the people in the industries.‣ Zara also has a Facebook page where they currently have

7’818.477 people who “Like” them or follow them.

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7’818.477 people who “Like” them or follow them.‣ They post videos, photos of new arrivals, making of the

photos for the lookbook and catalogue, invitations to new stores opening events, sales information, new countries with online shopping available, etc.

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7’818.477 people who “Like” them or follow them.‣ They post videos, photos of new arrivals, making of the

photos for the lookbook and catalogue, invitations to new stores opening events, sales information, new countries with online shopping available, etc.‣ This way they are getting into the social network trend and

reaching new and old costumers, strengthening their core values which are to Increase customer loyalty and brand recognition.

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SUITABILITY OF MARKETING MIX

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‣ Zara take a faster approach at producing clothing items that customers want at the present moment.

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‣ Zara take a faster approach at producing clothing items that customers want at the present moment.‣ They find current popular trends and ask consumers what

they want and need instead of predicting future trends

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they want and need instead of predicting future trends‣ The one thing that makes Zara different is the designs that

make it to Zara store racks are low in quantity, which cause items to sell out faster.

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they want and need instead of predicting future trends‣ The one thing that makes Zara different is the designs that

make it to Zara store racks are low in quantity, which cause items to sell out faster.‣ Targets the young fashionable consumers who are always

looking for the latest hip trends and the older consumer who is looking for a bargain plus a good quality clothing item.

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Clara EscobarGunnlaugur Arnar Elíasson

Sandra Ósk Kristbjarnardóttir

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ZARA