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About the brand management of zara, a leading apparel chain.
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ABOUT ZARA• Zara is a Spanish clothing and accessories
retailer based in Arteixo, Galicia, and founded in 1975 by Amancio Ortega and Rosalía Mera.
• It is the flagship chain store of the Inditex group, The world's largest apparel retailer, the fashion group also owns brands such as Massimo Dutti, Pull and Bear, Uterqüe, Stradivarius and Bershka.
• It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10,000 new designs each year.
Zara España, S.A.
Type Sociedad Anónima
Industry Retail
Founded Arteixo, Galicia (Spain)(May 24, 1974)
Founder(s) Amancio OrtegaRosalía Mera
Headquarters Arteixo, Spain
Number of locations 1808 stores[1]
Area served Worldwide
Key people Óscar Pérez Marcote, Director-general
Products Clothing
Revenue €7.071 billion (2009)
Parent Industria de Diseño Textil, S.A
Divisions •Zara Diseño, S.L.•Zara Logística, S.A
Website zara.com
MARKETING STRATEGY • Its marketing strategy lies in creative way to convey fashions
online with the dress room function, outfits on share on facebook, twitter send a link or email…..
• It creates an economical profit ,online ranking all over the world wide and creates an added value of the brand…
• Its main aim is to focus on to build a new strategic plan for the online shop…
Tables Content.
Marketing plan objectives
• financial• Sustainable Responsibilities
Marketing plan strategies
• Selection of target market.• Positioning in target market.
Marketing plan mix.
• Price• place
MANUFACTURING OF ZARA PRODUCTS• Zara is a vertically integrated retailer. Unlike similar apparel
retailers, Zara controls most of the steps on the supply-chain, designing, manufacturing, and distributing its products.
• Zara set up its own factory in La Coruña (a city known for its textile industry) in 1980, and upgraded to reverse milk-run-type production and distribution facilities in 1990.
• This approach, designed by Toyota Motor Corp., was called the just-in-time (JIT) system.
• 50% of the products Zara sells are manufactured in Spain, 26% in the rest of Europe, and 24% in Asian and African countries and the rest of the world.
•Internal- 20 owned factories near Spain•External- HK and Barcelona
1.Highly automated and Capital Intensive factories.
2.Material Requirement and Planning
3.Fully automated order application.
DISTRIBUTION OF ZARA PRODUCT
Centralized Distribution System Mobile tracking Systems PDA
Transportation and logistics• Route and schedule optimization• Queue Management system for turnaround and waiting
period of the ships at the docks.• Inventory Management
CHALLENGES ENCOUNTERED PEOPLE• Cultural Issues • Language Issues • Technical Issues • Procedures
Solution: • Provision of training.• Research and analysis of various markets.• Acquisition of new workforce.• Recruitment of local people.
DATABASE• Maintain huge amount of data/ data loss• Organize and interpret from available data• Security measures against spy• Compatibility
Solution:• Technological Up gradation• Hire skilled employees.• Acquire reliable storage devices which is a critical for the
company.
HARDWARE/SOFTWARE• 18 months technology upgrade• Compatibility between hardware and software.• License issues• Cost of equipment and technology• Geographic and natural constraints
Solution:• Sharing information where there is sophisticated technology.• Working under legal boundaries.
PROCEDURES• Inventory management• Procedure Change with technology.• Data collection procedure in different markets.• Sales & Trends forecasting in new markets
Solution:• Applying large number of POS in the supply chain.• Formation of Local Teams to analyze the market for
forecasting.
KEY SUCCESS FACTORS FOR ZARABusiness is built on quick response•Production responds to trends.•Deliveries are twice weekly, unlike most of the competitors weekly schedule.
KSFs:•Market Research•Ready raw material base•Multi-functional quick decision making•Vertical integration to ensure control over supply chain, and proximity•Technology•Cost Control, despite flexibility•Technology and Infrastructure
DESIGN SECTIONS BY ZARA…….• It designs for:
1. Woman
2. TRF( Under TRF)• Outwear, Dresses, Shirts, Trousers, Jeans, Shorts, Skirts, T-
shirt
3. Man
4. Kids
5. Mini
6. Shoes and Bags(for Both Man & Woman)
ZARA STORES IN INDIA•DELHI ( 4 showroom)2 showroom in Saket , Ambience mall, Vasant Kunj
•MUMBAI (3 Showroom)The Orion Mall, Phoenix Market City Mall, Infinity Mall
•BANGALORE (2 Showroom)The Orion Mall(Malleswaram west), Phoenix Market City Mall
•GAZIABAD (1 Showroom)Pacific Mall,Gaziabad
CONCLUSION• Zara would quickly go on to become leader in
Spanish for young people and the company has experienced continuous growth ever since.
• It began its expansion within the region of Galida covering the cities of Vigo Lugo , Santiago and Ourense….
• The first major growth all occurred during the company’s first five year of existence ..
• Currently it has 335 stores distributed through out Spain and it is an Inditex company, as spanish is the parent company with the profit of 17 billion dollar in a month..
PRESENTED BY: KOMALPREET KAUR