Marketing Strategy of Zara – Zara Marketing Strategy: Zara is one of the stores that give marketers valuable lessons on how to keep customers returning. It is the Inditex group’s flagship brand, with more than 8 brands and subsidiary companies. Zara is the only brand that drives a lot of revenue to Inditex out of all of them. Zara is well-known for its innovative designs. The showroom rotates the designs so customers get new designs every time they visit. Zara is one of the strongest retail brands in the world, with almost no advertising costs to date. Zara would rank among the top 10 most valuable brands at that price if it were a perfect example of a pull strategy, based on product and strategic design.
With 7000+ stores around the globe and successfully promoting eight brands of fashion retail globally within its brand structure has assisted Inditex(the parent company behind the brand ZARA) to become one of the world’s biggest fashion retail organizations. Zara’s first store was launched in 1975 in the beautiful European country of Spain.
Zara At A Glance – Marketing Strategy of Zara
Company: Zara SA | The Inditex Group
CEO: Óscar Pérez Marcote
Founder: Amancio Ortega | Rosalía Mera
Year founded: 24 May 1974, A Coruña, Spain
Headquarters: Municipality of Arteixo, Spain
Annual Revenue: US$750 million
Profit | Net income: US$254 million
Number of employees: 75,000
Products & Services: Clothing | Accessories | Shoes | Swimwear | Beauty | Perfumes
Zara Fun Facts: The founder of the company initially named the Zara as Zorba after the classic film Zorba the Greek.
Marketing Strategy of Zara
Zara’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Zara? Let us discuss.
Segmentation, Targeting, Positioning – Zara Marketing Strategy
Zara utilizes a combination of geographic, demographic as well as psychographic segmentation techniques to meet the ever-growing demands of customers.
Zara has a limited number of stores around the world due to which it employs targeted methods to ensure that the products are available on market. marketplace.
Utilization-based position strategies are utilized by Zara to promote its focus on the customer to keep up with the evolving fashion demands of customers across the world. Zara is aware that its clients are looking for new and up-to-date fashions and consequently will target its customers exclusively based on the designs it has created.
Zara Mission Statement
Zara Vision Statement
Competitive Advantage – Marketing Strategy of Zara
A strong parent firm: Inditex, the parent company behind the Zara brand. Zara has a solid collection of 8 brands, which aids the company to nurture each brand through its expertise and solid financial foundation.
The time to deliver (TAT): In comparison with other players on the market, Zara has its own product accessible to stores within just two weeks after its launch, whereas the typical TAT for the industry is 3 months.
The stronghold of HTML0 in its parent country: Zara gets 60% of its revenue (2015 figures) in the European nation, out of which 18 percent comes from Spain.
Advertisement and store locations: The most important aspect of success for the retailers in the clothing business is location. stores and their advertising. However, Zara, all its retail stores are placed in the most important cities worldwide and the cost of advertising for Zara is low contrasted to peer firms in the sector.
BCG Matrix – Zara Marketing Strategy
Zara is mainly involved in products that include clothing and accessories for men, women, and children. In the three lines of business offered by Zara,
The Women segment is one of the most popular of the BCG Matrix.
The men’s market is also very popular because of the high popularity of these products but it is also a market with a lot of competition.
The section for kids is a question mark as there are a lot of brands for children that are more well-known.
The Kids section is a segment of business that is a question mark within Zara’s BCG model of Zara. Women and men’s segments are driving the growth of Zara.
Distribution Strategy – Marketing Strategy of Zara
From the initial design phase through delivery to the sales of their products in their more than 2100 stores around the globe, Zara operates all the businesses and has the latest designs accessible in their stores within two weeks.
In addition to being Zara Exclusive stores, numerous multi-brand chains of retail stores offer Zara’s clothes and accessories items that are aiding the company to expand its reach to the top cities of nations around the world.
Zara’s distribution chain for Zara is among the largest advantages for the brand since while other retail stores can require 21 days or even two months to introduce new designs for their stores, Zara gets it done in just two weeks. Additionally, the stores are equipped with the new designs only for a specified duration or until they run out of stock, therefore the moving material is extremely crucial for a company like Zara.
Brand equity – Zara Marketing Strategy
Valued in the region of $ 10.7 billion (May 2016, data) This fashion retailer has landed 53rd place on the Forbes ranking of the top brands in the world.
Competitive Analysis – Zara Marketing Strategy
The fashion retail sector is extremely competitive, with many brands including H & M, Mango, Gucci, and numerous other national as well as internationally-based brands fighting one another in the same industry. But, the designs developed for Zara Zara are based upon the feedback from the consumer and the market that they continually work to become more of a more consumer-focused brand.
Market Analysis – Marketing Strategy of Zara
The industry of retailing clothing is highly competitive, and ever-changing trends, social-economic and behavioral patterns pose an enormous challenge for businesses operating in this sector. Integration of the back end as well as the high cost of raw materials and the cost of advertising are other issues that affect apparel companies at large.
Customer Analysis – Zara Marketing Strategy
In both the women’s and men’s clothing segments, customers of Zara are between the ages of 15 and 40 years old. In the past, it has also introduced a kids section in its stores across the globe.
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