Marketing report Zara By Eleanor Daly
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Marketing report
٭
Zara
٭
By Eleanor Daly
Introduction 1*
Brand Analysis 2*
Company Overview 3*
History 3a*
Target Market 3b*
Retail 3c*
Online 3d*
Marketing 3e*
Product Insight 3f*
SWOT 4*
Strengths 4a*
Weakenesses 4b*
Oppurtunities 4c*
Threats 4d*
Competitor Analysis 5*
Conclusion 6*
1
2
1* 3
This report will be a first Zara store in
brief factual docu- Coruna, Spain. Zara’s
mentation detailing key to success was its
the economic, social simplicity, start small
and environmental aim big. As I am an
changes and accom- a avid shopper of the
plishments of Zara Spanish chain, and
the high street retail knowing the style
brand for the dura- they aim for and the
tion of this annual range in their target
year. Zara is an market, I though it
established Spanish was achievable to
chain run by the produce a campaign
Inditex Group who that was truthful
are also owners of and report that was
other large retail factual, as I essen-
European chains like tially am part of the
Zara Home, Pull & target audience they
Bear, Massimo Dutti, appeal to.
Oysho, Uterque,
Stradivarius and Ber-
shka. The Company
was Founded Aman-
cio Ortega where he
started debuted his
Introduction
4
Zara dominates the power and sure that solid values are rooted investment growth for the In- in the company such as freedom, ditex Group. Out of all 8 retail perfectionism, responsibility, chains Zara runs strongest giving swift movement, flexibility and Inditex a 64.8% advantage, a fine respect for colleague and which safely allows it to rein as customer. the grossing top spot for one of the world’s largest retail compa- ny. Zara produces around 40,000 new designs every year, more or less out of the 40,000 10,000 are taken to production. The designs are not to dissimilar to those found on the catwalks of couture and ready-to-wear houses. They aim for classis pieces appealing to their target demographic and good quality clothing at afforda- ble prices. Mr. Ortega makes Brand Analysis 5
2* 6
O
C
V
O
E
M
R
P
V
A
I
N
E
Y 3*
W
7
3a*
History
Inditex group founded by Amancio Ortega originated
in Coruna, Spain. The First store to open was Zara in
Coruna, Spain where the companies’ headquarters still
stand today.
Zara birth was of the promotion of low price clothes
that were similar to those found in amongst the design-
ers. After several years of a successful start, he decided
to change the design, manufacturing and distribution
enabling him to process the clothes quicker which
intern allowed the company to get to high class trends
quicker. During 1976-1984 this process proved im-
mensely successful permitting Ortega to transform the
once humble shop into a successful retail chain all over
Spain.
1988 saw the opening of their first international store in
Portugal and after this saw the quick expansion of the
chain. This then led to the opening of Zara’s 1000’s store
in 2007, the first Eco-efficient store located in Athens
Greece in 2008, e-commerce was Zara’s next step that
arrived internationally in 2010. Currently Zara clothing
is available worldwide in 1721 stores.
8
3b*
Target Market
Zara’s target market covers a wide range of people aged from 0-40+ years, this is possi-
ble because they have quite literally designed clothing for every age. Narrowing it down
to the main target audience would see aged from 25-40. As they have kids, TRF, Zara
women & Mens. Although within their main target audience they appeal to the newly
married or single women, who is impressed by fashion but wants it at appealing prices.
Appreciates being dressed well with-in the work place and their free time. The sec-
ondary target market is very similar but male. This is again a man who is interested in
exploring his fashion identity but careful not to be to bold, happy to look well groomed
in both work and play.
To be more specific, Zara see the typical women that is most likely to shop at their
stores, as an everyday women that is seen as looking both sophisticated and chic in the
work place but relaxed and at ease in her downtime. Job descriptions could be super-
visors, junior managers or skilled manual workers. They could shop at other successful
high street brands such as GAP, Topshop and H&M.
9Known for is fast Although a thriving
processing of prod- online section to
uct; Zara innovative this company the
business model of main sales are still
flexibility allows the rotted in the high
company to move street. All stores are
at a quick pace. company owned,
Garments are de- unless country
signed, distributed regulations say
and finally market otherwise, when
a product in the this is the case they
space of just fifteen franchise the store.
days. Although Zara is not seen as a
they are always concession only as
turning over new stand-alone stores,
stock their supplies they also do not fea-
are limited, this is ture other retailers
not to be taken as a or brands with-in
negative, it enables any of their stores.
a customer to feel
special and gives a
sense of exclusivity.
Something which is
essential to Zara is
keeping store rack
quantizes low, so
that items can sell
3c*
Retail
out faster keeping
store inventory low.
103d*
O
Having only recently in the last two years developed the e-com- N
merce side to the brand, sales are for the online site are rep-
resenting the country well, bringing in 2.5% of Inditex yearly
L
turnover. One of Zara’s main competitors H&M are lagging in I
behind Zara’s growing wealth as it only caters to a handful of
European countries, unlike Zara who have given their consumer
N
worldwide availability.
11
EIt’s very simple, Zara ed to their target currently has over
does not advertise. Ad- consumer. Small- 8 million likes, it
vertising expensive for
the company is minimal
er measures are
taken to promote
enables them to
reach the old and 3e*
(avg. 0.3% of revenue). special events such young customers
Oddly enough this as large poster’s intern increase
generates the compa- in shop windows the core values of
ny a certain amount showing the cus- the company like
of publicity making it tomer that there brand recognition.
easier not to advertise is a sale on, more
in magazines etc. recently they have
used social net-
Money that would working to start
normally be spent on
marketing is trans-
word of mouth.
Marketing
ferred into funds that Zara prizes itself
go towards the redevel- on customer loyal-
opment of shop space ty, so, by setting up
or potential good real their current face
estate that is connect- book page, which
12Zara has 5 sub- not least Kids this the price seems to
brands within the is for parents who work for people
retail name Zara, want their kids to who want to look
Zara Woman, Zara look scrumptious effortlessly chic.
Basic, Zara TRF, without the high
Zara Men, and designer price Zara’s sizes range
Zara Kids. Zara tag we are more from XS to XL,
women contain currently finding quality isn’t done
clothes more for- these days. second best and
mal than the rest everything is
of the clothing. It Almost everything manufactured in
is for women who is sold within Europe apart from
want to look their Zara and almost some pieces and
best but in a more everything is out jeans. Zara pro-
serious fashion, on display ena- motes a healthy
their clothes match bling room for the work environment
current boutique next batch of new and esthetically
and high fashion trends to been pleasing yet eco
trends and are stored in stock friendly.
suited to almost rooms and then
every outfit they to be able to be
own. Basic is displayed in quick
exactly what it turnover. Zara
says on the tin. It tries to incorporate Product Insight
offers a wide range trends that are not
of everyday items seen in the high
a woman could street and only
ever possibly need. on the runway.
TRF is lower than Promoting a high
their target demo- quality garment
graphic, it is for for a fraction of
younger women
early 20’s who
appreciate fashion
and want to be in
the know. Zara
Men is a for male
who is attracted
to a Zara Woman,
a man who takes
pride in his image
and enjoys to dress
up. It offers both
formal and casual
combined. Last but
13Zara gives its price-conscious, young, educated target market low prices for good quality.
Here is a break down of their average prices for individual items.
* Jackets from 139 to 49.99
3e*
* Outwear from 49.99 to 39.99
* Knitwear from 19.00 to 14.99
* Dresses from 119 to 25.99
* Skirts from 39.00 to 29.99
* Trousers from 35.99 to 19.99
* Shirts from 39.99 to 19.99
* T-shirts from 25.99 to 9.99
* Shoes from 79.99 to 29.99
1415
SW
OT
4*
16Strengths
Wide range of sizes.
Well-displayed clothing in-store.
4a* Prime locations.
Good Visual Merchandising.
Well-executed shop window displays.
High class trends at affordable prices.
Profit is distributed more generously to the accessibility for stores.
Publicity from helping people in developing worlds like Bangladesh.
New stock twice a week.
Opportunities for expansion are always explored.
Quick process from drawing board to shop of trends and garments.
By not advertising draws the customer to go direct to the stores and see what is new or not new
in-turn making it easier for to customer to buy immediately.
Zara customers on average got to their stores more than 17 times a year.
More exclusivity at less stock.
Affordable prices.
More work dominates where it originates (Spain) allowing more job opportunities in its home-
town.
Every member of the family covered in every store.
Knowing the product.
4c*
Opportunities
Online markets offer massive opportunity for expansion.
Growing within the USA.
Emerging market offer best growth opportunities for Zara.
International expansion within emerging markets.
174b* Weaknesses
Shop locations hold their main competitors.
Display clothing not easily found with-in store.
Stores have a tendency to get messier as the day progresses.
By not advertising mean people are missing people that don’t like physically shop-
ping.
Little stock available
Only one manufacturing space and distribution centre in the world.
Quality means cannot be worn for lifetime.
Replicated designs from high fashion brands.
4d*
Price tag is above that of major competitors such as H&M.
Currency of Euro effecting economy
To overpower in Europe.
Natural Disaster or Power Outage.
Spanish manufacturing prices soar. Threats
18Zara stand well rooted in the global high street market glob-
ally. Zara’s main competitors are brands such as Gap, H&M,
Mango and Top Shop.
Other brands such as H&M use different methods of promo-
tions for their clothing as they often have collaborations with
personalities and designers such as Masion Martin Margiela
and Versace and we more commonly see their advertising in
magazines. Both are European based retail companies and
are fashion forward in lowering prices within retail, they also
offer solid plans for international growth.
195* C
O
M
P
E
T
A
N
A
L
Y
S
I I
T S
O
20
RIn conclusion to the research I have gathered for the company, they
invest money into the presentation of the stores rather than advertise-
ments as this targets one of their core values, which is customer loyalty.
They are conscious about the environment and are always looking for
ways to improve the sustainability of their products.
I am using this part of the report to explain my personal outcomes
from constructing this report. Although wanting to peruse a career in
Fashion I had never had a chance to understand the more business side
of the industry. I was an avid follower of Zara and its progression since
early 2008. This gave me more of an advantage when it came to analyz-
ing more in-depth about the company. It also enabled me to have more
fun with it, as I was intrigued to find out more about the company I am
buying from. As a result, I have gained knowledge and will continue this
practice for future projects.
216*
Conclusion
22Zara By Eleanor Daly
You can also read
