Zara Marketing Company Project

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GROUP 8

ABHISHEK GUPTA

CHANDRA KISHORE BHARTI

MEGHNA GAHLOT

SHRADDHA KOTHARI


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Inditex is the world's largest fashion group, which has arounsubsidiary companies.

Formed in 1985

Owns brands such as Zara, Bershka, Pull & Bear


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Spanish clothing retailer, founded in 1975 by Amancio Orteg

Biggest brand of Inditex Group

1721 outlets in 70 countries

Known as Armani for common people

It does not advertise much (only 0.3% of the total revenue) Known for its fast fashion concept


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Zara develops a business model that incorporates moderatwith new clothing styles faster than its competitors.

It maintains design, production and distribution processes wrespond to the quick shifts in consumer demands.

They are flexible enough to produce 12000 new items annu

The company can design a new product and have finishedits stores in four to five weeks.


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They believe in shortening the product life cycle =greater sumeeting customer preferences

They have a design team of 200 people ,which produce 12styles a year.

They keep a close watch on new trends and buying behavthrough market research .


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Zara is an example of a company which exploited the valuget competitive advantage. The company aims to achievecustomer satisfaction by introducing variety of fashionable

One distinctive feature of the value chain system of Zara is i

other words, flexibility and quick response to the market dem

Zara excels by targeting technology investment at the poinvalue chain where it will have the most significant impact, mthat every penny spent on technology adds value.


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COMPETITIVE BRAND

H&M is a Swedish multinational retail clothing company, knofast fashion clothing

The design team in the companys Sweden office controls tproduction, from merchandise planning to establishing spec

The production is outsourced from approximately 800 factoEurope and Asia


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Zara, unlike its competitors DOES NOT use outsourcing

Zaras competitors face a lack of flexibility in changing orders bacurrent trends.

Inventory costs are higher for competitors because orders are plawhole season well in advance and then held in distribution facilitperiodic shipment to stores.

Thus, Zara has a competitive advantage especially in the area odevelopment


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ZARA CUSTOMERSATISFACTION ANALYS


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Desk Research

Online journals

Reports by Consulting Firms


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PARTICULARS ZARA H&M

Promotional Offers Less High

PriceTags Consumers were lessconcerned about the price of

the apparels

Consumers at Hobserved to be

about the priceapparels


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Direct Marketing No Yes

Buzz Marketing Yes No

Promotions Yes Yes

Banner Ads No Yes

Celebrity Endorsements No Yes


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Market Share 13% 14%

Unique SellingPoint

Imitate latest trends in 2 weeks andmake it available on the sales floorwithin 4 weeks

High end clothes prices, use of orga

Market cap $ 2.10 bn $ 2.31 bn

Number of Storesin UAE

12 19


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ZARA CUSTO

43%

57%

0%

10%

20%

30%

40%

50%

60%

GENDER

Male Female


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ZARA CUSTO

28%

32%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

AGE

16 - 24 Years 25 - 30 Years Above 30 Years


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LIKERT SCALE

Scoring from 1 to 5

1strongly disagree and 5strongly agree


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Sample size30

Method: MultiLevel Sampling

Reduces sampling errors

Proceduresurvey questionnaire across 3 different locations (DuDeira City Center, & Mirdiff City Center)

Electronic Form technology used for the survey


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Quality

Price Deals

Store Image

Brand Association

Loyalty

Ad Campaign


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GENDER

FEMALE, 18,

60%

MALE, 12, 40%


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AGE

16 - 24 YEARS,

8, 27%

25 - 30 YEARS,

10, 33%

ABOVE 30

YEARS, 12, 40%


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Step 1:

MULTIRESPONSE ANALYSIS

Step 2:

TWO STEP CLUSTER ANALYSIS


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MULTI RESPONSE ANALY(MACRO LEVEL ANALYS


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0.00%0.00%

41.70%

58.30%

0.00% QUALITY

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

6.70%

33.30%

43.30%

16.70%

0.00%

PRICE DEA


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0.00%

0.00%

28.30%

70.00%

1.70%

STORE IMAGE

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0.00%0.00%

0.00%

55.00%

45.00%

BRAND ASSOC


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40.00%

60.00%

0.00% 0.00% 0.00%

AD - CAMPAIGN

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0.00%

8.30%

60.00%

31.70%

0.00%

LOYALTY


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TWO STEP CLUSTER ANAL(MICRO LEVEL ANALYS


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TWO STEP CLUSTER ANA

16- 24 years 25

30 years Above

QUALITY AGREE NEUTRAL AGREE

PRICE DEALS AGREE DISAGREE DISAGR

STORE IMAGE AGREE AGREE AGREE

BRAND ASSOCIATION STRONGLY AGREE AGREE AGREE

LOYALTY NEUTRAL AGREE NEUTRAADCAMPAIGN DISAGREE STRONGLY DISAGREE DISAGR


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STRENGTHS

QUALITY

STORE IMAGE

BRAND ASSOCIATION

WEAKNESSES

Advertisement

Lack of Promotional Offers

Customers are not particularly loyal to the brand


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OPPORTUNITIES

Zara can increase the share of youngsters (1624 age group)

THREATS

Others brand can attract the customers who are not loyal


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From the analysis we have done, we suggest Zara two major things

1. Their is an opportunity to increase the customers between age 24 years as they are generally satisfied on all the parameters.

2. As the age group of 30 + constitutes major percentage of Zaracustomers, we should implement plans for their retention of this

To achieve this we have proposed the following suggestions:


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Price Deals

Special promotional offers must be given to the young professionexecutives like providing special discounts if they show their busin

Loyalty

Loyalty Club Cards must be introduced to give rewards for freque

shopping

Advertisement

Zara must increase their advertisement budget to attract more cand increase awareness.


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THANK YOU


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Q&A

Date post:	03-Apr-2018
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Zara Marketing Company Project

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