Marketing analysis project BUS 260c Iva Naumova Kevin Zappia Valeriia Tretiakova Victoria Lyubykh 20\03\2013 In this presentation we are going to talk about: Inditex Group – Basic information Emphasis on ZARA affordable fashion retailer ZARA marketing strategy: Target Markets and Marketing Mix Outline Stores Around the World INDITEX is one of the world's largest fashion retailers, welcoming shoppers at its eight store formats -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 6.104 stores in 86 markets. Who are they? ZARA 1,770 ZARA Kids 166 Pull & Bear 825 Massimo Dutti 634 Bershka 910 Stradivarius 816 Oysho 533 ZARA Home 363 Uterque 87 Total 6,104 • Founded by Amancio Ortega and Rosalia Mera in 1975, headquartered in Arteixo, Spain • One of the largest international fashion retailer companies belonging to Inditex • Main competitor: Swedish H&M; along with GAP and Benetton due to global retailing status How did we gather our observations? • Visited online sources: official Inditex website official ZARA website Andres Vicente Ranz online blog dedicated to ZARA Zara brand profile by Belle Kwan • Zara’s target market is young, price-conscious, and highly sensitive to the latest fashion trends. They have an advantage over traditional retailers because they do not define their target by segmenting ages and lifestyles giving them a much broader market. • They segment their product line by women’s (60%), men’s (25%) and the fast growing children’s (15%) department. Who is the customer? Product Mission Statement “Through Zara’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts.” Product Vision “ZARA is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable” Positioning: Fast Fashion at Affordable Prices Price: 2000 data Price: Contribution 12 years after Distribution Print media Social Media ZARA.COM • 7.5 millions fans • “Light” social media strategy • Encourages brand love, but not purchase consideration Social Media Facebook Social Media Pinterest Available for Android, iPhone, Windows Mob, Nokia, and BlackBerry Mobile Applications • Real-estate Marketing • Word of Mouth Other communications Management Efficiency The focus on the customer and product requires that the unit is constantly re-inventing itself to avoid becoming obsolete. The final goal ultimately is to create a communication matrix for this purpose. Effectiveness of marketing communications Different Approach then Competitor • Zara only spends about 0.3% of their revenue on promotion so they can instead focus heavily on product, place, and pricing as opposed to promotion Effectiveness of marketing communications • Vogue Fashion's Night Out by 1 slides describing communications through events: ZARA • Description of events (what? where? who?) • ZARA fashion • Event patterns (regularity and schedule) show • Style of communication • Other observations? Events • Segmentation Targeting Marketing behavior Differentiation • Zara was described by Louis Vuitton Fashion Director Daniel Piette as “possibly the most innovative and devastating retailer in the world.” Zara has also been described as a “Spanish success story" by CNN The most interesting discovery Conclusions • Analyzing Zara's business model. (2011, March 03). Retrieved from http://www.harbott.com/2011/03/03/analysing-zaras-business-model/ • Chan, C. C. (2011, September 16). [Web log message]. Retrieved from http://blogs.ubc.ca/conradchan/2011/09/16/zaras-marketing-strategy/ • Gregorio. (2013, August 10). Vogue fashion’s night out Lisbon – 12 September 2013. Retrieved from http://portugalconfidential.com/2013/08/vogue-fashions-night-out-lisbonlisboa-fno-2013/ • HANSEN, S. (2012, November 09). How Zara grew into the world’s largest fashion retailer. Retrieved from http://www.nytimes.com/2012/11/11/magazine/how-zara-grewinto-the-worlds-largest-fashion-retailer.html?pagewanted=2&_r=3& • KWAN, B. (2011, September 03). Spanish domination – Zara brand profile. Retrieved from http://www.marketingmag.com.au/tags/zara/ • Ranz. (2011, March 15). [Web log message]. Retrieved from http://www.brandtrhough.blogspot.com/2011/03/who-are-zaras-competitors.html • SWOT analysis . (n.d.). Retrieved from http://zarafashion2013.wix.com • (2001, May 18). Retrieved from http://www.kellogg.northwestern.edu/course/opns430/modules/supply_chain_managemen t/Zara.pdf