Ramandeep Kaur 1604981

Soni Dimple 1604495

Dhruva Brahmbhatt 1605006
Pearl Panchal 1604518
Urvashi Khatri 1602162
 INTRODUCTION

Founded by Amanico Oretego in 1974 ,Zara is a Spanish brand of clothes and accessories . Initially
Zara was named ZORBA and was later on renamed as ZARA by the founder.
After beginning in Galicia , Spain . Zara has 2169 active stores globally .
In 1980 , Ortega changed the design ,manufacturing and distribution process to reduce and react to
new trends in a quick way , which was called INSTANT FASHIONS.
The CUSTOMER" is at heart of its unique business model which includes design, production,
distribution and sales through its retail network.
The main mission of Zara is to be compact, where they would like the customers to be dressed in their
latest styles of high class and enjoy and experience unique designs weekly.
ZARA is a multi million pound successful retailer to sell clothes, footwear and accessories catered for
men, women and children which offers latest trends in fashion .New category of products are introduced
twice a year since it targets young customers who are sensitive towards latest fashion trends.
INDITEX is the head quarters of Zara at Spain, where ZARAS products are designed, manufactured
and sold throughout its chains all around the world.
 Zara started its international business in 1988 in Portugal and further expanded its business in the
United States in 1989 and so on. It entered India in 2010 and in the same year they launched their
online boutique.
In 2014, Zara introduced the use of RFID technology in its stores and in the following year Zara
was ranked 30th position on inter brands list of global brands and added 71 stores in its profile.
ZARA launches 12000 designs every year which had managed to provide fast affordable and
fashionable items. Moreover Zara is known for its eco friendly company. Clothing at Zara is 100%
toxic free.
ZARAS COMPETITORS

INDITEX ZARA PRIMARK GAP

SALES 23.31 billion $ 7.5 billion $ 16.4 BILLION

NUMBER OF 7292 4087 3727

STORES
INTERNATIONAL 66% 15% 34%
EXPANSION
BRAND VALUE $25.2 $12.7billion $12.2 million
 PRESENT BUSINESS OF ZARA

Zara is the most popular fashion brand in the international market. Its production is high in quality brand.
Although Zara was launched in 1980 it is still expecting more business in an international market. Now a
days Zara is primarily focusing on fashion trends prevailing in the present generation. Zara also has
much competition towards the fashion brands in countries like Morocco, India and Turkey.

Zara mainly motivates internalization, marketing, selection, marketing strategy. Its main competitors are
the most popular brands like H&M and GAP.

Zara is most popular because it has made drastic change in a clothing environment such as new fashion,
new style, new way, new look and also the methods," namely Benetton and Mango.

In case of the world of Zara is making effort to make new invention to bring the two countries together in
which they can make their business more high.

Zara todays competitive clothing and comparing the clothing accessories is going high day by day,
However the Zara organization states:-"our customers are basis and the reason of our group existence.
 EXTERNAL REVIEWS
[1] KEY TRENDS:- Zara uses a supply chain in market strategy in which it has used many new forms of
fashion by researching on the customers demand. Also a new key trend is formed by adopting new young
talented people to form the new fashion cloth for new trend.
- Key accessories for men: - leather bracelets.
- Key accessories for women: - clinched leather belts.
- Key accessories for kids: - leather sweaters, hooded fleece, parker and so many starts from 2 pounds and
many more with latest trend of 25 % discount on each cloth of kids.
[2] SPEED:- stock is changed every 2 weeks.
[3] DIRECTION:-ZARA use to direct the direction mainly on the growth of the production, product and the
geographic diversification is used by three clothing as their main direction is on women, men and kids.
[4] IMPACT:- the main impact of Zara is the customers like who use to like the brand like zara,zara use to
mainly impact on the customers like man, women ,and kids.
All this demonstrated frequently are measured on the basis of market response on the brand and the facility of
clothing way of performance.
Innovation is an impact on the customers about the satisfaction in which the valuable efforts can be shown
and are to be kept in to market for the purchasers.
 INDUSTRY FACTS
The key to success of this company is its connection between its stores , their designers and
their factories.
Each product which Zara sells, first lands up at Spain, irrespective of the place where it has been
outsourced from( china or Bangladesh).
Inditex the first store still exits on a street corner next door to a dentist.
Amancio Ortega, famous and press shy founder , who was formerly the CEO , at present being
the chairman still visits Zaras office every day and is still quite involved.

INTERNATIONAL PRODUCT STRATEGIES

All the branches adopts the same policy as used in home

Straight market.
Extension

Company works according to the desires and demand of its

Product foreign customers
Adaptation

Company designs and makes new products for their

Product customers
Innovation
 SWOT ANALYSIS OF ZARA
SUPPLY CHAIN MANAGEMENT
RAW MATERIAL
(purchase fabrics,
designs and shapes
them in-house)

SUPPLIERS
CONSUMERS
Suppliers are situated in
Delivered to various
close proximity of
stores
production houses

DISTRIBUTION
(Within Europe delivery is
done over night by trucks
and international shipment
is done by airfreight)
MANUFACTURING
(Clothes are properly
ironed and packed with
security)
MARKET
ZARA does not pair up with big name designers.
FACTORS It works on basis of team work and in betterment
SHOP ONLINE of the brand.
Online shopping is in huge demand with state
side customers. Online shopping was first
introduced in 2010 and at present U.S is the
biggest online sales market.
Majority of Zara's sales are on womens apparels
accounts to 60% where as sales of mens and
children apparels are nearly around 20% each.
Zara runs a futuristic looking data processing
centre which keeps a constant check on sales
and customers feedback.
 ZARAS CUSTOMER PROFILE
DEMOGRAPHICS PSYCHOGRAPHICS

Middle and High class

people Highly sensitive to
latest Fashion Trends
Aged between 18-40 years

Educated customers Conscious of there

working in urban areas looks and price

Regular users of online Who enjoy shopping

shopping sites and socializing

It is not surprising that Zara's main customers are females , because majority of house designers of Zara
creates 10,000 each year( petro,2012) . out of which more than half are of females.

Zaras core of brands success is its insistent focus on the customer . Due to Zaras competitive customer
research capabilities, its product offerings across its stores globally reflect unique customer needs and wants
in terms of physical, climate or cultural differences. It offers smaller sizes in Japan, special womens clothes
in Arab countries, and clothes of different seasonality in South America. These differences in product
offerings across countries are greatly facilitated by the frequent interactions between Zaras local store
managers and its creative team.
 ZARAS MARKETING MIX
7 P MODEL
PRODUCT

Known as COCO COLA OF The FASHION industry it

provides clothing and other fast fashion latest products for
women, men and children.
The Products Are based on the customer likings to the
Current market fashion industry requirements. This reflects
to the Social, Cultural ,economic and political Changes.
Product Symbolises Modernity And
Latest ongoing Trend.
Produces 500 Designs per Month.

PROMOTION

Zara spends 0.3% revenue on advertising; the

money saved is used in the opening of new stores
(Ghemawat&Nueno, 2006)
Advertising is been done from their own stores
visual window
Promotion mainly relies on word of mouth from
their returning and loyal customers
It is also Well known for end of season SALE at
good discounted prices.
 PRICE
It Uses cheap labour to keep up with the fast paced
ever changing fashion industry.

It focuses on Pricing strategy for giving a value

based pricing approach.

Zara also Uses psychological pricing example sets

a price of 9.99 rather than 10.since its target
group is price conscious customer who is
interested in fashion and good quality. It is always
important to ensure that quality does not suffer
from the price and cost pressure.
PEOPLE
People at Zara play an important role in its success
from designers to customer service assistants.
-It requires self motivated iconic people to promote
its brand
-Consistent with models
-Constant communication with the in house designers
at Head Quarters helps stores to correspond what
woks well and what does not.
 PLACE PROCESS

All the stores are located in busy retail areas

with other retail stores in surroundings Zara makes - process of purchase

It Uses the very own same architectural - Process of manufacture

approach -Process of delivery

And Interior design as parent organisation They Rely a lot on social media such as

known as INDITEX (According to Craig, Jones Instagram and other social networks to

and Nieto (2004) promote their products , and also get instant
feedbacks and comments from their
PHYSICAL EVIDENCE
customers. It helps them to understand and
This Acts as a strategy to attract customers know what a customer requirements are and
with their service(Fabrega, 2004) that which product will be in high demand so
A soothing Ambience at store is created by that their sale is maximum.
using colours, layout and music.
The Customers make judgement, based on
their experience with in the store.
ANALYSIS OF MARKETING:--
The marketing strategy of Zara, which is not to invest much on advertisement is not working well. It
can do more business by starting a market campaign and can fetch more market share.
POLITICAL ISSUES
Since Zara has its origin in Europe its facing illiberal policies of government in its labour law. In
2011,Zaras outsourcing outlet was discovered in Brazil by their local government which was producing
90% of Zara's products in Brazil for which parent company Inditex received penalties for unauthorized
outsourcing(Burgens& Phillips, 2011).
PRODUCT
Zara being of Spanish origin uses only few colours in designs, where as in country like India people
prefer bright colours. So cultural differences comes into picture.
LEGAL ISSUES
Another and major issue which company like Zara faces in India is the implementation of copyright law.
Even before the company launches its new design or product a replica or clone is introduced in the grey
market at a very low price by some unauthorised medium which directly influences the sale of new
products being launched by Zara. This majorly impacts the annual sale.
 ZARA
CONCLUSION RECOMMENDATIONS

Zara has successfully made itself an For further success Zara should keep
international brand in less than 30 on reinventing themselves and keep
years. coming up with innovative ideas.
Zara has slowly and steadily
Zara should expand their target group
transformed from local Spanish brand
, in order to have more customer
into a truly global brand.
footfall.
Zara has proved to be capable enough
to maintain its position in this Zara should cut on their production

competitive world. cost by outsourcing to developing

countries.
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