The founders of the company are Amacio Ortega and Rosalia Mera, who first started the business I 1975, many years later the company grew into Inditex- one of the biggest fashion retailers internationally. Economically, there are huge impacts on the fashion industry, as the world is currently facing a global recession and, as such, consumers are facing difficult choices in terms of how they spend their disposable income. The explanations will provide more insights on the quantitative data and will be mainly based on the interviews. The Zara brand story Zara was founded by Amancio Ortega and Rosalía Mera in 1975 in downtown Galicia in the northern part of Spain. Another concept is that quality of a product defines its price and influences the brand image.
Zara ensures that their pricing system is market and brand oriented. Based on latest styles and trends, it creates new designs and puts them into stores in a week or two. Moreover, the crucial role of Zara philosophy has been demonstrated. All these are the product strategy in the marketing mix of Zara. It has thus become necessary for businesses to invest heavily in marketing to have chances of succeeding in the market.
It also provides a larger assortment of designs and styles compared to the average retailers. Zara has achieved a position within the market that encourages individuals to look towards the brand as a means of gaining cutting-edge fashion, at a low cost, and the design of these products is therefore critical, if this position is to be maintained. Retail Week, Accessed March 26, 2014 Pailin, J. Apart from its stores, it also sells online. This has made Zara products to be iconic brands that people easily identify with Raffaelli, 2011; Goi, 2009. Caring Employees - They train their employees to prove better service Having a sense of belonging to the store and hard- working Market-oriented Strategy - The customer is the King. Its fast-fashion deliverable is available in the quantity, format and time in which the customer needs the product.
Conceptual Design The actual questionnaire comprised of questions, which focused on general information concerning Zara Company as well as how the various marketing strategies relate to the 4Ps. Despite this, the organisation is facing continual challenges, both in terms of consumer demand and costs; therefore, a detailed strategic analysis needs to be undertaken, to look at broader forces that are upon the industry and identifying ways in which the company can then use its own strengths and opportunity to establish an even stronger position within the high street fashion industry. Zara does that for them. This will enable the company to retain its position for supplying fast fashion within the high street and continuing to attract customers into the store, on a regular basis. Accessed March 30, 2014 Håkan H. Several other competitors within the market have suffered negative press, due to the use of suppliers associated with unethical practices.
Zara, a Spanish clothes and shoe manufacturer, with a chain of stores is one of the biggest clothes retailers in the world. Drawing on the four forces above, it can be argued that, finally, there is a large amount of competitive rivalry within the industry the fifth and final force. This entails analyzing the spending habits, which vary across the globe, company image, and setting prices accordingly. Demographical segmentation has been used considering factors like age, income and gender of the customers. This research makes use of self-administered questionnaires to maximize on the number of responses and ensure that the responses are reliable. A swot analysis summarises the key issues from the industry and the strategic capability of an organisation that are most likely to impact on strategy development.
It has been identified that one of the major advantages and strengths of the company is the fact that it can achieve a very rapid link to the market. Fashion Marketing: Building the Research Agenda. Accessed March 26, 2014 Cheng, R. They want their fashion affordable but trendy. Zara founded by Amancio ortega and Rosalia mera and set up their business activities with opening in coruña Spain of its first store in 1975. Founded by Amancio Ortega in 1975, Zara is one of the largest and best performing fashion and Clothes Company in the world. In 2010, Zara made an entry into the Indian market and opened its first store in Delhi.
This provides a sense of exclusivity to shoppers. Interdisciplinary Journal of Contemporary Research in Business, 4 7 , pp. Moreover, the research sought to establish how Zara is using the 4Ps price, place, promotion and product well to compete with their key competitors; how Zara overcomes the consumer behavior problem and make them always come to Zara. A substantial focus needs to be placed on the design team and ensuring that it is continuously developing new products which are able to be produced at a relatively low cost. The sales and marketing teams who receive trend feedback talk regularly with designers and merchandisers. New products are produced in relatively small batches which helps them give exclusivity.
This target group also needed to have a relatively high income, since the pricing strategy for the A1 included a price premium of 25% above the average price of cars in this segment. A lot of marketing takes place through its thousands of stores worldwide. Zara prefers spending their percentage of revenue in opening new stores. Their relevant market is separated into 50 % of fountain pens and the other half of ballpoint pens and others. Zara 's outstanding lead time is unbeatable in the industry at the moment. Zara's greatest strength and at the same time the difference from other specialty apparel retailers lies in its supply chain , which allows Zara to turn over new styles in a fraction of the time three weeks it takes conventional retailers.