RESEARCH PAPER

1st
30 Marks

DirAisha Tarek Noour

 Arab Academy for Science,
Technology and Maritime
Transport

College of Management and

Technology
Alexandria Branch

Undergraduate Programme
Course Code and Name: EA417 Management of Distribution
Assessment Research Paper (1st)
Fall 2020/2021
Student name: registration number:

Instructor: Dr. Aisha Tarek Noor

Assistant Professor

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A. Organization Background and History
i. State the number of branches worldwide and it’s headquarter.
Zara, a Spanish apparel and extras retailer, was established in 1975 by Amancio Ortega and
Rosalia Mere. It is the leader retail location of the Inditex gathering, a design bunch that
claims different brands, for example, Massimo Dutti, Pull and Bear, Uterque, Stradivarius,
and Bershka.

Amancio Ortega opened the primary Zara store in a focal road in Galicia, Spain under the
name Zorba. Albeit another stores a couple of squares away was likewise named Zorba, the
molds of the letters for the sign was at that point made and it was adjusted, in this manner
thinking of the name Zara. In 1980, the organization began its global extension in Portugal.
In 1989, they infiltrated the US market and in 1990, they entered the French market.
ii. Get the number of organization branches owns (Location and address worldwide).
 First Running Branch:1975 in a central street in downtown La Coruña, Galicia, Spain

 First Running Branch in Egypt: City stars second floor, Omar IbnAlkhattab street Egypt in
2007
 The Number of Branches Owned World Wide:1808 stores

 The Location of branches World Wide: Algeria:2

Egypt:4Morocco:4 SouthAfrica:3 Tunisia:2Mexico: 60  Brazil: 46 United States: 45Canada:
23 Colombia: 11 Argentina: 10 Venezuela: 10 Chile: 8 Dominican Republic: 3 Costa Rica:
2 Ecuador: 2 El Salvador: 2 Guatemala: 2 Honduras: 2 Panama: 2 Puerto Rico: 2  Uruguay:
2  Peru: 1 China: 149Japan: 89 South Korea: 40 Saudi Arabia: 27 Israel: 21 India:
13 Indonesia: 12 Thailand: 11 Hong Kong: 10 United Arab Emirates: 10 Malaysia:
9 Australia: 8 Singapore: 8 Lebanon: 6 Philippines: 7 Taiwan: 6 Kuwait: 5 Kazakhstan:
3 Bahrain: 2 Jordan: 2 Qatar: 2Oman: 1Europe: 1428

iii. Get the date of the first entering branch in Egypt.

First Running Branch in Egypt: City stars second floor, Omar IbnAlkhattab street, Egypt
in 2007.
iv. State type of the organization [Domestic/ Multi-national/ Global organization].
v. In a case of Domestics organization.
II. Type of organization: Global
1. Get the first starting branch.
First Running Branch: 1975 in a central street in downtown La Coruña, Galicia, Spain

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2. Get the number of operating branches in Egypt.
Zara have 12 branches in Egypt s

B. One Paragraph description of the individual project

This task to depict the conveyance in Zara worldwide however extraordinarily in Egypt to
show how they disperse to their stores in Egypt
C. Mission and Vision.
MISSION STATEMENT
Zara statement of purpose is to "give clients what they need, and get it to them
quicker than any other person." Such an oversimplified, compact, and clear
articulation shows why this organization has been so productive. It has the
accompanying parts:

1. Distinguished items

2. Improving lives

Zara is more worried about the preferences and interests of its customers instead of
essentially pushing styles on the lookout. That is the reason the organization devotes
more opportunity to find out about these 'needs,' to illuminate the plans regarding its
items. Obscure to numerous contenders, this is the thing that makes Zara brand
unmatched. The organization has additionally discovered that by fulfilling the needs
of the customers when required, it improves their lives and makes dependability. The
one of a kind gracefully tie received by Zara to speed up conveying new items
quicker has made it a sweetheart in the Spanish and worldwide business sectors.
VISION STATEMENT

Zara vision statement is “to contribute to the sustainable development of society

and that of the environment with which we interact.” Its main parts include

1.Developing society

2. Improving the climate

Through its corporate social duty, Zara continues exhibiting its obligation to progress
of the lives of individuals. In addition, the organization additionally underpins a wide
scope of ecologically cognizant projects to help the solidness and safeguarding of
normal assets.
Values and Ethics.

VALUE
Zara basic beliefs incorporate "excellence, clearness, usefulness, and supportability." The
organization utilizes these as the core values in its activities. As a design organization, Zara

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 recognizes the significance of encouraging reformist societies to remain alert and refreshed with
market requests.
ETHICS
• Environmental Impact. With regards to the planet, Zara gets a 'Not Good Enough'
appraising from us

• Labor Conditions. Zara again scores 'Not Good Enough' for work

• Animal Welfare

• Overall Rating: Not Good Enough

• Good Swaps.

D. Organization structure and culture.

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 Zara association structure is a progressive progression of subjection of practical division. It
is an efficient structure, by taking a gander at this, workers realize who to answer to, and
would discover simple to speak with their associates. Along these lines, it would improve
the proficiency of making work simpler just as efficiency of representatives. With more
than 200 expert originators, they worry about client needs, at that point make garments with
society's patterns, thoughts to build up their items. The Inditex Company is possessed a few
retails store incorporates Zara. Amancio Ortega Gaona is a Chairman of the organization.
Pablo is the First Deputy Chairman and CEO; Carlos is the Second Deputy Chairman.
Antonio is the Secretary. Under the top administration of Inditex, there are some more
modest administrators, for example, senior supervisors, territorial directors and nation
troughs. They oversee 70,000 global staffs.

E. PESTEL Analysis or SWAT Analysis

Strength
Solid brand picture

Multi – public brand

Enormous store

Wide assortment of items

Weakness
Most popular trend patterns

Just one store in Alexandria which might be not available to all clients

Low in-store stock

Opportunities
No larger sizes

Open new stores

Threats
Social showcasing

High rivalry

No promoting effort

Monetary conditions

Greater cost tag than significant contenders, for example, H&M

PEST Analysis
SUB/FORCES
1. Political Forces
Yes/No General Comment (s)
A. Government Legislation Yes
B. International Law Yes

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 C Wars yes
.
D Local Regulations Yes
.
E. Taxation Yes
F. Trade Union Activities Yes
2 Economic Forces
Yes/No General Comment (s)
A. Globalization Yes
B. Competitors and Supply Chain Yes
C Currency Exchange rates Yes
.
D Employment and wage Rates Yes
.
E. Landing Policies of Financial Institutions Yes
3 Socio-Cultural Forces
Yes/No General Comment (s)
A. Demographic Trends Yes
B. Lifestyle Changes Yes
C Availability Skills Yes
.
D Attitudes toward Work Yes
.
E. Gender Issues Yes
F. Willingness to move Yes
G Ethics Yes
.
4. Technological Forces
Yes/No General Comment (s)
A. Information Technology and the Internet Yes
B. New Production Forces Yes
C How Technology is sold and serviced Yes
.
5. Environmental Forces
Yes/No General Comment (s)
A. Education Yes
B. Climate factors Yes
C Social capital Yes
.
D Stress Yes
.
6. Legal Forces
Yes/No General Comment (s)
A. Consumer law Yes
B. Copyright law. Yes
C Health and Safety law. Yes
.
D Employment law. Yes
.
E. Import/Export law Yes
7. Ethical Forces

F. Overall measurements of success for this company. 

Zara is one of the world's best design retail marks – if not the best one. With its emotional
presentation of the idea of "quick style" retail since it was established in 1975 in Spain, Zara tries to
make mindful energy for design among a wide range of buyers, spread across various societies and
age gatherings. There are numerous variables that have added to the accomplishment of Zara

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 however one of its key qualities, which has assumed a solid function in it turning into a worldwide
design force to be reckoned with as it is today, is its capacity to put clients first. Zara is fixated on
its clients, and they have characterized the organization and the brand's way of life directly from
the earliest starting point.

The Zara brand offers people apparel, youngsters' dress (Zara Kids), shoes and extras. The sub-
brand Zara TRF offers trendier and in some cases edgier things to more youthful ladies and young
people.
Part Two: Marketing Channels: Structure and Functions (ILOS 3.1; 3.2)
A. The organization branch analysis.
i. Branch overall Analysis
1. In a Case of Online Retailer

Website Checklist
Evaluation of The Online Store Appearance
Factors Yes General Comment (s)
/No
1. Enhance image Yes
2. Generate sales yes
3. Reach geographically- isolated customers Yes
4. Provide information to customers Yes
5. Promote new products Yes
6. Demonstrate new product benefits Yes
7. Provide customer service (e.g., e-mail) Yes
8. Be more “personal” with consumers Yes
9. Conduct a retail business efficiently Yes
10. Obtain customer feedback Yes
11. Promote special offers Yes
12. Describe employment opportunities Yes

2. In a Case of Physical Store

Evaluation of the Store Appearance Checklist
Factors Yes/ No General Comment (s)
Exterior Store Appearance Yes
1. Is the parking lot and sidewalk clean and well-lit? Yes
2. Are the windows clean? Yes
3. Do signs convey the correct image? Yes
4. Can the business be easily identified from the road? Yes
Interior Store Appearance
1. Is the store atmosphere and décor appealing to Yes
consumers?
2. Is the floor free of debris and does it appear clean? Yes
3. Are all light fixtures working properly? Yes
4. Does the store appear well-lit? Yes
5. Are interior signs consistent with the font and color on Yes
the outside of the store?
6. Does the store look like it's full of inventory? Yes
Evaluation of the Parking Checklist
Factor (s) Yes/No General Comment(s)

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 1. Number Parking Spots Yes
2. Quality of Parking spots Yes
3. Distance to store Yes
4. Arability of employee parking Yes
5. Payment (Charged or non-charged) Yes
Evaluation of Transportation on Checklist
Factor (s) Yes/ No General Comment(s)
1. Availability of mass transit. Yes
2. Access from major highways. Yes
3. Ease of deliveries. yes

ii. Visual Elements of Your Store Analysis

Visual Elements of Your Store Analysis

Factors
Layout
Yes/ No General Comment(s)
1. Geographic location of the retail store (real estate) Yes
2. Size of the building and length of the walkways accessible Yes
from the entrance and exit
3. Use of furniture and exterior space for people to gather and Yes
interact
4. Style of architecture of the retail building Yes
5. Color of paint and choice of exterior building materials Yes
6. Design of the physical entrance and exterior window displays Yes
H/M/L General Comment(s)
1. Traffic Flow Yes
2. Lighting Yes
3. Display Space Yes
4. Strong Displays Yes
5. Store Design Yes
6. Checkout Area Yes
7. Shelf and Rack Design Yes
Displays and Signage
Yes/ No General Comment(s)
1. Interactive installations to engage shoppers Yes
2. Music that appeals to your customer base Yes
3. Creative lighting that creates dramatic effects Yes
4. Eye-catching visuals that draw people Yes
5. Colors that enhance the atmosphere Yes
6. Scents that are unique to your store Yes
Use of Technology
Yes/ No General Comment(s)
1. In-Store Wi-Fi Yes
2. Mobile POS Systems Yes
3. Sales Staff Tools Yes
4. Integrating with Social Media Yes
5. Electronic Price Tags Yes
6. In Store Apps Yes
7. Self-service check out Yes
Note:

iii. Branch Location Analysis

Evaluation of Store Location

Mall Space

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 Yes/No General
Comment(s)
1. Lots of foot traffic Yes
2. Anchor of community shopping Yes
3. Less advertising needed for customers to find you No
4. Immediate competition from other stores. Yes
5. Regulations and rules from mall management Yes
6. Higher rent than other retail locations Yes
Shopping Centers
Yes/No General
Comment(s)
1. Fewer rules and regulations for retailers Yes
2. High visibility from street Yes
3. Lower rent than many malls Yes
4. Often served by bus routes/public trans Yes
5. Less foot traffic Yes
6. Parking can limit accessibility Yes
7. Lack of modern facilities and updates Yes
Downtown Area
Yes/No General
Comment(s)
1. More freedom/fewer rules for business owners Yes
2. Attractive to younger customers who prefer urban living Yes
3. Heavy foot traffic Yes
4. Expensive or limited customer parking Yes
5. High rent Yes
6. Limited ability to expand/adapt your space Yes
Free Standing Retail Locations
Yes/No General
Comment(s)
1. Few or no restrictions from landlords Yes
2. Reasonable cost per square foot Yes
3. Limited immediate competition Yes
4. Local zoning may restrict retail activities Yes
5. Lack of foot traffic Yes
6. Requires regular marketing to attract customers Yes
Home-based Retail Stores
Yes/No General
Comment(s)
1. Inexpensive to start Yes
2. Flexibility balancing work and family life Yes
3. Regulations can restrict use of space, accessory structures, or Yes
number of customers you can have on-site at once
4. Lack of parking Yes
5. Difficulty separating work and family life Yes
6. Limited room to grow/expand Yes
Emotions and attributes associated to colors
Yes/No General
Comment(s)
1. Yellow – Cheerfulness, friendliness, happiness, youth Yes
2. Orange – Fun, liveliness, energetic, invigorating Yes
3. Red – Speed, anger, passion, vigorous, urgency Yes
4. Green – Growth, balance, nature, refreshing Yes
5. Blue – Stable, security, trust, knowledge, tranquility Yes
6. Purple – Royalty, wisdom, authority, spirituality Yes

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 7. Pink – Warmth, friendliness, nurture, softness Yes
8. Brown – Toughness, reliability, earthiness, seriousness Yes
9. White – Purity, peace, virtue, cleanliness, simplicity Yes
10. Grey – Maturity, compromise, composure, impartiality Yes
11. Black – Luxury, glamour, secrecy, formality Yes

B. Choosing one of the organization branches in Egypt

The Location: Egypt, Alexandria City Centre

C. Start to write the address of the location down.

The Address: Cairo Alexandria Desert Road, Alexandria City Centre, inside Carrefour.

D. Get the map of the location from website. (you can use google Map/search engine)

E. State the organization product portfolio/product line(s) [product/ service merchandise width
and depth].

Width>> Women men kids

depth^^
Clothing Clothing clothing
Handbags footwear footwear
Footwear Perfumes
Perfumes Swimwear Nightwear
Accessories and and
underwear underwear.
&accessories

F. Types of Marketing Channels [B2B and/or B2C]

a. Multi-Channel
b. Dual Channel
c. Direct and/or Indirect Marketing Channel(s).

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 B2C
Direct Channel: Through Zara store located in Alexandria City Centre.
ii in A case of Direct Marketing Channel
Type of Direct Marketing
Factor(s) Yes/No General Comment(s)
1.  Internet marketing. Yes They use web
advertising to show their
items
2.  Direct mail Post Mail Yes They send messages for
their unwavering clients
3. Social Media Yes They have a solid web-
based media
4. Mobile App Yes They utilized a versatile
application to sell
5.  Catalogs Yes For the new year
assortments
6.  Telemarketing No For the new year
assortments
7.  E-mail Yes They send email after
purshacse to the client
and aslo for new offers
and birthday
8.  SMS Marketing Yes They use sms crusade for
new offers and season
assortment
9.  Print Ads Yes They post in a magazine

Part Three: Designing Channel Strategies (ILO 3.4)

A. End-user Analysis: Segmenting and Targeting
i. Understanding the importance of Segmentation
Category Variable Target market
Demographic Gender Male /female
Age 18 to 40
Income High income
Mid-range
income
Psychographic Lifestyles Formal
semi-formal
casual
Sports wear
Interested in
fashion trends

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ii. Determining the channel objectives: End-user segmentation criteria: service outputs
requirements- based on (Bulk Breaking, spatial convenience, waiting time, product
variety and assortment, customer service, and information sharing)

Channel Objectives:
Parcel size: Customers purchase in single things.

• Market decentralization: the store is situated in open area in an advantageous area

• Waiting time: holding up time is low. IT needs only fourteen days to grow new items and get it to
the stores.

• Product assortment: Variety of items for men ladies and children. TRF and zara

• Service back up clients declared that there is a decent assistance reinforcement when any
imperfections are inspected in the items and they can return or trade them concurring arrangement
and rules composed at the rear of the receipt.
B. Evaluation the marketing coverage of the organization- based on (Intensive/ selective
/exclusive marketing channels).

Specific channel as they sell strength items that has high or moderate costs and need client
support.

C. Allocating the channel tasks and responsibilities among channel members.

Insert Table

Provider: We have around 3,000 item providers in more than 88 nations

Producers: Are answerable for the assembling of excellent merchandise. This could be ensured
through the provider's endeavors to convey results first class.

Coordination’s: It's answerable for getting the correct items to the perfect spots at the perfect time.
It may sound basic, yet when you think about the number of items, providers, stores and individuals
we have, it abruptly gets significantly more muddled.

Retail location: Deal with all clients.

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 D. Conflict management and resolution.
i. State the natural of marketing channel conflict- based on (Horizontal/ intertype/
vertical/ vertical marketing system (Forward/ backward virtual conflicts).

Channel Conflict Horizontal forward clash exists between the maker and stores in Egypt. As
the cost in Zara Egypt is high contrasted and different stores in different nations and
individuals see that their items are overrated. That is on the grounds that they settle high
assessments, high lease and furthermore high traditions charges in Egypt.

How the association defeats this contention retailer and maker should set together an
objective benefit and set new estimating methodology that fit the shopper and furthermore
didn't influence the retailer benefits.
Part Four: Conclusion (ILOs 3.1, 3.2, 4.1)
I. Write an overall conclusion. Recommendation
• Maybe they can add hefty sizes segments in the ladies and men offices.

• Widening more assembling industrial facilities instead of relying upon just one
production and one conveyance place on the planet.

• Opening more branches in Alexandria.

II. Be free of new information (not mentioned above).

The appealing area of Zara gives favorable position of drawing in enormous number of
clients all things considered inside one of the main malls in Alexandria. Appealing store
flags, large store size, and its wide determination of items which target diverse age
purchaser likewise pull in numerous clients.

Part Five: References (Ilos 4.1)

https://www.inditex.com/about-us/our-brands/zara

https://www.zara.com/eg/en/#utm_referrer=https%3A%2F%2Fwww.google.com%2F

https://www.zara.com/eg/en/#utm_referrer=https%3A%2F%2Fwww.google.com%2F

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https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-culture-of-
customer-co-creation/
https://www.zara.com/eg/en/z-stores-st1404.html

https://www.citycentrealexandria.com/shopping/fashion-unisex/zara
https://www.studocu.com/en-au/document/federation-university-australia/organisational-
culture-and-management/assignments/zaras-organizational-culture-and-
structure/1972098/view
http://en.wikipedia.org/wiki/Zara
https://penmypaper.com/free-paper/corporate-strategy-of-zara
https://www.slideshare.net/JakeRoviralta/zara-final-pdf
https://www.google.com/search?
q=zara+organizational+structure&sxsrf=ALeKk02WpUzngGsJ4AAXW-
GtGLkCggHz9A:1606999866492&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiM2ciB
7bHtAhWsTRUIHfirB9cQ_AUoAXoECBYQAw&biw=1366&bih=625
https://studybayhelp.co.uk/blog/zara-organizational-structure/

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