Inditex Company Report

Introduction

The first section of this paper begins with Inditex's past and its corporate ideals and
strategies, with an emphasis on technological innovation. It then introduces history, markets
and business accomplishments of Zara and Massimo Dutti. The second portion concerns
Inditex's status as a corporation umbrella. A brief paragraph on the Inditex recruitment centre
linked to brand identification is also available. The brand strategy is described and tangible
and intangible assets are managed. The Brand Strategy aims to affect the consumer's
perception of brands. The brand definition and the difference between brand equity and brand
value are therefore described.

The third component deals with brand management analysis and the Key Performance
Indicators (KPI), essential to the company's analysis of the market. There are other examples
in the report of Zara and Massimo Dutti. The fourth aspect concerns the buying of decisions
and customer behaviour that relate to the pricing plan and a strategy for differentiation. The
brand gender strategy will next be discussed and the communication approach. The
conclusion sums up Inditex's success and its ability to combine powerful brands. In
conclusion, Zara receives a strategic suggestion.

Inditex

Inditex is a Zara, Massimo Dutti and Stradivarium, as well as Zara Home, Uterq and Oysho,
Bershka, Pull&Bear. The company operates more than 7,400 outlets around the world, with
46 of them online in 96 markets. The purpose of Inditex is "to create value over profit via the
centrepiece of human beings and the environment..." (The City of Inditex, 2018) While the
company sounds normal, Inditex invests much in social and environment-friendly
programmes. Inditex strategy focuses on retail optimization and integration of cutting-edge
technology for the improvement of store inventory, for example, the increased realism and
the radio identification frequency. Carlos Crespo, the Group's Internal Audit Director focused
on the company's digital process and strengthened the Group's integrated shops and online
business pattern. (The Player, 2018) Only Zara and Massimo Dutti will be evaluated for the
purpose of this report. Both brands have a particular history and are targeting different parts
of the market.

Zara

Zara is one of the world's best-known retail brands. It is regarded as Inditex's flagship brand
not just because it was the first to be opened up, but also because it was able to make
customers first. Zara's customers fascinated. The business model is to bring the goods closer
to the customers and give reduced prices. (For the first time in 2018, Martin Roll) The brand
name's origins are quite attractive. Indeed, following the renowned film Zorba dubbed Greek,
Inditex creator, Amancio Ortega wanted to name the company, although it had to turn it to
Zara because the name was stolen from a local bar in A Coruna already. Curiously, this
elegant, sure and energetic demeanour feels like the brand personality. (Hansen, 2012)
(Hansen)

Dutti's Massimo
Founded in 1991 by Armando Lausaca, Massimo Dutti joined the Inditex Group. It's
obviously Inditex's classy chic brand. The prices of the niche market are greater than the
other brands. It appeals mostly to metropolitan, cosmopolitan and self-employed clients.
(From 2018 to 2014) While the brand is fully Spanish, it's an Italian term for Massimo Dutti.
In fact, some buyers would consider it an Italian brand

Talent Center for Inditex and Recruitment

In order to lower unit cost and cut the time required to react and to respond to new trends,
Inditex created a new design, production and distribution method. This achievement is driven
by massive IT and human capital investments. (The City of Inditex, 2018) Inditex also
supplies these trademarks with strategic protection and support lines. When not sold, for
example, the fabrics are returned to factories for the subsequent seasons, redesign and
reproduction. (Switzerland, 2018) In the supply chain efficient management, Inditex aims to
produce zero waste. Inditex is a highly diverse and multicultural enterprise.

Hundreds of online and walk-in candidates are administered by the recruitment centre located
at Bond Street in London. These individuals were chosen, appointed for group interviews and
finally assessed by experienced recruiters in accordance with the recruitment process.
Regardless of the history of the candidates, the roles are offered under three criteria: attitude,
communication and availability. But since the Inditex brands are different, the applicant is
linked to the identification of the brand. For example, a Massimo Dutti sales assistant can
take on a different profile than a Zara or Bershka sales assistant. Inditex has 8 separate brands
that offer the candidate the possibility to work in all. In total it is a very inclusive corporation
(P Korinthian, 2018)

Brand, Brand and Value Strategy

Brand strategy refers to the set of choices and activities that a firm makes in order to manage
its resources to gain competitive advantages over the long term. These could involve the
implementation of a marketing plan for the products, communication, distribution channels
and notably the brands which are crucial components of the company's added value.
(Background, 2013) The brands thus constitute a guiding force for the company's overall
strategy. Brands can alter the behaviour of individuals. They can impact people's thinking,
feeling and doing. Zara, for instance, builds brand fans through meaningful brand experience
and valuable exchange. (Gdańsk, 2018). A brand refers to a... set of mental connections that
the consumer holds, which add to a product or service's perceived worth (Keller, 2013; p.8).
Intangible assets such as loyalty, identity and quality perceived in Brand Equity (Calderon et
al., 1997) While the value of the brand shows how monetarily the brand is worth if it is sold.
In order to build an efficient branding strategy, brand equity evaluation is important.
Essentially, a company must have a clear and defined brand strategy to develop a lengthy,
devoted consumer relationship.

Indicators of key performance

The key performance indicators or KPIs that employ proxies such as brand awareness and
market shares to better evaluate the impact of a brand on subbrands are a measurable
foundation for brands equity. This allows marketers to make choices and successfully manage
brands. Hopelain, J. 2017 (Phillips, C.). In a similar way, brand evaluation can provide the
brand with a chance to examine and underline its strengths and weakness in the marketplace.
(Background, 2013) It can examine in particular how buyers view brands in the portfolio. The
brands then choose their stances and values accordingly.

Strategy for Zara Pricing and Vertical Integration

Firstly, some brands acquire market shares by adopting a pricing strategy, generally
implemented by offering clients specials and promotions (Keller, 2013) For example, Zara
can provide lower pricing if the distribution channels are covered better than its competitors
employing a vertical integration strategy, which reduces unit costs to a minimal degree. (The
Tradegecko.com website is available for download). Probably the most rewarding brand
feature is the supplier chain of Zara. No one like Mango, Gap and Forever 21 is able, as
quickly as Zara, to create and deliver the goods. (Heidelberg, S., Linguri, S.,2016) Customers
see this brand aspect positively as it helps them understand the uniqueness of their
procurement. This brand element

Ranking of Zara

Zara is now named the 46th most valuable brand in the world by Forbes and shockingly does
not spend in the company's promotional services. Zara's success is in fact owing to heavier
investment in beauty, historical appeal and storefronts: Zara's stores are positioned beside
high street luxury companies, so that shoppers may see it as a brand that respects and
succeeds. Forbes.com 2018 (Forbes.com, 2018) Likewise, because of the reactivity to
changing market, the relevance to customer requirements and wishes and innovation, Zara is
the 25th most important brand on earth by Interbrand. (Forum, 2018) Brand innovation can
also create plagiarism between the different brands, although it is an important aspect of
brand strategy; indeed, it is suggested that some things from the brands can be identical. For
example Zara was criticised for imitating the designs of Los Angeles based indie designers.
Customer comportement and perception (Puglise, 2016)

However, buyers are usually encouraged to purchase for hedonic and non-functional reasons.
Essentially, they appreciate the brand and want it. (Hollywood, J. 2012) Nevertheless, the
brand will be impacted if the product does not have high quality. Zara thus combines its
brand equity with low-price as well as premium initiatives. In other words, by offering sales
and promotions, it maintains clients and obtains new customers who are prepared to pay more
by delivering them good quality products. However, the risk is of creating a camel brand in
the attempt to meet the main criteria of many market segments (Basement, 2013). (French).
Some brands could lose their affinity to their customers, particularly when they are trying to
reach a wider market segment. (Hollis, n.p.) Hollis The client may well be able to use
alternative brands if it does not see the brand as differentiated or exclusive.

Differential strategy for Massimo Dutti

On the other side, products are more expensive than competitors if a brand pursues
differentiation strategies. A successful, trustworthy brand streamlines client decision-making.
(Background, 2013) For example, Massimo Dutti has distinct value offers than Zara as they
are associated with clients that want quality. Confidence comes from a brand that keeps its
promise. As a result, clients are always prepared to spend more money. There is a profound
awareness of the segmentation of the market behind Massimo Dutti's success. (P Korinthian,
2018) The company has strengthened its marketing strategy to improve customer
understanding, increase brand awareness and increase its high street presence with Inditex
launching the UK's first Massimo Dutti marketing database. (Marketing precision v. 15, n. 44,
p. 6.