ZARA

GROUP 21

SHARVARI NAIK- (Marketing)

MAHESHWARI MAHAJAN- (Marketing)

SHUBHAM SINGH- (Marketing)

KAJOL RATHOD- (Marketing)

RIDDHI RATHOD- (Finance)

INTRODUCTION

❖ Amancio Ortega and Rosalía Mera launched the Spanish clothing company
Zara in 1975. One of the biggest fashion retailers in the world, the Inditex
Group, includes the business.

❖ Zara is renowned for its "fast fashion" philosophy, which refers to how quickly
company creates apparel designs and adapts to emerging trends in the
industry. Clothing, shoes, accessories, and fragrances for men, women, and
kids are available at Zara's more than 2,000 locations in 96 different countries
across the world.
❖ The brand is well-known for making fashionable, high-quality clothing
that is also reasonably priced, and it is now a favourite among
customers who are fashion-conscious.

❖ Zara's market share is 11% of the worldwide apparel industry, and it enjoys
the highest profit margin of all its competitors.

❖ Fashion companies typically produce around 2,000 to 4,000 items every year,
Zara produces 10,000.
• MISSION- This organization wants to provide products and services according to
their customers’ demand.

• VISION- Providing effective and efficient workforce in the organisation who helps
them to achieve their future objectives.
Operational processes:

Zara’s overarching strategy is achieving growth through diversification

with vertical integrations. It adapts couture designs, manufactures,
distributes, and retails clothes within two weeks of the original design
first appearing on catwalks.
- Just in Time production

- Lean inventory management

- Centralized order fulfilment

- Solid distribution network

- Fast fashion success

4P’s of Marketing-
1. PRODUCT-
* Instant fashion brand.
* Quick brand’s growth & reputation.
* Latest styles, trending designs,
affordable prices
3. PRICE-
* Latest fashion items at affordable price
also they have premium brand for other
customer segment.
* Meet large customer segment.
2. PLACE-
* 3000 stores worldwide.
* Everything without 3rd party.
* Online platform
4. PROMOTION-
* Spend little on Promotion campaigns.
*Experience, exclusivity, affordability,
differentiation- key promotional strategy.
* Word of mouth
❖The promotional and advertising strategy in the Zara marketing
strategy-

Zara barely spends any money on advertising. It is famous for being press shy. Even its owner
never gives any press interviews. Unlike its competitors, It doesn’t engage in any flashy campaigns.
This is the reason why Zara’s advertisements are not visible on television. However, its outdoor
advertising is eye-catching and focuses on the fashion trends which the youth prefer. Zara’s unique
selling proposition is its short processing time, a large variety of styles and affordable pricing. It
relies on word of mouth promotion and social media rather than expensive marketing tools. Zara’s
social media reach is quite exceptional. It has 30 million followers on Facebook and 45 million
followers on Instagram. It is interesting to note that Zara doesn’t put its logo on their products.
Zara prefers spending their percentage of revenue in opening new stores. The brand spends money
on expensive real estate for its stores and on its décor. Zara believes that its show windows are
suffice for advertisements and they do not need anything else to sell their products.
❖ The power of brand loyalty.
Speaking of loyal customers, Zara's meaningful experience and values tap the potential of frequent
buyers to promote the brand. Rather than spending more on pushing marketing out (it only spends
about 0.3% of sales on advertising), Zara pulls customers in and turns them into brand evangelists to
spread word of mouth about the brand.On social media channels, Zara has over 28 million Facebook
followers, over 39 million on Instagram, and over one million on Twitter. These are used to analyze
what is on trend or being said on social platforms. This is used to improve operations, services, and
products to keep customers satisfied.

❖Convenient physical store locations.

While Zara doesn't spend much on advertising and promoting, it invests heavily in the location and
appearance of 2,250 stores around the world. Not only that, but Zara also delivers the brand
experience and products when and where the buyers demand it. Through technology and mobile
connectivity, shoppers can access inventory not present in their locations conveniently. It currently has
39 online markets. The location strategy of Zara is to put stores in high-street retail areas of major
metropolitan cities. The stores are likely to be near high-end fashion brand stores. Zara has the
courage to continually strengthen its portfolio by closing underperforming stores and opening new
markets, so its flagship stores keep the reputation among loyal shoppers
The Human Resource Strategy-
• Quick response system.
• Promote teamwork
• Transmit a young, modern and successful image
of the company
• Highly motivated.
• Ability to make decisions in a short time.
• Monetary and non- monetary benefits.
• Zara hires young people.
• Provides training.
• Open communication lines and the organizational culture is
flexible and well-diversified.
TALENT ACQUISITION-

Identifying
Shortlisting Application
Company’s Job Description Screening CVs
Candidates form
needs

Contract and
Decision
Interview salary Hiring
Making
discussion