ZARA CASE STUDY 2011

Contents
Contents Intr oduction and Background Zara's marketing

strategyUnifi ed marketing approachVert ical integration Z ara's fivepoint

marketing approach to reach its customersCo mpany history Zara's products-

Manufacturi ng and distributi on Zara: Taking the Lead in FastFashion BAS .

Operation/E xpansion Key Success/Fail ureFactors Learning Points .IC BLACK.

and Recomm endations Fast Fashion: ZARA Zara doing .

what it does best. Fast Fashion Customer Pr ofiles .

Positioning Strategy Differences in Marketing Strategies for .

the Different Customer Segments Segmentatio n Strategy - .

Targeting Strategy Positioning Strategy - .

Differences in Marketing Strategies for the Different Customer Segments Zar a's competitiv .

enessConclus ion Referenc e Appendix of the Case Study attached .

Zara Case Study Page 19 .

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Introductio n and Backgro und The competitive advantages of .

fast productio n and product variation. Zara sells .Zara are because of its cost leadership.

.quality. fashionable productsat reasonable prices and based on product positioning.

Zara is cheaper thanits leading rivals as Benetton and Gap . .

Zara also has the ability to designand finish products to be delivered in stores within 4 to 5 weeks .

theclothing . Likewise.hence veryquick to get designerinfluenced products into their stores.

brand has the ability to launch new trends and designs in a muchshorter period. Zara t hereby boasts .

.for low level of inventory. efficientdistri bution system and high turnover of product.

International strategy at Zara is defined by the combined genericstrateg y of cost leadershi .

however.p and differentiatio n strateg y. There areconsiderati ons. such as when selecting the .

Lebanese market. labor cost and productivity. distribution cost and shipment cost of raw .

materials areconsidered. Other considerations are characteristics or behavior of consumers and .

In terms of marketing approach. the considerations include the 4Psinherent to .income per capita.

the Lebanese consumers an d business env ironment. . Mar ket entryconsi derations include economics.

both macroeconomi c factors which includetax. political condition and export tariff .

.and microeconomi c factors includinglocal competitors. demand and location of store.

Regulation from governmentan d local producers protection issues are other .

considerations . Zara is a popular Spanish clothing store that uses .

the company . Because they do not outsource their manufact uring.a very unique marketingstrat egy.

Zara's Unique .isable to more quickly respond to fluctuating customer demands in fashiontrends.

Selling Proposition (USP) is to create or imitate thelatest trends within a short two- .

In the case that a product .week period. the new styles are available onsales floors for no longer than 4 weeks.

does not sell.its inventory is immediately pulled from the floors and discontinued after .

the company ...Zara is said to have the "most unusual strategy.oneweek.its policy of zero advertising.

preferred to invest a percentage of revenues in opening new Zara Case Study Page 19 .

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