Scribd Logo
Upload

Welcome to Scribd!

  • 75 views

    Neeraj Garg - 19020841021 - Pricing - Zara PDF

    Uploaded by

    Neeraj Garg
    Zara follows a low-cost business model and pricing strategy compared to its competitors. It focuses on fast fashion with cheap labor, materials, and production to offer the latest fashion trends at much lower prices, about 1/4 the price of other brands. Zara uses a market-based pricing approach, setting prices consumers are willing to pay to earn a profit. It also offers discounts and sells unsold products at low prices to clear inventory. Zara's vertical integration and quick production cycles allow it to introduce new designs rapidly in response to changing fashion trends.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Neeraj Garg - 19020841021 - Pricing - Zara PDF

    Uploaded by

    Neeraj Garg
    75 views1 page
    Zara follows a low-cost business model and pricing strategy compared to its competitors. It focuses on fast fashion with cheap labor, materials, and production to offer the latest fashion trends at much lower prices, about 1/4 the price of other brands. Zara uses a market-based pricing approach, setting prices consumers are willing to pay to earn a profit. It also offers discounts and sells unsold products at low prices to clear inventory. Zara's vertical integration and quick production cycles allow it to introduce new designs rapidly in response to changing fashion trends.

    Original Description:

    Original Title

    Neeraj Garg_19020841021_Pricing_Zara.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Zara follows a low-cost business model and pricing strategy compared to its competitors. It focuses on fast fashion with cheap labor, materials, and production to offer the latest fashion trends at much lower prices, about 1/4 the price of other brands. Zara uses a market-based pricing approach, setting prices consumers are willing to pay to earn a profit. It also offers discounts and sells unsold products at low prices to clear inventory. Zara's vertical integration and quick production cycles allow it to introduce new designs rapidly in response to changing fashion trends.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views1 page

    Neeraj Garg - 19020841021 - Pricing - Zara PDF

    Uploaded by

    Neeraj Garg
    Zara follows a low-cost business model and pricing strategy compared to its competitors. It focuses on fast fashion with cheap labor, materials, and production to offer the latest fashion trends at much lower prices, about 1/4 the price of other brands. Zara uses a market-based pricing approach, setting prices consumers are willing to pay to earn a profit. It also offers discounts and sells unsold products at low prices to clear inventory. Zara's vertical integration and quick production cycles allow it to introduce new designs rapidly in response to changing fashion trends.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Assignment-1: ZARA

    Submitted By: Neeraj Garg, PRN: 19020841021

    Zara’s products are high on fashion and low on prices. Zara provides the latest fashion at much lower prices in
    all its international stores as compared to other competing international brands. Zara follows a low pricing
    strategy. It can afford to do that as it doesn’t spend an enormous amount of money on advertisements and raw
    material. It has an overall low-cost structure compared to its competitors. Zara’s prices are country-specific.
    The tagging on their products is done locally in each respective market. Zara sets a market-based pricing
    strategy that sets the target price consumer is willing to pay. The budget for production according to the target
    price. This, in turn, fixes the profit margin they earn on every item. This gives an insight into the marketing mix
    pricing strategy of Zara.
    Zara has a low level of discounting around the year and discount sales of 50% or more twice in a year, for which
    the consumers eagerly wait.
    Zara primarily focuses on fast-fashion brands that have cheap labor, cheap materials and fast production
    schedules. These factors enable Zara to adopt a low pricing strategy. ZARA was recognized for its first-class
    image, second-class production and third-rate price. It doesn’t have an expensive design, advertising and raw
    material costs. Zara’s prices are about 1/4 of other brand prices.
    Zara provides products at a reasonable price to target customers. Zara will win on price. Zara’s prices are less
    expensive than luxury fashion brands. Gucci, Chanel, and Louis Vuitton raise the price of products in recent
    years. Compared with these luxury fashion brands, one of the real competitive advantages for Zara is the price.
    Zara’s pricing strategy not only the value proposition is evident but also is affordable to most customers.
    Luxury brands have to admit Zara has a strong position in the global market.
    Zara mainly uses value-based pricing approaches. The strategy focuses on customers' perceptions of value rather
    than the company’s costs to set prices. Its target customers want fashion clothes but could not afford the high
    price of luxury fashion brands. Zara counts broken code and unsaleable products every day. These products will
    be sold at a low price. Also, it often provides discounts at the end of the season.
    Zara designs as well as manufactures a majority of the apparel that customers buy in its stores. This is very much
    in contrast to the traditional high-volume fast-fashion companies, which outsource most of their manufacturing
    to contract manufacturers. This type of vertical integration is the key to quick new product introduction cycles.
    Zara carries upwards of 11,000 distinct items per year compared to competitors that carry 2,000 to 4,000 in stores.
    Zara’s fashion-season-oriented products only make up a small part of its business. Only 15% to 25% of a season’s
    line is designed ahead of the season. Up to 50% of its items are designed and manufactured in the middle of the
    season based on certain styles and designs that become popular. Because of its quick new product introduction
    cycles, Zara can take advantage of customers’ fleeting interest in new designs and styles.

    You might also like