This document contains a case study on the fashion retailer Zara. It includes:
1. A SWOT analysis of Zara's strengths, weaknesses, opportunities, and threats.
2. Assessments of Zara's product, pricing, distribution, and communication strategies. Zara's product strategy focuses on fast fashion and localized tastes. Its pricing strategy aims to be affordable while maintaining quality. Zara has efficient in-house distribution and a strategic physical store network. Its communication relies heavily on social media public relations.
This document contains a case study on the fashion retailer Zara. It includes:
1. A SWOT analysis of Zara's strengths, weaknesses, opportunities, and threats.
2. Assessments of Zara's product, pricing, distribution, and communication strategies. Zara's product strategy focuses on fast fashion and localized tastes. Its pricing strategy aims to be affordable while maintaining quality. Zara has efficient in-house distribution and a strategic physical store network. Its communication relies heavily on social media public relations.
This document contains a case study on the fashion retailer Zara. It includes:
1. A SWOT analysis of Zara's strengths, weaknesses, opportunities, and threats.
2. Assessments of Zara's product, pricing, distribution, and communication strategies. Zara's product strategy focuses on fast fashion and localized tastes. Its pricing strategy aims to be affordable while maintaining quality. Zara has efficient in-house distribution and a strategic physical store network. Its communication relies heavily on social media public relations.
This document contains a case study on the fashion retailer Zara. It includes:
1. A SWOT analysis of Zara's strengths, weaknesses, opportunities, and threats.
2. Assessments of Zara's product, pricing, distribution, and communication strategies. Zara's product strategy focuses on fast fashion and localized tastes. Its pricing strategy aims to be affordable while maintaining quality. Zara has efficient in-house distribution and a strategic physical store network. Its communication relies heavily on social media public relations.
1. Strong branding- loyalty and awareness 1. Pressure of cost leadership strategy in consideration to achieve high quality standard 2. Fulfilling demand in affordable yet trendy fashion 2. Short lead time( only two weeks) forces less variation 3. Fast delivery of new products and trends in style, design, colour and size variation
4. highest numbers of products in the industry 3. Rapid growing effect lacking in e-commerce sector
5. Cost leadership strategy by aiming at cost efficiency 4. Higher cost from vertical integration
6. Highly efficient supply chain that supports fast fashion 5. Risk of single centralization
7. Distribution efficiency by vertical supply chain
OPPORTUNITIES: THREATS 1. Exchange rate fluctuations 1. Global expansion in key markets like Asia and America 2. Expansion strategy regarding market entry barriers 2. Going big and better in e-commerce sector and grow revenue through that 3. Change in customer demand, price sensitivity and trend and fashion ideas 3. Company image and engagement for environment, labour, social and product 4. Unsure success if entering markets which are less dimension fashionable
5. Competitors such as H&M, GAP and Benetton and new
entries in market that want to recapitalize their profits in new markets.
6. Long term success in an competitive industry requires
to maintain strong organic growth. 2. Assess Zara’s product strategy
● Zara is a "instant fashion" brand, which means it picks up on the current trends and swiftly distributes them to its stores at affordable costs. This is where the brand's rapid growth and reputation come from. ● The brand's products resemble the most popular items on the market, yet they have distinct characteristics depending on the market. ● Zara conducts study before releasing anything to ensure that it is appropriate for the local culture and tastes.
In a nutshell, Zara products feature the most up-to-date fashions, popular designs, accessible prices, and localized tastes.
3. Assess Zara’s Pricing strategy
Zara's pricing approach caters to the average shopper looking for the most up-to-date clothes at a reasonable price. As a result, its prices must also cater to price-sensitive clients. Zara's price approach enabled its items to fulfill the needs of a vast consumer segment. However, Zara does not sacrifice product quality, therefore it will be less expensive than other brands such as Hugo Boss or Uniqlo.
Based on the locations and target customers, some Zara stores have relatively premium pricing, while others have considerably more inexpensive pricing. By reducing development and distribution expenses, Zara is able to maintain a competitive pricing approach. This establishes a distinct brand image and accelerates the growth of the company's market share, particularly among millennials.
4. Assess Zara’s Distribution strategy
Online Strategy: sales have been meticulously arranged and are restricted to select countries. This provides a long-term growth strategy for the company, and it appears to be working because Zara has established itself as a global fashion leader.
1. Physical Facility in Distribution :
Physical facilities include many company structures, shops and machinery that assist with their day-to-day operations. The company has identified its sales outlets in strategic locations where clients can easily access their products.
2. Competitive Distribution: They have their own in-house production unit so that they can supply their retail shops with adequate stock in real time.The company has an impressive logistics strategy. Having an in- house production mechanism that designs and produces its fashionable clothing, Zara guarantees clients flexibility in the variety, size and regularity of novel styles. Another competitive advantage that the company exploits over its entrants in terms of distribution is its well- coordinated allocation system that produces specific goods for specific retail shops depending on the demand in the particular store
5. Assess Zara’s communication strategy
Each company can use different tools to communicate customer value and build customer relationships: 5.1. Advertising: Zara does not advertise conventionally. You will not see a single television commercial, an ad in the press, a billboard or banners on the internet. Not an advertisement for Zara. 5.2. sales promotion : The brand uses various schemes as a way of sales promotion. Zara has low level of discounting around the year and discount sales of 50% or more twice in a year, for which the consumers eagerly wait 5.3 public relations : Zara also has social media profiles on Facebook, Twitter, Instagram, YouTube, Pinterest, and LinkedIn (as Inditex, the brand's parent company). Because of the importance of pictures and videos in fashion, Instagram and Facebook are their primary social media platforms. Zara has over 28 million Facebook followers, over 39 million on Instagram, and over one million on Twitter 5.4. personal selling: In contrast to other local retailers Zara’s sales associates do not focus on personal selling. 5.5. direct-marketing : Zare does not use direct-marketing in its marketing strategy.
As we can see above, We can find out that the communication strategy in Zara is based on Public Relation via social media.
