Process view supply, technology, demand, and innovation 9 ardavan asefvaziri jan1011 zaras operations strategy fast product design. Zara positions its goods as highend products with low price. Business strategy of fast fashion a case study of zara. Zaras pricing policy during both the regular season and the clearance period is countryspeci. Pssst, retailers, want to know the secret of boosting sales and profits. All 68 countries are following the same concepts that are associated with the original brand. Zaras pricing strategy not only the value proposition is evident, but also is affordable to most customers. While its pricing strategy is also a source of competitive advantage, the main benefit comes from the ability to bring new designs to the stores faster. Another marketing strategy of zara is focuscost strategy 3. Analysis of zaras marketing plan and strategy premium. Business strategy of zara core competencies are resources and capabilities that create the firms competitive advantage. Because the concept of zara is to provide its products at a reasonable price to its customers, it follows that customers find its prices quite affordable. Analysis of zaras fastfashion retailing strategy with fit shelley e.
The products of mango are also similar to zaras in style, pricing and quality, however, mango is very different from zara in organizational strategy as mango is based on a franchising system, and in marketing strategy, relying heavily on advertising campaigns. Zaras secret to success retail its pricing strategy. Zara s products are high on fashion and low on prices. The fashion company zara has a marketing strategy that is quite unique. It means zara opens its first few stores in a country to get an understanding of a market and then uses that knowledge as it expands into that market. The adoption of case study evaluation is highly suitable to find out to identify the implications of supply chain implications in global sourcing strategy of zara. Zara controls most of the stages on the chain supplying, designing, manufacturing, and distributing its products 2. Below is the pricing strategy in zara marketing strategy. Cons business strategy of zara general information pros core compentencies of zara low quality minimal advertisement low in store inventory attractive prices up. The study is thoroughly checked for internal validity with a proper balance in the structure of design and adoption of appropriate research instruments. Ideas inspired by urban hot spots, fashion shows, and store customers are transmitted to the creative teams. How zaras winning strategy is disrupting the indian.
Zaras quick response capacity is made possible by the fact that it controls the 3 main stages of its operations that define the competitive edge of the company. Inditex, the parent company of the brand zara have a strong portfolio of 8 brands which is helping the company in nurturing each brand with its experience and strong financial base. Some argue that uniqlo is not an spa brand because of its commitment to developing longlasting clothing items. This project research paper is produced for the fulfillment of the degree requirement of the. Customers enjoy coming to zara because each time they shop, they find new clothes, shoes and accessories. Its not all about trimming expenses ahem home depot or focusing on a single pricing strategy cough jcpenney cough. Competitive advantage in the marketing strategy of zara strong parent company.
Zara follows a marketbased pricing strategy which sets the target prices that the buyer is willing to pay. In consideration of optimizing development and training costs, the current pricing strategy is suitable for zara. Zara has satisfied the customers and has implemented strategies that made it possible to become dominant in the fashion industry. This would be the reason zara does not appear on television or poster advertisements. The affordable pricing strategy has helped it address the. Marketing mix and marketing strategy of zara fashion. The third marketing strategy of zara is positioning strategy 4. Zara s pricing strategy not only the value proposition is evident, but also is affordable to most customers. This study analyzes the business strategy of fast fashion through zara, a successful fashion brand from inditex spain.
The internationalisation of zara zara opened its first store in. The pricing strategy at the two retailers varies dramatically. Zara business model, retail strategy and supply chain. Fast new product design is a key enabler of zaras strategy. In comparison to the other players in the market zara makes it new product. The intent of the meeting was to discuss zara s current strategy and. Marketing mix of zara zara marketing mix and 4 ps of. Business strategy of zara by melisa bilgin on prezi. Instead, it puts much efforts in establishing time. Zara, the flagship of the inditex group is created 80s. All products are to leave the warehouse after a maximum of3days. How retailers use emotion to make you spend more cnbc.
Japans uniqlo deploys a completely different strategy from zara. Pulling together both the external and internal factors impacting on zara as an organisation, it is then possible to establish a strategic plan for the future, in order to ensure the ongoing success of this substantial fashion retailer. A p ricing strategy has a s goal to establish an optimum price with. The pricing strategy of zara is focused at the average shopper that wants the latest in fashion at affordable prices. Zara has been in the market for two decades and has developed its brand image in shoppers.
The budget for the cost of the material, production and. Zara is a fast fashion brand selling affordable clothing. Is it only zaras fast fashion approach, or a combination of retail strategy and fast fashion thats driving growth in the country. Abstract the fashion industry is characterized by rapid. However, we have to know that we are referring to the cream customers who would compare zara with hugo boss or others. Zara has used almost a zero advertising and endorsement policy throughout its entire existence, preferring to invest a percentage of its revenues in opening new stores instead. Highlight what are the strengths, weaknesses, opportunities, threats of zara. Zara provides latest fashion at much lower prices in all its international stores as compared to other competing international brands. Zara follows a marketbased pricing strategy which determines the target prices that the buyer is willing to pay. This strategy is embraced to focus on the operations which can enhance cost efficiency while boosting service delivery and value proposition. This intrigues them and, as a result, prompts them to visit zaras stores more often than its competitors. Attheendofeachseason,zarareduces thepriceofitsproducts up to 30% to sell remaining stocks.
Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. Clearance pricing optimization for a fastfashion retailer. Explain the target market and active customers of zara focus on the potential customers value proposition and the reasons why people prefer zara. Marketing strategy of zara zara marketing strategy. Marketing in fast fashion in mid springsummer season 20, oscar perez marcote, director of the zara business unit at inditex since 201, sat in his office preparing for a meeting with inditex ceo pablo isla tejera. The middle class customers have a great option for luxury fashion in zara because its styles and designs are just as good as the luxury brands. Pricing strategy and channel distribution pricing strategy and channel distribution determine and discuss a pricing strategy penetration or skimming. Pdf zara marketing plan alan pozo rosadio academia. Luxury brands have to admit zara has a strong position in the global market. Zaras products are high on fashion and low on prices. Confecciones goa is constituted as a factory to supply wholesalers 1975. All items arrive at the stores ironed, on hangers, and with price tags, saving valuable time for staff. The pricing strategy for crystal light kicks will eventually be in line with current pricing of other crystal light products as the crystal light brand is already in existence.
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