zara case study final

Preamble to the Case

Ever changing face of Business

CHANGE – The only Constant in Business…

No competitive advantage can be taken for granted

for a prolonged basis.

What helps to stay ahead then?

Strategic Marketing decisions are a one – stop solution!!!

3rd largest pure – play fashion retailer. Global presence across 64 markets. Competitors are: H&M (Hennes & Mauritz), Dutch

chain C&A(Clemens & August), Spanish chain Mango, American chain GAP to name a few.

7 commercial formats include :

1. Skhuaban2. Pull & Bear3. Massimo dutti4. Bearshka5. Oysho6. Stradivarius7. ZARA– Contributing 67% (approx) of Inditex Total

Sales.

Company Profile – Parent Group Inditex

Inditex’s Recent Dramatical Growth

0123456789

2006 2005

Fiscal Year

Eu

ros

(in

mil

lio

ns)

Turnover (in Millionof Euros)

Net Profit

No. of Stores

Snapshot of ZARA’s Performance – Contribution to the success of Inditex

0

1000

2000

3000

4000

5000

6000

2005 2006

Turnover- In Millions of Euros)

No. of Stores

Provide public what it wants – following the 4P’s of

Marketing in the right manner.

Achieving sustainable advantage by –

Success Mantra for ZARA

Operational Effectiveness Strategic Target Positioning

• What is it?

• Performing the same tasks better than the

competitors - in a word YOU NEED TO RUN

FASTER THAN YOUR RIVALS…

• What is it that ZARA is doing differently?

1. Operational Effectiveness

• Applying vertically integrated demand & supply chain - others focus on Outsourcing.

• Dynamically varying offers in range of goods – Monthly Basis Collection Cycle instead of conventional Collection cycle – Spring/Summer/Winter.

• Accelerated value change process – 12 to 15 days delivery cycle instead of traditional 60/90 days cycle.

• Public opinion intensive Fashion Design - Zara's cadre of 200 designers sits right in the midst of the production process.

Zara v/s its competitors

Zara v/s its competitors

•FEEDBACK – information transmission to the designers from the customers.

•Usage of Latest Technology – to evaluate feedback and send across finalised decisions in house.

•Effective use of scarcity value – New collections every week.

•Strategic designs of stores and choice of location.

•No expenditure on Advertisements – Follow ‘Word of Mouth’ Marketing Principle.

Being different from the rivals – DARE TO THINK

OUT OF THE BOX!!!

ZARA’s Chemistry

ZARA INNOVATIVE THINKING= TECHNOLOGY + STRATEGIC

PLANNING

ZARA’s principle as per the concepts of Modern

Marketing Management Theory.

2. Strategic Positioning

Strategic Marketing principles – The ZARA way

ZARA’s Target Market

ZARA’s Competitive Advantage – With the use of Communication devices, Fashion has become

more globally standardized.

• Vertically Integrated Business Model – Total control

of every part of the Business:

– Design, Just-in-Time Production, Sales and Marketing.

• Time Cost considering above and beyond any other

cost

• Diversification – Product Line and Global positioning.

Conclusion - ZARA Mania

• Awarded Retailer of the Year and Icon of the Year – in

the Inaugural World Retail Award – Barcelona 2007.

• Many more accolades….

• And the SAGA continues!!!!

ZARA – The Queen of Fashion Retail

Welcome to the world of ZARA…

Questions / Comments?