Professional Documents
Culture Documents
ZARA
Prepared by:
Naser Nuhi
Erza Kadriji
Flamur Murtezi
Amra Alija
Fisnik Kalisi
Mentor:
Gordana Petrusevska
BRIEF SUMMARY
Why Zara?
Marketing Strategy Focus
Zara Vertical Integration Production ?
Store Location All Around The World
Advantages from Using Single Distribution Centre ?
COMPANY PROFILES
Zara is the flagship chain store of
Inditex Group owned by Spanish
tycoon Amancio Ortega, who also
owns brands such as Massimo Dutti,
Pull and Bear, Oysho, Uterqe,
Stradivarius and Bershka. The group
is headquartered in A Corua, Spain,
where the first Zara store opened in
1975.
Zara has resisted the industry-wide
trend towards transferring fast
fashion production to low-cost
countries. Perhaps its most unusual
strategy was its policy of zero
advertising; the company preferred
to invest a percentage of revenues
in opening new stores instead
MAIN ISSUES
The elements supporting Zaras business structure and strategy are also
greatly interlinked and interdependent. The following three factors stand out:
Extensive market research providing a constant stream of inputs into the
product development process, rather than in batches or discrete seasons.
Locating various business function in close proximity of the headquarters,
and tight control, allows the various functions to coordinate and take jointdecision very quickly. Control also refers to early investment in raw
material, and direct or indirect ownership of processing and production
capacities. These provide the capability to respond very quickly to the
market research-influenced decions.
Communication and information Technology are absolutely vital to
managing the constant interface of various and management of the huge
variety of product information.
AND ALSO...
PROBLEM STATEMENT
On which way can vertical integration of zara be
an advantage for the company?
Cutting cost because they do not outsource any
channel.
Cutting time, more faster, effective, and efficient.
Avoid conflicts emerge from different channels.
WHAT TO DO Store
BEFORE
atmosphere
Target market
Zaras target market is people from
teens to adults, men and women.
Product assortment
Zara is broadly and deeply assorted.
Procurement
Establishing merchandise sources,
policies and practices.
Prices
Zara product price is affordable
Services
Prepurchase service, postpurchase
service, ancilary service.
STRATEGIC ADVANTAGES
VERTICAL INTEGRATION
A distinctive feature of Zaras
business model, has allowed the
company to successfully develop
a strong merchandising strategy.
This strategy has led Zara to
create a climate of scarcity and
opportunity as well as a fastfashion
system.
Zara
manufactures 60% of its own
products. By owning its in-house
production, Zara is able to be
flexible in the variety, amount,
and frequency of the new styles
they produce
EXTENDED INFORMATION :
SPECIFIC ZARAS TARGET MARKET
RECOMMENDATION
Design
Cooperate with vary range of designers so Zara can maintain its competitive
advantage to be the fast fashion but remain more and more creative.
Production
Cooperate with any channel of production all over the world so new
improvements in operation technology can be applied into Zara instead of keep
using the old ones.
Distribution
Making more distribution centres so they will enable Zara to be more faster,
effective, and efficient in distributing their products to the retailers.
Advertising
Advertising might be important in the future when competitors are becoming
more competitive and demands are declining.