 Pricing is a major consideration that marketers should consider before embarking on

retailing their products. 

 To maximize on their products marketability, Zara have embraced a pricing strategy that
targets both the middle class which make up their largest market share and the wealthy
in the society 
 This strategy has seen the American and Europe market for Zara access Zara products
at a relatively cheaper prices as the main target for the chain store in these two regions
is the middle class. However, on the other hand Zara products are quite expensive in
other regions.
 comprises of individuals with a relatively high status quo in the society 
 the pricing strategy of Zara can be termed as below the market price or penetrating price
in both the America and Europe region.
 On the other hand, Zara prices can be termed as above the market price or skimming
price in other regions such as the China market where consumers are less sensitive
about the market price.
 Zara continuously launches new products in the market periodically, This tactic is
appropriate for reaping maximum profit margins if their products prices are in line with
the consumers’ behavior and preferences
 Another aspect that dictates Zara’s choice of pricing strategy is its expansive retail
stores that are located at different places thus attracting different clients of different
social status.

Effects Of The Pricing Strategy On Competition

Andreas et al. (2001) assert that the nature of the pricing strategy determines the
growth of any particular organization and thus the competitiveness of the company.
With reference to Zara, the chain store has been able to gain a competitive advantage
over its rivals such as Mango and Topshop due to its pricing strategy and wide product
range in the fast fashion industry for a very long time. This has seen the chain store
open up more retailing stores globally in order to meet the demand for their products
(Jingjing, 2007).