ZARA

MARKETING ORGANISATION

Submitted by-
Tarang Shah -53KA
Utkarsh Ramteke -54KA
Vikas Giri -55KA
Vishruti Gupta -56KA
Yash Dhoble -57KA
 ZARA’S MANAGEMENT PHILOSOPHY
ZARA is a Spanish retail chain store of Inditex Group, one of the world’s biggest retail stores in the
world. It is a vertically integrated retailer, meaning it controls most of the steps in the Supply Chain; it
designs, produces, and distributes itself along with performing in-house marketing.

For marketing and advertising, Zara excels by pulling customers into the brand, unlike its closest
competitor H&M, which remains fixed on pushing its brand and product out to the customer.
Moreover, with the dramatic introduction of “fast fashion” - meaning affordable and stylish clothes,
Zara has been able to create a passion for fashion amongst a broad spectrum of customers.

Strategic Marketing Objectives

• A Fashion Copycat: Rather than spending money on R&D and setting fashion trends, Zara rides
the wave of what’s currently hot and established to provide affordable copycat versions of
high-end brands. And to appease its teen and 20+ demographic, the store prides itself on
getting new designs in stores within 2 weeks. Even its first store featured low-priced lookalike
products of high-end brands.
• Value for the Price: Zara doesn’t want to be a trendsetter; it just wants to be a fashion
company that customers need. Buyers now want an item’s value to be beyond price, with
more time saving and convenience. Zara has a deep understanding of these values and
delivers affordable high fashion items.
• Monitors And Response To Customers’ Feedback: The customer reviews (whether good/bad)
are communicated to in-house designers, who apply the feedback to future work. By including
customers in the design and improvement process, Zara builds massive brand loyalty.
• Employs an Anti-Marketing Approach: Considering the industry average marketing spends
for retail is 3.5%, Zara only devotes about 0.3% of sales on advertising and doesn’t have much
marketing to speak of. In terms of advertising, what appeals to customers is its exclusivity and
the fact that the brand isn’t plastered on every billboard.
• Importance of Location: Zara hugely invests in the location and appeal of its stores, by
identifying high-street retail areas in major metropolises.
• Product customisation for specific buyers: The sales associates and store managers are at the
front of buyer research with comments, ideas, and new styles that visitors are wearing. Based
on this research capability, Zara’s products in every store reflect unique customers’ needs in
terms of physical, culture, or climate.

ZARA’S MARKETING ORGANIZATIONAL STRUCTURE AND SALES STRUCTURE

• The Director of international development is responsible for exploring new areas or cities for
commercial development and for attracting the investments needed to open those new
points of sale. They also provide franchisee support when they exist which is especially
important in a brand like Zara. For a big company like Zara, in general, the development
technician, responsible for locating stores and completing any necessary paperwork to buy or
rent them, as well as the travel Retail Manager, a professional with a specific area of influence
whose task is to open points of sale in airports and other locations with tourist traffic will
report to the director of international development.
• The person responsible for merchandising is also closely related to the marketing department
and, in some companies, it even depends on them. The professionals who hold this position
are responsible for the development of the store image and for replicating it across the
network.
• In the case of multi-brands, there is the figure of the key account manager who manages big
clients, department stores or strategic stores. Under his area of influence is the wholesale
director, who is directly responsible for managing the points of sale, and the showroom
manager, who is in charge of managing the supply for those stores.
• Finally, the Marketing Director is responsible for managing the company’s communication
strategy with the purpose of sales and also in regards to the media and public relations.
• We all know that the sales department is one of the strategic cornerstones of companies in
general, and it may be even more relevant in fashion companies in particular.
• The sales director plans and coordinates distribution through different channels: retail, multi-
brand, eCommerce and now they also manage the omnichannel model. Needless to say, each
one of these areas is the responsibility of another professional who reports to the sales
director.
• In the area of retail, the sales director is in charge of leading and coordinating those
responsible for merchandising, as well as the regional store directors and the director of
international development.
• A regional director is appointed for each region where the company operates. The regional
director will manage the development in that area, and each store manager reports to this
position.

ZARA AROUND THE WORLD

• Zara started in Spain, with the first store opened there in 1975. Zara has since grown to
become a globally recognized apparel brand, with retail stores distributed all over the globe.
As of 2020, the Inditex Group, Zara’s owner, operated 345 Zara stores throughout America.
• The first international market which Zara expanded into was neighbouring Portugal. However,
this was followed by the opening of a store in the United States soon after. In the years that
followed, Zara stores popped up throughout Europe, North America, and the rest of the
world. Unsurprisingly, Zara was one of the most valuable clothing brands on the planet as of
2018.
• There are 2259 Zara stores in 96 countries.
In the financial district of Madrid, you'll find the largest Zara store in the world

Madrid Store
 ZARA IN INDIA
• The brand that entered India in 2010 has helped plug the gap for trendy, casual clothing.
Currently, the company has 22 stores in the country. The new stores could open over the next
12 months, said people familiar with the band’s trajectory in the market where it operates
through a joint venture with Trent under Inditex Trent Retail India Private Limited
• In the country’s top cities of Mumbai and Delhi—the retailer is among the top-performing
tenants for most malls developers and draws the country’s affluent and fashion-forward
shoppers who spend money to buy its quick turnaround fashion pieces such as summer
dresses, bodysuits, trousers, and outerwear for men, women, and kids.

Mumbai Store Delhi Store

DISTRIBUTION CHANNEL
• All products pass through Zara’s major distribution centre in La Coruña. The 5-storey, 50,000
square meter distribution centre employs some of the most sophisticated and up-to-date
automated systems. With a workforce of 1200, the distribution centre normally operates four
days per week with the precise number of shifts depending on the volume of products that
have to be distributed. Orders for each store are packed into separate boxes and racks (for
hanging items) and are typically ready for shipment 8 hours after they have been received.
Zara manufactures and distributes products in small batches. Instead of relying on outside
partners, the company manages all design, warehousing, distribution, and logistics functions
itself.
• Contractors using trucks bearing Zara’s name pick up the merchandise at La Coruña and
deliver it directly to Fashion’s stores in Europe. The trucks run to published schedules.
Products shipped by air are flown from either airport in La Coruña or the larger airport in
Santiago. Typically, stores in Europe receive their orders in 24 hours, the United States in 48
hours and Japan in 48 to 72 hours.
• Approximately 200 kilometres of underground tracks move merchandise from Zara’s
manufacturing plants to descents that ensure each order reaches its right destination. Zara
has a centralized distribution system that operates out of two primary warehouses located in
Spain. About 2.5 million garments could move through the distribution centre each week. This
location periodically receives shipments of finished clothes from suppliers and ships
replenishment inventory directly to every Zara store in the world twice a week. These
shipments are made by truck to Europe and by airfreight to stores outside of Europe so that
stores received goods within 24-36 hours of shipment in Europe and within 1-2 days outside
 of Europe. No inventory was held centrally, and there was almost no inventory at the stores
that were not on the selling floor.
• In the distribution system, Zara control most of the supply chain and distribution of its
products from the headquarters, Zara has their main manufacturing place in three different
continents. 50% of the products are produced in Spain, 26% in the rest of Europe, and the rest
24% per cent is outsourced in Asia and Africa. Then the products were transferred to Zara’s
distribution centres located in Spain to be exported to Zara’s stores around the world. We can
see that their distribution strategy is vertical.
• They can adapt to the latest trend in a limited time, using the Hybrid Communication system,
then produce those latest trends with available materials to cut production time and cost, and
after that, the products are immediately transferred to all the stores.

ZARA’S MARKETING STRATEGY

• Zara’s parent brand- Inditex, the biggest fast fashion group in the world, operates over 7,200
stores in 93 markets worldwide. The company's flagship store is Zara, but it also owns
several other brands such as
ZaraHome, MassimoDutti, Bershka, Oysho, Pull&Bear, Stradivarius, Uterqüe and Lefties.
• The early business model was to create similar copies to high-end fashion lines at an
affordable price. As they expanded the idea of high-end fashion was coupled with
responsiveness where Zara could react almost instantly to new trends.
• Textile conventions in Paris would be only for those in the business and they would then
influence the design for the catwalk shows the next year.
• The entire process was long and for the public, it was a two or three-year process but this is
changed completely now. Thanks to Instagram, Snapchat live streaming so long the public see
a lot of their pieces before they even reach the stores.
• The marketing strategy revolves around its USP i.e., they can put out a new collection that
reflects what's being shown at the major fashion weeks almost as it’s happening, at a price
that covers a big chunk of the income group.
• Zara is incredibly fast and can take an idea from paper sketch to the shelves in just four weeks.
They hit the FOMO factor of the customers as lines are only in the store for a month in total
and the look you like so much might be gone forever in the morning and it's exciting for
shoppers they know there's plenty of new treasures to discover every time they come through
the doors.
• Zara doesn't advertise so individual stores don't need to stick to a campaign, the brand relies
on word of mouth including that generated by celebrity fans such as Kate Middleton and
Kendall Jenner. Zara’s marketing is very subtle and as a part of the business model they benefit
from the mountains of Free Press the fashion industry generates and with their hyperfast
logistics they're often the first to spot a trend and provide it to the general public