MARKETING STRATEGY

Submitted to:
Ms. Dimple Joshi

Submitted by:
Shruti Bansal
FRM
 With ZARA,
you don’t have
to be a millionaire to
look like
million dollars…
 Zara is a Spanish apparel retail brand based in Arteixo in Galicia. The company
specializes in fast fashion and products include clothing, accessories, shoes,
swimwear, beauty, and perfumes. It is the largest company in the Inditex group, the
world's largest apparel retailer. Zara manages up to 20 clothing collections in a year.

INDUSTRY - Retail

FOUNDER - Amancio Ortega

PARENT
COMPANY - Inditex

AREA
SERVED - Worldwide.
 HISTORY
Amancio Ortega opened the first Zara store in 1975 in central A Coruña, Galicia, Spain. Ortega
initially named the store Zorba after the classic film Zorba the Greek, but after learning there
was a bar with the same name two blocks away, they rearranged the letters molded for the sign
to "Zara".
In 1988, the company started its international expansion through Porto, Portugal. In 1989, it
entered the United States, and then France in 1990. During the 1990s, Zara expanded to Mexico
(1992), Greece, Belgium and Sweden (1993). In the early 2000s, Zara opened its first stores in
Japan and Singapore (2002), Russia and Malaysia (2003), India (2010), Taiwan, South Africa and
Australia (2011). By September 2010, Zara launched its online boutique. The website began in
Spain, the UK, Portugal, Italy, Germany and France. In November that same year, Zara Online
extended the service to five more countries: Austria, Ireland, the Netherlands, Belgium and
Luxembourg. Online stores began operating in the United States in 2011, and in India by 2017.

In 2015, Zara was ranked 30 on Interbrand's list of best global brands. In 2019, Zara had updated
the logo.
In 2019 the Global Fashion Business Journal stated that while the textile commerce of the world
had gone down by 2.38%, Zara had risen 2.17%.
In 2019, Chief Executive Persson said the brand is waiting for more acceptable global rent levels
to continue their expansion.
MARKETING STRATEGY
 SEGMENTATION
Traditional apparel brands differentiated from new
products every once in a season, launching new
products every two weeks, and entering the
market with fast fashion brands reflecting
customer’s taste.

TARGETING
It is made up of 58% of women’s clothing, 22%
of men’s clothing, and 20% of children’s
clothing. It targets a wide age range from 14 to
45 years old.

POSITIONING
Offering high-quality products reflecting the
latest trends at mid-price.
The quality of the products of Zara reflects the
fashion codes leading to the middle and upper
level.
MARKETING MIX
• Product
• Zara stores have men's and women's clothing, as well as
children's clothing.
•The company specializes in fast fashion, and products
include clothing, accessories, shoes, swimwear, bags, and
perfumes.
• Zara's USP is to supply products based on latest trends and
consumer needs. They are the ‘trend setter’ of the market.
•Its highly responsive supply chain ships new products to
stores twice a week. After products are designed, they take
10-15 days to reach the stores.
•Zara launches around 12,000 new designs and produces
over 450 million items per year.
• Price
• Zara believes in offering high fashion at a low cost.
• Prices of the products start from as low as ₹390 and go upto
₹ 13990.
• Zara sets market-based pricing strategy which sets the target
price consumer is willing to pay. So, the budget for production
according to the target price. This in turn fixes the profit
margin they earn on every item. This gives an insight on the
marketing mix pricing strategy of Zara.
• Taking quality and cost into account, Zara prides itself in
providing latest trends at an intermediate cost, making
its customers’ purchases value-worthy.
• Place
• Zara has enormous reach with stores in 88 countries, with
over 6500 outlets.
• Zara also sells through its online store, making its presence
globally.
• Zara’s supply chain is what provides them a competitive
advantage. It uses its unique business model to bring new
products and fashion to the market in shortest time possible.
• Most of the Zara stores are owned by the company and are
not a franchise. This helps in keeping the shopping experience
at Zara intact be it London, Paris, New Delhi or Mumbai. The
stores are located in posh locations and are spacious and
modern looking.
• Promotion
• Zara has ‘Zero Advertising Policy’. In any case, they
insignificantly promote in design magazines.
• Unlike its competitors, Zara doesn’t engages in any flashy
campaigns. Rather, it relies on word of mouth promotion.
• Zara’s social media reach is quite exceptional. It has 35.5
million followers on Instagram.
• It is interesting to note that Zara doesn’t put its logo on their
products.
• Zara believes that its show windows are suffice for
advertisements and they do not need anything else to sell
their products. This concludes the marketing mix of Zara.
COMPETITORS
THANK YOU!