Bishal Ghosh

Chandan Kumar
Joseph Kissan Jyoti
Tushar Joshi
Sruthi Vempa
 PROBLEM STATEMENT

● Started operations in India in 2010 but has not been able to capitalise its
brand recognition
● Has only 20 stores all over India
● Market Share of competitor brands is a lot higher
● Non-existent brand loyalty despite high sales and regular buyers
● Being unable to understand the Indian Market
 PRODUCT

● Being coca cola of the fashion industry Zara has a huge craze among fashion
enthusiasts.
● In India Zara lacks seasonal varieties of product collections.
● Need to integrate and innovative modern designs with local traditions.
● Zara gives out their products in paper or biodegradable plastic bags.
● Zara uses ecological fabrics like organic cotton in the production of some of
their items.
 PRICE

● Zara has premium marketing strategy and it targets consumers in the upper
middle class of the society and accordingly prices it's products.
● Zara’s prices are country specific. The tagging on their products are done
locally in each respective market.
● Zara sets market-based pricing strategy which sets the target price consumer
is willing to pay.

PROMOTION

● Unique marketing policy of zero investment in marketing.

● Usually promotion depends on word of mouth and social media.
● Unlike its competitors, Zara doesn’t engage in any flashy campaigns.
 PLACE
● Zara is a very quirky and one of the things that make it a stand out as a brand
is the fact that it is a vertically cohesive retailer.
● Most of the Zara stores are owned by the company and are not a franchise.
● It is a vertically integrated company. Zara’s supply chain is what provides
them a competitive advantage.
 SEGMENTATION
● ZARA’s geographic strategy is to spread its brand all over.
● Clothes for people with a combination attitude of work and play.
● Zara uses a mix of demographic, geographic and psychographic segmentation
strategies in order to serve the growing needs of the customers.

Targeting

● Target market of ZARA include women and men aged 15-45 years who are
educated and professionals with mid-range to high range income.
● They target people who are mostly fashion conscious and interested in the
latest fashion trends.
 POSITIONING
● Usage-based positioning strategies are used by Zara to highlight its
customer’s centric approach to satisfy the changing fad needs of the
customers around the globe.
● Zara knows that its customers want new and updated trends and accordingly
it targets customers based exclusively on its designs.
 SWOT ANALYSIS

● Brand Recognition is one of its biggest

● Growth rate of market share is low due to
strengths
● lack of marketing strategy
Fashionable up-to-date trends available
● ● High prices makes it inaccessible
Quality and style are strong
● ● Lack of advertising is also a cause of
Strong supply chain allows them to get
new designs to the stores in 2 weeks concern
● Low inventory results in popular products
whereas competitors take 6 weeks
not being available

● Marketing Campaign needs to be started ● Lack of number of stores has resulted in

for higher outreach
● More diversified designs and colors in
product line
● Promotion in order to increase market
share
● Increased accessibility by increasing the
number of stores in the country
low market penetration
● The severe amount of competition from
brands in the semi-premium segment
● Lack of Franchise based model has made
it difficult to increase customer outreach
● Lack of brand loyalty despite high sales
and regular purchases
 RECOMMENDATION

● Zara needs to start a online marketing campaign or a social media

campaign to make its presence felt
● Starting new stores in Tier-II cities so that they a better market penetration
and accessibility
● Investments need to be done in Advertising so as to create awareness as
well as recall and as a result, sales
● Competitive pricing can be practiced just like its competitors which have
been able to give quality despite charging lower prices
 CONCLUSION
● Zara has a strong market presence in the semi premium segment
● It has good financial standings and enjoys good brand recognition
● Certain change in marketing strategy and investment in promotional
campaign will be very helpful for market penetration and to capture a greater
market share