BRAND STUDY ON

PRESENTED BY : PRIYAMBADA SEMAL

INTRODUCTION
Zara is a Spanish clothing and accessories retailer based
in Arteixo, Galicia, and founded in 1975 by Amancio Ortega and Rosalía
Mera. It is the flagship chain store of the Inditex group, the world's largest
apparel retailer.
It is claimed that Zara needs just two weeks to develop a new product
and get it to stores, compared to the six-month industry average, and
launches around 10,000 new designs each year. Zara has resisted the
industry-wide trend towards transferring fast fashion production to low-
cost countries. The company preferred to invest a percentage of
revenues in opening new stores.
Zara is a mid-price point lifestyle brand that manages to maintain a
consumer base that successfully spans age, socioeconomic and
geographic boundaries. Through the employment of high-status cultural
intermediaries and a ubiquitous brand culture, Zara sustains the image of a
brand that possesses high cultural capital and is competitive with today’s
luxury brands. Zara’s ability to maintain the sensation of a luxury brand as
it fruitfully provides embodied high cultural capital to its customers, which is
rare in a mass-market consumer environment. he ideal Zara customer is
a fashion-conscious, cosmopolitan, sophisticated woman.

The price point is a bit higher than budget but lower than luxury so the
company attempts to gain consumers from both ends of the spectrum; the
budget consumer sees the items as a splurge while the luxury consumer
sees them as a steal.
This principle is at the foundation of Zara’s consumer acquisition
technique. Instead of accepting that luxury items are only produced by
luxury brands and that purchasing them is the only way to achieve a high
status from clothing, Zara customers question this logic and are willing to
accept that in spending less, they remain able to be relevant to the
wealthy, well-dressed set. In doing purchasing this way, Canclini asserts
that such consumption serves to appropriate meaning onto the items
consumed which, again, the Zara consumer model supports.

With such a fast-fashion brand, the shopper feels as if they must buy the
product then and there in order to make sure it doesn’t fly off the shelves;
Zara consumers capitalize on sales and new merchandise by taking
advantage of the fleeting quality of the clothes and accessories. Also key
for fashionistas is knowing that not everyone will be wearing the same
thing as they are, a real fear when wearing clothing from a fast-fashion
retailer. Zara avoids this by upping the price point more than an H & M,
for example, thus limiting just slightly the consumer base for more
popular items. In facilitating this sort of consumer awareness, Zara
assuredly promotes its sales with this in mind; by retaining sales to only
twice a year, the sense of immediacy in purchasing becomes evident.
PRISING STRATEGY COMMON

Low-price strategy (a cost leadership strategy, low cost what gives low
prices)
• Set price equal to cost plus a target margin
• External suppliers
• Producing 50% in Barcelona, 25% Europe, 13% Hong Kong, 12% Turkey
• 20 factories for internal manufacture
• The high turnover of products
• Just-in-time production (JIT)
• Commitment of its employees as well as meeting the consumer demands
relating to fashionable clothes
• Transportation costs low on the supply side
• Reducing of price to promotion and information support
• Low level of inventory
• End-season sales
Product features and variations of
Zara
Zara clothing company is divided into various divisions. They are
consists of products like upper wear, lower wear, shoes, cosmetics and
other stuffs. Children’s wear are also available.
Zara clothes can also provide you a brand new element of elegance and
fashion. Its outfit features are known being the most popular and
sophisticated trend in the fashion business. The company ensures to
produce products together with the latest fashion trends and would even
make its own glimpse for future popular clothing designs.
The new stock is arrived twice a week which makes its store unique in
service and quality. The other important thing is new trends and designs
are based on store manager’s analysis and customer’s interest and not
only on designer’s creativity.
Distribution Strategy
Distribution is the main point of marketing strategy of company

• Shops in more than70 countries of the world

• Logistic system (quick deliver 24-48 hours in all countries of the
world.)
• The speedy shipments• Competitive advantage
• Sales system
PROMOTIONAL STRATEGY
• Keeping the speed of placing new products
• Informing people about new collections in shops & web sites
• Sales force advices• Special sales for repeating customers
• Gift cards

Reinvesting of profits
– new shops in biggest cities well known shopping malls
– informing where we will open new shop
• No ads in mass media channels except Internet – improving
website – viral marketing on Face book
CUSTOMER HANDLING
Zara focuses on understanding the items that its customers actually want.
Zara’s strategy is to locate their stores as close to the highest-end luxury
stores as possible. The customer associates the location with the quality
product, in addition to shopping convenience and an enhanced
experience.
The company monitors customer reactions carefully. It notes what they
buy and don’t buy. It records feedback that customers give to the staff.
This information is reported to headquarters daily. It is transmitted to a
vast team of in-house designers, who quickly develop new designs. The
factories then manufacture clothes based on these designs.
Customer demand drives store deliveries. Often specific items are
adjusted according to customer feedback.
Zara stores in London, Tokyo all have customers responding
enthusiastically to a specific item, the company can very quickly
deliver more of these. Moreover, customer feedback about
recommended changes to a product can be accommodated as well.
Customer demand drives store deliveries. Often specific items are
adjusted according to customer feedback. Zara generally ships only a
limited number of dresses, shirts or jackets in each style to a store
about twice a week.
Queries will be handled by customer service operators or via e-mail or
chat messaging.
LOYALITY CARD

The brand has adopted a specific strategy for its stores. Each outlet
or store is considered a showcase for the brand and is then thought
to detail. The string therefore considers each of its stores as iconic.
ZARA has developed ways of loyalty programs such as loyalty
cards, discount vouchers and gifts etc.
Zara’s customer-focused business strategy has delivered
impressive results and created customer loyalty.

The single objective is to position Zara in our market as the premier

in fashion field, and to create customer awareness in connection
with designs offered, and to build good relationship to costumers in
order to have their loyalty.
 WARRANTY

Zara guarantee to refund any item you are not completely happy with when you
return it to us within 1 months as of the confirmation of the Shipment
Confirmation. You shall receive a full refund of the price paid for the products in
accordance with our Return Policy . Refunds will be credited to your original
method of payment.

Your right to a refund refund only applies to products that are returned in the
same condition as you received them. You should also include all of the
products instruction, documents and wrappings. Any product which is damaged
or not in the same condition as you received it will not be refunded. You should
therefore take reasonable care of the products while they are in your possession.

Returns and refunds of gift cards, shall be governed by the General Terms and
Conditions of Use relating to gift cards which may be found at : Use Conditions of
the Gift Cards.
REFERENCES

•http://static.zara.net/static/pdfs/US/terms-and-conditions/terms-and-
conditions-en_US-20131125.pdf
•http://zarasimon.com/terms-and-conditions
•http://www.oboolo.com/business-market/marketing/case-
study/strategic-analysis-of-zara-s-ready-made-clothes-79392.html

THANK YOU..... 