Transcript BUS 260c Presentation INDITEX

Marketing analysis project
BUS 260c
Iva Naumova
Kevin Zappia
Valeriia Tretiakova
Victoria Lyubykh
20\03\2013
In this presentation we are going to talk
about:
Inditex Group – Basic information
Emphasis on ZARA affordable fashion
retailer
ZARA marketing strategy: Target
Markets and Marketing Mix
Outline
Stores Around the World
INDITEX is one of the
world's largest fashion
retailers, welcoming
shoppers at its eight store
formats -Zara, Pull &
Bear, Massimo Dutti,
Bershka, Stradivarius,
Oysho, Zara Home and
Uterqüe - boasting 6.104
stores in 86 markets.
Who are they?
ZARA
1,770
ZARA Kids
166
Pull & Bear
825
Massimo Dutti
634
Bershka
910
Stradivarius
816
Oysho
533
ZARA Home
363
Uterque
87
Total
6,104
• Founded by Amancio
Ortega and Rosalia Mera in
1975, headquartered in
Arteixo, Spain
• One of the largest
international fashion retailer
companies belonging to
Inditex
• Main competitor: Swedish
H&M; along with GAP and
Benetton due to global
retailing status
How did we gather
our observations?
• Visited online sources:
official Inditex website
official ZARA website
Andres Vicente Ranz
online blog dedicated to
ZARA
Zara brand profile by
Belle Kwan
• Zara’s target market is young,
price-conscious, and highly
sensitive to the latest fashion
trends. They have an advantage
over traditional retailers because
they do not define their target by
segmenting ages and lifestyles
giving them a much broader
market.
• They segment their product line by
women’s (60%), men’s (25%) and
the fast growing children’s (15%)
department.
Who is the customer?
Product
Mission Statement
“Through Zara’s
business model, we aim
to contribute to the
sustainable development
of society and that of
the environment with
which we interacts.”
Product
Vision
“ZARA is committed to satisfying the
desires of our customers. As a result
we pledge to continuously innovate
our business to improve your
experience. We promise to provide
new designs made from quality
materials that are affordable”
Positioning: Fast Fashion at
Affordable Prices
Price: 2000 data
Price: Contribution 12 years after
Distribution
Print media
Social Media
ZARA.COM
• 7.5 millions fans
• “Light” social media
strategy
• Encourages brand
love, but not purchase
consideration
Social Media
Facebook
Social Media
Pinterest
Available for
Android, iPhone,
Windows Mob,
Nokia, and
BlackBerry
Mobile Applications
• Real-estate Marketing
• Word of Mouth
Other communications
Management Efficiency
The focus on the customer and
product requires that the unit is
constantly re-inventing itself to
avoid becoming obsolete.
The final goal ultimately is to
create a communication matrix
for this purpose.
Effectiveness of marketing
communications
Different Approach
then Competitor
• Zara only spends about
0.3% of their revenue
on promotion so they
can instead focus
heavily on product,
place, and pricing as
opposed to promotion
Effectiveness of marketing
communications
• Vogue Fashion's
Night Out by
1 slides describing communications through events:
ZARA
• Description of events (what? where? who?)
• ZARA fashion
• Event patterns (regularity and schedule)
show
• Style of communication
• Other observations?
Events
• Segmentation
Targeting
Marketing behavior
Differentiation
• Zara was described by Louis
Vuitton Fashion Director
Daniel Piette as “possibly
the most innovative and
devastating retailer in the
world.” Zara has also been
described as a “Spanish
success story" by CNN
The most interesting discovery
Conclusions
• Analyzing Zara's business model. (2011, March 03). Retrieved from
http://www.harbott.com/2011/03/03/analysing-zaras-business-model/
• Chan, C. C. (2011, September 16). [Web log message]. Retrieved from
http://blogs.ubc.ca/conradchan/2011/09/16/zaras-marketing-strategy/
• Gregorio. (2013, August 10). Vogue fashion’s night out Lisbon – 12 September 2013.
Retrieved from http://portugalconfidential.com/2013/08/vogue-fashions-night-out-lisbonlisboa-fno-2013/
• HANSEN, S. (2012, November 09). How Zara grew into the world’s largest fashion
retailer. Retrieved from http://www.nytimes.com/2012/11/11/magazine/how-zara-grewinto-the-worlds-largest-fashion-retailer.html?pagewanted=2&_r=3&
• KWAN, B. (2011, September 03). Spanish domination – Zara brand profile. Retrieved
from http://www.marketingmag.com.au/tags/zara/
• Ranz. (2011, March 15). [Web log message]. Retrieved from
http://www.brandtrhough.blogspot.com/2011/03/who-are-zaras-competitors.html
• SWOT analysis . (n.d.). Retrieved from http://zarafashion2013.wix.com
• (2001, May 18). Retrieved from
http://www.kellogg.northwestern.edu/course/opns430/modules/supply_chain_managemen
t/Zara.pdf