Marketing Mix of Zara - Flagship Store

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Retail Marketing

Coursework assignment:
“For a retail organization of your choice evaluate the elements of its retail marketing mix, in terms of the effectiveness with which they are used to appeal to the core target market”

ZARA – flagship chain store

List of Contents
I. Introduction:2
II.Background2
III.Retail Marketing Mix3
1.Merchandise assortment3
2.Location3
3.Price4
4.Store design and Visual merchandising4
5.Advertising and promotions5
6.Customer service5
IV.Competitors6
V.Conclusion6
References7
Appendix I………………………………………………………………...…..9 Appendix II…………………………………………………………………..10 Appendix III…………………………………………………………………11

I. Introduction:
The following report is about the evaluation of the marketing mix of “ZARA” clothing, which is considered to be one of the most successful clothing brands in the UK nowadays. This report will focus your attention on the main elements of the its retail marketing mix. The main objective of the report is to show how effectively those elements are used by Zara to appeal to the core target market. For the report were used primary and secondary researches. The secondary data was derived from various academic books, journals, websites, Internet resources, annual reports. The primary data was collected through qualitative approaches. Some observations of the stores were made, as well as exploring the staff and watching the customers’ behavior and reactions. The theory that is used in this report as a leading one is by “Varley and Rafiq”. According to them “The retail marketing mix is the set of controllable variables the retailer can use to satisfy customers’ needs and to influence their buying behavior and compete effectively in the market”. Different authors have different theories about the marketing mix and how effectively its elements should be used. The most common elements of each marketing mix are product, price, place, promotion. In the theory of Varley and Rafiq, they are using some more variables which can give us a better picture why and how Zara became such a successful company. That was also one of the reasons for choosing this theory. The variables that are going to be discussed in the report are: Merchandise assortment, Location, Price, Visual merchandising, Store atmosphere, Customer service, Advertising, Promotions, Personal selling. II. Background

Zara is a flagship chain store that is part of Inditex Group whose owner is Amancio Ortega – a poor man in the past, started business just with $83, now the richest person in Spain. Headquarter of the group is located in A Coruna, Spain. Over there the first Zara store was opened in 1975. In 1980 Ortega decided to start expansion and change the manufacturing, design and distribution process. That is how the first store in Porto was opened. United States, Mexico, France and Greece followed in the next 15 years. Now there are about 1500 Zara stores in more than 70 countries. For the company 200 designers are occupied and the manufacturing is all based in Spain. Each one of these designers produces 1-2 styles a week. That makes Zara offering more than 11,000 models every year. Zara holds around 86 % of Inditex total international sales, which is significant percentage for just one out of 7 stores part of this group. III. Retail Marketing Mix

1. Merchandise assortment
The product is very important marketing mix variable. And how Varley and Rafiq write in their book “Principles of retail management” It’s a mean by which a retailer is able to differentiate itself from its competitors.” Zara offers men, women and kids clothing from newborn to the age of 45 and each one of them is divided on Lower Garment, Upper Garment, Cosmetics, Shoes and Complements. Recently Zara started producing large sizes clothes with equivalent to 16 UK size. Interesting thing about Zara’s products is that it makes its own designs, paying a great attention for understanding...
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