2. Zara's Objectives, Strategies and Problems.
2.1 Objectives The first objective for Zara is to continue their expansion in countries like Switzerland, Italy, and Czech Republic and also on other continents: Latin America and Asia. A second objective is to continue their stores' growth in the countries where already exists in order to consolidate its position and increase its market share. By the accomplishment of the two objectives Zara is looking to create enduring profitable growth.
2.2 Strategies I will start with the product market penetration used by Zara and more precisely with the product line stretching (one of the tactics allowed by the product market penetration) and we can see in
OUR 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. The company's commitment to the environment is included in Inditex Group’s Corporate Responsibility Statement, published on our website: www.inditex.com. The following are some of the objectives and actions included in the framework of the group's environmental commitment and have a direct impact on our shops and customers: AT THE STORE
* - We save energy.
* - The eco-friendly shop.
* - We produce less waste, and recycle.
* - Our commitment extends to all our staff.
* - An environmentally aware team.
We save energy. The eco-friendly store. We are implementing an eco-friendly management model in our shops in order to reduce energy consumption by 20%, introducing sustainability and efficiency criteria. This management model sets out measures to be applied to all processes, including the design of the shop itself, the lighting, heating and cooling systems and the possibility of recycling furniture and decoration. We produce less waste and recycle. Recycling hangers and alarms, which are picked up from our shops and processed into other plastic elements, is an example of our waste management policy. Millions of hangers and alarms are processed each year and both the cardboard and plastic used for packaging are also recycled. Our commitment extends to all our staff. Increased awareness among our team members. We hold In-company awareness campaigns and specific multimedia-based training programmes to educate our staff in sustainable practices, such as limiting energy consumption, using sustainable transport and modifying behaviour patterns. WITH THE PRODUCT
* - We use ecological fabrics.
* - Organic cotton.
* - We manufacture PVC-free footwear.
We use ecological fabrics. Organic cotton. Zara supports organic farming and makes some of its garments out of organic cotton (100% cotton, completely free of pesticides, chemicals and bleach). They have specific labels and are easy to spot in our shops. We produce PVC-free footwear. No petroleum derivatives or non-biodegradable materials are used in the production of our footwear (PVC free). IN TRANSPORT
We use biodiesel fuel. Zara's fleet of lorries, which transport more than 200 million items of clothing a year, use 5% biodiesel fuel. This allows us to reduce our CO2 emissions by 500 tons.
Zara’s Marketing Strategy
Posted on September 16, 2011 by Conrad Chan
The fashion company Zara has a marketing strategy that is quite unique. Zara only spends about 0.3% of their revenue on promotion. This would be the reason Zara does not appear on television or poster advertisements. Zara focuses heavily on their product, place and pricing as opposed to promotion. Zara rarely advertises any store sales or have sales promotions other than sale items unlike other retailers. It is also interesting to note that Zara never places their brand or logo on their products. In contrast to local retailers like J2 Clothing, Zara’s sales associates do not need to focus on personal selling. Their customer service within the store is...