Wolfgang Keller Study Case

Only available on StudyMode
  • Topic: A Coruña, Inditex, Marketing
  • Pages : 16 (943 words )
  • Download(s) : 199
  • Published : April 8, 2013
Open Document
Text Preview
Kim, Myung Hwan
Yun, Sa Hyuck
Choi, Young Jin
Lee, Yu Mi

Contents
1

Overview

2

Business Strategy

3

Operations
Operations

4

IT strategy

5

Conclusion

Overview
Overview

Company Profile
01.History
01.History





02. Brand

Established in 1963
4,280 outlets in 73 countries
79,517 staffs in 2008
Listed stocks in 2001

03. Financing
2007
Sales
9,435
Income 1,250
Outlets
3,691
Countries
68
Staffs
79,517

Inditex

2006
8,196 15%
1,002 25%
3,131 560
64
4
10,240 10,277
1 mil euro

Innovator & Results
Innovator
Amancio Ortega Gaona
Founder & President

Global Sales
Spain
Europe
America
Sthers

Inditex

Pablo Isla
CEO (2005~)

• ZARA (www.zara.co.kr)
Opened in A Coruna (1975) in Spain
1361 Outlets

200 designers

6,264 sales (mil euro)

Description of
ZARA

Sales per of Inditex 66.4%

Global sales
72%

Business
Business
Strategy

What is Zara’s Business Strategy?
What
Conventional

• Trend analysis
• Making Collection

• Fixed seasonal
collections

• Push marketing
by Sales manager

What is Zara’s Business Strategy?
What
Zara wants…
- to provide customers with Fashion On Demand
by following the fast fashion trend
Speedy
Decision

• SKU decision
making by store
manager
• Fast reflection of
Field VOC

Efficient
Operating

• Sharing of Sales
result & Field VOC
• Efficient inventory
management

Pull
Marketing

• Providing the
newest trend with
fast SKU cycle
• Fancy store on
the main street
※ SKU : Stock Keeping Unit

Summary of Biz. Strategy
Summary
The distinct value for customers
- Always trendy & Satisfactory

Fast reflection
of field VOC

Efficient &
integrated
Operating

Pull
Marketing

IT is used for those key factors
Business strategy is simple except operating

Overview of Operating
Overview
Commercial Team (HQ)
VOC (Trend)

Designers
• Not special / elite
group
• Each dedicated
to a section

Collection

Product manager

Collection list

• Collecting & delivering
trend idea
• Managing from trend
analysis to price setting

VOC
(Trend)

Sales manager

• Analysis sales result &
inventory
• Confirming order and
managing sales status

- Price
- Store’s look & Feel

Confirm

Store manager
• Selecting collections to sell
in their store
• Delivering market trend or
customer’s needs

Order

Operations
Operations

Principles of Operations
Principles
Three cyclical
processes
To reach its goal of
quickly and accurately
responding to
customers’ demands

Ordering

Design &
Manufacturing

Fulfillment

Ordering
Ordering
Zara store placed an order twice a week
- Replenishment & new garments
Store

new garments information
+digital order form

PDA
Network

HQ
Replenishment & new garments order
+ Customer oriented new Idea

Fulfillment
Fulfillment
Shipping clothes to stores to satisfy their orders
Aggregated orders from
all stores

Total supply of inventory
in the DC

SKU Demand vs. Supply
Existing
Production

Demand
> supply

Future
Production

Demand
> supply
No

Considering
past info

Yes

Determine
which store
get production

Increasing
production
Decreasing
production

Stop
production

-SKU: stock keeping unit - Defined as
“garments” + “Fabric” + “Color” + “Size”

Fulfillment
Deliveries showed up at stores: 1~2 days after order
Garments did not stay long in a DC
Little inventory in Zara’s supply chain

No “back room” for excess inventory

Design & Manufacturing
Equal to others
Introduce substantially new design collections
at the start of buying seasons

Contrast to others

Bring out new items continuously
throughout the year
* Zara introduce about 11,000 new items per year
while others do 2,000~4,000

Design & Manufacturing
Design
Integrated manufacturing enable short lead time
• Factories Zara owned dyed...
tracking img