Zara Case Analysis
Zara’s Marketing Strategy
Produce a product that can adjust and fit multiple trends and can adapt quickly to new style. •
Pride itself on its location (usually on the best street in big cities) as opposed to spending money on public advertisements. •
Target a youthful and vibrant culture.
Have current and efficient technology in their stores.
Young, fashion- conscious city dwellers.
Rapidly changing style that needed to cater to people who were not easily influenced and had a rapidly changing style. •
Targeted consumers that could be influenced to buy their product through marketing and advertising campaigns. •
Coming from the middle to upper socio-economical class
Zara focused on location and in store décor rather than advertising publicly. •
Zara only placed ads to announce its new stores and two promote it’s twice a year sales. As a result they only spent .03% of their revenue. •
Store layouts were completely altered every four to five year. •
Layouts must be designed and tested on a 1500 sq. ft. pilot store before being revealed around the entire world. •
Prices established for the Spanish market in the Euro currency. •
Other countries prices were set at a fixed percentage of the Spanish market baseline. •
Zara always takes into account cost and market conditions when pricing their product. •
Does not try to produce clothes that they think will always be in style. Rather, Zara wanted to have clothes that had a quick “in store” and at home life span. •
Customers knew that if they saw something they liked then they should buy it because there is a good chance it would not be there the next time. •
All products were produced in Spain an Northern Portugal at factories and small local workshops Marketing Position
Rely heavily on in store managers and employees to keep style current. •
Position themselves in the market so the consumer see’s their product as the newest and latest fashion label....
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