Zara: a Marketing Analysis Case Study
INTRODUCTION
This assignment identifies an organization portraying superior performance and then analyses the marketing concepts, marketing environment and marketing mix, and identifies critical success factors.
THE ORGANISATION
Dubbed by The Economist (Fashion Forward -The Economist, 2012) as Spain’s most successful brand, my organization is ZARA.
Based in La Coruna, Spain, Zara is Inditex’s main brand, (Fashion Forward -The Economist, 2012).
Founded in 1975 by Amancio Ortega Zara now has stores in 73 countries.
With estimated annual revenue in excess of 7 billion Euro, Zara has over 1700 stores worldwide, (Wikipedia, 2013). Zara has been described by Louis Vuitton fashion director as “possibly the most innovative and devastating retailer in the world”, (Wikipedia, 2013).
WHY ZARA?
I have used 4 suggested “superior performance” indicators to motivate my choice of Zara:
1. Competitive position:
Zara has a competitive edge against its rivals such as H&M, Gap, Benetton and Mango by producing fast fashion. Its extremely quick to know what is selling, and with this information they put the right products on shelf for customer purchases. (Pearson, A)
2. Financial Performance
Zara has defied the economic recession and reported growth through tough financial times. In 2011 sales grew by 10% and EBIT was 1.7 billion Euros. (Inditex 2011 Annual Report). By comparison, Gap was forced to close 200 stores in the US in 2011, and saw a slump in profit by 19% in one quarter (Chang, A. 2011)
3. Brand Strength:
Zara is ranked 37th in the world by Interbrand (“the world’s largest brand consultancy”), with a brand value in excess of nine million dollars, (Ranking the Brands – Best Global Brands). This exceptional ranking is testament to Zara’s strong brand.
4. Speed of international expansion:
International expansion of Zara started 5 years after its founding. (Wikipedia, 2013). International expansion continues with Zara
This assignment identifies an organization portraying superior performance and then analyses the marketing concepts, marketing environment and marketing mix, and identifies critical success factors.
THE ORGANISATION
Dubbed by The Economist (Fashion Forward -The Economist, 2012) as Spain’s most successful brand, my organization is ZARA.
Based in La Coruna, Spain, Zara is Inditex’s main brand, (Fashion Forward -The Economist, 2012).
Founded in 1975 by Amancio Ortega Zara now has stores in 73 countries.
With estimated annual revenue in excess of 7 billion Euro, Zara has over 1700 stores worldwide, (Wikipedia, 2013). Zara has been described by Louis Vuitton fashion director as “possibly the most innovative and devastating retailer in the world”, (Wikipedia, 2013).
WHY ZARA?
I have used 4 suggested “superior performance” indicators to motivate my choice of Zara:
1. Competitive position:
Zara has a competitive edge against its rivals such as H&M, Gap, Benetton and Mango by producing fast fashion. Its extremely quick to know what is selling, and with this information they put the right products on shelf for customer purchases. (Pearson, A)
2. Financial Performance
Zara has defied the economic recession and reported growth through tough financial times. In 2011 sales grew by 10% and EBIT was 1.7 billion Euros. (Inditex 2011 Annual Report). By comparison, Gap was forced to close 200 stores in the US in 2011, and saw a slump in profit by 19% in one quarter (Chang, A. 2011)
3. Brand Strength:
Zara is ranked 37th in the world by Interbrand (“the world’s largest brand consultancy”), with a brand value in excess of nine million dollars, (Ranking the Brands – Best Global Brands). This exceptional ranking is testament to Zara’s strong brand.
4. Speed of international expansion:
International expansion of Zara started 5 years after its founding. (Wikipedia, 2013). International expansion continues with Zara
Bibliography: Wikipedia, 2013, Zara, [Online], http://en.wikipedia.org/wiki/Zara_(retailer) 2nd March 2013. Evans, Billy. 2011, Case Study of Zara, [Online], New Ezine Articles, http://newezinearticles.com/Art/119075/149/Case-study-of-ZARA.html, 3rd March 2013. Kaobns, 2012, Zara Marketing Strategy, [Online], Internet Strategy, http://internetmarketingkao.wordpress.com/2012/10/18/zara-marketing-strategy/, 3rd March 2013. Green Retail Decisions, 2012, Fashion Retailer Zara Opens Green in the Big Apple, [Online], www.greenretaildecisions.com/news/2012/03/15/fashion-retailer-zara-opens-green-in-the-big-apple, 3rd March 2013 Petro, Greg Inditex – Our Team, 2013. [Online] www.inditex.com/en/who_we_are/our_team 3rd March 2013 Hansen, Suzy