Zara Case Study
ZARA CASE STUDY
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Introduction
The history of Zara started in 1975, when the first store has been opened in Spain. It has been followed by several other stores all over the world. The company’s owner, Amancio Ortega, accumulated 340 million Euros (according to 2001 datas), which is a remarkable growth if compared with other companies. Zara’s brand has become popular because of its quality and efficiency.
The secret of Zara is to understand the customer’s need and demands and respond to those needs quickly. In order to speed the design process he partnered with Joseph Castellano, who reduced the process to just 10-15 days. The manifacturing and distributing process is so fast that Zara needs onlt two weeks to develop a product, whilst other companies need up to 6 months.
Zara’s Business System
D Design
Retailing Sourcing and Manufacturing
Distribution
Zara doesn’t invest money in advertising but prefer to produce low priced and high quality goods, which can be available around the corner.
Question 1
“Explain the existing segmentation, targeting and positioning strategies of the Zara brand”
The existing segmentation, targeting and positioning strategies in Zara act as a The following below explains the
“Segmentation and the Market Driven Strategy Process.”
Segments
Value Opportunities
Capabilities/segment match
Targets
Positioning
Process:
Zara created a new product which wasn’t in the market. Then they analysed the market segmentation and considered the companies competitive advantages and market opportunities. This was done by taking buyers’ preferences into consideration and then compared the organizations’ strenghts and weaknesses. So they realised that the market needs good quality but low cost products. That’s why they created affordable and trendy clothing.. “According to Castellano, Zara-unlike its competitors- focused more on
[pic]
Introduction
The history of Zara started in 1975, when the first store has been opened in Spain. It has been followed by several other stores all over the world. The company’s owner, Amancio Ortega, accumulated 340 million Euros (according to 2001 datas), which is a remarkable growth if compared with other companies. Zara’s brand has become popular because of its quality and efficiency.
The secret of Zara is to understand the customer’s need and demands and respond to those needs quickly. In order to speed the design process he partnered with Joseph Castellano, who reduced the process to just 10-15 days. The manifacturing and distributing process is so fast that Zara needs onlt two weeks to develop a product, whilst other companies need up to 6 months.
Zara’s Business System
D Design
Retailing Sourcing and Manufacturing
Distribution
Zara doesn’t invest money in advertising but prefer to produce low priced and high quality goods, which can be available around the corner.
Question 1
“Explain the existing segmentation, targeting and positioning strategies of the Zara brand”
The existing segmentation, targeting and positioning strategies in Zara act as a The following below explains the
“Segmentation and the Market Driven Strategy Process.”
Segments
Value Opportunities
Capabilities/segment match
Targets
Positioning
Process:
Zara created a new product which wasn’t in the market. Then they analysed the market segmentation and considered the companies competitive advantages and market opportunities. This was done by taking buyers’ preferences into consideration and then compared the organizations’ strenghts and weaknesses. So they realised that the market needs good quality but low cost products. That’s why they created affordable and trendy clothing.. “According to Castellano, Zara-unlike its competitors- focused more on
References: Cravens W. David and Piercy F. Nigel. ‘’Strategic Marketing’’ Eight Edition McGraw Hill 2006 Institution for Business Development. Inditex website. Inditex.com Zara Official Website.