FINAL EXAM
21/1/2015

Brief Introduction

Zara is a Spanish clothing and accessories retailer that belongs to the Inditex group. Their headquarters is in Arteixo, Galicia. Zara was founded in 1975 by Amancio Ortega.

Product

Zara is a brand that works in the retailer market, is the number one of in his field, the low cost market, one of their biggest skill is that they need only one week to develop a new product and get it into the stores of all around the world and other brands need six months to do it. Also they work with an unusual strategy with zero advertising, they prefer to save money to open new stores in different places.
The idea of a lot of consumers is that Zara is fashion imitator with very cheap prices compared to the most fashion brands.

Main Competitors
Mango Bershka
H&M Massimo Dutti
Pull and Bear Stradivarius
Uniqlo United Colors of Benetton

Zara will have a lot of competition specially with their direct competitors but they are the number one brand of low cost clothing. The majority of the direct competitors like Pull and Bear, Massimo Dutti, Bershka or Stradivarius belong to the same group Inditex, so that make it easier for Zara to be the number one brand in his field.
The different brands from the list are direct competitors because they work in the same field as Zara, the clothing and accessories sales of low cost prices and they also sell to the same type of customer.

Zara has also indirect competition will be other clothing brands that have different type of customers, or at least customers look for better quality products with a much higher price, Zara follows quite carefully this brands because a lot of times they copy the same or a very similar design with lower prices and lower quality.
Examples of indirect competitors:
Hermes Lois Vuitton Abercrombie
Chanel Gucci Burberry
Marketing segments

Zara has different segmentation strategies, the most important one is based on the demographics and psychographics of the customer depending on the age, gender, the different stereotypes from different countries, they offer the service to people that don’t care much about the dressing and to people that want fashion clothes or they like to be update with society in the way they dress . A good example of segmentation is the different stores for kids that they offer.

Target group

Zara will offer their product to customers from all ages and gender but specially teenagers or people form sixteen years old to forty years old but they also work for kids and old people but with less success. Customers that buy Zara want to wear fashion clothing with low prices, so it is destined to people that haven’t got higher incomes but want to be update with the fashion world that we live in our days.

Marketing objectives

The marketing objective of Zara is to be the number one brand of low-cost clothing , so eliminate other direct competition brands specially the ones that are not in the Inditex group, even though Zara is one of the most successful brands they would like to increase their target group with older people, Spain is one of the countries with more old people so is a good idea to try new things for older customers. And with young kids, the new stores for them will increase their target group.

Marketing strategy

Zara is a brand that makes very little advertising so I would follow this policy and make little discounts in the special or holiday days and I would follow the strategy that Zara uses internationally, to ask consumers in different places like airports, sports events or shopping centers.
Also I would follow the Spanish trends and try to imitate them but with lower prices and put different stores in the main places of the important Spanish cities.

Brand positioning

Zara offers low cost clothing and accessories that imitates high quality brands, Spain is a country were people like to be fashion update and the country is passing a large season were there is economic crisis so Spain is a perfect country to sell the different products that Zara offers to the consumers.

Marçal Mir