Strategic Marketing Plan: Case Zara

Thèmes abordés

Strategic marketing plan case zara pestel swot analysis recommendations objectives porter five forces 5 campany background mission statement

Résumé du document

Founded by Armancio Ortega, the first Zara shop was opened in downtown Coruna in Spain in 1975. With this brand, he wanted to create stylish clothing inspired by the great fashion houses but at affordable prices. The brand proved to very successful and led to the creation of the company Inditex to run it. The Zara subsidiary of the Inditex Group represents 66% of its activity. In 1988, Zara extended its operations aboard and opened its first non-Spanish store in Oporto, Portugal. In 1990, the brand crossed the borders into France. Today, there has over 1,450 Zara shops worldwide and the brand is present in 77 countries.

Currently, Inditex is the head of several brands (Bershka, Pull and Bear, Massimo Dutti, Stradivarius, Oysho, Utoquai) operating on the same principle: fashion for all. In 2009, the brand recorded sales worth 7,077 million euros worldwide, with France accounting for 605 million euros; this country remains the second largest market of the Spanish brand. Regarding the Inditex group, it has 4,607 stores worldwide and operates in 74 countries. It employs over 92,000 people. In 2009, its sales were estimated at 11,084 million euros, an increase of 8% from a year earlier and net income was 1,314 million euros. Last year, 68% of its sales were generated from outside Spain.

The Inditex fashion philosophy is "creativity and quality design together with a rapid response to market demands". Despite these positive results, some concerns are beginning to appear, hence the following problem: How can one resist competition in the textile sector in a context of globalization? In the first part, we will conduct the internal analysis along with the external analysis of Zara.

Extraits

[...] Unlike them, Zara does not relocate its production facilities but favours local production, which gives it many advantages. First of all, the delivery time is shorter. In fact, it only takes fifteen days for the Spanish company to create new models, manufacture and deliver them in any stores. Creation is therefore close to production. Giving it a major advantage in the sense it allows Zara to respond quickly to consumer demand for fashion. Then, using the responsiveness in the delivery, the Zara company can produce on demand, and so does not meet high storage costs. [...]

[...] Firstly related diversification, means for Zara Company that it has remained a familiar market. Secondly, unrelated diversification means for the Zara Company that it must act on a market in which it has no experience and no industry. Here is some example: - Can diversify itself by specializing in selling sportswear to sponsor a cricket team. Marketing objectives to set for Zara Company would be to help maximise sales and growth, and build brand awareness. These could be classified as Try to increase the average the customer spends to 25% for existing customers. [...]

[...] With this brand, he has wanted to create a fashion inspired by the great fashion houses but affordable. The brand was very successful and has led to the creation of the company INDITEX to run it. The Zara subsidiary of Inditex Group, represent 66% of its activity. In 1988, Zara began to export abroad and settled in Portugal. In 1990, the brand arrived in France. Today there has more than 1.450 Zara shops worldwide and the brand is present in 77 countries. [...]

[...] Indeed Zara uses the marketing of scarcity because of frequent renewal of the offer, and the customer enters a brand Zara, must directly purchase the product they like because no model is renewed. Zara qualities are many, yet it assumes some weaknesses compared to its competitors. Zara has opted for a strategy of local production; it does not relocate its production plants. Admittedly, this strategy provides a powerful responsiveness, but this leads to local production costs. The firm has a heavy task to meet its commitments, as it must innovate constantly renewing its product range every two weeks. [...]

[...] This is particularly the case for the sign Dolce & Gabbana couture, which has created a brand more accessible to reach a broader customer base: D & G The opening on new market Today the Chinese market is booming in the ready-to-wear. Zara has already invested in this new Eldorado, with the introduction of 9 shops. Zara is expected to further grow this market, because Chinese customers are turning more and more products to the west, and the latter is fond of fashion. [...]