GROUP PROJECT

Marketing Principles

MEMBER :

Vũ Hải Đăng HE160164

Lecturer: Bùi Thùy Dương

1
TABLE OF CONTENT

Ⅰ. Introduction

1. Company background
2. Description of product/service offerings
3. Profile of target customer and target market

Ⅱ. Analysis of the company's microenvironment and macroenvironment

1. Microenvironment
2. macroenvironment

Ⅲ. Analyze the results of the market research

1. Secondary research
2. Primary research

Ⅳ. Analysis of current 4Ps marketing strategy

1. Product
2. Price
3. Place
4. Promotion

Ⅴ. Recommendations and Conclusion

2
Ⅰ. Introduction

Company background
- Zara is one of the most successful fashion retail brands in the world - if not the most successful.
By creating a fast-growing retail fashion empire, Zara aspires to create a passion for fashion
among a wide range of consumers, spanning different cultures and age groups.
- Zara was founded in 1975 by Amancio Ortega and Rosalía Mera in Galicia, Spain. The first
store to sell cheap clothes. And over the next eight years, Zara's fashion approach and business
model gradually gained traction with Spanish consumers, along with nine new stores opening in
the largest cities of the West. Spain.
- Over the next decade, Zara began to expand strongly into markets on a global scale including
Portugal, New York (USA), Paris (France), Mexico, Greece, Belgium, Sweden, Malta, Cyprus ,
Norway and Israel. Today, there is hardly a developed country without a Zara store. Zara
currently has 2,251 stores strategically located in leading cities across 96 countries. It's no
surprise that Zara, which started out as a small boutique in Spain, is now the fastest-growing
fashion retailer in the world. The brand's founder, Amancio Ortega, ranks sixth in the world
according to Forbes magazine.
- Today, Inditex is the world's largest fashion group with more than 170,000 employees
operating more than 7,400 stores in 96 markets worldwide and 49 online. Inditex's business and
management field includes many world famous brands including Bershka, Pull & Bear,
Stradivarius…
- Description of product/service offerings
- Is a fashion famous commercial guaranteed revision standards
- Zara products must be in the service area
- Zara Woman: A line aimed at female audiences with youthful style and suitable prices for
women's jackets, shirts, women's shirts, .to pants, zara shirts and women's shoes.
- Zara Men: Being very popular with men using a variety of styles and styles and always updated
regularly malicious code including shirts, Zara vests, Zara coats, .. clothes and shoes'

3
-Zara Kid: a special product line designed according to adults' costumes but with children's
proportions and sizes with unique designs with accents of simple variations in bright and sweet
colors. Sweet
- Zara Mini: products for babies from 0-12 months old are focused on materials to ensure the
best standards for ''young shoots''
-Profile of target customer and target market
-Zara's customer segment is mainly young people. However, they want products that are
reasonably priced but still trendy. Therefore, Zara's strategy has targeted this element and
produced trendy and low-priced designs. That doesn't mean Zara uses substandard components.
-Zara's customer positioning strategy is aimed mainly at women. In addition, men occupy a
smaller segment in the strategy and the remaining segment is for children's fashion.
- Zara's target market is young, price-conscious, and highly sensitive to the latest fashion trends.
They do not define their target by segmenting ages and lifestyles therefore give them a much
broader market and an advantage over traditional retailers.

Ⅱ. Analysis of the company's microenvironment and macroenvironment

1. Microenvironment

Supplier

Source

- Zara's owner combines European and other nearby markets. Suppliers come from the far East.
- Therefore, Zara's supplier list includes 12 clusters with a concentration of 92-97% of output:
Spain, Turkey, Morocco, Portugal, India, Bangladesh, China, Pakistan, Brazil, Vietnam South,
Cambodia and Argentina. These help the company track labor quality and social compliance for
local adoption.
- According to an Inditex report about Zara in 2017-2018,Zara's supplier list also includes 1040
suppliers from Asia. There are 459 in the European Union and 200 in the rest of Europe. Then
145 came from Africa and 30 from the Americas. On top of that, the company has a total of 1866
suppliers and 7232 factories around the world.
Inditex raw materials

4
 • Engaged in sustainable cotton production, such as organic cotton, recycled cotton. It is
mainly sourced from Western Europe. Zara has partnered with Lenzing, the manufacturer
of TENCEL Lyocell that is turning cotton waste into high-quality sustainable yarn.
• Recycled polyester and polyamide. Lyocell, viscose and other wood fibers
• A member of the Textile Exchange, which promotes recycled polyester and nylon as
preferred fibers. It reduces the consumption of natural resources, including energy. oil
and water, while dramatically cutting landfill waste
Intermediaries
- The company's hub and its supply chain is a giant, highly automated distribution (DC) hub
called "Cube". The screenshot below shows a close-up satellite image of this facility.
https://2g6hfv1xss7f31ea0927mr86-wpengine.netdna-ssl.com/wp-content/uploads/Zara-Cube-
DC-Pic.jpg.webp
- Zara bulk purchases only a few fabrics (only four or five, but they are) may vary from year to
year), and undertake garment design as well as related cutting and dyeing. This way, fabric
manufacturers can quickly ship large quantities of fabric directly to Zara DC - the Cube. The
company purchases raw fabrics from suppliers in Spain, Portugal ... And those suppliers ship
within 5 days of placing the order. Domestic logistics from suppliers mainly by trucks.
- The finished garment then leaves the Cube and is transported to the Zara logistics center in
Zaragoza. And from there they are delivered to stores around the world by truck and plane.
- Zara can deliver apparel to stores worldwide in just a few days: China - 48 hours; Europe - 24
hours; Japan - 72 hours; United States - 48 hours. It uses trucks to deliver goods to stores in
Europe and uses air freight to ship clothes to other markets. Zara can afford this increased
shipping cost because they don't need to discount a lot of clothes and don't spend a lot of money
on advertising either.
Customer

- The company's core market is women from 24 to 35 years old. They approach this market by
placing their stores in the center of town and places where there is a large concentration of
women in this age group. Short lead times create a scarcity of certain designs and that creates a

5
sense of urgency and reason to buy while supplies run out. As a result, Zara doesn't have a lot of
excess inventory, nor does it need to drastically cut prices on its clothing items.
- Zara targets the women who make up the largest portion of its target segment. In addition, men
also occupy a smaller segment of the target market and the smallest segment is for children's
fashion.
- Women account for more than half of the target market while men and children make up 40%
of the target market (Harbott, 2011). Zara has positioned itself as an affordable fashion brand for
young people. The most unique feature of quick update of fashion trends in a season compared to
the rest of the fashion world.
- Zara has also targeted young customers. They are price-sensitive young people. They want to
be trendy but the price has to be reasonable. Zara has strongly targeted this segment using the
latest designs and low prices. However, that does not mean that Zara uses products that do not
meet the standards of quality. Its fabric is still of good quality but is usually used for only one
season.
Competitor

Zara
-Zara can design, manufacture and sell its products in stores quickly because the company owns
many vertical factors of production.
-The fact that Zara owns the steps in the supply chain allows for faster product turnover; Zara
can design a product and sell it in stores a month later. Zara's strategy is to offer a higher number
of products available than its competitors.
While most clothing retailers produce and sell to the public 2,000 to 4,000 different items of
clothing, Zara's output is markedly higher, with more than 10,000 being produced each year.
This unique feature of the company's strategy has allowed Zara to attract a large number of
customers with unique tastes.
-Zara does not emphasize advertising as part of its branding strategy, unlike Uniqlo; instead, the
company transferred dollars that could have been used for advertising into the newly opened
stores.
H&M

6
-H&M, or Hennes & Mauritz, is the oldest of the three. The discount retailer, known for its
affordable prices, was founded in Sweden in 1947 and over the years has grown into one of the
most recognizable brands in the fashion industry.
-H&M has expanded significantly over the past few years. It has 4,167 stores open worldwide, as
of February 2022, more physical stores than Zara and Uniqlo.
-H&M's penetration into the US market is also faster than competitors with 548 stores opened.
-H&M has announced plans to roll out thousands more over the next few years. At the same
time, H&M has had to close some stores as more customers shop online, reflecting a broader
shift in the retail world from physical sales to a more e-commerce-based model.
Part of H&M's sales-boosting strategy is to offer customers featured products that have been
marketed as co-designs with well-known names like Versace and Alexander Wang. By offering
these products at H&M locations, the company enhances its reputation by partnering with
valuable figures in the fashion world, while providing customers with exclusive product lines.
Complementary products differ in look and style from the company's main designs.
Uniqlo
- Uniqlo was acquired by Fast Retailing Co. in November 2005 and was originally established in
1949 in Japan.
Uniqlo has opened 2,000 stores in more than 25 markets worldwide. The introduction of Uniqlo
into the US market took place in 2006; has 43 stores in the US as of May 2022.
Uniqlo's distribution channels are concentrated in the country of origin; 812 Uniqlo store
locations in Japan.
- Uniqlo's distribution strategy focuses on the timing of its product introduction into stores, with
new products being created not because of volume but demand. Uniqlo responds to the changing
trends in Japanese fashion and specifically caters its designs to mimic the minimalist style that is
popular in Japan. This affects the appeal Uniqlo may have to Western distribution channels and
could be the decisive reason behind the low number of stores in the US.

2. macroenvironment
Economic environment:

- The factors of the economic environment such as inflation rate, GDP, interest rate, exchange
rate... have a great influence on the general operation of enterprises. If one of those factors

7
changes, it will create opportunities and threats for every company. Therefore, it is extremely
important for the company to study the fluctuations of the economic environment, in order to
find the right solutions to overcome challenges and seize opportunities. hard time.

Economic growth index:

- After a decade of high growth, the bursting of the real estate bubble, the surplus turned into a
deficit, and Spain entered a deep recession in 2008. In May 2009, Spain created a bailout fund
known as the FROB with a budget of up to 99 billion euros and called for weaker savings banks
to merge to improve solvency. In 2009, Spain's GDP fell by 11.2% (-3,722). Despite the modest
signs of recovery in 2010 (-0.147), the Spanish economy is still struggling to emerge from the
crisis. The sharp drop in consumer spending caused a significant drop in demand for the industry
. This makes it difficult for businesses in the industry to develop

Demographic environment

- Overall, Spain's population growth rate was very slow from 2000 to 2010. The population
density of Spain is 87.8 people/km², lower than many other Western European countries. In
most developed countries in the world, fertility rates have dropped because couples want to
have fewer children, specifically Spain has one of the lowest fertility rates in the world and
has the ability to faces a significant increase in aging-related public spending between 2030
and 2060, which could pose problems for the social welfare system. Spain's fertility rate
dropped from 1.46 in 2008 to about 1.38 in 2011

-Age structure: In Spain, the aging process due to longer life expectancy is accelerating, to the
point that the number of people over the age of 65 has doubled in less than 30 years.
International research by the United Nations predicts Spain will be the country with the most
family by 2050 with 40% of the population over 60%. Age structure chart Age structure
(Estimated 2008)

0-14 years old: 14.4% (3,423,861 men / 3,322,028 women)

15-64 years old : 69.1% (16,185,5575 men / 15,683,433 women)

65 years and older : 16.5% (3,238,301 men / 4,394,624 women)

8
-The target customers of fashion retailers are young customers. Therefore, the slow population
growth rate and aging population in Spain have affected businesses in the industry, causing
the industry's target market to be reduced.

Political - legal environment:

- Changing factors in the domestic political-legal environment also have a major impact on
the level of opportunities and threats facing the industry and the company. Politics is the first
factor that investors and business administrators need to pay attention to and analyze to
forecast the level of safety in operations in countries and regions where businesses are having
relationships. Buying, selling or investing The problem for businesses is to understand the law
and comply well with the provisions of the law, study to take advantage of the opportunities
brought by the legal provisions and at the same time have potential partners. timely book in
advance, but the risk may come from legal regulations. There are some restrictions in the
country regarding the company's market share. Some regions of Spain have their own policies
regarding jurisdictions, such as the Cannary Islands or Catalonia, which have an effective law.
force since 2000 “the commercial group cannot hold more than 25% of the total sales of the
stores in Catalonia. This may limit the growth and expansion of the chain stores of retailers
operating in the Spanish market.

Socio-cultural environment:

-This study shows that the current trend of fashion consumers when choosing to buy is
"Consumer Ethics", which means that when buying products, consumers often ask many
questions such as whether the manufacturer Fair competition or not? Is the product
recyclable? Domestic or foreign goods? Does the factory respect international labor
standards? How does the above product affect the environment and society? Finally, do the
products they hold in their hands create more destruction for the earth? . This creates a
challenge for companies in the industry that want to attract customers to compete fairly to
create "ethical fashion".

Technology environment:

- Nowadays, the advent of new technologies can be complicated for retailers but the
convenience and cost-effectiveness provided by it has created the necessity for advancement

9
for companies. . With the development of the Internet and the introduction of high -tech
mobile devices such as smart mobile phones and tablets, the use of the Internet on mobile
phones has increased. According to a new survey by Pew Internet & American Lif e Project,
more than half of all cell phone owners use their device to surf the Internet. The survey shows
that 64% of mobile phone users browse online through their phones rather than computers
because of the convenience and availability. In addition, research shows that mobile users use
the Internet to access popular social networking sites such as Facebook, Twitter, Tumpl, etc.
This has created an opportunity for companies to use traditional network media. this social
media to increase customer loyalty further , raise brand awareness , spread promotional
messages , increase communication with customers and in many cases it is also profitable for
the company

Ⅲ. Analyze the results of the market research

1. Secondary research

Zara's super efficient supply chain

- Zara's highly responsive, vertically integrated supply chain enables apparel exports 24 hours a
day, 365 days a year as well as shipping new products to stores twice a week. Once the product
is designed, it takes about 10 to 15 days to reach the stores. All clothing items are processed
(inspected, sorted, tagged) through a distribution center in Spain. In most cases, clothing items
are delivered to stores within 48 hours. It also eliminates the need for warehouses and reduces
the impact of demand fluctuations. Zara produces more than 450 million items and launches
around 12,000 new designs each year, so supply chain efficiency is critical.
How often to collect customer insights: Trends information moves into headquarters databases,
used by designers to create new lines and modify existing ones.
Standardization of product information: Zara Warehouse has standardized product information
with common definitions, allowing for quick and accurate preparation of designs with clear
manufacturing instructions.
- Product Information Management and Inventory Management: By efficiently managing
thousands of fabric, trim and design specifications and their physical inventory, Zara has the
ability to design a fabric available raw material needed.

10
Procurement strategy: About two-thirds of the fabric is undyed and purchased before the designs
are finalized.
- Production approach: Zara uses a "make and buy" approach. That is, they will create more
fashionable and riskier items (which need testing) in Spain, and will outsource the production of
standard designs with more anticipated demand in Morocco, Turkey and Asia to reduce
production costs. More fashionable and riskier items (about half of Zẩ's goods) are produced in
more than a dozen company-owned factories in Spain (Galicia), Portugal and Turkey. Clothing
with a longer shelf life (e.g. those with more predictable demand), such as basic t-shirts, is
outsourced to low-cost suppliers, mainly in Asia. Even when manufacturing in Europe, Zara
manages to keep costs down by outsourcing assembly to small outside workshops.
In addition to these supply chain efficiencies, Zara can also modify existing items in as little as 2
weeks. Shorter product life cycles mean greater success in meeting consumer preferences. If a
design does not sell well within 1 week, it will be withdrawn from stores, further orders will be
canceled and a new design replaced. Zara closely monitors changes in customer preferences for
fashion. The brand also has a range of basic designs that are carried over from year to year, but
some of the latest trending, trendy fashions can stay on the shelf for less than 4 weeks,
encouraging customers to rows make repeat visits. The average Spanish street store expects
customers to visit 3 times a year. But for Zara, the expectation is that customers should visit
about 17 times a year.

Zara's culture: The word "impossible" does not exist

- Zara employs a lot of young talent, who quickly advance through the company's many
positions. 90% of store managers come from within the company. The brand creates a culture of
giving responsibility to young people and a culture that encourages taking risks (as long as you
learn something) and doing fast (the fashion mantra).
- Senior managers give store managers complete freedom and control over store operations and
performance with clearly set cost, profit, and growth goals.
- In addition, when an employee is selected for a promotion, the store develops a comprehensive
training program for that individual with the human resources department, receiving periodic
additional training, reflecting Zara's commitment to talent development.

11
- Customers are the most important source of information for Zara, but like any other fashion
brand, Zara also employs trend analysts, customer reviewers and retains some good talent. best
in the fashion world. Zara's creative team consists of more than 200 professionals. All embody
and adhere to the company philosophy that the word "impossible" does not exist in Zara.
Zara encourages a culture of exchange. Sales and marketing teams that receive trend feedback
regularly talk to designers and sellers. It is important to have ongoing two-way communication
so that sales and marketing teams can talk about new lines to customers. Production planning is
also closely coordinated so that no time is wasted on approval. The design team also focused on
carefully interpreting catwalk trends suitable for the mass market – Zara's customers. The
product design and development team works closely to produce 1,000 new styles per month.
Zara does not have a lead designer. All of its designers have unparalleled independence in
approving products and campaigns, drawing on a daily source of data that shows which styles are
popular.
- Another key reason why Zara's employee strategy is so successful is the fact that it empowers
its employees to make data-driven decisions. Zara does not have a lead designer. All of its
designers have unparalleled independence in approving products and campaigns, drawing on a
daily source of data that shows which styles are popular.
- Due to the focus on the customer, the entire business model is designed so that the demand for
finished goods is driven by the production process, rather than the production of available
materials.

Zara brand communication strategy

- Similar to Apple, Zara has almost no advertising policy. Zara spends just 0.3% of its sales on
advertising compared to an average of 3.5% for its competitors. The brand's founder Amancio
never spoke to the media nor did he seek to advertise Zara. This is really a sign of a truly
successful brand when customers appreciate and are loyal to that brand.
- Instead of advertising, Zara uses its store location and in-store displays as key elements of its
marketing strategy. By choosing to stay in the most prominent locations in the city, Zara ensures
a very high number of visits. In the introductory screen/banner there will be the most prominent
pieces in the collection. According to Zara's fast fashion philosophy, window screens are
constantly changing. All Zara employees are required to wear Zara clothing when working in
stores, but these "uniforms" vary between different Zara stores to reflect socioeconomic

12
differences in the region. regions in which they live. This effectively communicates Zara's focus
on the mass market as well as its proximity to customers.
- To tap into the emerging e-commerce trend, Zara launched its online store in September 2010.
The website was initially available in Spain, UK, Portugal, Italy, Germany and France, and has
been extended to Austria, Ireland, the Netherlands, Belgium and Luxembourg. Over the next 3
years, the online store was available in the United States, Russia, Canada, Mexico, Romania, and
South Korea. In 2017, Zara's online store launched in Singapore, Malaysia, Thailand, Vietnam
and India. More recently in March 2018, the brand launched online in Australia and New
Zealand. By 2017, online sales accounted for 10% of Zara's total global sales.
-- The Zara brand was born with customer acumen. It is the ability to understand, anticipate and
provide its customers with fashion preferences and affordable prices. Beyond an efficient supply
chain, a client's brand's ability to create co-creative designs is unique and provides it with a
competitive edge. Most fashion trends often start out of nowhere, starting in uncommon places.
In a world filled with Big Data and more being collected at a faster rate than before, brands still
need to be careful and observant. Because big data does not provide the answers to all business
challenges.
- One of the secrets behind Zara's global success is its culture and respect for the fact that no one
is a better and authentic trendsetter than the customers themselves. This philosophy should
continue to be reflected in all upcoming business strategies.

Customer positioning strategy

- Zara's customer segment is mainly young people. They want affordable yet fashionable products.
Therefore, Zara's marketing strategy has strongly targeted this element and produces trendy and
low-priced designs. However, that does not mean that Zara uses substandard products. Fabrics are
selected from the finest materials but are usually used for only one season.
Zara's customer positioning strategy targets the majority of women in its target segment, which
accounts for 40%. In addition, men occupy a smaller segment of the strategy and the smallest
segment is for children's fashion.

Zara's marketing strategy "Catch the hot trend"

13
- Zara's goal is to keep up with the latest fashion trends while creating high-quality yet affordable
products. Zara quickly identifies the latest trends in fashion and brings them quickly to stores at
reasonable prices. Meanwhile, most other fashion brands take about a month to bring new designs
and collections to market. However, products may differ in specific markets, because Zara does
its own research before releasing any products in particular markets worldwide. It sells products
that match the local culture and people's taste.
This makes Zara known for the latest fashion designs and keeping up with all the high end trends
in the world at the most affordable prices. And this is Zara's most effective marketing strategy,
customers are always as interested in Zara's products as they are in world fashion.

1. Primary research

- Zara's pricing strategy focuses on mid-segment shoppers choosing affordable and trendy
products. Zara products are priced to cater to consumers who are price conscious and want
trendy fashion but prices are not high. The pricing strategy has helped Zara address the needs of
a very large consumer segment. This kind of marketing strategy of Zara has also helped to create
a unique brand image and grow market share faster.

However, regardless of the high or medium price, Zara still values its products as that of a high-
end brand. Some Zara stores can have quite high prices while others will be affordable. But for the
most part Zara has a premium pricing strategy. The pricing is done by optimizing the development
costs of the brand.

Zara's marketing strategy is "Don't invest in advertising"

- When learning about Zara, you will rarely see ads on TV, the internet because Zara's marketing
strategy is "not to invest in marketing". Instead of the money used for advertising, Zara will use it
for exploiting new markets and opening stores. The more stores open, the wider the brand
coverage, the more customers will know about Zara.
- This is a unique and difficult marketing strategy for many companies, but for Zara, it is a smart
investment and fits the company's business model. Because Zara completely eliminates
intermediaries such as transportation, renting space for shopping centers, etc.

14
- Zara also selects the most beautiful locations in the main cities, displaying the best products
through the windows and exquisitely displayed inside. Therefore, to find a location to open a Zara
store is not a simple task, it is a process that requires a lot of factors, knowledge and experience
related to location, image, window design and furniture. Inditex has its own team of designers and
architects to take care of this.

Zara's marketing strategy is always "Creating scarcity"

- Zara's products are always limited to each style, the quantity is less than the market demand
estimate, not only making the product difficult to reveal, but also creating a scarcity of that model.
The rarer and more precious the particularity of the fashion industry, the more limited Zara's
products inadvertently create a quick "desire" of many customers. The price of the product is also
not too expensive, making this need even easier to satisfy.
- When the first Zara store on Regent Street, London was opened, customers only came to see the
goods and intended to return for the sale. The salesperson explained to them that the models change
every week, and by the next week the desired model may not be available anymore. And Regent
became one of Zara's most popular stores, with more stores popping up in the UK.
And if the style did not "eat" with the fashion at that time, Zara did not need to sell out to make up
for the loss. In fact, the company only needs to reduce the price by 18% while many competitors
have to "sell" up to half. The secret lies in the "desire" of customers for Zara fashion.
Besides, scarce in quantity, but Zara invests abundantly in the types and models of its fashion
products. Instead of producing many products for the same model, Zara focuses on minimizing
quantity and creating designs. As a result, when one model is out of stock, there are still other
models waiting to be released. And when customers have more choices, their purchase rate is also
much higher. As a result, customers will always buy more or less, and Zara can always sell clothes
without clothes.
- Above are the marketing strategies of Zara during its journey to affirm its No. 1 position in the
fashion industry in the world. Besides other popular brands such as H&M, Uniqlo… Zara is always
the leading brand trusted by consumers for its quality and reasonable price.

15
Zara's main designer is the customer

- Zara's unwavering focus on customers is at the core of the brand's success. There is an
interesting story about how Zara co-creates its products by leveraging customer input.
As a prime example in 2015, a woman named Miko walked into a Zara store in Tokyo and asked
the store assistant for a pink scarf, but the store didn't have any pink scarves. The same thing
happened almost simultaneously for Michelle in Toronto, Elaine in San Francisco, and Giselle in
Frankfurt, all of whom walked into a Zara store and asked for a pink scarf. They all left the
stores without any scarves – an experience many Zara fans encountered across the globe in
different Zara stores in just a few days.
- Just 7 days later, more than 2,000 Zara stores globally have started selling pink scarves.
500,000 pink scarves were sent out – to be exact. They sold out of these in just 3 days. How do
pink scarves sell so fast?
- Customer insight is the 'holy grail' of modern business, and the more you know about your
customers, the better you can innovate and compete. The biggest challenge is getting the right
insights, at the right time, and ready to take action.
- One of the secrets of Zara's success is training and empowering store employees and managers.
They are all particularly sensitive to the needs and wants of their customers and how they
express them. They listen attentively and take note of customer comments, ideas for cuts, fabrics
or new lines, and watch the new styles customers are wearing transformed into unique Zara
styles. Meanwhile, traditional daily sales reports can hardly provide a dynamic updated picture
of the market. The Zara Empire is built on two basic rules: "give customers what they want" and
"give it to them faster than anyone else".
- Due to Zara's ability to research customers, the brand's products across its stores reflect overall
needs across climates or cultures. Zara offers smaller sizes in Japan, special women's clothing in
Arab countries, and different seasonal clothing in South America. These differences in product
offering across countries are created by frequent interactions between local store managers and
the creative team.
- In the world of fashion, trends start small but grow fast. Zara employees are trained to hear, see
and pay attention to even the slightest seismic signals from their customers. Because that could
be an early sign that a new trend is forming. Zara knows that faster is more likely to succeed in
delivering the right fashion merchandise at the right time. Zara has established sophisticated

16
technology-driven systems that allow information to move quickly from its stores to its
headquarters in Arteixo, Spain, for quick decision making that responds effectively to emerging
trends develop.
- Zara's design team regularly visits universities, clubs and other locations to see what young
influencers are wearing. At headquarters, the design team uses flat screens connected by webcam
to offices in Shanghai, Tokyo and New York (trending cities), acting as executives. trend. The
'Trends' team never goes to fashion shows but will follow bloggers and listen to the brand's
clientele.
- The reality is that designers and customers are two closely linked elements and the most
important part of Zara's brand strategy. Expert teams receive constant feedback on the decisions
their customers are making at every Zara store, continuously inspiring the Zara creative team.

Ⅳ. Analysis of current 4Ps marketing strategy

1. Product Strategy of Zara

- When Zara first joined the international fashion scene, it didn't use the term "fast fashion," but
that was the approach it took. The founder of the business sought to handle the sale of clothing
differently from the beginning. Retailers used to work on a seasonal schedule, producing
enormous quantities of clothing each season and discounting any excess.
- Zara creates fresh apparel designs all year long and only produces a small quantity before
moving on to the following designs. With such short production runs, designs sell out more
quickly, and there are hardly any leftovers. The greater diversity and range of options for the
consumer are made possible by the greater number of designs. In addition, because there will be
fewer people who own the identical outfit that the buyer just purchased, the smaller quantity of
garments produced per design also significantly boosts its worth for the customer. To put it
another way, there is greater exclusivity, which increases attraction.
- Rather than outsourcing, Zara produces everything in-house. This guarantees that it has
complete control over the quality of its apparel and shortens the production process' overall
duration noticeably.
2. Price Strategy of Zara

17
- Most consumers are pleasantly surprised to see that Zara's prices are really reasonable when
compared to other clothing in its class, especially given the excellent quality of its items, which
is equivalent to the majority of other high fashion companies today. Zara's premium pricing
approach plus the fact that its products are still regarded as high fashion means that the price may
still be out of reach for the average consumer.

- However, because affordability is one of Zara's main goals, the company is constantly looking
for ways to reduce production costs. This allows Zara to provide its products at cheaper rates and
make them more accessible to the typical consumer who wants to wear stylish garments without
breaking the bank.

3. Place Strategy of Zara

- Zara took some time to expand its reach and open stores outside of its native Spain, but once it
did, there was no coming back. After starting off in the neighboring country of Portugal, Zara
ultimately opened an office in India. The company soon has locations all over the globe,
including flagship locations in important global cities including Seoul, New York, London,
Madrid, Rome, and Vladivostok. As of right now, Zara runs 2,242 stores throughout 96 nations,
and its international growth is ongoing.

- Additionally, Zara has extensively pushed internet sales avenues. In addition to their main
website, where you can explore and buy the majority of their items, Zara has partnered with a
number of multi-brand online retailers, significantly expanding its market reach. Online
platforms are also a fantastic tool to sell to the younger demographic that uses social media
often. One of the reasons Zara is so well-liked among millennials is its robust internet presence.

4. Promotion Strategy of Zara

- The fact that Zara does not invest a lot of money in advertising is another factor that makes its
marketing techniques so distinctive. Rival companies invest millions of dollars on several
advertising campaigns, yet Zara doesn't even have TV ads. Zara makes use of low-cost,
extremely successful social media marketing techniques. Zara only needs to publish a Facebook
status to provide information with its 30 million followers about an event or a new line of

18
apparel. If that's not enough, Zara can also share a few photos with its 45 million Instagram
followers for them to like and comment on.

- Spending on billboard advertising is done by Zara. This could be pricey, but the majority of its
customers are young people, and its advertisements are quite appealing to them. It's also
important to note that none of Zara's items bear the retailer's branding. Zara views it as an
unnecessary expenditure and instead invests its money in creating new stores in desirable areas
throughout the globe, a strategy that has so far been immensely successful for the company.

Ⅴ. Recommendations and Conclusion

- In the decimal set, Zara was the third-place global retailer and pioneered the agile supply chain
(ASC) in quick fashion. This is the outcome of the customer and designers' alignment, as well as
the shipping capability to react swiftly to things to catch up on sales. All of this demonstrates that
ASC is a strategy that fosters organizational competition. Another lesson is to properly plan
production with a good balance of in-house and outsourced to ensure minimal downtime and
increase Zara's market share.Although Zara's overall business is incredibly efficient and agile,
the supply chain is not one of them. Zara intends to reduce supply chain inventory and the danger
of forecasting leaving the product's information procedures unfinished until just before delivery
by adopting agile response.

19