Strategic Management Assignment | Zara

Added on - Sep 2019

Zara is a clothing retailer based in Spain providing the latest international fashion products. We will see - Sustainability of the competitive advantage of Zara’s retail mix. The Facilitating Services and Customer Services. The Design, Store Layout, and Visual Merchandising.  The Marketing Communications. Zara can be assessed utilizing the PEST examination apparatus. You can also read "Case Study on Zara" and  "Digital Marketing Concept of ZARA" for better analysis. Zara has been using the strategy of cost leadership strategy which is one of the strategy outlined by Porter. Analysis of elements of a retail mix of Zara.

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IntroductionZara is a clothing retailer based in Spain providing the latest international fashion products. It isconsidered as a flagship store of Inditex Group. The retail management strategies of Inditexdepend on the innovation and flexibility and has the sole purpose of mixing high quality designand creative fashion in an amalgamation with quick reaction for the market demand have givenpermission to Zara for quick international exposure and success (Isabelle, 2012). The retail mixin Zara can easily be analyzed using the retail mix framework.Zara has been using the strategy of cost leadership strategy which is one of the strategy outlinedby Porter.1.Analysis of elements of retail mix of Zara in UKZara has been providing high quality products at low prices along with providing qualitycustomer experience in their stories. Zara has achieved this using innovative production andsupply chain strategies. The retail mix of Zara has been provided below:The Merchandise Range and AssortmentZara provides reasonable high quality of the fashion products in the broad product lines. Themerchandising product of Zara comprises of the ranges of men, women and children. Further,these ranges are subdivided into prices, product types, fashion-ability. Further, these areclassified into the categories of lower garments, shoes, upper garments, cosmetics andcompliments. These products are sold exclusively through their stores. But a wide range ofproducts are offered by Zara. The Zara Basic Product line has been known to offer the cheap
fashion to the young girls and customers whereas the TRF product line is seen to cater the needsof teenagers.The Marketing CommunicationsIt is powered by the horizontal communication model and highlights the marketingcommunication of Zara. Zara ensures that the marketing operations are extremely streamlinedand effective and is able to identify customer preference in the market. It successfully developsthe new design based on the requirement and converts the concept into the product within 2weeks. Zara also promotes word-of-mouth promotion.The Design, Store Layout and Visual MerchandisingThe Zara stores are elegantly designed and featureproduct displays, ceiling decorations, whitewalls that are highly adorned with the ambient lighting and product photographs. A boutiquelayout design by Zara in their stores thereby providing a more personalized experience to theircustomers instead of the public shopping experience.The Facilitating Services and Customer ServicesZara has been employing well-trained and highly knowledgeable sales and staff who are given aspecial training for understanding the needs of the customers. The company instructs employeesto handle the customer service with utmost utility. The company asks the employees to developtheir personal relationship with the customers.The Store Formats and LocationsThe stores of Zara have been placed in the best locations ensuring that every store receivehighest amount of attention from their customers. The store format used by Zara are categorizedas their specialty stores focusing on selling of apparels.The Pricing Strategy and Tactics
Zara uses principles of cost leadership and produces the product at lower cost as compared totheir competitors and selling their products at the lower price. The company does not usespromotions and offers.2.Sustainability of competitive advantage of Zara’s retail mixThe company has gained the competitive advantage by offering good quality products atreasonable price along with offering the products that are frequently being refreshed. In order tofollow that Zara has been adopting the cost leadership strategy. This ensures that all thecustomers are coming to store frequently. Zara spends only 0.3 percent of their revenue onmarketing. Further the elegantly designed stores helps in attracting maximum customers. Furtherthe company does not even indulge itself in the large scale marketing therefore high quality andword-of-mouth is highly important to the organization’s success. This has helped in enhancingthe customer loyalty. The production processes are seen to take place in the Spain headquartertherefore providing the time required for the outsourcing manufacturing. The company breaksdown the tasks of their employees into various steps and levels and offers fresh products withhigh speed in product, short lead period, less advertising cost etc. This helps in indicating thesustainability of competitive advantage of Zara which is seen dependent on the company’sability for churning out new products at short lead times.Therefore, the customers are exposed to various products under specific product range. Further,Zara has also been offering specific product lines catering to the needs of their customers andtheir related segment. As per the retail mix of Zara where the store formats is the weakestelement of the Zara as Zara has been utilizing the various formats in the stores even when all

Zara marketing plan

From the above report "Zara marketing plan",  it is concluded that Zara has been using the strategy of cost leadership strategy which is one of the strategies outlined by Porter. Analysis of elements of a retail mix of Zara in the UK Zara has been providing high-quality products at low prices along with providing quality customer experience in their stories. We have also seen the sustainability of the competitive advantage of Zara’s retail mix. Further, Zara has also been offering specific product lines catering to the needs of their customers and their related segments. we saw market entry method adopted by Zara is similar to the stage model of internationalization. Apart from this, "Marketing strategy of Zara" and "Marketing mix of Zara" have been examined properly.

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