Marketing Strategy of Inditex: Analysis, Issues, and Solutions

This report provides an analysis of Inditex's marketing strategy, highlighting its strong brand positioning through diverse product offerings, prime locations, and premium pricing. It explores the company's use of promotional tools, direct distribution, and focus on customer satisfaction through regular updates and international designs. The report also identifies key marketing issues, such as market volatility, competition, government regulations, and economic factors. To address these challenges, Inditex focuses on environmentally friendly production, cost leadership, differentiation, and effective targeting. The company is also adapting its strategies by using social media, developing strong supplier relations, and prioritizing employee and customer satisfaction. The report concludes with recommendations, including expanding e-commerce, developing targeted marketing campaigns, and creating products for the middle-income group. The report references academic sources to support its analysis.

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Marketing Strategy
Student’s Name
10/1/2019

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Marketing strategy of Inditex
Inditex enjoys strong brand positioning in the competitive market by providing a high variety
of products and different ranges. The company focuses on using various promotional tools
like billboards, brand endorsers and chooses the prime location that has fashion-forward
window displays to increase brand visibility and charges premium prices for high-quality
fashion products. The company uses a direct distribution strategy and positions itself as a
high-quality fashionable brand. It uses attractive packaging by maintaining sophistication
and paper bags concerning environmental challenges. It focuses on delivering maximum
satisfaction to its customers by regular updates in its clothing and apparel and following
international designs (De Jorge Moreno and Carrasco, 2016).
Marketing Issues of Inditex
In order to achieve sales, the company faces the challenges of a highly volatile market and
increasing competition. It also faces the issue of government pressures and restrictions on the
trade and production of goods. The recessions and unequal distribution of income create
difficulty for the company to attract the target market and attain higher profitability. The legal
laws regarding employment and fair pay increase the cost of the company (De Jorge Moreno
and Carrasco, 2016).
Overcoming of marketing issues
In order to overcome the above-mentioned issues the company is highly focused on
environmentally friendly production and adopts the cost leadership and differentiation

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strategy and focuses on effective targeting of the customers to drive the sales of the company.
It also addresses legal issues by developing effective reward systems (Wilson, 2015).
The company has changed the strategies and has started focusing on promoting the brand on
social media platforms. It allows the company to engage with customers and enhance the
customer experience. The company addresses the issues by developing strong relation with
the suppliers and getting more committed towards its employees to improve the brand
performance (Kumar et al, 2016).
The company is customer centric and trains its employees to be sensitive towards customer
needs. The company intently listens and notes the customer comments to design new styles
and boosts customer satisfaction. It adopts technology driven systems to allows easy flow of
information and manage the complexities in the external business environment (Kumar et al,
2016).
Conclusion
From the above discussion, it is critical to note that Inditex enjoys strong brand positioning
and are able to maintain large customer base. Apart from the success of the company it faces
various environmental, social and legal issues. To address the above issues, the company
develops environment friendly products and actively respond to the changing preferences of
customers.
Recommendations
In order to address the above issues, the company must focus on adopting increasing the sales
through e-commerce channel. It must focus on developing marketing campaigns to engage
the customers and deliver personalise experience. The company must develop the products

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for the middle income group to address the issue of less purchasing power (Kumar et al,
2016).
References
De Jorge Moreno, J. and Carrasco, O.R., (2016) Efficiency, internationalization and market
positioning in textiles fast fashion: The Inditex case. International Journal of Retail &
Distribution Management, 44(4), pp.397-425.
Wilson, J.P., (2015) The triple bottom line: Undertaking an economic, social, and
environmental retail sustainability strategy. International Journal of Retail & Distribution
Management, 43(4/5), pp.432-447.
Kumar, V., Dixit, A., Javelin, R.R.G. and Dass, M., (2016) Research framework, strategies,
and applications of intelligent agent technologies (IATs) in marketing. Journal of the
Academy of Marketing Science, 44(1), pp.24-45.

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