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Brand management ZARA presentation

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on 21 May 2013

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Transcript of Brand management ZARA presentation

Conclusion is here Subject 2 Brand Positioning Brand Name Established in 1963 with a small scale product line.

Initially manufactured nightwear under the brand name confecciones (GOA)

The founder named the showroom as "Zorba" in 1975

Dispute with a bar owner caused INDITEX to change their store name to "ZARA" which was pronounced as "Tha-ra" in Spain. 14 years old
Google page ranked number 6
website valued at 1.61 Million USD ZARA Introduction to Zara : Video Owner of the brand Zara’s owned by Amancio Ortega -Born in 1936
-Co-founder of inditex group
-Worth 37.5 Billion (5th richest man in the world)
-Reclusive personality Competition Product Design


label Price Zara tries to follow a pricing strategy oriented to the market and especially the wishes and demands of their customers. The new line is more inclusive, and not exclusive: Follow the brand pricing strategies, affordable prices, good quality Promotion Main communication objective, inform about the new line, generate consumer emotions and purchase intentions.

How ?

Events Location Window fronts product life cycles Store Layout Place 1975 2011 1990 1985 (cc) image by jantik on Flickr 1975 – Zara opens its first store in Spain

1988 – Opens in Portugal, first time producing for a international market 1988 1991 1997 1994 1998 2001 Zara walks down a memory lane Unique standardised URL for all regions unlike competitors with country codes at the end. Before After Logos Jingles and Ad Campaigns Print Advertisements
Online Banner Ads
Look Books
Catalogues Zara's Ads are Consistent with their brands focused on black and white images Brand Elements Marketing Strategy Apparel market is a competitive market Porter Analysis Customer Profil A typical Zara customer as identified by the company is a person who is up to date with the latest developments in the fashion industry and wants fashionable, trendy and unique outfits at affordable prices Positioning Map Brand Mantra Zara vs Mango MANGO is the principal competitor of Zara Isak Andic its owner, was born in Istanbul to a family of Sephardic origin and at age 13 he moved to live in Barcelona. www.zara.com URL Louis Petrides (1991- 1997) – Zara stores open in 7 regions, including, Mexico, Greece, Belgium, Sweden, Malta, Cyprus and Norway. (1989-1990) – New York & Paris open (1998) – Zara starts targeting the Teen females.

2001 – Inditex goes public, valued at $8 Billion (Forbes, 2001)

2011 – Zara opens to the Australian Market. Zara’s now established in 78 countries, with 1,518 stores. Strengths Vertically Integrated Model Fast Supply Chain - Limits outsourcing
- Produces goods in house
- Better quality control - Customers always finds new products
- Customer sense of exclusivity (Harvard Business Review, 2005) Short lead time Inexpensive but fashionable - More fashionable clothes & accessories
- More styles
- More choice, and more chances of hitting it right - Accessibility to a larger Demographic (especially Teens) Weakness Lack of Advertising Online presence at Zara is Weak Store Location and Quantity - Missing potential Consumer Awareness - Potential loss of sales (Online shoppers) - Not able to reach a large portion of their intended market Opportunities Online Markets Zara on Facebook References CNN, (2001). Zara, a Spanish Success story, CNN Europe Business, Retrieved 1 May, 2012, from

Ferdows, K.F., Lewis, M.A.L., Muchuca, J.A.D.M (2005). Zara’s Secret for fast fashion, Harvard Business Review, Retrieved 5 May, from http://hbswk.hbs.edu/archive/4652.html

Heller, R.H. (2001). Inside Zara, Forbes, Retrieved 3 May, 2012, from http://www.forbes.com/global/2001/0528/024_print.html

Inditex, (2011). Inditex Consolidated Annual Accounts, from http://www.inditex.com/en/downloads/11_informe_gestion_grupo.pdf

Dutta, D.D. (2002). Retail at the Speed of Fashion. Third Eyesight, from http://thirdeyesight.in/articles/ImagesFashion_Zara_Part_I.pdf References
Keller, K.L. (2008). Strategic Brand Management (third edition). Upper Saddle River, NJ: Prentice-Hall.

Stokes, D. (2000). Putting Entrepreneurship into Marketing. Journal of Research in Marketing & Entrepreneurship, 2(1), 1-16.

Doshi, G. (2006). Developing a Brand. Retrieved 14 May, 2012, from http://ezinearticles.com/?Developing-A-Brand&id=369852

Elliott, J. (2004). Advertising vs. PR. Retrieved 14 May, 2012, from http://www.tvaproductions.com/article/advertising-vs-pr---17.php

Kwan, B. (2011). Spanish Domination – Zara Brand Profile. Retrieved 14 May, 2012, from http://www.marketingmag.com.au/blogs/spanish-domination-6575/

Motkar, S. (2011). Fast Fashion and its Disadvantages. Retrieved 14 May, 2012, from http://www.buzzle.com/articles/fast-fashion-and-its-disadvantages.html

Luo, D. (2008). How to Manage a Brand to be Strong: A Study of Zara (Thesis). University of Nottingham, England.

Mellenius, H. (2007). Market Orientation as a Branding Strategy (Bachelor’s Thesis). Uppsala University, Sweden. References Irish Times (2012), Zara owner raises dividend: Retail Sector: - Retrieved 24th of May 2012, from http://www.irishtimes.com/newspaper/breaking/2012/0321/breaking6.html

Kapferer J-N. The post-global brand. Journal of Brand Management 2004; 12 (5): 319-324.

Fabrega, F. (2004), Zara: El modelo de negocio de Inditex, Claves de gestión, Madrid.

Blanco, X.R. and Salgado, J. (2004), Amancio Ortega. De cero a Zara, La esfera de los libros, Madrid.

Brandz TM (2008-2012). Top 100 Global Companies. Retrieved May 24th, 2012, from http://www.wpp.com/wpp/marketing/brandz/brandz-reports.html

Hughes, M (2011, June 16). The Zara brand effect. Truly Deeply, Retrieved from http://www.trulydeeply.com.au/madly/2011/06/16/zara-brand-launch-marketing-australia/

Zara marketing Plan. (2010). Retrieved 15 May 2012, from http://www.slideshare.net/diandreea/zara-marketing-plan-pptx

Eliasson, G (2011), Zara Brand Analysis. Retrieved May 5 2012, from http://issuu.com/gullz/docs/zaraproject?mode=window&pageNumber=4

  Incorporate local changing fashion trends into their product offering A Greater number of High end stores Threats No advertising campaign -Zara’s competitors like Mango are doing ad offensive in Turkey Pay attention with corporate image and factories in dev countries Approximately 300 specialty stores networks compete in the apparel market. They bring together independent franchisees or branches, they organize each around a single brand The apparel market Subject 2 Points of Parity Subject 2 Points of Difference High Velocity fashion

Understanding and delivering customers’ needs

Exclusivity Internationally recognized European brand Thank You Prime retail locations Jesús Monterde Mónica Lizarrondo Paula Martínez Tom Delacroix Contents Conclusion recommendation Introduction history Competitors and Porter analysis Brand positioning and core value Zara vs mango Brand elements Brand marketing and in turkey Medium High Medium/high Medium/high Segmentation Targeting Strategy demographics of the customers like gender, age and psychographics. Core Value Zara Core Value Mango Brand association What come in your mind when you think about his brand name? Just 4 letters : easily memorable

All around the world transferable Logo as WORD :
Meaningful (colors & style) : refers to luxury brands Strategy in Turkey Prices are higher than in Spain but lower than in other countries.
Setting the price equal to cost plus. Zara is doing Local consumer research. And local pricing strategy ( comparison with competitors).

Shops all around the Turkey with reaching the hugest cities

In general Marketing in Turkey is the same than all around the world (General strategy from Zara) Our proposed strategy Creation of ZARA WEDDINGS ( Multibrand strategy) Recommandations
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