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Transcript of zaragp2
Zara-clothing and accessories retailer
Founded in 1975 by Amancio Ortega and Rosalía Mera.
Zara is the biggest company of Inditex
1,721 stores in 87 countries.
Zara renews its products twice a week.
High update speed can accelerate the times of customers back to the shop
FDI ENTRY MODE
CITY & STORES
PRODUCT & PROMOTION MIX
Juan Sebastian Betancourt
Spring 2013-Zara's International
ZARA locations (January 2013):
43 countries in Europe
18 in America
26 in the rest of the world
Zara’s criteria for its international expansion
Emerging, Developed and Transition Markets
ENTERING A NEW MARKET
QA ANALYSIS PROCESS
18 Potential Countries based on
Logistic's Performane Index
Global Retail Developmen Index
Final 10 countries based key variables
“Logistics Performance Index-2013”,
“GDP per capita-2012”,
“Economic Index Freedom - 2013”,
“GDP growth % 5 year average 2007-2012”,
“Urban population ranged from an age of 15 to 64 - 2011”,
“Foreign Direct Investment in 2011”,
“Apparel & Clothing imports on 2012”
“Availability of latest technologies”2012
FINAL TWO SELECTED
NEW ZEALAND & NIGERIA
QL ANALYSIS PROCESS
Cultural and Social Environment
STRATEGIC MARKET: NEW ZEALAND
New Zealand GDP per capita is ten times the Nigeria’s GDP per capita.
New Zealand has the most stable governmental and judicial system.
Diverse similarities between New Zealand and Zara’s main market (US, Europe).
New Zealand has more serious competitors, but it also means that a market exists.
Company control (Location and design of the Zara store style).
Total or Majority of the Profits.
Learning curve in the new market as they position the brand.
Low risk control for the strategic variables.
Transaction Variables: medium/high dissemination risk
Resource Commitment is low for the E. Variables
KIM & HWANG FRAMEWORK 1992
GDP per capita by region
Population by region
Total of full and part-time employees by region
Establish a good presence in the city.
Largest population-Grasp a larger audience.
Not overexpose the market-Offer what it needs!!
MAGIC #: 1
HOFSTEDE IN THE PICTURE
Informal communication channel with its customer.
Focus on the customer.
Gain & maintain loyalty.
Competition and success within fashion.
Flexibility. Conservatism vs. New Ideas.
Results often monitored.
FACTORS TO CONSIDER IN THE
•Local Climate and Weather Conditions
•Consumer Behavior in New Zealand
•New Zealand’s Fashion
MARKETING MIX FOR ZARA
Informal and Casual outfits
(cc) photo by theaucitron on Flickr
TRF (Trafaluc) collection
(Evening events and night life)