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Zara

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by

Anna Glover

on 9 October 2015

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Transcript of Zara

Swot Analysis
Strategies and Performance
Macro Environment
The fashion company Zara has a marketing strategy that is quite unique. It opts not to strongly utilize traditional advertising

Zara only spends about 0.3% of their revenue on promotion. (WWW.edition.CNN.com)

The reason why Zara does not appear on television or poster advertisements (offline communication).

Instead, Zara focuses more heavily on their product, place and pricing as opposed to promotion.

Fast fashion company, which means popular products may disappear off the shelf within days, forcing customers to constantly check for new items. (online and offline communication)
Traditional offline and online marketing strategies
Internet Marketing tools
Zara, uses little of the E-marketing tools which derive from this model.

Advertising via visual merchandising and the use of classic ‘ZARA bag’ from packaging, are the two main components from offline communications.

Online, ZARA choose to maintain a classic and stylish website to engage fashion orientated customers. Customers can opt in for viral marketing through newsletter e-mails.

(Chaffey and Smith, 2008)
Traditional offline advertising
Traditional online advertising
Search Engine Marketing (SEM)
ZARA is highly involved in search engine optimisation activities both on page and off page.

On Page Optimisation:
> Website shows off a clear brand image

> Full overview of website with links in one page

> Easy of the eye, very visual

The Alexa toolbar is an application set up to assist browsers online. Website specific statistics become measurable through the use of this system.
 
ZARA’s global ranking number is 1,186 (The rank is calculated using a combination of average daily visitors to this site and page views on this site over the past 3 months.
 
Most popular in USA, SPAIN, FRANCE AND UK.
Alexa Ranking
Social networking
Facebook
ZARA’s main social networking sites include Facebook, Twitter and Pinterest. Each network allows the brand to show off its identity, collections, opportunities and customer service.

24,004 sites link to ZARA website (www.alexa.com)

Receives most valuable links from youtube, yahoo, wikipedia and amazon

Mostly used search keywords that send traffic to the website are: ‘zara’, ‘zara uk’ and ‘zara online’ (www.alexa.com) (www.google.com)

Off Page Optimisation: Linkbuilding activities
Google search bar is an important tool for ZARA advertising. Just from typing the letter ‘Z’ into Google, Zara is 3rd in the search.

And as soon as you type in ‘ZARA’, the many sections that incorporate the brand appear, easy for you to search.

Once having type ZARA into Google, you are then presented with a serious of links and even a map, address, telephone no. etc. of your nearest store.

Twitter
&
Pinterest

In 1980, Zara started it's international expansion through Porto, Portugal. In 1989 - USA and in 1990 -France.
Stores
Zara belongs to Inditex - world's largest retail group.
1,770 stores around the world.

Zara's customers
Zara sells apparel, footwear and accessories for men, women and kids. (Women 78%).
Zara’s consumers are young, value conscious and highly sensitive to the latest fashion trends in the industry.
No specific age so designs can reach broader market.

PEST ANALYSIS
Political

Tax rates
Consumer Laws and Govt. policy - Labeling Country of Origin required, Fair Trading and Consumers Guarantees Act
Labour Laws
Economical
Social
Technological
Strengths
Global outreach, strategic locations, effective distribution strategy, minimalistic store design, fast changing collections.
Weaknesses
Brand image close to competitors, limited stock, lack of marketing, website is not very effective
Opportunities
Big demand for high fashion at affordable rates, growing Asian market
Threats
Competition, law suits against sweatshops, possible copy-cats, dilution of brand equity
Competitor Analysis
Perceptual Map
Having trouble breaking into U.S market as no vanity sizing (Elle, 2012)
Cultural changes: Introduction of plus size mannequins, example: Debenhams (www.bbc.co.uk)
Ageing population (new market segment)
Increased interest in popular culture (linked to technological advances) leads to a growing market in fast fashion
By Anna Glover, Amy Hayward, Anya Kinnear and Vanessa Lang
Amina Akhtar. (2012). Why Zara Is Having Trouble Breaking Into The U.S. Marke. Available: http://elle.com/news/why-zara-having-trouble-breaking-145900751.html. Last accessed 20/11/13.

Chaffey, D (2012). Digital Marketing: Strategy, Implementation and Practice. London: Pearson  

Chan, C. (Sept 16th 2011). Zara's Marketing Strategy. Available: http://blogs.ubc.ca/conradchan/2011/09/16/zaras-marketing-strategy/. Last accessed 20th November 2013.

Charlie Thomas. (2012). Zara Owner Inditex Reports 'Stunning Figures'. Available: http://www.huffingtonpost.co.uk/2012/12/12/zara-parent-company-inditex-stunning-figures_n_2283011.html. Last accessed 22/11/13.

BBC website: http://www.bbc.co.uk
Solis,B (2012) Meet generation c the connected consumer. Brian Solis Blog [online] http://www.briansolis.com/2012/04/meet-generation-c-the-connected-customer (accessed 23.11.13)

Facebook. Available: https://www.facebook.com/Zara. Last accessed 20th November 2013. 

Google. Available: https://www.google.co.uk/?gws_rd=cr&ei=3TONUoS7GZDy0gXXqoDwCA#q=zara. Last accessed 20th November 2013. 

Julia Caesar. (2010). Zara launches online retail store. Available: http://www.bbc.co.uk/news/business-11155437. Last accessed 21/10/13.

Pinterest. Available: http://www.pinterest.com/zaraofficial/. Last accessed 20th November 2013.

Review website information. Available: http://www.review.com

Ryan, D and Jones, C (2012). Understanding Digital Marketing. 2nd ed. London: KOgan Page Ltd.

Site Info Zara. Available: http://www.alexa.com/siteinfo/zara.com. Last accessed 20th November 2013.

Twitter. Available: https://twitter.com/ZARA. Last accessed 20th November 2013.

Zara Apps. Available: http://www.zara.com/uk/en/apps-c362004.html. Last accessed 20th November 2013.

Zara, a Spanish success story. Available: http://edition.cnn.com/BUSINESS/programs/yourbusiness/stories2001/zara/. Last accessed 20th November 2013.

Zara Homepage. Available: http://www.zara.com. Last accessed 20th November 2013

Zara Newsletter. Available: http://www.zara.com/uk/en/newsletter-c11110.html. Last accessed 20th November 2013

The recession is affecting disposable incomes
Zara must be aware of taxation rates, economic growth, inflation, interest rates, exchange rates and tariffs.
Recommendations
Expanded marketing strategy

Increased advertising budget

Comprehensive website

Channel initiatives

Integrate Online and Offline Platforms





Channel Initiatives
Comprehensive Website

Creation of a customer experience based website as well as a transactional platform (Chaffrey,2012).
Recommended items (related to previously searched/purchased products.
Clear links to social media (options for sharing/emailing)
Online competitions
Introduction of animated look books
More extensive range of clothing offered on website
Lenient and clear returns policy.Studies show (review.com) that having to pay returns shipping negatively impacts the overall returns policy. Incurred charge for using paypal.
24 hour customer service (Ryan, 2012)
Delivery dates chosen by customers (option to track orders)
Add wish List and make available to share.
Catwalk feature
All functions help to build interactivity between brands and the connected consumer (Solis, 2012)
ZARA E-advertising strategy
Facebook
Twitter
APPS
Blog
YouTube
Already has apps available for blackberry, iphone, winows phone and android.

Apps could be personalised.
Sales/discount promotions
Competitions
#Zara
Online sales reminders




Affiliate marketing (youtubers sponsored videos endorsing products),
Loveocracy





Strengths
Website
Easy to find the site, top on Google search.
Options for Location.
Easy navigation and clearly organized.
Easy and secure payment methods.
Clothes displayed multiple views on real models
Look book option.
History
Zara is a spanish retailer founded by Amancio Ortega and Rosalía Mera in 1975.
The first store was called Zorba in downtown La Coruña, Galicia, Spain.



Click and collect available
Order in Store
Strong social media presence
Strong YouTube channel
Weaknesses
Social Media not available straight from website.
Sharing not easy.
No wish list.
No option for sharing shopping bag or wish list.

Increased availability of technology increasing consumers opportunity to shop.
Technological advances: apps, tablets iPhones etc.
Implementation of techniques: Bar coding,
Opportunities
Expand social media outlets.

Integrate online and offline outlets.

Link all online platforms together.


Threats
Competition.
Other companies over taking with regards to social media.
Overall brand image portrayed differently on different online platforms.
Off Page Optimisation...
Most users are educated to graduate school level.

Mainly woman.

Page Loading Time: 1.207 Seconds (66% of sites are slower).

Integrating Online and Offline
Adding iPads/tablets in store.

Screens on new and popular items with the opportunity to see Facebook likes or pins on Pinterest etc.
Facebook page could be used for information other than advertisements.
For Example - Company News, Entertainment, videos etc.
Introduction of Zara Blog from existing members of staff.

Opportunities for marketing through bloggers.
22% rise in net profit since the introduction of YouTube channel.
Online Swot Analysis
Recommendations
Zara mailing list is personalised
E-MAGAZINE
combined look-book and newsletter
Company Overview
Ryan, 2012
References
Micro-environment
In 2012, Inditex reported total sales of €15.9 Billion (£12.7 Billion); Zara represented 66% of total sales or €10.5 Billion (£8.3 Billion).

12% rise in full-year net profit, with pre-tax profits reaching £15.8 million.
Market Position
E-commerce/Business Models
Business to Consumer (B2C)
All transactions take place between a business organization and consumer directly (Chaffey, 2009).
Bricks and Clicks
Zara have both offline (bricks) and online (clicks) presences (Chaffey, 2009).
Launched their website in 2010 for France, Spain, Italy, Portugal and the UK (BBC 2012).

Zara felt their website added to their stores rather than cannibalising their physical presence.
Online Marketplace
(Huffington Post, 2012)
Full transcript