Marketing Portfolio Zara
Assignment 1: Marketing Portfolio on Zara 3 March 2017 MKTG 716 006 Prof. Iain F Chalmers 300875649 Centennial College Abstract The company chosen is Zara. Zara is a clothing retailer originally from Spain. The main company owning it is Inditex Group. In Canada, Zara, over the years expanded to 26 outlets across the region. According to recent data, Zara has an annual sale of 4. 5 million items. (Hiiemaa, Kris) In the success stories of H&M, Zara, Ikea, and Walmart.
1. Key changes in the marketplace a)External Trends b) Implications 1. Technology:
Clearly, technology is changing every day, and so is the garment sector. Zara has to make sure that its website is updated regularly and away from bugs. Positive Updating the web interface would make sure that Zara is kept updated with the latest trends and happenings in the marketplace. Negative It would increase the pressure to keep the website in line with the latest improvements in technology
2. Economic: Outsourcing its Production Close proximity to suppliers Positive The quality of production would be better Negative There would be a chance of exploiting workers at lower wages Positive It will allow greater flexibility for smooth flow of operations.
Delivery time would be made as short as possible, leading to shorter lead times.
Better incorporation of latest fashion trends Negative Since limited batches would be produced, there would not be a possibility to achieve economies of scale 3. Cultural Need to relax its policies regarding dress code Positive This would give a sense of openness that Zara is open to hiring people from different segments of society. Negative Would affect its name as it would need to reflect the same ideology for stores in all regions.
Improve safety conditions Positive It will only further strengthen its reputation as a company serious about employee safety Negative Cost of improvements could, at times, take a toll on the company.
Some of the action plans are; 1)Product: As far as the product is concerned, Zara should target all segments of society, that is, both lower and upper strata. To do that, Zara can lower the quality of a section of the products to target all markets.
2)Price: Honestly, The current pricing strategy of cost leadership is definitely working wonders for Zara. However, an alternative would be providing a differentiated price depending on the area and locality to cover overhead costs.
3)Promotion: As far as promotion is concerned, it is of no secret that Zara does not rely on it for its success. Zara believes that products would be sold themselves. However, In this technology-driven age, products need advertising. My suggestion would be to advertise the target market more effectively.
4)Place: Zara is originally based in La Coruna which is its headquarters. They are the ones that decide on the prices and designs. Zara can focus on locating in areas...