Zara Case Study For Marketing Management Class. Lakeland University/Marketing Management Essay

1139 words - 5 pages

To: G. Bernard Yevin, CMO
From: Joey McNaught
Subject: Case 3: Marketing Excellence: ZARA (Pages 552 - 553)
Date: April 7, 2019
Background
Located in Spain, Zara has been Europe’s leading apparel retailer for a number of years. Their ability to provide consumers with current, high fashion styles at reasonable prices. Zara’s overarching strategy is currently achieving growth through diversification with vertical integrations. This strategy has adapted to couture designs, manufactures, distributes, and retails plentiful amounts of clothes within approximately two weeks after the original design makes its first appearance on the catwalks.
Zara makes approximately 85 percent on the full price clothes they sell, which is above the industry average (60-70 percent). On top of this, unsold items account for just less than 10 percent of its stock, which the industry average is about 17-20 percent.
The problem that they are facing, is that they are having a tough time when they expand into new markets and countries because it provides a risk of losing the rapid progress they make and will have to work extra hard to keep providing new products for their customers. On top of this, they are trying to figure out the best way to make their presence online while still using their current business model.
Key Issues
1. What are the demographics and psychographics of the ideal Zara customer? Justify your analysis.
Like most companies, a demographic is very specific because it is easy to market to people of all ages and different mindsets but for Zara, they try their very best to market to a very specific demographic. The demographics for Zara a men or women between the ages of 18-40, with a mid-range income, and are interested in fashion trends. This specific age group is because that is the typical age group of working people that can provide for themselves. I believe that Zara markets to this specific demographic that is interested in fashion trends because they are always providing new fashion styles for consumer interests.
With demographics, there are always psychographics that go along with those specific segments. Psychographics are the mindsets of the consumers and specifically, Zara’s consumer psychographics are people that live a very hectic lifestyle, are small sized customers, and like plus sized shaped garments. I think that Zara chooses people who live a hectic lifestyle because of the way that the company constantly puts out new products at a rapid pace, meaning that the consumers keep up with the rapid trends, thus living a hectic lifestyle. I feel that they choose to target small-sized customers because with living a hectic lifestyle, their consumers are always on the go and active, which helps with having a slimmer figure and helps the consumer purchase by instinct. Lastly, I feel that they target people who enjoy plus sized garments because more often than not, people feel comfortable wearing larger sized clothes.
2. What are the strengths, weaknesses, opportunities and threats of/to the Zara business model? Justify your explanation with a SWOT Analysis.
Strengths:
1. Zara has more than 2000 stores all over the world.
2. One of the largest Spanish retailers in the world.
3. Zara holds a cost-friendly supply chain management, which helps with their operations, manufacturing, and also means they are vertically integrated.
4. Zara has taken their popular brand and applied it online, which has allowed them to gain advantages over their competitors.
5. The company’s products are made at a competitive price, which is huge for innovative and fashionable designs. This is something that many other companies are trying to recreate but have not seen the same success as Zara.
Weaknesses:
1. Zara has a very limited marketing and advertising department, which prevents them from gaining a comptetitive advantage over their competitors. This is not good because you must maintain a complete balance, in order to keep building upon your brand’s name and making sure it is reputable.
2. Because there is high competition, this means that they see a limited market share. Market share is huge because Zara is one of the most notable brands within clothing and the more they keep slacking within the marketing industry, the more the competition is going to keep taking business from them.
Opportunities
1. Zara can explore more global markets, allowing them to create more business and expand their segmentations.
2. Zara can expand upon their online marketing and ecommerce, which is huge because most of business is done online and if they can gain an advantage on there, then they will stay above their competition.
Threats
1. High-end fashion merchandisers can be a major threat because if they start being more innovative and figuring out how to become more cost efficient for consumers, then they could overthrow Zara and take their business.
2. Consumer switching happens every day and with that, Zara could potentially lose business but I think they should keep up with research and development in order to make sure they do not lost their customers to other companies.
3. Fake imitations can reduce the sale of Zara products because if third-party companies are producing fake versions of Zara’s products, then customers may feel that Zara is not that premier and the company will start seeing the decline of sales.
3. Who are Zara’s competition and why? Justify your analysis.
Zara’s top competition is H&M because they are a well-known brand globally and have seen greater success compared to Zara. The two brands’ number are arguably close but H&M generates approximately $29.5B more revenue than Zara. For Zara to become remotely close to this competition, I think they need to simply start attacking the online game and figure out how they can attract more customers through experiences and reach them on a personal level. If they do this, then they will start reaching the heights that H&M has and they will see the same success.
Zara has beaten the competition and is enjoying its leadership in latest fashions. The founder of Zara is the richest person of Spain. The well-taken strategic decisions have provided a strong and reliable foundation for the organization. Strategic decision-making and introducing change in strategy are extensive activities requiring many efforts, but for Zara, it is need of the hour. In order to maintain the growth rate and excellence of the company, Zara needs to bring new changes in its strategies. A variety of strategies and some changes in the objectives may renew the company growth cycle. Zara in itself is a result of strategic thought. However, it is highly recommended to not implement all the decisions taken in one go. It would be more suitable if Zara introduces some change, afterward wait for some time to analyze the response and then can decide further steps. Exhaustive evaluation of the circumstances should be done prior to implementation of any decision.

RELATED

Marketing Management And Strategy For Myer Comapny. Nick HSU

4034 words - 17 pages prestige image.The report has concluded with recommendations for improvements of the Myer marketing strategy. These include increasing advertising of its price promise, taking advantage of its competitor's closing, and concluding its food store operations. As well known Myer makes its stores seem accessible to a wider market segment, and they should increase the high classes consumer by provide or create its own private product with prestigious brand image. Increasing its customer relationship management, and its online strategies is also recommended.

3501 management with the marketing strategy - university of birmingham - assignment

538 words - 3 pages after speculation. Then there may be a disadvantage: the value of the asset may be underestimated and lost; the merged company is subject to sovereignty, and the profit is forced to split. At the same time, due to limited autonomy, employees of the merged company may face changes in wages and benefits, compulsory ruling, and financing channels are single, which will lead to the proliferation of merger risks. For example, Amazon bought Whole Foods

Management essay with case study - Undergraduate - Essay

1420 words - 6 pages Name: Sarim Malik Management Major Essay A woman claimed 60,900 $ from centerlink. She earned a total of 264,000 $, but she only declared 76,600$ to centerlink & was taking 68,000 $ for single parenting. Documents tendered to Wollongong Local Court said the 40-year-old told Centerlink her gross pay for that time period was $76,600 – an under-declaration of almost $190,000. In a statement made to court she said that she did this because she was

This Assignment is a case study for a professional financial management class - Missouri State/ FIN 581 - Assignment Case

768 words - 4 pages FIN 581 Williams Case April 3, 2019 Strengths: - Williams’ came to you for advice on how to achieve their financial goals - Michael has a stable job, and a long future earning period - Michelle is self-employed and generating business - Michael’s parents are doing well and help them financially - They Williams’ have adequate homeowners and automobile insurance coverages - Joan would like to assist in the educational and maintenance needs of

Sephora Case Study SWOT Analysis - GSU Marketing - Essay

446 words - 2 pages Free online platforms together, creating a user-friendly platform that directs consumer traffic to each customer’s respective needs. The implementation of Geofencing technology for mobile Twitter, Facebook, and mobile app promotions will increase impulsive purchases on local situations and will continuously keep customers engaged and loyal to the brand. If Sephora can measure the true ROI on each platform, they will be able to invest in successful lines and eliminate under-performing platforms and beauty lines. Having all these platforms will also create data that Sephora can analyze to better suit customized marketing.

Marketing Proposal about Social Media - MSc Marketing Management - Proposal

3279 words - 14 pages BOURNEMOUTH UNIVERSITY MSc Marketing Management December 2018 AN INVESTIGATION INTO THE IMPACT OF ELECTRONIC WORD OF MOUTH ON PURCHASE INTENTION OF GENERATION Y TOWARDS THE FASHION APPAREL INDUSTRY IN VIETNAM A proposal submitted by HA MINH LE Under the supervision of: Dr. Kaouther Kooli Table of Contents 1. Introduction 3 2. Outline Literature Review 5 2.1. Definition of key terms 5 2.2. The elaboration likelihood model 5 2.3. Related studies 5

Sales Force Management Case Study

1696 words - 7 pages order to sell, negotiate and assist with customer solutions. An organization can greatly improve the productivity of its sales team and ensure the best innovative and cost-effective decisions are made for the company and its customers.ReferencesDalrymple, D., Cron, W. L., DeCarlo, T (2006). Sales Management (9th ed.), [UniversityOf Phoenix Custom Edition e-text]. McGraw Hill, 2006, Burr Ridge IL. Retrieved September 21, 2007 from University of

BBA102 Report case study business of management - BBA Macquarie university - Case Study

1537 words - 7 pages ………………………..6 Conclusion………………………………………………………………7 Reference List……………………………………………………….….7 INTRODUCTION The success to creating a positive and dynamic environment begins firstly with understanding groups and managing teams. Sir Richard Branson: managing groups and team objectives explore the characteristics of group teams and behaviours, functions and roles of managers and approaches to management. Discussed within this case study involves the argument

Apple versus Samsung: The Battle for Supremacy Heats Up - Tiffin Global Marketing - Case Study

1045 words - 5 pages Week 1 Assignment: Case Study 1 Running head: Case Study 4 Week 1 Assignment: Case Study Alyssa Hall MKT628 Global Marketing Management September 2, 2018 The Great Debate Years ago, I worked at T-Mobile where the bane of my financial security surrounded selling cellphones. In 2012 T-Mobile began carrying the iPhone for the first time and sales were projected to triple in the upcoming quarter of the release. Then the great debate began

business proposal for marketing class - marketing 320 - assignment

2427 words - 10 pages couples and 30 dentists  Demographics: Couples (Pregnancy at 20, 30, 40) / Middle class and upper class families  Data Collection: Analyze responses from more open ended questions. Schedule (Time Line) BUSINESS PROPOSAL FOR LISTERINE - JUNE 2018 7 Personnel Involved Resource Involved • designers • professionals Product Design • survey designer • data analyst • project designer Strategy Management • marketing manager • advertising designer

Remitly case study. Design a Go to marketing strategy - Marketing - Go to Marketing Strtegy

1084 words - 5 pages see if there’s any space for improvement. Example 2: Working Professionals Working professionals constitute our major source of targeting and research. Just like how we can filter out our data more and come to know whether they are working white-collar jobs or blue-collar jobs. Where do they work, what is their income, etc. Apart from that we can study their behavior by asking the right questions same as the students. By further analyzing the

JetBlue Case Study Written Assignment - New York University / Sales and Marketing

1064 words - 5 pages JetBlue Case Study JetBlue does a phenomenal job of fully addressing all the needs, wants, and demands of its customers. The needs of JetBlue’s customers come down to three simple necessity of food, security, and physical ability to seat and get to their destination. The airline offers free foods and beverages to ensure its customers hungry and thirst are sustained. Then the idea of safety comes from JetBlue's stellar airline service and

case study on project management - msu - case study

789 words - 4 pages Marketing in BOP Markets 4 Strategies of marketing to low-income people Case Study Sai Prathyusha Gadaeraju Central Michigan University – MKT560 9/30/18 Introduction There are more than two-thirds of the population that earn less than USD 2000 per annum but have more than $5 trillion worth purchasing power (World Bank Report, 2008). This gives great chance for the companies to earn more profits. These propositions are both economically and

Walmart Case Study competitive advantage - Strategic Management - Case study paper

4201 words - 17 pages large truck fleet transportation system and in case of perishables such as groceries are concerned, products are managed by Walmart’s suppliers’ inventory management systems connected directly to the store. Walmart also uses a technique known as “cross docking” whereby finished goods are taken straight from the supplier’s site, sorted, and delivered directly to the store. This leads to a reduction in the handling and storage of finished goods

term project of marketing strategy - global business management 1 st semester - essay

405 words - 2 pages Pizza operates over 380 locations in Canada. The company’s business extends to the United States and Mexico.in 1984 Boston Pizza makes a big appearance on the world stage as the official pizza provider for Expo '86 in Vancouver, B.C. this expo helps the company to get a world exposure and set the phase for develop into the U.S. In 1998 they built US headquarters in Dallas, Texas and they changed the name from Boston Pizza to Boston's The Gourmet