Segmentation
‘Zara’ is using demographic segmentation. The company is targeting people on behalf of their age and income level. ‘Zara’ is targeting people between the age group of 18 years to 40 years. ‘Zara’ is producing the products after understanding the lifestyle and psychology of the people in between the above-stated age group. The lifestyle of the customers is also a major factor because it is associated with purchasing habits of the people ( Sitaro , 2020). ‘Zara’ is producing products for both males and females along with products for children. ‘Zara’ is also producing Clothing And Accessories for working people and for those persons who are fond of outings (Amarkhil, 2018). Overall, it can be said that ‘Zara’ is producing the products for those people who are following various types of lifestyles. The company decides the prices after understanding the lifestyle and habits of the people so that it can achieve a massive level of sales (Amarkhil, 2018). The company is focusing on understanding the mindset and psychology of the people of a certain age group because they have to produce and manufacture the product only with the help of understanding the mindset of the people. Zara is also using psychographic segmentation and it is targeting those people who follow the latest trend in fashion (Ha , 2021).
‘Zara’ can differentiate its product from its competitors by giving extra focus on the quality of the products. It is found that ‘Zara’ is producing only a limited quantity of one product and also focuses on making the product as unique as possible. In short, demographic and psychographic, both types of segmentation are used by the ‘Zara’ (Jones & Sherman , 2018). The company believes in producing the product of the latest fashion so that they can attract a massive number of target customers. The quality of the products of ‘Zara’ is excellent and no company can easily copy its products of ‘Zara’ (Jones & Sherman , 2018).
Targeting: ‘Zara’ is targeting only those persons who are young, price-conscious, and adopt the latest changes in the fashion trend. ‘Zara’ is targeting the people on behalf of its segmentation. ‘Zara’ is also framing its advertisements and the design of the products after understanding the psychology of the people of the target market (KAPUSTINA & AGABABAEV, 2018).
Positioning: ‘Zara’ is developing and launching extremely attractive advertisements which are also connected with the emotions of the person. ‘Zara’ is using the quality of the product in positioning the product in the mind of the customers. It is also taking the help of models so that it can beautifully represent the product in the eyes of customers (KAPUSTINA & AGABABAEV, 2018). ‘Zara’ is positioning the product by using attractive presentation in the stores as well as on the online websites. It is found that people purchase the product if it is presented in a well and attractive manner. ‘Zara’ is doing the same thing and presenting the product in front of customers in a very much attractive manner (KAPUSTINA & AGABABAEV, 2018).
Targeting
‘Zara’ is a Spanish retail company which is producing apparel and accessories for both males and females (ICSTD, 2022). It is producing the products of the latest fashion and also trying to produce fashionable products with unique designs (Prezi, 2022). Zara is focusing on producing only those products which can be easily differentiated from its competitors (ICSTD, 2022). Zara is also taking care of the perception, need, and choice of the customers and producing the products only after understanding the likings and psychology of the customers (Prezi, 2022).
Zara believes only in producing products with excellent designs with the latest fashion so that it can earn a good brand name in the apparel market (ICSTD, 2022). Making beautiful and unique designs in a very short number is the major strategy of the company so that they can always remain the highlight due to their uniqueness in the products (Prezi, 2022). It is found that the brand image of the company is very good in the market just because of its excellent quality and unique designs of the products (Prezi, 2022). ‘Zara’ never compromises with the quality of the products and also never compromises with its designs and unique features in the apparel (ICSTD, 2022).
The major differentiation strategy of ‘Zara’ is to increase the number of available styles in the apparel but simultaneously decrease the quantity of the same product in the inventory (ICSTD, 2022). It is found that for each design, Zara produces only a limited number of quantities of the product and by using this strategy, ‘Zara’ obtained a differentiated product line at a low cost (Prezi, 2022). In short, ‘Zara’ is trying to be unique in the field of apparel so that it can not only earn a significant amount of profit but also it can achieve an effective brand name in the market (Prezi, 2022). ‘Zara’ is indeed not only working to constantly improve the quality of the products but also it is working for making its products unique and differentiated from others so that they can always be at the top in the apparel market (Prezi, 2022).
The above-stated product and differentiated strategy of ‘Zara’ become successful and the company is well-known to the customers for its different and unique quality of the products (Zara, 2022). Offering a broad range of products is also a major factor that makes the company profitable (Zara, 2022). Apart from this, the packaging of the products is also equipped with the well-sealed and all the packaging of the products is safe and secure (Ha , 2021). In short, ‘Zara’ is doing well in the field of packaging and producing products in a unique range so that it can achieve success in the market. The products and designs of Zara are liked by the customers and the company is earning a significant amount of profit ( Sitaro , 2020).
Marketing Mix Decisions For Both the Country UK and China
Zara agrees that it is using different pricing strategies for different countries. The price is set according to the transportation and packaging charges which is differs from country to country. Prices of ‘Zara’ in the UK are higher than the prices of the products in Spain. However, the company is constantly trying to lower the cost of its products. It is found that the prices of the products of the company are higher in China rather than in the UK (Network , 2022). In short, Zara decided on the product after analyzing the market and after analyzing its cost. It is also using a cost-based pricing strategy so that it can earn at least a minimum amount of profit by selling its product in the UK and China (Network , 2022).
Zara is using a low pricing strategy so that it can attract a massive group of customers in the UK (Network , 2022). The company is constantly trying to reduce its cost so that it can become the most popular and famous company among the public in both countries. Indeed, the apparel market in the UK and the apparel market in China are full of competition (Wu, et al., 2022). In this case, using a suitable pricing strategy is essential because a wrong or ineffective pricing strategy can affect the sales of the company. In short, the company is using the low pricing strategy and the cost-based pricing strategy but also it is setting up all the prices after analyzing and understanding the market of the particular country (Network , 2022). The company is also working on using a behavioral pricing strategy in which it analyzes the present market condition and also analyses the pricing strategies used by the competitors and then set the prices according to the analysis (Tuokko, 2019).
The following graph helps understand the pricing strategy of Zara in the UK and China:
(Network , 2022).
Based on the above graph, it can be easily observed that Zara is using different pricing strategies for the different countries including with UK and China (Network , 2022). The market of UK and China is indeed different and the other external business factors also affect the pricing strategies of the company. In short, it can be said that the company is using a low pricing strategy and the cost-based pricing strategy for selling its products in the market of UK and China (Network , 2022).
Zara is selling its products by using retail stores at a global level. Zara is selling its products through 2259 stores in a total of 96 countries (Statista , 2022). It is using effective distribution channels in the form of retail stores so that it can supply the products in the Zara is also using an e-commerce platform so that it can enhance its sales (Statista , 2022). Managing the supply and demand of the products in 96 countries is not an easy task (Statista , 2022). The company is not only earning a huge profit by selling its product in the above-stated countries but also it is developing its brand name by offering excellent quality products in a wide range (Statista , 2022). Zara is trying its best to make all the products available at almost all the stores in every country (Yide , 2018).
Product
‘Zara’ is managing its retail stores with a lot of care (Yide , 2018). The products are displayed beautifully so that the products can easily attract the attention of the customers (Yide , 2018). It has been found that Zara is not only offering high-quality products but also can easily manage its supply concerning the demand of the products (Prezi, 2022). It is managing its inventory with the help of its staff members. Effective technology is also used by the company so that it can manage its inventory along with managing its supply chain strategies (Prezi, 2022).
Zara is using an e-commerce platform so that it can deliver the products to the home of the persons. Nowadays, most people want to do online shopping because it helps them in saving time and cost (Statista , 2022). ‘Zara’ is supplying the products to the customers in proper packaging format and also taking care of the satisfaction level of the customers (Yide , 2018). It is also offering the products by using its official website and it also offers a mobile application to the company so that customers can easily track the status of the products (Yide , 2018). Moreover, the company is a wide company that is serving in a total of 96 countries (Statista , 2022). The company is trying its best to add value to its products by offering all the products at the nearest stores to the customers (Yide , 2018).
‘Zara’ is using social media platforms at a massive level so that it can attract the maximum number of customers towards purchasing its products (Instagram , 2022). It is not only uploading pictures of its products but also it is publishing all the important information about its products to the customers with the help of social media channels like Facebook, Instagram, and YouTube. It is also using digital marking techniques and displays various videos to promote the products of the company (Facebook , 2022). Zara is famous for its excellent promotional strategies because customers are getting attracted to the promotional strategies adopted by ‘Zara’ (Blog , 2022). It is also found that the digital marketing strategies of ‘Zara’ is becoming popular in the countries which helps attract a massive group of customers ( Sitaro , 2020).
On Facebook, Zara has almost 28 million followers and it has approximately 39 million followers on Instagram which shows that Zara can fetch the customers by using social media marketing and promotional strategy (Blog , 2022). It is using the ‘Pull strategy’ and also taking advantage of its excellent brand image (Blog , 2022). Zara is very active on almost all its social media channels and also updates news about its unique products and the activities which are used by the company (Bui & Martinez , 2019).
Price
Zara is also offering sales for special occasions so that it can attract a large number of customers to the country (Blog , 2022). It is also offering discounts to its customers after a regular interval so that customers can feel good about the strategies of the company. In short, ‘Zara’ is using various strategies to enhance the profit of the company (Bui & Martinez , 2019). It is providing frequent bonuses, discounts, and pints to its loyal customers so that it can promote the selling and attract the customers (Bui & Martinez , 2019). Overall, it is very clear that Zara is promoting its products by using various promotional techniques in which adding the value of the products is also involved (Bui & Martinez , 2019). It is found that due to the good brand name of the company, Zara does not need to spend a lot on making advertisements (Bui & Martinez , 2019). However, the company also believes in adopting the latest digital methods of promotions rather than using traditional methods of marketing (Blog , 2022).
It is found that Zara is not spending a lot on its advertising strategies and it is only taking the help of social media channels for pulling a huge group of customers (Bui & Martinez , 2019). It is also developing effective advertisements so that they can enhance the brand value and brand image of the company (Blog , 2022). In short, the company is using effective promotional strategies which are proving successful (Bui & Martinez , 2019).
Zara uses market entry strategy as planning and distribution of different types of products into the new target market for gaining advantage over the competitors where the marketing entry strategy of the company is based on the concept of joint ventures. Zara enters into new market through collaboration with the local firms and organization in the market which will provide competitive advantage to the company. Zara knows that local organizations already have the consumer base in local market where Zara uses this as an advantage for developing the customer base in new market. The local companies are combined with the expertise in the market where they know the preferences of the customers. One of another method which has been used by the company is licensing method where company provides license for opening the store of company into the local market because local companies have the knowledge of culture of the country.
It is found that both the above stated methods proved successful in earning profit. The only disadvantage is that these methods are not able to beat its competitors.
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