Marketing Excellence

Zara•One of world’s leading retailer•Over 8.6 billion dollars in Sales at over 1500 stores.

Founded by Amancio Ortega in 1975•Provides fast fashion at affordable prices•This has created a huge fan following for Zara.

ZARA’s huge fan following – People lined up outside its showroom

But, how did ZARA manage to create such a

great brand?

ZARA constantly creates new designs and tweaks the old onesConsistently delivers fresh styles catering to fast fashion enthusiasts

Logistics

•Distributes all its merchandise from Spain•All stores receive shipment twice a week

• Brings consumers to the stores again and again.• Consumers visit a Zara store 17

times a year on average• Allows Zara to keep the sales

strong throughout the year

Stores

• Zara’s stores are its biggest advertising elements.• Located located in prestigious high-traffic locations around the world

Consumers

Lie at the heart of Zara’s Strategy

Consistently react to changing consumer tastes, needs and trends

Moving forward, Zara wishes to achieve major success in emerging markets, some of which it has already entered.It also trying to establish itself in the online retailing market

Would Zara’s model work for other retailers? Why or Why not?• Zara’s model may work for other retailers.• However, it would be extremely difficult to

copy.• It follows techniques like JIT

manufacturing which take time to learn• Its central distribution system would be

difficult to emulate for companies to outsource production.

• This efficient supply chain allows them to cater to fast fashion enthusiasts.

• If other retailers wish to setup such a supply chain, it would cost them a significant one time investment. However, if they do, it would work well for them too.

How is Zara going to expand successfully all over the world with the same level of speed and

instant fashion?

• Online Retailing• This allows Zara to connect with consumers

across the world, while providing them access to all its latest collection

• With a large fan base on social networking sites, it could leverage those to promote its online store.

• Establishing Zara Stores in new markets• It could follow the trend that made it

successful in Europe, by establishing stores in prestigious areas.

• They need to ensure their distribution network is upto the task as “fresh” and “fast” fashion are Zara’s biggest strengths

SummaryZara’ Strength’s:• Fast Fashion• Brings consumer back

to the stores again and again.

• Efficient manufacturing and distribution.

• Understanding and changing according to consumer needs.

• Uses Stores as an advertising tool.

Looking ForwardContinue to maintain the “newness” and “freshness” of the brand.

Enter new markets and increase focus on online retailing

DisclaimerCreated by Ashutosh Sharma, IITD, during an internship by Prof. Sameer Mathur, IIM Lucknow