Zara Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Zara analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Zara marketing mix, help the brand succeed in the market. Let us start the Zara Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Zara Product Strategy:
The product strategy and mix in Zara marketing strategy can be explained as follows:
Zara is one of the leading luxury fashion labels in the world. Zara’s offer products for men, women and children. It offers jeans, trousers, tops, skirts, knitwear, T-shirts, shoes, bags and accessories. All these are the product strategy in the marketing mix of Zara. It is a one stop solution for everyone whether you want to buy formals or causals. One can choose from different styles Zara has to offer. It launches at least 10,000 new designs in a year. Zara products are a hit with the high end fashionistas as well as with the masses. The taste of the target market influences the availability of products line.
Zara also teams up with local talent to provide best fashion trends. The brand focuses on contemporary designs & ensures it keeps refreshing its stock for its customers. Zara believes in sustainable development and is committed to reduce the production of waste. It recycles its hangers and security tags. Zara gives out their products in paper or biodegradable plastic bags. Zara uses ecological fabrics like organic cotton in the production of some of their items. These products have a unique and distinct label which can be identifies easily.
Image: Wikimedia
Zara Price/Pricing Strategy:
Below is the pricing strategy in Zara marketing strategy:
Zara’s products are high on fashion and low on prices. Zara provides latest fashion at much lower prices in all its international stores as compared to other competing international brands.
Zara follows low pricing strategy. It can afford to do that as it doesn’t spend enormous amount of money on advertisements and raw material. It has an overall low cost structure compared to its competitors. Zara’s prices are country specific. The brand positions itself as a high quality clothes manufacturer at a competitive price. The tagging on their products are done locally in each respective market. Zara sets market-based pricing strategy which sets the target price consumer is willing to pay. The budget for production according to the target price. This in turn fixes the profit margin they earn on every item. This gives an insight on the marketing mix pricing strategy of Zara. The brand uses various schemes as a way of sales promotion. Zara has low level of discounting around the year and discount sales of 50% or more twice in a year, for which the consumers eagerly wait.
Read more about Zara
Zara Place & Distribution Strategy:
Following is the distribution strategy in the Zara marketing mix:
Zara has enormous reach with stores in around 90 countries, with over 2200 outlets. Zara also sells through its online store. With the growth of ecommerce, the brand is also available on several multi-retail online shopping platforms. All these cover the marketing mix place & distribution strategy of the brand. It is a vertically integrated company. Zara’s supply chain is what provides them a competitive advantage. It uses its unique business model to bring new products and fashion to the market in shortest time possible. Store managers send orders to the headquarters twice a week based on the sales data of the store and the shoppers’ preferences. The commercial team compiles the order then sends it to the manufacturing hub. The commercial team also coordinates with the in-house designers to find out new trends and develop new products. New products are produced in relatively small batches which helps them give exclusivity. Most of the Zara stores are owned by the company and are not a franchise. This helps in keeping the shopping experience at Zara intact and constant be it London or Paris or New Delhi. The stores are located in posh locations and are spacious and modern in look with walled mirrors and excellent lightings.
Their stores are designed by Zara’s decoration team.
Zara Promotion & Advertising Strategy:
The promotional and advertising strategy in the Zara marketing strategy is as follows:
Zara barely spends any money on advertising. It is famous for being press shy. Even its owner never gives any press interviews. Unlike its competitors, It doesn’t engage in any flashy campaigns. This is the reason why Zara’s advertisements are not visible on television. However, its outdoor advertising is eye-catching and focuses on the fashion trends which the youth prefer. Zara’s unique selling proposition is its short processing time, a large variety of styles and affordable pricing. It relies on word of mouth promotion and social media rather than expensive marketing tools. Zara’s social media reach is quite exceptional. It has 30 million followers on Facebook and 45 million followers on Instagram. It is interesting to note that Zara doesn’t put its logo on their products. Zara prefers spending their percentage of revenue in opening new stores. The brand spends money on expensive real estate for its stores and on its décor. Zara believes that its show windows are suffice for advertisements and they do not need anything else to sell their products. This concludes the marketing mix of Zara.
About Zara:
Zara is one of the leading fashion clothing and accessories brand. It was founded in 1975 by Amancio Ortega and Rosalia Mera. Zara belongs to the Inditex group. It is known for its perfect combination of high end, chic clothing at affordable prices. It is this quality of the brand that makes it a go-to fashion brand for everyone. Its inaugural store was opened in a coastal town called A Coruna in Spain and slowly Zara expanded in other cities in Spain and then in Portugal. In 2010, Zara made an entry into the Indian market and opened its first store in Delhi. Today Zara is present in every corner of the globe. Zara is an eco-friendly company. It is one of the few brands known to produce 100% toxic free clothes. Zara is known for introducing latest fashion trends in the market.
Zara gives fast response to customer’s desires and changing preferences. It has introduced the concept of “fast fashion”.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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