Zara Part One

Zara Part One - 1) A description of products currently sold...

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1) A description of products currently sold overseas 2) Identify the geographic markets being served 3) Summarize current marketing strategy (as we perceive it) a. Identification of the primary and secondary target markets b. Marketing mix (6P’s for retailers) 4) Identify sales and profitability in current market Zara Part One 1. Zara is one of the largest international fashion companies in the world who belongs to Inditex ((Industria de Diseño Textil), one of the world’s largest and innovative distribution groups. Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men, and children through Zara and five other chains around the world. Zara is an extremely fashionable and affordable label, appealing to many countries and cultures worldwide. Its greater competitive advantage is its low prices due to a very short lead time on distribution and manufacture which makes Zara’s lines enormously cheaper that its closer fashion-style competitors. “Products are shipped directly from the central distribution center to well-located, attractive stores twice a week, eliminating the need for warehouses and keeping inventories low. Vertical integration helped reduce the “bullwhip effect”—the tendency for fluctuations in final demand to get amplified as they were transmitted back up the supply chain. Even more importantly, Zara was able to originate a design and have finished goods in stores within four to five weeks in the case of entirely new designs, and two weeks for modifications (or restocking) of existing products.” (Harvard Case) Brand Article Price Difference Zara Men Plain T-shirt 9.90 $ Lacoste Men Plain T-shirt 35.00 $ (25.10) $ Polo Ralph Lauren Men Plain T-shirt 25.00 $ (15.10) $ Armani Men Plain T-shirt 150.00 $ (140.10) $ Guess Men Plain T-shirt
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This note was uploaded on 04/02/2012 for the course MKTG 4820 taught by Professor Susancarley during the Fall '09 term at Kennesaw.

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Zara Part One - 1) A description of products currently sold...

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