As every stage of production is completely operated by Zara it secures the

As every stage of production is completely operated

This preview shows page 10 - 12 out of 32 pages.

As every stage of production is completely operated by Zara, it secures the brands secrets like its research methods, fabrics used etc. The teams work simultaneously on different types of clothing designs, building and refining previously available styles as well as new ones. Its demand based production or Just-in-time (JIT) production reduces the amount of inventory available, lowering Zar a’s storage cost, which makes Zara's outstanding lead-time unbeatable by any brand in the industry at the moment. 19 Furthermore, Zara eliminated the traditional design process, where design and development overrides fabric procurement causing the designers to work with the available fabric, allowing for faster fashion. 20 Promotion ( Advertising/Marketing Communications) In spite of being one of the worl d’s largest and most well -known fashion brands Zara doesn’t not believe in advertising its brand. Zara uses 0.3% of sales revenue on advertising, minimal when compared to its competitors (3-4% of sales revenue). 21 Zara does not believe in traditional mass-media marketing strategies that is why we never see television or radio advertisements. The brand markets by having stores in prime retail locations so a number of people are reminded about the store. The stores are made to look upmarket and elegant which makes the atmosphere welcoming and grand for the customers. Also the brand makes sure the customers have a power-full store experience by providing the best services thus enabling the 19 20 21
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11 store staff to understand the customers and their needs. This leads to word of mouth which means the pleased and satisfied customers themselves market about the products to their acquaintances by telling them about the excellent services, store atmosphere and product quality. Zara highly depends on word of mouth advertising. A promotional strategy Zara practices is sales and clearances. Most of the Zara stores worldwide have seasonal sales that encourage consumers to shop. The striking thing about Zara is that it has found differences that matter to the consumers and used that to differentiate itself from the rest of the competition. In other words, its key marketing strategy is based on exclusivity, experience, differentiation and affordability. 22 Although recently it has been observed that Zara has been actively working on its websites as well as social media. Zara’s official website ( ) is used for online shopping as well as to showcase to the customers the brand’s new collections through sections like ‘Lookbook’ and ‘Pictures’. Zara’s Facebook page currently has over 23 million likes and its twitter page has around 626 thousand followers. According to a study carried out by ‘Marketing Mag’, a marketing website, each Facebook fan is worth an average of $174 and Zara’s Facebook f ans are worth the highest ($405.54). This means that Zara has a good and trustworthy relationship with its customers through social media sites and they play a vital 22
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