Zara Marketing Company Project
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Transcript of Zara Marketing Company Project
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GROUP 8
ABHISHEK GUPTA
CHANDRA KISHORE BHARTI
MEGHNA GAHLOT
SHRADDHA KOTHARI
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Inditex is the world's largest fashion group, which has arounsubsidiary companies.
Formed in 1985
Owns brands such as Zara, Bershka, Pull & Bear
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Spanish clothing retailer, founded in 1975 by Amancio Orteg
Biggest brand of Inditex Group
1721 outlets in 70 countries
Known as Armani for common people
It does not advertise much (only 0.3% of the total revenue) Known for its fast fashion concept
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Zara develops a business model that incorporates moderatwith new clothing styles faster than its competitors.
It maintains design, production and distribution processes wrespond to the quick shifts in consumer demands.
They are flexible enough to produce 12000 new items annu
The company can design a new product and have finishedits stores in four to five weeks.
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They believe in shortening the product life cycle =greater sumeeting customer preferences
They have a design team of 200 people ,which produce 12styles a year.
They keep a close watch on new trends and buying behavthrough market research .
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Zara is an example of a company which exploited the valuget competitive advantage. The company aims to achievecustomer satisfaction by introducing variety of fashionable
One distinctive feature of the value chain system of Zara is i
other words, flexibility and quick response to the market dem
Zara excels by targeting technology investment at the poinvalue chain where it will have the most significant impact, mthat every penny spent on technology adds value.
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COMPETITIVE BRAND
H&M is a Swedish multinational retail clothing company, knofast fashion clothing
The design team in the companys Sweden office controls tproduction, from merchandise planning to establishing spec
The production is outsourced from approximately 800 factoEurope and Asia
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Zara, unlike its competitors DOES NOT use outsourcing
Zaras competitors face a lack of flexibility in changing orders bacurrent trends.
Inventory costs are higher for competitors because orders are plawhole season well in advance and then held in distribution facilitperiodic shipment to stores.
Thus, Zara has a competitive advantage especially in the area odevelopment
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ZARA CUSTOMERSATISFACTION ANALYS
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Desk Research
Online journals
Reports by Consulting Firms
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PARTICULARS ZARA H&M
Promotional Offers Less High
PriceTags Consumers were lessconcerned about the price of
the apparels
Consumers at Hobserved to be
about the priceapparels
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PARTICULARS ZARA H&M
Direct Marketing No Yes
Buzz Marketing Yes No
Promotions Yes Yes
Banner Ads No Yes
Celebrity Endorsements No Yes
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PARTICULARS ZARA H&M
Market Share 13% 14%
Unique SellingPoint
Imitate latest trends in 2 weeks andmake it available on the sales floorwithin 4 weeks
High end clothes prices, use of orga
Market cap $ 2.10 bn $ 2.31 bn
Number of Storesin UAE
12 19
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ZARA CUSTO
43%
57%
0%
10%
20%
30%
40%
50%
60%
GENDER
Male Female
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ZARA CUSTO
28%
32%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
AGE
16 - 24 Years 25 - 30 Years Above 30 Years
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LIKERT SCALE
Scoring from 1 to 5
1strongly disagree and 5strongly agree
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Sample size30
Method: MultiLevel Sampling
Reduces sampling errors
Proceduresurvey questionnaire across 3 different locations (DuDeira City Center, & Mirdiff City Center)
Electronic Form technology used for the survey
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Quality
Price Deals
Store Image
Brand Association
Loyalty
Ad Campaign
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GENDER
FEMALE, 18,
60%
MALE, 12, 40%
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AGE
16 - 24 YEARS,
8, 27%
25 - 30 YEARS,
10, 33%
ABOVE 30
YEARS, 12, 40%
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Step 1:
MULTIRESPONSE ANALYSIS
Step 2:
TWO STEP CLUSTER ANALYSIS
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MULTI RESPONSE ANALY(MACRO LEVEL ANALYS
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0.00%0.00%
41.70%
58.30%
0.00% QUALITY
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
6.70%
33.30%
43.30%
16.70%
0.00%
PRICE DEA
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0.00%
0.00%
28.30%
70.00%
1.70%
STORE IMAGE
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
0.00%0.00%
0.00%
55.00%
45.00%
BRAND ASSOC
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40.00%
60.00%
0.00% 0.00% 0.00%
AD - CAMPAIGN
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
0.00%
8.30%
60.00%
31.70%
0.00%
LOYALTY
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TWO STEP CLUSTER ANAL(MICRO LEVEL ANALYS
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TWO STEP CLUSTER ANA
16- 24 years 25
30 years Above
QUALITY AGREE NEUTRAL AGREE
PRICE DEALS AGREE DISAGREE DISAGR
STORE IMAGE AGREE AGREE AGREE
BRAND ASSOCIATION STRONGLY AGREE AGREE AGREE
LOYALTY NEUTRAL AGREE NEUTRAADCAMPAIGN DISAGREE STRONGLY DISAGREE DISAGR
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STRENGTHS
QUALITY
STORE IMAGE
BRAND ASSOCIATION
WEAKNESSES
Advertisement
Lack of Promotional Offers
Customers are not particularly loyal to the brand
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OPPORTUNITIES
Zara can increase the share of youngsters (1624 age group)
THREATS
Others brand can attract the customers who are not loyal
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From the analysis we have done, we suggest Zara two major things
1. Their is an opportunity to increase the customers between age 24 years as they are generally satisfied on all the parameters.
2. As the age group of 30 + constitutes major percentage of Zaracustomers, we should implement plans for their retention of this
To achieve this we have proposed the following suggestions:
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Price Deals
Special promotional offers must be given to the young professionexecutives like providing special discounts if they show their busin
Loyalty
Loyalty Club Cards must be introduced to give rewards for freque
shopping
Advertisement
Zara must increase their advertisement budget to attract more cand increase awareness.
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THANK YOU
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Q&A