Preamble to the Case

Ever changing face of Business

CHANGE – The only Constant in Business…

No competitive advantage can be taken for granted

for a prolonged basis.

What helps to stay ahead then?

Strategic Marketing decisions are a one – stop solution!!!

3rd largest pure – play fashion retailer. Global presence across 64 markets. Competitors are: H&M (Hennes & Mauritz), Dutch

chain C&A(Clemens & August), Spanish chain Mango, American chain GAP to name a few.

7 commercial formats include :

1. Skhuaban2. Pull & Bear3. Massimo dutti4. Bearshka5. Oysho6. Stradivarius7. ZARA– Contributing 67% (approx) of Inditex Total

Sales.

Company Profile – Parent Group Inditex

Inditex’s Recent Dramatical Growth

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2006 2005

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Turnover (in Millionof Euros)

Net Profit

No. of Stores

Snapshot of ZARA’s Performance – Contribution to the success of Inditex

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2005 2006

Turnover- In Millions of Euros)

No. of Stores

Provide public what it wants – following the 4P’s of

Marketing in the right manner.

Achieving sustainable advantage by –

Success Mantra for ZARA

Operational Effectiveness Strategic Target Positioning

• What is it?

• Performing the same tasks better than the

competitors - in a word YOU NEED TO RUN

FASTER THAN YOUR RIVALS…

• What is it that ZARA is doing differently?

1. Operational Effectiveness

• Applying vertically integrated demand & supply chain - others focus on Outsourcing.

• Dynamically varying offers in range of goods – Monthly Basis Collection Cycle instead of conventional Collection cycle – Spring/Summer/Winter.

• Accelerated value change process – 12 to 15 days delivery cycle instead of traditional 60/90 days cycle.

• Public opinion intensive Fashion Design - Zara's cadre of 200 designers sits right in the midst of the production process.

Zara v/s its competitors

Zara v/s its competitors

•FEEDBACK – information transmission to the designers from the customers.

•Usage of Latest Technology – to evaluate feedback and send across finalised decisions in house.

•Effective use of scarcity value – New collections every week.

•Strategic designs of stores and choice of location.

•No expenditure on Advertisements – Follow ‘Word of Mouth’ Marketing Principle.

Being different from the rivals – DARE TO THINK

OUT OF THE BOX!!!

ZARA’s Chemistry

ZARA INNOVATIVE THINKING= TECHNOLOGY + STRATEGIC

PLANNING

ZARA’s principle as per the concepts of Modern

Marketing Management Theory.

2. Strategic Positioning

Strategic Marketing principles – The ZARA way

ZARA’s Target Market

ZARA’s Competitive Advantage – With the use of Communication devices, Fashion has become

more globally standardized.

• Vertically Integrated Business Model – Total control

of every part of the Business:

– Design, Just-in-Time Production, Sales and Marketing.

• Time Cost considering above and beyond any other

cost

• Diversification – Product Line and Global positioning.

Conclusion - ZARA Mania

• Awarded Retailer of the Year and Icon of the Year – in

the Inaugural World Retail Award – Barcelona 2007.

• Many more accolades….

• And the SAGA continues!!!!

ZARA – The Queen of Fashion Retail

Welcome to the world of ZARA…

Questions / Comments?