Admiration Project (ZARA) 9.19.12 So what is Zara? Many people have probably never heard of the clothing/fashion brand named Zara. Even if you have heard of Zara‚ the chances of you seeing Zara on any poster or television advertisements is very slim. In fact the Spanish clothing retailer has a very unusual marketing strategy. Zara has a “zero advertising policy.” With almost no money going into advertisement‚ how is Zara able to compete with competitors? Unlike competitors‚ Zara only spends about
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Recommendations The best way for Zara to maintain their sustainable growth is to seek new opportunities in the apparel market. With changing consumer behaviors as a result of globalization‚ and U.S. department stores suffering‚ there are growth options available for specialty retailers like Zara. Zara has the opportunity to be one of the trendiest/low priced retailers that America has seen recently. Zara should most likely develop a second central distribution center in the Americas to decrease
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Zara’s financial performance? Since only Inditex historical financials are shown in the case‚ we took the financials of Inditex to describe Zara’s financial performance. It is reasonable to take Inditex financial data because Zara made up 76% of Inditex’s sales in 2001. Zara (Inditex) Financial Performance in 1996-2001 1996 1997 1998 1999 2000 2001 Liquidity Ratio (current ratio) 0.81 1.00 0.88 0.87 0.90 1.02 Leverage Ratio (debt/ equity) 1.98 1.84 1.97 1.98 1.80 0.75 Profitability
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BIT HuangFei (Tracy) Zara: a Spanish retailer goes to the top of world fashion Answer1: The international expansion of Zara started with the opening of a store in Portugal in 1988. Through establishment in Portugal Zara acquired international market experience and knowledge and realized that it would have to adjust its business model to suit the new international markets. International sales accounted for 69 percent of its total turnover in 2005‚ with Europe being its largest market by far
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hours. Zara produces up to 11‚000 items per year while its competitors produce only 2‚000 items approximately‚ this ability able Zara to replace undesirable goods with the preferred one in short notice. According to the short product life-cycle strategy‚ Zara create the sense of scarcity‚ which lead to the customer’s awareness about purchasing the goods right away after it is launched. The finding shows that Zara shopper visits the chain 17 times a year compared with 3-4 times a year for Zara competitors
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Zara Zara varies in price‚ promotion‚ and positioning from some of its main competitors‚ H&M and Gap. Zara uses very little of its budget on promotion and marketing and relies more on its store windows to advertise its name to the public. Zara also places stores in busy areas and predominantly in more affluent areas in order to attract the most customers who will have the financial resources to purchase clothes from them. Zara’s store windows are designed to capture and entice customers and
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2012 Zara Marketing Audit MBA-USQ 11: MKT5000 University of Applied Sciences Zurich (HWZ) Switzerland Supervised by: Prof. Richard Beswick Anja Anastasja Keller U1028905 23.08.2012 MBA-USQ 11: MKT5000 Written Assignment I: Zara Marketing Audit‚ Anja Anastasja Keller‚ U1028905 Executive Summary Zara is a publicly listed company and belongs to the Inditex Group‚ founded by Amancio Ortega in 1975 in Spain. Zara always continues to bring excitement to fashion and fulfils customer
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Mary Rose Batoon Fashion Retail Branding and Promotion Professor Dena Strong March 3‚ 2015 Zara 1. What are the Main Challenges in the business model adopted by Zara? Based on weaknesses and threats on Zara SWOT analysis‚ the main challenges they are facing today are the high dependence on European Markets‚ Intense completion in the retail market‚ Rising labor wages‚ especially in Europe‚ and the risk of foreign exchange fluctuations. Others also include the problems faced by management in the organization
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Introduced to Thailand for the first time in February of 2006‚ Zara today has three stores located in the three most luxurious malls of Bangkok. Zara’s much anticipated opening was very well received by the Thai community. This study investigates views from both Zara and its customers in order to identify important issues regarding consumer’s interaction with Zara and vice versa. An in-depth interview with Zara’s brand manager introduced three main issues concerning value perception from consumers
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ZARA RESOURCES Tangible resources Financial resources: Inditex‚ the parent company of Zara had a net profit in 2011 of 1.73 billion euros: a jump of 32% of its net profit of 2010. Physical resources: Moreover Zara has 507 stores around the world with a total selling area of 488‚400 m² and 1‚050 million of Inditex’s capital invested into them. It also owns a 130‚000 m² warehouse closed to its headquarters in Arteixo‚ Spain. Zara also purchased 20 factories that were highly automated
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