Zara: a Marketing Analysis Case Study Essay

5933 Words May 28th, 2013 24 Pages
INTRODUCTION

This assignment identifies an organization portraying superior performance and then analyses the marketing concepts, marketing environment and marketing mix, and identifies critical success factors.

THE ORGANISATION

Dubbed by The Economist (Fashion Forward -The Economist, 2012) as Spain’s most successful brand, my organization is ZARA.

Based in La Coruna, Spain, Zara is Inditex’s main brand, (Fashion Forward -The Economist, 2012).
Founded in 1975 by Amancio Ortega Zara now has stores in 73 countries.
With estimated annual revenue in excess of 7 billion Euro, Zara has over 1700 stores worldwide, (Wikipedia, 2013). Zara has been described by Louis Vuitton fashion director as “possibly the most innovative and
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By delivering more satisfaction than a competitor and ensuring customer focus and value, sales and profitability will then follow, (Kotler et al, 2013).

Zara’s strategy favours this concept the most - Zara starts the whole process by finding out what the customer wants. It utilizes trend spotters and managers and staff constantly watch and talk to customers (Kotler et al. 2013). Zara state that knowing what their customers want is an integral part of their success: “Zara’s approach to design is clearly linked to our customers”. “A non-stop flow of information from stores conveys shoppers’ desires and demands”. “Zara is in tune with its customers” (Inditex Website, Zara 2013). For Zara it all starts and end with what customers want.

ANALYSIS OF THE MARKETING ENVIRONMENT

To understand and analyze Zara’s marketing environment we need to look at both the micro-environment and macro-environment.

Macro-environment
Zara’s macro-environment can be analysed by looking at the 6 main factors that provide the opportunities and threats to the organization.

1. Demographic:
Zara’s strategy appeals and caters to an extensive range of tastes in the demographics. They cater for men (25%), women (60%) and children (15%), the majority of which want to be within the latest fashion trends (Evans, B. 2010 and Business Thoughts, 2011). They have focused on

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