Inditex and Zara
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ScribdTranslationsUNIVERSITY OF SANTIAGO DE COMPOSTELA
CAMPUS LUGO
FACULTY OF BUSINESS MANAGEMENT AND ADMINISTRATION
MASTER'S DEGREE IN BUSINESS MANAGEMENT
SUBJECT: STRATEGIC MARKETING
TEACHER: BELEN BANDE VILELA
AIDA BELEM REYES MIRELES
Lugo, October 11, 2011
INDITEX AND ZARA: THE PARADIGMATIC EXAMPLE OF CUSTOMER ORIENTATION
MARKET
PRACTICAL CASE
QUESTIONS:
1. What role has marketing played in the evolution of
INDITEX group in general and the ZARA chain in particular?
The role that marketing has played in the evolution of the INDITEX group has been
key since the beginnings of this group as they have moved from being only a
textile manufacturing workshop to study fashion trends, to study tastes
of consumers and in this way they have managed to become a consolidated group
with different commercial chains in which the practices and strategies of
Marketing is clearly manifested in every chain, especially in ZARA.
since the marketing mix is very strongly established in order to
position oneself in the global market.
Marketing Mix
INDITEX
Price: INDITEX's policy is to produce at low prices through a
good management of the supply chain and large productions
through a vertical integration. In this way, they can manage
affordable prices for the glocal target market (global-glocal).
Plaza: INDITEX produces 40,000 garments every day, of which 80% are
factory in Europe and the rest in other countries, so it can handle
very low production prices also thanks to their modern ones
recording facilities with advanced technologies and adapted to the
installed capacity and with a vision of future production.
Product: INDITEX can handle quality products.
since they have their exclusive suppliers and designers that are
constantly studying the fashion market, its trends and
conducting benchmarking to adopt the best practices of your
competition and thus be able to get ahead of it.
Promotion: the promotion of INDITEX in its different chains
commercials, it is similar, as they do not need to do advertising
specialized but simply by having the best designs
adapted to the client and their needs and to the new trends and
show them in their windows in a short time, with that they manage to be
well positioned in the global market. Just like the inaugurations of
its new stores in different cities and partnering with
Benetton as a commercial strategy to enter other markets.
People: among the main values of INDITEX is to gather
constant information about people, clients, consumers,
competence, etc. Gather information inside and outside of their different
commercial chains.
2. How is it possible to attempt to support the non-existence of marketing in this
organization?
I think it's somewhat complicated to uphold a 'nonexistence of marketing.'
in this organization, since marketing studies the market, its
tastes and preferences and this organization is dedicated to studying its
target market constantly and this is how it can give
quick responses to your customers. Everything is marketing, perception,
image, trends, satisfaction of needs, adaptation of cultures
glocals. There is no such thing as the non-existence of marketing since it is well studied.
every place this organization reaches and adapts strategically
to the market.
3. To what extent do marketing strategies and tactics differ from
group regarding that of the competition?
The marketing strategies and tactics that this group uses are of a
clear customer orientation, that of adapting production to demand
according to fashion trends and to make the meeting comfortable
customers with fashion. Another strategy is to have information
constant and communicate it through a computer system twice per
a week and to provide almost immediate responses to the consumer, which
generates greater value to the consumer than what it provides
competition.
4. What is the origin of that difference?
The origin of this difference lies in the fact that the group has a wide
knowledge of its value chain, controlling its entirety
productive chain and establishing a different strategy than that of its
great competitors. The group has developed a capacity to
constantly adjust its offering to consumer preferences in a
relatively short time. Time is the main factor to consider.
above their production costs and thanks to their integration
vertical, they can shorten those production times, reducing to
minimizing your inventory and reducing fashion risk to the maximum.
ZARA:
Price: ZARA manages affordable glocal prices for its target audience in
each city, country in which it is located, as due to its wide
textile production and with backward integration, this is possible for them and they
helps to position better in the global market.
The marketing department has a forward-looking vision and hires
qualified personnel to carry out the construction plans for each
ZARA store in every city or country they plan to.
to establish. It is about putting ZARA stores in strategic locations of
sale in each city and with an adequate store distribution for
that all their garments are seen in an easy and attractive way to
consumer and in this way gain an advantage over their competition.
Product: all ZARA garments are made in accordance with the
fashion trends studied worldwide and according to the
consumer needs adapting them to the culture of each country
where there is a ZARA store and with a short life cycle, as it always
They are making new garments ahead of the trends.
Promotion: the way ZARA makes itself known to its audience is
through a good location in each city and showcasing its fashion and
trends in the store windows of each shop, in a fresh way
in constant renewal, as it has a business model focused
to the market and providing almost immediate responses to it. It is also
the image that each ZARA employee projects is important, that's why
the people who work in each ZARA store are always dressed in
a fresh, modern, neat way because what they sell is IMAGE.
People: daily, the managers of each ZARA store are
gathering information from the market, from its clients to communicate
these concerns, suggestions or needs of the clients to the
organization of ZARA and in this way be able to provide answers almost
immediate to their clients and get ahead of the competition. People
(clients) are a key source of information for decision-making
fashion decisions of ZARA.