BRAND AUDIT FOR

Presented by Group 5:
Nitin Singal 127
Himanshu Gupta 132
Aditya Agarwal 133
Chirag Gupta 142
Gaurav Budhiraja 156
Shashank Sharma 176
 About ZARA

Zara is a Spanish brand of clothing founded by the visionary Amancio Ortega

Gaona and Rosalia Mera in Artexio,Galicia.
Zara was founded in the year 1975. It is one of the major selling brands of one
of the biggest fashion retailer "INDITEX".
Zara is now available in 86 countries with total of 1,763 stores worldwide
Inditex itself is a huge fashion retailer company which owns 8 brands namely
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius,Oysho, Zara Home and
last but not the least Uterque.
Amancio Ortega is the founder of Inditex,which was established in 1963.
Amancio Ortega adapted unique business model, which were innovative and
flexible. This made Inditex one of the biggest retailers in the world.
In 1975 Inditex established Zaras first store in downtown A Coruna, Spain.
Zara offers fashionable designs for men, women, and kids. They also sell
accessories to complete their product lines.
Major Events
1975 - Founded in Galicia, Spain by Amancio Ortega

1985 - Inditex became holding company

1988 - First Expansion outside of Spain, in Portugal

2003 - Zara Home was established

2008 - Zara overtake GAP in terms of worldwide sales

2011 - Opens Online Store; Accused of Slave Labour in Brazil and Does not
Meet Quality Control in China

2012 - Crisis Toxic Chemicals found in Clothing

Brand Report Card
Brand Report Card Priorities
 Corporate Strategic Alignment

Vision
Mission
Zara is committed to sati
sfying the desires of our Through
customers. As a result Zaras business
we pledge to model, we aim to
continuously innovate contribute to the
our business to improve sustainable
your experience. We development of
promise to provide new society and that of the
designs made from environment with
quality materials that which we interacts
are affordable
Brand Strategy

The company's strategy involves stocking very little and updating

collections often. Instead of other brands that only update once a season,
Zara restocks with new designs twice a week.

That strategy works two ways

First, it encourages customers to come back to the store often.
It also means that if the shopper wants to buy something, he or she
feels that they have to buy it in order to guarantee it won't sell out.
 Marketing Strategy
Product: Fast Moving Fashion

Zara prides itself on fast moving fashion

with new designs restocked in
limited quantity every two weeks.
This encourages consumers to
frequent the stores for new designs
and to snap up interesting outfits on
the spot in order to guarantee
themselves a piece. This provides a
sense of exclusivity to shoppers.
Process: Industry leader in lead time

Creative teams consisting of designers, sourcing specialist and product

development personnel, develop design collections.
The teams work simultaneously on different clothing, building and
improving on styles previously available.
Zaras designers are trained to limit the number of changes made by
lowering the number of samples required, minimizing cost and turnover
time.
Its demand based production or Just-in-time (JIT) production reduces the
amount of inventory available, lowering Zaras storage cost.
Furthermore, Zara eliminated the traditional design process, where design
and development overrides fabric procurement. In Zara, the design teams
work with the available fabric, allowing for faster fashion.
Price: Low cost, High Fashion

Zara believes in offering high fashion at a low cost. Prices range from Rs
1,000 to 20,000 for both Women's wear and Menswear while the Kids
segment has coats starting from Rs 500 and these prices can start from Rs
400 during a sale.

Taking quality and cost into account, Zara prides itself in providing high
fashion at an affordable cost, making its customers purchases value-
worthy.
Place: Prime retail locations

Zara, like its competitor brands, is located in prime retail areas like Select
City Walk, DLF Promenade where human traffic is high.
As aforementioned, Zara invests in prime locations as they place great
emphasis on the presentation of its storefronts.
Zara also has an online store, which increases accessibility to its customers,
allowing them to make purchases conveniently on the go. However, this
function is currently not available to Singaporean customers.
Promotion: Minimum advertising

Zara uses 0.3% of sales revenue on advertising, minimal when compared

to its competitors (3-4% of sales revenue).
Instead of relying on traditional mass-marketing mediums, Zara uses prime
retail locations to attract its customers. It also ensures that storefronts and
window displays are attractive and fresh to customers by making frequent
changes to the items on display.
The interior of the store is also clean and bright, with spacious lanes in
between racks. This provides a very comfortable shopping experience.
Having a good image projection of the store is vital as this is Zara's most
effective marketing communications tool.
Product Portfolio
Segmentation and Targeting
Zaras segmentation can be described by the principles of demographic
segmentation.

The target customer is usually aged 18-40, with high and mid range
income. As part of his/her occupation fashion trends is usually on top.

But not only from a demographic view Zara segments its target, their
products are also designed based on a psychographic view based on its
customers hectic lifestyle which means that they are usually busy people or
with some kind of intense activity which combines with Zaras tactic,
making the customer to buy by instinct.
Brand Positioning
Zara sells apparel, footwear and accessories for women, men and children.
Product lines were segmented into these three categories, with further
segmentation within the womens line as it was considered the strongest
out of the three, with an overwhelming majority of women in the target
market (78%).

Zaras consumers are young, value conscious and highly sensitive to the
latest fashion trends in the industry. An advantage that the brand has over
conventional retailers is that they do not define and segment their target
market by ages resulting in designs and styles that can reach a broader
market.

Zara offers cutting edge fashion at affordable prices by following the most
up-to-date fashion trends and identifying consumers demand, and quickly
getting the latest designs into stores.
 Brand Identity

Physique - Basis of the brand | High re-activeness and flexibility, market-

oriented
Relationship - Handshake between customer and company | Trusted
quality, fair exchange of value
Reflection - Customers perception of what brand means | Style,
individualism, assurance
Self-Image - What consumer thinks of herself | Confident, trendy, unique
Culture - Country-of-origin, values it stands for | European, international,
good relationship with customers
Personality - What is Zara when it becomes a person | Aggressive yet calm,
mature, confident, beautiful, well-kempt, modest, unpretentious, low
profile
Touch Points
Stores-
Does not focus much on advertisement only .3% of its revenue is spent on it.
ZARA stores are well designed which can bring customer positive emotions,
comfortable feelings, and buying impulseh
Proactive store staff-Collect data with the interaction with the clients.

Social Media-
Zara was ranked the 18th most-liked Facebook company with more than 15
million fans by Business Insider in Aug 2012.
To enhance its social media presence, Zara post as often as possible on
Facebook. The posts are focused on fashion, current trend and its new
products.
Website-
Website is uniquely designed with different sections like Brothers and
sisters etc apart from normal men women and children section.
They have also added an additional feature Look Book i.e has new styles
for men ,women and kids and is updated every month inspiring customers
with latest styles and trends.
Apps-
launched an App for Iphone, Ipad, Android and Windows phone.
The Apps users can find out about Zaras latest fashion items for women,
men and children, as well as contents from ZARA online: Lookbook,
People, Campaign and more. And more importantly: online shopping is
available on it
Differentiation
Market-oriented Strategy

Most of Zara's designs are based on the latest trends and they are ever
changing according to the immediate feedback from customers.
Zara employs its service staff in listening to customers' preferences and
reacts very quickly to them.
It is only a matter of weeks before the designs get altered, manufactured
and restocked in the stores.
If a design is largely unpopular, Zara will not hesitate to withdraw them
from the shelves.
Its global establishment also provides an extensive network of shopper-
feedback which allows them to be ahead of competitors in spotting global
fashion trends.
Creative Strategy
Zara creates the sense of exclusivity in its apparels through minimal
production for each style. This creates scarcity and hence desirability
especially in the fashion industry.
Furthermore, this lowers the risk of unclear stocks that may have to be sold
with a discount. As a result of the strategy used by Zara, there is not much
to be disposed of when the season ends, evident in the slight discount of
18% during sales period as opposed to the industry average of 36%.
This heightens the value of Zaras goods in the consumers eyes, creating
intangible value for Zaras items. Zara has also effectively conveyed to its
customers the scarcity in its stocks. Hence resulting in higher shoppers
desirability, so if a customer likes something, he/she has to buy the item
fast as it may not be available the following week. Zara has been
successful in creating a climate of scarcity and opportunity.
Perceptual Map
Brand Identity Prism
Scope of Improvement
More money can be invested in marketing as only 0.3% of
the revenue is invested in its advertising and marketing
purposes as compared to the industry standards of 3-4%.
Cooperate with vary range of designers so that Zara can
maintain its competitive advantage to be the fast fashion
but remain more and more creative.
Zara should spend extra money on luring customers into the
store rather than relying more on location of a retail
establishment.
Another market opportunity for Zara is to invest in Internet
retailing to make customers able to purchase all goods
including apparel from the comfort of their own homes at
any time they choose.
Zara could differentiate its product from location to location
to increase shopper traffic.
 Room for improvement in their IT processes to realize more effective
management of inventory levels.
Distribution centers should allow Zara to match demand and supply more
closely which can improve the efficiency within stores, production and
fulfillment, the speed and chance of delivery can also be improved.
Thank You