zara business model case study

zara business model case study

Zara Business Model (Case Analysis)

Done By: Faisal Alsawaihan

What Business is Zara In? (Business model)

Zara is one of the Inditex group, which they mainly in the apparel industry. It considers the most successful brand in this group and most of profit margin is coming from Zara stores that are widespread around the world (76countries) and their main products of apparel are for men, women, and kids. As we can see from the article (It for fast fashion) and Zara’s annual report in 2009, the business model of Zara is based on the link between three important processes, Ordering, fulfillment and, design and manufacturing. To explain more, Zara’s business model can be addressed in the following: 1- Linking customers to manufacturing process through very organized methodology that is depending on involving effective groups in this process such as commercials and store managers. This method allows to Zara to respond very quickly to the demand in the apparel market at the same time they cope with the new fashions and styles. Zara always tries to produce the styles that is still hot and having demand between target customers. The group is working hard to meet the information demands of customers even with communicating them via social network. These followers in some cases has exceed 2 million people which reflects clearly how is Zara becomes one of the most successful business model in apparel industry around the world. They send their fast-fashion distribution model to users via the internet. That does include the latest collections hitting the stores for every customer segment. Moreover they combined their experience to insure that all collections are satisfying most of their customers. We can see here the ability in Zara’s business model to be very strong by comparing with other Apparel brands in terms of disruptive innovation. Zara can be the leader in both, designing for different set of consumers and lowering the price at the end of product cycle to allow enough space of new products. Most of Zara’s shoppers know exactly that some of cloths may not be available in next visiting, so they to decide to by it immediately or may lose the design forever!!This concept of shopping has developed very successfully by Zara’s management in the last ten years. ( appendix1) 2- Linking the employees to decision making process (Store) by addressing the question, where the customer and fashion meet? Zara’s senior managers wanted to give the employees throughout the company to make their decisions of their stores. The store is where the customer needs to be and “where the group’s business model begins and ends”. The designer group is setting in the process to meet further goals of design and production. They try to be first in preferred locations, and then in unique appearance. The coordination of tailored product very important to them at the same time the excellent customer service. (appendix1. Zara business model) 3- Rapid response to market needs which can clearly be seen as the link between design and production. Zara design and produce the new products in three weeks and their shipment doesn’t take more than three days to the furthest location around the world. They have very organized system which helps them to recognize the needs of market and meet it quickly. They rely on their experiences and the stores managers rather than formal forecasting of the market. The delegation of authority could be important successful factor can be seen in Zara strategy. The store manager has to decide which garments should be on sale and which is not. Store manager has the authority to predict the store needs of specific garment based on his or her experience in local market. This relationship is very important between store’s personnel and production center. The link with the distribution center is very important to Zara, so they make their own flexible procedure to facilitate this process. Placing orders and receive them.

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Zara: IT for Fast Fashion

The value propositions offered by Zara to its main customers who are young, fashion conscious city-dwellers is offering new styles within the time-frame of several weeks as well as providing assortment of choices for customers and the uniqueness of clothing styles fitting individual customer needs. To achieve this Zara’s business model had the following: 1. Incorporating the horizontal structure for placing orders and deciding which items to push aggressively by delegating decision making responsibilities to store managers; 2. Low volume …show more content…

In our group’s opinion, Zara should build in-store networks. First of all, the store manager has difficulties in ordering without in-store networks. Aim of Zara is to provide its clothes quickly while the system which Zara currently has cannot reach this requirement. The store personnel could not look up their inventory through in-store computer; they need to talk to salespeople to determine the quantities, which is time-consuming. Secondly, for the fulfillment process, the level of the SKU is hard to determine without in-store networks. More importantly, if in-store networks would not be built, the infrastructure that Zara stores currently have cannot provide information among stores about the SKU. Store personnel have to use obsolete methods such as having telephone call or carrying disks to report the inventory or calculate the total sales. Last but not the least, the low cost wireless networks help and favor the building up of in-store networks. Zara, as a company, which has a promising future, should also update its network

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Q1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Ans. The four companies shown given in the case have very different business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This gave Inditex a competitive advantage, which is quick response to the market requirements…

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Case 2: Zara 1. What are the essential elements of Zara’s business model? The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence…

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Summary of Zara Zara specializes in inexpensive fashions for women and men between the ages of 16 and 35. In keeping with the spirit of that demographic, Zara moves quickly. Like many apparel retailers, it has two seasons—fall/winter and spring/summer—but selections change frequently within those periods. Items spend no more than two weeks on the shelf before making way for new merchandise, and stores are replenished twice a week. With annual growth of around 20 percent in both sales and number…

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Monitor and Control 16 Appendix A 17 Executive Summary Zara is a retail store of the Inditex group that started in 1975 and has now grown to 531 stores. Zara’s strategic business model focuses on product variety, speed to market, and store locations. The main business idea behind their model is to link customer demand to manufacturing and manufacturing to distribution which they have accomplished through vertical integration. Zara is currently facing the decision to either implement a new operating…

Autor: jararthur • December 2, 2013 • Case Study • 463 Words (2 Pages) • 478 Views

The European textile sector is one of the first victim of globalization and price discrimination. The most important textile markets are Europe (135 billion euros), U.S.A (100 billion) and China including Japan (35 billion euros).

In this hypercompetitive environment, brands such as ZARA understood the need to undertake major changes to remain competitive.

Textile industry Companies evolve in a chaotic environment.

In fact, fashion is, by definition, is in constant movement: it represents the tastes and trends. In addition to the uncertainty of time, there is many other variables that must be taken into account in the development of business strategy. So how to fight against this phenomena? To attract customers and win in a hypercompetitive industry they do not use the same strategies.

To protect itself from the fashion market, ZARA chose a vertical integration of the value chain. This strategy is possible thanks to an organization and logistics millimeter. All this enables ZARA to practice management of scarcity, that is to say that the renewal of collections is almost monthly.

Any company in the textile sector must respond to the uncertainty of a changing clientele as well as weather conditions. The main risk is that the production does not find its market. In addition, ZARA is facing a double competition:

• the basic products from countries with low production costs;

• that global companies product ranges above as others textile companies

In this context, the competition with cheap products is unthinkable. The only solution is to offer products of superior differing ranges as possible. ZARA merchant must become the fastest

Case Study of Zara: A Better Fashion Business Model

Zara is one of the most well known brands in the world and is also one of the largest international fashion companies. They are the third largest brand in the garment industry and are a unit of Inditex. It their flagship range of chain stores and are headquartered in Spain. Zara opened its first outlet in Spain in 1975. The headquarters of the company is based in Galicia. There are more than 2600 stores across 73 countries in the world. The Zara clothing line accounts for a huge bulk of its parent group’s revenues. There are other clothing brands owned by Inditex such as Kiddy´s Class (children’s fashion), Pull and Bear (youth casual clothes), Massimo Dutti (quality and conventional fashion), Bershka (avant-garde clothing), Stradivarius (trendy garments for young woman), Oysho (undergarment chain) and Zara Home (household textiles). Inditex owns all Zara outlets except for places where they are not allowed ownership of stores (that’s where Franchises step in).

Zara is renowned for coming up with products on a short timescale instead of taking forever. They are known for taking around 2 weeks to develop products and have been known to come up with around 10,000 new designs every year (which is an industry record). They have bucked the trend by making productions in Europe instead of shifting their entire production to Third World or Developing countries. However some of their clothes are manufactured in parts of Asia due to the fact that they have a longer shelf life. They make most of their own products inside Spain or other European Countries as they own a large number of factories in both Spain and Portugal. They also don’t have to depend on anyone else as they can get everything done by themselves.

Zara is unique in the way that it does not spend money on marketing and instead concentrates on opening new stores instead. Their brave experiments have led them to be labeled as one of the most innovative retailers in the world.

Zara started out with low priced products which were pale imitations of high end fashion products. This move led to Zara being a smashing success and allowed them to expand by opening more stores in Spain. The company management also managed to reduce the time it took to create new designs and came up with the term “instant fashions” which allowed them to capitalize on new trends really fast. Zara is known to use teams of designers instead of individuals.

Zara has to face a lot of competition from H&M, Gap and Benetton internationally. Fortunately Zara is considered to be more fashionable than the rest of the brands despite the fact that its price is less than Benetton and Gap. H&M is still cheaper than Zara but is equally fashionable as Zara. Gap and Benetton are less fashionable and more pricy.

Zara’s ‘Fast Fashion’ Business Model

Zara’s business model is basically based on the principle that it can sell “medium quality fashion clothing at affordable prices”. Basically vertical integration and the ability to come up with a quick-response is a key factor to Zara’s successful business model otherwise they would be no where without it. The process for Zara has been designed in such a way that it has the various functions within the business system such as designing, sourcing and manufacturing, distribution and retailing. They do all of these themselves and that is one reason why their growth is at a good rate. However what goes up must come down and Zara is not immune to the problems in the world. The way they operate can also prove to be their undoing due to the model they are currently utilizing. The fact that they have their own distribution center and manufacturing unit is a very weak point. This can be discussed further in this document.

The management at Zara have come up four fundamental success factors: short cycle time for creation of product, small quantity per product (and not too much of the same stock), extensive variety of product every season (so that users can choose easily) as well as a huge investment in information and communication technology to allow them to stay on track .

Zara knows what its customers want by tracking their preferences on a year round basis. They have their own team of designers who have been recruited fresh out of fashion school. It is not a tough job to tell them what they want based on the input they receive. They make around a limited quantity of clothes based on the 11000 various items designed by its in-house staff. Zara does not make any losses as they only order a limited quantity of each item which they believe is stylish and will be more restricted season wise. For example if they have miniskirts in design they will only be available for a short time due to the short summer period in Europe. Other clothes which can work the year around and for which the trend does not change are outsourced to Asia as the cost won’t be so high. The outsourcing operation is very handy mainly because these clothes have a longer shelf life. It does not take a long time for the clothes to be prepared as it merely takes around 4 weeks total for the whole process: from design to the finished product in the stores.

The fact that Zara knows what sort of trends are there in the market and are quick enough to change their strategy to match the trends in the fashion industry gives them a huge advantage. They are able to modify their timetable easily to adjust for a change in the trends in the market. Normally it takes around 8 to 12 months for any normal retailer to forecast trends and come up with a style and send it for production. They are unable to match what Zara does and they end up losing big time. Even if a style fails to sell much, Zara can easily sell the clothes on a discount. The fact that they quantity of clothes manufactured was so low that they lose much. Their low volume strategy has helped them have a very low number of discount sales every year as compared to a high rate for the rest of the industry.

However this leads to higher costs which is a disadvantage but then they don’t have to worry about having higher inventories. This method allows for a low inventory and high profit margins. They don’t save any money here with costs but then they get the maximum out of their clothing line. A problem they face is the fact that since Zara controls everything it is not easy for them to expand or relocate as they have to stay put in one place or the whole operation will suffer and the goods will cost more to distribute.

Zara’s business model is wonderful in the sense that it has a very fashion forward line as they know which trends to cash in on. They seem to have the midas touch of turning everything into gold. Their policy is to have a mostly young and fashion conscious staff so that they will also be able to double as trend setters. If for instance a certain item in a store sells well then the management decides to sell the same item in other locations as well. The key is that most of the items are in short supply and people presume that there is a shortage of items which ends up making consumers want to buy more.

A key factor in Zara’s success is the fact that it has sourced its products from the right places. They have based their procurement offices in a couple of fashionable cities in the world. This allows them to witness the trends first hand and then to quickly come up with a solution of their own. They don’t buy all the raw products on their own as they use one of their parent group’s procurement units to do all it’s purchasing. One clever move on their part is that they buy most of their fabric in grey so that there is greater flexibility. It doesn’t take long for the fabric to be prepared.

The main distribution artery is in Spain where they have their biggest distribution center. They also have some smaller distribution centers in countries such as Argentina, Brazil and Mexico. The problem with the distribution center is that it is purely based in Spain and does not have the capacity for a heavy load. It is a huge distribution center and occupies around 500,000 square feet in total. They only have the capability of processing around 60,000 folded garments in an hour. They need to find a new distribution center or increase their operations so that they can save more time. However the biggest advantage for them is the fact that they have vertical integration which allows them to manufacture and distribute their own stuff without having to be at the mercy of any supplier. It is not tough to move any of their products as they have their own railway network which allows them to move goods easily to its distribution center. Once the goods are ready they are shipped out immediately though the shipping schedule is only twice a week. European stores get their goods early (around 24-36 hours) while other destinations get them within 2 days. This system has allowed them to achieve a very high level of accuracy in its shipments. The other good thing is that the outlets don’t take long to display the new outfits once they reach their destination and this allows them to show new stock to their customers. The clothes are also coded according to their color so that the staff knows where to place them. This makes it easier for the customers to go around color matching the items they want to buy.

Problems with Zara’s Business Model

Zara is facing a large number of issues which can cause them a number of problems in the future. Despite the fact that Zara has a consistent business system which gives them a competitive advantage it is always in the danger of tanking badly. Zara’s biggest advantage is the fact that its economies of scale are really good and that they have been able to ramp up their distribution system. The continued growth is good for them in every way. They have been helped a lot by their expansion in the international market. However their growth in the international market will be curtailed due to the reason that Zara has a very centralized logistics model. It is understandable that Zara has to expand its distribution centers and to increase its capacity. Zara has its main distribution center in Spain and it won’t be easy going trying to expand when their base is only in Spain.

This will affect their plans to go international and to target more regions. They can’t simply survive with a European presence alone. It is true that they do have a presence in other countries but then it is not as much as it should be. They have a huge presence in Spain but quite limited when it comes to other countries. They can easily target the North American region where they don’t have much of a presence compared to the huge size of the region. The problem is that there are a lot of outlets there and a lot of competition coupled with the need for plus sized clothing, high cost of operations and a very mature market. Zara needs to come up with a strategy so they can compete very aggressively over there. They can also target South America but the problem is that it is not a very stable region and any geopolitical problems can lead to profits being low. A good market would be the ever reliable Middle East where Zara already has a small presence. However with talks of revolution in the air and other geo political problems it can be a risky bet. There are a few countries in the region which will lead it to be profitable but then the market is small compared to other regions. They can easily opt for countries such as the South East Asian markets and South Asia which have a lot of potential.

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Zara Marketing Case Study Analysis:

Design & Development of Integrated Communication Plan for Zara

Zara Marketing Case Study Analysis Overview:

Zara, the world’s biggest retail chain store of Inditex Group was founded by Amancio Ortega in Spain in the year 1975. The most profitable brand of Inditex is headquartered in La Coruna in Spain. The group has global presence in all the continents Asia, Europe, Australia, America and Africa.

The business model of Zara is completely based upon the short deadlines, lesser quantities and an impressive rage of options for style and clothes. Zara’s success depends upon two critical factors i.e.

  • Following the trend to be able to sell the garments at particular moment when people demand that kind of style and that too without any advertising.
  • Trusting the employees for designing the clothes and giving them the power to delegate (Berhmani, 2009).

The presence of Zara in 74 countries with a network of more than 1900 stores which are ideally located in all the major cities speaks about the strong brand presence of Zara across the globe. The 5 keys which make the Zara’s Business Model a success are:

It acts as a meeting platform for the Zara fashion brand and the customer. New products are introduced twice a week. It has been found that at the topmost stores of Zara 17visits per year by every customer is done to checkout latest Zara brand clothing’s (Hashemi et al., 2011).

The Zara teams have an extensive sales knowledge which is totally focussed towards the customer. The friendly sales team of brand Zara creates a pleasant and customer friendly environment at Zara.

The business Model of Zara brand is totally customer centric therefore customers play leading role in each and every aspect of Zara be it Production, Teams, Logistics or Store designs.

The production and designing team of brand Zara is inspired by the stores which are directly connected to the customers. That is why Zara has the speciality of immediately reacting to the latest trends in fashion industry with the help of well managed and efficient team of 186 suppliers and 200 designers.

All the clothing’s are designed with keeping in mind the maximum flexibility and it is mostly customer oriented. It hardly takes bare minimum time of 24hrs from receiving order to delivering the product to the store.

Branding is unique technique or method of clearly highlighting the features of the product which makes the product or service different and, much more attractive than the competitors. It also reflects the customer’s experience of the business and has impact on every interaction business has with its customers and suppliers. Successful branding means promoting all the strengths the business has. Zara has strengths like:

  • Faster delivery of newer products
  • Effective Value chain Management
  • Latest Design and Trends (Morel et al., 2011)

Figure 1: Brand Wheel of Zara

The target audience of Zara through this event would be fashionable consumer which is more educated, demanding and fashion savvy. This ‘New breed of shoppers’ is found to be loyal and loves freshness and variety. The fashionable consumers of Zara buy because of interest which gives them pleasure and enjoyment and is a meaning of self expression. That is why their purchasing experiences are fantasy, fun, social or emotional gratifications which result in impulsive buying behaviour.

Involvement is another aspect of consumers as they attach some meaning to the clothes they buy because there is major role of fashion which is being played by fashion in their society. The main drivers which make them buy Zara clothing’s are projection of desired self-image and their individual motives as well. Personal, aesthetic and economic values guide their consumer behaviour.

The emotional factors which influence the consumer behaviour are:

  • Short span of decision time.
  • Feeling of getting constrained
  • More impulsive buying
  • Desire to reward themselves.

The retail environment could be best used for influencing their moods which results in impulsive buying. Impulsive buying behaviour of the target audience is of following types:

Strongly involved with the latest fashion trends which helps in providing experiential or sensory cues through their fashion products.

Impulsive buying also results due to symbolic interactions of the fashion products and due to emotional experiences of the consumers.

Thus it is very necessary to understand the impulsive buying behaviour of the target audience reading the experiential perspective which helps in developing the guidance strategies.

Figure 2: Consumer Behaviour of target audience

Now we need to find the right band which goes with Zara’s image. Moreover the chosen band or musician should go along with the brand image Zara carries, according to the target audience and should go along with the Breast cancer Cause too. Few shortlisted Bands and Musicians are listed below along with their key attributes:

The main market segments which will be attending the Zara’s brand event organised for raising money for breast Cancer Research would be women and young well educated girls starting from the age group of 22 years onwards. This will also include housewives and plus size women. Even Zara would like all such consumers who are well aware of the cause of Breast Cancer to join the event and contribute towards the social cause. Mostly women and young girls would be attracted towards such kind of event because breast cancer is mostly found in women.

Source: (Waltz, 2010)

After analysing all the most famous rock bands and musicians Kylie Minogue seems to be the best artist for performing for the Breast Cancer Festival and the reason being she herself has fought breast cancer at very early age and she enjoys international pop stardom although she belongs to Australia, which goes along with Zara’s brand image too as it is Spanish company ruling the whole fashion industry worldwide. The best part is that Kylie being a woman can easily catch the fancy of the target audience who are also women for this Zara Event.

Other important details of the vent which would be organised can be easily followed from the table depicted below along with the reasoning why they should be made part of this festival:

Sponsorship works as a key for a strong and powerful marketing plan. Sponsorship is the in-kind support or any kind of financial assistance given to specific activity to reach specific business goals (Freidman, 2012). Here in case of organising Zara Festival the supported activity is Breast Cancer research and the business goal of Zara is to reach out to its target audience through this festival. Through this festival they want to raise money to support the cause of breast cancer.

3.1 Potential ESB/ National Brand Sponsors

The airline is both domestic as well as international airline and Zara being an upmarket brand most of its audience travel by air. So Qantas can launch a scheme that they will give rebate on airline tickets to the audience who buy Zara outfits this way they will have mutual sales benefit. Mor4eover Qantas can donate say $5 per airline ticket bought by Zara customers to breast cancer research foundation. Qantas can contribute money for the event and can also sponsor the flight for Kylie too.

Since this is a musical event so sponsorship or partnership with MTV would be of great benefit for Zara as well the popularity of the music channel will also grow. They can do live telecast of the music eve and thus gaining TRP’s and get ahead of their competitors and this will prove to be good advertising for Zara as well.

Manufactured by the PepsiCo would be also a good national brand sponsor because this way they can get good amount of sales during the vent and promote healthy drink which will keep the fitness freak audience healthy and smart. PepsiCo can contribute by sponsoring the event. This way they will also get brand recognition and whatever sales they make, they can donate some portion to Breast Cancer cause too.

Getting a national brand sponsor like McDonalds to sponsor the vent which sit eh topmost fast food chain Zara would be able to satisfy the appetite of the audience as well as can get good amount of money for the event sponsorship.

The Melbourne based potential sponsors which have been selected and which match the cause, brand and event are listed below.

CABRINI HOSPITAL, Malvern

Cabrini Hospital located in Malvern, Australia can be potential local brand sponsor for the Zara Fashion Festival. The well known breast surgeon which they have is Dr. Jennifer Senior; she performed the breast cancer surgery for Kylie Minogue too. The sponsorship will be mutually beneficial for both the parties because the audience for them are same. This will help Zara in increasing their sales and attracting more women audience who will contribute to this noble cause and at the same time both Cabrini Hospital as well as Zara will create positive publicity along with enhancing their visibility too.

Hair Dresser Brad Mullins and Makeup Artist Sarah Tammer

Cutting edge hairdresser Brad Mullins will guide women regarding hair styling suiting their personality and give their hair complete makeover. AT the same time makeup artist Sarah tamer will also work upon giving a new dimension to the personality of the women using her bets makeup strokes. They will use latest styles and trends to give awe inspiring looks to the women and young audience’s This will be mutually beneficial as it will enhance the brand image of both Zara as well as the makeup artist and hair dresser. Moreover the sales will also enhance form the profitability point of view (Victoria’s Premier Hair and Beauty Trade Event 2011, 2011).

Ripple Melbourne Massage Day Spa and Beauty

Women are always attracted towards getting beautiful skin and always wanted to look beautiful so on the makeover day Ripple Melbourne’s beauty specialists will help in making women look beautiful and guide them about what can be done to stay and look smart and beautiful. This way both the beauty and Spa will be benefitted as well as the Zara Fashions will get enough brand visibility.

National Breast Cancer Foundation

They will educate the target audience about breast cancer, cause and how to fight them. And mutually Zara will also get benefitted as they will get brand differentiation by aligning with the cause of breast cancer. Whatever donation Zara will receive or it can also work upon giving away $1. Per Zara outfit sale to National Breast Cancer Foundation.

The sponsorships would be sold by first arranging a meeting with their publicity manager. Then we will explain them how whether local brand sponsor or national brand sponsor will be benefitted by associating with Zara’s breast Cancer supporting Festival Campaign. The key benefits which the sponsors will derive by sponsoring this breast cancer suppor6ting event would be:

  • Shaping the attitude of consumers and enhancing the brand image as well as association with such good cause will develop a positive brand image in the minds of consumer and they will tend to buy such good products.
  • Driving their sales efforts, especially in case of food and beverage sector sponsors will derive greater benefits through bigger sales and sampling, thus PepsiCo and McDonald will get greater benefits if they sponsor this event.
  • Helps in Creating Positive publicity and heightening the visibility of the company as well as the brand. The media will definitely cover this event thus through print as well as electronic media they will get wider exposure.
  • Enhance their product differentiation from competitors as the target audience will definitely carry positive image about the product which has a positive image being associated with a social cause like breast cancer.
  • Help in portraying the image of ‘Corporate Citizen’ role in good capacity. The sponsoring company will be viewed as good neighbour by target audience as the company will be seen as supporting community as well as economic development of society.
  • Sponsoring such event will definitely help in enhancing not just business but will also help in developing VIP relations and consumer relationships.

Thus using the direct marketing efforts of the events like sending mailers and newsletter regarding the events which will carry or talk about the sponsorship partners of Zara Event will deftly give strong brand image and differentiation to the sponsoring companies.

Zara follows a very unique advertising and promotional approach and spends much lesser than their competitors on advertising. Large scale advertising is being taken care of by Zara so we need to support this large scale advertising of event through Point-of-Purchase advertising, sales promotion techniques, support media and social networking opportunities

It is the best and the most effective way of advertising and promotional graphics are being developed which help in influencing the consumer behaviour when the consumer is making purchasing decision (Halkyard, 2003). POP helps in creating impact on the buying decision by turning it into the favour of specific brand or product in-store. Moreover the POP application fits well as signage to so many applications like shelf, floor, walls, and window and vehicle decals too. Like signage or boards for Zara festival events with all relevant information should be places in various areas of the Zara store as well as should be advertised at various public places like grocery stores, fast food outlets and traffic signals banners can be out. Even hospitals can also be targeted.

Sales Promotion techniques

The techniques adopted by manufacturer to buy more and enhance the sales of products are called sales promotion. It mainly uses short-term a nonrecurring techniques to increase sales. The sales promotion for this event can be done by advertising the free samples scheme like if the audience buys a ticket for Zara festival scheme they ill get 25% discount on any Zara label they would buy. Premium or Bonus offers can also be given to the target audience like if they buy tickets for the Zara festival they will get a premium t-shirt signed by Kylie Minogue or they can get limited editing Kylie music CD.

Social networking opportunities

A contest on Facebook page of Zara can be started to advertise the event where in the contest winner will get free passes for the Zara festival event. A contest can be designed in way like the consumer needs o answer few questions related to breast cancer and if all of them are correct they will win free tickets for the event. Another contest can be the audience need to upload their image of black and white combination dress and the best dress designed will get a limited edition music CD signed by Kylie Minogue.

Finally we need to launch the public relation efforts in order to promote the event and support the cause of breast cancer amongst the target audience. For this we will design a proactive strategy to promote Zara as well as the Breast cancer research as well as reactive strategy will be developed which will be handling after analysis of potential problems which might arise during the course of the festival (Smith, 2011).

The main aim of proactive strategy for Public relations for Zara Festival supporting breast Cancer research cause is to communicate the reason for organising the event and to develop a communication plan which consists of how and when the plan will be communicated. Digital PR is the strongest PR medium which can be used for launching the event and informing and educating about the event (Reddi, n.d.). The Digital PR thrives on who we want to inform since it is mostly women and young ladies or rather the whole section of women so it would be better to place the advertisement about the event or create a twitter or Face book page which speaks all about the cause with which this event is associated.

We can also create a video in which the CEO of the company and an advertisement linking the vent can be uploaded on YouTube. Another proactive strategy which could be beneficial is placing a full page ad in the women’s magazines say two to three months before the events can also be helpful in increasing the awareness about the cause as well as informing the target audience about the event.

Same way a poster competition can be organised online through Facebook regarding breast cancer or designing just simple black and white clothing line and the best design will get a gift hamper from Zara and along with this contest the whole event information can be displayed inviting all the potential customers.

The reactive approach towards public relations planning is to respond in passive manner to any event once the event has occurred. Many environmentalists might stand against this event as such a large event will definitely create large amounts of carbon footprints. So we need to prepare a strategy beforehand to handle such situation (Falkow, 2012). Firstly we need to educate through a press release that we would be using eco friendly paper all through the event, secondly the music would not be loud enough to create noise pollution and required permission from the authorities would be taken beforehand. Demonstrate all the efforts taken to reduce the carbon footprints by Zara as a company so that they are convinced that by organising this event no harm would be done to the environment.

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