REPORT “ZARA”, APPAREL RETAILER 1. POSITIONING Every firm has to decide what positions it wants to occupy once it has decided which market segments to enter. The place the product occupies relative to its competitors in customer’s minds is product position For example, how the brand will differentiate itself and gain competitive advantage over brands in the same target market. To give a company the greatest strategic advantage in target market, a marketers plan to distinguish the firm’s products from competing brands. When positioning the product in the minds of the consumers, the company first has to identify possible competitive advantages in order to build up the position. The company has take strong steps to deliver and communicate the position to the target consumers once the firm has decided upon a specific position, according to Kotler (1993). Kotler also states that the company's entire marketing program should support the chosen positioning strategy. When the company has decided upon the position, it has to create a detailed marketing mix. Kotler defines marketing mix as "the set of controllable marketing variables that the firm blend to produce the response it wants in the target market". The possibilities a firm can use to influence the demand for a product are known as the "four P’s": Product, price, place, promotion. By blending the right mix of these P’s a firm can get a unique position in the target market. · Product - "Goods and services. The combination the company gives to the target market". · Price - "The amount of money a customer have pay to obtain the product" · Place - "The firms activities to make the product available to the customer" · Promotion -"Activities that communicate the merits of the product and persuade target customers to buy it" “ZARA” The Inditex Group is made up of fashion retail chains, textile manufacturing, purchasing and fabric treating companies, logistics and construction companies. To speak of Inditex is to speak of “Zara”, which accounts for 80% of the revenue of a group, which also includes Pull & Bear, Massimo Dutti, Bershka and Stradivarius. Founded 26 years ago in La Coruna (Spain), “Zara” is present in 30 countries with network of 500 stores situated in privileged sites in large cities, with four “Zara” stores in UAE. “ZARA”’s KEY CUSTOMER GROUP The fact that “Zara” sells in so many countries proves that customer base is derived from many different cultures. “Zara”’s consumer is 16-30 year old, fashionable, listens to the same kind of music and likes the same kinds of films.
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