Market study about the introduction of ZARA into the turkish market

1. Zara in turkey
Ane Zabaleta Maeztu

2. Content
INDEX
1. The company, the USP, strengths and
weaknesses
2. The main competitors of ZARA
3. The target market of ZARA in Turkey
4. Segmentation and positioning strategy
5. Pricing and distribution strategy
6. Promotional strategy

3. THE COMPANY
• Zara is a Spanish clothing and accessories retailer
based in Arteixo, Galicia
• Founded in 1975 by Amancio Ortega and Rosalía
Mera.
• It is the flagship chain store of the Inditex group

4. UNIQUE SELLING PROPOSITION
• Create or imitate the latest trends within a short two-
week period
• The new styles are available on sales floors for no
longer than 4 weeks.
• Policy of zero advertising

5. STRENGTHS WEAKNESSES
• Fast Fashion at Zara • Higher research and
• Strong Distribution Channels development costs
• Vertically integrated retailer
• Each store wants customer • Centralized distribution
comments and opinions system
• Monitors fashion trends
versus guessing at trends • Online presence at Zara is
• Targets the young weak
fashionable consumers
• Low cost, high quality • Advertising
Supply Chain
• Inexpensive but fashionable

6. • Spanish multinational • Hennes and Mauritz, also known as
clothing company based in H&M, is a popular clothing brand
Barcelona. from Sweden
• Strengths: • Strengths:
1. Inform of latest 1. Fashionable trends at affordable
tendencies prices.
2. Provide with a complete 2. High brand value
collection • Weaknesses:
3. Trains the sales and 1. Wide range of customers this
management teams brand provides for.
• Weaknesses: 2. It takes 12 weeks to get an item
1. More expensive than from the design to its retail state,
ZARA while ZARA needs only 4 weeks

7. OPPORTUNITIES IN TURKEY
• Online market
• International expansion in emerging markets
• Designing one line of clothing and replicate it across
culture

8. THREATS IN TURKEY
• Competitors
• Manufacturing base in Spain may become expensive
• Natural disaster or power outage

9. TARGET MARKET
• Very broad target market, because they don’t define
their target by segmenting ages and lifestyles
• Based on women
• Young, educated people that like fashion

10. MARKET SEGMENTATION
• Demographics:
– Age
• TRF
• Zara Woman
• Zara Kids
– Gender
• Zara Woman
• Zara Man
• No geographic segmentation
– Everywhere the same clothes

11. STRATEGIES
• Cheap prices
• Fast fashion
– New designs every week
– Faster that their competitors
• Shops in the city centres
• NY: 5th Avenue
• Vienna: Mariahilferstraße
• London: Oxford St.

12. PRISING STRATEGY
COMMON
Low-price strategy (a cost leadership strategy, low cost what gives low
prices)
• Set price equal to cost plus a target margin
• External suppliers
• Producing 50% in Barcelona, 25% Europe, 13% Hong Kong, 12% Turkey
• 20 factories for internal manufacture
• The high turnover of products
• Just-in-time production (JIT)

13. PRISING STRATEGY
COMMON
• Commitment of its employees as well as meeting the consumer
demands relating to fashionable clothes
• Transportation costs low on the supply side
• Reducing of price to promotion and information support
• Low level of inventory
• End-season sales

14. ASPECTS OF THE PRICING STRATEGY IN TURKEY
• 12% of producing in Turkey (T-Shirts) prices are higher than in Spain
but lower than in other countries
• Set price equal to cost plus
• Local target margin
• 25 shops in all parts of the country
• Speed shipment and transportation
• Local consumer research

15. DISTRIBUTION STRATEGY
COMMON
• Distribution is the main point of
marketing strategy of company
• Shops in more than
70 countries of the world
• Logistic system (quick deliver 24-48 hours
in all countries of the world )
• The speedy shipments
• Competitive advantage
• Sales system

16. ASPECTS OF DISTRIBUTION STRATEGY IN TURKEY
• Shops in all parts of country
• 24 hours - delivering time
• Local sales program
• Local pricing strategy:
– comparison with competitors

17. PROMOTIONAL STRATEGY
• Keeping the speed of placing new products
• Informing people about new collections in shops & web sites
• Sales force advices
• Special sales for repeating
customers
• Gift cards

18. PROMOTIONAL STRATEGY
 Reinvesting of profits
– new shops in biggest cities well known shopping malls
– informing where we will open new shop
• No ads in mass media chanells except Internet
– improving website
– viral marketing on Facebook (10.447.589 fans)

19. WEBSITE
• The simple but interesting website allows shoppers to filter a search for
garments by
– type of garment
– colours
– sizes
– prices
– reference number

20. WEBSITE
• Customers can view products in
– precise detail
– from different angles
– use a SuperZoom feature
– The main reason: to get an exceptional close-up look at the details of
each item.
– Special Android and Ipad/Iphone application

23. THANK YOU
FOR YOUR ATTENTION!