The Profitability of Zara Brand - Essay Example

ZARA Brand ZARA is a Spanish retailer of clothing and accessories. The company is based in Arteixo Galicia and is the flagship chain store of the company that owns Pull and Bear, Massimo Dutti, Bershka, and Uterque. Unlike similar apparel retailers, the company controls most of the steps in designing, manufacturing, supply chain, and product distribution. Its stores sell clothes for men, women, and children. ZARA segments its market by sex. It produces products that target men, women, and children. For adult wear, ZARA subdivides its products into shoes, upper garments, cosmetics, and complements (Ferdows et al, 2004).

Its products have various prices depending on their specific design, size, and type of product. Generally, their prices are relatively low compared to similar retailers and customers can choose their desired payment methods. ZARA promotes its products mainly through television and prints media and sells its products through physical stores. Online orders are also acceptable and customers can choose to pick products in person or order for postal delivery (CNN News 2001). ZARA positions itself to target its customers by offering more products compared to similar products.

The company has also capitalized on innovativeness where it produces new products within an extraordinarily short time and places them in its stores (Tiplady 2006). In this way, they are able to shorten the lifespan of their products leading to greater success in meeting the preferences of customers Designs that do not sell for a week are withdrawn, orders canceled and a new design is developed – the production of Zara products is, therefore, customer-driven. . Zara positions itself in different ways to target its customers.

For instance, it provides a variety of items ensuring speed in its marketing. It also ensures its stores are located in places attractive to the customers. It has also established a website where customers can access the various products offered by Zara. Zara retail focuses on the 4Ps which include the product, price, place, and promotion according to Peng (2010). In the case of product Zara, management first has to think over the product being launched in relation to its value, positioning, ingredients, target customers, and packages.

The price of the product is determined based on the quality of the product (whether top or popular), and discounts given on many of the products. Zara products are mainly sold in retail stores, online, and by specific supermarkets. Zara products are normally marketed online through various marketing tools and using the company’s website. Furthermore, the products are always marketed using newspapers and magazines. Zara, established in 1975 is Spain’s most successful brand since it is the pioneering and most overwhelming retailer internationally.

When it was established, Zara operated with similar cheaply priced products of all-the-rage clothing fashions. When the store proved successful, the founders decided to expand it all over the country and later internationally. All Zara stores are owned by the company except in countries where foreign business ownership is forbidden as suggested by Grant (2005). Zara products include both men’s and women’s clothing, shoes, compliments as well as cosmetics, and children’s clothing.