1. 9
Presentation on
Brand Analysis of Submitted To
Ms. Bushra Nuzhat Ika
Faculty,
BRAC Institute of Governance and
Development (BIGD)
Submitted By
 MD. MEHEDI ZAHAN PULOK -19281067
Post Grade Diploma in Knitwear Industry
Course Code: KIM 203:
Course Title: Production Management and Merchandizing

2. Zara Mission
Zara mission is to “give customers what they want, and get it to them faster than anyone else.”
Zara Vision
Zara vision is “to contribute to the sustainable development of society and that of the
environment with which we interact.”

3. History Overview

5. PESTEL
Analysis
Economical Factors:
As Spain has a large unemployed rate it enjoy
the low cost worker as most of its good fraction
of its products in Spain. It low manufacturing
cost help it to keep the price low and thrive
even in poorer countries.
Technological Factors:
Quality of R&D & Innovation
Continuous Analysis of Customers demand
It always find better ways to reach and appeal
to consumers.
Political Factors:
One of the biggest pros of running a company in the
EU is the country’s extensive trade agreements.
Make it easy to export raw materials & import
finished products at low cost with in EU. Zara can
send its merchandise across the world with little
effort and for a low cost.
Sociocultural Factors:
Despite its affordability, Zara is a fashionable name
for most shoppers. Zara’s strong and clever
marketing strategy able to feel the buyer that they
had a great deal while Zara still enjoy large profit.
Zara is also offer you the 24/7 active webshop.
Legal Factors:
Zara loves capturing hot clothing trends and
making them more affordable, it’s bound to run into
some issues with copyright. In fact, the major
retailer already has. It’s been accused of stealing
designs and clothing concepts from the likes of
Adidas and Balenciaga.
Environmental Factors:
 Fast Fashion
 Supporting the sustainable
environmental policies.
 Decide to Co-Found & support Climate
change program
 Promote animal right, biodiversity &
ethical issue

6. External Analysis

9. Internal Analysis

12. Structure of ZARA’s SC Drivers
Facilities..
 Their main factory is located in a city called La coruna ,Spain. It is the city which has the
cheapest labor in the country.
 Other factories located in Europe, Asian, African countries and the rest of the world
 It offers flexibility and agility to push new design to the final selling point fast. They
reach their target market by locating their own over 2000 stores in prime town-center
locations.
 Zara tends to use franchisee and joint ventures in countries
Pricing..
 Price = Cost + Target Margin
 Offer unique clothing at affordable price
 Price are shown in different currencies in same tag
 Price of the same product can be changed according to the characteristics of the region
Sourcing..
 50% of the production is done in Spain rather than low cost Asian countries.
 More flexibility and control
 45% of raw material handling is manage by Comditel,100% Inditex owned company.
Fabric cutting is done by robots in 23 factories in Spain

13. Transportation..
 Based on software designed by the company’s own teams
 Time between receiving an order at the distribution center to the delivery of the goods in the
store is lower
 Use ships, trucks, Air cargo for transportation
 Logistics centers including the introduction of biodiesel for the firm’s trucking fleet.
 They did not handle the raw material transportation, it is handled by the parent company.
Information..
 Close relationship with customers
 Real time data update regularly to the data base
 PDA are provided to store managers
 Designers always keep in touch with the real time information
Inventory..
 Stores place orders twice per week and the supply of finished goods is matched to
store demand.
 Production is then increased or decreased in the flexible production facilities.
 Demand based production means there is very little inventory in Zara’s supply chain,
which results in much lower working capital requirements.

15. Product descriptions…
1) Women’s: Zara produced a range with better fabrics and more “womanly” cuts. Zara Basic
essential fashion-fix pieces and fashion for younger women (Lightness, looser silhouettes
and silky tops).
2) Men’s: Zara has produced the range of lightweight cotton tops and print shirts paired with
cotton twill shorts (Hints of ethnic Asian touches like robes and beads which provides hippie-
bohemian detailing).
3) Zara Kids: It produces unique and sophisticated range. It feels secure in finding unique,
great quality clothes with reasonable price point.
4) Zara footwear’s: Zara footwear is leading manufactures which offers wide array of ladies
foot wears which are beautifully crafted ( ladies sports sandal, formal sandal, fashionable
sandals, bellies, designer sandals, shoes, high heel sandals, flat sandals and flat bellies).

17. Zara’s Strategic Marketing Objectives…
Overall marketing objectives : Increase customer equity
1. Increase consumer satisfaction, decrease dissatisfaction of the plus size consumer.
2. Increase purchase frequency among plus-size customers.
3. Continue to grow by extending the Zara fashion brand.
4. Increase brand awareness and favorable attitudes among consumes.
 Demographic target: Aged 18-40; work in big cities / pursuing higher-level education / Mid-
range income
 Psychographic target: Interested in fashion trends / conscious about the looks / Enjoy
shopping and socializing / Hectic lifestyle
Zara’s Strategic Advantage & Marketing Focus…
*Zara by working through the whole value chain is vertically integrated and highly capital
intensive.
Vertical integration has allowed Zara to develop strong merchandising strategy which has led
Zara to create climate of scarcity and opportunity.
1. Zara manufactures 60% of own products where by owning its in-house production
2. Zara is able to be flexible in the variety, amount, and the new styles they produce.
3. Zara’s in-house production creates rapid product turnover since its “runs are limited and
inventories are controlled. The rapid product turnover creates the climate of scarcity and
opportunity in Zara’s retail stores.
4. The climate increases frequency and rapidity with which consumer visit the stores and buy
the products. Zara’s scarcity allows company to sell more items at full price. The strategy
minimizes Zara’s total cost since it reduces 15-20% of markdown merchandise compared to
the traditional retailer.

18. Zara’s Strategic Advantage cont’d…
 Zara’s unique quick response system which is composed of human resources as well as information
technology allow Zara to respond to the demand for its consumer better than competition.
 Zara’s focus is on the ultimate consumer which places an emphasis on using backward vertical
integration to be quick fashion follower than to achieve manufacturing efficiencies.
Amancio Ortega has effectively transmitted the values of company which are freedom, perfectionism,
responsibility, rapidness, flexibility and respect to others. This has created autonomous and flexible
corporate culture for Zara.
Zara was able to work horizontally with an open communication environment rather than hierarchal.
Zara’s centralized distribution facility provides the competitive advantage by minimizing the lead-
time of goods. Zara’s internally or externally produced merchandise goes to distribution center.
Zara’s cuts in advertising investments reduce total expenses which makes an international expansion
more economical. This is significant since Zara relies on its stores to project an image.
Since Zara’s target is young, educated one would like the fashion and is sensitive to fashion. 80-85%
of products Zara offers are relatively standardized fashionable products. The product which sells
well in fashion capital such as New York would also sell well in Milan or Madrid since fashion has
become globally accessible.

19. Product line and Quality of Zara…
Zara’s core belief has three components which are concept, value drivers, and capabilities. 50% of
he products Zara sells are manufactured in Spain, 26% in the rest of Europe, and 24% in Asian and
African countries and the rest of the world.
On September 6, 2010, Financial Times reported Inditex launched the first online boutique for its
best-selling brand Zara.
On November 4, 2010, Zara Online extended the service to five more countries such as Austria,
Ireland, the Netherlands, Belgium, and Luxemburg. *In 2011, Zara entered the Australian market.
In November 2011, Zara entered the South African market where there were total of 1763 Zara
stores and 171 Kiddy’s class stores. Zara stores operate as Lefties store instead of Zara, a brand for
low-cost fashion.
Zara continues to open stores around the world until there were stores in seventy countries.
Zara’s Marketing Mix…
1. Product: Zara manufactures and sells products such as clothes, shoes, cosmetics, and accessories
for men, children, and women.
2. Price: Zara provides for people with lower income so its prices are very reasonable that everyone
can afford it.
3. Place: Zara is present in 30 countries at private locations. There are 600 commercial stores, and
Zara is selling its service through out the world.
4. Promotion: Zara focuses less on advertisement-based marketing, but more on internet online
marketing opportunities as Ecommerce strategy, social media and online shops.

22. Corporate Appraisal – SWOT Analysis