Zara’s entire marketing strategy results from the company’s whole marketing mix. This marketing mix framework covers the 4Ps, which are Price, Place, Product, and Promotion. In particular, Zara’s marketing mix has involved innovative products, pricing techniques, promotional campaigns, and distribution channels. The Marketing Mix enables the fashion company to position itself strategically in the market and acquire a competitive advantage. This ensures that the company stays on course to achieve its objectives.
Let us explore the elements of Zara’s marketing strategies that have made the company a hugely successful fashion brand worldwide.
Product Strategy of Zara
Zara’s product strategy in its marketing mix is quite detailed when analyzed. Zara is among the leading powerhouses, and it offers numerous products for diverse customers. There are products for both males, females, and children. Customers can choose from jeans, trousers, tops, skirts, knitwear, T-shirts, shoes, bags, and accessories. The diversified products ensure that there are different products for everyone, either casual or official. The styles of these other products are different, so customers have a considerable number of options to choose from.
Furthermore, Zara has a unique product strategy. The company produces new cutting-edge fashion designs throughout the year. It launches about 500 designs each year but only makes a limited number before creating the next design. This high number of designs means a vast variety of products from which customers can choose. Moreover, since each design has a limited number of products, the clothes will have more value. This is because the clothes will only be bought and worn by a few people. This makes the Zara products an exclusive product with a lot of appeal for fashionistas.
All Zara products are made from in-house manufacturing. The company does not engage in any outsourcing. This makes the company control and takes account of all production of products. This ensures that there is accountability and that the manufacturing process is shorter. A shorter manufacturing time allows the company to produce numerous designs all year round.
Zara focuses on ensuring that its processes favor sustainable development. The company recycles its security tags and hangers and uses biodegradable covers and bags. Some of their products are also designed using organic cotton. This appeals to the people who love environmental conservation and increases the company’s customer base.
Price Strategy of Zara
The pricing strategy in Zara is unique. Despite the products being of high-end quality, Zara still sells at affordable prices compared to other clothes of the same caliber. The company does not compromise on quality, so the prices are still premium. However, the entire theme is to ensure the affordability of high-fashion clothing.
Zara has been able to reduce its pricing by reducing production costs. The reduced production costs give the company the allowance to retail its products at relatively lowered prices. These lowered prices make the products accessible to ordinary people who would love to also wear high-quality fashion. So, the pricing system enables people of the middle-income level to be able to afford affluent clothing.
Zara also focuses on ensuring that its prices are market-based. The prices are set based on the country and the local market. Zara positions itself as a high-quality clothes manufacturer that sells at a competitive local price. The company also offers sales promotions to ensure that costs are within the range of the local customers. This, in turn, ensures more customer loyalty and hence better profit margins.
Place Strategy of Zara
Zara was initially founded in Spain, and it took some time before the company started to set up outlets around the world. However, expansion begun about a decade ago, and when it started, it was very drastic. Zara started expansion to Portugal, which is Spain’s neighbor before moving on and into India, New York. London, Madrid, Saint Petersburg, Paris, and Rome. Currently, Zara operates around 2,242 stores in 96 countries around the world. The expansion has still not stopped, with the company targeting more and more world capitals and cities.
Zara has also primarily focused on online means of selling its products. The company has optimized its website to ensure that customers can easily order their desired products. Besides these websites, Zara products can also be accessed from multi-brand online outlets. Zara has formed partnerships with these online outlets. The online selling channels ensure that Zara products can easily reach tech-savvy customers. This involves the social media users and the younger public who love spending most of their time online. The strong online presence has appealed to millennials and turned them into loyal customers. Zara has increased its place strategy by use of online channels.
In terms of the place marketing mix, Zara also has a fast supply channel that supplements the fast production line. Retail store managers send their product requests to Zara headquarters twice a week while they receive the products in the shortest time possible. This helps the entire sales process run smoothly irrespective of whether it is in Madrid or London.
Promotional Strategy of Zara
Zara’s marketing strategy of promotion is unique because the company does not spend its resources on advertising. Most other fashion brands spend a lot of money on advertising their brand and products, but Zara does not even set up commercials. Zara uses its dynamic but highly effective social media advertising. When Zara intends to market an upcoming event, the company just posts on its registered social media handles, such as on its Facebook wall. On platforms like Facebook, Zara has 30 million followers and they see, read and spread the word. Zara also uses its Instagram page, where it has a huge number of followers (45 million followers). Zara has targeted the use of word of mouth promotion and social media instead of expensive marketing adverts.
Zara also promotes its products by setting up strategic store outlets. The company uses its appealing outlets to promote its brand among the locals of that location. The company also does not embed its logo on any of its products. The company holds the belief that putting a logo is unnecessary and also expensive. The company, therefore, focuses on opening new store outlets in prime areas and also using its social media channels to advertise itself.
Zara Marketing Mix (4Ps) Analysis Mind Map
Zara uses a unique marketing mix. The strategies are so effective because the company has grown to become a fashion powerhouse recognized worldwide. The mind map shows that Zara’s entire marketing mix revolves around its price, product, place, and promotion techniques. In terms of product marketing, Zara offers high fashion for ordinary people and a fast line of production. In matters of pricing, Zara sets a premium price that is comparatively lower than the prices of its competitors. To ensure place marketing, Zara has focused on opening new store outlets in prime areas worldwide. Zara does not bother with advertising and instead focuses on posting on social media and using its store outlets for marketing.
Zara’s marketing mix involves some truly unique marketing strategies that have given the company immense success. Zara significantly focuses on the feedback it gets from customers and then designs and produces trendy products quickly and at affordable prices.
Zara’s marketing mix is an excellent model for businesses to copy, especially startups. It would not be surprising to see clothing companies adopt and implement these same techniques in the future.
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Zara Marketing Strategy & Marketing Mix (4Ps) https://www.mbaskool.com/marketing-mix/products/16999-zara.html
Zara Marketing Mix (4Ps) Analysis https://www.edrawmind.com/article/zara-marketing-mix-analysis.html
Marketing Mix of Zara: The 4Ps Strategy https://www.advergize.com/marketing/marketing-mix-of-zara-the-4ps-strategy/
Marketing mix of Zara https://www.marketing91.com/marketing-mix-zara /