The reasons are affordability and style.
Let us start the Zara Marketing Mix: Zara is one of the leading luxury fashion labels in the world. It offers jeans, trousers, tops, skirts, knitwear, T-shirts, shoes, bags and accessories.
All these are the product strategy in the marketing mix of Zara. It is a one stop solution for everyone whether you want to buy formals or causals. One can choose from different styles Zara has to offer.
It launches at least 10, new designs in a year. Zara products are a hit with the high end fashionistas as well as with the masses. The taste of the target market influences the availability of products line.
Zara also teams up with local talent to provide best fashion trends. Zara believes in sustainable development and is committed to reduce the production of waste. It recycles its hangers and security tags. Zara gives out their products in paper or biodegradable plastic bags. Zara uses ecological fabrics like organic cotton in the production of some of their items.
These products have a unique and distinct label which can be identifies easily. Zara provides latest fashion at much lower prices in all its international stores as compared to other competing international brands. Zara follows low pricing strategy. It has an overall low cost structure compared to its competitors.
The tagging on their products are done locally in each respective market. Zara sets market-based pricing strategy which sets the target price consumer is willing to pay.
The budget for production according to the target price.
This in turn fixes the profit margin they earn on every item. This gives an insight on the marketing mix pricing strategy of Zara. The brand uses various schemes as a way of sales promotion. Zara has enormous reach with stores in 88 countries, with over outlets. Zara also sells through its online store.
It is a vertically integrated company. It uses its unique business model to bring new products and fashion to the market in shortest time possible. The commercial team compiles the order then sends it to the manufacturing hub.
The commercial team also coordinates with the in-house designers to find out new trends and develop new products. New products are produced in relatively small batches which helps them give exclusivity. Most of the Zara stores are owned by the company and are not a franchise. This helps in keeping the shopping experience at Zara intact and constant be it London or Paris or New Delhi.
The stores are located in posh locations and are spacious and modern in look with walled mirrors and excellent lightings.Many pricing strategies exist, and it may be wise to experiment when you price products until you find a strategy that is the most effective for your business.
Product Cost and Profitability. Before you can determine which retail pricing strategy to use in determining the right price for your products, you. Pricing in the marketing mix of Zara Because the concept of Zara is to provide its products at a reasonable price to its customers, it follows that customers find its prices quite affordable.
However, we have to know that we are referring to the cream customers who would compare Zara with Hugo Boss or others. Executive Summary. Zara is an international fashion retailer which has gained considerable acclaim, being one of the leaders of the high-street fashion industry, and regularly producing new products for the market, at a rate that is quicker than its competitors can achieve, due to the strong supply chain in place.
The "magic" of Zara has much to do with its tight supply chain, Doiron said, which allows the company to manufacture clothes in small batches, get inventory into stores, and turn over styles quickly. Sep 25, · By attending the latest concerts and fashion events, Zara's designers and scouts continuously develop new designs that are fed into Zara's rapid production process and quickly delivered to its stores.
label Price Zara tries to follow a pricing strategy oriented to the market and especially the wishes and demands of their customers.
The new line is more inclusive, and not exclusive: Follow the brand pricing strategies, affordable prices, good quality Promotion Main communication objective, inform about the new line, generate consumer emotions.