MARKETING STRATEGY PROJECT

Part 1
Submitted By:
Mirza Adeel Baig
Qasim Nasir Butt
Arslan Sarwar
Submitted To:
Sir. Arshad Mahamood

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ZARA INTRODUCTION:
Zara is one of the biggest fashion clothing and accessories retailer founded by Amancio Ortega
and RosaliaMera in 1975. It operates under the shadow of Inditex group along with Massimo
Dutti, Bershka and Pull & Bear. Inditex group is one of the largest fashion distributors with more
than 4780 retail stores in 77 countries in Europ, Asia, USA and Africa.
Currently Zara has 1751 retail stores worldwide with the annual revenue of $12 Billion dollars in
year 2012.
The first store of Zara with the concept of fashion garments opened in central street Galicia,
Spain with the name of Zorba in 1975. The name Zorba is an aspiration of classic film Zorba the
Geek but two blocks away there was a bar with the name of Zorba. Two totally different stores
with the same names can confuse the consumers so one of the stores had to change their
name. The Bar with the name of Zorba had already signed latter for this name so Ortega had to
change their store name to Zara.
Zara started their first store with the concept of high end fashioned products at low price, the
concept turnout to be great big success and Ortege started to open more Zara stores all over
the Spain.
With the expanding business Ortega defines a new strategy for Zara in 1980s, Ortega had
worked and had changed the design, manufacturing and distribution process for the Zara. The
concept behind was that Ortega wants to reduce the manufacturing selling lead time so as to
lunch new design in minimum time on stores shelves. He named the concept as instant
fashion.
Furthermore from 1980 company start expanding to overseas they have lunched stores in
Mexico, Greece, Portugal etc. It entered in USA in 1989.
Worldwide Zara has 1,751 stores. They annual revenue is of about $9 Billion plusit is vertically
integrated means that their control start right from supply chain than designing, manufacturing
and finally they got the control of their own distribution network with which Zara supply their
product worldwide.

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EXTERNAL ANALYSIS (PEST):

1. POLITICAL-LEGAL FORCES
As Zara normally opens stores in different countries of the world so to be successful the
political situation of different countries and also the parent company should be known.
The stability or instability of the laws have a big impact on the organizations working
Political climate of the countries also impacts the growth of specific organization or
business
Political interference in the businesses and organizations also impacts the decisions
related to moving to the specific countries
Policies related to the taxes are different for different countries which impacts the
decision of an organization related to entering that country for business
Restrictions of trade is another point that organizations always look into before
entering to another area
POLITICAL FACTORS ANALYSIS GERMANY
Germany has become one of the major economic and political powers of the European Union
and is considered as historic leader in many cultural, theoretical and technical fields.
Germany has an area of 357,021 Sq. Km, and is consisted of sixteen estates with Berlin as
largest city and capital of German federation. Germany is the most populous country in
European Union with population of about 82.2 million.
New Germany rise after the revolution process started from 1918-1919 with World War-I and
Worked War-II in 1945 and its reunification in 1990.Now the Germany has become leader in
many scientific and cultural fields.
No doubt Germany witnessed significant economic and political instability but now it has
evolved into a Leader of the European Union. The political system of Germany is based on
Federation System. Political Environment is stable and steady for decades due to a widely
technologically advanced Political Structure, is based on federal democracy.
Despite of all facts and figures of political and economic stability, Germany has a continuous
economic division through the estate, since the country was divided for more than four
decades into East Germany and West Germany. The purchasing power is much stronger in the
Western part of Germany as compare to that of people have in East Germany. Although

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massive investments were made in the East Germany butt his part of the country still has
extremely high unemployment.
Where as in Northwest Germany people have a purchasing power above average, indicating
opportunities for the ZARA in fashion industry on this market. The total unemployment rate of
5.1percent (Men 5.4%, Women 4.7%) is expected to remain in 2014, which will be lowest in 25
years data. After passing of only two decades to World War-II, West Germany had developed as
worlds richest nations, with privileged circumstances that have extended to all segments of
society. Moreover, the economic composition of the country attracted foreign skilled labor to
settle down and boosted the economy and industrial production at remarkable speed.
However, presently, the country is facing challenges like high numbers (almost 9%) of foreign
settlers that have obtained German nationality along with the affects of global economic
recession on German market also. The Government is also trying to help market with worth 80
Million bailout package to support market to recover from recession like infrastructural
investments and tax relief.
tax reliefs. The aim of the initiatives is to kick start economy and to stimulate a number of areas
to support an increased demand that will hopefully spring from this. The financial and political
initiatives mentioned before aim at the government Is also taking initiatives for stimulation of
society in a broader terms from economic and social point of view. Also the revised federal
policies are playing important role in recovering German market from recession aftershocks.
However, the Political stability of Germany is the strong positive factor when it comes to
livelihood on the future for ZARA to plan its business in Germany.
2. ECONOMICAL
Type of economy (free economy or planned economy) impacts a lot on the decision
related to investments in different countries
Strength of the currency impacts the profits and loss of organizations working in that
country so exchange rate also impacts the decision of organizations to invest
Inflation is another major factor that effects decisions of countries to enter in the
country as it affects rate of interest, exchange rate, living cost etc.
Cost of labor also affects the profits and loss of organization and also decides that
either entering in that country will be feasible of not

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ECONOMIC FACTORS FOR GERMANY

German market is considered as social market economy resulting into free enterprise and
competition based market with a high level of social services.
Germany is comprised of worlds fifth largest economy; however, the country entered into the
recession of 2009, the effects of recessions appeared in terms of high unemployment rate and
decrease in consumer consumption power. But due to government policies and companies
measurements the country is trying to meet the recession by products e.g. the companies
through internal adjustments measures such as by reducing working hours rather than
workforce are trying to decrease unemployment rate.
Due to recession, the German consumer behavior has changed, people attract towards offseason sales rather buying at full price but the consumers prefer to buy fashioned clothes, ZARA
is considered as one of their favorite brands. The point of real worry is that brand clothes
especially designers outfits are losing their grounds.
By offering mid-season sales the ZARA can penetrate into the market due to the low buying
power and recession after effects which are expected to recover in 2014 completely.
3. SOCIO CULTURAL FORCES
The values and the attitude shared by the people in the country are important factor
for businesses
Education and social mobility is another factor effecting the business to enter in a
country
Population demographics also have an effect on decisions related to entering another
country
Social factors of Germany
More than 90 percent of German population lives in cities, the ZARA fashion could have good
projections of distributing their products to a large part of the market. Developed Welfare
system of federation is extremely benefitted to citizens for example pension schemes, unemployment insurance, social assistance, health-care, accident- and long-term care insurance.
In presence of such social support from the government, Germans are focused on health and
physical activities, resulting increased demand for sportswear, however due to external factors
such as recession people are careful while spending on their shopping. But the interesting
factor is that the new German generation is more attracted towards fashioned clothes as

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compare to old traditional and classical outfits. Also the interest of consumers has increase in
ecological friendly clothes, and they prefer to buy fashioned clothes of the brands which fulfill
their green responsibilities.
4. TECHNOLOGICAL FORCES
Advancement in the technology decides about the entry of some business in the
country
IT and infra-structure of country impacts the entry of external people in country for
business
Technological factors of Germany
Being a part of European Union Germany has naturally hightechnological development.
Majority of Germans collect information through internet. In this regard, vide internet
advertisements ZARA can attract large consumers. In German language website could be an
idea to attract more customers, as majority of the German prefers to do business deals in their
own language.
Also because of recent recession many consumers have turnedtowards online shopping looking
for clothing at more affordable prices. As estimation almost 29 million of Germans prefer
onlineshopping andmorethan, 50,000 stores offer their onlineproducts. An Eighteen percent
growth of internet buyers is reported; the large part of young Germans visit online stores
whereas the old ones prefer to go market for shopping.
CONCLUSION OF PEST ANALYSIS

As a nation German always try to do different both from cultural point of view as well as
when they do business in the same way their sense of fashion is also different from rest
of the Europe.

German those who live in Western part of the country has high purchasing power, North
West Germany has average buying power, due to this reason ZARA should focus in these
two markets. This is also noticeablethat the Germans prefer shopping in sale seasons
where clothes are discounted, but offering mid-season sales ZARA can take advantage
over market.

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ZARA can also take advantage of increased trend of internet users, especially young
German prefer to visit online stores which is also the target market segment of ZARA.

German fashion market is favorable for ZARA to distribute across the country with
promise of care take of mother planet and environment friendly brand.

INTERNAL ANALYSIS:
Zaras mission statement is to be the environmental friendly company and also to contribute to
development of society and also wants to be the fast fashion company. Main points in which
Zara is above his competitors are below:
Vertical integration model
Quick response to change in fashion
High quality
Short production lead time
Toxic free products
From the point of view of physical, human and organizational resources, Zara is very strong
apparel brand which is also another reason of the success of this brand, some points are
discussed below:
1. PHYSICAL RESOURCES
Perfect location of stores
Normally Zara stores are located in the best places of the cities which allows maximum
people to visit the store
Display
The display of the Zara stores is much attractive and also the ambience is maintained
in each and every store

Up to date collection

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The collection present in the stored of Zara is up to the market trends and even they
are the innovators in the fashion industry so they have the best collection available in
the stores
Integrated Information system
That they are using in the stores is another internal strength of the Zara
Vertical integration
Of Zara also helps in the efficient working of the brand
2. HUMAN RESOURCES
Designers
To meet the requirements of the fashion market, Zara has a team of professional
designers that work on the new collections throughout the year
Professional Employees
To give best service to the customers Zara has trained employees having a
professional attitude
3. ORGANIZATIONAL:
Clear vision and knowledge of the strategic goals
Companys culture is much strong
Structure of Zara is much flexible and managers of stores are also allowed to be
involved in the development of products
Effective communication between the stores and headquarter
4. Management Practices:
Being one of the fast fashion brand in the world is because of the visionary management style
of the founder of Zara, he had a view point that clothes should also be regarded as the
perishable thing and people should consume immediately and rush for the next. Zara has a
strong management with a strong organizational culture
5. Vertical Integration Structure:
Zara has a vertically integrated structure that its competitors do not have because the others
rivals have to outsource all the production but Zara can also perform tasks in the in house units.
Due to all this the production lead time of Zara is much better than that of the other brands and
it can quickly respond to the changes in the fashion

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6. IT and Communication System:

Zara has one of the best IT instruments and systems, online data for products, developments
stocks is available to all relevant persons and one can easily get idea of the current position and
performance of the company. Also the requirements of the developments and sales strategy
can also be checked from this data.
7. Distribution:
Zara has a very good logistic system and requires very less labor for the stacking and
handling of the logistics. Due to the high efficiency of the logistic system they are able to
move goods to stores (European) within 24 hours. They also keeps the stocks for very
less time and focus on the strategy of finishing the inquiry as quick as possible. But issue
related to the supply to other countries is very much expensive and this cost is
transferred to the consumers in the form of high garment pries.
8. Marketing and sales:
Zara do not spend a lot of money on the advertising but focus mainly on the in store
displays and also the store locations, which is also very much beneficial. Regular
customers visit their shops regularly and due to the attractive environment they are
forced to purchase the goods.

SWOT ANALYSIS OF ZARA:

Strengths:

Zara is overseas brand operating in 77 countries as USA, Europe, Asia and Africa.

The one of the major strength of Zara is their concept of Instant fashion as per the
article on Best Global brands 2010, Zara needs only two weeks time to design any new
product and bring it on the shelves while their competitors takes 8 weeks for the
complete process.

Zara production houses are in underdeveloped countries like Portugal, Pakistan,

Bangladesh etc. it will help Zara to take advantage of low wage rates.

But Zara kept most of their production houses in Spain and Portugal where wages are
relatively lower than Western Europe with this they can take advantage of lower cost
labor along with shorter lead time to bring new product on shelves to quickly respond

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customer demands according to a statement by Louis Vuitton Zara is Possibly the most
innovative and devastating retailer in the world.

Zara is the only brand which is providing new trends in fashion with the highest turnover
at low prices.

Zara has designers working innovatively compared to its competitors like GAP, H&M and
others.

All of the Zara stores are owned by the company and its a vertically integrated starts
from designing of the product to their distribution.

As like Zaras competitors it doesnt do any advertisement for their product they just
deliver their products directly to their customers by selling it on stores. Reference article
the Secret of Zaras Success, Store Magazine.

Zara has highest product line due to their fastest turnover rate, each product in Zara
store has been replaced after two weeks.

With the fastest product turnover rate company has low inventory cost.

In a year Zara store in Spain being visited 17 times by their customers compares to 3
times/year of their competitors according to article Zara a Spanish Success Story.

Weaknesses:

Due to the companys giant size in the retail industry, it could also count as its weakness
that if there would be any trouble in some part of business it would be very difficult to
control.

Zara try to provide a cutting edge products to their consumers, but normally it has been
seen that fashion industry is very volatile so more cutting edge designs means more
riskier the product if fashion will change (Zara 2.0- Fashion index.com).

Zara is reputed to develop and new design in the market but it would be riskier if their
innovation gets stumble.

In inditex group Zaras share is of 80% which failure of this group can put whole group
into jeopardy.

Advertisement has been proven as the most efficient tool in the marketing which can lift
up your sales, Zaras policy of not doing advertisement for the promotion of their
product if not work in coming future could hart their business of the whole group badly.

In Asian market most of the people belong to the low income scale group, so trendy
store like Zara which requires customer to visit their store with high turnover rate would

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not be possible in these countries. So Zara fast trendy strategy may not be workable in
these countries.
Opportunities:

Being a part of Inditex group, Zara has opportunity to open new stores in different
countries.

Zara has a great potential to invest more as they are already operating in 77 countries so
they knew the dynamics of each country.

People in counties like India, China are also getting toward high fashion so Zara has
opportunity to capture maximum share from these markets as well.

Threats:

H&M, GAP and Benetton which are the biggest threat for Zara.

New entrants in market are also a threat for Zara.

Increasing the labor and raw material cost in underdeveloped countries shrinking down
their profits margins.

Zara is operating in 77 countries so any economic crisis would be great threat for Zara.

Zaras net cash flow is lower than its competitors because Zara has a huge investment in
real estate choosing prime locations in the market, introducing new product line in
every two weeks.

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Barriers to entry: HIGH

Major barrier to enter in the
apparel market is the resources that
are needed to fulfil new fashion
requirements, the entry cost is also
high for this industry as a huge
investment is needed to enter the
market, due to the already present
giants in the market achieveing a
better place is really tough

Rivalry: HIGH
Zara's direct rivals are H&M,
Esprit, Benetton and
switching cost is very low so
customers can easily switch
the brand, another factor is
that the rival brands are also
much aggressive in product
development which is also a
threat for Zara

Zara
Stretegic
Position

Supplier power: LOW

Supplier power against Zara is much low as
there are a lot of producers that are willing
to work with them due to the good image
and its Zara's choice to select the
producer, contract based working also
lowers the supplier power. Zara only works
with the suppliers that are corporately
responsible and can shift the business if
found any thing against this

Threat of substitutes:
MODERATE
The threat of substitute in
this case is not directly the
alternative of the clothing
but is the other alternatives
available in the market that
are offered by other brands
Zara is an exlusive fashion
brand and their product has
it own uniqueness, so in
market zara has morderate
threat of substitutes.

Buyer power: MODERATE

Because of the brand identity,
diffrectiation in the product offered and
also the quality the buyer power is less
but due to high price and availability of
substitute for the same product the buyer
have strong hold over the brand so averall
the buyer power is moderate

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Marketing Objectives:
Zara Watches:

Brief Description:
Zara wrist watches are high end fashion watches for both Men and Women. These watches are
specifically designed for trendy fashion followers which enhance customers look with its vibrant
designs in blocking colors because all over the world and specially for the latest fashion
followers appeal and look of wrist watch is way more important than just telling time as in
todays modern world with modern gadgets like smart phones, laptops you can look for time
anywhere easily, the concept of wrist watches is more fashion orientated. A watch rapped on
the wrist is a sign of class, taste and punctuality. These wrist watches would give and off beat
twist to Zara fashion following customers.
These watches would be offered in vibrant analog designs which contain up to date mechanical
movement mechanisms in a way that these watches could be pass on to the generations.

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Zara watches SMART Objectives:

Objectives For Profitability

o To attain 15-20% return on capital within a year.

Objectives for Market Share

o To acquire around 10% of market share among existing brands like, Rolex, Patek
Philippe, Gucci and Seiko.

Objectives for Promotion

o Normally Zara do not spend lot of money on advertisement, they use their
expense on store locations, but in this case advertisement would be primary
source of promotion as product would be at initial stage of business cycle.
o As product is in initial stage of its development, so promotion will be done by
ATL mode, mostly vide TV advertisements to create aura of our brands in the
mind of Zara consumers.
o ATL Advertisement to create the excitement among Zara consumers about Zara
watches.
o To educate the market on the values provided by the wrist watches.

Objectives for Growth

o To increase the brand awareness in the mind of consumers till 50% in next 6
months.
o To promote the Zara wrist watches as rewards for Mens and womens.

Objectives for Branding

o To take strong traditional value of Zara brand as positive edge and to make sure
that Zara watches would carry the same message for their consumers.
o To build strong brand image by providing quality product well on time.
o Follow up on every aspect related to customer and try to resolve it within 24
hours.

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Marketing Plan:
Segmentation of Target Market:
The market of high end watches consists of the buyers who have different needs from one
another, so it is very important for our Brand to categorize and make segments of their target
market to fullfil the needs and wants of different consumers accordingly.
Selecting the target market is the 1st step in the lunch of any new product. For Zara watches the
criteria of providing marketing segmentation should provide the following benefits:

Zara watches can focus more on target customer for market penetration.

It will be helpful to use our energy to satisfy the needs of target niche market.

Zara watches can grow by accelerating its functionalities for the market niches.

Will help Zara watches to find profitable market segment in German market.

Marketing Segmentation Process:

The marketing segmentation process will be based on following steps:
Step 1: Defining the target market, in this case is Germany where we are planning to lunch Zara
watches.
Step 2: Identification of group of people who are already consuming that product in the
market.
Step 3: Combine these groups with the specifications of their needs.
Step 4: Identify the most attractive segment of the market.
Step 5: Define the value proposition as per the needs of identified group of the market.
Step 6: Develop market strategy to fulfill their needs.
Selecting target market through above process will help Zara watches to find a market which
would be measurable, accessible and profitable, it will also give the price bracket that
consumer can afford for Zara watches.
The First Cut:

Youngsters of age 20-35 would be the first target for our Zara Watches, because they
are the ultimate consumers of Zara watches.

Trendy People upper middle class users.

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Segmentation Basis

Possible Market Segmentation

GEOGRAPHIC

Region

Germany

City or metro area Size

Population 82 Million

Urban-rural

Urban, suburban

Climate

Diverse

DEMOGRAPHIC
Income

$25,001 - $60,000/Year

Age

Under 25 50 and over

Gender

Male, Female

Family life cycle

Young, single, young-married

Social class

Upper-middle, upper-lower

Education

College graduate

Occupation

Businessmens, Office working staff in different organizations.

PSYCHOGRAPHIC
Personality

Fast fashion followers, trendy people.

Lifestyle

Modern, up to date with fashion, Interest (Watching movies in cinemas,

likes to travel) extrovert personality (Like to interact with people).

Values

Fun loving people, have sense of achievement, self -respect.

BEHAVIORAL
Benefit desired

Buying situation

Cool looking wrist watch as a sign of latest trend in the market. Quality
watches, gives inspiring looks.
New buyers mostly, Straight re-buy.

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Target Market for Zara Watches:

Primary Target Market (60% - 80%):
The target market for Zara watches will be trendy, fashion following consumers belonging to
Upper middle or middle class that will be looking for the quality and exclusivity. This product
will be basically for those people who wanted to show their exclusive self the typical Zara wrist
watch target would be male above the age of 30 who has attained certain level of success in his
professional carrier and enjoys some status among its peers. Zara is the most exclusive brand
for the fashion followers with the maximum turnover rate of consumers visits during year with
the inventory turnover time of two weeks which is way too high compare to its competitors,
Zara watches would follow the same path as well.
Zara watches main focus would be 20-35 years old young males and females living in Germany,
who have recently got success in their professional carrier or got a high profile Job or receive a
bonus for their best performance, these are young men and womens who wanted to display
their success and wanted to show off their status in life, they probably wear expensive suits,
nice looking shoes, gorgeous tie but it would not be completed without an sophisticated wrist
watch it feels like there is some gap in the personality without the wrist watch and Zara
watches will fill up this gap.
Currently this kind a consumers are using their mobile phones as their primary source to watch
time, Zara need to educate these consumers about the value of wrist watches to use as primary
source to watch time through advertisement campaigns.
As per the recent survey done by Rolex shown that the number of wrist watch users have gone
done till 30% in last couple of years so through smart advertisements Zara need to develop an
excitement among their consumers and try to educate their consumer about the value that a
wrist watch carry.
Social media can also be very effective for this as our target market for Zara watches would be
more in to social media like Facebook, twitter and YouTube etc.
Secondary Target Market (20% 40%):
The youngsters of age 18-25 years, who just have been graduated from high school or college
or university or maybe obtain a new Job, their parents or grandparents can gift Zara watch for
their achievement in life as a beautiful gift piece because in Upper middle or middle class the
parents or grandparents probably be earning like $ 50 55 K per year and can afford such a
quality wrist watch for their children as they are sophisticated and know the value of a quality

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wrist watch. After getting a gift of Zara watch the young person may also realize the value of
wrist watch and will purchase more from the brand in future.
Positioning and Differentiation:
Positioning:
Zara need to position this product in a way that it will carry the same value that Zara Brand is
carrying for their consumers.

High quality fashion following brand which an aspiration for their consumers.

A replacement for cell phone users to watch time in a way that Ill also give them a cool
and fashionable look.

It would be status symbol for the successful professionals.

Differentiation:
A differentiation strategy would be the one that provides benefits to their consumers through
product and services that are different from their competitors and that are most valued by the
buyers. The main purpose of using this strategy is to get a competitive advantage over the
competitors.
The competitive advantage that Zara has as a strong fashioned brand is its approach to provide
high fashion product at comparatively low price by following some unique effective practices in
their operations. The product in their shops changes every two week, their collection is usually
small thatll create an impression of the exclusivity of the brand.
Zara follows the differentiation strategy on all level, from Product differentiation to brand
image differentiation which includes:

Product differentiation

Service differentiation

Channel differentiation

Same differentiation strategy would be followed for the Zara watches as well.
Product Differentiation:
Zara watches would be offered at relatively low cost than its competitors which will be achieve
by choosing smart vendors that can provide good quality and Zara Brand image would help
company to achieve that goal, the unique and innovative designs of the watches would also be
the competitive advantage for the Zara over its competitors.

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Another product differentiation that Zara had always uses as their product differentiation
strategy is the availability of the product, because this is another important factor for the
consumers.
Service Differentiation:
Service level of Zara as brand is always their competitive advantage; same strategy would be
followed for Zara watches as well.
Channel Differentiation:
As Zara has already their strong distribution base all over the world, so this would be the
competitive edge for Zara watches that it already have a strong plate form to lunch on.
Furthermore Zara has already their online shopping facility available which will be an added
advantage for the Zara watches as well.
So overall the major competitive advantage for Zara watches would be their product
differentiation i.e. providing high quality exclusive and trendy watches and relatively low price
that would cover large customer base.
Perceptual Map:
On perceptual Map Zara watches would lie on 1st quadrant between quality and innovation as
prime focus of Zara watches brand is to provide unique innovative watches designs to keep
Zara fast fashion legacy along with quality product.
Quality

Zara
watches

Innovation

Traditional

Functional

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Marketing Mix for Zara Watches:

The marketing mix which is also known as 4 Ps are:

Product
Price
Promotion
Placement

Product:
Zara watches would be the exclusive, innovative high end quality watches with most
sophisticated designs of analog watch to provide their consumers a sense of achievability and
that will enhance their smart looks and charm.
Price:
Zara in world is famous for their low price with similar or batter quality of the product that its
competitor are offering, Zara watches will follow the similar trend as well. The pricing strategy
for Zara watches would be the competitive prices compare to their competitors which includes
Rolex and Seiko mainly. For that weve to do a complete study of the prices being offered by
the competitors in the market.
Promotion:
Zara watches would be first introduced on TV ads which will create aura and exclusive image of
their product in the minds of the consumer, after that bill boards will be used to display the
images for their target audience.
In general fashion retailer would spend 3.5% of their revenue for the advertisement but Zara
was spending 0.3% on its advertisement for the other products, as Zara as brand believes that
shop window advertisement is all they need for their apparel products but in order to create
strong luxurious image of Zara watches ATL activates would have to be taken into account.
Furthermore social media would also be very helpful to get the consumers attention as Zara has
strong fan following base (21 Million) on face book and twitter plus on other social media as
well. Their consumers keep themselves equipped with any new change that Zara bring in to
fashion industry from their mobile or Laptop on social media.

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Placement:
Zara is one of the biggest retailers in the world operating in 84 countries and it has a huge
network with 1,770 stores all over the globe. Their stores have already covered the prime
locations in all countries which can get the high attention of its consumers. Their consumers
can easily get Zara watches from any Zara store in accessories section.
E-Business:
Zara E-business strategy includes the following tools:

Website (www.zara.com)
Email marketing
Social media (Facebook, twitter etc.)
Newsletters
Press Release

These are the E-business tools that are available for their consumers who use smart mobile
phones to get updates of fashion.
Zara also have B2B setup to facilitate their consumers, it has huge transactions for their apparel
product already, Zara watches would use the same platform for the promotional actives and to
provide services to its consumers.

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Zara watches advertisement Budget:

As per the study the yearly advertisement budget per year of high end watches brands are as:
1. Rolex - $47,100,000
2. Breitling - $27,070,000
3. TAG Heuer - $24,730,000
4. Citizen - $19,850,000
5. Movado - $15,870,000
6. Cartier - $15,040,000
7. Seiko - $11,020,000
Source: http://watch-fever.blogspot.com/2013/07/how-much-does-rolex-spend-for.html

These are also multinational brands and working in different countries, a rough estimate that
how much Zara watches advertisement budget could be if it wanted to compete with Rolex it
should be around $ 30 $35 M per year, furthermore these are the advertisement budget of
the brand for the advertisement in different countries for the lunch in Germany Zara watches
could have $ 5 - $7 M as annual budget which will include different ATL activities.
Zara watches annual budget break up:

Events 2%

Newsletters
3%

Press
Release 5%

TV 40%

Print Media
20%

Inernet
social
media 10%

Z A R A W A T C H E S | 23

Bibliography:

http://economics-files.pomona.edu/jlikens/SeniorSeminars/Likens2013/reports/inditex.pdf

The information about company: www.zara.com

https://www.inkling.com/read/strategic-management-cases-rothaermel-1st/chapter6/business-level-strategy-how-to

http://www.oeconomicae.com/documents/Author/Strategic%20Marketing%20Plan,%20Zara,%
20Arteixo,%20Spain.pdf

Source: http://watch-fever.blogspot.com/2013/07/how-much-does-rolex-spend-for.html

The Story of Zara - Unique Business Strategies:

www.uniquebusinessstrategies.co.uk/pdfs/.../zarathespeedingbullet.pdf

Zara's Marketing Strategy | Conrad Chan's Blog - UBC Blogs:

blogs.ubc.ca/conradchan/2011/09/16/zaras-marketing-strategy/

Rolex Marketing Plan - SlideShare www.slideshare.net/jplopan/rolex-marketing-plan