Zara Company

IntroductionThe United Arab of Emirates is always open to local and international markets, and keeps abreast of the continuous change in the marketing environment. The economy in the UAE is very strong as it ranks in the world market and compete with major countries. People in these days consider more about fashion and they try to follow any new lines of fashion because they care about elegance and everything that can make them beautiful. Zara is a brand that can satisfied people especially in the UAE because it products many of unique clothes, bags and shoes in a good price to be one of famous brand and known in the world. Spanish brand and one of a famous brand in the world which that is specialized in clothing and it founded by Ortega Goanna and Rosalie Mere in 1975. Brief background information about the brandZara is Spanish brand and one of a famous brand in the world which that is specialized in clothing and it founded by Ortega Goanna and Rosalie Mere in 1975. Zara known as one of the big and major selling brands and fashion retailer in the world and it is available in 86 countries in the world like Spanish which has a big number of Zara's shop, Germany, Morocco and the UAE. Zara has around 1763 shops around the world which can make a big seller and profit for Zara. Zara started to be distributed in 1957 for different countries in the world and they opened there shops in the Middle East during 1998 until 2000 in different countries such as the UAE, Kuwait and Egypt. Zara has different lines fashion for different categories like male, female and kids too and they focus on fast and practical fashion which is product in weeks.Consumer productThere several useful product that Zara provides to its customers. However, we chose makeup for women. We as female like to wear makeup always and we want Zara to produce those product because of the quality of their products. Like foundation is important one and lipsticks and mascara those are the main. These product will serve women specific the young girl because they like beauty cosmetics. The strength is the quality that Zara use with manufacturing its product so customer won't suffer from it although the weakness is the competitors like H&M they offer makeup for their customer with high quality and lower prices. B- Marketing Opportunities We have some idea, it will help Zara shop to improve and be better they can attract the customers through price cut and build more Zara shop in many different places it will be easy to visit this shop and buy more products, I think when Zara shop do the offers that will help them to find many customers. Product development is the creation of products with new or different characteristics that offer new or additional benefits to the customer, the process consists of the following stages coming up with a product idea, researching the idea, designing and planning.  Primary Research We evaluated the survey of people opinions about Zara. A total of twenty response, seventy five percent (75) were female. And twenty- five (25) percent were male. Most people were between two and thirteenth, and few of them were between fourteenth and twenty. We analyze the response in orders of question, and it turned out a huge amount of people prefer to visit Zara more than the other shop because they have excellent products. Not also they own one but even they think it reliable. From the study, most people who responded agrees to buy a product from Zara greater than the other products. According to the survey a small percentage of people are willing to buy this moment. On the other hand, slight amount of people is not interested in purchasing more products because it is very expensive and some people they don't have the Zara shop in your country. Or it depends on some people taste and that's why they don't see Zara shop as a first choice. However, Zara company improve their products and service quality to coming up with a product.Marketing opportunities:The marketing opportunity is â€Å"A potentially favorable condition in which a business can capitalize on a changing trend or an increasing demand for a product by a demographic group â€Å"(Investors words, N.D).We think marketing opportunity linked to its productivity development. When it is at a high level, Zara's profit will continue growth. The companies compete with each other, and they almost have the same competitive opportunities. The development, diversification, and innovation help the Zara and other companies to protect the opportunities of competitive.Human capital as well as technology information allow Zara to respond to the demand for its customer better than other companies (Lee.J, 2015). The clothes, perfume and chose industry need to understand the marketing opportunity to be in a good position in the market. There are many things that help Zara company to have a good marketing opportunity such as technological innovation and diversification. Innovation:The strategy of developing ideas that create value which is modern and suitable for people. When Zara's company create creative and innovative ideas in its product and services, it attracts its customer to come to the shop and by more. We are now in the era of innovation, so all people look forward exotic and creative things. Diversification:Diversification is an administrative method that gathers many investments in one portfolio.Zara Design team are producing 18.000 different model of clothes per year, that's about 70 every working day in a continuous process (7 innovation, 2013). Existing market segment and new market segment:We think new market segment attract people to come to the shop and buy because in these time people like the trend things. The existing market segment will not be developed and suitable for everybody.Segmentation and Targeting:â€Å"The identification of individuals or organization with a similar characteristic that has significant implications for the determination of marketing strategy)†Fahy & Jobber, N.D).Marketing segmentation helps Zara Company to support profit and economic growth, improve customer retention, and more effective targeting of communication. The clothing is changing every day which means the targeted consumer would need to be following the current fashion trends.We can divide consumer segmentation to behavioral, psychographic and profile. Behavioral:The objective of Zara Company is to increase customer equity and customer satisfaction, so the company tries to do research that improves products and services and pay attention to occasions. For example in AlEad they introducing a new collection. Geographic:Zara Company opens many branches in our country to facilitate access to it. And also open the branches in the places that are suitable for people regarding weather and safety. Demographic:Zara opens its branches in the area of population concentration such as malls, to be easy for the customer to buy. If Zara opens its branches in the place that's far from the population density, this will cause problems such as loss. Customer profile:The age range of Zara's customer is various, and it includes children, teens and adults. The more age group buy from Zara are between 18-40 years. They have mid-range income which makes them able to purchase. Also, they are interested in fashion trends.(Lee, J.2015).Application of the marketing mix:All markets applies marketing mix to promote their brand or product. The 4Ps make up a typical marketing mix; product, price, place, promotion. Zara provides various products for their customers. Also the main strength and power of Zara Company is that it's able to react quickly to the latest highly fashion, season needs and customer needs whether products or services. The following are the products line in Zara product mix;Clothes for men, women and kidsPerfumesShoes for men, women and kids6.1 Product We want to develop a new product that Zara Company doesn't considered about that is Makeup moreover Zara customers most of them are women they are loyal. As we see here the UAE community like Dubai, Abu Dhabi and Sharjah are developed and civilized, and they're in line with the latest trends in fashion specially the females, they like modern, show, painting and to wear makeup every day. Zara Company did researches and studies about launching makeup for women soon with high quality, professional and qualified workers, new features such us multi-tasking (foundation cream, lipsticks, mascara and eye shadow†¦) with suitable prices so clients could save money. The company is willing to spend lots of money on attractive advertisements for this new products. Cosmetics products serve women to look more shine and beautiful. As well as it will help them with suitable prices that we put. The products will have the brand logo and label, so that it distinguished from other makeup brands. However, the packaging it will be freak, clear and attractive also with low cost so the makeup won't be expensive. 6.2 Proposed price:Zara sits the price range depends on some factors such as countries, economy and number of costs, so every country has a different price of Zara's brand. Also, Germany has different prices from the UAE, so they have a high price for the products more than the UAE or other countries in the Middle East who have Zara Brand because the economy is different and the cost too. In addition, Zara tries to give people a good quality of clothes at affordable prices so that can bring a lot of profit for Zara. The pricing in Zara in the UAE is around 115AED – 500AED. Moreover, cosmetics like lipstick is 29 AED, blusher 20 AED, foundation 80 AED, eyeshadow plate 55 AED and mascara 32 AED. Value: Zara gives people one of the unique and fashionable clothes in the world with good price that all people can buy. Zara uses pull system in their stores and produce a small quantity of each style because of big numbers of styles that they produce each month. Zara uses a good manufacturing method to avoid any threat that they face such as some disruptions because the weather and factory problems which can effect on the production. In addition, it is an important for any company to build their values to make their brand one of the famous brand in the world, so Zara makes this value by the trust with their customers and give them a good quality of clothes. The value in Zara is around 13 billion in a year and more than 3 million customers around the world. Cost:The high cost requires a lot of money and profit to make a sustainable profitability. The advertising and store promotion cost 3.5% from their revenue, the company does not cost alt of money on their advertising but they said that the company invested around 450$ million on commercials and logistics area. In addition, the sales index's increased to 6%. Competitor: There are a lot of competitors of Zara such as H&M and Mango because they are two big companies that can make some challenge to Zara. There are some similarity and difference between these three companies such as Zara is product fast fashion for different categories like male, female and kids and H&M products for the same categories too but for practical and fashionable designs but Mango is special for only male and female without kids. The distribution in the world, H&M has more distributed in the world more than Zara and Mango so that can effect on the number of the profit too because H&M has a big profit in a year more than these two. The competitors also provide the similar techniques of promotion but Zara have to create creative and innovative promotion .For example in occasion it provide new collection with a good prices. 6.3 Proposed place:There are a lot of methods that Zara uses to be more distributed like having a lot of retail outlets in different countries.Also, Spain has a big number of Zara's shops in the world, so this is a kind of exclusive distribution. In UAE we have many stores of Zara which are located in Abu Dhabi, Dubai, AlAin and Sharjah. The survey results show that Zara company should open new brunches like in Fujairah and Ajman. We prefer to open Zara in each city in UAE because to make it easy to access to it.We also think that Zara has to open new section which is Makeup. Makeup attracts women to come and buy. Because of the quality and suitable prices that will support people to buy.If Zara makes offers this will cause more distribution and this will help Zara to be more effective. 6.4 Proposed promotion: The brand should focus on promotion to be more famous in the world and because a lot of people these days use the internet and websites to do shopping and see the new products so the brand should focus on website, some application like Facebook and Instagram help Zara to have a lot of customers from different countries. Nowadays, people use social media all the time, Zara has to join to social media to attract people by commercial advertising in Snapchat, Instagram, Facebook and YouTube. Moreover, release posters on the streets. Finally, they can put an advertisement in the cinema and television. In Dubai shopping festival, Zara takes the advantage of the opportunity and make offers that are the local people and foreigners happy with it. Conclusion Our report maintains data that we collected about Zara brand and how it began, who is the founder of, where is it location. Zara known as brand that has high quality of products and services that is it provides and manufacture. Zara organization is successful and the best brand between its competitors' and has huge number of clients. Also the Zara company continues to develop itself always in order to not lose the customers. The prices are reachable and suitable for all people. We included primary research a questionnaire survey to get the evaluation of Zara from people. References group, i. w. (n.d.). Market opportunity. Retrieved from investors world: http://www.investorwords.com/19306/market_opportunity.html#ixzz5CF7EiPeqinnovation, 7. (2013, November 13). Process Innovation – Zara. Retrieved from 7 innovation: https://7innovation.net/2013/11/13/process-innovation-zara/Lee, J. Y. (2015, May 12). Final zara marketing strategy . Retrieved from slide share: https://www.slideshare.net/JiYoungLee26/final-zara-marketing-strategyRuddick, G. (2014, October 20). How Zara became the world's biggest fashion retailer. Retrieved April 17, 2018, from https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11172562/How-Inditex-became-the-worlds-biggest-fashion-retailer.html Appendices: questionnaire 1. -clothes-shoes-perfumes 2. Do you think Zara shop prices suit everybody?-Yes-NO-Not sure3. Do you prefer or suggest to open new branch in your city?-Yes-No-Not sure4. Are you loyal customer to Zara store (e.g. have a customer card)?-yes-No-Not sure5. Are you satisfied with products and services that offered by Zara?-Yes-No-Not sure 6. What do you think of the quality of Zara products? -Excellent-Good-Poor-Very bad7. How often do you visit Zara? -weekly-monthly-once in a Yearly8. Does Zara's promotions attract you to come and buy?-yes-No-Somehow 9. What is special about Zara?-quality -prices-It offers all type of product (Perfumes, Bags, Dress and choses).10. Does Zara Company improve their products and services quality?-yes-No-Not sure