Nimish Wadhwa

Saloni Vij
Aanchal Chozzer
Akarsh Jain
Shubham Aggarwal
The beginning of Zara & Ansoff’s Matrix

• Zara started as a brand of look-a-likes of high end, expensive

brands. Gave it presence of 8-9 stores in biggest cities of
Spain.
• Market Penetration – Saw the weakness in competitors and
made current customers buy more. Can enter a new product
within 3 weeks.
• Market Development – Identifies potential customers in
current area. Always looks to enter new location. Has online
presence in 202 countries and 96 countries with stores.
• Product Development – Have approximately 200 teams
looking for new fashion designs at catwalks, airports,
shopping areas and big events helping them produce almost
12,000 new designs each year. Focus on quality designs and
not quantity of designs, new designs always available.
• Diversification – Zara has always tried to expand their
business from apparels, they got into colognes, bags and now
are trying to push sales of Zara Home.
 BCG Matrix
HIGH Relative Market Share LOW

Star Question Mark

• TRF (Trafaluc)
• Night Wear
Market Growth Opportunity

• Look-a-likes of
• Accessories
High End Brands

Cash Cow Dog

• High End and • ZARA Home
Low End Basics

• Men and
Women Lowers
 Generic Strategy
• Zara uses differentiation as their Generic
strategy by attracting customers to buy their
products not by prices or quality but first the
Designs and styles they offer in the best
locations in the market in a BIG store.
• Yes, prices are also comparatively
less but at times it is not their focus.
($200 for these high leg boots is not
cheap)
 Pioneer or Follower
• It is very evident that ZARA is a pioneer in this
segment of Fast Fashion Apparels.
• It retains it’s market share by the 3 main pillars :-
⁻ Fast Product Development
⁻ Manufacturing and quickly delivering latest
fashion trends
⁻ Pricing – Affordable as well as high profit making.
 Porter’s Five Forces Model
Threat of
New in
• High investments
Rivalry
setting upEntrants
stores
• Established brand name

• Major competitors
Threat of
• Local Brands
• ZARA still holds Major
market share • MajorSubstitute
Competitors like H&M
• No big threat in Retail fast GAP and Armani
fashion • Online Multi Brand Stores

Supplier
Power
• Increasing Liberalization • Highly Competitive
in Global Trade Buyer Market
• Increasing no. of Suppliers Power• Many Options
of good quaility clothing
 Growth Market of Zara
• Zara as a brand is having a significant slow
growth and the parent company is also
worried about it.
• Now, talking about growth markets for Zara,
Zara is always trying to grow in it’s market by
adopting the fashion trends ASAP.
• They also came out with ZARA HOME so as to
grow in the Mid-Luxury home furnishings.
Strategy used by ZARA at different occasions

• In 2009, ZARA acknowledged the fact that it’s

competitive advantage is it’s logistics.
• So, as to expand further they setup the second
distribution center in Zaragoza, Spain which was
strategically placed.
• Confrontational Attack by ZARA when they
channeled all the funds towards Logistics,
Placement of stores and styling rather than
advertisements.
• Fortress strategy used by ZARA to retain it’s
current customer base by setting up loyalty
programs in European countries (according to
EuroMonitor, 2009)
 ZARA against it’s competitor
• H&M, ZARA’s major competitor has never been to
able to beat ZARA’s logistics and made it’s own place
of providing very cool and funky designs to teens.
• ZARA on the other hand keeps such designs on store
to compete with H&M and build new customers.
And tries the Flanker Strategy.
• ZARA also has a whole range of basic clothing to be
present in every category of clothing and not lose on
customers.