In: Economics
Briefly describe the background of ZARA company?
ZARA is Spanish and more than 4 decades old company. It was founded by Amatio Ortega in the year 1975. It is flagship chain brand of the multiple brand association group known as inditex. The company specialises in fast fashion include accesories, clothing, footwear, swimwear etc.
What type of marketing communication means they use to promoto their product and analysing the effectiveness .
Although ZARA doesn't spend much on advertising and rather focuses on its real estate and word of mouth communication marketing strategy. It does use social media to reach upto it's customers base .
ZARA doesn't believe in advertising on market but rather being the fastest than being the first. It copycat the hingh -end brand trends and provides its customer base of teens and 20s variety of options and affordability as well.
Instead of establishing itself as a trend setter, it spends money on its R & D and to be the first to market as its approach is to be in the market as fast as one can .
ZARA's exclusivity is another factor that draws customers towards their store. It helps in making an image in the minds of being as being unique and not easily available for anyone and everyone. Instead of spending money on marketing and advertising, it spends money on careful choice of its stores location and placement which is indirectly a marketing tactic yet a clever business move.