Design and raw material sourcing Figure 3: Production and logistics Figure 4: Distribution and store sales Figure 5: Sample Zara price tag Appendix IV:
This company is considered as the second largest retailer in the fashion segment after the Inditex parent company of Zara. Company has earned revenue of SEK Each party in the system would add value while going to the next level. Hence success of an organization not only depends upon its own action but also on the coordination which is achieved through external environmental forces as well.
So there is proper coordination between various stakeholders of the organization. There is little difference on the AMA website for the marketing definition and this website define marketing as the organizational function and set of processes for creation, communication and delivery of value to consumers and managing customer relationship efforts for developing effective marketing communication so that organizational stakeholders can be benefited.
Market orientation can be considered as the culture of an organization which is committed to develop the continuous creation of the superior customer value. It has been observed that business organizations generally report very low success rate in order to develop such a business culture.
There can be three alternate available to the business organizations to adopt the marketing orientation and these are given as under: Many business organizations consider their problem for selling more of the products or services which are already available with them.
These business organizations are expected to make most of their selling, promotion and distribution skills. These businesses would be similar to the marketing orientation business in general.
Product orientation of a business organization would establish that business organizations are obsessed with their own products. These businesses may face issues at the times of dynamic change in technology or consumer taste.
Production orientation business is not similar to the product orientation and the focus of business organization here is on producing as many goods as they can. Business organizations under this orientation would aim at producing in large quantities and tend to leverage on economies of scale so as to maximize its benefits.
In production concept need of consumers would be secondary and primary aspect in the business would be developing higher number of units though production system.
This orientation would be helpful in business organizations wherein business potential is very high in future and there is large scope for implementing economies of scale.
Development of the present product line for the men segments in US has been done keeping in mind the consumer requirements and marketing research pertaining to particular markets. US markets for men clothing are considered as the non trendy as male consumers in US are not looking for latest fashion clothes as compared with the female consumers in the US markets.
Further present product line is such that it meets the consumer requirement for low price being average or low priced on the newly launched products as well.
New prospect development can be defined as the process of exploring set of consumer base for the new product or into the new market for the organization. New prospect development of these products would include idea generation, idea screening, business analysis, product development, test marketing and commercialization.
New product ideas would be generated through different sources, unsound concepts would be eliminated from available ideas, business analysis would be done in order to estimate profitability of the ideas, test marketing would be done in order to test the variability in marketing plan and final stage would be to commercialize the idea.
Hence online store at one side would be beneficial for the organization in order to reduce operational cost while exclusive stores would allow consumers to have greater access to the clothes in their nearby regions.
There can be mainly five pricing strategies which are adopted by business organizations in order to appropriately define their price for maximization business profits and customer value delivery system.
These five pricing strategies are premium pricing, penetration pricing, economy pricing, price skimming and psychological pricing. In economy pricing business organizations keep basic prices and nothing fancy e.
Price skimming is being used by the businesses having competitive advantage and these business organizations enter with high price and reduces prices as competition starts building in the market.
Psychological pricing is established in consumer price so as to develop perception of lower price e. Importance of pricing can be highlighted in terms of generating income from the products, denoting high quality for the high price, competitive advantage can be developed through low pricing strategy.
Usage of different marketing channels would reinforce of usage for each other. As shown in the figure 2 above that mixture of traditional media tools such as TV, Radio and print, promotions such as consumer offer, discounts and usage of social media would form the complete promotional strategy for the organization.
Promotion mix for any organization has been given above wherein advertising; direct marketing, publicity and sales promotions have been used Harrell, Advertising is the paid presentation of the product or ideas, sales promotions are media or non media communication used to increase demand, direct marketing would allow businesses to directly communicate with consumers and publicity is the process of marketing products or services through indirect ways.
Presentation and demonstration would be made in order to brief about the special discount offered to the consumers from particular corporate.
Objectives would be framed in terms of sales target and call would be closed by getting the order from B2B customers.Zara uses the strategy of Market orientation. This strategy is used for creating customer value by a focusing on the customer throughout the vertical organization of the company.
The whole business model of Inditex (its parent brand) is characterized by a high degree of vertical integration . The role of market orientation on company performance through the development of sustainable competitive advantage: The Inditex-Zara case.
The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case and examines Zara, a strategic unit in the Inditex group, which is shown to be a paradigmatic example of the development of market orientation in a company, as a basis for the company's performance and.
Zara – the flagship brand, with versatile and trendy options for men, women, and children. While it started as a low cost competitor, its quality now matches the best brands in the world. to develop their corporate social responsibility policy.
Some examples of partnerships Inditex maintains include: the UN Global Compact, the CEO Water. This report contains the first of the case studies carried out in the context of this research, and examines Zara, a strategic unit in the Inditex group, which is shown to be a paradigmatic example of the development of market orientation in a company, as a basis for the company's performance and competitive advantages.
Inditex and Zara: a paradigmatic example of market orientation We will now discuss what marketing’s role has been in the evolution of the Inditex group Using the literature on the subject as a basis for observation, a series of values, beliefs and clear determinant basic organisational rules are to be observed in Inditex/Zara, which show the implementation of market orientation.