Sample Essay

Zara´s promotion strategy is the same in the domestic and foreign markets. Advertisement campaigns are carried out only at the beginning of sales or new openings. Store is its main promotional tool. Prices of products may vary region-wise, as prices are defined centrally following a market-oriented strategy. Prices in international markets are generally higher due to longer distribution channels (Ghemawar, 2003).Decision regarding the store’s location is always a critical one in international markets. All shops run by Zara are situated at prime locations. This decision is highly dependent on an analysis of the local market environment identifying niche opportunities for Zara´s products in those markets, the price of competitors’ products and the recommended price to achieve a maximum level of profitability (Caso Zara: el tejido internacional, 1996). Zara standardizes all strategic elements, the location, window display, interior design, store layout, store display rotation, customer service, information systems and logistics. The rest of the elements are customized to the market to suit local preferences (Zara. El modelo de negocio de Inditex, Claves de gestion, 2004).

Zara has redefined itself as Inditex’s bastion brand, from a local brand, to a global brand in less than two decades. The brand image and positioning of the firm is highly adapted to fit local requirements (Zara. El modelo de negocio de Inditex, Claves de gestion, 2004) since consumers perceive fashion products as culture-bond. Zara brand was ranked 77th in the list of the world’s 100 best known brands created every year by Interbrand and has overtaken fashion brands like Hermes, Prada and Armani. All Zara´s products are labeled following a following a two-tone brand-name strategy (Riezebos, 2003). The company uses its own name concatenated with a unique brand name for the same product group. Examples of these sub-brands are `Zara Woman´, `Zara Basic´ and `Zara Trafaluc´.

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