Marketing Supply Chain Management and Zara - 2184 Words

ee Designing a Customer-Driven Strateg y and Mix VIDEoCase Progressive Progressive has attained top-tier status in the insurance industry by focusing on innovation. Progressive was the first company to offer drive-in claims services, installment payment of premiums, and 24/7 customer service. But some of Progressive s most innovative moves involve its channels of distribution. Whereas most insurance companies distribute their products to consumers via intermediary agents or direct-to-consumer methods, Progressive was one of the first companies to recognize the value in doing both. In the late 19805, it augmented its agency distribution with a direct toll-free-number channel. In 1995, Progressive moved into the future by†¦show more content†¦11 5 also prolific. In a typical year, Zara launches about 11,000 new items. Compare that to the 2,000 to 4,000 items introduced by bot h HM and Gap. In the fashion world, this difference is huge. Zara stores receive new merchandise two to three times each week, whereas most dothing retailers get large shipments on a seasonal basis, four to six times per year. As part of its strategy to introduce more new items with greater frequency, Zara also produces items in smaller batches. Thus, it assumes less risk if an item doesn t sell well. But smaller batches also means exclusivity, a unique benefit from a massmarket retailer that draws young fashionistas through Zara s doors like a magnet. When items sell out, they are not restocked with another shipment. Instead, the next Zara shipment contains something new, something different. Popular items can appear and disappear within a week. Consumers know that if they like something, they have to buy it or miss out. Customers are enticed to check out store stock more often, leading to very high levels of repeat patronage. But it also means that Zara doesn t have to follow the industry pattern of marking products down as the season progresses. Thus, Zara reaps the benefit of prices that average much closer to the list price. THE VERTICAL SECRET TO ZARA S SUCCESS Just how does Zara achieve such mind-blowing responsiveness? The answer lies in its distribution system. InShow MoreRelatedZara As A Flagship Brand Under The Inditex Company1372 Words   |  6 Pagesovercome challenges to keep up with the changing times. Zara, a flagship brand under the Inditex Company (Industrias de Deseno Texti S.A) founded in 1975, achieving huge success within the retail industry in most focuses of operation. ZARA spend minimal money on their marketing campaign which would make you question, how is ZARA so successful? The answer is their effective, fast supply chain. According to McMillan and Mullen (Operations Management Vol-2, 2002), â€Å"the purpose of SCM is to integrate allRead MoreZaras Case Study1373 Words   |  6 Pages1. What is Zara’s value Proposition? How does it differ from its Competitors? â€Å"Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)† (Grant, 2010, p.212) According to Clayton Christensen in order to process you Value Proposition you must look at the following (Harvard BusinessRead MoreZara- Rapid-Fire Fulfillment1006 Words   |  5 PagesZara-Rapid Fire Fulfillment BUS3022/Fundamentals of Supply Chain Management August 19, 2013 Oliver Schwabe Zara-Rapid Fire Fulfillment It is becoming apparent that the ever changing environment in the global marketplace requires a swifter response time from businesses and their supply chains. The era when production was moved overseas, so businesses can take advantage of low-cost labor is coming to an end, because businesses are not only competing on price but also on time. TheRead MoreZara: It for Fast Fashion1266 Words   |  6 Pagesand the fast fashion trend. By assessing the pros and cons of the new IT infrastructure with Zara’s brand image, they determined that implementing the new POS networking system is beneficial for Zara because 1) it creates a more robust and scalable system that is more responsive to Inditex’s supply chain network, 2) it removes the risk of the system becoming obsolete and no longer compatible with vendor’s machine upgrade, and 3) it helps to maintain and improve efficiency of decentralization becauseRead MoreZar Business Model And Marketing Tactics1308 Word s   |  6 PagesOL3 Zara Zara is an international retailer that is continuously growing in popularity due to the store’s trend-sensitive and affordable styles. Inditex, Zara’s distribution group, is one of Spain’s greatest successes in that they have dominated the global market. Their unique business model and marketing tactics have a lot to do with this company’s worldwide success. This retailer exhibits a creative and eco-friendly business plan that integrates design, just-in-time production, marketing and salesRead MoreFast Fashion Industry: Growth of Zara and Inditex Essay1532 Words   |  7 Pagesfast fashion approach is Zara (Hayes Jones, 2006). Zara is a child company of the parent company Inditex. Zara stores have established the stride for merchants around the globe in creating and shipping fashionable clothing (â€Å"Case 3-4. Continued Growth for Zara and Inditex†, 2013). Their marketing approach has helped them become extremely successful in terms of provi ding the customer with. International marketing strategies and its efficiency assists in the expansion of Zara. Cultural understandingRead MoreZara s Supply Chain Of Zara1300 Words   |  6 PagesZara’s Supply Chain Zara is characterized by its unique and rapid-fire supply chain that is governed by the vertically integrated system that links their shops, designers, and distribution system. The key players in this system are the wholesalers and retailers, so controlling the activities of those mark the success of the business. Zara’s system is so integrated that makes it hard for other competitors to nail the starting point of a similar product. In the Design Phase, 300 professional designersRead MoreZara Postponement Strategy1702 Words   |  7 Pagesï » ¿The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers. Mass customization has become a requirement for many businesses especially in the dynamic, fast-changing industries. However, the more product varieties, the more difficult it is to forecast demand, control inventory and manufactureRead MoreZara E-Business672 Words   |  3 PagesBackground Zara, part of Spanish giant Inditex Group, provides clothing products to customers demanding fast fashion that looks like high fashion at lower prices. It has been considered as the most remarkable fast fashion company of the 21st century. In order to understand and analyze the dynamics of the sector and the current state of Zara, Porter’s Five Forces and SWOT analysis will be used. E-Marketing The key elements of Zara’s e-marketing strategy include social media, viral marketing, emailRead MoreZara Case620 Words   |  3 Pages  Ã‚  Ã‚  Zara’s Value Chain (Zara Case) Zara’s value chain differs from the other traditional models a lot. The design and creation rely extensively on copying fashion trends observed at the fashion shoes and at competitors’ points of sale, which based on buyers and designers alike. Value Chain Zara’s value chain is supported by each primary and secondary activity in which it has a substantial value –creating activity. The primary activities are based on Zara’s purchase supplies and inbound, operations