Zara Company’s Distribution and Promotion Strategy Essay

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Updated: Mar 2nd, 2024

Distribution Strategy

Logistics

Logistics entails the free circulation of commodities from production units to target customers for total satisfaction. It incorporates the integration of information, movement of goods, stocking, storage, casing, and safety (Gelder & Woodcock, 2003). Zara possesses lucrative logistics that commits fully to the customer’s contentment. Its logistics adds value to the time and place efficacy. The company ensures timely remittance of clothing from its production unit to numerous stores internationally. It considers the changing trends and fashion that engulfs the textile industry thus enduring the frequently changing market demands. The logistics department considers supplying dissimilar stores with varied stocks depending on the needs and the market segment of that particular locality (Sull & Turconi, 2008).

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Physical Facility

Physical facilities incorporate numerous company structures, shops, and machineries that aid their daily operations. The company has production facilities and a skilled workforce, which ensure timely production of trendy clothing demanded by the market. Concurrently, the company locates its vend shops at strategic places where clients can easily access their products (Sull & Turconi, 2008). Conversely, Zara hardly invests in mass media promotional campaigns, but rather focuses on the less glamorous in-store and point-of-sale endorsement. Zara depends on shop windows to converse its trademark figure. Equally, it exploits client interaction to enhance their number. Additionally, it locates stores on some of the most up-market and high-traffic avenues of each city it storms.

Competitive Advantage/Distribution

Zara has emerged with numerous competitive advantages over its other rivals like Topshop and H&M. They own their in-house production unit thus able to supply their retail shops with adequate stock in real-time compared to their entrants (Hill & Jones, 2007).

Evidently, the organization has an impressive logistic strategy. Being in possession of an in-house production mechanism where it designs and produces its fashionable clothing, Zara guarantees its clients flexibility in the variety, quantity, and regularity of novel styles. Another competitive advantage the organization exploits upon its entrants in terms of distribution is its well-coordinated allotment system where specific commodities are produced for specific retail shops depending on the demand in that particular shop. H&M and Topshop have barely achieved such advantages. Concurrently, Zara enjoys the capability of singling the opportunities in the agitating fashion trends (Hill & Jones, 2007).

Promotion Strategy

Promotional MIX

The promotional mix utilized by Zara entails “advertising, personal selling, sales promotion, publicity, and public relations” (Gelder & Woodcock, 2003). The company indulges in strategized advertisements for varieties of its products ranging from footwear to caps. Sales promotion targets to keep the product image in client’s minds. It engages in offering free samples and discounts. Advertisements involve the use of mass media to reach bountiful people at once. Zara hardly utilizes this aspect of communication mix but rather employs other in-house mechanisms where customers are handled with desirable dignity.

Integration of the Marketing MIX

Zara incorporates the 4Ps of marketing tactics to aid the promotion of its commodities. These incorporate granting fair prices, production of quality products, tactful promotion, and exploitation of appropriate places where customer responses are affirmative (Hoffmann, 2008).

Competitive Advantage in Promotion

The competitive advantage enjoyed by Zara over its rivals incorporates appropriate promotion strategies plus a tactful promotion mix. This makes its products to have a fair market capture despite the Mango, Benetton, H&M, and Topshop’s stern rivalry. Zara has transfigured the fashion industry by exploiting a strategy called fast fashion and democratizing dressmaking thus emerging with trendy and inexpensive items to the masses (Christopher & Peck 2003).

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References

Christopher, M. & Peck, H. (2003). Marketing logistics. Massachusetts, MA: Butterworth-Heinemann.

Gelder, D. & Woodcock, P. (2003). Marketing and promotional strategy. Cheltenham: NelsonThornes.

Hill, C. & Jones, G. (2007). Strategic management: an integrated approach Massachusetts, MA: Cengage Learning.

Hoffmann, S. (2008). Are the 4 P’s of International Marketing of Equal Importance to All Firms? What Factors Might Cause Some to More Or Less Important Than Others?: A Short Article. Norderstedt: GRIN Verlag.

Sull, D. & Turconi, S. (2008). Fast fassions lessons. London: London business school.

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IvyPanda. 2024. "Zara Company's Distribution and Promotion Strategy." March 2, 2024. https://ivypanda.com/essays/zara-companys-distribution-and-promotion-strategy/.

1. IvyPanda. "Zara Company's Distribution and Promotion Strategy." March 2, 2024. https://ivypanda.com/essays/zara-companys-distribution-and-promotion-strategy/.


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IvyPanda. "Zara Company's Distribution and Promotion Strategy." March 2, 2024. https://ivypanda.com/essays/zara-companys-distribution-and-promotion-strategy/.

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