Zara is one of the largest fashion brands in the world

Zara has a very special approach to advertising. Zara spends just about 0.3% of its sales on ads promotion. It may be the reason why Zara does not appear on TV or poster ads. Zara focuses heavily on its product, location, and pricing as opposed to advertising. In comparison to other stores, Zara barely advertises and store sales or promotions other than new products

It is also important to keep in mind that Zara rarely places their name or logo on their products. Zaras sales staff do not need to rely on personal sales. It is their creative offerings and competitive pricing that bring consumers back in their store. In other words, their product seem to advertise themselves. The following is the breakdown of what has made Zara possibly the most innovative and devastating retailer in the world. The company spends just about 0.3% of its revenue on ads and doesnt have much promotion to think about. Considering that the industrys average advertising budget for retail is 3.5percent.

The fact that there is little inventory in stores creates this exclusivity feeling. Shoppers feel like they wont have to see the same shirt at work or school if they buy that shirt at Zara. While Zara is an excellent manufacturer of the commodity, it also capitalizes on the experience of the consumer by constantly providing reasons for consumers to visit the stores and capture the lates trends at reasonable prices. Zara has cultivated a loyal customer who return about six times a year, relative to many retailers in todays industry, where two or three returns a year are the norm. The easier and more easily a customer can maneuver around the store to discover and find hidden treasures, the better the experience, and Zara is nailing that. Most retailers are using the tactic of seeking to be fashion innovators, being trendsetters, and attracting early adopters. Yet instead of investing the money on R&D to be first on the market, Zara takes a totally different approach: fast fashion.

Shopper visit frequency at Zara is 2x to 3x higher than traditional womens wear, indicating strong brand loyalty. Zara has a highly-developed data infrastructure, which allows for a superefficient study of whats selling and whats being shared on social media sites. The two way contact between the consumer and Zara allows the continuous development of goods and services.

Personal commerce is the location where the consumers are, rather than the actual location where the brand is present. It is the lates delivery paradigm for retailers today: Providing brand interaction and offerings when and where the consumer wants it. Thats what Zara does for them.

Zara has invested tremendous time, money, and energy into creating a cohesive approach for online and offline retail. Through ways of technology and online connectivity, Zara connects the customers shopping experience and offers access to inventory that is not available in a particular area. Its a huge win for both the consumer and the company.

Zara has developed unique advantages by focusing on experience, trade, evangelism, and every place strategy for the consumer, rather than on the brands old product, size, promotion, and place model because the brand culture becomes so ingrained in the consumers mind, the consumer is the brand manager. Zara involves the consumer interactively in the decision making process. This is difference between Zara and the rest of the market.

QUESTION :

A. Do an analysis of why Zara can be successful without allocating large costs for advertising! And then provide suggestions on global marketing strategies that can be implemented by ZARA in the Digital era!

B. If you are a consultant for Zara in the Malaysia Area division: You are asked to create an IMC (Integrated Marketing Communication) program for Zara consumers in Malaysia. Describe your program, at least 5 IMC programs with a discussion of the advantages and disadvantages of each!