Table of Contents
- Market Segmentation
- Market Target
- Market Position
Zara is one of the top retailers which sell fashionable and affordable clothes for both genders. It first made its mark in Spain , where they started their first outlet. Other than sale of clothes they also offer other products such as perfumes and accessories. They change their designs according to what is in trend because Zara has a group of designers who will do surveys as well as see what the customer like in order to cater to consumers. Zara also does its own manufacturing, designing and distribution which helps get new design to outlets all around the world . Zara also doesn’t spend a lot of revenue on advertising instead spent more on building more stores. Zara is able to design a new product and have goods finished in its store in 1 to 2 weeks. Zara can modify and change its existing item in less than two weeks therefore making the product life cycle significantly shorter. Which means Zara is able to accurately meet consumer preference. Zara has a policy that if a product does not sell within a week or two, orders are cancelled and a new design is pursued.
Zara segments their market by mainly using Geographic and Psychographic segmentation. Firstly, Zara knows what kind of customers they attract which is why Zara shops are mostly located in urban areas. As customers will have different needs based on the geography they are located in. People who live in urban or town areas are mostly middle class or upper class customers .They live nearer bigger shopping malls which will be more convenient for them as it is nearer and easily accessible. And plus tourists will usually shop at Zara as it is well known and popular in European countries. Zara knows what kind of clothes may not be so popular in any place in the world. They have also expand their market to Asia, Asians fashion trend is fast fashion which is suitable to their income, availability and convivence that is also the reason why Zara is so popular in Asia countries. Hence Geographic segmentation is one of the more highly effective segmentations. Secondly Zara Psychographic segmentation is targeted to consumers who are interested in fashion trends as well as clothes that can be worn on a daily basis not only once. Zara markets itself on lifestyle where customers who want the latest and differential clothing can visit the Zara stores. Zara also markets itself as “ exclusivity ” as they design and distribute to the market in just fifteen days. Zara knows what its mass consumers wants which is new and updated fashion trends and accordingly it targets customers based exclusively on its design.
Zara targets consumers who are between the age as young as 2 years old to 40+ years old, as they produce clothing for all ages. Zara main target is primarily women and their primary age group is between 18 – 40+. Zara look for women who likes to be fashionable but at an affordable cost. The everyday women wants to be well dressed wherever they go. They can be managers, moms , students. Some of them work near busy streets which is why majority of the shops are located this areas and stay home moms if they are shopping for their children. They can even just shop for themselves, they might go to look if Zara has any new designs. Students who usually are very brand conscious will shop at Zara as it is known as a top brand in Europe. They might be influence by their friends who shop often at Zara as well. It doesn’t matter if they are married , single , they will still browse the stores every two or three weeks. The secondary target consumers are men who are between the age of 18 – 40 +. Men who like fashion aren’t as particular and doesn’t want fashion where it is taken to the extreme. They just want to well dress and presentable no matter if it’s a big function dinner , work or just everyday wear. All in all the market target are consumers who care about fashion but don’t want to spent a lot of money , which is why Zara is such a hit with many consumers. It is affordable yet offer highly fashionable pieces of clothing and doesn’t go too crazy about their own design because they know what their market target likes.
The market positioning of Zara is “ affordable fast fashion ” which is what it prides and promotes itself for. Zara has become a world class brand starting from its popularity in Europe slowly expand into other markets. The reason Zara is very effective in their market position is because Zara doesn’t not rely on named designers like other brands like Gucci , Prada etc. Zara emphasis more on fast design , fast production , quality of the clothing, fastest speed in response to what is in demand as well as fast sales. Zara does not keep designs for very long as fashion trends changes very fast in the fashion market. As said in the market target the main mass consumers are between the age of 18 – 40++, they are more sensitive to fashion but do not or unable to buy designer brands which might not be in their budget range. Therefore , in order to meet the main consumer demand , Zara created a fast fashion model and it has been a great success under current market trends.
In conclusion, Zara is able to be so success because of how fast they are able to produce and the designs are never the same making their clothes “ exclusive ”. Zara segment the market by using geographic and psychographic segmentation. They are also able to attract their target market because they know what their main mass consumers think as well as what they like or don’t like. Zara positions itself as a “ affordable fast fashion ” which is why consumers shop at Zara because Zara is what it promotes itself to be. A brand that sells fashionable yet affordable clothing.