inditex ver. 2
DESCRIPTION
Presentation about inditexTRANSCRIPT
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I s l amov i c Nad i ra , Je lovac An i sa , Kok i c Dzenana , Luk i c Mar iana , Penkwi t z Ra f fae l , Schüt z Thomas
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AGENDA
• Introducing the brands• Brand Equity and the BCG Matrix• Product Life Cycle of the Retail Industry• Branding Decisions• Introducing exclusive brands: ZARA HOME• Further propositions and co-branding possibilites
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Introducing INDITEX• One of the world‘s largest fashion retail groups• Representative of the FAST FASHION Industry• Based in Arteixo (Galicia), Spain in 1963• More than 140.000 employees• Revenue in 2014: $18, 117 billion
8 BRANDS
6700 STORES
88 MARKETS
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BRAND EQUITY• ZARA – flagship brand, 64% of total income• Brand equity: 9.4 billion USD• Customer-based brand equity
HIGH BRAND AWARENESS &
HIGH COSTUMER LOYALTY
HIGH QUALITY FOR REASONABLE
PRICES
POSITIVE TRUSTWORTHY BRAND IMAGE
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The BCG Matrix• The Boston Consulting Group Matrix• Analytical tool for allocating resources• Used in brand marketing, product management, strategic
management, and portfolio analysis• Scatter graph through four different areas:• Cash cows• Dogs• Question marks/Problem Children• stars
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STARS• Build sales and
market share• Invest to maintain
position• Repell
competitive challenges
PROBLEM CHILDREN
• Build selectively• Focus on
defendable niche• Harvest or divest
the rest
DOGS• Harvest • Divest • Focus on
defendable niche
• Hold sales and market share
• Defend position• Use cash for other
projects
CASH COWS
MARKET SHARE
M
ARKE
T G
ROW
TH
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BCG Matrix for INDITEX
1160%
128%141%
166%113%
42%
55%
7%
Relative Market Share
Mark
et G
rowt
h
PROBLEM CHILDRENSTAR
DOGCASH COW
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Product Life Cycle of the Retail Industry
1. LAUNCH
2. GROWTH
3. MATURITY
4. DECLINE
Product Life Cycle in Retail Industry (Source: https://www.linkedin.com/pulse/20141017061020-115338191-product-life-cycle-
in-retail-industry)
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PLC in Retail and Factors • Heavy competition• Fast trends• Pricing• Discounts and offerings• The shortness of maturity phase
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INDITEX‘s PLC• Fast fashion industry representative• Constant change of products and designs• Fast production and distribution • Avoiding the decline phase• Constant re-introducing of new
products and lines
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Branding Decisions• Inditex multi-brand portfolio• Market orientation strategy & vertical
integration• No advertising promotion strategy• Design-Fashion follower• Stocking very little and updating collections often (twice a week) • Sustain the image of the brands that possess high
cultural capital and are competitive with today’s luxury brand• The brand of affordable luxury
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Exclusive Brands: ZARA HOME
• Created in 2003• Home design, bedding, tableware, dishware, decorative items
437STORES
48MARKETS
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ZARA HOME
• Intention: introduce more fashion into a slower moving market• Turnover in 2014: € 548 million• “They sell you a lifestyle. It’s very aspirational.”• Sales have doubled since 2009 – more than all of Inditex’s brands• Zara’s brand recognition is an advantage in this highly segmented
market
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Brand Extensions & Co-branding• Diverse brands = cover
various market segments• Multiple brands
compete in same categories• consumers can choose
between brands in the ‚family‘
• ZARA kids• Differentiation in:
prices, quality of products, geographically, demographically etc. • Example: extension in
market targeting students (school uniforms)
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Future Opportunities• Co-Branding activities: companies work together as an alliance to create
synergy effects throughout their brands• Opportunity: ZARA improving its shoe and handbag sales• ZARA launching a special shoe and handbag collection with the luxury brand
„Louboutin“• Future opportunities:
• Line extension
• Category extension
• Multi branding
• New brands and lines
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