Fashion marketing Prada and Zara - Essay Example

Fashion Marketing of the affiliation Fashion Marketing Prada was established in 1913, rising to become one of the most notable brands in the fashion industries, majoring in clothes and luxury goods. Created by Mario Prada, the bands trademarks have gained global recognition in the fashion industry (Prada, 2014). The company has invested heavily in marketing its products, popularizing them to the level of being the choice of the Royal family who prefer the design of the Savoy Coat of arms. Prada has a rich history in fashion marketing and embodies the latest strategies in its ventures (Vogue, 2010). On the other hand, Zara is a brand of fashion under the Inditex Group. Amancio Ortega created the brand in 1975 from when it has used clear strategies to beat the tight competition and gain world recognition. The company thrives on innovation, mostly coming up with new concepts that pioneer the industry trends. The company uses lucrative strategies, choosing not to advertise its products and channel the funds to other projects (Banville, 2014). Since its inception, the company has experienced tremendous growth and has a tremendous market share in the fashion industry. Most market researchers call the brand a devastating competitor and the coverage of this product is wide, serving markets all over the world. Independent retailer and a franchisee Zara and Prada have major differences in operation and organizations, which individually lead to their success. Zara is an independent retailer, preferring to open stores in most of the cities where they think they can get the most customers. The company does not use any advertisements for the products or stores, unlike Prada, mostly preferring to utilize the resources to open more stores and develop the business to meet the ever-changing demands in the fashion industry (Jham, 2014, p. 72). However, the company may also prefer to use franchising techniques as the route of expansion when the legal requirements forbid the company to open independently owned stores. The franchised stores operate just like the other company owned stores, with specific terms of the contract being outlined at the signing of the contract. On the other hand, Prada utilizes only one of the strategies given above, majoring in opening up of new stores in areas where the stores are remote. The company does not have specific franchising contracts with other entrepreneurs and prefers to operate its own stores using its company arrangements. The expansion of the retail stores has grown since 1986, when the brand first moved out of Italy to destinations like New York and Madrid. Other stores followed in France and Japan, and the establishment female fashion shows to promote its products (Prada, 2014). As part of its strategy to explore new markets, the company continues to open its stores all over the world and popularizing its brands through fashion shows, promotions as well as projects that are geared towards improving the brand (Prada, 2014). Upscale department store and a popular department store Zara’s strategies are unique, preferring to be an upscale department store. The company least seeks to popularize itself or publicize its success or that of the Inditex group. In addition, its founder and former chairperson was reluctant to give any interviews or attend any corporate functions (Hansen, 2012). The company operates in a laid-back perspective, relying mostly on the brands to attract more customers and market the other products. The company’s center of operations in La Coruna presents a cool, serene environment, which speaks more about the nature of its services (Cateora, & Gilly, 2013, p. 103). The company thrives on its innovations, rising as one of the pioneers in the fast fashion industry. The company delights in designing trendy products that are very decent, but affordable to the customers. This has made the uptown retailer a king in its own league. On the other hand, Prada is a popular department store, majoring in advertising and popularizing it in the public scene (Vogue, 2010). The company seeks to come up with the best quality and setting the trend of fashion in the industry. The company’s strategies lie in its popularity, participating in many events like fashion shows and promotions to popularize its brand. On the other hand, the company uses many publicity stunts and the Prada journal is just one of the ways in which Prada gains its massive publicity and success in the fashion industry (Prada, 2014). Luxury retailer and a value retailer Prada gains its recognition mostly from its trendy fashion that produces a luxury touch to the customers. The company’s innovative producers include fancy customized clothing as well as eyewear, fragrances and much more (Prada, 2014). Although the company’s products appear expensive, their trendy look and unmatched fashion make its customers come back every time. On the other hand, Zara seeks to give more value than just luxury to the consumers, as compared to Prada (Tungate, 2008, p. 103). The company seeks to produce decent clothes, in an innovative and creative way that adds value to the end consumers of the product. Most of Zara’s clothing is trendy, embracing the current trends and fashion, but are aimed at giving value to the customers (Hansen, 2012). . Fast fashion retailer and a conventional retailer The Inditex owned Zara is a leading player in the fast fashion industry, competing mostly to produce and imitate the latest designs and fashion that the industry that the industry has to offer. The Inditex brands embrace a short product cycle to match the speed of the creativity and innovation in the industry. Zara seeks to offer its customers with new products in the shortest time possible, but delivering the most quality of products that the industry has to offer. The fast fashion industry requires the quick adoption and implementation of trends as the route towards success, and this is what Zara embraces (Jham, 2014, p. 81). On the other hand, Prada is a conventional retailer, offering the best products that the industry has to offer. The company competes with other similar stores in sales and performance of the brands, as well as the creativity that the products embody (Vogue, 2010). In addition, the company thrives on its unique brands made of original lasting materials, innovation in craftsmanship as well as the sophistication of the design and not necessarily the speed at which the products reach the customers like Zara. Current and future performance Prada has maintained a good streak of performance over the years with the growing trends in performance and expansion. As of July 2010, the company had 250 stores owned by the company, with projected expansion of 30 new stores by the end of that year in more than 70 countries (Brooke, 2005, p. 45). The company made remarkable improvements in performance, registering a rise in the company’s profits in the year 2012. Although allegations of tax evasion had been leveled against the company in 2011, the company aims at opening more stores in destinations around the world, and increasing its profit margin in the year 2014 by more than 50% in 2014 (Vogue, 2010). Zara on the other hand continues to experience good performance in its stalls and a 2013 report indicated that its stalls in India were performing better than the country’s most profitable jeweler chain Tanishq (ET Bureau, 2013). On the other hand, the Inditex group’s annual sales have reached 13 billion dollars and expanded its employee enrollment for more than one hundred thousand in the year 2011.The company has more than 1500 stores in over 70 countries around the globe (Balla, 2014). The company projects an increasing number of new stores to be opened as well as expansion of its market to other destinations in America, Asia and Africa. The retailing mix Products 1. Zara puts more effort in creating more value for the products in contrast to Prada. On the other hand, Prada strives to meet the expectations of their market to come up with those goods that the consumers prefer. 2. Further, Zara has a very short product cycle to meet the demands of consumers in the fast fashion industry, mostly being around two weeks (Banville, 2014). Prada on the other hand has a longer product cycle and seeks to meet the demands of their wide cover of clients. 3. However, both companies develop areas of superiority of their products and maximize their advantage in selected markets where they have a competitive advantage. Price 1. Zara offers cheaper prices for its products, which are affordable, and customer friendly. On the other hand, Prada offers, prices equal to the value of the products being offered. For example, a T-shirt in a Zara shop may go for $30, being sold in a more trendy form in Prada for double the price (Hansen, 2012). 2. However, both companies are open to revising their prices at any time, a move towards remaining competitive and maintaining their customers. Place 1. Both companies engage in retail store business as the route towards availing the products to their customers. 2. However, Prada competes to get good locations to popularize its brands, mostly situating its stores in strategic locations (Brooke, 2005, p. 40). 3. On the other hand, Zara mostly locates its stores depending on how fast products can be delivered to the stores to reduce the time taken between the manufacture and sale of products (Hansen, 2012). Promotion 1. Prada uses many strategies in promoting, constantly organizing fashion shows, catwalks as well as corporate conferences and the mass media for advertisements (Finerman, 2010, p. 84). 2. On the other hand, Zara is conservative to use any means of promotion, mostly focusing their energies and resources towards the creation of more products and opening other stores (Hansen, 2012). Physical evidence 1. Both sellers seek to maintain the best customer service, and provide value to the consumer of the product. 2. As opposed to Prada’s aim of satisfying to the consumer of their products, Zara aims at giving value of the product to the target consumer. People 1. The level of training needed for Prada’s employees is high and its people are taught to embrace the company values. 2. On the other hand, the growing number of employees in Zara creates a platform for developing the personnel to promote their services for the company (Jham, 2014, p. 52). 3. Both companies further ensure that their people are well motivated and can handle the growing demands of the industry. Process 1. Prada employs good communication with the public through their relations managers as compared to Zara, which is soft spoken in most of its affairs (Peñaloza, & Toulouse, 2012, p. 71). 2. However, the companies tune their processes to satisfy the customer, and make it convenient for them to find the required items. 3. Both companies also streamline their processes to make feedback possible and appropriate for the improvement of services. The SCLEPTE analysis The society Most people love the brands and buy their products The tastes and preferences of the community area major boost Culture The traditional cultures of the home countries of Zara and Prada contribute to most of their brands. The growing trends in fashion further impact positively on their performance. The legal Legislations are favorable in most countries for the companies However, Zara franchises in those that the requirements do not accept foreign stores Economic Favorable economic patterns provide success for the two companies especially in Europe. Changes in consumption patterns for luxury goods may affect Prada’s performance. Political Political trends have been favorable promoting the growth of the industry. However, Prada has experienced politicized scandals with tax authorities affecting performance Technology Technology has helped Zara reduce its product cycle, which is shorter than that of Prada However, Prada utilizes technology to develop most of its profitable luxury products (Prada, 2014). Environmental Both companies embrace good, environmentally friendly practices in their processes. The SWOT ANALYSIS Strengths Weaknesses Opportunities Threats Zara Short product cycle Innovative ability Many stores Lack of marketing strategy Technological changes may boost services Threat of stiff competition Prada Efficient marketing strategy Many stores Unending political scandals Use franchising stores in other locations Stiff competition The BCG analysis Stars Question marks Cash cows Dogs Where is Prada and is Zara, both are highly profitable and strive to maintain their brands through reinvestment in the cash cows. However, Prada has a higher chance of growth compared to Prada in the star category. However, both rank highly in the question marks and dos category because of their steady earnings and positive cash flows. References Balla, R. (2014). ZARA: About ZARA (History). Retrieved March 14, 2014, from http://ranjithaballa.blogspot.co.uk/2012/09/about-zara-history.html Banville , S. (2014). Zara: Business English Materials.com: ESL Lessons. Retrieved March 14, 2014, from http://www.businessenglishmaterials.com/zara.html Brooke, S. (2005). 2cool2btrue. New York: Downtown Press. Cateora, P. R., & Gilly, M. C. (2013). International marketing. New York: McGraw-Hill Irwin. ET Bureau (2013, July 3). Articles about Zara - Economic Times. Retrieved March 14, 2014, from http://articles.economictimes.indiatimes.com/keyword/zara Finerman, W., & McKenna, A. B. (2010). Triple feature: The devil wears Prada ; In her shoes ; Working girl. Beverly Hills, Calif: 20th Century Fox Home Entertainment. HANSEN, S. (2012, November 9). How Zara Grew Into the World’s Largest Fashion Retailer - NYTimes.com. Retrieved March 14, 2014, from http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largest-fashion-retailer.html?pagewanted=all&_r=0 Jham, V. (2014). Cases on Consumer-Centric Marketing Management. Hershey, PA: IGI Global. Peñaloza, L., & Toulouse, N. (2012). Marketing management: A cultural perspective / edited by Lisa Peñaloza, Nil Toulouse and Luca M. Visconti. Abingdon, Oxon: Routledge. Prada (2014). Prada Group. Retrieved March 14, 2014, from http://www.pradagroup.com/en/group/history Tungate, M. (2008). Fashion brands: Branding style from Armani to Zara. London: Kogan Page. Vogue (2010, November). Prada - Voguepedia. Retrieved March 14, 2014, from http://www.vogue.com/voguepedia/Prada Read More