The trends of the fashion age Essay Example

unresolved issue is finding a company that will handle the distribution of the merchandise.

The text suggests that the organization should employ a more effective market planning and strategy to increase the market value of their product.

Screen 1: Political and Legal Factors

The political situation emphasizes the role of the government and its impact on a company or firm. It also involves the extent of government involvement in the political scenario (2000). India, Russia, and Mexico have open market political conditions. This means that the governments of these three international markets are willing to accept new investors or companies operating within their region. Furthermore, the governments of India, Russia, and Mexico also enforce their own set of corporate policies that organizations must comply with.

In this mode, the focus is on ensuring that Zara always has legal actions in their business operations in terms of the force per unit area on the Zara merchandise.

Screen 2: Technological and Economic Factors

Zara Company targets the Indian, Russian, and Mexican markets. Therefore, it is crucial to analyze the economy of these countries. Among them, Russia has one of the most stable economies and had the 4th largest exchange rates as of 2005. In recent years, Russia has successfully recovered from crisis due to its growing internal consumer demand.

Despite India having the 9th largest economy globally, it is ranked 12th in terms of GDP and has the 4th highest per capita income in Asia (1981). This implies that Zara company has a higher chance of succeeding in its operations within India. The country's steadily growing market economy serves as a positive indication for Zara to gain

recognition in the market. Additionally, all three countries have successfully implemented innovative technology.

The text emphasizes the importance of information engineering for business operations and organizational needs. It suggests that utilizing technological installations can enhance the quality of service provided by both public and private corporations. Additionally, it highlights the significance of social and cultural factors when entering a foreign market. Culture is considered integral to the analysis of an industry, as organizations must possess acceptable views on the role of culture in influencing progress or decline. The author mentions four aspects that differentiate cultures at a national level - power distance, individualism-collectivism, masculinity-femininity, and uncertainty avoidance. India prioritizes social security within its societal context. Moreover, India also considers participating in trades and agreements with various companies that can potentially offer them high-quality products or services.

Just like India, Russia also has a robust civilization and society. The Russian society is known for its spontaneous consumption of products and services and is welcoming to investors who can offer technologically advanced offerings. In Mexico, the social and cultural conditions are observed to be diverse.

This can significantly enhance the marketability of Zara's clothing lines in the country.

COMPANY OVERVIEW OF ZARA

Zara, a prominent fashion and clothing company in Spain, excels in profitability and sales. Its extensive presence surpasses other global fashion and clothing companies, thanks to its marketing strategy that includes a worldwide network of distributors.

Zara Company has achieved success in their marketing strategy by utilizing the reputation of their high-quality clothing brands and company name. They employ various Integrated Marketing Communication (IMC) strategies such as advertising, branding, and personal selling tactics to effectively manage their promotional efforts. By appropriately

using these IMC strategies, Zara Company can efficiently communicate important information to their valued customers. However, it is essential for Zara Company to thoroughly understand and evaluate the IMC tools they utilize.

The implementation of the chosen IMC tools by Zara Company will necessitate additional time and resources as a result of the company's higher income compared to its competitors. However, these promotional tactics are crucial for ensuring Zara's long-term dominance and stability in the fashion industry.

India Overview

In India, both the political and economic situations remain stable, presenting opportunities for foreign investments. The country is well-known for having one of the most stable economies in its region and was ranked as Asia's fourth largest economy in 2005 based on exchange rates.

Zara Company can successfully penetrate the Indian market by implementing effective strategies. India has demonstrated its ability to adopt modern technologies for progress and growth.

Demographic

India's population exceeds 100 million, offering multiple opportunities to target different markets. It is important to note that the majority of Indians, excluding those in major cities, primarily rely on domestically produced goods.

When it comes to nutrient expenditures, the distribution is uneven throughout the entire population, with 30% of urban Indians consuming more than 50% of the food supply. The target market for Zara Company consists of urban consumers who spend at least twice as much on food products compared to those in rural areas. As incomes increase in India, consumers are able to afford higher quality and more fashionable clothing. Therefore, Indian consumers are likely to favor Zara Company's quality and stylish clothing.

Cultural Concerns

Entering a foreign market necessitates careful consideration of social and cultural factors.

Furthermore, when analyzing an industry, it is

crucial to consider the role of culture in the success or failure of organizations. Companies and households must possess certain beliefs about the impact of culture on their operations. The cultural environment has a significant influence on companies. According to A (2004), national cultures differ in four aspects (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance). This suggests that individuals bring their own national culture when joining companies. In terms of social context, India should focus more on social security. Additionally, India intends to establish new trades and partnerships with companies that offer superior quality products or services.

Establishing Zara Clothing in India

A. Market Entry Plan

To enter the Indian market, Zara Company needs to choose a suitable market entry strategy.

In this scenario, Zara Company plans to form a joint venture with well-known clothing distributors in India. This joint venture will involve collaborating with other large and competitive organizations. An international joint venture is a partnership between multiple entities that operate across different countries to plan and manage the venture.

B. Selling Strategy

To achieve its goals, Zara Company aims to sell a variety of local and international clothing lines, while maintaining Zara as the primary brand in India. Additionally, Zara Company will target larger positions, aiming for either the first or second place in the Indian clothing market.

The aforementioned locations would all be suitable options for Zara Company to establish a top-quality manufacturing, sales, and distribution base. Additionally, these locations provide an opportunity for Zara Company to sell their clothing lines and unique fashion products. The European branches of Zara Company are excellent examples of dominant market positions. By collectively focusing on

cost structures, the company can undoubtedly achieve the aforementioned objectives.

C. Promotion / Communication

To promote and communicate the organization and its clothing lines, Zara Company will utilize video advertisements, print ads, and the concept of e-marketing. These advertising and marketing strategies will be able to meet the changing needs of consumers from India and beyond, especially those priority Indian markets or the consumers in the urban India areas. For this promotion campaign, the key message that Zara Company may use will be "Providing quality and stylish clothing lines that satisfy your needs". Zara Company has established its reputation as one of Spain's leading clothing line companies for many years now.

Zara Company thrives in its markets by efficiently handling challenges since 1999. It achieves this by implementing effective promotional and positional strategies to ensure not only significant profits, but also establish a solid foundation for the company's clothing and fashion trends. In India, Zara Company must prioritize the substantial growth of its clothing lines and improving its financial situation through promotional campaigns and strategies. These efforts will also facilitate important mergers and partnerships with other companies. Most importantly, these campaigns can unlock the potential of the company's workforce, creating a performance-based culture. The local employees themselves can easily implement Zara Company's promotional strategies in India.

This scheme will definitely help the organization improve without the burden of implementing expensive technologies. These initiatives can also lead to improved financial profit for the organization and establish distribution networks for Zara clothing lines in India.

D. Target Market

Zara Company has maintained a reputation for targeting teenagers, individuals in their mid-twenties, and even those considered young at

heart.

This is an underserved market segment that other clothing companies have previously disregarded in favor of adult consumers. Zara Company also differentiates itself by focusing on the younger generations in their campaigns. These campaigns in India will convey that Zara Company is not just a regular clothing line for the next generation; its customers are a generation ahead of their competitors. Zara Company can establish itself in India as the clothing line for the current generation. It has found that the purchasing power of young people and the marketing power of celebrities were comparable (1998).

They have achieved significant increases in net income from this scheme, and there is no reason why it won't also succeed in India.

E. Pricing Strategy

Zara Company should base its pricing strategies on various key trends that consistently dominate the global market for clothing lines in India. One particular trend is known as "premium-tization". This trend leads to the polarization of different markets.

The consumers are forced to demand and pay higher prices for perceived quality, which also puts pressure on the middle range prices. Supermarkets often face tighter space constraints due to internationalization, but Zara Company will emerge as a winner. This is why Zara Company needs to prioritize the Indian "premise sector" as it allows consumers to try their clothing lines at lower risk and costs. In terms of market segments, Zara Company's premium and specialty clothing have less volume growth compared to the overall growth rate of 4-5%.

These rates are the result of the growth in GDP values in emerging markets and increased consumer demand for better value offerings, specifically in international clothing brands. As a result, Zara Company

needs to promote and establish itself in the Indian market to gain a competitive edge. Zara Company operates in a fragmented market, where the top four clothing companies accounted for 22% of global sales five years ago and only around 28% today.

Recommendation

There is a clear need to integrate both the internal and external capabilities of Zara Company.

Zara Company's strategy for entering the market in India focuses on prioritizing its strengths and considering the resource base, but neglecting to pay attention to both the macro and Indian clothing market environment would put the company at a disadvantage. To enhance its ability to understand and adapt to the market, Zara Company needs to be aware of current management changes, as well as changes in political, economic, legal, and demographic situations. This will improve capabilities such as market evaluation, customer connection, channel bonding, and technology monitoring. These advantages could lead to increased profits for Zara Company. Understanding the desires of the Indian market and staying up-to-date on the latest fashion trends would allow Zara Company to fully utilize its research and development capabilities and release clothing lines that are not only cost-effective but also high-quality.

The strategic option can also be used as a selling strategy by staying close to the company's clients and acting on their feedback. However, it is important to acknowledge the use of resources and consequent risks that are associated with Zara Company.