Product positioning is placing a product in the mind of target consumers to appear as a clear, unique and desirable place in comparison with competitors’ products. Positioning is significant component in marketing as it is help to differentiated from one product or services from another and thereby giving consumer a reason to buy organization’s products or services instead of competitors’. The company positioned them as low cost brand and corresponds with the latest trend. According to, the editor of, a culture and fashion magazine, In order to satisfy customers needs, they care for maintaining the current trend and up to date fashion In order to position in the market, there are four marketing strategies; (1) Product strategy, (2) pricing strategies (3) placement strategies and (4) promotion strategies.
1. Product strategies
The target customers are mostly young urban market and high sensitive to the latest fashion trends in the industry therefore they are aware of the
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Its success has drawn the attention of competitors from the fashion industries for examples H&M and other industries. They adopted the strategy based on consumer trends and embracing the fast-changing taste of its customers. Their current competitors include other fashion retailers such as Uniqlo, and Mango try to follow Zara’s marketing strategy especially stock turnover and clothing design and pricing strategies. The organization does not only need to worry about imitative competitors who adopt the same marketing strategies but also other companies capturing significant market shares through different means. In order to combat these barriers, Zara can develop online retail strategies since Zara online store is currently only available to 21 countries. There are different differentiation strategies to adopt such as product differentiation, service differentiation, personnel, channel, and image
The management at Zappos attracts customers through exceptional service that has created a “WOW” philosophy and embedded it within the fabric and culture of the company. Zappos has several competitive dimensions in which they compete with other online retailers in the market. The company has always maintained its sales growth rate on the long-term basis at a certain output level. Therefore, the competitive advantages of Zappos have always been sustainable. The corporate culture of the company is nurtured and developed by its management team.
For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.
All of these different drivers allow Chipotle to earn high profits because they increase the customer’s willingness to pay. The differentiation approach has held strong for the brand since 1993. The strength of their stock, high yielding profits and imitating competitors are all examples of the differentiation strategy being a success within the firm. Chipotle implements this differentiation strategy by promoting green farm to table.
Other ways that Chick-Fil-A has market them company is by sponsorship of collegiate sports, doing special events on openings, and donating scholarships for students and having a married couple retreats all of this ways of advertisement has had a big influence on Chick-Fil-A marketing strategy. How would you describe Chick-Fil-A’s positioning strategy? Positioning strategy is what the customers think about the company. My point of view on the positioning strategy of Chick-Fil-A could be different from others.
An important part of the differentiation strategy is being a leader in technology. Using technology effectively allows a company to gain a competitive advantage over its competitors. As analytics and data management increases companies need to implement effective systems and strategies. Another key element of differentiation is a customer’s loyalty. State Streets long history has allowed them to build up good relationships with
EXECUTIVE SUMMARY Zara can be identified as one of the largest international fast-fashion organizations which is owned by the fashion group Inditex. Their first store was opened in 1975 and from that point of time, they have had an unstoppable growth throughout the years as up to now. After 42 years of operations, today Zara has been able to expand themselves with 2169 stored over 82 countries all over the world. Rather than they were a high fashion brand in the country, Zara has focused themselves as a fast fashion brand where they will change their fashions at a great pace where no one can reach them. Also, the most attractive thing is that all those latest fashion designs are introduced to the public at an affordable price.
Zara is vertically integrated and takes care of designing, manufacturing and distributing its products. This gives it an immense hold on the market as most of the operational inefficiencies are eliminated by the company’s on employees who identify with the larger goal and value proposition of the brand (The New York Times, 2012). Zara works along with the consumers to understand them more closely rather than imposing its own predictions on them. Zara creates an environment of artificial scarcity in its stores for every design it manufactures so that consumers get a feel of exclusivity rather than stock pile up (Johnson, 2012). This gives them a sense of pride to buy a limited edition of products which they find at Zara stores only.
In terms of differentiation, ZARA’s “fast fashion” philosophy is unique, which create demands and lead the trend in the garment market. They respond very quickly to the demands of target customers and focus on young fashion. In production, they design quickly, production quickly and update quickly.
The target market of louis Vuitton in divided into two key segments, the wealthy middle aged women from 35 to 54 years old is the first segment while the fashionable young female adults from the age 18 to 34 years old who have income saved to buy one wishes. Average customer of Louis Vuitton are high level & social class people who are into fashion and very conscious as well. High social status is achieved by owning such products from Louis Vuitton. Demographic Segmentation Louis Vuitton has used Demographic segmentation to segment the market.
Where in the domestic market, its main competitors in terms of volume stores are the same Iniditex group, Pull & Bear and Stradivarius. Although Sfera and Mango can also be considered great rivals. Moreover, in the European market, Zara 's main competitors, GAP and H & M. Mango and Sfera and they were in the domestic market, they cease to be European. Rivalry between competitors The number of competitors is high (and are distributed locally, nationally and internationally) The textile sector has a slow growth (because it is a mature sector)
Differentiation Strategy: - It includes developing new products & services which satisfies customer needs, they offer much more values than their competitors. They differentiated the segment according to the customers. They provide multiple customer segments which includes moderately priced to premium priced customers for example: 1. Bulgaria resorts & hotels (The Ritz Carlton) - Target segment:-Luxury guest. 2.
(BARNAT, "Concurrent Control") As fashion trends tend to change every now and then, Zara could use this control to work on latest trends and future trends. This to ensure that employee work activities produce the correct results without any major wastage and unacceptable services. This also allows Zara to be up to date with its fashion knowledge and also sustain its position in the
However Zara benefits from the fact that compared to over more traditional retailer they do not stick only to age segmenting, and lifestyle, which allows them to reach to a much broader market. Using psychographic segmentation, they also target women with a so described “hectic” lifestyle, implying a busy,
For that reason, one of the world’s leading retail organisation Zara particularly focus on their organisational resources in order to get the competitive advantage over their competitors. Some of the key organisational resources of Zara are demonstrated below: Market-oriented Strategy However, in the retail industry the competition is very high that is why the customer is considered as a king for them and they have to make them loyal as much as they can for the reason that they will not move to other brands quickly. Moreover, by focussing on customer‘s requirement and likings, reinforced by its operational approaches and Zara shows their assurance towards their precious clients. For that reason the customers of Zara‘s are quite loyal that help them to reach better position in the market (Finney, et al., 2008).
As a result, the company has suffered for disappointing earnings and sales. One of the reasons is because in the attempt to turn around the company, the raw material and labor cost increased which lead to an increase of 20% per item. As a result, now the company is facing struggles because foreign competitors such as Zara, H&M, Walmart and Target are stealing its customers with cheaper and fresher fashion. Another driving force that affects the fashion industry is the information revolution. The instant availability of information and instantly interaction are the implication that has changed the nature of competition in the fashion industry.