Zara’s Innovation Mantra.

Like any other teenagers, Zara is also one of my favourite brands. I like the designs of their clothes that are not too over the top but at the same time, not too boring. Zara’s marketing strategy amazed me during the class and this is the reason why I decide to blog about it.

Zara is a Spanish clothing retailer that was found in 1975 and currently having 1,671 stores around the world. Zara’s strategies in running business are very unique and interesting. One of its strategies is low-cost production. This is what all companies around the world are trying to achieve, as it will be a huge benefit towards the companies themselves. Low cost production means that the company may be able to receive higher total revenue and become more profitable. Another interesting strategy that Zara uses is to release new collections in every 2 weeks. It only takes 2 weeks for Zara to convert designs on drawing boards to store shelves. This creates high variety of the products and ‘fast-fashion’ model, which makes that the designs are appear and disappear on their shelves, which forces the customers to buy these products before they go off. It also forces the customers to come back to the stores in every 1 to 2 weeks to check out Zara’s fresh designs.

Zara runs its business by keeping the design fresh, current and not too over the top. Zara’s strategies are smart and there is no doubt of why Zara is one of the brightest stars in Europe’s retail landscape.

Zara’s fast-fashion model and strategies are not easy to do and to copy. It is no wonder a Louis Vuitton spokesperson described Zara as “possibly the most innovative and devastating retailer in the world”.

Articles:
http://www.heraldsun.com.au/ipad/zara-is-simply-smart-marketing/story-fn6bn4mv-1226099272708
http://web.ebscohost.com/ehost/detail?sid=229df07b-bb03-4260-859b-e1ceb102a679%40sessionmgr10&vid=1&hid=8&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=22161327

Coca-Cola launches campaign for new bottle size.

Coca-Cola is a carbonated soft drink sold in more than 200 countries. The company was established in 1886 in Atlanta, Georgia.

The article “Coca-Cola launches campaign for new bottle size” talks about the new bottle size of Coca-Cola, 375 ml, which will be introducing to the market for the first time since 1993. Introducing new bottle size with a slogan ‘new pocket size’, Coca-Cola is trying to reposition itself. One main reason that causes Coca-Cola to reposition itself is to emphasize its consumer’s target. The ‘new pocket size’ of Coca-Cola is strongly targeted at teenagers and young adults as this is reflected through the design of its poster.

Coca-Cola is trying to increase its profit by entertaining its consumer and the market. Although marketing research might not be able to tell a company whether the decision being made is right or wrong but marketing research allows a company to study about its consumer’s behavior and identify what the consumer wants. Coca-Cola invested in a three-month research and the research revealed that the consumers wanted a bottle size between 330-500ml.

By repositioning itself and constructing a marketing research to entertain its consumers, Coca-Cola will be able to improve itself and receive more loyalty. The company will certainly receive an effect from this change.

Article:
http://www.marketingweek.co.uk/news/coca-cola-launches-campaign-for-new-bottle-size/4000728.article

IKEA to expand business in India after government allows 100% Foreign Direct Investment

Business expansion is essential for all companies. It is an evidence of how well a company is doing and is a sign of moving forward for a bigger goal. A huge and popular company, like IKEA is also plan to expand its business in India after government of India allows 100% Foreign Direct Investment (FDI) instead of 51% FDI in single-brand retail. Due to an increase in the percentage of FDI, this allows IKEA to expand its business using its own strengths, which are a strong global brand, the ideal of balancing between design, function, quality and price and low prices, which allow IKEA to attract and retain its customers. Moreover, IKEA may take the advantages of India, like large number of population and large number of people with low income to become its opportunities to expand its market share and increase its profit.

IKEA might has so many strengths and opportunities which can help it to be successful in India . However, there is also a point to be worried about. Besides its low prices, IKEA is also well known for its modernity. India is an undeveloped country, full of its own cultural and styles therefore it is crucial for IKEA to carefully do a market research in India and make use of its specialist marketing expertise before it decides to fully expand and operates in India.

Article:
http://news.xinhuanet.com/english2010/world/2011-11/27/c_131272967.htm