Zalora Retail Marketing

When it comes to pricing we always strived to provide one of the lowest prices in the market. We decreased product prices by $0.50 on each product each year to appeal to consumers. Since providing a low cost product was one of our strategic goals we did not stray from decreasing prices. Looking back, perhaps we shouldn’t have been so loyal to our strategy when we were unable to turn a profit. While a strategy is important to stick to, being a profitable company is the ultimate goal.

Question 1: In what ways are elements of the classical and behavioral management approaches evident in how things are done at Zara International? How can systems concepts and contingency thinking explain the success of some of Zara’s distinctive practices?

• The company should find effective way to communicate about the product in public to boost up the sale of existing product but this plan does not work every time and it can be tricky also.

Costs play an important role in setting international prices. Travelers abroad are often surprised to find that goods that are relatively inexpensive at home may carry outrageously higher price tags in other countries. Besides, such price escalation may result from differences in selling strategies or market conditions. In most instances, however, it is simply a result of the higher costs of selling in foreign markets such as the additional costs of modifying and packaging the product, higher shipping and insurance costs, import tariffs and taxes, costs associated with exchange rate fluctuations and higher channel and physical distribution costs. Futhermore, Milo also adopted Promotional Pricing strategy. Selling products is challenging when shelves are lined with similar-quality products, and customers are bombarded with advertising messages. Promotional pricing helps differentiate Milo’s product with its competitor and leverage a potential customer's attention long enough to purchase the Milo products. Promotional pricing involves lowering the price of a product, distributing coupons or offering specials, such as buy-one-get-one-free offers. For example, Milo offer promotional pricing for its product in weekly catalogue to create excitement and a sense of

For that reason, most of all the products Zara offers globally are relatively standardized fashionable products. In terms of marketing costs, Zara relies more on having prime retail locations than on advertising for attracting customers into its stores. It spends a meager 0.3 per cent of sales on advertising compared to an average of 3.5 of competitors according to the company, choosing highly visible locations for its stores renders advertising unnecessary. Zara provides following options to its targeted market:-

The basic strategy for fighting competition is to attract buyers at lower prices, more unique designs, high-quality design, efficient customer service and solid image brand. Thus bargaining power of buyer for apparel industry is high as the products falls under the basic needs in human lives. There is no much difference in terms of products offered by the apparel company, so if buyer is unhappy with the product or service they can easily switch to another brand. Thus, Zara are trying to strengthen its position in the market by using their unique strategy by giving priority to buyer to meet their special needs.

Zara’s product differentiation strategy is based on high quality and low prices. The company wants to be fashionable and desire for everyone. This is the reason of their strategy (low price and high quality).

As is known, pricing is one of the most important steps for business plan which needs good research, calculations and formulations. There are different pricing strategies to put into effect due to the market and product conditions, such as premium pricing, penetration pricing, economy pricing, price skimming(Voice Marketing, 2012). These four pricing strategies are main pricing policies. They form the bases for the exercise. However there are other important approaches to pricing. These pricing strategies are: Psychological pricing, product line

The thesis for this article would be the most common pricing cues that retailers utilize and how or if the cues are successful. Also, common marketing techniques, and if the cues are used appropriately or not.

Zale Corporation is a leading specialty retailer of diamonds and other jewelry products in North America. The Company has significant brand name recognition as a result of each of its brands’ long-standing presence in the industry, having 2.349 stores in the United States, Puerto Rico and Canada.

Pricing of a service is much more difficult than a product as service is intangible, heterogeneous(Hoffman et al 2002).No details on pricing were mentioned in the case, however, although the company have a high staff cost (17% of the company sales) 35% of returned products, Zappos has a competitive pricing delivering free to their

Retailers purchase products from wholesalers, and sell products and services directly to their customer, therefore it is important that their pricing and retail strategy is perceived valuable by their target consumer market. Understanding what their customers want, when they want it, and how much they are willing to pay for it are key data points for marketing managers when determining strategy. When pricing and retail strategies coincide and portray value, the target consumer market positively responds.

Zara believes in offering high fashion at a low cost. Prices range from $79.90 to $539.00 for both Womenswear and Menswear while the Kids

Firstly, Zara is utilizing a cost leadership procedure to control the item developing and manufacture cost, which will likewise decrease the cost of the product to keep competitive advantages over its competitors. This is the reason a well-known brand as Zara still can keep the cost of the items sensible.

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).