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Ansoff Matrix Analysis for ZARA

Zara has successfully utilized the Ansoff matrix strategies of market penetration and product development. Through market penetration, Zara rapidly increased its number of retail stores to over 3000 locations worldwide, allowing it to reach more customers within existing fashion markets. Zara also focuses on product development by frequently modifying existing products, engaging in research and development to identify new consumer demands, and developing new products to launch in markets. Zara's vertical integration model and short production timelines also support its ability to effectively utilize these Ansoff matrix strategies.

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Ankita Shetty
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1K views2 pages

Ansoff Matrix Analysis for ZARA

Zara has successfully utilized the Ansoff matrix strategies of market penetration and product development. Through market penetration, Zara rapidly increased its number of retail stores to over 3000 locations worldwide, allowing it to reach more customers within existing fashion markets. Zara also focuses on product development by frequently modifying existing products, engaging in research and development to identify new consumer demands, and developing new products to launch in markets. Zara's vertical integration model and short production timelines also support its ability to effectively utilize these Ansoff matrix strategies.

Uploaded by

Ankita Shetty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

INDIRA SCHOOL OF BUSINESS STUDIES

Marketing Management
Continuous Assignment 1

Topic: - Report on the Ansoff matrix for ZARA


GROUP 10 – MEMBERS ROLL No.
1) Anjana B1F - 08
2) Ankita Shetty B1F - 09
3) Bhavesh Bele B1F – 11
4) Chinmay Sontake B1F – 12

Current products New Products

Existing
Market Penetration Product Development

Rapid Increase of
Retail stores
 Increase market
share
New Offering
prices
lower

Market Development Diversification

Market Penetration: -
Increased Production capacity allowed Zara to reach more customers within the same
market. Zara was able to generate a handsome revenue with nearly more than 3000 stores,
including its kids and homestore. It has stores in 96 countries and is a flagship brand of
Inditex Group. Zara hardly uses advertising and spends nearly 0.3% of its revenue in
advertising and marketing.  Instead of spending on advertising, Zara positions itself in
primary locations, invests more on store layouts and shortens its lead-time. Another Zara’s
advantage is the vertical integration model that supports extensive control over the whole
process of the fashion apparel production. This shows the market penetration of the
company as the company understands the return of penetrating into the market for a
product like fashion (Forbes, 2019). This market penetration has enabled the company to
become a global leader and stay competitive.
Product Development: -
The ZARA can introduce modifications and improvements in existing products to offer
consumers new and enhanced offerings. This will lead to increased sales and consumption
of the product. It has also often engaged in R&D activities to understand and identify new
points of consumer demand. The company then undergoes an NPD process, and develops
and launches new products in the market for consumers. ZARA has frequently invested in
R&D – especially concern towards understanding market trends and consumer behaviour.
R&D has also built the ZARA to become more efficient in its operations and routine
activities. ZARA is engaged with the strategic partnerships to explore options for product
development as well the Strategic partnerships allow ZARA to have access to new product
developments, and processes with limited financial investment and thus limited risk
involved. It is important for ZARA to understand about new product and development
process. The company can also engage in new product development through introducing
different quality products in the same market.

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