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Zara

Memorandum

To: Mr. Amanico O. Gaona Date: November 8, 2007
(Chairman and CEO, INDITEX)
From: Maninder Singh (Marketing Director, Zara)
Re: Strategic Planning
________________________________________

Company:
Zara is one of the largest International fashion companies. Success lies in our ability to produce new fashion and trends in any given time with low prices. Other secret is our distribution system. Fashion industry is getting highly competitive. To be leader in this industry we need to focus on our internal and external factors. (Please see Exhibit A).

Strategy Recommendations: We should adapt;
• Horizontal marketing strategy.
• Indulge into intensive and exclusive distribution.
• Practice intermodal transportation system.
• Start celebrity endorsements.
Competitive profile matrix (Please see Exhibit C) is showing how much weight we are carrying in these segments versus our competitors, which clearly predicts that we are not focusing one our external factors.

Strategic Planning:
Putting above mentioned recommendations into prospective will enhance our brand image and produce even higher profits for us and share holders. Strategic planning flow map (Please see Exhibit B) is how we will put this in play and produce results.

• Marketing Opportunity: By establishing “Horizontal Marketing” system will help us accomplish much more than we can do alone. Our resources, production capabilities, distribution channels will improve tremendously.
• Distribution Channel: Indulging into intensive and exclusive distribution will supply right merchandise to right locations. This will create brand loyalty with our customers.
• Brand Image: A Celebrity endorsement is next step to improve brand image. It will help to attract fashion adaptors.
• Transportation: Depending on where merchandise is going we should use piggyback(rail and trucks), fishyback(water and trucks), trainship (water and rail) and airtruck(air and trucks)...