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Compare Zara's and Hilfiger's Current Marketing Strategies

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Zara's current marketing strategy is in regard to media advertising is almost inexistent due in part because on its focuses in the quality of its products, adaptability to local's preferences, geographical' pricing strategy and its high fashionability (Daniels et al, 2011). Even though Zara's management believes in standardization by creating apparels that can be wore in Paris as well as in Caracas, it focuses in creating design that takes in consideration the physical, cultural and climate differences of its customers. Basically, Zara's marketing strategy can be described as being a "strategic marketing orientation which put an emphasis in production, sales and customers' need and want (Daniels et al, 20110). The benefits of its marketing strategy is that the company doesn't spend a lot of money in marketing because the company relies on its customers and strategic location for its stores as a tool to increase customers' awareness about its products. Furthermore, its high quality design coupled with a relative low-price strategy along with an effective supply- chain management strategy have all contributed to the organization' success. One of Zara' marketing strategy downside is its reliance on just-in-time inventory practices maybe affect its process and bottom-line if there is a natural disaster such as what Japan experienced last year. The Japanese's automobile's industry suffered a severe shortage because of just-in-time strategy. Zara's global strategy assumes that consumers will "buy high-quality product, low-priced product no matter its country of origins" but ignore the possibility for disruptive market changes or product break-throughs (Daniels et al, 2011)

Hilfiger uses the pull promotion strategy by relying heavily in a strong advertising to promote its products around the world. In fact, Hilfiger uses celebrity advertising, billboard, magazines and newspaper to help sell its products in the US and in Europe. Also, it has a customer orientation marketing strategy that focus on its customers' need (Daniels et al, 20110). Furthermore, Hilfiger uses cost-plus pricing strategy due to difference in production cost in different country. The company uses a transnational strategy to "configure a value chain that exploit local economy while simultaneously responding to local pressures" (Daniels et al, 2011). The benefits of Hilfiger' strategy is the ability to create a learning environment for managers that prepare them to effectively compete in a changing environment and adaptability to meet pressures for local responsiveness (Daniels et al, 2011). The downsides of Hilfiger' strategy its reliance in selling its products in department stores, which may not be successful or well positioned in the market. And it strategy in Europe even though successful has shown to be costly than in the US.



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