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 One main advantage Zara has over its competitors is the lower advertising costs. Zara advertising investment is only 0.3 percent of its total revenue compared to traditional retailers which normally form about 3 to 4 percent of the annual revenue. This marketing strategy allows Zara's to reduce the cost and invest more in international expansion.
Zara does not target specific age group nor does it divide customers into segments, instead it markets to a broader market with its prestigious and elegant image. Thus by targeting the international market, Zara has an edge over its competitors, as it does not need to strip down into class and gender and age group; but focus only on one large group. Zara marketing philosophy is simple, target the global audience and if a product can sell in New York, it can also sell in Milan or London.
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