zara marketing plan
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Submitted by:
Fatemeh Hashemi 093014007
Mojdeh Radkani 083016009
Farshid Zamanirad 093014012
Mehdi Ebrahim zadeh
Namvar 093010232
Abdul Mukhtar Ghafarzoy
103014016
Polina Martsyanova
093016001
May2011
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The Zara Brand Industry Anlysis Product Development Consumer Analysis Market Analysis
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Company Overview
Zara is a Spanish chain store of Inditex Group, one of the
world’s biggest retail store in the world.
• Founded by Amancio Ortega, in 1975 in Spain,
where it’s still home to it’s headquarters today.
• At the beginning Zara sold low price Then he changed the
design, manufacturing and distribution so he could make
clothes quicker, and that way react to trends faster.
5 Keys of the Zara BusinessModel
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Lead role in:
• Store design
• Production
• Logistics
• Team
“Meeting point between
the customer and
the Zara fashion offer.”
New products introduced
twice a week.
Top locations :17 visits /
year / customer
“Inspiration comes from
the store.”
Immediate reaction to trends.
1,186 suppliers,200desginers
.
Designed with maximum flexibility.
Customer oriented.
24H – receiving order to store delivery
“Teams with vast sales knowledge
geared to towards the customer.”
Make the stores a pleasant
environment.
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The Zara Brand Industry Anlysis Product Development Consumer Analysis Market Analysis
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“ZARA walks at the pace of society,
dressing ideas, trends and tastes that
society itself has matured.”
Zara’s mission statement itself shows that:
• The business is in clothing industry.
• Its market is all society members.
• Zara’s value and goals are related to
satisfaction the customers matured tastes.
Business Mission
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Market
Summary
Market
Needs
Market
Trends
Market
Growth
• Exclusivity
• Affordability
• Differentiation
• Experience
• Population trends • An increase in the level of concentration• Internationalization in the clothing sector.• E-commerce and Tele-shopping. • New sense of style/fashion
women (60%) and men (25%), 15
to 45& children (15%).. fashion-
conscious ,Educated and relatively
middle-class.
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2005 = 3.3 billions2005 till 2012 = 38% which is equal to 4.5billion
Ext. Audit- Micro Envt. Market Analysis
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Main
segment
Demogra
phics
Psychogra
phics
Benefits
sought
Aged 18-40
Work in big cities
pursuing Higher-level education /
Mid-range income
Interested in fashion trends
Conscious about their looks
Enjoy shopping and socializing
Hectic lifestyle
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Clothes that fit their body shape and
make them look beautiful
Target Market
Plus size, full shape body women
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
25% 60%
Market Share
15%
Petite
Plus Size
Normal
76
100
20
0
120
100
80
60
40
Size
2006 2012
Segment Growth: 40% increase by 2014.
Only 5% of retail space is dedicated to the +size products
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Ext. Audit- Micro Envt. Market Analysis
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
1
2
3
4
Hennes & Mauritz
Gap
Benetton
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Ext. Audit- Micro Envt. Competitors
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Ext. Audit- Micro Envt. Manufacturing &Distribution
is a vertically integrated retailer
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Unlike similar apparel retailers,
Zara controls most of the steps
on the supply-chain:
It designs, produces, and
distributes itself.
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
Ext. Audit- Micro Envt Consumer Analysis
Today’s fashion consumer:
More choice, more educated, more savvy & demanding
“New breed of shoppers”
Loyalty, variety, freshness
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The Zara Brand Industry Anlysis Product Development Consumer Analysis Market Analysis
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Ext. Audit-Macro Envt. PESTEL Analysis
Economical Social Technological EnvironmentalPolitical&
Legal
Zara would need to know
the trade system of importing
the good in the country and
Governmental policies.
Zara should be aware of
interest rates, taxation changes,
economic growth, inflation ,
exchange rates, and Tariffs.
Zara would have to work
according to the trend and
satisfy customer’s demand
due to change in generation
choices.
Online shopping, bar coding
and computer aided designs
are all improvements to benefit
Zara and its customers.
group's environmental commitment of Zara have a
direct impact on their shops ,products and policies.
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Ext. Audit- Macro Envt. Porters Five Forces
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Rivalry among
existing
competitors
Threats of
new entrants
Bargaining
power
of buyers
Bargaining
power
of suppliers
Threats of
substitute,
product Medium
Very High
High
Market is moderate/High
Moderate
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
1,688
Stores
ZARA
2 new countries
in 2011
77
Countries
Internal Audit-Zara’s Performance
159 store
openings in 2011-2012
(Australia &News land)
Brand Value:
$ 8,609 M
Sales
€ 7.077
Million
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
Core Competencies14
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• Low level of inventory due
to Fast supply chain.
• Efficient distribution system.
• Commitment of its employees.
• Flexible production system.
Core Competencies
Internal Audit-
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Internal Audit- Positioning
Fast high fashion at
affordable prices
The only true fashion
brand that thinks
about your body shape,
respects it and
designs especially for it .
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
14
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•Maintaining Zara's ability to respond
effectively to market needs.
•Try to optimize high cost of
development and training.
• Maintain customer care properly.
Critical Issues
Internal Audit-Critical Issues
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
SWOT Analysis14
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• Brand loyalty
•Brand awareness
• Efficient distribution
• Information technology
• High fashion for modest
price
• Higher costs arising from
vertical integration and
training personnel
• Lack of E-commerce
• New in this segment
• short lead time from design
to sale, 15 days
• Global market penetration
• Online market ( Expand into
Internet.)
• Offer different styles in
different stores within the
same city.
• Brand image
• Fluctuation in exchange
rates
• Market entry barriers
• Design challenges
• Global competitors
• Local competitors
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Strategic Marketing Objectives
Overall marketing objectives: increase customer equity
Increase consumer Satisfaction ,decrease
dissatisfaction of the plus size consumer
Increase purchase frequency among
plus size customers
continue to grow by extending the Zara
fashion brand .
Increase brand awareness and favorable
attitudes among consumers
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Marketing Objectives-Strategic thrust
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•Zara’s success = unique approach to
product development.
Product Development
•Zara's aggressive expansion strategy
has proven to be extremely successful
over the past 5 years .
•The internet is another market that Zara
trying to dip in to, there by offering the
customers the opportunities to shop
online and off line.
Market Penetration1 2
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The Zara Brand Industry Anlysis Product Development Consumer Analysis Market Analysis
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Zara’s Product Life Cycle Curve
Zara is in a high fashion industry and its product offering
are the latest trends and designs with a life of maximum
2 weeks so its Product Life Cycle Curve becomes like the
one given in the right diagram.
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2-Sales Data and feedback
to manufacturing
1- Outsourced vs. In-house
manufacturing
3-Information and Communication
Technologies
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Core Strategy
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
1
2
3
4
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Competitive advantages
Demand Reaction vs. Demand Forecasting
Limited advertising
Fast Manufacturing
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Business Resources
Physical resources:
1-Stores: 1,688 in 77 countries
2- Factories: 20
3-Total selling area : 488,400m²
Financial Resource:
Invested capital:1050 million
(Euros)
Human resource: 92,301 from
more than 140 nationalities
H
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Tangible
Resources
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5/31/2011 28
Intangible
Resources
Business Resources
Brand: is amongst the three most
recognized brands in Spain.
Image :Zara is a fast fashion
clothes company
Economic goodwill:
excellent reputation in
quality and price
Business Methodology:
In time inventory system
Zara Trade Mark
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Integrated Marketing Strategy
Customerfocused
Place
Price
Product
Promotion
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Customer-focused Product
Feel product. Increase: Interest, Involvement , Emotion
1) Back to the drawing board
2) Product symbolism
Zara knows my body shape.
I look good in Zara clothes.
I feel beautiful .
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3) Colors and material
Important choice for perceived quality of the products.
4) The ZARA label
Incorporate consumer feedback on salience attributes.
Feed on the existing Zara name and values associated with
the brand and Aim at customer loyalty
Bring the fresh look to the plus size
segment.
Design products that complement the full body shape
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Integrated Marketing Strategy
Customer
-focused
Place
Price
Product
Promotion
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Above-the-line:
Print advertising
Bellow-the-ine:
Brand communication
PR
Internet
Events
Media cooperation
Promotion Strategy
Main Communication objectives
•Inform about the new line.
•Create positive emotions in
connection to the new line
•Generate consumer interest and
Purchase intention
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Advertising , Creative, Production & Placement
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High fashion look
Full shape body model
Ad tonality
Ad format Double page spread
Minimum copy
Zara logo
Zara Curvy is the new black
Ad placement
High fashion monthly magazines:
Vogue, Marie Claire, Harper’s
Bazaar
Fashion monthly magazines:
Glamour, InStyle, Joy, Petra
Independent magazines:
WAD, Pool
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Curvy is the new black
by ZARA
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Below-the-line campaign
Brand
COM PR Internet Event
CSR: design competition for
fashion students
Possible media cooperation
with reality shows such as
Project Runway
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Below-the-line campaign
Brand
COM PR Internet Event
Efficient product placement in magazines
Editorial coverage without advertising expense
Goal: make a sincere proposition to the
REAL woman, use the journalist as an expert
source to build brand trust
Tool: PR lookbook
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PR Lookbook
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Below-the-line campaign
Brand
COM PR Internet Event
Use the website as a main
communication channel
Feature the CSR initiative to build
awareness
Include advices on different body
shapes and product cuts
Use the online communicates to reach
the young , tech , savvy women
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Below-the-line campaign
Brand
COM PR Internet Event
Line launch event in 3 key
stores in Europe: Madrid,
Milan, and London
Theme: Zara celebrates
diversity with a new line
Goal: offer the real
experience of the brand and
what it stands for
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Integrated Marketing Strategy
Customer
-focused
Place
Price
Product
Promo4on
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Pricing Strategy
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Follow the brand pricing strategies
Affordable prices, good quality
No deviation from what Zara is as
brand: consistency across lines
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Integrated Marketing Strategy
Customer-focused
Place
Price
Product
Promo4on
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The Zara Brand Industry Anlysis Product Development Consumer Analysis Market Analysis
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Distribution Strategy
Store Location• In a prime location
• easy to reach by the metro, bus
or walking.
•Important communication channel
• Point taking the pulse of market
• Consistent & strong store image = High store loyalty
Store Atmosphere
• Typical Zara store layout:wide open spaces
• Create enjoyment of shopping in the store (positive emotion/comfortable
feeling/ impulse buying /spending more than planned)
•New Product Line having its own section in the store, consistent with
current store space distribution.
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
Evaluation and Control 14
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Key Performance Indicators for the
measurement/evaluation of the performance :Level of customer satisfaction
Brand loyalty
Control of marketing plan : the results consistency with-Mission, marketing mix
-Industry trends and the company’s objectives
People for monitoring and control of the marketing plan : • Marketing Executives
• Sales Managers
• Media Managers
• Market Research Departments
• Product Managers.
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The Zara Brand Industry Anlysis Product Development Consumer Analysis Market Analysis
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Mission, Marketing Mix & Control
Evaluation of our plan according to Mission statement :“ZARA walks at
the pace of society, dressing ideas, trends and tastes that society itself
has matured.”
• We still have the customer as the basis and the reason of the group's existence
• We walked to the society to find out new segment (size + women) and created
special line to meet its needs
• We met matured society tastes: offered fashion inspired in the tastes, wishes
and lifestyles of today's +size women
Evaluation of the marketing mix:
At the end of the period we will see how successful were our 4 Ps decisions
Our product suits plus size segment/ we do use advertisement, PR for this segment/
our prices are affordable and the stores- in central locations with a design which
makes you fell “expensive” and excellent customer service.
In fact so far our marketing strategy is consistent with Zara goal which is :
customer satisfaction!
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
Industry Analysis &Control 14
Industry trends
Key success factors
for the new product line
(+size women)
Democratization of luxury
Inclusiveness
Street trends
Differentiation & individualism
Respect to the figure characteristics
High street fashion brand
New fashion consumers
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
Objectives & Control
General Objectives
Develop a consumer focused product line and marketing strategy
Reinforce customer focus as the key driver of the Zara brand
Zara
Strategically segment the market
Visualize the impact of the new line
Integrate consumer input into development
Strategically plan the integration of the new line within the existing business
model
Consistent with our current approach
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The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis
Gathering Information for control
Qualitative
Goals: insight into the mind of
the consumer
- satisfaction
- gain more insights into the
product positioning
- test communication strategies
Also:
- test product attributes in terms
of fit, cuts, colors, communication
& marketing strategy
Quantitative
Goals: gather data on consumer
attitudes, past behaviors, intended
behaviors
How many people:
-like or bought the product?
-turned back the product?
-complained?
- also growth of the segment? etc.
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1 2
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Implementation Roadmap
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Website
Development
PR Toolkit
Production
Campaign
Production
Product launch
Event
Interactive
launch
Ad Campaign
Media
Cooperation
PR support
Evaluation
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The Zara Brand Industry Anlysis Product Development Consumer Analysis Market Analysis
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