1.Group 3: Stefanie Ahlers Giacomo Alpago Deepak K Rana Faizan Ali Europes market leader in fashion eCommerce

2. Industry Overview E-Commerce 34% 26% 20% 20% U.K Germany France Other European Countries 36% 22% 18% 11% 9% 4% Software, Books and Music Computer Hard ware and Electronics Fashion Clothes Health and Beauty Products Toys and Video Games and sports items Small Appliances and gardens equipments 3. Digital Disruption 74% of business executives say their company has a digital strategy, but only 16% feel they have the skills and capabilities to execute it. A piecemeal approach to your digital channels and methods is no longer sufficient. To win, your organization must harness digital technologies to deliver an excellent digital customer experience Source: Forrester Research 4. Digital Disruption Source: http://deloitte.wsj.com/riskandcompliance/files/2013/12/Technology_disruptors.png 5. Huge product selection of shoe brands Fast brand building Expand into clothing, sports, home, accessories Great customer feedback Expansion into further markets Founded in 2008, Germany by Robert Gentz, David Schneider, Rubin Ritter Multinational e-commerce company that specializes in selling shoes, clothing and other fashion & lifestyle products online Has become the leader in Europe fashion eCommerce by being fast growing European company ever with >1 billion net sales in 4 years Zalando Overview 2008: German online shoe shop 2010: Expansion to further categories 2013: Online store leader in the EU 6. Zalando SWOT Analysis STRENGHTS Market leader High growth rate Strong management team Access to capital: Funding $243.4M Total addressable market Europe: 500bn Lean structure Over 150 brands WEAKNESSES Investments in research and development No concrete plans of expansion Growing too fast Young management lack of experience OPPORTUNITIES Emerging market Expansion outside Europe Diversification (new fashion products) Growth rate and profitability THREATS Change in consumer habits Local competitors in specific counties Price changes Government regulations Existing competitors (Zappos, Amazon) SWOT 7. Target Audience Target Audience Female between 18- 55 years Male between 18-45 years Teenager under 18 years Zalando is presumed to have achieved an astonishing brand recognition rate of 95% Zalando builds relationships with its final consumers whom are the actual people who goes on the website and order products What could Zalando do better? Always Free Shipping Involve more men in ads Customer Service Zalando TV Virtual Fitting Room Shopping Experiences 8. Competitive Landscape 9. Zalandos current strategy ALT Zalando produces a quarterly glossy fashion magazine that already counts among the highest-circulation print magazines in Europe. Zalando carries out sales promotion by free delivery of the products, discounts on various products and coupons which can be redeemed later by the customers. Zalando heavily invest in building relation with universities, doing workshop and events. ( Eg: Hack week organised by Zalando) http://tech.zalando.com/pages/ events.html. BLT Zalando is leading its own blog and backed by brilliant search marketing They have poked around in social media, fancy TV ads, Google ads, and with the use of good content and linking, they have managed to optimize their page emphatically. their idea was go big or go home! Zalando is using Social Media to interact with the Customer. For example, Zalando has currently over 200.000 likes on Facebook fan pages and is using twitter, and all the other smart forward- looking social media concepts to illustrate itself perfectly. TLT Zalando using the social media and website attracting its customer for off line sales. Selling its own brand in a Pop-up store in Berlin, while offline, as an inaugural event for the brand. Although this doesnt really have an effect on share of sales, it definitely affects the brands recognition Zalando should reach customers more through TV, Print, E-newsletter, Blogs & APP as well. Through Applications on Google Play, Apple Store, Amazon Store, Window Store it can reaching more mobile devices and becomes a more accessible option 10. Social Media Analysis Zalando Stats 71k 10.7k 52k 28k 10k *Statistics as of 24/06/2014 Zalando requires a new innovative strategy to penetrate the market 11. Virtual Shopping Experience We introduce virtual fitting room Shopping Experience 12. Guerrilla Pitch Install Cisco StyleME Virtual Shopping Mirror Top Bus stops & Tube stations at Oxford Street Shopping centers - Westfield ( Stratford ) - Westfield ( Whitecity ) Let people Share experiences on Social Media Invite friends & Receive free vouchers Cisco StyleMe Virtual Mirror Technology How are we going to do that ? 13. Reach Tactics Audience Strategy Outcomes Search Engine Optimization Online Users Create awareness Trust Gain & Portal Sign-up Pay Per Click Online Users Create awareness Trust Gain & Portal Sign-up Affiliate Advertisement Online Users Create awareness Trust Gain & Portal Sign-up Online PR Online Users Create awareness Trust Gain & Portal Sign-up Social Media Marketing Online Users Create awareness Trust Gain & Portal Sign-up Interactive Videos Online Users Create awareness Trust Gain & Portal Sign-up Try Clothes using Augmented Reality using Virtual Fitting Room Share experience on Facebook, Twitter, YouTube (Earned) Reviews & Ratings (Earned) Social Media Strategy 14. Sales Funnel Awareness Leads Prospects Brand Marketing Activity on Website, Commercials etc. Create Huge variety of brands Quality Promotions & Offers Content Newsletter Customer Service Build Membership Loyalty Program Customer Specials Loyal Customer CRM Sales 15. CRM Market leader, due to: excellence operations, advertising, satisfied customers Relationships with final consumers no intermediaries & exclusive services Provider for customer management for supporting in concepts and technologies in order to optimise the customer management process Vitality holistic view of its customers during all stages of the customer life cycle Web 2.0 & Digital Marketing target individual & tailor the message to best suit their needs What is the future ? Take Care of unsatisfied Customers, Use Their Feedback to Improve Cocreation keep track of customers ( big data ) "increase" word of mouth 16. Customer Loyalty Filter Functions Detailed Product Views (Virtual Fitting Room) Online: Blog Offline: Magazine Reviews & Ratings i.e.: M&S Membership Extra promotions Exclusive Customer Service Lounge for Members Reward Points Improve Website Fashion Communities 17. Rewards & Reviews Zalando Lounge Membership Exclusive and inexpensive offers Promotions & discounts Monthly newsletter & latest shopping trends before others will get (exclusive) Size advisor Birthday gifts Loyal customers will get promotions, vouchers or 50% discount on next shopping Online Outlet Portfolio Shopping Experience Search for a dress get the whole outfit: right jacket, shoes, accessories, etc. 18. Conclusion In order to be the market leader Zalando is able to lead by providing Virtual Shopping experience to customers and create new customers too by creating a Guerrilla marketing strategy. It will increase company Brand Awareness and increase market share. Currently online websites such as Amazon, Ebay and others are not providing the Virtual Shopping experience. As being a new company to the industry disruptive technology like Cisco StyleMe can really help them grow faster by penetrating the market. 19. THANK YOU Stefanie Ahlers | Deepak Kumar | Faizan Ali | Giacomo Alpago Team 3 Q&A 20. https://www.cisco.com/web/about/ac79/docs/retail/StyleMeEngagementOve rview_120611FINAL.pdf http://de.statista.com/statistik/daten/studie/186124/umfrage/kundenzufried enheit-mit-der-bestellung-bei-webshops/ http://www.powerretail.com.au/pureplay/building-online-retail-shoes-up/ http://wearedevelopment.net/2012/03/11/zalando-a-crm-success-story/ http://www.searchenginejournal.com/two-top-european-clothing-giants- overpowered-search-marketing-competition/90027/ http://www.fashionunited.co.uk/fashion-news/fashion/zalando-explains-its- strategy-for-italy-2013041517385 http://www.messe- duesseldorf.de/drupa2012_ca/media/Serie_Online_Zalando_e.pdf http://cdn1.tnwcdn.com/wp-content/blogs.dir/1/files/2014/04/disruption- wheel.jpg http://www.zoho.com/crm/how-crm-works.html http://wearedevelopment.net/2012/03/11/zalando-a-crm-success-story/ Sources