zara marketing plan

Submitted by:Fatemeh Hashemi 093014007Mojdeh Radkani 083016009Farshid Zamanirad 093014012Mehdi Ebrahim zadeh Namvar 093010232Abdul Mukhtar Ghafarzoy 103014016Polina Martsyanova 093016001

May2011

Marketing Plan(+Size Women)

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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 theworld’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 thedesign, manufacturing and distribution so he could makeclothes 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 o er.”ff

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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“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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MarketSummary

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

Demographics

Psychographics

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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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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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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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 andGovernmental 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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1,688Stores

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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Core Competencies 14

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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 a ordable prices ff

The only true fashion

brand that thinks

about your body shape,

respects it and

designs especially for it .

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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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SWOT Analysis

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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,how?

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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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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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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TangibleResources

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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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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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Brand COM

PR Internet Event

E cient product placement in ffi 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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Brand COM

PR Internet Event

Use the website as a main communication channel

Feature the CSR initiative to build awareness

Include advices on di erent body ffshapes and product cuts

Use the online communicates to reach the young , tech , savvy women

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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: o er the real ff experience of the brand and

what it stands for

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Customer-focused

Place

Price

Product

Promo4on

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Pricing Strategy

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Follow the brand pricing strategies

A ordable prices, good qualityff

No deviation from what Zara is as brand: consistency across lines

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Customer- focused ‐

Place

Price

Product

Promo4on

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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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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 objectivesPeople for monitoring and control of the marketing plan :

• Marketing Executives• Sales Managers

• Media Managers • Market Research Departments

• Product Managers.

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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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Industry Analysis &Control

High street fashion brand

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Industry trends

Key success factorsfor the new product line(+size women)

Democratization of luxury

Inclusiveness

Street trends

Differentiation & individualism Respect to the figure characteristics New fashion consumers

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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 – use core competencies & reinforce brand values with a new twist

  Consistent with our current approach

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Gathering Information for control

Qualitative

Goals: insight into the mind of the consumer

Focus Group new product idea & concept exploration gain more insights into our product positioning test communication strategies

Test marketing Test product attributes in terms of fit, cuts, clors, communication & marketing strategy

Quantitative

Goals: gather data on consumer attitudes, past behaviors, intended behaviors .

Data like:How many people: -like or bought the product? -turned back the product?-complained?

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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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zara marketing plan

Documents

w zara

w commitment

w ecommerce

auditmacro envt

audit macro envt

w low level

w flexible production

zara controls