zaras launch startegic marketing presentation
TRANSCRIPT
GROUP MEMBERS
DANISH ALI
FAHAD AIJAZ SIDDIQUI
IMRAN ZULFIQAR
MEHWISH HUSSAIN
MUHAMMAD SAFWAN
PRESENTED TO: MR FAZAL RABBI
OVERVEIW
Zara is a Spanish clothes and accessories brand, it is the flagship
brand of the Inditex group. Few clothing brands keep up with the
latest fashion, are of high quality and yet, affordable. It is probably
the amalgamation of all these qualities that made Zara, the Spanish
clothing brand become the go-to fashion brand for all.
ZARA’S CURRENT
BUSINESS SITUATION
FORBES: 53 MOST VALUABLE BRAND
FLAGSHIP BRAND OF INDITEX WITH AROUND 2100
STORES WORLDWIDE
A UNIQUE ABILITY TO DEVELOP NEW PRODUCT
AND LAUNCH WITHIN ONLY TWO WEEKS
ADDED 77 STORES IN 2015 IN ITS PORTFOLIO
ZARA’S MISSION
“Zara moves at the pace of society, fashion ideas, and trends
that society itself has natured. Hence its success among
people, cultures & generation that, inspite of their
differences, share a special sensitivity for fashion”.
ZARA’S VISION
“To meet and satisfy the desires of
customers, we always engage in
innovating our business. we promise
excellent quality clothes with unique
designs”.
SITUATION ANALYSIS
Zara a customer centric company whose business model
rotate around customer demand.
FIVE KEYS OF THE ZARA’S
BUSINESS MODEL
CUSTOMER
STORE
LOGISTICS
TEAMS
DESIGN &
PRODUCTION
A business model is a description
of how a business creates and
delivers value, both for the
customer and for the company. It
is a short-hand description of the
business of a company or
business unit. The description is
at a high level of aggregation and
provides a quick “big picture”
overview. If we describe the
business model of a specific
company we focus our description
on those components that are the
most important for the value
creation of the company, and that
set the business model apart from
the others.
STORE
“MEETING POINT BETWEEN THE
CUSTOMER AND THE ZARA FASION OFFER”
2100 Stores collect information regarding customer demands
New products introduced twice a week
Meticulously designed shop windows
Maximum attention to interior and exterior architectural design
Appropriate coordination of garments
Excellent customer care
DESIGN & PRODUCTION
“INSPIRATION COMES FROM THE STREET,
MUSIC AND ART…. BUT ABOVE ALL, THE
STORE”
Proximity of production facilities
Immediate reaction to trends
Continuous work for all teams
Managers- Teams- Customer demands
forms- designs- fabrics- compliments
2400 suppliers, 260 designers
LOGISTICS
“HIGHLY FREQUENT AND CONSTANT DISTRIBUTION PERMITTING THE
OFFER TO BE CONSTANTLY RENEWED”
Millions of garments distributed
6000 employees at logistics locations
Designed with maximum flexibility
Customer oriented
TEAMS
“TEAMS WITH VAST SALES KNOWLEDGE
GEARED TO TOWARDS THE
CUSTOMERS”
150,000 critical-thinking professionals
Customer oriented
Make the store a pleasant environment
Apply corporate, social and environmental responsibility
in day-to-day work
ZARA’S PERFORMANCE
BRAND VALUE
25.1$ BILLION
SALES
19.7$ BILLION
2100 STORES
7000 Inditex
91 COUNTRIES
ZARA’S STARTEGIC MARKETING
OBJECTIVES
“OVERALL MARKETING OBJECTIVE:
INCREASE THE CUSTOMER EQUITY”
Increase the customer satisfaction
Increase brand awareness and favorable attitudes among
consumers
Continue to grow by extending the Zara fashion brand
INDUSTRY
“HIGH STREET FASION BRAND”
INDUSTRY TREND
Democratization of luxury
Street trends
Designer houses
KEY SUCCESS FACTORS
Differentiation
New fashion consumer
CONSUMER ANALYSIS
“MORE CHOICE, MORE EDUCATED, MORE SAAVY AND DEMANDING”
“NEW BREED OF SHOPPERS”
LOYALITY
VARIETY
FRESHNESS
COMPETITOR’S
ANALYSIS
Swedish multinational c
lothing-retail company
SALES: $20.2 billion
4000 stores
62 countries
Brand value: $16 Billion
Brands: COS, & Other
Stories, Cheap Monday,
Monki, Weekday
COMPETITOR’S ANALYSIS
American worldwide
clothing and accessories
retailer.
SALES: $16.4 Billion
3727 stores
34 countries
Brand value: $12.2 Billion
Brands: Banana
Republic, Old
Navy, Intermix, and Athleta
COMPETITOR’S ANALYSIS
Japanese casual wear designer, manufacturer and retailer
SALES: $16.6 billion
1400 stores
16 countries
Brand value: $9 Billion
Brands: Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princesse Tam Tam
COMPETITOR’S ANALYSIS
Irish clothing retailer
SALES: $ 7.5 billion
325 stores
11 countries
Brand value: $6 Billion
Products: New born and kids clothing, women's wear, men's wear, home ware, accessories, footwear, beauty products and confectionery.
COMPETITOR’S ANALYSIS
American retailer that focuses casual wear for youngsters
SALES: $ 3.7 billion
1244 stores
11 countries
Brand value: $6 Billion
Brands: Abercrombie Kids, Hollister Co., Gilly Hicks, Ruehl No.925
ANALYSIS OF INTERNAL ENVIRONMENT OF ZARA
1. Resource Capabilities
Zara is deployed within the flexible and integrated Inditex business
model (Inditex, 2012).
2. Customer Driven
Zara offers a convincing mix of up-to-date styles and value at reasonable
prices.
It has a unique creation policy for Inditex:
36,000 fresh designs per year; about one-fourth go into creation.
Fresh items arrive in stores 2-6 times per week.
It relies on straight communication – very little traditional advertising:
Every day in-store feedback allows constant adjustment of collections.
Phone discussions between shop managers and market experts ensure
that the styles are desirable.
Attractive shops are established in key locations.
ANALYSIS OF INTERNAL ENVIRONMENT OF ZARA
3. Distribution and Logistics
Central distribution is conducted from one major location
.
Shops internationally receive delivery twice a week
Orders go to shops within 1-2 days.
STRENGTHS
Fast delivery of new Products and Trends in market
Lower Quantities
HIGH FASION FOR MODEST PRICES
WEAKNESSES
HIGH RESEARCH AND DEVELOPMENT COSTS
DON’T USE CELEBRITIES
DOES NOT SPEND MUCH MONEY ON ADVERTISING
ONE MANUFATURING AND DISTRIBUTION CENTRE IN THE
WORLD
OPPORTUNITIES
Global Market Penetration
Online Market
RESPONDING TO CURRENT INDUSTRY
TRENDS
IDENTIFYING THE NEED FOR THE PRODUCT
IN THE MARKET
THREATS
MARKET ENTRY BARRIERS from Local and Global
Competitor's
DESIGN CHALLENGES
EXISTING CUSTOMER REACTIONS
LOW COST IN SWITCHING
PORTER’S FIVE FORCES
MODEL OF ZARA
Rivalry: High
High exit barrier
Threat of New Entry: High
High fixed cost
Long sales cycle
Supplier Power: Low
Vertical Integration
Threat of Substitute: Moderate
H & M, GAP, Mango
Low buyer’s switching cost
Substantial customer loyalty
Buyer power: Moderate
Trend fashion
Price
SEGMENTATION AND
TARGETING URBAN POPULATION
AGED: 18-40
MOST FASHION CONSCIOUS GROUP
WOMEN 65%
MEN 25%
CHILDREN 15%
MIDDLE CLASS AND UPPER CLASS
CONSCIOUS ABOUT THEIR LOOK
ENJOY SHOPPING AND SOCIALIZING
HECTIC LIFE STYLE
65%25%
15%
SEGMENTATION
Women
Men
Kids
POSITIONING“FAST HIGH FASHION AT
AFFORDABLE PRICE”
“THE ONLY TRUE FASHION BRAND THAT THINKS ABOUT YOUR STYLE OF
CLOTHING, RESPECT IT AND DESIGNS SPECIALLY FOR IT”
CUSTOMER
MARKET RESEARCH
FASHION TRENDS
WHAT THE CULTURE ABOUT
DEFFERENTIATE ZARA FROM LOCAL COMPETITORS
DESIGN PRODUCTS THAT COMPLEMENT THE CUSTOMER
FASHION STYLE
PRODUCT SYMBOLISM
AIM AT CUSTOMER LOYALTY
COST
MARKET RESEARCH
LOCAL COMPETITORS PRICE
ACCORDING TO MARKET NEEDS
AS ZARA IS NEW FOR PAKISTAN MARKET, SO PREMIUM
PRICE STRATEGY WOULD BE ADOBTED
BUT FOR MIDDLE CLASS, QUALITY WOULD NOT BE
COMPRIMISED AS PER ZARA’S MISSION
CONVENIENCE
BRAND WILL BE AVAILABLE AT CONVIENT STORES, ONLINE STORES
CUSTOMERS WILL BE EASILY ACCESSING THE BRAND FROM ONLINE
PORTAL
24/7 HELPLINE WOULD BE DEVISED FOR TAKING CUSTOMER
ORDERS AND COMPLAINTS
DHA, GULSHAN, GULISTANE JAUHAR, NAZIMABAD AND SADDAR
SELECTED FOR THE CONVENIENT STORES
COMMUNICATION
INFORM ABOUT THE NEW BRAND
CREATE POSITIVE EMOTIONS IN CONNECTION WITH
THE NEW BRAND
GENERATE CONSUMER INTEREST AND PURCHASE
INTENTIONS
COMMUNICATION
TVS ADS, RADIO ADS
BILLBOARDS AND NEWSPAPERS ADS
FEATURING THE BRAND WITH ARISING THE
EMOTIONAL APPEAL OF THE CONSUMER PREPARING
THEM FOR PURCHASE DECISION.
IT WILL BE TWO WAYS COMMUNICATION ADS. FOR
FEEDBACK AND QUERY RESOLUTION, A PLATFORM
IN THE FORM OF 24/7 HELPLINE AND WEBSITE
LOGINS WILL BE GENERATED SO THAT CONSUMER
CAN BE FACILITATED SMOOTHLY.
BRAND COMMUNICATION
CSR: DEISGN COMPETITION FOR FASHION
STUDENTS
POSSIBLE MEDIA COOPERATION WITH
MEDIA REALITY SHOWS
PROMOTE INCLUSIVENESS AND
INDIVIDUALISM
PR
EFFICIENT PRODUCT PLACEMENT IN
MAGAZINES AND NEWSPAPERS
EDITORIAL COVERAGE WITHOUT ADVERTSING
EXPENSE
USE THE JOURNALIST AS AN EXPERT SOURSE TO
BUILD BRAND TRUST
INTERNET
USE THE INTERNET WEBSITE AS A MAIN COMMUNICATION TOOL
FEATURE THE CSR INITIATIVE TO BUILD THE BRAND AWARENESS
FEATURE VIRAL VIDEOS
USE THE CONSUMER EXPERIENCE TO BUILD BRAND TRUST
USE INSTAGRAM, FACEBOOK, TWITTER, YOUTUBE FOR ADS AND VIDEOS POSTING
EVENTS
ZARA CELEBRATES
DIVERSITY WITH ITS
LAUNCH
LAUNCH IN 5
LOCATIONS SPECIALLY
IN MALLS
OFFER THE REAL
EXPERIENCE AND
WHAT IT STANDS FOR