Submitted by:Fatemeh Hashemi 093014007Mojdeh Radkani 083016009Farshid Zamanirad 093014012Mehdi Ebrahim zadehNamvar 0930102...
5/31/2011   2
Company Overview                   Zara is a Spanish chain store of Inditex Group, one of the                   world’s bi...
5 Keys of the Zara BusinessModel                “Teams with vast sales knowledge                 “Meeting point between   ...
Business Mission                                     “ZARA walks at the pace of society,                                  ...
5/31/2011   6
Ext. Audit- Micro Envt. Market Analysis                                                            2005 = 3.3 billions    ...
Target Market                                                     Clothes that fit their body shape and                  Pl...
Ext. Audit- Micro Envt. Market Analysis                                                                          120      ...
Ext. Audit- Micro Envt. Competitors                                  1         Hennes & Mauritz                           ...
Ext. Audit- Micro Envt. Manufacturing &Distribution                                   Unlike similar apparel retailers,   ...
Ext. Audit- Micro Envt Consumer Analysis                                    Today’s fashion consumer:                     ...
Ext. Audit-Macro Envt. PESTEL Analysis                                                              Zara would have to wor...
Ext. Audit- Macro Envt. Porters Five Forces                                               Threats of    Very High         ...
Internal Audit-Zara’s Performance                                               159 store                                 ...
14                                              Internal Audit-Core Competencies                                          ...
Internal Audit- Positioning                                         The only true fashion                                 ...
14                                                             Internal Audit-Critical Issues                             ...
14                                                                                     SWOT Analysis                      ...
5/31/2011   20
Strategic Marketing Objectives              Overall marketing objectives: increase              customer equity           ...
Marketing Objectives-Strategic thrust                  Product Development            1              Market Penetration   ...
Zara’s Product Life Cycle Curve                  Zara is in a high fashion industry and its product offering              ...
Core Strategy                                       1- Outsourced vs. In-house                                       manuf...
Competitive advantages                                  1     Demand Reaction vs. Demand Forecasting                      ...
5/31/2011   26
Business Resources                                                          Physical resources:                           ...
Business Resources                                                          Brand: is amongst the three most              ...
Integrated Marketing Strategy                                         Price            Product                            ...
Customer-focused Product                              Feel product. Increase: Interest, Involvement , Emotion            1...
Integrated Marketing Strategy                                         Price            Product                            ...
Promotion Strategy                                 Main Communication objectives                                 •Inform a...
Advertising , Creative, Production & Placement                    High fashion look                Full shape body model  ...
Curvy is the new black                         by ZARA5/31/2011                              34  5/31/2011                ...
Below-the-line campaign            Brand                              PR             Internet   Event            COM      ...
Below-the-line campaign            Brand                    PR            Internet             Event            COM       ...
PR Lookbook5/31/2011      37  5/31/2011      37
5/31/2011   38
Below-the-line campaign              Brand                                  PR               Internet   Event             ...
Below-the-line campaign            Brand                    PR              Internet           Event            COM       ...
Integrated Marketing Strategy                                        Price            Product                             ...
Pricing Strategy             Follow the brand pricing strategies            Affordable prices, good quality            No d...
Integrated Marketing Strategy                                          Price            Product                           ...
Distribution Strategy                •Important communication channel                • Point taking the pulse of market   ...
5/31/2011   45
14                                                                    Evaluation and Control                       Key Per...
Mission, Marketing Mix & Control                       Evaluation of our plan according to Mission statement :“ZARA walks ...
14                                                           Industry Analysis &Control               Industry trends     ...
Objectives & Control                       General Objectives                           Develop a consumer focused product...
Gathering Information for control                                                 1                                       ...
Implementation Roadmap                             Jan   Feb   Mar   April   May   June   July Aug   Sept   Oct   Nov    D...
The Zara BrandIndustry Anlysis   Product Development Consumer Analysis Market Analysis 5/31/2011                          ...
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Zara marketing plan

  1. 1. Submitted by:Fatemeh Hashemi 093014007Mojdeh Radkani 083016009Farshid Zamanirad 093014012Mehdi Ebrahim zadehNamvar 093010232Abdul Mukhtar Ghafarzoy103014016Polina Martsyanova093016001 May2011
  2. 2. 5/31/2011 2
  3. 3. 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.The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 3
  4. 4. 5 Keys of the Zara BusinessModel “Teams with vast sales knowledge “Meeting point between geared to towards the customer.” the customer and Make the stores a pleasant the Zara fashion offer.” environment. New products introduced twice a week. Top locations :17 visits / year / customer Lead role in: •  Store design •  Production •  Logistics •  Team “Inspiration comes from the store.” Designed with maximum flexibility. Immediate reaction to trends. Customer oriented. 1,186 suppliers,200desginers 24H – receiving order to store delivery .5/31/2011 4
  5. 5. Business Mission “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.The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 5
  6. 6. 5/31/2011 6
  7. 7. Ext. Audit- Micro Envt. Market Analysis 2005 = 3.3 billions 2005 till 2012 = 38% women (60%) and men (25%), 15 which is equal to 4.5billion to 45& children (15%).. fashion- conscious ,Educated and relatively middle-class. Market Market Market Market Summary Needs Trends Growth • Exclusivity • Population trends • Affordability • An increase in the level • Differentiation of concentration • Experience • Internationalization in the clothing sector. • E-commerce and Tele-shopping. • New sense of style/fashion5/31/2011 7
  8. 8. Target Market Clothes that fit their body shape and Plus size, full shape body women make them look beautiful Main Demogra Psychogra Benefits segment phics phics sought Aged 18-40 Interested in fashion trends Work in big cities Conscious about their looks pursuing Higher-level education / Enjoy shopping and socializing Mid-range income Hectic lifestyle5/31/2011 8 5/31/2011 8
  9. 9. Ext. Audit- Micro Envt. Market Analysis 120 100 Market Share 100 80 76 15% 60 40 Petite Plus Size 20 25% 60% Normal 0 Size 2006 2012 Segment Growth: 40% increase by 2014. Only 5% of retail space is dedicated to the +size productsThe Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 9
  10. 10. Ext. Audit- Micro Envt. Competitors 1 Hennes & Mauritz 2 Gap 3 Benetton 4The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 10
  11. 11. Ext. Audit- Micro Envt. Manufacturing &Distribution Unlike similar apparel retailers, Zara controls most of the steps is a vertically on the supply-chain: integrated retailer It designs, produces, and distributes itself.5/31/2011 11
  12. 12. Ext. Audit- Micro Envt Consumer Analysis Today’s fashion consumer: More choice, more educated, more savvy & demanding “New breed of shoppers” Loyalty, variety, freshnessThe Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 12
  13. 13. Ext. Audit-Macro Envt. PESTEL Analysis Zara would have to work Zara would need to know according to the trend and the trade system of importing satisfy customer’s demand the good in the country and due to change in generation Governmental policies. choices. Political& Technological Environmental Economical Social Legal Online shopping, bar coding and computer aided designs are all improvements to benefit Zara and its customers. Zara should be aware of interest rates, taxation changes, economic growth, inflation , groups environmental commitment of Zara have a exchange rates, and Tariffs. direct impact on their shops ,products and policies.The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 13
  14. 14. Ext. Audit- Macro Envt. Porters Five Forces Threats of Very High substitute, product Medium Threats of new entrants Rivalry among existing High competitors Bargaining power of suppliers Market is moderate/High Bargaining Moderate power of buyers5/31/2011 14
  15. 15. Internal Audit-Zara’s Performance 159 store openings in 2011-2012 (Australia &News land) Brand Value: 1,688 2 new countries $ 8,609 M Stores in 2011 Sales 77 € 7.077 ZARA Countries MillionThe Zara Brand Product Development Consumer Analysis Market Analysis Industry Analysis 5/31/2011 5/31/2011 15
  16. 16. 14 Internal Audit-Core Competencies • Low level of inventory due to Fast supply chain. Core Competencies • Efficient distribution system. • Commitment of its employees. • Flexible production system.The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 5/31/2011 16
  17. 17. Internal Audit- Positioning The only true fashion brand that thinks Fast high fashion at about your body shape, affordable prices respects it and designs especially for it .5/31/2011 17 5/31/2011 17
  18. 18. 14 Internal Audit-Critical Issues •Maintaining Zaras ability to respond effectively to market needs. Critical •Try to optimize high cost of Issues development and training. • Maintain customer care properly.The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 5/31/2011 18
  19. 19. 14 SWOT Analysis • Brand loyalty • Higher costs arising from •Brand awareness vertical integration and • Efficient distribution training personnel • Information technology • Lack of E-commerce • High fashion for modest • New in this segment price • short lead time from design to sale, 15 days • Global market penetration • Online market ( Expand into • Fluctuation in exchange Internet.) rates • Offer different styles in • Market entry barriers different stores within the • Design challenges same city. • Global competitors • Brand image • Local competitorsThe Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 5/31/2011 19
  20. 20. 5/31/2011 20
  21. 21. 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 consumers5/31/2011 21 5/31/2011 21
  22. 22. Marketing Objectives-Strategic thrust Product Development 1 Market Penetration 2 •Zara’s success = unique approach to •Zaras aggressive expansion strategy product development. 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.The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis5/31/2011 22 5/31/2011 22
  23. 23. 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.The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 23
  24. 24. Core Strategy 1- Outsourced vs. In-house manufacturing 2-Sales Data and feedback to manufacturing 3-Information and Communication Technologies5/31/2011 24 5/31/2011 24
  25. 25. Competitive advantages 1 Demand Reaction vs. Demand Forecasting 2 Fast Manufacturing 3 Limited advertising 4The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 25
  26. 26. 5/31/2011 26
  27. 27. Business Resources Physical resources: 1-Stores: 1,688 in 77 countries 2- Factories: 20 3-Total selling area : 488,400m² Tangible Financial Resource: Resources Invested capital:1050 million (Euros) Human resource: 92,301 from more than 140 nationalities HThe Zara BrandIndustry Analysis Product Development Market Analysis Consumer Analysis5/31/20115/31/2011 5/31/2011 2727
  28. 28. Business Resources Brand: is amongst the three most recognized brands in Spain. Image :Zara is a fast fashion clothes company Intangible Economic goodwill: excellent reputation in Resources quality and price Business Methodology: In time inventory system Zara Trade MarkThe Zara BrandIndustry Analysis Product Development Market Analysis Consumer Analysis5/31/2011 285/31/2011 5/31/2011 2828
  29. 29. Integrated Marketing Strategy Price Product Customer focused Place Promotion5/31/2011 29
  30. 30. Customer-focused Product Feel product. Increase: Interest, Involvement , Emotion 1)  Back to the drawing board Design products that complement the full body shape Incorporate consumer feedback on salience attributes. 2) Product symbolism Zara knows my body shape. I look good in Zara clothes. I feel beautiful . 3) Colors and material Important choice for perceived quality of the products. Bring the fresh look to the plus size segment. 4) The ZARA label Feed on the existing Zara name and values associated with the brand and Aim at customer loyalty5/31/2011 30
  31. 31. Integrated Marketing Strategy Price Product Customer -focused Place Promotion5/31/2011 31
  32. 32. Promotion Strategy Main Communication objectives •Inform about the new line. •Create positive emotions in connection to the new line •Generate consumer interest and Above-the-line: Purchase intention Print advertising Bellow-the-ine: Brand communication PR Internet Events Media cooperation5/31/2011 32
  33. 33. Advertising , Creative, Production & Placement High fashion look Full shape body model Ad tonality Ad placement High fashion monthly magazines: Ad format Double page spread Vogue, Marie Claire, Harper’s Minimum copy Bazaar Zara logo Fashion monthly magazines: Glamour, InStyle, Joy, Petra Zara Curvy is the new black Independent magazines: WAD, Pool5/31/2011 33
  34. 34. Curvy is the new black by ZARA5/31/2011 34 5/31/2011 34
  35. 35. Below-the-line campaign Brand PR Internet Event COM CSR: design competition for fashion students Possible media cooperation with reality shows such as Project Runway5/31/2011 35
  36. 36. Below-the-line campaign Brand PR Internet Event COM 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 lookbook5/31/2011 36
  37. 37. PR Lookbook5/31/2011 37 5/31/2011 37
  38. 38. 5/31/2011 38
  39. 39. Below-the-line campaign Brand PR Internet Event COM 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 women5/31/2011 39
  40. 40. Below-the-line campaign Brand PR Internet Event COM 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 for5/31/2011 40
  41. 41. Integrated Marketing Strategy Price Product Customer -focused Place Promo4on5/31/2011 41
  42. 42. Pricing Strategy Follow the brand pricing strategies Affordable prices, good quality No deviation from what Zara is as brand: consistency across lines5/31/2011 42
  43. 43. Integrated Marketing Strategy Price Product Customer -­­focused Place Promo4on5/31/2011 43
  44. 44. Distribution Strategy •Important communication channel • Point taking the pulse of market • Consistent & strong store image = High store loyalty Store Location • In a prime location • easy to reach by the metro, bus or walking. 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.The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 44
  45. 45. 5/31/2011 45
  46. 46. 14 Evaluation and Control 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.The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 46
  47. 47. 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 groups 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 todays +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!The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 47
  48. 48. 14 Industry Analysis &Control Industry trends Democratization of luxury Inclusiveness Street trends Differentiation & individualism Key success factors Respect to the figure characteristics for the new product line High street fashion brand (+size women) New fashion consumersThe Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 48
  49. 49. 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 approachThe Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 49
  50. 50. Gathering Information for control 1 2 Qualitative Quantitative Goals: insight into the mind of Goals: gather data on consumer the consumer attitudes, past behaviors, intended - satisfaction behaviors - gain more insights into the product positioning - test communication strategies How many people: Also: -like or bought the product? - test product attributes in terms -turned back the product? of fit, cuts, colors, communication -complained? & marketing strategy - also growth of the segment? etc.The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 50
  51. 51. 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 Evaluation5/31/20115/31/2011 51
  52. 52. The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 52
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