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Zara marketing plan
 

Zara marketing plan

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    Zara marketing plan Zara marketing plan Presentation Transcript

    • Submitted by:Fatemeh Hashemi 093014007Mojdeh Radkani 083016009Farshid Zamanirad 093014012Mehdi Ebrahim zadehNamvar 093010232Abdul Mukhtar Ghafarzoy103014016Polina Martsyanova093016001 May2011
    • 5/31/2011 2
    • 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
    • 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
    • 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
    • 5/31/2011 6
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 5/31/2011 20
    • 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
    • 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
    • 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
    • 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
    • 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
    • 5/31/2011 26
    • 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
    • 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
    • Integrated Marketing Strategy Price Product Customer focused Place Promotion5/31/2011 29
    • 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
    • Integrated Marketing Strategy Price Product Customer -focused Place Promotion5/31/2011 31
    • 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
    • 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
    • Curvy is the new black by ZARA5/31/2011 34 5/31/2011 34
    • 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
    • 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
    • PR Lookbook5/31/2011 37 5/31/2011 37
    • 5/31/2011 38
    • 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
    • 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
    • Integrated Marketing Strategy Price Product Customer -focused Place Promo4on5/31/2011 41
    • 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
    • Integrated Marketing Strategy Price Product Customer -­­focused Place Promo4on5/31/2011 43
    • 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
    • 5/31/2011 45
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis 5/31/2011 52