Final Presentation

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Final Presentation

  1. 1. Title Subtitle
  2. 2. Introduction <ul><li>Fashion apparel retail store from Spain </li></ul><ul><li>A brand of the Inditex group </li></ul><ul><li>Established globally; 10 stores in the U.S. </li></ul><ul><li>Fashion at affordable prices positioning </li></ul><ul><li>Unique business model </li></ul>
  3. 3. SWOT : External Analysis <ul><li>Opportunities </li></ul><ul><li>S tandardized fashion industry </li></ul><ul><li>Downtrend for US department stores </li></ul><ul><li>Internet retailing </li></ul><ul><li>Increased buying power of Zara’s target market </li></ul><ul><li>Importance of differentiation in retailing </li></ul><ul><li>Metrosexuality trend </li></ul><ul><li>Threats </li></ul><ul><li>Established competitors </li></ul><ul><li>Economic downtrend – customers may turn to discount stores like TJ Maxx, Marshall’s, etc </li></ul><ul><li>Price sensitivity of Zara’s target market, looking for more at less </li></ul><ul><li>Continuous changing trends in the fashion industry </li></ul>
  4. 4. SWOT: Internal Analysis <ul><li>Strengths </li></ul><ul><li>Unique business model: vertical integration and working through the whole value chain </li></ul><ul><li>In - house production : flexibility in terms of variety, amount, sizes of products & very quick to response to needs of consumers </li></ul><ul><li>Central distribution: minimizing lead times </li></ul><ul><li>Best designs: very quick fashion follower </li></ul><ul><li>Weaknesses </li></ul><ul><li>Not realized economies of scale </li></ul><ul><li>Higher R&D costs to respond quickly and efficiently </li></ul><ul><li>No internet retailing </li></ul><ul><li>Tendency to prefer American brands : different tastes & expectations </li></ul><ul><li>Lack of brand awareness and equity </li></ul><ul><li>N o advertising besides in store </li></ul>
  5. 5. Marketing Problem <ul><li>Market saturation – fierce competition </li></ul><ul><li>Low brand presence – low brand awareness </li></ul>
  6. 6. Research Objectives <ul><li>Looking into the potential consumers’ buying behavior with regard to fashion apparel </li></ul><ul><li>- Consumers’ purchase intention </li></ul><ul><li>- Apparel purchase behavior </li></ul><ul><li>- Key attributes that consumers look for when buying apparel </li></ul><ul><li>Evaluation of the Zara product concept and potential </li></ul><ul><li>- Desired brand image for Zara </li></ul><ul><li>- Examine possibility of introducing Zara to the Boston market - Examine brand awareness and brand knowledge of Zara </li></ul><ul><li>- Examine proclivity toward shopping Zara’s clothes online </li></ul><ul><li>- Identify the best location for a Zara store in Boston </li></ul><ul><li>- Examine the potential for a male product line </li></ul>
  7. 7. Methodology <ul><li>Data Collection Method </li></ul><ul><li>Purpose of study: to gather information about consumers’ purchasing habits and behaviors, attitudes, awareness level, purchase intentions, brand’s positioning, competitors, etc. </li></ul><ul><li>secondary (exploratory) method </li></ul><ul><li>primary (descriptive) research: surveys </li></ul>
  8. 8. Methodology (cont’d) <ul><li>Sampling Method and Samples </li></ul><ul><li>Convenience sampling </li></ul><ul><li>Sample size: 100 people </li></ul>
  9. 9. Methodology (cont’d) <ul><li>Measures </li></ul><ul><li>- The questionnaire is divided into 3 sections </li></ul><ul><li>- Four kinds of different measurement levels: nominal, ordinal, interval, and ratio </li></ul><ul><li>Data Analysis </li></ul><ul><li>- SPSS software </li></ul><ul><li>- Frequencies, cross-tabulations, t-test, and one-way ANOVA </li></ul><ul><li>Action standard: moderate </li></ul><ul><li>- A top 2 box %: 50 % </li></ul><ul><li>- A mean score of 3.25. </li></ul>
  10. 10. <ul><li>Findings </li></ul>
  11. 11. Awareness <ul><li>58% have never heard about Zara </li></ul><ul><li>25% have heard, but never purchased its products </li></ul><ul><li>Break-down: </li></ul><ul><li>- 49% of females have heard or have purchased from Zara </li></ul><ul><li>- 62 % in the less than $20K income group </li></ul><ul><li>- 48% for the 26-35 age group </li></ul>
  12. 12. Usage Behavior <ul><li>Target Market: </li></ul><ul><li>Shop about twice a month (34%) </li></ul><ul><li>Spend mostly $30-$50 (26%) or “more than $110 ” (24%) per month </li></ul><ul><li>24% bought something “trendy” in the last 2 weeks </li></ul><ul><li>Most utilized channel to shop from: s pecialty store (1.82), followed by department store (1.97) </li></ul>
  13. 13. Factors Influencing Buying Decision
  14. 14. Factors When Selecting a Store <ul><li>Variety of product choices (3.06) </li></ul><ul><li>D iscounts offered (3.29) </li></ul><ul><li>S tore l ocation (3.58) </li></ul>
  15. 15. Overall Evaluation <ul><li>Gender differences </li></ul><ul><li>- females more positive evaluation </li></ul><ul><li>Age differences </li></ul><ul><li>- oldest least positive </li></ul><ul><li>Income differences </li></ul><ul><li>- middle income group least positive </li></ul>
  16. 16. Brand Image
  17. 17. Purchase Intention <ul><li>Top 2 Box % of 50 </li></ul><ul><li>Mean score: 3.37 </li></ul><ul><li>Females more </li></ul><ul><li>inclined to purchase </li></ul><ul><li>Age and income </li></ul><ul><li>differences </li></ul><ul><li>Average Spending </li></ul><ul><li>Total: 30% - $30 to $50; 27% - $51 to $70 </li></ul><ul><li>34% of females - $30 to $50; 35% of males - $51 to $70 </li></ul><ul><li>Spending increases with age </li></ul>
  18. 18. Effective Promotional Tools
  19. 19. Placement <ul><li>Online Shopping </li></ul><ul><li>Largely neutral attitude: mean score 2.77 </li></ul><ul><li>No gender difference </li></ul><ul><li>Middle age group: most inclined (3.06) </li></ul><ul><li>Middle income group: least inclined (2.68) </li></ul><ul><li>Store Location </li></ul><ul><li>Newbury Street strongly favored: mean score 4.22 </li></ul><ul><li>Prudential Center (3.99) and Copley (3.98): second alternatives </li></ul>
  20. 20. Conclusion <ul><li>LAUNCH </li></ul><ul><li>Target market: females aged 18-25 </li></ul><ul><li>young, trendy, economically conservative, and fun </li></ul><ul><li>Trendy, attractive, young brand image </li></ul><ul><li>Unique business model - success </li></ul>
  21. 21. Recommendations <ul><li>Product </li></ul><ul><li>Zara will offer fresh, stylish, trendy, vibrant products to the female consumer </li></ul><ul><li>Price </li></ul><ul><li>$30-$70: keep current pricing strategy </li></ul>
  22. 22. Recommendations (cont’d) <ul><li>Promotion </li></ul><ul><li>On first day of opening, offer 10% off purchase and first 100 purchasing customers to receive free gift bag to include Zara tee and gift certificate for $10 off future purchase </li></ul><ul><li>End of first month after opening will implement friend/family discount - bring someone, and they both receive 15% off their purchase </li></ul>
  23. 23. <ul><li>Placement </li></ul><ul><li>Respondents rate Newbury Street as their top retail location </li></ul><ul><li>Launch Zara here to take advantage of convenient public transportation and high foot traffic </li></ul><ul><li>Focus on building Zara brand awareness before implementing online store </li></ul>Recommendations (cont’d)
  24. 24. Future Research Direction <ul><li>Measure brand awareness and attitude </li></ul><ul><li>Male consumers </li></ul><ul><li>Online store </li></ul>
  25. 25. <ul><li>Questions and comments? </li></ul><ul><li>Thank you! </li></ul>

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