zara mkt pln

Submitted by:

Fatemeh Hashemi 093014007

Mojdeh Radkani 083016009

Farshid Zamanirad 093014012

Mehdi Ebrahim zadeh

Namvar 093010232

Abdul Mukhtar Ghafarzoy

103014016

Polina Martsyanova

093016001

May2011

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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 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.

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 offer.”

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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Market

Summary

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

Demogra

phics

Psychogra

phics

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 and

Governmental 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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1,688

Stores

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 Competencies14

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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

affordable prices

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 Analysis14

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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.

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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1

2

3

4

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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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Tangible

Resources

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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


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 lookbook

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PR Lookbook

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Brand


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 women

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Brand


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 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

Affordable prices, good quality

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 objectives

People 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 14

Industry trends

Key success factors

for the new product line

(+size women)

Democratization of luxury

Inclusiveness

Street trends

Differentiation & individualism

Respect to the figure characteristics

High street fashion brand

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

  Consistent with our current approach

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Gathering Information for control

Qualitative

Goals: insight into the mind of

the consumer

- satisfaction

- gain more insights into the

product positioning

- test communication strategies

Also:

- test product attributes in terms

of fit, cuts, colors, communication

& marketing strategy

Quantitative

Goals: gather data on consumer

attitudes, past behaviors, intended

behaviors

How many people:

-like or bought the product?

-turned back the product?

-complained?

- also growth of the segment? etc.

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1 2

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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 mkt pln

Documents

market analysis5312011

market share

zara walks

zara businessmodel5312011

zara cont

beginning zara

audit micro envt

clothing industry