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
5/31/2011
Company Overview
Zara is a Spanish chain store of Inditex Group, one of the

worlds biggest retail store in the world.
Founded by Amancio Ortega, in 1975 in Spain,

where its still home to its 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

5/31/2011
Product Development Consumer Analysis Market Analysis

3
5 Keys of the Zara BusinessModel

Teams with vast sales knowledge
geared to towards the customer.
Make the stores a pleasant
environment.
Meeting point between

the customer and
the Zara fashion oer.
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.
Immediate reaction to trends.
1,186 suppliers,200desginers
Designed with maximum exibility.

Customer oriented.
24H receiving order to store delivery
.
5/31/2011
Business Mission
ZARA walks at the pace of society,

dressing ideas, trends and tastes that
society itself has matured.
Zaras mission statement itself shows that:
The business is in clothing industry.
Its market is all society members.
Zaras value and goals are related to
satisfaction the customers matured tastes.

5/31/2011

5
5/31/2011
Ext. Audit- Micro Envt. Market Analysis

2005 = 3.3 billions
2005 till 2012 = 38%
which is equal to 4.5billion
women (60%) and men (25%), 15

to 45& children (15%).. fashionconscious ,Educated and relatively
middle-class.
Market
Summary
Market
Needs
Exclusivity
Affordability
Differentiation
Experience
5/31/2011
Market
Trends
Market
Growth
Population trends
An increase in the level
of concentration
Internationalization in the
clothing sector.
E-commerce and Tele-shopping.
New sense of style/fashion
Target Market
Plus size, full shape body women
Main
segment
Demogra
phics
Aged 18-40
Work in big cities
pursuing Higher-level education /
Mid-range income
5/31/2011
5/31/2011
Clothes that t their body shape and

make them look beautiful
Psychogra
phics
Benets
sought
Interested in fashion trends

Conscious about their looks
Enjoy shopping and socializing
Hectic lifestyle
Ext. Audit- Micro Envt. Market Analysis

120
Market Share
100
100
76
80
15%
60
Petite
25%
60%
Plus Size
Normal
40
20
0
Size
2006
2012
Segment Growth: 40% increase by 2014.

Only 5% of retail space is dedicated to the +size products
The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis
5/31/2011
Ext. Audit- Micro Envt. Competitors
Hennes & Mauritz
Gap
Benetton
5/31/2011
10
Ext. Audit- Micro Envt. Manufacturing &Distribution
is a vertically
integrated retailer
5/31/2011
Unlike similar apparel retailers,

Zara controls most of the steps
on the supply-chain:
It designs, produces, and
distributes itself.
11
Ext. Audit- Micro Envt Consumer Analysis

Todays fashion consumer:
More choice,
more
educated, more
savvy
& demanding
New breed of shoppers

Loyalty, variety, freshness
5/31/2011
12
Ext. Audit-Macro Envt. PESTEL Analysis

Zara would need to know
the trade system of importing
the good in the country and
Governmental policies.
Political&
Legal
Economical
Zara would have to work

according to the trend and
satisfy customers demand
due to change in generation
choices.
Social
Technological
Environmental
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 ,
exchange rates, and Tariffs.
5/31/2011
group's environmental commitment of Zara have a

direct impact on their shops ,products and policies.

13
Ext. Audit- Macro Envt. Porters Five Forces

Threats of
substitute,
product
Medium
Very High
Threats of
new entrants
High
Rivalry among
existing
competitors
Bargaining
power
of suppliers
Market is moderate/High
Moderate
5/31/2011
Bargaining
power
of buyers
14
Internal Audit-Zaras Performance

159 store
openings in 2011-2012
(Australia &News land)
Brand Value:
$ 8,609 M
Sales
7.077
Million
The
Zara
5/31/2011
5/31/2011
Brand
1,688
Stores
ZARA
2 new countries
in 2011
77
Countries
Product
IndustryDevelopment
Analysis
Consumer Analysis Market Analysis
15
Internal Audit-Core Competencies
14
Low level of inventory due

to Fast supply chain.
Core Competencies
Efficient distribution system.

Commitment of its employees.
Flexible production system.
The
Zara
5/31/2011
5/31/2011
BrandIndustry Analysis Product
Development Consumer Analysis Market Analysis

16
Internal Audit- Positioning
The only true fashion
Fast high fashion at

aordable prices
5/31/2011
5/31/2011
brand that thinks

about your body shape,
respects it and
designs especially for it .
17
17
Internal Audit-Critical Issues
14
Maintaining Zara's ability to respond

effectively to market needs.
Critical
Issues
Try to optimize high cost of

development and training.
Maintain customer care properly.
The
Zara
5/31/2011
5/31/2011

18
SWOT Analysis
14
Brand loyalty
Brand awareness
Efficient distribution
Information technology
High fashion for modest
price
Global market penetration
Online market ( Expand into
Internet.)
Offer different styles in
different stores within the
same city.
Brand image
The
Zara
5/31/2011
5/31/2011
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
Fluctuation in exchange
rates
Market entry barriers
Design challenges
Global competitors
Local competitors

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 consumers
5/31/2011
5/31/2011
21
21
Marketing Objectives-Strategic thrust

Product Development
Zaras success = unique approach to

product development.
Market Penetration
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.
5/31/2011
5/31/2011
22
22
Zaras 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.

5/31/2011

23
Core Strategy
1- Outsourced vs. In-house
manufacturing
2-Sales Data and feedback

to manufacturing
3-Information and Communication
Technologies
5/31/2011
5/31/2011
24
24
Competitive advantages
Demand Reaction vs. Demand Forecasting
Fast Manufacturing
Limited advertising
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 : 488,400m
Tangible
Resources
Financial Resource:
Invested capital:1050 million
(Euros)
Human resource: 92,301 from
more than 140 nationalities

H
The Zara BrandIndustry Analysis Product Development
5/31/2011
5/31/2011
5/31/2011
Market
Consumer
Analysis
Analysis
2727
Business Resources
Brand: is amongst the three most
recognized brands in Spain.
Intangible
Resources
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
The Zara BrandIndustry Analysis Product Development
5/31/2011
5/31/2011
5/31/2011
Market
Consumer
Analysis
Analysis
28
2828
Integrated Marketing Strategy

Price
Product
Customer
focused
Place
Promotion
5/31/2011
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 loyalty
5/31/2011
30

Price
Product
Customer
-focused
Place
Promotion
5/31/2011
31
Promotion Strategy
Main Communication objectives
Inform about the new line.
Create positive emotions in

connection to the new line
Above-the-line:
Print advertising
Generate consumer interest and

Purchase intention
Bellow-the-ine:
Brand communication
PR
Internet
Events
Media cooperation
5/31/2011
32
Advertising , Creative, Production & Placement
High fashion look

Full shape body model
Ad tonality
Ad format
Double page spread
Minimum copy
Zara logo
Zara Curvy is the new black
5/31/2011
Ad placement
High fashion monthly magazines:
Vogue, Marie Claire, Harpers
Bazaar
Fashion monthly magazines:
Glamour, InStyle, Joy, Petra
Independent magazines:
WAD, Pool
33
Curvy is the new black

by ZARA
5/31/2011
5/31/2011
34
34
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
5/31/2011
35
Brand
COM
PR
Internet
Event
Ecient 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
5/31/2011
36
PR Lookbook
5/31/2011
5/31/2011
37
37
5/31/2011
38
Brand
COM
PR
Internet
Event
Use the website as a main

communication channel
Feature the CSR initiative to build
awareness
Include advices on dierent body
shapes and product cuts
Use the online communicates to reach
the young , tech , savvy women
5/31/2011
39
Brand
COM
PR
Internet
Event
Line launch event in 3 key

stores in Europe: Madrid,
Milan, and London
Theme: Zara celebrates

diversity with a new line
Goal: oer the real
experience of the brand and
what it stands for
5/31/2011
40

Price
Product
Customer
-focused
Place
Promo4on
5/31/2011
41
Pricing Strategy
Follow the brand pricing strategies
Aordable prices, good quality

No deviation from what Zara is as
brand: consistency across lines
5/31/2011
42

Price
Product
Customer
-focused
Place
Promo4on
5/31/2011
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.
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 companys objectives
People for monitoring and control of the marketing plan :

Marketing Executives
Sales Managers
Media Managers
Market Research Departments
Product Managers.
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 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!
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 consumers
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 approach
5/31/2011
49
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 t, 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.
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
Evaluation
5/31/2011
5/31/2011
51

5/31/2011

52

Zara MKT PLN

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Zara MKT PLN

Uploaded by

Copyright:

Available Formats

Submitted by:

Fatemeh Hashemi 093014007

Zara is a Spanish chain store of Inditex Group, one of the

Founded by Amancio Ortega, in 1975 in Spain,

The Zara BrandIndustry Anlysis

Product Development Consumer Analysis Market Analysis

5 Keys of the Zara BusinessModel

Meeting point between

New products introduced

Inspiration comes from

Designed with maximum exibility.

ZARA walks at the pace of society,

The Zara BrandIndustry Anlysis

Product Development Consumer Analysis Market Analysis

Ext. Audit- Micro Envt. Market Analysis

women (60%) and men (25%), 15

Clothes that t their body shape and

Interested in fashion trends

Ext. Audit- Micro Envt. Market Analysis

Segment Growth: 40% increase by 2014.

Ext. Audit- Micro Envt. Competitors

Hennes & Mauritz

Ext. Audit- Micro Envt. Manufacturing &Distribution

Unlike similar apparel retailers,

Ext. Audit- Micro Envt Consumer Analysis

New breed of shoppers

Ext. Audit-Macro Envt. PESTEL Analysis

Zara would have to work

Online shopping, bar coding

Zara should be aware of

group's environmental commitment of Zara have a

Product Development Consumer Analysis Market Analysis

Ext. Audit- Macro Envt. Porters Five Forces

Internal Audit-Zaras Performance

Internal Audit-Core Competencies

Low level of inventory due

Efficient distribution system.

BrandIndustry Analysis Product

Development Consumer Analysis Market Analysis

Internal Audit- Positioning

The only true fashion

Fast high fashion at

brand that thinks

Internal Audit-Critical Issues

Maintaining Zara's ability to respond

Try to optimize high cost of

Maintain customer care properly.

BrandIndustry Analysis Product

Development Consumer Analysis Market Analysis

BrandIndustry Analysis Product

Higher costs arising from

Development Consumer Analysis Market Analysis

Strategic Marketing Objectives

continue to grow by extending the Zara

Marketing Objectives-Strategic thrust

Zaras success = unique approach to

Zara's aggressive expansion strategy

Zaras Product Life Cycle Curve

The Zara BrandIndustry Anlysis

Product Development Consumer Analysis Market Analysis

2-Sales Data and feedback

Demand Reaction vs. Demand Forecasting

Human resource: 92,301 from