Zara Marketing Plan

New collection Launch | Marketing Plan 22. 10. 2009 1 SITUATION ANALYSIS Zara Brand Wheel Fashionable clothes Varied assortment Trendy colors Feminine cuts Fashionable product lines for moderate costs Customer- ­? centered business Runway trends adapted for the streets Brand Essence Fashion- ­? oriented woman Trendy in every situaFon Feeling good about looking good Fashion - ­? friendly Feminine Hot and trendy High-Street Fashion The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research 5 Keys of the Zara Business Model Store Teams Customer Logis4csDesign/ Produc4on The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research 5 Keys of the Zara Business Model Customer â€Å"Main driving force behind the Zara brand. † Star%ng point for all Zara ac%vi%es Customer Lead role in: †¢? Store design †¢? Produc%on †¢? Logis%cs †¢? Team The Zara Brand In dustry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research s The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research 5 Keys of the Zara Business Model Store Store â€Å"Mee4ng oint between the customer and the Zara fashion o? er. † 1,520 stores collect informa%on regarding customer demands. New products introduced twice a week. Top loca%ons – 17 visits / year / customer Me%culously designed shop windows Maximum aJen%on to interior & exterior architechtual design Appropriate coordina%on of garments Excellent customer care The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research 5 Keys of the Zara Business Model Design & ProducFon â€Å"Inspira4on comes from the street, music, art †¦ but above all, the store. † Proximity of roduc%on facili%es Immediate reac%on to trends. Con%nuous work for all teams. Managers – teams – customer demand – forms, designs, fabrics, compliments Design/ Produc4on 1,186 suppliers, 200 desginers The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research 5 Keys of the Zara Business Model LogisFcs â€Å"Highly frequent and constant distribu4on permiKng the o? er to be constantly renewed. † 697 million garments distributed 5,000 employees at logis%cs centers Logis4cs Designed with maximum ?exibility. Customer oriented. 24h – receiving order to store elivery (Europe) Designed to absorb growth for next years. 18% annual discount rates. The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research 5 Keys of the Zara Business Model Teams â€Å"Teams with vast sales knowledge geared to towards the customer. † 8 9,112 professionals Customer oriented. Make the stores a pleasant environment. Apply corporate, social & environmental responsibility in day- ­? to- ­? day work. Teams The Zara Brand IndustryAnalysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Zara’s Performance 159 store openings in 2008 Brand Value: $ 8,609 M 1,530 stores 4 new countries in 2008 Sales â‚ ¬ 6,824 Million ZARA 73 countries The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research 14 The Industry High street fashion brand Industry trends Democra%za%on of luxury Inclusiveness Street trends Designer houses Key success factors Di? eren%a%on & individualism New fashion consumer The Zara Brand Industry Analysis Product Development ConsumerAnalysis Market Analysis Market & Consumer Research Customer Focused Product Development Saturated industry Need to increase brand value Responding to current industry trends Iden%f ying the need for the product in the market A full- ­? shaped body is a beau4ful body The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Customer Focused Product Development Market entry barriers Design challenges Saturated industry Need to increase brand value Responding to current industry trends Iden%fying the need for the product in the market Exis%ng customer eac%ons â€Å"Fat is not fashionable† Challenges Opportuni>es The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Consumer Analysis Today’s fashion consumer: More choice, more educated, more savvy & demanding â€Å"New breed of shoppers† Loyalty, variety, freshness The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Fashion Consumer Behavior Analysis Interest Gives pleasure & enjoyment Means of self- ­? expression Involvement Emo%ons Behavior The Zara Brand Industry Analysis ProductDevelopment Consumer Analysis Market Analysis Market & Consumer Research Fashion Consumer Behavior Analysis Interest Hedonics Involvement Purchasing experience Fun, fantasy, social or emo%onal gra%? ca%on Emo%ons Behavior Impulse buying The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Fashion Consumer Behavior Analysis Interest Hedonics Involvement Importance: †¢? Consumers aJach meaning to their clothes †¢? Role of fashion in society Drivers: †¢? Individual mo%ves †¢? Projec%ng a desired self- ­? image Linked to personal values & needs: †¢?Express and communicate value †¢? Values guide consumer behavior †¢? Types of values: personal, economic, aesthe%c Emo%ons Behavior The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Fashion Consumer Behavior Analysi s Interest Hedonics Involvement Posi%ve vs. nega%ve †¢? Shorter decision %mes †¢? More impulse buying †¢? A feeling of being unconstrained †¢? Desire to reward oneself How to generate posi%ve emo%ons? †¢? Use the retail environment to posi%vely in? uence moods: †¢? suitable layouts, †¢? colors, †¢? e? ec%ve sales personnel, †¢? emo%onally pliking atmosphere Impulse buying Emo%ons Behavior The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Fashion Consumer Behavior Analysis Interest Hedonics Involvement Impulse buying †¢? Fashion oriented: strongly oriented to fashion involvement: providing sensory or experien%al cues of fashion products. †¢? Created by the symbolic interac4ons of the product & the consumer emo4onal experiences Emo%ons †¢? Need to understand impulse buying behavior for fashion products from an experien4al perspec4ve = guidance in developing strat egies BehaviorThe Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Plus Size Consumer Analysis 1 in 3 women are unhappy with the way clothes ?t them 14 happy 12 8 16 10 18 6 22 20 24 unhappy The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Plus Size Consumer Behavior AJribute Plus size product Psychosocial consequence Feel more a acFve Func%onal consequence Cut ?[ng the body shape Values Self- ­? esteem Self esteem: important moFvaFon driver for consumpFon Consumers tend to assign their own eanings to clothes. Clothing: over consumer behavior The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Market Analysis 120 Market Share 15% PeFte 60% 25% Plus Size Normal 100 80 60 40 20 0 76 100 Size 2006 2012 Segment growth: 40% increase by 2014. Only 5% of retail space is dedicated to the +size products T he Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Types of CompeFtors 1 2 3 4 Dedicated Ranges Extension of Size Ranges Designer Bou%ques E- ­? commerce The Zara Brand IndustryAnalysis Product Development Consumer Analysis Market Analysis Market & Consumer Research New Line PosiFoning High Fashion Zara Torrid H&M BouFques Low Price High Price M&S Charming Shoppers 1 2 Dedicated Ranges Extension of Size Ranges Designer Bou%ques E- ­? commerce Market & Consumer Research Junonia 3 4 Low Fashion The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Di? erenFaFon Brand awareness Brand loyalty New in this segments More experienced compe%tors Lack of e- ­? commerce Size & growth High fashion for modest prices Strengths Weaknesses The Zara Brand IndustryAnalysis Product Development Consumer Analysis Market Analysis Market & Consumer Research Zara vs. CompeFtors Zara 1,000 new styles / month 200 designers Higher cost of product development is more than adequately compensated by higher realized margins Strategy: reacFve, not predicFve CompeFtors 3- ­? 5 months: develop the ideas into physical samples Sales budgets & stock plans developed one year ahead of the targeted styles Few weeks / months to procure fabrics, have them approved by the retailer – produce a number of samples – put samples in producFon The Zara Brand Product development Industry Analysis