chapter i executive summary

OVERVIEW

General introduction

Founded: 1975; 46 years ago (as Zorba) in Spain

Founders: Amancio Ortega, Rosalía Mera

Zara’s Mission Statement and Vision Analysis:

‘Give customers what they want and get it to them faster than anyone else.’

‘To contribute to the sustainable development of society and that of the environment with which we interact.’

5 Keys of the Zara ’s Business Model

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• Teams: “Teams with vast sales knowledge geared towards the customer.” Make the stores a pleasant environment

• Store: “Meeting point between the customer and the Zara fashion o er.” New ﬀer.” New products introduced twice a week

• Customer: Lead role in store design, production

• Logistics: Designed with maximum flexibility and customer oriented 24H – receiving order to store delivery

• Design/Product: “Inspiration comes from the store.” Immediate reaction to trends with the support of 1,186 suppliers and 200 designers.

Zara’s history

In 1975, Amancio Ortega launched the first Zara store, marking the beginning of a fashion revolution By the 1980s, he transformed the design, manufacturing, and distribution processes to create "instant fashions," enabling quicker responses to emerging trends In 1985, Ortega established a parent company for Zara, paving the way for global expansion The company ventured into international markets, starting with Porto, Portugal, in 1988, followed by the United States in 1989 and France in 1990 The 1990s saw further growth as Zara entered Mexico in 1992 and expanded into Greece, Belgium, and Sweden in 1993 The 2000s brought Zara's first stores to Brazil in 2000, and later to Japan and Singapore, solidifying its status as a global fashion leader.

(2002); Venezuela, Russia and Malaysia (2003) … South Africa and Australia

In 2010, Zara launched its online boutique, followed by the introduction of RFID technology in stores in 2014 By 2015, Zara was recognized as the 30th best global brand by Interbrand In 2019, the company updated its logo and announced that it was awaiting more favorable global rent levels to pursue further expansion Additionally, Zara planned to reduce the number of retail locations in Europe starting in 2020.

Foundation and competitive advantage

Zara SA, commonly known as ZARA, is a leading Spanish apparel retailer located in Galicia, Spain Renowned for its fast fashion approach, the brand offers a wide range of products, including clothing, accessories, shoes, swimwear, beauty items, and perfumes As the largest entity within the Inditex group, Zara continues to set trends in the fashion industry.

Lecturer: Munish Shalini A04E Group 6 group, the world's largest apparel retailer Zara as of 2017 manages up to 20 clothing collections a year.

ZARA has established itself as a leading fast fashion brand with a significant international presence, boasting over 2,200 physical stores and e-commerce operations in 48 markets The brand is well-positioned for accelerated growth, thanks to its effective pricing strategy, commitment to quality, exceptional customer service, and a remarkable in-store experience that sets it apart from competitors.

The product line of Zara

Zara offers a diverse range of clothing for men, women, and children through its Zara Kids line, while Zara Home features stylish designs available in European stores The brand primarily attracts customers aged 18 to mid-30s, and its products are crafted with a focus on contemporary fashion trends.

10 to 15 days to reach the stores.

OBJECTIVE

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

By 2020, a commitment to Zero Discharge of Hazardous Chemicals for its supply chain, training all of its designers in the cruciality of circularity, and not using fibers from endangered forests.

By 2023, ensuring the use of 100% sustainable cellulosic fibers for responsible viscose, the absolute eradication of single-use plastics, and complete adoption of green-only packaging.

And before the end of 2025, collections created out of 100% sustainable cotton and linens and 100% recycled polyester, as well as zero landfill waste from its facilities,

5 download by : skknchat@gmail.com and achieving 80% renewable energy use for its HQ, distribution centers, and stores.

SITUATION ANALYSIS

Market Analysis

Asia has emerged as the leading hub for the fashion industry, responsible for 60% of global clothing exports in 2015, with China, Bangladesh, and Vietnam as the top suppliers, according to UN data The increasing incomes in these countries are driving a higher demand for quality clothing, contributing to the remarkable growth of the fashion sector in recent years.

The Covid-19 pandemic significantly impacted the fashion market, leading to a revenue decline of over 10% in 2020 compared to 2019 Despite this downturn, clothing remains a major revenue driver, accounting for more than 50% of the industry's total sales The shift towards online shopping saw remarkable growth, with consumers increasingly embracing digital platforms for their purchases Notably, Lazada emerged as a leader in online fashion sales, capturing nearly half of the total revenue in this sector, followed by competitors like Sendo, Facebook, and Tiki.

Individuals aged 25-34 are the highest spenders in the fashion industry, driven by their keen interest in personal appearance and a readiness to invest in their style This demographic is quick to adopt new trends, with their purchasing decisions heavily influenced by media and celebrity endorsements Notably, in Vietnam, women's fashion spending slightly surpasses that of men, accounting for over 50% of total fashion expenditures in 2020.

In 2020, the average revenue per product experienced a slight decline as consumers reduced their spending A survey conducted by Asia Plus, Inc revealed that in Vietnam, price is prioritized over brand popularity in fashion consumption Additionally, the impact of epidemics has led to a significant decrease in luxury goods sales.

The Vietnamese market is witnessing a surge of international fashion brands, with prominent names like H&M, Zara, and Uniqlo making their mark Currently, over 200 foreign fashion brands offering mid to high-end products have established official stores in the country.

Vietnam The “landing” of many foreign fashion brands has pushed the domestic fashion industry which has only a small market share shrinking

In the Vietnamese fashion market, no single business commands more than 2% of the market share, with Adidas Group leading at 1.5% Notably, the top three companies in this sector are foreign enterprises, featuring well-known brands that are highly favored by Vietnamese consumers.

Following the leading brands, Vietnamese enterprises like Biti's, Canifa, Viet Tien, and May 10 have established a strong presence in the market Other notable domestic brands, such as Nha Be and An Phuoc, also focus on the office product segment While some brands like Foci were once seen as "luxury" and operated large chain stores, they have since closed Despite this, Vietnamese businesses play a significant role in outsourcing for major global fashion brands, demonstrating that the quality of products from Vietnamese enterprises is comparable to many international labels.

2 PESTLE analysis (Phan Công Minh)

Political Stable political environment, increasingly improved legal system to create favorable conditions for business enterprises

Zara has experienced low economic growth and financial performance; however, it remains a favored fashion brand in Vietnam and neighboring countries This popularity stems from the company's ability to meet the needs and desires of a wide audience, supported by a substantial database of loyal customers.

The COVID-19 pandemic and subsequent lockdowns led to the closure of businesses globally, forcing Zara to shut down 2,270 retail stores worldwide In response to these challenges, the company made a strategic decision to shift its focus to online sales, significantly mitigating the impact of the crisis on its operations.

The fashion industry is dynamic, constantly evolving with shifting social trends that influence product supply and demand Zara caters to a vast target market by offering a diverse range of products While the company occasionally sets social trends, it also responds to existing ones, adapting its offerings accordingly.

Cultural trends significantly influence customer purchasing decisions across various products, including clothing, shoes, and accessories If consumers perceive a trend as incompatible with their environment, they are unlikely to embrace it Zara effectively addresses this by introducing products that resonate with local and cultural trends, ensuring greater acceptance among its target audience.

The COVID-19 pandemic led to widespread lockdowns, leaving streets and shopping centers deserted globally In response, Zara swiftly invested in e-commerce and online retail technology, a move that significantly benefited the company.

The fashion industry is experiencing significant growth and development, but this expansion raises environmental concerns Key issues include high energy and water consumption, greenhouse gas emissions, hazardous waste generation, and the release of toxic effluents, all of which negatively impact the environment.

Zara's history with patent and copyright laws is fraught with challenges, as the brand has faced multiple accusations from Balenciaga and Adidas regarding the theft of their designs To protect its digital and intellectual assets, Zara should prioritize the implementation of robust copyright and patent measures.

3 SWOT Analysis (Phan Công Minh)

1 Internet users are increasing around the world.

E-commerce is also growing with the increase in internet usage.

2 Social media users are increasing worldwide.

3 Household income is increasing and so is the consumer spending

Inflation in the economy is expected to remain low.

4 Growth in environmentally friendly products and services

Government is offering subsidies on these.

5 Interest rates are low, which provides an investment opportunity for large projects.

1 There is a threat of new entrants coming into the market.

2 The exchange rate has been devalued.

3 Fuel price has risen in recent years making inputs expensive.

4 Competition within the industry is increasing.

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Distribution network with a large number of outlets.

2 It has a low-cost structure, which provides it with an advantage over the competition.

3 It has a strong financial position with positive profits reported in the past few years It also has a strong asset base.

4 It has a skilled labour force that is highly qualified, innovative and diversified.

5 It has a strong presence on social media.

-Increase marketing to attract consumers to spend (S1, S3, O3).

-Use its presence on social media for marketing and to attract customer towards its website (S5, O2, O3).

-Develop environmentally friendly products through innovation, at a low cost so that they could be sold at a low price (S2, S4, O4).

-Market products at low prices by offering discounts.

This would help increase sales in volumes and is feasible due to low inflation and cost (S2, O3).

-Use a strong distribution network to reach out to customers and fight off new entrants into the market (S1, T1).

Leveraging its robust financial position to invest in intellectual property rights will enable the company to effectively compete against rising market competition Additionally, utilizing its innovative teams to develop cost-effective fuel alternatives can significantly reduce operational expenses.

1 A high proportion of property in use by Zara is on rent, and rental charges need to be paid.

2 Low amounts of spending on research and development as compared to the competition.

3 It has a high employee turnover rate, with low employee motivation and working morale.

4 It has liquidity problems with low quick ratio; the level of current assets is less than current liabilities It also faces

-Finance ownership of the property through low interest rate to increase the proportion of owned property to rented property (W1, O5).

-Increase payrolls, provide incentive packages and benefits to employees to reduce turnover and improve work morale This could be possible as costs are low currently (W3, O3)

Increase spending on research and development to enable Zara to better compete with competition (W2, T4).

-Provide incentives, increase engagement, or provide a better work environment to retain talent This will ensure that employees don’t leave and join competitors (W3, T4). download by : skknchat@gmail.com

STP ANALYSIS

Market Segments

Most people in this age group belong to Generation Z, who do not have a strong financial background.

Most of their decisions depend on their parents or are influenced by those around them However, most of them are digital natives, who can easily get access to technology

These people belong to the Y generation, who have higher income, average in the range of 10-15 million VND

Paying a great deal of attention to quality and price Having a habit of using products with high durability The general taste is quite high

These people belong to Generation X, who have a strong financial background after a long time working.

Shopping decisions are heavily dependent on younger family members

It is very difficult to change the consumption habits of this generation.

Parents and grandparents often invest in high-quality, durable luxury items for their children and grandchildren, demonstrating a commitment to providing the best However, they typically have limited access to technology and seldom purchase high-value items.

Attitudes towards shopping depend heavily on the buying habits of the public Easily attracted by promotions and advertisements

Rarely buys high value items

Attitudes towards shopping depend heavily on the buying habits of the public Easily attracted by promotions and advertisements.

The average income is higher, so it is possible to buy high-value items Less attracted to promotions

Consumer taste is quite high Often paying more attention to the quality and values that come with the product

Taste is high, demanding more in quality, safety level, promotions, after sales and buying experience.

Often choose brands with great reputations and purchasing frequency reaches a regular level.

High standard of living with high average income.

Urban dwellers often feel compelled to purchase high-end luxury items to display their wealth, success, and social standing They place significant emphasis on the quality and design of these products, reflecting their desire for status and sophistication.

Unqualified to pay for premium care products.

Average personal income is not high and there is almost no need to buy luxury and materialistic products Mainly interested in quality and durability.

Having changeable consumption habits and are easily influenced by advertising programs

The target demographic consists of young and middle-aged individuals aged 26-45, both male and female, who enjoy stable incomes averaging between 10-25 million VND per month or higher This group primarily resides in major cities and densely populated areas, such as Ho Chi Minh City and Hanoi, where there is a significant demand for fashionable clothing and accessories Their diverse occupations drive a high need for stylish, durable, and affordable apparel that reflects their fashion sense, success, and social status Additionally, they prefer a variety of designs that cater to general tastes and have a habit of utilizing a wide range of clothing items for different daily needs, often influenced by the purchasing decisions of those around them.

The public exhibits a keen interest in the latest fashion trends, demonstrating a willingness to invest in luxury items while actively seeking out promotions Shopping for fashion products is a regular hobby, with consumers prioritizing quality and design, even if prices are high They typically frequent major shopping malls on weekends, particularly between 5 PM and 9 PM, where renowned luxury brands are showcased Additionally, online shopping plays a significant role, with consumers diligently hunting for deals and researching products before purchasing, often influenced by peer reviews However, price remains a significant barrier, as many shoppers are accustomed to their current products, making them hesitant to switch.

Target segment

Zara's target market consists of young, price-sensitive consumers who are keenly aware of current fashion trends Unlike traditional retailers, Zara does not limit its audience by age or lifestyle segmentation, allowing for a wider customer base The brand's product offerings are primarily divided into women's apparel (60%), men's clothing (25%), and a rapidly expanding children's line (15%).

Zara primarily targets young women aged 18 to 40 who are fashion-conscious yet budget-aware, appealing to those with mid-range incomes and a keen sensitivity to the latest fashion trends.

Positioning

Zara, a leading name in fast fashion, stands out as a brand that transcends the low-end market Its influence at Vietnamese fashion schools has sparked excitement among the youth With a commitment to continuous creativity in its designs, Zara captivates fashion-forward individuals with a wide range of collections and competitive pricing similar to other regions.

CONG TRI is a prestigious luxury fashion label in Vietnam, founded by renowned designer Nguyen Cong Tri The brand is celebrated for its elegant and refined women's clothing, attracting a distinguished clientele that includes celebrities and influential figures in Vietnam Notable international stars such as Beyoncé, Rita Ora, Rihanna, Katy Perry, Gwen Stefani, and Jacqueline Fernandez are among the prominent names who have worn CONG TRI, highlighting its global appeal and recognition in the fashion industry.

IVY Moda which aims to bring exciting fashion experiences and provide quality products to the customer is considered a pioneer in the Vietnamese fashion market.

IVY Moda began as a fashion office brand but has evolved over the past five years into a leading Vietnamese fashion brand that sets trends for all customers It is one of the few Vietnamese brands to host two fashion shows annually, aligning with global trends, and collaborates with international names such as ELLE and fashion designer Graeme Armour.

Marc Fashion, originally known for its shirt line, has evolved over the past decade into a leading Vietnamese fashion brand Renowned for its diverse design styles and meticulous production, Marc Fashion caters to women aged 22-35, offering high-quality apparel that meets their fashion needs.

Cocosin is renowned for providing stylish and affordable women's clothing With its wide range of trendy options and easy accessibility through various channels, Cocosin has quickly gained popularity among young shoppers, solidifying its place in the fashion market.

Viet Tien Middle hundreds of designer brands.

Coco Sin prioritizes not only design, materials, and tailoring but also enhances its brand image through collaborations with renowned fashionistas, models, and celebrities The brand offers a diverse product line that includes basic clothing items like dresses, jumpsuits, trousers, and skirts, as well as accessories such as shoes, belts, and bags, alongside elegant evening gowns and designer dresses.

An Phuoc Company specializes in producing medium to high-class fashion items tailored for the Japanese and European markets The company has successfully developed the upscale men's fashion boutique An Phuoc – Pierre Cardin, known for its commitment to high quality and elegant style in fashion products.

Viet Tien has established itself as a leading brand for office attire, recently expanding its offerings to include sub-brands like Viettien Smart Casual for casual wear, T-Up for women's fashion, San Sciaro for high-end office wear, and Viettien Kids for children's clothing Additionally, the brand collaborates with international names such as Skechers and operates modern stores to appeal to a diverse customer base Viet Tien's strength lies in its use of a wide range of materials, including innovative fabrics like bamboo nano Tencel, bamboo cotton, and modal cotton spun, making it the top choice for shirts in the market.

MARKETING STRATEGY

Product Strategy

Zara offers a diverse range of clothing for men, women, and children through its Zara Kids line, alongside a selection of shoes and accessories The brand also features Zara TRF, a sub-brand targeting younger women and teens with trendy and edgy fashion options.

Zara was placed 29th on Interbrand's list of the world's finest global brands in 2019. Its essential beliefs may be summed up in four statements: beauty, clarity, functionality and sustainability.

Zara's remarkable success stems from its agility in adapting to rapidly changing fashion trends, allowing the brand to integrate new styles into its collections swiftly By recognizing a significant gap in the market that many apparel manufacturers overlooked, Zara has consistently offered high-quality, affordable clothing that resonates with current trends The company meticulously monitors global fashion shifts, enabling it to create and deliver fresh designs to stores within one to two weeks, a stark contrast to the six-month timeline typical of most other fashion brands.

Zara successfully surpassed its competitors by strategically offering new collections that align with current fashion trends promptly This approach quickly established it as a favored brand, especially among individuals eager to keep up with the latest styles.

Zara is often referred to in the media as a brand that creates "freshly baked clothing" with a short lifespan of just one to two months To effectively deliver its latest styles, Zara emphasizes three key areas.

Zara excels in providing shorter lead times and trendy clothing by ensuring that its stores are stocked with the latest styles that customers desire, such as seasonal collections and items inspired by celebrities or top designers Unlike many businesses that attempt to forecast customer preferences months in advance, Zara adopts a customer-centric approach, responding swiftly to current trends and delivering exactly what shoppers want in real-time.

Zara strategically limits the quantity of each product to create an illusion of scarcity, enhancing the desirability of its fashion items, particularly in the luxury segment By reducing the number of pieces available for a specific style, Zara not only minimizes its risk of overexposure but also taps into the psychological principle that rarity increases value, making their offerings more appealing to consumers.

Zara's strategy of maintaining smaller inventory numbers allows the brand to minimize losses from unsold items when a style fails to resonate with customers Unlike competitors, Zara conducts only two seasonal sales each year and offers limited markdowns, reducing prices on approximately half the quantity of items compared to its rivals This approach is a significant achievement in the fast-fashion industry.

Zara introduces approximately 12,000 new styles annually, focusing on variety rather than producing large quantities of a single design This strategy ensures that even if a particular item sells out quickly, shoppers can expect a steady influx of fresh options As a result, consumers benefit from a wider selection and increased opportunities to find the perfect piece.

Zara's strategy of keeping designs in stores for only three to four weeks creates a sense of urgency, encouraging customers to visit frequently If shoppers wait even a week, they risk missing out on the latest styles, as each collection is quickly replaced with new trends This approach not only keeps the inventory fresh but also entices customers to return regularly to explore the constantly updated offerings.

The major components of Zara's winning strategy in the fashion retailing business are outlined in the following sections.

Customer co-creation: The customer is Zara's main designer.

Zara's success is deeply rooted in its unwavering commitment to customer satisfaction, exemplified by a unique co-creation approach In 2015, customers across the globe, including Miko in Tokyo, Michelle in Toronto, Elaine in San Francisco, and Giselle in Frankfurt, all requested pink scarves, but found none available in their local stores This shared experience of disappointment resonated with many Zara enthusiasts worldwide, highlighting the brand's responsiveness to customer desires and the importance of consumer feedback in shaping its product offerings.

Zara offers a diverse range of products with varying price points, catering to different market segments By minimizing production and shipping costs, Zara effectively maintains competitive pricing, which is crucial for its brand image This strategy significantly boosts the company's market share, particularly among millennial consumers.

Price Strategy

Zara's pricing strategy is designed to appeal to everyday customers seeking trendy clothing at affordable prices, particularly those who are price-sensitive This approach allows Zara to meet the needs of a broad consumer base without compromising on product quality As a result, Zara's offerings are generally more affordable compared to higher-end brands like Hugo Boss or Uniqlo, demonstrating its commitment to providing value without sacrificing quality.

Zara offers a range of products with varying price points, catering to different target audiences By minimizing production and shipping costs, Zara effectively maintains competitive pricing, which is crucial for its brand image This strategy significantly contributes to the company's market share growth, particularly among millennial consumers.

Place strategy

Zara boasts a vast global presence, operating over 2,200 stores across approximately 90 countries In addition to its physical locations, the brand has embraced the rise of e-commerce by offering its products through its online store and various multi-retail platforms This comprehensive approach effectively addresses Zara's marketing mix, particularly in terms of place and distribution strategy.

ZARA operates its manufacturing facilities in three main regions: 50% in Spain, 26% in Europe, and 24% in Asia and Africa The products are then transported to ZARA's headquarters in Spain before being distributed to its global outlets The company employs a vertically integrated distribution strategy, which necessitates a high level of control from its headquarters to ensure efficiency and consistency in its supply chain.

Vertical integration sets ZARA apart from its competitors by allowing it to manage its own distribution, which minimizes delays in product supply to retail outlets This efficient supply chain is a key competitive advantage for ZARA, enabling the brand to introduce new products and fashion trends to the market rapidly The effectiveness of ZARA's supply chain management is a crucial element of its unique business model.

Zara primarily owns its stores rather than relying on franchises, ensuring a consistent and cohesive shopping experience across all locations, whether in London or elsewhere.

Paris or New Delhi The stores are located in posh locations and are spacious and modern in look with walled mirrors and excellent lighting Zara’s supply chain is

Lecturer: Munish Shalini A04E Group 6 what provides them a competitive advantage It uses its unique business model to bring new products and fashion to the market in the shortest time possible.

Promotion strategy

Zara employs a distinctive marketing strategy characterized by "zero investment in traditional advertising," opting instead to allocate those funds toward opening new stores The brand successfully differentiates itself from competitors by identifying and emphasizing key consumer preferences that truly matter, focusing on exclusivity, customer experience, product differentiation, and affordability.

The company primarily depends on word-of-mouth advertising to reach its target audience, which consists of fashion-conscious individuals aged 18-40 living in urban areas This demographic is predominantly made up of women (65%), followed by men (25%) and children (15%), all of whom are educated and belong to the middle class.

4.2 Direct marketing (Nguyễn Huy Hà)

Zara prioritizes investing a significant portion of its revenue in opening new stores, focusing on prime real estate and stylish décor The brand relies on its visually appealing show windows for advertising, believing they are enough to attract customers and promote its products This approach effectively encapsulates Zara's unique marketing mix.

Product design and appearance can be easily adapted to meet consumer preferences, as shoppers often make purchases based on visual appeal or the desire to refresh their wardrobe.

To effectively attract new customers, Zara must focus on engaging both loyal fans and those who are committed to competing brands For customers unfamiliar with Zara's offerings, merely altering communication strategies may not suffice, as they may not notice the brand's changes To overcome this challenge, Zara should encourage potential customers to try new products and ensure timely updates on product launches This approach not only enhances customer experience but also fosters brand preference, ultimately increasing the likelihood of attracting new clientele Thus, the competition for customer acquisition hinges on product innovation and quality.

-For special occasions or holidays, Zara also launches discount

23 download by : skknchat@gmail.com codes or coupons that are also hot occasions for fashionistas to buy their favorite items.

4.4 Public relations (PR) (Trần Thanh Ngân)

Zara distinguishes itself in the retail market by minimizing traditional promotional marketing and advertising, allocating only about 0.3% of its revenue to these efforts Instead, the brand focuses on strategic store placements, ensuring a strong physical presence that brings the brand closer to customers This approach piques the interest of potential shoppers who frequently encounter Zara locations According to Pietro Barbieri-Hermitte, a planner at TMW Unlimited, Zara's unique strategy lies in its customer-centric philosophy and commitment to incorporating customer feedback into its operations.

4.5 Personal sales (Trần Thanh Ngân)

Zara's in-store sales staff play a crucial role in enhancing customer experience, particularly for those unfamiliar with the brand's products As the primary point of contact, these employees serve as the face of the company, providing essential information and assistance that promotes informed shopping behavior Their direct interaction with customers not only fosters brand awareness but also helps to bridge the gap for shoppers who may know the Zara name but lack detailed knowledge about its offerings.

Sales staff will gather essential information about customers, including their product needs, preferences, and intended use This allows them to recommend suitable products that align with customer criteria, highlight the latest models, and present current incentives to capture attention By combining their expertise in the field and brand with a deep understanding of customer needs, sales staff can offer a thoughtful, dedicated, and professional service This approach ensures that customers receive the best possible options and support, ultimately encouraging them to make a purchase.

Sales staff play a crucial role in gathering customer feedback, evaluations, and expectations to generate improvement reports for the business Each Zara store is organized with specific staff roles, including a Head of Department responsible for reporting and case handling, training personnel, store management staff, and sales consultants, ensuring efficient operations and enhanced customer service.

FINANCIAL PROJECTIONS

Sales forecast

The criteria for predicting revenue:

Number or urban people 33.122.548 person

Average of personal fashion item of 35 Item/per 3 month each individual

Total number of people 19.873.528 In 2021 aged 26-45 ( targeted customer)

Number of fashion 35x3x5.962.058b6.016.090 items bought per 3 month

Estimated budget for Marketing plan: 2% of expected revenue.

Budget

2.1 Direct ads estimated budget table (Trần Thanh Ngân)

CHANNEL DESCRIPTION Times START END UNIT PRICE SUB TOTAL

TV 52 4,700,000 244,400,000 fashion show(Mon- Wed)

During TV fashion 34 278,800,000 show (Sat-Sun)

MAGAZINE DESCREIPTION UNIT QUANTITY UNIT SUB TOTAL

ELLE Cover of Elle 1 post (1

(vnd) (vnd) appear on Category) The brand will 1 post be featured in (include the magazine's 350

17,000,000 17,000,000 highlights words, 2 image, appear on Category)

2.2 Online ads estimated budget table

(Hoàng Thị Thanh Hiền and Nguyễn Huy Hà)

- PR words + 1 image, short post appear on Category)

2.3 Sponsorship program estimated budget table (Đỗ Huy Thạch)

TYPE LOCATION CATEGORY QUANTITY UNIT UNIT PRICE SUB TOTAL

“Save yourself” by 50 Set 1.000.000 50.000.000 designer Chung Thanh Phong

Le Thanh Hoa GIA STUDIOS

Golden Son/A Better Day Collection by

“Normal Dream” by designer Thuy Nguyen Online fashion show of the Spring Summer 2021 collection of designer Tran

Hung and the message of sustainable fashion International Fashion

2.4 Income statement and total marketing estimated budget

TYPE OF BUDGET ESTIMATED BUDGET

IMPLEMENTATION PLAN

Sponsorship programme

Our sponsorship program aims to cultivate strong connections between our brand and customers, enhancing brand awareness and boosting sales We will highlight select fashion shows, campaigns, and collections throughout the year to showcase our latest models Given our rapid product delivery and trend adaptation, it's essential to maintain a channel that reflects our offerings We plan to sponsor 50 sets of trending clothing for various events over four months, with a total investment of 400 million VND.

TV ads

Run TVC ads within 28 seconds Content TVC will introduce Zara women's spring summer campaign 2022.

Channel ads: FASHION TV and

From Monday to Wednesday, there will be one advertisement aired daily during the fashion show time slot of 20:00 to 21:00, totaling 52 screenings at a unit price of 4,700,000 VND each Additionally, on Saturdays and Sundays, one advertisement will be broadcast between 11:00 am and 12:00 pm, amounting to 34 screenings at a unit price of 8,200,000 VND each Consequently, the total advertising cost for Fashion TV over a three-month period is 523,200,000 VND.

Elle Magazine Vietnam: The cover photo of the magazine once, including one advertising photo for the collection spring summer 2022 The unit price is

17,000,000VND for 1 magazine cover photo And 2 times to put photos in the

Lecturer Munish Shalini from A04E Group 6 presents a notable fashion section featuring one post, consisting of 350 words and two images, categorized under outstanding fashion The unit price for this advertisement is 7,600,000 VND, applied twice for the featured photos Consequently, the total advertising cost for Elle Magazine, which includes one magazine cover and two highlighted items, amounts to 24,600,000 VND.

3 In-store advertising (Nguyễn Vũ Đan Hạ) a Windown poster

ZARA's window displays effectively capitalize on promotional periods, such as the transition from year-end celebrations to the New Year, including festive seasons like Christmas and Lunar New Year The strategic use of window posters not only attracts passersby but also enhances brand visibility, drawing in new customers This approach highlights the do-it-yourself ethos of fashion brands, making ZARA's displays both engaging and successful in capturing consumer interest.

Extending the marketing program or promotion period for new items allows for the effective use of 130,000 VND, which covers the cost of each standard-size poster.

Customers at the mall will be notified of ZR promotions and new collection launches through strategically placed standees at major store entrances Priced at 200,000 VND each, these standees have a shelf life of around five months, making them a cost-effective advertising solution With proper maintenance, ZR can also repurpose these standees for future promotions or product launches.

LED billboards will be strategically placed in key locations throughout the store to showcase information about the new collection and ongoing promotions Priced at 23,000,000 VND each, these carefully considered investments promise long-term benefits through extended use Additionally, the store will feature branded paper bags and signage to enhance the overall shopping experience.

Effective advertising for a business can be achieved through the strategic use of paper bags and signage, which serve as primary brand identifiers Signage can be updated seasonally while maintaining a consistent look that exudes luxury, encouraging customers to perceive value in spending at ZR Additionally, carrying a branded paper bag after shopping leaves a lasting impression on bystanders With the rising popularity of paper bags in Vietnam, producing 1,000,000 bags in just four months at a cost of 2,000 VND each presents a feasible short-term strategy.

4.Online advertising a Google Ads (Hoàng Thị Thanh Hiền)

Websites that invest in ad placements will appear in Google search results when users look for keywords related to their products or brands, significantly boosting visitor traffic and potential sales inquiries This advertising package allows for a maximum of 20 keywords and is priced at 10,000,000 VND Additionally, YouTube Ads are available for promotion.

YouTube Bumper Ads are short, non-skippable advertisements lasting about 6 seconds, displayed before, during, or after videos Advertisers are charged 30,000 VND per 1,000 views, making the total cost for 10,000 views amount to 3,000,000 VND This advertising format is designed to enhance brand visibility and engagement on the platform.

YouTube Bumper Ads are short, non-skippable advertisements lasting about six seconds, displayed before, during, or after videos Advertisers are charged 30,000 VND per 1,000 views, resulting in a total cost of 3,000,000 VND for 10,000 views This advertising format effectively captures audience attention while maximizing brand exposure.

Online advertising

a Google Ads (Hoàng Thị Thanh Hiền)

Websites that purchase ad placements will appear in Google search results when users look for keywords related to their products or brands, significantly boosting visitor traffic and potential sales inquiries This advertising package is limited to 20 keywords and is priced at 10,000,000 VND.

YouTube Bumper Ads are non-skippable ads lasting 6 seconds that appear before, during, or after videos Advertisers are charged 30,000 VND per 1,000 views, resulting in a total cost of 3,000,000 VND for 10,000 views This format is designed to maximize brand exposure and engagement.

YouTube Bumper Ads are brief, non-skippable advertisements lasting about six seconds, displayed before, during, or after videos The pricing structure for this service is set at 30,000 VND per 1,000 views, resulting in a total cost of 3,000,000 VND for 10,000 views.

YouTube Discovery Ads is a cost-per-click (CPC) advertising format that targets users based on their search keywords on YouTube This strategy effectively drives significant traffic to Zara's promotional video for a new product, as it appears in recommendations and alongside related items With a total of 100,000 clicks priced at 5,000 VND each, the overall cost for the YouTube Discovery Ads service amounts to 500,000,000 VND Additionally, KOLs on Instagram, such as Nguyễn Huy Hà, can further enhance visibility and engagement.

PR articles will be crafted based on insights from bloggers who have used the product, enhancing credibility and attracting more customers A total of five PR articles will be published at a unit price of 600,000 VND per post, resulting in a total advertising cost for the PR campaign (Nguyễn Huy Hà).

Description: In order to increase the coverage of project information through highly reputable channels, influence purchase decisions of customers by providing complete information and verified by reliable sources.

EVALUATION AND CONTROL METRICS

Evaluation criteria

Product consumption criteria is based on sales and growth rate of sale figures and profit of Zara after the above promotions.

Customer criteria is based on brand awareness, cost of attracting customers and profitability of customers.

Product distribution criteria focus on the average revenue generated by each distribution channel, sales performance, and the frequency of stockouts In contrast, communication criteria evaluate customer perceptions of the advertised product's message, its memorability, the impact of advertising on sales, and the participation rate in promotional activities.

Evaluation methods

Estimated plan

There is always a certain level of risk in a marketing plan Therefore, we need to set up a number of remedial measures as follows:

Zara must consistently conduct research to understand the needs and behaviors of its target customers, allowing the company to adapt to changing preferences This approach enables Zara to develop effective strategies for promoting its products to consumers.

Secondly, they always have to estimate a contingency cost incurred for promotions, sponsorship programs, and advertising programs in case there are problems and quickly solve it.

Chapter X: Conclusion (Nguyễn Vũ Đan Hạ)

Vietnam represents a significant and promising market for the fast fashion industry, making ZARA's entry in 2018 a strategic move From 2018 to 2020, ZARA emerged as one of the most sought-after fashion brands, demonstrating remarkable growth without allocating any budget for marketing in both the international and Vietnamese markets However, the onset of the COVID-19 pandemic posed challenges to this upward trajectory.

In 2021, Vietnam's economy faced significant challenges, prompting ZARA to reevaluate its brand philosophy beyond customer experience, as competitive pricing is no longer a key advantage The brand should prioritize e-commerce strategies, mobile advertising, and a distinctive marketing approach to drive revenue growth during the COVID-19 pandemic In an era dominated by Big Data, brands must navigate this landscape with caution, recognizing that while Big Data can be valuable, it is not a cure-all for business challenges A core aspect of ZARA's global success lies in its culture and the understanding that customers are the ultimate trendsetters, a principle that should be integrated into all future business strategies.

My name is Tran Thanh Ngan, and with the growing emphasis on fashion trends among young people, renowned brands like Zara, Gap, Mango, and Topshop have become top choices for Vietnamese youth Zara stands out as the preferred brand due to its status as one of the most successful global fast fashion retailers, effectively captivating Vietnamese customers and achieving revenue that surpasses some local fashion chains.

Lecturer: Munish Shalini A04E Group 6 as Blue Exchange, Ivy Moda or Kowil According to the financial report of Zara

In 2018, revenue from just two Zara stores in Hanoi and Ho Chi Minh City reached 1.7 trillion dong ($73.2 million), significantly surpassing that of local high-end fashion retailers like Tam Son Fashion and Mai Son As one of the foreign brands with a garment factory in Vietnam, Zara, along with Mango, benefits from economies of scale A Nielsen survey revealed that Vietnam ranks third globally in luxury goods preference, trailing only China and India The fashion industry in Vietnam is projected to grow at an annual rate of 22.5% from 2017 to 2022, with revenues expected to approach nearly $1 billion by 2022 Despite this growth, Zara's pre-tax profit in Vietnam remains low, attributed to substantial spending on customer acquisition Zara's unconventional marketing strategy, which eschews traditional advertising, poses risks, particularly amid the challenges posed by the Covid-19 pandemic Developing an effective and creative marketing communication strategy is vital for maintaining brand awareness and trust among Vietnamese consumers, ultimately enhancing Zara's image and market position in Vietnam.

My name is Do Huy Thach and I’m in the last year of University This Marketing

As I approach the end of my Manager class this month, I'm excited to complete my university degree My experience studying online during the Covid-19 pandemic has taught me valuable skills and allowed me to connect with new friends The flexibility of online courses has been beneficial for my schedule and budget, providing opportunities to enhance my knowledge However, online learning does have drawbacks, such as a focus on theoretical concepts and limited interaction between students and teachers, which can lead to a more passive learning experience Despite these challenges, I appreciate the collaborative environment in my Marketing Manager class, where my dedicated group meets every two days to ensure we stay on track with our projects.

As a student often known for procrastination, I was pleasantly surprised to find that this group prioritizes early preparation This proactive approach is a refreshing change for me, and I genuinely appreciate it Additionally, I am learning a lot from Dr Munish, which adds to this positive experience.

Shalini who is from India is our teacher I have never learned with a foreign teacher and

Initially, I believed that understanding her accent would be challenging However, I was pleasantly surprised to find that her accent was clear and her use of English was simple and accessible for students Although she occasionally produced an unpleasant noise, it did not hinder comprehension.

I thought was funny “Troi Oi” I laughed every time she expressed it Anyway, I learned many new things and I’m happy to be in this class

Nguyen Huy Ha highlights the trend among Vietnamese consumers who prefer foreign-labeled products, believing they offer superior quality and enhance personal value compared to domestic goods For instance, Zara consistently evokes a higher emotional appeal than local brands like Hanosimex, despite similar pricing Zara's strategy focuses on "reimagining" fashion rather than "creating" it, with over 11,000 new designs launched annually, far outpacing competitors This approach allows Zara to offer fashionable clothing at accessible prices without heavy investment in unique designs In Vietnam, Zara has successfully penetrated the market by maintaining a diverse product range and limited quantities, strategically selecting prime retail locations like Vincom to showcase their merchandise effectively By creating an exceptional customer experience, Zara minimizes advertising costs while still attracting a significant number of shoppers to its stores.

From Zara's marketing strategy, we can conclude that:

Multinational brands must understand the psychology and habits of customers in different countries or regions to effectively influence their needs By tailoring their strategies to local preferences, these brands can enhance their market impact and connect more deeply with consumers.

To stay competitive, it's essential to adapt to the ever-evolving needs of customers By empathizing with their perspectives, you can better understand their desires and expectations Continuous innovation is key to enhancing the customer experience and ensuring your brand remains relevant in the marketplace.

Brands should always focus on distribution points The buyer's experience in the store will be influenced by many factors such as: location, shelf layout and items.

Hoang Thi Thanh Hien introduces Zara, a leading Spanish clothing brand headquartered in Arteixo, Galicia As the largest chain within Inditex, the world's biggest apparel retailer, Zara was founded by Rosalia Mera.

Amancio Ortega in 1975 The firm currently operates in 73 countries and has over

Zara, a leading global fashion retailer, launched its first store in Vietnam on September 8, 2016, under the Mitra Adiperkasa franchise system The brand's retail operations in Vietnam are managed by Mitra Adiperkasa, Inditex's Indonesian partner, contributing to Zara's extensive network of 1,800 outlets worldwide.

Before Zara's entry, Vietnam had a variety of international fashion brands, from high-end labels like Gucci and Dior to mid-range options like Mango and GAP However, it was Zara that ignited a true fashion frenzy in the country, appealing to urban youth with its mid-range pricing of 300,000 to 2 million VND Previously, Vietnamese customers had to rely on intermediaries or travel abroad to purchase Zara items The brand's rapid product turnover and efficient self-implementation from design to distribution ensure that it consistently offers trendy, high-quality products, with over half of its items manufactured in La Coruna, Spain This streamlined approach not only accelerates the time to market but also enhances profitability and keeps the collection fresh.

Zara's unmatched ability to rapidly create new products sets it apart in the fashion industry, introducing over 11,000 new models annually, significantly more than the 2,000-4,000 offered by competitors While the industry typically takes around six months to bring a new design to market, Zara accomplishes this in just 2-3 weeks Instead of traditional advertising, Zara focuses on prime store locations and proximity to high-end brands, enhancing its brand image and providing customers with an upscale shopping experience.

Tiêu đề	Executive Summary
Tác giả	Trần Thanh Ngõn, Đỗ Huy Thạch, Nguyễn Huy Hà, Hoàng Thị Thanh Hiền, Phan Cụng Minh, Nguyễn Vũ Đan Hạ
Người hướng dẫn	Munish Shalini
Trường học	University of Economics & Finance
Chuyên ngành	Economic Department
Thể loại	essay
Thành phố	Ho Chi Minh City

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