Zara maketting

Fashionable clothes Varied assortment Trendy colors Feminine cuts Fashionable product lines for moderate costs Customer-centered business Runway trends adapted for the streets Fashion-oriented woman Trendy in every situation Feeling good about looking good Fashion - friendly Feminine Hot and trendy Customer “Main driving force behind the Zara brand.” Starting point for all Zara activities Lead role in: Store design Production Logistics Team Store “Meeting point between the customer and the Zara fashion offer.” 1,520 stores collect information regarding customer demands. New products introduced twice a week. Top locations – 17 visits / year / customer Meticulously designed shop windows Maximum attention to interior & exterior architechtual design Appropriate coordination of garments Excellent customer care

New Collection Launch | Marketing Plan 22.10.2009

SITUATION ANALYSIS

Zara Brand Wheel

High-Street Fashion

Fashionable clothes Varied assortment Trendy colors Feminine cuts Fashionable product lines for moderate costs Customer-centered business

Runway trends adapted for the streets Fashion-oriented woman

Trendy in every situation Feeling good about looking good

Fashion - friendly Feminine

Hot and trendy

Brand Essence

5 Keys of the Zara Business Model

Customer

Logistics Store

Teams

5 Keys of the Zara Business Model

Customer

“Main driving force behind the Zara brand.”

Starting point for all Zara activities

Lead role in:

s

5 Keys of the Zara Business Model

New products introduced twice a week.

Top locations – 17 visits / year / customer Meticulously designed shop windows

Maximum attention to interior & exterior architechtual design

Appropriate coordination of garments Excellent customer care

Store

5 Keys of the Zara Business Model

Design & Production

“Inspiration comes from the street, music, art … but above all, the store.”

Proximity of production facilities Immediate reaction to trends.

Continuous work for all teams.

Managers – teams – customer demand – forms, designs, fabrics, compliments

1,186 suppliers, 200 desginers

Design/

Production

5 Keys of the Zara Business Model

Customer oriented.

24h – receiving order to store delivery (Europe)

Designed to absorb growth for next years.

Logistics

5 Keys of the Zara Business Model

Teams

“Teams with vast sales knowledge geared to towards the customer.”

89,112 professionals Customer oriented

Make the stores a pleasant environment.

Apply corporate, social & environmental responsibility in day-to-day work.

Teams

Zara’s Performance

ZARA

Sales

€ 6,824 Million

73 countries

1,530 stores 4 new countries in 2008

159 store openings in 2008 Brand Value:

$ 8,609 M

Key success factors Differentiation & individualism

Customer Focused Product Development

Saturated industry Need to increase brand value

Responding to current industry trends

Identifying the need for the product in the market

A full-shaped body is a beautiful body

Customer Focused Product Development

Saturated industry Need to increase brand value

Responding to current industry trends

Identifying the need for the product in the market

Market entry barriers Design challenges Existing customer reactions

“Fat is not fashionable”

Consumer Analysis

Today’s fashion consumer:

More choice, more educated, more savvy & demanding

“New breed of shoppers”

Loyalty, variety, freshness

Fashion Consumer Behavior Analysis

Fashion Consumer Behavior Analysis

Fashion Consumer Behavior Analysis

• Projecting a desired self-image

Linked to personal values & needs:

• Express and communicate value

• Values guide consumer behavior

• Types of values: personal, economic,

aesthetic

Fashion Consumer Behavior Analysis

• Shorter decision times

• More impulse buying

• A feeling of being unconstrained

• Desire to reward oneself

How to generate positive emotions?

• Use the retail environment to positively

influence moods:

• suitable layouts

• colors

• effective sales personnel

• emotionally uplifting atmosphere

Impulse buying

Fashion Consumer Behavior Analysis

• Fashion oriented: strongly oriented to

fashion involvement: providing sensory or experiential cues of fashion products.

• Created by the symbolic interactions of

the product & the consumer emotional

experiences

• Need to understand impulse buying

behavior for fashion products from an

experiential perspective = guidance in

developing strategies

Plus Size Consumer Analysis

1 in 3 women are unhappy with the way clothes fit them

Plus Size Consumer Behavior

Attribute

Plus size product

Functional consequence

Cut fitting the body shape

Psychosocial consequence

Feel more attractive

Values

Self-esteem

Self esteem: important motivation driver for consumption Consumers tend to assign their own meanings to clothes

100

020406080100120

Size

2006 2012

Segment growth: 40% increase by 2014.

Types of Competitors

Dedicated Ranges Extension of Size Ranges Designer Boutiques

123

4 E-commerce

New Line Positioning

High Fashion

High Price

Low Price

Zara

H&M

Charming Shoppers M&S

Torrid

Junonia

Boutiques

Dedicated Ranges Extension of Size Ranges Designer Boutiques

E-commerce

1234

New in this segments More experienced competitors

Lack of e-commerce

Brand awareness Brand loyalty Size & growth

High fashion for modest prices

Market & Consumer Research

§ General objectives

Develop a consumer focused product line and marketing strategy

Reinforce customer focus as the key driver of the Zara brand

§ Specific objectives

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 – use core competencies & reinforce brand values with a new twist

§ Consistent with our current approach

Market & Consumer Research

Test product attributes in terms

of fit, cuts, colors, communication & marketing

Quantitative

Goals: Gather data on consumer attitudes, past behaviors, intended behaviors

Warning: limited applicability, short development cycles

Test both the future target consumers& existing ones

Secondary researchIntegrate consumer input into product development

Post-purchase evaluations

MARKETING FOCUS

2

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

Zara for every woman STP

Main

segment Demogra phics Psychogra phics Benefits sought

Plus size, full shape body women

Aged 18-40Work in big cities / pursuing

higher-level education

Mid-range income

Interested in fashion trendsConscious about their looksEnjoy shopping and socializingHectic lifestyle

Clothes that fit their body shape and

make them look beautiful

Zara for every woman 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

MARKETING STRATEGY

Integrated Marketing Communication Strategy

Customer -focused

Place

Price

Product

Holistic approach

Customer-focused Product

Feel product High involvement

1) Back to the drawing board

Design products that complement

the full body shape

Incorporate consumer feedback on

most salient attributes

2) Product symbolism

Zara knows my body shape

I look good in Zara clothes

I feel beautiful

Customer-focused Product

Feel product High involvement

3) Colors and material

Important choice for perceived quality

of the products

Differentiate Zara from competitors

Bring a fresh look to the plus size

segment

4) The ZARA label

Feed on the existing Zara name and

values associated with the brand

Aim at customer loyalty

Integrated Marketing Communication Strategy

Customer -focused

Main communication objectives

Inform about the new line Create positive emotions in connection to the new line Generate consumer interest and purchase intentions

Advertising Strategy

Main communication message

USP: The only true fashion brand to consider your body shape

Emotional appeal

Less is more

Support line launch only

with print advertising

Consistent with current strategy

Advertising Idea Generation

Target consumer Brand name

is the fashion expert for your wardrobe

For the full body shape woman, Zara

Brand character Product / Competitive Frame

that helps you look the best you can because

Brand promise

it takes the high fashion trends and adapts them for the REAL you

Advertising Positioning Formula

Advertising Creative, Production & Placement

High fashion look

Full shape body model

Body shape revealed: curved lines should not be hidden

Metaphor: dominance, power of the portrayed women

Periperal cue: released sexuality , element of surprize

Ad tonality

Advertising Creative, Production & Placement

Advertising Creative, Production & Placement

Ad format Ad placementHigh fashion monthly magazines:

Vogue, Marie Claire, Harper’s Bazaar

Fashion monthly magazines:

Glamour, InStyle, Joy, Petra

Independent magazines:

WAD, Pool

Ad tonality

Below-the-line Campaign

Brand

CSR: design competition for

fashion students

Possible media cooperation

with reality shows such as

Project Runway

Goal: promote inclusiveness

and individualism

Below-the-line Campaign

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

PR Lookbook

Below-the-line Campaign

Brand

Use the website as a main communication channelFeature the CSR initiative to build

awarenessFeature viral videosInclude advices on different body

shapes and product cuts

Below-the-line Campaign

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

Integrated Marketing Communication Strategy

Customer -focused

Place

Price

Product

Holistic approach

Pricing Strategy

The new line is more inclusive, and not

exclusive: Follow the brand pricing

strategies

Affordable prices, good quality

No deviation from what Zara is as

brand: consistency across lines

Integrated Marketing Communication Strategy

Customer -focused

Place

Price

Product

Holistic approach

Distribution Strategy

The store as an important

communication channel

Consistent and strong store

image, high store loyalty

Point of interaction with the

clients: store staff gathering

important feedback, taking

the pulse of the market

comfortable feeling | impulse buying

| spending more than planned)Line having its own section in the store, consistent with current store

IMPLEMENTATION AND

EVALUATION

4

Thank you for your attention!