Date post: | 21-Apr-2017 |
Category: |
Technology |
Upload: | carmen-neghina |
View: | 204,909 times |
Download: | 1 times |
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Zara Brand Wheel
High-Street Fashion
Fashionable clothesVaried assortmentTrendy colorsFeminine cuts
Fashionable product lines for moderate costsCustomer-centered businessRunway trends adapted for the streets
Fashion-oriented womanTrendy in every situationFeeling good about looking good
Fashion - friendlyFeminine Hot and trendy
Brand Essence
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
5 Keys of the Zara Business Model
Customer
Logistics
Store
Teams
Design/Production
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
5 Keys of the Zara Business Model
Customer
“Main driving force behind the Zara brand.”
Starting point for all Zara activities
Lead role in:•Store design•Production•Logistics•Team
Customer
The Zara Brand Industry 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
“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
Store
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
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 desginersDesign/
Production
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
5 Keys of the Zara Business Model
Logistics
“Highly frequent and constant distribution permitting the offer to be constantly renewed.”
697 million garments distributed5,000 employees at logistics centers
Designed with maximum flexibility.
Customer oriented.
24h – receiving order to store delivery (Europe)
Designed to absorb growth for next years.
18% annual discount rates.
Logistics
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
“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
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Zara’s Performance
ZARASales
€ 6,824 Million
73 countries
1,530 stores
4 new countriesin 2008
159 store openings in 2008
Brand Value:$ 8,609 M
14
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
The Industry High street fashion brand
Industry trends Democratization of luxury
Inclusiveness
Street trends
Designer houses
Key success factors Differentiation & individualism
New fashion consumer
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
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
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
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”
Challenges Opportunities
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
“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
Involvement
Emotions
Behavior
Gives pleasure & enjoyment
Means of self-expression
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Fashion Consumer Behavior Analysis
Interest
Involvement
Hedonics
Emotions
Behavior
Purchasing experience
Fun, fantasy, social or emotional gratification
Impulse buying
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Fashion Consumer Behavior Analysis
Interest
Involvement
Hedonics
Emotions
Behavior
Importance:•Consumers attach meaning to their
clothes •Role of fashion in society
Drivers:•Individual motives•Projecting a desired self-image
Linked to personal values & needs:•Express and communicate value•Values guide consumer behavior•Types of values: personal, economic,
aesthetic
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Fashion Consumer Behavior Analysis
Interest
Involvement
Hedonics
Emotions
Behavior
Positive vs. negative•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
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Fashion Consumer Behavior Analysis
Interest
Involvement
Hedonics
Emotions
Behavior
Impulse buying
•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
The 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 fit them
confident unconfident 14 12 8 16 10 18 6 22 20 24
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Plus Size Consumer Behavior
AttributePlus size product
Functional consequenceCut fitting the
body shape
Psychosocial consequence
Feel more attractive
ValuesSelf-esteem
Self esteem: important motivation driver for consumption
Consumers tend to assign their own meanings to clothes.
Clothing: overt consumer behavior
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Market Analysis
15%
25%60%
Market Share
PetitePlus SizeNormal
Size0
20
40
60
80
100
120
76
100
2006 2012
Segment growth: 40% increase by 2014.Only 5% of retail space is dedicated to the +size products
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Types of Competitors
Dedicated Ranges
Extension of Size Ranges
Designer Boutiques
1
2
3
4 E-commerce
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
New Line PositioningHigh Fashion
High Price
Low Fashion
Low Price
Zara
H&M
Charming ShoppersM&S
Torrid
Junonia
Boutiques
Dedicated Ranges
Extension of Size Ranges
Designer Boutiques
E-commerce
1
2
3
4
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Differentiation
New in this segments
More experienced competitors
Lack of e-commerce
Brand awareness
Brand loyalty
Size & growth
High fashion for modest prices
Strengths Weaknesses
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
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 objectivesStrategically segment the market
Visualize the impact of the new line
Integrate consumer input into developmentStrategically 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
The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Market & Consumer Research
Qualitative
Goals: Insights into the mind of the consumerFocus Groupnew product idea & concept explorationgain more insights into our product positioningtest communication strategiesTest marketingTest product attributes in terms of fit, cuts, colors, communication & marketing strategy
Quantitative
Goals: Gather data on consumer attitudes, past behaviors, intended behaviorsWarning: limited applicability, short development cycles
Test both the future target consumers& existing onesSecondary researchIntegrate consumer input into product developmentPost-purchase evaluations
1 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
Demographics
Psychographics
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
Integrated Marketing Communication Strategy
Customer-focused
Place
Price
Product
Promotion
Holistic approach
Customer-focused Product Feel product. High involvement
1) Back to the drawing boardDesign products that complement the full body shape
Incorporate consumer feedback on most salient attributes
2) Product symbolismZara knows my body shapeI look good in Zara clothesI feel beautiful
Customer-focused Product Feel product. High involvement
3) Colors and materialImportant choice for perceived quality of the products
Differentiate Zara from competitorsBring a fresh look to the plus size segment
4) The ZARA labelFeed on the existing Zara name and values associated with the brand
Aim at customer loyalty
Still away from the competitors the variety-seeking customer
Integrated Marketing Communication Strategy
Customer-focused
Place
Price
Product
Promotion
Holistic approach
Promotion Strategy
Above-the-line: Print advertising
Bellow-the-line: Brand communicationPRInternetEventsMedia cooperation
Main communication objectivesInform 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
Support
Advertising Positioning Formula
Advertising Creative, Production & Placement
High fashion look Full shape body modelBody shape revealed: curved lines should not be hiddenMetaphor: dominance, power of the portrayed womenPeriperal cue: released sexuality , element of surprize
Ad formatAd placement
Ad tonality
Advertising Creative, Production & Placement
Ad formatAd placement
Ad tonality
Curvy is the new black
Double page spreadMinimum copy
Zara logo
Advertising Creative, Production & Placement
Ad formatAd placementHigh fashion monthly magazines: Vogue, Marie Claire, Harper’s BazaarFashion monthly magazines: Glamour, InStyle, Joy, PetraIndependent magazines: WAD, Pool
Ad tonality
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
Goal: promote inclusiveness and individualism
Below-the-line Campaign
Brand COM PR Internet Event
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
Below-the-line Campaign
Brand COM PR Internet Event
Use the website as a main communication channel
Feature the CSR initiative to build awareness
Feature viral videosInclude advices on different body
shapes and product cutsUse the online communities to reach
the hip, young, tech savvy women
Below-the-line Campaign
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: offer the real experience of the brand and
what it stands for
Integrated Marketing Communication Strategy
Customer-focused
Place
Price
Product
Promotion
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
Promotion
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
Store atmosphere
Zara typical store layout, wide open spaces
Create enjoyment of shopping in the store(positive emotions | comfortable feeling | impulse buying | spending more than planned)
Line having its own section in the store, consistent with current store space distribution
Implementation Roadmap
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Website DevelopmentPR Toolkit productionCampaign productionProduct launch / EventInteractive launchAd campaignMedia cooperationPR supportEvaluation