Zara Marketing Plan

New collection Launch | Marketing Plan 22.10.2009

SITUATION ANALYSIS

1

The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research

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 situaFon Feeling good about looking good

Fashion -‐ friendly Feminine Hot and trendy

Brand Essence


5 Keys of the Zara Business Model

Customer

Logis4cs

Store

Teams

Design/ Produc4on



Customer

“Main driving force behind the Zara brand.”

Star%ng point for all Zara ac%vi%es

Lead role in: •  Store design •  Produc%on •  Logis%cs •  Team

Customer


s



Store

“Mee4ng point between the customer and the Zara fashion offer.”

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

Store



Design & ProducFon

“Inspira4on comes from the street, music, art … but above all, the store.”

Proximity of produc%on facili%es

Immediate reac%on to trends.

Con%nuous work for all teams.

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

1,186 suppliers, 200 desginers Design/

Produc4on



LogisFcs

“Highly frequent and constant distribu4on permiKng the offer to be constantly renewed.”

697 million garments distributed 5,000 employees at logis%cs 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.

Logis4cs




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


The Industry

High street fashion brand

14

Industry trends Democra%za%on of luxury

Inclusiveness

Street trends

Designer houses

Key success factors Differen%a%on & individualism

New fashion consumer


Customer Focused Product Development

Saturated industry

Need to increase brand value

Responding to current industry trends

Iden%fying the need for the product in the market

A full-‐shaped body is a beau4ful body


Customer Focused Product Development

Saturated industry

Need to increase brand value

Responding to current industry trends

Iden%fying the need for the product in the market

Market entry barriers

Design challenges

Exis%ng customer reac%ons

“Fat is not fashionable”

Challenges Opportuni>es


Consumer Analysis

Today’s fashion consumer:

More choice, more educated, more savvy & demanding

“New breed of shoppers”

Loyalty, variety, freshness


Fashion Consumer Behavior Analysis

Interest

Involvement

Emo%ons

Behavior

Gives pleasure & enjoyment

Means of self-‐expression



Interest

Involvement

Hedonics

Emo%ons

Behavior

Purchasing experience

Fun, fantasy, social or emo%onal gra%fica%on

Impulse buying



Interest

Involvement

Hedonics

Emo%ons

Behavior

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



Interest

Involvement

Hedonics

Emo%ons

Behavior

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 influence moods:

•  suitable layouts, •  colors, •  effec%ve sales personnel, •  emo%onally upliking atmosphere

Impulse buying



Interest

Involvement

Hedonics

Emo%ons

Behavior

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

•  Need to understand impulse buying behavior for fashion products from an experien4al perspec4ve = guidance in developing strategies


Plus Size Consumer Analysis

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

happy unhappy 14 12 8 16 10 18 6 22 20 24


Plus Size Consumer Behavior

AJribute Plus size product

Func%onal consequence Cut fi[ng the body shape

Psychosocial consequence

Feel more a\racFve

Values Self-‐esteem

Self esteem: important moFvaFon driver for consumpFon

Consumers tend to assign their own meanings to clothes.

Clothing: over consumer behavior


Market Analysis

15%

25% 60%

Market Share

PeFte

Plus Size

Normal

76

100

0

20

40

60

80

100

120

Size

2006 2012

Segment growth: 40% increase by 2014. Only 5% of retail space is dedicated to the +size products


Types of CompeFtors

Dedicated Ranges

Extension of Size Ranges

Designer Bou%ques

1

2

3

4E-‐commerce


New Line PosiFoning High Fashion

High Price

Low Fashion

Low Price

Zara

H&M

Charming Shoppers M&S

Torrid

Junonia

BouFques

Dedicated Ranges

Extension of Size Ranges

Designer Bou%ques

E-‐commerce

1

2

3

4


DifferenFaFon

New in this segments

More experienced compe%tors

Lack of e-‐commerce

Brand awareness

Brand loyalty

Size & growth

High fashion for modest prices

Strengths Weaknesses


Zara vs. CompeFtors

Prod

uct d

evelop

men

t Zara CompeFtors

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

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


Market & Consumer Research

  General objec%ves Develop a consumer focused product line and markeFng strategy

Reinforce customer focus as the key driver of the Zara brand

  Specific objec%ves Strategically segment the market

Visualize the impact of the new line

Integrate consumer input into development

Strategically plan the integraFon of the new line within the exisFng business

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

  Consistent with our current approach


Market & Consumer Research

Qualita>ve

Goals: Insights into the mind of the consumer

Focus Group new product idea & concept explora%on gain more insights into our product posi%oning test communica%on strategies

Test marke>ng Test product a\ributes in terms of fit, cuts, colors, communicaFon & markeFng strategy

Quan>ta>ve

Goals: Gather data on consumer a[tudes, past behaviors, intended behaviors

Warning: limited applicability, short development cycles

Test both the future target consumers& exisFng ones

Secondary research

Integrate consumer input into product development

Post-‐purchase evaluaFons

1 2

MARKETING FOCUS

2

Strategic MarkeFng ObjecFves

Overall marke4ng objec4ves: increase customer equity

Increase consumer sa4sfac4on, decrease dissa%sfac%on of the plus size consumer

Increase purchase frequency among plus size customers

Con%nue to grow by extending the Zara fashion brand

Increase brand awareness and favorable aptudes among consumers

Zara for everywoman STP

Main segment

Demographics

Psychographics

Benefits sought

Plus size, full shape body women

Aged 18-‐40 Work in big ciFes / pursuing

higher-‐level educaFon Mid-‐range income

Interested in fashion trends Conscious about their looks Enjoy shopping and socializing HecFc lifestyle

Clothes that fit their body shape and make them look beau>ful

Zara for everywoman PosiFoning

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 MarkeFng CommunicaFon Strategy

Customer-‐focused

Place

Price

Product

Promo4on

Holis4c 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 aJributes

2) Product symbolism

Zara knows my body shape

I look good in Zara clothes

I feel beau%ful

Customer-‐focused Product Feel product. High involvement

3) Colors and material Important choice for perceived quality of the products

Differen%ate Zara from compe%tors Bring a fresh look to the plus size segment

4) The ZARA label Feed on the exis%ng Zara name and values associated with the brand

Aim at customer loyalty

S%ll away from the compe%tors the variety-‐seeking customer


Customer-‐focused

Place

Price

Product

Promo4on

Holis4c approach

PromoFon Strategy

Above-‐the-‐line: Print adverFsing

Bellow-‐the-‐line: Brand communicaFon PR Internet Events Media cooperaFon

Main communica4on objec4ves Inform about the new line

Create posi%ve emo%ons in connec%on to the new line

Generate consumer interest and purchase inten%ons

AdverFsing Strategy

Main communicaFon

message

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

Emo>onal appeal

Less is more

Support line launch only with print adverFsing

Consistent with current strategy

AdverFsing Idea GeneraFon

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

Adver4sing Posi4oning Formula

AdverFsing CreaFve, ProducFon & 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 format Ad placement

Ad tonality


Ad format Ad placement

Ad tonality

Curvy is the new black

Double page spread Minimum copy

Zara logo


Ad format Ad placement High fashion monthly magazines: Vogue, Marie Claire, Harper’s Bazaar

Fashion monthly magazines: Glamour, InStyle, Joy, Petra

Independent magazines: WAD, Pool

Ad tonality

Curvy is the new black by ZARA

Below-‐the-‐line campaign

Brand COM

PR Internet Event

CSR: design compeFFon for fashion students

Possible media cooperaFon with reality shows such as Project Runway

Goal: promote inclusiveness and individualism


Brand COM

PR Internet Event

Efficient product placement in magazines

Editorial coverage without adverFsing expense

Goal: make a sincere proposiFon to the REAL woman, use the journalist as an expert source to build brand trust

Tool: PR lookbook

PR Lookbook

PR Lookbook

PR Lookbook


Brand COM

PR Internet Event

Use the website as a main communicaFon channel

Feature the CSR iniFaFve to build awareness

Include advices on different body shapes and product cuts

Use the online communiFes to reach the hip, young, tech savvy women


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


Customer-‐focused

Place

Price

Product

Promo4on

Holis4c approach

Pricing strategy

The new line is more inclusive, and not exclusive: Follow the brand pricing strategies

Affordable prices, good quality

No deviaFon from what Zara is as brand: consistency across lines


Customer-‐focused

Place

Price

Product

Promo4on

Holis4c approach

DistribuFon strategy

The store as an important communicaFon channel

Consistent and strong store image, high store loyalty

Point of interacFon 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(posiFve emoFons | comfortable feeling | impulse buying | spending more than planned)

Line having its own secFon in the store, consistent with current store space distribuFon

IMPLEMENTATION AND EVALUATION

4

ImplementaFon Roadmap

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Website Development

PR Toolkit producFon

Campaign producFon

Product launch / Event

InteracFve launch

Ad campaign

Media cooperaFon

PR support

EvaluaFon

Thank you for your aYen4on!

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