New collection Launch | Marketing Plan

22.10.2009

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
Logis4cs

Design/
Produc4on

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

The Zara Brand Industry Analysis

Product Development

Lead role in:

Store design
Produc%on
Logis%cs
Team

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

Store
Store

Mee4ng point between the customer and

the Zara fashion oer.
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
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
Design/
Produc4on

The Zara Brand Industry Analysis

Product Development

1,186 suppliers, 200 desginers

Consumer Analysis

Market Analysis

Market & Consumer Research

5 Keys of the Zara Business Model

LogisFcs
Highly frequent and constant distribu4on
permiKng the oer 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 delivery (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
Teams with vast sales knowledge geared to
towards the customer.
89,112 professionals

Teams

Customer oriented.
Make the stores a pleasant environment.
Apply corporate, social & environmental
responsibility in day-to-day work.

The Zara Brand Industry Analysis

Product Development

Consumer Analysis

Market Analysis

Market & Consumer Research

Zaras Performance
159 store
openings in 2008
Brand Value:
$ 8,609 M

Sales
6,824
Million

The Zara Brand Industry Analysis

1,530
stores

4 new countries
in 2008

73
countries

ZARA

Product Development

Consumer Analysis

Market Analysis

Market & Consumer Research

The Industry

14

High street fashion brand

Industry trends

Democra%za%on of luxury
Inclusiveness
Street trends
Designer houses

Key success factors

Dieren%a%on & 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
Iden%fying 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

Exis%ng customer reac%ons

Fat is not fashionable

Challenges

The Zara Brand

Industry Analysis

Product Development Consumer Analysis

Saturated industry
Need to increase
brand value
Responding to current
industry trends
Iden%fying the need for the
product in the market

Opportuni>es

Market Analysis

Market & Consumer Research

Consumer Analysis
Todays 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

Gives pleasure & enjoyment

Means of self-expression

Involvement

Emo%ons

Behavior

The Zara Brand

Industry Analysis

Product Development

Consumer Analysis

Market Analysis

Market & Consumer Research

Fashion Consumer Behavior Analysis

Interest
Hedonics

Purchasing experience
Fun, fantasy, social or emo%onal
gra%ca%on

Involvement

Emo%ons

Behavior

The Zara Brand

Industry Analysis

Product Development

Impulse buying

Consumer Analysis

Market Analysis

Market & Consumer Research

Fashion Consumer Behavior Analysis

Interest
Hedonics
Involvement

Emo%ons

Behavior

The Zara Brand

Industry Analysis

Product Development

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

Consumer Analysis

Market Analysis

Market & Consumer Research

Fashion Consumer Behavior Analysis

Interest
Hedonics
Involvement

The Zara Brand

Industry Analysis

Posi%ve vs. nega%ve

Shorter decision %mes
More impulse buying
A feeling of being unconstrained
Desire to reward oneself

Emo%ons

How to generate posi%ve emo%ons?

Use the retail environment to posi%vely
inuence moods:
suitable layouts,
colors,
eec%ve sales personnel,
emo%onally upliking atmosphere

Behavior

Impulse buying

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

Behavior

The Zara Brand

Industry Analysis

Product Development

Need to understand impulse buying

behavior for fashion products from an
experien4al perspec4ve = guidance in
developing strategies

Consumer Analysis

Market Analysis

Market & Consumer Research

Plus Size Consumer Analysis

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

14

12

16

10

18

22

Industry Analysis

24
unhappy

happy

The Zara Brand

20

Product Development

Consumer Analysis

Market Analysis

Market & Consumer Research

Plus Size Consumer Behavior

Psychosocial
consequence

AJribute
Plus size
product

Feel more a\racFve

Func%onal
consequence

Values
Self-esteem

Cut [ng the

body shape

Self esteem: important moFvaFon driver for consumpFon

Consumers tend to assign their own meanings 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

100

100
76

80
15%

60
40

PeFte
60%

25%

Plus Size

20

Normal

0
Size
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 CompeFtors

The Zara Brand

Industry Analysis

Dedicated Ranges

Extension of Size Ranges

Designer Bou%ques

E-commerce

Product Development

Consumer Analysis

Market Analysis

Market & Consumer Research

New Line PosiFoning

High Fashion

BouFques

Zara
Torrid
H&M

Low
Price

High
Price

M&S

Charming Shoppers

1
2

Junonia

3
4

Low Fashion
The Zara Brand

Industry Analysis

Product Development

Consumer Analysis

Dedicated Ranges
Extension of Size Ranges
Designer Bou%ques
E-commerce

Market Analysis

Market & Consumer Research

DierenFaFon
Brand awareness

New in this segments

Brand loyalty

More experienced
compe%tors

Size & growth

Lack of e-commerce

High fashion for modest prices

Weaknesses

Strengths

The Zara Brand

Industry Analysis

Product Development

Consumer Analysis

Market Analysis

Market & Consumer Research

Zara vs. CompeFtors

Product development

Zara

The Zara Brand

CompeFtors

1,000 new styles / month

200 designers

3-5 months: develop the ideas

into physical samples

Higher cost of product

development is more than
adequately compensated by
higher realized margins

Sales budgets & stock plans

developed one year ahead of
the targeted styles

Strategy: reacFve, not

predicFve

Industry Analysis

Product Development

Consumer Analysis

Few weeks / months to

procure fabrics, have them
approved by the retailer
produce a number of samples
put samples in producFon

Market Analysis

Market & Consumer Research

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

Specic 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

The Zara Brand

Industry Analysis

Product Development

Consumer Analysis

Market Analysis

Market & Consumer Research

Market & Consumer Research

1

Qualita>ve

Quan>ta>ve

Goals: Insights into the mind of

the consumer

Goals: Gather data on consumer

a[tudes, past behaviors, intended
behaviors
Warning: limited applicability, short
development cycles

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 t, cuts, colors,
communicaFon & markeFng
strategy

The Zara Brand

Industry Analysis

Product Development

Test both the future target consumers&

exisFng ones
Secondary research
Integrate consumer input into product
development
Post-purchase evaluaFons

Consumer Analysis

Market Analysis

Market & Consumer Research

MARKETING FOCUS

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

Plus size, full shape body women
Clothes that t their body shape and
make them look beau>ful

Main
segment

Demogra
phics

Aged 18-40
Work in big ciFes / pursuing
higher-level educaFon
Mid-range income

Psychogra
phics

Benets
sought

Interested in fashion trends

Conscious about their looks
Enjoy shopping and socializing
HecFc lifestyle

Zara for everywoman PosiFoning

Fast high fashion at

aordable 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

Holis4c approach
Price

Product
Customer
-focused
Place

Promo4on

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
Dieren%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

Integrated MarkeFng CommunicaFon Strategy

Holis4c approach
Price

Product
Customer
-focused
Place

Promo4on

PromoFon Strategy
Main communica4on objec4ves
Inform about the new line
Create posi%ve emo%ons in
connec%on to the new line
Above-the-line:
Print adverFsing

Generate consumer interest and

purchase inten%ons

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

AdverFsing Strategy
Consistent with
current strategy

Less is more

Main
communicaFon
message

Support line launch only

with print adverFsing

USP: The only true fashion brand to

consider your body shape
Emo>onal appeal

AdverFsing Idea GeneraFon

Adver4sing Posi4oning Formula
the full body shape woman,

For

Brand name

Target consumer

is the fashion expert

Brand character

that

Zara

for your wardrobe

Product / Competitive Frame

helps you look the best you can

because

Brand promise

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

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 tonality

Ad format

Ad placement

AdverFsing CreaFve, ProducFon & Placement

Curvy is the new black

Ad tonality

Ad format
Double page spread
Minimum copy
Zara logo

Ad placement

AdverFsing CreaFve, ProducFon & Placement

Ad tonality

Ad format

Ad placement
High fashion monthly magazines:
Vogue, Marie Claire, Harpers
Bazaar
Fashion monthly magazines:
Glamour, InStyle, Joy, Petra
Independent magazines:
WAD, Pool

Curvy is the new black

by ZARA

Below-the-line campaign

Brand
COM

PR

CSR: design compeFFon for

fashion students
Possible media cooperaFon
with reality shows such as
Project Runway
Goal: promote inclusiveness
and individualism

Internet

Event

Below-the-line campaign

Brand
COM

PR

Internet

Event

Ecient 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

Below-the-line campaign

Brand
COM

PR

Internet

Use the website as a main

communicaFon channel
Feature the CSR iniFaFve to build
awareness
Include advices on dierent body
shapes and product cuts
Use the online communiFes to reach
the hip, young, tech savvy women

Event

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: oer the real
experience of the brand and
what it stands for

Integrated MarkeFng CommunicaFon Strategy

Holis4c approach
Price

Product
Customer
-focused
Place

Promo4on

Pricing strategy

The new line is more inclusive, and not

exclusive: Follow the brand pricing
strategies
Aordable prices, good quality
No deviaFon from what Zara is as
brand: consistency across lines

Integrated MarkeFng CommunicaFon Strategy

Holis4c approach
Price

Product
Customer
-focused
Place

Promo4on

DistribuFon strategy

The store as an important

communicaFon channel
Consistent and strong store
image, high store loyalty
Point of interacFon with the
clients: store sta 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

ImplementaFon Roadmap
Jan

Website
Development
PR Toolkit
producFon
Campaign
producFon
Product launch /
Event
InteracFve
launch
Ad campaign
Media
cooperaFon
PR support
EvaluaFon

Feb

Mar

April May June July

Aug

Sept

Oct

Nov Dec

Thank you for your aYen4on!