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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

Fashion-oriented woman
Brand Trendy in every situation
Essence 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

Logistics

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


Customer
Lead role in:
Store design
Production
Logistics
Team

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


Store 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

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 desginers


Design/
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 distributed


5,000 employees at logistics centers

Designed with maximum flexibility.


Logistics

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.

Teams 89,112 professionals

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: 1,530 4 new countries


$ 8,609 M stores in 2008

Sales
73
6,824 ZARA countries
Million

The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
14
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

Market entry barriers Saturated industry


Design challenges Need to increase
brand value

Existing customer reactions Responding to current


industry trends

Fat is not fashionable Identifying the need for the


product in the market

Challenges Opportunities

The Zara Brand Industry Analysis Product Development Consumer Analysis 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

Emotions

Behavior

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

Interest Purchasing experience

Fun, fantasy, social or emotional


Hedonics
gratification

Involvement

Emotions

Impulse buying
Behavior

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

Interest Importance:
Consumers attach meaning to their
clothes
Hedonics
Role of fashion in society

Involvement Drivers:
Individual motives
Projecting a desired self-image

Emotions Linked to personal values & needs:


Express and communicate value
Values guide consumer behavior
Types of values: personal, economic,
aesthetic
Behavior

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

Interest Positive vs. negative


Shorter decision times
More impulse buying
Hedonics
A feeling of being unconstrained
Desire to reward oneself
Involvement
How to generate positive emotions?
Use the retail environment to positively
influence moods:
Emotions suitable layouts
colors
effective sales personnel
emotionally uplifting atmosphere

Behavior Impulse buying

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

Interest Impulse buying

Fashion oriented: strongly oriented to


Hedonics
fashion involvement: providing sensory or
experiential cues of fashion products.
Involvement
Created by the symbolic interactions of
the product & the consumer emotional
experiences
Emotions
Need to understand impulse buying
behavior for fashion products from an
experiential perspective = guidance in
developing strategies
Behavior

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

14 12 8 16 10 18 6 22 20 24
confident unconfident

The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
Plus Size Consumer Behavior

Psychosocial
Attribute consequence
Plus size Feel more
product attractive

Functional Values
consequence Self-esteem
Cut fitting the
body shape

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

Market Share 120


100
100
15% 80 76

60
Petite
Plus Size 40
25%
60% Normal
20

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 Competitors

1 Dedicated Ranges

2 Extension of Size Ranges

3 Designer Boutiques

4 E-commerce

The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
New Line Positioning
High Fashion

Boutiques
Zara
Torrid

H&M

Low High
Price Price
M&S Charming Shoppers
1 Dedicated Ranges

2 Extension of Size Ranges

Junonia 3 Designer Boutiques

4 E-commerce
Low Fashion

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

Brand awareness New in this segments


Brand loyalty More experienced
competitors

Size & growth Lack of e-commerce

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 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

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

1 2
Qualitative Quantitative
Goals: Insights into the mind of Goals: Gather data on consumer
the consumer attitudes, past behaviors, intended
Focus Group behaviors
new product idea & concept Warning: limited applicability, short
exploration development cycles
gain more insights into our
Test both the future target consumers&
product positioning
existing ones
test communication strategies
Secondary research
Test marketing
Test product attributes in terms Integrate consumer input into product
of fit, cuts, colors, development
communication & marketing Post-purchase evaluations
strategy

The Zara Brand Industry Analysis Product Development Consumer Analysis Market Analysis Market & Consumer Research
2

MARKETING FOCUS
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

Plus size, full shape body women

Clothes that fit their body shape and


make them look beautiful

Main Demogra Psychogra Benefits


segment phics phics sought

Aged 18-40 Interested in fashion trends


Work in big cities / pursuing Conscious about their looks
higher-level education Enjoy shopping and socializing
Mid-range income Hectic lifestyle
Zara for every woman Positioning

The only true fashion


brand that thinks about
Fast high fashion at
your body shape,
affordable prices
respects it and designs
especially for it
MARKETING STRATEGY
Integrated Marketing Communication Strategy
Holistic approach
Price

Product

Customer
-focused

Place

Promotion
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
Still away from the competitors the
variety-seeking customer
Integrated Marketing Communication Strategy
Holistic approach
Price

Product

Customer
-focused

Place

Promotion
Promotion Strategy
Main communication objectives
Inform about the new line
Create positive emotions in
connection to the new line
Generate consumer interest and
Above-the-line: purchase intentions
Print advertising

Bellow-the-line:
Brand communication
PR
Internet
Events
Media cooperation
Advertising Strategy
Consistent with
current strategy
Less is more

Main
communication
message

USP: The only true fashion brand to


Support line launch only
consider your body shape
with print advertising
Emotional appeal
Advertising Idea Generation

Advertising Positioning Formula

For the full body shape woman, Zara


Target consumer Brand name

is the fashion expert for your wardrobe

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 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

Ad placement
Ad format
Advertising Creative, Production & Placement

Curvy is the new black

Ad tonality

Ad placement
Ad format
Double page spread
Minimum copy
Zara logo
Advertising Creative, Production & Placement

Ad tonality

Ad placement
Ad format 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
PR Internet Event
COM

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
PR Internet Event
COM

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
PR Lookbook
PR Lookbook
PR Lookbook
Below-the-line Campaign

Brand
PR Internet Event
COM

Use the website as a main


communication channel
Feature the CSR initiative to build
awareness
Feature viral videos
Include advices on different body
shapes and product cuts
Use the online communities to reach
the hip, young, tech savvy women
Below-the-line Campaign

Brand
PR Internet Event
COM

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
Holistic approach
Price

Product

Customer
-focused

Place

Promotion
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
Holistic approach
Price

Product

Customer
-focused

Place

Promotion
Distribution Strategy

The store as an important Store atmosphere


communication channel Zara typical store layout, wide open
Consistent and strong store spaces
image, high store loyalty Create enjoyment of shopping in the
Point of interaction with the store(positive emotions |
clients: store staff gathering comfortable feeling | impulse buying
important feedback, taking | spending more than planned)
the pulse of the market Line having its own section in the
store, consistent with current store
space distribution
4

IMPLEMENTATION AND
EVALUATION
Implementation Roadmap

Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Website
Development
PR Toolkit
production
Campaign
production
Product launch
/ Event
Interactive
launch
Ad campaign
Media
cooperation
PR support
Evaluation
Thank you for your attention!

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