Zara Marketing Plan

Marketing Plan
(+Size Women)
Submitted by:
Fatemeh Hashemi 093014007
Mojdeh Radkani 083016009
Farshid Zamanirad 093014012
Mehdi Ebrahim zadeh
Namvar 093010232
Abdul Mukhtar Ghafarzoy
103014016
Polina Martsyanova
093016001
May2011
12/09/21 2
Company Overview
Zara is a Spanish chain store of Inditex Group, one of the

world’s biggest retail store in the world.
• Founded by Amancio Ortega, in 1975 in Spain,

where it’s still home to it’s headquarters today.
• At the beginning Zara sold low price Then he changed the

The Zara Brand Industry
Anlysis Product Development
C onsumer Analysis Market Analysis
12/09/21 design, manufacturing and distribution so he could make3
5 Keys of the Zara BusinessModel
“Teams with vast sales knowledge “Meeting point between
geared to towards the customer.” the customer and
Make the stores a pleasant the Zara fashion offer.”
environment.
New products introduced
twice a week.
Top locations :17 visits /
year / customer
Lead role in:
•  Store design
•  Production
•  Logistics
•  Team
“Inspiration comes from

the store.” Designed with maximum flexibility.
Immediate reaction to trends. Customer oriented.
1,186 suppliers,200desginers 24H – receiving order to store delivery

.
12/09/21 4
Business
Mission
“ZARA walks at the pace of society,
dressing ideas, trends and tastes that
society itself has matured.”
Zara’s mission statement itself shows that:

• The business is in clothing industry.
• Its market is all society members.
• Zara’s value and goals are related to
satisfaction the customers matured tastes.

12/09/21 5
12/09/21 6
Ext. Audit- Micro Envt. Market Analysis
2005 = 3.3 billions
2005 till 2012 = 38%
women (60%) and men (25%), 15 to which is equal to 4.5billion
45& children (15%).. fashion-
conscious ,Educated and relatively
middle-class.
Market Market Market Market

Summary Needs Trends Growth
• Exclusivity • Population trends

• Affordability • An increase in the level
• Differentiation of concentration
• Experience • Internationalization in the
clothing sector.
• E-commerce and Tele-shopping.
• New sense of style/fashion

12/09/21 7
Target Market
Clothes that fit their body shape and

Plus size, full shape body women make them look beautiful

Main Demogra Psychogra Benefits

segment phics phics sought
Aged 18-40 Interested in fashion trends

Work in big cities Conscious about their looks
pursuing Higher-level education / Enjoy shopping and socializing
Mid-range income Hectic lifestyle
12/09/21 8
12/09/21 8
Ext. Audit- Micro Envt. Market Analysis
120
Market Share 100
100
80 76
15% 60
40
Petite
Plus Size 20
25%
60% Normal 0
Size
2006 2012
Segment Growth: 40% increase by 2014.

Only 5% of retail space is dedicated to the +size products
The Zara BrandIndustry
Analysis Product Development C onsumer Analysis Market Analysis
12/09/21 9
Ext. Audit- Micro Envt. Competitors
1 Hennes & Mauritz
2 Gap
3 Benetton

12/09/21 10
Ext. Audit- Micro Envt. Manufacturing &Distribution
Unlike similar apparel retailers,

Zara controls most of the steps
is a vertically on the supply-chain:
integrated retailer It designs, produces, and
distributes itself.
12/09/21 11
Ext. Audit- Micro Envt Consumer Analysis
Today’s fashion consumer:
More choice, more educated, more savvy & demanding
“New breed of shoppers”

Loyalty, variety, freshness

Analysis Product Development Consumer Analysis Market Analysis
12/09/21 12
Ext. Audit-Macro Envt. PESTEL Analysis
Zara would have to work
Zara would need to know according to the trend and
the trade system of importing satisfy customer’s demand
the good in the country and due to change in generation
Governmental policies. choices.
Political& Technological Environmental

Economical Social
Legal
Online shopping, bar coding

and computer aided designs
are all improvements to benefit
Zara and its customers.
Zara should be aware of
interest rates, taxation changes,
economic growth, inflation , group's environmental commitment of Zara have a
exchange rates, and Tariffs. direct impact on their shops ,products and policies.

12/09/21 13
Ext. Audit- Macro Envt. Porters Five Forces
Threats of Very High
substitute,
product
Medium
Threats of
new entrants
Rivalry among
existing
High competitors
Bargaining
power
of suppliers
Market is moderate/High
Bargaining
Moderatepower
of buyers
12/09/21 14
Internal Audit-Zara’s Performance
159 store
openings in 2011-2012
(Australia &News land)
Brand Value: 1,688 2 new countries

$ 8,609 M Stores in 2011
Sales
77
€ 7.077
Million
ZARA Countries
The Zara Brand Product

Industry Development
Analysis C
onsumer Analysis Market
Analysis
12/09/21
12/09/21 15
14
Internal Audit-Core Competencies
Core Competencies
• Low level of inventory due
to Fast supply chain.
• Efficient distribution
system.

Analysis Product Development
C • Commitment of its
Analysis
12/09/21
12/09/21 16
employees.
Internal Audit- Positioning
The only true fashion

brand that thinks
Fast high fashion at
about your body shape,
affordable prices
respects it and
designs especially for it .
12/09/21 17
12/09/21 17
14
Internal Audit-Critical Issues
Critical
Issues
•Maintaining Zara's ability to
respond
effectively to market needs.
•Try to optimize high cost of

development and training.
C
Analysis
12/09/21
12/09/21
• Maintain customer care 18
14
SWOT Analysis
• Brand loyalty • Higher costs arising from

•Brand awareness vertical integration and
• Efficient distribution training personnel
• Information technology • Lack of E-commerce
• High fashion for modest • New in this segment
• short lead time from design
price
to sale, 15 days
• Global market penetration
• Online market ( Expand into • Fluctuation in exchange
Internet.) rates
• Offer different styles in • Market entry barriers
different stores within the • Design challenges
same city. • Global competitors
• Brand image • Local competitors
•

C
Analysis
12/09/21
12/09/21 19
12/09/21 20
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
12/09/21 21
12/09/21 21
Marketing Objectives-Strategic thrust
Product Development 1 Market Penetration 2
•Zara’s success = unique approach to

product development,how? •Zara's aggressive expansion strategy
has proven to be extremely successful
over the past 5 years .
•The internet is another market that Zara
trying to dip in to, there by offering the
customers the opportunities to shop
online and off line.

12/09/21 22
12/09/21 22
Zara’s Product Life Cycle Curve
Zara is in a high fashion industry and its product offering

are the latest trends and designs with a life of maximum
2 weeks so its Product Life Cycle Curve becomes like the
one given in the right diagram.

12/09/21 23
Core Strategy
1- Outsourced vs. In-house

manufacturing
2-Sales Data and feedback

to manufacturing
3-Information and Communication

Technologies
12/09/21 24
12/09/21 24
Competitive advantages
1 Demand Reaction vs. Demand Forecasting
2 Fast Manufacturing
3 Limited advertising

12/09/21 25
12/09/21 26
Business Resources
Physical resources:
1-Stores: 1,688 in 77 countries
2- Factories: 20
3-Total selling area : 488,400m²

Tangible
Financial Resource:
Resources Invested capital:1050 million
(Euros)
Human resource: 92,301 from
more than 140 nationalities

Analysis Product Development Market
Consumer
Analysis
Analysis

12/09/21
12/09/21
12/09/21 2727
Business Resources

Brand: is amongst the three most
recognized brands in Spain.
Image :Zara is a fast fashion

clothes company
Intangible Economic goodwill:
excellent reputation in
Resources quality and price
Business Methodology:
In time inventory system
Zara Trade Mark

Analysis Product Development Market
Consumer
Analysis
Analysis

12/09/21 28
12/09/21
12/09/21 2828
Integrated Marketing Strategy
Price
Product
Customer
focused

Place
Promotion
12/09/21 29
Customer-focused Product
Feel product. Increase: Interest, Involvement , Emotion
1)  Back to the drawing board

Design
products that complement the full body shape
Incorporate consumer feedback on salience attributes.
2) Product symbolism
Zara knows my body shape.
I look good in Zara clothes.
I feel beautiful .
3) Colors and material
Important choice for perceived quality
of the products.
Bring the fresh look to the plus size
segment.
4) The ZARA label
Feed on the existing Zara name and values associated with
the brand and Aim at customer loyalty
12/09/21 30
Price
Product
Customer
-focused
Place
Promotion
12/09/21 31
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 intention
Print advertising
Bellow-the-ine:
Brand communication
PR
Internet
Events
Media cooperation
12/09/21 32
Advertising , Creative, Production & Placement

High fashion look

Full shape body model
Ad tonality
Ad placement
High fashion monthly magazines:
Ad format
Double page spread Vogue, Marie Claire, Harper’s
Minimum copy Bazaar
Zara logo Fashion monthly magazines:
Glamour, InStyle, Joy, Petra
Zara Curvy is the new black Independent magazines:
WAD, Pool
12/09/21 33
Curvy is the new black
by ZARA
12/09/21 34
12/09/21 34
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

12/09/21 35
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
12/09/21 36
PR Lookbook
12/09/21 37
12/09/21 37
12/09/21 38
Brand
PR Internet Event
COM
Use the website as a main

communication channel
Feature the CSR initiative to build
awareness
Include advices on different body
shapes and product cuts
Use the online communicates to reach
the young , tech , savvy women
12/09/21 39
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
12/09/21 40
Price
Product
Customer
-focused
Place
Promo4on
12/09/21 41
Pricing Strategy
Follow the brand pricing strategies
Affordable prices, good quality
No deviation from what Zara is as

brand: consistency across lines
12/09/21 42
Price
Product
Customer
-‐focused
Place
Promo4on
12/09/21 43
Distribution Strategy
•Important communication channel
• Point taking the pulse of market
• Consistent & strong store image = High store loyalty
Store Location
• In a prime location
• easy to reach by the metro, bus
or walking.
Store Atmosphere
• Typical Zara store layout:wide open spaces
• Create enjoyment of shopping in the store (positive emotion/comfortable
feeling/ impulse buying /spending more than planned)
•New Product Line having its own section in the store, consistent with
current store space distribution.

12/09/21 44
12/09/21 45
14
Evaluation and Control
Key Performance Indicators for

the measurement/evaluation of the performance :
Level of customer satisfaction

Brand loyalty
Control of marketing plan : the results consistency with

-Mission, marketing mix
-Industry trends and the company’s objectives
People for monitoring and control of the marketing plan :
• Marketing Executives
• Sales Managers
• Media Managers
• Market Research Departments
• Product Managers.

12/09/21 46
Mission, Marketing Mix & Control
Evaluation of our plan according to Mission statement :“ZARA walks at

the pace of society, dressing ideas, trends and tastes that society itself
has matured.”
• We still have the customer as the basis and the reason of the group's
existence
• We walked to the society to find out new segment (size + women) and
created special line to meet its needs
• We met matured society tastes: offered fashion inspired in the tastes,
wishes and lifestyles of today's +size women
Evaluation of the marketing mix:
At the end of the period we will see how successful were our 4 Ps decisions
Our product suits plus size segment/ we do use advertisement, PR for this
segment/ our prices are affordable and the stores- in central locations with a
design which makes you fell “expensive” and excellent customer service.
In fact so far our marketing strategy is consistent with Zara goal which is :
customer satisfaction.

12/09/21 47
Industry Analysis &Control
14
High street fashion brand
Industry trends Democratization of luxury
Inclusiveness
Street trends

Differentiation & individualism

Key success factors
Respect to the figure characteristics
for the new product line New fashion consumers
(+size women)

12/09/21 48
Objectives & Control
  General Objectives
Develop a consumer focused product line and marketing strategy
Reinforce customer focus as the key driver of the Zara brand
 Zara
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

12/09/21 49
Gathering Information for control
1 2
Qualitative Quantitative
Goals: insight into the mind of Goals: gather data on consumer
the consumer attitudes, past behaviors, intended
Focus Group behaviors .
new product idea & concept
exploration Data like:
gain more insights into our How many people:
product positioning -like or bought the product?
test communication strategies -turned back the product?
Test marketing -complained?
Test product attributes in terms
of fit, cuts, clors, communication
& marketing strategy

12/09/21 50
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
12/09/21
12/09/21 51
12/09/21 52

Zara Marketing Plan

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Zara Marketing Plan

Uploaded by

Copyright:

Available Formats

Marketing Plan

Zara is a Spanish chain store of Inditex Group, one of the

• Founded by Amancio Ortega, in 1975 in Spain,

• At the beginning Zara sold low price Then he changed the

“Inspiration comes from

Zara’s mission statement itself shows that:

The Zara Brand Industry

Market Market Market Market

• Exclusivity • Population trends

Clothes that ﬁt their body shape and

Main Demogra Psychogra Beneﬁts

Aged 18-40 Interested in fashion trends

Segment Growth: 40% increase by 2014.

1 Hennes & Mauritz

The Zara BrandIndustry

Unlike similar apparel retailers,

More choice, more educated, more savvy & demanding

“New breed of shoppers”

The Zara BrandIndustry

Political& Technological Environmental

Online shopping, bar coding

The Zara Brand Industry

Brand Value: 1,688 2 new countries

The Zara Brand Product

The Zara BrandIndustry

The only true fashion

•Try to optimize high cost of

• Brand loyalty • Higher costs arising from

The Zara BrandIndustry

Increase consumer Satisfaction ,decrease

Increase purchase frequency among

continue to grow by extending the Zara

Product Development 1 Market Penetration 2

•Zara’s success = unique approach to

The Zara BrandIndustry

Zara is in a high fashion industry and its product offering

The Zara Brand Industry

1- Outsourced vs. In-house

2-Sales Data and feedback

3-Information and Communication

1 Demand Reaction vs. Demand Forecasting

The Zara BrandIndustry

The Zara BrandIndustry

Image :Zara is a fast fashion

Zara Trade Mark

The Zara BrandIndustry

1) Back to the drawing board

High fashion look

CSR: design competition for

Possible media cooperation

Eﬃcient product placement in magazines

Editorial coverage without advertising expense

Goal: make a sincere proposition to the

Use the website as a main

Line launch event in 3 key

Theme: Zara celebrates

Goal: oﬀer the real

Follow the brand pricing strategies

Aﬀordable prices, good quality

No deviation from what Zara is as

The Zara Brand Industry

Key Performance Indicators for

Level of customer satisfaction

Control of marketing plan : the results consistency with

1)  Back to the drawing board

  Consistent with our current approach