1. Submitted by:
Fatemeh Hashemi 093014007
Mojdeh Radkani 083016009
Farshid Zamanirad 093014012
Mehdi Ebrahim zadeh
Namvar 093010232
Abdul Mukhtar Ghafarzoy
103014016
Polina Martsyanova
093016001
May2011

2. 5/31/2011 2

3. 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
design, manufacturing and distribution so he could make
clothes quicker, and that way react to trends faster.
The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis
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4. 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
.
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5. 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.
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7. Ext. Audit- Micro Envt. Market Analysis
2005 = 3.3 billions
2005 till 2012 = 38%
women (60%) and men (25%), 15 which is equal to 4.5billion
to 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
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8. 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
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9. Ext. Audit- Micro Envt. Market Analysis
120
100
Market Share 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
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10. Ext. Audit- Micro Envt. Competitors
1 Hennes & Mauritz
2 Gap
3 Benetton
4
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11. 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.
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12. Ext. Audit- Micro Envt Consumer Analysis
Today’s fashion consumer:
More choice, more educated, more savvy & demanding
“New breed of shoppers”
Loyalty, variety, freshness
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13. 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.
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14. 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
Moderate power
of buyers
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15. 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 ZARA Countries
Million
The Zara Brand Product Development Consumer Analysis Market Analysis
Industry Analysis
5/31/2011
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16. 14
Internal Audit-Core Competencies
• Low level of inventory due
to Fast supply chain.
Core Competencies • Efficient distribution system.
• Commitment of its employees.
• Flexible production system.
The Zara Brand
Industry Analysis Product Development Consumer Analysis Market Analysis
5/31/2011
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17. 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 .
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18. 14
Internal Audit-Critical Issues
•Maintaining Zara's ability to respond
effectively to market needs.
Critical •Try to optimize high cost of
Issues development and training.
• Maintain customer care properly.
The Zara Brand
Industry Analysis Product Development Consumer Analysis Market Analysis
5/31/2011
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19. 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
price • short lead time from design
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
The Zara Brand
Industry Analysis Product Development Consumer Analysis Market Analysis
5/31/2011
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20. 5/31/2011 20

21. 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
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22. Marketing Objectives-Strategic thrust
Product Development 1 Market Penetration 2
•Zara’s success = unique approach to •Zara's aggressive expansion strategy
product development. 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.
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23. 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.
The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis
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24. Core Strategy
1- Outsourced vs. In-house
manufacturing
2-Sales Data and feedback
to manufacturing
3-Information and Communication
Technologies
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25. Competitive advantages
1 Demand Reaction vs. Demand Forecasting
2 Fast Manufacturing
3
Limited advertising
4
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26. 5/31/2011 26

27. 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
H
The Zara BrandIndustry Analysis Product Development Market Analysis
Consumer Analysis
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28. 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
The Zara BrandIndustry Analysis Product Development Market Analysis
Consumer Analysis
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29. Integrated Marketing Strategy
Price
Product
Customer
focused
Place
Promotion
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30. 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
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31. Integrated Marketing Strategy
Price
Product
Customer
-focused
Place
Promotion
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32. 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
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33. 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
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34. Curvy is the new black
by ZARA
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35. 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
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36. 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
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37. PR Lookbook
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38. 5/31/2011 38

39. Below-the-line campaign
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
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40. 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
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41. Integrated Marketing Strategy
Price
Product
Customer
-focused
Place
Promo4on
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42. Pricing Strategy
Follow the brand pricing strategies
Affordable prices, good quality
No deviation from what Zara is as
brand: consistency across lines
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43. Integrated Marketing Strategy
Price
Product
Customer
-­­focused
Place
Promo4on
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44. 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.
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45. 5/31/2011 45

46. 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.
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47. 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!
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48. 14
Industry Analysis &Control
Industry trends Democratization of luxury
Inclusiveness
Street trends
Differentiation & individualism
Key success factors
Respect to the figure characteristics
for the new product line High street fashion brand
(+size women) New fashion consumers
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49. 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
Consistent with our current approach
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50. 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
- satisfaction behaviors
- gain more insights into the
product positioning
- test communication strategies
How many people:
Also: -like or bought the product?
- test product attributes in terms -turned back the product?
of fit, cuts, colors, communication -complained?
& marketing strategy - also growth of the segment? etc.
The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis
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51. 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
5/31/2011
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52. The Zara BrandIndustry Anlysis Product Development Consumer Analysis Market Analysis
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