SITUATIONANALYSIS1ZaraBrandWheelHigh-StreetFashionFashionableclothesVariedassortmentTrendycolorsFemininecutsFashionableproductlinesformoderatecostsCustomer-centeredbusinessRunwaytrendsadaptedforthestreetsFashion-orientedwomanTrendyineverysituationFeelinggoodaboutlookinggoodFashion-friendlyFeminineHotandtrendyBrandEssencePersonalityValuesBenefitsAttributes5KeysoftheZaraBusinessModelCustomerLogisticsStoreTeamsDesign/Production5KeysoftheZaraBusinessModelCustomer“MaindrivingforcebehindtheZarabrand.”StartingpointforallZaraactivitiesLeadrolein:StoredesignProductionLogisticsTeamCustomers5KeysoftheZaraBusinessModelStore“MeetingpointbetweenthecustomerandtheZarafashionoffer.”1,520storescollectinformationregardingcustomerdemands.Newproductsintroducedtwiceaweek.Toplocations–17visits/year/customerMeticulouslydesignedshopwindowsMaximumattentiontointerior&exteriorarchitechtualdesignAppropriatecoordinationofgarmentsExcellentcustomercareStore5KeysoftheZaraBusinessModelDesign&Production“Inspirationcomesfromthestreet,music,art…butaboveall,thestore.”ProximityofproductionfacilitiesImmediatereactiontotrends.Continuousworkforallteams.Managers–teams–customerdemand–forms,designs,fabrics,compliments1,186suppliers,200desginersDesign/Production5KeysoftheZaraBusinessModelLogistics“Highlyfrequentandconstantdistributionpermittingtheoffertobeconstantlyrenewed.”697milliongarmentsdistributed5,000employeesatlogisticscentersDesignedwithmaximumflexibility.Customeroriented.24h–receivingordertostoredelivery(Europe)Designedtoabsorbgrowthfornextyears.18%annualdiscountrates.Logistics5KeysoftheZaraBusinessModelTeams“Teamswithvastsalesknowledgegearedtotowardsthecustomer.”89,112professionalsCustomeroriented.Makethestoresapleasantenvironment.Applycorporate,social&environmentalresponsibilityinday-to-daywork.TeamsZara’sPerformanceZARASales€6,824Million73countries1,530stores4newcountriesin2019159storeopeningsin2019BrandValue:$8,609MTheIndustryHighstreetfashionbrandIndustrytrendsDemocratizationofluxuryInclusivenessStreettrendsDesignerhousesKeysuccessfactorsDifferentiation&individualismNewfashionconsumer13CustomerFocusedProductDevelopmentSaturatedindustryNeedtoincreasebrandvalueRespondingtocurrentindustrytrendsIdentifyingtheneedfortheproductinthemarketAfull-shapedbodyisabeautifulbodyCustomerFocusedProductDevelopmentSaturatedindustryNeedtoincreasebrandvalueRespondingtocurrentindustrytrendsIdentifyingtheneedfortheproductinthemarketMarketentrybarriersDesignchallengesExistingcustomerreactions“Fatisnotfashionable”ChallengesOpportunitiesConsumerAnalysisToday’sfashionconsumer:Morechoice,moreeducated,moresavvy&demanding“Newbreedofshoppers”Loyalty,variety,freshnessFashionConsumerBehaviorAnalysisInterestInvolvementEmotionsBehaviorGivespleasure&enjoymentMeansofself-expressionFashionConsumerBehaviorAnalysisInterestInvolvementHedonicsEmotionsBehaviorPurchasingexperienceFun,fantasy,socialoremotionalgratificationImpulsebuyingFashionConsumerBehaviorAnalysisInterestInvolvementHedonicsEmotionsBehaviorImportance:ConsumersattachmeaningtotheirclothesRoleoffashioninsocietyDrivers:IndividualmotivesProjectingadesiredself-imageLinkedtopersonalvalues&needs:ExpressandcommunicatevalueValuesguideconsumerbehaviorTypesofvalues:personal,economic,aestheticFashionConsumerBehaviorAnalysisInterestInvolvementHedonicsEmotionsBehaviorPositivevs.negativeShorterdecisiontimesMoreimpulsebuyingAfeelingofbeingunconstrainedDesiretorewardoneselfHowtogeneratepositiveemotions?Usetheretailenvironmenttopositivelyinfluencemoods:suitablelayoutscolorseffectivesalespersonnelemotionallyupliftingatmosphereImpulsebuyingFashionConsumerBehaviorAnalysisInterestInvolvementHedonicsEmotionsBehaviorImpulsebuyingFashionoriented:stronglyorientedtofashioninvolvement:providingsensoryorexperientialcuesoffashionproducts.Createdbythesymbolicinteractionsoftheproduct&theconsumeremotionalexperiencesNeedtounderstandimpulsebuyingbehaviorforfashionproductsfromanexperientialperspective=guidanceindevelopingstrategiesPlusSizeConsumerAnalysis1in3womenareunhappywiththewayclothesfitthemconfidentunconfident141281610186222024PlusSizeConsumerBehaviorSelfesteem:importantmotivationdriverforconsumptionConsumerstendtoassigntheirownmeaningstoclothes.Clothing:overtconsumerbehaviorMarketAnalysisSegmentgrowth:40%increaseby2019.Only5%ofretailspaceisdedicatedtothe+sizeproductsTypesofCompetitorsDedicatedRangesExtensionofSizeRangesDesignerBoutiques1234E-commerceNewLinePositioningHighFashionHighPriceLowFashionLowPriceZaraH&MCharmingShoppersM&STorridJunoniaBoutiquesDedicatedRangesExtensionofSizeRangesDesignerBoutiquesE-commerce1234DifferentiationNewinthissegmentsMoreexperiencedcompetitorsLackofe-commerceBrandawarenessBrandloyaltySize&growthHighfashionformodestpricesStrengthsWeaknessesMarket&ConsumerResearchGeneralobjectivesDevelopaconsumerfocusedproductlineandmarketingstrategyReinforcecustomerfocusasthekeydriveroftheZarabrandSpecificobjectivesStrategicallysegmentthemarketVisualizetheimpactofthenewlineIntegrateconsumerinputintodevelopmentStrategicallyplantheintegrationofthenewlinewithintheexistingbusinessmodel–usecorecompetencies&reinforcebrandvalueswithanewtwistConsistentwithourcurrentapproachMarket&ConsumerResearchQualitativeGoals:InsightsintothemindoftheconsumerFocusGroupnewproductidea&conceptexplorationgainmoreinsightsintoourproductpositioningtestcommunicationstrategiesTestmarketingTestproductattributesintermsoffit,cuts,colors,communication&marketingstrategyQuantitativeGoals:Gatherdataonconsumerattitudes,pastbehaviors,intendedbehaviorsWarning:limitedapplicability,shortdevelopmentcyclesTestboththefuturetargetconsumers&existingonesSecondaryresearchIntegrateconsumerinputintoproductdevelopmentPost-purchaseevaluations12MARKETINGFOCUS2StrategicMarketingObjectivesOverallmarketingobjectives:increasecustomerequityIncreaseconsumersatisfaction,decreasedissatisfactionoftheplussizeconsumerIncreasepurchasefrequencyamongplussizecustomersContinuetogrowbyextendingtheZarafashionbrandIncreasebrandawarenessandfavorableattitudesamongconsumersZaraforeverywomanSTPMainsegmentDemographicsPsychographicsBenefitssoughtPlussize,fullshapebodywomenAged18-40Workinbigcities/pursuinghigher-leveleducationMid-rangeincomeInterestedinfashiontrendsConsciousabouttheirlooksEnjoyshoppingandsocializingHecticlifestyleClothesthatfittheirbodyshapeandmakethemlookbeautifulZaraforeverywomanPositioningMARKETINGSTRATEGY3IntegratedMarketingCommunicationStrategyCustomer-focusedPlacePriceProductPromotionHolisticapproachCustomer-focusedProductFeelproduct.HighinvolvementBacktothedrawingboard Designproductsthatcomplementthefullbodyshape Incorporateconsumerfeedbackonmostsalientattributes2)Productsymbolism Zaraknowsmybodyshape IlookgoodinZaraclothes IfeelbeautifulCustomer-focusedProductFeelproduct.Highinvolvement3)Colorsandmaterial Importantchoiceforperceivedqualityoftheproducts DifferentiateZarafromcompetitors Bringafreshlooktotheplussizesegment4)TheZARAlabel FeedontheexistingZaranameandvaluesassociatedwiththebrand Aimatcustomerloyalty Stillawayfromthecompetitorsthevariety-seekingcustomerIntegratedMarketingCommunicationStrategyCustomer-focusedPlacePriceProductPromotionHolisticapproachPromotionStrategyAbove-the-line:PrintadvertisingBellow-the-line:BrandcommunicationPRInternetEventsMediacooperationMaincommunicationobjectivesInformaboutthenewlineCreatepositiveemotionsinconnectiontothenewlineGenerateconsumerinterestandpurchaseintentionsAdvertisingStrategyMaincommunicationmessageUSP:TheonlytruefashionbrandtoconsideryourbodyshapeEmotionalappealLessismoreSupportlinelaunchonlywithprintadvertisingConsistentwithcurrentstrategyAdvertisingIdeaGenerationTargetconsumerBrandnameisthefashionexpertforyourwardrobeForthefullbodyshapewoman,ZaraBrandcharacterProduct/CompetitiveFramethathelpsyoulookthebestyoucanbecauseBrandpromiseittakesthehighfashiontrendsandadaptsthemfortheREALyouSupportAdvertisingPositioningFormulaAdvertisingCreative,Production&Placement

HighfashionlookFullshapebodymodelBodyshaperevealed:curvedlinesshouldnotbehiddenMetaphor:dominance,poweroftheportrayedwomenPeriperalcue:releasedsexuality,elementofsurprizeAdformatAdplacementAdtonalityAdvertisingCreative,Production&PlacementAdformatAdplacementAdtonalityCurvyisthenewblackDoublepagespreadMinimumcopyZaralogoAdvertisingCreative,Production&PlacementAdformatAdplacementHighfashionmonthlymagazines:Vogue,MarieClaire,Harper’sBazaarFashionmonthlymagazines:Glamour,InStyle,Joy,PetraIndependentmagazines:WAD,PoolAdtonalityCurvyisthenewblackbyZARABelow-the-lineCampaignBrandCOMPRInternetEventCSR:designcompetitionforfashionstudentsPossiblemediacooperationwithrealityshowssuchasProjectRunwayGoal:promoteinclusivenessandindividualismBelow-the-lineCampaignBrandCOMPRInternetEventEfficientproductplacementinmagazinesEditorialcoveragewithoutadvertisingexpenseGoal:makeasincerepropositiontotheREALwoman,usethejournalistasanexpertsourcetobuildbrandtrustTool:PRlookbookPRLookbookPRLookbookPRLookbookBelow-the-lineCampaignBrandCOMPRInternetEventUsethewebsiteasamaincommunicationchannelFeaturetheCSRinitiativetobuildawarenessFeatureviralvideosIncludeadvicesondifferentbodyshapesandproductcutsUsetheonlinecommunitiestoreachthehip,young,techsavvywomenBelow-the-lineCampaignBrandCOMPRInternetEventLinelauncheventin3keystoresinEurope:Madrid,Milan,andLondonTheme:ZaracelebratesdiversitywithanewlineGoal:offertherealexperienceofthebrandandwhatitstandsforIntegratedMark