ZARA LAUNCH IN

PAKISTAN

STRATEGIG MARKETING PLAN

GROUP MEMBERS

DANISH ALI

FAHAD AIJAZ SIDDIQUI

IMRAN ZULFIQAR

MEHWISH HUSSAIN

MUHAMMAD SAFWAN

PRESENTED TO: MR FAZAL RABBI

OVERVEIW

Zara is a Spanish clothes and accessories brand, it is the flagship

brand of the Inditex group. Few clothing brands keep up with the

latest fashion, are of high quality and yet, affordable. It is probably

the amalgamation of all these qualities that made Zara, the Spanish

clothing brand become the go-to fashion brand for all.

ZARA’S CURRENT

BUSINESS SITUATION

FORBES: 53 MOST VALUABLE BRAND

FLAGSHIP BRAND OF INDITEX WITH AROUND 2100

STORES WORLDWIDE

A UNIQUE ABILITY TO DEVELOP NEW PRODUCT

AND LAUNCH WITHIN ONLY TWO WEEKS

ADDED 77 STORES IN 2015 IN ITS PORTFOLIO

ZARA’S MISSION

“Zara moves at the pace of society, fashion ideas, and trends

that society itself has natured. Hence its success among

people, cultures & generation that, inspite of their

differences, share a special sensitivity for fashion”.

ZARA’S VISION

“To meet and satisfy the desires of

customers, we always engage in

innovating our business. we promise

excellent quality clothes with unique

designs”.

SITUATION ANALYSIS

Zara a customer centric company whose business model

rotate around customer demand.

FIVE KEYS OF THE ZARA’S

BUSINESS MODEL

CUSTOMER

STORE

LOGISTICS

TEAMS

DESIGN &

PRODUCTION

A business model is a description

of how a business creates and

delivers value, both for the

customer and for the company. It

is a short-hand description of the

business of a company or

business unit. The description is

at a high level of aggregation and

provides a quick “big picture”

overview. If we describe the

business model of a specific

company we focus our description

on those components that are the

most important for the value

creation of the company, and that

set the business model apart from

the others.

CUSTOMER

“THE MAIN DRIVING FORCE BEHIND THE ZARA’S BRAND”

STARTING POINT FOR ALL ZARA ACTIVITIES

STORE

“MEETING POINT BETWEEN THE

CUSTOMER AND THE ZARA FASION OFFER”

2100 Stores collect information regarding customer demands

New products introduced twice a week

Meticulously designed shop windows

Maximum attention to interior and exterior architectural design

Appropriate coordination of garments

Excellent customer care

DESIGN & PRODUCTION

“INSPIRATION COMES FROM THE STREET,

MUSIC AND ART…. BUT ABOVE ALL, THE

STORE”

Proximity of production facilities

Immediate reaction to trends

Continuous work for all teams

Managers- Teams- Customer demands

forms- designs- fabrics- compliments

2400 suppliers, 260 designers

LOGISTICS

“HIGHLY FREQUENT AND CONSTANT DISTRIBUTION PERMITTING THE

OFFER TO BE CONSTANTLY RENEWED”

Millions of garments distributed

6000 employees at logistics locations

Designed with maximum flexibility

Customer oriented

TEAMS

“TEAMS WITH VAST SALES KNOWLEDGE

GEARED TO TOWARDS THE

CUSTOMERS”

150,000 critical-thinking professionals

Customer oriented

Make the store a pleasant environment

Apply corporate, social and environmental responsibility

in day-to-day work

ZARA’S PERFORMANCE

BRAND VALUE

25.1$ BILLION

SALES

19.7$ BILLION

2100 STORES

7000 Inditex

91 COUNTRIES

ZARA’S PRODUCTS

ZARA WOMAN

ZARA BASI

C

ZARA TRF

ZARA MEN

ZARA KIDS

ZARA’S BRAND IDENTITY

PRISM

ZARA’S STARTEGIC MARKETING

OBJECTIVES

“OVERALL MARKETING OBJECTIVE:

INCREASE THE CUSTOMER EQUITY”

Increase the customer satisfaction

Increase brand awareness and favorable attitudes among

consumers

Continue to grow by extending the Zara fashion brand

INDUSTRY

“HIGH STREET FASION BRAND”

INDUSTRY TREND

Democratization of luxury

Street trends

Designer houses

KEY SUCCESS FACTORS

Differentiation

New fashion consumer

CONSUMER ANALYSIS

“TODAY’S FASHION CONSUMER”

CONSUMER ANALYSIS

“MORE CHOICE, MORE EDUCATED, MORE SAAVY AND DEMANDING”

“NEW BREED OF SHOPPERS”

LOYALITY

VARIETY

FRESHNESS

LOCAL COMPETITORS

Levis

Outfitters

Dockers

Dinners

Denizen

Royal Tag

COMPETITOR’S

ANALYSIS

Swedish multinational c

lothing-retail company

SALES: $20.2 billion

4000 stores

62 countries

Brand value: $16 Billion

Brands: COS, & Other

Stories, Cheap Monday,

Monki, Weekday

COMPETITOR’S ANALYSIS

American worldwide

clothing and accessories

retailer.

SALES: $16.4 Billion

3727 stores

34 countries

Brand value: $12.2 Billion

Brands: Banana

Republic, Old

Navy, Intermix, and Athleta

COMPETITOR’S ANALYSIS

Japanese casual wear designer, manufacturer and retailer

SALES: $16.6 billion

1400 stores

16 countries

Brand value: $9 Billion

Brands: Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princesse Tam Tam

COMPETITOR’S ANALYSIS

Irish clothing retailer

SALES: $ 7.5 billion

325 stores

11 countries

Brand value: $6 Billion

Products: New born and kids clothing, women's wear, men's wear, home ware, accessories, footwear, beauty products and confectionery.

COMPETITOR’S ANALYSIS

American retailer that focuses casual wear for youngsters

SALES: $ 3.7 billion

1244 stores

11 countries

Brand value: $6 Billion

Brands: Abercrombie Kids, Hollister Co., Gilly Hicks, Ruehl No.925

ANALYSIS OF INTERNAL ENVIRONMENT OF ZARA

1. Resource Capabilities

Zara is deployed within the flexible and integrated Inditex business

model (Inditex, 2012).

2. Customer Driven

Zara offers a convincing mix of up-to-date styles and value at reasonable

prices.

It has a unique creation policy for Inditex:

36,000 fresh designs per year; about one-fourth go into creation.

Fresh items arrive in stores 2-6 times per week.

It relies on straight communication – very little traditional advertising:

Every day in-store feedback allows constant adjustment of collections.

Phone discussions between shop managers and market experts ensure

that the styles are desirable.

Attractive shops are established in key locations.

ANALYSIS OF INTERNAL ENVIRONMENT OF ZARA

3. Distribution and Logistics

Central distribution is conducted from one major location

.

Shops internationally receive delivery twice a week

Orders go to shops within 1-2 days.

S

W

O

T

SWOT ANALYSIS

STRENGTHS

Fast delivery of new Products and Trends in market

Lower Quantities

HIGH FASION FOR MODEST PRICES

WEAKNESSES

HIGH RESEARCH AND DEVELOPMENT COSTS

DON’T USE CELEBRITIES

DOES NOT SPEND MUCH MONEY ON ADVERTISING

ONE MANUFATURING AND DISTRIBUTION CENTRE IN THE

WORLD

OPPORTUNITIES

Global Market Penetration

Online Market

RESPONDING TO CURRENT INDUSTRY

TRENDS

IDENTIFYING THE NEED FOR THE PRODUCT

IN THE MARKET

THREATS

MARKET ENTRY BARRIERS from Local and Global

Competitor's

DESIGN CHALLENGES

EXISTING CUSTOMER REACTIONS

LOW COST IN SWITCHING

PORTER’S FIVE FORCES

MODEL OF ZARA

Rivalry: High

High exit barrier

Threat of New Entry: High

High fixed cost

Long sales cycle

Supplier Power: Low

Vertical Integration

Threat of Substitute: Moderate

H & M, GAP, Mango

Low buyer’s switching cost

Substantial customer loyalty

Buyer power: Moderate

Trend fashion

Price

ZARA’S STP

SEGMENTATION AND

TARGETING URBAN POPULATION

AGED: 18-40

MOST FASHION CONSCIOUS GROUP

WOMEN 65%

MEN 25%

CHILDREN 15%

MIDDLE CLASS AND UPPER CLASS

CONSCIOUS ABOUT THEIR LOOK

ENJOY SHOPPING AND SOCIALIZING

HECTIC LIFE STYLE

65%25%

15%

SEGMENTATION

Women

Men

Kids

POSITIONING“FAST HIGH FASHION AT

AFFORDABLE PRICE”

“THE ONLY TRUE FASHION BRAND THAT THINKS ABOUT YOUR STYLE OF

CLOTHING, RESPECT IT AND DESIGNS SPECIALLY FOR IT”

Marketing Strategy

CUSTOMER

MARKET RESEARCH

FASHION TRENDS

WHAT THE CULTURE ABOUT

DEFFERENTIATE ZARA FROM LOCAL COMPETITORS

DESIGN PRODUCTS THAT COMPLEMENT THE CUSTOMER

FASHION STYLE

PRODUCT SYMBOLISM

AIM AT CUSTOMER LOYALTY

COST

MARKET RESEARCH

LOCAL COMPETITORS PRICE

ACCORDING TO MARKET NEEDS

AS ZARA IS NEW FOR PAKISTAN MARKET, SO PREMIUM

PRICE STRATEGY WOULD BE ADOBTED

BUT FOR MIDDLE CLASS, QUALITY WOULD NOT BE

COMPRIMISED AS PER ZARA’S MISSION

CONVENIENCE

BRAND WILL BE AVAILABLE AT CONVIENT STORES, ONLINE STORES

CUSTOMERS WILL BE EASILY ACCESSING THE BRAND FROM ONLINE

PORTAL

24/7 HELPLINE WOULD BE DEVISED FOR TAKING CUSTOMER

ORDERS AND COMPLAINTS

DHA, GULSHAN, GULISTANE JAUHAR, NAZIMABAD AND SADDAR

SELECTED FOR THE CONVENIENT STORES

COMMUNICATION

INFORM ABOUT THE NEW BRAND

CREATE POSITIVE EMOTIONS IN CONNECTION WITH

THE NEW BRAND

GENERATE CONSUMER INTEREST AND PURCHASE

INTENTIONS

COMMUNICATION

ABOVE THE LINE

PRINT ADVERTISING

BRAND COMMUNICATION

INTERNET

EVENTS

ABOVE THE LINE

COMMUNICATION

Consistent with Current Strategy

COMMUNICATION

TVS ADS, RADIO ADS

BILLBOARDS AND NEWSPAPERS ADS

FEATURING THE BRAND WITH ARISING THE

EMOTIONAL APPEAL OF THE CONSUMER PREPARING

THEM FOR PURCHASE DECISION.

IT WILL BE TWO WAYS COMMUNICATION ADS. FOR

FEEDBACK AND QUERY RESOLUTION, A PLATFORM

IN THE FORM OF 24/7 HELPLINE AND WEBSITE

LOGINS WILL BE GENERATED SO THAT CONSUMER

CAN BE FACILITATED SMOOTHLY.

BRAND COMMUNICATION

CSR: DEISGN COMPETITION FOR FASHION

STUDENTS

POSSIBLE MEDIA COOPERATION WITH

MEDIA REALITY SHOWS

PROMOTE INCLUSIVENESS AND

INDIVIDUALISM

PR

EFFICIENT PRODUCT PLACEMENT IN

MAGAZINES AND NEWSPAPERS

EDITORIAL COVERAGE WITHOUT ADVERTSING

EXPENSE

USE THE JOURNALIST AS AN EXPERT SOURSE TO

BUILD BRAND TRUST

INTERNET

USE THE INTERNET WEBSITE AS A MAIN COMMUNICATION TOOL

FEATURE THE CSR INITIATIVE TO BUILD THE BRAND AWARENESS

FEATURE VIRAL VIDEOS

USE THE CONSUMER EXPERIENCE TO BUILD BRAND TRUST

USE INSTAGRAM, FACEBOOK, TWITTER, YOUTUBE FOR ADS AND VIDEOS POSTING

EVENTS

ZARA CELEBRATES

DIVERSITY WITH ITS

LAUNCH

LAUNCH IN 5

LOCATIONS SPECIALLY

IN MALLS

OFFER THE REAL

EXPERIENCE AND

WHAT IT STANDS FOR

Conclusion

ZARA WILL BE THE MOST FAVORITE BRAND IF ALL THE

MARKETING STRATEGY WILL BE IMPLIMENTED IN LINE

WITH ITS VISION

CONTINUOUS FINANCIAL AND MARKETING SUPPORT

WOULD BE REQUIRED FOR SUCCESSFUL

IMPLIMENTATION.

A NEW FASHION TREND WOULD BE ADOPTED BY THE

URBAN CLASS