Zara Marketing Campaign Design
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The presentation proposes a new idea for a Zara line extension: Zara for women, a line designed for real women that embraces various body shapes. The project was done by combining marketing and buying behavior information. Keep in mind that this is a fictitious line. However, actual data about the company and the industry were used to design the marketing plan.
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Zara Marketing Campaign Design
- 1. New Collection Launch | Marketing Plan 22.10.2009
- 3. 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 Trendy in every situation Feeling good about looking good Fashion - friendly Feminine Hot and trendy Attributes Benefits Values Personality Brand Essence High-Street Fashion
- 4. 5 Keys of the Zara Business Model Store Teams Customer Logistics Design/ Production
- 6. Production
- 7. Logistics
- 9. s
- 10. 5 Keys of the Zara Business Model Store Store “Meeting point between the customer and 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
- 12. 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
- 13. 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. Customer oriented. 24h – receiving order to store delivery (Europe) Designed to absorb growth for next years. 18% annual discount rates. Logistics
- 15. 5 Keys of the Zara Business Model Teams “Teams with vast sales knowledge geared to towards the customer.” 89,112 professionals Customer oriented. Make the stores a pleasant environment. Apply corporate, social & environmental responsibility in day-to-day work. Teams
- 16. Zara’s Performance 159 store openings in 2008 1,530 stores 4 new countries in 2008 Brand Value: $ 8,609 M ZARA Sales € 6,824 Million 73 countries
- 17. The Industry High street fashion brand 14 Industry trends Democratization of luxury Inclusiveness Street trends Designer houses Key success factors Differentiation & individualism New fashion consumer
- 18. 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
- 19. Customer Focused Product Development Market entry barriers Saturated industry Design challenges Need to increase brand value Existing customer reactions Responding to current industry trends Identifying the need for the product in the market “Fat is not fashionable” Opportunities Challenges
- 20. Consumer Analysis Today’s fashion consumer: More choice, more educated, more savvy & demanding “New breed of shoppers” Loyalty, variety, freshness
- 21. Fashion Consumer Behavior Analysis Interest Gives pleasure & enjoyment Means of self-expression Involvement Emotions Behavior
- 22. Fashion Consumer Behavior Analysis Interest Purchasing experience Fun, fantasy, social or emotional gratification Hedonics Involvement Emotions Impulse buying Behavior
- 26. Values guide consumer behavior
- 27. Types of values: personal, economic, aestheticHedonics Involvement Emotions Behavior
- 30. A feeling of being unconstrained
- 32. suitable layouts
- 33. colors
- 35. emotionally uplifting atmosphereHedonics Involvement Emotions Behavior Impulse buying
- 37. Created by the symbolic interactions of the product & the consumer emotional experiences
- 38. Need to understand impulse buying behavior for fashion products from an experiential perspective = guidance in developing strategies Hedonics Involvement Emotions Behavior
- 39. 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 unconfident confident
- 40. Plus Size Consumer Behavior Self esteem: important motivation driver for consumption Consumers tend to assign their own meanings to clothes. Clothing: overt consumer behavior
- 41. Market Analysis Segment growth: 40% increase by 2014. Only 5% of retail space is dedicated to the +size products
- 42. Types of Competitors Dedicated Ranges 1 Extension of Size Ranges 2 Designer Boutiques 3 E-commerce 4
- 43. New Line Positioning High Fashion Boutiques Zara Torrid 1 H&M 2 High Price Low Price 3 Charming Shoppers M&S Dedicated Ranges 4 Extension of Size Ranges Junonia Designer Boutiques E-commerce Low Fashion
- 44. Differentiation Brand awareness New in this segments Brand loyalty More experienced competitors Size & growth Lack of e-commerce High fashion for modest prices Weaknesses Strengths
- 45. 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
- 46. Market & Consumer Research 1 2 Qualitative Goals: Insights into the mind of the consumer Focus Group new product idea & concept exploration gain more insights into our product positioning test communication strategies Test marketing Test product attributes in terms of fit, cuts, colors, communication & marketing strategy Quantitative Goals: Gather data on consumer attitudes, past behaviors, intended behaviors Warning: limited applicability, short development cycles Test both the future target consumers& existing ones Secondary research Integrate consumer input into product development Post-purchase evaluations
- 48. 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
- 49. Zara for every woman STP Plus size, full shape body women Clothes that fit their body shape and make them look beautiful Demographics Psychographics Benefits sought Main segment Interested in fashion trends Conscious about their looks Enjoy shopping and socializing Hectic lifestyle Aged 18-40 Work in big cities / pursuing higher-level education Mid-range income
- 50. Zara for every woman Positioning
- 52. Integrated Marketing Communication Strategy Holistic approach Price Product Customer-focused Place Promotion
- 53. Customer-focused Product Feel product. High involvement 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
- 54. 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
- 55. Integrated Marketing Communication Strategy Holistic approach Price Product Customer-focused Place Promotion
- 56. Promotion Strategy Main communication objectives Inform about the new line Create positive emotions in connection to the new line Generate consumer interest and purchase intentions Above-the-line: Print advertising Bellow-the-line: Brand communication PR Internet Events Media cooperation
- 57. Advertising Strategy Consistent with current strategy Less is more Main communication message USP: The only true fashion brand to consider your body shape Emotional appeal Support line launch only with print advertising
- 58. Advertising Idea Generation the full body shape woman, For Zara Brand name Target consumer 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 Positioning Formula
- 59. 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
- 60. Advertising Creative, Production & Placement Curvy is the new black Ad tonality Ad placement Ad format Double page spread Minimum copy Zara logo
- 61. Advertising Creative, Production & Placement Ad tonality Ad placement High fashion monthly magazines: Vogue, Marie Claire, Harper’s Bazaar Fashion monthly magazines: Glamour, InStyle, Joy, Petra Independent magazines: WAD, Pool Ad format
- 62. Curvy is the new black by ZARA
- 63. Below-the-line Campaign Brand COM PR Internet Event CSR: design competition for fashion students Possible media cooperation with reality shows such as Project Runway Goal: promote inclusiveness and individualism
- 64. Below-the-line Campaign Brand COM PR Internet Event 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
- 65. PR Lookbook
- 66. PR Lookbook
- 67. PR Lookbook
- 68. Below-the-line Campaign Brand COM PR Internet Event 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
- 69. Below-the-line Campaign Brand COM PR Internet Event 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
- 70. Integrated Marketing Communication Strategy Holistic approach Price Product Customer-focused Place Promotion
- 71. 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
- 72. Integrated Marketing Communication Strategy Holistic approach Price Product Customer-focused Place Promotion
- 73. Distribution Strategy Store atmosphere Zara typical store layout, wide open spaces Create enjoyment of shopping in the store(positive emotions | comfortable feeling | impulse buying | spending more than planned) Line having its own section in the store, consistent with current store space distribution The store as an important communication channel Consistent and strong store image, high store loyalty Point of interaction with the clients: store staff gathering important feedback, taking the pulse of the market
- 76. Thank you for your attention!
Editor's Notes
- Customer: Main driving force behind all ZARA activitiesUnlike the traditional fashion company business model, which starts at the designer’s drawing table, Inditex’s activity starts in the customer’s mind and continues in the store, where their fashion demands are gathered and the process begins. So that customers‘ expectations arrive in the store as quickly as possible, Inditex has a flexible, dynamic and innovative organisation which can take on newtrends and tastes in fashion in record time and at heady speeds. This link with the customer is not only considered from the fashion perspective It also covers the location and design of the stores, sited in the main shopping areas ofcities and conceived to guarantee a pleasant shoppingexperience. Furthermore, Inditex’s customer orientation is reflected in the prism of ethics and responsibility, both socially and environmentally, under which all the The customer plays the lead role in the store, design, production, logistics and all of Inditex’s teams of professionals.2. StoreThe key element in the business model: it is the meeting point between the customer and the chains’ fashion offer.acts as a source of inspiration for the chains’ design and sales teams. The information collected by the store teams regarding customerdemands starts the Inditex production process, which in the shortest possible time returns its latest fashion proposals to the store. All the Inditex stores receive new products twice a week.Top locations & Meticulously designed shop windows & Maximum attention to the interior and exterior architectural design & Appropriate coordination of garments & Excellent customer care.3. Design & productionInspiration comes from the street, music, art... but above all, the storeThe proximity of production facilitates an immediate reaction to new trends.All the chains have their own design and sales teams that conceive the collections in their entirety. Their work is not affected by seasons, but is continuous and starts with information processed at the stores on customers’ desires and impressions. Through the managers and their regional management teams, the creative teams and the sales staff are nourished by customer demands and work together to turn these desires into forms, designs, fabrics and compliments.1,186 suppliers & 300 designers4 LogisticsHighly frequent and constant distribution permitting the offer to be constantly renewed.697 million garments distributed5,000 employees at logistic centresThe distribution process is designed with maximum flexibility and customer orientation which governs all the Group’s actions. The Inditex logistics system is designed so that the time between receiving the order in the distribution centre until delivery in the store is on average 24 hours for European stores and a maximum of 48 hours for America or Asia.The current logistics organisation is designed to absorb growth for the next years.5 TeamsTeams with vast sales knowledge geared to towards the customerIf the customer is the driving force behind Inditex’s activity, the 89,112 professionals in the Group are the means by which our mission to meet customer demands is fulfilled. All employees, regardless of their proximity to the point of sale, share the same customer orientation, from thoseinvolved directly in the production process, such as designers, sales or logistics teams, to the professionals in corporate areas such as Human Resources, Systems or Finance, among others.The customer orientation of all the Inditex teams goes beyond just fashion. As well as their efforts to make the stores a pleasant environment in which the customer feels comfortable, for Inditex professionals the variables of corporate, social and environmental responsibility are always present in their day-to-day work.
- Customer: Main driving force behind all ZARA’s activityUnlike the traditional fashion company business model, which starts at the designer’s drawing table, Zara starts in the customer’s mind and continues in the store, where their fashion demands are gathered and the process begins. ZARA has a flexible, dynamic and innovative organisation which can take on new trends and tastes in fashion in record time and at heady speeds. This link with the customer is not only considered from the fashion perspective It also covers the location and design of the stores, sited in the main shopping areas ofcities and conceived to guarantee a pleasant shopping. ZARA’s customer orientation is reflected in the prism of ethics and responsibility, both socially and environmentally. The customer plays the lead role in the store, design, production, logistics and all of Inditex’s teams of professionals.
- 2. StoreThe key element in the business model: it is the meeting point between the customer and the chains’ fashion offer.acts as a source of inspiration for the chains’ design and sales teams. The information collected by the store teams regarding customerdemands starts the Zara production process, which in the shortest possible time returns its latest fashion proposals to the store. All Zara stores receive new products twice a week.Top locations & Meticulously designed shop windows & Maximum attention to the interior and exterior architectural design & Appropriate coordination of garments & Excellent customer care.The location and design of the stores is customer focused, sited in the main shopping areas ofcities and conceived to guarantee a pleasant shopping.
- 3. Design & productionInspiration comes from the street, music, art... but above all, the store. The proximity of production facilitates an immediate reaction to new trends.All the chains have their own design and sales teams that conceive the collections in their entirety. Their work is not affected by seasons, but is continuous and starts with information processed at the stores on customers’ desires and impressions. Through the managers and their regional management teams, the creative teams and the sales staff are nourished by customer demands and work together to turn these desires into forms, designs, fabrics and compliments.1,186 suppliers & 200 designers
- 4 LogisticsHighly frequent and constant distribution permitting the offer to be constantly renewed.697 million garments distributed, 5,000 employees at logistic centresThe distribution process is designed with maximum flexibility and customer orientation which governs all the Group’s actions. The ZARA logistics system is designed so that the time between receiving the order in the distribution centre until delivery in the store is on average 24 hours for European stores and a maximum of 48 hours for America or Asia.The current logistics organisation is designed to absorb growth for the next years.
- 5 TeamsTeams with vast sales knowledge geared to towards the customerIf the customer is the driving force behind ZARA activity, the 89,112 professionals in the Group are the means by which our mission to meet customer demands is fulfilled. All employees, regardless of their proximity to the point of sale, share the same customer orientation, from thoseinvolved directly in the production process, such as designers, sales or logistics teams, to the professionals in corporate areas such as Human Resources, Systems or Finance, among others.The customer orientation of all the ZARAteams goes beyond just fashion. As well as their efforts to make the stores a pleasant environment in which the customer feels comfortable, for ZARA professionals the variables of corporate, social and environmental responsibility are always present in their day-to-day work.
- Apparel In many senses, rising affluence, social mobility, the diversification of retail brands and consumer empowerment have all helped to democratise luxury, making it a key attribute of many brand propositions
- Because the target is the fashion conscious woman that does not want to Designs, cuts, colors & fit for the curvy woman
- Because the target is the fashion conscious woman that does not want to Designs, cuts, colors & fit for the curvy womanIncreased effort in designing: creativity, innovation, original thinkingExisting customers reacting to the new line“Fat is not fashionable” = CONSUMER RESEARCH
- Must ensure that shoppers are offered many options worth the price & shoppers will continue to frequent stores that offer a fresh experience each time they visit – KEY COMPETITIVE ADVANTAGE OF ZARAMore choice, more educated, more savvy & demanding – courtesy of internet, women’s fashion magazines, immediate info accessIn a climate as intensive & competitive as the fashion industry, understanding how consumer patterns evolve is paramountResult: new breed of shoppers – need to be attracted in a new way: convinced that fashion is worth investing inGiven this new consumer mindset, how can we attract them?LoyaltyVariety is criticalNewness is key
- In fashion marketing, involvement refers to the extent of interest in the product category: apparel & accessoriesWe want to encourage this aspect of involvement through our marketing materials: e.g. communication campaign suggesting that every shape is beautiful: you are what you wear.Thus, clothing is personally relevant for the consumer: makes the individual become involved in the product choiceConsumer interest in clothing:Gives pleasure & enjoyment – hedonistic perspective related to involvementHedonics: Suggests that purchasing experience may be more important than product acquisitionE.g. customers are more likely to engage in impulse buying when motivated by desires such as fun, fantasy, social or emotional gratificationHelps shape their image = means of self-expression – because of the symbolic product properties: vehicle that reflects self image and identity in both a personal and social contextInvolvement:Important because:Consumers attach meaning to their clothes Highlighted by the role of fashion in today’s societyDriven by: Individual motive to use certain products to project a desired self-imageLinked to personal values & needs:Use products to express and communicate our values to othersValues generate consumer goals and guide consumer making procesesImportant to understand the linkage between involvement & values (personal, economic, aesthetics)
- In fashion marketing, involvement refers to the extent of interest in the product category: apparel & accessoriesWe want to encourage this aspect of involvement through our marketing materials: e.g. communication campaign suggesting that every shape is beautiful: you are what you wear.Thus, clothing is personally relevant for the consumer: makes the individual become involved in the product choiceConsumer interest in clothing:Gives pleasure & enjoyment – hedonistic perspective related to involvementHedonics: Suggests that purchasing experience may be more important than product acquisitionE.g. customers are more likely to engage in impulse buying when motivated by desires such as fun, fantasy, social or emotional gratificationHelps shape their image = means of self-expression – because of the symbolic product properties: vehicle that reflects self image and identity in both a personal and social contextInvolvement:Important because:Consumers attach meaning to their clothes Highlighted by the role of fashion in today’s societyDriven by: Individual motive to use certain products to project a desired self-imageLinked to personal values & needs:Use products to express and communicate our values to othersValues generate consumer goals and guide consumer making procesesImportant to understand the linkage between involvement & values (personal, economic, aesthetics)
- In fashion marketing, involvement refers to the extent of interest in the product category: apparel & accessoriesWe want to encourage this aspect of involvement through our marketing materials: e.g. communication campaign suggesting that every shape is beautiful: you are what you wear.Thus, clothing is personally relevant for the consumer: makes the individual become involved in the product choiceInvolvement:Important because:Consumers attach meaning to their clothes Highlighted by the role of fashion in today’s societyDriven by: Individual motive to use certain products to project a desired self-imageLinked to personal values & needs:Use products to express and communicate our values to othersValues generate consumer goals and guide consumer making procesesImportant to understand the linkage between involvement & values (personal, economic, aesthetics)Involvement has also been traditionally connected to the role of emotions.
- E.g. customers are more likely to engage in impulse buying when motivated by desires such as fun, fantasy, social or emotional gratification
- In fashion marketing, involvement refers to the extent of interest in the product category: apparel & accessoriesWe want to encourage this aspect of involvement through our marketing materials: e.g. communication campaign suggesting that every shape is beautiful: you are what you wear.Thus, clothing is personally relevant for the consumer: makes the individual become involved in the product choiceConsumer interest in clothing:Gives pleasure & enjoyment – hedonistic perspective related to involvementHedonics: Suggests that purchasing experience may be more important than product acquisitionE.g. customers are more likely to engage in impulse buying when motivated by desires such as fun, fantasy, social or emotional gratificationHelps shape their image = means of self-expression – because of the symbolic product properties: vehicle that reflects self image and identity in both a personal and social contextInvolvement:Important because:Consumers attach meaning to their clothes Highlighted by the role of fashion in today’s societyDriven by: Individual motive to use certain products to project a desired self-imageLinked to personal values & needs:Use products to express and communicate our values to othersValues generate consumer goals and guide consumer making procesesImportant to understand the linkage between involvement & values (personal, economic, aesthetics)Involvement has also been traditionally connected to the role of emotions.Sudden compelling and hedonically complex buying behavior: the quickness of the decision process precludes thoughtful and deliberate consideration of alternatives
- Size 4 vs. 141 in 3 women are unhappy with the way clothes fit them * Francois imagesTaste revolution: full body shape women becoming more confident, experimenting with fashion and requiring more fashionable products
- Self esteem is especially important for our new target. Relevance of self-esteemEspecially important for the new targetImportant motivation drive for consumption – trying to accept product that increase self-esteemMeanings are assigned to products – not always what we intend them to beClothing: overt consumption behavior: makes consumers’ values & tastes accessible to others – need to improve the self-esteem of the plus size woman and give her the confidence to be herself in any situationHow?Means end chainAdd on for the fashion consumer behavior by highlighting the importance of self-esteem (affect) for our new target.
- Plus-size accounts for 20-25% of the sales of the overall women marketPlus-size clothing retail market for adults and children totaled $76 billion in 2006 (Global Information, Inc. ). Sales will continue to rise and reach the $100 billion mark by the year 2012 (Global Information, Inc. ). Segment growth: 40% increase by 2014.Only 5% of retail space is dedicated to the +size products
- The challenges we presented for developing the new line: risk of alienating current consumer, fighting the perception that fat is not fashionable, and correctly identifying the emotional needs and wants of the full body shape woman.In order to face these challenges effectively & because we are developing a new line, market & consumer research are important.Start with qua
- QualitativeInsights into the mind of the consumerStrategies for identifying customer needs / wants / attitudesFocus groups+size women: new product idea & concept exploration; gain more insights into our product positioning, test communication strategiesWarning! Must be repeated regularly to keep in line with changing consumer needsTest marketingTest product attributes in terms of fit, cuts, colors, communication & marketing strategyImportant: integrate feedback of own retailersHow: present products / drawings to potential consumers & to our retailersFocus groupnew line is welcomed by the participantsCuts that are complimenting body shapesDesigns that are trendy – feel that current competitor product offering is not fashionable enoughFrustration towards Zara & similar brands that promise fashion @ appealing prices but only for women of a certain shapeChoice of clothes has personal relevance / is effective cause they are conscious about their look – focus on extending the Zara image to make them feel includedConsumer SurveysCurrent customers have a positive attitude towards the new lineFits with the current Zara brand positioning80% of the survey + size women: admire the Zara brand and reported positive attitudes and future purchase intentions
- How we want to be positioned?
- Invite media