ZARA案例分析.ppt

“How did Zara Capture the Chinese Market?”Damak Donia 杜宁Marketing Management.What is Marketing Management?Overview ZaraZaras Success:Its Business Model Marketing environment:China Marketing EnvironmentMarket AttractivenessLearning from Competitors:H&M and Esprit in ChinaSWOT Analysis:Threats and OpportunitiesKey Success Factors to enter the MarketStrategic Recommendations Business,logistic and marketing strategy.What is Marketing Management?Marketing management is theart and science of choosing target markets and getting,keeping,and growing customers throughcreating,delivering,and communicatingsuperior customer value.From choosing target markets and building profitable relationships with them?Questions to ask:1.What customers will we serve?What is our target market?2.How can we best serve these customers?What is our value proposition?.Target MarketingMarket Segmentation:Divide the market into segments of customers.Value and SatisfactionExpectationPerformance108ExpectationPerformance810If performance is lower than expectations,satisfaction is low.If performance is higher than expectations,satisfaction is high.Business The worlds fastest growing fashion retailer of Spanish Brand Ranks among the three“global winners”with Gap and H&M Compelling mix of fashion,price and quality First store in 1975.Today 536 stores within 30 countries worldwide 199 openings in 2009 Financials Sales:4.5 Bn in 2008 International sales 60%of total turnoverOverview.Business ModelSupplyWhereas most retailers designed 60%at start season,Zara designed 15%Dump unpopular product line Deliver fashion“when the customer desires”Twice a week delivery schedule Demand No advertising or promotions 10,000 new items at highly competitive price.South America:30 storesAfrica:41 storesAsia-Oceania:7 storesEurope:407 storesNorth America:47 storesAround the world.The industry EnvironmentThe Natural Environment Free access to natural resources for textile clothingDemographic Structure 1.7 billion people 85.2%literacy rate Skilled labour available English speakers ExistSocial Structure around 8 national languagesCountry of two speeds:urban vs.rural New middle class with purchasing Cultural shift in urban areasTechnology Easy access Financial benefitsChinese Economy GNP per capita$5890 GDP growth of 10.7%Industry/service economyGovernment&Politics Deregulation of most sectors New textile policy Stable communist country Marketing Environment:China case.Market attractiveness DemandIndustry Estimated GDP growth of 6-7%in fashion industry Undersupply for branded fashion productsTarget markets 30%potential customers for branded fashion products 60%estimated for 2010 Supply Design World class design schools Production High innovation potential for manufacturingprocedures High productivity potential Cheap and skilled labour force High investment in technologyDistribution High investment in customer delight malls.Learning from Competitors:H&M and Esprit in ChinaClothing,fragrances,sunglasses and home textile Introduced watches and accessory(departure from its global tradition)luxury brand High Prices Shopping mall and shopping ariaAdvertisement in the streets and in the metro stationsWant to be known as a provider of quality ProductEspritcasual,formal and party wear three collections per yearBrand extensions:bags,caps,sunglasses,wallets and fragrancesPremium priceStrong control on promotionsInternational option at high quality/price ratiointernational format in major cities(large shopping malls)Focus on metros and modern cities Strong support on printed media(adapting to Chinese culture)H&MProductPricePlacePromotion.SWOT analysis:Threats and OpportunitiesHuge untapped marketChanging lifestyle and clothing preferencesDemand outstrips supply!Cheap labour and opportunities for local sourcingHigh productivity potentialOpportunitiesLow entry barriersCustomer bargaining powerUnpredictability of consumer behaviourProduct qualityTraditionalismThreats.Key Success FactorsvValuevLatest fashion with Chinese touchvBest PricesvProduct qualityvVarietyvCost/SpeedvLocal sourcing of raw materialvVertical Integration of supply chainvFast time-to-customervMass customizationvLow process costs.Strategic Recommendations to Capture the Chinese Market.Business StrategyGoal Fast growth in China How Implement Zara business model Introduce European supply chain system with fine tuning to suit the Chinese market Customise the marketing mixCOMPANYCOMPE-TITORCUSTOMERCOST/SPEEDVALUE/SPEEDVALUE/SPEED.Logistics StrategyLocalise and implement just-in-time and quick response times to demandModernising the supply chain with the use of information technologyForge strong relationships with value chain partners(suppliers and delivery co).Marketing StrategyProductIntroduce the occidental range of clothes for men and women Introduce a small section of Chinese clothes designed by upcoming Chinese designers through mass customisationIntroduce cotton clothes for the summer and woollen/synthetic one for the winter collectionsPriceUse penetration pricing(20%lower than Esprit)Stay away from the promotion by sale paradigm of H&M.PromotionPromotion targeted at increasing awareness about Zara and the concept of Fashion at great valueUse of print and television mediaTie up with colleges to sponsor their festivals to increase awareness and catch them youngPlaceSet up factory in the Factories areaFind at least more then 5 stores in the big cities.Open Zara stores in the most shopping avenue and big malls.Marketing Strategy.Thank You For Your Attention.