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Overview
• Business
• The world’s 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
The industry Environment
Social Structure
– around 8 national languages –Country of two speeds: urban vs. rural – ‘New’ middle class with purchasing – Cultural shift in urban areas
• Strategic Recommendations
− Business, logistic and marketing strategy
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What is Marketing Management?
Marketing management is the art and science
of choosing target markets and getting, keeping, and growing
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Expectation
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Performance
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If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
customers through creating, delivering, and communicating
superior customer value.
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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?
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Target Marketing
• Deliver fashion “when the customer desires” • Twice a week delivery schedule
Demand
• No advertising or promotions
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• 10,000 new items at highly competitive price
Marketing Management
“How did Zara Capture the Chinese Market?”
Damak Donia 杜宁
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• What is Marketing Management?
• Overview Zara
– Zara’s Success: Its Business Model
Market Segmentation: Divide the market into segments
of customers
Target Marate
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Value and Satisfaction
Expectation
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Performance
199 openings in 2009
• Financials
• Sales: €4.5 Bn in 2008 • International sales 60% of total turnover
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Business Model
Supply
• Whereas most retailers designed 60% at start season, Zara designed 15% Dump unpopular product line
Chinese Economy
– GNP per capita $ 5890 – GDP growth of 10.7% – Industry/service economy
Government & Politics
– Deregulation of most sectors –New textile policy – Stable communist country
Demographic Structure
– 1.7 billion people – 85.2% literacy rate – Skilled labour available – English speakers Exist
Technology
Around the world
North America: 47 stores
Europe: 407 stores
South America: 30 stores
Africa: 41 stores
Asia - Oceania: 7 stores
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Marketing Environment: China case
• Marketing environment:
– China Marketing Environment – Market Attractiveness – Learning from Competitors: H&M and Esprit in China – SWOT Analysis:Threats and Opportunities – Key Success Factors to enter the Market