Upload
beastrid
View
10.716
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Title
Subtitle
Introduction
Fashion apparel retail store from Spain
A brand of the Inditex group
Established globally; 10 stores in the U.S.
Fashion at affordable prices positioning
Unique business model
SWOT: External Analysis
Opportunities
Standardized fashion industry
Downtrend for US department
stores
Internet retailing
Increased buying power of
Zara’s target market
Importance of differentiation
in retailing
Metrosexuality trend
Threats
Established competitors
Economic downtrend –
customers may turn to discount
stores like TJ Maxx, Marshall’s,
etc
Price sensitivity of Zara’s target
market, looking for more at less
Continuous changing trends in
the fashion industry
SWOT: Internal AnalysisStrengths
Unique business model: vertical integration and working
through the whole value chain In-house production: flexibility
in terms of variety, amount, sizes of products & very quick to response to needs of consumers
Central distribution: minimizing lead times
Best designs: very quick fashion follower
Weaknesses
Not realized economies of scale Higher R&D costs to respond quickly and efficiently No internet retailing Tendency to prefer American brands: different tastes & expectations Lack of brand awareness and equity No advertising besides in store
Marketing Problem
Market saturation – fierce competition
Low brand presence – low brand awareness
Research Objectives Looking into the potential consumers’ buying behavior with
regard to fashion apparel - Consumers’ purchase intention - Apparel purchase behavior - Key attributes that consumers look for when buying
apparel
Evaluation of the Zara product concept and potential- Desired brand image for Zara - Examine possibility of introducing Zara to the Boston
market - Examine brand awareness and brand knowledge of Zara
- Examine proclivity toward shopping Zara’s clothes online
- Identify the best location for a Zara store in Boston- Examine the potential for a male product line
Methodology
Data Collection Method
Purpose of study: to gather information about consumers’ purchasing habits and behaviors, attitudes, awareness level, purchase intentions, brand’s positioning, competitors, etc.
o secondary (exploratory) method o primary (descriptive) research: surveys
Methodology (cont’d)
Sampling Method and Samples
o Convenience sampling
o Sample size: 100 people Breakdown by Gender
Male38%
Female62%
Breakdown by Age
18-2122%
22-2537%
26-3541%
Breakdown by Income
27%
42%
31%
<20K
20K-59.99K
>60K
Methodology (cont’d) Measures
- The questionnaire is divided into 3 sections- Four kinds of different measurement levels: nominal, ordinal, interval, and ratio
Data Analysis
- SPSS software - Frequencies, cross-tabulations, t-test, and one-way ANOVA
Action standard: moderate
- A top 2 box %: 50 %- A mean score of 3.25.
Findings
Awareness
58% have never heard about Zara
25% have heard, but never purchased its products
Break-down:- 49% of females have heard or have purchased from Zara- 62% in the less than $20K income group
- 48% for the 26-35 age group
Usage Behavior
Target Market:
Shop about twice a month (34%)
Spend mostly $30-$50 (26%) or “more than $110” (24%) per month
24% bought something “trendy” in the last 2 weeks
Most utilized channel to shop from: specialty store (1.82), followed by department store (1.97)
Factors Influencing Buying Decision
Factors Influencing Buying Decision
0
20
40
60
80
Total 37 58 17 30 19 8 57 26
Males 47 58 11 11 16 5 50 24
Females 31 58 21 42 5 10 61 27
Partner/Spouse/Family
FriendsCelebrity Styles
Fashion Magazines
TV Programs
Fashion Shows
In-Store Displays
Others
Factors When Selecting a Store
1. Variety of product choices (3.06)
2. Discounts offered (3.29)
3. Store location (3.58)
Overall Evaluation
Gender differences- females more positive evaluation
Age differences- oldest least positive
Income differences- middle income group least positive
Overall Evaluation
0
20
40
60
80
100
Top 2 Box % 46 29 56 55 50 41 62 33 55
Total Male Female 18-21 22-25 26-35 <$20K$20K -
$59.99K>$60K
Overall Evaluation
1
2
3
4
5
Mean scores 3.46 3.32 3.55 3.55 3.58 3.38 3.65 3.35 3.55
Total Male Female 18-21 22-25 26-35 <$20K$20K -
$59.99K>$60K
Brand Image
Brand Image
-3
-2
-1
0
1
2
3
Mean score 1.72 1.03 0.92 1.4 1.32 1.75 0.78 1.83 0.77 1.09
Attractive Classy Beautiful Chic Sexy Young Dressy Trendy Expensive Quality
Purchase IntentionPurchase Intention
1
2
3
4
5
Mean scores 3.37 3.24 3.45 3.45 3.44 3.33 3.54 3.3 3.48
Total Male Female 18-21 22-25 26-35 <$20K$20K -
$59.99K>$60K
Top 2 Box % of 50 Mean score: 3.37 Females moreinclined to purchase Age and incomedifferences
Average Spending
Total: 30% - $30 to $50; 27% - $51 to $70 34% of females - $30 to $50; 35% of males - $51 to $70 Spending increases with age
Effective Promotional Tools
Promotional Tools
0
10
20
30
40
50
60
70
80
90
100
%
Discounts
Special promotions
Magazine inserts/coupons
Celebrity endorsements
Membership incentives
Free gift
Binding with a social cause
Others
PlacementOnline Shopping
Largely neutral attitude: mean score 2.77 No gender difference Middle age group: most inclined (3.06) Middle income group: least inclined (2.68)
Store Location
Newbury Street strongly favored: mean score 4.22 Prudential Center (3.99) and Copley (3.98): second
alternatives
Conclusion
LAUNCH
Target market: females aged 18-25 young, trendy, economically conservative, and fun
Trendy, attractive, young brand image
Unique business model - success
Recommendations
Product Zara will offer fresh, stylish, trendy,
vibrant products to the female consumer
Price $30-$70: keep current pricing strategy
Recommendations (cont’d)
Promotion
On first day of opening, offer 10% off purchase and first 100 purchasing customers to receive free gift bag to include Zara tee and gift certificate for $10 off future purchase
End of first month after opening will implement friend/family discount - bring someone, and they both receive 15% off their purchase
Placement
Respondents rate Newbury Street as their top
retail location
Launch Zara here to take advantage of convenient
public transportation and high foot traffic
Focus on building Zara brand awareness before
implementing online store
Recommendations (cont’d)
Future Research Direction
Measure brand awareness and attitude
Male consumers
Online store
Questions and comments?
Thank you!