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NEW BUSINESS AWARD

Linn van LeeuwenRavensbourneBA Fashion Buying & Brand Management2017-2018

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ZARA

PET

ITE

Proposal SummaryThis new business is about expanding the brand Zara into the petite market. The proposal is to create a brand extension, more specifically a womenswear petite range in order to fill the gap within the market. This is due to dissatisfaction in the existing petite clothing and sizing, which will be supported by primary and secondary research within this report. You will also find information on how this new business will be executed through exploring the seven P’s of the marketing mix, ass well as a business plan on how this brand expansion will be commercially viable and how it will successfully fill the gap in the market.

Introducing Zara Petite, a unique fashion range that continues to innovate and put customers at the heart of Zara’s unique business model. The collections cater to customers 5’3” and under and focus on trend-led designs, quality materials and affordable price points.

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THE RESEARCHMy Primary research prove that there’s a gap in the market. My questionnaire, that was conducted in fall 2017 with 62respondents (Women 5ft3 [160cm] and below) indicated dissatisfaction with petite clothing. Varying from issues within fit and size to lack of sufficient range and styles offered. Many respondents also felt that the petite ranges offered were only catered towards consumers who are petite in frame but not to those who are short and curvy as well. Respondents also expressed frustration regarding clothes offered are too long for petite women and more suitable for consumers above the stated height. Furthermore, the results from primary research also implied that there’s high demand for petite clothing. However, many respondents were not able to give enough feedback because of the lack (to none) petite ranges available which resulted in insufficient quantitative data - though every respondent claims that they wish there were more petite clothing available in the market.

In order to establish whether there is demand for a gap in the market. A online survey was conducted specifically for women 5’3 (160cm) and under that was sent out on 10 October, 2017. As of January 2018, the survey has received a total of 62 responses.

53.2%of the respondents

are age 20-24

24.2%of the respondents

are age 16-19

17.7%of the respondents

are age 25-34

28of the respondents are below 155cm

34of the respondents are above 155cm

Do you buy petite clothing?

58.1%

29.0%

12.9%

SometimesNot at all

All the time

This pie chart here portrays consumer awareness about petite clothing but also gives an indication of how the petite sector is performing. Only 12.9% shop at petite sections, this either indicates that there are still existing issues within the sector and/or perhaps that there might not be enough awareness nor availability for customers. However, 58.1% said ‘Sometimes’ which indicates poor sales on petite clothing.

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More than 50% are a student

Zara’s current demographic are women aged 16 to 40. However, a majority of their customer base are on the younger end of the spectrum with a lower to mid-range income. Because Zara is very customer oriented, they focus largely on quality, affordable and fashionable products for consumers who appreciate style.

67.7% shop both online and in-store

Zara’s current demographic are women aged 16 to 40. However, a majority of their customer base are on the younger end of the spectrum with a lower to mid-range income. Because Zara is very customer oriented, they focus largely on quality, affordable and fashionable products for consumers who appreciate style.

“(Petite sizing is) pretty bad, but considering 5"4 is average height and petite starts at 5"3, it’s essentially catering to half of all women and not specifically shorter women at all. This means anything more structured or with cut-aways, is usually out because the torso is too long and everything just falls in the wrong place. It also tends to have a more child like shape so finding clothes to fit over a d cup can be pretty hard. Often anything that fits nicely over my chest is way too big for my waist and vice versa.”

- Survey Respondent

What do you struggle with in terms of fit? (Multiple selection)

Jeans in general

Length of jeans

Shoulder breadth

Sleeve length

Big around waist & hips

Big around waist but fits on hips

Fits on waist but loose on hips

Too baggy/oversized

Deeper/bigger plunge in the front

Too much space around bust

Too little space around bust

0 10 20 30 40 50

Too tight

36 (58.1%)

47 (75.8%)

16 (27.4%)

35 (56.5%)

10 (16.1%)

28 (45.2%)

6 (9.7%)

23 (37.1%)

12 (19.4%)

20 (32.3%)

7 (11.3%)

1 (1.6%)

*Others have said: Issues with bra’s (1.6%), fits at waist but not the thighs (1.6%), sits lower at waist than it is supposed to (1.6%), waist and hips on dresses are too low (1.6%).

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PEOPLE• Female• Aged 16-40, majority young women. 54.4% of

the respondents are age 20-24• International - global audience• Fashion forward and trend conscious• Mid-range incomes, affordable price points for

students and the working class• Petite, height 5’3” (160cm) and below

Due to Zara’s establishment, they’re able to quickly react to consumer demands and trends internationally. Their largest market are women who love fashion in which style is an integral part of their life. Zara take inspiration from the catwalk and changing trends. They imitate ideas (with a twist) at a affordable price. In terms of the psychographic profile, Zara Petite would be placed near Early Adopters and Early Majority. Early adopters are more integrated into society than innovators and they also have the largest voice in regards to opinion. Which is why Zara’s largest consumer base sits within this category, as well as consumers 5 ft 3 and below.

On 22 November, 2017 a 56 minute longfocus group was conducted with four particpants who are below 5’3.

The participants:

Lauren: Third year sound design student and is 5ft tallSara: Third year graphic design student, in her late 30s and is 5ft1 tallHolly: First year fashion buying student and is 5ft tall as wellJel: Ravensbourne graduate, mid 30s and is 5ft1

All agreed that leg length is the main issue regarding clothing

All agreed that Topshop petite do petite sizing the best, however not all styles available are appealing nor inclusive to the regular Topshop range. Whereas as all found Missguided the worst brand for petites

Mixed thoughts about shopping in-store versus online. Though many would prefer to try on the clothes than ordering online. Some prefer online to avoid feeling embarrassed or disappointment of effort going to the stores

All agreed on inclusivity in terms of merchandising, they want to be able to shop with their friends instead of having to go to the “petite section” on their own and meet up later

All wished Zara could do a petite line as they find their clothing appealing but has the most issues regarding sizing

None of whom knew of any influencers and bloggers who are petite or represent petite clothing besides celebrities - who get their clothes specifically made for them

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PRODUCT

PETITE

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PRICE

£0 £20 £40 £60 £80 £100 £120 £140 £160 £180

*£200.00£9.00PETITE

My Primary and secondary research prove that there’s a gap in the market. My questionnaire, that was conducted in fall 2017 with 62respondents (Women 5ft3 [160cm] and below) indicated dissatisfaction with petite clothing. Varying from issues within fit and size to lack of sufficient range and styles offered. Many respondents also felt that the petite ranges offered were only

€39.95, £39.99, $49.90 €69.95, £69.99, $89.90 €19.95, £19.99, $25.90

UNITED STATES & CANADA EUROPE

CHINA

AUSTRALIA &NEW ZEALAND

KOREA & JAPAN

Zara petite will be available for worldwide shipping online and will also be stocked across 1,401 stores within North America, Europe, Asia and Oceania. It will only be available in countries where there are the most Zara stores already. The typical Zara consumer resides in big, urban cities and in more economically developed countries. In addition, in effort to maximise profit, balance must be met between Zara’s regular clothing and the petite range.

PLACE

£460

* = Price over £180

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New Petite Line Launching this Spring! March 21 | #ZaraPetite

PROMOTION

SPRING SUMMER 2019WOMENSWEAR 5’3” & UNDER

In terms of promotion, Zara generally do not invest a lot into their marketing and promotional materials. Instead of bold and flashy graphics like their competitors e.g. Boohoo, ASOS, etc. Zara utilise a more minimal and editorial approach with easy on the eye moving images and graphics that appeal to a larger market. Like the replica above of Zara’s website (Photos used from own photoshoot), the announcement of Zara Petite arrival is reflected by their current aesthetic. This is not to lose integrity of Zara’s well established brand, rather than creating something completely new and potentially a risk that could be more threatening towards Zara.

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START POINT

SELLING PERIOD

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SELLING PERIOD

2

ENDOF

SEASON

Investment Funding

TotalExpenditure Revenue

ForecastAverage Margin

Profit Forecast

BUSINESS PLAN

€ 800,000.0

€0.00

€165,000

€160,000

€ 652,828.0

€ 75,000.0

€ 75,000.0

€ 65,000.0

€ 0.00

€ 13,485,119.7

€ 17,530,655.6

€ 31,015,775.3

67.9%

69.9%

71.9%

73.9%

€ 147.172.0

€ 225,000.0

€ 95,000.0

€ 95,000.0

• Boost reputation for catering towards shorter women

• Average height for women is 5’3 (which is considered petite by many brands) will therefore maximise sales by demand

• Can reduce products going to waste/into sale

• Improve customer relationships

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

• Still may be struggles with finding the perfect fit

• Figuring out the size grading• Limit towards the designs, as they

should also be proportionate towards shorter women

• May be backlash as others may feel ex-cluded, e.g. plus-size, tall, maternity, etc

• Not as hyped up as it should be• Disorganisation of stock in-store and

online• Confusion between petites and regular

• Can utilise the extension towards a inno-vative marketing strategy

• Show the public that Zara is involved with society and current issues as well

• Opportunity to utilise technology creatively in terms of sizing and service

• Improved customer service by imposing better size guides and tools

• Recruit unique and empowering women to become ambassadors for an issue that isn’t commonly discussed

• Encourage styling and outfits tips for petite women (currently seems non-ex-istant) as other popular high street brands/influencers don’t do this

• Critcism for exclusion to other issues such as plus-size

• Mix-up between height and skinny, people may believe that Zara are promoting a smaller size and encouraing mental issues such as anorexia

• Sizing may not meet consumer expectations

SWOT

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The proposed idea of introducing a petite range for Zara will be successful because there is high demand in more petite clothing and improved sizing. Primary research in particular evidences this gap in the market. Too many brands offer petite clothing that are limited in styles and consist mostly of basics/staples pieces. The petite extension with Zara will fulfill both: bringing on improved sizes and more unique and trend-led designs. Zara provides a wide spectrum of styles, from trend-driven items to high-fashion quirky pieces to the basics, which makes it the ideal brand for filling in this gap. Primary research also indicates that petite women prefer inclusivity rather than exclusivity, and do not like it when brands sell petite clothes purely for petites and do not have a petite version of a regular item as well. Moreover, Zara is well-established financially and with infrastructure. They are able to fund this new business idea and can use their reputation and following to make it successful without outside help.

PETITE

PERSUASION

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