Zara Mkg Plan

Table Of Contents

1.0 Executive Summary ........................................................................3

2.0 Situation Analysis ............................................................................3

2.1 Market Summary ..................................................................3

2.1.1 Market Demographics ....................................................4

2.1.2 Market Trends .............................................................5

2.1.3 Market Needs ...............................................................6

2.1.4 Market Growth ............................................................7

2.2 SWOT Analysis ....................................................................8

2.2.1 Strengths ...................................................................8

2.2.2 Weaknesses ................................................................9

2.2.3 Opportunities .............................................................10

2.2.4 Threats .....................................................................10

2.3 Competition ........................................................................11

2.4 Product Offering..................................................................12

2.5 Keys to Success....................................................................12

2.6 Critical Issues......................................................................13

3.0 Marketing Strategy.........................................................................13

3.1 Mission..............................................................................14

3.2 Marketing Objectives.............................................................14

3.3 Financial Objectives...............................................................14

3.4 Target Markets.....................................................................15

3.5 Positioning.........................................................................15

3.6 Strategies...........................................................................16

3.7 Marketing Mix.....................................................................17

3.7.1 Product: Consumer......................................................17

3.7.2 Price: Cost.................................................................18

3.7.3 Promotion: Communication.............................................19

3.7.4 Channels of Distribution: Convenience...............................19

3.8 Marketing Research...............................................................19

4.0 Financials....................................................................................20

4.1 Break-Even Analysis.............................................................20

4.2 Sales Forecast......................................................................21

4.2.1 Sales by Region...........................................................22

4.3 Expense Forecast..................................................................23

4.3.1 Expense by Region......................................................23

4.4 Linking Expense to Tactics and Strategy......................................24

4.5 Contribution Margins............................................................24

5.0 Control.......................................................................................25

5.1 Marketing Organisation..........................................................26

5.2 Contingency Planning............................................................26

Appendix.............................................................................................27

Bibliography.........................................................................................28

1.0 Executive Summary

Zara is the oldest, most internationally established company of the Spanish retail group Inditex SA. It is a high-fashion concept offering apparel, footwear and accessories for women, men and children. By focusing on shorter response times, the company ensures that its stores are able to carry clothes that the consumers want at that time. Zara offers its customers a unique mix of affordability, exclusivity and differentiation, as well as creating a unique shopping experience.

Zara has the potential for sustainable growth due to its competitive advantage and its ability to face the challenges of the apparel industry. The company keeps its operating income elevated, has a strong and unique business model, and has various opportunities for expansion in the retail industry (Craig et al, 2004).

2.0 Situation Analysis

To many Europeans, Zara is a familiar face with consistently trendy, well-priced new apparel every week. Market segments within the fashion retail context are very broad, but mainly include young, educated people, who are fashionable and sensitive to changes in fashion.

2.1 Market Summary

Zara offers clothes, footwear and accessories to women (60%) and men (25%), as well as clothing and accessories for children (15%). People at Zara do not define their target by segmenting ages and lifestyles as traditional retailers do. Zara's global target market is a young, educated one that likes fashion and is sensitive to fashion, but