How ZARA Can Connect With Consumers Through Community Building

Connecting the dots...

Marketing
Metaphoria
ZARA, Goal/
Connect the brand Research Objectives Tactics Schedule Budget

Humans are
wired for social
connection

Marketing
Metaphoria
ZARA, Goal/

Humans are
wired for social
connection

Overall
drive,
emotional need
to connect
with others

Marketing
Metaphoria
ZARA, Goal/

Humans are
To establish
wired for social
loyalty, brand
connection
must show same
loyalty to
consumers
Overall
drive,
emotional need
to connect
with others

Marketing
Metaphoria
ZARA, Goal/

Humans are
To establish
wired for social
loyalty, brand
connection
must show same
When
loyalty to
brand fosters
consumers
this connection:
Overall ‣ provides consumers
drive, with sense of
emotional need community
to connect ‣ builds brand
with others equity

Marketing
Metaphoria
ZARA, Goal/

ZARA
Not at needs to
forefront of incorporate sense
consumer of community
interaction Standoffish through
communications
plan
Built
brand identity Increase in
of mystique - stores, overall
initial market presence in U.S &
presence China consumers
without need to feel more
connected to
brand

Marketing
Metaphoria
ZARA, Goal/

Positioning: Fast high fashion at affordable prices

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Zara
Re-visiting the Brand
ZARA, Goal/

existing consumer base with brand beneﬁt fulﬁlls a major
potential for increased need for Chinese consumers
purchase

can expand to other cities room for further penetration

increasing size of middle class

US/China
Market Opportunities
ZARA, Goal/

169 US stores 1 US Store
300 global stores
1,700 global stores
Sales data
$9,911.2 million/yr
unavailable

GAP Inc: 3,150 1,600 US Stores
global stores $63,367 million/yr
$15,763 million/yr

US
Competition
ZARA, Goal/

ZARA introduced in US in
1988
* Higher product pricing
* Positioning - High fashion
brand
* Fulﬁll need - fast trends for
low-cost

US
Situation
ZARA, Goal/

metrosexual male
disposability of clothing/fashions
effect of the economy (accessories)
competition for GenY-ers
characteristics of women (Aga?)

US
Target
ZARA, Goal/

• Need: Aordable, fashionable, good-quality apparel
• Solution: self-actualization need- trendy products at lower
prices
• Demographic Characteristics:
– ages 15-30
– both female and male
– low to mid-range income
– work in big cities/pursuing higher-level education
• Psychographic Characteristics:
– Women and men
– enjoy shopping and socializing
– concerned about health and looks (work out and follow diets)
– into arts, enjoy dinning out

US
Target Profile
ZARA, Goal/

China’s largest
clothing producer 4 stores in China
¥50.9 million net 1700 stores
earnings worldwide
( second half of Sales in 2006
2008) $9,9 million

325 stores in UK 100 retail locations
275 locations in China
the world Partnerships in
£8.3 billion in UK Europe, US and
£ 713 million Japan
internationally Total Net Sales: 97.5
million

China
Competition
ZARA, Goal/

• shifting Chinese
demographic and cultural
trends
– Mom Pop stores Wal-Mart/
Carrefour
• China's retail market is
expected to grow by 34%
between 2008 and 2012
• growing middle class-
aspirational purchasing
attitudes

China
Situation
ZARA, Goal/

• Turned o by manufactured
goods in home country
Demographic: 15 - 29 years
•
and increasing purchasing
power
Working female class
•
Men’s exempliﬁcation of
•
status

China
Target
ZARA, Goal/

• Need: To buy aordable quality clothing in order to acquire status

• Solution: self-actualization need- trendy products at lower prices

• Demographic Characteristics:
ages 15-30
–
both female and male
–
low to mid-range income
–
work in big cities/ pursuing higher-level education
–

• Psychographic Characteristics:
– Women:
• enjoy shopping, socializing
• need to look good
• be perceived like they have more money than they actually do
– Men:
• into sports and look for good quality in things like cars, cigarettes, alcohol and clothing
• want to be perceived as successful and established

China
Target Profile
ZARA, Goal/

...focus on connecting employees, present and
potential consumers more intimately to the
brand.

Goal
ZARA, Goal/

Marketing Increase ZARA’s market share in the United States and China by
5% and sales by 10% by 2012.
Objective
•Increase purchase frequency among current customers by 15% by
Marketing
2012.
Strategy •Increase the number of ﬁrst time shoppers by 10% by 2012.
•Open 15 new stores in China (5 per year) and 21 in the United
States (7 per year) by 2012.

Communication Increase brand awareness and favorable attitudes among
customers.
Objective
Communication Build a more personal relationship with current and potential
customers.
Strategy
Communication •ZARAnet
•New Stores
Tactics •Turnover Promotions
•ZARA + ME Fashion Show
•Personal Shopper Program

Strategy Overview
ZARA, Goal/

Internal
Website
ZARA, Goal/

New Stores
Bus-wrap
ZARA, Goal/

New Stores
Sidewalk Decals
ZARA, Goal/

New Stores
Gaggle o’Models
ZARA, Goal/

New Stores
Handout
ZARA, Goal/

ZARA.com [support@zara.com]

New Zara Locations Coming May ‘09

New Stores
E-mail Alerts
ZARA, Goal/

New Stores
Tote Bag
ZARA, Goal/

GISELE BUNDCHEN FOR ZARA CAROLYN MURPHY FOR ZARA

New Stores
Models @ Opening
ZARA, Goal/

YOUR STORE:
BOSTON

Turnover
Widget
ZARA, Goal/

ZARA.com [support@zara.com]

This Week @ Zara

New this week:

Turnover
Opt-In Email Alerts
ZARA, Goal/

Next New
Shipment:
May 1, 2009

Turnover
Opt-In SMS Alerts
ZARA, Goal/

Turnover
Digital Countdown
ZARA, Goal/

Goal: Create community around brand while allowing
individuals to feel connected to ZARA fashion values

• Online Competition • Fashion Shows
– Photos/videos of outfits – Event agency,
uploaded online established venue,
streamed online
– Top 20: chosen by NYC
Shanghai*
– Zara customers vote on
website
– Top 10: featured at
show, produced, sold for
limited time

Zara + ME
Design Competition
ZARA, Goal/

+ ME

Always dreamed of having your clothes featured in a store? Share your original designs and possibly
Upload your
have them displayed in our store. All you have to do is click the upload button to post your design
Video
pictures and video discussing why we should select you. Zara will then choose 20 people and post
an item from each contestant along with video submission. Voters can vote for their favorite piece
by clicking on the dot located below and pressing “submit.” Voters are also given the chance to win
free tickets to NYC / Shanghai fashion show featuring the winning designs.

Upload your The top 10 outﬁts will be offered along with new Zara trends in New York City/Shanghai stores and
photos would be sold only for a limited time.

Zara + ME
Design Competition
ZARA, Goal/

+ ME

Turquoise/Black
Sweetheart
neckline, layers of
taffeta tulle,
sequined trim
Submit
hanky hem, and
Vote Now
zip back.

Back View

Sheila
Elise Giselle
Jennifer

Zara + ME
Design Competition
ZARA, Goal/

+ ME

Submit
Vote Now

Agapios Lula May
Ariel Jessica Miller

Zara + ME
Design Competition
ZARA, Goal/

• Develop one-on-one relationship
with consumers

• Top employees aid in styling-
commission of 1.5%

• PSP kiosks and online
appointments

Personal Shopper Program
ZARA, Goal/

Schedule
One-Year
ZARA, Goal/

Budget
One-Year
ZARA, Goal/

Moving Forward

• ZARA should continue to:
✓focus on increasing potential consumers
frequency of current consumers
✓monitor the success ROI of the outlined
communication programs
✓adapt the communication tactics accordingly
• Communication plan in conjunction with ZARA’s
overall business development goals relating to
further penetration of U.S. and China markets

How ZARA Can Connect With Consumers Through Community Building

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