2. Disclaimer: This presentation is an academic evaluation only.
Industry Overview
“E-Commerce”
34%
26%
20%
20%
U.K Germany France Other European Countries
36%
22%
18%
11%
9%
4%
Software, Books and Music Computer Hard ware and Electronics
Fashion Clothes Health and Beauty Products
Toys and Video Games and sports items Small Appliances and gardens equipments
3. Disclaimer: This presentation is an academic evaluation only.
Digital Disruption
74% of business executives say their
company has a digital strategy, but
only 16% feel they have the skills and
capabilities to execute it.
A piecemeal approach to your digital
channels and methods is no longer
sufficient. To win, your organization
must harness digital technologies to
deliver an excellent digital customer
experience
Source: Forrester Research
4. Disclaimer: This presentation is an academic evaluation only.
Digital Disruption
Source: http://deloitte.wsj.com/riskandcompliance/files/2013/12/Technology_disruptors.png
5. Disclaimer: This presentation is an academic evaluation only.
Huge product
selection of shoe
brands
Fast brand
building
Expand into
clothing, sports,
home, accessories
Great customer
feedback
Expansion into
further markets
Founded in 2008, Germany by Robert Gentz, David Schneider, Rubin Ritter
Multinational e-commerce company that specializes in
selling shoes, clothing and other fashion & lifestyle products online
Has become the leader in Europe fashion eCommerce by
being fast growing European company ever with >1 € billion net sales in 4
years
Zalando Overview
2008: German online
shoe shop
2010: Expansion to
further categories
2013: Online store
leader in the EU
6. Disclaimer: This presentation is an academic evaluation only.
Zalando SWOT Analysis
STRENGHTS
Market leader
High growth rate
Strong management team
Access to capital: Funding $243.4M
Total addressable market Europe: € 500bn
Lean structure
Over 150 brands
WEAKNESSES
Investments in research and development
No concrete plans of expansion
Growing too fast
Young management lack of experience
OPPORTUNITIES
Emerging market
Expansion outside Europe
Diversification (new fashion products)
Growth rate and profitability
THREATS
Change in consumer habits
Local competitors in specific counties
Price changes
Government regulations
Existing competitors (Zappos, Amazon)
SWOT
7. Disclaimer: This presentation is an academic evaluation only.
Target Audience
Target
Audience
Female
between 18-
55 years
Male between
18-45 years
Teenager
under 18
years
Zalando is presumed to have
achieved an astonishing brand
recognition rate of 95%
Zalando builds relationships with
its final consumers whom are the
actual people who goes on the
website and order products
What could Zalando do better?
• Always Free Shipping
• Involve more men in ad’s
• Customer Service
• Zalando TV
• Virtual Fitting Room – Shopping Experiences
9. Disclaimer: This presentation is an academic evaluation only.
Zalando’s current strategy
ALT
Zalando produces a quarterly
glossy fashion magazine that
already counts among the
highest-circulation print
magazines in Europe.
Zalando carries out sales
promotion by free delivery of
the products, discounts on
various products and coupons
which can be redeemed later by
the customers.
Zalando heavily invest in
building relation with
universities, doing workshop
and events. ( Eg: Hack week
organised by Zalando)
http://tech.zalando.com/pages/
events.html.
BLT
Zalando is leading its
own blog and backed by
brilliant search marketing
They have poked around in
social media, fancy TV ads,
Google ads, and with the use of
good content and linking, they
have managed to optimize their
page emphatically. their idea
was “go big or go home!”
Zalando is using Social Media to
interact with the Customer. For
example, Zalando has currently
over 200.000 likes on Facebook
fan pages and is using twitter,
and all the other smart forward-
looking social media concepts to
illustrate itself perfectly.
TLT
Zalando using the social
media and website
attracting its customer for
off line sales.
Selling its own brand in a
Pop-up store in Berlin, while
offline, as an inaugural event
for the brand. Although this
doesn’t really have an effect
on share of sales, it
definitely affects the brand’s
recognition
Zalando should reach customers more through TV, Print, E-newsletter, Blogs & APP as well.
Through Applications on Google Play, Apple Store, Amazon Store, Window Store it can reaching more mobile devices and becomes a more accessible option
10. Disclaimer: This presentation is an academic evaluation only.
Social Media Analysis
Zalando Stats
71k
10.7k
52k
28k
10k
*Statistics as of 24/06/2014
“Zalando requires a new innovative strategy to penetrate the market”
11. Disclaimer: This presentation is an academic evaluation only.
Virtual Shopping Experience
We introduce virtual fitting room – Shopping Experience
12. Disclaimer: This presentation is an academic evaluation only.
Guerrilla Pitch
Install Cisco
StyleME –
Virtual
Shopping
Mirror
Top Bus
stops &
Tube
stations at
Oxford
Street
Shopping
centers
- Westfield (
Stratford )
- Westfield (
Whitecity )
Let people
Share
experiences
on Social
Media
Invite
friends &
Receive
free
vouchers
Cisco StyleMe – Virtual Mirror Technology
How are we going to do that ?
13. Disclaimer: This presentation is an academic evaluation only.
Reach Tactics Audience Strategy Outcomes
Search Engine Optimization Online Users Create awareness Trust Gain & Portal Sign-up
Pay Per Click Online Users Create awareness Trust Gain & Portal Sign-up
Affiliate Advertisement Online Users Create awareness Trust Gain & Portal Sign-up
Online PR Online Users Create awareness Trust Gain & Portal Sign-up
Social Media Marketing Online Users Create awareness Trust Gain & Portal Sign-up
Interactive Videos Online Users Create awareness Trust Gain & Portal Sign-up
Try Clothes using Augmented Reality using Virtual Fitting Room
Share experience on Facebook, Twitter, YouTube (Earned)
Reviews & Ratings (Earned)
Social Media Strategy
14. Disclaimer: This presentation is an academic evaluation only.
Sales Funnel
Awareness
Leads
Prospects
Brand
• Marketing Activity on Website,
Commercial’s etc.
Create
• Huge variety of brands
• Quality
• Promotions & Offers
Content
• Newsletter
• Customer Service
Build
• Membership
• Loyalty Program
• Customer Specials
Loyal Customer
CRM
Sales
15. Disclaimer: This presentation is an academic evaluation only.
CRM
Market leader, due to:
excellence operations, advertising, satisfied customers
Relationships with final consumers
no intermediaries & exclusive services
Provider for customer management
for supporting in concepts and technologies in order to optimise
the customer management process
Vitality
holistic view of its customers during all stages of the customer
life cycle
Web 2.0 & Digital Marketing
target individual & tailor the message to best suit their needs
What is the future ?
• Take Care of unsatisfied Customers, Use Their Feedback to Improve
• Cocreation
• keep track of customers ( big data )
• "increase" word of mouth
16. Disclaimer: This presentation is an academic evaluation only.
Customer Loyalty
• Filter Functions
• Detailed Product
Views (Virtual
Fitting Room)
• Online: Blog
• Offline:
Magazine
• Reviews &
Ratings
• i.e.: M&S
• Membership
• Extra promotions
• Exclusive
Customer
Service
Lounge for
Members
Reward
Points
Improve
Website
Fashion
Communities
17. Disclaimer: This presentation is an academic evaluation only.
Rewards & Reviews
• Zalando Lounge Membership
– Exclusive and inexpensive offers
– Promotions & discounts
– Monthly newsletter & latest shopping trends before others will get (exclusive)
– Size advisor
– Birthday gifts
• Loyal customers will get promotions, vouchers or 50% discount on next shopping
• Online Outlet
• Portfolio Shopping Experience
– Search for a dress
– get the whole outfit: right jacket, shoes, accessories, etc.
18. Disclaimer: This presentation is an academic evaluation only.
Conclusion
• In order to be the market leader – Zalando is able
to lead by providing Virtual Shopping experience
to customers and create new customers too by
creating a Guerrilla marketing strategy. It will
increase company Brand Awareness and increase
market share.
• Currently online websites such as Amazon, Ebay
and others are not providing the Virtual Shopping
experience. As being a new company to the
industry – disruptive technology like Cisco
StyleMe can really help them grow faster by
penetrating the market.
Zalando has become the market leader, mainly due to operational excellence; and partly thanks to fancy television advertising in the online market
Within the wheel of disruption, the golden triangle is encircled by other emergent technologies and sectors affected by mobile, social and real-time, such as big data, geo-location cloud and more.
Yet again, for businesses to thrive let alone survive, social, mobile, and real-time strategies are not enough in isolation. These disruptive technologies are merely just the beginning of a still shaping era of connected consumerism.
Source: http://thenextweb.com/entrepreneur/2014/04/16/digital-disruption-changing-business-technology-isnt-answer/
When we stop chasing trends and fighting for technology and marketing strategies in the moment, we can appreciate that our view of technology and its aggregate impact on markets is far more massive that we initially realized.
Zalando has become the market leader, mainly due to operational excellence; and partly thanks to fancy television advertising in the online market
Zalando’s headquarter is in Berlin, Germany. Since then, Zalando has expanded to offer its retail services in a total of fourteen European countries.
Currently Zalando is operationally active in Germany, Austria, Switzerland, France, Belgium, the Netherlands, Italy, Spain, Poland, Sweden, Denmark, Finland, Norway and the UK.
Identified 3 different target groups…
Below the line Marketing by Zalando:
1. Zalando produces a quarterly glossy fashion magazine that already counts among the highest-circulation print magazines in Europe.
2. Zalando carries out sales promotion by free delivery of the products, discounts on various products and coupons which can be redeemed later by the customers.
3. Zalando heavily invest in building relation with universities, doing workshop and events. ( Eg: Hack week organised by Zalando) http://tech.zalando.com/pages/events.html.
Above the line marketing by Zalando:
Zalando is leading its own blog and backed by brilliant search marketing
2. They have poked around in social media, fancy TV ads, Google ads, and with the use of good content and linking, they have managed to optimize their page emphatically. their idea was “go big or go home!”
3. Zalando is using Social Media to interact with the Customer. For example, Zalando has currently over 200.000 likes on Facebook fan pages and is using twitter, and all the other smart forward-looking social media concepts to illustrate itself perfectly.
Zalando has become the market leader, mainly due to operational excellence; and partly thanks to fancy television advertising in the online market
Below the line Marketing by Zalando:
1. Zalando produces a quarterly glossy fashion magazine that already counts among the highest-circulation print magazines in Europe.
2. Zalando carries out sales promotion by free delivery of the products, discounts on various products and coupons which can be redeemed later by the customers.
3. Zalando heavily invest in building relation with universities, doing workshop and events. ( Eg: Hack week organised by Zalando) http://tech.zalando.com/pages/events.html.
Above the line marketing by Zalando:
Zalando is leading its own blog and backed by brilliant search marketing
2. They have poked around in social media, fancy TV ads, Google ads, and with the use of good content and linking, they have managed to optimize their page emphatically. their idea was “go big or go home!”
3. Zalando is using Social Media to interact with the Customer. For example, Zalando has currently over 200.000 likes on Facebook fan pages and is using twitter, and all the other smart forward-looking social media concepts to illustrate itself perfectly.
Building relationship with final customers which is the target audience for the CRM service teams. There are no intermediaries, as it is a direct sales channel. Zalando “only” focus on the relationship between the company and the actual consumer.
To manage this vital relationship Zalando hired an expert in this particular field, SHS VIVEON
Zalando GmbH, which is a customer-orientated company advised by SHS VIVEON a provider of holistic, customised and integrated solutions for customer management.
SHS VIVEON provides the online retailer with both conceptual and technological support in order to optimise the customer management process. The declared goal is to offer Zalando-customers more individual and exclusive services. Zalando therefore, tries to create an exclusive, customer-orientated shopping experience, which is executed throughout all customer contact points (e.g. registration of new customer, shipping, complaint management).
For Zalando it is vital to obtain a holistic view of their customers during all stages of the customer life cycle:
from acquisition to loyalty measures.
The company takes into account that communication requirements between the customer and the company, as they continually increase, develop and above all, change.
As a consequence, the relevant internal processes are becoming considerably more complex; in order to manage the quality of customer management and customer service
the CRM strategy relies on the underlying processes and IT systems; whilst continuing to bear in mind the importance of the service quality dimensions (consistency, access, liability, tangibles, empathy, and responsiveness).
The Web 2.0 and digital media have transformed marketing. It has gone from push to pull and monologue to dialogue .
Zalando can now target one individual and tailor the message to best suit their needs, whereas it used to be one-to-many, and one-to-some style in traditional media.
New media also enables many-to-many communications, where customers interact with each other via the company web site, or an independent community
can set up monitoring services to help managing how a brand is presented on third-party sites. This helps organisations respond rapidly to potential negative PR. Googlealert can be used in online reputation management.
Furthermore, people do not stick to Facebook only either. Consumer trend is shifting more towards a cross-platform behaviour including the likes of Twitter
Zalando builds relationships with its final consumers whom are the actual people who goes on the webpage and order products. The end consumer is the target for the CRM service teams. There are no intermediaries, as it is a direct sales channel. Zalando “only” needs to focus on the relationship between the company and the actual consumer.
For Zalando it is vital to obtain a holistic view of their customers during all stages of the customer life cycle:
from acquisition to loyalty measures.
The company takes into account that communication requirements between the customer and the company, as they continually increase, develop and above all, change.
As a consequence, the relevant internal processes are becoming considerably more complex; in order to manage the quality of customer management and customer service
the CRM strategy relies on the underlying processes and IT systems; whilst continuing to bear in mind the importance of the service quality dimensions (consistency, access, liability, tangibles, empathy, and responsiveness).