“HowdidZaraCapturetheChineseMarket?”DamakDonia杜宁MarketingManagement•WhatisMarketingManagement?•OverviewZara–Zara’sSuccess:ItsBusinessModel•Marketingenvironment:–ChinaMarketingEnvironment–MarketAttractiveness–LearningfromCompetitors:H&MandEspritinChina–SWOTAnalysis:ThreatsandOpportunities–KeySuccessFactorstoentertheMarket•StrategicRecommendations−Business,logisticandmarketingstrategyWhatisMarketingManagement?Marketingmanagementistheartandscienceofchoosingtargetmarketsandgetting,keeping,andgrowingcustomersthroughcreating,delivering,andcommunicatingsuperiorcustomervalue.Fromchoosingtargetmarketsandbuildingprofitablerelationshipswiththem?????Questionstoask:1.Whatcustomerswillweserve?Whatisourtargetmarket?2.Howcanwebestservethesecustomers?Whatisourvalueproposition?TargetMarketingMarketSegmentation:DividethemarketintosegmentsofcustomersValueandSatisfactionExpectationPerformance108ExpectationPerformance810Ifperformanceislowerthanexpectations,satisfactionislow.Ifperformanceishigherthanexpectations,satisfactionishigh.•Business•Theworld’sfastestgrowingfashionretailerofSpanishBrand•Ranksamongthethree“globalwinners”withGapandH&MCompellingmixoffashion,priceandquality•Firststorein1975.Today536storeswithin30countriesworldwide199openingsin2009•Financials•Sales:€4.5Bnin2008•Internationalsales60%oftotalturnoverOverviewOverviewBusinessModelSupply•Whereasmostretailersdesigned60%atstartseason,Zaradesigned15%Dumpunpopularproductline•Deliverfashion“whenthecustomerdesires”•TwiceaweekdeliveryscheduleDemand•Noadvertisingorpromotions•10,000newitemsathighlycompetitivepriceSouthAmerica:30storesAfrica:41storesAsia-Oceania:7storesEurope:407storesNorthAmerica:47storesAroundtheworldTheindustryEnvironmentTheNaturalEnvironment–FreeaccesstonaturalresourcesfortextileclothingDemographicStructure–1.7billionpeople–85.2%literacyrate–Skilledlabouravailable–EnglishspeakersExistSocialStructure–around8nationallanguages–Countryoftwospeeds:urbanvs.rural–‘New’middleclasswithpurchasing–CulturalshiftinurbanareasTechnology–Easyaccess–FinancialbenefitsChineseEconomy–GNPpercapita$5890–GDPgrowthof10.7%–Industry/serviceeconomyGovernment&Politics–Deregulationofmostsectors–Newtextilepolicy–StablecommunistcountryMarketingEnvironment:ChinacaseMarketattractivenessDemandIndustry•EstimatedGDPgrowthof6-7%infashionindustry•UndersupplyforbrandedfashionproductsTargetmarkets•30%potentialcustomersforbrandedfashionproducts•60%estimatedfor2010SupplyDesign•WorldclassdesignschoolsProduction•Highinnovationpotentialformanufacturingprocedures•Highproductivitypotential•Cheapandskilledlabourforce•HighinvestmentintechnologyDistribution•Highinvestmentincustomerdelight’mallsLearningfromCompetitors:H&MandEspritinChina•Clothing,fragrances,sunglassesandhometextile•Introducedwatchesandaccessory(departurefromitsglobaltradition)•luxurybrand•HighPrices•Shoppingmallandshoppingaria•Advertisementinthestreetsandinthemetrostations•WanttobeknownasaproviderofqualityProductEsprit•casual,formalandpartywear•threecollectionsperyear•Brandextensions:bags,caps,sunglasses,walletsandfragrances•Premiumprice•Strongcontrolonpromotions•Internationaloptionathighquality/priceratio•internationalformatinmajorcities(largeshoppingmalls)•Focusonmetrosandmoderncities•Strongsupportonprintedmedia(ada...