1、“How did Zara Capture the Chinese Market?”,Damak Donia 杜寧,Marketing Management,What is Marketing Management? Overview Zara Zaras Success: Its Business Model Marketing environment: China Marketing Environment Market Attractiveness Learning from Competitors: H&M and Esprit in China SWOT Analysis:Threa

2、ts and Opportunities Key Success Factors to enter the Market Strategic Recommendations Business, logistic and marketing strategy,What is Marketing Management?,Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, deliveri

3、ng, and communicating superior customer value.,From choosing target markets and building profitable relationships with them?,Questions to ask:,What customers will we serve? What is our target market? How can we best serve these customers? What is our value proposition?,Target Marketing,Value and Sat

4、isfaction,If performance is lower than expectations, satisfaction is low.,If performance is higher than expectations, satisfaction is high.,Business The worlds fastest growing fashion retailer of Spanish Brand Ranks among the three “global winners” with Gap and H&M Compelling mix of fashion, price a

5、nd quality First store in 1975. Today 536 stores within 30 countries worldwide 199 openings in 2009 Financials Sales: 4.5 Bn in 2008 International sales 60% of total turnover,Overview,Business Model,Supply Whereas most retailers designed 60% at start season, Zara designed 15% Dump unpopular product

6、line Deliver fashion “when the customer desires” Twice a week delivery schedule Demand No advertising or promotions 10,000 new items at highly competitive price,Around the world,The industry Environment,The Natural Environment Free access to natural resources for textile clothing,Demographic Structu

7、re 1.7 billion people 85.2% literacy rate Skilled labour available English speakers Exist,Social Structure around 8 national languages Country of two speeds: urban vs. rural New middle class with purchasing Cultural shift in urban areas,Technology Easy access Financial benefits,Chinese Economy GNP p

8、er capita $ 5890 GDP growth of 10.7% Industry/service economy,Government & Politics Deregulation of most sectors New textile policy Stable communist country,Marketing Environment: China case,Market attractiveness,Demand Industry Estimated GDP growth of 6-7% in fashion industry Undersupply for brande

9、d fashion products Target markets 30% potential customers for branded fashion products 60% estimated for 2010,Supply Design World class design schools Production High innovation potential for manufacturing procedures High productivity potential Cheap and skilled labour force High investment in techn

10、ology Distribution High investment in customer delight malls,Learning from Competitors: H&M and Esprit in China,SWOT analysis: Threats and Opportunities,Key Success Factors,Value Latest fashion with Chinese touch Best Prices Product quality Variety Cost/Speed Local sourcing of raw material Vertical

11、Integration of supply chain Fast time-to-customer Mass customization Low process costs,Strategic Recommendations to Capture the Chinese Market,Business Strategy,Goal Fast growth in China How Implement Zara business model Introduce European supply chain system with fine tuning to suit the Chinese mar

12、ket Customise the marketing mix,Logistics Strategy,Localise and implement just-in-time and quick response times to demand Modernising the supply chain with the use of information technology Forge strong relationships with value chain partners (suppliers and delivery co),Marketing Strategy,Product In

13、troduce the occidental range of clothes for men and women Introduce a small section of Chinese clothes designed by upcoming Chinese designers through mass customisation Introduce cotton clothes for the summer and woollen/synthetic one for the winter collections Price Use penetration pricing (20% lower than Esprit) Stay away from the promotion by sale paradigm of H&M,Promotion Promotion targeted at increasing awareness about Zara and the concept of Fashion at great value Use of print and television media Tie up with colleges to sponsor their festivals to increase awareness and