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1、“How did Zara Capture the Chinese Market?”,Damak Donia 杜宁,Marketing Management,What is Marketing Management?Overview ZaraZaras Success:Its Business Model Marketing environment:China Marketing EnvironmentMarket AttractivenessLearning from Competitors:H&M and Esprit in ChinaSWOT Analysis:Threats and O
2、pportunitiesKey Success Factors to enter the MarketStrategic Recommendations Business,logistic and marketing strategy,What is Marketing Management?,Marketing management is theart and science of choosing target markets and getting,keeping,and growing customers throughcreating,delivering,and communica
3、tingsuperior 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 Satisfaction,If performa
4、nce 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 and quality First store in
5、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,SupplyWhereas most retailers designed 60%at start season,Zara designed 15%Dump unpopular product line Deliver fashion“when the cus
6、tomer 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 Structure 1.7 billion people 85.2%literacy
7、 rate Skilled labour available English speakers Exist,Social Structure around 8 national languagesCountry of two speeds:urban vs.rural New middle class with purchasing Cultural shift in urban areas,Technology Easy access Financial benefits,Chinese Economy GNP per capita$5890 GDP growth of 10.7%Indus
8、try/service economy,Government&Politics Deregulation of most sectors New textile policy Stable communist country,Marketing Environment:China case,Market attractiveness,DemandIndustry Estimated GDP growth of 6-7%in fashion industry Undersupply for branded fashion productsTarget markets 30%potential c
9、ustomers for branded fashion products 60%estimated for 2010,Supply Design World class design schools Production High innovation potential for manufacturingprocedures High productivity potential Cheap and skilled labour force High investment in technologyDistribution High investment in customer delig
10、ht malls,Learning from Competitors:H&M and Esprit in China,SWOT analysis:Threats and Opportunities,Key Success Factors,ValueLatest fashion with Chinese touchBest PricesProduct qualityVarietyCost/SpeedLocal sourcing of raw materialVertical Integration of supply chainFast time-to-customerMass customiz
11、ationLow 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 market Customise the marketing mix,Logistics Strategy,Localise and
12、implement just-in-time and quick response times to demandModernising the supply chain with the use of information technologyForge strong relationships with value chain partners(suppliers and delivery co),Marketing Strategy,ProductIntroduce the occidental range of clothes for men and women Introduce
13、a small section of Chinese clothes designed by upcoming Chinese designers through mass customisationIntroduce cotton clothes for the summer and woollen/synthetic one for the winter collectionsPriceUse penetration pricing(20%lower than Esprit)Stay away from the promotion by sale paradigm of H&M,Promo
14、tionPromotion targeted at increasing awareness about Zara and the concept of Fashion at great valueUse of print and television mediaTie up with colleges to sponsor their festivals to increase awareness and catch them youngPlaceSet up factory in the Factories areaFind at least more then 5 stores in the big cities.Open Zara stores in the most shopping avenue and big malls.,Marketing Strategy,Thank You For Your Attention,
