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HowdidZaraCapturetheChineseMarket DamakDonia杜宁 MarketingManagement WhatisMarketingManagement OverviewZaraZara sSuccess ItsBusinessModelMarketingenvironment ChinaMarketingEnvironmentMarketAttractivenessLearningfromCompetitors H MandEspritinChinaSWOTAnalysis ThreatsandOpportunitiesKeySuccessFactorstoentertheMarketStrategicRecommendationsBusiness logisticandmarketingstrategy WhatisMarketingManagement Marketingmanagementistheartandscienceofchoosingtargetmarketsandgetting keeping andgrowingcustomersthroughcreating delivering andcommunicatingsuperiorcustomervalue Fromchoosingtargetmarketsandbuildingprofitablerelationshipswiththem Questionstoask Whatcustomerswillweserve Whatisourtargetmarket Howcanwebestservethesecustomers Whatisourvalueproposition TargetMarketing ValueandSatisfaction Ifperformanceislowerthanexpectations satisfactionislow Ifperformanceishigherthanexpectations satisfactionishigh BusinessTheworld sfastestgrowingfashionretailerofSpanishBrandRanksamongthethree globalwinners withGapandH M Compellingmixoffashion priceandqualityFirststorein1975 Today536storeswithin30countriesworldwide 199openingsin2009FinancialsSales 4 5Bnin2008Internationalsales60 oftotalturnover Overview BusinessModel SupplyWhereasmostretailersdesigned60 atstartseason Zaradesigned15 DumpunpopularproductlineDeliverfashion whenthecustomerdesires TwiceaweekdeliveryscheduleDemandNoadvertisingorpromotions10 000newitemsathighlycompetitiveprice Aroundtheworld TheindustryEnvironment TheNaturalEnvironmentFreeaccesstonaturalresourcesfortextileclothing DemographicStructure1 7billionpeople85 2 literacyrateSkilledlabouravailableEnglishspeakersExist SocialStructurearound8nationallanguagesCountryoftwospeeds urbanvs rural New middleclasswithpurchasingCulturalshiftinurbanareas TechnologyEasyaccessFinancialbenefits ChineseEconomyGNPpercapita 5890GDPgrowthof10 7 Industry serviceeconomy Government PoliticsDeregulationofmostsectorsNewtextilepolicyStablecommunistcountry MarketingEnvironment Chinacase Marketattractiveness DemandIndustryEstimatedGDPgrowthof6 7 infashionindustryUndersupplyforbrandedfashionproductsTargetmarkets30 potentialcustomersforbrandedfashionproducts60 estimatedfor2010 SupplyDesignWorldclassdesignschoolsProductionHighinnovationpotentialformanufacturingproceduresHighproductivitypotentialCheapandskilledlabourforceHighinvestmentintechnologyDistributionHighinvestmentincustomerdelight malls LearningfromCompetitors H MandEspritinChina SWOTanalysis ThreatsandOpportunities KeySuccessFactors ValueLatestfashionwithChinesetouchBestPricesProductqualityVarietyCost SpeedLocalsourcingofrawmaterialVerticalIntegrationofsupplychainFasttime to customerMasscustomizationLowprocesscosts StrategicRecommendationstoCapturetheChineseMarket BusinessStrategy GoalFastgrowthinChinaHowImplementZarabusinessmodelIntroduceEuropeansupplychainsystemwithfinetuningtosuittheChinesemarketCustomisethemarketingmix LogisticsStrategy Localiseandimplementjust in timeand quickresponsetimes todemandModernisingthesupplychainwiththeuseofinformationtechnologyForgestrongrelationshipswith valuechainpartners suppliersanddeliveryco MarketingStrategy ProductIntroducetheoccidentalrangeofclothesformenandwomenIntroduceasmallsectionofChineseclothesdesignedby upcomingChinesedesigners throughmasscustomisationIntroducecottonclothesforthesummerandwoollen syntheticoneforthewintercollectionsPriceUsepenetrationpricing 20 lowerthanEsprit Stayawayfromthepromotionby sale paradigmofH M PromotionPromotiontargetedatincreasingawarenessaboutZaraandtheconceptof Fashionatgreatvalue UseofprintandtelevisionmediaTieupwithcollegestosponsortheirfestivalstoincreaseawarenessand catchthemyoung PlaceSetupfactory
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