Zara Marketing Plan
Executive summary
General introduction (including a concise consumers and category market/ trend overview)
Entry mode
-The suitable mode of entry for Zara to enter the clothing industry in Vietnam is franchising.
-As Vietnam’s joint venture regulations are strict; the Vietnamese investors must own at least 51% of the enterprise’s capital. This will create some difficulties to Zara in term of controlling the business.
-Therefore, franchising is more suitable because the mode of entry is suitable for entering a small country and subject to significant cultural differences from Zara’s home base (Spain) as Vietnam. -In term of financial, franchising creates another source of income for Zara, through payment of franchise fees, royalty and levies in addition to the possibility of sourcing private label products to franchisees.
-In term of strategic, franchising can be Zara’s mean of spreading risk by multiplying the number of locations through the franchisees’ investment.
SWOT analysis
Market segmentation and targeting
- Segmenting and Targeting the market*
-Zara’s target customers are paying attention in high trends and want to have the latest fashion trends. -Geography, demographic, psychographic, benefits, and usage rate are the main bases for segmenting consumer markets. -Demographic segmentation plays a big role for Zara. -It includes gender, age, ethical norms, and family life cycle. -Zara's target market is mostly women and fewer men. Zara designs more clothing for women. -It is focused on people of different age, including generation X and Y. Those who earn enough money and are able to buy clothes from Zara shops.
- Positioning the company*
-INDITEX currently runs 5154 stores segmented into eight branded chains: its flagship brand Zara5, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.
-Zara has positioned its brand to deliver the latest fashion, well made, at a price that makes it attainable by millions of
General introduction (including a concise consumers and category market/ trend overview)
Entry mode
-The suitable mode of entry for Zara to enter the clothing industry in Vietnam is franchising.
-As Vietnam’s joint venture regulations are strict; the Vietnamese investors must own at least 51% of the enterprise’s capital. This will create some difficulties to Zara in term of controlling the business.
-Therefore, franchising is more suitable because the mode of entry is suitable for entering a small country and subject to significant cultural differences from Zara’s home base (Spain) as Vietnam. -In term of financial, franchising creates another source of income for Zara, through payment of franchise fees, royalty and levies in addition to the possibility of sourcing private label products to franchisees.
-In term of strategic, franchising can be Zara’s mean of spreading risk by multiplying the number of locations through the franchisees’ investment.
SWOT analysis
Market segmentation and targeting
- Segmenting and Targeting the market*
-Zara’s target customers are paying attention in high trends and want to have the latest fashion trends. -Geography, demographic, psychographic, benefits, and usage rate are the main bases for segmenting consumer markets. -Demographic segmentation plays a big role for Zara. -It includes gender, age, ethical norms, and family life cycle. -Zara's target market is mostly women and fewer men. Zara designs more clothing for women. -It is focused on people of different age, including generation X and Y. Those who earn enough money and are able to buy clothes from Zara shops.
- Positioning the company*
-INDITEX currently runs 5154 stores segmented into eight branded chains: its flagship brand Zara5, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.
-Zara has positioned its brand to deliver the latest fashion, well made, at a price that makes it attainable by millions of