India - Vienhang Yeungvienhangyeung.com/Coursework/International Business/Zara India.pdf ·...
Transcript of India - Vienhang Yeungvienhangyeung.com/Coursework/International Business/Zara India.pdf ·...
IndiaJaspreet TathgurJacqueline YoungVien YeungDevin Drinker-PearsonErnestina Quintero
Issue Identification
Ineffective Marketing Strategy
Homogenous fashion models
Varied amount of sales in brick and mortar locations.
65%=Delhi (2), Mumbai,
Bangalore.
Pune, Surat, Jaipur, Chandigarh
& Chennai
Rules and Regulation inhibiting business expansion in India.
Foreign Exchange Management Act,
1999
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Marketing Strategy Recommendation“ Dress like the West for Less ”
The Strategy will target people under the age of 50. Mainly focusing on locations of major College towns and emphasizing online sales. Target
We need to create a connection. Instead of promoting western people wearing our western clothing, we
must promote Indian people wearing our designs.
Billboards in College Areas. Advertisements in major Magazines like Savvy and Harper’s
Bazaar Most Importantly Online website
Results
The Indian people will be able to build a visual connection between a younger population and Zara clothing.
This will build brand and consumer loyalty that will increase sales and profit
Design
Method
SHOP ONLINE
Improve Online Presence
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Trends 40% prefer shopping online Western style adoption by younger audience Northern and Western regions account for the highest sales in designer apparel
Content Multi-Platform Improved aesthetics Category Filters Product Discovery In-store shipping
Results Access a larger
portion of the retail market
Cost-Effective Market Data
Partnership with Big Bazaar
• Strict Indian Regulations make it difficult for foreign brands to expand
• High cost associated with increasing brick and mortar presence
• This partnership is a cost-effective way to expose the Zara brand to the Indian target market
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Risks & Mitigations
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Limitations/Risk
• High cost of localization
• Consumer tastes & preferences
• Target market acceptance
• Potential increased administrative costs
• Partnership issues
• Profit-sharing with Big Bazaar
Solution
• Anticipated high ROIs that exceed investments
• Gauge market acceptance to change and continually adjust
• Retail still available; tech increase in future generations
• Online sales exceed; reduce operational costs in B&M
• Negotiate favorable contract from onset
• Increase revenues through volume increase
Recommendation Timeline
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Marketing Localization• Successful local marketing strategy
employedOnline Sales Presence• Strong online retailing presence
augmenting B&M sales and revenuesLocal Partnership • Mutually beneficial partnership with Big
Bazaar increasing Zara revenues and profits
Marketing Localization• Begin discussing cost and switching strategiesOnline Sales Presence• Strengthen online platformLocal Partnership • Reach out to Big Bazaar and pitch partnership
idea
Marketing Localization• Start switching to localization marketingOnline Sales Presence• Launch online sales platform Local Partnership • Begin negotiations with Big Bazaar for
partnership
Marketing Localization• Invest in localization marketing strategyOnline Sales Presence• Evaluate and adjust online sales platform
based on consumer reactionsLocal Partnership • Finalize partnership negotiations
DESIRED END RESULT
Appendix
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Appendix: Issue Identification
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
• Rules and Regulation inhibiting business expansion in India.
– The Companies Act of 1956
– Foreign Exchange Management Act, 1999
Appendix: SWOT Analysis
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A
Strengths Weakness
ThreatsOpportunities
• Extremely fast product cycle• Brand new designs in-store in 4-5 weeks• Produce 11,000 unique items/year; competitors =
2,000-4,000 items• Vertical integration
• Careful analysis of consumer acceptance with new products
• High turnaround speed• Clothes remain in warehouses for only a few hours
• Low advertising expense• Only 0.3% of revenue spent on media advertising;
competitors = 3-4%
• Lack of appropriate advertising strategies• Lack of strong global brand awareness and
presence • Potentially limiting target market segment
• International growth and expansion• Expanding target market and
consumer base• Increasing investment in advertising• Growing online sales capacities• Partnerships with global department
stores
• Competition (H&M, GAP, etc.)• Insufficient consumer loyalty• Rules and regulations governing
international business and expansion
Appendix: Competitors
Strengths
Lower Prices
Marketing, Designer Collaborations
Retail Locations
Weaknesses
Few stores (2)
No e-commerce
No partner
Strengths
Brand, Star Power
Partner
Variety (Lifestyle)
Weaknesses
Few stores (2)
No e-commerce
Monochromatic style
Appendix: Zara Locations
Issue Identification | Recommendation | Risks & Mitigations | Timeline | Appendix | Q&A