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“How did Zara Capture the Chinese Market?” Damak Donia 杜宁 Marketing Management What is Marketing Management? Overview Zara Zara’s Success: Its Business Model Marketing environment: China Marketing Environment Market Attractiveness Learning from Competitors: HM and Esprit in China SWOT Analysis:Threats 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, delivering, 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 Market Segmentation: Divide the market into segments of customers Value and Satisfaction Expectation Performance 10 8 Expectation Performance 8 10 If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high. Business The world’s fastest growing fashion retailer of Spanish Brand Ranks among the three “global winners” with Gap and HM ? Compelling mix of fashion, price and 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 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 South America: 30 stores Africa: 41 stores Asia - Oceania: 7 stores Europe: 407 stores North America: 47 stores Around the world
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