Linnpartabusinessproposal 2018 Final
Linnpartabusinessproposal 2018 Final
Linnpartabusinessproposal 2018 Final
2
FBM 15303 | Brand Proposal and Personal Promotion
Part A - Business Proposal Report
2017-2018
Ravensbourne
Linn van Leeuwen
EXECUTIVE SUMMARY Pg 5
PROPOSAL INTRODUCTION Pg 8
People Pg 18
Product Pg 24
Price Pg 50
Position Pg 54
Place Pg 62
Promotion Pg 68
Persuasion Pg 94
BUSINESS PLANNING Pg 98
SUMMARY Pg 104
3
ZAR
4
ARA PETITE
Executive Summary
Today our society has been more focused than ever on bringing together and embracing diversity. In the
past plus-size has been in the center of attention and because of this we have started to normalise this
new paradigm. Currently, we are slowly seeing change within the fashion industry on embracing this new
ideal and taking the steps to catering towards this large yet marginalised market. However, even though
it is great that we are focusing on this issue at hand. We have neglected an other issue that needs the
spotlight just as much. The petite market is often left out, and we feel that we are more of an after thought.
From a survey conducted in October 2017 with a total of 62 respondents, who are all 5’3” and under. Only
58.1% sometimes buy petite clothing with comments stating that petite sizing varies, is confusing and/or is
considered too large while some say there barely is any difference in comparison to the regular sizes. There
have also been several complaints claiming that petite clothing do not cater towards women who are more
on the plus-size end of the spectrum. We must also remember that plus-size woman can be short too. In
addition, only 50% of respondents felt that there’s a insufficent range of styles available in petite and 22.6%
answered ‘sometimes’. Moreover 67.7% all agreed that petite clothing could be more fashion forward.
Therefore, we feel that it is also important to cater to shorter women in clothes with a sufficient range of
styles so that they can also feel empowered and fashionable in their everyday life. We are an internationally
known established brand leading the world of attractive and affordable fashion with over 2,000 stores
across 96 markets. We greatly value our customers and your feedback. With our unique business model,
extensive infrastructure and retail networks... we can promise you that we are fully qualified and dedicated
to provide customers 5’3” and under better fitting fashion that they cannot get before.
5
6
ZARA PETITE
The Proposal
7
Proposal Introduction
Our current problem is that the petite market feels left out and that they are being treated as an
afterthought. Considering that the fashion industry is taking significant steps towards other gaps such
as gender neutral fashion and the plus-size market, why is there little being said about petites?
In the fashion industry, many brands categorise petite women who are 5’3” (160cm) and under. Our
primary research conducted in October 2017 justifies that there is a gap in the market. With a total of
62 respondents (Women 5’3” [160cm] and under) have expressed dissatisfaction with petite clothing.
Several factors being within fit and size to lack of sufficient range and styles offered. This small group
of participants is an indication of the petite market as a whole.
Looking at the bigger picture, research claims that the average height for women around the world
is considered 5’3” (AverageHeight.Co, 2016). If we look specifically into countries separately, the
average female height in the United States of America is 5’4” and the United Kingdom 5’4.4”. Brazil and
Chile’s female average height is 5’2” and South Korea too. The majority of lowest average heights are
located in the South American and South East Asian region, lowest being 4’8” (Chloe PH.D/M.D., 2017).
Lastly, according to a study from Imperial College in London - the average human is getting shorter.
In summary, main factors that influence human height are nourishment in early infancy in correlation
with environmental factors such as nourishment and wealth of a country. The USA for instance are
falling behind in emphasizing decent nutrional standards for youths and increasing cheap, processed
fast food. As well as the competitive nature of today’s society and lack of affordability in insurance and
medical care (Samuels, 2016). All in all... how come petite is considered 5’3 whilst the average woman
is 5’3? Why is it also that many of our average consumers find themselves shopping in the petite
sections? Perhaps the reason as to why many brands are brushing off petite ranges is because of their
lack of dedication towards it, which is reflected in their poor sales.
The new petite line for Zara will encorporate trend-led pieces and unique designs that are frequently
updated with improved sizing that will properly fit women 5’3” and under. For women are petite in frame
and for women who are on the curvier end of the spectrum.
In this report you will find out how we will fill in the gap in the market and the execution of this new
business proposal through exploring the seven P’s of the marketing mix: People, Product, Price, Position,
Place, Promotion and Persuasion. In addition, the report consists of a business plan on how this brand
expansion is commercially viable and how it’ll successfully meet consumer demands, as well as its
short-term complications that we might expect.
8
ZARA PETITE
9
OUR MISSION
10
PETITE
11
THE RESEARCH
My Primary research prove that there’s a gap in the market. My questionnaire, that was conducted
in fall 2017 with 62 respondents (Women 5’3” and under) that expressed dissatisfaction with
petite clothing. Varying from issues within fit and size to lack of sufficient range and styles offered.
Many respondents also felt that the petite ranges offered were only catered towards consumers
who are petite in frame but not to those who are short and curvy as well. Respondents also
expressed frustration regarding clothes offered are too long for petite women and more suitable
for consumers above the stated height. Furthermore, the results from primary research also
implied that there’s high demand for petite clothing. However, many respondents were not able
to give enough feedback because of the lack (to none) petite ranges available which resulted in
insufficient quantitative data. However, every respondent claims that they wish there were more
petite clothing available in the market.
In order to establish whether there is demand for a gap in the market. A online survey was conducted specifically for
women 5’3 (160cm) and under that was sent out on 10 October, 2017. As of January 2018, the survey has received a
total of 62 responses.
53.2%
of the respondents
24.2%
of the respondents
17.7%
of the respondents
are age 20-24 are age 16-19 are age 25-34
28
Not at all
Sometimes
29.0%
of the respondents
are below 155cm
58.1% 12.9%
All the time
34
of the respondents
This pie chart here portrays consumer awareness about petite clothing but
also gives an indication of how the petite sector is performing. Only 12.9%
shop at petite sections, this either indicates that there are still existing
are above 155cm issues within the sector and/or perhaps that there might not be enough
awareness nor availability for customers. However, 58.1% said ‘Sometimes’
which indicates poor sales on petite clothing.
12
More than 50% 67.7% shop both
are a student online and in-store
Zara’s current demographic are women aged Zara’s current demographic are women aged
16 to 40. However, a majority of their customer 16 to 40. However, a majority of their customer
base are on the younger end of the spectrum base are on the younger end of the spectrum
with a lower to mid-range income. Because with a lower to mid-range income. Because
Zara is very customer oriented, they focus Zara is very customer oriented, they focus
largely on quality, affordable and fashionable largely on quality, affordable and fashionable
products for consumers who appreciate style. products for consumers who appreciate style.
0 10 20 30 40 50
*Others have said: Issues with bra’s (1.6%), fits at waist but not the thighs (1.6%), sits lower at waist than it is supposed to (1.6%), waist and hips on
dresses are too low (1.6%).
13
“(Petite sizing is) pretty bad, but considering
5"4 is average height and petite starts at 5"3,
it’s essentially catering to half of all women
and not specifically shorter women at all.
This means anything more structured or
with cut-aways, is usually out because the
torso is too long and everything just falls
in the wrong place. It also tends to have a
more child like shape so finding clothes to
fit over a d cup can be pretty hard. Often
anything that fits nicely over my chest is
way too big for my waist and vice versa.”
- Survey Respondent
“I’ve only seen petite sections in two store chains and the space is used well. In both it
covers one third to one half of their store space and the selection is comparable to their non-
petite sections, which is great. Unfortunately in both stores, their sizes are too large for me;
their size 0 in tops is like a size 4 or 6 at most other stores I shop at, and since I’m normally
a size 0 or 2, I’m too petite for their petite section.”
“(In response to What brands do you think could improve on their sizing? And why?): all
the fast fashion big brants like H&M, Zara, etc because those are affordable brands that
everyone else can purchase but we’re unable to.”
“It wouldn’t matter much to me. I might check it out for work pants, but I wouldn’t have high
expectations to be honest. I used to be obese and plus-sized stores never had nice clothes.
Petite stores would have bland clothes too. I’ve seen stores for tall people; all of these special
sizing stores are so niche that they just don’t have the money to put into getting really good
designers and offering a great selection of fashion-forward items. Also, brand names matter
to me, so unless this store was an offshoot of a popular brand or one that I already liked, my
interest just wouldn’t be high.”
“Yes. Not just about the issue how a lot of clothing don’t always fit properly; but even where
there is some petite clothing, the style is very limited and catered more to the mainstream
and often feels more like for old ladies than modern younger women who are into various
fashion styles, subcultures, etc.... People forget that not only are there petite people out
there (we aren’t even that rare depending on the where you live); but we all have different
styles as well. Plus there needs to be clothing for all occasions-casual, interviews, work,
evenings out in town, etc....”
14
On 22 November, 2017 a 56 minute longfocus group was conducted with four particpants who are below 5’3.
The participants:
All agreed that leg length is the main issue All agreed that Topshop petite do petite Mixed thoughts about shopping in-store
regarding clothing sizing the best, however not all styles versus online. Though many would
available are appealing nor inclusive to the prefer to try on the clothes than ordering
regular Topshop range. Whereas as all found online. Some prefer online to avoid feeling
Missguided the worst brand for petites embarrassed or disappointment of effort
going to the stores
All agreed on inclusivity in terms of All wished Zara could do a petite None of whom knew of any influencers
merchandising, they want to be able to line as they find their clothing and bloggers who are petite or represent
shop with their friends instead of having to appealing but has the most petite clothing besides celebrities - who
go to the “petite section” on their own and issues regarding sizing get their clothes specifically made for them
meet up later
Holly: “Yeah, I would agree and I think, sometimes with petite extra small sizing
for example, it can just mean that they are like really tight and they haven’t
adjusted the arms or the length or the shoulders to fit the actual garment.
Because they imagine everyone to be super thin if they are petite but they
don’t imagine people to be shorter its kind of like they are ignoring us. ”
Jel: “Or maybe somebody famous who is also has the same build, because like
forme I always reference to somebody who I know is a bit the same build as me
orsame height. So when I see that person wearing this outfit, its like “oh maybe
that brand is good for me” then I would find something from that brand. ”
Lauren: “I don’t know any. It’s funny because there are a lot of plus size models
online.So I think it would be great if more people - if there were more petite. ”
Jel: “I want Zara to have petite as well - a petite line. Their clothes are so so so
nicebut like every time I’m just disappointed that I never got anything from it.
Holly: “Zara is like one brand where I go and think, wow everything is too long.”
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ZARA PETITE
The Marketing Mix
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1_PEOPLE
ZARA PETITE TARGET MARKET
No - I don’t pay
attention to
fashion
14
Sometimes
No - I love
.0%
fashion 24.6%
but I set
my own
trends
43.9%
17.5%
Yes - I love
fashion
20
Girl Boss
• EMPOWERED
• FEMININE AND
MASCULINE STYLE
• WORKING GIRL
• ALEXA CHUNG,
VICTORIA (IN THE FROW)
• FLAT/TOWNHOUSE
• TECH SAVVY
• BASED IN BIG & POPULATED
CITIES
- Survey Respondent
work-wear needs,
though LOFT can run quite
large and petite sections in
store can be very limited.”
- Survey Respondent
21
•
•
EUROPEAN INFLUENCE
STRONG PASSION FOR FASHION
The Fashionista
• FEMININE
• SWANTJE SOEMMER, RUTA (RUTA EN ROUTE),
NICOLE BALLARDINI (NICKEYINSIDEOUT)
• BLOGGER LIFESTYLE / INSTAGRAM AESTHETIC
22
ZARA CONSUMER
Psychographic Profile
PETITE
INNOVATORS 2.5%
Due to Zara’s establishment, they’re able to quickly react to consumer demands and trends
internationally. Often taking inspiration from the catwalk and imitate ideas (with a twist) at a affordable
price. Therefore, Zara would be placed near Early Adopters and Early Majority. Early adopters are more
integrated into society than innovators, and they also have the largest voice in regards to opinion.
Which is why Zara’s largest consumer base sits within this category.
Buying Preferences
• Limited one of a kind, and unique pieces
• Bought at full price to avoid sellout of stock because of limited sale and promotions
• Frequent visits to store to see what’s new - frequently updated products
• Attention to price and value of the product
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2_PRODUCt
25
26
PETITE
27
Made to fit
women of all
body types with
stylish silhouettes
that are
empowering and
feminine
28
PETITE
29
30
PETITE
31
32
33
34
PETITE
35
36
37
38
39
40
41
42
43
44
45
BOSTON MATRIX
Refined Opulence S/S 2019
46
BOSTON MATRIX
Concrete Jungle S/S 2019
N/A
47
ZARA PETITE
SIZE GUIDE
BOTTOMS
US Size 25 26 27 28 29 30 44
European Size 32 34 36 38 40 42 44
Waistband Depth 4 4 4 4 4 4 4
Inside Leg 54 54 54 56 56 58 58
Knee Width 19 20 21 22 23 24 25
Leg Opening 15 16 17 18 19 20 21
Front Rise 27 28 29 30 31 32 33
Back Rise 31 32 33 34 35 36 37
CF Skirt Length
30 31 32 33 35.5 38.5 42.5
Short
CF Skirt Length
60 61 62 63 65.5 68.5 72.5
Midi
CF Skirt Length
83 84 85 86 88.5 91.5 72.5
Long
48
The petite size guide is similiar to the current size that Zara has. Our
bottoms will be sized the same way from UK 4 to 16, and instead will
have ‘S’ next to it that stands for ‘Short’ so that consumers know
that this is a petite garment. As bottoms are the largest issue that
consumers have, the sizing changes are predominantly made within
the bottoms grade. The data is taken from a standard petite UK size 4
with adjustments made accordingly in inside leg length and skirt length.
From the standard UK 4 petite trouser, the inside leg length is 73.5 cm.
We have made the inside leg length for a UK 4, 54 cm. The standard
inside leg length (Based off the brand Seasalt’s size chart) is 79 cm.
What brands may have done to size their petite clothing is by comparing
heights. Average height is considered around 5’7” (170.18 cm) and
petite is marked at 5’3” (160 cm). Therefore, they must have subtracted
the two heights in order to get the difference. Which is 7 cm. This is
then subtracted by the general inside leg length (79 - 7 = 72 cm).
According to Seasalt’s size chart, they’ve kept the inside leg length 79
cm across all sizes. In this case, we have altered the length as it goes
up larger sizes. The leg length will take in consideration the woman’s
curves as well so that trouser length won’t feel too short.
49
50
3_PRICE
ZARA S/S 2019
PETITE PRICING
The petite extension for Zara will not be changed. The price
points will be maintained at its current price point. This
includes psychological odd pricing throughout its markets
(Spain, UK and USA). Examples are shown on page 51.
This is to keep consistency of the Zara brand. In terms of
the price brand matrix, Zara’s price points will be the same
as its current. With garments priced up to £200.00, it varies
from basic staples to studio/boutique style items for Zara
customers who have a more higher income and are more
fashion forward.
51
PRICE BRAND MATRIX
£4.00 *£219.60
£2.00 £80.90
£9.00 £110.00
£3.00 £84.46
£6.50 £134.07
£3.00 £150.00
£3.00 £104.02
£3.99 £66.92
£4.00 £53.94
£7.00 £136.41
£6.00 *£285.00
£9.50 £160.00
£13.00 £115.00
£30.00 *£450.00
£41.00 *£249.00
£74.00 *£371.00
£9.00 *£200.00
£0 £20 £40 £60 £80 £100 £120 £140 £160 £180 £460
52
PETITE £9.00 *£200.00
53
4_POSITION The key competitors that
provide petite are within the
circle. As seen in the graph,
Zara’s position would be on
the more fashion-end of the
spectrum. They are more
fashion forward than other
brands such as ASOS and
Topshop because they react
more quickly towards trends
and new Designs from the
runway.
54
PRICE/STYLE MATRIX
HIGH PRICE
CLASSIC
FASHION
LOW PRICE
55
COMPETITOR
COMPARATIVE CHART
Z A R A P E T I T E
Retailer Zara - Petite Brand Extension
both classic and edgy pieces and balanced mix of workwear, casual
and occasions
HIGH FASHION/
FASHION-FOWARD
(?)
TREND-LED
(STAR PIECES)
FASHION PY
BASICS/CORE PIECES
(CASH COWS)
HIGH FASHION/
FASHION-FOWARD
(?)
BASICS/CORE PIECES
(CASH COWS)
N PYRAMID
TREND-LED
(STAR PIECES)
*Image from
Topshop’s Website - Petite Section
57
A S O S P E T I T E
Retailer ASOS - Petite Own Brand
Some jeans include a leg inseam choice of 26” and/or 28” - not consistent
TREND-LED
(STAR PIECES)
BASICS/CORE PIECES
(CASH COWS)
FASHION-FOWARD/RISKY
STATEMENT PIECES
(?) *Image from
ASOS’s Website
- Petite Section
58
PRODUCT
COMPARISON ANALYSIS
Topshop Petite ASOS Petite
59
ZARA PETITE
COMPARISON ANALYSIS
Woman Collection TRF
Balanced with
workwear, casual and
for special occasions
Appealing to a wide
audience than a niche
group
Revamped classic
pieces
60
Analysis & Summary:
• Topshop & ASOS Petite focus largely more on the younger generation with youthful and simple
silhouettes
• A lot of products stocked are basics and staple pieces that petite women could even buy in a regular size
without sizing issues as the main issue that petite women have is within length (bottoms) ratherthan
the torso aspect
• Topshop & ASOS Petite stock more festival inspired items
• However, all three brands target consumers with lower to mid-range income consumers though
Topshop more towards students and young adults in their 20s
• ASOS Petite itself is more on the cheaper end of quality with affordable pricing. Though ASOS also
stock other brands who do petite (E.g. New Look, Glamorous, River Island, etc) which gives them more
of a competitive advantage
Brand identity prism for Petite Zara (with additions made in blue):
Confidence, stylish,
unique, trendy, youthful
Contemporary
European, international,
diversity, style is part of
Connection, friendship life and bringing
Inclusion, reliability confidence
We’ve updated our brand identity prism which includes Zara Petite. The new prism conveys our position and the kind of
brand we are, which is reflected in our products.
61
62
5_PLACE
KEY LOCATIONS
UNITED STATES
& CANADA EUROPE KOREA
CHINA & JAPAN
AUSTRALIA &
NEW ZEALAND
ZARA PETITE
64
ONLINE
Worldwide Shipping & International
E
65
FLAGSHIPS
New York, London, Madrid, Rome, Paris, Milan, St. Petersburg, Tokyo & Seoul
Total 9 Stores
66
ALL STORES
UK, Europe, Americas, Asia, Australia & New Zealand
Total 1,401 Stores
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68
6_PROMOTION
BRANDING
INSPIRATION
69
ZARA CURRENT WEBSITE
70
71
ZARA WEBSITE
WITH PETITE PROMOTION
72
The Zara website is carefully curated and well taken care off. Ensuring
that every product is updated and visually appealing as much as possible.
We want to do the same for petite. Compared to our competitors
(ASOS, Topshop, Boohoo, etc) rarely to never have advertised or made
any editorial content featuring their petite products and petite models
as much as the regular collections. For us, we would like to bring
equality and ensure that all our markets (Woman, TRF, Man and Kids)
are evenly shared with the spotlight. The more visual content we put
on social media and our website, the more it will attract our consumers
and help give them a better idea of what our product looks like.
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ZARA WEBSITE - NEW IN
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ZARA
PETITE WOMAN
SPRING SUMMER 2019 | WOMENSWEAR 5’3” & UNDER
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ZARA PETITE HERE TO STAY
Introducing Zara Petite, weekly fashion trends for women 5’3” and under. Update your
wardrobe with the latest clothes that are unique and cutting-edge so you can stay in style and
feel empowered. Subscribe to our newsletter and be the first to discover new fashion trends.
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ZARA CAMPAIGN &
CAMPAIGN FILM
On Location Photoshoot:
Location:
Barbican, London UK
Photographer:
Gea Wongsida
78
Zara Website Photoshoot:
Location:
Ravensbourne Studio
Photographer:
Gea Wongsida
Hair Stylist:
Olli Hull
Makeup Artist:
Jessie Baker
79
Film Screen Stills:
80
Zara Petite TRF Film Campaign S/S 2019
Location:
Barbican, London UK
Videographer:
Dion Schuddeboom
81
ZARA PETITE
ON SOCIAL MEDIA
82
ZARA
PETITE
THIS SPRING
SUMMER 2019
COMING SOON
S U B T L E / M I N I M A L / S O P H I S T I CAT E D / AU T H E N T I C
83
New Petite Line Launching this Spring,
March 21 | #ZaraPetite
84
#ZaraPetite
COMING SOON
SPRING SUMMER 2019
WOMENSWEAR 5’3” & UNDER
85
We had recently released an app available to download for consumers
to use in our stores worldwide. Our aim is also to continuously improve
how we use technology and how we can integrate that to fill gaps in
the market. We have taken the first steps to adapt to millenials needs
and lifestyle, and therefore we will do the same with the petite market.
86
AUGMENTED
REALITY
87
ZARA PETITE
BRANDING
88
ZARA PETITE_
WOMEN_
OUTERWEAR_
ZARA PETITE
TRAFALUC
S/S2019
PETITE
WOMAN
BASIC
COLLECTION
89
ZARA PETITE, A UNIQUE
FASHION RANGE THAT
CONTINUES TO INNOVATE
AND PUT CUSTOMERS
AT THE HEART OF ZARA’S
UNIQUE BUSINESS MODEL.
THE COLLECTIONS CATER
TO CUSTOMERS 5’3” AND
UNDER AND FOCUS ON
TREND-LED DESIGNS,
QUALITY MATERIALS
AND AFFORDABLE PRICE
POINTS.
PREMIUM COLLECTION
BY ZARA PETITE
90
PETITE
Petite hangers can also share the same rack with the regular
clothing sizes to save shelf space. This is to integrate petites
with regular sizing to create inclusivity and allow petite wom-
en to shop with their friends who aren’t petite. Participants
from the focus group all agreed that they wanted a shop-
ping experience that would not make them feel secluded and
embarrassed. Sharing the same rack with different labels on
both swing tags and the hanger to differentiate regular from
petite is a solution that will save us loss of sales and space,
as well as encourage more foot traffic.
91
Like Apple, we invest a large amount into stores and the
geographical locations of where our stores will be. It is essential
that all stores are located in busy and iconic places that will
encourage word of mouth and foot traffic. This is our main
source of marketing and promotion. Instead of investing more
into promotional materials and adverts, our stores are our
permanent and long-term promotion.
92
93
94
7_PERSUASION
WHAT IS
THE BRAND
STORY?
PETITE
95
ANSOFF MATRIX
EXISTING PRODUCTS NEW PRODUCTS
• Continue utilising anonymous models rather • Improve sizing and size guides/sizing tools for
than marketing with celebrities as it will focus consumers
EXISTING MARKETS
more on style and individualism than • Introduce a petite range for the more shorter
endorsements consumer who cannot fit in Zara’s clothing due
• Ensure architecture of stores are to sizing, length and style issues
visually appealing and inviting • Expand the sizing range to fit larger consumers
• Weekly updates of window displays with well • Expand to unisex clothing, would have to give
curated outfits up Zara store space for gender neutral clothing
• Launch more exclusive promotions via email •
newsletters such as 10% discount for students,
or 20% off outerwear, etc
• Integrate more technology into retail space e.g.
artifical intelligence, touch screen, automated
customer service/collection points
• Introducing loyalt schemes
• Cosmetics/beauty
We have attempted to use the Ansoff Matrix to brainstorm determine Zara’s product and market growth
strategies. Based on this matrix, we can either continue to grow within our existing market, or develop new
products or both. In existing markets, we have just launched an app utilising augmented reality to further increase
growth in our current market with our products. In 2015, we added a net of 65 new stores (Forbes, 2017) and
introduced stores in new markets such as Vietnam, which also has the average female height of 5’0” (Average
Height, 2018). When exploring the diversification aspect of the ansoff matrix... maternity, stationary, cosmetics/
beauty already have a competitive or established market. Whereas starting a petite range would allow us to be
more leading because of more demand and small number of competitors.
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97
98
ZARA PETITE
Business Planning
99
BUSINESS PLAN
The Business Plan essentially conveys Zara Petite’s financial picture. It includes
information of the five W’s (Who, What, Where, When and Why) of Zara Petite’s
business plan, the funding strategy, and evaluation of the financial challenges that
Zara could possibly encounter. Within this business plan you will also find a top
line table detailing key costs, projected sales, revenue and margins. Information
on how Zara Petite will come to life financially and its commercial viability will be
explored in this section.
100
101
FUNDING & FINANCIAL CHALLENGES
Brand/Net Value
$11.3 billion (As of May 2017)
Sales
$17.2 billion (As of May 2017)
Net Profit
Net profit for the 12 months
ending Jan. 31, 2017 rose to
3.37 billion euros ($4.11bn)
from 3.16 billion euros
a year earlier (The Associated Press, 2018)
102
TOP LINE TABLE
SELLING SELLING END
START
PERIOD PERIOD OF
POINT
1 2 SEASON
Investment
Funding €8,500,000.0 €63,500.0 €63,500.0 €8,500,000.0
Total
Revenue
Forecast € 0.00 €13,485,119.7 €17,530,655.6 €31,015,775.3
Average
67.9% 67.9% 69.90% 71.9%
Margin
Profit
Forecast €394,181.0 €13,485,119.7 €17,530,655.61 €31,015,775.31
This business top line table is structured by selling period instead of in months to years forecast. This is because
of our unique business model. We work with quick turnover and short selling periods for each of our products.
Therefore, we do not function like the traditional method. Most brands usually plan to sell their products for a
whole season with one trend influencing the whole season. We however aim to adapt quickly to market changes
and execute so with quick lead times and limited quantities.This table works with selling periods that consists of
six weeks. For our first selling period, the Refined Opulence range will be launched and in the second selling period
we will launch our second range, Concrete Jungle.
At starting point the investment funding total was €8.5 million, the far majority of this investment (€8.105 million)
is allocated towards buy costs for all clothing for both selling period one and selling period two. Therefore, for
both selling period one and selling period two a total of only €63,500 is required, this investment includes funding
for salary and marketing. Selling period one and selling period two both have the same revenue forecast and
profit forecast, this is because the total buy cost for all clothing is not taken into account as this was part of the
investment funding for the starting point. In adition, the €63.5 thousand seen in selling period one and selling
period two is deducted from the initial start point investment and therefore is not from revenue during selling
period one and selling period two. Average margin is calculated from all data presented in the range plans.
The initial investment required for end of season is once again €8.5 million of the profits are reinvested into future
ranges.
Finally, the data above shows that these new ranges are sustainable by being highly profitable. The initial start
point investment of 8,5m, after selling period one and selling period 2, is estimated to turn into over 31m in profit,
over 250% increase ROI. 103
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Summary
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NEXT STEPS
The next steps that we would take to launch Zara Petite are preparing and
hiring staff. Putting together a buying and design team targeted towards
making the petite range come to life for six months prior to launch in the
headquarters (Spain). This also includes the team of staff to travel and build
relationships with existing/new suppliers and manufacturers. As well as
learning the ropes of the business model and retail networks. Once the design
and buying team have put together a petite range, we will market the products
for online editorial campaigns and online merchandising for the website. We
will also make announcements via social media and newsletters prior to
launch to build excitement within our target market so that they have a launch
date to look forward to (Similiar to brand and designer collaborations).
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SWOT Analysis
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110
Strengths Weaknesses
SWOT ANALYSIS
Opportunities Threats
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Bibliography &
List of Images
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BIBLIOGRAPHY
WORKS CITED
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uk_5ad5bcf3e4b0edca2cbd9542 [Accessed 05/2018].
Budds, D., 2016. The Secret Behind Zara’s Warp-Speed Fashion: Its Store Managers. Co.Design. Available
at: https://www.fastcodesign.com/3066272/the-secret-behind-zaras-warp-speed-fashion-its-store-managers
[Accessed -04/2018].
Bonioni, J., 2017. Business case : Purchasing strategy of Zara. Innovation & creativity at Tesla. Available at:
http://jeremybonioni.strikingly.com/blog/business-case-purchasing-strategy-of-zara [Accessed 05/2018].
Samuels, R., 2016. America is getting shorter, compared to the rest of the world. VICE News. Available
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2018].
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https://edited.com/blog/2014/04/zara-vs-hm-whos-in-the-global-lead/ [Accessed 05/2018].
Harbott, A., 2011. Analysing Zara’s business model – Digital CIO. Digital CIO. Available at: https://harbott.
com/analysing-zaras-business-model-6ee755699a70 [Accessed 05/2018].
Height, A.H.|.A., 2016. Average Female Height by Country. AverageHeight.co. Available at: http://www.
averageheight.co/average-female-height-by-country [Accessed 10/2017].
The Associated Press, 2018. Zara owner Inditex sees profits rise as online sales grow. WTOP. Available at:
https://wtop.com/consumer-news/2018/03/zara-owner-inditex-reports-7-pct-rise-in-full-year-profit/ [Accessed
05/2018].
2010. Statistics reveal Britain’s ‘Mr and Mrs Average’. BBC News. Available at: http://www.bbc.co.uk/news/
uk-11534042 [Accessed 10/2017].
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com/companies/zara/ [Accessed 05/2018].
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BIBLIOGRAPHY
LIST OF IMAGES
Pg 25, 54, 57, 58, 60 Zara.com, ZARA United Kingdom | New Collection Online. JOIN
LIFE | ZARA United States. Available at: https://www.zara.com/uk/ [Ac-
cessed 04/2018].
Pg 68 Hughes, N., 2013. Oracle Retail Week Awards: Fashion giant Zara
powers ahead globally. Retail Week | News, insight, video and data. Avail-
able at: https://www.retail-week.com/home/oracle-retail-week-awards-
fashion-giant-zara-powers-ahead-globally/5047269.article?authent=1
[Accessed 02/2018].
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BIBLIOGRAPHY
LIST OF IMAGES
Pg 96-97 Neumann, J., 2017. How Zara Is Defying a Broad Retail Slump.
The Wall Street Journal. Available at: https://www.wsj.com/articles/how-
zara-is-defying-a-broad-retail-slump-1497467742 [Accessed 05/2018].
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