NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management

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NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
S U P P O R T I N G S TAT E M E N T

                                      NEW BUSINESS AWARD

                                      Linn van Leeuwen
                                      Ravensbourne
                                      BA Fashion Buying & Brand Management
                                      2017-2018                              1
NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
ZARA PETITE                                               Introducing 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.

                                                                          Proposal Summary
       This new business is about expanding the brand Zara into the petite market. The proposal is to
       create a brand extension, more specifically a womenswear petite range in order to fill the gap
       within the market. This is due to dissatisfaction in the existing petite clothing and sizing, which will
       be supported by primary and secondary research within this report. You will also find information
       on how this new business will be executed through exploring the seven P’s of the marketing mix,
       ass well as a business plan on how this brand expansion will be commercially viable and how it
       will successfully fill the gap in the market.

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NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
THE RESEARCH
                        My Primary research prove that there’s a gap in the market. My questionnaire, that was conducted
                        in fall 2017 with 62respondents (Women 5ft3 [160cm] and below) indicated 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 - though 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

                                             Do you buy petite clothing?

             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.

                                                                                                                              3
NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
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.

What do you struggle with in terms of fit? (Multiple selection)

                          Jeans in general                                                                        36 (58.1%)

                           Length of jeans                                                                                          47 (75.8%)
                         Shoulder breadth                                           16 (27.4%)
                               Sleeve length                                                                        35 (56.5%)
               Big around waist & hips                                  10 (16.1%)

    Big around waist but fits on hips                                                                   28 (45.2%)
     Fits on waist but loose on hips                              6 (9.7%)
                   Too baggy/oversized                                                        23 (37.1%)
                                      Too tight                           12 (19.4%)

Deeper/bigger plunge in the front                                                                                   20 (32.3%)

      Too much space around bust                                    7 (11.3%)
        Too little space around bust                    1 (1.6%)

                                                    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%).

                           “(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

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NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
PEOPLE
•   Female
•   Aged 16-40, majority young women. 54.4% of
    the respondents are age 20-24
•   International - global audience
•   Fashion forward and trend conscious
•   Mid-range incomes, affordable price points for
    students and the working class
•   Petite, height 5’3” (160cm) and below

Due to Zara’s establishment, they’re able to quickly react to consumer
demands and trends internationally. Their largest market are women
who love fashion in which style is an integral part of their life. Zara take
inspiration from the catwalk and changing trends. They imitate ideas
(with a twist) at a affordable price. In terms of the psychographic profile,
Zara Petite 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, as well as consumers 5 ft 3 and
below.

On 22 November, 2017 a 56 minute longfocus group was conducted with four particpants who are below 5’3.

The participants:

Lauren: Third year sound design student and is 5ft tall
Sara: Third year graphic design student, in her late 30s and is 5ft1 tall
Holly: First year fashion buying student and is 5ft tall as well
Jel: Ravensbourne graduate, mid 30s and is 5ft1

             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

                                                                                                                                                          5
NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
PRODUCT

              PETITE

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NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
PRICE
                                          My Primary and secondary research prove that there’s a gap in the market. My
                                          questionnaire, that was conducted in fall 2017 with 62respondents (Women
                                          5ft3 [160cm] and below) indicated 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

            PETITE        £9.00                                                                      *£200.00

                     £0      £20    £40        £60        £80       £100    £120        £140    £160       £180       £460

                                                                                                   * = Price over £180

   €39.95, £39.99, $49.90                          €69.95, £69.99, $89.90                         €19.95, £19.99, $25.90

                                   UNITED STATES
                                   & CANADA                           EUROPE                               KOREA
                                                                                          CHINA            & JAPAN

PLACE
                                                                                        AUSTRALIA &
                                                                                        NEW ZEALAND

Zara petite will be available for worldwide shipping online and will also be stocked
across 1,401 stores within North America, Europe, Asia and Oceania. It will only be
available in countries where there are the most Zara stores already. The typical Zara
consumer resides in big, urban cities and in more economically developed countries.
In addition, in effort to maximise profit, balance must be met between Zara’s regular
clothing and the petite range.

                                                                                                                           7
NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
PROMOTION

                                                                         SPRING SUMMER 2019
                                                                         WOMENSWEAR 5’3” & UNDER

                                             In terms of promotion, Zara generally do not
                                             invest a lot into their marketing and promotional
                                             materials. Instead of bold and flashy graphics
                                             like their competitors e.g. Boohoo, ASOS,
                                             etc. Zara utilise a more minimal and editorial
                                             approach with easy on the eye moving images
                                             and graphics that appeal to a larger market.
                                             Like the replica above of Zara’s website (Photos
                                             used from own photoshoot), the announcement
                                             of Zara Petite arrival is reflected by their current
                                             aesthetic. This is not to lose integrity of Zara’s
                                             well established brand, rather than creating
                                             something completely new and potentially a
                                             risk that could be more threatening towards
                                             Zara.

    New Petite Line Launching this Spring!
    March 21 | #ZaraPetite

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NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
BUSINESS PLAN
            Investment
                                                  Revenue           Average            Profit
              Funding        Expenditure
                                                  Forecast          Margin            Forecast
               Total

START € 800,000.0            € 652,828.0           € 0.00            67.9%          € 147.172.0
POINT

SELLING
PERIOD          €0.00        € 75,000.0         € 13,485,119.7       69.9%          € 225,000.0
   1

SELLING
PERIOD        €165,000        € 75,000.0        € 17,530,655.6       71.9%           € 95,000.0
   2

  END
   OF         €160,000        € 65,000.0        € 31,015,775.3       73.9%           € 95,000.0
SEASON

SWOT
               STRENGTHS                                           WEAKNESSES

•   Boost reputation for catering towards          •   Still may be struggles with finding the
    shorter women                                      perfect fit
•   Average height for women is 5’3 (which         •   Figuring out the size grading
    is considered petite by many brands) will      •   Limit towards the designs, as they
    therefore maximise sales by                        should also be proportionate towards
    demand                                             shorter women
•   Can reduce products going to waste/            •   May be backlash as others may feel ex-
    into sale                                          cluded, e.g. plus-size, tall, maternity, etc
•   Improve customer relationships                 •   Not as hyped up as it should be
                                                   •   Disorganisation of stock in-store and
                                                       online
                                                   •   Confusion between petites and regular

             OPPORTUNITIES                                           THREATS

•   Can utilise the extension towards a inno-      •   Critcism for exclusion to other issues
    vative marketing strategy                          such as plus-size
•   Show the public that Zara is involved          •   Mix-up between height and skinny,
    with society and current issues as well            people may believe that Zara are
•   Opportunity to utilise technology                  promoting a smaller size and
    creatively in terms of sizing and service          encouraing mental issues such as
•   Improved customer service by                       anorexia
    imposing better size guides and tools          •   Sizing may not meet consumer
•   Recruit unique and empowering                      expectations
    women to become ambassadors for an
    issue that isn’t commonly discussed
•   Encourage styling and outfits tips for
    petite women (currently seems non-ex-
    istant) as other popular high street
    brands/influencers don’t do this

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NEW BUSINESS AWARD Linn van Leeuwen Ravensbourne BA Fashion Buying & Brand Management
PERSUASION
The proposed idea of introducing a petite range for Zara will be successful because there is high
demand in more petite clothing and improved sizing. Primary research in particular evidences this
gap in the market. Too many brands offer petite clothing that are limited in styles and consist mostly
of basics/staples pieces. The petite extension with Zara will fulfill both: bringing on improved sizes
and more unique and trend-led designs. Zara provides a wide spectrum of styles, from trend-driven
items to high-fashion quirky pieces to the basics, which makes it the ideal brand for filling in this
gap. Primary research also indicates that petite women prefer inclusivity rather than exclusivity, and
do not like it when brands sell petite clothes purely for petites and do not have a petite version of a
regular item as well. Moreover, Zara is well-established financially and with infrastructure. They are
able to fund this new business idea and can use their reputation and following to make it successful
without outside help.

                                                                                                          PETITE

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