SD_Pentelow
- 1. 1 SPORT S P O R T
- 2. 2 3 SPORT S P O RT 1 Introduction 1.1 / Business Overview 1.2 / Sector Analysis 2 Market Segment 2.1 / Competitive Market 2.2 / Customer Profile 3 Marketing Strategy 3.1 / Product 3.2 / Distribution 3.3 / Pricing Strategy 3.4 / Promotion 4 Growth Appendices: S.W.O.T analysis Bibliography contents
- 3. 4 5 SPORT S P O RT I / introduction 1.1 / BUSINESS OVERVIEW I intend to open a sportswear range for the high street retailer, ZARA, offering a range that compliments the existing aesthetics and values. The clothing will match the Zara principles; it will be chic, high quality and sold at high street prices. The pricing structure will differentiate the line from high-end technical sportswear companies. The product will combine the shapes, colour palette and trends of the Zara aesthetic with technical sportswear fabrics, distinguishing the line from other high-street sportswear collections.
- 4. 6 7 SPORT S P O RT The sportswear industry in the UK is rapidly developing; the value of the British sportswear market grew by 9.5% to £5.9billion in 2014 alone . There has been an increase in the need for comfort and practicality and brands have adapted to make sportswear more fashionable, with many luxury designers creating sportswear lines; think Mary Katranzou for Adidas and Alexander Wang for H&M. The 2012 London Olympics even saw designs by Stella McCartney worn by British athletes. The value oftheBritish s p o r t s w e a r marketgrewby9.5% to £5.9billion in 2014 alone. “ F e m v e r t i s i n g ” : Marketing strategies tapping into female comsumers 1.2 / SECTOR ANALYSIS The ‘Athleisure’ trend highlights the crossover between sportswear and fashion, between comfort and style. One of the most googled style terms in 2014, the trend graced catwalks and high street windows alike, and is set to grow by 24% over the next 5 years, according to retail data company Verdict . The growth in the sportswear market is reflective of the increase in women’s interest in health and fitness over recent years. This could be attributed to a wider trend of “Femvertising”:marketingstrategiestappingintofemale consumers. Celebrities and social media are driving this trend with campaigns such as Sport England’s ‘This Girl Can’ gracing TV screens, and #fitspiration and #fitness reaching the top hashtags on Instagram. Over the past 5 years, the UK saw an increase in accessibility to gyms and fitness studios. Data from Cardlytics found that spending in the budget gym sector grew by 66% in 2015, highlighting the entry level interest in the fitness sector.
- 5. 8 9 SPORT S P O RT 2 / market segment The sportswear market is currently dominated by big name brands such as Nike and Adidas, as well as newer brand Under Armour. Due to the price point, Zara SPORT will also be compet- ing with other high street and online retailers who have ventured into the sportswear market such as H&M, Miss Guided, and Gap. 2.1 / COMPETITIVE MARKET H&M SPORT Launched in January 2014, H&M Sport offers a range of clothing from £7.99 to Outerwear at £39.99, and accessories starting from £3.99. The collection provides basic sportswear fabrics in a range of bright colours, and garments that change seasonally, including skiwear, yoga wear, tennis garments, running clothes and accessories.
- 6. 10 11 SPORT S P O RT One of the fastest growing sportswear companies, is responsible for 7% market share. Under Armour also has its own technical fabric: HeatGear® when it’s hot, ColdGear® when it’s cold, and AllSeasonGear® between. In 2006, Under Armour released it’s first line of shoes allowing the brand to compete with the likes of Nike and Adidas. Arguably the biggest sportswear brand globally, Nike dominated the market in 2015 with 60% market share, operating 931 retail stores. With a higher entry price point at £39.99 for basic leggings, Nike offers offers high quality items. Nike offers Dri-Fit: a high-performance fabric that moves sweat away from the body and to the fabric surface, keeping athletes dry and comfortable. The Zara SPORT customer will be comprised of two customer profiles: the existing Zara (and high street) customer, venturing into sportswear; and the sportswear consumer, looking for an alternative retailer. The Zara consumer is fashion and trend aware, but with a focus on value for money; the price and quality of product for the price is important. The Zara and Zara SPORT consumer relies on Zara to provide on-trend pieces at high street prices. Zara’s ability to both provide full on trend looks, and compliment designer brands, attracts a varied socioeconomic index from A1 to C2. The A1 consumer is able to buy their sportswear from more expensive brands however may buy into the Zara SPORT model as a starting point. The low entry points for the basic line appeals to the C2 category as it provides reliable quality at an affordable price. Comfort is a priority for the Zara and Zara SPORT consumer. The customer is busy and keeps active whenever possible. The consumer age for the Zara SPORT line will range from 20-55. 2.2 / CUSTOMER PROFILE NIKE UNDER ARMOUR Comfort is a priority for the Zara SPORT customer.
- 7. 12 13 SPORT S P O RT 3 / marketing strategy The core product is sportswear garments. I would integrate Zara SPORT into the existing Zara model. The “Just-In-Time” strategy is implemented on the basis of a vertically integrated supply chain and is a low risk strategy that ensures a high turnover, allowing self-containment throughout the stages of materials, manufacture, product completion and fast distribution to stores worldwide. The infrastructure is already in place for Zara SPORT to be manufactured with low costs. It ensures that any fashion trends can be quickly integrated into the Zara SPORT line. The difference between the Zara SPORT manufacturing and the existing Zara manufacturing model will be the garment materials. It is essential that wicking materials such as Polyamide and Polyester mixed with Elastane are explored for the absorption of sweat. I would also explore the possibility of a collaboration with Gore-Tex, a waterrepellentandprotective,yetbreathable,materialto be used for rainwear and outerwear. I feel that this would elevate the Zara SPORT line to be of a higher quality than that of other high street sportswear lines, and amongst sportswear names such as The North Face, known for integrating the Gore-Tex technology into their clothing. 3.1 / PRODUCT
- 8. 14 15 SPORT S P O RT 3.2 / PRICING STRATEGY It is imperative that the pricing structure of Zara SPORT does not differ greatly from that of the Zara main lines, so as not to discourage existing Zara customers. There will be a basic line within the collection, simple shapes and colours that are interchangeable with the seasons and this section of the line will remain at a lower price. There will also be a high-end section of the line, offering more technical, high quality, breathable fabrics which will be priced slightly higher. The entry level price for clothing will be £9.99, with accessories such as water bottles priced at £7.99. The exit point will be for highly technical and high quality pieces such as a Gore-Tex™ Rain Jacket and priced at £59.99. The Zara SPORT line will initially be released in a selection of urban flagship stores such as the Oxford Circus stores across the UK, before then reaching smaller, more rural stores. This will see which pieces are successful before taking a refined collection to rural stores, maintaining low risk. Zara SPORT will also be available to customers online as a subsection of the existing website, and will be represented on the opening page in the “New In” section for digital foot fall purposes. I would also use the launch to provide an initial pop up store to buy products from as part of the promotion of the sportswear line. 3.3 / DISTRIBUTION
- 9. 16 17 SPORT S P O RT I plan to initially launch a pop-up space, as both a boutique store and a location for free fitness classes with well known sports bloggers, such as AJ Odudu and Zanna Van Dijk. This will engage with the customer and provoke word of mouth promotion. The pop-up store will be promoted on social media, via Facebook, Instagram and Twitter and via the social media of the fitness bloggers, expanding the Zara audience. Ahead of the pop up fitness classes I would hold a press and PR day, including one of the fitness classes to ensure coverage and further promotion. In the advent of social media, word of mouth promotion is as, if not more, effective than traditional advertising. I intend to consider offering a publication such as Business of Fashion an exclusive look at the key pieces of the collection. It would keep the Zara SPORT brand in line with a publication with great calibre, and expose the new collection to their variety of readership. In order to prepare customers for the launch, I will use a series of email promotions to existing Zara customers to let them know that the collection is ‘coming soon’, and inform them when the collection launches as part of the ‘New in’ email that circulates on Mondays. Advertising will be kept to a minimum: in store, in windows and occasional editorials only. A press release will be circulated amongst the press and bloggers to gain further exposure and articles. 3.4 / PROMOTION
- 10. 18 19 SPORT S P O RT The collection will start small to be able to measure the success of key pieces. In the short term (1-2 years), I would expect the collection to increase with the growing knowledge of the Zara SPORT customer. Just as Zara HOME has done before, I would consider opening a small handful of Zara SPORT stores in major cities across the UK in the long term. These stores would reflect the initial boutique feel from the initial pop-up store, and provide classes in store. I feel that the line offers the potential for capsule collection collaborations with either fitness bloggers, or sports stars, in the future. 4 / growth
- 11. 20 21 SPORT S P O RT ANALYSIS / STRENGTHS / WEAKNESSES / OPPORTUNITIES / THREATS I see the business proposal as a reflection of the zeitgeist. Zara is one of the few high street retailers not to have produced a sportswear collection In the final days of the project, Zara released a Gymwear collection on their website. I see this as a strength because it highlights appropriateness of the business proposal. A weakness could be that for a high street retailer, there are cheaper versions of the garments available and if a consumer is not bothered by the materials, they would choose an alternative high street retailer over Zara SPORT. The Athleisure trend continues to grow and the interest in health and fitness amongst consumers continues to increase. The market share for sportswear leans more towards high street retailers. A breakdown in Zara’s existing manufacturing process would threaten productionoftheline.Otherexternalfactors such as import/export laws and taxes in the UK would severely threaten Zara SPORT.
- 12. 22 SPORT • Davidson, L., Five reasons the UK is going crazy for sportswear, The Telegraph Online, http://www.telegraph. co.uk/finance/newsbysector/retailandconsumer/11812263/ Five-reasons-the-UK-is-going-crazy-for-sportswear. html, 24th August 2014, (Accessed 6th March 2016) • Burn-Callandar, R. Fashionistas swap party frocks for yoga leggings, The Telegraph Online, 5th January 2015 (Accessed 6th March 2016) • Davidson, L Femvertising: Advertisers cash in on #feminism, http://www.telegraph.co.uk/women/womens- life/11312629/Femvertising-Advertisers-cash-in-on-feminism. html, 12th January 2015 (Accessed 6th March 2016) • Euromonitor international, Sportswear in the UK, http:// w w w. e u ro m o n i t o r. c o m / s p o r t s w e a r- i n - t h e - u n i t e d - kingdom/report, April 2015, (Accessed 6th March 2016) BIBLIOGRAPHY