The Zara Business Plan Marketing Essay

The Zara Business Plan Marketing EssayZara endures the latest trends in international fashion in an environ manpowert of thought-out design. Its stores, located in the main commercial areas of cities across Europe, America and Asia, offer fashion inspired in the tastes, wishes and lifestyles of todays men and women.Zara moves at the pace of society, fashion ideas, and trends that society itself has natured. Hence its success among people, cultures and generations that, in spite of their differences, share a special sensitivity for fashion.Due to the growing of the clothe industry and the enormous unmet need in the market in the Puget Sound, we see the long-term expansion and potency of Zara throughout the Northwest. We are visionaries who see Zara as an peak financial launch. By achieving its sales targets, Zara allow position itself for exceptional profitability and self-funded growth. With our plans of Zaras expansion in South Centre Mall, our plan is to generate tax revenues of $7,094,763 by 2008. focusing of Zara is seeking an investment of $800,000 in addition to the $150,000 already invested by the founders. Proceeds go forth be reinvested into the expansion of Zara into new markets and products.Purpose ApproachThe purpose in business is to maintain the responsiveness to the changing trends in con checker tastes through creating new designs fast that are suitable for all customers at an affordable price. In the ongoing expansion process we have decided to move into the Puget Sound Region because of the many advantages that could be exploited. We have considered several elements that we have learned throughout the semester and utilise them in our decision making process.Worth of ZARAWe have created a payroll chart for the just the four owners that will be our only staff, which the profit is shared out evenly for all four owner. Accounting for the identifiable logo and the cost of operations our acquisition proposal would be $. This figure is deri ved from our analysis, where we multiplied our average periodic sales figure by eight percent because we include the branding of Zara and it helps us minimize our risk by not overspending. The total cost of revenue for the first year of opening is estimated at $350,000.00.Estimate Business Cycle Comparative StatementCurrent additionsCurrent LiabilityWorking Capital longsighted Term LiabilityZara Income StatementLease (including Insurance and other Expense)Operating ExpenseTax for cost of revenueTotal ExpensePayrollhourly WageHoursGross PayTaxManagers / Owner (4)N/A4,160Yearly TotalBalance SheetAssetCashAR stocktakingEquipmentThree departmentsMen SonWomen AshleyChildren JustinOpen Shift JustinClosing Shift HuyThree Sunday unless holiday or eventWe agree on that we as the owner are the only worker in our newly franchise Zara store.Cost distributesLendersSuppliersGovernment -Assumption 8.8%-How much inventory needed?Starting Inventory figure of speech of EmployeeSouth Center Mall Mall hours1000 am 930 pm Monday to Saturday1100 am 700 pm Sunday80 hours open per week52 weeks in a year80 X 52 = 4160 hours open in a year2467.56 X 12 = 29610.72 / 4160 = 7.12 transaction per hourPrice of Space$27.76 per square feetSize of space4000 square feet4000 X $27.76 = $111,040.00$111,040 / 45 = 2467.56 transactionPrice Range per Item$35.00 to $79.00Asset 640 item on displace and for salePiece $8.00Mark-up $2.08$10.08Mark-up 26%ChildrenSelling Price $35.00 $57.00 $79.00Mark-up $9.00 $15.00 $29.54Cogs $44.10 $71.82 $99.54Total Cogs $215.46Revenue $171.00Profit 45Contract Specifies All includedUtilitiesWater / Sewage / GarbageInsurance$111,040 X 12 = $1,332,480 rent per yearBank of AmericaAvailable for amounts up to $100,000Provides a one-time lump sum with fixed monthly paymentsQuick approval processLets you borrow without using your business or personal assets as collateralCompetitive, fixed rate of sakeMaximum term up to 5 yearsSet the stage for the success of your pract ice.100% practice financing plus working capital purchasableBuyer/Seller referral networkDemographic site analysisFixed and variable rates with impairment up to 15 yearsDeferred, graduated, and interest-only payment plans in stock(predicate)Combined practice and real estate loans availableFinancing for equipment, cabinetry, and office furniture, fixtures, and suppliesFinancing for renovations and constructionFinancing can include architecture, design, and management consulting feesAll terms and features subject to credit approval. Some restrictions apply.Zara OperationsTo be successful in providing high quality products to all of our customers at a price that is affordable we selected our locations found on the locations that are similar to those of other Zara stores. Our strategy is to move from city to city while continuing the business practices used by Zara and implementing information technology. Our sense of taste in location is derived from the closeness to the entertain ment, financial institutions, art museums, and upscale restaurants. This preference allows us to reach numerous customers because it would be located in areas that people will either drive or walk passed. While receiving the attention provided by our friendly personable salespeople, customers will enjoy our in-store coffee shop and the ambiance that is created by our interior designers.We intend to utilize information technology to flatten the hierarchical structure of management, thus, granting our employees more decision-making power and responsibility. Exploiting information technology through implementation of TPS and DSS will enable us to organize information that can be used to improve the decision-making quality. Customers could use our online store to receive reminders of birthdays and other holidays, so that they can drive gifts as well as getting the news on the new styles to be release in the near future. We have created our website with the goal of making it eastmost t o use, therefore, allowing customers to participate in sales promotions as well as providing feedback on products. They could also view the feedback of other customers. The website can also be customized to fit the customers shop behaviors. (pp. 295)Future Potential of ZARAThis business has a lot of potency. We could possibly incorporate different marketing strategies although the one used has proven to be successful. Zara could also climb an online website. Through the online store we will sell our products and do some pre-marketing of new products before they are released in addition to collecting consumer responses about the products. Another potential factor that we have considered is to open discount stores that would allow the business to sell the surpluses in inventory. This will enable us to become more efficient. The areas we have chosen for the location of our stores are downtown Seattle, Bellevue Square, and the South Center Mall in Tukwila. These areas fit the needs o f surrounding businesses, our staff members, the seasonal shoppers, and the vacationing tourists. The selected areas also offer a wide variety of restaurants, tourist attractions, and entertainment, which could prove to be an advantage. (pp. 331-332)Zara Investment RecommendationsConsidering the risks involved of opening a business, we are confident about the future profitability, so we highly recommend the purchase of Zara. We are confident about our recommendation because we would be entering into a franchise that has maintained its success, opened its retail stores in great locations, and utilized the products of the research and development in our business practices. These actions translate into great potential for profitability because many of the practices have already been proven to be effective. Another advantage could be created by the implementation of information technology that will improve processes and performance amongst internal customers.Looking at the future potent ial of the business allows us to be confident in our decision as we embrace the expansion of Zara into the Puget Sound region.