Zalando group-assignment-ver-Deepak-K-Rana
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Zalando Case Study by Deepak K Rana and team Proposed solution for future
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Zalando group-assignment-ver-Deepak-K-Rana
- 1. Europe’s market leader in fashion eCommerce © 2014 | Deepak K Rana and Team HULT INTERNATIONAL BUSINESS SCHOOL Disclaimer: This presentation is an academic evaluation only.
- 2. Disclaimer: This presentation is an academic evaluation only. Industry Overview “E-Commerce” 34% 26% 20% 20% U.K Germany France Other European Countries 36% 22% 18% 11% 9% 4% Software, Books and Music Computer Hard ware and Electronics Fashion Clothes Health and Beauty Products Toys and Video Games and sports items Small Appliances and gardens equipments
- 3. Disclaimer: This presentation is an academic evaluation only. Digital Disruption 74% of business executives say their company has a digital strategy, but only 16% feel they have the skills and capabilities to execute it. A piecemeal approach to your digital channels and methods is no longer sufficient. To win, your organization must harness digital technologies to deliver an excellent digital customer experience Source: Forrester Research
- 4. Disclaimer: This presentation is an academic evaluation only. Digital Disruption Source: http://deloitte.wsj.com/riskandcompliance/files/2013/12/Technology_disruptors.png
- 5. Disclaimer: This presentation is an academic evaluation only. Huge product selection of shoe brands Fast brand building Expand into clothing, sports, home, accessories Great customer feedback Expansion into further markets Founded in 2008, Germany by Robert Gentz, David Schneider, Rubin Ritter Multinational e-commerce company that specializes in selling shoes, clothing and other fashion & lifestyle products online Has become the leader in Europe fashion eCommerce by being fast growing European company ever with >1 € billion net sales in 4 years Zalando Overview 2008: German online shoe shop 2010: Expansion to further categories 2013: Online store leader in the EU
- 6. Disclaimer: This presentation is an academic evaluation only. Zalando SWOT Analysis STRENGHTS Market leader High growth rate Strong management team Access to capital: Funding $243.4M Total addressable market Europe: € 500bn Lean structure Over 150 brands WEAKNESSES Investments in research and development No concrete plans of expansion Growing too fast Young management lack of experience OPPORTUNITIES Emerging market Expansion outside Europe Diversification (new fashion products) Growth rate and profitability THREATS Change in consumer habits Local competitors in specific counties Price changes Government regulations Existing competitors (Zappos, Amazon) SWOT
- 7. Disclaimer: This presentation is an academic evaluation only. Target Audience Target Audience Female between 18- 55 years Male between 18-45 years Teenager under 18 years Zalando is presumed to have achieved an astonishing brand recognition rate of 95% Zalando builds relationships with its final consumers whom are the actual people who goes on the website and order products What could Zalando do better? • Always Free Shipping • Involve more men in ad’s • Customer Service • Zalando TV • Virtual Fitting Room – Shopping Experiences
- 8. Disclaimer: This presentation is an academic evaluation only. Competitive Landscape
- 9. Disclaimer: This presentation is an academic evaluation only. Zalando’s current strategy ALT Zalando produces a quarterly glossy fashion magazine that already counts among the highest-circulation print magazines in Europe. Zalando carries out sales promotion by free delivery of the products, discounts on various products and coupons which can be redeemed later by the customers. Zalando heavily invest in building relation with universities, doing workshop and events. ( Eg: Hack week organised by Zalando) http://tech.zalando.com/pages/ events.html. BLT Zalando is leading its own blog and backed by brilliant search marketing They have poked around in social media, fancy TV ads, Google ads, and with the use of good content and linking, they have managed to optimize their page emphatically. their idea was “go big or go home!” Zalando is using Social Media to interact with the Customer. For example, Zalando has currently over 200.000 likes on Facebook fan pages and is using twitter, and all the other smart forward- looking social media concepts to illustrate itself perfectly. TLT Zalando using the social media and website attracting its customer for off line sales. Selling its own brand in a Pop-up store in Berlin, while offline, as an inaugural event for the brand. Although this doesn’t really have an effect on share of sales, it definitely affects the brand’s recognition Zalando should reach customers more through TV, Print, E-newsletter, Blogs & APP as well. Through Applications on Google Play, Apple Store, Amazon Store, Window Store it can reaching more mobile devices and becomes a more accessible option
- 10. Disclaimer: This presentation is an academic evaluation only. Social Media Analysis Zalando Stats 71k 10.7k 52k 28k 10k *Statistics as of 24/06/2014 “Zalando requires a new innovative strategy to penetrate the market”
- 11. Disclaimer: This presentation is an academic evaluation only. Virtual Shopping Experience We introduce virtual fitting room – Shopping Experience
- 12. Disclaimer: This presentation is an academic evaluation only. Guerrilla Pitch Install Cisco StyleME – Virtual Shopping Mirror Top Bus stops & Tube stations at Oxford Street Shopping centers - Westfield ( Stratford ) - Westfield ( Whitecity ) Let people Share experiences on Social Media Invite friends & Receive free vouchers Cisco StyleMe – Virtual Mirror Technology How are we going to do that ?
- 13. Disclaimer: This presentation is an academic evaluation only. Reach Tactics Audience Strategy Outcomes Search Engine Optimization Online Users Create awareness Trust Gain & Portal Sign-up Pay Per Click Online Users Create awareness Trust Gain & Portal Sign-up Affiliate Advertisement Online Users Create awareness Trust Gain & Portal Sign-up Online PR Online Users Create awareness Trust Gain & Portal Sign-up Social Media Marketing Online Users Create awareness Trust Gain & Portal Sign-up Interactive Videos Online Users Create awareness Trust Gain & Portal Sign-up Try Clothes using Augmented Reality using Virtual Fitting Room Share experience on Facebook, Twitter, YouTube (Earned) Reviews & Ratings (Earned) Social Media Strategy
- 14. Disclaimer: This presentation is an academic evaluation only. Sales Funnel Awareness Leads Prospects Brand • Marketing Activity on Website, Commercial’s etc. Create • Huge variety of brands • Quality • Promotions & Offers Content • Newsletter • Customer Service Build • Membership • Loyalty Program • Customer Specials Loyal Customer CRM Sales
- 15. Disclaimer: This presentation is an academic evaluation only. CRM Market leader, due to: excellence operations, advertising, satisfied customers Relationships with final consumers no intermediaries & exclusive services Provider for customer management for supporting in concepts and technologies in order to optimise the customer management process Vitality holistic view of its customers during all stages of the customer life cycle Web 2.0 & Digital Marketing target individual & tailor the message to best suit their needs What is the future ? • Take Care of unsatisfied Customers, Use Their Feedback to Improve • Cocreation • keep track of customers ( big data ) • "increase" word of mouth
- 16. Disclaimer: This presentation is an academic evaluation only. Customer Loyalty • Filter Functions • Detailed Product Views (Virtual Fitting Room) • Online: Blog • Offline: Magazine • Reviews & Ratings • i.e.: M&S • Membership • Extra promotions • Exclusive Customer Service Lounge for Members Reward Points Improve Website Fashion Communities
- 17. Disclaimer: This presentation is an academic evaluation only. Rewards & Reviews • Zalando Lounge Membership – Exclusive and inexpensive offers – Promotions & discounts – Monthly newsletter & latest shopping trends before others will get (exclusive) – Size advisor – Birthday gifts • Loyal customers will get promotions, vouchers or 50% discount on next shopping • Online Outlet • Portfolio Shopping Experience – Search for a dress – get the whole outfit: right jacket, shoes, accessories, etc.
- 18. Disclaimer: This presentation is an academic evaluation only. Conclusion • In order to be the market leader – Zalando is able to lead by providing Virtual Shopping experience to customers and create new customers too by creating a Guerrilla marketing strategy. It will increase company Brand Awareness and increase market share. • Currently online websites such as Amazon, Ebay and others are not providing the Virtual Shopping experience. As being a new company to the industry – disruptive technology like Cisco StyleMe can really help them grow faster by penetrating the market.
- 19. Disclaimer: This presentation is an academic evaluation only. THANK YOU Q&A © 2014 | Deepak K Rana and Team HULT INTERNATIONAL BUSINESS SCHOOL Disclaimer: This presentation is an academic evaluation only.
- 20. Disclaimer: This presentation is an academic evaluation only. • https://www.cisco.com/web/about/ac79/docs/retail/StyleMeEngagementOve rview_120611FINAL.pdf • http://de.statista.com/statistik/daten/studie/186124/umfrage/kundenzufried enheit-mit-der-bestellung-bei-webshops/ • http://www.powerretail.com.au/pureplay/building-online-retail-shoes-up/ • http://wearedevelopment.net/2012/03/11/zalando-a-crm-success-story/ • http://www.searchenginejournal.com/two-top-european-clothing-giants- overpowered-search-marketing-competition/90027/ • http://www.fashionunited.co.uk/fashion-news/fashion/zalando-explains-its- strategy-for-italy-2013041517385 • http://www.messe- duesseldorf.de/drupa2012_ca/media/Serie_Online_Zalando_e.pdf • http://cdn1.tnwcdn.com/wp-content/blogs.dir/1/files/2014/04/disruption- wheel.jpg • http://www.zoho.com/crm/how-crm-works.html • http://wearedevelopment.net/2012/03/11/zalando-a-crm-success-story/ Sources
Editor's Notes
- Zalando has become the market leader, mainly due to operational excellence; and partly thanks to fancy television advertising in the online market
- Within the wheel of disruption, the golden triangle is encircled by other emergent technologies and sectors affected by mobile, social and real-time, such as big data, geo-location cloud and more. Yet again, for businesses to thrive let alone survive, social, mobile, and real-time strategies are not enough in isolation. These disruptive technologies are merely just the beginning of a still shaping era of connected consumerism. Source: http://thenextweb.com/entrepreneur/2014/04/16/digital-disruption-changing-business-technology-isnt-answer/ When we stop chasing trends and fighting for technology and marketing strategies in the moment, we can appreciate that our view of technology and its aggregate impact on markets is far more massive that we initially realized.
- Source: http://deloitte.wsj.com/riskandcompliance/files/2013/12/Technology_disruptors.png
- Zalando has become the market leader, mainly due to operational excellence; and partly thanks to fancy television advertising in the online market
- Zalando’s headquarter is in Berlin, Germany. Since then, Zalando has expanded to offer its retail services in a total of fourteen European countries. Currently Zalando is operationally active in Germany, Austria, Switzerland, France, Belgium, the Netherlands, Italy, Spain, Poland, Sweden, Denmark, Finland, Norway and the UK. Identified 3 different target groups…
- Below the line Marketing by Zalando: 1. Zalando produces a quarterly glossy fashion magazine that already counts among the highest-circulation print magazines in Europe. 2. Zalando carries out sales promotion by free delivery of the products, discounts on various products and coupons which can be redeemed later by the customers. 3. Zalando heavily invest in building relation with universities, doing workshop and events. ( Eg: Hack week organised by Zalando) http://tech.zalando.com/pages/events.html. Above the line marketing by Zalando: Zalando is leading its own blog and backed by brilliant search marketing 2. They have poked around in social media, fancy TV ads, Google ads, and with the use of good content and linking, they have managed to optimize their page emphatically. their idea was “go big or go home!” 3. Zalando is using Social Media to interact with the Customer. For example, Zalando has currently over 200.000 likes on Facebook fan pages and is using twitter, and all the other smart forward-looking social media concepts to illustrate itself perfectly.
- Zalando has become the market leader, mainly due to operational excellence; and partly thanks to fancy television advertising in the online market
- Below the line Marketing by Zalando: 1. Zalando produces a quarterly glossy fashion magazine that already counts among the highest-circulation print magazines in Europe. 2. Zalando carries out sales promotion by free delivery of the products, discounts on various products and coupons which can be redeemed later by the customers. 3. Zalando heavily invest in building relation with universities, doing workshop and events. ( Eg: Hack week organised by Zalando) http://tech.zalando.com/pages/events.html. Above the line marketing by Zalando: Zalando is leading its own blog and backed by brilliant search marketing 2. They have poked around in social media, fancy TV ads, Google ads, and with the use of good content and linking, they have managed to optimize their page emphatically. their idea was “go big or go home!” 3. Zalando is using Social Media to interact with the Customer. For example, Zalando has currently over 200.000 likes on Facebook fan pages and is using twitter, and all the other smart forward-looking social media concepts to illustrate itself perfectly.
- Building relationship with final customers which is the target audience for the CRM service teams. There are no intermediaries, as it is a direct sales channel. Zalando “only” focus on the relationship between the company and the actual consumer. To manage this vital relationship Zalando hired an expert in this particular field, SHS VIVEON Zalando GmbH, which is a customer-orientated company advised by SHS VIVEON a provider of holistic, customised and integrated solutions for customer management. SHS VIVEON provides the online retailer with both conceptual and technological support in order to optimise the customer management process. The declared goal is to offer Zalando-customers more individual and exclusive services. Zalando therefore, tries to create an exclusive, customer-orientated shopping experience, which is executed throughout all customer contact points (e.g. registration of new customer, shipping, complaint management). For Zalando it is vital to obtain a holistic view of their customers during all stages of the customer life cycle: from acquisition to loyalty measures. The company takes into account that communication requirements between the customer and the company, as they continually increase, develop and above all, change. As a consequence, the relevant internal processes are becoming considerably more complex; in order to manage the quality of customer management and customer service the CRM strategy relies on the underlying processes and IT systems; whilst continuing to bear in mind the importance of the service quality dimensions (consistency, access, liability, tangibles, empathy, and responsiveness). The Web 2.0 and digital media have transformed marketing. It has gone from push to pull and monologue to dialogue . Zalando can now target one individual and tailor the message to best suit their needs, whereas it used to be one-to-many, and one-to-some style in traditional media. New media also enables many-to-many communications, where customers interact with each other via the company web site, or an independent community can set up monitoring services to help managing how a brand is presented on third-party sites. This helps organisations respond rapidly to potential negative PR. Googlealert can be used in online reputation management. Furthermore, people do not stick to Facebook only either. Consumer trend is shifting more towards a cross-platform behaviour including the likes of Twitter
- Zalando builds relationships with its final consumers whom are the actual people who goes on the webpage and order products. The end consumer is the target for the CRM service teams. There are no intermediaries, as it is a direct sales channel. Zalando “only” needs to focus on the relationship between the company and the actual consumer. For Zalando it is vital to obtain a holistic view of their customers during all stages of the customer life cycle: from acquisition to loyalty measures. The company takes into account that communication requirements between the customer and the company, as they continually increase, develop and above all, change. As a consequence, the relevant internal processes are becoming considerably more complex; in order to manage the quality of customer management and customer service the CRM strategy relies on the underlying processes and IT systems; whilst continuing to bear in mind the importance of the service quality dimensions (consistency, access, liability, tangibles, empathy, and responsiveness).