Introduction

Marco environment In this proposal, I am going to propose a capsule sweater collection for the forthcoming Autumn Winter 2010 based on the analysis of Zara and her competitors. There is no doubt that Zaras sweaters have high competitive ability on price and quality in the market, this proposal will focus on discussing the feasibility of the proposed style with appropriate range planning. Since Zaras marketing strategy is based on the fast feedback from local shop manager, therefore, I will develop a capsule range based on the UK market research. This collection is planned to be the main item of winter which are inspired by three main themes in relation to Zara Womans lifestyle. In this season, Marco-environment have large influence on the decision making about product range planning, price architecture and profitability while Zara are good at controlling its Microenvironment . Refering to Figure 1, it shows the elements which are adapted from Philip Kotlers Marketing environment figure.(Easey, 2009, Fig 2.3). Here, we can see economy is the most important factor on conducting this proposal and the climate are highly affecting the sale of knitwear as well.

Fig. 2 The marketing environment Easey, 2009. Fashion Marketing, 3rd edn., p.27 United Kingdom: Wiley Blackwell

Zaras key consumer and social economic trends

Marco-environment factors are always highly affecting the consumer behavior.

Demographic trend- aging population According to the report -British Lifestyle 2009 by Mintel(2009), we can see the ageing population. The children of Baby Boom Generation moving into 25-34 age range from 2009. Therefore, Zara are having higher customer pool now. Fig. 2 Total population change, by age, 2004-09 and 2009-14 by Mintel -British Lifestyle 2009 (2009) Social trend-The rise of officewear According to Bill Webb, marketing is the idea has predominated that the proliferation of product choice meant that successful retailers had to identify and understand their market, and target a specific segment within it with a unique selling proposition, that is something that provided more added value to that particular group of customers than any available alternative. (Hines and Bruce, 2007, pp.107-108), therefore, the increase demand of officewear can help the sales of sweater since it is always a transition item in office as a part of Officewear. Recently, the report of Mintel(2009) reported that there are almost three in ten of the working adults (ABC1C2 socio-economic group) wears the mix of casual wear and formal wear, and three in ten

wears casual wear only. More formal style is coming back because of the unstable job market, and the mix and match with conventional and fashionable style are assisting them to suit the job individuality, giving a more professional, contemporary image and secure employment. As the workplace dress code are more relaxed now, more variety of officewear are expected and sweater can help finetuning the style in different working occasions. And Mintel(2009) also tells that Zara is one of the shops that Financial Services/IT/Technology/Legal used to buy clothes that are typically worn to work. Therefore, Zara has its market on smart casual officewear. Resulted with existing of commoditization on officewear, customer are tend to have more smart investment in this coming season.
Hines, T, Bruce, M, 2007. Fashion Marketing Contemporary issues. 2nd Edn. Hungary: Elsevier Ltd. pp.107-108.

Mintel, 2009. Fashion Retailing-UK [online]. Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results /show&/display/id=395673/display/id=483747#hit1[15January2010] . Mintel,2009. Consumer Officewear. Officewear - UK [online]. Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results /show&/display/id=394669/display/id=500868#hit1 [Accessed 18 January 2010] Economic trend- Unemployment and slow recovery After the economic tsunami, the rise of unemployment rate keep going up to 7.8% in the second quarter of 2009 (Mintel, 2009), the consumer behaviors become more conscious and long-term security as a result. However, the recent Nationalwide Consumer Confidence Index in Mintel Report showing the tendency of recovering confidence. A return to growth in GDP was expected in the last quarter of 2009 which brings the positive message to the market in 2010 as well.

Mintel(2009). Broader Market Environment Economic Impact. Officewear - UK [online]. Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/displa y/id=394669/display/id=500865#hit1 [Accessed 18 January 2010] Fig.3- Numbers of adults of working age who are unemployed, January 2004August 2009 by

National Statistics/Mintel(2009)

Environmental Trend- The Changing Role of Sweater There are few reasons make sweater have a bigger market comparing to other product criteria. Sweater is knitted garments which have its function as a transition item. Reviewing recent seasons, there are more and more knitted coats offered because of the climates changes, especially after the world leaders meeting in Copenhagen for the UN Climate Change Conference. The temperature is rising, according to the Met Office(2009) of UK Government, the UK has experienced nine of the 10 warmest years on record since 1990. Under the awareness of global warming, people tend to wears layers with light weight sweaters rather than heavy winter coats which offers higher flexibility.

As a result, Risk makes Chance! Since Zara are targeting the middle market, the decrease of profit from original customer is inevitable. However, it seems that Zara are capable to weather this economic downturn with the highly developed supply , prompt response, keep changing the collection and high stock turn on a regular basis, thus, this economic crisis created another opportunity to reach the high-end premium customers. Therefore, Zara can wider its market with a slightly change on targeting a higher market positioning.

In order to archiving a better sale in winter 2010, this proposal will discuss about the recent key consumer and social economic trend which are reflecting the consumer buying behaviour and supporting the new designs for Zara woman. Knitted garments always dominates in winter, I hope the collection can fit the need of Zara woman and they feel confident and comfortable with them.