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.
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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.
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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
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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
