Zara Home: Market Research, Plan, and Analysis - 911 Words | Research Paper Example (2024)

Proposal for Zara

Zara Home was chosen as a store to exhibit the artworks of emerging UAE artists because the company produces designs of the Oriental style and will be interested in strengthening relationships with its GCC customers. Digital photography artwork is the most suitable product to display at Zara Home because it does not require much space and can be changed as frequently as possible since the store turns around its stock very frequently. It is proposed for Zara to choose the digital artwork as the main product because they are more likely to provide the value that the company seeks – as sometimes are sold out, they will be replaced by newer ones to facilitate the turnover of stock.

SWOT Analysis of the Collaboration

• Strength: the collaboration between Al Serkal and Zara Home will strengthen the company’s presence in the UAE.
• Weakness: artists will have to account for the high turnover of products sold in stores.
• Opportunity: Zara Home has a growing market potential, which means that if the selling of artworks is successful, they will be sold in all GCC stores.
• Threat: there is a problem of customers not liking new products, which calls for a more meticulous selection of the display.

West Elm Proposal

Because West Elm aims to capture a larger audience in GCC countries, it is proposed to collaborate with the shop. Hand-made sculptures and pottery will be the most suitable for West Elm because their stores include multiple homeware items to complement the display of furniture available for purchasing. The collaboration with Al Serkal will offer West Elm a unique opportunity to include culture-specific items in the selection of their stores and attract a new segment of customers that were previously uninterested in the company’s products. These customers support their cultural heritage, which is a unique selling point that West Elm did not have previously.

SWOT Analysis of the Collaboration

• Strengths: the collaboration will present West Elm in a new light because the company has never tried region-specific product marketing.
• Weaknesses: competition from other stores is the main problem because other companies offer similar designs at lower prices (e.g., Zara Home).
• Opportunities: with succeeding in the US and Europe, West Elm has significant expansion opportunities in the Middle East, especially regarding selling GCC-made products.
• Threats: because of the high prices of unique designs, competitors copy items and sell them for less.

Marina Home Proposal

Because Marina Home is a well-known luxury homeware brand and is native to the UAE and GCC in general, it fits the collaboration with local artists that Al Serkal represents. Both photography and hand-made pottery can be displayed at Marina Home locations; however, it can be beneficial to allow store managers to choose the most suitable artworks that will align with the style and aesthetic of the stores. The unique opportunity that Marina Home will get through collaborating with Al-Serkal is offering their regular customers products that have been made by their compatriots. Wealthy customers who value their culture are more likely to buy the designs of UAE artists regardless of their price. Since the store is given freedom in choosing items for display, Al Serkal will seek the most unique and valuable pieces to offer.

SWOT Analysis of the Collaboration

• Strengths: Marina Home is a UAE-native company, which makes it widely successful in the region, and offering customers products made by their compatriots will strengthen its presence.
• Weaknesses: high prices may be a challenge in making sure that new items are sold.
• Opportunities: in the case of the collaboration’s success, unique UAE-made products can become a permanent aspect of Marina Home stock.
• Threats: the items may not fit into the style of Marina Home.

Summary of Collaborations

Financially, it is proposed to work with all of the mentioned home design stores on a fifty-fifty basis, which means that half of the revenue will go to emerging artists whose works were sold and Al Serkal. It is suggested to leave the decision on pricing to stores’ managers because all products should be aligned with companies’ values. For instance, a $500 photography artwork will be out of place in Zara Home or West Elm, while Marina Home sells luxurious items and may choose to set high prices. For instance, if an artist that produces digital photography artwork indicates that his or her piece should be sold for at least $70 to cover all expenses for production and Al Sarkal costs as well make a minimum profit, the design store will mark it up by 100% to earn $70 itself, based on the 50%-50% agreement. According to the profit margin estimations, Al Serkal will make the smaller portion of the profit: 50% goes to Zara, West Elm, or Marina Home while the rest 50% is split between the artist (45%) and Al Serkal (5%). Such a distribution of income is fair because the shops used for their coverage and popularity get the most benefit from the collaboration with Al Serkal.

Regarding provided spaces for showcasing artworks, Al Serkal Culture Foundation will negotiate several conditions. First, the works will be lit in the same way that other items in stores are to attract customers’ attention to them. Second, artworks will be showcased in the areas that shop managers consider the most beneficial for selling them. Third, the names of the artworks’ authors will be included so that customers could see that their compatriots designed and made them, thus sparking interest in buying them.

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