University Marketing Report: Zimmermann Fashion Brand Analysis

This report provides an in-depth analysis of Zimmermann, an Australian fashion brand, examining its marketing challenges and strategies. The report begins with an executive summary outlining the key areas of focus, including the identification of Zimmermann's marketing problems, such as entering foreign markets like the USA and adapting to different climatic conditions. It delves into market segmentation, specifically behavioristic, psychographic, and geographic segmentation, and how these segments relate to the marketing mix elements (product, place, price, and promotion). The report also explores Zimmermann's pricing strategy and its alignment with market trends. Furthermore, it highlights how Zimmermann has successfully established itself as a prominent brand, reaching a wide consumer base. The report concludes with an assessment of the company's current standing and its effective implementation of various marketing elements.

Running head: APPLICATION OF MARKETING KNOWLEDGE
Application of Marketing Knowledge
Name of the University
Name of the Student
Author note

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Executive Summary
The chief purpose of the report is to identify the specific problem of Zimmermann- a fashion
store based in Australia. The second part of the report discusses the various market segmentation
applied by the company. It also highlights the elements of the marketing mix that is the four Ps
and how the different bases of segments differ from each other based on the marketing mix. The
third part lays stress on the pricing strategy of Zimmermann and its focus on the market trends.
Zimmerman has established a good name for it over the decades and has reached out to a wider
consumer circle in a very short time. The report concludes with the status of the company and its
successful implementation of the different marketing elements.

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Table of Contents
Part A: Marketing Problem of Zimmermann...................................................................................3
Part B3: Behaviorist, Geographic and Psychographic Segmentation of Market.............................4
Introduction..................................................................................................................................4
Behavioristic Segmentation.........................................................................................................4
Psychographic Segmentation.......................................................................................................5
Geographic segmentation............................................................................................................6
Marketing Mix.................................................................................................................................6
Difference between three market segments based on Marketing Mix elements.........................7
Conclusion.......................................................................................................................................8

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Part A: Marketing Problem of Zimmermann
Zimmermann- a name that got associated with resort wears and particularly swimwear for
the past 26 years. Founded in 1991, by the sisters Nicky and Simone Zimmermann in Sydney,
Australia, the brand has reached the elite colonies of London, Paris and New York.
It is vital for any company to identify and go to the depth of the problems faced by it to
stay alive in the market. In order to solve a problem, it is necessary to define clearly, what the
problem is (Baker 2014). With the increasing impact of globalization, reaching out to consumers
worldwide has become easier on one hand but on the other, it has also increased the challenges.
In this age of globalization, entering a foreign market and making a mark has become a big
challenge for a brand like Zimmermann.
In the year 2011, the first store of Zimmermann was opened in the United States of
America. It was a big step for the Australian fashion giant but it also created a political tension in
the fashion world of America, as many were not willing to accept a foreign brand. The USA is
one of world’s largest fashion hubs and there are plenty of fashion brands already for the
consumers to choose (Steenkamp 2014). Moreover, there is a difference in the climatic
conditions of both Australia and the US and hence it is difficult to create a clothing line that
caters to the needs of both populations. To a big name like Zimmerman, it is vital to address
these issues to expand their business not only in the US but in other countries as well.
Nonetheless, Zimmermann did succeed in establishing a name for itself with its unique collection
of ready-to-wear attires and swim wears in particular.

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Part B3: Behaviorist, Geographic and Psychographic Segmentation of Market
Introduction
An organization, a company or a firm establishes itself through various processes that
define the market. It is essential for any company to first identify the target consumers suitable
for its product. This can be done by proper segmentation of the market that is dividing the
consumers into different groups as per their choices and needs. Earlier, cost was the only base for
the production and distribution of commodities rather than consumer satisfaction (Boone and
Kurtz 2013). The scenario has changed completely in the present world where companies try
everything to lure and keep customers for longer time. The market segmentation is an important
tool for this purpose, which has been realized by all.
There are different ways to segment the market, some of which include behaviorist,
psychographic, geographic and demographic. The report discusses the three main segments that
are behaviorist, psychographic and geographic (Wedel and Kamakura 2012).
Market segmentation is done in a way that it satisfies the elements of marketing mix as
well (Hassan and Craft 2012). It also defines how the different bases of market segments are
distinct from each other. The given report analyzes the various segments and also explains the
basic differences between them as per the marketing mix elements.
Behavioristic Segmentation
The consumers are grouped depending on their unique behavioral pattern they show
while purchasing any product. This grouping of consumers based on their behavioral pattern and
creating a product to match it falls under the behaviorist segmentation of the market. The

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company observes the consumer behavior like what they consume more, how and where they
spend their money, their style of living, their priority amongst others (Li, Li and Kambele 2012).
There are several forms of behavioral segmentation such as the buying on occasion. It
implies that the consumers buy certain products only on some particular occasions. The next is
the status of the user that a consumer’s loyalty to a certain product. To attain consumer loyalty,
companies first target new consumers and devise ways to keep them. This depends upon the
services provided to the consumer (Alexandra 2013).
This base of segmentation is best suited for a brand like Zimmermann especially the
spending and lifestyle of the consumers. Mostly, the comfort seekers get attracted towards a
brand like Zimmermann as it offers a range of comfortable clothing. Zimmermann’s prime target
is the women worldwide but apart from that, they have also focused on the different buying
patterns of the women. To provide an instance, it was the first brand in Australia to introduce a
collection of printed lingerie in 2001.
Psychographic Segmentation
The more the world is moving ahead, the more ways of attracting consumers are being
exposed. The psychographic segmentation is an example of such a trend. Marketers have found
ways to read the psychology of the consumers and then create products that best suits them
(Gunter and Furnham 2014). This type of segmentation promotes the fact that people’s attitudes,
their standard of living and their personal traits influence their buying decision.
Lifestyle, social status, attitudes, values and personality are the chief factors define the
psychographic segmentation. The fashion industry utilizes this segmentation mostly as clothing
is one of the most important aspects of a consumer’s lifestyle. In case of Zimmermann, the above

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statement is best suited. Since its inception in 1991, the brand has catered to the needs of women
with distinct personality across Australia and most of the western world (Zimmermannwear.com,
2017). The company was launched a separate line of clothing for the kids thus targeting the
psychology of the fashion loving mothers. This move also displayed the ability of the company
to discover new market.
Geographic segmentation
This type of segmentation is done by gathering and analyzing the information as per the
geography of the consumer. Geographical segmentation means the division of consumers based
on the region, city, country, climate and population. It is one of the most common and
fundamental market segmentations. Geography is a key aspect that companies keep in mind
while launching or selling their product (Sandy, Gosling and Durant 2013).
The location of consumers plays an important role in defining a product’s success. To
give an example, Zimmermann’s swimwear collections cannot be successful in the middle and
south East Asian countries as the society there is conservative and orthodox. In addition, the
taste for fashion differs from region to region even of the same country. Climatic conditions of
different areas also influence the buyer’s choice. Buyers belonging to a hot and humid area might
not prefer clothes made of synthetic or other repulsive material. The choice of buying also
depends upon the population of an area. Zimmermann, for instance targeted the US for its first
overseas store, as it knew that the larger part of the population would prefer the kind of clothes
they make.

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Marketing Mix
In the world of marketing, certain principles govern the way marketing is done.
Marketing is an ever-growing field and many changes have occurred since. To define the
marketing mix in simple language, it is an instrument used by marketers and businesses alike to
help decide manufactured goods or brand offering (Schiffman et al. 2013). E. Jerome McCarthy
first proposed the four Ps of marketing mix in 1960.
Later on, however, with the rise in competition and options, the four Ps were extended to
seven Ps. The initial four Ps were- Product, Place, Price and Promotion. After Booms & Bitner
proposed the extended and updated version of marketing mix in the year 1981, three more
additions were made to the four Ps. These included, People, Processes, and Physical evidence
(Gordon 2012).
Difference between three market segments based on Marketing Mix elements
The different segments of markets differ from each other although there end desire is the
same- to attract consumers especially in terms of the marketing mix elements. Geographic
segmentation of market cannot be possible without identifying the appropriate Place for selling a
product. According to the principle of marketing mix, the availability of any product must match
the consumer’s convenience. However, in today’s world, with the advent of e-commerce, the
boundaries have blurred and a wide range of products could be availed from anywhere in the
world. Still, there are limitations as in one cannot buy a product online from another country.
The companies must keep that in mind and create products that gratify the needs of consumers of
a particular geographic area.

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Behavioral Segmentation, unlike geographic segmentation, focuses more on the buying
behavior of the consumers (Solomon 2014). Companies create the Product- the first marketing
mix element- in a way that it fits the task expected by the consumer. In simpler words,
consumers seek benefits from every product they use and companies study this behavior of the
consumers and make specific products based on their research. Through the product, companies
can not only acquire consumers but also earn their loyalty towards it.
The Psychographic segmentation differs from other two bases in the sense that it targets
the personal traits of the consumer. In order to sell a product, a company has to promote it first
and in order to promote a product; the company has to understand the psychology of its
customers. Every customer has a unique personality and companies via promotions target that
personality (Kahle 2014). There is a wide spectrum of platforms for companies to promote their
product nowadays, the most effective being the social media. The promotional tool must be
applied to convey the company’s message to the correct consumers in a manner that hits their
emotional quotient. This cannot be achieved without the psychographic segmentation.
PART B (PART B7):-
Pricing strategy
Pricing is an important component in a marketing mix strategy. Pricing is considered very
important since it ultimately decides the placing or positioning the product. Pricing also has
implications on the other components of marketing mix such as people, promotion and others
(Gordon 2012). Pricing is the only element, which in actual sense influences the turnover rate of
a firm. According to some marketing experts, pricing is supposed to be a very onerous concept.
Faulty pricing can lead to drastic reduction in the sales ratio of the firm. A successful firm must

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design their pricing strategy upon some important factors. Some of the important factors are the
prevailing competition in the market, the business motives of the firm, the prospective customers
of a particular product and their inclination to purchase the product. There are many concepts of
pricing strategies available to the marketing experts. Generally, a firm chooses a pricing strategy,
which is most compatible with the business objectives of the firm (Nagle, Hogan and Zale 2016).

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Current pricing strategy of Zimmermann
A confetti dress by Zimmermann

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Zimmermann is an Australian fashion company. The two sisters Simone Zimmerman and
Nicky Zimmerman established the company in the year 1991. Going on still strong after a period
of two decades, Zimmerman has positioned itself as a notable fashion accessory company both in
Australia and worldwide. Zimmermann is famous for their effortless swimwear and ready to
wear collection. Women of all age love Zimmermann because the brand’s collections have
stayed committed to their authentic, cosmopolitan and passionate designs. Zimmermann clothes
are stylized to be in harmony with the breezy and chic Australian style ("ZIMMERMANN | The
Official UK Website Of The Designer Collections", 2017).