A PROJECT REPORT

ON
CONSUMER BEHAVIOUR OF ZARA

BY

YASHIKA R. SHAH
TY-BBA (2019-20)

IN PARTIAL FULFILLMENT OF
Bachelor of Business Administration
MIT World Peace University

PUNE: 411038
 CERTIFICATE

This is to certify that Miss YASHIKA R. SHAH has successfully completed the project
work titled CONSUMER BEHAVIOUR OF ZARA in partial fulfillment of requirement
for the award of Bachelor of Business Administration prescribed by the MIT World Peace
University

This project is the record of authentic work carried out during the academic year
2019-20.

Prof. Pradnya Gaikwad Dr. Kalyan Swarup

Project Guide Dean School of Management (UG)

Internal Examiner External Examiner

 DECLARATION

I, Ms. YASHIKA R. SHAH hereby declare that this project is the record of authentic work
carried out by me during the academic year 2019-20 and has not been submitted to any other
University or Institute towards the award of any degree.

Signature of the student

Yashika R. Shah
 ACKNOWLEDGEMENT
I would like to thank MIT WPU & Dr. Kalyan Swarup for giving us an
opportunity to conduct a research & for giving us an experience of how a
research report is prepared.
I would like to express my sincere gratitude to my advisor Prof. Pradnya
Gaikwad for the continuous support of my study & research, for her
patience, motivation, enthusiasm & immense knowledge. Her guidance
helped me in all the time of research & writing of this project. This report
would not have been possible without the guidance & insights of Prof.
Pradnya Gaikwad who helped us greatly by explaining the topic in detail to
us & aided us in preparing the questionnaire. I would also like to thank my
colleagues who helped by clarifying my doubts & supporting me & for
taking out time to fill the questionnaire which allowed me to carry out this
research. All in all it’s been an experience preparing this report & I would
like to thank everyone who supported me through it.

YASHIKA R.SHAH
 ABSTRACT

Consumer Behaviour involves the psychological processes that consumers go through in

recognizing needs, finding ways to solve these needs, making purchase decision, interpret
information, make plans & implement these plans.
The fashion market has evolved over the years & has become well-known for its quality,
competitive price and modernity and a very good example of this is Zara.
The present report focuses on understanding, what exactly is the perspective of the
customers or general public that drives them to Zara. In today’s scenario there are various
reasons to purchase products form a particular brand. But according to requirements, people
prefer different brands to purchase any product. So based on various factors, I covered all the
reasons for one to shop at Zara. The questionnaire will help us to understand the strengths &
weaknesses of the brand but more importantly it will help us understand the reason for the
success of the brand from the general public’s perspective. Specifically, we examine how
emotional and cognitive responses to purchase any product can influence consumers'
intention and their likelihood to purchase from any other brand over the trusted one.
A questionnaire-based empirical study is used to test this behaviour of consumers particularly
for the brand Zara.
 INDEX

SR. TITLE PAGE NO.

NO.
1. ABSTRACT 5
2. THEOROTICAL BACKGROUND 8-11
3. OBJECTIVES 12
4. SCOPE 13
5. REVIEW OF LITERATURE 14-16
6. INTRODUCTION TO RESEARCH METHODOLOGY 17-26
7. COMPANY PROFILE 27-29
8. PROJECT DESIGN 30-31
9. ANALYSIS OF DATA & FINDINGS 32-49
10. INTERPRETATION 50
11. LIMITATIONS 51
12. RECOMMENDATIONS 52
13. CONCLUSION 53
14. APPENDICES 54
15. BIBLIOGRAPHY 55

LIST OF TABLES / GRAPHS / CHARTS

SR.NO. TITLE PAGE NO.
1. Showing description of Personal profile of 32
the respondents
2. Showing description of occupation 33
3. Awareness of Brand 34
4. Ever Shopped 35
 5. Shopping Frequency 36
6. Trendy 37
7. Product Type 38
8. Satisfaction 39
9. Reason 40
10. Shopping Preference 41
11. Price 42
12. Spending Pattern 43
13. Perception 44
14. Social Media 45
15. Store Preference 46
16. Role of Brand 47
17. Store Layout 48
18. Competitors 49
 THEOROTICAL BACKGROUND OF CONSUMER BEHAVIOR

Consumer behaviour is the study of how individual customers, groups or organizations select,
buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to
the actions of the consumers in the marketplace and the underlying motives for those actions.
Marketers expect that by understanding what causes the consumers to buy particular goods
and services, they will be able to determine - which products are needed in the marketplace,
which are obsolete, and how best to present the goods to the consumers. The study of
consumer behaviour assumes that the consumers are actors in the marketplace. The per-
spective of role theory assumes that consumers play various roles in the marketplace. Starting
from the information provider, from the user to the payer and to the disposer, consumers play
these roles in the decision process. The roles also vary in different consumption situations;
for example, a mother plays the role of an influencer in a child’s purchase process, whereas
she plays the role of a disposer for the products consumed by the family.

NATURE OF CONSUMER BEHAVIOR –

 Influenced by various factors -

1. Marketing factors such as product design, price, promotion, packaging, positioning
and distribution.
2. Personal factors such as age, gender, education and income level.
3. Psychological factors such as buying motives, perception of the product and attitudes
towards the product.
4. Situational factors such as physical surroundings at the time of purchase, social
surroundings and time factor.
5. Social factors such as social status, reference groups and family.
6. Cultural factors, such as religion, social class—caste and sub-castes.
 Undergoes a constant change –
Consumer behaviour is not static. It undergoes a change over a period of time
depending on the nature of products. For example, kids prefer colourful and fancy
footwear, but as they grow up as teenagers and young adults, they prefer trendy
footwear, and as middle-aged and senior citizens they prefer more sober footwear.
The change in buying behaviour may take place due to several other factors such as
increase in income level, education level and marketing factors.
 Varies from consumer to consumer –
1. All consumers do not behave in the same manner. Different consumers behave
differently. The differences in consumer behaviour are due to individual
factors such as the nature of the consumers, lifestyle and culture. For example,
some consumers are technoholics. They go on a shopping and spend beyond
their means.
2. They borrow money from friends, relatives, banks, and at times even adopt
unethical means to spend on shopping of advance technologies. But there are
other consumers who, despite having surplus money, do not go even for the
regular purchases and avoid use and purchase of advance technologies.
 Varies from region to region & country to country -
1. The consumer behaviour varies across states, regions and countries. For
example, the behaviour of the urban consumers is different from that of the
rural consumers. A good number of rural consumers are conservative in their
buying behaviours.
2. The rich rural consumers may think twice to spend on luxuries despite having
sufficient funds, whereas the urban consumers may even take bank loans to
buy luxury items such as cars and household appliances. The consumer
behaviour may also varies across the states, regions and countries. It may
differ depending on the upbringing, lifestyles and level of development.
 Information on consumer behaviour is important to the marketers –
1. Marketers need to have a good knowledge of the consumer behaviour. They
need to study the various factors that influence the consumer behaviour of
their target customers.
2. The knowledge of consumer behaviour enables them to take appropriate
marketing decisions in respect of the following factors:
a) Product Design / Model
b) Pricing of the product
c) Promotion of the product
d) Packaging
e) Positioning
f) Place of distribution
 Leads to purchase decision –
A positive consumer behaviour leads to a purchase decision. A consumer may take
the decision of buying a product on the basis of different buying motives. The
purchase decision leads to higher demand, and the sales of the marketers increase.
Therefore, marketers need to influence consumer behaviour to increase their
purchases.
 Varies from product to product –
Consumer behaviour is different for different products. There are some consumers
who may buy more quantity of certain items and very low or no quantity of other
items. For example, teenagers may spend heavily on products such as cell phones and
branded wears for snob appeal, but may not spend on general and academic reading.
A middle- aged person may spend less on clothing, but may invest money in savings,
insurance schemes, pension schemes, and so on.
 Improves Standard of living –
The buying behaviour of the consumers may lead to higher standard of living. The
more a person buys the goods and services, the higher is the standard of living. But if
a person spends less on goods and services, despite having a good income, they
deprives themselves of higher standard of living.
 Reflect Status –
The consumer behaviour is not only influenced by the status of a consumer, but it also
reflects it. The consumers who own luxury cars, watches and other items are
considered belonging to a higher status. The luxury items also give a sense of pride to
the owners.
 OBJECTIVES

ZARA is one of the biggest fashion brands in the world. To be able to create a company this
big is every businessman’s dream. The popularity enjoyed by Zara can be matched by only a
few. The objective is to understand, what exactly is the perspective of the customers or
general public which drives them to Zara.

 To study the current Indian market for clothing brands.

 To analyse the relationship between a specific brand & its buying behaviour.
 To assess the factors influencing the buying behaviour of the consumers.
 To understand the psychological mechanism that guides the choices of consumers.
 SCOPE
Major fashion retailers want to know how consumers make buying decisions & what
influences those decisions. Brands like Jealous 21, Mango, Forever21 might not be as big as
Zara, but the annual revenue of Zara doesn’t decrease the value of consumer behaviour.

The reason behind conducting this research is to understand the behaviours or patterns that
consumers follow before making a purchase from no other brand but their trusted one. You
can only count repeat purchases under the umbrella of consumer behaviour. This research
will also help us understand how customers interact with and use Zara’s products.The
questionnaire will answer to questions how often do the customers buy products from Zara &
how much are they willing to spend. It also helps us understand consumers mind and attitude
towards the brand & in what situations do they shop from Zara. It will help us understand the
lifestyle & personality of consumers. It will help us categorize different customers &
segregate them on different parameters.

Social media has taken over everything. It will help us understand how engaged are the
customers with the brand. If they’re following Zara’s pages on any social media platform.
Not only that, but it will give a broad view of how trend-driven customers are and how well
they catch-up with the brand. Consumers continually synthesize all the information they have
about a company to form a decision about whether the brand offers value.

The main reason behind taking the topic CONSUMER BEHAVIOR OF ZARA is to
understand how well is the brand perceived by the audience.

This research is of the most use to the brand Zara since understanding your customer and
delivering the needs is very important to create a loyal customer base. It will help Zara to
understand which strategy of theirs is failing and what can & should be done about it
understanding the behavioural patterns and emotional attachment of the consumers towards
the brand. It is important to have a good brand image & employ strategic marketing strategies
to be able to increase market share & revenue & the only possible way to do that is by
attracting & capturing as many customers as possible.

Being a marketing and a management student, this research will help me understand how
important it is to understand the consumers and their needs, tastes, preferences & attitude. It
will give me immense knowledge on how to deliver their needs & educate me about different
marketing strategies
 REVIEW OF LITERATURE

Garments, clothing items, accessories can be replicated easily but the choice of fabrics, cut,
range, sizes, pricing and ease of availability vary from one company to another depending on
their ability to manage the linkages beyond the environs of their immediate business and
expanding to their suppliers and the distributors at the two ends. The success of a company
and especially a brand like Zara depends on their key product offering, the customer centric
approach to market them while differentiating with others who are competing in the same
space.

Zara is a well-known brand and has been able to create an extremely huge space for itself in
the market. There are number of reasons due to which the company is able to create such an
impact on the world. The first and the most important factor that they kept in their minds was
the behaviour of the buyers. To create a good and effective business strategy, it is important
for the different business enterprises to study and analyse the behaviour of their buyers and
consumers properly. However, at the same time, it becomes extremely difficult for the
management and the firms to ascertain the exact needs and wants of their consumers. This is
because the choices of the consumers are based on different factors, like, cultural factors,
personal preferences, social factors etc. Due to these reasons it becomes impossible for the
vendors to identify as to why a particular customer chooses one brand over the other and
what is it that the marketing team and the management of the enterprise needs to do so that
the they are able to attract the maximum customers, because if they fail to do so it will result
into them failing in the marketing which would eventually impact its growth. Lin & Wang
(2006) states that the marketers today try to manipulate the different marketing strategies so
that they can easily identify what their target consumers want and what is that they do not
want. Koubaa (2008) identified that the name of the brand plays and extremely important role
for customers in ascertaining their choices. It has been seen in a lot of studies that there are
certain firms which do not give much importance to the brand name; rather they put more
focus on providing the people with goods at low prices and other times on making their own
profits. What these firms don’t understand is that the consumers and buyers depend on the
name of the brand to evaluate the products that the organization has to offer.  According to
Lee (2014), consumers make decisions while keeping in mind an expected result for their
decisions. Agreeing to this Ling, Hwang & Salvendy (2007) stated that the consumers have
the ability to ascertain the results of decisions that are uncertain and hence they select that
decision which provides them with the best outcome. Therefore, according to this statement
the consumer will look for those brands which will give them the most satisfaction and will
help in maximizing their utility. In a research conducted by Thaler (1985) it was found that
brand name influences the behaviour of the consumer adversely. For example if the
consumers wanted to buy a car then they would go in for cars which were associated with
popular brand names. The cars with brand names which are not known to the people did not
have too much of demand. This is because they do not want to take the risk of trying new
brands. Therefore, it is clear from the study that brand names held a very important place in
the minds of the consumers. When we talk about Zara in terms of brand name, it indeed has a
very high position solely because of its name. The buyers in general have a lot of trust in
them and they have been able to capture a huge market share as well.

Looking at all these different aspects of the marketing mix it can be said that all these aspects
are interconnected and even a slight defect in any one of these factors will also affect all the
other factors. Also, since the marketing mix comprises of four different components, hence
these components can be altered by different business firms to get the best results out of this
concept of marketing mix. In addition to all these components it is essential for an
organization to have the full support of their top management to carry out the marketing mix
in an efficient manner.

The next aspect that is important for the success of any brand is loyalty. According to Da
Silca and Alwi (2006) loyalty simply refers to the positive feedbacks, repurchases of goods
and services or anything that introduces new customers or makes the current customer return
to the brand. Burton (2002) states that, loyalty is more of an attitude than a behaviour.
However, customer loyalty is the commitment that people have towards a particular brand.
Customer loyalty is an extremely important aspect for the growth and success of an
organization and it is important for the different brands to make sure that they provide their
consumer with the best of services and also that they create an emotional bond with them
through these products and services only so that they are able to retain all their best customers
and also attract new customers for their brand or organization. However, it is to be kept in
mind that attracting new customers is a tedious task and it will be beneficial for the brand if
they are able to retain and satisfy their existing consumers because it will prove to be more
profitable for them than attracting new customers to the brand.
Zara is not a brand that has come up in the recent years and also it is definitely not the brand
which delivers bad products or services. Zara is a world class brand and has all the qualities
that are required for attracting new customers and retaining the existing ones. Their behaviour
towards their customers has ensured that they return to the brand and continue to purchase
from them only. The customer loyalty that they have built over the years has proved to
extremely beneficial for them because their existing consumers were able to give a positive
feedback about the products and services of Zara and this led to more and more people
shopping from Zara. Since, they always gave the top priority to their customers so it paid
them well and they have been growing and growing without carrying the baggage of
disappointed consumers.

All these aspects that have been talked above are connected to each other in a number of
ways. Fry (2002) found at that the image of a particular brand has a direct effect on the
loyalty of the consumers. In fact the image of a brand has a direct or indirect effect on almost
every aspect. This is because everything begins with the perception that people have about a
brand. If the brand has worked hard enough and is able to create a good perception in the
minds of the consumers then everything will follow and if they are unable to do so then the
vice- versa would happen.
 INTRODUCTION TO RESEARCH METHODOLOGY

In today's world, research has become an important activity in overall social life.
Research methodology provides a framework to conduct a research. Research in common
parlance refers to a search of knowledge. Research is a scientific and systematic search
for pertinent information on a specific topic. Hence, research methodology is a science of
research & study of research methodology provides a way and guiding principles for
research.
Research is known as the provider of the specific knowledge needed to succeed in
researching and utilizing the best and most appropriate data for decision making. It is
collection of information on certain ideas or theories to gain better knowledge on
something. Research can be done through reading source-material or performing
experiments. It will also provide the skills needed to effectively communicate research
results to a specific audience for maximum impact and effective decision making.

Meaning of Research:
Research is a systematic structure of investigation undertaken in order to discover new
facts. It provides a structure for decision-making. Research is an inseparable part of
human knowledge. It is a process that takes the assistance of the scientific method in
solving problems. Research is a way of thinking.
Definitions of Research :
1) Redman and Mory:
“Research is a systematised effort to gain new knowledge.”
2) John Best:
“Research is a more systematic activity directed towards discovery and the development
of an organised body of knowledge.”
Characteristics of Good Research:
The characteristics of a good research are as follows:
Systematic
Logical
Empirical
Replicable
Analytical
Methodical

Objectives of Research:
The following objectives which encompass most of the researches are listed. However, these
are not comprehensive and some may be even overlapping:
1) Development of Knowledge:
Business studies include the studies of business transactions or business phenomenon.
Business research aims at collecting a systematised body of knowledge about the business
problem.
2) Scientific Study of Business Life:
Research is an attempt to acquire scientific knowledge about the business world and
problems. The researcher makes study of collective processes, changes, business structure
and business processes, etc.
3) Clarification of Facts:
Generally, the purpose of carrying out research is to either confirm the existing fact or
improving the existing one or creating something new. The rationale behind every research is
to suggest the possible solution to issue concerned with current or future period.
4) Improvement in Quality of Business Life:
One of the most practical objectives of business research relates to improvement of quality of
business life in several ways. Its findings can provide decision makers with proper guidelines
for policy making.
5) Business Control and Prediction:
Through business research, we make study of business problems, events and the factors that
govern and guide them. Apart from these, we also present an analysis of business situations
in the scientific manner. We study business relations and their dynamics.
6) Appearance and Presentation of Novel Situation:
In the business field, new problem crop up before us every day. These situations and
problems demand solution. The business researcher has to take the research in order to know
the causes of these problems and novel situation and find out their solution.
7) Investigation and Verification:
The business research does not confine ourselves only to finding out the facts and solutions
but also try to investigate and verify the facts that have come to knowledge.

Importance of Research:
Following figure reveals importance of research in various areas.
1) Marketing Decisions:
Research plays crucial role in taking sound marketing decisions. Research tools are applied
effectively for studies involving demand forecasting, consumer buying behaviour, measuring
advertising effectiveness, media selection and new product potential.
2) Production Decisions:
Research helps to producer in taking production decisions. Research enables an organisation
to decide on what to produce, how much to produce, when to produce and for whom to
produce in the field of production.
3) Helps Banking Institution:
Research is useful to banking institution. They have found it useful to setup research
departments for the purpose of gathering and analysing information both for their internal
operations and for making in-depth studies on economic conditions of business.
4) Foundation for Government Policies:
Research provides basis for all government policies in our economic system. Research is
useful in economic planning. It also helps the government in preparing budget and collection
of information on the economic and social structure of the nation.
5) Human Resource Department:
Research helps human resource department in several ways. Research is useful to study wage
rates, incentive schemes and cost of living and employment trends. Research is effectively
used in manpower planning.
6) Solving Problems of Business and Industry:
Research plays significant role in solving problems of business and industry. It helps to
business and industry through providing information required for business decisions.
7) Guiding Social Planning:
Social research has a crucial role to play in guiding social planning. Research helps social
planning through providing a systematic knowledge of the societal resources and liabilities of
the people and their culture.
8) Welfare Reforms:
Appropriate welfare reforms can be introduced in the society only when social research helps
in finding out their need and necessities. State can introduce legislative measures with the
help of the findings of social researcher.
9) Guiding Social Growth:
The success of planning for social development depends to a great extent on our intimate
knowledge of our own society and also of other societies. Social research is initiating and
guiding social growth on proper line and towards the cherished goal.
10) Improvement in the Tools and Techniques:
Every social research helps in improving old techniques and inovating the new ones. Existing
tools of research are modified. There is a great chance of improvement in the methodology
and its tools in social research than in any other discipline.
Steps in Research Process:
The process of research involves the following steps:

1) Formulation of Research Problem:

The formulation of a general topic into a specific research problem is the first step in a
scientific enquiry. It must be influenced by requirements of the scientific procedure.
2) Survey and Review of Literature:
This is the second step in research. After formulation of research problem, it is necessary for
researcher to undertake extensive literature survey. What others have said about this topic,
what theories have been addressed to it and what are flaws in the existing research can be
understood through literature review.
3) Formulation of Hypothesis:
The third step is to formulate one or more hypothesis. The suggested explanation or solution
to the problem formulated as a proposition is called a hypothesis. A good hypothesis must be
conceptually clear and it should be related to a body of theory.
4) Research Design:
Planning research design is the fourth step in the process of research. Reliability and validity
of the research requires the detailed strategy of how the research will be conducted. The
designing is concerned with making controlled scientific inquiry.
5) Selecting Sample:
The fifth step in research is selecting a sample. A sample is any number of persons, units or
objects selected to represent the 'universe' or 'population' according to some rule or plan.
6) Data Collection: The sixth step is actual collection of facts and information in accordance
with the research design. Having drawn an adequate sample from the 'universe', the
researcher proceeds to administer the measuring instruments or tools of data collection on the
items in the sample.
7) Data Analysis:
The seventh step in research is the analysis of data. The purpose of the analysis is to
summarise the completed observations in such a manner that they yield answers to the
research questions. Researcher has to classify, tabulate and compare the data to get the
results.
8) Hypothesis Testing:
Hypothesis testing is an eighth step in research. The correctness of the hypothesis is assessed
by a test of significance. Stating the hypothesis and selecting the level of significance are the
two important steps involved in hypothesis testing. For testing a hypothesis, we have to
define the concepts in a measurable way.
10) Interpretation of Results:
Interpretation of result is the ninth and important step in research. Research is wasted and
useless unless it influences actions. Not only results must be interpreted into action but the
recommendations must also be communicated to the executive in an understandable manner.
11) Preparation of Report:
Preparation of report is the last step in research. The research exercise is not complete till
such time as the report is published. A research report clearly states what problem will be
chosen, what hypothesis should be proposed, how data is extracted and the method to be
used, how it should be measured, how it should be interpreted and how should be the final
conclusions/logically result from all this systematic activity.
Concept of Research Problem
“A research problem refers to some difficulty which a researcher experiences in the context
of either a theoretical situation and wants to obtain a solution for the same”
“A problem statement may be defined as an interrogative statement which expresses the
relation between two or more than two variables”

Concept of Research Design

Meaning:
A research design is a framework or blueprint for conducting the research project. It details
the procedures necessary for obtaining the information needed to structure or solve research
problems. The research design is a comprehensive master plan of the research study to be
undertaken, giving a general statement of the methods to be used.

Definitions:
1) Pauline Y. Young:
"A research design is the logical and systematic planning and directing a price of research."
2) Selltiz:
"A research design is the arrangement of conditions for collection and analysis of data in a
manner that aim to combine relevance to the research purpose with economy in procedure.”

Concept of Sampling
Sampling is a fundamental aspect of statistics, but unlike the other methods of data collection,
sampling involves choosing a method of sampling which further influences the data that will
result with. There are two major categories in sampling: Probability and non-probability
sampling.

Meaning:
Sampling is the process of electing units (e.g., people, organisations) from a population of
interest so that by studying the sample may fairly generalise our results back to the
population from which they were chosen. Let's begin by covering some of the key terms in
sampling like "population" and "sampling frame." A Sampling is a part of the total
population. It can be an individual element or a group of elements selected from the
population.
Definitions:
1) Sampling may be defined as “the selection of a part of a group or an aggregate with a
view to obtaining information about the whole. A sampling procedure is a technique of
selecting a sample from a given population.”
2) Sampling may be defined as "the act, process, or technique of selecting a representative
part of a population for the purpose of determining the characteristics of the whole
population.”

Concept of Data Collection

Data collection is one of the most important stage in conducting a research. One can have
the best research design in the world but if they cannot collect the required data they will
be not be able to complete their project. Data collection is a very demanding job which
needs thorough planning, hard work, patience, perseverance and more to be able to
complete the task successfully. Data collection starts with determining what kind of data
required followed by the selection of a sample from a certain population. After that, one
needs to use a certain instrument to collect the data from the selected sample.

Concept of Primary Data:

The task of data collection begins after a research problem has been defined and research
design / plan chalked out. While deciding about the method of data collection to be used for
the study, the researcher should keep in mind two types of data viz., primary and secondary.
The primary data are those which are collected afresh and for the first time, and thus happen
to be original in character.
Data collected by the investigator for his own purpose, for the first time, from beginning to
end, is called primary data. It is collected from the source of origin. In the words of Weasel
"Data originally collected in the process investigation are known as primary data. Primary
data are original. The concerned investigator is the first person to collect this information.
The primary data are therefore, first-hand information.
Secondary Data
Secondary data is data collected by other person except the researcher. Common sources of
secondary data for social science include censuses, organizational records, and data collected
through qualitative methodologies or qualitative research. The investigator conducting the
research, by contrast, collects primary data. Secondary data analysis saves time that would
otherwise be spent collecting data and, particularly in the case of quantitative data, provides
larger and higher-quality databases that would be unfeasible for any individual researcher to
collect on their own. In addition, analysts of social and economic change consider secondary
data essential, since it is impossible to conduct a new survey that can adequately capture past
change and/or developments.

Concept of Secondary Data:

Secondary data means data that are already available i.e., they refer to the data which have
already been collected and analysed by someone else. When the researcher utilises secondary
data, then he has to look into various sources from where he can obtain them. In this case he
is certainly not confronted with the problems that are usually associated with the collection of
original data Secondary data may either be published data or unpublished data.

Concept of Respondents
Meaning:
Research respondents are people who agree to take part in a research project such as a survey.
For example, if you complete a questionnaire about your working life, and then send it back
to a student or academic who uses it to gain information about working life in your particular
sector, you will be a research respondent.

Concept of Data Analysis

Data analysis (DA) is the science of examining raw data with the purpose of drawing
conclusions about that information. Data analysis is used in many industries to allow
companies and organization to make better business decisions and in the sciences to verify or
disprove existing models or theories. Data analysis is distinguished from data mining by the
scope, purpose and focus of the analysis.
Meaning:
Analysis of data is a process of inspecting, cleaning, transforming and modeling data with the
goal of discovering useful information, suggesting conclusions, and supporting decision-
making. Data analysis has multiple facets and approaches, encompassing diverse techniques
under a variety of names, in different business, science, and social science domain.

Definition:
Johan Galtung:
“Data analysis refers to seeing the data in the light of hypothesis or research questions and
the prevailing theories and drawing conclusions that are as amenable to theory formation as
possible.”

Concept of Hypothesis

Meaning:
A hypothesis is a proposition, which the researcher wants to verify. It may be mentioned that
while a hypothesis is useful, it is not always necessary. Many a time, the researcher is
interested in collecting and analysing data, indicating the main characteristics without a
hypothesis excepting the one which he may suggest incidentally during the course of his
study. However, in a problem-oriented research it is necessary to formulate a hypothesis or
hypotheses in as clear terms as possible.

Definitions:
1) Goode and Hatt:
“Hypothesis is a proposition which can be put to a test to determine its validity. It may seem
contrary to, or in accord with, common sense.”
2) George A. Lundberg:
“The hypothesis is a tentative justification, the validity of which remains to be tested.”
 COMPANY PROFILE

Zara SA is a Spanish apparel retailer based in Arteixo in Galicia. The company specializes
in fast fashion, and products include clothing, accessories, shoes, swimwear, beauty, and
perfumes.It is the largest company in the Inditex group, the world's largest apparel retailer.
Zara as of 2017 manages up to 20 clothing collections a year.

In 1988, the company started its international expansion through Portugal. In 1989, it entered
the United States, and then France in 1990. During the 1990s, Zara expanded to Mexico
(1992), Greece, Belgium and Sweden (1993). In the early 2000s, Zara opened its first stores
in Japan and Singapore (2002), Russia &
Malaysia(2003), China, Morocco, Estonia, Hungary and Romania (2004),the
Philippines, Costa Rica and Indonesia (2005), South Korea (2008), India (2010), Taiwan and
South Africa and Australia (2011).

On September 2010, Zara launched its online boutique. The website began in Spain, the UK,
Portugal, Italy, Germany and France. In November that same year, Zara Online extended the
service to five more countries: Austria, Ireland, the Netherlands, Belgium and
Luxembourg. Online stores began operating in the United States in 2011, Russia and Canada
in 2013, and Mexico, Romania, and South Korea in 2014. India in 4 October 2017.

Zara introduced the use of RFID technology in its stores in 2014. The RFID chips are located
in the security tags which are removed from clothing when it is purchased and can be reused.
The chip allows the company to quickly take inventory by detecting radio signals from the
RFID tags. When an item is sold, the stockroom is immediately notified so that the item can
be replaced. An item that is not on the shelf can easily be found with the RFID tag.

In 2015, Zara was ranked 30 on Interbrand’s list of best global brands.

In 2019, Zara had updated the logo.

In 2019 the Global Fashion Business Journal stated that while the textile commerce of the
world had gone down by 2.38%, Zara had risen 2.17%.]

In 2019, Chief Executive Persson said the brand is waiting for more acceptable global rent
levels to continue their expansion. In Europe, the brand will be cutting the number of
locations the next year.
The fashion group also owns brands such as Pull&Bear, Massimo Dutti, Bershka,
Stradivarius, Oysho, Zara Home and Uterqüe. The company operates over 2,220 stores and is
present in 88 countries.

Zara sells both Men's and women's clothes. They also sell shoes, cosmetics and
accessories. Recently they started with children's clothes as well.

VISION, MISION & OBJECTIVES -

 VISION

To be number one fashion retailer.

 MISSION

The world is getting smaller; we want the whole world to dress in style, class, and experience
unique designs weekly.

 Objectives

The main objective is to increase the customers’ demand and satisfaction, by giving them the
chance to experience new unique designs weekly.

SWOT Analysis
Zara’s strategy has both opportunities and strengths of threats and weaknesses. The following
section will describe the four dimensions of Zara’s agile approach.

(S)trengths:

Zara’s value chain is vertically integrated, which offers many advantages. It can react quickly
and it may have high control over the entire process from design to final product. Supply
chain is efficient when they have a smooth use of distributions centers and warehouses. Its
strategy also allows distributing the products within a wide geographic range within a very
short time. The other thing also is that the products are close to market demand. Their
products are made only in limited editions; consequently, they must sale their products in
short period of time so they can be sold at full price without having them to be returned. This
responsive approach involves both lower marketing costs, and higher profit margins for the
company. IT integration is also an important aspect of Zara’s strategy which is significant as
it enables information sharing between different joints within the company.
(W)eaknesses:

Zara’s business model is certainly well adapted to today’s needs. But it has a significant
weakness, which is that it is difficult to exploit the scalability of a continued expansion. Zara
accounts for 80% of consolidated sales Inditexs, which means that the entire group is very
dependent on Zara’s sales figures. The vertical integration of supply chain has its limitations
in scalability. Zara cannot produce clothing in larger quantities for a lower cost, and then the
whole concept is based on insignificant quantities as quickly distribute to the stores. The
rapid processes can thus compromising the quality in some cases. To always be close to
market and capture the latest trends and translate them into clothes that are ready for sale
within a short time requires outstanding effort from the employees and the management. Zara
fails to implement online shopping which leads to lose orders to their competitors.

(O)pportunities:

Online shopping became huge and significant market; customers can go online and order
what they need. If Zara allows customers to purchase online, that would increase their sales.
Pablo Isla is the first Deputy Chairman and Chief Executive says: “we view our entry into the
Indian market to be of significant strategic importance.”

(T)hreats:

The first threat is that the rent is continuously increasing in malls, Zara need to afford the
high cost of rent, which means that they have to increase prices or cut other costs.

The main competitors of Zara are H&M, GAP,

NeXT, and Uniqlo. These companies compete with Zara in several categories like: valuation,
sales, financial ratios, and profitability. Moreover, there is competition with the Asian
clothing industry, which starts brands can earn price premium over the competitors in this
industry.
 PROJECT DESIGN

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement, and analysis of data.

DATA COLLECTION

TYPES OF DATA

Primary data is data that is collected by a researcher from first-hand sources, using
methods like surveys, interviews, or experiments. It is collected with the research project in
mind, directly from primary sources. You have to prepare the questions and interview based
on the topic and as your respondents to answer them.

The term is used in contrast with the term secondary data. Secondary data is data gathered
from studies, surveys, or experiments that have been run by other people or for other
research. This is cost and time effective as you only have to analyze data gathered by
someone else.

METHODS

Qualitative Method: The word qualitative implies an emphasis on the qualities of entities
and on processes and meanings that are not experimentally examined or measured [if
measured at all] in terms of quantity, amount, intensity, or frequency. Qualitative
researchers stress the socially constructed nature of reality, the intimate relationship
between the researcher and what is studied, and the situational constraints that shape
inquiry. Such researchers emphasize the value-laden nature of inquiry. They seek answers to
questions that stress how social experience is created and given meaning. In contrast,
quantitative studies emphasize the measurement and analysis of causal relationships
between variables, not processes. Qualitative forms of inquiry are considered by many
social and behavioural scientists to be as much a perspective on how to approach
investigating a research problem as it is a method.
Quantitative Method: Quantitative methods emphasize objective measurements and
the statistical, mathematical, or numerical analysis of data collected through polls,
questionnaires, and surveys, or by manipulating pre-existing statistical data
using computational techniques. Quantitative research focuses on gathering numerical data
and generalizing it across groups of people or to explain a particular phenomenon.

A questionnaire is a research instrument consisting of a series of questions (or other types of

prompts) for the purpose of gathering information from respondents. The questionnaire was
invented by the Statistical Society of London in 1838.

Although questionnaires are often designed for statistical analysis of the responses, this is not
always the case.

Questionnaires have advantages over some other types of surveys in that they are cheap, do
not require as much effort from the questioner as verbal or telephone surveys, and often have
standardized answers that make it simple to compile data. However, such standardized
answers may frustrate users. Questionnaires are also sharply limited by the fact that
respondents must be able to read the questions and respond to them. Thus, for
some demographic groups conducting a survey by questionnaire may not be concrete.

For this project I have used the questionnaire method in which I have asked close ended
questions to understand the consumer’s behaviour towards the brand Zara. It’s a quantitative
method of collection of data where I prepares a Google Form & circulated the questionnaire
to people randomly and collected their feedback. I have then represented this data
quantitatively through graphical presentation for better understanding of the project.

AREA OF SURVEY: I circulated the questionnaire through Google Form among the people
of Pune and collected their feedbacks and have made this project based on the answers
received by me on the questionnaires marked by them.

SAMPLE SIZE:

 In this research project descriptive design is used.

 Judgment and convenience sampling method will be used to get the information about
Zara.

 Sample Size: 50 Respondents

 Sample Methodology: Random Sampling.

 ANALYSIS OF THE DATA & FINDINGS

TABLE 1 – Showing description of Personal Profile of the respondents

PROFILE GROUPS FREQUENCY PERCENTAGE

MALE 34 68%

GENDER FEMALE 14 28%

OTHER 2 4%

Less or equal to 18 1 2%

19-25 46 92%

AGE 26-35 3 6%

36-45 - -

ANALYSIS & INTERPRETATION –

Out of 50 respondents, 34 were male, 14 were female & 2 were others & majority of the
buyers range from the age group of 19-25 i.e. 92%. The next range is from 26-35 i.e. 6%
which is very close to the top range. Only 1 respondent belonged to the less or equal to 18
range. No one in the age group of 36-45 consume apparels from Zara.

TABLE 2 – Showing description of occupation

 OCCUPATION FREQUENCY PERCENTAGE

STUDENT 38 76%

BUSINESSMEN 6 12%

GOVERNMENT 3 6%
EMPLOYEE
PRIVATE EMPLOYEE 3 6%

ANALYSIS & INTERPRETATION –

Many of my respondents belonged to the Student level & hence the results show that the
student respondents form majority of the buyers. People from various backgrounds are aware
of the brand.

Question 1 – Are you aware of the brand Zara?

 AWARENESS OF FREQUENCY PERCENTAGE
BRAND
YES 48 96%
NO 2 4%

AWARENESS OF BRAND

4%
YES
NO

96%

ANALYSIS & INTERPRETATION –

Out of 50 respondents, 48 people i.e. 96% are aware of the brand Zara which also means they
are extremely familiar and possibly are frequents shoppers of the brand Zara. 4% are not at
all aware of the brand and might have never visited the brand Zara.

Question 2 – Have you ever shopped at Zara?

 EVER SHOPPED FREQUENCY PERCENTAGE
YES 47 94%
NO 3 6%

EVER SHOPPED

38%

62%

YES NO

ANALYSIS & INTERPRETATION –

Out of 50 respondents, 47 people that is 94% have shopped at Zara before and continue to
shop at Zara. 3 people that is 6% have never visited or shopped at Zara.

Question 3 – How often do you shop at Zara?

SHOPPING FREQUENCY PERCENTAGE

 FREQUENCY
MONTHLY 15 30%
FORTNIGHTLY 6 12%
WEEKLY 1 2%
NEED-BASED 28 56%

SHOPPING FREQUENCY

30%

56%

12%

2%

Monthly Fortnightly Weekly Need Based

ANALYSIS & INTERPRETATION –

This chart shows exactly how much scope there is in the clothes & fashion industry. Majority
of the people buy clothes only according to their needs i.e. 56% and the second highest
segment buys clothes from Zara on a monthly basis. That is 30% of the respondents i.e. 15
people shop from Zara every month once at least. 12% of the respondents i.e. 6 people prefer
buying every two weeks from Zara. 1 respondent buys clothes every week from Zara. Clothes
are a basic necessity for people & will always remain in demand. This shows that Zara can
continue to grow & increase business because of consumers frequently buying clothes due to
increase in the purchasing power & importance of having branded clothes as a status symbol.

Question 4 – How trend driven do you consider Zara’s clothes to be?

TRENDY FREQUENCY PERCENTAGE

NOT-TREND DRIVEN 7 14%
EXTREMELY-TREND 8 16%
 DRIVEN
TREND-DRIVEN 35 70%

TRENDY

14%

16%

70%

Not-trend driven Extremely-trend driven Trend-driven

ANALYSIS & INTERPRETATION –

The above graph shows that 70% of the respondents i.e. 35 people consider Zara to be a
trend-driven brand. This clearly shows that Zara is up to date and follows all the latest &
upcoming trends & consumers think so too. 16% of the respondents i.e. 8 people find Zara to
be extremely trend-driven i.e. they believe that Zara produces new garments every week.
14% of the respondents i.e. 7 people do not find Zara to be trend driven. It means that the
consumers believe that Zara produces timeless & classical garments. To sum it up all, the
main reason for people choosing Zara is the latest & trendy fashion. Zara collaborates with
fashion designers around the world & comes up with the latest fashion which attracts the
recent youth.

Question 5 – Which product types do you associate with Zara?

PRODUCT TYPE FREQUENCY PERCENTAGE
DRESSES/JUMPSUITS 13 26%
SHIRTS/TOPS 24 48%
TROUSERS 19 38%
T-SHIRTS 27 54%
KNITWEAR 6 12%
TRENCH/JACKETS 20 40%
JEANS 26 52%
 SKIRTS/SHORTS 7 14%
ACCESSORIES/BEAUTY 4 8%
PERFUMES 26 52%
BAGS 12 24%
SHOES 20 40%
BLAZERS/COATS 9 18%
SWEATSHIRTS 21 42%

PRODUCT TYPE
42%
Blazers/Coats 18%
40%
Bags 24%
52%
Accessories/Beauty 8%
14%
Jeans 52%
40%
Knitwear 12%
54%
Trousers 38%
48%
Dresses/Jumpsuits 26%
0% 10% 20% 30% 40% 50% 60%

ANALYSIS & INTERPRETATION –

Most of the respondents buy or mostly prefer to buy Shirts/Tops, T-shirts, Jeans & perfumes
from Zara. The bar diagram clearly show that half of the respondents buy the apparels
mentioned above. The second category below that comes of the people who prefer to buy
Sweatshirts & Shoes and & Dresses/Jumpsuits from Zara. They also prefer buying
Trench/Jackets according to the needs. The least apparels respondents prefer to buy from
Zara are Knitwear, Blazers/Coats & Accessories/Beauty. The graph helps understand that
Zara needs to work on a few products to fulfil customer needs & get them to buy every
product type from the brand. This will also help the brand convert more prospects.
Question 6 – How would you rate the quality of the products of Zara?

SATISFACTION FREQUENCY PERCENTAGE

EXTREMELY- 24 48%
SATISFIED
SATISFIED 21 42%
NOT-SATISFIED 5 10%
 SATISFACTION

10%

48%

42%

EXTREMELY-SATISFIED SATISFIED NOT-SATISFIED

ANALYSIS & DATA INTERPRETATION –

Most people consider the quality of the products provided by Zara as good and hence they are
extremely satisfied. 48% i.e. 24 respondents are extremely satisfied. 42% i.e. 21 respondents
are pretty satisfied with the quality of the products of the brand Zara which is a good sign but
there still is room for improvement. 10% of respondents that is 5 people are not at all satisfied
with the quality of the products. Customers want happiness, comfort & satisfaction & they
partly get it through the products they buy. If the brand Zara consistently manages to deliver
a positive experience, consumers will form an opinion that the brand is trustworthy. Hence
delivering quality products is very important.

Question 7 – What would you say is the best reason for you to shop at Zara?

REASON FREQUENCY PERCENTAGE

BRAND NAME 17 34%
DISCOUNTS & OFFERS 16 32%
QUALITY OF THE 37 74%
PRODUCTS
CUSTOMER SERVICE 12 24%
STORE AMBIENCE 12 24%
 REASON
Store Ambience 24.00%
Customer Service 24.00%
Quality of the Products 74.00%
Discounts & Offers 32.00%
Brand Name 34.00%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

ANALYSIS & INTERPRETATION –

The pervious question of the questionnaire talks about the quality of the products and the
analysis & interpretation from the responses of the respondents says that Zara still needs to
work a bit on the quality of the product. But when it comes to choosing a brand most of the
respondents choose the brand Zara for its quality of the products according to the respondents
in this particular question. The second highest reason for most of the respondents to choose
the brand Zara for shopping is its brand name. Brand name really matters to consumers that is
because in an instant you can tell your product is different from competitors. People are
emotionally attached to the brands they use and view them as a part of their self-image.
Hence, from the above diagram we can say that Zara has marked a place in consumers mind.
It is also seen that Discounts & offers given by Zara are liked by its consumers and hence that
being a reason they choose the brand Zara for shopping. For a few respondents, Store
Ambience & Customer Service are also a few reasons to shop at Zara.

Question 8 – How would you prefer to purchase your garments from Zara?

SHOPPING FREQUENCY PERCENTAGE

PREFERENCE
INSTORE 43 86%
ONLINE 7 14%
 SHOPPING PREFERENCE

14%

86%

INSTORE ONLINE

ANALYSIS & INTERPRETATION –

It can be clearly seen from the pie-diagram that the different between the two options is vast.
A very few people like the ease of sitting at home & buying clothes while the others prefer to
go to the retail outlet to buy clothes. This again emphasizes the need of having a good sales
team & being able to get new stock quickly to the stores. It also shows the need to have a
good collection online across because not serving people is losing out of loyal customers.

Question 9 – Do you find the prices economical?

PRICES FREQUENCY PERCENTAGE

YES 33 66%
NO 17 34%
 PRICES

38%

62%

YES NO

ANALYSIS & INTERPRETATION –

Most of the people feel that the prices of the products offered by Zara maybe be considered
higher but for the segment it belongs to the prices are economical. 34% i.e. 17 people feel
that the prices of Zara are slightly higher than its competitors or basically not economical.

Question 10 – On average how much money do you spend in Zara?

SPENDING PATTERN FREQUENCY PERCENTAGE

500-1000 5 10%
1000-1500 3 6%
1500-2000 10 20%
ABOVE 2000 32 64%
 SPENDING PATTERN

10%
6%

20%

64%

500-1000 1000-1500 1500-2000 ABOVE 2000

ANALYSIS & INTERPRETATION –

64% of the respondents that is 32 people spend more than or above Rs.2000. 20% of the
respondents i.e. 10 people spend around Rs.1500-2000 at Zara. 6% of the respondents i.e. 3
people choose to spend around Rs.1ooo-1500. 10% of respondents i.e. 5 people spend no
more than 1000 bucks at Zara. This also shows the kind of customers that visit the brand Zara
and their standard of living. The graph also depicts the spending patterns of the consumers.
Not a lot respondents choose to spend much at Zara which means the prices of the brand
either are not economical or the brand has failed to attract the actual customers.

Question 11 - Do you perceive Zara being a lifestyle brand? (a brand who provides
you with a sense of belonging to a specific culture or group of people)

PERCEPTION FREQUENCY PERCENTAGE

YES 34 68%
NO 16 32%
 PERCEPTION

38%

62%

YES NO

ANALYSIS & INTERPRETATION –

68% of the respondents perceive Zara as a lifestyle brand. They feel a sense of belonging on
buying products from Zara whereas 32% of the respondents i.e. 16 people disagree to
perceive Zara as a lifestyle brand. Brands express who we are & if we won’t have a sense of
belonging towards the brand, then the brand will have to work a lot towards it.

Q12 – Do you follow Zara on any social media?

SOCIAL MEDIA FREQUENCY PERCENTAGE

YES 31 62%
NO 19 38%
 SOCIAL MEDIA

38%

62%

YES NO

ANALYSIS & INTERPRETATION –

62% of the respondents i.e. 31 people follow Zara on social media whereas 38% of the
respondents i.e. 19 people do not follow Zara on social media. Social media is the easiest and
the best way to connect to your customers. Social media engagement helps reinforce brand
messaging. Getting all the customers to follow you on social media will lead to better
customer experience, improved brand loyalty & improved brand authority.

Question 13 – Which factor do you consider while selecting store preferences?

STORE PREFERENCE FREQUENCY PERCENTAGE
NEAR TO HOME 27 54%
NEAR TO WORK 5 10%
AVAILABILITY OF 28 56%
QUALITY GOODS
REASONABLE PRICE 20 40%
AVAILABILITY OF 30 60%
VARIETY OF GOODS
PROMPT SERVICE 7 14%
EXTENSION OF 3 6%
 CREDIT
OFFERS AND 26 52%
DISCOUNTS
AMBIENCE 17 34%
SALES APPROACH 14 28%
PUBLICITY 2 4%

STORE PREFERENCE
PUBLICITY 4%
28%
AMBIENCE 34%
52%
EXTENSION OF CREDIT 6%
14%
AVAILABILITY OF VARIETY OF GOODS 60%
40%
AVAILABILITY OF QUALITY GOODS 56%
10%
NEAR TO HOME 54%
0% 10% 20% 30% 40% 50% 60% 70%

ANALYSIS & INTERPRETATION –

Most of the respondents choose stores according to the availability of variety of goods. Even
though the brand is the same, different stores do have different variety of clothes. The next
few factors that respondents consider the most while selecting the store preference is offers &
discounts, availability of quality goods & near to home. People visit malls for leisure & don’t
want to travel distances to go shopping since shopping itself is time consuming. Selecting a
mall/store that is nearest to home not only reduces travelling time but also eases things such
as carrying shopping bags, traveling costs & people also get to spend more time in the
mall/store. The factors that are least considered by the respondents are publicity, near to
work, extension of credit, ambience & sales approach. If looked into these factors clearly,
these are the factors that are practised similarly in other stores. These factors create
psychological aura in the store & hence all the stores of Zara are the same in terms of the
above factors.

Q14 – Does the Role of Brand matter to you? If yes, why?

ROLE OF BRAND FREQUENCY PERCENTAGE
I PURCHASE ONLY 11 22%
BRANDED PRODUCTS
I CHECK THE PRICE 10 20%
BEFORE SELECTING A
PARTICULAR PRODUCT &
ITS BRAND
PRICE OF PRODUCT IS 6 12%
MORE IMPORTANT TO ME
THAN THE BRAND
 I PURCHASE PARTICULAR 19 38%
BRAND BECAUSE I HAVE
TRUST IN IT

ROLE OF BRAND

24%
41%
22%

13%

I PURCHASE ONLY BRANDED PRODUCTS

I CHECK THE PRICE BEFORE SELECTING A PARTICULAR PRODUCT & ITS BRAND
PRICE OF PRODUCT IS MORE IMPORTANT TO ME THAN THE BRAND
I PURCHASE PARTICULAR BRAND BECAUSE I HAVE TRUST IN IT

ANALYSIS & INTERPRETATION –

38% the respondents i.e. 19 people care about the role that the brand plays because they only
buy branded products. That is because experience of customers with products of same brand
help them to quickly decide whether they will want to go with their purchase decision or not
making their decision easier. Brands bring with them a certain level of quality assurance.
22% of the respondents i.e. 11 people say that role of brand matters to them but more than
that they first check the price before selecting a particular product & its brand. The next
category is the 20% of the respondents for whom the price of a product is more important
than the brand. So the brand & quality that comes alone with it doesn’t matter to them as
much as the price. 12% of the respondents i.e. 6 people say that the role of brand matters to
them because they have trust in it. Being accessible and maintaining regular interaction with
customers, having reliable product, being honest & maintaining consistency will help Zara to
attract customers & build trust about the brand within the customers. 8% of respondents i.e. 4
people don’t think the role of brand matters to them.

Question 15 – Does the store layout make it easy for the customers to find what they
need?

STORE LAYOUT FREQUENCY PERCENTAGE

YES 46 92%
NO 4 8%
 STORE LAYOUT
8%

92%

YES NO

ANALYSIS & INTERPRETATION –

92% of the respondents i.e. 46 people feel that the store layout makes it easy for them to find
what they need. Whereas hardly 8% of the respondents i.e. 4 people think that store layout
does not make any difference. Store layout determines how customers shop. The longer the
customer is in the store, he/she is more likely to buy something. A good layout will provide
the brand with a good turnover & Zara has succeeded in it.

Question 16 – Which other fashion retailer would you choose over Zara?

COMPETITORS FREQUENCY PERCENTAGE

ABERCROMBIE & FITCH 4 8%
H&M 22 44%
SUPERDRY 12 24%
GAP 8 16%
MANGO 4 8%
 COMPETITORS
8% 8%

16%

44%
24%

ABERCROMBIE & FITCH H&M SUPERDRY

GAP MANGO

ANALYSIS & INTERPRETATION –

Zara has a lot of competitors. And if given a choice, respondents would prefer other brands
over Zara. Zara’s biggest competitor is H&M as seen in the pie-diagram above. The second
brand that respondents would choose over Zara is Superdry. Competition is not a good thing
but the main goal of every brand is to dominate & Zara has failed to do so. Zara needs to
study the competitors & the market well and deliver the best to its customers so there is no
shift in brands. This will also help Zara to form a loyal customer base who will do repeat
purchases from the brand and stick to it for a long time.

FINDINGS

 In total, 50 people responded to my questionnaire out of which 25 were boys & 25

were girls. This was a conscious effort as I wanted opinions of both genders in equal
numbers.
 Most of my students were students. Most of them were between the ages 19-25.
 It was observed that all of the respondents were aware of the brand which shows it has
a strong marketplace. Most of the respondents also have shopped ta Zara.
 Most of the people shop for clothes only when needed & a few of them shop monthly
which means there is a huge potential for Zara to sell their products by targeting the
right audience.
 Zara being a huge brand & a status symbol can make us of the fact that a lot of
people’s buying decision are influenced by the brand & for a few respondents by the
prices.
 Quality & price were the leading factors affecting buying decisions & Zara already
produces good quality products & its prices are pretty economical & reasonable for
the segment it operates in so favour this is in favour of Zara.
 Zara provides discount on a wider variety as well as a much larger discount which is a
good strategy as most people do get influenced by discounts. Most of the Zara’s
customers trust the brand for it quality & variety in products & hence discounts &
offers don’t make a much of difference. The brand already has a name in the market.
 Trendy clothes & good quality & a sense of belonging were the leading factors for
people choosing Zara. The brand should continue in the same way for these 2 factors
but could lesser its prices to gain more advantage.
 There is a huge difference in the number of people that prefer shopping in store &
online. Most of the people prefer buying in stores & tend to generally spend an hour
or more in the store which means that Zara should have trained sales team & a team
of fashion consultants.
 Most of the respondents would choose other brands over Zara which is a negative sign
for the brand.

LIMITATIONS

 As the sample size of the research for the project is only 50 which is small sample
size it does not necessarily give a true picture of the brand awareness or the survey
about the brand Zara.
 Zara is an international brand whereas all my respondents belong to Pune. It is a very
small proportion of the actual buyers of the brand which are spread worldwide.
 The cultural & economical background of my respondents is different & these factors
play a crucial role in buying a product thus it may not be accurate.
 This survey has been respondents by individuals so I have to blindly trust that
whatever are the answers given by them are true & not biased or filled randomly.
 No prior study was referred for this project so all interpretations are made by me and
as per my understanding.

RECCOMENDATIONS
 Target those people who use products of Zara & trust the products as their best
solution for retail fashion.
 Zara should try & also advertise its brand on various platforms such as T.V. &
billboards. This way they can attract more & more customers.
 Develop quality & brand image so that by trial of your brand leaves with a good
image and then followed by usage of many products which then will be used by them.
  It should try & reduce its prices which will help it gain a competitive edge over its
competitors. Though Zara has brand recognition, it should try & hammer its brand
name in people’s mind.
 Look for different problems for which people choose other brands over Zara &
deliver the same of high quality & at the same time positioning of the brand as
solution for problems.
 Online retail is a big market nowadays & it is important that the company must have
its best & most fashionable products available online as well. It could increase or
improve the range of product offerings it has online.
 It could increase its product line because it gives tough competition to its rivals when
it comes to clothes but lacks behind in other products.
 Offer value for money impetus for the decision to use the product more intensively.

CONCLUSION

The findings of this report have shown me that Zara truly is a large brand with strong
recognition. It is one of the top companies in the fashion industry because it has been able to
satisfy customer needs & cater to them. It works in a segment which is very choosy when it
comes to fashion but it has constantly been able to deliver fashionable clothes & in line with
the trend that is trending globally. It has been able to achieve this without compromising on
the quality of the product. A lot of people go to Zara not only because of its fashionable
clothes but also because it can trust the quality. It has been able to create a strong brand
recognition making it almost a status symbol for people who buy their products. It has been
able to keep its prices higher than its competitors & providing a different range of products.
Zara has quite a few things going for it because of which it is behind its competitors in the
fashion industry. There is definitely room for improvement for Zara but it doesn’t take away
the fact that it is still a perfect example of how to change & adapt with the change in fashion
& grow into a huge & a successful brand.
 APPENDICES

The following questionnaire attached are part of the questionnaires sent out by me for
responses & can be treated as sample questionnaires.
 BIBLIOGRAPHY

1. https://www.researchgate.net/publication/323998478_Analysis_Of_Consum
er_Buying_Behavior_Towards_Online_Shopping_A_Case_Study_Of_Kota_Cit
y-_Rajasthan
2. https://marketinglessons.in/role-of-brands-and-scope-of-branding-philip-
kotler-summary/
3. https://blog.hubspot.com/marketing/marketing-trends
4. https://successstory.com/companies/zara