WHAT VALUE DOES

BRING TO ITS CUSTOMERS?

Group 2 Group 2 Group 2 Group 2 Group 2

1. Hoàng Thị Xuân Liên
2. Nguyễn Ngọc Tâm Di
3. Bùi Lê Thủy Tiên
4. Nguyễn An Phương Uyên
5. Vũ Nhật Tân
POWERPOINT Version
 19/10/2021
PRINCIPLES OF MARKETING

INTRODUCTION

The Fast-Fashion concept is the darling of the fashion retail industry today because
now it is more important to always follow the latest trends and produce according to
that, than to have just two collections per year for a higher price.

Fashion companies are changing the way they do business, they are focusing each
day more on the consumers, and what they are looking for at that moment. These
companies include Zara.

Zara, founded in 1963 by Amancio Ortea Gaona, is a popular Spanish clothing store
that uses a very clever marketing strategy to achieve its business goals:

4Es - Experience - Exchange - Evangelism - Everyplace

This customer-centric approach has allowed the brand to make changes that fit its
customers’ needs, wants, demands and that’s what made Zara different from its
competitors in the fast-fashion industry.

EXPERIENCE

In the new economy, customers' experience is the king. If you want to win the
market, you have to optimize the shoppers’ experience and Zara understands that.

Zara offers scarce supply and new styles that rotate rapidly

With a sufficient supply chain, most products of Zara are produced right in their
factories. By this way, Zara can have the quickest response to the latest trends. Unlike
other competitors, it only takes Zara 2-3 weeks to design, produce and launch new
products in the stores with limited numbers. With this strategy, customers have to
visit stores often to check out the latest models as they may be sold out very
soon.

Zara optimizes the physical stores

Inside the stores, everything has neutral colors and is really clean. The environment is

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planned carefully with the lights disposed strategically to highlight important
products, the music, the smell. Zara is also focusing on the store’s technology. They
already introduced the self-checkout service and implemented touch-screens in the
dressing rooms, where customers can order products without leaving the room.
With these organizations and improvements, customers can shop freely in a
highly curated and smart product environment, which can create more
enjoyment and convenience.

Zara increases their online presence

The technology has exploded and GenZ is becoming potential customers. Zara can
see that change and immediately adapt to the situation. On the online platform,
customers can have information about the payment and shipment, available online
customer service, where customers can talk with assistants if needed. In the App,
they have a barcode reader, and customers can use it inside the stores to search for
some sizes. Customers can also search if the product is available in any nearby
stores. These transitions provide instant help to customers’ problems and
customers can have no worries about the distance.

EXCHANGE

As customers strive for deeper connection with the brand rather than just exchange
money for products, retailers must adapt to the changing customers where the top
characteristic is value. It has always put the customers first and tried to understand
them thoroughly, giving the message that customers are of the highest value
among other values.

Zara makes the impossible possible by bringing designs from runways to its shops

Zara products have the latest styles, trending designs, affordable prices and local -
adapted tastes. Its pricing strategy targets average buyers who are price - sensitive,
but also want the latest fashion items. Therefore, Zara helps us experience “almost”
high - end fashion without ending our own bank account.

Zara has a wide range of selections

It provides over 450 million products per year. The highly responsive supply chain
delivers new products to stores twice a week representing constant new options to
buyers.

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Zara literally exchange “in secret” with the customers for value
In order to collect more information about the customers, Zara encourages its store
managers and employees to be super sensitive to customer needs and wants and
reports on how customers enact in the stores. The sales associates and store
managers are at the front of buyer research with comments, ideas, and new
styles that visitors are wearing.

EVANGELISM

"Evangelism" was used to describe the technique of companies that encourage

existing customers to spread the brand's good message to other people. The hope is
to buy that product for those who receive this positive message. Evangelical
marketing focuses on the creation of a widespread and ever-growing brand
evangelist that recruits and thus increases its sales.

Zara pulls customers in, cultivates them as brand influencers

Customers can share with the brand what they are thinking, their judgments,
advice for the products, their reviews to improve operations, services, and products.
This makes customers feel appreciated, important and stimulates them to spread
the words which then have some spectacular effects on the brand’s developments.

Zara has a highly involved infrastructure

This allows super-efficient analysis of what’s selling and being said on social media
platforms. This data is used to improve various aspects of the business from product
offerings to service enhancement. Customers can easily keep in touch with Zara
and catch the newest trend which is introduced directly on Zara’s platforms. Thus,
they can not only consider trying Zara products that many people had bought and
reviewed but also other different services from the brand. In this way, customers can
have multiple perspectives about Zara.

EVERYPLACE

Personal commerce is every place where the customers are, rather than only in the
place the brand is physically present. This is the new distribution model for retailers

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today: providing brand interactions and offerings when and where the consumer
wants it. That’s what Zara does for them.

Zara develops its very responsive supply chain

Zara has invested tremendous time, money, and energy into creating a cohesive
approach for online and offline retail. Currently, it operates in 2,213 stores across 93
markets and 39 online markets. Zara’s primary stores are located in the most
important markets that cater to their most loyal shoppers.

Zara focuses on location rather than advertising

The money that isn’t spent on advertising and promotions will be invested in the
location and attractiveness of its stores. One of the brand’s unique selling points is
giving consumers the opportunity to purchase high-end clothing styles at a
premium price almost anywhere. Zara has continually strengthened their portfolio
of stores by closing unprofitable ones, opening new markets, and expanding sister
brands in existing markets (Zara Home, Massimo Dutti, etc).

Zara makes customers’ interactions a priority

Zara involves the customer interactively both online and offline in the
decision-making process. According to Forbes, by doing this, Zara has cultivated a
loyal customer base who visits about six times per year, as compared to other
retailers in the contemporary market where two to three visits per year are the norm.

RESULT
This 4Es approach is a unique advantage that Zara has over its competitors, chief of
which is H&M. Zara actually listens and reacts to customer feedback to improve its
products and services. That feedback is recognized as the brand’s most valuable
asset.
The result is the customer and the company work cooperatively together. In other
words, Zara includes the customer in the decision-making process, whereas H&M
dictates the decisions down to the customer.

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CONCLUSION
Under the old 4Ps school of marketing, everything focuses on the company and the
brand – its Product, its Price, its Promotion, its Place. In the new Zara’s 4Es approach
to marketing, it is all about the customer – Experiences for the customer, Exchange
with the customer, Evangelism through the customer, and being Everyplace for the
customer.
In essence, the customer becomes the brand manager.

REFERENCES

1. Những bí mật làm nên sự thành công của thương hiệu thời trang đình đám Zara (cafebiz.vn)

2. https://www.forbes.com/sites/pamdanziger/2018/04/23/zaras-difference-pull-people-in-not-push
-product-out/?sh=54bfa54623cb

3. https://repositorio.iscte-iul.pt/bitstream/10071/15686/4/master_ana_morgado_costa.pdf
4. https://avada.io/resources/zara-advertising.html

5. https://www.textileexcellence.com/featured/zara-wins-with-the-4es-hm-loses-with-the-4ps/

6. https://www.oapub.org/soc/index.php/EJMMS/article/view/1076