Perspective on Marketing strategies of ZARA

1. INTRODUCTION

Brand has been describing in Oxford American Dictionary (1980) as “A trademark, goods of a

particular make: a mark of identification made with a hot iron, the iron used for this: a piece of

burning or charred wood. (Verb) to mark with a trademark”. ZARA is a multi-national retail

clothing chain based in Spain. It is a quick fashion retailer that provides clothing, accessories,

shoes, beauty goods, and perfumes. The main offices are at Arteixo, A Corua, Galicia. It is the

Inditex group's largest constituent firm. It was launching around 20 new product categories each

year by 2020 Zara expects to plan responsible energy for style in a different scope of shoppers

from all societies and age gatherings. Many things have led to Zara's success, but its capacity to

prioritize its clients has been one of its main advantages and has helped it grow into the

worldwide fashion giant it is today. Zara is obsessed with its customers. ZARA has defined the

brand's ethos and the firm since its remarkable beginning. While there are many factors that have

led to Zara's success, its ability to prioritize customers is one of its core values that has helped it

grow into the global fashion powerhouse that it is today. What makes Zara so successful is that

she's keeping pace with the rapidly evolving style of street fashion. The company takes a keen

interest in the evolving trends of daily fashion. That is why; it is not only making great profits

but also is a most celebrated brand by the buyers in the market (Murphy, 2008Indeed, even

inside the Inditex bunch, Zara has involved most of the market and is a significant wellspring of

its incomes. The commitment of Zara in the association's benefit making and market catch is

assessed to be 80%.

2. THEORATICAL BACKGROUND

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David gives a thorough explanation of branding as a methodical procedure used to increase consumer

loyalty and raise awareness. A directive from the top and a willingness to make investments in the

future are needed. Using every chance to explain why consumers should select one brand over another

is the essence of branding. Businesses use branding because they want to be at the forefront, beat the

competition, and provide staff with the finest resources to connect with consumers. (2006, 6)

From 2002 until 2023, Zara was operated under a franchise agreement with Stockmann plc. In,

by opening its first franchising stores in front of the group, downtown Helsinki. Inn 2013,

Stockmann sold its subsidiary Z-fashion Finland to Inditex, S.A. Amancio Ortega Gaona, the

founder and chairman of Inditex opened the first Zara store in 1975 in A Coruna, Spain.

Currently, there are over 1900 stores worldwide. It has been observed that brands transmit the

quality of their goods or services and enhance client trust by convincing them that they have

chosen the right option. It's also claimed that brands pique consumers' interest by identifying

them through associations, languages, and distinctive images. (2013, 2.)

The UK brand planning guru Paul Feldwick defined a brand this way:” All of an idea's

manifestations and interactions make up a brand. These days, brands are the primary indicator of

success. As a product is the thing that consumers buy and use, brand is something intangible,

regarding a promise to quality, a sense of heritage or prestige.” Brands also offer a differentiating

factor that makes it easier to choose between the many competing product variants.” (Davis

2006, 16).

Brands occasionally become associated with standards of quality or pricing. Brands will always

be around as long as there is a corporate market. One of a company's most effective means of

expressing its image in the global market is its brand. Brand is now necessary as its way of

connections and influences on making decisions among the choices in our daily life (David 2006, 32).

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“Good brand are like novels that you can’t put down — they are the highest form of art and they have to

tell a fantastic story” (David 2006, 34)

3. MARKETING STRATEGY

In order to define positioning more clearly in relation to brands, the following question has to be

addressed. “Where are you in the consumer’s mind?” Basically, Brand positioning refers to the unique

attributes that set a brand apart from competitors in terms of its offerings. (Gelder 2005, 30). Okonkwo

has showed that brand positioning are the entire elements that related to branding in consumer’s mind.

It's closer to focusing on the outward appearance of a connection, since values are established for the

businesses from the outset of their brands. Brand positioning is just a company's strategy to being

perceived by consumers. (2007, 116)

Brand positioning is defined as a marketing strategy that use customer psychological

modification to differentiate a brand from its competitors in terms of personality, qualities, and

appearance. It was the art of locating, comprehending, and learning about the human mind—a

component of both science and psychology (McGhie 2012, 19.)

The customer will choose a brand that best represents their lifestyle and set of beliefs. By

emphasizing the similarities between its consumers and the brand, a trademark helps to build

trust. Customers that buy from Zara project a sophisticated, international, and contemporary

lifestyle. Even though a lot of customers also use the paper bag for shopping for other personal

items, Zara does not clearly display its branding on its products. This is an indication of a

specific lifestyle that the buyers seek to transmit to others.

3.1. 4C Marketing Theory

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Professor R.F. Lauterborn (1993), an American marketing expert, proposed the Marketing

Theory of 4Cs, or "4C marketing theory," in 1990. It is the 4P of conventional marketing

matched by the 4C theory. In accordance with consumer demand, it reinterpreted the four core

elements of the marketing mix: client, expenses, ease of use, and communication. The notion

states that satisfying consumer demand and improving customer satisfaction should be the main

priority. Reducing acquiring client’s expenses, providing consumers with maximum convenience

during the buying process, and placing customers at the core of efficient marketing

communication come next.

Marketing Strategy Analysis of Zara in Theory 4c

3.1.1. Meet Customer Needs

ZARA decides to copy the apparel designs of global companies in order to satisfy the target

customers' need for the newest fashion trends. Using this tactic, ZARA can swiftly create apparel

that satisfies customer demands and keeps up with current trends. To address consumers'

individualized desires for diverse and distinctive apparel products, ZARA employs the product

strategy of generating a sense of scarcity with a restricted number of things. ZARA targets young

fashion-conscious consumers with limited purchasing capacity, offering affordable fashion

options ranging from tens to thousands of dollars.

3.1.2. Reduce Costumer Cost

The crisp grasp and distinctive interpretation of current trends inspire ZARA's design. Its design

is not entirely unique, yet it is also not entirely copied. The designers at ZARA draw inspiration

from a variety of sources, including streetwear, celebrity attire, and high-profile fashion events.

They also consider the price range at which customers are willing to spend to eliminate some of

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the costlier design features. ZARA obtains its raw materials in two components, one

manufactured by an Inditex subsidiary and the other provided by external vendors. This can not

only reduce raw material transportation time and thus solve an issue of the basics material not

being supplied on time, but it can also produce products flexibly according to market demand,

reduce reliance on raw material suppliers, and produce in an active position, thereby saving

costs.

3.1.3. Customer Convenience

ZARA shops, which extend over 930 square meters, cater to the ease and comfort of its

customers by categorizing them into three sections: women's apparel, men's wear out, and

children's wear. This single-stop purchasing platform caters to a wide range of customer

demands and streamlines the process of matching garments. ZARA is growing its online

presence in addition to its physical stores, which serve as its principal sales channels. The

business prevents injustice by using a network platform to present current trends, offer expert

advice, and conduct virtual fits while sticking to the same pricing and product policies as

physical stores.

3.1.4. Good at Communicating with Customers

Rather than closely following consumers to pitch things, the sales personnel at ZARA stores is

competent and polite, giving wear instructions and help on cleaning and caring for a costumer

when needed. ZARA stores provide daily sales and inventory levels, and the company leverages

client feedback to design goods that match their demands. The headquarters restocks

merchandise in accordance with shop conditions, guaranteeing that items react promptly to shifts

in the market through prompt feedback. ZARA's internal control system is effective; regional

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managers have more authority while store managers and clerks adhere to established protocols.

While store managers allocate goods and complete sales assessment indicators, shop assistants

offer consulting services. Chain store to chain store product distribution is overseen and assisted

by regional managers.

3.2. SWOT analysis

SWOT analysis consists of two parts: internal and external of the company

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3.2.1. Strength

Zara, one of the world's top apparel retailers, has over 74 shops throughout the world and

serves a global consumer base. The company's primary goals are to improve interior and

exterior design, improve distribution tactics, and manage the entire process from design to

fabric selection. Zara's current fashion trends are updated every two weeks, maintaining a

consistent supply of merchandise. In addition, Zara wants to make improvements to its

external and internal designs as well as its distribution methods, which should be quick to

adapt and accurately predict client demand. Every two weeks, the business brings new

collections into the store by selecting fabrics and managing the entire design process.

Because client expectations are always changing, all of the newest fashion trends are updated

quickly.

3.2.2. Weakness

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As Zara believes they have a strong and famous brand, the company wants to reduce expenses from

advertising, with lack of marketing and communication, it might be its disadvantages 39 compare to the

other competitors. The limitation of stocks by updating new collection twice per month should be taken

into account. being a desired brand with a somewhat mysterious reputation has created a story around

it. being a desired brand with a somewhat mysterious reputation has created a story around it. Zara's

web platform is less established than that of some of its competitors, which may limit its reach and

potential sales. Zara's reliance on physical storefronts puts it vulnerable to retail sector upheavals such

as the advent of e-commerce. Zara mostly sells garments and may be less diverse than firms that sell a

wider range of items. Zara has come under fire for its rapid fashion business strategy, which adds to

environmental problems and unethical labor practices.

3.2.3. Opportunities

Nowadays, a lot of Asian nations follow the fashion of Zara. As a result, it is expanding quickly

after joining new Asian markets with sophisticated, classic products that are still high fashion but

come at affordable prices, such as Vietnam, Korea, Japan, and China. By developing and improving

its online presence, Zara can take advantage of the growing trend of online purchasing. To attract

customers who care about the environment, Zara should invest in ethical fashion and sustainable

procedures. As the demand for reasonably priced apparel increases in these areas, Zara may want to

investigate potential business ventures there. In order to create buzz and limited-edition collections,

Zara might work with well-known designers or celebrities for collab and partnership. being a desired

brand with a somewhat mysterious reputation has created a story around it. By developing and

improving its online presence, Zara can take advantage of the growing trend of online purchasing. To

attract customers who care about the environment, Zara should invest in ethical fashion and sustainable

procedures. As the demand for reasonably priced apparel increases in these areas, Zara may want to

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investigate potential business ventures there. In order to create buzz and limited-edition collections,

Zara might work with well-known designers or celebrities for partnerships and collaborations:

3.2.4. Threat

Zara may be concerned about the risks posed by the fierce competition in today's market, where

negative customer feedback could lower the brand's value. The company occasionally faces

lawsuits for fashion plagiarism from other well-known designers. On the other hand, when a

company employs more than 400 skilled designers who labor hard every day to create the

greatest products for the brand, then imitation of goods should be taken into account. Zara's

market share could be impacted by competition from both traditional retailers and online fashion

brands. Variations in the economy may have an effect on how much consumers spend on

clothing, which could affect Zara's sales.Due to its popularity, Zara is a target for fake goods,

which could negatively impact sales and the company's reputation.It may be difficult for Zara to

consistently satisfy customer demands when it comes to changes in consumer preferences and

fashion trends.

3.3. Suggestions

Zara, a well-known fast-fashion shop, may benefit from raising its environmental awareness.

Zara can meet the worldwide demand for great fashion at low rates by concentrating on

sustainable manufacturing and delivery. This strategy has the potential to increase Zara's market

value and consumer loyalty. Furthermore, digital marketing is a key component that influences

customer behavior, with content marketing being a potent instrument for long-term goals in

recent years. This fact should be considered by a company, which should develop and extend its

social media platforms.

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The firm has launched an iPhone store application, however it is useless and unimpressive since

it lacks important information about the product, brand, price, and other details in addition to

having a dated design. Therefore, in order to reach the target groups, a new web channel is

required with "up to date" news and data on items, including price, size, and the amount of

products in stock, as well as building all the vital details about history and how a brand is built

and maintained throughout time.

4. CONCLUSION

The apparel industry is often perceived as a traditional one, but ZARA uses innovative marketing

techniques and contemporary management to push the sector toward a new development

paradigm. ZARA also has insight into future development trends. Its inventiveness is

noteworthy. that numerous apparel companies can benefit from. Using ZARA as a case study,

this essay combines the ZARA's marketing strategy is specifically analyzed using the 4C theory.

outlines ZARA's distinct marketing approach and offers some recommendations for the quick

fashion clothing industry in UK

The most significant discovery is that a narrative has been developed around Zara thanks to its

exclusive image as a sought-after brand with a vague reputation. Being a desired brand with a

somewhat mysterious reputation has created a story around it. In a digital and environmental age,

there are more ways to implement and strengthen the company's image by utilizing various

elements. Such as bringing consumers closer to the brand through social media channels and

establishing a reputation based on environmentally friendly production. Zara can and will

maintain its position as one of the top global fashion retailers in the Facebook era if it approaches

the Y generation correctly.

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