Assignment on Fashion Retails Brand

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This assignment explores the market segmentation and sales policies of Zara and Nike, two leading fashion retail brands. It discusses their demographic, behavioral, geographic, and lifestyle segmentation strategies, as well as their sales policies. The assignment also examines the adoption of new policies by both brands and highlights the differences between mass market and niche market retailers. Overall, it provides insights into the success and approach of these fashion retailers.
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Assignment on Fashion Retails Brand
Assignment on Fashion Retails Brand
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Assignment on Fashion Retails Brand 1
Table of Contents
Introduction.................................................................................................................................................2
Market segmentation...................................................................................................................................3
Zara..............................................................................................................................................................3
Demographic segmentation.....................................................................................................................3
Behavioral segmentation.........................................................................................................................3
Geographic segmentation........................................................................................................................3
Lifestyle segmentation.............................................................................................................................3
Nike.............................................................................................................................................................3
Demographic segmentation.....................................................................................................................4
Behavioral segmentation.........................................................................................................................4
Geographic segmentation........................................................................................................................4
Lifestyle segmentation.............................................................................................................................4
Zara sales Policies.......................................................................................................................................4
Nike Sales policies......................................................................................................................................5
Adopting new policies.................................................................................................................................5
Task Two:....................................................................................................................................................6
Part 1.......................................................................................................................................................6
Part 2.......................................................................................................................................................7
The 3 difference are.................................................................................................................................7
Conclusion...................................................................................................................................................8
References:..................................................................................................................................................9
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Assignment on Fashion Retails Brand 2
Introduction
Zara SA is a Spanish fashion brand for clothing and accessories, it is based in Arteixo in Galicia.
It is the world's largest apparel retailer. In the 1990’s the store expanded in the United States,
France and Europe. Today, Zara has 6500 stores across 88 countries around the world (Wang,
2018).
Market segmentation: It is the process of segregating consumers into wide categories based on
distinguishing characteristics.
Zara
Demographic segmentation- Zara’s demographic segmentation is based on age and gender
along with the income level. It manufactures both men and women clothing. They have an
affordable and accessible clothing line. The products are more or less same in all the stores
across the world. There may be some alteration based on the policies of the countriesm (Lindén,
2017).
Behavioral segmentation- The customer is Loyal towards the brand. It has been estimated that
women are very much influenced by the offers and new marketing strategies that makes them
come more often in Zara stores.
Geographic segmentation- The brand is present in 88 countries. It has more than 6500 store.
They are not limited to developed economy. The brand is targeting majorly countries those are
liberal in fashion wears. They are huge success in developing countries.
Lifestyle segmentation- Zara is a fashion clothing line. It focuses on trending fashion of clothes
designed for men and women. It is considered as fast moving, trendy clothing brand. Zara makes
clothes for fashionable people so that they keep coming back for new designs as Zara keeps
updating its store on weekly basis (Truong, 2016).
Nike
It was founded in 1967 by Bill Bowerman and Phil Knight. The company is headquartered near
Beaverton, Oregon. It is an American multinational company that designs, develops,
manufactures, and markets the sales of footwear, apparel, equipment, accessories, and services. It
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Assignment on Fashion Retails Brand 3
is the world's largest supplier of sports shoes and a major manufacturer of sports equipment, with
revenue of revenue of $ 40,601 million in 2018 (Lee, 2106).
Demographic segmentation- Nike targets customers according to their age, gender and life
cycle stage. Its customers are between 11-45 years old, both male and female. In order to build
loyal customer they target teens. In 2014 before the world Cup, Nike promoted campaign that
glorified football athletes playing football with young teenagers, trying to influence them to
become like their idols.
Behavioral segmentation- Nike targets on the way its products make consumers feel.
Nike engages the customers by providing unique quality and innovative products in wide range.
Nike has become a major brand in sports section of the world market. Consumer feels proud to
be associated with Nike.
Geographic segmentation- It segments market based country region, city and popularity density
of the brand in any region. Nike’s largest market places are North America, Western Europe and
China focusing on urban areas with higher purchase densities. Nike promotes different campaign
strategies for different regions as sports differentiate region wise.
Lifestyle segmentation- Nike is sports brand and its main target audience is athletes or teen who
are inspired by the thought of sports. Nike divides its market in upper middle and upper class.
Customers of Nike love to invest in high priced sports shoes and equipments just to be associated
with the brand (Sisson et al, 2018).
Zara sales Policies
As Zara services in the market for so long due to customer loyalty it cannot upset nay of its
customer at any point. It produces clothes those are fee from any kind of toxic material. It
focuses on pulling the customer and pushing its clothes on them. They keep innovating and
developing their system for the convenience of the customers. They are now enabling the bar
code scanning system for the customer (Kashyap, 2019).
Zara has follows the 4Es of marketing strategy
Experience, earn and enjoy the Product;
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Assignment on Fashion Retails Brand 4
Exchange is allowed only for some major reason.
Evangelism by valuing the product correctly and looking after the convenience of the
client.
Every Place for everyone. They have convenient shopping policies so that its brand is
loved all over the world.
Nike Sales policies
As Nike is a sports brand it represents the fit and fast generation. The Shopping policy is not
very stringent but it has some policies which are important to keep in mind. As it has personal
care products, shoes and other sports equipment it can’t let the customer use and return. It has
some policies regarding product exchange. Company follows the 4 e policy but with more
indulge of policies. The company is very innovative it keeps updating it system. It accepts
payment in any mode. To influence the customer the company follows the strategy of producing
durable spots shoes. It has one of the most comfortable, innovative and toxic free durable sports
hoes. They keep the shop presentable with statues and mannequin, poster and logos to encourage
sportive nature of customers (Airhart, Eckert, and Iverson, Nike Inc, 2018).
Adopting new policies
Both the company is world best fashion retailers. They are very much into innovation to make
everything convenient for the customers. They keep running offer like autumn sale, summer sale
and so on. Especially Nike runs special offer to attract young target at the time of football,
cricket or any sport events. The offers gives huge sale (Lemmi Gonzalez, 2015).
Zara is all time fashion store it keeps updating it clothes line weekly. Thus sales offers are
limited in its case but it also run winter and summer sale to attract women and men. As there are
many apps that provide discount on purchase from their apps. Or can use coupon code to avail
discounts. This marketing strategy is very famous in developing countries as the customer value
saving on purchase.
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Assignment on Fashion Retails Brand 5
Task Two:
Part 1
A trend in the fashion is very important in the market. Reason being that this entire trend gives
the reason to customers to shop frequently. The new design are launched every quarter because
the customers are never satisfied. Both Nike and Zara is a high end fashion retailer. They set the
trend and other low end fashion retailer copies them. The fashion trend gets influenced by the
need of the generation target market for which they keep on innovating. Not only in clothes but
also in the footwear range, to give more fashionable comfort (KITAGUCHI et al, 2018).
Zara keeps designing new dress every week and launches it immediately in the shop across the
world. The recently the fashion of jackets where restored in the mind of the teen aged customers.
The jackets were not only made of denim but also cotton, leather and other fabric and in many
shades and colors. They tried to bring back the 80’s era of trendy fashion.
Same Way Nike has launched a sport shoe that can breathe. The technology was developed to
make the shoe renounce and gasp air inside when the sports person jump giving it a spongy
feeling to the wearer.
These new invention the clothing and sports shoe line keep the customer coming back even when
are having a new pair of sets. The target is to keep them enthusiastic of what make come next in
the market. The Zara’s new fashion trend in popularizing the jacket which impacted the sales.
The concept was liked so much that the sales rose in many store and the demand also increased
for such products. Many low end retailers copied those designs and sold.
Same way the Nikes new innovative shoe was sold at higher price and was liked by popular
sports celebrities. The advisement by one of the sports celebrity made the brand last for many
years in the shop. The retailer service is to keep the customer happy and influence them to keep
coming back for more such trendy products. And both the firm succeeded in their innovative
trend.
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Assignment on Fashion Retails Brand 6
Part 2
The target market of both Zara and Nike is the young, teen trendy sports loving customers. They
are both very innovative brand they invest a huge amount of money in R & D. they keep the
fashion
They use the words “unfashionable” and “fashionable” to show their clothing style is a very
recent version. Zara keeps updating its fashion with the help of fashion designer and by showing
the dress in the fashion shows to understand the perspective interest of sitting clients. Same way
is followed by Nike to meet the needs of the target market.
The Clothing line Zara has developed a market to cater fashionable customers. Customers are
interested in the fashion market who wants to look trend and who loves to shop. It targets higher
to upper middle class of customer. The clothes are fashionable, made of non toxic material. They
keep it simple the lesser it will last the better will be the sales. Zara has a fashionable image
clothes worn by celebrities which influences teen to adopt Zara design which are also affordable
(Parker and Wenyu, 2019).
Nike is into sports shoes line and they target sports loving customers. They sell sports related
accessories. The target market is segmented as new learner, experts and old group. They have
make the outlook of the shops also very sports loving.
The gaps are very few as these brands are very successful. The success is the result of innovating
every minute. The gap can be realized in the approach. They can open more shops and can enter
into lower middle class clothing and shoe line. There are many customers who want to weak
Zara or Nike but are not able to afford it.
The 3 difference are
Mass markets retailer are standardized where as niche market stores are ever changing.
Mass market retailer has variety of customer a huge range of clients. A niche market
retail has particular group of clients. As its starting the new market, the product are like
by selective group only.
A mass market retailer will not get influence by it customer but a niche market retailer is
highly affected and influenced by the demand and supply of the customer (Kasemsap,
2018).
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Assignment on Fashion Retails Brand 7
Conclusion
Both the fashion retailer is world famous and follows the market trends to be in focus. They cater
to all the needs of their target market. The fashion line is accessible and affordable to certain
class of people.
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Assignment on Fashion Retails Brand 8
References:
Airhart, R., Eckert, A. and Iverson, J., Nike Inc, 2018. Sports shirt with label. U.S. Patent
Application 29/595,561.
Kasemsap, K., 2018. The roles of corporate marketing strategies and brand management in the
global retail industry. In Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications (pp. 294-325). IGI Global.
Kashyap, P., 2019. A Study on Measuring the Effectiveness of Visual Merchandising and its
Impact on Sales at Zara Store, Fort.
KITAGUCHI, S., TANAKA, S., Tetsuya, S.A.T.O., HIROSAWA, S. and HAYAMI, T., 2018.
Color Perception of Clothes Images--Observation Point and Perceived Color of Clothes. Journal
of the Japan Research Association for Textile End-Uses/Sen'i Seihin Shohi Kagaku, 59(7).
Lee, D., Cottingham, M., Pearson, D., Kim, S.H. and Park, J., 2016. Collaborative strategy in
sports industry: team co-branding. The Service Industries Journal, 36(11-12), pp.595-613.
Lemmi Gonzalez, D., 2015. Correlation between brand Identity and brand Image: Study of Zara
in China.
Lindén, A., 2017. Is green the new black?: An investigation of underlying factors that may
influence Generation Y consumers’ purchase behaviour of sustainably produced clothes.
Parker, C.J. and Wenyu, L., 2019. What influences Chinese fashion retail? Shopping
motivations, demographics and spending. Journal of Fashion Marketing and Management: An
International Journal.
Sisson, E.F., Barateig, B., Sisson, J.B., Wimalanayagam, J. and Delli, M., Universe Point LLC,
2018. Shoe soles for flying disc sports. U.S. Patent Application 29/598,588.
Truong, N.V., 2016. Fashion Supply Chain Management: Strategies for Lead Time Reduction
and Environmental Sustainability: Case Studies from Zara and Everlane (Doctoral dissertation).
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Assignment on Fashion Retails Brand 9
Wang, Y., 2018, July. An Exploratory Study of Brand Strategy in Fast Fashion Brand--Using
Zara as an Example. In 3rd International Conference on Contemporary Education, Social
Sciences and Humanities (ICCESSH 2018). Atlantis Press
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