Comparing and Contrasting Methods Used by Zara and ASOS.com for Attracting Customers

This study compares the methods used by Zara and ASOS.com for attracting customers and discusses the effectiveness and limitations of these methods. It also explores the importance of customer satisfaction and loyalty in the fashion industry.

Digital Marketing

Table of Contents
Abstract............................................................................................................................................1
INTRODUCTION...........................................................................................................................2
Comparing and contrasting methods used by Zara and ASOS.com for attracting customers.....3
Using Anderson Swaminathan (2011) model by comparing that how Zara and ASOS drive
customers’ satisfaction.................................................................................................................5
Effectiveness and limitations of Anderson Swaminathan model................................................8
The most important thing of this study........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

Abstract
This presented digital marketing project or study intends to show importance of performing
several functions and activities of marketing which is being performed by making an effective
use of internet, social media platforms and others. This study compares different strategies of
attracting customers using by Zara and ASOS which both are well known clothing retailers. Aim
of comparing strategies of both companies is to know the best and effective one and suggesting
the other company about making changes in systems and strategies for being in the competition
and attracting customers. This present digital marketing study also shows importance of
increasing customers’ satisfaction and loyalty as well. It is considered one of the main element
and factor which needs to be focused the most and is being focused in this study the most by
both retailers.
Further, it also shows ways of increasing customers’ loyalty as per the effective views of
Aderson and Swaminathan articles which shows some factors of increasing customers’
satisfaction. All factors like commitment, interaction with customers, adaptability allows
companies to satisfy customers’ needs and retain them with the company for the long run.
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INTRODUCTION
Marketing can be defined as an important function which consists of a set of actions
which are being performed by organizations with the main aim to promote their products and
services. When this function is being performed by with the help of internet, mobile device and
all other digital gadgets is called digital marketing (Kannan, 2017). There are several companies
who are now performing their marketing functions by making an effective use of internet and
technology. This present study of digital marketing is based on 2 popular companies or brand in
which one is multi channel Zara and other one is dot Com organization ASOS. Zara is a Spanish
apparel retailer based in Galicia. This retail clothing company was founded by Amancio Orteaga
in the year of 1975. This fashion retailer is known and specializes in fast fashion which includes:
show, swimwear, clothing, perfumes, beauty products etc. It has around 2,270 stores worldwide.
It makes an effective use of digital marketing and it is its one of the main key of the success.
Qualitative products are other main key which makes it successful. On the other hand,
ASOS.com is a British online fashion and cosmetic retailer. This company was founded by Nick
Robertson in the year of 2000 and having headquartered is in London, England. This online
retailer Website provides approximate 850 brands and its own brand of clothing and accessories.
The main target of this fashion retailer is young adults because they prefer to use new fashion
just to look good and feel good.
This study of digital marketing will show a comparison and some similarities between
Zara and ASOS. Com in the context of digital marketing and others main methods which both
companies use to attract customers and retain them. It will also show importance of customer
satisfaction in fashion industry and how it can help companies in accomplishing their goals,
expanding their businesses as well as make them differ than others. Further, it will discuss
importance as well as limitations of Anderson and Swaminathan model which is being used by
both companies in order to know that how it allows both companies to satisfy customers needs
and increasing loyalty. Lastly, this present study will show importance of conducting this study
and increasing importance of using digital marketing, suitability of this type of marketing along
with some limitations.
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Comparing and contrasting methods used by Zara and ASOS.com for attracting customers
Before understanding ways of Zara and ASOS.com it is important to understand main
aim of both companies as what they want to achieve and why they are performing all functions
including marketing. The main aim of Zara is to increase customers’ equity, satisfaction level as
well as purchase frequency (Bui and Muñoz Martinez, 2019). On the other hand, aim of
ASOS.com Company is to provide impeccable services with incredible choice and retaining
customers with the long run. So, from discussed objectives it can be said that both companies are
customers centric and want to satisfy their needs as well. Here are some ways used by both
companies in order to attract customers such as:
Promotional strategy: In the context of Zara, it is stated that it focuses on pulling people
in and not pushing products out it means the main focus is of this company is on attracting
customers not only sell out products. The most powerful marketing strategy which allows it to
attract customers is pull marketing strategy. With the help of AR applications and technology,
Zara excels by pulling customers of all types into its brand. On the other hand, ASOS believe on
practicality and that is why it focuses on Seen on screen campaign in order to spread word
which is being inspired by celebrities in regards to fashion business. This campaign and such
kind of campaigns like fashion show on the screen was considered as an undeniable success. In
this context it is also stated that because of this attractive campaign and selling if several
products has made it able to win the best trendsetter award from the Sunday Times. So, in the
context of attracting customers’ strategy as well as promotional strategy, both retailers use
different strategies and as compare to Zara, ASOS.com has more attractive strategy (Wright,
2018). One of the reason of its success and attractiveness is customers prefer to buy those
products and clothing which have been wore by celebrities and praised by celebrities because
they know that celebrity is on the top in the context of fashion industry.
Exclusive Twitter Discounts: In addition, in the context of promotional, marketing and
customers’ attraction strategies, ASOS has proven that strategies play an important role. It is
stated that this retailer use exclusive discount twitter strategy and as per this strategy it updates
all informations regarding clothing and it suggests its all followers about outfit with uploading
images as per the needs of customers along with links of clothing. With making an effective use
of Twitter as like promotional way or source of products, it offers exclusive discount on some
items and to regular customers. It makes customers feel valued and motivated and they remain in
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the contact and loyal with the company for the long run. One of the main aim of Twitter
discounts of ASOS is to encourage people to follow them and do mouth publicity. After making
customers followers it remains in continuous contact by providing them informations about
offers, deals on products that they might be encouraged to buy.
Combination of media channels: In the context of advertising, it is stated that Zara does
not more focus on advertising and does not also invest in it. After all it is well known retailer and
have a lot of customers. One of the reasons of it is it provides qualitative and diversified products
to customers, treat with them in an effective manner, use all strategies customers-centric and
receive feedback. It alternative media channels include: integration of online store, Face book
page, App store, Zara connect, Zara YouTube, Twitter, newsletter, word of mouth etc. So, as
compare to ASOS it can be said that its strategies are compatible (Palmatier and Crecelius,
2019).
Pricing strategy: In the context of customers attracting strategies, it can be said that
pricing is one of the main factor which is being considered by customer while making buying
decision. It is important for both companies to have attractive and effective pricing strategy in
order to attract customers and retain them. In the context of Zara, it is stated that it uses low
pricing strategy as it does not invest in advertising which decreases its costs and allow it to have
low cost structure as compared to its competitors. On the other hand, it is also analysed that
ASOS also sell its qualitative and diversified products at cheaper prices. It also offers attractive
discounts and offers to customers which allow customers to retain with the company. In addition,
it is also analysed that it has mid as well as end season sales in which it sells products at much
discounted rate. So, it can be said that both companies use lower pricing strategy but Zara does
not provide offers as like ASOS.
Feedback as a common strategy: By getting feedbacks from customers it tries to satisfy their
needs accordingly which makes customers feel valued and motivated (Wang, 2018). Taking
feedback is common between both ASOS and Zara retailer because ASOS also believe in taking
feedbacks in order to satisfy their needs and retain them with the company.
Here are some factors which shows difference and effectiveness include:
ASOS Zara
As compare to Zara, it has an effective brand
recognition as it provides more discounts and
In total Zara has approximate 3 active coupon
codes and as compare to ASOS it lacks behind.
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attractive features for promoting and attracting
customers than Zara.
It has better curvaceous options than Zara. It does not offer Google play support to
customers which also show that it lacks behind
than ASOS.
It provides Google play support, student
discount policies, official coupon supports and
better petite size inventory than Zara.
It does not accept financing support.
It offers its customers free return policy as well
as free shipping policies which make them feel
valued.
ASOS has overall score of 5.0 based on its 63
ratings on Knoji.
Zara has overall score of 4.2 based on around 4
ratings on Knoji.
So, from the above table, it can clearly be seen and can be said that ASOS is better than
Zara as it uses several effective customers’ attracting strategies than Zara and it is the reason as
why it has got 5.0 ratings (Zara Vs ASOS, 2018).
Using Anderson Swaminathan (2011) model by comparing that how Zara and ASOS drive
customers’ satisfaction
Before understanding effectiveness, importance of model it is important to understand
that why companies use this model as in which context this model helps companies. So, in the
context of this model, it is analysed that it is an effective model which allows companies to
increase customers’ loyalty as well as loyalty in E-market. In the context of E-business market, it
can be said that competition is increasing day by day and it is becoming difficult for companies
to being in the competition but with the help of this model, companies are accomplishing their
goals. One of the main reason is with the help of this model, both Zara and ASOS companies
increase loyalty and satisfaction of customers which is one of the main key of the success
(Putnam and et.al., 2017).
Importance of Anderson model: This model allows companies to focus on some factors which
can definitely help them out in not only attracting customers but also retain them by increasing
their loyalty. All these main 6 factors include: Commitment, transaction, adaption, ease, network,
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assortment and engagement. Each factor is customer centric and shows that how customers can
be attracted and increased loyalty. In the context of retail sector, it is stated that companies
cannot achieve customers loyalty for long by keeping interaction online distinct and separating
them from offline. But in the context of Zara and ASOS, it is stated that ASOS mainly focuses
on online shopping and online delivery of products to customers so, this model can be beneficial
for this retailer more as compare to Zara. Zara has more offline stores than online. So it can be
said that Zara needs to focus on adapting its system and changing it as necessary in order to
create seamless brick and click stores. For being in the competition and taking advantage of this
model, increasing loyalty, Zara needs to make changes in some of its strategies and systems as
well.
In addition, in the context of effectiveness of this model and reason as why Zara requires
to change its system is online shoppers have facility or opportunity to reward those companies
who do well and providing suggestions to those who are yet not effective. So, by geet9ing
suggestions and rewards accordingly, companies can also know their actual position in the
market in customers’ point of view. Customers are the one who can analyse and give ratings to
companies and it also shows their loyalty. So, it can be said that Anderson Swaminathan
customers’ loyalty model and author is effective and as compare to Zara, ASOS can take more
benefits to it because its all systems are online and it is a website based company. For more
understanding its effectiveness it can be understood by examples as which companies are making
use of it and has stated that it is their one of the main key of the success. For example: Amazon
as its many online customers use Brick and Mortar best buy, Wal-Mart stores also inspect all
products sold by Amazon before making an effective buying decision. Another understanding
which both ASOS and Zara can have with the help of this model includes:
Customers’ preferences and needs: As per the Anderson and Swaminathan authors, it is stated
that this model can allow companies to identify all those factors which can shape customers
satisfaction as well as loyalty. It is being proved because both authors of this model conducted in
depth interview by involving around 20 online shoppers and 10 E-commerce executives.
Collaborating with marketing research organization, they collected effective data regarding
customers’ loyalty. From those informations and collected data, they got to know that there are
main 6 factors which can drive customers’ satisfaction and in turn influence loyalty which is the
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main aim of both Zara and ASOS Company. Roles of each factor can help Zara and ASOS in
increasing loyalty such as:
Adaptability: Fashion industry is changing industry in which customers’ needs changes on
continuous basis. As per the current trends and changing life style they put pressure on
companies to make changes in colours, size and other elements of clothing. So, as per this factor
according to the view of Anderson and Swaminathan, it is important for both companies to find
such ways by which they can tailor their products, services as well as shopping experiences.
With the help of advances in data mining as well as purchase behaviour modelling, both retailers
can make an effective use of cloud data to predict and target individual customers’ buying
interest as per their needs. So, it can be said that this model and focused factor of this model
plays an important role in increasing customers’ loyalty.
Customers’ commitment: Rather, adaptability, commitment to customers is other main element
which can allow retailers to retain their customers by increasing their loyalty and trust.
Commitment to customers can be done by concerning about them, identifying their problems and
solving them. One of the best way which Anderson and Swaminathan authors tell to companies
who wants to committed to customers is rather finding ways as per their own of solving
customers’ problems, committed companies require to ask their customers as how would they
like to their problems to be handled. It makes customers feel valued and motivated they feel that
companies are concerned towards them and take them into consideration (How to Drive
Customers’ Satisfaction, 2013). So, it can be said that this model does not only allows companies
to identify factors but also tell them ways as how they can take advantages of each factor and
increase customers’ loyalty.
Communication and interaction with customers: It is also considered one of the main
important factors which can allow Zara and ASOS to retain their customers, accomplish their
goals, being in the competition and increasing customers satisfaction. It is a tendency of
customers that they like to share their views and suggest companies and other if they feel. For
this companies need to provide opportunity to customers to give suggestions and share their
views in comment box. It does not only makes them feel pleased but it can also allows
companies to attract customers to the great extent because it is stated that approximate 84% of
online users that they become influenced by reviewing views of customers and comments given
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by them as well as effective replies of companies. So, it can be said that by being in the contact
through website and via other modes, companies can increase customers’ satisfaction (Guedes
and et.al., 2018).
Effectiveness and limitations of Anderson Swaminathan model
Anderson and Swaminathan model is considered one of the best and effective models in
the context of digital marketing and for E-commerce companies. This model allows companies
to focus on all those factors which can increase loyalty among customers regarding E-market.
Satisfaction of customers is the main key which allows companies to expand their business and
increase sales. Customers prefer to buy products and services from those companies who
perform activities in a sustainable manner and for companies it is important to make customers
believe in them. So, with the help of this model, Zara, ASOS and other companies can increase
trust of customers in E-market. E-trust is known as the main keys to increase as well as building
customers loyalty and improving effective relationship with them. Only attracting customers is
not the main task for companies but it is important for companies including ASOS.com and Zara
to retain all their customers with the company for the long run (Pilelienė and Grigaliūnaitė,
2016). So, here are some features and effectiveness of this model as how it can help companies
in accomplishing their goals such as:
 This model has an ability to allow companies to reveal all website quality based factors
which can affect customers’ satisfaction of E-commerce.
 It also allows companies to make an effective research as what customers are wanting
and which types of needs they have about all E-commerce customers in order to satisfy
them by providing them products accordingly.
 It also allows companies to design the model of website quality based E-commerce
customer satisfaction index.
So, from the above discussed, it can be said that this model has several features which can help
both Zara and ASOS.com retailers in increasing customers’ trust and satisfaction which is one of
the main common aim of both companies.
Rather, effectiveness, this model has some limitations such as:
 It is not suitable for those customers who prefer to buy products from stores directly or
offline as companies have to implement different strategies to identify needs of such type
of customers which can be time consuming.
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 Investment in this model can be expensive and it cannot be used by small size of
organizations.
The most important thing of this study
In the context of the most effective thing and factor which i learned and I think that plays
an important role is customers’ satisfaction. This study discussed different ways of Zara and
ASOS.com of attracting customers and using digital marketing. Marketing function is one of the
important function nowadays because it allows companies to make customers aware about their
products’ features. But I came to know that all these activities of marketing like promotion,
communication to customers are being done or performed only because of attracting customers
and increasing sales (Rattan, 2017). In addition, I can also say about effective content and factor
of this study is customers’ loyalty which is the most important key of the success because
companies can attract customers by providing them attractive features. But retaining them with
the company is the main thing which makes companies successful and long lasting in the market.
So, I can say that customers’ loyalty and satisfaction is one of the most important thing which I
learned from this study.
CONCLUSION
From the above assignment, it can be concluded that digital marketing nowadays has
played and has been playing an important role. It is the main key of the success of companies
who are making it as an effective function. It has shown different ways of attracting customers
by different companies as how different companies make use of digital marketing and attract
customers. One of the most important element which has been discussed the most is importance
od Anderson Swaminathan model of customers’ satisfaction and loyalty in E-market. E-
commerce companies and those companies who market their products and themselves with the
help of internet requires to increase loyalty as it only can help them out in attracting customers,
retain them and improving relation with them. Further, this study has also discussed some
attractive features of Anderson Swaminathan model as how it allows companies in increasing
loyalty and satisfying needs of customers. One of the main reason is it allows companies to focus
on all those factors which customers seek to have like their needs, commitment, adaption,
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engagement and other which influence customers to retain with the company for the long run.
This study of digital marketing has also shown the most important factor of the whole study
which was the main focused area and it was customers’ loyalty and their satisfaction. All
marketing functions of digital marketing has been performed to attract customers, increasing
sales and satisfying them. So, it has shown that customers’ satisfaction is the main key of the
success of organizations which also allows them to being in the competition as well as taking
advantages of external opportunities.
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REFERENCES
Books and Journals:
Bui, A.Q. and Muñoz Martinez, V., 2019. The impact of product promotion on customer loyalty:
A quantitative study on Zara.
Guedes, T.A.A. and et.al., 2018. FACTORS THAT IMPACT THE E-CONSUMER
LOYALTY. Revista Reuna. 23(2). pp.23-42.
Kannan, P.K., 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing. 34(1). pp.22-45.
Palmatier, R.W. and Crecelius, A.T., 2019. The “first principles” of marketing strategy. AMS
Review. 9(1-2). pp.5-26.
Pilelienė, L. and Grigaliūnaitė, V., 2016. A model of website quality-based e-commerce
satisfaction index. Scientific annals of economics and business. 63(1). pp.29-46.
Putnam, C. and et.al., 2017, October. Effects of Commercial Exergames on Motivation in Brian
Injury Therapy. In Extended Abstracts Publication of the Annual Symposium on
Computer-Human Interaction in Play (pp. 47-59).
Rattan, H., 2017. Reward preferences of millennials in the consulting industry and their
influence on attraction retention, motivation and engagement (Doctoral dissertation,
University of Pretoria).
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.
Wright, F., 2018. An analysis of ASOS’s use of online relational strategies to generate customer
engagement. Journal of Promotional Communications. 6(2).
[Online].
Zara Vs ASOS. 2018. Available through: < https://knoji.com/compare/asos-vs-zara/>
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How to Drive Customers’ Satisfaction. 2013. Available through: <
https://sloanreview.mit.edu/article/how-to-drive-customer-satisfaction/)>
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