Business and Management - Zara

DISSERTATION
(Business and Management)

ABSTRACT
Brand loyalty can be defined as a feeling or attachment which a customer have with a
specific brand which compels it use the products and services of that brand irrespective of any
changes in the market. The research project is about analysing the influence of brand loyalty on
the sales and profitability. There is no doubt that possessing a sound and strong loyal customer
base is considered as a competitive advantage for a company that puts it in a position of earning
higher profit margins than its competitors in the market. In the report, primary research is
conducted which has thrown lights on the factors such as convenience, meeting the expectations
of the customers, personal relationships with customers and rewards must be considered by the
managers of the ZARA for maintaining and strengthening its brand loyalty.
The report further highlights the methodology for conducting such primary research.
Like, the scholar has applied qualitative research methodologies in determining the solutions to
the problems of the research study. The report has included a part of recommendation in which it
has suggested the managers of ZARA regrading how can they improving their brand loyalty for
progressing further in the market. These recommendations include offering value and
phenomenal customer experiences as such things would help the company in increasing its
customer engagement which in turn would result into creation of brand loyalty factor amongst
the customers.

Table of Contents
TITLE:.............................................................................................................................................1
1.0 INTRODUCTION.....................................................................................................................1
1.1 Identify a specific researchable topic area.............................................................................1
1.2 Establish the importance of the problem...............................................................................2
1.3 Aim of the research project....................................................................................................3
2.0 Research Objectives and Research Question(s).........................................................................3
Research Objectives.....................................................................................................................3
Research questions.......................................................................................................................3
3.0 Literature Review.......................................................................................................................3
The concept of brand loyalty.......................................................................................................3
The impact of brand loyalty on sales and profitability of ZARA................................................4
The factors which has to be considered by managers of ZARA for maintain its brand loyalty..5
Recommend the ways through which brand loyalty of ZARA can improved.............................6
4.0 Methodology..............................................................................................................................6
4.1 Research Design, Research approach and Research Type.....................................................6
4.2 Rationale................................................................................................................................9
4.3 Significance..........................................................................................................................10
5.0 Access to Data and Research Ethics........................................................................................10
6.0 Limitations...............................................................................................................................10
LITERATURE REVIEWS............................................................................................................11
RESEARCH METHODOLOGY ..................................................................................................14
Research type:............................................................................................................................14
Research approach:....................................................................................................................14
Research Design:.......................................................................................................................15
Research Philosophy:.................................................................................................................15
Sampling:...................................................................................................................................15
Data collection:..........................................................................................................................15
Data analysis:.............................................................................................................................16
Ethical Considerations:..............................................................................................................16

Research limitations:..................................................................................................................16
Time scale..................................................................................................................................16
DATA ANALYSIS........................................................................................................................18
CONCLUSION & RECOMMENDATIONS................................................................................26
Conclusion.................................................................................................................................26
Recommendations......................................................................................................................26
REFERENCES..............................................................................................................................28

TITLE:
“A critical analysis of consumer's brand loyalty on sales and profitability of business
enterprise.” A case on ZARA.
1.0 INTRODUCTION
Brand loyalty refers to understand the tendency of consumer's preferences to buy product
and avail services on regular basis. Brand loyalty is important because it helps to compete with
other parties in industry. In order to make good brand image, it is important that consumers are
ready to buy their products (Alhaddi, 2015). Consumers are the main asset for growth and
development of business. So it is important to keep them satisfied in order to get success in
industry. When consumers are ready to purchase product frequently, then it is important to
regular improve quality and features of products.
Thus, present research is based on ZARA company which was founded by Amancio
Ortega and Rosalia Mera in 1975 and they are specialised in dealing in clothings and bags
products. As ZARA is one of the leading brand in fashion industry. ZARA is Spanish Fashion
retailer in Arteixo Spain. Its parent company is Inditex. ZARA has good brand image because
this provides god quality products within affordable prices. This organisation has good
employee's strategy through which work force is satisfied and they give their best to deal with
consumers. Present research is based on the topic relating to brand loyalty which means a trust
on brand which is to be maintained by the consumer for longer time period and also it is mainly
engaged by most of the company to maintain their brand loyalty among consumer for future
growth (Sung and Goebel, 2018). They carry a strong brand image in market and also use
different strategies to attract the customers towards their products for longer period. They design
such products according to the needs and demand of such products and also bring in market with
strong techniques to attract the interests of customer towards their products.
1.1 Identify a specific researchable topic area
Research is conducted on brand loyalty. This is the topic which is important because
these days, there is much competition in retail sector, so in order to achieve competitive
advantage, it is important to create brand loyalty. Brand loyalty is the topic which helps to get
success in industry with easy growth and development. Hence importance of this topic is to
understand impact of consumer's brand loyalty on business sales and profitability. With this
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topic, it is easy for researcher to understand policies with which long term relations can be
maintained with consumers.
As there are many organisations which are dealing in fashion retail sector such as Marks
and Spencer, Charles, etc. Hence there is competition in market. For instance: as compared to
competitors, dresses of ZARA are expensive, then consumers may shift to other brand. This has
image on consumer brand loyalty and sales of association in negative manner (Basile and Faraci,
2015). When operations are not performed in ethical and reliable manner, then this affects brand
image in negative manner. These days, marketing is the best tool through which feature of
product and services can be launched in society. Hence, advertisement not manipulating actual
product and services. These days, there is use of social media sites for advertising in new and
innovative manner.
1.2 Establish the importance of the problem
In case of ZARA, there is issue in brand image of organisation because they are
consistent to their policies. This affects performance of overall organisation as compared to other
enterprises in industry. Brand images of ZARA is not good in current years. This is because of
change in trends and managers of ZARA are not able to plan these changes properly. They are
not accepting change in trend which is the biggest issue of drop of sales (Batkovskiy and et. al.,
2016).
Sales of ZARA is not dropped down by one third in 2016. Sales gets down by £58.3 to
£39.2 million. As per research, it is identified that they are paying dividend of £30.5 million
which is low as compared to £47 million in 2016. This is the issue faced by ZARA in current
year, so there is reduction in their consumers. But sales is increased by 13% to £602.7 million.
This issue affects performance of ZARA in industry because employees, shareholders, etc. may
withdrawal their consent to perform activities. With reduction in profits, employees may get
dissatisfied and they do not want to continue with ZARA. Same with shareholders, if share value
is going down, then this affects performance of overall company (Zara's UK profits drop sharply
despite record sales, 2019).
With conducting this research, it is easy to plan ways through which sales can be
improved. As role of, angers is important to maintain and improve brand image. With increasing
brand image, it is easy to improve brand loyalty. So this topic is best and reliable as per current
siltation of ZARA and market trends.
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1.3 Aim of the research project
“A critical analysis of consumer's brand loyalty on sales and profitability of business
enterprise.” A case on ZARA.
2.0 Research Objectives and Research Question(s)
Research has some objectives which are the framework for conducting research. These
are the benchmarks which has to be followed. While conducting this research, these aspects has
to be considered. This is relevant for getting authentic outcome as recommendations and
conclusions. Research objectives for conducting this research is:
Research Objectives
 To understand the concept of brand loyalty.
 To analyse the impact of brand loyalty on sales and profitability of ZARA.
 To determine the factors which has to be considered by managers of ZARA for maintain
its brand loyalty.
 Recommend the ways through which brand loyalty of ZARA can improved.
Research questions
 Do you understand the concept of brand loyalty?
 What is the impact of brand loyalty on sales and profitability of ZARA?
 What are the factors which has to be considered by managers of ZARA for maintain its
brand loyalty?
 What are the ways through which brand loyalty of ZARA can improved?
3.0 Literature Review
The concept of brand loyalty
Brand is the logo, trademark of any organisation which they earn by providing the best
product or services to consumers. In order to make good brand image in industry, it is important
to consider demand of consumers. Brand loyalty refers to the consumer's perception regarding
availing services from specific brand. As per Manmohan Joshi consumer behaviour is main
concept which emphasise on increasing sales when consumers are aware. Brand loyalty is core
asset which these days organisations are using the latest technologies for satisfying consumers
and providing them best services. This has direct impact on sales and revenues of ZARA. In
brand loyalty involvement of consumers is crucial (Bell, Bryman and Harley, 2018).
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According to Jayson DeMers, there are two types of brand loyalty i.e. Brand loyalists and
Repeat purchase. Brand loyalists are some consumers who prefers to purchase products on
regular basis and loyal towards their brand. They does not get diluted in case other brand is
providing at lower cost. While there are some consumers who purchase same brand but have
optimal use experience. Under brand loyalty of ZARA, there is impact of personality,
relatability, loyalty program, etc. It is important for managers of ZARA to provide complete and
relevant information about product and services. As these days there is much competition in
retail fashion store, so it is important to consider changes in demand of consumers. This has
direct relation
The impact of brand loyalty on sales and profitability of ZARA
ZARA has good brand image because they target high class people. They prefer to serve
best quality services. In fashion industry, there are different brands so in order to compete with
them, there is requirement of proper planning. According to Lisa Furgison, brand loyalty can
drive sales because consumers who are loyal visit store on frequent basis. As per research, it is
clear that out of total sales 20% is because of loyal consumers, but this 20% consumers assist in
80% revenues of organisation. Brand loyal consumers have direct impact on sales and profits of
ZARA. It is important for managers to keep them satisfied with use of different strategies. For
loyal consumers, there is no requirement of marketing and promotional techniques. Good deals,
phenomenal customer experience, shared values, etc. are some positive results which ZARA can
achieve by performing business operations in best and relevant manner (Brannen, Piekkari and
Tietze, 2017).
As per Tina Young, there are three steps through which positive impact of brand loyalty
can be achieved. They are discussed as under-
Awareness- This is the first step in which awareness about product such as clothes, etc.
are created by consumers. This is relevant because this frames base of all activities through
which consumers become permanent. It is responsibility of marketing department to conduct
marketing activities in interesting manner. Promotional events, advertisements, etc. helps to
create awareness about product and services.
Preference- After awareness among people. They prefer to purchase specific product.
This preference will remain same until, ZARA is serving product according to consumer demand
and budget. There is difference in dresses as per occasion, geographical background, etc. hence it
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is responsibility of managers to alter stock accordingly. This makes consumers satisfied and they
become permanent consumers.
Insistence- As per this step, when consumers are satisfied then they insist others as well
to purchase from specific brand. For instance: a consumer is satisfied with quality of products,
price, promotional strategies, services, etc. of Zara then he/ she insist their relatives, friends, etc.
to be part of ZARA. This is self-promotion which is best technique of improving sales and
profits.
Hence from the above discussion, it is clear that improving sales and profits are best
techniques through which sales and profits can be enhanced. There is vital role of marketing
department to attract and creates awareness among consumers (Cassell, 2015).
The factors which has to be considered by managers of ZARA for maintain its brand loyalty
There are different factors which has to be considered by managers of ZARA in order to
maintain same brand loyalty. In current market, growth of organisation is possible in case of
good brand image and awareness of consumers. As per Michael Houlihan & Bonnie Harvey
some factors which affects brand loyalty are discussed as under-
Convenience- Convenience of consumers must prime factor which has to be considered
by managers of ZARA for brand loyal consumers. There must be easy check in, check out, fast
billing system, etc. for regular consumers.
Expectations- Expectation of loyal consumers are more because they feel familiar with
brand. It is important to provide best services to meet expectations of consumers. Expectations
related to price, quality of products, discounts, etc. must be considered by managers of ZARA
for brand loyal services.
Personal relationship- Personal relationship with consumers plays vital role in getting
positive outcome. When consumer is regularly visiting outlet of ZARA, then they must be
treated well. This makes brand image of ZARA stronger and consumer’s feels comfortable under
this brand.
Rewards- Rewards to regular consumers helps to maintain long term relations with
consumers. Membership card, personalised message, discount offers, recognition, etc. are some
benefits which provides satisfaction to consumers (Chang, Srirama, and Buyya, 2017).
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From the above discussion, it is identified with considering these aspects, it is easy to
make long term relations with consumers. Hence, this has direct positive impact on sales and
profits. Managers of ZARA are responsible to provide best services and improve brand loyalty.
Recommend the ways through which brand loyalty of ZARA can improved
Brand loyalty in current days plays crucial role in growth and development of
association. It is important and significant to make changes in operations to get positive outcome.
According to Lisa Furgison, there are some recommendations which helps to maintain and
improve brand loyalty among customers. Some of them are discussed as under-
 Customers must beat priority of managers of ZARA. This helps them to make feel
satisfied and core component for organisation. These days, there is use of social media
sites for interaction with consumers. So there must be timely revert to their comments
and provide satisfactory replies (Chang and Lin, 2015).
 There must be a platform where grievances, positive negative feedbacks, etc. must be
considered. This is the way through which improvements as per demand of consumers
can be analysed. This helps ZARA to expand in market and earn good amount of profits
and sales.
4.0 Methodology
Research is the method through which information and data is collected and gathered on
some specific and relevant topic. Hence, this is conducted in the best manner using different
tools and techniques. In order to understand tools and methods required to conduct research. This
framework is known as research methodology which could be understood as “Research Onion”.
Research onion contains information about methods such as research approach, research method,
design, source of data, etc. used to conduct research.
4.1 Research Design, Research approach and Research Type
Research design is the method in which research is presented. There are three types of
research design i.e. descriptive, exploratory, and experimental. In this research descriptive
research design is used because this is the method which contains all the information in clear and
concise form (Donnelly, 2017).
Research approach is the technique which is used to perform research by covering all the
aspects. There are two types of research approaches: deductive and inductive. In this research
deductive approach is used because this is the best method which suits with all other approaches.
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There are two types of research: qualitative and quantitative. In this research, qualitative
method is used. This method is scientific for observation of gathered information in numerical
terms. This method is more reliable and authentic because it covers reason behind some specific
view of respondents. In this method information is represented in graphical and chart form.
Research is authentic and reliable when data is collected from reliable and authentic
sources. There are two methods of collecting data i.e. primary and secondary source. Primary
sources refers to the method in which researcher collects information on their own from
respondents. In this method, information is new and as per research topic because researcher
collects it through personal interview, questionnaire, etc. So this method gives complete and
authentic information. While secondary method is the way through which use of online sources,
books, journals, etc. are considered. This information is collected from someone else and used by
researcher which is relevant to research topic. In this research information is collected with
secondary source. This helps to get overall description of research topic (Easterby-Smith, Thorpe
and Jackson, 2015).
Research philosophy is the way through which research is presented in best manner.
There are three types of research philosophy i.e. pragmatist, positivist, interprevisit philosophy.
In this research, pragmatist philosophy is used because this is the way in which different
prospects are covered. While conducting this research, information about factors to be consider
to maintain same image in industry is analysed. So this helps to get correct and relevant
information.
Time is important while conducting research. There are different activities such as
introduction, setting aims and objectives, literature review, etc. are conducted. In order to give
some specific time to each activity Gantt chart is used. Gantt chart is the framework which
shows research activity with their respective time this also helps to understand synchronisation
of research activity which helps to complete it on time.
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Sampling is the method through number of individuals are selected for collecting
information related to research topic. Sampling is important because it is not possible to collect
information from whole population. There are two method of sampling i.e. random and non
random sampling. Random sampling is best because there are equal possibilities of being
selected. So respondents are selected on frequently basis. Information from such respondents are
fee from biasness.
4.2 Rationale
Secondary methods of research is used to collect information. Aims and objectives of this
research is achieved because information is collected in best and reliable manner. Proper check
of information is done, authentic and update books journals are used to get the best outcome
(Eskerod, Huemann and Ringhofer, 2015). Research Paradigm is framework which helps to
perform research activities by considering essential elements. Recommendations and conclusions
are given on the basis of secondary data.
Research considered no other method to collect information and this is the method which
is reliable and authentic because it covers view of authors. In this research, impact of consumer's
loyalty on sales and profits is analysed. Researcher selects this topic as they find it interesting to
identify various strategies which is used by ZARA to attract the interests of customers. As Zara
company is expanded at large scale thus lot of changes and designing style are implemented by
company which makes the researcher more focused to examine various facts and the company
working. Another reason of choosing this topic is that lot of researcher had already gathered
information on this relevant topic thus researcher had to struggle less to collect data and
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information from the valid research. They can take help from other authors and use their
information to complete such research in more effective way.
4.3 Significance
The main reason of choosing this topic is that customer are boom for every company and
thus to maintain their interest towards their brand image is more important. Thus, it is more
important for the company to choose various methods and strategies to attract their interests
towards their products (Brooks, 2016). By these interests they can increase the sales in company
and also enhances the profits in business longer period. The main objective of ZARA is to
maintain their brand name in market and to produces such design which fulfil the needs and
demands of the customers towards such products and services.
5.0 Access to Data and Research Ethics
As these days, consumer's brand loyalty is main concept for providing growth to
organisation. Hence there are many articles which is not authentic for research purpose. This is
the major implication researcher faced while collecting information. In order to deal with this
implication, researcher use different sources such as books, journals, magazines, newspaper, etc.
for gathering and recording information.
There is ethical implication of leakage of information collected by research. This affects
data collection process of researcher. In order to overcome with these issues, techniques are used
to keep information confidential. Collected data is used for research purpose only. So this helps
to overcome with ethical implications of conducting research. Information is stored in written
computerised form so it is easy to advertise it to readers (Inkinen, Kianto and Vanhala, 2015).
6.0 Limitations
There are some limitations which affects research in negative manner. Information is
collected from only secondary sources, so this is time and cost consuming process. This affects
data collection results of research. In order to get information from authentic source, research
feels like wastage of time. Secondary source gives old information which is no relevant in
current environment. So this does not give authentic and reliable outcomes. With using deductive
approach, all the aspects have to be considered. There are some data which does not give impact
on outcome of research but still researcher has to consider it. This dilutes concentration from
core elements (Juusola, Kettunen and Alajoutsijärvi, 2015).
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LITERATURE REVIEWS
Theme 1: Concept of brand loyalty
According to Okonkwo, (2016) stated that brand loyalty carries a positive attitude
towards their customers which is used as logo and trade mark of the company and also they
promote their products and services by keeping these things in their first priority. Usually
companies endeavour more of their strategies to promoter their business but only few companies
achieved success to win the interests of the customers towards their products. Thus, to maintain
the loyalty of the brand is the major criteria of the business and also it is to be fulfilled by
enhancing the needs and demand so the customer for longer time period (Srivastava, 2016). As
the company stability and reputation also determines the strong brand image in market and also
customer prefer such products by viewing their marketing sales and production of the products in
their internal working.
Melero, Sese and Verhoef, (2016) criticised that the Brand loyalty is not to be maintained
by their attitude rather due to continuous purchase of same products company is maintaining
their brand image in market but it can also be affected by not bringing any new design in market
which attract the interest for longer time period. As the taste of customers are changing by due to
changes in Fashion industry thus thy demand new products in market. If the same company not
bring new design, the interests of customers can easily be distracted and they can prefer the same
products of different company which results in affecting the loyalty of customer toward their
products.
Theme 2: Impact of brand loyalty on sales and profitability of company
As per Steenkamp, (2017) examined that the major impact of brand loyalty was
committed due to having more increase in sale through their products and services which they
are offering to their customers. As it is examined that most of the companies produce such
products to the higher class society thus there are more chances of getting more products as
people wait for their products and design which are unique from other brands. Thus, the positive
impact of having more increases in sales to company is in resultant to having the loyal
consumers of the company who prefer such products at high range. To maintain the interests of
consumers and sales in company, branding is majorly important and to provide it to the
consumer by fulfilling their needs and demands at large scale.
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Mullin and Harper, (2016) argued that by increasing profits in the company they had to
promote their products through online marketing which resulting in having more chances to get
fraud customers instead of loyal consumer. By promoting the business through online it brings
more competitors of such products which result in decreasing sales in company and also had
chances to distract the interest of customer towards their products. Thus, if company focused to
increase sales in company and earn profits there are more chances to win the interest of customer
towards their products as customers’ needs revert back of their reviews and improvement in
services which they are offering to them to enhances business for future perspective.
Theme 3: Factors used by managers of company for maintaining its brand loyalty
Christopher, (2016) suggested that the major factors which is used by the company to
maintain the loyal consumer towards their brand name is that the products are to be easily
reachable to the consumers at the time of ordering such products. Thus, if they get timely
delivery of such products than they mainly prefer such products for future perspective as well.
Managers has to keep the expectation of the consumer at their first priority and also bring such
products which are of the best quality and at reasonable price which can be easily affordable by
any person. By enhancing the close relationship with the customers and also taking their reviews
regarding such products and then implementing for more productive results, develop more
interests of customers towards their products.
Gielens and Steenkamp, (2019) viewed that the techniques which is used by company to
attract the customers interests towards their products sometimes resulting in bringing more
consequences of which they adapt their reviewed to bring changes in their products and services.
If the company takes initiative to innovate new design according to the demand raised by
customers it results in more wastages of the available products and also the customers
demanding are changing due to changes in time. Thus, it results in facing more losses to the
company by keeping their existing products which are less in demands.
Theme 4: Recommending ways through which brand loyalty of company can be improved
According to Thompson and McLarney, (2017) stated that the brand loyalty of the
company can be improved by delivering more valuable products to their customers and also
taking their reviews which can be positive and negative to improve their services for future
growth. By this process they can maintain more close relationship with their clients and also can
personally interact with the customers which helps them to know the latest trend which is
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emerged in global market regarding the fashion industry. Companies uses different techniques to
improve their services by giving more chances to customers to prefer their products again and
again. They also promote their company by getting more rewards in context of promoting their
brand images. Company had to initiate some scheme to attract their premium customer towards
their brand image by offering more discount and promotional benefits if they promote their brand
image in market.
Armstrong and et.al., (2018) argued that due to changes in technology it resultant in
bringing more chances to face consequence to attract the interest of customers towards their
products. As the main challenges which the company is facing in regarding the timely delivery of
products and also at the time of ordering the products by preferring online services of home
delivery of such products. If they didn't get the accurate products which is reflecting in online
sites or charges extra amount for home delivery of products. It results in reflecting the interest of
the customer towards their products and services at large scale. Thus, the negative and positive
feedback which is given by the customer in such products resulting in bringing more business to
the company.
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RESEARCH METHODOLOGY
Research methodology refers to the framework which consists of various methods and
techniques for the purpose of establishing new theories, findings and conclusions. It involves
several techniques which are undertaken by a researcher for collecting, assembling, evaluating
and analysing the data for solving the problems of the research study (Corbin, Strauss and
Strauss, 2015). Survey is the tool which has been used by the scholar for finding out the impact
of brand loyalty on the sales and profitability of high end fashion retailer ZARA. Below are the
different methods that have been used by the researcher for achieving the aims and objectives of
the undertaken research study:
Research type:
A research study could be two types based upon which other methods are applied which
are in line with the selected type. They are quantitative and qualitative research type.
Quantitative research type involves numbers and calculations for resolving the problems of the
research study while on the other hand, qualitative research type involves feelings, emotions,
sounds and non-numerical components (Barnham, 2015). In the present research study, the
scholar has used qualitative research type in which it has conducted a survey for determining the
factors which are to be taken into consideration by the management of ZARA for maintaining its
brand loyalty.
Research approach:
Research approach can be described as a systematic plan and a process that involves
assumptions related to methods of data collection, evaluation, analysation and data interpretation.
It can be said that research approach is based on the characteristic or nature of research problems
which have to be addressed. There are three basic approaches of research namely; inductive,
deductive and abductive. In Inductive approach, the data is collected for exploring a
phenomenon, involves identification of themes, patterns and develops a conceptual framework.
In deductive approach, data is collected for evaluating the propositions which are related to an
existing theories. While in abduction approach, the data is collected for exploring a
concept/phenomenon, finding themes & patterns and placing these in a conceptual framework
which are tested through subsequent data collection (Mansell and Huddy, 2018).
In the current research study, the scholar has used deductive approach wherein it has
collected data for evaluating the phenomenon. This approach has helped the researcher in
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gaining an in-depth knowledge about the concept of brand loyalty and how it has affected the
profitability and sales of ZARA.
Research Design:
Research design refers to the systematic arrangements of all the methods and processes
which are used for collecting and analysing the elements of the research study. There are various
kinds of research designs such as descriptive, correlation, experimental etc (Miah and Genemo,
2016). In the present research study, the scholar has applied descriptive research design which is
a scientific way of observing and defining the behaviour of a subject matter without affecting or
influencing it any possible way. Application of this research design has helped the scholar in
obtaining the insights regarding how brand loyalty has affected the business of ZARA.
Research Philosophy:
Research philosophy is defined as belief which is concerned with nature, source and
creation of knowledge. There are different research philosophy such as pragmatism, positivism,
realism and interpretivism. This philosophy includes interpretation of every elements of the
undertaken research study. It is concerned with small samples and integrates human interest into
the study (Gear, Eppel and Koziol-Mclain, 2018). In the present research, the researcher has used
interpretivism research philosophy which has assisted in assessing the factor which must be
considered by ZARA's managers for maintaining its brand loyalty.
Sampling:
Sampling refers to the process of picking certain number of members or subset of a large
population for the purpose of making statistical interferences from them and for anticipating the
nature/characteristics of entire population. There are different methods of sampling such as
probability and non-probability sampling (Greenfield and Greener, 2016). In this research,
random sampling has been used by scholar wherein the sample has been drawn randomly
without any biases. 20 employees of ZARA has been selected for finding out the impact of brand
loyalty on their business.
Data collection:
Data can be collected through various sources such as primary and secondary sources.
Primary source includes gathering information first-handed by the researcher itself. This source
is highly reliable and authentic since the information is collected directly from the people.
Secondary source includes gathering of information from existing journals, newspapers, internet,
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government publications etc (Brannen, 2017). In the present research, primary and secondary
sources are collected for finding out the solutions of the research study. A survey was conducted
by scholar on 20 employees of ZARA for determining the influence of brand loyalty on
company's sales and profitability.
Data analysis:
Data analysis is the systematic process of filtering, cleansing and sorting of the collected
data for the purpose of drawing out some meaning information, conclusions and findings from
the research study. In this research, qualitative data analysis has been done by scholar in which it
has made thematic analysis of the data collected from employees of ZARA.
Ethical Considerations:
Ethics are the values which aids in differentiating right and wrong. Ethics in a research is
necessary for maintaining the reliability and viability of the study and its findings. In the present
research, the researcher has maintained confidentiality of information, has extracted data from
only reliable and authentic sources (Opoku, Ahmed and Akotia, 2016). It has also made proper
arrangements for data security so that quality of the undertaken research study is maintained.
Research limitations:
There are some limitations which makes the scope of the research limited. These are time
and money. In this research, the scholar has limited resources due to which it undertook
qualitative research for analysing the influence of brand loyalty on the business of ZARA. If
more time and funds were available, the scholar would have undertaken the study in a more
extensive manner in which more of statistical tools would have been applied for finding out
highly accurate findings (Valerio and et.al., 2016). It is necessary for researcher to tell the
limitations of research to its readers so that they read the study within the boundaries and
interpret the conclusions accordingly.
Time scale
It refers to the time frame within which the tasks or activities associated with this
research study has to be completed. Below is the time scale of present research study:
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DATA ANALYSIS
Data analysis is the procedure of examining, sorting, transforming and modelling of the
data for the purpose of identifying some meaningful conclusions and findings.
QUESTIONNAIRE
(Questionnaire enclosed in appendix)
Theme 1: Respondents' tenure in ZARA
Particulars Respondents
(20)
% of
respondents
Less than 1 year 3 15.00%
1 to 3 years 6 30.00%
3-5 years 7 35.00%
more than 5 years 4 20.00%
Less than 1 year 1 to 3 years 3-5 years more than 5 years
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
15.00%
30.00%
35.00%
20.00%
Column B
Interpretation:
It can be interpreted from the above graph and survey which was conducted on the 20
employees of ZARA, that highest number of respondents belongs to the 3-5 years who are being
employed in the organisation. 3 participants said that they have been in the company for less than
1 year while 6 out of 20 employees responded that their tenure period in ZARA is between 3-5
18

years. Only 4 employees were employed in the company for more than 5 years and where well
aware with every minute workings of the high end fashion organisation.
Theme 2: Awareness of brand loyalty concept amongst respondents
Particulars Respondents
(20)
% of
respondents
Yes 12 60.00%
No 6 30.00%
May be 2 10.00%
60.00%
30.00%
10.00%
Yes
No
May be
Interpretation:
As per the graph and survey conducted on 20 employees of high end fashion retailer
ZARA, it was observed that majority of the sample population that is 12 out of 20 said that they
are aware of concept of brand loyalty. They said that it is the brand loyalty that has made the
organisation as one of the biggest fashion retailer in the world. The same is also supported by the
secondary sources in which it is mentioned that brand loyalty is a positive feeling and emptions
of consumers towards a specific brand which compels them to purchase that brand only
19

irrespective of the changes in the variables such as price, style etc. However, 6 of the participants
said that they are not aware of the term brand loyalty and how it influences the purchasing
decisions of the customers. While 2 of the respondents said that they are not fully aware of the
concept of brand loyalty and its impact on the functioning of the organization.
Theme 3: Brand loyalty does influence the sales and profitability of ZARA
Particulars Respondents
(20)
% of
respondents
Agree 10 50.00%
Disagree 6 30.00%
Not sure 4 20.00%
50.00%
30.00%
20.00%
Agree
Disagree
Not sure
Interpretation:
From the survey which was conducted on 20 employees of ZARA, it can be observed that
about major number of respondents that is 10 of them said that they agree that brand loyalty has
a major influence on the sales and profitability of the company. This also supported by the
secondary sources that development of brand loyal customer base instead of just increasing the
number of sales has a significant on the earnings of an organisation. For example, one time
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customers will definitely increase the volume of sales in shorter run but for attaining stability in
the sales and profitability, it is very necessary for the organisation that it create a large base of
loyal customers. It is because such customers will not shift to other brand due to change in one or
more variable such as price. This ensures that company's profits will be stable in the upcoming
years.
6 of the participants disagreed with the phenomenon that brand loyalty does not affect the
sales and profit margins of the company. They said that customers' preferences are changing so
frequently that they are less likely to be brand loyal. Along with this, they also said that since
number of high end fashion retailers are expanding their businesses around the world, customers
have wider choices which makes less loyal towards a brand. Thus, it can be said that brand
loyalty does not influence the sales and profitability of ZARA. Furthermore, 4 of the employees
out of 20 were unsure about the impact which the brand loyalty have on company. They
provided mixed views about the same.
Theme 4: Brand loyalty has increased ZARA's sales
Particulars Respondents % of
respondents
Brand image affects the
purchasing decisions
8 40.00%
behaviour of customers is
affected due to brand image
5 25.00%
Word of mouth 7 35.00%
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40.00%
25.00%
35.00%
Brand image affects the
purchasing decisions
behaviour of customers is af-
fected due to brand image
Word of mouth
Interpretation:
It can be observed from the above survey which was conducted on 20 departmental
employees of ZARA, that brand loyalty has increased the sales of the company in last few years.
About 8 of the employees were of view that image of a brand have a significant effect the
purchasing decisions of the customers. For example, even after the price rise in the products of
the brand, the customers are still buying the brand ZARA, is because of the image and reputation
it holds, the pride feeling and value it offers to its customers. They said that the image of the
brand is more important to customers than the products of the ZARA itself. It also boosts the self
esteem of the customers buying the products of high scale fashion clothes.
7 of the employees asserted that word of mouth has played a great role in increasing the
sales of the company. They told during the survey that people who are satisfied with the products
and services of the brand ZARA has nice things to say to the world and they are company's one
of the source of adding new customers to the base. The same is also supported by the secondary
sources also that brand loyalty spread a good word of mouth which is itself a form of promoting
technique that helps in increasing the sales volume of the company.
5 participants were of the opinion that consumer behaviour is affected by the brand image
in significant way. People are more likely to purchase a brand which have a positive image in the
market and more likely to attach to such a brand in a very short time period. Such a thing
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changes the behaviour of customers towards a brand and makes them loyal towards it, which in
longer run helps the company in increasing their sales volume and profitability.
Theme 5: Factors which must be considered by Zara's managers in maintaining its brand
loyalty
Particulars Respondents
(20)
% of
respondents
Convenience 6 30.00%
Meeting expectations of
customers
7 35.00%
Rewards 4 20.00%
Personal relationship 3 15.00%
Convenience
Meeting expectations of customers
Rewards
Personal relationship
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35 30.00%
35.00%
20.00%
15.00%
Column B
Interpretation:
A survey which was taken by the researcher on the 20 employees of ZARA, concluded
that there are some factors which must be taken into account by the managers of the company for
the purpose of maintaining their brand loyalty. It was observed that 7 of the employees were of
view that the company should focus on identifying and understanding the needs and expectations
23

of its customer base around the world. Serving exactly what the customer is expecting and
demanding from the brand leads to higher level of customer satisfaction. This in turn generates a
feeling of attachment with the brand that ultimately results into brand loyalty.
6 of the participants in the survey said that convenience of getting the products and
services of a particular brand affects the brand loyalty of a firm. The same is also backed up by
the secondary sources that customers when are facilitated higher degree of convenience such as
quick billing etc., can help greatly in customer engagement which in turn results into
development of felling of brand loyalty in the customers. 4 employees stipulated that offering
rewards, special discounts, rebate to regular customers significantly affects the factor of brand
loyalty amongst the target audience. These things makes the customers realize that they are being
valued by the organization. 3 out of 20 employees said that personal relationship with the
customers is one of the major factors that should be mandatory considered by the managers of
ZARA, for maintaining its brand loyalty.
Theme 6: Challenges faced by company in strengthening its brand loyalty
Particulars Respondents
(20)
% of
respondents
Staff competition 9 45.00%
ever changing customer
preferences
5 25.00%
Lack of consistency in offering
services & products
6 30.00%
24

45.00%
25.00%
30.00%
Staff competition
ever changing customer
preferences
Lack of consistency in offering
services & products
Interpretation:
It can be observed from the survey conducted on the 20 employees of upscale fashion
retailer ZARA, that majority of the respondents that is 9 out of 20 employees were of view that
copay is facing few troubles in the form of stiff competition from global brands, in strengthening
its brand loyalty. They said that because the customers nowadays have a wider choices to select
and convenience of getting any brand they want around the world, it is difficult for the company
to build and maintain its brand loyalty amongst its customers. They are more likely to shift to
other brands because of such wide availability of upscale products.
6 of the employees said that company sometimes feels trouble in maintaining its
consistency in its business processes which discourages people in being attached to a specific
brand for a long time period. Attaining consistency in the business processes could significantly
help the company in dealing with this challenge which was the view presented by the
departmental employees of the ZARA. 5 participants stated that ever changing preferences of the
global customers is a real challenge for the company. This is one of the hurdle which is limiting
the company in strengthening its brand loyalty. Trends changes more rapidly in the fashion
industry as compared to any other industry. This makes the fashion oriented company to be on
their toes for matching those trends for meeting the requirements and demands of the customers.
25

In the event a company misses this, its misses the opportunity of creating a sound loyal customer
base for itself for prospering in the longer run.
CONCLUSION & RECOMMENDATIONS
Conclusion
From the above research report, it can be concluded that brand loyalty is one of the
crucial factor which impacts the sales, profitability and most importantly growth of a business
organisation. It is the brand loyalty which brings the customers to the doors of the specific brand
repeatedly. Such a factor increases profitability of a company in a longer run, and helps a
company in attaining its long term objectives of attaining maximum customer satisfaction and
business expansion. In the research report, it was further summarised that brand loyalty has a
major influence on the operations of the upscale fashion retailer called ZARA. It was seen that
company's profitability and sales has increased over the time due to its brand loyalty amongst its
customers. Brand loyalty changes the behaviour of consumer, affects their purchasing decisions
and spread a good word of mouth for the brand that eventually helps in increasing the sales
volume of the organisation.
Moreover, the researcher undertook a survey in which it applied the qualitative research
methodology which included interpretive philosophy, deductive research approach. Further, it
took the sampling of 20 employees of ZARA for the purpose of extracting the primary or first
hand information relating to the phenomenon called as influence of brand loyalty on the sales
and profitability of the company. The scholar also maintained the ethical behaviour throughout
the process of research study. It ensured completed confidentiality of the data so collected by it
and drawing out data only from the authentic and reliable sources. This was done for maintaining
the authenticity of the undertaken of the research study, the findings upon which the readers can
rely on.
Recommendations
It is very necessary for an organization to build a strong and sound base of loyal
customers for ensuring long term growth and success. Thus, it is recommended to the managers
of ZARA that it can apply following through which they can strengthen the brand loyalty for the
company. These are as follows:
 The organisation must be consistent with its business processes and must deliver products
and services with utmost consistency. The immediate effect of such consistency will be
26

reflected in the higher level of customer satisfaction. Such a higher degree of customer
satisfaction will encourage and compel the customers in continuing their attachment with
the brand for a longer time.
 Offering value and phenomenal customer experiences as such things would help the
company in increasing its customer engagement which in turn would result into creation
of brand loyalty factor amongst the customers. Offering personalization services hits the
right cords of the customers that helps them in deriving some value from the brand. This
attainment of value from a specific brand makes a customer loyal towards a brand.
 Maintaining the quality of the products and services will make sure that company is
delivering something valuable and satisfactory products to its customers. Offering
superior quality products with utmost consistency is one of the way through which higher
degree of satisfaction of customer could be achieved. Exceeding the requirements and
expectations of the target audience could significantly assist the managers of ZARA in
gaining the confidence of the customers in their products. The ultimate result of such
element will be reflected in the increase in the loyal customer base for the company.
 Being responsive to the needs and requirements of the customers is ultra-necessary for
any organisation if they desires of satisfying the customers to the fullest. Understanding
and responding as quickly as possible to the needs of the customers enhances their
experience with the brand. This has a positive impact on the brand image which aids in
changing the purchasing decisions of the customers in the future. Excellent customer
support services can do a great work for ZARA in improving its brand loyalty.
 Taking feedbacks from the customers on a regular basis and taking them seriously could
help the ZARA in serving in a more efficient manner to its customers. Feedbacks and
reviews by customers helps the company in assessing its performance regarding how well
they have managed to satisfy their customers. Altering the products in accordance with
the suggestions would really assist the ZARA in satisfying its customers. Satisfied
customers are loyal customers as they say would be a competitive advantage for the
company which would yield them higher profits than its competitors in the future.
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