Research Project: Analyzing Globalization's Influence on ZARA's Brand

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This report examines the impact of globalization on ZARA's brand, focusing on how the fashion retail industry leverages social media for brand awareness. The research explores the relationship between social media and brand awareness, evaluating its impact in the global market. The study investigates ZARA's strategies, including its use of platforms like Instagram to inform customers about new products and promotions. The methodology includes a qualitative research approach with a deductive approach, utilizing questionnaires and secondary research. A timeline Gantt chart and references are also provided. The executive summary highlights globalization's influence on brand building, emphasizing ZARA's success as a multinational brand within the Inditex group.
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Research Project
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PART - 1
Title – To analyse how globalization impacts on the brand of the company. A
case of ZARA.
1. Introduction
Globalisation can be defined as a process through which companies improves there
international influence and start performing operations at global business market. Over the years,
globalisation has been one of a crucial factor that has helped business organisations to expand
themselves which were performing at domestic level (Ferreira and Ribeiro, 2017). It is being
found that there are many reasons, why globalisation has increased and here the crucial one is
rise of social media which has helped people in connecting across borders. The widespread use
of smartphones has also enabled global shoppers to have easy access to 'virtual' global markets.
Apart from this, for present report the specific area which has been chosen i.e. Fashion
Retail industry which got affected the most by social media. This has helped businesses like
ZARA that are coming under Fashion Retail industry, to become a well known brand in front of
targeted customers. Along with this, with the help of advertisements on social media, ZARA has
become able to improve customer satisfaction. On the other hand, globalisation has also given
opportunity to business organisations to perform as third party (outsourcing).
At the time of expansion, there are a range of factors that ZARA of Fashion Retail
industry needs to focus and these are business structure, technology and economy in order to
become a successful business organisation in short time frame (Govers and Go, 2016). It can be
said that social media, a tool which impacted positively on improving brand awareness of ZARA
among customers.
1.1. Objectives of the study
ï‚· To investigate the relationship between social media and brand awareness.
ï‚· To evaluate the impact of social media on increasing brand awareness in global market.
ï‚· To examine how fashion retail industry are using social media platforms for brand
awareness.
1.2. Research questions
ï‚· Understand the concept of social media?
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ï‚· Evaluate the relationship between social media and brand awareness?
ï‚· What is the impact of social media on increasing brand awareness in global market?
ï‚· Examine how fashion retail industry (ZARA) is using social media platforms for brand
awareness?
1.3. Rational of the study
The basic reason behind choosing the topic is, globalisation has been a crucial factor and
a hot topic from past two decades. This has helped domestic business organisations of Fashion
Retail industry to expand at international market which different tools like social media and so
on (Enloe, 2016). Along with this, it can also be said that access to larger markets means that
firms may experience higher demand for their products, as well as benefit from economies of
scale, which leads to a reduction in average production costs.
2. Literature Review
Concept of social media
According to Djatmiko and Pradana, (2016), Social media can be understand as a
computer-based technology which basically helps public (individuals) in sharing of ideas,
thoughts, and information through the building of virtual networks and communities. If it is
talked about business world, social media is continuously helping businesses in becoming a well
known brand through various advertisements and other strategies. Along with this, it can be said
that social media basically stays enclosed with personal information, documents, videos, and
photos and a user can gain knowledge related to same and this factor basically helps in spreading
brand awareness (Ho, Awan and Khan, 2016).
Relationship between social media and brand awareness
As mentioned by Crane and Matten, (2016), social media an online media tool used by
individuals (users) to easily participate, create any content such as banner, posters, videos,
advertisement and share information with other users. On the other hand, it can be said that
mainly companies uses social media in order to promote brand, products or services so that
customers could stay aware about the brand under which company is selling. Away with this,
many business organisations are realizing the importance of social media as a new marketing
strategy and trying to be part of this new communication. They are now trying to adapt their
communication strategies to social media platforms in order to better communicate with
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consumers. Basic reason behind choosing this as means of exchange is that, social media is less
time consuming, cheap and fast at the same time.
Impact of social media on increasing brand awareness in global market
As given by Chen, Lin and Shang, (2016), marketing is specifically changing faster than
ever and this has improved the experiences that both business organisations and consumers are
facing with each other. Recently it can be said that, social media has specifically being
categorized among two different approaches and these are traditional and non-traditional. Since
technology is changing, social media has been a crucial approach which is specifically
connecting, look for, and exchange information, thoughts, and experiences of brands and
companies. Facebook, MySpace, YouTube, and Twitter. These are some of social media tools
that are continuously aiding business organisations in improving the brand awareness among
global business market.
Fashion retail industry (ZARA) is using social media platforms for brand awareness
As given by Cavusoglu and Dakhli, (2016), business organisation's that are coming under
fashion industry, it is required for them to have a strong social media marketing strategy. For the
same, many companies like ZARA, H&M and E-SPIRIT in the same industry has adopted social
media as communicational means of exchange to promote their products and services, it is being
found that creative social media engagement may directly aid a business organisation in
reinforcing the brand and it also aid in boosting the sales through making a brand well known
among society (Social Media Marketing for Fashion Brands, 2018). Along with this, it has been
analysed that, some of social media platforms like Facebook, Instagram or Pinterest, are highly
visual platforms, which makes it easy to promote fashion brand. For an example, 31.7 million are
the followers that ZARA is having on Instagram and this has helped them in informing its
followers about new products and services, discounts and many other important decisions that
they are going to take for themselves.
3. Methodology
This section plays a crucial role in every single investigation, mainly there are two
research methods like qualitative and quantitative which can be adopted by a researcher at the
time of conducting the research. This, basically stays dependent upon the chosen topic. For
present report, qualitative research methodology has been taken.
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On the other hand, there are two methods like Primary and Secondary research which
consists with a range of tools that can be adopted by a researcher at the time of conducting the
investigation.
Primary Research : This type of research basically includes Interview, Survey,
Questionnaire, Sampling and other tools to pull out favourable information related to the chosen
topic. Under this, researcher is going to use Questionnaire which will aid in gathering the
relevant data in specific time frame (Akkucuk and Esmaeili, 2016).
Secondary Research : This is being considered as a research method which consist with
existing data. Under this it can be said that, researcher basically uses existing data in order to
investigate in depth. It is being found that, this type of data stays relevant by conducting an
investigation.
Research approaches : Research approach can be defined as a plan which basically aid
in collecting, analysing and interpreting the data (Research Approach, 2019). Along with this,
deductive approach has been utilised under this and the reason behind choosing this type of
approach is that, it best fits the qualitative research method which we have already chosen under
this research as deductive approach tests the validity of assumptions (or theories/hypotheses).
Sampling method: This section will basically help an investigator to select the
respondents that will help in collecting the relevant data in specific time frame. Basically, this
will be based on two sets of approaches like Probabilistic and Non-probabilistic. Here,
investigator will be choosing probabilistic method under which convenient sampling method will
be utilising around 40 respondents.
4.Timeline
Gantt Chart: This can be defined as a type of bar chart which basically shows the overall
schedule of a project. It is being found that, a Gantt chart basically contains a list of different
tasks that could be performed and these shows as vertical axis. On the other hand, time intervals
shows on horizontal axis.
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6. References / Bibliography
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7. Appendix- Log Book
Live Recording
Week Date Nature of contact
e.g. Lecture, Self-
directed, One-to-one
etc
Content Action taken
1 04/03/19
Lecture
Introduction to
research topic
Under this, research topic has been
developed with the help of lecturer and
resolve issues through him/her.
2 30/03/201
9
Lecture
Develop Aim The research aim is based on the topic
so there will be no difficulty faced in
order to develop aim.
3 20/04/19
One – to- one
Frame objectives Mainly the objectives are related to the
aim so with the help of consult with
each other, we make the objectives in
proper manner.
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Week Date Nature of contact
e.g. Lecture, Self-
directed, One-to-one
etc
Content Action taken
4 18/05/201
9 Self- directed
Literature review With the help of using secondary
resources such as books, journals,
internet sources, articles, data has been
collected.
5 31/05/19
Different sources
Data collection Under this, primary and secondary
both methods has been used in
collecting information. Questionnaire
is used for collect primary data and
secondary data has been used in
literature review part.
6 17/06/19
Self- directed
Data analysis After collecting data, it is necessary to
analyse them to know about relevancy
as well as effectiveness.
7 05/08/19
Self- directed
Findings Findings are related with the literature
review. Under this any issues and
suggestion related to research can be
taken place.
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PART - 2
Executive Summary
From last few decades, not only global organisations but SMEs has kept their focus to
expand or grow in order to become a leader at marketplace. New technologies and the
continuous innovation has been crucial ones to lift up the life spans of different products and
services that companies are selling. Here, globalisation has been one of a crucial factor which is
regularly impacting upon overall economical conditions and it is also rapidly improving the
performance level of business organisations as well that are expanding their businesses at
international level. Thus, it can easily be said that globalisation can be considered as a crucial
factor which is impacting regularly upon brands. Companies are regularly maintaining there
brand and themselves in order to survive and to sustain for a longer period of time. Government
of different nations are also helping companies and offering them with a range of benefits so that
they can expand themselves at marketplace. In the future as well, globalisation will rapidly
improve and it can easily be said that organisations that are looking forward to expand
themselves will gain a good position at international level.
A multinational brand named as ZARA, was found in the year of 1975 and since than
company has gained a good brand image in all over the world. Apart from this, it is a main brand
of the Inditex group which is a leader in clothing sector at global level. Along with this, company
is having more than 10,000 stores at international market and this has helped business companies
in becoming a well known brand. Interbrand has also ranked ZARA at 73 position out of 100
best business companies at world level and considered this organisation as an element which
transformed itself from a local brand to a global brand just in 30 years. It is being found that
basically the success of Zara came from the change that they brought within the fashion industry
and now in all over the world company is selling super-rich branded mass-market products.
Along with this, customer satisfaction, a vital factor which basically improves a brand image and
it can be said that if a company expand its business at international level, it will be required to
keep there focus on customer needs and requirements.
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Research Methodology
It can be defined as the method of gathering information and taking logical decisions for
the business. It has a set pattern which needs to be followed by the investigator to make the
research work more successful. Mainly there are two research methods like qualitative and
quantitative which can be adopted by a researcher at the time of conducting the research.
Qualitative research mainly focuses on WHY as compared to WHAT in context to the
phenomena of the research problem. Under this logical interpretations are taken out after the
completion of the research work. On the other hand quantitative research method generally
requires a standardized method for the data collection method.
Data Collection Tool : Basically, there are two methods like Primary and Secondary
research which consists with a range of tools that can be adopted by a researcher at the time of
conducting the investigation. Primary research is know as the first hand data collection method.
In this the data is collected for the first time by the respondents from the various sources. It is the
new research done to know the solutions to the problem. The researcher gathers the data from
various sources, analyse it and than interprets or draw the final conclusion. Primary research is
considered as one of the best method for conducting the research. As in this the results are more
accurate and the chances of error is reduced. Primary research method is further divided into
various other types. Questionnaire is the set of questions prepared by the investigator to know the
answers to the problem. Using questionnaire will reduce the chances of error and respondent will
not be biased in gathering the data. As the data will be directly collected from the respondents
and there are less chances of inaccuracy in the collected data. So researcher will make use of this
type of method for drawing the conclusion and for finding answer. On the other side, Secondary
research is known as the second hand data collection method. The data in this is directly
collected from some other sources. The chances of accuracy in this type of data is very less
because the data is gathered from various other sources and not directly from the respondents.
The data in this is generally collected from websites, published reports, etc. The chances of
biased data is generally increased in this type of research method. The information collected
involves various other unnecessary information so that chances of correct data is reduced. The
method which is used to gather the data is questionnaire. The main reason behind the adoption of
this method that in comparison to interviews it is time saving and provide accurate and reliable
information.
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