Zara: Marketing Intelligence Report on Consumer Behavior and Strategy

This report provides a comprehensive analysis of Zara's marketing intelligence, focusing on various aspects of consumer behavior and market research. It begins by examining the different stages involved in the purchase decision-making process and explores various theories of buyer behavior, including the stimulus response model and psychological models. The report also identifies the factors influencing consumer behavior, such as cultural, social, personal, and psychological factors. Furthermore, it evaluates the relationship between brand loyalty, corporate image, and repeat purchasing. The report then delves into market research techniques employed by Zara, including feedback collection, surveys, observations, and field trials. It also discusses different sources of secondary data and assesses the validity and reliability of market research findings. A marketing research plan is presented to obtain information in a given situation. The report further assesses market size and trends, analyzes competitors, and evaluates opportunities and threats for Zara's products. Finally, it evaluates techniques of assessing customer response and designs and reviews a customer satisfaction survey. The report concludes by summarizing the key findings and implications for Zara's marketing strategies.

Marketing Intelligence

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1.1 Different stages involved in purchase decision making process...........................................1
2.2 Different theories of buyer’s behaviour................................................................................3
1.3 Factors that affect consumers behaviour...............................................................................4
1.4 Evaluating the relationship between brand loyalty, corporate image and repeat purchasing
.....................................................................................................................................................4
Task 2...............................................................................................................................................5
2.1 Different types of market research techniques......................................................................5
2.2 Different sources of secondary data for accomplishing the market objectives.....................5
2.3 Assessing the validity and reliability of market research findings.......................................6
2.4 prepare a marketing research plan to obtain information in
a given situation.........................................................................................................................6
Task 3...............................................................................................................................................7
3.1 Assessing market size and trends..........................................................................................7
3.2 Analysis of competitors.........................................................................................................7
3.3 Evaluation of opportunities and threats of the given product...............................................7
Task 4...............................................................................................................................................8
4.1 Evaluating techniques of assessing customer response........................................................8
4.2 Designing of customer satisfaction survey...........................................................................8
4.3 Reviewing the success of the survey.....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing intelligence gives the detailed information of firm's market and collects and
analyse the decision-making process, marketing strategy etc. It determines the intelligent ways in
which business can be developed. Zara is known for fashion brands and clothes in Spain. It has
2000 stores and approximate annual income of £2.5 billion (Andaleeb and Hasan, 2016). In this
report, the main concern is given on buyer’s behaviour and purchase decision making process.
Further, market research techniques are evaluated. Further, market size and future demands are
assessed. Moreover, different techniques are used for determining customer response. Customer
satisfaction survey is designed and reviewed.
Task 1
1.1 Different stages involved in purchase decision making process
There are different stages involved in making decision while purchasing any product
which are defined as follows:

Need recognition:
Regular evaluation of customers changing demands are very necessary to make product
effective. Determining the needs and demands of the consumer is very necessary for Zara to
develop new products which aid in gain success and popularity in the market.
Searching and gathering information:
In this stage, customer collects whole information about the product and determines
positive and negative things of their products. Online shopping websites and changing trends has
made customers aware to make better decision while purchasing new products (Banović and
et.al., 2016).
Evaluation of alternative methods:
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Illustration 1: Different steps of buyer decision making process
(Source: Marketing & Buyer Behavior - the Decision-Making Process. 2015)

A rational customer always tries to make best deals and better decision when it comes to
purchasing. Further, it decides and compares the price and quality of the product of various
brands to get value for money and satisfy their needs in the best way.
Actual purchase of the product:
Customers clearly analyse the features of the product and decides what to buy and from
whom to buy and at what price while purchasing. After evaluating all these factors, it makes
logical decision for buying the product.
2.2 Different theories of buyer’s behaviour
In order to make product effective it is very necessary for Zara to determine their needs
and consider their purchasing behaviour. There are two theories which helps in determining the
buying behaviour of the customers which are defined below:
Stimulus response model:
In this model, the black box is visited by marketers and other stimuli of the organisation.
In middle box, customers’ mindset is assessed by the marketing team of the company. In this
model, marketers focus on buying process rather than considering only purchase decision of the
people. The consumer gathers information of the product from family, friends, advertisements,
newspapers, television sources (Chen and et.al., 2017). This model states that the user will go
through all the stages while making decision.
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Illustration 2: Stimulus response model
(Source: Buyer behavior: stimulus-response model, 2015)

Psychological model:
In this model, physiologists try to find out the reasons behind purchasing decision of the
customers. The requirement of product by the consumer determines their behaviour. They look
for the products which best satisfies their needs. In this model, Zara motivated its customers to
purchase their products by providing them the best services.
1.3 Factors that affect consumers behaviour
There are different factors that influence the behaviour of buyer. Some of them are
defined as follows:
Cultural factors:
The behaviour of human being, society, its values and traditions plays an important role
in affecting consumers behaviour.
Social factors:
Social factors include family, reference groups. All these factors force individual to
maintain its standard in the society and affect their buying decisions.
Personal factors:
Financial status, age and kind of occupation affects the customers behaviour. The person
has to consider all these factors so that it can balance its needs and demands (Finnegan, Runyan,
Gonzalez‐Padron and Hyun, 2016).
Psychological factors:
Individual beliefs, motivation and learning experience guides him to make different
decisions. Further, their attitude and learning about the new product affects their decision-
making process. Therefore, Zara has to consider all these factors while implementing any new
product in the market.
1.4 Evaluating the relationship between brand loyalty, corporate image and repeat purchasing
Brand loyalty is the behaviour of the people due to which they regularly purchase the
same brand’s products without considering its price. Zara is best known for its fashionable brand
and has flagship brand of £2.5 billion. It has given challenges to its competitors as they are not
much capable enough to acquire the best position in the market. Further, the organisation is
rapidly growing and providing their best services to their customers.
Corporate image is the fame and recognition and success of the company which it has
gained over time from its customers. By focusing on best marketing strategies, it has increased
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the publicity of its fashion brands. The customers eagerly wait for their new products and fashion
as they frequently provide and launch new products in the market. This encourages the
customers and they repeatedly purchase products of this particular brand (Gabler and et.al.,
2017). Zara pre-commits the production in advance so that it can satisfy the demands of the
customers. This helps Zara to make progress and increase its publicity in the market.
Brand loyalty:
It is defined as consumer behaviour where they repeatedly purchase products from the same
brands for longer time and do not concern for price and convenience.
Corporate image: It is the reputation of the company which it makes while selling their
products to customers. This image is seen by customers, shareholders and stakeholders to
purchase the product and invest money.
Repeat purchase:
It is the process in which customer believe on the organisation's products and repeatedly
purchase them.
All these concepts are related to each other as effective corporate image will help in
winning trust and confidence of consumers which purchase their products. This will help the
organisation to increase their sale and achieve customer loyalty towards their offered goods and
services.
Task 2
2.1 Different types of market research techniques
There are different types of market research techniques followed by Zara to increase its
productivity. These techniques are defined as follows:
Taking feedbacks:
Zara has made its own website to get regular feedbacks from their clients so that they can
determine the choice, demands and requirements of their customers.
Conducts surveys:
The organisation has conducted various surveys which help them to analyse the target
market. Further, Zara has conducted online surveys to take review of broad audience. These
surveys help the organisation to know the views and ratings of the people about their products.
Observation:
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It is qualitative technique which gathers and analyse the information of market research.
This can be obtained by observing the behaviour and needs of the customers. Marketing manager
of the company identifies the activities and observes the response of different stimuli (Godwin
and et.al., 2016).
Field Trials:
Field trials means that stores where the organisation places its new product. This helps
the firm to make effective decisions related to product modifications, packaging and price.
Qualitative technique:
Zara has used this technique to know the opinion of the customers. It has conducted
group discussions to determine the problems, current trends of the market.
Quantitative technique:
It is the collection of numerical data to understand trends in data. It helps in
understanding the data by making comparison by conducting surveys of large number of people.
Zara has conducted survey in which it has asked question about customers satisfaction level,
company's performance level etc.
It is evaluated that quantitative techniques are more beneficial as compared to qualitative
as it involves questionnaire, interview which helps the company to understand the situation by
comparing information gained from the research in more easy ways.
2.2 Different sources of secondary data for accomplishing the market objectives
Secondary sources help in collecting more information regarding their competitors and
the area in which they want to explore their business. Secondary market research collects
information from newspapers, magazines, government office, internet and office data. The main
advantage of using secondary data is that it is less expensive and takes small amount of time.
Zara collect the information to make different reports on market research so that it can be able to
meet the demands of their customers.
It collects different data from publishers and trade associations which helps it to take
more effective steps to increase their productivity (Habibi and et.al., 2016). Further, taking help
of magazines and internet, it is able to identify its position and target market. Zara has adopted
sources of secondary method as it is more beneficial and takes less time to provide relevant
information.
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2.3 Assessing the validity and reliability of market research findings
To check whether the research is properly done or not, reliability of the market research
is checked. Consistency of scores are determined by the reliability of the methods. It helps in
producing reliable results also. Regular feedbacks and conducting surveys are very useful for
Zara to determine the needs and demands of their customers. Reliability helps in measuring the
satisfaction level of the customers. Reliability measures the internal consistency of these
methods (Lim and et.al., 2016). Observation and field trials are reliable methods for the
organisation as it helps in knowing the views and behaviour of the customers.
Validity is mainly used to determine the research findings. Internal, external and content
validity are used to determine the validity of different techniques. Internal validity determines the
reason and the relationships of the market techniques on the other hand external validity helps in
identifying that the findings are correct or not. Content validity is widely used by Zara as it is
easy to implement and takes less time.
2.4 prepare a marketing research plan to obtain information in
a given situation
Aim and objective:
The main aim of Zara to launch new shoe product in the market is to increase its sale by
providing them different varieties of shoes.
Background:
Zara is expertise in selling clothing and accessories in different countries of the world.
Present research focuses on increasing sell of the company by providing wide variety of shoes to
customers.
Rationale:
The rationale behind selecting this organisation is that it is the world's largest apparel retailer.
Results and findings of the study will help the marketing managers and organisation to focus on
product delivery and service standards.
Objectives:
 To determine the product effectiveness in the market.
 To increase sale by selling new varieties of shoes.
Methodology:
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The research plan can be made by using quantitative and qualitative approach. The
qualitative approach helps in determining the volume related information while quantitative
approach determines target consumers, their behaviour and feedback. Zara has planned to
conduct various surveys to determine the choice and demands of their customers. They have also
appealed the customers to purchase their products as it provides durable, comfortable and
lifelong products (McGoldrick and Liu, 2017). Further, in qualitative approach, the organisation
has given more focus to the small organisation which are doing the same business so that they
can promote their products. The organisation has taken feedbacks from their customers which
helps them to know the choice and their lacking areas. It also helps it in deciding the target
customers for their product.
Time frame:
Zara has decided to open new shoe stores in London in 2018. For this, it has done market
analysis so that it can successfully implement its products on time.
The organisation will achieve its aims and objectives within one year by achieving
confidence and trust of people.
Data analysis:
The organisation has analysed information related to target market, customers and culture
of London. It has collected various information regarding customers choice and trends so that it
can make its product effective.
Task 3
3.1 Assessing market size and trends
Zara is rapidly growing fashion retailer company. It has 2000 stores and planned to
double it in number in coming years. It provides its large variety according to the customers’
demands. It produces 450 million products every year. The organisation has overall sales of
$19.7 Billion. It has targeted all age group customers so that it can increase its sale. The main
reason behind its success is that it provides new fashionable design very rapidly (SivaKumar and
Gunasekaran, 2017). It has 1923 stores in 88 different countries which helps it to increase its
revenue rapidly. The market of Spain is increasing and hence Zara has developed various market
strategies to win the confidence of their customers.
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3.2 Analysis of competitors
Zara's main competitors are Asos, Inditex, Havas which are giving it tough competition.
Inditex emerged as one of the world’s
fastest growing manufacturers of affordable fashion clothing. It has total share of $5 billion and
it has employed 140,000 employees to achieve its objectives. IT is facing many problems from H
& M company also which has lowered down the sales and profits of this company. Further, Asos
and Havas has given tough competition to Zara in the market. Therefore, Zara has made various
strategies to increase its sale. It manufactures its 60% of extra products before the season so that
there is no shortage and inconvenience.
3.3 Evaluation of opportunities and threats of the given product
Opportunities:
Zara is specialised in serving the clothes of men, women and kids. These gives Zara the
opportunity to explore its market in different countries and cities. Online marketing and e-
commerce are gaining more popularity which has increased the chances for Zara to increase their
sale (Tang and et.al., 2017). Further, the organisation can enter into new segments by opening
more chains in other areas where it has not yet opened its business.
Threats:
Increasing fashion merchandise are the main threat of the company. Economic slowdown
in Spain is another threat because most of its sale is based on the market of the country.
Changing trends and shifting of customers interest on spending more on education and tourism
has slow down its profit.
Task 4
4.1 Evaluating techniques of assessing customer response
Different techniques are used to evaluate the customer's response which are defined as
below:
 Customer satisfaction surveys:
Conducting surveys and asking them about their experience for the product helps the
organisation to know the problems which they are facing. It also helps in understanding changing
needs and demands of the customers.
 Face to face discussions:
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It is the best method to take review of the services of Zara. The organisation talks directly with
their clients and customers to know their problems about their products. It also helps in knowing
the weakness of their item (Wang and Guo, 2017). Further, face to face communication is more
effective in solving the doubts and confusion of the customers which helps the organisation to
increase its publicity in the market.
 Taking online feedbacks:
Zara has made its online website to provide better home services to their customers. Further, it
takes the feedbacks of their customers through its website. Online feedbacks and surveys helps in
obtaining the large interviews of the customers in small amount of time. This will ultimately
assist the organisation to increase their productivity.
4.2 Designing of customer satisfaction survey
Name:
Occupation:
Age:
Are you satisfied with the products offered by Zara?
 Satisfied
 Not satisfied
Do you think that the company is able to satisfy your needs on time?
 Yes
 No
Are your issues and problems are timely solved by the company?
 Yes
 No
How likely you will recommend Zara to your friends and relatives?
 Quite likely
 Little likely
 Unlikely
How many ratings will you give to Zara?
 Good
 Fair
 Average
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