Consumer Behavior: ZARA Brand Analysis Report - Marketing

This report provides a comprehensive analysis of the ZARA brand, focusing on its consumer behavior and marketing strategies. It begins with an overview of the brand, its target market, and the environmental and competitive factors influencing its operations. The report then identifies and explains the application of relevant consumer behavior theories, including Maslow's Hierarchy of Needs and Cognitive Appraisal Theory, to ZARA's marketing practices. It examines how ZARA caters to different consumer needs and influences their decision-making processes through various marketing techniques. The analysis includes the benefits of these strategies and discusses potential future trends for the brand, concluding with a summary of the key findings and implications for ZARA's continued success in the fashion retail industry. The report uses evidence from scholarly articles to support its discussion.

Brand Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
Brand overview................................................................................................................................1
The target market.............................................................................................................................2
Identification and Major Impacts of Relevant Theories/Concepts..................................................3
Overview of Theories.............................................................................................................3
Application of Theories to Company.....................................................................................4
Benefits...................................................................................................................................6
Future trends:..........................................................................................................................6
CONLCUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Consumer behaviour is the process which is used to understand the different aspect of the
consumer buying behaviour. There are different kinds of buying pattern of the user as they
constantly change so this is essential for the company to identify which help in increasing the
sales of the company. The present report is based upon the ZARA which is Spanish apparel retail
fashion industry and the company headquarter is located in the Artexio Spain. They have
different location across the globe and there are 2270 stores across the globe. The company main
product are the clothing for the younger people and it was founded in year 1975 and around 5000
employees currently working for the company. The report covers different aspect such as brand
overview and the target market which increase the sales of the company. There are different
theories are used to understand the different aspect which are used to provide better opportunity.
Brand overview
ZARA is the Spanish fashion retail outlets and it is consider as the fast growing reratil
outlet for the company. There are different kind of product such as clothing, accessories and
shoes which tend to attract more and more customer effectively. The company is one of the
largest apparel retail it is consider as the top most fashion brand for the company. The company
was founded by Amancio Ortega in Spain in the year 1975. Apart from this company have
expanded their stores in the different location and become the one of the most luxury brand in a
well define manner.
Environmental factor related to company:
ZARA is the flaxship brand and have different stores across the world and when it comes
to the environment as the company have started to repair the programme which is used as the
Closing the loop as the programme have to increase the productivity and increase more
awareness regarding the environment. This programme is mainly use for the consumer as the
company provide safety through which they user can drop their use garment and the company
can recycle the clothes which help in reducing the environmental aspect for the company. Apart
from this, it will increase the brand image and provide better opportunity to achieve desire aims
and objective in the well define manner.
Beside this the company use Green house protocol which mean that that company is
using environment measure as per the government which help in increasing the sale and provide
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better opportunity to achieve desire aims and objective in a well define manner. The aim of the
organization is to reduce carbon footprint and able to sustain for the longer time period time
period. Beside this there are different steps were taken such as improving the supply chain which
help in reducing the environmental effect.
Competitive factor:
There are different competitions present in the market which tend to affect the buyig
behaviour of the consumer. The competition is Guuci, Armani and Luois Vitton are the major
competition in the market. In order to avoid such rivalry the company is offering better product
and service to consumer which help in expanding the business and help in increasing the sales in
proper manner. Due to competition is the buying pattern of the company change as this help in
providing various kind of option to the customer and able to bring down the cost in the well
define manner. This is essential for the firm to figure out the trend which use to analysie the
market effectively.
The target market
The target market is essential for the company as this help in providing better opportunity
which help in increasing the sales and productivity in a well define manner. There are different
kind of target market for ZARA which help in increasing the sales and provide better opportunity
which help in increasing the sales effectively. There are different segment in the target market
which is essential for the firm to increase the producting and help in expanding the busiess more
effectively. In the context of ZARA the management have to sperate the market on the basis of
gender, demogogrphic and income. Here is the deatil information of target market in a detail
information in a detail manner:
Gender: ZARA use to target the market as per the gender as the company have
diversified range of clothing lines for the female and male. The company focuses on different
aspect of gender which help in increasing the sales in a effectively manner. The management
also focus on adversting mainly focus on fashion aspect for female as this they have wide option
for all the aspect.
Income group: This is essential for the company to understand the income of the people
as ZARA is a luxury brand. The company target those consumer which have high consumer and
income of the people which they can afford easily. The company mainly have stores in those
country which have high income group income people and people who have white collar job. In
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order to earn more profit the company have to target the customer which help in increasing the
productivity effectively.
Demographic area: This is the factor which associated with the geographical area as the
company use to operate in those country which have less rain and it help in increasing the sales.
ZARA usually target those area where are the atmosphere and surrounding are most towards the
fashionable aspect. This is essential for the company to target the customer which help in
increasing the sale effectively.
Identification and Major Impacts of Relevant Theories/Concepts
Overview of Theories
Maslow’s hierarchy of needs
This theory was coined by Abraham Maslow in which he puts forward five basic
categories that involve different type of needs that are psychological, safety, love and
belongingness, esteem and self actualization. According to Maslow it is essential to effectively
satisfy all the basic needs of individuals in order to satisfy them in best effective manner.
Physiological needs -
Psychological needs mainly involve biological requirements of individual like food,
shelter, clothing, drink, sleep etc that are required to be effectively satisfy in order to make the
person operate their function optimally. This is one of the most important needs among all others
that provide basic satisfaction to an individual.
Safety needs -
After psychological needs of individual get effectively fulfil then they look forward
towards safety and security. It has been evaluated that individual want to have safe and
predictable lifestyle. Examples of safety needs include financial security, freedom from fear,
emotional security, health and well-being, safety against accident and injury social stability
property and more.
Love and belongingness needs -
This is third level of Maslow hierarchy key in which individuals seeks towards feeling of
love and belongingness. It has been determined that the need for interpersonal relationship
effectively motivate behaviour of a person. Examples of this need are trust, acceptance, and
friendship, receiving and giving affection being a part of a group etc.
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Esteem needs
At this level of Maslow hierarchy need individual look forward towards need for respect
and appreciation. This need play essential role through which behaviour of individuals can be
effectively motivated. This has been identified that at this level individual wants to have respect
and appreciation from other. As if they accomplish a certain objective then they seeks for
appreciation for their efforts to be effectively recognised. Examples of this need include dignity,
prestige, status, respect from others, and desire for reputation etc.
Self-actualization needs
This need meanly include aspects like personal growth, self-fulfilment, visualisation of
an individual potential and more. As per according to Maslow, at this level individual seeks
towards accomplishing everything at their great potential.
According to the above evaluation it has been identify that Maslow’s hierarchy of needs
play most important role in an individual psychology. As it allow one to focus upon development
and behaviour in order to promote healthy individual lifestyle. By fulfilling these needs one can
effectively motivate behaviour of other individuals in a well effective manner.
Cognitive Appraisal theory
Cognitive appraisal is defined as a normal part of human emotional functions, as all the
individuals use them in their course of life. There are mainly four types of cognitive appraisal
with the help of which behaviour can be effectively understood. That includes outcome
appraisal, anticipation appraisal, agency appraisal and equity appraisal. With the assistance of
this one can effectively identify and explore the measures that effect individual life and
emotional well-being.
Application of Theories to Company
Maslow’s Theory of Needs
This theory of needs is given by Abraham Maslow, who stated that the needs and wants of
customers are required to be met by an organisation with a view to retain them for a long period
of time. In this relation, it has been identified that the basic need in this list is the physical
survival as this is acknowledged to be the first thing that encourages the behavioural conduct and
patterns of individuals. Once one level of need of the customer is identified, then the company
moves to meet the second level of need. With respect to this, it is regarded that ZARA is a high
end fashion retailer brand which is globally renowned among the people. This makes it important
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for the enterprise to undertake measures through which it can keep up to the expectations as well
as demands of people prevailing within the society. This fashion retail put customers at the heart
of all of the operations and functions of the company. This implies that the company follow a
customer centric approach of marketing. This helps the respective brand to inflate its goodwill
and financial performance in market place. Thus, in this regard, to meet the needs and demands
of the customers present in market place, ZARA applies Maslow’s hierarchical theory of needs.
With this, it aims to meet all the 5 levels of needs of its customers. Thus, these 5 levels of needs
are explained in context of ZARA as follows:-
1. Physiological/Basic needs – This level of needs tend to encompass the biological needs of
customers in terms of food, air, drinks, shelters, clothes, sleep and so on. In case this level of
need is not effectively satisfied by an organisation, no customer can operate optimally. With
respect to this, ZARA meets the physiological level of needs by rendering the products that can
offer them comfort and ease.
2. Safety needs - Once the physiological or basic needs of an individual are met by the company,
the need for an organisation to fulfil the safety need emerges. Hereby, customers desire to
experience emotional security, freedom from fear, financial security, stability, health and
wellness and many more. This level of needs of customers is met by ZARA by providing them
with the products which do not pose harm to them or their body or their life in any way.
3. Love and belongingness needs – Once the safety needs get fulfilled, the company moves to
fulfil the next level of need which is the need of the customers for love as well as belongingness.
This level of need includes the need for affiliation, trust, acceptance, friendship and many more.
For this purpose, it is acknowledged that ZARA holds loyalty programs which are aimed at
instilling trust within the customers and meeting this need.
4. Esteem needs – This level of need can be mainly categorised into 2 broad categories:-
(i) Esteem for self in terms of achievement, dignity, mastery, freedom and many more
(ii) The intent of an individual to gain reputation or respect from other individuals prevailing
within the society in terms of status and prestige. In this relation, ZARA tends to meet this level
of need of the customers by providing products which are of superior quality. This helps
individuals to inflate their self esteem and prestige within other individuals at the market place.
5. Self-actualization needs - This can be referred to as the realisation of the potential of an
individual along with the fulfilment of one self, thereby assisting them in attaining personal
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growth and development. ZARA fulfils this need of customers by providing to them the
offerings which can make them realise that they have accomplished all that they wanted to in
their lives. The customers put due focus over this need.
Cognitive Appraisal theory
Cognitive appraisal can be referred to as a normal part of the emotional functions of
individuals as individuals make use of them in their daily living. There are basically 4 types of
cognitive appraisal with the help of which behaviour can be effectively understood and these are
outcome appraisal, anticipation appraisal, agency appraisal and equity appraisal. With the help of
the application of this theory, ZARA is able to derive positive outcomes within the confines of
the company and meet the needs and requirements of customers in the long run.
Benefits
As per the above mentioned evaluation it has been identified that both Maslow theory and
cognitive appraisal theory proves to be essential for Zara as by taking advantage of this
management can not only stimulate higher performance among employees but can also increase
overall productivity of organisation. It has been evaluated that in terms with Maslow theory that
while implementing this into organisational workplace structure leaders and managers can
effectively able to fulfil the needs of employees at different stages in an efficient manner. It has
been identified that by fulfilling basic needs of employees company can maximize motivation
and moral among them at a great extent and con further stimulates their behaviour towards
accomplishment of organisational goals in a well defined and effective manner. Most important
benefit of this theory is that it allow management of Zara to fulfil basic needs of individuals that
can not only motivate them to ensure higher productivity from employees but can also make
them retain for longer period of time. While in terms with cognitive appraisal approach this
theory allows Zara management to get access of emotional situations and evaluate person in an
effective manner. As per according to different situations with the advantage of both of these
theories Zara management can effectively able to influence emotional behaviour effectively and
can further motivate them in effective manner with efficient measures as to ensure organisation
futuristic growth.
Future trends:
The future trends of the fashion trend are which leans towards the innovation and
sustainability and the mix of the inspiration and the technology to become less harmful for the
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planet. For the company like ZARA there are different kind of trends which need to follow
which help in increasing the market share and provide profitability in the well define manner.
The management have to invest more in the market research which help in identifying the future
trends in a well define manner. Here are some the trends which are briefly explained in a well
define manner:
AR shopping: Augment reality has become the major trends where the customer tries the
clothing without wearing cloth. Hence ZARA use to implement such technology which help in
attracting more and more customer in a well define manner. There are different kinds of
technology which help in increasing the sales and able to increase the sales in a well define
manner. The online shopping is essential and helps in convince shopping for the company.
Hence this will increase the sale and provide better opportunity to achieve desire aims and
objective in a well define manner.
On demand production: Fashion brand often make more product as per the need and
able to utilize the service effectively. In the case of ZARA the company have to increase the on
demand production which helps in reducing the waste done by the company. Hence this helps in
improving the productivity and also changes the buying behaviour of the customer. This is
considering as the win the customer gets exactly require the product in a well define manner.
CONLCUSION
From the above stated report this has been analysed that consumer buying behaviour is
essential for the company to understand the market more effectively. This is essential for the
company to increase the market share to target the customer and this has been analysed that the
target customer are female as well as male. Beside this there are some the future trends which
company should focus such as the analyzing the future trends effectively. The most effective
future trend is the on demand production which helps in increasing the sale of the company.
There is different kind of theories and models are used to analyse the buying behaviour of the
customer. At last this is identified that the organization has to increase the sale by focusing on
the consumer buying behaviour effectively.
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REFERENCES
Books and Journals
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Conceptual underpinnings and empirical evidence. Journal of Consumer
Psychology, 20(2), pp.107-125.
Connors, S., 2018. Expanding the Role of Psychological Distance in Shaping Consumer Brand
Associations, Evaluations, and Behavior (Doctoral dissertation, Washington State
University).
Mohamed, M., Higgins, C.D., Ferguson, M. and Réquia, W.J., 2018. The influence of vehicle
body type in shaping behavioural intention to acquire electric vehicles: A multi-group
structural equation approach. Transportation Research Part A: Policy and Practice, 116,
pp.54-72.
Lucian, R., 2017. How Brazilians shop? An investigation of Brazilians’ consumer values,
lifestyles and mindset. International Journal of Emerging Markets.
Carnevale, M., Yucel‐Aybat, O. and Kachersky, L., 2018. Meaningful stories and attitudes
toward the brand: The moderating role of consumers' implicit mindsets. Journal of
Consumer Behaviour, 17(1), pp.e78-e89.
Murphy, M.C. and Dweck, C.S., 2016. Mindsets shape consumer behavior. Journal of Consumer
Psychology, 26(1), pp.127-136.
Colicev, A., Malshe, A., Pauwels, K. and O'Connor, P., 2018. Improving consumer mindset
metrics and shareholder value through social media: The different roles of owned and
earned media. Journal of Marketing, 82(1), pp.37-56.
Mohamed, M., Higgins, C.D., Ferguson, M. and Réquia, W.J., 2018. The influence of vehicle
body type in shaping behavioural intention to acquire electric vehicles: A multi-group
structural equation approach. Transportation Research Part A: Policy and Practice, 116,
pp.54-72.
Dweck, C.S., 2016. Mindsets shape consumer behavior. Journal of Consumer Psychology
(Elsevier Science), 26(1), p.10.
Bukhari, F., Hussain, S., Ahmed, R.R., Streimikiene, D., Soomro, R.H. and Channar, Z.A., 2020.
Motives and Role of Religiosity towards Consumer Purchase Behavior in Western
Imported Food Products. Sustainability, 12(1), p.356.
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