Comparative Analysis of Zara and Mango Merchandising Strategies

This report provides a comprehensive comparison of Zara and Mango, two prominent brands in the fashion retail sector. It begins with an introduction to merchandising and its importance in enhancing sales. The report then delves into a detailed comparison of the two brands, evaluating aspects such as customer feedback, business credibility, website popularity, and social media presence. A key focus is the analysis of their merchandising strategies, including store layouts, design strategies, and the impact of consumer behavior models. The study examines how Zara and Mango utilize store design, product presentation, and marketing stimuli to attract customers. Furthermore, the report explores the store layouts and design strategies of both brands, highlighting how they create unique shopping experiences. The analysis considers factors influencing buyer decisions, such as motivation, perception, and attitude, as well as the environmental and marketing stimuli employed by each company. The report concludes by emphasizing how effective merchandising techniques and strategic store layouts contribute to brand success and customer loyalty. This report is a valuable resource for understanding the competitive dynamics and marketing approaches of Zara and Mango within the fashion industry.

BUYING AND
MERCHANDISING

Table of Contents
INTRODUCTION...........................................................................................................................1
DISCUSSION..................................................................................................................................1
Comparison of two brands...........................................................................................................1
Merchandising strategy of both companies.................................................................................2
Store layout along with design strategy of Zara and Mango.......................................................8
Exterior architecture of Zara and Mango.....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................13
Location of the stores.................................................................................................................13
Promotion and pricing strategy..................................................................................................13
Window display of Zara and Mango.........................................................................................13
Interior layout and atmospheric.................................................................................................14
Communication mix..................................................................................................................14
Technology adopted by Zara and Mango..................................................................................15

INTRODUCTION
Merchandising is regarded as one of the effective activity of promoting the sale of
commodities especially by presentation of goods in retail outlet. In short it acts as development
tool for the business and helps in enhancing the sales volume. Further, it is well known fact that
market where companies carry out operations has become quite competitive and in turn it has
become difficult for business to sustain in the market (Hoffman, 2012). For conducting present
study two companies have been chosen named zara and Mango which operates in fashion
retailing sector and well known in the market for the range of products it offers to its target
market. Zara is a Spanish clothing and accessories retailer based in Arteixo and at present
company operate around 2000 plus stores and its clothing products are well known in the market.
Moreover, Mango is a clothing design and manufacturing firm and business has employed
around 12,200 staff members for conducting overall operations in the market. Various tasks have
been covered in the study which is comparison of both the brands, application of theory etc.
DISCUSSION
Comparison of two brands
Zara and mango as a brand are well known in the market where they operate and
companies are well efficient in satisfying need of their target market. Comparison of both the
brands has been shown below:
Element Zara Mango
Customer feedback and review Large number of customers has Customers of Mango are less
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given positive review and they
are highly satisfied with the
product range of company (Shaw
and Koumbis, 2013).
satisfied with products offered to
them. Further, poor service along
with late delivery is also
preventing customers from
purchasing mango products
Business credibility Business enterprise has been
listed on Better Business Bureau.
Further, in terms of credibility
firm has been ranked 2 out of 5.
At present mango has not been
ranked from BBB. Further,
overall raking provided to
business is 4 out of 5.
Website popularity Page of Google has given rank to
firm as 6 out of 10 and this is
representing that firm is
receiving high response from
target market and website traffic
is also high.
Mango has received 5 points out
of 10 from Google and as
compared with Zara overall
traffic on website is also less
(Easterling., 2008).
Social media presence Firm has high presence on sites
such as facebook, twitter,
youtube etc. Facebook page of
enterprise has around 18,388,265
likes
Mango’s presence is less on
Facebook and firm has around
196,666 followers on twitter
account.
Pricing and packaging Zara offers high quality products
and prices are kept reasonable so
that each and every type of
customer can afford it.
Products of Mango are quite
cheap as compared with Zara and
this supports business in
attracting large number of
customers.
Therefore, the overall analysis has supported in knowing that Zara as a brand is more
popular in the market as compared with Mango. Quality along with other factors such as price,
packaging etc are considered necessarily by business and this is having positive impact on the
brand image of Zara and this is leading to rise in customer base of entity.
Merchandising strategy of both companies
In order to better perform in the market Zara and Mango has adopted effective
merchandising strategies and it is one of the major sources of attraction where company attracts
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large number of customers (Clodfelter, 2012). Zara’s physical stores are well known in the
market where company operates. Around 90% of the stores are owned by the company and rests
are joint venture. Moreover, physical stores of company are highly attractive where all the range
of products is displayed in unique manner which allows business to gain competitive advantage.
(Source: Zara store in London., 2015)
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(Source: Zara., 2015)
(Source: Zara Ltd., 2015)
Above shown are the pictures of Zara stores in Central London which highlights the key
merchandising activities employed by business with the motive to attract large number of
customers in the market. Store interior along with exterior layout is totally unique in terms of
space, way of presenting products and providing overall information to the target market linked
with products (Clark, 2014). Moreover, it allows business to retain its customers for long period
of time and in turn large number of opportunities can be grabbed easily.
On the other hand, company like Mango applies larger efforts in using effective
merchandising techniques. Further, business has used effective window display techniques with
the help of which customers are provided different type of information linked with product
range. Apart from this, entire ranges of products are displayed in unique manner which also acts
as source of attraction for business. In short it has allowed company like Mango to sustain in the
market where firm can easily compete with its major competitors (Kunz, 2009). Moreover, this
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has supported company to grab large number of opportunities present in the business
environment and organization can become leader in the market. Each and every store has its
unique feature such as 10 meter high glass entrance along with high quality material and perfect
craftsmanship. The overall creativity done in the stores of enterprise are highly attractive and
differentiated also.
(Source: Hoardings collapse on Oxford Street injuring four shoppers., 2012)
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(Source: Mango., 2016)
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(Source: London town., 2015)
Above shown are the pictures of store of Mango located in different areas through which
company operates in the market. In short, it can be said that merchandising techniques of
company are also effective and it is one of the major source of attraction for target market. This
will surely benefit company in long term and large number of customers can be retained easily
by management which is one of the main motives of firm (Morgan, 2010).
Further, consumer behavior is affected by large number of factors where black box model
is effective enough in knowing about consumer behavior. This model takes into consideration
large number of factors which are marketing, environmental stimuli, buyer characteristics,
decision process along with buyer’s response (ZARA SHOP REPORT, 2014). All these factors
are necessarily considered by Zara and Mango at the time of offering its products to target
market. Marketing stimuli takes into consideration product, price, place and promotion which are
considered necessarily by both the companies in appropriate manner. Environmental stimuli take
into consideration external factors which are economic, political, social, cultural, demographic
etc. Further, buyer characteristics are undertaken which are motivation, perception, attitude,
personality, lifestyle and knowledge. Apart from this decision making process is also crucial
which takes into consideration different stages such as problem recognition, information search,
evaluation of alternative, purchase decision and post purchase behavior. At last buyer response is
also important which involves product, brand choice, purchase timing etc (Underhill, 2009).
While designing merchandising strategy Mango and Zara takes into consideration the key
factors which influences buyer decision such as motivation, perception, attitude etc. Further,
market strategies have been designed in effective manner so that large number of customers can
be influenced easily and in turn it is beneficial for the business. Business enterprise considers
response of each and every buyer such as product choice on the basis of which clothing and other
type of fashion apparels are purchased by them (Saraneva and Sääksjärvi, 2008). In this, way
black box model of consumer behavior is quite effective and through this it has become easy for
business enterprise to satisfy need of its target market in most efficient manner. On the other
hand, various factors are present in the external environment which affects purchase behavior of
target market and in turn companies are able to enhance their performance in the market.
Further, before taking any type of decision series of steps are followed by target market
such as need recognition, information search, evaluation of alternatives etc. Therefore, Zara and
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Mango necessarily identifies the actual need of their target market where products are offered to
them on the basis of their requirement (Chaudhary and Gupta, 2012). Apart from this, customers
are highly satisfied with the range of products offered to them and this is one of the main reasons
behind success of companies in the market where operations are being carried out by
management. Merchandising by considering consumer behavior can be fruitful for business as
consumers perceive both the brands in positive manner.
Store layout along with design strategy of Zara and Mango
Both brands named Zara and Mango operates with the help of their physical store in the
market and this has allowed both firms to attract large number of customers. Further, internal
design along with other type of attributes of store is unique where unique environment is
delivered to customers and this provides them remarkable experience in the field of fashion
retailing. Ways of presenting goods are different where Zara uses different style as compared
with Mango while highlighting the key benefits of its products (Phau and Woo, 2008). Zara store
basically consists of product line which involves men, women and children. Further, business has
segregated clothing for women into three different pricing categories which involve Zara
women, basics, TRF etc. Moreover, the clothing line of business takes into consideration 5 sub
categories which are lower garment, upper garment, shoes, complements, cosmetics etc. Proper
facilities are delivered to target market with the help of store and this provides them remarkable
experience in the field of retail. Apart from this, it is well known fact that effective layout of
store allows business to attract large number of customers and in turn it acts as development tool
for the entire organization (Hausman, 2000).
On the other hand, store layout of Mango is also effective which also attract target market
towards the range of products offered by company. Through stores of company target market is
provided appropriate information regarding the product range and this influences purchase
decision of target market. This is one of the main reasons behind growth and development of the
business in the market. In short, Mango is being able to compete with Zara in the market of
fashion retailing due to presence of appropriate stores and this is one of the main reasons behind
success of companies in the market. All the clothing items along with other products are kept in
proper manner and this is also one of the major sources of attraction. Zara focuses on store
development where internal layout of the store is developed timely and in appropriate manner
(Hansen, 2009).
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By designing appropriate store layout main motive of both the companies named Zara
and Mango is to provide convenience to its target market so that they can become brand loyal
and this will be fruitful for business in every possible manner. Apart from this, in comparison
with both the brands Zara’s in store layout is quite effective and posses capability to attract large
number of customers. Further, time to time some changes are made in the stores operated by firm
and due to this basic reason company’s brand presence is felt higher in the market as compared
with Mango (Upham, 2010). Moreover, many companies operating in the market are successful
due to presence of effective merchandising techniques and this is allowing them to meet with the
customers’ requirement in most effective manner. Zara’s floor layout is also very effective where
large space has been provided to customers so that they can shop easily. Further, range of
products offered by business is also wide and all the resources used for store planning are
utilized in effective manner. Further, in the modern era significance of store layout is increasing
at faster pace where every fashion retail enterprise is focusing on development of store so that
customer base of enterprise can be strengthened easily and it is possible for business to retain
customers for longer period of time in the market. Therefore, in this way Zara’s in store layout is
quite effective and it is allowing business to grab the range of opportunities being present in the
market (Zara success story., 2016).
Exterior architecture of Zara and Mango
For any type of business operating in the market it is must to have effective exterior with
the help of which customers can be easily influenced to purchase commodities of the firm.
Further, Zara stores have stable style of exterior design expect for some flagship stores. The
overall exterior lightning done in the store makes Zara a shining star in the night city and is
attractive enough to influence purchase behavior of target market (Chung and Jin, 2011). All the
stores which are opened worldwide are similar and this enhances brand image of the enterprise in
the market. In short it is allowing Zara to sustain in the competitive market for longer period of
time and firm is being able to gain competitive advantage also. Further, stores of the firm are
always remembered due to their prime location which considers architectural approach along
with the effective interior design which is associated with the image of enterprise. Main aim of
business is to provide experience to target market in fashion industry. Apart from this, company
selects the best commercial site in each city where unique buildings are chosen and Zara
architectural studio always works for the refurbishment and adaptation (Rajagopal, 2007). On the
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other hand shop window has been designed by firm in appropriate manner which acts as a
powerful communication tool and this is having positive impact on the brand image of business
in the market where operations are being carried out.
On the other hand, Mango’s exterior store layout is also effective where business focuses
on architecture along with design (Kucuk, 2011). Overall large space has been undertaken by
business so that customers can be provided more comfort. Further, lightning along with other
type of features in the store attracts target market and this provides them real benefit. Apart from
this, starting of the store is with 10 meters high glass entrance where high quality materials are
highlighted and the shop fits in well with technically and overall surroundings provided to target
market are ambitious which well suits with their requirement. Time to time new designs is being
adopted in the decoration of stores so that exterior layout can attract them easily. On the other
hand, MANGO as a brand is highly in unique manner in front of local public in the market
through effective layout of store and this is also having positive impact on brand image of
business (Discover and save creative ideas., 2015).
On comparing the two brand in terms of exterior architecture it has been found that Zara
as brand has effective exterior layout which influences target market to purchase products of the
firm as compared with Mango.
CONCLUSION
The entire study being carried out has supported in knowing the merchandising along
with buying technique of Zara and Mango. Further, both the companies are working hard in
terms of development of internal store design etc. Moreover, Zara’s brand presence is highly felt
in the market as compared with Mango where company is efficient enough in providing
remarkable experience to its target market in the field of fashion retailing. Apart from this,
merchandising techniques of firm are influencing purchase behavior of target market which is
profitable for business.
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