Zara's Marketing Intelligence Report: Consumer Behavior and Strategies

This report provides a comprehensive analysis of Zara's marketing intelligence, delving into consumer buying behavior, market research techniques, and brand loyalty. It explores the stages of the purchase decision-making process, buyer behavior theories, and factors influencing consumer choices. The report examines Zara's market research objectives, techniques, and data sources, including competitor analysis and a SWOT analysis. Furthermore, it assesses customer response acquisition techniques, including a customer satisfaction survey, and discusses the links between brand loyalty, corporate image, and repeat purchasing. The report aims to provide a deep insight into consumer behavior and the strategies that Zara can employ to enhance its marketing efforts.

Marketing Intelligence

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1- ESSAY.............................................................................................................................3
a) Stages of purchase decision-making process...........................................................................3
b) Buyer behaviour theories.........................................................................................................4
c) Factors impacting buyer behaviour..........................................................................................7
d) Links between brand loyalty, corporate image and repeat purchasing....................................8
TASK 2............................................................................................................................................9
a) Market research objectives......................................................................................................9
b) Market research techniques.....................................................................................................9
c) Sources of data.......................................................................................................................10
d) Validity and reliability of market researching.......................................................................11
e) Marketing research plan.........................................................................................................12
TASK 3..........................................................................................................................................13
a) Market size trends..................................................................................................................13
b) Competitor Analysis..............................................................................................................13
c) SWOT analysis for Zara........................................................................................................15
TASK 4..........................................................................................................................................16
a) Techniques for acquiring customer response.........................................................................16
b) Customer satisfaction survey.................................................................................................17
c) Review...................................................................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Every organisation maintains its standards and reputation with the help of data that is
gathered and analysed on daily basis. Certain parameters like market size, customer satisfaction,
opportunities and threats faced by an organisation are components of marketing intelligence.
Zara has been utilising survey monkey as its external agent for managing all statistics and
information regarding customer satisfaction and response for its products. This report aims to
give a deep insight regarding procedures and theories that are related to consumers and their
decision-making process at the time of purchasing. It will also depict the plans and strategies that
can be utilised for conducting market research and customer responses for its women apparel
line.
TASK 1- ESSAY
Introduction
Consumer buying behaviour comprises of the preferences, attitudes and intentions of
consumers during purchasing of a product or a service in the market place. Consumers make
purchase according to their attitude towards a particular product, their buying intentions and
decisions made regarding buying behaviour. It is important for organizations to know their needs
because it is necessary to know where, when and how customers make purchase so that the
marketing mix can be designed accordingly. In the present essay, stages of purchase decision
making process and buyer behaviour theories will be explored to find out about consumer buying
behaviour.
a) Stages of purchase decision-making process
There are five main stages of purchase decision-making process are need recognition,
specification, proposals, evaluation and order (Hammond, Keeney and Raiffa, 2015).
Problem recognition is the initial stage where a need or want is developed by consumer
which he wants to satisfy. For example, winters will make the customers recognize the need for
good quality coat. In order to satisfy this need. The customers will look forward to Zara.
Analysing such needs also helps the organization in enlarging its strategies.
Next step is search process where customer maps all details regarding quantity, quality
and resource requirements are search. Customer research for organizations or places where their
needs would be satisfied.

The next stage is evaluation of alternative. Customer now evaluates various alternatives
that are available. For example, he would evaluate other firms along with Zara where he could
get a coat. Selection is the next stage in which final decisions are made by the customers
regarding price and other marketing mix principles (Mallen, 2013). For example, customer
would select Zara to purchase a coat after evaluating the alternatives after.
After all above stages are cleared, the last stage is evaluation of decision/ post purchase
behaviour. For example, after purchasing coat from Zara, the customer will evaluate whether the
coat purchased from Zara satisfied his need or not. On the basis of the satisfaction level, the
positive or negative feedback will be distributed by the customer about the product. Hence, it is
important for Zara to be careful and creat6e positive feedback about its products.
b) Buyer behaviour theories
Various theories coexist in businesses to understand the changing behaviour of buyers.
Decisions based on buying and purchasing are influenced by various factors like culture, trends,
self-perception, etc. (Monczka and et.al., 2015).
Generic theory of buying behaviour and cultural theory are considered in case of Zara.
Generic theory of buying behaviour: - According to generic behaviour theory
consumers or buyers will be inclined towards making a purchase only when they require that
commodity. Likeability towards the product is achieved only through performance and quality
standards of that particular product. If the buyer is satisfied with the same, future purchases are
diverted to Zara only. Company can take significant initiatives for gaining loyalty of buyers and
it will help in ensuring repeat purchasing of products by consumers.
Cultural theory of buying behaviour: - It is based on cultural factors that constitute a
society and individual. Culture comprises of values and beliefs that are set by the community.
Income levels, occupation type and education level influence these cultural beliefs. People buy
only those products in the vicinity of their thoughts (Solomon Russell-Bennett and Previte,
2013). Items or products which are acceptable culturally have a larger probability of success than
the ones which are offending or rebellious. At times, a leader of the community influences
purchasing behaviour depending on the cultural acceptability of product. Products of the
enterprise can be developed by considering trends and customs that are running in the society.
Internal theory of buying behaviour :- According to this theory decisions of people for
purchasing a specific product depends upon several factors and it includes financial status of

buyers, occupation, recommendations and suggestions given by family members and friends,
price of products and some other factors. Zara Company can take significant steps for designing
and marketing the products to meet the need and expectations of buyers.
Environmental theory of buying theory: - According to this theory different types of
reactions are shown by buyers. Behaviour shown by buyers depends upon different situations
and it is vital that needs and preferences of consumers should be considered while manufacturing
the product. Market survey can be conducted for assessing needs and requirement of consumers.
Maslow's Hierarchy of needs: This theory is based on the classification of different
needs of an individual while addressing a market. The different levels of needs in this
hierarchical distribution are physiological, safety or security, belongingness and love needs,
esteem needs and self-actualisation. Organisations can understand individual behaviour
according to the levels in this hierarchy and then develop specific products and services.
Following picture depicts Maslow's hierarchy of needs.

Every level in the hierarchical pyramid is very important because they are somewhere
connected to the buying behaviour of individuals in the market. Zara has to produce commodities
in such a way that at-least basic needs of customers are fulfilled. Physiological needs are
considered to be the most important needs because they are very basic. Every individual wants
food, shelter, clothing and effective sleep to survive in this world. Zara has to devise a pricing
structure that will be applicable on all its products in such a way that company is able to meet the
basic needs of all its stakeholders.
Zara being an international marketing firm has to meet two levels of needs in the
Maslow's hierarchy. The company is positioned in between safety and security needs and
physiological needs. If employees are paid appropriate salary to fulfil basic needs of food and

shelter then their productivity will increase. On the other hand, safety and security at business
premises is also important. In case of buyers and other individuals Zara fulfils clothing need of
individuals.
Considering buyers of Zara's products, the company has to lie in the upper levels of the
pyramid. The products and services that are generated by the company should be acceptable by
friends and family that will automatically develop love and belongingness. If products that are
manufactured by the company meet customer expectations then, their self-esteem is boosted and
they can become brand loyal to the company. Moreover, self-actualisation needs are also
satisfied effectively.
c) Factors impacting buyer behaviour
There are four basic factors that influence a consumer or buyer behaviour and these are
cultural, social, personal and psychological. All attributes that are displayed by a consumer
during purchasing process of a product are considered to be influencing (Gauthier, 2016).
Cultural characteristics are beliefs and values that a person follows which are laid by a society or
community. If a product is not acceptable to the community, then individual buyers have less
proclivity towards that product. Social elements like family, groups, financial status and
respective roles of consumers contribute to decisions which a person makes while purchasing a
product. For example, a celebrity has to spend more on expensive apparels by Zara to maintain
their social status.
Age, occupation, economic situation and lifestyle are the components of personal factors
affecting consumer behaviour. As a person makes progress in his individual life, he leans
towards improving his lifestyle by purchasing luxurious products from company (Silverman,
2016). Self-beliefs and perspectives are all the factors. If a consumer is not comfortable in
buying products from Zara, he won't buy that but if he is attracted towards the brand, then he will
invest in the same. Psychological factors are these perspectives and motivation level of a
consumer.
Psychological factors are these perspectives and motivation level of a consumer (Grant,
2016). Perception of buyer towards a particular product, recommendations given by family
members, friends and other people also gives impact on the purchasing decision of buyer.
Cultural factors also gives impact on the marketing activities that are performed in the enterprise

and it is vital that impact of these factors should be considered while running business functions.
Trends, values, beliefs and norms that are running in the society gives impact on the functioning
of the enterprise.
Purchasing decision of buyers also depends upon recommendations given by friends and
family members and due to that sales of the entity gets hampered (Fraering and Minor, 2013).
For example clothing products that are manufactured by the organization are purchased by
consumers and buying behaviour gets affected by psychological factors. Company can
manufacture their clothing products by identifying cultural trends that are running in the society
and it will help in offering better clothing products to consumers for meeting their expectations.
d) Links between brand loyalty, corporate image and repeat purchasing
Brand loyalty: When a company observes a commitment from consumers with their
patterned purchasing over time, then a brand loyalty develops. Certain customers develop a habit
of purchasing products from a particular brand without considering their pricing and market
strategies.
Corporate image: This term specifically defines the current market position and
perceptions that a company has received after its foundation. It is generally views and
perspectives of people at the corporate level in industry.
Repeat purchasing: If a consumer purchases a product repeatedly from the same brand at
different occasions then a chain of repeat purchasing is initiated. It is a measure of customer
loyalty for a brand.
All three components are deciding factors of the brand reputation for a company. Zara is
a worldwide recognised brand where it holds a nice and legitimate corporate image. Currently, in
whole world, there is news for its increasing brand loyalty. Corporate image of a company
cannot be decided without the help of brand loyalty and repeat purchase capacity (Nardi, 2015).
For example, if Zara doesn't keep track of its loyal customers and their purchase processes, it
won't be able to measure whether repetition is observed or not.

TASK 2
a) Market research objectives
The market research objectives are defined for developing a workable path for the
employees or team members that have been assigned responsibility of conducting market
research. Following market research objectives have been defined for Zara:
 To understand the acceptance level amongst customers for products developed by Zara.
 To get knowledge about company's strategic position in competition and UK markets.
b) Market research techniques
Market research is defined as the activity that involves gathering information about the
needs and preferences of customers. It is an important element of market intelligence. Company's
current reputation in the eyes of its customers is perceived with the help of market research
(Hair, 2015). The role of marketing research is to help in the decision making process of the
company by reducing the uncertainties and risks in the decision making through provision of
information gathered from the marketplace.
Types
Market research may be of different types such as primary, secondary, qualitative and
quantitative.
Following are some techniques that are used for studying the market:1. Surveys: Objective and quantitative analysis of market is conducted with the help of
surveys. These surveys can be initiated at every purchase or occasionally depend on the
needs and requirement of company. Surveys are a type of primary as well as quantitative
market research.2. Focus groups: When a group of people is considered for reviewing an organisation,
certain topics and questions are discussed for obtaining information regarding research
(Bryman and Bell, 2015). Focus groups are type of primary market research. These are
also considered to be qualitative as detailed and in- depth information is collected
through them.3. Observation: Zara can adopt continuous monitoring and evaluation by recording all
activities inside its stores and tracking customer feedbacks at online portals. This helps in

developing keen observation on consumers and their reactions for company's products.
Observation is a type of primary and qualitative market research.4. Personal interactions: Companies can perform face to face trials and interviews with
loyalty customers for getting the review about products and their quality. Attitudes during
this process will help in getting deep market research for those products (Jenkins and
Forsythe, 2015). Personal interactions are a type of primary market research.
5. Secondary market research: Secondary market research is one which is carried out by
refereeing to various secondary sources of data such as journals, books, government
reports, newspaper articles etc.
In my opinion, customer surveys as well as personal interaction are better techniques for
Zara to promote itself. For example, customer survey would yield useful information about
consumer behaviour which can then be incorporated by Zara into its strategies. Further, it will be
less time consuming and responses can be collected from large number for respondents. Personal
interaction will be effective in obtaining detailed information (Nardi, 2015).
c) Sources of data
Secondary data belongs to the internal information of company which is maintained for
performing other documentation formalities. It is acquired with the help of warranty cards and
invoices that belong solely to consumers and company and no third party can access it.
Internal sources are the purchase modes of company which can be either online or in physical
stores (Goworek and et. al., 2012). Since Zara is a private sector undertaking, it has to maintain
records of all its transactions through invoices which are used for filing taxations and other
economic documents. The details in invoice and warranty cards give in-depth knowledge about
types of consumers and their purchasing frequency. Information can be collected from
employees, sales people, consumers, shareholders and by conducting market survey and
research. It will help for gathering necessary information for Zara Company and it will help for
making effective strategies and action plans for the entity.
External sources of secondary data includes government census which helps in reducing
wastage of resources and time by the firm. Maintaining records for such a big brand is a
humongous task but support of government help benefits in getting accurate and precise results

about data in its research processes. University and colleague resources can also be used for
collecting required information for Zara Company.
Competitor data resources: - Details can be collected from internet and required
information will be collected from the websites of competitor firm.
d) Validity and reliability of market researching
Every product that is launched by Zara has to meet certain expectations of consumers. It
is not necessary that these parameters will be valid whenever company is planning to launch a
new product. Market research and analysis is carried out with a motive to enhance this
acceptability and stability of product in current markets. It is essential that the analysed data must
be valid and reliable (Grant, 2016). There is no point in collecting a huge amount of information
which is not even relevant to the purpose of research. Validity: There are different types of validity such as internal, external, test and face
validity. Face validity is the estimation of whether a criterion is being measured by a test
or not. For example, if questionnaire is being used by Zara as a measurement procedure,
it should accurately represent the variable that it is measuring. Findings are declared to
be valid when the extent of difference between actual and estimated value is less.
Predictive validity is defined by the applicability of measured data or information by the
predictor. It is a calculative process where actual research and assumed results are
correlated. On the contrary, constructive validity is just an estimate up to which the
measuring technique will be performed (What are Validity and Reliability?, 2016).
 Reliability: There are various types of reliability such as inter-rate, test- retest, parallel
forms and internal consistency (Gauthier, 2016). For example, inter- rater reliability
would be when Zara would evaluate the reliability across different people. This would be
about finding out the extent of similarity between the scores given by different people.
Test- retest reliability is associated with evaluating reliability over time. For example, if
Zara carries of survey questions with customers over several years, it will be a type of
test- retest validity. This parameter refers to the extent of repeatability of results in
findings. There are chances that reliable information may or may not be valid but vice
versa is applicable (Takala, 2015). Research or finding can be reliable when repetitive
tests depict the same results.

e) Marketing research plan
Business organisations make strategies that need to be evaluated so that improvements
can be configured. The basis of these improvements is market research. Generally, analysts are
appointed for conducting these researches with help of aforementioned techniques. It gives the
views and opinions of stakeholders over current products and strategies.
Market research is conducted for enhancing future strategies and producing better
products and services. Zara has to conduct market research by using surveys so that customer's
perception for the company can be obtained. Moreover, improvements can be made according to
the results obtained from this research.
Zara can follow the following
procedure for developing a market
research plan for its new collection of
women apparels (The Market Research
Process: 6 Steps to Success, 2011).
MARKET RESEARCH PLAN
Objective and problem: Defining objectives and goals is an essential part of a research plan as it
gives direction for further operations. Problems regarding acceptance and success of product are
to be analysed which defines the purpose of research.
Rationale: The market research plan is prepared for understanding the local needs and demands
of customers with reference to current strategies of company. Zara can use this market research
for fulfilling its objectives and meeting sustainability in market.
Research Design: Since, Zara is working out this research plan for getting a broader insight
regarding the position of its women apparels, a descriptive research design can be developed. It
is a quantitative finding where specific areas will be focused and surveys will be initiated.