Promotional Strategies- ZARA

1 .       How does the company create awareness of its product?

Zara uses a mix of  demographic, geographic and psychographic segmentation strategies in order to serve the growing needs of the customers.

Zara has limited stores across the globe due to which it uses selective targeting strategies to make their products available in the market.

2.       How does the company get consumers to try its product?

Usage-based positioning strategies are used by Zara to highlight its customer’s centric approach to satisfy the changing fad needs of the customers around the globe. Zara knows that its customers want new and updated trends and accordingly it targets customers based exclusively on its designs.

3.       How does the company give information about the product to its customer?

Instead of advertising, Zara uses its store location and store displays as key elements of its marketing strategy. By choosing to be in the most prominent locations in a city, Zara ensures very high customer traffic for its stores. Its window displays, which showcase the most outstanding pieces in the collection, are also a powerful communication tool designed by a specialized team. A lot of time and effort is spent designing the window displays to be artistic and attention grabbing. According to Zara’s philosophy of fast fashion, the window displays are constantly changed. This strategy goes down to how the employees dress as well – all Zara employees are required to wear Zara clothes while working in the stores, but these “uniforms” vary across different Zara stores to reflect socio-economic differences in the regions they were located. This effectively communicates Zara’s focus on the mass market, yet another detail that reflects its close attention on the customer.

4.       How does the company retain loyal customers?

The clothing retail industry is highly competitive and the changing fads, socio-economic and behavioural culture possess a major challenge for the companies operating in this industry. Back end integration, high raw material cost and advertising cost are the other factors that affect the apparel industry companies by and large.

5.       How does the company entice the customer to buy more and use their product frequently?

The fashion clothing retail industry is highly competitive with various brands such as H & M, Mango, Gucci and many other national and international brands fighting with each other in the same segment. However, the designs made by Zara are based on the consumer & market feedback which they continuously work upon to be more of the consumer-oriented brand.

6.       What promotions does the company use to identify more customers?

Zara has cultivated unique advantages with its 4Es approach to marketing by focusing on experience, exchange, evangelism and every place strategies for the customer, rather than the old product, price, promotion and place concept focused on the brand.