Consumer Sales Triggers: Zara Company

Abstract

Zara Company is a worldwide retailers store owned by distribution group Inditex and known for its success in men’s, women’s, and children’s wear. Their success as a brand is attributed to their speed and responsiveness to the latest fashion trends that are Zara’s primary competitive advantage exemplifying the notion of ‘fast fashion.’ Zara Company brand is achieving growth in the fashion industry through diversification, adapting couture designs, manufacturing, distributing and retailing the clothes in two weeks of the original design first exhibition. Their speed is a complete contrast to an average period of six months estimate it takes to produce items in the fashion industry. The company’s product greatly relies heavily on sophisticated fabrics sourcing, cutting and sewing facilities nearer to its design headquarters. Zara’s success in the fast fashion business shows its’ functional operation strength evident as the company has an approximate of over 1600 retail stores around the globe. Unlike most fashion retail store, the Zara store does not rely on advertisement as a way of marketing that can be attributed to the most success in the fashion world. ‘Shoppers can engage their mobile phones to see models wearing selected fashions’(Forbes, 2018). Therefore, this paper will focus on the consumer psychology sales triggers the Zara stores can adapt to ensure their continued success growth rate in the fast fashion industry.

Problem definition

The size of market shares controlled by a business determines the business value and dominance over its competitors. More significant market shares controlled is achieved by advertisements that help establish awareness amongst the esteemed consumers of the business products. Alternatively to attract a more substantial number of consumers other companies may opt to issue of sales offers such as buy two get one free, with the intent of building a sustainable brand. Zara store over the recent years have less opted to advertisements; thus the greater dominance in the fast fashion industry intended is less achieved.

Objectives

The research will be qualitative research that focuses on a group of people, with the intent of understanding their opinion, underlying reasons, and uncovering trends in their thoughts. The main objective of this research is to identify the suitable consumer psychology sales triggers which Zara Company can employ as one of their prime strategies to counter the competition from the other brands and to help in establishing a long-lasting dominance in the fast fashion industry.

The research will focus on why the identified consumer psychology sales trigger from the clarity insight model is the best option over marketing strategies.

The paper will be centered around the respondent profiles to help in establishing estimated consumers and the intended market coverage by the Zara Company.

The research will put into consideration how Zara Company point of sales materials might be structured to help maximise their product sales.

Hypothesis for the research

The consumer taste and preference are dynamic
Sale triggers are more effective than advertisements to the Zara Company
Most consumers are unwilling to incur high cost in purchase of goods
Zara company has less dominance in the market
The point of sale materials increases a company’s product sales.

Data collection methods and analysis

Due to time constraints, the data collection methods employed for this research are:

Use of questionnaires. A questionnaire was administered to help in understanding the consumers’ opinions and thoughts. The use of questionnaires has proved to be cost-effective in terms of financing the data collection and time used to obtain data as a large number of people could be surveyed at the same time.
Conduction of individual interviews. This method was employed to establish a sample of people from the survey who were the actual consumers of the product from Zara Company. This helped in establishing insight into the consumer’s awareness about the products, and the purchase behaviours of the consumers.

From the sample, a survey conducted most individuals’ preferences were found to be dynamic and changed with time. Since the preferences were either influenced with the latest trends and taste in commodities. Many individuals liked to identify themselves with the most current fashion wear so as not to feel left behind. The feeling was mutual across all gender as they intend to look trendy and fulfil their desire of being fashionable.

The data collected revealed that averagely all adults would conduct the purchase of clothes and products from the same store building regardless of the gender or age limit. Nearly all adults purchase their wears and those of their spouses and children since the purchase is more convenient and helps save time spend to conduct a purchase. The availability of augmented reality experience in the Zara Company retail stores allows clients to engage their mobile phones to visualise models wearing selected fashions when they click on sensors in the stores. This helps in attracting more consumers to the stores and increasing their product sales.

The data collected also revealed that most consumers are willing to pay high prices for commodities that are unique, of genuine quality and durable. They were more concerned with the quality of the product as to that of the cost.

The data shows that fewer people are not aware of the existence of the Zara Company and the products. These are the consumers who are often not concerned with the trends of the market, those that are loyal to other producers in the same industry ‘turning a blind eye’ to the Zara Company.

Discussions

Sales triggers strategies are the events that demonstrate an intense urgency to purchase goods. Most businesses are adapting the method to enable them to create the need for purchase. Some create the impression of the scarcity of the commodity to increase their total sales.

Sales triggers, primary depends on the consumers’ psychology for its effectiveness. The events should consider what one should remember, the need to act fast, the details about the commodity and what significance is the product to the consumer.

The figure below is a representation of a consumer psychology sales trigger model

Source: Consumer psychology; KHWS Durham sales triggers

Zara Company opting to capitalise on advertisements like her major competitors should maximise on deploying sales triggers that will attract most consumers at the expense of their competitors. Unlike ads, sale triggers may are a less costly and more effective method to increase a company’s sale.

The best strategy the Zara Company can employ is the less means more strategy, where they create a sense of scarcity, as people put a higher value on products in short supply. (KHWS-Durham Sale triggers). This strategy will allow Zara Company to make more sales is known for their authenticity in product production the impression of the products being of limited editions and number will prompt more sales in the shortest time possible since most consumers will be rushing to at least a sample of the product.

This method will also help in the retention of consumers loyal to the Zara Company has it help trigger the impression of only accessing the unique products that not everyone will have. This makes them have a feeling of identifying themselves with the company and the company’s products Respondent Persona

In this research, the consumer’s persona was established to help the targeted customers. Developing a respondent persona is fueled by a data-driven search that represents who is behind the buying decision, what they are trying to accomplish, what goals drive their behaviours, and how they buy. The customer persona can help inform everything from more effective copy to product development. Respondent persona is established from User-Centered Design (UCD) that is concerned with the design of interactive artifacts and systems with and for people (Turners, 2011). The modelling of respondent persona involves economic stereotype such as:

Putting a face on the products. This stereotype allows most consumers to identify with the company’s product as they are customised to the user’s identity.
Psychology of stereotypes. Stereotypes comprise theoretical knowledge about a group, e.g., all customers do not like coupons, alongside several exemplars. The effectiveness of a stereotype lies in the cognitive economy.

The respondent persona should be established with sales triggers to help enhance marketing and sales promotion. From the concept of Zara Company the respondent persona are;

A new consumer of the Zara Company product
A customer willing for change and upgrading their wardrobe by trying something new
A customer who is looking from less pricy but high-quality product

Identifying the respondent will help to establish the right sales triggers to help improve sales, but inappropriate sales trigger results to buyers’ frustrations (Understanding the consumer buying cycle, 2010). Creation of a persona design does not solve the problem of bias scenarios, with stereotype being evitable when establishing the respondent persona. The problem of biases likely to be experienced are price consideration, the taste and preference of different individuals for instance as long as it is pink, most likely the intended customer is of the female gender.

When establishing the respondent persona, the following are considered:

Gender of a respondent;
The age of a respondent;
The trends he or she tends to associate with;
The brands they identify with;
The consumer’s purchasing power.

Recommendations

The research shows a clear indication that sales triggers strategies are proving to be quite an effective method of increasing market sales and Zara Company should consider deploying other sale triggers. They are cost-effective compared to different sale promotion technique as advertisements.

From the research, I will highly recommend putting in place point of sales materials (POS) such as structuring the stores in an orderly arranged manner, for example having children section separate from the men section. The partitioning of sales stores into sections will help the customers purchase goods at ease thus maximising sales as they experience no difficult when purchasing. The company can also consider the integration of marketing grader tool onto their websites, and this tool triggers the consumers to acts to try and improve their loyalty scores to the company.

I will also recommend the use of coupons and sales offers such as discounting goods during the Black Friday sales to help expand their sales and market shares controlled by the company. These coupons offers will act as sale triggers as most consumers tend to race to store where coupon is guaranteed as they view this act as a reward from the company for their loyalty.

I will strongly recommend the company to consider the use of the obvious truth as a sales strategy. For instance, Zara company being a worldwide known retail brand, this will help them in customers retention as most will be loyal and trust a most established worldwide known brand compared to the loyalty they will have for upcoming brand store.

For an effective consumer psychology sales triggers the Zara company should put into consideration and capitalise on the customer buying cycles which entails the customer awareness of the product, for instance, I was in the neighbourhood and decided to come, but just browsing, consumers considerations and purchase; where consumers on purchase items when they need to.

Conclusion

Consumers psychology sales triggers are one of the most effective marketing techniques most production companies are opting. With a better understanding of the targeted consumers, the companies can initiate cost-effective sales triggers that earnest most customers with less fatigue. Zara Company will continue to grow their market shares and dominance over its most competitors if they have a better understanding of the consumers’ buying cycles, and having a better understanding of their intended customers. Since every major business company is to succeed and dominate the business and consumers fatigue and frustration from inappropriate sales triggers will be considered as a failure.

APPENDIX

Survey Questionnaire

Zara Company Questionnaire

This survey is designed to help the researchers identify Consumer psychology sales triggers that best suits consumers and the company. The term ‘Consumer Psychology sales triggers’ refers to demonstrate the consumers’ urgency to buy products, which may include the integration of coupons to increase company sales and also to reward the customers.

Instructions

Use and X or a tick where possible
Answer all questions if possible

Questions

Gender Male Female

How old are you

15 and below 30-45years

15 – 18years 45-59years

18 – 29 years 60 and above

Region you are from

America Europe Asia Africa Australia or Others

Are you a satisfied customer of the clothing industry?

Definitely Yes Yes Maybe No Definitely No

Are aware of the latest clothe wear trend?

Definitely Yes Yes Maybe No Definitely No

Are you willing to purchase the latest trends?

Definitely Yes Yes Maybe No Definitely No

(if No or Definitely No, kindly give a reason why): _____________________________________________________________________________________________________________________________________________________________________________________________________

What is your favorite clothing wear retailer store? _______________________________

Have you ever heard of Zara or its products?

Definitely Yes Yes Maybe No Definitely No

If No are you willing to try out their products? ________________________________________

If Yes are a frequent buyer of Zara Products?

Definitely Yes Yes No Definitely No

When did you last purchase buy brand new Zara products? _____________________________

What is your opinion on Zara’s position globally?

1^st 2^nd 3^rd 4^th 5^th Others

Please rate your Satisfaction with the products from Zara Company and the services at the stores with 1 being the lowest score and 8 the highest scores

	1	2	3	4	5	6	7	8
Quality
Price fairness
Courtesy and Professionalism
Responsiveness to customers recommendations
The after-sale services e.g. delivery

Will you recommend Zara to your friends?

Definitely Yes Yes Maybe No

What is important to you in Customer Service?

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

In case of any suggestion on how Zara could improve their products or services

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
(Thank you for answering the questionnaire. Your response and opinion are highly appreciated).

References

Danziger P. N. Why Zara Succeeds: It Focuses On Pulling People In, Not Pushing Product Out. Forbes, Apr 23, 2018. Retrieved from: https://www.forbes.com/sites/pamdanziger/2018/04/23/zaras-difference-pull-people-in-not-push-product-out/#1ac5144523cb

Shopify.com, 2018. 7 Psychological Triggers that Win Sales and Influence Customers. Retrieved from: https://www.google.com/url?q=https://www.shopify.com/blog/8920983-6-psychological-triggers-that-win-sales-and-influence-customers&sa=U&ved=0ahUKEwj0ne-av9LhAhUPmRoKHbmqBWsQFggHMAE&client=internal-uds-cse&cx=012684331380167808104:oe5oj–md1a&usg=AOvVaw2uPxhdv5BP6oL3aIZo-k3-

Turner, S., 2011. Is Stereotyping Inevitable When Designing with Personas? Des. Stud. 32(1), 30-44.

Skok D., 2012. Understanding the customer buying cycle; Retrieved from: https://www.forentrepreneurs.com/buying-cycle-and-triggers/

Soloaga P.D., Monjo M., 2010. Zara Case Study. The company where everything communicates. Retrieved from: https://www.academia.edu/1427696/

Financial Conduct Authority, February 2015. Consumer Vulnerability. Retrieved from: https://www.fca.org.uk/publication/occasional-papers/occasional-paper-8-exec-summary.pdf

Shotton R., 2018. The Choice Factory. Petersfield: Harriman House.