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How Does Zara Sustain Competitive Advantage In Europe Without Advertising? (2007)

Ref: market0040

Most of clothes retailer spends millions in advertising campaign in order to promote their product, increasing the related brand awareness and to attract customers in their shops. Advertising is everywhere and people’s desire are always stimulating and encouraging by this kind of communication. The role of advertising is very important in any marketing plan. This study attempts to provide an understanding of how fashion retailer such as Zara can sustain competitive advantage without any advertising. This report examines Zara, a strategic unit in the Inditex group, which is shown to be a pragmatic example of the development of market orientation in a company, as a basis for the company’s performance and competitive advantages. The study is also intended to gain a better understanding of word of mouth mechanisms. Positive and negative word of mouth are differentiated and the study gives evidence that customer’s satisfaction is closely linked to word of mouth. The study highlighted that create satisfied customer is vital to Zara. The investigation comprised of a questionnaire framework which focused on analysing opinion people have about Zara and what information is spread about the company through the medium of word of mouth. The results support the theory of the literature review regarding the different criteria that made a brand successful. Findings conclude that Zara have the entire asset to sustain a competitive advantage by being strongly customers oriented, differentiated, innovative, responsive and appreciate by customers.

  • 10,000 words – 65 pages in length
  • Excellent use of literature
  • Good in depth analysis
  • Well written throughout
  • Includes questionnaire
  • Ideal for marketing and business students


1 - INTRODUCTION
Reasons for choice of topic
Outline and Objective of chapter

2 - SETTING THE SCENE
Presentation of Inditex
Presentation of Zara

3 - LITERATURE REVIEW
From market orientation to marketing orientation: Two different concepts
Definition of Market orientation
Customer orientation as a pillar of market orientation
Market orientation as a source of competitive advantage
Market orientation: Limitation and conditions
Zara, a good example of market orientation
Definition of word of mouth marketing
Positive word of mouth
How to generate positive word of mouth?
Negative word of mouth
The rule of 3-33: Most of talk is negative
word of mouth has an impact on the sales performance of a firm
word of mouth about Zara

4 – METHODOLOGY
Secondary research
Advantages
Limitations
Primary research
Quantitative research
The use of questionnaire
Methodology
Design the questionnaire
Pilot interview
Administering the questionnaire
Advantages of the method
Limitations of the method
Ethical issues

5 - FINDINGS and ANALYSIS
Customers and Zara
Customer’s satisfaction
People Speak positively about Zara
Conclusion

6 – CONCLUSION
Significance of findings
"Zara, a differentiated brand..."
"...who sell good quality product"
Zara is innovative
Full support management – employee
Long term support of Zara
Conclusion
Limitations
Recommendations for further study

References

Bibliography

Appendix Section



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