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A study on ZARA

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Case study on ZARA

799 Downloads 9 Pages 2209 Words

Chapter 1: Introduction

1.1 Overview and background of the research

With rise of globalisation, organisations get opportunity to expand their business in international market, more easily. It helps in enhancing customer base and developing high economy to run business successfully (Phau, Teah and Chuah, 2015). In context with companies dealing in fashion industry, expanding business at global level, not only provide benefits but also give various challenges. As when so many companies run their business on same marketplace, then it rises competition among them. In addition to this, getting a range of products on different-different price rates also impact on behaviour of customers. As they demand more from trendy and fashionable clothes that suits their personality from organisations. Therefore, to complete desires of targeted customers and exceed level of satisfaction, create various difficulties for such companies. In context with M&S, it is considered as one of the best fashion retailer industries in UK. It has opened more than 300 stores in 40 overseas locations to enhance its customer base. But with rise of globalisation, it faces various issues related to social attitude in fashion industry.

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1.2 Research Aim, objectives and questions

In order to conduct a research in systematic manner, it is essential for researchers to formulate appropriate aims and objectives. This would help in monitoring the entire activities related to survey for obtaining higher outcomes (Kim and Ko, 2012). Therefore, in context with present research, aims and objectives related to concept of reward system are given as below:-

Research Aim: “To determine how international brands impact on social attitude in fashion industry. A study on M&S”

Research Objectives:

  • To identify the effect of fashion industries on changing attitude of customers
  • To ascertain the challenges faced by M&S due to changing behaviour of consumers in international retail market
  • To determine strategies that need to be adopted by M&S to deal with challenges to stay competitive at fashion industry

Research Questions:

  • How to identify the effect of fashion industries on changing attitude of customers?
  • What are the challenges faced by M&S due to changing behaviour of consumers in international retail market ?
  • Which strategies are needed to be adopted by M&S to deal with challenges to stay competitive at fashion industry?

1.3 Rationale of the research

The recent entry of various fashion brands in international marketplace, decreases sales of existing organisation and create numerous challenges as well. It includes changing demand of customers, bargaining power of both suppliers and consumers, threats of entry of new competitor and more. All these challenges impact on profitability and sales performance of organisations dealing in fashion industry (Kamal, Chu and Pedram, 2013). The main purpose of conducting this research is to identify how international brands influences social attitudes in fashion industry. It entails changing behaviour of customers due to emergence of international organisation. In addition to this, it also describes strategies that M&S can use to deal with such challenges.

Chapter 2: Literature Review

2.1 Effect of fashion industries on changing attitude of customers

As per article given by Kaisa Vehmas and et. al. (2019), it has identified that in fashion-industries, competition has become more intense. It is mainly increase due to fast-developing and affordable fashion which leads to change behaviour of customers also. People seek to get more trendy clothes and garments on reasonable rates to satisfy their needs. In addition to this, fast-fashion has become more popular as well as socially conscious movement, which shifts mindset of people from quantity to quality (Consumer attitude and communication in circular fashion, 2019). With emergence of organisations dealing in fashion industry, people concerns more on high-quality and fashionable trends of marketplace. In addition to this, as a result of fast fashion trend, customers are also discarding to higher volumes of textile waste. This would lead to reduce use of water, chemicals and energy in production of high quality of garments. Therefore, usage of wear and tear, non-removable stains turn textiles non-reusable. This type of products can be recycled or used as raw material.

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2.2 Challenges faced by M&S due to changing behaviour of consumers

According to views and perception of Bertoli (2013), it has evaluated that changing behaviour of customers impact sustainability of organisations, in international market. As emergence of fashion industries at same marketplace impact hugely on perception and preference of customers. Therefore, it create various challenges for companies dealing in fashion industries. In context with M&S, getting a range of fashionable clothes on desired rates, move its targeted customers towards other organisations(Grayson and Hodges, 2017). So, this would lead to reduce customer base, decrease sales performance and more, which directly impacts on profitability and sustainability on business. It also arise issues related to attract new customers towards business as they want more trendy and fashionable clothes.

2.3 Strategies to deal with challenges to stay competitive at fashion industry

As per different perception and view points of Kim and et. al. (2012), it has analysed that to deal with challenges and changing behaviour of customers, M&S need to adopt effective strategies. It includes developing price strategies i.e. offer products on competitive price rates, promoting business through effective communication technologies etc. Therefore, to enhance sales performance, M&S should concern on adding more values in existing products. In addition to this, by using social media technology, it can develop effective relationship with national and international customers. This would help in getting their retention for longer period of time as well.

Chapter 3: Research Methodology

This part of research plays an important role in achievement of aims and objectives in set period of time. It provides a work plan for a research and training in choosing methods and scientific tools for solving a specific problem. It aids in decision making about a specific situation. It include various approachessuch as qualitative and quantitative. Qualitative approach refers to the primarily exploratory research which is used to gain underlying opinions and motivations. It helps to develop a idea or hypothesis for quantitative research. Quantitative research approach is a way of generating numerical data which can be converted into usable statistic. It is used to quantified the defined variable and generalize a result from large sample population. The data structure in quantitative research approach is more strict and structured than the qualitative research. In general, researchers use two types of data collection method to gather specific information, as explained below:

Primary data: It is conducted to meet specific and unique needs. In that type of research primary sources of data are used by the researcher. The research include survey, interview questionnaire and observation methods of data collection and many other primary sources. Primary research provides two basic forms such as exploratory and specific.

Secondary data: It refers to that type of research which is based on previously conducted data. These type of researches includes internet search, many journals, articles and published data by Govt. etc.. these type of researches contains very low cost and less time consuming process.

In context with present research, both primary and secondary techniques are used to gather information. In primary research, questionnaire method is used, which contains a number of questions related to mentioned topic. It may be in printed form or may be emailed to respondents. The respondents have to answers the questions mention in the questionnaire as per own manner. This would aid researchers to ascertain impact on fashion industries on changing behaviour of customers and respective organisation (M&S). While, secondary techniques are used to conduct literature review, where some articles have been selected to address research objectives.

Questionnaire

Name:

Age:

Gender:

Q1) Do you think entry of fashion industries impact on social behaviour of people?

a) Yes

b) No

Q2) Is changing behaviour of customers affect sales performance of fashion industries?

a) Yes

b) No

Q3) What are the main challenges M&S face due to entrance of international brands in same marketplace?

a) Changing behaviour of customers

b) Decreasing sales performance

c) Remain competitive at marketplace

Q4) What are the opportunities people gain with emergence of global organisations?

a) Get a range of fashionable products

b) Purchase products on desirable rates

c) Improving living standardisation

Q5) Which is the most essential factor that M&S needs to concern while developing strategies?

a) Promote Brand

b) Maintain competitive edge

c) Foster customer relationship

Q6) Which are the main strategies that makes M&S to remain competitive at marketplace?

a) Creating innovation in business as per latest trends

b) Promoting business in international marketplace

c) Dynamic Organisational Policies

Q7) Are you satisfied with fashionable products offered by M&S in international marketplace?

a) Yes

b) No

Q8) Provide some recommendation to M&S to improve and enhance its sales performance, to remain competitive at international marketplace...

Chapter 4: Time Line Of Research Activities

In order to complete a research and obtain specific outcomes in set duration, researchers use two techniques. It includes Work Break-down Structure and Gantt Chart, as explained below:-

WBS refers to the work break down structure which means dividing the whole work project by a organization into similar tasks. Dividing of whole project in smilier task makes the work easy and manageable. Usually the project manager use this method to make the work simpler. There is no hard and fast rule of diving work under this method (Zhang and Kim, 2013). If the method was efficiently adopted by managers then it determine the success of project. There are few reasons to adopt this method such as accurate assignment of responsibility to whole team, measurement of time, cost and risk, etc..

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Gantt chart is a type of bar chart which used to illustrating the schedule for a project. It can be used for every type of projects. By the help of that chart project managers can track progress of project at every level, anytime. The simplest type of tool for creating Gantt chart can be Microsoft excel, many more other software can be used as per choice of chart creator and according to requirement (Fernandes, 2013). Identifying the level of detail required in the project schedule is the key when selecting a suitable Gantt chart tool for the project.

Conclusion

It has evaluated from this research that due to rise of globalisation, companies dealing in international marketplace, not only gain benefits but also face various challenges. In this regard, enhancing sales performance, customer base, high profitability etc. are considered as opportunities, companies can gain by expanding their businesses across boundaries of nation. While dealing with changing behaviour and demand of customers is considered as main challenges, especially for fashion industries to remain competitive at marketplace.

References

  • Bertoli, G., 2013. International marketing and the country of origin effect: the global impact of'made in Italy'. Edward Elgar Publishing.
  • Fernandes, C., 2013. Analysis of counterfeit fashion purchase behaviour in UAE. Journal of Fashion Marketing and Management: An International Journal. 17(1). pp.85-97.
  • Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make corporate social responsibility work for your business. Routledge.
  • Kamal, S., Chu, S. C. and Pedram, M., 2013. Materialism, attitudes, and social media usage and their impact on purchase intention of luxury fashion goods among American and Arab young generations. Journal of Interactive Advertising. 13(1). pp.27-40.
  • Kim, A .J. and Ko, E., 2012. Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research. 65(10). pp.1480-1486.
  • Kim, K. H., and et. al., 2012. Increasing customer equity of luxury fashion brands through nurturing consumer attitude. Journal of Business Research. 65(10). pp.1495-1499.
  • Phau, I., Teah, M. and Chuah, J., 2015. Consumer attitudes towards luxury fashion apparel made in sweatshops. Journal of Fashion Marketing and Management. 19(2). pp.169-187.
  • Zhang, B. and Kim, J. H., 2013. Luxury fashion consumption in China: Factors affecting attitude and purchase intent. Journal of Retailing and Consumer Services. 20(1). pp.68-79.
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