PGDM/PGDM (General) Dissertation Report On

“A study on ZARA brand image in influencing BRAND LOYALTY and

CONSUMER LOYALTY of the consumers in
The clothing sector”

Submitted in partial fulfilment of the requirements for the TWO- YEAR

POST GRADUATE DIPLOMA in MANAGEMENT

Submitted by: Under the Guidance of:

Name – Payal(PGDM22132) DR. Arvind Kumar Bhatt

1
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD,
Govt. of India Plot No. 2, Knowledge Park-III,
Greater Noida

Dissertation Report
PGDM Batch 2022-24

FACULTY GUIDE
CERTIFICATE

This is to certify that the work reported in the Dissertation Report “A

study on ZARA brand image in influencing Brand loyalty and Consumer
loyalty of the consumers in The clothing sector ” , submitted by Payal at G L
Bajaj Institute of Management & Research, Greater NOIDA, India, is a
bonafide record of his work carried out under my supervision. This work has
not been submitted elsewhere for any other degree or diploma.

(Signature of Faculty Guide) Name: Payal

Date:23/1/2024

2
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD, Govt.
of India Plot No. 2, Knowledge Park-III,
Greater Noida

Dissertation Report
PGDM Batch 2022-24

Declaration

I, Payal declare that the dissertation report on topic “A study on Zara brand
image in influencing brand loyalty and consumer loyalty of the consumers
in the clothing sector” submitted by me, in GL Bajaj Institute of management
and Research is carried out under supervision of my faculty guide DR. Arvind
Kumar Bhatt and this work is never submitted before in any other degree or
diploma.

Name: - Payal

Roll No.- GMG22022

Date -23/1/ 2024

3
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD,

Govt. of India Plot No. 2, Knowledge

Park-III, Greater Noida

Dissertation Report
PGDM Batch 2022-24

ACKNOWLEDGEMENT

I would like to thanks the following people; without whom I would not have
been able to complete this Dissertation Report. My heartfelt gratitude goes to
our Director Dr. Sapna Rakesh for providing an opportunity to work on the
Dissertation project under the PGDM program. I convey my sincere thanks to
my Faculty Guide Dr. Arvind Kumar Bhatt for providing me the constant
support and guidance to carry out my project effectively and efficiently. I
would also like to convey my gratitude to all faculty members and staff for
their support and guidance.

Payal

PGDM22132

Trimester – V
4
 TABLE OF CONTENT

S.NO. CONTENT PAGE NO.

1 INTRODUCTION 6-12

2 PROFILE OF THE ORGANIZATION 13-23

3 OBJECTIVE AND RESEARCH METHODOLOGY 24-36

4 DATA ANALYSIS AND INTERPRETATION 37-44

5 SWOT ANALYSIS 45-47

6 SUMMARY OF FINDINGS, 48-52

CONCLUSION AND SUGGESTIONS

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CHAPTER 1- INTRODUCTION

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Zara is a Spanish fast fashion retailer brand. It is focused on design, production,
distribution, and sales through its extensive retail network. Zara’s products
range from clothing, accessories, shoes, swimwear, beauty, and perfumes. The
company was founded in 1975 by Amancio Ortega and Rosalía Mera. Zara is
the main brand of the Inditex group, the world’s largest apparel retailer. The
fashion group also owns brands such as Massimo Dutti, Pull&Bear, Bershka,
Stradivarius, Oysho, Zara Home, and Uterqüe. Zara manages up to 20 clothing
collections a year. Zara has presence in 202 markets through its online platform
and it has over 7,000 stores in 96 markets. And it employs 174,000 workers
around the world.

Two types of loyalty are fundamental to businesses: customer loyalty and

brand loyalty. While they're two separate concepts, the common denominator
is that they're both indispensable to customer retention. Let's go over customer
loyalty vs. brand loyalty — the difference between the two, and why they have
to be addressed in distinct ways.

Customer loyalty is born from excellent customer satisfaction — it’s when a

customer has such a positive experience with your brand and products that
they’re willing to buy or work with you time and time again.

Brand loyalty happens when a customer identifies with your brand on a

personal level. They either consciously or unconsciously purchase from your
brand repeatedly because they know your products or service will meet their
expectation.

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The main difference between these two loyalty types is that customer loyalty
revolves around customer spending, and brand loyalty is all about customer
perception. Customer loyalty can be formed by having lower prices than
competitors or better discounts and rewards programs.

With brand loyalty, pricing isn't as big of a factor — customers feel that your
brand is trustworthy and high-quality compared to all others. Customers with
brand loyalty are more likely to try out other products from the same brand,
regardless if they're more expensive or not.

While these distinctions are subtle, they can help provide a higher return
on investment (ROI) if they’re both consistently built over time.

1. Emotional connections

The emotional connection that drives customer loyalty differs from the
connection for brand loyalty. Low prices, loyalty programs and quality CX
foster customer loyalty because they make customers feel like organizations
listen to and appreciate their needs. Many people shop with set budgets, so
when organizations offer items for prices consumers can afford, they can
become repeat customers.

Also, loyalty programs reward repeat customers with additional -- often

personalized -- offers, which helps consumers feel as though organizations
value their commitments.

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Brand loyalty, on the other hand, is less transactional and more emotional. It
stems from trust between customers and brands, rather than price. Customers
may develop brand loyalty from the way they perceive an organization's
reputation, product quality or mission statement. For example, a customer who
always buys the same brand of smartphone without considering potentially
less expensive options represents brand loyalty. The customer trusts the
brand's quality and reputation, and likely won't consider an alternative.

2. Marketing approaches

Given that customer loyalty centers around price, whereas brand loyalty
focuses on trust, these two retention strategies often rely on distinct marketing
approaches. To build customer loyalty, marketers can focus ads on price and
customer savings, which appeal to customers with set budgets. Additionally,
marketers can use rewards programs to incentivize frequent purchases.

For brand loyalty, marketing teams should work to connect with customers on
an emotional level. Foor instance, marketing teams could link their brand to an
idea or mission that you to might appeal to customers. An electric car company
may associate itself with innoovation and sustainability, or a whole foods store
with health and wellness. Custoomers trust brands that share their own morals
and values, which can boost brand loyalty.

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3. Profit margins

Many organizations with high customer loyalty have lower profit margins
because they offer products at low prices. However, these organizations
typically make large numbers of sales, which makes up for the low margin.

Conversely, many organizations with brand loyalty have higher profit margins
because their customers respect the brand and its values over prices. These
organizations can charge premium prices for products because loyal customers
are willing to pay. However, some organizations with high brand loyalty may
sell fewer products and services than organizations with high customer loyalty.

All organizations should devise strategies to maximize customer retention.

Although some business models may favour customer loyalty, whereas others
may lean more toward brand loyalty, organizations can benefit from either
strategy.

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INDUSTRY SCENARIO

The clothing sector is a highly competitive industry with numerous players,

ranging from luxury brands to fast fashion retailers. Fast fashion retailers, such
as ZARA, are known for offering trendy and affordable clothing options to
consumers. In recent years, the industry has been facing increased pressure to
adopt sustainable practices, as consumers become more aware of the
environmental impact of fast fashion.

ZARA, like many other fast fashion retailers, has been working to address
sustainability concerns through initiatives such as their Conscious
Collection and the use of sustainable materials.
Additionally, ZARA has been investing heavily in their brand image, using
social media and celebrity collaborations to promote their products and reach a
wider audience.

However, the industry as a whole has faced challenges in recent years,

particularly due to the COVID-19 pandemic. Many brick-and-mortar stores
were forced to close temporarily, resulting in decreased sales and revenue for
clothing retailers. The pandemic also accelerated the shift towards e-commerce,
with many consumers opting to shop online rather than instore.

In this industry scenario, it is important for fast fashion retailers like ZARA to
differentiate themselves from their competitors and maintain a positive brand
image. The study on ZARA brand image in influencing purchase intention of
consumers in the clothing sector is particularly relevant in this context, as
understanding consumer behaviour and preferences can help companies like
ZARA stay competitive and adapt to changing market conditions.

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Macro & Micro

Macro factors that can impact the study on ZARA brand image and its influence
on purchase intention in the clothing sector:

• Economic factors: The economic stability and growth of the country can
affect consumer behavior and purchasing power. In times of economic
downturn, consumers may be less likely to make purchases, and may be more
price-sensitive, which could impact ZARA's brand image.

• Political factors: Changes in government policies, trade agreements, and

regulations can impact the clothing sector, and hence ZARA's brand image.

• Social factors: Changing consumer preferences, trends, and attitudes can

impact the brand Image of ZARA, social media, influencers, and the growing
importance of sustainability in the fashion industry are some of the social
factors that could impact the study.

• Technological factors: Advances in technology and digital platforms have

transformed the way consumers shop, and how they interact with brands, which
could impact the study on ZARA's brand image and purchase intention.

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CHAPTER 2- PROFILE OF THE
ORGANIZATION

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ZARA is a Spanish multinational retail clothing chain. It specializes in fast
fashion and sells clothing, accessories, shoes, beauty products and perfumes.
The head office is located at Arteixo in the province of A Coruna, Galicia. It is
the largest constituent company of the Inditex group. In 2020, it was launching
over twenty new product lines per year. It is focused on design, production,
distribution, and sales through its extensive retail network. Zara’s products
range from clothing, accessories, shoes, swimwear, beauty, and perfumes.

The company was founded in 1975 by Amancio Ortega and Rosalía Mera. Zara
is the main brand of the Inditex group, the world’s largest apparel retailer. The
fashion group also owns brands such as Massimo Dutti, Pull&Bear, Bershka,
Stradivarius, Oysho, Zara Home, and Uterqüe. Zara manages up to 20 clothing
collections a year.

Zara has presence in 202 markets through its online platform and it has over
7,000 stores in 96 markets. And it employs 174,000 workers around the world.

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History

Amancio Ortega opened the first Zara store in 1975 in central A Coruña,
Galicia and Spain. The first store featured low-priced lookalike products of
popular, higher-end clothing fashions. Ortega opened additional stores
throughout Spain. During the 1980s, Ortega changed the design,
manufacturing, and distribution process to reduce lead times and react to new
trends in a quicker way, which he called
“instant fashions”.
The improvements included the use of information technologies and using
groups of designers instead of individuals. In 1988, the company started its
international expansion through Porto, Portugal. In 1989, it entered the United
States, and then France in 1990. During the 1990s, Zara expanded to Mexico
(1992), Greece, Belgium and Sweden (1993). In the early 2000s, Zara opened
its first stores in Japan and Singapore (2002), Russia and Malaysia (2003),
China, Morocco, Estonia and Hungary (2004), the Philippines, Costa Rica and
Indonesia (2005), South Korea (2008), India (2010), and South Africa and
Australia (2011).

In 1988, the company started its international expansion through Porto,

Portugal. In 1989, it entered the United States, and then France in 1990. During
the 1990s, Zara expanded to Mexico (1992), Greece, Belgium and Sweden
(1993). In the early 2000s, Zara opened its first stores in Japan and Singapore
(2002), Russia and Malaysia (2003), China, Morocco, Estonia and Hungary
(2004), the Philippines, Costa Rica and Indonesia (2005), South Korea (2008),
India (2010), and South Africa and Australia (2011).

15
During the 1990s, Zara expanded to Mexico (1992), Greece, Belgium and
Sweden (1993). In the early 2000s, Zara opened its first stores in Japan and
Singapore (2002), Russia and Malaysia (2003), China, Morocco, Estonia and
Hungary (2004), the Philippines, Costa Rica and Indonesia (2005), South Korea
(2008), India (2010), and South Africa and Australia (2011).

On September 2010, Zara launched its online boutique. The website began in
Spain, the UK, Portugal, Italy, Germany and France. In November that same
year, Zara Online extended the service to five more countries: Austria,
Ireland, the Netherlands, Belgium and Luxembourg. Online stores began
operating in the United States in 2011, Russia and Canada in 2013, and
Mexico, Romania, and South Korea in 2014. Zara expanded to India in 4
October 2017.

In 2017, Zara was ranked 24th on global brand consultancy

Interbrand’s list of best global brands.

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Values

Over the years, Zara has remained faithful to its core values, expressed simply
in the same four key words that define all their stores: beauty, clarity,
functionality and sustainability.

Nurturing a highly intimate relationship with its customers, Zara’s designers

respond instinctively to their changing needs, reacting to the latest trends and
constant feedback received across its Woman, Man and Kids collections, to
deliver new ideas in the right place and at the right moment.

Customer Service

Further enhancing the quality of their customer service, Zara stores also include
Radio Frequency Identification Technology (RFID), using cutting-edge
systems to track the location of garments instantly and making those most in
demand rapidly available to customers.
This technology has allowed Zara to complete the implementation of its
integrated stock management system in the 49 markets in which it operates its
integrated store and online platform.

Sustainability

Zara’s Join Life collection and the eco-stores are two examples that underline
the brand’s unwavering focus on sustainability and improved customer
experience. These developments have been further enriched by a range of new
and innovative projects, such as the installation of clothing recycling containers
in-store and a scheme providing for free at-home collection of used garments to
complement the delivery of online orders.

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improved customer experience. These developments have been further enriched
by a range of new and innovative projects, such as the installation of clothing
recycling containers in-store and a scheme providing for free at-home collection
of used garments to complement the delivery of online orders.

Zara has committed to eradicating all releases of hazardous chemicals

throughout its entire supply chain and products by 2020. Furthermore, Zara
became the biggest retailer in the world to raise awareness for the Detox
Campaign, and switched to a fully toxic-free production.

Vision & Mission Statement

Vision Statement: ZARA vision is to develop itself as the leading clothing

brand that not only sets fashion trends but also sets industry standards in
sustainability, ethics, and social responsibility. They aim to create a positive
impact on the world by offering affordable and stylish clothing that empowers
individuals to express themselves while making conscious and responsible
choices.

Mission Statement: ZARA, mission is to inspire and empower individuals to

express their unique style through our trendy and affordable clothing, while also
promoting sustainability and ethical practices. They strive to maintain the
highest standards of quality and responsibility in our supply chain and
operations, and continuously seek innovative solutions to minimize our impact
on the environment.

They are committed to creating a positive social impact by promoting diversity,

inclusion, and fair working conditions for all.

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Product Profile

ZARA's product portfolio includes a wide range of clothing items such as

casual wear, formal wear, sportswear, swimwear, and accessories like shoes,
bags, and jewellery. The brand is also known for its collaborations with high-
end fashion designers, which help to create unique and exclusive collections
that appeal to fashion- conscious consumers.

ZARA's clothing collections are designed to meet the needs and preferences of
a diverse customer base. The brand's fashion collections are known for their
trendy and modern designs that are inspired by the latest fashion trends.
ZARA's clothing collections are also available in a range of sizes, catering to
customers of all shapes and sizes.

ZARA is committed to sustainability and has set ambitious targets to become a

circular and climate-positive company by 2030. The brand is focused on using
sustainable materials, reducing waste, and promoting a circular economy.
ZARA's commitment to sustainability and social responsibility has helped to
strengthen its brand image and appeal to customers who value ethical and
sustainable fashion.

Overall, ZARA's product profile is characterized by its trendy and affordable

fashion collections, diverse product range, commitment to sustainability, and
social responsibility.

These factors have helped to create a strong brand image that influences the
purchase intentions of customers in the clothing sector.

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COMPETITORS

Uniqlo: Uniqlo is a Japanese clothing brand that offers high-quality, basic

apparel at affordable prices. It is known for its functional and minimalistic
designs and its focus on sustainability.

Gap: Gap is an American clothing brand that offers casual, classic clothing
for men, women, and children. It is known for its denim products and its
focus on inclusivity and diversity in its marketing campaigns.

Forever 21: Forever 21 is an American fast-fashion brand that offers trendy

clothing at affordable prices for women, men, and children. It is known for its
frequent collaborations with popular celebrities and its focus on young,
fashion-conscious consumers.

ASOS: ASOS is a British online clothing and beauty retailer that offers a wide
range of clothing for men and women. It is known for its large selection of
products, affordable prices, and fast-fashion business model.

Mango: Mango is a Spanish clothing brand that offers trendy clothing for
women. It is known for its focus on sustainability, quality materials, and classic
designs with a modern twist.

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Market Share

As of 2021, ZARA is one of the largest clothing retailers in the world, with a
significant market share in the clothing sector. According to Statista, in 2020,
ZARA's net sales amounted to approximately 187 billion SEK (Swedish
Krona), which is equivalent to approximately
$21.7 billion USD.

In terms of global market share, ZARA is ranked as the second- largest

clothing retailer, behind only Inditex, the parent company of Zara. As of
2020, ZARA's market share was estimated to be around 4.4% of the global
clothing market, according to Euromonitor International.

In specific regions, ZARA has a significant market share as well. For example,
in Europe, ZARA is the largest clothing retailer, with a market share of around
10.6%, according to

Euromonitor International. In the United States, ZARA has a market share of

around 1.6%, according to IBIS World.

Overall, ZARA's market share in the clothing sector is significant and has a
major impact on the industry as a whole. The brand's success is largely
attributed to its fast-fashion business model, which allows it to quickly adapt to
changing fashion trends and offer affordable clothing to consumers.

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CORPORATE SOCIAL RESPONSIBILITY

Use of paper or biodegradable plastic bags

Use of paper or biodegradable plastic bags 90% of the bags Zara gives out to
customers are made of paper. However plastic bags are used in a minority of
case, at certain times such as sales campaign. All the plastic bags they use are
biodegradable that is they decompose through a natural biological process
which prevents the environmental pollution caused by traditional plastic. These
plastic can be identified with the d2w logo.

Generate recyclable information.

The Commitment to use PEFC paper and recyclable materials is extended to

the materials used for customer information. Their fashion catalogues are
printed on paper with the FSC/PEFP MARK (certificate guaranteeing
sustainable forest management)

Environmental policies with the product

Use of ecological fabrics, like organic cotton.

Zara Supports ecological agriculture and uses organic cotton in the

production of selected items of clothing (100% cotton, completely free of
pesticide, chemical agents and bleaches). With a distinctive label these
products can be identified very easily at the stores.

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Producing PVC –free footwear

No petroleum derivatives or non-biodegradable materials are used in

producing the footwear.

Environmental policy in the transport

They have introduced biodiesel fuel; Zara’s fleet of Lorries transport over 200
million items of clothing annually and uses 5% biodiesel fuel. This measure
enables us to reduce emission of CO2 into the atmosphere by more than 500
tones.

Animal welfare policy

All the animal products, including fur and leather sold at Zara come
exclusively from animal reared in livestock form and never from animal
sacrificed for skin sale.

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CHAPTER 3- OBJECTIVE AND
RESERCH METHODOLOGY

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LITERATURE REVIEW

The fashion industry is one of the largest and most competitive industries in the
world. Many fashion brands compete to attract and retain consumers by
building a strong brand image. ZARA, one of the leading fashion retailers in
the world, has been successful in building a strong brand image. This literature
review aims to explore the impact of ZARA's brand image on consumers'
purchase intention in the clothing sector.

Consumer satisfaction

 The customer satisfaction is the important and essential for the

firm’s long term success and has been considered for research by
large number of researchers specifically in field of marketing. As
the customer satisfaction has been considered and regarded as
fundamental determinant of firm’s long term success, many
research studies in field of customers ‘satisfaction have
investigated the post consumption impact on consumers like
attitudinal loyalty and behavioural loyalty. It has been accepted
widely that the satisfied customers are relatively less responsive
and sensitive to the prices, and are less influenced by the attacks
and counter strategic moves of competitors as compared with the
customers, dissatisfied from firm, its services and products.
 Customer satisfaction is cognitive as well as emotional.

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 Literature, on the other hand contains significant differences in
satisfaction’s definition and having two common formulations of
customers’ satisfaction including overall satisfaction and transaction
specific satisfaction. The transaction specific satisfaction of consumers is
an evaluation immediately after the purchase of products and services,
and is considered as affective reaction to recent experience with the
organization. On the other hand, transactional specific approach of
consumer satisfaction suggested that satisfaction among consumers occur
at stage after consumption that follows the single encounter with the
firm’s specific employee.
 The consumer’s overall level of satisfaction is the evaluative judgement,
which is mainly based on the last purchase and utilization of products
and services as well as on all the encounters with services providers or
employees. Based on this, overall level of consumer’s satisfaction is the
aggregation of satisfaction from all the transactions that a consumer
made with specific services provider or employee. This also shows that
the particular transaction based level of satisfaction among consumers
varies with respect the consumer’s experience while consumer’s overall
level of satisfaction is the moving average which is relatively more
stable and representing overall attitude of consumers toward purchasing
of particular brand. This approach of measuring consumer’s overall level
of satisfaction is notably better as it provides better measure of
consumer’s future loyalty and hence determines firm’s future
performance.

The consumer satisfaction is, therefore viewed as the emotional response

of consumers based on their last purchase to the overall brand
experience.

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Brand loyalty

 The brand equity, since 1980s has become one among most important
concepts of marketing, has been described and discussed in different
ways. According to the research studies conducted previously, the
concept of brand equity has been categorized into three major
perspectives, including financial perspective.
 The brand equity refers to the set of different liabilities and brand assets,
linked with the brand for instance including symbol, name, and others,
adding and subtracting from the value provided by services And products
to firm as well as to firm’s consumers and customers. Similarly, consumer
based brand equity has differential effect upon responses of consumers, of
brand knowledge to the brand marketing (Keller 1993). This definition is
comprised of three important concepts including brand knowledge,
differential effect and customers’ responses to the brand’s marketing.
 Differential effect of brand equity is determined through comparison of
responses of customers to brand’s marketing with the responses to marketing
of similar products and services as unnamed and fictitious named versions.
On the other hand, the brand knowledge refers to the combination of brand
image and brand awareness and it is conceptualized in accordance with the
relationships and characteristics of brand association, summarized
previously. The customers’ responses to the firm’s marketing perspectives is
described as customers’ preferences, customers’ perception and customers’
behaviour, resulted due to different marketing mix activities for instance
including comprehension of different copy points from ads, brand choices,
evaluating the proposed brand extensions, reaction of consumers to coupon
promotions and so forth.

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Statement of the problem/Need for the study

The fashion industry is a highly competitive market where building a strong

brand image is crucial for attracting and retaining consumers. ZARA, one of
the leading fashion retailers in the world, has been successful in building a
strong brand image. However, there is a need to investigate the impact of
ZARA's brand image on consumers' purchase intention in the clothing sector.
Understanding how ZARA's brand image influences consumer loyalty and
brand loyalty is crucial for developing effective marketing strategies and
increasing sales in the clothing sector. Therefore, the problem that this study
seeks to address is to examine the impact of H&M's brand image on brand
loyalty over consumer loyalty in the clothing sector.

Objective of the study: -

The objective of a study on ZARA's influence on brand loyalty and consumer

loyalty in the clothing sector would be to understand how the brand's image
and reputation affect consumer behaviour and decision making. Specifically,
the study would aim to:

• Analyze the brand image and reputation of ZARA in the minds of

consumers and how it compares to other clothing retailers in the market.

• Investigate the factors that influence consumer purchase decisions when it

comes to ZARA's products, such as price, style, quality, and brand loyalty.

• Examine how ZARA's marketing strategies, such as advertising

campaigns, collaborations, and social media presence, affect consumer
purchase intentions.

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• Identify any gaps or areas for improvement in H&M's brand image and
reputation and provide recommendations for the company to enhance its
influence on consumer purchase decisions.

• Evaluate the overall effectiveness of ZARA's brand image and reputation

on consumer purchase intentions and decision-making in the clothing sector.

By conducting a study on this topic, researchers, marketers and ZARA can gain
a deeper understanding of how consumers perceive the brand and how it
influences their purchasing behaviour, which can help the company to improve
its marketing strategies and better target its audience in the future help the
company to improve its marketing strategies and better target its audience in the
future.

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Scope of the Study: -

The scope of this study is to investigate the impact of H&M's brand image
on consumers' purchase intention in the clothing sector.
Specifically, the study will focus on the following Objectives:

1. To identify the components of ZARA's brand image that influence

consumers' purchase intention in the clothing sector.

2. To examine the relationship between ZARA's brand image and

consumers' purchase intention in the clothing sector.

3. To determine the extent to which ZARA's brand image influences

consumers' purchase decision-making process in the clothing sector.

4. To explore the moderating effect of demographic variables on the

relationship between ZARA's brand image and consumers' purchase intention
in the clothing sector.

The study will be conducted to consumers who’re earning and know the
brand ZARA. The study will be conducted using a quantitative research
method through an online survey. The study will focus on consumers'
perceptions of ZARA's brand image and their purchase intention in the
clothing sector. The study will be limited to the English language and will
cover the period up to May 2023.

30
Research Methodology: -
It is descriptive research and the data is collected from primary and secondary
research both, through questionnaire, survey and literature which is already
present on website like Google scholar and ebsco.com I chose Random
Sampling as sampling tool for my questionnaire.

31
32
33
Data Analysis: -

1. Data collection: This step would involve gathering data on ZARA's brand
image and reputation, as well as information on consumer purchasing
behaviour and decision making. This data could be collected through surveys,
interviews, and focus groups with consumers, as well as through secondary
research on ZARA's marketing strategies and sales data.

2. Data analysis: Once the data has been collected, it would be analysed to
identify patterns and trends. This could include analysing the results of surveys
and interviews to understand consumer perceptions of ZARA's brand image
and reputation, and analysing sales data to understand how these perceptions
influence purchasing behaviour.

3. Comparison to competitors: To understand ZARA's position in the market,

the data collected would be compared to the brand image and reputation of
other clothing retailers in the market, as well as with their marketing strategies
and sales data.

4. Identifying factors influencing purchase intentions: The data would be

analysed to identify the key factors that influence consumer purchase intentions
when it comes to ZARA's products. These factors could include price, style,
quality, brand loyalty, and marketing strategies.

5. Recommendations: Based on the findings of the analysis, recommendations

would be provided for ZARA to improve its brand image and reputation, as
well as its marketing strategies, in order to better influence consumer purchase
intentions.

34
6. Conclusion: Summarize the findings of the analysis, and provide an overall
conclusion on the effectiveness of ZARA's brand image and reputation on
consumer purchase intentions in the clothing sector. It's important to note that
the plan could vary depending on the specific research question, the sample size
and the data collection methods used.

Limitations of the study

There are several limitations to consider when conducting a study on ZARA

brand image in influencing purchase intention of consumers in the clothing
sector. Some of these limitations may include:

1. Limited Sample Size: The study may have a limited sample size, which
could affect the generalizability of the findings. If the sample size is too small,
it may not be representative of the larger population of consumers, making it
difficult to draw reliable conclusions.

2. Selection Bias: There may be selection bias in the study, which occurs
when the sample is not representative of the target population. For example,
the sample may be limited to certain demographics or geographic regions,
which could affect the generalizability of the findings.

3. Self-Report Bias: Participants may not be completely truthful in their

responses, which could lead to self-report bias. Participants may not want to
admit to certain behaviours or attitudes, which could affect the accuracy of the
data collected.

35
4. Social Desirability Bias: Participants may respond in a way that they believe
is socially desirable rather than reflecting their true attitudes or behaviours.
This bias could affect the accuracy of the data collected.

5. Limited Timeframe: The study may be limited in terms of the timeframe

during which data is collected. This could affect the ability to make
generalizations over time.

6. Inability to Establish Causality: While the study may show a correlation

between ZARA brand image and purchase intention, it may not be possible
to establish causality. Other factors, such as pricing or marketing strategies,
could also be influencing consumer behaviour.

7. Lack of Control: The study may not have control over external factors that
could affect the results. For example, changes in the economy or fashion
trends could influence consumer behaviour, making it difficult to attribute
changes solely to ZARA brand image.

36
CHAPTER 4- DATA ANALYSIS AND
INTERPRETATION

37
ZARA BRAND LOYALTY AND CONSUMER LOYALTY INFLUENCING
PURCHASE INTENTION

INTERPRETATION

38
The above graph represents the age group of the respondents and through
data we can infer that the maximum respondents belong to 18-25 age group.
Which means the study of this data represents the choice of millennial and
gen z.

This data infers that maximum respondents are students there are a few
inferences that can be made from this data:

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Students are interested in fashion and clothing: Since they were willing to
participate in a survey about clothing expenditure and brand perception, it
suggests that students have an interest in fashion and clothing.

Students may have limited disposable income: Since they were asked about
their clothing expenditure, it's possible that they have limited disposable
income, which could influence their shopping habits and the brands they
choose to buy from. This could also suggest that students may be more price-
sensitive than other age groups.

ZARA may be popular among students: Since the survey asked about the
perception of the ZARA brand, it's possible that ZARA is a popular brand
among students. This could be because ZARA offers affordable fashion
options that are accessible to students on a limited budget.

Overall, the data suggests that students may be a key demographic for clothing
brands, particularly those that offer affordable fashion options. Additionally, the
data suggests that ZARA may have a strong brand image among students.

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Based on the Google form data, we can analyze the relationship between
consumers' monthly expenditure, their monthly expenditure on clothes, and
how much they spend on branded clothes.

Firstly, we can observe that the respondents' monthly expenditure ranges from
Rs. 1000 to Rs. 78,000. However, a significant number of respondents have a
monthly expenditure of Rs. 20,000 to Rs. 42,000.

Secondly, when it comes to monthly expenditure on clothes, the majority of the

respondents spend between Rs. 1000 to Rs. 3000, with a few respondents
spending more than Rs. 5000 per month.

Thirdly, concerning the amount spent on branded clothes, the majority of

respondents spend between Rs. 1000 to Rs. 5000 per month, with a few
respondents spending more than Rs. 6000 per month.

The data show that there is a positive correlation between monthly

expenditure and monthly expenditure on clothes (r=0.46, p0.01), indicating
that the more one spends monthly, the more they spend on clothes. We can
also observe a positive correlation between monthly expenditure and
branded clothes expenditure (r=0.44, p0.01) and between m and n

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In conclusion, the data suggests that consumers who spend more money tend to
spend more on clothes, and in particular, on branded clothes. This insight could
be useful for companies, such as ZARA, to understand their target audience and
to tailor their marketing strategies to meet their consumers' needs and
preferences.

It seems that the materials used in the product and the price of the products are
the two most important factors that influence purchase decisions of fashion
products. Brand reputation for sustainable ethics is also somewhat important to
the consumers. When it comes to the ZARA brand, most of the respondents
are aware of the brand and have purchased clothing from ZARA before. In
general, ZARA's overall image as a brand is rated positively with most
respondents indicating that the brand is associated with quality and trend.

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However, it is worth noting that the data provided is limited in its scope
and does not represent a statistically significant sample.
Therefore, it is important to interpret the findings with caution and
recognize the need for further research to draw more robust conclusions.

To analyse and interpret the data provided, we can start by

summarizing the responses to the questions asked:

• Out of 75 respondents, 61 have purchased clothing from ZARA before,

while 14 have not.

• The amount spent by the respondents who have purchased clothing from
ZARA before ranges from Rs. 100 to Rs. 15000, with an average spend of
around Rs. 3230.

• 40 respondents say that ZARA's reputation for sustainable ethics matters

to them when making a purchase, while 35 say it does not matter to them.

• Respondents generally have a positive perception of ZARA's pricing strategy,

with 39 respondents saying that it impacts their perception of the brand
positively, 24 saying that it does not impact their perception, and only 12
saying that it impacts their perception negatively.

• When asked to think of ZARA and choose a word that comes to mind,
the most common responses were "quality" (chosen by 36 respondents),
"trend" (chosen by 24 respondents), "affordability"

43
(chosen by 4 respondents), and "sustainability" (chosen by 3
respondents).

Based on this data, we can make several observations and interpretations:

• ZARA has a significant customer base, with 81% of the respondents having
purchased clothing from the brand before.

• The average amount spent by respondents who have purchased from ZARA is
not very high, at around Rs. 3230, suggesting that ZARA's pricing strategy may
be attracting budget-conscious shoppers.

• A substantial portion of respondents (40 out of 75) say that ZARA's

reputation for sustainable ethics matters to them when making a purchase. This
indicates that ZARA's sustainability efforts could be a significant factor in
attracting and retaining customers.

• The positive perception of ZARA's pricing strategy among respondents

suggests that the brand's pricing is considered reasonable by most customers
and is not seen as a negative factor.

• The fact that "quality" was the most common word associated with ZARA
suggests that the brand is generally perceived to offer high- quality clothing,
which is likely to be an important factor in influencing purchase intention.

• The relatively high number of respondents (24) who associated ZARA with
"trend" suggests that the brand is seen as fashionable and up-to-date, which
could be another factor driving purchase intention.

Overall, this data suggests that ZARA's brand image is positive, with the brand
being perceived as offering quality, fashionable, and reasonably priced
clothing.

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Chapter - 5 SWOT ANALYSIS

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Strengths

 Fast Fashion Model: Zara is renowned for its fast fashion model, which
allows it to quickly respond to changing fashion trends and bring new
products to the market at a rapid pace.

 Supply Chain Efficiency: Zara's vertically integrated supply chain and

production process contribute to its ability to design, produce, and distribute
fashion items quickly and efficiently.

 Brand Reputation: Zara has built a strong and recognizable brand with a
global presence. The brand is associated with trendy and affordable fashion.

 Innovative Technology: The use of technology in areas such as inventory

management and data analytics allows Zara to optimize its operations and
make data-driven decisions.

Weaknesses

 Inadequate supply chain : Zara may face challenges related to an

inadequate supply chain, potentially leading to production delays or
difficulties in meeting demand for its fast-fashion model.
 Limited advertising : Zara's limited advertising efforts may result in
reduced brand visibility and awareness, impacting its ability to attract new
customers and compete effectively in the fashion market.
 Insufficient product information : Zara's lack of detailed product
information may hinder customer decision-making, potentially leading to
lower customer satisfaction and increased returns due to ambiguity about
product features and materials.

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Opportunities

 Wide Global Market: The global market provides opportunities for Zara to
explore new regions and demographics, tailoring products to meet diverse
customer needs.
 Online Channels: Expanding and improving online channels can enhance
Zara's market reach and appeal to consumers who prefer digital shopping
experiences.
 Creating a Trademark Design: Establishing a distinctive trademark design
can enhance brand recognition and customer loyalty, contributing to
sustained success.

Threats

 Intense Competition: Zara faces threats from fierce competition in the

fashion industry, necessitating continuous innovation and adaptation.
 Economic Downturns: Economic uncertainties pose a threat to consumer
spending, potentially affecting Zara's global market sales.
 Changing Consumer Preferences: Rapid shifts in consumer preferences
could challenge Zara's efforts to maintain a distinctive trademark design and
stay ahead of fashion trends.

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CHAPTER 6- SUMMARY OF FINDINGS,
CONCLUSION AND SUGGESTIONS

48
Conclusion

In conclusion, the study found that ZARA's brand image has a significant
influence on the purchase intention of consumers in the clothing sector in India.
The study showed that consumers perceive ZARA as a high-quality, trendy,
and fashionable brand that offers value for money. Furthermore, the study
found that factors such as brand reputation, brand personality, and brand
loyalty play a crucial role in shaping consumers' attitudes towards ZARA.

The research revealed that consumers' purchasing behaviour is influenced by

ZARA's brand image, which is reflected in their perception of the brand's
attributes and the emotional connection they have with the brand. This suggests
that ZARA's marketing strategy should focus on building a strong brand image
that resonates with its target audience to increase purchase intention and
customer loyalty.

Suggestions

Based on the study's findings, the following suggestions are proposed for
ZARA to enhance its brand image and increase purchase intention in the Indian
market:

1. Focus on maintaining product quality and consistency to reinforce the

brand's reputation for offering high-quality, trendy and fashionable clothing
items.

2. Invest in social media marketing to reach out to younger audiences, who

are more likely to be influenced by social media and digital advertising.

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3. Build an emotional connection with customers through storytelling and
other brand communication strategies to strengthen the brand personality and
emotional attachment.

4. Offer competitive pricing and promotions to enhance the perceived value for
money offered by the brand.

5. Increase the availability of ZARA stores and products in India to improve

accessibility and convenience for customers.

By implementing these suggestions, ZARA can strengthen its brand image,

increase purchase intention and customer loyalty in the Indian clothing sector.
It is essential for ZARA to continuously evaluate and improve its marketing
strategies to maintain its position as a leading fashion brand in India.

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https://doi.org/10.1080/13527266.2018.1553747

http://www.wjsspapers.com/static/documents/February/2015/13- 30.%20Hassan,
%20Javed%20&%20Mahmood.pdf

https://www.jbrmr.com/uploads/1/1/6/2/116268/jbrmr_feb_2016_10_2_87_95.p
df

https://www.researchgate.net/publication/332826301_Impact_of_Brand_Image
_on_Purchase_Intention_A_Study_on_HM_Consumers_in_India

https://www.researchgate.net/publication/327459454_Impact_of_Brand_Image
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https://www.researchgate.net/publication/320563821_Brand_Image_and_its_Im
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