Topic > Zara Sources of Value Essay - 1361

Providing Sources of Value (Channels) To what extent does the organization use multiple channels to provide sources of value (may be product/service related, process related or communication related) to its customers? Zara offers many sources of value to its customers, with a strong focus on the social and hedonic benefits of their product lines. Customer value is difficult to define and therefore has many different ways of understanding it from person to person. In general, values ​​can refer to: low price, receiving what you want, quality over price, and comparing what you receive with what you sacrifice (Zeithaml 1988). Zara appeals to these value ideologies through a variety of activities. These include: Affordable prices for the latest and greatest fashion: "Fast fashion" Zara offers high fashion products comparable to competitors such as Raoul and Marc Jacobs, but at a more affordable price. For example, prices start at $30 during sales peaking at over $500 for the highest fashion range. This allows Zara to effectively address its target market of individuals who are young, price sensitive and motivated by new and upcoming fashion trends. Basically, Zara's competitive advantage is because it makes use of mass customization. The combination of low volumes and high efficiency reduces costs and speeds up the production procedure. On the other hand, this aggressive approach by Zara is very risky. Although they consider themselves customer-oriented, they don't actually interact with their customers much. Furthermore, the method of avoiding segmentation by behavioral and age factors creates the opportunity for Zara to penetrate a wider range of markets. Providing terrific quality in clothing at prices...... middle of paper...... Mango for example Miranda Kerr and collaborations with renowned designers from H&M for example Karl Lagerfeld (chief designer and creative director of Chanel). Two areas that Zara has so far completely steered clear of have not hindered its success, allowing it to build a strong brand identity through its stores, which are its main touchpoints. This allows them to get up close and personal with their customers, building a strong relationship and connecting not only on an emotional level but also on a psychological level, facilitating customer loyalty and development. Recommendations I would recommend Zara to design some marketing mechanisms to try to activate consumer knowledge and work. This will not only lead to greater consumer engagement but will also increase value for the consumer. Both consumers and businesses will benefit from this new strategy.