ZARA & PRODUCT AND SERVICE

DECISION
1 ZARA & INDIVIDUAL PRODUCT AND SERVICE DECISIONS

PhiLip K. (Principle marketing,2005) Believe that :”The local of all these decisions is to create
core customer value”. This is also what makes ZARA successful. ZARA has made the right
decisions following these steps to create a great supply chain quickly around the world.

1.1 PORODUCT AND SERVICE ATTRIBUTES

1.1.1 Product Quality
According to Philip K. (principle marketing,2005) :’Product Quality is creating customer value
and satisfaction”. That is one of ZARA's strengths. ZARA has been constantly improving and
acquiring to improve product quality and catch up the trend. All to ensure the quality of the
product has created customer satisfaction. Therefore, it can be said that ZARA brings more
valuable products than clothes. Besides, ZARA also shows consistency in each of its collections,
creating a level for a fashion brand that every luxury brand pursues.

1.1.2 Product Features

ZARA does not use this feature for a special advantage or to compete because ZARA brand
founder Amancio Ortega once said: “I think it would be unfair if only rich women could wear
prettyly". Therefore, he hopes to bring ordinary people a high-class fashion. The product
feature of ZARA is just to make a fashionable product for all ZARA lovers.

1.1.3 Product Style and Design

Each year, the Zara brand design team produces more than 300,000 different designs. From the
moment the idea came into being, the finished product began selling at Zara brand stores around
the world in just 4 weeks. In particular, for any model that does not sell well within 6 days, it
will be immediately withdrawn and replaced with a newer design. This brand spends very little
on advertising and smart accounting with extremely low inventory, thus meeting high-end
fashion outfits at affordable prices while attracting customers to come back more times.In terms
of style, ZARA is believed to pursue street fashion but still retains the elegance of high fashion.

1.2 BRANDING
Perhaps the most distinctive skill of professional marketers
is their ability to buid and mange brands. Philip K. defined
this way :”A brain is a name ,term,sign,symbol or design
or a combination of these that identifies the maker or seller
of a product or service.” ZARA has done a great job of
positioning the brand in the market for over a decade.
ZARA has engraved deeply into the ideology of fashion
followers that ZARA is a proud brand of affordable
clothing that is both quality and affordable with street style
but still is a luxurious color throughout Collection of
ZARA. It can be said that most fashion followers all over the world remember ZARA with
fastquality fashion brands. Just mention popular brand fashion, fast fashion or luxury street
fashion, we all immediately remember ZARA. Isn't that an extremely successful thing about
branding?

1.3 PACKAGING, LABELING AND LOGOS

Acording to Philip K. (principle marketing ,2005) :”Packaging involes designing and producing
the container or wrapper for a product”. Like other high-end fashion brands, ZARA also focuses
on luxurious packaging for its products. ZARA's packaging are mostly white, black, dark blue
or yellow brown tone and smooth. Above the packaging and box are the words "ZARA" that’s
one color, simple but luxurious and sophisticated. Contrary to the complexity of production and
shelfing, in packaging, labels and logos, ZARA simplifies them in a stellar and luxurious way. if
you haven’t noticed yet, your local Zara and Zara Home, no longer give their customers plastic
bags anyway. Everyone’s rocking blue Zara paper bags, and have been for a while now. In other
words , ZARA is going to use paper bags instead of plastic bags in 2020.They’re both nice and
safe to environment.

Zara founder Amancio Ortega originally named his company after the movie "Zorba the Greek"
launched in 1964. However, in 1975, when the company opened its first store in La Coruña, the
name of the store coincides with the name of the bar, Zorba, two blocks away. Therefore, Ortega
decided to change a bit and the name ZARA was born. Nowadays, The name “ZARA” has
become its label and logo with some smoothly colors on surface.Referring to ZARA, we
immediately remember a simple but iconic logo.
1.4 PRODUCT SUPPORT SERVICES
Customer service is another element of product strategy. A company’s offer usually includes
some support services, which can be a minor or a major part of the total offering. Support
services are an important part of the customer’s overall brand experience ( Philip Kotler )

The customer is at the centre of Zara 's activity and, it has developed an integrated store and
online platform in order to listen its feedback and want to guarantee the best possible shopping
experience by taking advantage of complementary channels.

Customers are at the centre of Zara’s business and decisionmaking process. Aiming to know
customer demands. Zara has developed an integrated model of stores and online that seeks to
maintain a continuous dialogue with customers. The Group’s brands can find out not only what
their needs are, but also understand how they seek them out and where or how they prefer to
receive a product. Zara’s designers, store and customer care teams, IT personnel, logistics
personnel work every day with one single focus: to understand the demands of our customers
and offer them the products they want in a fast, agile and comfortable way. To do so, the Zara
has developed new solutions based on our commitment to improve the customer experience both
in our stores and online.

Thanks to these innovations, Zara has explored new store concepts and new technologies for the
collection of online orders, developed the Radio Frequency Identification project and introduced
payment through mobile devices, among other initiatives. This constant innovation and
commitment to new systems to facilitate the customer experience is inherently accompanied by a
cybersecurity and data protection policy. Besides that Zara works to ensure that its purchases are
secure, comfortable and agile, and that all their data is properly protected. Offering a multi-
channel customer service is another key to the model

INTEGRATED MODEL OF STORES AND ONLINE

Wander around a store, have a look at all the new items, touch the fabrics, try on a garment and
buy it using your mobile phone to receive it at home a few hours later.. Zara 's commitment
focuses on offering customers the greatest number of possibilities. Thanks to the integrated
model of stores and online, our customers can relate to our brands at the most convenient
moment, place and way for them. Zara is set to launch online sales through a dedicated
worldwide online platform – www.zara.com/ww – to bring its fashion collections to 106 new
markets. From tomorrow, Zara's global women's, men's and kids' collection will be available in a
total of 202 markets, underpinned by the integrated store and online platform. This new global
online store, which Zara will leverage to bring its fashions to as many people as possible in the
world, is available in English and French and comes with dedicated customer service in English
and, in French-speaking markets, also in French.

Thanks to store and online integration, orders placed online can be delivered to customers' homes
from the stores in the country closest to where they live or they can be picked up in store,
ensuring that customer service is fast and convenient.
Interior of the Zara store in Stratford, London (United Kingdom)

In 2017 Zara launched a new pop-up concept with a novel shopping experience in Stratford
(London, United Kingdom), one which has been replicated and updated in Milan (Italy) and
Roppongi (Tokyo, Japan). It is a temporary concept store specialised in placing and collecting
online orders, as well as making any type of return or exchange. This pop-up store is a temporary
format, and in the case of London, was operating until the opening of the new Zara flagship store
in the city’s Westfield Stratford shopping centre in May 2018. This new store format was
conceived with the aim of intensifying customer satisfaction in the shopping experience and
offering a select collection of items that can be purchased through Zara.com directly from the
store. In order to help our customers and improve the shopping experience, the team in this new
store format is equipped with tablets and other mobile devices, as well as an innovative bluetooth
POS terminal which allows to purchase at any point of the store and pay at the till. In addition,
the smart mirrors that are part of this concept show the various possibilities in real size to
coordinate and combine items with other garments and accessories.

. INNOVATION FOR AN IMPROVED SHOPPING EXPERIENCE

Self- Checkout
 RFID programme

Based on our commitment to offering our customers a shopping experience that meets the
highest standards, Zara develops new projects and technologies that allow us to offer them better
service while advancing to integrate our stores and online. To do this, Radio Frequency
Identification (RFID) programme for garments is a basic pillar on which many of the innovations
Zara put into operation are based on. This project lets us know where each of our garments is at
all times. From the moment we codify the garment alarms, we can use this system to individually
recognise each item from our logistics centers to the sales area itself. Using this, we can quickly
locate a garment at the request of a customer. In addition, stock management can be conducted
80% faster, which allows us to allocate more time to offering the customer better service. Zara
has already completed the integration of this technology in all markets where it is present. Zara is
working towards the goal of implementing RFID technology into all its brands by 2020. Along
the same line of offering our customers a more efficient and agile service, Zara is implementing
new systems that allow us to eliminate unnecessary waiting during the entire purchasing process,
such as self-checkout, specifically designed for periods with a greater number of customers in
store. In addition, this new tool allows for integrated receipt management. The system stores all
purchase receipts from our stores and online which can be accessed at all times, and offers the
customer the possibility of making an exchange or return

COLLECTING ONLINE ORDERS IN SECONDS

Automated Collection Point

In order to offer faster, more efficient service without queues, in 2017 we launched our first
Automated Collection Point for Zara.com orders. This tool has allowed us to offer our customers
a comfortable and agile online purchase collection experience, taking just a few seconds. This
Automated Collection Point, already located in the Marineda shopping centre Zara store in A
Coruña (Spain) and which will be installed in other stores around the world, allows the customer
to easily collect online purchases, scanning the QR code or entering the PIN code included on
the electronic receipt. The automated system will instantly locate the order, transferring it to the
collection door in just a few seconds. This Automated Collection Point conceals a robotic system
that efficiently manages the space, as it creates dynamic compartments that can change size
according to package dimensions. Once the customer requests order collection, the smart system
locates the tray on which that package is located and transports it to the delivery door. The space
is then available to receive new orders in a totally smart, flexible and dynamic way.

CYBERSECURITY, PRIVACY AND PROTECTION OF PERSONAL DATA

Privacy and the protection of personal data of all our customers and users, as well as our
employees and suppliers, is a top priority for Zara. In order to ensure the protection of data in all
processes and corporate tools, we have Security Committee in charge to embrace the necessary
measures and protocols. Furthermore, Its Department of Data Protection and Privacy guarantees
and coordinates compliance with data protection and privacy regulations in each of the territories
where the Inditex Group companies operate. This certification guarantees strict security
measures applied to activities regarding the control, monitoring and maintenance of the
necessary infrastructures to offer topquality service through our online stores.

IMMEDIATE MULTICHANNEL RESPONSE

To offer our customers an immediate and effective response to all questions and incidents that
may arise , Zara has teams trained in all product features and all store operations so they can
resolve any issue as quickly as possible. Its brands has a lot of centres receiving a total of
millions queries which its customers posted through social media, emails, chats and phone calls.

Zara official’ website

The most frequent requests and questions focused on our brands and products,
doubts about our return policy, inquiries about the status of an order and information
regarding our stores, such as opening hours. Zara, for example, has over 27 million
Facebook followers, 36,1 million on Instagram and over one million in Twitter.

Zara’s account on Instagram

Zara ‘s account on Facebook