This Writing is in response to a 3 part project for my ENGLISH 202D class: Part 1
As a marketing student with a strong interest in fashion, I find the world of retail very enticing. For the past couple of years, the Spain based retailer Zara, has been mine and most of the world’s favorite, most affordable place to shop.Its tightly controlled factory and distribution network enables the company to take a design from paper to shelf in just two weeks. Every time I enter my local Zara there is new inventory, It doesn’t matter if I was just there last week, everything is new and fresh.
Why is Zara Currently Successful?
Zara is focused on creating an experience for people which draw them into their stores and keeps them coming back. The newest venture for the retail powerhouse is the introduction of an augmented reality experience in stores. Shoppers can use their mobile phones to see models wearing selected fashions when they click on sensors in the stores. This keeps customers excited and engaged while in the store, thus adding to their overall experience. Curiosity is one of marketing’s greatest strategies. Zara evokes curiosity with augmented reality because most consumers are interested in seeing how clothing on a hanger, look on actual people.
How Is Zara Different?
The Forbes article by Pamela Danziger dives into the approach Zara takes that completely differentiates itself from its competitors.Zara has strayed from the classical marketing model of the 4P’s- price, place, promotion, and product. Most of Zara’s competitors, use the 4P’s, which focuses on the company and brand. While Zara’s focal point, is on the customer. Zara’s 4E approach is a modern take on the 4P’s. It stands for experience, exchange, evangelism and everyplace. Experience for the customer, exchange with the customer, evangelism through the customer and being every place for the customer. This innovative approach is what is making Zara the powerhouse that it is today. According to Danziger, “Experience matters more than product in the mind of the shopper and Zara understands this”. This Business model is what cultivates Zara’s most loyal customers and is what has made their sales rise above some of their biggest competitors over the last decade.
What Does This All Mean?
What does this all mean you might ask, It means retail is changing every day and in this case, retail focus has shifted from companies and brands to building a customer experience. The main focus is now solely on the customer. Zara’s unique 4E approach to marketing, edges out the old stereotypical 4P template. It replaces it with a fresh outlook on what it means for consumers to have relationships with brands in 2019.
As a seasoned marketing professional with a deep passion for the intersection of marketing and fashion, I have closely followed the dynamics of the retail industry and, more specifically, the success story of Zara. My expertise in marketing strategy and consumer behavior allows me to provide valuable insights into the concepts highlighted in the provided article.
The article delves into Zara's unique position in the market and its departure from the traditional 4P marketing model. Zara's success can be attributed to its innovative approach, particularly its adoption of a 4E marketing strategy: Experience, Exchange, Evangelism, and Everyplace. Let's break down these concepts and understand their significance:
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Experience: Zara recognizes that, in the contemporary retail landscape, customer experience holds paramount importance. By focusing on providing a memorable and engaging shopping experience, Zara distinguishes itself from competitors. The introduction of augmented reality in stores exemplifies Zara's commitment to enhancing the customer's in-store journey, making it more interactive and exciting.
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Exchange: Unlike the traditional emphasis on the company and brand in the 4P model, Zara's 4E approach shifts the focus to the customer. The concept of exchange highlights the dynamic interaction between the customer and the brand. Zara seeks to build a two-way relationship, valuing customer feedback and engagement. This approach fosters a sense of connection and loyalty among customers.
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Evangelism: Zara understands the power of word-of-mouth marketing. Through evangelism, the brand leverages its most loyal customers to become advocates. Satisfied customers become the driving force behind promoting the brand, sharing their positive experiences with others. This organic promotion contributes significantly to Zara's success and market presence.
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Everyplace: Zara's commitment to being "every place for the customer" is a testament to its omnichannel strategy. This concept goes beyond the physical store, acknowledging the importance of a seamless experience across various touchpoints, including online platforms and mobile devices. Zara ensures that customers can engage with the brand anytime, anywhere, fostering convenience and accessibility.
In essence, Zara's departure from the traditional 4P marketing model to the innovative 4E approach signifies a shift in the retail landscape. The emphasis on customer experience and building meaningful relationships has proven to be a winning strategy for Zara, enabling it to outperform competitors and adapt to the evolving demands of the market. As the article rightly points out, this shift reflects the changing dynamics of retail, where the customer is at the forefront of strategic considerations.
