5MARK006: Exploring The Contrasting Approaches Of Zara And Louis Vuitton Case Study

5MARK006: Exploring the Contrasting Approaches of Zara and Louis Vuitton

Introduction: 5MARK006: Exploring the Contrasting Approaches of Zara and Louis Vuitton

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It is a known fact that the two companies working under the same industry or having the same business model tend to have some basic similarities yet have many things in contrast. Thus, one of the main reasons behind conducting this study is to show the various approaches two businesses are using to function under the same business and industry sector. In order to do so the two companies that has been selected is famous fashion retailer brand which is Zara and Louis Vuitton. It can be identified from their names that they are functioning under the fashion retail segment and both have a very strong market share all over the world. The overall purpose of this report will be focused on selected four key areas and will have to show the similarities and differences both the brands have while functioning in the UK market. In addition to this the value proposition of both the companies will also be discussed in detail. Overall, from the entire study the context of differentiate business model for two companies who are working under the same retail segment will be identified.

From the name itself it can be identified that as compared to Zara Louis Vuitton is a much old and more renowned luxury brand and it has a very strong in the UK market. As a result, it can be said that Zara faces a very tough competition from LV to get the market share. However, from the normal customer viewpoint it can be said that Zara is very much famous in middle low-income group people and it hold most of this target market in UK. Thus, from the proper analysis these sorts of strong and weak points of the company will be identified in detail.

REPORT REQUIREMENTS 1

Value Proposition of Zara and its Target Audience

Zara is a Spanish fast-fashion retailer that operates in over 90 countries worldwide. The company's value proposition is to offer its customers the latest fashion trends at affordable prices. Zara’s target audience is young, fashion-conscious consumers who are looking for trendy and stylish clothing without breaking the bank (Duoyan 202). The brand's focus is on delivering on-trend and up-to-date styles, with new products arriving in stores every week.

Zara's target audience aligns well with its value proposition as young people are often looking for affordable, stylish clothing that reflects their style and the latest fashion trends. This is especially true in the UK, where young people are known to be fashion-conscious and are always on the lookout for the latest styles. Zara's focus on affordability and quick response to the latest fashion trends appeals to this group of consumers, who are always looking for new and exciting clothing options.

In terms of socio-demographics, Zara's target audience is typically aged 18-35 and is likely to have a lower to medium income. The majority of this group is likely to be students or young professionals, who are looking for high-quality, trendy clothing that fits their budget. Zara appeals to this group because it offers the latest fashion trends at a reasonable price, which allows them to update its wardrobes regularly and stay on-trend in the UK.

Value Proposition of Louis Vuitton and its Target Audience

Louis Vuitton is a luxury fashion house that was founded in 1854 and is now part of the LVMH Group. The company's value proposition is to offer its customers high-quality, luxury goods that are handcrafted and made from the finest materials (Koivisto and Mattila, 590). Louis Vuitton's target audience is high-end consumers who are looking for luxury products that reflect their style and status.

Louis Vuitton's target audience aligns well with its value proposition as the brand's focus on quality, craftsmanship and luxury appeals to consumers who are looking for truly unique products of the highest quality. The brand's focus on luxury and exclusivity makes it appealing to consumers who are looking for a symbol of status and wealth, and who are willing to pay a premium for a truly one-of-a-kind product.

In terms of socio-demographics, Louis Vuitton's target audience in the UK is typically aged 35 and over and is likely to have a high income. The majority of this group is likely to be affluent professionals or business owners, who are looking for luxury products that reflect their style and status. Louis Vuitton appeals to this group because it offers high-quality, handcrafted products that are truly unique and of the highest quality, which allows them to show off its wealth and status in the UK.

Comparison and Contrast of Zara and Louis Vuitton's Audiences and Value Propositions

The main difference between Zara and Louis Vuitton's audiences and value propositions is the price point and the type of products they offer. Zara is focused on affordability and the latest fashion trends, while Louis Vuitton is focused on luxury and quality (Urde, 60). This is reflected in the type of products each brand offer in the UK market, with Zara offering trendy, fast-fashion clothing at affordable prices, while Louis Vuitton offers handcrafted luxury goods at a premium price point.

Another difference between the two brands is their target audience. Zara's target audience is young, fashion-conscious consumers who are looking for trendy clothing at affordable prices, while Louis Vuitton's target audience is affluent consumers who are looking for luxury products that reflect their style and status. This difference is reflected in the socio-demographics of each brand's target audience in the UK, with Zara's target audience being younger, with a lower to medium income, while Louis Vuitton's target audience is older and has a higher income.

Similarities between Zara and Louis Vuitton's Audiences and Value Propositions

In terms of similarities, both Zara's and Louis Vuitton's target audiences are looking for products that reflect their style and the latest fashion trends. Zara appeals to its target audience in the UK by offering the latest fashion trends at affordable prices, while Louis Vuitton appeals to its target audience by offering high-quality, handcrafted luxury goods. Both brands also have a strong focus on design and craftsmanship, with Zara offering trendy and stylish clothing that is updated every week, and Louis Vuitton offering handcrafted products that are truly unique and of the highest quality.

When it comes to the UK market, both Zara and Louis Vuitton have a strong presence and are well-established brands. Zara has a large number of stores across the UK, offering customers the latest fashion trends at affordable prices, while Louis Vuitton has a smaller number of flagship stores in key locations, offering high-end consumers the opportunity to purchase handcrafted luxury goods.

REPORT REQUIREMENTS 2

Zara's Marketing Communications to Attract Customers

Zara's marketing communications are focused on highlighting the brand's fast-fashion offerings and affordability to customers in the UK. The brand heavily relies on in-store displays and window displays to showcase its latest collections and entice customers to come into the store (Chunling 4). In addition, Zara utilizes social media platforms such as Instagram and Snapchat to showcase their latest collections and offer fashion tips and inspiration to their followers. The brand also uses influencer marketing, partnering with popular fashion bloggers and influencers to promote its products. This type of marketing is particularly effective for Zara as it targets its young, fashion-conscious target audience and helps to build a sense of community and engagement with the brand.

Louis Vuitton's Marketing Communications to Attract Customers

Louis Vuitton's marketing communications are focused on showcasing the brand's luxury products and heritage to customers in the UK. The brand heavily relies on print advertisements in high-end fashion magazines and on billboards to showcase its latest collections and promote its luxury image. In addition, Louis Vuitton utilizes social media platforms such as Instagram and Facebook to showcase their latest collections and offer a glimpse into the brand's world. The brand also uses celebrity endorsements, partnering with well-known celebrities to promote its products and build brand awareness. This type of marketing is particularly effective for Louis Vuitton as it targets its affluent target audience and helps to reinforce the brand's image of exclusivity and luxury.

1. Zara's Assortment of Products

Zara's product mix is largely focused on fast-fashion clothing and accessories. The brand offers a wide range of products, including dresses, skirts, pants, tops, jackets, and footwear, all designed to keep pace with the latest fashion trends. The brand's products reflect its target audience's needs, as they are designed to be stylish and on-trend, while also being affordable. This allows young, fashion-conscious consumers to update their wardrobes regularly and stay on-trend without breaking the bank.

Louis Vuitton's Assortment of Products

Louis Vuitton's product mix is focused on luxury goods, including handbags, luggage, leather goods, and accessories. The brand offers a wide range of products, all designed to be of the highest quality and crafted using the finest materials (Ordenov et al. 2020). Louis Vuitton's products reflect its target audience's needs, as they are designed to be luxury items that symbolize wealth and status. The brand's commitment to quality and craftsmanship is reflected in its products, which are handcrafted and made from the finest materials.

2. Zara’s customer service approach

Zara approaches customer service with a focus on enhancing the shopping experience. The company uses various channels to provide excellent customer service, including in-store, online, and through customer support channels such as phone and email. Zara provides comprehensive product information and training to its staff, ensuring that they are knowledgeable about the latest fashion trends and able to provide personalized recommendations to customers (Ullah 10755). The company also uses technology to streamline the customer service experience, with online chatbots and mobile apps available to provide assistance and support to customers in the UK.

Louis Vuitton’s customer service approach

Louis Vuitton, being a luxury brand, also places high importance on customer service, with a focus on providing an exceptional and seamless shopping experience. The company provides high-quality customer service through its in-store boutiques and online channels, with a trained and knowledgeable staff available to assist customers. Louis Vuitton's customer service is characterized by personalized attention and exceptional attention to detail, with the company offering a range of bespoke services such as made-to-measure products and bespoke luggage. The brand also uses technology to enhance the customer experience in the UK, with digital tools such as augmented reality and virtual try-on available to help customers visualize products.

3. Zara’s store and website design

Zara's store design is focused on creating a modern, trendy, and affordable shopping experience. The stores are designed to be bright, open, and visually appealing, showcasing the latest fashion trends in a way that is accessible and appealing to young, fashion-conscious consumers. The company's website follows a similar design aesthetic, with a focus on easy navigation, high-quality product images, and an easy-to-use e-commerce platform.

Louis Vuitton’s store and website design

Louis Vuitton, on the other hand, has a more sophisticated store design that reflects the brand's focus on luxury and exclusivity. The stores are designed to be elegant, with high-end finishes, and feature premium product displays that showcase the brand's handcrafted goods. The company's website is also designed to reflect its luxury image, with a sophisticated layout and high-quality product images that highlight the brand's focus on quality and craftsmanship.

Conclusion

So, from the overall study it can be concluded that there are various differences and few similarities has been shown in the entire study for both the companies Zara and Loui Vuitton. From the value analysis part, it can be identified that Zara is focused more towards providing fast fashion to the young generation at a value price. On the other hand, LV’s value proposition is focused on offering its clienteles first-class, extravagance goods that are handmade and finished from the premium resources. The study has also clearly stated Zara is more into dealing with youth of UK whereas LV is more into attracting the people who falls under the high-class group like any businessman or celebrity group.

References

Duoyan, H., 2021, April. Research on ZARA strategy from the perspective of the SWOT analysis method. In 2021 6th international conference on social sciences and economic development (ICSSED 2021) (pp. 201-205). Atlantis Press.

Koivisto, E. and Mattila, P., 2020. Extending the luxury experience to social media–User-Generated Content co-creation in a branded event. Journal of Business Research, 117, pp.570-578.

Urde, M., 2022. Welcome to the Matrix*: How to find and use your corporate brand's core identity. In The Routledge Companion to Corporate Branding (pp. 59-82). Routledge.

Chunling, L., 2020. Analysis of the Marketing Strategy of Fast Fashion Brand Zara Based on 4c Theory. In 4th International Conference on Economics, Management Engineering and Education Technology (ICEMEET 2020) (pp. 3-5).

Ordenov, P., Abu-Sbiekh, L. and Boiarshinov, A., 2020. How to add value to products: the experience economy perspective: A research on how companies could add value to their products using the experience economy.

Ullah, S., Ahmad, T., Buriro, A., Zara, N. and Saha, S., 2022. TrojanDetector: A Multi-Layer Hybrid Approach for Trojan Detection in Android Applications. Applied Sciences, 12(21), p.10755.