4Ps ◆ Product

Zara sells women, men, and kids’ apparels and other accessories, shoes, and bags. It has a strong product strategy called WIGIG “When it’s gone, it’s gone”. It means Zara produces small quantity but with varies style of garments in order to limit the supply which could push the customers snapping up queues when they see the products. Zara tend to design fashionable products according to the current trends. Also, Zara create around 40,000 new garments every year, from which 10,000 are chosen for production (Fredows, K., Lewis, M., Machuca, J., 2005). Compare to Zara, TK Maxx also has a greater range of products which including Men's and Women's clothing, shoes, accessories and handbags. It provides the unique and individual clothing and home wears with limited numbers of products as well. Moreover, the products of TK Maxx have varied in quality and designer reputation. According to TK Maxx website(2013), the buyers in TK Maxx scour the globe 24/7 to bring back the best brands at a fraction of the price.

◆ Price

Generally, in order to get the most common average income customers able to purchase the products, Zara set the goal to make the price being available.
Zara creates deals by providing small quantity of apparels from the same collection as amount for lower price. Randomly offer discount sale for some basic products. On the other hands, TK Maxx always provides low cost between 20% - 60% recommended retail price. Offer the prices of products for less than usual retail prices. The price range is from £5 up to £200, which reveals the products of gold label would appeals to high income consumers in certain places, and clearance appeals to the lower income people in all stores.

◆ Place

As Soloaga and Monjo (2010) found out that Zara use “commercial space” opened 2 or 3 stores in a small area. In order to avoid cannibalization between shops, Zara create different concepts of store display that specialize in certain type of outfits for variety of customers. Zara place its store very close to luxury brands, aiming for each city’s the most popular shopping areas, and then buy a large, contemporary and roomy store. On contrast, TK Maxx often opens the larger stores with larger home department areas which include spacious parking space that could encourage customers purchase more and convenient for buying the larger pieces of products, so industrial parks, alongside places such as IKEA, are very popular. For the destination clothing store, it always alongside other retailers from different sectors and markets. TK Maxx always goes off where there is already foot traffic. In that case, it can be located in shopping centers or just off of a high street where they can find larger premises for lower rent and still leech off the main shopping area close by.

◆ Promotion

Zara's company Inditex group spends only 0.3% on advertising, however, it believes that Zara’s shop window display, the contents of which are also decided in La Corua are all the advertising it needs. Zara considered that location is also an important promotion strategy, its shops are located at a busy and traffic based area which could appeal the potential customers. And use season sell to attract consumers. On the contrary, TK Maxx the well minded advertising placard “big labels small prices” emphasizes its value a lot. Its promotion is as individual retailer, takes a risk and plays “open your mind” slogan in ads – refer to “treasure hunt” aspect of the retail experience. Always have clearance rails display. Promos to wide range target market, predominately female customers but also promote to certain male customers. “Our target customer is middle to upper-middle income shopper, who is fashion and value conscious and fits the same profile as a department store shopper.” Print and television advertisements are both clearly aimed at this demographic.

Reference

Fredows, K., Lewis, M., Machuca, J. (2005). Zara's Secret for Fast Fashion. [Online] Available at: https://www.academia.edu/1427696/Zara_The_company_where_everything_communicates. (Accessed 1 Nov. 2013)

Soloaga, P., Monjo, M. (2010).
ZARA case study: The company where everything communicates. [Online] Available at: https://www.academia.edu/1427696/Zara_The_company_where_everything_communicates . (Accessed 1 Nov. 2013)

TK Maxx(2013) TK Maxx. [Online] Available at: http://www.tkmaxx.com/content/ebiz/tkmaxx/resources/careers/about/tkmaxx.htm. (Accessed 8 Nov. 2013)
Interview

Ivy 25 years old, Student ➢ She feels Zara’s clothes are quite ordinary. Sometime feels that “Zara surprise me!” Also, she does not like to wear the same clothes with others, so she likes the small quantity of products that Zara offered.
Amber 24 years old, Department store floor manager ➢ Shop in Zara twice a month. Compare to H&M, she thinks the basic type of outfits is more fashionable, and easily to mix and match. The price is a little bit high to younger customers (under 20).
Anne 45 years old, Editor ➢ She loves Zara a lot, price is affordable, and keep changing new product is also attractive. She likes the clothes look like some famous brand, although the fabric and material is not exactly the same, it still acceptable.
Christine 23 years old, Student ➢ She considers the price could not match the product (too expensive). Cannot compete with other similar brand such as Mango. However, she likes the speed of update the new product.
Emily 52 years old, Housewife ➢ She seldom shops in Zara, about once a month and under. Usually buy the season sale and basic outfits. Don’t know a lot about Zara’s strategy. She like the store display, very simple and bright, feels comfortable to shop there.